Book Keeping and Accountancy 2016-2017 HSC Commerce (English Medium) 12th Standard Board Exam Question Paper Solution

Answer in one sentence only.

What is a capital deficiency?

What do you mean by ‘non‐recurring expenses’?

How is gain ratio calculated?

What is ‘retirement of a bill of exchange’?

The amount which is not recoverable from the debtors.

A person on whom a bill is drawn.

The ratio measuring the relationship between gross profit and net sales ? 

Give the word/term/phrase which can substitute the following statement.

Winding up of partnership business.

Give word/term or phrase for the following statement.

Officer appointed by the Central Government for noting of dishonor of a bill

Select the most appropriate alternative from those given below and rewrite the statement.

A_________________ is an intangible asset.

Goodwill

Stock

Building 

Cash

_______ is an acknowledgement of debt under common seal of a company.

(A) Share

(B) Debenture

(C) Cheque

(D) Bond

When closing capital is greater than opening capital, it denotes _______.

(A) profit 

(B) loss

(C) no profit, no loss 

(D) asset

Cash proceeds from the issue of debentures is a _______ activity.

(A) operating 

(B) trading

(C) financial 

(D) non‐financial

_______ is a person to whom the amount on a bill is payable.

(A) Drawer 

(B) Drawee

(C) Payee 

(D) Endorser

State whether the following statement is True or False with reasons.

Not for Profit Concerns do not have profit motive.

True

False

Bank account is debited when a bill is sent to the bank for collection.

A new partner is admitted in the firm for getting additional capital and skill.

Closing stock is always valued at market price.

Shares are always issued at par.

Prepare a specimen of Bill of Exchange from the following information:

(1) Drawer = Shri Ratnakar Patil, 205, New Bazer, Amaravati.

(2) Drawee = Shri Jairam Purohit, Hiwarkheda Road, Kannad.

(3) Payee = Shri Rohit Joshi, Kedareshwar Market, Ladjalgaon.

(3) Period of bill = 3 months

(4) Amount of bill = Rs. 25,000

(5) Date of bill = 25^th August 2013

(6) Date of acceptance=28^th August 2013

Mr. John keeps his books according to single entry system. Following are the details of his business:

Additional information:

(1) Mr. John had introduced  Rs. 20,000 as additional capital on 1^st October, 2012.
(2) Mr. John had withdrawn Rs.15,000 for his personal use during the year.
(3) Additions to furniture were made on 1^st October, 2012.
(4) Depreciate machinery at 10% p. a.and furniture at 20% p. a.

Prepare:
(1) Opening and Closing Statement of Affairs.
(2) Statement of Profit or Loss for the year ending on 31^st March, 2013

Ram and Madan were partners in a firm sharing profits and losses equally. Following was their balance sheet as on 31.03.2012:

Balance Sheet as on 31.03.2012

On 1st April, 2012, Soham was admitted as a partner in the firm on the following terms:
(1) Soham is to bring in Rs. 1,00,000 as his capital. He is to be given 1/3rd share in future profits.
(2) Goodwill of the firm to be raised at Rs. 30,000. It was decided that ‘goodwill’ should not appear in the books of the new firm.
(3) Furniture to be depreciated by 10%. Stock was valued at `Rs . 70,500.

Prepare:
(1) Profit and Loss Adjustment Account.
(2) Partners’ Capital Accounts.
(3) Balance Sheet of the new firm.

Following is the balance sheet at Sharmila, Urmila and Pramila, who shared profits and losses in the ratio of 5 : 3 : 2 respectively:

Balance Sheet as on 31st March, 2013

Pramila retired on 31st March, 2013 on the following terms:
(1) Goodwill of the firm was valued at Rs 60,000. It was decided that ‘goodwill’ should be raised to the extent of Pramila’s share only, and to be written off immediately.
(2) Land and building to be appreciated by Rs 20,000. Stock is revalued at Rs 58,500. Furniture is to be depreciated by 10%.
(3) Amount payable to Pramila is to be transferred to her loan account.
Give Journal Entries in the books of the firm.

Raja made sales of goods worth Rs 40,000 to Pradhan and received a part payment of Rs 10,000. 
On the same date, Raju drew on Pradhan a three months’ bill for `Rs  30,000, received the acceptance on the bill and sent the bill to the bank for collection immediately.
However, on the due date, the bill was dishonoured due to Pradhan’s insolvency and only 50% of
the amount due could be recovered from his private estate as the first and final dividend.
Give Journal Entries and Pradhan’s Account in the books of Raja.

Akbar and Birbal were partners in a firm sharing profits and losses in the ratio of 3 : 2 respectively. Their balance sheet as on 31st march , 2013 was as follows :

Balance Sheet as on 31st March, 2013

On the above date, the firm was dissolved and the assets realised were as follows :
Plant and machinery ₹ 30,000.

Sundry debtors ₹ 58,000.
Furniture was taken over by Akbar for ₹ 10,000 and stock by Birbal for  27,000.
Sundry creditors were paid  ₹ 38,000 in full settlement of their claim.
Realisation expenses amounted to ₹ 2,000.
Prepare :

(1) Realisation Account
(2) Partners’ Capital Accounts
(3) Bank Account

Modern Chemicals Co. Ltd. made an issue of 60,000 shares of Rs. 20 each payable as follows :
On application Rs. 5 per share
On allotment  Rs. 5 per share
On first call  Rs. 4 per share
On second call  Rs. 3 per share
The company received applications for 65,000 shares of which applications for 5,000 shares were
rejected and money refunded.
All the shareholders paid up to second call except one shareholder, Mr. Bhupendra, the allotee of
100 shares, who did not pay the amount of the second call.
Give Journal Entries in the books of Modern Chemicals Co., Ltd.

With the help of the Balance Sheet and Receipts and Payments Accounts of Adarsh Cultural Club, Mumbai, prepare Income and Expenditure Account for the year ended 31st March, 2013 and the Balance Sheet as on that date :

Balance Sheet as on 01.04.2012

Receipts and Payments Account for the year ending 31.03.2013

You are also required to consider the additional information given below:
(1) The club had 100 members, each paying  500 as annual subscription.
(2) Furniture to be depreciated at 20 % p.a.
(3) Salaries include  Rs .1,300 paid for outstanding salaries for the year 2011‐12.
Salaries outstanding for the year 2012‐13 were  700.

Jaya and Maya are partners in a firm sharing profits and losses in the ratio of 2 : 3 respectively. With the help of the trial balance and adjustments given below, you are required to prepare their Trading, Profit and Loss Account for the year ended 31st March, 2013 and the Balance Sheet as on that date :

Trial Balance as on 31st March, 2013

Adjustments :
(1) Closing stock was valued at  Rs. 22,600.
(2) Purchases include purchase of furniture of Rs .10,000 made on 1st October, 2012.
(3) Depreciate land and buildings at 10% p.a.; plant and machinery at 10% p.a. and furniture at 20% p.a.
(4) Create R.D.D. at 5% on sundry debtors.