Accounts Official Board Paper 2021-2022 ISC (Commerce) Class 12 Question Paper Solution

Which one of the following can be used by a company to write off any loss on issue of debentures?

Investment Fluctuation Fund

Machinery Replacement Fund

Workmen Compensation Reserve

General Reserve

Mita and Rita decided to dissolve their partnership firm. Their books showed Goodwill of ₹ 5,000.

How will the Goodwill Account be closed on the dissolution of the firm?

By transferring ₹ 5,000 to the debit side of the Partner’s Capital Accounts

By transferring ₹ 5,000 to the credit side of the Partner’s Capital Accounts

By transferring ₹ 5,000 to the debit side of the Realisation Account

By transferring ₹ 5,000 to the credit side of the Realisation Account

On 1st April, 2022, Halogen Ltd. issued 4,000, 8% Debentures of ₹ 100 each, to be redeemed in four equal annual installments beginning from 31st March, 2024. The interest on these debentures was payable half-yearly, on 30th September and 31st March, every year.

What is the journal entry to close the Interest on Debentures A/c on the 31st March, 2025?

Debit Statement of P/L ₹ 32,000; Credit Interest on Debentures A/c ₹ 32,000.

Debit Statement of P/L ₹ 16,000; Credit Interest on Debentures A/c ₹ 16,000.

Debit Statement of P/L ₹ 24,000; Credit Interest on Debentures A/c ₹ 24,000.

Debit Statement of P/L ₹ 8,000; Credit Interest on Debentures A/c ₹ 8,000.

Punit, Sujit and Jiten are partners sharing profits and losses in the ratio of 4 : 3 : 1. Sujit retires from the firm, selling his share of profit to Punit and Jiten for ₹ 1,50,000; ₹ 80,000 being paid by Punit and ₹ 70,000 by Jiten. What is the new profit-sharing ratio between the remaining partners?

4 : 1

7 : 3

8 : 7

1 : 1

Give the adjusting entry for interest on calls in arrears due from the debenture holders.

Ritu, Geetu and Sara are partners in a firm, sharing profits and losses in the ratio of 3 : 2 : 1. An extract of their Balance Sheet as at 31^st March, 2021, is as under:

On Geetu’s retirement on 1^st April, 2021, it was found that the value of machinery shown in the balance sheet overvalued by `33 1/3`%.

What is the revised value of Plant & Machinery shown in the Balance Sheet of the reconstituted firm?

On 1^st April, 2020, Venus Ltd. acquired fixed assets of the value of ₹ 7,50,000 and current liabilities of ₹ 90,000 from Jupiter Ltd., for a purchase consideration of ₹ 6,40,000.

Venus Ltd. met the purchase consideration due to Jupiter Ltd., by issuing to it, 10% Debentures of ₹ 100 each at a discount of 5%.

These 10% Debentures were redeemable at par on 31^st March, 2025.

Note: Venus Ltd. writes off its capital losses in the year in which they occur.

You are required to pass the necessary journal entries in the books of Venus Ltd. for the year 2020-21. (Ignore interest on debentures).

Phantom Ltd. (a listed NBFC) redeemed its 6,000, 10% Debentures of ₹ 100 each in instalments, as follows:

On the basis of the above details, you are required to pass journal entries to record the purchase/sale of Debenture Redemption Investment, from the year of the redemption of the first instalment of debentures to the date of the redemption of the final instalment.

Ritesh and Farhan are partners in a firm sharing profits and losses in the ratio of 3 : 1. They decided to dissolve their firm on 31^st March, 2021.

You are required to pass the necessary journal entries for the following, after the realisable assets and outside liabilities have been transferred to the Realisation Account.

1. Creditors of ₹ 20,000 were paid the amount due to them, by giving them an unrecorded asset worth ₹ 4,000 and the balance in cash.
2. Bills Payable of ₹ 30,000 were due to be paid on 30^th April, 2021. They were paid on the date of dissolution of the firm at a rebate of 5% per annum.
3. Realisation expenses of ₹ 2,000 were to be borne by Farhan. These were paid by the firm on his behalf.

Tara and Anjali were partners in a firm sharing profits and losses equally. They dissolved their partnership firm on 31st March, 2021.

On this date, the Balance Sheet of their firm; apart from the realisable assets and outside liabilities, showed the following:

Additional information:

On the dissolution of the firm:

1. The firm realised ₹ 22,000 from the sale of assets and paid ₹ 7,000 to discharge its outside liabilities.
2. The Realisation Account showed a profit of ₹ 6,000 which was shared by the partners in their profit-sharing ratio.
3. The Partner’s Capital Accounts were closed, with a partner, either bringing in cash to cover the deficit of her capital or a partner being paid off her surplus capital.
4. The Bank Account was closed.

You are required to prepare the Bank Account on the date of dissolution of the firm to determine its balance at bank as shown in the Balance Sheet as at 31st March, 2021.

On 1^st July, 2018, Astrex Ltd. (an unlisted construction company) issued 1,000, 8% Debentures of ₹ 100 each, to be redeemed at a premium of 6% on 31^st December, 2020.

The company transferred ₹ 6,000 to the Debenture Redemption Reserve Account on 31^st March, 2019, and the balance on 31^st March, 2020.

The company met the requirement regarding the purchase of Debenture Redemption Investment. The debentures were redeemed on the due date.

You are required to prepare:

• Debenture Redemption Reserve Account for the years 2019-20 and 2020-21.
• Debenture holders Account for the year 2020-21.

Note: Ignore interest on debentures due to the debenture holders.

Sam, Tim and Uday are partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2.

Their Balance Sheet as at 31st March, 2021, is as follows:

Uday retired from the firm on 1^st April, 2021, subject to the following adjustments:

1. Stock to be reduced to ₹ 8,000.
2. One creditor of ₹ 10,000 to be paid by Uday privately, for which he is not to be reimbursed.
3. Goodwill of the firm to be valued at ₹ 24,000.
4. Out of the amount due to Uday, ₹ 3,800 to be paid to him immediately.
   The balance amount to be paid to him by the remaining partners privately in their new profit-sharing ratio, for which they were to be reimbursed.

You are required to pass the necessary journal entries on Uday’s retirement.

Which one of the following is NOT a tool for analysing the financial statements of a company?

Comparative Statements

Revaluation Account

Cash Flow Statement

Ratio Analysis

Mention whether interest due on debentures would result in inflow, outflow or no flow of cash.

From the following extracts of the Balance Sheets of Sulphur Ltd. and the additional information given, you are required to calculate for the year ending 31^st March, 2021:

• The underwriting commission paid by the company.
• Cash from Financing Activities.

Additional Information:

1. In the year 2020-21:
   1. Debentures were issued at par on 1^st April, 2020.
   2. Interest of ₹ 5,000 was paid on Bank Overdraft.
   3. Equity Shares of ₹ 10 each were issued at a premium of ₹ 3 per share.
   4. The company had retained underwriters to issue its shares. The underwriting commission was paid in cash and was written off at the end of the year.
2. Dividends proposed for the years 2019-20 and 2020-21 were ₹ 80,000 and ₹ 70,000, respectively.

From the following particulars of Supreme Ltd., you are required to prepare its Common Size Balance Sheet as at 31^st March, 2021.

From the following particulars of Phantom Ltd., you are required to calculate:

• Cash from Operating Activities
• Cash from Investing Activities

Additional Information:

During the year 2020-21, a machine with a book value of ₹ 50,000 (accumulated depreciation ₹ 20,000) was sold at a loss of ₹ 6,000.

Hint. Purchase of Plant & Machinery ₹ 50,000.

Which one of the following languages is used by most of the DBMSs to help their users to access the data?

SQL

4GL

Query language

High Level Language

Which one of the following commands is a type of Data Definition language command?

Create

Update

Delete

Merge

Why are check-points used in DBMS?

What are the three levels of data abstraction?

What is meant by transparent DBMS?

What is the primary use of Normalisation?

Give any two reasons to show that a blank space or zero is not the same as NULL value in SQL.

What is bank reconciliation statement?