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Question Paper Solutions - Book Keeping and Accountancy 2013 - 2014-H.S.C-12th Board Exam Maharashtra State Board (MSBSHSE)


Marks: 80
[15]1
[5]1.1 | Answer the following Question in One Sentence
[1]1.1.1
What do you mean by 'carriage inward'?
Chapter: [7] Final Accounts and Concept of Trading, Profit and Loss Account and Balance Sheet (With and Without Adjustments), Marshalling of Balance Sheet
Concept: Effects of Adjustments-Outstanding Expenses
[1]1.1.2

What is 'due date of a bill'?

Chapter: [1.02] Accounting Process
Concept: Important Terms of Bills of Exchange - Due Date
[1]1.1.3
What is 'deficit'?
Chapter: [10] Non Trading Organisation
Concept: Preparation of Income and Expenditure Account and Closing Balance Sheet
[1]1.1.4

What do you mean by 'sacrifice ratio'?

Chapter: [1.01] Accounting for Partnership Firms
Concept: Admission of a Partner - Sacrifice Ratio and New Ratio
[1]1.1.5
Which statement is prepared under single entry system to ascertain profit?
Chapter: [6] Single Entry System
Concept: Preparation of Statements for Single Entry System
[5]1.2
[1]1.2.1
The debit balance of a trading account.
Chapter: [2] Partnership Final Accounts
Concept: Adjustments - Unrecorded Purchases and Sales
[1]1.2.2

The excess of total assets over total liabilities of a 'not for profit concern'.

Chapter: [5] Accounts of “Not for Profit” concerns
Concept: Features of "Not for Profit" Concerns.
[1]1.2.3
Expenses incurred on a dissolution of a partnership firm.
Chapter: [4] Dissolution of Partnership Firm
Concept: Dissolution of Partnership Firm
[1]1.2.4

Transfer of title of a bill from a debtor to a creditor.

Chapter: [7] Bill of Exchange (Only Trade Bill)
Concept: Accounting Treatment - Endorsement of the Bill, Honour/ Dishonour and Also Insolvency of Acceptor
[1]1.2.5
The statement showing the profitability of two different periods and its percentage change.
Chapter: [9] Analysis of Financial Statements
Concept: Comparative Statements
[5]1.3 | Select the most appropriate alternative from the given below and rewrite the statement.
[1]1.3.1

When shares are forfeited, share capital account is _____________.

a. debited

b. credited

c. adjusted

d. none of the above
Chapter: [8] Company Accounts
Concept: Accounting Treatment of Forfeiture and Re-issue of Share
[1]1.3.2

A bill drawn and accepted on 23rd November 2012 for two months will payable on __________.

a. 23rd January 2012

b. 23rd January 2013

c. 25th January 2013

d. 26th January 2013
Chapter: [1.02] Accounting Process
Concept: Important Terms of Bills of Exchange - Date of Maturity
[1]1.3.3

If the opening capital is Rs. 80,000, closing capital is Rs. 1,80,000, withdrawals are Rs. 10,000 and additional capital brought in is Rs. 20,000, the profit will be Rs. ______________.

a. 90,000

b. 1,10,000

c. 70,000

d. 1,50,000
Chapter: [3] Reconstitution of Partnership
Concept: Retirement Or Death of a Partner - Adjustment of Capitals
[1]1.3.4

Assets and liabilities are transferred to Realisation Account at their _________ value.

a. market

b. purchase

c. sale

d. book
Chapter: [4] Dissolution of Partnership Firm
Concept: Dissolution of Partnership Firm
[1]1.3.5

Share of profit or a deceased partner till the date of his death is ____________

a. debited to profit and loss adjustment account

b. credited to profit and loss adjustment account.

c. debited to profit and loss suspense account.

d. credited to profit and loss suspense account.
Chapter: [3] Reconstitution of Partnership
Concept: Retirement Or Death of a Partner - Amount Due to Retiring Parter
[5]1.4 |  State whether the following statements are True or False:
[1]1.4.1
An honour of bill means payment in accordance with the apparent tenor of the bill.
Chapter: [7] Bill of Exchange (Only Trade Bill)
Concept: Accounting Treatment - Retaining the Bill Till Due Date. Honour Or Dishonour, Insolvency of the Drawee Or Acceptor
[1]1.4.2

The issue of debenture more than the face value is termed as an issue of debenture at par.

Chapter: [8] Company Accounts
Concept: Issue of Debentures at Par at Premium and at Discount
[1]1.4.3
Return inward is deducted from purchases.
Chapter: [2] Partnership Final Accounts
Concept: Adjustments - Unrecorded Purchases and Sales
[1]1.4.4

Ratio analysis is useful for inter-firm comparison.

Chapter: [2.01] Analysis of Financial Statements
Concept: Ratio Analysis and its Types
[1]1.4.5
Renewal is a request by drawee to cancel the old bill and draw a new bill by extending the credit period.
Chapter: [7] Bill of Exchange (Only Trade Bill)
Concept: Acceptance of Bill
[5]1.5

Prepare a bill of exchange from the following details:

Drawer: Ramesh Mishra, L.B.S. Road, Ghatkopar, Mumbai
Drawee: Nandkumar Sharma, Laxmi Road, Pune

Payee: Rupesh Kumar Pande, Rajkamal Chowk, Amaravati.
Period of a bill: 90 days

Amount of bill: Rs. 25,000
Date of Bill: 17th February 2014

Date of Acceptance: 20th February 2014
Accepted for: Rs. 20,000 only.

Chapter: [7] Bill of Exchange (Only Trade Bill)
Concept: Draft Or Format of Bills
[8]2 | Attempt Any One
[8]2.1

Mr Keshav keeps his books on single entry system and disclosed the following information of his business.

Particular 1st April, 12
(Rs.)
31st March, 13
(Rs.)
Investments   30,000
Bills payable   18,000
Creditors 52,500 69,000
Furniture 15,000 45,000
Debtors 60,000 90,000
Stock in Trade 30,000 37,500
Cash at Bank 36,000 54,000
 
Additional information

(1) Mr Keshav transferred Rs. 3,000 per month during the first half-year and Rs. 2000 per month for the second half year from a business account to his personal account.

(2) He also took goods worth Rs. 7,000 for private use.

(3) He sold his private asset for Rs. 27,000 and brought the proceeds into his business.

(4) Furniture to be depreciated by 10%

(5) Provide reserve for doubtful debts at 5% on debtors.

Prepare:

(i) Opening statement of affairs.

(ii) Closing statement of affairs.

(iii) Statement of Profit and Loss for the year ended 31st March 2013.

Chapter: [6] Single Entry System
Concept: Single Entry System Examples and Solutions
[8]2.2
[4]2.2.1

What are the different 'Cash inflows' and 'Cash outflows' of operating activity?

Chapter: [2.01] Analysis of Financial Statements
Concept: Cash Flow Analysis
[4]2.2.2

State and explain any 'four objectives' of financial statement analysis from the business point of view.

Chapter: [2.01] Analysis of Financial Statements
Concept: Concept of Financial Statement Analysis
[10]3 | Attempt Any One
[10]3.1

Mrs Shehal and Mrs Meenal are equal partners in a business. Their balance sheet is as follows.

Balance Sheet as on 31st March 2013
Liabilities Amount Rs. Assets Amount Rs.

Capital A/c's

Snehal    80,000

Meenal   45,000

Creditors

General reserve

 

 

 

 

1,25,000

46,000

20,000

 

 

Premises

Investments

Equipments

Bills Receivable

Debtors      1,10,000

( - ) R.D.D.    11,000

Bank Balance

20,500

10,500

5,000

18,000

 

99,000

38,000

  1,91,000   1,91,000

They agreed to admit Mr Komal on 1st April 2013 on the following terms:

(1) Komal should bring Rs. 50,000 towards her capital for one fourth (1/4th) Share in future profit.

(2) Goodwill to be raised in the books of the firm for Rs. 40,000.

(3) R.D.D. to be maintained at 5% on debtors.

(4) Premises to be valued at Rs. 30,000 and equipment to be written off fully.

(5) Creditors allowed a discount of Rs. 1,000 and they were paid off immediately.

Prepare Profit and Loss Adjustment Account, Partner's Capital Accounts and Balance Sheet of the new firm.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Admission of a Partner - Revaluation of Assets and Liabilities
[10]3.2

Pravin, Prakash and Paresh were partners sharing profits and losses in the proportion to their capitals. Their balance sheet of the firm on 31st March 2013 was as under.

Balance sheet as on 31st March 2013
Liabilities

Amount

Rs

Assets

Amount

Rs

Capital A/c's:

Pravin

Prakash

Paresh

Creditors

Reserve Fund

 

60,000

40,000

20,000

56,000

36,000

Land and Building

Investments

Debtors             32,000

Less: R.D.D.       4,000

Stock

Cash

80,000

40,000

 

28,000

36,000

28,000

 

2,12,000

 

2,12,000

Paresh died on 1st August 2013 and the following adjustments were made:

(1) Assets were valued as – Land and building Rs. 88,000. Investments Rs. 36,000 and Stock Rs. 34,000.

(2) All debtors were good.

(3) Goodwill of the firm valued at two times the average profit of the last 4 years' profit.

(4) Paresh's share of profit up to his death to be calculated on the basis of average profit of the last two years.

(5) Profits for the last four years were: Rs. 12,000, Rs. 24,000, Rs. 14,000 and Rs. 22,000.

Prepare:

i. Profit and Loss Adjustment Account.

ii. Paresh's Capital Account, showing the amount payable to his executor.

iii. Give working with Paresh's share in Goodwill and Profit.

Chapter: [3] Reconstitution of Partnership
Concept: Retirement Or Death of a Partner - Adjustment of Capitals
[10]4

Journalise the following transactions in the books of Kedarnath:
1. Badrinath informs Kedarnath that Aloknath's Acceptance of Rs. 16,000 endorsed to Badrinath has been dishonoured and noting charges amounted to Rs. 500.

2. Somnath renews his acceptance of Rs. 14,400 to Kedarnath by paying cash Rs. 4,400 and accepting a new bill for 2 months for the balance plus interest @ 12% p.a.

3. Vishwanath retired his acceptance for Rs. 10,500 to Kedarnath by paying in cash Rs. 10,250

4. Recovered only 50% of the amount due from his private estate of Ramnath, who declared as insolvent, against his bill of Rs. 12,500.

Chapter: [7] Bill of Exchange (Only Trade Bill)
Concept: Accounting Treatment - Retaining the Bill Till Due Date. Honour Or Dishonour, Insolvency of the Drawee Or Acceptor
[10]5 | Attempt Any One
[10]5.1

Devendra and Ganesh were partners sharing profits and losses in the ratio of 3: 2. They dissolved the partnership firm on 31st March 2013 when their position was as follows:
The assets realised as follows:

Balance Sheet as on 31.03.2013
Liabilities Amount Rs Assets Amount Rs.
Sundry Creditor 12,500 Debtors             56,250  
Bank Overdraft 10,000    Less: R.D.D.      6,250 50000
Reserve Fund 15,000 Stock 112500
Capital Accounts:   Furniture 25000
   Devendra   1,15,000   Motor Car 37500
   Ganesh         75,000   Cash in hand 2500
       
  227500   227500

(1) Debtors Rs. 45,000, stock Rs. 1,00,000 and goodwill Rs. 12,500

(2) The motor car was taken over by Devendra for Rs. 35,000 and furniture by Ganesh for Rs. 30,000.

(3) The creditors were paid Rs. 11,250 in full settlement.

(4) The realisation expenses were Rs. 5,000.

Pass necessary journal entries in the books of the firm.



Chapter: [4] Dissolution of Partnership Firm
Concept: Dissolution of Partnership Firm
[10]5.2

Khandelwal Co. Ltd. made an issue of 40,000 equity shares of Rs. 20 each, payable as follows:

Application: Rs. 5 per share
Allotment: Rs. 10 per share.

First Call: Rs. 3 per share.
Second and Final Call: Rs. 2 per share.

The company received applications for 45,000 shares of which applications for 5,000 shares were rejected and the money refunded. All the shareholders paid up to the second call except Sachin, the allottee of 2,000 shares, failed to pay the final call.
Pass Journal Entries for the above transactions in the books of Khandelwal Co. Ltd.

Chapter: [8] Company Accounts
Concept: Share Capital - Issue and Allotment of Equity Shares
[12]6

Following is the Receipts and Payments Account of Chamber of Commerce, Amaravati for the year ending 31st March 2012 and some additional information.

Receipts and Payments Account For the year ended March 31, 2012
Receipts Amount Payment Amount
To balance b/d (Cash at bank) 11,960 By Printing and Stationery 6,950
To Subscription (Including Rs. 2,500 for 2010–11) 36,500 By Repairs 2,100
To Sale of furniture (Books value Rs. 18,000) 12,000 By Rent 8,500
To Donation for building fund 27,000 By Books 20,000
To Admission fees (Revenue) 5,050 By Travelling expenses 2,000
    By Investments 40,000
    By Insurance 1,700
    By Balance c/d (Cash at bank) 11,260
       
  92,510   92,510
 
Additional information:
Particulars 1.04.2011 31.03.2012
Outstanding 3,000 5,000
Subscription    
Furniture 32,000 12,600
Building Fund 1,45,000  
Capital Fund 1,51,960  
Investment 2,50,000  

Prepare Income and Expenditure A/c for the year ended 31st March, 2012 and Balance Sheet as on that date.

Chapter: [10] Non Trading Organisation
Concept: Preparation of Income and Expenditure Account and Closing Balance Sheet
[15]7

Miss Meena and Miss Reena are in partnership sharing profits and losses in the ratio of 3: 2.

From the following trial balance and adjustments, you are required to prepare Trading Account, Profit and Loss Account for the year ended 31st March 2013 and Balance Sheet as on that date.
Trial Balance as on 31.03.2013

Trial Balance as on 31.03.2013
Particulars Debit Amount (Rs) Particulars Credit Amount (Rs)
Building 4,00,000 Capital Accounts:  
Plant and Machinery 1,20,000     Meena         3,00,000  
Purchases 6,50,000     Reena          2,00,000 5,00,000
Carriage 7,000 Sales 8,14,000
Opening Stock 90,000 Sundry Creditors 1,80,000
Wages 35,000 Bank Overdraft 20,000
Sundry Debtors 1,50,000    
Salaries 28,000    
Postage and Telegram 4,000    
Insurance 5,000    
Bad Debts 3,000    
Rent 4,000    
Discount 3,000    
Drawings:      
   Meena    10,000      
   Reena       5,000 15,000    
  15,14,000   15,14,000
       

Adjustments:

1. Stock on hand on 31st March 2013 was valued at Rs. 1,10,000.

2. Depreciate plant and machinery at 10% p.a.

3. Create reserve for doubtful debts at 5% on sundry debtors.

4. Salaries include Rs. 2,500 as advance to workers.

5. Partners are allowed interest at 5% p.a. on their capitals.

Chapter: [3] Reconstitution of Partnership
Concept: Reconstitution of Partnership Examples and Solutions
S