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# Board Paper of Class 12-Commerce 2009 Accountancy (SET 1) - Solutions

General Instructions
1) This question paper contains two sections: A and B.
2) Section A is compulsory.

Section A
i. This section consists of 2 compulsory questions.
ii. Question No. 1 carries 20 marks.
iii. Question No. 2 carries 10 marks.
iv. This whole section is of 30 marks in total.

Section B
i. This section consists of 8 questions.
ii. Attempt any 5 questions from question nos. 3 to 10 carrying 14 marks each.
iv. This whole section is of 70 marks in total.

• Question 1
 Answer each of the following questions briefly : [10 × 2 = 20 Marks] (i) What is gross profit ratio and net profit ratio ? (ii) How is ‘cost of goods sold’ calculated ? (iii) What is meant by ‘cash flow statement’ ? (iv) Give two examples of intangible fixed assets. (v) State two differences between share capital and loan capital. (vi) What is the meaning of the word ‘Revaluation’ in partnership accounts ? (vii) What is meant by ‘super profit’ in the context of valuation of goodwill in partnership accounts ? (viii) What is sectional-balancing system ? (ix) State two objectives of a joint venture form of business. (x) What is a cost sheet ?
VIEW SOLUTION

• Question 2
 From the given information, calculate the following ratios : [10 Marks]

(i) Debt equity ratio.

(ii) Total assets to debt ratio.

(iii) Operating ratio.

(iv) Debtors turnover ratio.

(v) Creditors turnover ratio.
 Amount (Rs) Shareholders’ funds 50,000 10% Debentures 25,000 Total Assets 1,75,000 Credit Sales 2,70,000 Credit Purchases 1,80,000 Average Debtors 30,000 Average Creditors 16,000 Cost of goods sold 2,16,000 Operating expenses 24,000

Note : All calculations are to be made to two places of decimal. VIEW SOLUTION

• Question 3
 The following are the details supplied by Gupta and Company Limited in respect of a certain material during the first two weeks of the month : [14 Marks]
 Date Particulars 01.10.08 Opening balance–1,500 units at Rs 10 per unit. 02.10.08 Issued 300 units. 04.10.08 Purchases 1,100 units at Rs 16 each. 05.10.08 Issued 1,300 units. 06.10.08 Purchased 700 units at Rs 22 each. 07.10.08 Issued 750 units. 08.10.08 Returned to stores from issues of October 2–100 units. 09.10.08 Purchases 400 units at Rs 28 each. 13.10.08 Returned stock to supplier from purchases made on October 6. 15.10.08 Stock surplus 50 units.

Prepare a Stores Ledger Account under FIFO method. VIEW SOLUTION

• Question 4
 Rahul sends 500 boxes of medicines to his consignee Barun at a profit of 20% on sale. The cost price of each box of medicine is Rs 1,000. The following were the expenses incurred in connection with the consignment : Consignor’s expenses for despatching the goods–Rs 5,000 Consignee paid Rs 10,000 for duty and Rs 2,000 for the godown rent. Barun was entitled to a commission of 10% on invoice price and 10% of the amount realised above the invoice price. Barun informed Rahul that 400 boxes were sold for Rs 6,00,000. Barun finally remitted a bank draft for the amount due. You are required to prepare a Consignment Account only in the books of Rahul with appropriate working notes. [14 Marks]
VIEW SOLUTION

• Question 5
 From the following balances extracted from the books of accounts of Amit and Company Ltd., prepare the total debtors account and the total creditors account in the General Ledger. [14 Marks]
 Amount (Rs) Opening debtors 32,000 Opening creditors 37,000 Purchases 9,000 Sales 19,600 Paid to creditors 19,750 Discount received 650 Cash received from debtors 15,600 Discount allowed 400 Bills payable accepted 3,000 Bills receivable received 6,000 Returns inwards 1,750 Returns outwards 1,200 Bad debts 900 Bill receivable dishonoured 750
VIEW SOLUTION

• Question 6
 Basu, Harish and Jadav are partners in a firm with capital contributions of Rs 50,000, Rs 40,000 and Rs 30,000 respectively. [14 Marks]

Their partnership agreement provides for the following :

(i) Interest on capitals to be allowed @ 10% p.a.

(ii) Interest on drawings to be charged @ 10% p.a.

(iii) Harish and Jadav are each to be paid salaries @ Rs 500 per month.

(iv) Basu is to be paid a commission on 5% of the net profit.

(v) The remaining profits are to be divided as follows :

40% to Basu, 30% to Harish; 20% to Jadav and 10% carried to a Reserve Account.

The net profit for the year ended 31.12.08 was Rs 50,000. Basu withdrew Rs 1,000 per month at the beginning of each month, Harish withdrew Rs 1,000 per month in the middle of each month and Jadav withdrew Rs 1,000 per month at the end of each month.

You are required to prepare the Profit and Loss Appropriation Account for the year ended 31.12.08 only. VIEW SOLUTION

• Question 7
Bina and Anita are partners. Their partnership agreement provides for the following                                                                     [14 Marks]

(i) Accounts are to be balanced on 31st December each year.

(ii) Profits are to be divided as follows :

Bina : one-half; Anita : one-third and carried to Reserve Account : one-sixth.

(iii) That in the event of death of a partner, her executors will be entitled to the following :

(a) The capital to her credit at the date of death.

(b) Proportionate profit to date of death based on the average profits of the last three completed years.

(c) Share of goodwill based on three years’ purchases of the average profits for the three preceding completed years.

The profits for the three years were : year 2005 – Rs 42,000; year 2006 – Rs 39,000 and year 2007 – Rs 45,000.

On 31.12.07, Anita’s capital stood at Rs 60,000 and firm’s General Reserve Account stood at Rs 30,000. Anita expired on 1.5.08.

From the above, prepared Anita’s Executors Account as would appear in the firm’s ledger transferring the amount to her Loan Account with proper working notes. VIEW SOLUTION

• Question 8
The Balance Sheets of Anand and Co. Ltd. as on 31.03.07 and 31.3.08 were as follows :   [14 Marks]
 Balance Sheet Liabilities 31.03.07 Amount (Rs) 31.03.08 Amount (Rs) Assets 31.03.07 Amount (Rs) 31.03.08 Amount (Rs) Equity Share Capital 45,000 65,000 Fixed Assets 46,700 83,000 General Reserve 5,000 7,500 Stock 11,000 13,000 Profit and Loss A/c 10,000 15,000 Debtors 18,000 19,500 11% Debentures 10,000 20,000 Cash 2,000 2,500 Creditors 8,700 11,000 Preliminary exp. 1,000 500 78,700 1,18,500 78,700 1,18,500

Prepare a schedule of change in working capital and a statement of sources and applications of funds for the year ended 31st March, 2008 with appropriate working notes. VIEW SOLUTION

• Question 9
The following balances have been extracted from the books of Robin Ltd. as on 31.12.08 :  [14 Marks]
 Amount (Rs) Share Capital 10,00,000 Securities premium 1,00,000 12% Debentures 5,00,000 Creditors 2,00,000 Proposed dividend 50,000 Profit and Loss Account (DR) 50,000 Livestock 9,00,000 Investments in Government Bonds 4,00,000 Work-in-progress 4,00,000 Discount on issue of 12% Debentures 1,00,000 Patents 40,000 Unclaimed dividend 10,000 Accounts receivable 20,000 Fixed Deposits 50,000

Prepare the Balance Sheet of  the company as per Schedule VI, Part I of the Companies Act, 1956. VIEW SOLUTION

• Question 10
The directors of Bhagat and Company Ltd. issued 50,000 equity shares of Rs 10 each at Rs 12 per share, payable only Rs 5 on application including the premium Rs 4 on allotment and the balance on final call. Application were received for 70,000 shares out of which applications for 8,000 shares were rejected and their money was refunded. Money overpaid on application was applied towards sums due on allotment. All the monies were duly received except from one shareholder holding 500 shares who failed to pay the final call money.        [14 Marks]

Pass the necessary journal entries to give effect to the above transactions. VIEW SOLUTION
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