ISC Class 12 Specimen Paper 2022 Accounts Semester 2

ISC SEMESTER 2 EXAMINATION
SPECIMEN QUESTION PAPER
ACCOUNTS
Maximum marks : 40
Time allowed : One and a half hour
(Candidates are allowed additional 10 minutes for only reading the paper)
Transactions should be recorded in the answer book.
All calculations should be shown clearly.
All working, including rough work, should be done on the same sheet as, and
adjacent to, the rest of the answer.
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All questions of Section A are compulsory.
All questions from either Section B or Section C are compulsory
The intended marks for questions or parts of questions are given in the brackets [ ].
SECTION A – 26 MARKS
(Answer all questions)

Question 1

Select the correct option for each of the following questions.

(i)1. Relay Ltd. (an unlisted Non NBFC) redeems its 8,000, 10% Debentures of ₹ 100 each [1]
in instalments as follows:

Date of Redemption Debentures to be redeemed

31st March, 2019 2,000

31st March, 2020 5,000

31st March, 2021 1,000

On the basis of the above details, what will be the amount of Debenture Redemption
Reserve which the company will transfer to General Reserve on 31st March, 2021?

(a) ₹ 20,000

(b) ₹ 50,000

(c) ₹ 10,000

(d) ₹ 80,000

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(ii) Which of the following transactions is debited to Revaluation Account? [1]

(a) Increase in the value of Furniture

(b) Increase in Provision for Doubtful Debts

(c) Creditors discharged at a discount

(d) Loss on revaluation of all assets and reassessment of all liabilities

(iii) Orange Ltd. took over assets of ₹ 7,00,000 and liabilities of ₹ 60,000 of Purple Ltd. for [1]
a purchase consideration of ₹ 6,30,000 payable by the issue of 10% Debentures of ₹100
each at a premium of 10% and if need be, a part of the purchase consideration in cash.
How will the company meet the purchase consideration?

(a) By the issue of ₹ 5,72,727, 10% Debentures at a premium of ₹ 57,272 with no
cash.

(b) By the issue of ₹ 5,72,000, 10% Debentures at a premium of ₹ 57,200 and cash
of ₹ 800.

(c) By the issue of ₹ 5,72,720, 10% Debentures at a premium of ₹ 57,272 and cash
of ₹ 8.

(d) By the issue of ₹ 5,72,700, 10% Debentures at a premium of ₹ 57,270 and cash
of ₹ 30.

(iv) Anita and Binita are partners in a firm. Anita had taken a loan of ₹ 15,000 from the [1]
firm. How will Anita’s loan be closed in the event of dissolution of the firm?

(a) By crediting it to Anita’s Capital Account

(b) By debiting it to Anita’s Capital Account

(c) By crediting it to Realisation Account

(d) By debiting it to Cash Account

Question 2

(i) What is the maximum amount of debentures which an unlisted company, other than a [1]
NBFC and HFC, can redeem out of its capital?

(ii) At the time of dissolution of a partnership firm, its Balance Sheet showed stock of [1]
₹ 30,000 comprising easily marketable items, obsolete items and a few miscellaneous
other items. These items were realized as:
• Easily Marketable Items: 65% of the total inventory in full.
• Obsolete items: 20% of the total inventory had to be discarded.
• The miscellaneous other items in the stock at 40% of their book value.
You are required to pass the journal entry for the realisation of stock.

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Question 3 [5]

On 1st April, 2012, Neptune Finance Company (a listed NBFC) issued 4,000, 9 % Debentures
of ₹ 100 each to be redeemed at a premium of 5% on 31st March, 2021.
You are required to pass necessary journal entries for the issue and redemption of
debentures.

Question 4

(i) Suhas Ltd. issued 1,000, 7% Debentures of ₹ 100 each to be redeemed after three [2]
years at a premium of 5%. The face value of the debentures was payable as:
₹ 20 on Application
₹ 30 on Allotment (on 1st May, 2020)
₹ 30 on First call (on 1st October, 2020)
₹ 20 on Final call (on 1st January, 2021)
All the debentures were applied and allotted.
Ali, to whom 20 debentures were allotted, paid the allotment money and the two calls
on 31st March, 2021. The Articles of Association of the company provided for interest
on calls-in-arrear to be charged @ 10% per annum, which Ali paid on 31st March,
2021.
You are required to pass journal entries in the books of Suhas Ltd. to record:
• The adjustment and receipt of interest on calls in arrears
• The entry to close the interest on calls in arrears account

(ii) Naresh, Dhruv and Azeem are partners sharing profits in the ratio of 5:3:7. [3]
Naresh retires from the firm. Dhruv and Azeem decided to share profits in the ratio of
2:3.
The adjusted capital accounts of Dhruv and Azeem at the time of Naresh’s retirement
showed the balances of ₹ 33,000 and ₹ 70,500 respectively.
The total amount to be paid to Naresh is ₹ 90,500 which is paid in cash immediately
by the firm, the cash being contributed by Dhruv and Azeem in such a way that their
capitals become proportionate to their new profit-sharing ratio and the firm maintains
a minimum cash balance of ₹ 5,000 from its existing balance of ₹ 20,000.
You are required to pass journal entries to record:
• Payment made to the retiring partner
• Cash brought in by the remaining partners to pay off the retiring partner

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Question 5

(i) Ravi, Vijay and Sujay were partners sharing profits in the ratio of 1⁄2 : 1⁄3 : 1⁄6. [2]
Vijay decided to retire, his share being taken up by the remaining partners in the ratio
1:4.
On Vijay’s retirement, a loss of ₹ 12,000 was determined upon revaluation of assets
and liabilities.
You are required to:
(a) Calculate the new profit-sharing ratio of the remaining partners.
(b) Pass the journal entry to write off the loss on revaluation of assets and
liabilities.

(ii) On 1st April, 2017, Prasad and Company Limited issued 1,000, 10% Debentures of [3]
₹ 1,000 each at ₹ 980. Under the terms of issue, 1⁄5 of the debentures is annually
redeemable by drawings, the first redemption occurring on 31st March, 2019.
On 31st March, 2018, the company had a balance of ₹ 4,000 in its Capital Reserve A/c.
The company wrote off the discount on issue of debentures over the life-time of the
debentures.
You are required to prepare the Discount on issue of Debentures Account for the
first three years.

Question 6 [5]

Sita and Gita were partners sharing profits and losses in the ratio of 4:5. They dissolved
their partnership on 31st March, 2021, when their Balance Sheet showed the following
balances:

Particulars (₹)

Sita’s Capital 30,000

Gita’s Capital 35,000

Gita’s Current A/c (Dr) 2,000

Contingency Reserve 18,000

P/L A/c (Dr) 4,500

On the date of dissolution:

(i) The firm, upon realisation of assets and settlement of liabilities, made a profit of
₹ 9,000.

(ii) Gita paid the realisation expenses of ₹ 2,000.

(iii) Gita discharged the outstanding salary of the manager of the firm of ₹ 1,000 which
was unrecorded in the books.

You are required to prepare the Partners’ Capital Accounts.

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SECTION B – 14 MARKS
(Answer all questions)

Question 7

(i) Select the correct option in the following question: [1]

Which one of the following analysis is considered as a dynamic analysis?

(a) Vertical analysis

(b) Horizontal analysis

(c) Internal analysis

(d) External analysis

(ii) State with reason whether old furniture written off would lead to inflow, outflow or no [1]
flow of Cash and Cash Equivalents.

Question 8 [5]
From the following extracts of a company’s Balance Sheets and the additional
information, you are required to calculate Cash from Financing Activities for the year
ending 31st March, 2021.

Particulars 31.3.2021 (₹) 31.3.2020 (₹)

Equity Share Capital 9,00,000 7,00,000

10% Preference Share Capital 3,00,000 5,00,000

Securities Premium Reserve 30,000 5,000

12% Debentures 4,00,000 3,00,000

Cash Credit 12,000 10,000

Additional information:

1. During the year 2020-21:

(a) Dividend proposed on Equity Shares in 2019-20 of ₹ 65,000 was declared and
paid.

(b) Debentures were issued on 1st July, 2020, at a discount of 10%.

(c) Interest on cash credit of ₹ 500 was paid.

(d) Underwriting commission of ₹ 25,000 was paid to the underwriters.

(e) The Equity shares were issued at a premium.

2. The 10% Preference Shares were redeemed on 31st March, 2021.

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Question 9 [2]
You are required to prepare a Comparative Statement of Profit & Loss from the
following particulars of Nishant Ltd.

Particulars N. 31.03.2021 31.03.2020
No. (₹) (₹)
Revenue from operations 4,00,000 3,00,000
Cost of raw materials consumed 2,00,000 1,50,000
Changes in inventories of raw materials 25,000 (12,500)

[5]
Question 10

From the following extracts of a company’s Balance Sheets, and the additional
information, you are required to calculate Cash from Operating Activities for the year
ending 31st March, 2021.

Anjan Ltd. reported a profit of ₹ 80,000 for the year ended 31st March, 2021, after
considering the following:

Particulars (₹)

(i) Tax provided during the year 4,000

(ii) Amortization of Patents 10,000

(iii) Profit on sale of Vehicle 3,000

(iv) Writing off Preliminary 2,000
expenses

(v) During the year, machinery costing ₹40,000 (accumulated depreciation
thereon being ₹18,000) was sold for ₹6,000.

31.03.2021 (₹) 31.03.2020 (₹)

Trade Receivable 20,000 16,000

Inventory 12,000 15,000

Cash at Bank 8,000 10,000

Trade Payable 9,000 11,000

Marketable Securities 5,000 2,000

Plant & Machinery 88,000 1,30,000

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SECTION C – 14 MARKS
(Answer all questions)

Question 11

Select and write the correct option for each of the following questions.

(i) How is a top to bottom relationship among the items in a database established? [1]

(a) By Hierarchical schema

(b) By Network schema

(c) By Relational Schema

(d) By all of the above

(ii) Which property describes the various characteristics of an entity? [1]

(a) ER Diagram

(b) Column

(c) Relationship

(d) Attribute

Question 12

Answer each of the following questions briefly:

(i) List the models into which the development of database technology is divided. [2]

(ii) How is index hunting helpful? Give any two measures to achieve index hunting. [2]

(iii) Give the difference between data and information along with an example. [2]

(iv) What is meant by Database Partitioning? [2]

Question 13 [2]

Give any two basic commands of SQL.

Question 14 [2]

List the components of storage manager.

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