MBOSE Class 12 Question Paper 2020 for Accountancy Old Course

Total No. of Printed Pages—15
HS/XII/Com/Ac/OC/20

2020

ACCOUNTANCY

(Commerce)

( Old Course )

Full Marks : 80

Time : 3 hours

The figures in the margin indicate full marks for the questions

General Instructions :
(i) This question paper contains two Parts—A and B.
(ii) Part—A and Part—B are compulsory for all
candidates.
(iii) All parts of the questions should be attempted at one
place.

PART—A
( Accounting for Non-Profit Organizations,
Partnership Firms and Companies )
( Marks : 60 )
1. Choose and write the correct answer : 1×4=4
(a) Life membership fee is
(i) liability (ii) income
(iii) expenses (iv) assets

/45 [ P.T.O.

( 2 )

(b) Partners are entitled to receive... in the absence of
partnership agreement.

(i) Salaries

(ii) Interest on capital

(iii) Interest on partners’ loan

(iv) Interest on drawings

(c) Accumulated profits and losses on the admission
will be distributed in the

(i) old profit-sharing ratio

(ii) new profit-sharing ratio

(iii) sacrificing ratio

(iv) gaining ratio

(d) Debenture holders get

(i) interest

(ii) dividend

(iii) bonus

(iv) All of the above

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2. Answer the following questions : 1×4=4

(a) Give any two examples of capital receipts.

(b) Write any two items appearing in debit side of
Partners’ Current Accounts.

(c) What do you mean by Super Profit?

(d) What are convertible debentures?

3. Give two points of distinction between Receipts &
Payments Account and Income & Expenditure Account. 2

4. Calculate goodwill at one and half years’ purchase of the
average profit of last 5 years. The firm earned profit
during the first three years as R 20,000; R 18,000;
R 9,000 and suffered losses of R 2,000 and R 5,000. 2

5. Write any two points of distinction between sacrificing
ratio and gaining ratio. 2

6. What is ‘Private Placement of Shares’? 2

7. State the provisions of the Partnership Act, 1932, in the
absence of a partnership agreement regarding the
following : 3

(a) Division of profit

(b) Interest on partners’ capital

(c) Interest on partners’ drawings

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( 4 )

8. Explain the term ‘minimum subscription’. 3

Or

Explain the term ‘Employees Stock Option Plan’.

9. A Ltd. forfeited 100 shares of R 20 each fully called up
for non-payment of 1st call of R 3 per share and final call
of R 5 per share. All these shares were re-issued at R15
per share, fully paid up.
Pass Journal entries for the forfeiture and re-issue of
shares in the books of A Ltd. 3

10. Moonlight Ltd. purchased a building from Ganesh Ltd.
for R14,40,000 and issued 15% debentures of R100
each.
Pass Journal entries in the books of Moonlight Ltd. if
debentures are issued at 20% premium. 3

11. Give any four points of difference between Reserve
Capital and Capital Reserve. 4

12. Pass Journal entries to record the issue of debentures in
the following cases :

(i) 5000, 15% debentures of R100 each issued at a
premium of 5% and redeemable at a premium of
10% after 5 years

(ii) 10000, 12% debentures of R100 each issued at
a premium of 10% and redeemable at par after
6 years 4

HS/XII/Com/Ac/OC/20/45 [ Contd.

( 5 )

13. Following is the Receipts and Payments Account
of Shillong Club for the year ended 31st December,
2018 :

Receipts & Payments A/c
for the year ended 31st December, 2018

Receipts R Payments R

To Balance b/d 10,000 By Salary 21,000
” Subscriptions 52,000 ” Billiard Table 20,000
” Entrance Fee 5,000 ” Office Expenses 16,000
” Donation 6,000 ” Printing and Stationary 15,000
” Hire of Hall 20,000 ” Sports Equipment
” Sale of Old Newspapers 1,000 (1.07.2018) 40,000
” Legacy 37,000 ” Balance c/d 19,000

1,31,000 1,31,000

Other Information :

On 31.12.2018 subscription outstanding was R 2,000
and on 31.12.2017 subscription outstanding was
R 3,000. Salary outstanding on 31.12.2018 was R 1,500.

On 1.1.2018 the club had building R 75,000, furniture
R 18,000, 12% investment R 30,000 and sports
equipments R 30,000. Depreciation is to be charged on
furniture and sports equipment including purchases
@ 10% p.a.

Prepare Income & Expenditure A/c of the club for the
year ended 31st December, 2018. 6

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( 6 )

Or
From the following Receipts & Payments Account of a
club and from the information supplied, prepare
an Income & Expenditure Account for the year ended
31st December, 2018 :

Receipts & Payments A/c
for the year ended 31st December, 2018

Receipts R Payments R
To Balance b/d 250 By Salaries 1,200
” Subscriptions : ” General expenses 300
2017 250 ” Electric charges 200
2018 1,000 ” Books 100
2019 200 ” Newspapers 400
” Sale of Old Furniture ” Postage 50
(costing R100) 60 ” Furniture 250
” Rent Received for the use 740 ” Balance c/d 500
of Hall
” Profit from Entertainment 400
” Sale of Newspaper 100

3,000 3,000
Information :
(i) The club has 50 members, each paying annual
subscription of R25. Subscription outstanding on
31st December, 2017 were R300
(ii) On 31st December, 2018 salaries outstanding
amounted to R100, salaries paid included R100 for
the year 2017
(iii) On 1st January, 2018, the club owned land and
building valued at R10,000, furniture R600 and
books R500

HS/XII/Com/Ac/OC/20/45 [ Contd.

( 7 )

14. AB Ltd. invited applications for 100000 equity shares of
R100 each issued at a premium of 10%. The amount was
payable as follows :
On application—R 30
On allotment—R 40 (including premium)
On final call—R 40
Applications for 150000 shares were received.
Applications for 30000 shares were rejected and pro rata
allotment was made to the remaining applicants. All calls
were made and were duly received except the final call
on 1000 shares held by Kumar. His shares were
forfeited. All the forfeited shares were re-issued at R 120
per share as fully paid up.
Pass necessary Journal entries in the books of AB Ltd. 6
Or
A Co. Ltd. offered to the public 20000 shares of R100
each at a premium of R 10 per share. The payment was
to be as follows :
On application—R 20
On allotment—R 40 (including premium)
On final call—R 50
Applications were received for 35000 shares.
Applications for 10000 shares were rejected. The
allotment was made pro rata to the remaining
applicants, excess application money being applied
towards the amount due on allotment. The directors
made the call. One shareholder holding 500 shares
failed to pay the call and as a consequence his shares
were forfeited. These shares were reissued as fully paid
at R80 per share.
Show the Journal entries in the books of A Co. Ltd.

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( 8 )

15. The following was the Balance Sheet of A and B
who are sharing profits in the ratio of 2 : 1, as on
31st December, 2018 :

Balance Sheet of A and B
as on 31st December, 2018

Liabilities R Assets R
Sundry Creditors 65,900 Buildings 50,000
General Reserves 30,000 Plant and Machinery 35,000
Capital Accounts : Stock 20,000
A 30,000 Sundry Debtors 9,700
B 20,000 50,000 Cash in Hand 1,200
Bank 30,000

1,45,900 1,45,900

On this date C is admitted into the partnership on the
following terms :
(i) C was to bring R15,000 as his capital and R6,000
as goodwill for one-fourth share in the firm
(ii) That the values of the stock and plant and
machinery were to be reduced by 5%
(iii) That a reserve was to be created in respect of
sundry debtors R 750
(iv) That the Buildings A/c was to be appreciated by
10%
(v) That goodwill money was to be retained in the
business

Prepare Revaluation Account, Partners’ Capital Accounts
and the Balance Sheet of the new firm. 2+2+2=6

HS/XII/Com/Ac/OC/20/45 [ Contd.

( 9 )

Or
Given below is the Balance Sheet of Krishna and Suresh
as at 31st March, 2018 who are partners in a firm
sharing profits in the ratio of 3 : 2 :

Balance Sheet of Krishna and Suresh
as on 31st March, 2018

Liabilities R Assets R
Creditors 15,000 Plant and Machinery 30,000
Reserve 5,000 Patents 5,000
Capital Accounts : Furniture 3,000
Krishna 30,000 Stock 16,000
Suresh 20,000 50,000 Debtors 15,000
Cash 1,000

70,000 70,000

On 1st April, 2019 Mohan is admitted as a partner for
one-fifth share on the following terms :

(i) He is to contribute R14,000 as his share of capital
which includes his share of premium of goodwill

(ii) Goodwill is valued at 2 years’ purchase of the
average profits of the last 4 years, which were
R10,000; R9,000; R 8,000 and R 13,000 respectively

(iii) Plant and machinery to be written down to R25,000
and Patents written up by R8,000

Prepare the Revaluation Account, Partners’ Capital
Accounts and the Balance Sheet of the new firm.

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( 10 )

16. A, B and C were carrying on partnership business
sharing profits in the ratio of 3 : 2 : 1 respectively. On
31st December, 2018, the Balance Sheet of the firm
stood as follows :

Balance Sheet of A, B and C
as on 31st December, 2018

Liabilities R Assets R
Creditors 27,180 Cash 9,400
Capital Accounts : Debtors 16,000
A 30,000 Stock 23,380
B 20,000 Building 46,000
C 20,000 70,000 Profit and Loss Account 2,400

97,180 97,180

B retired on the above mentioned date on the following
terms :

(i) Building to be appreciated by R14,000

(ii) Provision for doubtful debts to be made at 5% on
debtors

(iii) Goodwill of the firm is valued at R36,000 and
adjustment in this respect to be made in the
continuing Partners’ Capital Accounts without
raising Goodwill Account

(iv) R6,000 to be paid to B immediately and the balance
in his Capital Account to be transferred to his Loan
Account

Prepare Revaluation Account, Capital Accounts and the
Balance Sheet after B’s retirement. 6

HS/XII/Com/Ac/OC/20/45 [ Contd.

( 11 )

Or
A, B and C were partners in a firm sharing profits in the
ratio of 5 : 3 : 2. On 31st March, 2018, their Balance
Sheet was as under :

Balance Sheet of A, B and C
as on 31st March, 2018

Liabilities R Assets R
Creditors 11,000 Buildings 20,000
Reserves 6,000 Machinery 30,000
Capital Accounts : Stock 10,000
A 30,000 Patents 11,000
B 25,000 Debtors 8,000
C 15,000 70,000 Cash 8,000

87,000 87,000

A died on 1st October, 2018. It was agreed between his
executors and the remaining partners that :
(i) Goodwill to be valued at 2½ years’ purchase of
the average profits of the previous 4 years, which
were :
Years R

2014-2015 13,000

2015-2016 12,000

2016-2017 20,000

2017-2018 15,000

(ii) Patents be valued at R8,000; Machinery at R28,000
and Buildings at R25,000

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( 12 )

(iii) Profit for the year 2018-2019 is to be taken as
having accrued at the same rate as that of the
previous year

(iv) Interest on capital be provided at 10% p.a.

(v) A sum of R6,000 was to be paid immediately to the
executor and the balance transferred to his
(Executor) Loan Account.

Prepare A’s Capital Account and A’s Executor’s Account
as on 1st October, 2018.

HS/XII/Com/Ac/OC/20/45 [ Contd.

( 13 )

PART—B
( Financial Statement Analysis )
( Marks : 20 )

17. Choose and write the correct answer : 1×2=2

(a) Common-size statements are also known as
(i) horizontal analysis
(ii) vertical analysis
(iii) external analysis

(b) Debt to Equity ratio measures.... of the business.
(i) profitability
(ii) short-term financial position
(iii) long-term financial position

18. (a) Name the formula for calculating operating ratio. 1

(b) Give any two examples of cash inflows from
investing activities. 1

19. State three importances of Financial Statement
Analysis. 3

20. Calculate Stock Turnover Ratio from the following : 3
R
Opening Stock 29,000
Closing Stock 31,000
Sales 3,20,000
Gross profit ratio is 25% on sales.

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( 14 )

21. (a) What is the standard norm of liquid ratio?

(b) If current liabilities are R 30,000, current ratio is
2.25 times and liquid ratio is 1.25 times, calculate
Current Asset, Liquid Asset and Stock in Trade.
1+1+1+1=4

22. Charles Ltd. made a profit of R1,00,000 after charging
depreciation of R20,000 on assets and a transfer to
general reserve of R30,000. The goodwill amortised was
R7,000 and gain on sale of machinery was R3,000.

Other information available to you (changes in the value
of current assets and current liabilities) are—trade
receivable showed an increase of R3,000; trade payables
an increase of R6,000; prepaid expenses an increase of
R200 and outstanding expenses decrease of R2,000.

Ascertain Cash Flow from operating activities. 6
Or
From the following Balance Sheet of XY Ltd., prepare a
Cash Flow Statement :

Particulars Note 31.03.2018 31.03.2017
No. R R

I. Equity and Liabilities :
1. Shareholder’s Funds :
(a) Share Capital 1 2,50,000 2,25,000
(b) Reserve and Surplus 2 59,000 35,000
2. Current Liabilities :
Trade Payable 49,500 37,500

3,58,500 2,97,500

HS/XII/Com/Ac/OC/20/45 [ Contd.

( 15 )

Particulars Note 31.03.2018 31.03.2017
No. R R

II. Assets

1. Non-current Assets :

Fixed Assets :

(a) Tangible Assets
(Machinery) 3 1,60,000 1,20,000

(b) Intangible Assets
(Goodwill) 4 20,000 36,000

2. Current Assets :

(a) Inventory 15,000 10,000

(b) Trade Receivable 1,54,500 1,19,000

(c) Cash and Cash Equivalents 9,000 12,500

3,58,500 2,97,500

Depreciation charged on Machinery was R10,000.



HS/XII/Com/Ac/OC/20/45 20K—820