MBOSE Class 12 Question Paper 2020 for Accountancy New Course

Total No. of Printed Pages—16
HS/XII/Com/Ac/NC/20

2020

ACCOUNTANCY
(Commerce)

( New 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 Not-for-Profit Organizations,
Partnership Firms and Companies )
( Marks : 60 )
1. Choose and write the correct answer : 1×7=7
(a) Receipts and Payments Account records transactions
of
(i) all credit transactions
(ii) all cash transactions
(iii) all revenue transactions
(iv) all capital transactions

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(b) A and B are partners of a firm. C is admitted and the
new profit-sharing ratio is 5 : 3 : 4. A and B made
equal sacrifice in favour of C. The old ratio between
A and B was

(i) 5 : 3 (ii) 7 : 5

(iii) 1 : 1 (iv) 3 : 2

(c) Capital employed is R2,00,000, normal rate of return
is 15%, profit during the year is R48,000. Therefore,
the super-profit is

(i) R 30,000 (ii) R 18,000

(iii) R 22,000 (iv) R 16,000

(d) If a fixed amount is withdrawn on the first day of
every month, the interest on total drawings will be
calculated for

(i) 6 months (ii) 6·5 months

(iii) 5·5 months (iv) 7 months

(e) Any change in the relationship of existing partners
which result in an end of the existing agreement and
enforces the making of a new agreement is called
(i) Reconstitution of Partnership
(ii) Revaluation of Partnership
(iii) Realization of Partnership
(iv) None of the above

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(f) The portion of called-up capital which is not paid by
the shareholders within a specified time is known as
(i) Calls-in-Arrears
(ii) Reserve Capital
(iii) Nominal Capital
(iv) Subscribed Capital

(g) Debenture holders are entitled to receive from the
company
(i) share of profit
(ii) dividend
(iii) interest
(iv) None of the above

2. Answer the following questions : 1×7=7
(a) State any two occasions on which a firm can be
reconstituted.
(b) What is meant by guarantee of profit to a partner?
(c) What is Reserve Capital?
(d) Give any two sources of finance for redemption of
debentures.
(e) Define goodwill.
(f) Why is Profit and Loss Appropriation Account
prepared?
(g) Mention one guideline of SEBI regarding Debenture
Redemption Reserve (DRR).

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3. From the following information, find out the actual
amount of income from subscriptions : 3
R
Total subscriptions received during the year 80,000
Subscription outstanding at the end of the year 10,000
Subscription outstanding at the beginning of the year 7,000
Subscription received in advance at the
beginning of the year 6,000
Subscription received in advance at the
end of the year 5,000

Or

Calculate the amount of sports material to be shown to
the Income and Expenditure Account of Capital Sports
Club for the year ended 31.3.2019 on the basis of the
following information :

1.4.2018 31.03.2019
R R
Stock of sports material 7,500 6,400
Creditors for sports material 2,000 2,600

Amount paid for sports material during the year was
R19,000.

4. B Ltd. forfeited 100 shares of R100 each issued at R10
premium (at the time of allotment) on which first call of
R30 per share was not received the final call of R20 per
share is not yet called. 40 of these shares were
subsequently reissued at R70 per share as R80
paid-up.
Give necessary Journal Entries for forfeiture and its
reissue. 3

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5. A and B started a partnership business on 1st April,
2017. Their capital contributions were R2,00,000 and
R1,50,000 respectively. The partnership deed provided :
(i) Interest on capital at 10% p.a.
(ii) A to get a salary of R 24,000 p.a. and B R 3,000 per
month
(iii) Profits are to be shared in the ratio of 3 : 2
The profit for the year ended 31.3.2018 before
making above appropriations were R2,16,000. Interest
on drawings amounted to R2,200 for A and R2,500 for B.
Prepare Profit and Loss Appropriation Account. 4

6. Babita, Chetan and David are partners in a firm sharing
profits in the ratio of 2 : 1 : 1 respectively. Firm closes its
accounts on 31st March every year. Chetan died on 30th
September, 2018. There was a balance of R1,25,000 in
Chetan’s Capital Account in the beginning of the year. In
the event of death of any partner, the partnership deed
provides the following :
(i) Interest on capital will be calculated at the rate
of 6% p.a.
(ii) The executor of deceased partner shall be paid
R24,000 for his share of goodwill
(iii) His share of reserve fund which is R12,000 shall
be paid to his executor
(iv) His share of profit till the death will be calculated on
the basis of sales. It is also specified that the sales
during the year 2017–18 were R4,00,000. The sales
from 1st April, 2018 to 30th September, 2018 were
R1,20,000, the profit of the firm for the year ending
31st March, 2018 was R2,00,000
Prepare Chetan’s Capital Account to be prepared to his
executors. 4

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7. Pass the necessary Journal Entries for issue of 1000, 7%
debentures of R100 each in the following cases : 4
(i) Issued at 5% premium redeemable at a premium
of 10%
(ii) Issued at par and redeemable at premium of 8%
Or
Mahesh Ltd. purchased a machinery worth R1,10,000,
half the payment was made by cheque and the remaining
half by issuing 12% debentures of R100 each at a
premium of 10%.
Pass the necessary Journal Entries.

8. The following is the Receipts and Payments Account of a
New Sports Club for the year ended 31.12.2018 :
Receipts & Payments Account of a New Sports Club
for the year ended 31st December, 2018

Receipts R Payments R

To Cash in Hand 150 By Ground Men’s Fee 1,500
” Cash at Bank 2,100 ” Mowing Machine 1,100
” Subscriptions 5,800 ” Rent 500
” Tournament Fund 1,500 ” Salaries to Coaches 3,600
” Life Membership Fees 2,000 ” Tournament Expenses 900
” Entrance Fees 200 ” Office Expenses 2,400
” Donation for Pavilion 3,000 ” Sports Equipment
” Sale of grass 100 Purchased 1,200
” Cash in Hand 350
” Cash at Bank 3,300

14,850 14,850

Subscription due on 31st December, 2017 and on 31st
December, 2018 were R900 and R800 respectively.
Subscription received also include subscription for 2019
R200.

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Sports equipment on hand on 31st December, 2017 was
R1,100. The value placed on equipment on hand on 31st
December, 2018 was R1,300.

The Mowing Machine was purchased on 1st July, 2018
and is to be depreciated @ 20% p.a.

Office expenses include R300 for 2017 and R400 are
still due for payment.

Tournament receipts and expenses are to be separated
from general incomes and expenses.

Prepare Income and Expenditure Account. 6
Or
Following is the Receipts and Payments Account of
Literacy Club for the year ended 31.3.2018 :

Receipts & Payments Account of Literacy Club
for the year ended 31st December, 2018

Receipts R Payments R
Balance b/d 19,550 Salaries 3,000
Subscriptions : Newspapers 2,050
2016-17 1,200 Electricity Bill 1,000
2017-18 26,500 Fixed Deposits
2018-19 500 28,200 (on 1.7.2017 @ 9% p.a.) 20,000
Sale of Newspapers 1,250 Books 10,600
Govt. Grants 10,000 Rent 6,800
Sale of old Furniture Furniture 10,500
(book value 7,000) 5,700 Balance c/d 11,200
Interest on Fixed Deposits 450

65,150 65,150
Additional Information :
(i) Subscriptions outstanding as on 31.03.2017 were
R2,000 and 31.3.2018 R2,500

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(ii) On 31.03.2018, salary outstanding was R600 and
rent outstanding was R1,200.
(iii) The Club owned furniture R15,000 and books
R7,000 on 1.04.2017

Prepare Income and Expenditure Account.

9. A, B and C are partners who share profits and losses in
the ratio 3 : 2 : 1. They decided to dissolve the
partnership firm on 31st March, 2018. The Balance
Sheet at this date is as follows :

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

Liabilities R Assets R

Capitals : Goodwill 2,000

A 10,000 Machinery 10,000

B 1,000 Stock 4,000

C 7,200 18,200 Debtors 7,800

Creditors 8,800 Cash 3,200

27,000 27,000

A took over the machinery at R8,000. Amount realized
from Debtors R6,300; Stock R3,600 and Goodwill
R1,000. Creditors were paid at a discount of R400.
Realization expenses were R300.

Prepare Realization Account, Partners’ Capital Accounts
and Cash Account. 6

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Or
A, B and C are partners sharing profits and losses in
the proportion of 4 : 3 : 2. Their Balance Sheet as at
31st March, 2018 stood as follows :
Balance Sheet of A, B and C
as on 31st March, 2018
Liabilities R Assets R
Capitals : Machinery 5,500
A 4,000 Stock 2,000
B 2,000 Debtors 1,000
C 500 Cash 1,500
Creditors 3,500
10,000 10,000

They agree to dissolve partnership on 31st March, 2018.
A agreed to take over the stock at a valuation of R1,500
and the debtors at a valuation of R700.
The machine is sold at an auction of R2,700.
Prepare Realization Account, Partners’ Capital Accounts
and Cash Account.

10. A and B are partners sharing profits and losses in the
ratio 2 : 3. On 31st March, 2018, their Balance Sheet
was as under :
Balance Sheet of A and B
as on 31st March, 2018
Liabilities R Assets R
Capitals : Cash 18,000
A 48,000 Bills Receivables 24,000
B 84,000 1,32,000 Furniture 28,000
Creditors 64,000 Stock 44,000
Bills Payable 32,000 Debtors 42,000
Profit and Loss Account 14,000 Investments 32,000
Machinery 34,000
Goodwill 20,000
2,42,000 2,42,000

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They admit C into partnership on the following terms :
(i) Furniture and Machinery are to be depreciated by
15%
(ii) Stock is revalued at R48,000
(iii) Outstanding Rent amounted to R1,800
(iv) Prepaid salaries R800
(v) C will bring R30,000 towards capital and R6,000 as
premium for goodwill for 16 th share of profit. Capital
of A and B are to be adjusted in the new profit-
sharing ratio taking the capital of C as the base
(vi) Adjustment of capitals will be made in cash
Prepare Revaluation Account, Partners’ Capital Accounts
and Balance Sheet. 8
Or
Ajay, Vijay and Naresh were partners sharing profits in
the proportions of 12 , 13 and 16 respectively. The Balance
Sheet of the firm on 31st March, 2018 was as follows :

Balance Sheet of Ajay, Vijay and Naresh as on 31st March, 2018

Liabilities R Assets R
Sundry Creditors 17,000 Cash at Bank 10,000
Workmen’s Compensation Debtors 40,000
Fund 13,000 Less : Provision 1000 39,000
Reserve Fund 18,000 Stock 15,000
Capitals : Investments 16,000
Ajay 40,000 Patents 8,000
Vijay 30,000 Plant and Machiery 50,000
Naresh 20,000

1,38,000 1,38,000
Naresh retired on the above date on the following terms :
(i) Goodwill of the firm was valued at R 42,000 and it is
to be adjusted through Partners’ Capital Accounts

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(ii) Value of patents was to be reduced by 20% and that
of Plant and Machinery to 90%

(iii) Provision for doubtful debts was to be raised to
6%

(iv) Naresh took over the investments at a value of
R17,800

(v) Liability on account of Workmen Compensation
Fund was only R12,600

Prepare Revaluation Account, Partners’ Capital Accounts
and Balance Sheet.

11. A company issued 10000 shares of R10 each payable
as follows :

On application — R 3

On allotment — R 3

On first call — R 2

On second and final call — R 2
Applications were received for 20000 shares.
Applications for 5000 shares were rejected and allotment
was made proportionately to the remaining applicants.
The directors made both the calls and all the money were
received, except the allotment, first call and final call on
400 shares, which were subsequently forfeited. Later,
300 of the forfeited shares were reissued as fully paid
@ R9 per share.
Give Journal Entries to record the above transactions. 8

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Or
A Limited Company invites applications for 50000 Equity
Shares of R10 each payable as follows :

On application—R3

On allotment—R4

On first call—R2

On final call—R1

Applications were received for 70000 shares. Allotments
were made on the following bases :

(i) To applicants for 10000 shares, in full.

(ii) To applicants for 60000 shares—40000 shares.

Excess money paid on applications was utilized towards
allotment money.

A shareholder who was allotted 1000 shares out of the
group applying for 60000 shares failed to pay allotment
money and money due on calls. These shares were
forfeited. 600 of forfeited shares were reissued as fully
paid on receipt of R8 per share.

Pass Journal Entries in the books of the company.

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PART—B
( Analysis of Financial Statements )
( Marks : 20 )

12. Choose and write the correct answer : 1×3=3

(a) Liquid Asset is equal to
(i) Current Assets + Stock
(ii) Current Assets – Stock
(iii) Current Assets – (Stock + Prepaid Expenses)
(iv) None of the above

(b) Ideal current ratio is
(i) 1 : 1
(ii) 1 : 2
(iii) 2 : 1
(iv) 3 : 1

(c) Cash Flow Statement is governed by
(i) AS-3 (Revised)
(ii) AS-2 (Revised)
(iii) AS-9
(iv) AS-1 (Revised)

13. Give the formula of stock turnover ratio. 1

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14. State any two limitations of ratio analysis. 1
15. What is meant by cash and cash equivalents while
preparing Cash Flow Statement? 1
16. From the following statement of profit and loss for the
year ended 31st March, 2019 and 2018, prepare a
comparative statement of profit and loss of “Good
Services Limited” : 4

Particulars 2019 2018
R R

Revenue from operations 20,00,000 15,00,000
Other income 10,00,000 4,00,000
Expenses 21,00,000 15,00,000
Rate of income tax was 50%.
17. A business has current ratio of 3 : 1 and quick ratio of
1·2 : 1 and the working capital is R1,80,000.
Calculate the value of current liability and inventory. 4

18. From the following Balance Sheets of Vivek Ltd., prepare
Cash Flow Statement : 6
Particulars 31.03.2018 31.03.2017
R R
I. Equity and Liabilities
1. Shareholders’ Fund :
(a) Share Capital 2,90,000 2,50,000
(b) Reserves and Surplus 1,52,000 50,000
2. Current Liabilities :
(a) Trade Payables 5,000 23,000
(b) Short-term Provisions
(provision for tax) 35,000 27,000

4,82,000 3,50,000

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Particulars 31.03.2018 31.03.2017
R R
II. Assets
1. Non-current Assets :
Fixed Assets :
(a) Tangible Assets :
(i) Building 80,000 1,00,000
(ii) Plant 70,000 40,000
(b) Intangible Assets 20,000 30,000
2. Current Assets :
(a) Inventory 95,000 45,000
(b) Trade Receivables 2,00,000 1,20,000
(c) Cash and Cash Equivalents 17,000 15,000

Total 4,82,000 3,50,000
Additional Information :
(i) Depreciation charged on plant was R30,000 and on
building R50,000
(ii) Income tax paid during the year R25,000
Or

Following are the Balance Sheets as at 31st March, 2018
and 2017 :

Particulars 31.03.2018 31.03.2017
R R
I. Equity and Liabilities
1. Shareholder’s Fund :
(a) Share Capital 12,00,000 8,00,000
(b) Reserves and Surplus
(Profit and Loss Balance) 3,50,000 4,00,000
2. Non-current Liabilities :
Long-term Borrowings 4,40,000 3,50,000
3. Current Liabilities :
Trade Payables 60,000 50,000

20,50,000 16,00,000

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II. Assets
1. Non-current Assets :
(a) Fixed Assets :
(i) Tangible Assets 12,00,000 9,00,000
2. Current Assets :
(a) Inventories 2,00,000 1,00,000
(b) Trade Receivables 3,10,000 2,30,000
(c) Cash and Cash Equivalents 3,40,000 3,70,000

20,50,000 16,00,000

Prepare a Cash Flow Statement after taking into account
that depreciation charged on Tangible Fixed Assets was
R1,20,000.

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HS/XII/Com/Ac/NC/20/44 20K—