MBOSE Class 12 Question Paper 2018 for Accountancy

Total No. of Printed Pages—12
HS/XII/Com/Ac/18

2018

ACCOUNTANCY

( Commerce )

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 )

1. Choose and write the correct answer : 1×4=4
(a) The Receipts and Payments Account records
receipt and payment of

(i) revenue nature only

(ii) capital nature only

(iii) both revenue and capital nature

/53

( 2 )

(b) Which of the following does not appear in the
Profit and Loss Appropriation Account?

(i) Salaries to partners

(ii) Interest on capital

(iii) Drawings

(c) A and B are partners sharing profit in the ratio
of 5 : 3. C is admitted with 1th share in profit.
4
The new sharing ratio will be

(i) 4:2:1

(ii) 5:3:4

(iii) 15 : 9 : 8

(d) Premium received on issue of shares is shown at

(i) assets side

(ii) liabilities side

(iii) debit side of statement of Profit and Loss
Account

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

(a) What do you understand by life membership
fees?

(b) Mention any one essential feature of
partnership.

( 3 )

(c) Give one point of distinction between a share
and a debenture.

(d) What is a partnership deed?

3. What do you mean by non-profit organization? 2

4. A and B are partners sharing profit in the ratio
of 5 : 4. They admit C for 1rd share which he
3
acquires in equal proportion from both. Find the new
profit sharing ratio. 2

5. A firm has earned R 1,00,000 as average profits
during the last few years. Normal rate of return in
this class of business is 10%. Find out goodwill
according to capitalization of superprofit method, if
the value of assets amounted to R 10,00,000 and
liabilities amounted to R 2,00,000. 2

6. What is meant by authorised capital? 2

7. Distinguish between equity shares and preference
shares (any three points). 3

8. Define Profit and Loss Appropriation A/c. 3

( 4 )

9. AB Ltd. purchased building costing R 4,05,000.
It was agreed that the purchase consideration
be paid by issue 12% debentures of R 100 each.
Assuming that debentures have been issued (a) at
par and (b) at a discount of 10%.

Pass Journal Entries. 3

10. What are the uses of security premium? 3

11. Alok Ltd. forfeited 300 shares of R 10 each
fully called up, held by Ram for non-payment
of allotment money of R 3 per share and final
call money of R 4 per share. Out of these shares,
250 were reissued to Shyam for a total payment
of R 2,000.

Pass necessary Journal Entries. 4

12. Pass the Journal Entries to record the issue of
debentures in the following cases : 4

(i) 5000, 15% debentures of R 100 each issued at a
discount of 5% and redeemable at premium of
5% after 5 years

(ii) 10000, 15% debentures of R 100 each issued at
a premium of 10% and redeemable at par after
6 years

( 5 )

13. Elite Sports Club gives you the following
Receipts and Payments Account for the year ended
31st December, 2017 :
Receipts R Payments R
Cash in hand 150 Mowing machine 1,100
Cash at bank 2,100 Rent 500
Rent of the hall 3,000 Groundsmen’s fees 1,500
Sale of grass 100 Salaries to coaches 4,500
Life membership 2,000 Office expenses 2,400
Entrance fees 200 Sports equipment 1,200
Subscriptions 5,800 Cash in hand 350
Donations 1,500 Cash at bank 3,300
14,850 14,850

Additional Information :
(i) Subscription due on 31st December, 2016 and
31st December, 2017 were R 900 and R 800
respectively
(ii) Subscription received also include subscription
for the year 2018 amounting to R 200
(iii) Sports equipment in hand on 31st December,
2016 was R 1,100. The value placed on
this equipment in hand on 31st December, 2017
was R 1,300
(iv) The mowing machine was purchased on
1st January, 2017 and is to be depreciated @
20% p.a.
(v) Office expenses include R 300 for 2016 and
R 400 are still due for payment

Prepare Income and Expenditure Account for the
year 2017. 6

( 6 )

14. S Ltd. invited application for the allotment of
80000 equity shares of R 10 each at par. The amount
was payable as follows :
On application—R 2 per share
On allotment—R 4 per share
On first and final call—R 4 per share

Application for 110000 shares were received.
Application for 10000 shares were rejected. Shares
were allotted on prorata basis to the remaining
applicants. Excess application money received
was adjusted towards allotment. All calls were made
and were duly received. Manoj who was allotted
2000 shares failed to pay the first and final call. His
shares were forfeited. The forfeited shares were
reissued for R 24,000 fully paid-up.

Pass necessary Journal Entries to record the above
transaction. 6

15. A and B are partners with profit sharing ratio of 2 : 1.
The Balance Sheet of the firm on 31st March, 2016
was as follows :
Balance Sheet
Liabilities R Assets R
Creditors 20,000 Sundry Debtors 40,000
Bills Payable 15,000 Less : Provision 3,600 36,400
Reserve Fund 12,000 Stock 20,000
Capital : Building 25,000
A 40,000 Patents 2,000
B 30,000 70,000 Machinery 33,600

1,17,000 1,17,000

( 7 )

They admitted C into partnership on this date. The
new profit sharing ratio is agreed as 3 : 2 : 1 on the
following terms :

(i) C brings R 10,000 in cash as his share of
goodwill and R 19,000 as his capital

(ii) Provision for doubtful debts is to be reduced
by R 2,400

(iii) There is an old typewriter valued at R 2,600.
It does not appear in the books of the firm and
it is to be recorded now

(iv) Patents are now valueless

Prepare Revaluation Account, Capital Accounts and
Opening Balance Sheet of A, B and C. 2+2+2=6

16. The Balance Sheet of X , Y and Z who are partners in
a firm sharing profit according to their capitals as on
31st March, 2016 was as under :
Balance Sheet

Liabilities R Assets R
Creditors 21,000 Building 1,00,000
X’s Capital 80,000 Machinery 50,000
Y’s Capital 40,000 Stock 18,000
Z’s Capital 40,000 Debtors 20,000
General Reserve 20,000 Less : Provision
for Bad Debts 1,000 19,000
Cash at Bank 14,000

2,01,000 2,01,000

( 8 )

On that date, Y decided to retire from the firm on the
following terms :

(i) Building to do appreciated by 20%

(ii) Provision for bad debts was to be raised to 15%

(iii) Machinery to be depreciated by 20%

(iv) Goodwill of the firm is valued at R 72,000 and
the retiring partner’s share is adjusted through
the Capital Accounts of the remaining partners

Prepare Revaluation A/c, Capital A/cs of partners
and the Balance Sheet after retirement of Y . 2+2+2=6

Or

A, B and C share profits as 2 : 2 : 1. A died on
30th June, 2017. The partnership deed provides that
on the death of a partner, he will get the following :

(i) Balance in his capital which was R 1,25,000 on
31st March, 2017

(ii) Goodwill of the firm which was valued at
R 90,000

( 9 )

(iii) His share of profit up to the date of death which
is to be based on the average profits of last four
years ending on 31st March :
2017—R 1,50,000
2016—R 90,000
2015—R 85,000
2014—R 75,000

(iv) Partners are entitled to interest on capital
@ 6% p.a.

(v) B and C shared profits equally after the death
of A

Prepare A’s Capital A/c and A’s Executor’s A/c. 6

( 10 )

PART—B

( Financial Statement Analysis )

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

(a) An example of cash flow from investing
activities is

(i) issue of shares

(ii) repayment of long-term borrowings

(iii) purchase of raw materials

(iv) sale of fixed assets

(b) Ideal current ratio is

(i) 1:1

(ii) 1:2

(iii) 2 : 1

(iv) 3 : 1

18. (a) Give the formula of stock turnover ratio. 1

(b) What are cash and cash equivalent? 1

19. State any three limitations of financial statement
analysis. 3

20. What are the liquidity ratios? 3

( 11 )

21. A Ltd. has current ratio of 3·5 and acid test ratio
of 2 : 1. If inventory is R 30,000, find out its total
current assets and total current liabilities. 2+2=4

22. From the following Liabilities and Assets, prepare a
Cash Flow Statement for the year 2017 : 6
Liabilities 31.03.2016 31.03.2017
( R) ( R)
Share Capital 2,00,000 2,50,000
General Reserve 50,000 60,000
Profit and Loss Account 30,500 30,800
Bank Loan 70,000 —
Sundry Creditors 1,50,000 1,35,000
Provision for Tax 30,000 35,000
5,30,500 5,10,800
Assets 31.03.2016 31.03.2017
( R) ( R)
Land and Building 2,00,000 1,90,000
Plant and Machinery 1,50,000 1,69,000
Stock 1,00,000 74,000
Sundry Debtors 80,000 64,200
Cash 500 600
Bank — 8,000
Goodwill — 5,000
5,30,500 5,10,800

Additional Information :
(i) Dividend of R 23,000 was paid
(ii) Depreciation written off on building R 10,000
and machinery R 14,000

( 12 )

Or

From the following information, prepare Cash
Flow Statement of Smart Ltd. for the year
ending 31.03.2016 :
Particulars Amount ( R )

Profit during the year 2,50,000
Issue of shares during the year 1,00,000
Provision for tax made 50,000
Repayment of long-term loans 30,000
Opening balance of cash 25,000
Increase in debtors 31,000
Increase in creditors 40,000
Sale of fixed assets 25,000
Depreciation on fixed assets 5,000
Tax paid during the year 40,000
Closing balance of cash 3,94,000

HHH

8K—3900/53 HS/XII/Com/Ac/18