2nd PUC Accountancy Model Question Paper 2 with Answers

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Karnataka 2nd PUC Accountancy Model Question Paper 2 with Answers

Time: 3 Hrs 15 Min
Max. Marks: 100

Instructions: –

1. All sub questions of Section – A should be answered continuously at one place.
2. Provide working notes wherever necessary.
3. 15 minutes extra time has been allotted for the candidates to read the questions.
4. Figures in the right hand margin indicates full marks.

Section – A

I. Answer any Eight questions, each question carries One mark : ( 8 × 1 = 08 )

Question 1.
Receipt and payment account is a summary of all capital receipts and payments (state true / false)
Answer:
False

Question 2.
State any one feature of partnership.
Answer:
Nature of the business/Profit or loss sharing ratio.

Question 3.
At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to:
(a) All partner capital accounts
(b) New partner’s capital A/c
(c) Old partners capital A/c
(d) None of the above
Answer:
Old partners capital A/c

Question 4.
Why gain ratio is required on retirement of a partners?
Answer:
For the purpose of writing off the goodwill created to the extent of retiring partner’s share.

Question 5.
………………. is minimum numbers of members in a public Ltd., company.
Answer:
Seven

Question 6.
Debenture holder are ………………. of the company.
Answer:
Creditors

Question 7.
Expand EBIT.
Answer:
Earning before interest and tax.

Question 8.
The financial statement of a business enterprise include.
(a) Balance sheet
(b) Statement of profit and loss
(c) Cash flow statement
(d) All of the above
Answer:
All of the above

Question 9.
Name any one type of Turnover Ratio.
Answer:
Inventory turnover ratio

Question 10.
Give an example for investing activities.
Answer:
Cash payments to acquire fixed assets.

Section – B

II. Answer any Five questions, each question carries Two marks : ( 5 x 2 = 10 )

Question 11.
State any two features of receipts and payments a/c.
Answer:
Features of receipts and payments account:

1. it is a real account
2. It is prepared on cash system of accounting.

Question 12.
Name any two methods for calculation of interest on drawings.

Fixed capital system	Fluctuating capital system
Two separate accounts are maintained for each partner i.e., capital account and current account.	Each partner has one account, i.e., capital account.
Capital account balance remains unchanged unless there is addition to or withdraw of capital	Capital account balance fluctuates from year to year.

Question 13.
What is Revaluation A/c?
Answer:
Revaluation account is an account prepared in connected with recording of increase or decrease in the value of assets and liabilities and to find out the profit or loss on revaluation.

Question 14.
Give the meaning of Realisation Account.
Answer:
Realisation account is an account prepared at the time of dissolution of a firm to ascertain the profit or loss on the realisation of assets and payment of liabilities.

Question 15.
State any two types of issue of shares.
Answer:
Preference shares
Equity shares.

Question 16.
List any two objective of financial statements.
Answer:
Two objectives of financial statements:

1. To present a true and fair view of the financial performance, ie., profit / loss of the business
2. To provide information about cash flows.

Question 17.
What is Trend Analysis?
Answer:
It is a financial statement analysis method that determines the direction upwards or downwards and involves computation of percentage relationship that each statement items bear to the same item in the base year. .
Or
It is a financial statement analysis technique that shows changes in the amounts of corresponding • financial statement items over a period of time.

Question 18.
What is cash flow statement?
Answer:
A cash flow statement is a statement showing inflows (receipts) and outflows (payments) of cash during a particular period.

Section – C

III. Answer any Four questions, each question carries Six marks : ( 4 x 6 = 24 )

Question 19.
Anita and Kavita are partners sharing profits in the ratio 3 : 2 with capital of ₹ 1,00,000 and ₹ 60,000 respectively. Interest on capital is agreed at 6% per annum. Kavita is to be allowed an annual salary of ₹ 5,000. During the year Anita withdrew ₹ 10,000 and Kavita ₹ 5,000 for personal use. The interest on the same being ₹ 1000 and ₹ 500 respectively. The profit for the year ending March 31, 2018, amounted ₹ 25,000.
Prepare profit and loss appropriation account.
Answer:
Profit and loss appropriation a/c for the year ending 31st March 2018

Question 20.
Prakash and Akash are partners sharing profits and losses in the ratio of 3 : 2. They admitted Ramesh into the partnership giving him 1/5th share which he acquire from Prakash and Akash in 2:1 ratio.
Calculate New Profit Sharing Ratio.
Answer:
Share sacrificed = Sacrifice Ratio x New Partner’s share

New share = Old share – Share sacrificed

Ramesh = \(\frac{1}{5}\) i.e., \(\frac{3}{15}\) [NPSR =7 : 5 : 3]

Question 21.
Akash, Anil and Adarsh are partners sharing profits and losses in the ratio of 3 : 2 : 1. Their capitals as on 01.04.2017 were ₹ 70,000, ₹ 90,000 and ₹ 60,000 respectively. Akash died on 31.12.2017 and the partnership deed provided the following:
a. Interest on capital at 8% p.a.
b. Akash’s salary ₹ 2,000 per month.
c. His share of accrued profit upto the date of death based on previous years profit. Firm’s
profit for 2016-17 ₹ 24,000.
d. His share of goodwill ₹ 12,000.
Ascertain the amount payable to Akash’s excecutor by preparing Akash1’s Capital A/c

Question 22.
A company Ltd issued 20,000,12% debentures of ₹ 100 each at a premium of ₹ 10 per debenture payable as follows:
On application ₹ 30
On allotment ₹ 60 (Including premium)
On first and final call ₹ 20.
All the debentures were subscribed and the money duly received.
Pass the journal enters upto the stage of first and final call money due.
Answer:

Question 23.
From the following information extracted from the books of Karnataka Ltd. Prepare Balance Sheet of the company as at 31.03.2017 as per schedule. III of the companies act of 2013.
Tab;le
Answer:

Question 24.
Current Ratio is 3 : 2 and working capital is ₹ 1,00,000. Calculate the amount of current assets
and current liabilities.
Answer:

Given →p Current Ratio =3 : 2
Working Caphal = Current assets – Current Liabilities
1,00,000 = 3 – 2, 1,00,000=1
∴ Current Assets = 1,00,000 x \(\frac{3}{1}\) = 3,00,000
∴ Current Assets = 1,00,000 x \(\frac{3}{1}\) = 3,00,000

Question 25.
From the following information calculate cash flows from financing activities

During the year secured loan repaid ₹ 4,00,000 with interest of ₹ 20,000 and received dividend of ₹ 50,000
Answer:
Cash Flows from financial activities

[Note : As per AS – 3 (Revised] Cash inflow arising from interest and dividend received should be shown as cash flow from investing activities]

Section – D

VI. Answer any Four questions, each question carries Twelve marks : ( 4 x 12 = 48 )

Question 26.
Following are the Balance Sheet and Receipts and Payments Account of Sharada Education Society:

Adjustments:
1. Audit fees ₹ 2500 still due.
2. Charge ₹ 250 as deprecation on furniture
3. Half of the donation is to be considered as revenue
4. Outstanding Subscriptions ₹ 2000 and Subscriptions received in advance ₹ 1500 Prepare
(a) Income and Expenditure account.
(b) Balance Sheet as on 31-3-2018.
Answer:

Working Notes:
Calculation of O/s Interest on Govt. Bonds

Question 27.
Digvijay, Brijesh and Parakram were partners in a firm sharing profits in the ratio of 2:2 :1. Their balance sheet as on March 31,2018 was as follows.
Answer:

Brijesh retired on March 31.2018 on the following terms.
1. Goodwill of the firms was valued at ₹ 60,000 and goodwill account to be raised to the extent of retiring partner’s share and Written off immediately.
2. Bad debts amounting to ₹ 2,000 were to be written off.
3. Patents were considered as valueless.
Prepare:
(i) Revaluation Account
(ii) Partners Capital AccoOnts and
(iii) Balance Sheet of Digvijay and Parakram after Brjesh retirement.
Answer:

Question 28.
Anita and Sunita are partners sharing Profits and Losses equally. Their balance sheet as on 3 1.03.2018 was as follows:

On the above date the firm was dissolved The folloiing information is available:
a. Assets realised as follows : Debtors ₹ 25,600, Stock ₹ 39,000 Building ₹ 66,000
b. Anita took over 50% of Investments at 10% less on its book value and remaining
Investments was sold at a gain of 20%.
c. Furniture was taken over by Sunita at ₹ 12,000
d. Realization expenses amounted to ₹ 2,000
Prepare:
(a) Realization A/c
(b) Partners’ Capital Accounts
(c) Cash A/c
Answer:

Question 29.
ABC Company Ltd., Issued 20,000 equity shares of ₹ 10 each The amount was payable as follows:
On application ₹ 2
On allotment ₹ 3
On first and find call ₹ 5.
All the shares were subscribed Akash holding 500 shares did not pay first and final call money.
The directors forfeited his shares and these shares were re-issued to Sagar at ₹ 7 per share as fully paid up.
Give the necessary journal entries in the book of the company.
Answer:
Journal Entries in the books of ABC company Ltd.

Question 30.
X Ltd issued 2,000 , 10% debentures of ₹ 100 each on 1.4.2017 at a discount or lUYo and
redeemable at premium of 10%.
Give journal entries relating to the issue of debentures and debenture interest fo the period
ending March 31,2018 assuring that interest was paid half yearly on September30 and March
31 and tax deducted at source is 10%.
Answer:

Question 31.
Prepare Common size Balance sheet of Bombay Textile Ltd From the following information:

Answer:

Question 32
From the following Particulars calculate:
a. Net – asset turnover ratio
b. Fixed asset turnover ratio
c. Working capital turnover ratio
d. Operating profit ratio
e. Return on capital employed ratio
f. Earning per share ratio.

Particular	₹
Revenue from operations	15,00,000
Net fixed assets	50,00,000
Working capital	10,00,000
Operating Profit	5,00,000
Profit after interest & tax	3,00,000
Interest and tax expenses	2,00,000
Dividend paid t preference shares	1,00,000
Capital employed	40,00,000

Answer:

Section – E
(Practical Oriented Questions)

V. Answer any Two questions, each question carries Five marks: ( 2 X 5 10 )

Question 33.
Classify the following items into capital and Revenue
a. X-Ray plant purchased by a hospital.
b. Interest received.
e. Sale of old sports materials.
d. Carriage paid on goods purchased.
e. Donation received for constructing a swimming Pool.
Answer:
a. Capital
b. Revenue
c. Capital
d. Revenue
e. Capital

Question 34.
Prepare Executors loan Account with imaginary figures showing the repayment in two annual equal installments along with interest.
Answer:

Question 35.
‘Write the Proforma of cash flows from operating activities under Direct method.
Answer:
Cash flows from operating Activities (Direct method)