# 2nd PUC Accountancy Model Question Paper 3 with Answers

Students can Download 2nd PUC Accountancy Model Question Paper 3 with Answers, Karnataka 2nd PUC Accountancy Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

## Karnataka 2nd PUC Accountancy Model Question Paper 3 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 x 1 = 08)

Question 1.
What is non-profit organization?
It is the organization that are for used for the welfare of the society and not for. profit earning.

Question 2.
The minimum number of partners in a partnership is
(a) 10
(b) 20
(c) 1
(d) 2
(d) 2

Question 3.
State any one reason for admitting a partner.

1. To increase the capital

Question 4.
Write any two circumstances for the retirement of a partner.

1. Old age of the partner.
2. Insolvency of that partner.

Question 5.
State any two types of Joint Stock Company.

1. Public company
2. Private company.

Question 6.
What is ‘Capital Reserve’?
Capital Reserve is a reserve that is created out of capital profits i.e. gains or profits arising from other than the normal activities of business operations i.e. activities other than sale or purchase of goods and services. This reserve is utilised to meet future capital losses, if any, and to issue bonus shares. It cannot be distributed as dividend among the shareholders.

Question 7.
Mention the techniques of Financial Statement Analysis.

1. Comparative statements
2. Common size statements
3. Trend and ratio analysis.

Question 8.
What do you mean by ratio analysis?
It is a simple arithmetical expression of the relationship of one number to another. It is indicated as the quotient of two numbers and can be expressed as a fraction, proportion, percentage on as a number of items.

Question 9.
What are the uses of securities premium?
As per the Section 78 of the Companies Act of 1956, the amount of securities premium can be used by the company for the following activities:

Question 10.
Cash flow statement prepared as per standard issued by ICAI.
(a) AS1
(b) AS2
(c)AS3
(d)AS4
(C) AS3

Section – B

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

Question 11.
Give two example for capital receipts and payment in non-trading concern.
Capital receipts – endowment fund, lagacies.
Capital payment – fixed assets purchases, investment.

Question 12.
What is meant by fixed capital system?
In this system the capital of the partners remains constant or unaltered unless additional capital is invested or capital itself is withdrawn by mutual agreement.

Question 13.
What is Sacrifice Ratio?
It is a ratio sacrificed by the old partners to the new partner.

Question 14
Give the journal entry to close partners loan account on Dissolution of Firm.
Partners Loan A/c Dr.
To Cash/Bank A/c
[Being Partner Loan A/c closed]

Question 15.
What is oversubscription?
When the public apply for more shares than those offered to them, it is said to be oversubscription of shares.

Question 16.
Give the meaning of Interim Dividend. ,
It is the dividend paid by the company in between Annual General body meetings.

Question 17.
State any two uses of Financial Statement Analysis.

1. It is useful to the Finance Manager to make constant reviews of the actual financial operations of the firm.
2. It helps the lenders who provide long term finance to the business enterprises.

Question 18.
What is Cash Flow Statement?
A Cash Flow Statement is a statement showing inflows and outflows of cash and cash equivalents from operating, investing and financing activities of a company during a particular period. It explains the reasons of receipts and payments in cash and change in cash balances during an accounting year in a company.

Section – C

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

Question 19.
Pratham and Chethan are partners sharing profits and losses in the ratio of 3:2. On 1-4-2013 they had capital of ₹ 60,000 and ₹ 40,000 respectively.
According to their partnership deed, they are entitled to the following:
(a) Interest on capital at 6% p.a.
(b) Interest on Drawings at 5% p.a.
(c) Chethan is allowed a salary of ₹ 500 p.m. for first 6 months and for the remaining period f ₹ 1000 p.m.
(d) Their drawings during the year Pratham ₹ 8,000 and Chethan ₹ 10,000. Interest on the same ₹ 400 and ₹ 500 respectively.
The profits for the year before makihg the above adjustments was ₹ 24,100.
Profit and loss appropriation for the year ending 31-3-2014

Question 20.
Ramesh and Suresh are partners sharing profits and losses in the ratio of 3:2. They admit Satish into the partnership with $$\frac { 1 }{ 5 }$$th share. Calculate the new profit sharing ratio of all the partners.
Total share of the firm = 1
Satish’s share $$\frac { 1 }{ 5 }$$
Remaining Share = $$1-\frac{1}{5}=\frac{4}{5}$$
New profit sharing ratio of the partners
Ramesh: $$\frac{4}{5} \times \frac{3}{5}=\frac{12}{25}$$
Suresh: $$\frac{4}{5} \times \frac{2}{5}=\frac{8}{25}$$
Satish: $$\frac{1}{5} \times \frac{5}{5}=\frac{5}{25}$$
Ramesh : Suresh : Satish is 12:8:5

Question 21.
Anil, Sunil and Rahul are the partners sharing profits and losses in the ratio of 3:2:1. Their capitals as on 1-4-2014 were ₹ 70,000, ₹ 90,000 and ₹ 60,000 respectively.
Anil died on 31-12-2014 and the partnership deed provided the following:
(a) Interest on Anil’s capital at 8% p.a.
(b) Anil’s salary ₹ 2,000 p.m.
(c) His share of accrued profit upto the date of death based on previous year’s profit. Firm’s profit for 2013-2014 was ₹ 24,000.
(d) His share of Good will was ₹ 12,000
Ascertain the amount payable to Anil’s executor by preparing Anil’s Capital A/c. Ans. Anil’s Capital A/c

Question 22.
ABC Ltd. issues Rs.10,000,12% debentures of Rs.100 each payable Rs.30 on application and remaining amount on allotment. The public applied for 9,000 debentures which were fully allotted, and all the relevant allotment money duly received. Give journal entries in the books of ABC Ltd.

Question 23.
Karnataka Co. Ltd. had the following Assets and Liabilities as on 31-3-20 14:
Current Assets ₹ 2,40,000
Current liabilities ₹ 60,000
Quick Assets ₹ 1,20,000
Calculate: (I) Current Ratio (ii) Quick Ratio.

Question 24.
Show the following items ¡n the Balance sheet as per the provisions of the companies Act, 1956 in (Revised) Schedule VI:

Question 25.
Anand Ltd., arrived at a net income of ₹ 5,00,000 for the year ended March 31,2014. Depreciation for the year was ₹ 2,00,000. There was a profit of ₹ 50,000 on assets sold which was transferred to Statement of Profit and Loss account. Trade Receivables increased during the year ₹ 40,000 and Trade Payables also increased by ₹ 60,000. Compute the cash flow from operation activities by the indirect approach.

Section – D

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

Question 26.
A company issues the following debentures:
1. 10,000 2% debentures of ₹ 100 each at par but redeemable at premium of 5% after 5 . years;
2. 10,000,12% debentures Qf ₹ 100 each at a discount of 10% but redeemable at par after 5 years;
3. 5,000,12% debentures of ₹ 1000 each at a premium of 5% but redeemable at par after 5 years;
4. 1,000,12% debentures of ₹ 100 each issued to a supplier of machinery costing ? 95,000.
5. The debentures are repayable after 5 years; and 300,12% debentures of ₹ 100 each ns a collateral security to a bank which has advanced a loan of ₹ 25,000 to the company for a period of 5 years.
6. Pass the journal entries to record the: (a) issue of debentures; and (b) repayment of debentures after the given period.
Entires

Question 27.
Srlkanth, Girish and Manju are partners sharing profits and losses equally. Their balance sheet as on 31-3-2014 was as follows:

Manju retired on 1-4-2014 from the business and the following adjustments are ta
a) Goodwill of the firm is created ₹ 18,000 (Ret PBLas).
b) Maintain provision for doubtful debts at 5% on Debtors.
c) Increase stock by ₹ 4,000.
d) Depreciate Machinery and Furniture by 10% each.
Prepare:
I) Revaluation A/c
ii) Goodwill A/c
iii) All the partner’s capital A/c
iv) Balance Sheet as on 1-4-2014

Question 28.
Girija and Sudha are partners sharing profits and losses in the ratio of 3:2. They dissolved their firm on 31-3-2014.

The details available are:
a) Assets realised as follows:
Debtors ₹ 22
Furniture ₹ 14,000
Buildings ₹ 40,00
Stock ₹ 16,000
Motor car ₹ 25,000
b) Investment is taken over by Girija at Book value.
c) Computer is taken over by Sudha at 10% less.
d) All liabilities are paid in full
e) Realisation on Expenses ₹ 2,500
Prepare:
I) Realisation A/c
ii) Partners capital k/c
iii) Bank AJc

Question 29.
Varsha Co. Ltd. issued 10,000 Preference Shares at ₹ 100 each at a premium of ₹ 5 per share payable as follows:
₹ 10 on Application
₹ 45 on Allotment (including premium)
₹ 30 on First call ₹ 20 on Final call
All the shares were subscribed and the money duly received except on final call for 500 shares. The Directors forfeited these shares and re-issued at ₹ 90 each fully paid.
Pass the necessary Journal Entries related to the above information.

Question 30.
From the following Balance Sheet of Narayan Industries Ltd., compute the trend percentage using 31-3-2011 as the base year.

Question 31.
Following is the Balance Sheet and Rcceipts and Payments Account of Bengaluru Education Society.

Adjustments: a) 0/S subscription for 31-3-2014 ₹ 5,000.
b) 0/S Salary for 31-3-2014 ₹ 600.
c) Half of the Entrance fee is to be capitalised.
d) Depreciate Furniture at 10°/e and Books at 30%.
Prepare:
I) Income and Expenditure A/c for the year ending 31-3-2014.
ii) Balance Sheet.

Question 32.
From the following information calculate:
(i) Gross Profit Ratio
(ii) inventory Turnover Ratio
(iii) Current Ratio
(iv) Liquid Ratio
(y) Net Profit Ratio
(vi) Working Capital Ratio:
Revenue from Operations – ₹ 15,20,000
Net Profit – ₹ 3,60,000
Cost of Revenue from Operations – ₹ 19,20,000
Long-term Debts  – ₹ 9,00,000
Average Inventory – ₹ 8,00,000
Current Assets – ₹ 7,60,000
Fixed Assets – ₹ 14,40,000
Current Liabilities – ₹ 6,00,000
Net Profit before Interest and Tax – ₹ 8,00,000

Section – E
(Practical Oriented Questions)

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

Question 33.
How do you treat the following in the absence of partnership deed?
a) Interest on capital
b) Interest on drawings
c) Interest on loan
d) Distribution of profit or losses
e) Salary to partner.
a) Interest on capital – Nil
b) Interest on drawings- Nil
c) Interest on loan – 6% P.a
d) Distribution of profit or losses – Equally
e) Salary to partner – Nil

Question 34.
Write the pro-forma of Vertical Balance Sheet of the Joint Stock Company with appropriate . heads.