2nd PUC Accountancy Model Question Paper 5 with Answers

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Karnataka 2nd PUC Accountancy Model Question Paper 5 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 are the books of accounts maintained by non-profit organisation?
Answer:

1. Cash book
2. ledger
3. Journal.

Question 2.
Mention one circumstance under which fixed capital may change.
Answer:

1. For additional capital
2. Permanent withdrawal of capital.

Question 3.
Why is Sacrifice ratio calculated?
Answer:
Sacrifice ratio is calculated in order to distribute the goodwill brought in cash by the new partner on account of admission.

Question 4.
Who is an executor?
Answer:
Executors are the legal representatives of a deceased partner in a partnership firm.\

Question 5.
State the different types of shares that can be issued by public limited company.
Answer:

1. Equity shares
2. Preference shares.

Question 6.
State any two merits of Financial Statements. ..
Answer:

1. Basis for taxation policies
2. Basis for granting of credit.

Question 7.
State any two uses of Financial Statement Analysis? ‘
Answer:

1. It is useful to prospective investors who would like to know the earning capacity of the firm.
2. It helps the top management in measuring the success of the company’s operations.

Question 8.
What are the various types of ratios?
Answer:

1. Liquidity ratio
2. Solvency ratio
3. Turnover ratio
4. Profitability ratio.

Question 9.
What are debentures?
Answer:
A debenture is an instrument issued by the company under its common seal acknowledging its debts to the holder and promising to repay the debt after a certain period of time with interest at regular intervals.

Question 10.
Mention any one objective of cash flow statements.
Answer:
It show inflow and outflow of cash and cash equivalents from various activities.

Section – B

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

Question 11.
What are Legacies?
Answer:
Legacies are gifts or donations received by non-profit organizations, under a will on the death of a donor.

Question 12.
Give the meaning of fluctuating capital system.
Answer:
Under the fluctuating capital method, the capitals of the partners fluctuate from year to year.

Question 13.
Name any two factors affecting goodwill.
Answer:

1. Profits of the firm
2. Turnover of the firm

Question 14.
Give the journal entry for the asset taken over by partner in case of dissolution of partnership firm.
Answer:
Partner capital account Dr.
To Realisation A/c

Question 15.
What do you mean by forfeiture of shares?
Answer:
Forfeiture of shares means cancellation of the rights of the shareholder on the shares held by him for non payment of allotment money or call money or both, on such shares.

Question 16.
Name any two types of financial statements.
Answer:

1. Income Statement
2. Position Statement

Question 17.
Write any two objectives of Ratio analysis.
Answer:

1. It is useful for making projections and estimates for the future.
2. To know the area of business, which needs more attention.

Question 18.
Give the meaning of Cash Equivalents.
Answer:
Cash equivalents are short term, highly liquid investments that are easily convertible into cash and which are subject to an insignificant risk of change in value. In other words, cash equivalents are held for the purpose of meeting short term cash commitments rather than for investment or any other purpose. An investment held for short-term maturity, say three months can be regarded as cash equivalent. Some examples of cash equivalents are treasury bills, commercial papers, etc.

Section – C

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

Question 19.
Pramod and Vinod are partners in a firm. Pramod’s drawings for the year 2014-2015 are given as under:
₹ 4,000 on 01.06.2014
₹ 6,000 on 30.09.2014
₹ 2,000 on 30.11.2014
₹ 3,000 on 01.01.2015
Calculate interest on Pramod’s drawings at 8% p.a. for the year ending on 31.03.2015 under product method.
Answer:

Calculation of Interest
Interest ⇒Total product x Interest rate x 1/12 ⇒ 93000 x 1/12

Question 20.
Vani, Rani and Soni are partners in a firm sharing profits and losses in the ratio of 4: 3: 2. Soni retires from the firm. Vani and Rani agreed to share equally in future.
Calculate Gain Ratio of Vani and Rani.
Answer:
Calculation of Gain Ratio
Gain Ratio = New Ratio – old ratio

Question 21.
X, Y and Z are partners sharing profits and losses in the ratio of 2 : 2 :1. Their capital balances on 01. 04. 2015 stood at ₹ 90,000, ₹ 60,000 and ₹ 40,000 respectively. Mr. Y died on 31.12. 2015. Partnership deed providers the following :
(a) Interest on capital at 10% per annum.
(b) Salary to Mr. Y ₹ 2,000 per month.
(c) Y’s share of goodwill.
(d) His share of profit up to the date of death on the basis of previous year’s profit.
(i) Total goodwill of the firm is ₹ 54,000.
(ii) Profit of the firm for the year 2014-2015 is ₹ 30,000.
You are required to ascertain the amount payable to executors of Y by preparing executor’s account.
Answer:
Y’s Executor’s Account

Question 22.
A. Ltd. issued 10,000,10% debentures of ₹ 1 00 each at a premium of 5 % payable as follows:
₹ 10 on Application;
₹ 20 along with premium on allotment and balance on first and final call. Record necessary Journal Entries.
Answer:

Question 23.
From the following information prepare the balance shcet of Jam Ltd. Inventories ₹ 7,00,000; Equity Share Capital ₹ 16,00,000; Plant and Machinery ₹ 8,00,000; Preference Share Capital ₹ 6,00,000; General Reserves ₹ 6,00,000; Bills payable Rs 1,50,000; Provision for taxation ₹
2,50,000; Land and Building ₹ 16,00,000; Non-current Investments ₹ 10,00,000; Cash at Bank ₹ 5,00,000; Creditors ₹ 2,00,000; 12% Debentures ₹ 12,00,000.
Answer:

Question 24.
Handa Ltd. has inventory of 20,000. Total liquid assets are 1,00,000 and quick ratio is2: 1. Calculate current ratio.
Answer:

Question 25.
From the information given below you are required to calculate the cash paid for the inventory:

Particulars	₹
Inventory ¡n the beginning Credit Purchases Inventory ln the end Trade payables ¡n the beginning Trade payables in the end	40,000 1,60,000 38,000 14,000 14,500

Answer:

Cash paid for Inventory amounts to ₹ 1,59,500

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 Ganesh Education Trust, Udupi.


Adjustments:
(i) Subscription outstanding ₹ 5,000.
(ii) Subscription received in advance ₹ 5,000.
(iii) Salary prepaid ₹ 2,500.
(iv) Capitalise 50% of entrance fees and 100% of donations
(v) Depreciate Building by 10% p.a.
Prepare: a) Income and expenditure A/c for the year ending on 31.03.2015
b) Balance Sheet as on 31.03.2015.
Answer:
Income and Expenditure A/c for the year ending 31.3.2015

Question 27.
Ajay and Vijay are partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as on 31.03.2015 was as follows :

On 01.04.2015, Mr. Sanjay is admitted into partnership on the following terms:
(a) He should bring ₹ 20,000 as capital for th share and ₹ 12500 towards goodwill.
(b) Depreciate machinery and furnitures by 10% p.a. each.
(c) Appreciate buildings by 20% p.a.
(d) Increase R.B.D. on Debtors to ₹ 3,000.
(e) Prepaid insurance ₹ 1,000 Prepare:
(i) Revaluation account
(ii) Partners’ capital accounts
(iii) Opening balance sheet of new firm as on 0,1.04.2015.
Answer:

Question 28.
Ashith, Ashik and Ashin are partners sharing profit and losses in the ratio of 2 : 2 : 1 on 31.3.2015 then balance sheet was as follows:

i) They decided to dissovie the firm on the above date and the assets reatisea as follows:
Machinery – ₹ 20,000
Debtors – ₹ 24000
GoodwiJi – ₹ 12,000
Bills receivables – ₹ 2,000
Stock – ₹ 18,000
Balance Sheet as on 3 1-3-2015
In addition to this one unrecorded asset investment was also realised for ₹ 5,000
ii) Creditors were settled at ₹ 21,400 in full settlement, Bank loan was paid in full. The dissolution expense amounted to ₹ 600.
Prepare:
i) Realisation A/c
ii) Partners capital A/c
iii)BankA/c
Answer:

Question 29.
Akash Co.Ltd. issued 40000 equity shares of ₹ 10 each at a premium of ₹ 2 per share to the public, payable as follows:
₹ 3 on application,
₹ 4 on Allotment (including premium)
₹ 3 on first call
₹ 2 on final call.
All the shares subscribed and the money duly received except on final call on 800 shares. The Directors forfeited these shares and re-issued them as fully paid up at ₹ 7 per share.
Pass the necessary Journal Entries related to the above information.
Answer:

Question 30.
Following are the balance sheets of Alpha Ltd., as at March 31, 2014 and 2015:

you are required to prepare a comparative Balance Sheet.
Answer:

Question 31.
X. Ltd. issued 5,000, 15% debentures of ₹ 100 each January 01, 2014 at a discount of 10%, redeemable at a premium of 10% in equal annual drawings in 4 years but of capital.
Give journal entries both at the time of issue and redemption of debentures. (Ignore the treatment of loss on issue of debentures and interest).
Answer:

Question 32.
The following are the profit and Loss account and balance sheet of Sharathi Trading Co. Ltd. for the year ended on 31.03.2015:

From the above information calculate,
(a) Gross profit ratio.
(b) Current ratio
(c) Stock Turnover ratio
(d) Liquidity ratio
(e) Operating ratio.
Answer:

Note :
Operating cost = Cost of goods sold + operating expenses
2,50,000 + (75000 + 60000) = 3,85,000

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.
c. Sale of old sports materials.
d. Carriage paid on goods purchased.
e. Donation received for constructing a swimming Pool. .
Answer:
a. Capital
b. Revenue
e. 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)