AHSEC| CLASS 12| ACCOUNTANCY| SOLVED PAPER - 2019| H.S. 2ND YEAR
2019
ACCOUNTANCY
Full Marks: 100
Pass Marks: 24
Time: Three hours
The figures in the margin indicate full marks for the questions
1. (a) Fill in the blanks with appropriate word/words: 1x4=4
(i) The liability of every shareholder of a company is limited. 1
(ii) Outstanding Subscription is shown on the assets side of the Balance Sheet. 1
(iii) If a partner takes over a liability of the firm, that
partner's capital account is credited. 1
(iv) Current ratio is the relationship between current assets and current liabilities. 1
(b) Choose
the correct alternative: 1x2=2
(i) Annual Report is issued by a company to its: 1
(1) Directors
(2) Auditors
(3) Shareholders
(4) Management
(ii) Financial statements of a company include: 1
(1) Only Cash Flow Statement
(2) Only Profit and Loss Account
(3) Only Balance Sheet
(4) All of the above
(c) State whether the following statements are "True" or
"False": 1x2=2
(i) The deceased partner is entitled to a share of profit for the
period upto his death. 1 True
(ii) Profit or Loss on revaluation of assets and liabilities is
distributed among old partners in sacrificing ratio. 1 False
2. Give two distinctions between a
not-for-profit organisation and a trading organisation. 2
Ans:- Difference between non-profit
organization and business organization:-
(i) Objective: The main objective of a
business organization is to earn profit by selling goods and services. The main
objective of a non-profit organization is to provide goods and services to the
society.
(ii) Revenue: The revenue of a business
organization comes from selling goods and services. A nonprofit organization's
revenue comes from donations, membership fees, and subscriptions.
3. A and B are two partners sharing
profit and losses in the ratio of 3:2. C is admitted as new partner for 3/10th
share which he acquires 2/10th from A and 1/10th from B. Calculate new profit-sharing
ratio. 2
Solution:-
A’s new share = Old share – Surrender share
= 3/5 – 2/10 = 4/10
B’s new share = Old share – Surrender share
= 2/5 – 1/10 = 3/10
C,s share = 3/10
New profit-sharing ratio = 4:3:3
Or
Give two conditions under which a partnership firm is dissolved.
Ans:- Two conditions under which a partnership firm is dissolved
are:-
(i) Dissolution of partnership firm by agreement among all the
partners under section 40.
(ii) Compulsory dissolution of the firm under section 40.
4. Mention any two features of a debenture.
2
Ans:- features of debentures are:-
(i) Specified maturity period:
Debentures are issued for a specified period. At the end of this period, they
are redeemed.
(ii) Long-term debt instruments:
Debentures are a part of long-term borrowed funds.
5. What is the meaning of Cash Flow from
Investing Activities? 2
Ans:- Cash
flow from investing activities is the part of a company's cash flow statement
that shows cash generated or spent related to investing activities. It includes
any inflow or outflow of cash from a company's long-term investments.
6. What is meant by "super
profit" in relation to valuation of goodwill? 2
Ans:- Super
profit is the excess of estimated future profit over normal profit. It is a way
of determining the additional profit earned by the business. Goodwill is
determined by multiplying the value of the surplus by a certain number (this
number is the number of years since purchase).
7. Mention three objectives of preparing
financial statements. 3
Ans:- The objectives of preparing
financial statements are:-
(i) A financial statement provides timely and reliable information
on the financial position of a company over a specified period. It also makes
information available to external users or stakeholders who do not have direct
access to the information.
(ii) A financial statement helps to reveal the actual financial
position of a company. It includes information related to liquidity,
profitability, financial viability and solvency of an organization.
(iii) A financial statement is helpful in evaluating the earning
potential of a firm.
8. Calculate liquid ratio from the following
information: 3
Stock = Rs. 50,000/-
Debtors = Rs. 80,000/-
Bills Receivable = Rs. 10,000/-
Advance Tax = Rs. 4,000/-
Cash = Rs. 30,000/-
Creditors = Rs. 60,000/-
Bills Payable = Rs. 40,000/-
Machinery = Rs. 50,000/-
Bank Overdraft = Rs. 4,000/-
Debentures = Rs. 70,000/-
Solution:-
Or
What is Comparative Statement? Mention two objectives of preparing
Comparative Statement. 1+2=3
Ans:- Comparative statements or
comparative financial statements are statements of the financial position of a
business over different periods. These statements help determine the
profitability of a business by comparing financial data from two or more
accounting periods.
The objectives of comparative financial statements are:-
(i) To make the data simpler and more understandable: The main objective of preparing comparative financial statements is
to keep the data of several years in a simple and comparable form.
(ii) Indicating trend: Another objective
of comparative financial statements is to indicate the trend of change by putting
together data of revenue, expenditure and profit etc. over several years of
production and operation.
9. What are contingent liabilities?
Mention any two items. 1+2=3
Ans:-
Contingent liabilities are defined as potential liabilities that may occur at a
future date as a result of an uncertain event that is beyond the control of the
business. A contingent liability will be recorded in the balance sheet only
when the probability of its occurrence is certain and the extent of such
liability can be determined.
There are two types of contingent liabilities:
(i) Explicit Contingent Liabilities:
These liabilities are specific types of obligations which are created by the
government or obligations which are of legal nature which are established by
law.
(ii) Implicit Contingent Liabilities:
These types of liabilities are legal obligations that are recognized after the
occurrence of an event. In such cases the amount of liability is decided by the
government. These are not recorded in the books because these events may or may
not happen.
Or
Explain the average profit method of valuation of goodwill. 3
Ans:- Average profit method is one of
the simplest methods of goodwill valuation that is commonly used. In this
method, the value of goodwill is calculated by multiplying the average
estimated profit or average future profit by the number of years of purchase.
There are two different methods of calculating average profit which
are:-
(i) Simple average
(ii) Weighted average
(i) Simple Average: In the simple
average method, goodwill is calculated by multiplying the average profit with
the agreed number of years of purchase.
Goodwill = Average Profit x Number of years of purchase
(ii) Weighted Average: In the weighted
average method, profits of each year are given weightage with more weightage
for recent years. Goodwill is calculated by multiplying the weighted average
profit with the number of years of purchase.
Weighted Average Profit = Sum of Weighted Profit / Sum of Weights
Goodwill = Weighted Average Profit x Number of years of purchase
If the profit remains constant over a period of few years then equal
weightage should be given to all the years which is the simple average method.
And if there is year-on-year fluctuation in profits then the
preference shifts to the weighted average method in which necessary weightage
is given to profits earned from recent years.
10. Calculate amount of medicines
consumed to be shown in the Income and Expenditure A/c for the year ended
31-12-2018: 3
|
|
1-1-2018 (Rs.) |
31-12-2018 (Rs.) |
|
Stock of Medicines |
3,000 |
500 |
|
Creditors for Medicines |
2,000 |
1,300 |
Amount paid for medicines during 2018 was
Rs. 10,800/-
Solution:-
Calculation for the amount of medicines consumed
to be shown to Income and Expenditure A/c for the year ended 31-12-2018
|
Particulars |
Amount |
|
Amount paid for medicines during the year
Less Creditor for medicines on 1-1-2018 Add Creditor for medicines on 31-12-2018 Medicines purchase during the year Add stock of medicines on 1-1-2018 Less stock of medicines on 31-12-2018 |
10,800 2,000 |
|
8,800 1,300 |
|
|
10,100 3,000 |
|
|
13,100 500 |
|
|
|
12,600 |
Or
Mention any three distinctions between Receipts and Payments A/c and
Income and Expenditure A/c. 3
Ans:- The main differences between Receipts and Payments Account and
Income and Expenditure Account are:-
(i) Receipts and Payments Account is a summary of all cash and bank
transactions during a specific period, and shows cash and bank balances at the
beginning and end of the period, as well as total cash and bank receipts and
payments during the period. It is used to track the inflow and outflow of cash
and bank transactions of an organization.
(ii) Income and Expenditure Account, on the other hand, is a summary
of all the income and expenditure of an organization during a specific period,
and shows the total income and expenditure, as well as the net income, of the
organization during the period. Or loss. It is used to track the overall
financial performance of an organization including its revenues and expenses.
(iii) Receipt and Payment Account is mainly used by non-profit
organisations, whereas Income and Expenditure Account is mainly used by
profit-oriented organisations.
11. Mention any three limitations of
Financial Statements. 3
***
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