AHSEC| CLASS 12| ACCOUNTANCY| SOLVED PAPER - 2016| H.S. 2ND YEAR
2016
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: 1x4=4
(i) In the absence of Partnership Deed, a Partner who advances money
to the firm beyond the amount of his/her capital is entitled to get interest
thereon at the rate of 6% per annum
as per Partnership Act, 1932.
(ii) The members of a Partnership business are collectively known as
firm.
(iii) The amount due to the retiring partner is transferred to
his/her loan Account in case it is
not paid immediate.
(iv) In cash of fixed capital, a partner's Capital Account always
shows a credit balance.
(b) Choose the correct alternative: 1x2=2
(i) Financial Statements of a company include:
(1) Balance Sheet
(2) Profit and Loss Account
(3) Cash flow Statement
(4) All of the above
(ii) Profit and Loss Account is also known as Income statement statement.
(c) State whether the following statements are true or false: 1x2=2
(i) Interest on Partner's Capital is debited to Partner's Capital
Account. False
(ii) Debenture holders are creditors of the company. True
2. State the meaning of Not-for-Profit
Organisation. 2
Ans:- Non-Profit
Organization: A non-profit organization is a voluntary association of
persons, established and operated not for the purpose of earning profit but for
promoting the welfare of the society or the welfare of art, culture, sports and
general public. Public utility. Examples of these are schools, hospitals, clubs
and sports associations.
These organizations provide services to their members and the
general public. Their main sources of income are membership fees, membership,
donations, grants-in-aid etc.
3. A and B are partners sharing profits
in the ratio 3:2. C is admitted as a new partner for 1/5th share in the future
profits. Calculate the new profit-sharing ratio. 2
Solution:-
Let the total
share be 1
:. C's share = 1 - 1/5 = 4/5
:. A's new share = 4/5 x 3/5 = 12/25
:. B's new share = 4/5 x 2/5 = 8/25
:. New Profit-sharing ratio = 12/25: 8/25: 4/5
=12:8:20
4. Mention any two distinctions between
shares and debentures. 2
Ans:- Here are some differences between
shares and debentures:-
(i) Ownership: Shares represent
ownership in a company, while debentures represent a loan or creditor.
(ii) Participation: Shareholders have
ownership stake and participate in the success of the company, whereas
debenture holders are creditors who expect regular interest payments.
5. A Ltd. forfeited 500 shares of Rs.
10/- each, Rs. 8/- paid, for non-payment of final call of Rs. 2/- each. Give
Journal entry of forfeiture of share. 2
Solution:-
Journal Entries
In the books of A Ltd.
|
Particulars |
L/F |
Amount Dr. |
Amount Cr. |
|
Equity Share Capital A/c Dr. To Forfeited
share A/c To Share Final
Call A/c (Being the 500 shares forfeited due to
non-payment of final call) |
|
5,000 |
4,000 1,000 |
6. A and B are partners in a firm
sharing profits in the ratio of 3:2. Their capital as on April, 1, 2014 were
Rs. 2,00,000/- and Rs. 1, 80,000/- respectively. On October 1, 2014, A
introduced an additional capital of Rs. 50,000 and on January, 1, 2015, B
introduced Rs. 70,000/- Interest on capital is allowed at 10% p.a. Calculate
interest on capital for both the partners for the year ending March, 31, 2015.
2
Solution:-
Calculation of
Interest on Capital of A
1-4-2014 = 2,00,000 x 10% x 1 = 20,000
Add: 1-10-2014 = 50,000 x 10% x 6/12 =
2,500
22,500
Calculation of Interest on Capital of B
1-4-2014 = 1,80,000 x 10% x 1 = 18,000
Add: 1-10-2014 = 70,000 x 10% x 3/12 =
1,750
19,750
7. Explain any three objectives of
preparing a Cash Flow statement. 1x3=3
Ans:- The various objectives of
preparing cash flow statement are as follows:-
(i) The first and foremost objective of the cash flow statement is
that it helps to trace the gross inflows and outflows of cash and cash
equivalents from operating, investing and financing activities.
(ii) Cash flow statement helps to determine the various causes of
changes in cash balances during an accounting period.
(iii) A cash flow statement is also prepared to determine the
liquidity position of the organization.
Or
From the following details, calculate Current Ratio and Liquid
Ratio: 3
Machinery - 1,00,000/-
8% Debenture - 80,000/-
Bank Overdraft - 20,000/-
Sundry Creditors - 76,000/-
Prepaid Expenses - 4,000/-
Stock - 80,000/-
Sundry Debtors - 1,00,000/-
Solution:-
Current Ratio = Current Assets/Current Liabilities
Liquid Ratio = Liquid Assets/Current Liabilities
Current Assets = Prepaid Exp. + Stock + Sundry Debtors
= 4,000 + 80,000 + 1,00,000
= 1,84,000
Current Liabilities = Bank Overdraft + Sundry Creditors
= 20,000 + 76,000
= 96,000
:. Current Ratio = 1,84,000/96,000 = 23: 12
Liquid
Assets = Debtors = 1,00,000
:. Liquid Ratio = 1,00,000/96,000 = 1.042: 1
8. Mention any three items that can be
shown under the heading "Reserves & Surplus" in a company's
Balance Sheet. 1x3=3
Ans: Reserves and Surplus: Under this
head the following items are shown:-
(i) Capital Reserve
(ii) Securities Premium (Reserve)
(iii) Capital Redemption Reserve.
(iv) Debenture Redemption Reserve
(v) Revaluation Reserve
Or
Give three objectives of financial statement analysis. 1x3=3
Ans:- Objectives of financial statements:-
(i) To provide information about the economic resources and
liabilities of a business.
(ii) To provide information about the earning potential of the
business.
(iii) To provide information about cash flows.
(iv) To assess the effectiveness of management.
9. What is meant by Comparative
Statements? What do they show? 1+2=3
Ans:-
Comparative Financial Statements: Comparative financial statements are
primarily an analytical study of different items shown in the income statement
and balance sheet over a period of time. Financial statements disclose the
business results and financial statements of a company. But comparative
statement presents a review of two or more years. It shows the absolute
change and variation in percentage terms from one period to another. Data can
be compared in two ways:-
(i) Financial statements of an enterprise for two or more accounting
years (inter-period comparison)
(ii) Financial statements of different enterprises for the same
accounting year (inter-firm comparison).
There are two types of comparative statements: - “Comparative Balance Sheet and Comparative Income Statement”.
Or
Explain the Capitalization method of valuation of Goodwill.
Ans:- Capitalization Method: Under this
method the value of goodwill is obtained by capitalizing the average profit or
surplus on the basis of normal rate.
The value of goodwill under capitalization of average profit is
Goodwill = (Average normal profit/rate of return of the business) –
Capital employed
The value of goodwill under capitalization of profits is
Goodwill
= excessive profit/rate of return
10. Mention any three distinctions
between Fund-based Accounting and Non-fund-based Accounting. 1x3=3
Ans:- Here are some of the differences
between fund-based accounting and non-fund-based accounting:-
(i) Focus: Fund-based accounting focuses
on the liquidity and solvency of the business, whereas non-fund-based
accounting focuses on the profitability and efficiency of the business.
(ii) Accounting system: Fund-based
accounting records resources with limited utilization. Nonprofit organizations
use this system to focus on how resources are spent rather than profits.
(iii) Accounting Unit Fund-based
accounting treats each fund as a separate unit. Non-fund-based accounting
follows the principle of a separate legal entity.
Or
Mention three features of a non-trading organization.
Ans:- Following are the characteristics of non-profit organization:-
(i) Records of cash transactions and personal accounts are properly
maintained and do not contain any information regarding revenues or profits,
expenses or losses, assets and liabilities;
(ii) Personal transactions of owners can also be recorded in the
cash book;
(iii) Different organizations maintain records as per their
convenience and requirements, and due to lack of uniformity their accounts are
not comparable;
11. Mention any three limitations of
Financial Statements. 1x3=3
(Coming Soon)
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