AHSEC| CLASS 12| ACCOUNTANCY| SOLVED PAPER - 2015| H.S. 2ND YEAR
2015
ACCOUNTANCY
Full Marks: 100
Pass Marks: 30
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) If a
partner takes over a liability of firms, the partner’s capital account is credited.
(ii) A partner
acts as an agent for the firm.
(iii) When
Partners’ Capital Account are fixed, then their current
Accounts are prepared.
(iv) Goodwill is the extra earning capacity of a
firm.
(b) Choose
the correct alternative: 1x2=2
(i) In the
event of death of a partner, the amount of general reserve is transferred to
the Partners’ Capital account in:
(1) New
Profit-sharing ratio
(2) Old Profit-sharing ratio
(3) Capital
ratio
(4) None of
the above
(ii) Balance
Sheet shows:
(1) Financial Position of a Company
(2) Profit or
Loss of a Company
(3) Cash flow
of a Company
(4) None of
the above
(c) State
whether the following statements are true or false: 1x2=2
(i) The
deceased partner’s executor is entitled to a share of Profit for the period
upto his/ her death. True
(ii) A
Preference shareholder gets interest at a fixed rate. False
2. State any two features of a Not-for-Profit
organization. 2
Ans:- Here are two characteristics of non-profit
organization:-
(i) Surplus
is not distributed among the members: Unlike other businesses, any surplus
or deficit of a non-profit organization is not distributed among its members.
Instead, these are adjusted into the organization's capital funds.
(ii) Separate
entity: A non-profit organization is considered a separate entity from its
members. It is not owned by any individual or enterprise, although it is
promoted by them.
3. A, B and C are partners sharing profits in the ratio
of 2:2:1. C retires. A and B have decided to share future profits and losses in
the ratio of 2:1. Calculate the gaining ratio. 2
4. Mention any two features of debentures. 2
Ans:- Here are some features of debentures:-
(i) Fixed
maturity date: Debentures have a specific date when the issuer has to repay
the principal amount to the debenture holders.
(ii) Interest
Payment: Debentures usually pay interest to investors from time to time.
5. Mention any two methods of valuation of goodwill. 2
Ans:- Various methods are used in valuing goodwill.
However, valuation methods are based on an individual company's situation and
different business practices.
The two
processes of valuation of goodwill are mentioned below:-
(i) Average
Profit Method: This method is divided into two subdivisions.
(a) Simple
Average: In this process, goodwill valuation is done by calculating the
average profit based on the number of years, it is called year's purchases.
(b)
Weighted Average: Here, the profit of the previous year is calculated by a
specific number of weights. This is used to obtain the value of goodwill, which
is divided by the total number of weights to determine the average weight gain.
(ii) Super
Profit Method: It is the surplus of expected future maintainable profits
over normal profits. There are two methods among these methods.
(a)
Capitalization Method: Under this method goodwill can be valued in two
ways.
(b) Average
Profit Method: In this process, goodwill is measured by deducting the
original capital applied from the capitalized amount of average profit based on
average return rate.
6. X Ltd. decided to forfeit 1,000 shares of Rs. 10/-
each for non-payment of allotment money for Rs. 4/- each and 1st and
final call money of Rs. 3/- each. Give journal entry for the forfeiture of
shares. 2
7. X, Y and Z are partners sharing profits in the ratio
of 3:2:1. It is now agreed that they will share the future profit equally.
Goodwill of the firm is valued at Rs. 60,000/- and the same does not appear in
the books. Pass necessary journal entries. 3
8. Briefly explain any three objectives of analysis of
financial statements.
Ans:- The three objectives of analyzing financial
statements are as follows:-
(i) To assess
the earning potential or profitability of the firm: It involves analyzing
the revenues and expenses of the firm to determine how much profit it is generating.
(ii) To
assess operational efficiency and managerial effectiveness: This involves
analyzing the costs and expenses of the firm to determine how efficiently it is
using its resources.
(iii) To
assess the short term as well as long term solvency position of the firm: This
involves analyzing the assets and liabilities of the firm to determine its
ability to meet its financial obligations.
Or
From the
following calculate Current Ratio: 3
Sundry
Debtors – Rs. 50,000/-
Stock – Rs.
40,000/-
Prepaid
Expenses – Rs. 2,000/-
Sundry
Creditors – Rs. 38,000/-
Bank
Overdraft – Rs. 10,000/-
Dividend
payable – Rs. 10,000/-
10%
Debenture – Rs. 40,000/-
Machinery –
Rs. 50,000/-
9. What do you mean by Forfeiture of Shares? Discuss the
procedure of forfeiture of shares. 3
Ans:- Forfeiture of shares is the cancellation of
shares of a shareholder who fails to pay the required amount within the
specified time period. This includes forfeiture of any amount received from the
shareholder.
A company or its
directors can forfeit shares only if the company's articles of association
permit it.
Some of the
steps involved in forfeiture of shares are as follows:-
(i) The
shareholder must be given notice at least 14 days before the forfeiture. In the
notice the shareholder will have to give at least 14 days to make the payment.
(ii) The
notice should clearly state that if the specified amount is not paid by the
appointed day the shares will be forfeited.
(iii) The name
of the original shareholder should be removed from the register of members.
(iv) Forfeited
shares are returned to treasury stock, which the company may choose to re-issue
or permanently retire.
(v) Forfeited
shares are shown under the head of Reserves and Surplus on the liabilities side
of the balance sheet.
10. What is meant by Common Size Statements? Mention any
two uses of Common Size Statements. 3
Ans:- A common size statement, also known as vertical
analysis, is a financial statement that expresses each line item as a
percentage of the base figure. The base figure is typically a key element of
the statement, such as total assets for a balance sheet or total revenues for
an income statement. By expressing each item as a percentage, a common-size
statement allows easy comparison and analysis of the relative proportions of
different components within the financial statement.
Common size
statements have two uses:-
(i) To analyze
changes in individual items of financial statements over several periods. This
can be done by comparing the general size statements of a company for different
years.
(ii) To compare
the financial statements of two companies. This can be done by comparing the
common size statements of two companies in the same industry.
Or
Give any
three distinctions between sacrificing ratio and gaining ratio. 3
Ans:- There are
three differences between sacrifice ratio and profit ratio:-
Sacrifice
Ratio:
(i) It is
calculated at the time of entry of new partner in the business.
(ii) It is
calculated to find out the share of profits and losses given up by the existing
partners in favor of the new partners.
(iii) It is
calculated by subtracting the new ratio from the old ratio.
Gaining
Ratio:
(i) It is
calculated at the time of retirement or death of a partner.
(ii) It is
calculated to find out the share of profits and losses earned by the remaining
partners from the outgoing partner.
(iii) It is
calculated by subtracting the old ratio from the new ratio.
11. Mention any three objectives of Receipts and Payment Account. 3
(Coming Soon)
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