Sample Question Paper Accountancy
Sample Question Paper Accountancy
Sample Question Paper Accountancy
Accountancy (320)
a. Dissolution of partnership
b. Dissolution of firm
c. Dissolution of partnership as well as firm
d. None of the of the above
10. Which account is used for the revaluation of assets and reassessment of (1)
liabilities?
a. Reassessment account
b. Revaluation Account
c. Asset Account
d. Liabilities Account
11. Super Profit = Actual Profit – ................. (1)
a. Simple Profit
b. Average Profit
c. Normal Profit
d. Actual Average Profit
12. i) The discount on re issue of forfeited shares is debited to ____ account
re-issue (1)
a) Share capital b) Share forfeited
c) Bank d) Discount on issue of share
shar
13. i) When shares are forfeited, the Share Capital account is debited with: (1)
a. Nominal value of shares b. up value of shares
Called-up
c. Paid-up
up value of shares d. Market value of shares
OR
ii. The following is the Receipts and Payments Account of Help AID
Society of India for the year ended 31st December, 2021.
Section-B
46. Explain the accounting treatment of interim dividends in cash flow (3)
statement.
47. Following are the Balance sheets of A Ltd. Prepare Cash Flow Statement. 5
Particulars Note 31st March 31st March
no 2017 2016
EQUITY AND LIABILITIES
1. Shareholders’ funds
a. Share Capital
b. Reserves and Surplus 250000 200000
2. Current Liabilities 23000 10000
Trade payables
Total 45000 70000
318000 318000
II. Assets
1. Non-Current
Current Assets
Fixed assets - Tangible 66000 50000
Assets (Land)
2. Current assets
a. Investment 90000 80000
b. Trade receivables 115000 12000
c. Cash and Cash Equivalents 47000 30000
Total 318000 280000
Note to Accounts
Particulars 31st March 31st March
2017 2016
1.Reserves and Surplus i.e., Balance in
i
Statement of Profit & Loss 23000 10000
2.Calculate gross profit ratio and net profit ratio from the following
figures. Revenue from operations (Sales) Rs. 1,50,000
Cost of revenue from operations Rs. 1,20,000
Operating expenses Rs. 12,000
OPTIONAL MODULE -2
38. ____ Is one of the popularly used Data Base Management System to (1)
create, store and manage database.
a. Ms word b. Ms dance
b. Ms pain d. MS Access
44. What do you mean by Charts and State any two basic elements of it. (2)
45. Explain OLE object. (2)
46. Explain the various items of deductions used in payroll accounting. (3)
47. Create an imaginary accounting database for a company using MS Access - (5)
2007.
Accountancy (320)
Suggestive Marking Scheme
Ques Details Notes Marks
No.
Section-A
1 C --- 1
2 D --- 1
3 A --- 1
4 A 1
5 D 1
6 B 1
7 D 1
8 A 1
9 C 1
10 A 1
11 A 1
12 B 1
13 B 1
14 C 1
15 (i) Liabilities and assets --- 1x2
16. (i) Accrual Basis --- 1x2
(ii) Original book of entries/Primary Book of entries
17 (i) One sided error and two-sided
two errors --- 1x2
18 (i) Error of Commission --- 1x2
(ii) Readymade Software
19 (i) On retirement of a partner 1x2
(ii) Gain/Profit
20 (i) Court 1x2
(ii) Partnership Deed
21 (i) Furniture A/C and Shahrukh A/C --- 1x4
(ii) Commission A/C and Bank A/C
(iii) Cash A/C and Capital A/C
(iv) Goods A/C and Creditors A/C
22 (i) Principle Error 1x4
(ii) Commission Error
(iii) Principle Error
(iv) Compensating Error
23 (i) 10000 1x4
(ii) Net Loss
(iii) 3750
(iv) Receipts
24 (i) Over subscription 1x4
(ii) Goodwill A/C
(iii) Sahreholders’s fund
(iv) Credited by Rs 2000
25 Operating profit is the excess of gross profit over operating expenses. Gross Profit is the
excess of net sales revenue over cost of goods sold. Operating expenses includes office 2
and administration expenses, selling and distribution expenses, cash discount allowed,
interest on bills payable and other short-term
short debt, bad debts and so on.
26(i) Goodwill is the value of the reputation of a firm in respect of the profit earned in 2
future over and above the normal profit.
Factors affecting Goodwill-
Goodwill Location and Nature of business
(ii) A firm is dissolved when
all the partners give consent or
as per the terms partnership agreement
27(i) The ratio in which retiring partner’s share is distributed amongst continuing partners is 2
known as gaining ratio.
Gain of a partner is New Ratio – Existing Ratio Gain of an exising partner = His New
Share - His Existing (old) Share
(ii) Dissolution of a firm means that the firm closes its business and comes to an end. While
dissolution of a partnership means termination of old partnership and a reconstitution of
firm due to admission, retirement and death of a partner. In dissolution of a partnership thet
remaining partners may agree to carry on the business under a new agreement.
28(i) When company receives applications for more number of shares than the number of shares 2
offered to the public for subscription it is a case of over subscription. A company
comp cannot
allot more shares than what it has offered.
(ii) Face value of a share is the par value of the share. It is also known as the Nominal
value or denomination of a share
(i)For consideration other than cash
(ii)For cash
29(i) The steps involved in conversion are : 3
i. Prepare Cash and Bank Summary
ii. Prepare Total Debtors Account to ascertain the missing information
iii. Prepare Bills Receivable Account to ascertain the missing information
iv. he missing information
Prepare Total Creditors Account to ascertain tthe
v. Prepare Bills Payable Account to ascertain the mising information
vi. Prepare Opening Statement of Affairs to find out capital in the beginning.
vii. Now, prepare Trading Account, Profit and Loss Account and Balance Sheet
from the various information given in the question and from the computation
made as above.
viii. Before preparing the Financial Statements, Trial Balance may also be prepared
to check the arithmetical accuracy.
(ii) Abnormal losses occur because of fire, earthquakes or accidents. These may destroy some
fixed assets of the firm. In such case an Asset Account is credited and the Profit and Loss
Account is debited. The debit may be spread over two or three years.
Stock of goods may also be destroyed or damaged by fire, or other causes. It is obvious
that because of this, the value of the stock will be lower than otherwise. This will reduce
the amount of gross and net profit. It is, however, better to ascertain the gross profit which
would have been earned without the loss since this enables the firm to judge its trading
operations properly. To nullify the effect of loss of stock, the Trading Account is credited
with the cost of the goods destroyed. If the goods destroyed are not insured then the cost
price of the goods destroyed is debited to Profit and Loss Account. If the goods are
insured, then the claim admitted by the insurance company is deducted and the claim not
admitted is debited to the Profit and Loss Account.
The adjusting entries are as follows :
(i) Accidental Loss of Stock A/c or Loss by Fire ...Dr. [Total Value of Abnormal
Loss]
To Trading A/c
(ii) Insurance Claim or Insurance Co. ...Dr. [Amount of Insurance Claim] Profit and
Loss A/c ...Dr. [Value of Irrecovered
Ir Loss]
To Accidental Loss of Stock A/c [Total Value of Abnormal Loss] Insurance
Company’s Account will be shown as an asset in Balance Sheet
Note : If stock is not insured, following entry will be passed.
Profit and Loss A/c ...Dr. [Total Value of Abnormal Loss]
To Trading A/c
30 Net sales (Sales-Sales
Sales Returns i.e., 125000 – 1000) 124000 3
Less : Cost of goods sold
Opening Stock 12800
Add Purchases 64000
Add Direct Expenses 8400
Less : Closing Stock (14400) 70800
Gross Profit 53200
Or
Gross profit = Net sales – cost of goods sold = 124000 – 70800= 53200
31 (i) In case of retirement of a partner, the goodwill is adjusted through partner’s capital 3
accounts. The retiring partner’s capital account is credited with. his/her share of goodwill
The journal entry
and remaining partner’s capital account is debited in their gaining ratio. The
is made as under:
Remaining Partners’ Capital A/c Dr. (individually)
To Retiring Partner’s Capital A/c
(Retiring partner’s share of goodwill adjusted to remaining partners in the gaining ratio)
Normally the goodwill is not shown in the books of the firm. If at the time of retirement/
death of a partner, goodwill appears in the Balance Sheet of the firm, it will be written off
by debiting all the partners’ capital accounts in their existing profit sharing ratio and
crediting the goodwill account.
In such a case, the following journal entry is made:
Partners’ Capital A/c Dr (including retiring partner’s capital A/c)
To Goodwill A/c
(Existing goodwill written-off)
written
(ii) Any balance of accumulated reserves (e.g. general reserves), Profit and Loss Account
(Cr.), Reserve Fund and other reserves on the date of dissolution will be credited to the
Partners’ Capital accounts on the basis of profit sharing ratio. The following journal entry
will be recorded :
Profit and Loss A/c Dr.
General Reserve A/c Dr.
Any Other Fund Dr.
To Partners’ Capital A/c (Individually)
(Transfer of profit and reserve)
32 Forfeiture of shares means cancellation of membership of a shareholder due to non 3
payment of calls made by the company.
Forfeiture of shares amount to
Cancellation of the membership of the defaulting shareholder and
Reduction of share capital of the company.
33(i) In case the shares being over subscribed one of the scheme of allotment of shares 3
to applicants is to allot in the ratio of shares for which applications are entertained
by the company for allotment and the number of shares company has offered for
subscription.
tion. This is called allotment of shares on pro
pro-rata basis.
In case of pro-rata
rata allotment the excess money received on applications is
transferred to Share Allotment A/c from Share Application A/c.
In case a shareholder fails to make payment on allotment and call money of shares held by
him/her, the unpaid amount will be calculated as under: (i) Number of shares applied for
allotment = Total Share Allotted Total No. of Shares Applied×Shares Alloted to Defaulter
(ii) Excess Applications Received = Number of of shares applied for (as per step) – number
of shares allotted (iii) Excess application money received = Excess number of applied
shares × money called per share on application. (iv) Amount unpaid on allotment =
Amount due on allotment – Excess application money adjusted towards allotment
(ii) If a company issues its shares at a price more than its face value, the shares are said
to have been issued at Premium.
According to Section 78 of this Act, the amount of premium can be utilised for :
(i) Issuing fully-paid
paid bonus shares
(ii) Writing off preliminary expenses, discount on issue of shares and
debentures, underwriting commission or expenses on issue;
(iii) Paying premium on redemplion of Preference shares or Debentures;
By Back of Shares.
34(i) Trading A/c 5
for the year ended 31st March, 2017
Particular Amount Particular Amount
Opening stock 70000 Sales 4,60,000 455000
Less Sales return 5000
Purchases 80000 152400 Closing stock 56000
Less purchase return
7600
Wages 42000
Carriage inward 3600
Gross profit 243000
transferred to Profit
& Loss a/c
511000 511000
Balance sheet
As on 31st March 2017
Liabilities Amount Asset Amount
Bills payable 68000 Cash in hand 1000
Creditors 92000 Debtors 120000
Capital 140000 Closing stock 56000
Add Net profit Investment 80000
223000
427000 427000
34(ii) Books of Help AID Society of India
Income & Expenditure A/c for the year ending December 31, 2021
Receipts and Payments A/C
Expenditure Amount Income Amount
Salaries 13200 Subscriptions 10300
12000 7800
Balance sheet
As at 1st April 2017
Liabilities Amount Assets Amount
Sundry 107500 `Cash at bank 1,85,000
creditors
General 1,80,000 Sundry Debtors 2,09,000
Reserve 2,20,000
Less Provision
for doubtful
debts 11000
Capital Stock 5,50,000
accounts
Ram
1014500
Shyam
784500
Mohan
773000
Machinery 715,500
Building 12,00,000
28,59,500 2859500
36(i) M/s ABCLtd 5
Journal Entries
Date Particular L.F.no Debit Credit
1. Bank A/c Dr. 187500
To Share Application A/c
(Application money received) 187500
2. Share Application A/c Dr 187500
To Equity Share Capital A/c
To Share Allotment A/c
(Application money of 5000 125000
share transferred to share 62500
Capital A/c on their allotment
and remaining adjusted
towards shares allotment)
3. Share Allotment A/c Dr. 250000
To Equity Share Capital A/c
15,0000
To Securities Premium A/c
100000
(Allotment money due
including premium)
4. Bank A/c Dr. 185625
To Share Allotment A/c 185625
(Allotment money received)
5. Share First Call A/c Dr. 100000
To Equity Share Capital A/c 100000
(First call money due)
6. Bank A/c Dr. 98600
Call-in-arrears
arrears A/c Dr. 400
To Share First Call A/c
99000
(First call money received of
4930 shares of 20 share debited
to calls-in-arrears
arrears A/c)
7. Share Capital A/c Dr. 3750
Securities Premium A/c Dr. 1000
To Share Forfeited A/c
To Share Allotment A/c 1875
To share First Call A/c 1875
(Forfeiture of 50 shares on non 1000
payment of allotment and call
money)
(ii)
Extract of Balance sheet of B Products Ltd.
As at ….
Particular Note no. Rs
1. Equity and liabilities 1
1. Shareholder’s fund
a. Share capital 397000
Note Particulars Amount
No.
1. Share capital 900000
Authorized capital
9000 Equity shares of Rs 100 each
Issued capital 500000
5000 equity shares of Rs 100 each
Subscribed Capital
Subscribed and fully Paid capital
3900 Equity shares of Rs 100 each
390000
Add : forfeited shares ( 100 of Rs 70
each ) 70000 390000
Optional Module-1
37 A 1
38 C 1
39 A 1
40 D 1
41 B 1
42 A 1
43. (i) Current liabilities 1x2
(ii) Fictitious Assets
44 (a) Operating activities are the principal revenue generating activities of the 2
enterprise.
(b) Investing activities include the acquisition and disposal of long term assets and
long-term
other investments not included in cash equivalents.
Less : Increase
se in Current Asset and
Decrease in Current Liabilities :
Increase in Inventories ( 10000)
Decrease in Trade Payables (25000) (35000)
Cash used in Operating activities (17000)