Ahsec Class-12 Accountancy Question Paper Solve-2019

 2019

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/words :  (1×4=4)

(i) The liability of every shareholder of a company is ___________.

Solution: Limited

(ii) Outstanding Subscription is shown on the ___________ side of the Balance Sheet. 

Solution Assets

(iii) If a partner takes over a liability of the firm, that partner’s capital account is ___________. 

Solution: Credited

(iv) Current ratio is the relationship between ___________ assets and current liabilities.

Solution: current

(b) Choose the correct alternative : (1×2=2)

(i) Annual Report is issued by a company to its :

(1) Directors

(2) Auditors

(3) Shareholders

(4) Management.

Solution: (1) Directors

(ii) Financial statements of a company include :

(1) Only Cash Flow Statement

(2) Only Profit and Loss Account

(3) Only Balance Sheet

(4) All of the above.

Solution: (4) All of the above.

(c) State whether the following statements are “True” or “False” :

(i) The deceased partner is entitled to a share of profit for the period upto his death.

Solution: True.

(ii) Profit or Loss on revaluation of assets and liabilities is distributed among old partners in sacrificing ratio.

Solution: False.

2. Give two distinctions between a not-for-profit organisation and a trading organisation.

Solution:

Basis	Not for profit Organisation	Trading Organisation
Purpose	The principle motivation behind these kind of associations is to offer Types of assistance to a Specific Group or Public overall.	The main purpose of these type of organizations is to earn more and more profits .
Profit/Surplus	Profit in case of Not-for Profit organization is called Surplus .	The amount earned after charging All Expenses and Losses is called Profit.

3. A and B are two partners sharing profits and losses in the ratio of 3 : 2. C is admitted as a new partner for `\frac{10}{3}` th share which he acquires `\frac{10}{2}` th from A and `\frac{10}{1}` th from B. Calculate new profit sharing ratio.

Solution:

Old Partner A and B 's Old Ratio 

= A:B= 3:2

Partner C's Admission from A= `\frac{2}{10}`  B= `\frac{1}{10}`

A's New Share = Old share - Sacrifice share

= `\frac{3}{5}`- `\frac{2}{10}`

= `\frac{6-2}{10}`

= `\frac{4}{10}`

B's New Share = Old share - Sacrifice share

= `\frac{2}{5}`- `\frac{1}{10}`

= `\frac{4-1}{10}`

= `\frac{3}{10}`

C's  Share = A's Sacrifice share + B's Sacrifice share

= `\frac{2}{10}`+ `\frac{1}{10}`

= `\frac{2+1}{10}`

= `\frac{3}{10}`

OR

Give two conditions under which a partnership firm is dissolved.

Solution:

Two conditions under which a Partnership Firm is Dissolved are : 

(i) When All or All , yet One Partner of the Firm becomes Insolvent . 

(ii) At the point when Business of the Firm becomes Unlawful .

4. Mention any two features of a debenture.

Solution:

A Debenture is Issued by a Company as a Certificate , which is a Written Acknowledgement of Debt taken by the Company Two highlights of a Debenture are : 

(i) A Debenture is Issued under the Seal of the Company . 

(ii) It contains a Contract for the Repayment of Principal Sum at a Specified Date .

5. What is the meaning of Cash Flow from Investing Activities ?

Solution:

Investing Activities incorporate the Purchase and Sale of Long Term Assets, for example, Land, Buildings, Plant and Machinery and so forth Not held for Resale. These exercises likewise incorporate the Purchase and Sale of such Investments which are Not Included in Cash Equivalents. Income from Investing Activities Discloses Expenditure Incurred for Resources planned to produce Future Income and Cash Flows. 

6. What is meant by “super profit” in relation to valuation of goodwill ?

Solution:

Super Profit alludes Excess Profit Earned by a Firm in contrast with Normal Profit Earned. In this way, if a Firm has No Excess Profit , it won't have Goodwill.

7. Mention three objectives of preparing financial statements.

Solution:

Three objectives of preparing financial statements are

(i) To Assess the capacity of the Business Enterprise to meet its Short Term and Long Term Commitments.

 (ii) To introduce a True and Fair View of the Financial Performance (for example Benefit/Loss of the Business) . 

(iii) To introduce a True and Fair View of the Financial Position (for example Resources/Equity and Liabilities of the Business) . 

8. Calculate liquid ratio from the following information :

Stock	50,000/-
Debtors	80,000/-
Bills Receivable	10,000/-
Advance Tax	4,000/-
Cash	30,000/-
Creditors	60,000/-
Bills Payable	40,000/-
Machinery	50,000/-
Bank Overdraft	4,000/-
Debentures	70,000/-

Solution:

Liquid Asset = `\frac{Liquid  Asset}{Current  Liabilities}`

Current Assets = Stock + Debtors + Bills Receivables + Advance Tax + Cash 

= Rs 50,000 + Rs 80,000 + Rs 10,000 + Rs 4,000 + Rs 30,000 

= Rs 1,74,000 

Current Liabilities = Creditors + Bills Payables + Bank Overdraft 

= Rs 1,74,000 + Rs 50,000 – Rs 4,000 

= Rs 1,20,000

Quick Ratio= `\frac{Quick  Asset}{Current Liabilities}`

=  `\frac{1,20,000}{1,04,000}`

= 1.15:1

OR

What is Comparative Statement ? Mention two objectives of preparing Comparative Statement.

Solution:

At the point when Financial Statement figures for at least two years are put next to each other to work with Comparison, these are designated "Similar Financial Statements". Such articulations accommodate sections to show the Increase or Decrease in these figures starting with one year then onto the next in "Total Figures" and in "Rate Form" . 

  Targets of Comparative Financial Statements are : 

(i)To simplify the Data and More Understandable : The primary point of getting ready Comparative Financial Statements is to placed the Data for various years in Simpler and Comparable Form . 

(ii)To Indicate the Trend : Another point of Comparative Financial Statements is to show the Trend of Change by putting the Figures of Production , Revenue from Operations , Expenses and Profits and so forth for various years one next to the other .

9. What are contingent liabilities ? Mention any two items.

Solution:

contingent liabilities or Unexpected Liabilities are the Liabilities which have Not Arisen, yet May Arise upon the Happening of a specific occasion . All in all, the actual Liability is Uncertain . It might possibly include the installment of cash. 

(i) The measure of Contingent Liability is never displayed on the Liabilities Side. These are constantly Stated in Notes to Accounts before the Balance Sheet . 

(ii) Unexpected Liabilities can be Classified as : Claims against the Company, Not Acknowledged as Debt. Ensures given by the Company. Other Money for which the Company is Contingently Liable.

OR

Explain the average profit method of valuation of goodwill.

Solution :

Simple average or Normal Profit strategy is perhaps the most straightforward technique for altruism valuation that is utilized generally. In this technique, the worth of generosity is determined by increasing the normal assessed benefit or normal future benefit with the quantity of long stretches of procurement. 

There are two distinct strategies for figuring normal benefit which are: 

1. Simple average

2. Weighted average

Simple average: In the basic normal technique, the generosity is determined by increasing the normal benefit with the concurred number of long stretches of procurement. 

Goodwill = Average Profit x No. of long periods of procurement 

Weighted Average: In the weighted normal strategy, loads are alloted to the benefits of every year with more weightage for the new years. The generosity is determined by duplicating the weighted normal benefit with the quantity of long stretches of procurement. 

Weighted Average Profit = Sum of Weighted benefits/Sum of loads 

Goodwill = Weighted Average Profit x No. of long stretches of procurement 

In the event that the benefits are seen to be steady over a time of not many years then there ought to be equivalent weightage given for every one of the years which is the straightforward normal technique. 

Also, in the event that the benefit is fluctuating each year, the inclination movements to weighted normal technique with fundamental weight given to benefits got from late years.

10. Calculate amount of medicines consumed to be shown in the Income and Expenditure A/c for the year ended 31-12-2018 :

	01-01-2018 (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:

Income and Expenditure Account

Expenditure	Amount (Rs.)	Income	Amount (Rs.)
Medicine Consumed A/c	12,600

Stock of Medicine A/c

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Balance b/d	3,000	Medicine Consumed	12,600
Creditors	10,100	Balance c/d	500
	13,100		13,100

Creditors A/c

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Bank A/c	10,800	Balance b/d	2,00
Balance c/d	1,300	Purchase of Medicine	10,100
	12,100		12,100

OR

Mention any three distinctions between Receipts and Payments A/c and Income and Expenditure A/c.

Solution:

Basis	Receipts and Payment Account	Income and Expenditure Account
Nature of Account	It is a Real Account.	It is a Nominal Account.
Balance	It Starts with Opening Balance of Cash and Ends as Showing Closing Balance of Cash.	It does Not Start with Opening Balance of Cash and does Not Show Closing Balance of Cash.
Amount	It Records All the Cash Receipts and Payments , whether Relating to Current Year or Previous Year.	It Records All Income and Expenditure of the Current Year on Accrual Basis.

11. Mention any three limitations of Financial Statements.

Solution: The three limitations of Financial Statements are

1. Only Interim Reports:
These statements don't provides a final picture of the priority . the info given in these statements is merely approximate. the particular position can only be determined when the business is sold or liquidated. However, the statements need to be prepared for various accounting periods, generally one year, during the life time of the priority . the prices and incomes be apportioned to different periods with a view to work out profits etc.

OR

Write three objectives of preparing Realisation Account.

Solution: The three objectives of preparing Realisation Account are describe in below-

1. Open a realization account to dispose of all the company’s assets and make payments to all creditors. 

2. The realization account is a nominal account. 

3. The purpose of compiling the realization account is to find out the profit and loss of the realization of assets and payment of liabilities.

12. North East Club had a Cash balance of $ 20,000/- and Bank balance of $ 35,000/- respectively on 01/04/2017. From the following details prepare a Receipts and Payments Account for the year ended 31/3/2018 :

Subscription Received	(Rs.)	(Rs.)
2016-17	30,000
2017-18	2,25,000
2018-19	10,000	2,65,000
Donation for Building		60,000
Entrance Fee		23,000
Life Membership Fee		20,000
Printing and Stationery		38,750
Lighting Expenses		26,250
Rent and Taxes Paid		17,000
Telephone Charges		2,600
Postage		2,000
Salaries		88,000
Insurance		15,000
Interest Received		18,000
Locker Rent Received		42,000
Purchase of Furniture		2,00,000
Cash in hand as on 31-03-2018		23,400

Solution:

Receipts and Payments Account 

for the year ended 31/3/2018 

Particulars		Amount (Rs.)	Particulars		Amount (Rs.)
Balance b/d			Printing and stationery		38,750
Cash in hand	20,000		Lighting expenses		26,250
Cash at Bank	35,000	55,000	Rent and texes		17,000
Subscription			Telephone Charges		2,600
2016-17	30,000		Postage		2,000
2017-18	2,25,000		Salaries		88,000
2018-19	10,000	2,65,000	Insurance Premium		15,000
Entrance fees		23,000	Furniture (Purchases)		2,00,000
Donation for Building		60,000	balance c/d
Life Membership fees		20,000	Cash in hand	23,400
Interest received		18,000	cash at bank	70,000	93,400
Locker rent received		42,000
		4,83,000			4,83,000