Half Yearly Model Question Paper 2019

12th Standard EM

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Accountancy

Time : 02:30:00 Hrs
Total Marks : 90

    Part I

    Answer all the questions.

    Choose the most suitable answer from the given four alternatives and write the option code with the corresponding answer.

    20 x 1 = 20
  1. Which one of the following statements is not true in relation to incomplete records?

    (a)

    It is an unscientific method of recording transactions

    (b)

    Records are maintained only for cash and personal accounts

    (c)

    It is suitable for all types of organisations

    (d)

    Tax authorities do not accept

  2. In single entry system profit is calculated as follows:

    (a)

    Opening capital + Drawings + Fresh Capital + Ending capital

    (b)

    Capital at the end - Drawings - Fresh capital - Opening capital

    (c)

    Capital at the end + Drawings - Fresh capital - Opening capital

    (d)

    None of the above

  3. Receipts and payments account is a

    (a)

    Nominal A/c

    (b)

    Real A/c

    (c)

    Personal A/c

    (d)

    Representative personal account

  4. Income and expenditure account is a

    (a)

    Nominal A/c

    (b)

    Real A/c

    (c)

    Personal A/c

    (d)

    Representative personal account

  5. _______is prepared to find out the surplus or deficit pertaining to a particular year.

    (a)

    Income and Expenditure account

    (b)

    Receipts and Payment account

    (c)

    Trading and Profit and loss account

    (d)

    Balance sheet

  6. When fixed capital method is adopted by a partnership firm, which of the following items will appear in capital account?

    (a)

    Additional capital introduced

    (b)

    Interest on capital

    (c)

    Interest on drawings

    (d)

    Share of profit

  7. Profit and loss appropriation account is _____________ account in nature.

    (a)

    real

    (b)

    nominal

    (c)

    personal

    (d)

    none of these

  8. Which of the following statements is true?

    (a)

    Goodwill is an intangible asset

    (b)

    Goodwill is a current asset

    (c)

    Goodwill is a fictitious asset

    (d)

    Goodwill cannot be acquired

  9. Goodwill is paid for obtaining

    (a)

    future profit

    (b)

    present benefit

    (c)

    past benefit

    (d)

    none of the above

  10. The revaluation profits and losses are recorded in the _________ account

    (a)

    Capital

    (b)

    Revaluation

    (c)

    Profit and loss

    (d)

    None of these

  11. At what purpose of admission of a new partner may be to raise additional capital. Give reason(s)

    (a)

    For expansion of business

    (b)

    For managerial skill of the new partner

    (c)

    Both (a) & (b)

    (d)

    None of these

  12. If the final amount due to a retiring partner is not paid immediately, it is transferred to

    (a)

    Bank A/c

    (b)

    Retiring partner’s capital A/c

    (c)

    Retiring partner’s loan A/c

    (d)

    Other partners’ capital A/c

  13. Profits and losses of previous years which are not distributed to the partners are known as

    (a)

    Accumulated profit and losses

    (b)

    general reserve

    (c)

    Reserve fund

    (d)

    workmen compensation fund

  14. When a partner dies, firm will receive the:

    (a)

    1/2 amount of policy

    (b)

    1/4 amount of policy

    (c)

    3/4 amount of policy

    (d)

    Full amount of policy

  15. A preference share is one
    (i) which carries preferential right with respect to payment of dividend at fixed rate
    (ii) which carries preferential right with respect to repayment of capital on winding up

    (a)

    Only (i) is correct

    (b)

    Only (ii) is correct

    (c)

    Both (i) and (ii) are correct

    (d)

    Both (i) and (ii) are incorrect

  16. In case of private placement of shares to raise the amount of capital, a company:

    (a)

    Invites the public through prospectus

    (b)

    Does not invite the public

    (c)

    Invite the public through advertisement

    (d)

    None of these

  17. The term ‘fund’ refers to

    (a)

    Current liabilities

    (b)

    Working capital

    (c)

    Fixed assets

    (d)

    Non-current assets

  18. Current assets excluding inventory and prepaid expenses is called

    (a)

    Reserves

    (b)

    Tangible assets

    (c)

    Funds

    (d)

    Quick assets

  19. _______ ratio is an indicator of the overall profitability of the business.

    (a)

    Gross profit

    (b)

    Net profit

    (c)

    Operating cost

    (d)

    Operating profit

  20. _______________ refers to the system of maintaining accounts using computers.

    (a)

    Computer software system

    (b)

    Computer accounting system

    (c)

    Computer hardware system

    (d)

    None of the above

  21. Part II

    Answer any 7 questions. Question no. 30 is compulsory.

    7 x 2 = 14
  22. From the following particulars ascertain profit or loss

    Particulars Rs.
    Capital as on 1st January 2018 2,20,000
    Capital as on 31st December 2018 1,80,000
    Additional capital introduced during the year 40,000
    Drawings made during the year 50,000
  23. Write a note on Donations

  24. Suresh and Ramesh are partners in a firm with capitals of Rs.3,00,000 and Rs.4,00,000 respectively. The do not have a partnership deed. Ramesh wants to share the profits in the ratio of capitals. State with reason whether the claim is valid

  25. Why is goodwill considered as an intangible asset but not a fictitious assets?

  26. Selvam and Senthil are partners sharing profit in the ratio of 2:3. Siva is admitted into the firm with 1/5 share of profit. Siva acquires equally from Selvam and Senthil. Calculate the new profit sharing ratio and sacrificing ratio.

  27. The amount of bills payable appearing in the balance sheet is understated by. Rs.10,000 State whether the revaluation account will be debited or credited to restore the amount of bills payable to its actual value. Also give reason for your answer.

  28. Who is an outgoing partner?

  29. Khan Ltd. issued 50,000 shares of  Rs.10 each to the public payable Rs.4 on application, Rs.4 on allotment and Rs.2 on first and final call. Applications were received for 65,000 shares. The directors decided to allot 50,000 shares on pro rata basis and surplus application money was utilised for allotment. Pass journal entries assuming that the amounts due were received.

  30. State any two limitations of ratio analysis.

  31. What is a group in Tally.ERP 9?

  32. Part III

    Answer any 7 questions. Question no. 40 is compulsory.

    7 x 3 = 21
  33. Radhika started a small bakery for providing healthy and good quality bakery product at reasonable prices on 1st January, 2019 with a capital of Rs.1,80,000. She appointed a ten year old boy as a sweeper. She withdrew Rs.60,000 for household expenses. She introduced Rs.20,000as fresh capital. Her position of assets and liabilities as at 31st December, 2019 stood as follows.

      Rs.
    Cash in hand 70,000
    Stock 80,000
    Bills receivable 1,00,000
    Debtors 1,50,000
    Creditors 60,000
    Bills payable 10,000
  34. From the following Receipts and Payment Account of Trichy Recreation Club, prepare Income and Expenditure Account for the year ended 31.03.2018.d

    Receipts Rs. Payments Rs.
    To Opening balance   By Furniture purchased 10,000
    Cash in hand 11,000 By Rent 2,800
    To Dividend received 27,600 By Secretary's honorarium 15,000
    To Sale of old newspaper 3,000 By Postage 1,700
    To Members’ subscription 31,000 By General expenses 4,350
    To Locker rent 8,000 By Printing and Stationery 45,000
    To Interest on investments 1,250 By Audit fees 5,000
    To Sale of furniture 5,000 By Closing balance  
    (Book value Rs. 4,400)   Cash in hand 3,000
      86,850   86,850
  35. Calculate the value of goodwill at 5 years purchase of super profit from the following information:
    (a) Capital employed: Rs.1,20,000
    (b) Normal rate of profit: 20%
    (c) Net profit for 5 years:
    2014: Rs.30,000; 2015: Rs.32,000; 2016: Rs.35,000; 2017: Rs.37,000 and 2018: Rs.40,000
    (d) Fair remuneration to the partners Rs.2,800 per annum.

  36. Sam and Jose are partners in a firm sharing profits and losses in the ratio of 3:2. On 1st April 2018, they admitted Joel as a partner. On the date of Joel’s admission, goodwill appeared in the books of the firm at Rs.30,000. By assuming fluctuating capital method, pass the necessary journal entry if the partners decide to
    (a) write off the entire amount of existing goodwill
    (b) write off Rs.20,000 of the existing goodwill.

  37. Ramya, Sara and Thara are partners sharing profits and losses in the ratio of 5:3:2.
    On 1st April 2018, Thara retires and on retirement, the following adjustments are agreed upon:
    (i) Increase the value of premises by Rs. 40,000.
    (ii) Depreciate stock by ` 3,000 and machinery by Rs. 6,500.
    (iii) Provide an outstanding liability of Rs. 500
    Pass journal entries and prepare revaluation account.

  38. Muthu was holding 20 equity shares of Rs.10 each on which he paid Rs.2 on application but could not pay Rs.3 on allotment and Rs.1 on first call. Directors forfeited the shares after the first call. Give journal entry for recording the forfeiture of shares.

  39. What are the characteristics of a company?

  40. What are the objectives of financial statement analysis?

  41. From the following information of Ashika Ltd., calculate fixed assets turnover ratio:
    (i) Revenue from operations during the year were Rs.60,00,000.
    (ii) Fixed assets at the end of the year was Rs.6,00,000.

  42. Mention the commonly used voucher types in Tally.ERP 9.

  43. Part IV

    Answer all the questions.

    7 x 5 = 35
    1. From the following details of a business concern calculate net profit ratio.

      Particulars Rs.
      Revenue from operations 3,50,000
      Cost of revenue from operations 1,50,000
      Administration expenses 50,000
      Selling expenses 10,000
    2. The following balance sheet has been prepared from the books of Pearl on 1-4-2018.

      Liabilities Rs. Assets Rs.
      Capital 1,60,000 Buildings 40,000
      Sundry creditors:   Furniture 20,000
      Maya A/c 20,000 Stock 10,000
          Sundry debtors  
          Peter 20,000
          Cash in hand 30,000
          Cash at bank 60,000
        1,80,000   1,80,000

      During the year the following transactions took place.
      (a) Wages paid by cash Rs. 4,000
      (b) Salaries paid by cheque Rs. 10,000
      (c) Cash purchases made for Rs. 4,000
      (d) Good purchased on credit from Yazhini Rs. 30,000
      (e) Goods sold on credit to Jothi Rs. 40,000
      (f) Payment made to Yazhini through NEFT Rs. 6,000
      (g) Cash received from Peter Rs. 10,000
      (h) Cash sales made for Rs. 4,000
      (i) Depreciate buildings at 20%
      (j) Closing stock on 31.03.2019 Rs. 9,000
      You are required to prepare trading and profit and loss account for the year ended 31-03-2019 and a balance sheet as on that date using Tally.

    1. Saranya Ltd. issued 20,000 equity shares of  Rs.10 each to the public at par. The details of the amount payable on the shares are as follows:

      On application Rs.3 per share
      On allotment Rs.4 per share
      On first and final call Rs.3 per share

      Application money was received on 30,000 shares. Excess application money was refunded immediately. Pass journal entries to record the above.

    2. Prepare common-size statement of financial position of Raheem Ltd as on 31st March 2016 and 31st March 2018.

      Particulars 31st March 2016 31st March 2017
      Rs. Rs.
      I. Equity and liabilities    
      l. Shareholders fund    
      a. Share capital 5,00,000 6,00,000
      b. Reserve and surplus 4,00,000 3,60,000
      2. Non-current liabilities    
      Long-term borrowings 8,00,000 2,40,000
      3. Current liabilities    
      Trade payables 30,000 -
      Total 20,00,000 12,00,000
      II. Assets    
      l. Non-current assets    
      a. Fixed assets 10,00,000 6,00,000
      b. Non-current investments 5,00,000 2,40,000
      2. Current assets    
      Inventories 3,00,000 1,20,000
      Cash and cash equipments 2,00,000 2,40,000
      Total 20,00,000 12,00,000
    1. Kavitha and Radha are partners of a firm sharing profits and losses in the ratio of 4:3. They admit Deepa on 1.1.2019. On that date, their balance sheet showed debit balance of profit and loss account being accumulate loss
      Rs. 1,40,000 on the asset side of the balance sheet. Give the journal entry to transfer the accumulated loss on admission.

    2. Sun, Moon and Jupiter are partners sharing profits and losses in the ratio of 5:3:2. Jupiter retires and the share is taken by Sun and Moon in the ratio of 3:2. Find out the new profit sharing ratio and gaining ratio

    1. Pandian does not keep his books under double entry system. From the following information prepare trading and profit and loss account and balance sheet as on 31-12-2018.

        1-1-2018
      Rs.
      31-12-2018
      Rs.
      Furniture 30,000 30,000
      Cash in hand 10,000 17,000
      Debtors 40,000 60,000
      Stock 28,000 11,000
      Bills receivable 12,000 35,100
      Bank loan 25,000 25,000
      Creditors 15,000 16,000
        Rs.   Rs.
      Cash sales 11,200 Credit sales 88,800
      Cash purchases 4,250 Credit purchases 35,750
      Carriage on purchases 3,000 Carriage on sales 700
      Commission received 600 Interest on bank loan 2,500
      Drawings 8,000 Additional capital 14,000
      Salaries 8,900 Office rent 2,400

      Adjustments:
      Write off depreciation of 5% on furniture. Create a provision of 1% on debtors for doubtful debts.

    2. Mrs. Geetha started business with Rs.1,20,000 as capital on 1.4.2018. During the year she has withdrawn at the rate of Rs.1,000 per month. She introduced Rs.20,000 as additional capital. Her position on 31.3.2019 was as follows.

      Particulars Rs.
      Bank balance 8,000
      Stock 80,000
      Sundry debtors 50,000
      Furniture 2,500
      Cash in hand 2,000
      Sundry creditors 25,000
      Expenses outstanding 1,000

      She keeps her books under single entry system, determine for profit or loss for the year 2003-04. 

    1. The profit and losses of a firm for the last four years were as follows:
      2015: Rs.20,000; 2016; Rs. 25,000;
      2017; Rs.3,000(loss) 2018; Rs.18,000
      You are required to calculate the amount of goodwill on the basis of 5 years purchase of average profit of the last 4 years.

    2. Amal and Vimal are partners in a firm sharing profits and losses in the ratio of 7:5. Their balance sheet as on 31st March, 2019, is as follows:

      Liabilities Rs. Rs. Assets Rs.
      Capital accounts:     Land 80,000
      Amal 70,000   Furniture 20,000
      Vimal 50,000 1,20,000 Stock 25,000
      Sundry creditors   30,000 Debtors 30,000
      Profit and loss A/c   24,000 Bank 19,000
          1,74,000   1,74,000

      Nirmal is admitted as a new partner on 1.4.2018 by introducing a capital of Rs.30,000 for 1/3 share in the future profit subject to the following adjustments.
      (a) Stock to be depreciated by Rs.5,000
      (b) Provision for doubtful debts to be created for Rs.3,000
      (c) Land to be appreciated by Rs.20,000
      Prepare revaluation account and capital account of partners after admission.

    1. Durai and Velan entered into a partnership agreement on 1st April 2018, Durai contributing Rs.25,000 and Velan ` 30,000 as capital. The agreement provided that:
      (a) Profits and losses to be shared in the ratio 2:3 as between Durai and Velan.
      (b) Partners to be entitled to interest on capital @ 5% p.a.
      (c) Interest on drawings to be charged Durai: Rs.300 Velan: Rs.450
      (d) Durai to receive a salary of Rs.5,000 for the year, and
      (e) Velan to receive a commission of Rs.2,000
      During the year, the firm made a profit of Rs.20,000 before adjustment of interest, salary and commission. Prepare the Profit and loss appropriation account.

    2. From the following information, compute the value of goodwill by capitalising super profit:
      (a) Capital employed is Rs.4,00,000
      (b) Normal rate of return is 10%
      (c) Profit for 2016: Rs.62,000; 2017: Rs.61,000 and 2018: Rs.63,000

    1. From the following receipts and payment account, prepare income and expenditure account of Kumbakonam Basket Ball Association for the year ended 31st March, 2018

      Receipts Rs. Rs. Payments Rs. Rs.
      To Balance b/d     By Rent of ground paid   12,000
      Cash in hand 23,000   By Printing charges   5,000
      To Rent of hall received 12,000 6,000 By Insurance for building   2,000
      To Subscription received   9,000 By Tournament expenses   16,000
      To Life membership fees   7,000 By Audit fees   3,000
      To Locker rent received   2,000 By Sports materials purchased   4,000
            By Balance c/d    
            Cash in hand 2,000  
            Cash at bank 14,000 16,000
          59,000     59,000
    2. From the following Receipts and Payments Account of Trichy, Rotary dub, prepare Income and Expenditure Account for the year ended 31.03.2019

      Receipts Rs Paymenta Rs
      To Opening Balance   By Furniture Purchased 10,000
      Cash in hand 11,000 By Rent 2,800
      To Sale of old newspaper 3,600 By Postage 1,700
      To Member's Subscription 31,000 By General expenses 4,350
      To Locker rent 8,000 By Printing and stationery 45,000
      To Interest on investments 1,250 By Audit fees 5,000
      To Sale of furniture 5,000 By Closing balance  
          Cash in hand 3,000

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