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12th Standard English Medium Accountancy Reduced Syllabus Annual Exam Model Question Paper - 2021

12th Standard

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Accountancy

Time : 02:45:00 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. Incomplete records are generally maintained by

    (a)

    A company

    (b)

    Government

    (c)

    Small sized sole trader business

    (d)

    Multinational enterprises

  2. Which of the following formulas is used to calculated the net income for an accounting period?

    (a)

    Net income = Opening capital + Drwings + Ending capital

    (b)

    Net income = - Opening capital + Drawings - Ending capital

    (c)

    Nwt income = - Opening capital + Drawings + Ending capital

    (d)

    Net income = Opening capital - Total assets

  3. Subscription due but not received for the current year is

    (a)

    An asset

    (b)

    A liability

    (c)

    An expense

    (d)

    An item to be ignored

  4. _______are the amounts received by not for- profit organisations as a gift

    (a)

    Legacy

    (b)

    Donations

    (c)

    Subscription

    (d)

    Entrance fee

  5. Profit after interest on drawings, interest on capital and remuneration is Rs.10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.

    (a)

    Rs.50

    (b)

    Rs.150

    (c)

    Rs.550

    (d)

    Rs.500

  6. Which of the following method, the capital of the partners is not altered and it remains generally fixed?

    (a)

    Fixed capital method

    (b)

    Fluctuating capital method

    (c)

    Both 'a' and 'b'

    (d)

    None of these

  7. Super profit is the difference between

    (a)

    Capital employed and average profit

    (b)

    Assets and liabilities

    (c)

    Average profit and normal profit

    (d)

    Current year’s profit and average profit

  8. While calculating capital employed _________.

    (a)

    Tangible trading assets should be considered

    (b)

    Intangible assets should be considered

    (c)

    Fictitious assets should be considered

    (d)

    None of the above

  9. At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of

    (a)

    all the partners

    (b)

    the old partners

    (c)

    the new partner

    (d)

    the sacrificing partne

  10. Goodwill is a(n):

    (a)

    Tangible Fixed Assets

    (b)

    Tangible Current Assets

    (c)

    Intangible Fixed Assets

    (d)

    Intangible Current Assets

  11. At the time of retirement of a partner, determination of gaining ratio is required

    (a)

    To transfer revaluation profit or loss

    (b)

    To distribute accumulated profits and losses

    (c)

    To adjust goodwill

    (d)

    None of these

  12. A, B and C are sharing profits in the ratio of 2/5: 2/5:1/5. C retired, from business and his share was purchased equally by A and B. Then new profit sharing ratio shall be

    (a)

    A-1/2 and B-1/2

    (b)

    A-3/S and 2/5

    (c)

    A-2/S and B-3/S

    (d)

    A-2/S and B-1/5

  13. Supreme Ltd. forfeited 100 shares of Rs.10 each for non-payment of final call of Rs.2 per share. All these shares were re-issued at Rs.9 per share. What amount will be transferred to capital reserve account?

    (a)

    Rs.700

    (b)

    Rs.800

    (c)

    Rs.900

    (d)

    Rs.1,000

  14. In the balance sheet, calls in advance should be shown as other

    (a)

    current liability

    (b)

    current asset

    (c)

    fixed assets

    (d)

    none of these

  15. A limited company’s sales has increased from Rs.1,25,000 to Rs.1,50,000. How does this appear in comparative income statement?

    (a)

    + 20 %

    (b)

    + 120 %

    (c)

    – 120 %

    (d)

    – 20 %

  16. Which statement are prepared by the business concerns at the end of the accounting period to ascertain the operating results and the financial position?

    (a)

    Trend analysis

    (b)

    Income statement

    (c)

    Financial statement

    (d)

    Balance sheet

  17. Cost of revenue from operations Rs. 3,00,000; Inventory in the beginning of the year Rs. 60,000; Inventory at the close of the year Rs. 40,000. Inventory turnover ratio is

    (a)

    2 times

    (b)

    3 times

    (c)

    6 times

    (d)

    8 times

  18. ______ ratio gives the proportion of quick assets to current liabilities.

    (a)

    Current

    (b)

    Cash

    (c)

    Quick

    (d)

    Profitability

  19. In which voucher type credit purchase of furniture is recorded in Tally

    (a)

    Receipt voucher

    (b)

    Journal voucher

    (c)

    Purchase voucher

    (d)

    Payment voucher

  20. To change current data from Gateway of Tally press the key

    (a)

    F1

    (b)

    F2

    (c)

    F5

    (d)

    F9

  21. Part II

    Answer any 7 of the questions. Question no.30 is Compulsory.

    7 x 2 = 14
  22. Can a limited company maintain its accounts under single entry system?

  23. From the following particulars, show how the item ‘subscription’ will appear in the Income and Expenditure Account for the year ended 31-12-2018?
    Subscription received in 2018 is Rs.16,000 which includes Rs. 3,000 for 2017 and Rs. 5,000 for 2019.
    Subscription outstanding for the year 2018 is Rs. 4,000. Subscription of Rs.2,000 was received in advance for 2018 in the year 2017.

  24. An accountant of the firm has debited interest on partner's loan to the profit and loss appropriation account and credited to the partner's capital account. Is he correct?

  25. What is goodwill?

  26. What is meant by admission of a partner?

  27. Kumar, Kesavan and Manohar are partners sharing profits and losses in the ratio of 1/2, 1/3 and 1/6 respectively. Manohar retires and his share is taken up by Kumar and Kesavan equally.
    Find out the new profit sharing ratio and gaining ratio.

  28. What is meant by calls in arrear?

  29. Write a short note on
    i) Intra-firm comparison
    ii) Inter-firm comparison

  30. Calculate current ratio from the following information:

    Particulars Rs. Particulars Rs.
    Current investments 80,000 Trade creditors 1,60,000
    Inventories 1,60,000 Bills payable 1,00,000
    Trade receivables 4,00,000 Expenses payable 1,40,000
    Cash and cash equivalents 1,20,000    
    Prepaid expenses 40,000    
  31. State any five accounting reports.

  32. Part III

    Answer any 7 of the questions. Question no.33 is Compulsory.

    7 x 3 = 21
  33. From the following receipts and payments account and the additional information given below, calculate the amount of subscription to be shown in Income and expenditure account for the year ending 31st December, 2018

    Receipts Rs. Rs. Payments Rs.
    To Subscription        
    2017 28,000      
    2018 1,72,000      
    2019 12,000 2,12,000    
             

    Additional information: Subscription outstanding for the year 2018 is Rs.8,000.

  34. What is Fluctuating capital method?

  35. The following are the profits of a firm in the last five years:
    2014: Rs.4,000; 2015: Rs.3,000; 2016: Rs.5,000; 2017: Rs.4,500 and 2018: Rs.3,500
    Calculate the value of goodwill at 3 years purchase of average profits of five years.

  36. Seenu and Siva are partners sharing profits and losses in the ratio of 5:3. In the view of Kowsalya admission, they decided
    (a) To increase the value of building by Rs.40,000.
    (b) To bring into record investments at Rs.10,000, which have not so far been brought intoaccount.
    (c) To decrease the value of machinery by Rs.14,000 and furniture by Rs.12,000.
    (d) To write off sundry creditors by Rs.16,000.
    Pass journal entries and prepare revaluation account

  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 Rs. 3,000 and machinery by Rs. 6,500.
    (iii) Provide an outstanding liability of Rs. 500
    Pass journal entries and prepare revaluation account.

  38. What are the characteristics of a company?

  39. Prepare common-size balance sheet of Sharmila Ltd. and Sangeetha Ltd. as on 31st March,
    2019.

    Particulars Sharmila Ltd Sangeetha Ltd
      Rs. Rs.
    I EQUITY AND LIABILITIES    
    Shareholders’ funds 5,00,000 11,00,000
    Non-current liabilities 4,00,00 7,00,000
    Current liabilities 1,00,000 2,00,000
    Total 10,00,000 20,00,000
    II ASSETS    
    Non-current assets 6,50,000 18,00,000
    Current assets 3,50,000 2,00,000
    Total 10,00,000 20,00,000
  40. Explain the objectives of ratio analysis.

  41. What is functional classifications of rational analysis? and types of functional classification.

  42. Explain how to view profit and loss statement in Tally.ERP 9.

  43. Part IV

    Answer all the questions.

    7 x 5 = 35
    1. From the following details of vijay who maintains incomplete records, prepare trading and profit and loss account for the year ended 31st March 2018 and a Balance sheet as on the date.

      Particulars As on 1.4.2017
                Rs.
      As on 31.3.2018
                Rs.
      Sundry Creditors 37,500 43,750
      Furniture 2,500 2,500
      Cash 6,250 10,000
      Sundry debtors 62,500 87,500
      Stock 25,000 12,500

       Other details:

        Rs.
      Drawings 10,000
      Discount received 3,750
      Discount allowed 2,500
      Cash received from sundry debtors 1,35,000
      Cash paid to creditors 1,12,500
      Sales returns 3,750
      Purchase returns 1,250
      Sundry expenses paid 8,750
    2. Mayiladuthurai Recreation Club gives you the following details. Prepare Receipts and Payments and income and expenditure  account for the year ended 31st March, 2019.

      Particulars Rs. Particulars Rs.
      Opening cash balance 15,000 Salary of watchman 12,000
      Opening bank balance 25,000 Club annual day expenses 15,000
      Donations received 48,000 Lighting charges 16,500
      Sale of old equipment 26,000 Entertainment expenses 13,500
      Refreshment charges 13,000 Billiards table purchased 5,000
      Club annual day collections 18,000 Expenses of charity show 3,000
      Construction of tennis court 7,000 Sale of investments 12,000
      Receipts from charity show 4,000 Closing cash balance 12,000
      Rent paid 1,000    
    1. From the following Receipt and Payment Account for the year ending 31thMarch 2015 of crickets club. Prepare Income and Expenditure Account for the same period:

      Dr Receipt and Payment Account for the year ending March 31, 2015 Cr
      Receipts Rs Payments Rs
      To Balance c/d 25,000 By Purchase of furniture (1.7.14) 5,000
      Bank 25,000 By Salaries 2,000
      To Subscriptions   By Electricity charges 600
      2014   1,500   By Postage and stationery 150
      2015  10,000   By Purchase of books 2,500
      2016    500 12,000 By Entertainment expenses 900
      To Donation 2,000 papers (1.7.14 8000
      To Hall rent 300 By Miscellaneous expenses 600
      To Interest on bank deposits 450 By Balance c/d  
      To Entrance fees 1,000 Cash 300
          Bank 20,400
        40,750   40,750

      The following additional information is available:
      (i) Salaries outstanding Rs.1,500
      (ii) Entertainment expenses outstanding Rs.500
      (Hi) Bank interest receivable Rs.150
      (iv) Subscription accrued Rs.400
      (v) 50 percent of entrance fees is to capitalised
      (vi) Furniture is to be depreciated at 10percent per annum

    2. From the following extract of Receipt and Payment Account and the additional information given below, compute the amount of income from subscriptions and show as how they would appear in the Income and Expenditure Account for the year ending March 31st, 2015 and Balance sheet.

      Dr Receipt and Payment Account for the year ending March 31, 2015 Cr
      Receipts Rs Payments Rs
      Subscription:      
      2013-14   7,000      
      2014-15   30,000      
      2015-16    5,000 42,000    

      Additional Information:
      (i) Subscriptions outstanding March 31, 2014 Rs. 8,500
      (ii) Total subscriptions outstanding March 31, 2015 Rs. 18,500
      (iii) Subscriptions received in advance as Rs. 4,000 on March 31, 2014.

    1. From the following information, prepare capital accounts of partners Rooban and Deri, when their capitals are fixed.

      Particulars

      Rooban

      Rs.

      Deri
      Rs.
      Capital on 1st April, 201 70,000 50,000
      Current account on 1st April, 2018 (Cr.) 25,000 15,000
      Additional capital introduced 18,000 16,000
      Drawings during 2018 – 2019 10,000 6,000
      Interest on drawings 500 300
      Share of profit for 2018 – 2019 35,000 25,800
      Interest on capital 3,500 2,500
      Salary Nil 18,000
      Commission 12,000 Nil
    2. Arun and Selvam are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partner

      Particulars Arun
      Rs.
      Selvam
      Rs.
      Capital on 1st January, 2018 2,20,000 1,50,000
      Current account on 1st January, 2018 4,250(Dr.) 10,000(Cr.)
      Additional capital introduced during the year Nil 70,000
      Withdrew for personal use 10,000 20,000
      Interest on drawings 750 600
      Share of profit for 2018 22,000 15,000
      Interest on capital 1,100 750
      Commission 6,900 Nil
      Salary Nil 6,850
    1. 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

    2. Valluvan and Kamban were partners sharing profits and losses as 60% tovalluvan and 40% Kamban. Their balance sheet as at 1st January, 2019 stood as under:

      Liabilities Rs. Rs. Assets Rs. Rs.
      Sundry creditors   96,000 Cash in hand   4,000
      Bills payable   34,000 Sundry debtors   56,000
      Capital Accounts:     Stock   40,000
      Valluvan 90,000   Plant and machinery   80,000
      Kamban 80,000 1,70,000 Land and Buildings   1,20,000
          3,00,000     3,00,000

      The partners agreed to admit Elangovan into the firm subject to revaluation of the following items:
      (i) Stock was to be reduced by Rs. 4,000
      (ii) Land and Buildings were to be valued at Rs. 1,60,000
      (iii) A provision of 2\(\frac{1}{2}\)% was to be created for doubtful debtors.
      (iv) A liability of  Rs.2,600 for outstanding expenses had been omitted to be recorded in the books
      Prepare the Revaluation account, capital accounts and the Balance sheet after the above adjustment

    1. Kannan, Rahim and John are partners in a firm sharing profit and losses in the ratio of 5:3:2. The balance sheet as on 31st December, 2017 was as follows:

      Liabilities Rs Rs Asset Rs Rs
      Capital accounts:     Buildings   90,000
      Kannan 1,00,000   Machinery   60,000
      Rahim 80,000   Debtors   30,000
      John 40,000 2,10,000 Stock   20,000
      Workmen compensation
      fund
        30,000 Cash at bank   50,000
      Creditors   20,000 Profit and loss A/c (loss)   20,000
          2,70,000     2,70,000

      John retires on 1st January 2018, subject to following conditions:
      (i) To appreciate building by 10%
      (ii) Stock to be depreciated by 5%.
      (iii) To provide Rs.1,000 for bad debts
      (iv) An unrecorded liability of Rs. 8,000 have been noticed.
      (v) The retiring partner shall be paid immediately.
      Prepare revaluation account, partners’ capital account and the balance sheet of the firm after retirement.

    2. Surya, Ramesh and Rajesh are partners sharing profits is the ratio of 5:3:2. Ramesh decided to retire. Goodwill of the firm is to be valued at Rs.40,000. Give journal entries if
      (a) There is no goodwill in the books of the firm,
      (b) the goodwill appears at Rs.30,000
      (c) the goodwill appears at Rs. 50,000

    1. Kanchana Ltd. issued 50,000 shares of Rs.10 each payable as under.

      On application Rs.1
      On allotment Rs.5
      On first call Rs.2
      On final call Rs.2

      Applications were received for 70,000 shares. Applications for 8,000 shares were rejected and allotment was made proportionately towards remaining applications. The directors made both the calls and the all the amount were received except the final call on 1,500 shares which were subsequently forfeited. Later 1,200 forfeited shares were reissued by receiving Rs.8 per share. Give journal entries.

    2. From the following particulars, prepare comparative income statement of Daniel Ltd.

      Particulars

      2015-16
      Rs.

      2016-17
      Rs.
      Revenue from operations 40,000 50,000
      Operating expenses 25,000 27,500
      Income tax (% of the profit before tax 30 30
    1. From the following Balance Sheet of Luckman Ltd. calculate proprietary ratio:
       

      Balance sheet of Luckman Ltd. as on 31.3.2018
      Particulars Rs.
      I. EQUITY AND LIABILITIES  
      1. Shareholders' funds  
      (a) Share capital  
      (i) Equity share capital 1,00,000
      (ii) Preference share capital 75,000
      (b) Reserves and surplus 25,000
      2. Non-current liabilities  
      Long term borrowings -
      3. Current liabilities  
      Trade payables 2,00,000
      Total 4,00,000
      II. ASSETS  
      1. Non-current assets  
      (a) Fixed assets 2,75,000
      (b) Non -current investments 50,000
      2. Current assets  
      Cash and cash equivalents 75,000
      Total 4,00,000
    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.

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