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12th Standard Accountancy Reduced Syllabus Annual Exam Model Question Paper with Answer key - 2022

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. When capital in the beginning is Rs 10,000, drawings during the year is Rs.6,000, profit made during the year is Rs2,000 and the additional capital introduced is 3,000, find out the amount of capital at the end

    (a)

    9,000

    (b)

    11,000

    (c)

    21,000

    (d)

    3,000

  2. A firm has liabilities is Rs.50,000 and Capital is Rs.25,000. Then its assets is ______________

    (a)

    Rs.1,00,000

    (b)

    Rs.25,000

    (c)

    Rs.50,000

    (d)

    Rs.75,000

  3. Receipts and payments account records receipts and payments of

    (a)

    Revenue nature only

    (b)

    Capital nature only

    (c)

    Both revenue and capital nature

    (d)

    None of the above

  4. Rs.10,000 received as to annual membership subscription. Out of this Rs.2,000 is pertaining to the previous accounting period whereas Rs.1000 is receivable at the end of the current accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting.

    (a)

    Rs.10,000

    (b)

    Rs.9,000

    (c)

    Rs.12,000

    (d)

    Rs.8,000

  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. The name under which the business of a firm is carried on is called the

    (a)

    Company name

    (b)

    Firm name

    (c)

    Partnership firm

    (d)

    Partner's name

  7. 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

  8. Goodwill helps in earning more profit and attracts more

    (a)

    customers

    (b)

    producers

    (c)

    competitors

    (d)

    suppliers

  9. James and Kamal are sharing profits and losses in the ratio of 5:3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.

    (a)

    1:3

    (b)

    3:1

    (c)

    5:3

    (d)

    3:5

  10. At the time of admission of a new partner, ________ profit ratio should be found out.

    (a)

    old

    (b)

    new

    (c)

    both (a) and (b)

    (d)

    none of these

  11. A, B and C are partners sharing profits in the ratio of 4:2:3. Cretires. The new profit sharing ratio between A and B will be

    (a)

    4:3

    (b)

    3:4

    (c)

    2:1

    (d)

    1:2

  12. _________maybe dissolved at any time by a partner serving notice on the other partners

    (a)

    Partnership at deed

    (b)

    Dissolution of partnership

    (c)

    Partnership at will

    (d)

    All of the above

  13. Match the pair and identify the correct option

    (1) Under subscription (i) Amount prepaid for calls
    (2) Over subscription (ii) Subscription above the offered shares
    (3) Calls in arrear (iii) Subscription below the offered shares
    (4) Calls in advance (iv) Amount unpaid on calls
    (a)
    (1) (2) (3) (4)
    (i) (ii) (iv) (iv)
    (b)
    (1) (2) (3) (4)
    (iv) (iii) (ii) (i)
    (c)
    (1) (2) (3) (4)
    (iii) (ii) (iv) (i)
    (d)
    (1) (2) (3) (4)
    (iii) (iv) (i) (ii)
  14. Application money must be at least _____ per cent of the nominal value of the shares.

    (a)

    2

    (b)

    3

    (c)

    5

    (d)

    6

  15. Which of the following statements is not true?

    (a)

    Notes and schedules also form part of financial statements

    (b)

    The tools of financial statement analysis include common-size statement

    (c)

    Trend analysis refers to the study of movement of figures for one year

    (d)

    The common–size statements show the relationship of various items with somecommon base, expressed as percentage of the common base

  16. When figure relating to several years are considered for the purpose of analysis, the analysis is called

    (a)

    Horizontal analysis

    (b)

    Vertical analysis

    (c)

    Trend analysis

    (d)

    Cash flow analysis

  17. Current ratio indicates

    (a)

    Ability to meet short term obligations

    (b)

    Efficiency of management

    (c)

    Profitability

    (d)

    Long term solvency

  18. Equity share capital is Rs.2,00,000, Reserve & surplus is Rs.30,000. Debenture Rs.40,000 and the shareholder's funds will be

    (a)

    Rs.2,00,000

    (b)

    Rs.2,30,000

    (c)

    Rs.1,90,000

    (d)

    Rs.1,70,00

  19. Contra voucher is used for

    (a)

    Master entry

    (b)

    Withdrawal of cash from bank for office use

    (c)

    Reports

    (d)

    Credit purchase of assets

  20. ____________ are used for recording both cash and credit sales of goods.

    (a)

    Purchase voucher

    (b)

    Sales vouchers

    (c)

    Contra voucher

    (d)

    Receipt voucher

  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 Rs50,000 which includes Rs.5,000 for 2017 and Rs.7,000 for 2019. Subscription outstanding for the year 2018 is Rs 6,000. Subscription of Rs.4,000 was received in advance for 2018 in the year 2017.

  24. A and B are partners in a firm without a partnership deed. A is an active partner and claims a salary of Rs.18,000 per month. State with reasons whether the claim is valid or not

  25. From the following information, find out the value of goodwill by capitalisation method:
    (a) Average profit = Rs.60,000
    (b) Normal rate of return = 10%
    (c) Capital employed = Rs.4,50,000

  26. On the admission of C, A and B decide to record an unrecorded asset worth Rs.10,000 State whether the revaluation account will be debited or credited.

  27. Arya, Benin and Charles are partners sharing profits and losses in the ratio of 3:3:2. Charles
    retires and his share is taken up by Arya. Calculate the new profit sharing ratio and gaining
    ratio of Arya and Benin

  28. 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.

  29. Common size statement is also known as 100 % statement. Do you agree?

  30. From the following Balance Sheet of Pioneer Ltd. calculate proprietary ratio:

    Balance sheet of Pioneer Ltd. as on 31.3.2019
    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
  31. What are accounting reports?

  32. Part III

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

    7 x 3 = 21
  33. Compute capital fund of Karur Social Club as on 31.03.2018

    Particulars as on 31.03.2018 Rs.
    Furniture 50,000
    Buildings 40,000
    Subscription outstanding for 2017-18 10,000
    Subscription received in advance for 2018-19 5,000
    Loan borrowed 10,000
    Investments 20,000
    Cash in hand 4,000
    Cash at bank 6,000
  34. Explain the procedure for preparation of final accounts of a partnership firm.

  35. Compute average profit from the following information.
    2016: Rs.8,000; 2017: Rs.10,000; 2018: Rs.9,000

  36. Varun and Barath are partners sharing profits and losses 5:4. They admit Dhamu into partnership. The new profit sharing ratio is agreed at 1:1:1. Dhamu’s share of goodwill is valued at Rs.15,000 of which he pays Rs.10,000 in cash. Pass necessary journal entries for adjustment of goodwill on the assumption that the fluctuating capital method is followed.

  37. Distinguish between sacrificing ratio and gaining ratio.

  38. Explains the divisions of share capital.

  39. Briefly explain any three limitations of financial statements

  40. Calculate
    (i) Inventory turnover ratio
    (ii) Trade receivable turnover ratio
    (iii) Trade payable turnover ratio and
    (iv) Fixed assets turnover ratio from the following information obtained from Delphi Ltd.

    Particulars As on
    31st March, 2018
    Rs.
    As on
    31st March, 2019
    Rs.
    Inventory 1,40,000 1,00,000
    Trade receivables 80,000 60,000
    Trade payables 40,000 50,000
    Fixed assets 5,50,000 5,00,000

    Additional information:
    (i) Revenue from operations for the year Rs.10,50,000
    (ii) Purchases for the year Rs.4,50,000
    (iii) Cost of revenue from operations Rs.6,00,000.
    Assume that sales and purchases are for credit.

  41. Write a note an Long-term solvency ratios.

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

  43. Part IV

    Answer all the questions.

    7 x 5 = 35
    1. Calculate the missing information:

      Particulars Rs.
      Closing capital 32,000
      Drawings 4,800
      Additional capital 8,000
      Profit made during the year 9,600
    2. 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
    1. From the Receipt and Payment Account given below, prepare the Income and Expenditure Account of clean Delhi club for the year ended March 31, 2017

      Dr Receipt and Payment Account for the year ending March 31st, 2017 Cr
      Receipts Rs Payments Rs
      To Balance b/d   By Salary 1,500
      Cash in hand 3200 By Rent 800
      To Subscriptions 22,500 By Electricity 3,500
      To Entrance fees 1,250 By Taxes 1,700
      To Donations 2,500 By Printing stationery 380
      To Rent of hall 750 By Sundry expenses 920
      To Sale of investment 3,000 By Books purchased 7,500
          By Fixed deposit with bank 5,000
          (on31-3-2014)  
          By Balance c/d  
          Cash in hand 400  
          Cash at bank 1,500 1,900
        33,200   33,200
    2. From the following balances prepare a balance sheet as on 31st1March 2016.

      Rs
      Cash in hand 12,000
      Cash at bank 8,000
      Books 16,000
      Billiard Table 24,000
      Furniture 30,000
      Investment 30,000
      Prepaid expenses 20,000
      Building 1,00,000
      Outstanding expenses 40,000
      Subscription received in advance 24,000
      Subscription accrued 20,000
      Surplus (Income over  
      expenditure) 20,000
    1. From the following information, prepare capital accounts of partners Mannan and Sevagan,
      when their capitals are fluctuating.

      Particulars Mannan Rs. Sevagan Rs.
      Capital on 1st January 2018 (Cr balance) 2,00,000 1,75,000
      Drawings during 2018 40,000 35,000
      Interest on drawings 1,000 500
      Share of profit for 2018 21,000 16,500
      Interest on capital 12,000 10,500
      Salary 18,000 Nil
      Commission Nil 2,500
    2. Antony and Ranjith started a business on 1st April 2018 with capitals of Rs.4,00,000 and Rs.3,00,000 respectively. According to the Partnership Deed, Antony is to get salary of Rs.90,000 per annum, Ranjith is to get 25% commission on profit after allowing salary to Antony and interest on capital @ 5% p.a. but after charging such commission. Profit-sharing ratio between the two partners is 1:1. During the year, the firm earned a profit of Rs.3,65,000.
      Prepare profit and loss appropriation account. The firm closes its accounts on 31st March every year.

    1. From the following details, calculate the value of goodwill at 2 years purchase of super profit:
      (a) Total assets of a firm are Rs.5,00,000
      (b) The liabilities of the firm are Rs.2,00,000
      (c) Normal rate of return in this class of business is 12.5 %.
      (d) Average profit of the firm is Rs.60,000

    2. Sheela and Neela were sharing profits in the ratio of 4:3. Kamala was admitted with 1/5th share in profits of business. Calculated the New profit Ratio and the sacrificing ratio.

    1. Mani, Rama and Devan are partners in a firm sharing profits and losses in the ratio of 4:3:3. Their balance sheet as on 31st March, 2019 is as follows:

      Liabilities Rs. Rs. Asset Rs.
      Capital accounts:     Buildings 80,000
      Mani 50,000   Stock 20,000
      Rama 50,000   Furniture 70,000
      Devan 50,000 1,50,000 Debtors 20,000
      Sundry creditors   20,000 Cash in hand 10,000
      Profit and loss A/c   30,000    
          2,00,000   2,00,000

      Mani retired from the partnership firm on 31.03.2019 subject to the following adjustments:
      (i) Stock to be depreciated by Rs. 5,000
      (ii) Provision for doubtful debts to be created for Rs. 1,000.
      (iii) Buildings to be appreciated by Rs. 16,000
      (iv) The final amount due to Mani is not paid immediately
      Prepare revaluation account and capital account of partners after retirement.

    2. Mukil, Mohit and Sonu are partners sharing profit in the ratio 3:2: 1. Mukil retires from the partnership.
      In order to settle his claim, the following revaluation of assets and liabilities was agreed upon:
      (i) The value of Machinery is increased by Rs. 25,000.
      (ii) The value of Investment-is-increased by Rs 2,000.
      (ill) A Provision for outstanding bill standing in the books at Rs.1,000 is now not required.
      (iv) The value of Land and Building is decreased by Rs.12,000.
      Give journal entries and prepare Revaluation account

    1. Viswanath Furniture Ltd. invited applications for 20,000 shares of Rs.10 each at a premium of Rs.2 per share payable.
      Rs.2 on application
      Rs.5 (including premium) on allotment
      Rs.5 on first and final call
      There was over subscription and applications were received for 30,000 shares and the excess applications were rejected by the directors. All the money due were received. Pass the journal entries.

    2. Calculate trend percentages for the following particulars of Kurinji Ltd.

      Particulars Rs.in thousands
        2015-16 2016-17 2017-18
      Revenue from operations 120 132 156
      Other income 50 38 65
      Expenses 100 135 123
    1. Calculate the current ratio from the following information.

      Particulars Rs. Particulars Rs.
      Current investments 15,000 Trade creditors 36,000
      Inventories 29,000 Bills payable 10,000
      Cash and cash equivalents 5,000 Expenses payable 8,000
      Trade receivables 5,000    
    2. Record the following transactions in Tally.
      (a) Devi commenced a business with a capital of Rs. 4,00,000
      (b) An account was opened with Indian Bank and deposited Rs. 60,000
      (c) Purchased furniture by paying cash Rs. 15,000
      (d) Goods purchased on credit from Sumathy for Rs. 50,000
      (e) Cash sales made for Rs. 10,000
      (f) Goods purchased from Raja for Rs. 5,000 and paid by cheque
      (g) Goods sold to Arun on credit for Rs. 70,000
      (h) Money withdrawn from bank for office use Rs. 25,000
      (i) Part payment of Rs. 30,000 made to Sumathy by cheque
      (j) Arun made part payment of Rs. 10,000 by cash
      (k) Salaries paid to staff through ECS Rs. 36,000
      (l) Carriage on purchases of Rs. 6,000 paid by cash
      (m) Purchased computer from Muthu Ltd. on credit Rs. 44,000

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