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12th Standard English Medium Accountancy Reduced Syllabus Public Exam Model Question Paper with Answer key - 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. Which of the following items relating to bills payable is transferred to total creditors account?

    (a)

    Opening balance of bills payable

    (b)

    Opening balance of bills payable

    (c)

    Bills payable accepted during the year

    (d)

    Cash paid for bills payable

  2. Single entry system is not possible for:

    (a)

    Sole Trader

    (b)

    Partnership

    (c)

    Joint Stock Company

    (d)

    None of these

  3. Income and expenditure account is a

    (a)

    Nominal A/c

    (b)

    Real A/c

    (c)

    Personal A/c

    (d)

    Representative personal account

  4. On what basis the receipts and payments account is prepared?

    (a)

    Cash basis

    (b)

    Credit basis

    (c)

    Both

    (d)

    None of these

  5. Pick the odd one out

    (a)

    Partners share profits and losses equally

    (b)

    Interest on partners’ capital is allowed at 7% per annum

    (c)

    No salary or remuneration is allowed

    (d)

    Interest on loan from partners is allowed at 6% per annum

  6. Current accounts for partners will be opened under,

    (a)

    Fixed capital method

    (b)

    Fluctuating capital method

    (c)

    Either fixed capital method or fluctuating capital method

    (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. Goodwill is not a ________ asset

    (a)

    Fixed

    (b)

    Current

    (c)

    Fictitious

    (d)

    None of these

  9. On revaluation, the increase in the value of assets leads to

    (a)

    Gain

    (b)

    Loss

    (c)

    Expense

    (d)

    None of these

  10. Total proprietorship of the business is increased:

    (a)

    at the admission of a new partner

    (b)

    by the purchase of asset

    (c)

    by admission through investment

    (d)

    All 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. A, B and C were partners sharing profits and losses in the ratio of 3:2:1. On 1st April, B retired and the new profit sharing ratio between A and C decided to 3:2. On 31st March there were reserves of firm Rs.24,000. This reserve will be divided among partners as:

    (a)

    A-Rs.8000, b-Rs.12,000, C-Rs.4,000

    (b)

    A-Rs.8000, b-Rs.12,000, C-Rs.4,000

    (c)

    A-Rs.8000, b-Rs.12,000, C-Rs.4,000

    (d)

    A-Rs.8000, b-Rs.12,000, C-Rs.4,000

  13. At the time of forfeiture, share capital account is debited with

    (a)

    Face value

    (b)

    Nominal value

    (c)

    Paid up amount

    (d)

    Called up amount

  14. Issue of equity shares to the public through prospectus by a public company is call

    (a)

    Public issue

    (b)

    Private placement

    (c)

    Rights issue

    (d)

    Bonus issue

  15. Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed?

    (a)

    Cash flow statement

    (b)

    Common size statement

    (c)

    Comparative statement

    (d)

    Trend analysis

  16. _______________ refers to the study of movement of figures over a period.

    (a)

    Comparative statement

    (b)

    Common -size statement

    (c)

    Trend analysis

    (d)

    Funds flow analysis.

  17. Match List I with List II and select the correct answer using the codes given below:

    List I List II
    (i) Current ratio 1. Liquidity
    (ii) Net profit ratio 2. Efficiency
    (iii) Debt-equity ratio 3. Long term solvency
    (iv) Inventory turnover ratio 4. Profitability
    (a)
    (i) (ii) (iii) (iv)
    1 2 3 4
    (b)
    (i) (ii) (iii) (iv)
    1 4 3 2
    (c)
    (i) (ii) (iii) (iv)
    3 2 4 1
    (d)
    (i) (ii) (iii) (iv)
    4 3 2 1
  18. _____ ratio measures the firm ability to pay off its current dues.

    (a)

    Current

    (b)

    Absolute

    (c)

    Liquid

    (d)

    Debt

  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. List I List II
    (i) Receipt voucher 1. F4
    (ii) Payment voucher 2. F9
    (iii) Contra voucher 3. F5
    (iv) Purchase voucher 4. F6
    (a)
    (i) (ii) (iii) (iv)
    1 2 3 4
    (b)
    (i) (ii) (iii) (iv)
    3 4 2 1
    (c)
    (i) (ii) (iii) (iv)
    4 3 2 1
    (d)
    (i) (ii) (iii) (iv)
    2 1 4 3
  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. Compute income from subscription for the year 2018 from the following particulars relating to a club

    Particulars 1.1.2018
    Rs.
    31.12.2018
    Rs.
    Outstanding subscription 10,000 7,000
    Subscription received in advance 3,000 5,000

    Subscription received during the year 2018: Rs.1,50,000

  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. From the following information, calculate the value of goodwill on the basis of 3 years purchase of average profits of last four years.

    Year Result Amount
    Rs.
    2015 Profit 5,000
    2016 Profit 8,000
    2017 Loss 3,000
    2018 Profit 6,000
  26. Who is an incoming partner?

  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. Thai Ltd. issued 1,00,000 equity shares of Rs.10 each, payable Rs.5 on application, Rs.2 on allotment Rs.2 on first call and Rs.1 on final call. All the shares are subscribed and amount was duly received. Pass journal entries.

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

  30. Calculate quick ratio of Ananth Constructions Ltd from the information given below.

    Particulars Rs.
    Total current liabilities 1,00,000
    Total current assets 2,50,000
    Inventories 50,000
    Prepaid expenses 15,000
  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. How the following items will appear in the final accounts of a club for the year ending 31st March 2019?

    Dr. Receipts and Payments Account for the year ended 31st March, 2019 Cr.
    Receipts Rs. Rs. Payments Rs.
    To Subscription        
    2017-2018 10,000      
    2018-2019 50,000      
    2019-2020 5,000 65,000    
             

    There are 200 members in the club each paying an annual subscription of Rs.400 per annum. Subscription still outstanding for the year 2017- 2018 is Rs.2,000.

  34. The firm of A and B earned a profit of Rs.2,75,000 during the year ending on 31st March, 2015. They have decided to donate 10% of this profit to an NGO working for senior citizens. Pass necessary journal entry for the distribution of profits. Identify the values shown by the firm in donating a part of profit of NGO.

  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. Balu, Chandru and Nirmal are partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31st March 2018, Nirmal retires from the firm. On the date of Nirmal’s retirement, goodwill appeared in the books of the firm at Rs. 60,000. By assuming fluctuating capital account, pass the necessary journal entry if the partners decide to
    (a) write off the entire amount of existing goodwill
    (b) write off half of the existing goodwill

  38. Write a short note on
    (i) Public issue
    (ii) Private placement

  39. Prepare common-size balance sheet of Maria Ltd. as on 31st March, 2018.

    Particulars 31st March 2018
      Rs.
    I EQUITY AND LIABILITIES  
    Shareholders’ funds 4,00,000
    Non-current liabilities 3,20,000
    Current liabilities 80,000
    Total 8,00,000
    II ASSETS  
    Non-current assets 6,00,000
    Current assets 2,00,000
    Total 8,00,000
  40. Explain the objectives of ratio analysis.

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

  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 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
    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
    1. Bragathish and Naresh are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partners.
       

      Particulars Bragathish
      Rs.

      Naresh
      Rs.

      Capital on 1st April 2018 4,00,000 6,00,000
      Current account on 1st April 2018 20,000(Cr.) 15,000(Dr.)
      Additional capital introduced during the 50,000 Nil
      Drawings made during the year 45,000 60,000
      Interest on drawings 2,000 3,000
      Share of profit for the year 80,000 1,20,000
      Interest on capital 20,000 30,000
      Commission 17,000 Nil
      Salary Nil 38,000
    2. Durai and Velan entered into a partnership agreement on 1st April 2018, Durai contributing Rs.25,000 and Velan Rs. 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.

    1. From the following information, compute the value of goodwill as per annuity method:
      (a) Capital employed: Rs.50,000
      (b) Normal rate of return: 10%
      (c) Profits of the years 2016, 2017 and 2018 were Rs.13,000, Rs.15,000 and Rs.17,000 respectively.
      (d) The present value of annuity of Rs.1 for 3 years at 10% is Rs.2.4868.

    2. Kokila and Mala were sharing profits in the ratio of 4:3. Chandra was admitted in the business as a partner with \(\frac{3}{7}\)th share in the profits of the firm which she takes \(\frac{2}{7}\) th from Kokila and \(\frac{1}{7}\) th from Mala. Find out New profit Ratio and the sacrificing ratio.

    1. Rajesh, Sathish and Mathan are partners sharing profits and losses in the ratio of 3:2:1 respectively. Their balance sheet as on 31.3.2017 is given below

      Liabilities Rs Rs Asset Rs Rs
      Capital accounts:     Premises   4,00,000
      Rajesh 4,00,000   Machinery   4,20,000
      Sathish 3,00,000   Debtors   1,60,000
      Mathan 2,50,000 9,50,000 Stock   3,00,000
      General reserve   1,20,000 Cash at bank   20,000
      Creditors   50,000      
      Bills payable   1,80,000      
          13,00,000     13,00,000

      Mathan retires on 31st March, 2017 subject to the following conditions:
      (i) Rajsh and Sathish will share profits and losses in the ratio of 3:2
      (ii) Assets are to be revalued as follows:
      Machinery  Rs. 3,90,000, Stock Rs. 2,90,000, Debtors Rs. 1,52,000.
      (iii) Goodwill of the firm is valued at Rs. 1,20,000
      Prepare necessary ledger accounts and the balance sheet immediately after the retirement of Mathan.

    2. Shankar, Saleem and Pandian are partners, sharing profits in the ratio of 3:2:1. Their balance sheet as an  31st December 2018 is as under

    1. Prepare common-size statement of financial position of Saleem Ltd as on 31st March, 2017 and 31st March, 2018.

      Particulars 31st March2017 31st March 2018
        Rs. Rs.
      I EQUITY AND LIABILITIES    
      1. Shareholders’ fund    
      a) Share capital 5,00,000 6,00,000
      b) Reserves 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 3,00,000  
      Total 20,00,000 12,00,000
      II ASSETS    
      1. 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 equivalents 2,00,000 2,40,000
      Total 20,00,000 12,00,000
    2. Paradise Ltd. purchased assets of Rs.4,40,000 from Suguna Furniture Ltd. It issued equity shares of Rs.10 each fully paid in satisfaction of their claim. What entries will be made if such issue is:
      (a) at par and
      (b) at premium of 10%.

    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

    1. What shall be the profits of the concern if:

      Particulars Rs.
      Opening capital 1,60,000
      Closing capital 1,80,000
      Drawings 36,000
      Additional capital 10,000
    2. From the information given below, prepare Receipts and Payments account of Madurai Mother Theresa Mahalir Mandram for the year ended 31st December, 2018

      Particulars Rs. Particulars Rs.
      Cash balance as on 1.1.2018 2,000 Fire Insurance premium paid 1,500
      Bank balance as on 1.1.2018 3,000 Subscription received 8,500
      Sale of old newspapers 500 Furniture purchased 6,000
      Stationery purchased 6,000 Purchase of newspapers 700
      Audit fees paid 2,000 Depreciation on furniture 900
      Entrance fees received 3,000 Cash balance as on 31.12.2018 2,500
      Sundry charges 6,000 Conveyance paid 1,000
      Scholarships given 2,000 Sale of furniture 4,000
      Interest on investments 2,000    

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