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12th Standard English Medium Accountancy Subject Book Back 5 Mark Questions with Solution Part - I

12th Standard

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Accountancy

Time : 00:30:00 Hrs
Total Marks : 50

    Part I

    10 x 5 = 50
  1. Arjun carries on grocery business and does not keep his books on double entry basis. The following particulars have been extracted from his books:

    Particulars 1-4-2018
    Rs.
    31-3-2019
    Rs.
    Plant and machinery 20,000 20,000
    Stock 9,000 16,000
    Sundry debtors 2,000 5,300
    Sundry creditors 5,000 4,000
    Cash at bank 4,000 6,000

    Other information for the year ending 31-3-2019 showed the following

      Rs.
    Advertising 4,700
    Carriage inwards 8,000
    Cash paid to creditors 64,000
    Drawings 2,000

    Total sales during the year were Rs. 85,000. Purchases returns during the year were Rs. 2,000 and sales returns were Rs.1,000. Depreciate plant and machinery by 5%. Provide Rs. 300 for doubtful debts. Prepare trading and profit and loss account for the year ending 31st March, 2019 and a balance sheet as on the date.

  2. From the following particulars of Vellore Recreation Club, prepare Receipts and Payments account for the year ended 31st March, 2017.

    Particulars Rs. Particulars Rs.
    Opening cash balance as on 1.4.2016 3,000 Receipts from entertainment 20,000
    Opening bank balance as on 1.4.2016 12,000 Admission fees received 1,000
    Furniture purchased 11,000 Municipal taxes 22,000
    Sports equipment purchased 11,000 Expenses of charity show 2,000
    Donation received for pavilion 8,000 Billiards table purchased 15,000
    Sale of old tennis balls 1,500 Construction of new tennis court 18,000
    Newspapers bought 500 Receipts from charity show 2,500
    Travelling expenses 4,500 Closing balance of cash in hand 8,000
  3. 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.

  4. A partnership firm earned net profits during the last three years as follows:
    2016 : Rs. 20,000; 2017 : Rs. 17,000 and 2018 : Rs. 23,000
    The capital investment of the firm throughout the above mentioned period has been Rs. 80,000. Having regard to the risk involved, 15% is considered to be a fair return on capital employed in the business. Calculate the value of goodwill on the basis of 2 years purchase of super profit.

  5. Sai and Shankar are partners, sharing profits and losses in the ratio of 5:3. The firm’s balance sheet as on 31st December, 2017, was as follows:

    Liabilities Rs. Rs. Assets Rs. Rs.
    Capital accounts:     Building   34,000
    Sai 48,000   Furniture   6,000
    Shankar 40,000 88,000 Investment   20,000
    Creditors   37,000 Debtors 40,000  
    Outstanding wages   8,000 Less: Provision for
    bad debts
    3,000 37,000
          Bills receivable   12,000
          Stock   16,000
          Bank   8,000
        1,33,000     1,33,000

    On 31st December, 2017 Shanmugam was admitted into the partnership for 1/4 share of profit with Rs. 12,000 as capital subject to the following adjustments.
    (a) Furniture is to be revalued at Rs. 5,000 and building is to be revalued at Rs. 50,000.
    (c) Provision for doubtful debts is to be increased to Rs. 5,500
    (d) An unrecorded investment of Rs. 6,000 is to be brought into account
    (e) An unrecorded liability Rs. 2,500 has to be recorded now.
    Pass journal entries and prepare Revaluation Account and capital account of partners after admission.

  6. Muthu, Murali and Manoj are partners in a firm and sharing profits and losses in the ratio 3 : 1 : 2. Their balance sheet as on 31st December, 2018 is given below:

    Liabilities Rs. Rs. Asset Rs. Rs.
    Capital accounts:     Machinery   45,000
    Muthu 20,000   Furniture   5,000
    Murali 25,000   Debtors   30,000
    Manoj 20,000 65,000 Stock   20,000
    General reserve   6,000      
    Creditors   29,000      
        1,00,000     1,00,000

    Manoj retires on 31st December, 2018 subject to the following conditions:
    (i) Muthu and Murali will share profits and losses in the ratio of 3 : 2
    (ii) Assets are to be revalued as follows:
    Machinery Rs. 43,000, stock Rs. 27,000, debtors Rs. 28,000.
    (iii) Goodwill of the firm is valued at Rs. 30,000
    (iv) The final amount due to Manoj is not paid immediately
    Prepare necessary ledger accounts and the balance sheet immediately after the retirement of Manoj.

  7. Shero Health Care Ltd. invited applications for 3,00,000 equity shares of Rs.10 each at a premium of Rs.2 per share payable as follows:
    Rs.3 on application
    Rs.5 (including premium) on allotment
    Rs.4 on first and final call
    There was over subscription and applications were received for 4,00,000 shares and the excess applications were rejected by the directors. All the money due were received. Pass the journal entries.

  8. Calculate trend percentages for the following particulars of Palai Ltd

    Particulars Rs.in lakhs
      Year 1 Year 2 Year 3
    I EQUITY AND LIABILITIES      
    Shareholders’ fund 250 275 300
    Non-current liabilities 100 125 100
    Current liabilities 50 40 80
    Total 400 440 480
    II ASSETS      
    Non-current assets 300 360 390
    Current assets 100 80 90
    Total 400 440 480
  9. Prepare Common-size balance sheet of Meena Ltd. as on 31st March, 2018.

    Particulars 31st March 2018
      Rs.
    I EQUITY AND LIABILITIES  
    Shareholders’ funds 2,00,000
    Non-current liabilities 1,60,000
    Current liabilities 40,000
    Total 4,00,000
    II ASSETS  
    Non-current assets 3,00,000
    Current assets 1,00,000
    Total 4,00,000
  10. Calculate quick ratio: Total current liabilities Rs. 2,40,000; Total current assets Rs. 4,50,000; Inventories Rs. 70,000; Prepaid expenses Rs. 20,000.

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