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12th Accountancy Quarterly Model Question Paper

Published on: 13/09/2019

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Questions:

Generic 3

8 x 3 = 24

What are the characteristics of a company?

Which values are affected, when accounts are maintained on single entry system basis.

Kalyan and Dilip are partners in a firm dealing in stationery items. The firm is well managed and enjoys the advantage of being cost effective. It buys stationery items at reasonable cost from Dilip's relative who is manufacture of stationery items. The firm's sale outlet is situated near a school. As a result, the firm is donating 10% of is profits to the nearby school for the education of the students of below poverty line. State any two factors affecting the value of goodwill of the firm. Also identify any two values which the firm is trying to propagate.

Maruthu Ltd. forfeited 150 equity shares of Rs.10 each for non payment of final call of Rs.4 per share. Of these 100 shares were reissued @ Rs.9 per share. Pass journal entries for forfeiture and reissue.

Prakash and Supria were partners who share profits and losses in the ratio of 5 : 3. Balance in their capital account on 1^st April, 2018 was Prakash Rs. 3,00,000 and Supria Rs. 2,00,000. On 1^st July, 2018 Prakash introduced additional capital of Rs. 60,000. Supria introduced additional capital of Rs. 30,000 during the year. Calculate interest on capital at 6% p.a. for the year ending 31^st March, 2019 and show the journal entries.

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.
To Subscription
2017-2018	5,000
2018-2019	48,000
2019-2020	3,000	56,000

There are 300 members in the club each paying an annual subscription of Rs. 200 per annum. Subscription still outstanding for the year 2017- 2018 is Rs.1,000.

How is the amount of credit sale ascertained from incomplete records?

Following are the balances of Shanthi as on 31^st December 2018.

Particulars	Rs	Particulars	Rs
Bills receivable	6,000	Sundry creditors	25,000
Bills payable	4,000	Stock	45,000
Machinery	60,000	Debtors	70,000
Furniture	10,000	Cash	4,000

Prepare a statement of affairs as on 31^st December 2018 and calculate capital as at that date.

Generic 5

8 x 5 = 40

Alpha Company issues 10,000 equity shares Rs.10 each payable fully on application.
Pass journal entry if the shares are issued
(i) at par
(ii) at a premium of Rs.2 per share.

10.

A, B, and C are partners in affirm sharing profits and losses equally. Their balance sheet as on 31^st 1March 2018 is as follows

Liabilities	Rs	Rs	Assets	Rs	Rs
Capital accounts			Office equipment		70,000
A	80,000		Machinery		1,40,00
B	60,000		Sundry debtors	52,000
C	1,00,000	2,40,000	Less: Provision for doubtful debts	2,000	50,000
Sundry creditors		1,20,000
			Stock		60,000
			Cash at bank		40,000

		3,60,000			3,60,000

'C' Retired on 31st March 2018 Subject to the following conditions
(i) Machinery is valued at Rs.1,30,000
(ii) Value of office equipment is brought down by Rs. 2,000
(iii) Provision for doubtful debts should be increased to Rs.3,000
(iv) Investment of Rs..25,000 not recorded in the books is to be recorded now. Pass necessary journal entries and prepare revaluation account and capital account of partners

11.

Anusha and Barathi contribute Rs.2,00,000 and Rs.1,00,000 respectively as capital. Their respective share of profit is 3:2 and the profit before interest on capital for the year is Rs.27,000. Compute the amount of interest on capital in each of the following situations:
(i) If the partnership deed is silent as to the interest on capital
(ii) If interest on capital @ 3% is allowed as per the partnership deed
(iii) If the partnership deed allows interest on capital @ 5% p.a.

12.

M/s Saniya sport equipment does not keep proper records. From the following information, find out profit or loss and also prepare balance sheet for the year ended 31^st December 2017.

Particulars	31.12.2016 Rs.	31.12.2017 Rs.
Cash in hand	6,000	24,000
Bank overdraft	30,000	-
Stock	50,000	80,000
Sundry creditors	26,000	40,000
Sundry debtors	60,000	1,40,000
Bills payable	6,000	12,000
Furniture	40,000	60,000
Bills receivable	8,000	28,000
Machinery	50,000	1,00,000
Investment	30,000	80,000

Drawings Rs. 10,000 per month for personal use, additional capital introduced during the year Rs. 2,00,000. A bad debts Rs. 2,000 and a provision of 5% it to be made on debtors. Outstanding salary 2,400, prepaid insurance Rs. 700, depreciation charged on furniture @ 10% per annum.

13.

Vinoth, Karthi and Pranav are partners sharing profits and losses in the ratio of 2:2:1. Pranav retires from partnership on 1^st April 2018. The following adjustments are to be made.
(i) Increase the value of land and building by Rs. 18,000
(ii) Reduce the value of machinery by Rs. 15,000
(iii) A provision would also be made for outstanding expenses for Rs. 8,000.
Give journal entries and prepare revaluation account.

14.

From the following information, prepare capital accounts of partners Mannan and Sevagan, when their capitals are fluctuating.

Particulars	Mannan Rs.	Sevagan Rs.
Capital on 1^stJanuary 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

15.

From the following particulars of Poompuhar Literary Association, prepare Receipts and Payments account for the year ended 31^st March, 2019.

Particulars	Rs.	Particulars	Rs.
Opening cash in hand as on 1.4.2018	5,000	Subscriptions received	20,000
Bank overdraft as on 1.4.2018	4,000	Repairs and renewals	2,500
Printing and stationery	1,500	Conveyance paid	2,750
Interest paid	3,250	Books purchased	10,000
Sale of investments	1,000	Insurance premium paid	4,000
Purchase of refreshments	1,500	Sundry receipts	750
Outstanding salary	2,000	Government grants received	6,000
Endowment fund receipts	2,000	Sale of refreshments	1,500
Lighting charges	1,300	Depreciation on buildings	2,000
		Cash at bank on 31.03.2019	2,000

16.

From the following details you are required to calculate credit sales and credit purchases by preparing total debtors account, total creditors account, bills receivable account and bills payable account.

Particulars	Opening Rs.	Closing Rs.
Debtors	60,000	55,000
Bills receivable	5,000	1,000
Creditors	25,000	28,000
Bills payable	2,000	3,000
Other information
Cash received from debtors		1,30,000
Discount allowed to customers		5,500
Cash paid to creditors		70,000
Discount allowed by suppliers		3,500
Payments against bill payable		7,000
Cash received for bills receivable		14,000
Bills receivable dishonoured		1,200
Bad debts		3,500

Multiple Choice Question

20 x 1 = 20

17.

At the time of retirement / death, income sharing ratio among the remaining partners may or______change.

(a)

May

(b)

May not

(c)

Change

(d)

All of these

18.

Generally, depreciation on fixed assets is calculated on which balance?

(a)

Opening Balance

(b)

Closing Balance

(c)

Only on additional

(d)

Amount realized on asset sole

19.

In partnership accounting, capital accounts are prepared under following method __________

(a)

Fluctuating

(b)

Fixed

(c)

Both (a) & (b)

(d)

None of these

20.

In single entry system of accounting ___________

(a)

Duel aspects of a transaction is recorded

(b)

Single aspect of transaction is recorded

(c)

Important transaction are recorded

(d)

All of them

21.

The excess amount paid over the called up value of a share is known as _____________

(a)

Calls in arrear

(b)

Calls in advance

(c)

Capital Reserve

(d)

None of these

22.

Brave Ltd. Issued 60,000 shares of Rs.10 each at a discount of Re.1 per share. The application money was Rs.2, allotment money was Rs.4 and finale call was of Re.1. The amount of final call will be _______________

(a)

Rs.3

(b)

Rs.2

(c)

Rs.1

(d)

Rs.4

23.

Under the net worth method, the basis for ascertaining the profit is ________

(a)

the difference between the capital on two dates

(b)

the difference between the liabilities on two dates

(c)

the different between the gross assets on two dates

(d)

the difference between the gross profit on two dates

24.

The company earns a net profit of Rs. 24,000 with a capital of Rs. 1,20,000. The NRR is 10% under capitalisation of super profit goodwill will be ___________

(a)

Rs. 70,000

(b)

Rs. 24,000

(c)

Rs. 12,000

(d)

Rs. 1,20,000

25.

Subscription received but not yet earned is considered as a /an _____________

(a)

Asset

(b)

Liability

(c)

Income

(d)

Expenditure

26.

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

27.

On retirement of a partner, general reserve is transferred to the

(a)

Capital account of all the partners

(b)

Revaluation account

(c)

Capital account of the continuing partners

(d)

Memorandum revaluation account

28.

A partner retires from the partnership firm on 30^th June. He is liable for all the acts of the firm up to the

(a)

End of the current accounting period

(b)

End of the previous accounting period

(c)

Date of his retirement

(d)

Date of his final settlement

29.

If a share of Rs.10 on which Rs.8 has been paid up is forfeited. Minimum reissue price is

(a)

Rs.10 per share

(b)

Rs.8 per share

(c)

Rs.5 per share

(d)

Rs.2 per share

30.

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

31.

As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is

(a)

8% per annum

(b)

12% per annum

(c)

5% per annum

(d)

6% per annum

32.

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

33.

Receipts and payments account is a

(a)

Nominal A/c

(b)

Real A/c

(c)

Personal A/c

(d)

Representative personal account

34.

When capital in the beginning is Rs. 10,000, drawings during the year is Rs. 6,000, profit made during the year is Rs. 2,000 and the additional capital introduced is 3,000, find out the amount of capital at the end

(a)

Rs. 9,000

(b)

Rs. 11,000

(c)

Rs. 21,000

(d)

Rs. 3,000

35.

The amount of credit sales can be computed from

(a)

Total debtors account

(b)

Total creditors account

(c)

Bills receivable account

(d)

Bills payable account

36.

Incomplete records are generally maintained by

(a)

A company

(b)

Government

(c)

Small sized sole trader business

(d)

Multinational enterprises

Generic 2

5 x 2 = 10

37.

Why is statement of affairs prepared under single entry system not referred to as balance sheet?

38.

What is partner's current Account?

39.

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.

40.

What is over-subscription?

41.

What is legacy?

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Answers Key:

Generic 3

8 x 3 = 24

Following are the characteristics of a company:
(a) Voluntary association: A company is a voluntary association of persons. No law can compel persons to form a company
(b) Separate legal entity: Company is an artificial person. It has a separate legal entity which is separate and distinct from its members.
(c) Common seal: A company may have a common seal which can be affixed on the documents.
(d) Perpetual succession: A company continues for ever. Its continuity is not affected by the changes in its members. It can be wound up only by law.
(e) Limited liability: The liability of the shareholders of the company is limited to the extent of face value of the shares held by the shareholders.
(f) Transferability of shares: The shares of a company are freely transferable except incase of a private company.

Values being affected are
(i) Reliablility: Value of reliability is affected as accounts maintained on single entry system are less reliable as they are prepared from incomplete records.
(ii) Accuracy: Value of arithmetical accuracy is affected, as in single entry system, trial balance cannot be prepared which proves arithmetical accuracy of accounts.

The factors affecting the value of goodwill of the firm are
(i) Nature of business
(ii) Efficiently of management
The values which the firm is trying to propagate are
(i) Promoting education among the students of below poverty line.
(ii) Providing quality services to customers resulting in customer satisfaction

In the books of Maruthu Ltd. Journal entries
Particulars		Debit Rs.	Credit Rs.
Equity share capital A/c (150 × 10)	Dr.	1,500
To Equity share final call A/c (150 × 4)			600
To Forfeited shares A/c (150 × 6)			900
(50 shares forfeited)
Bank A/c (100 × 9)	Dr.	900
Forfeited shares A/c (100 × 1)		100
To Equity share capital A/c (100 × 10)			1,000
(100 forfeited shares reissued @ Rs.9 per share)
Forfeited shares A/c	Dr.	500
To Capital reserve A/c			500
(Gain on reissue of forfeited shares transferred to capital reserve account)

Working note:
Forfeited amount for 150 shares = Rs.900
Forfeited amount for 100 shares = \(\frac{900}{150}\) x 100 = Rs.600
Gain or loss = Amount forfeited – loss on reissue
= 600 - 100
Net gain = Rs.500

CaIulation of Interest on capital:
Interest on Prakash's capital:

On opening capital for 1 year	= 3,00,000 \(\times\) \(\frac{6}{100}\)	= Rs. 18,000
On additional capital for 9 months	= 60,000 \(\times\) \(\frac{6}{100}\times\frac{9}{12}\) = Rs. 2,700	= Rs. 2,700
Interest on capital		= Rs. 20,700

Interest on Supriya's captial:

On opening capital for 1 year	= 2,00,000 \(\times\) \(\frac{6}{100}\)	= Rs. 12,000
On additional for 9 months	= 30,000 \(\times\) \(\frac{6}{100}\times\frac{9}{12}\)	= Rs. 900
Interest on capital		= Rs.12,900

Journal entries
Date	Particulars	L.F	Debit Rs.	Credit Rs.
2019 March 31	Interest on capital A/c Dr To Prakash's current A/c To Supriya's current A/c (Interest on capital provided)		33,600	20,700 12,900
2019 March 31	Profit and loss appropriation A/c Dr To Interest on capital A/c (Interest on capital closed)		33,600	33,600

Dr. Income and Expenditure Account for the year ended 31st March 2019 Cr.
Income	Rs.	Rs.
By Subscription	48,000
Add: Outstanding	12,000	60,000

Balance sheet as on 31st March, 2019
Liabilities	Rs.	Assets	Rs.	Rs.
		Outstanding subscription
Subscription received in		2017 – 2018	1,000
advance for the year 2019-20	3,000	2018 – 2019	12,000	13,000

Tutorial note

Total Subscription due for current the year (2018-19) 300 x Rs. 200	= Rs. 60,000
Less: Amount received for the current year (2018-19)	= Rs. 48,000
Outstanding subscription for the current year (2018-2019	= Rs. 12,000

Total sales are calculated by adding cash and credit sales. Cash sales are given in cash book. For ascertaining the amount of credit sales, the total debtors account should be prepared. The specimen of total debtors account is given below.

Dr Ascertainment of credit sale Cr
Particulars	Rs.	Particulars	Rs.
To Balace bid (Op. Bal.)	xxx	By Cash A/c (Received)	xxx
To Sles A/c (Credit sales)	xxx	By Bank (Cheques Received)	xxx
To Bank A/c (Cheque dishonoured)	xxx	By Discount allowed	xxx
To Bills receivable (Bills dishonoured)	xxx	By Sales return A/c	xxx
		By Bad debts A/c	xxx
		By Bills receivable A/c
		(Bills received)	xxx
		By Balance c/d	xxx
	xxxx	Closing balance	xxx

In the books of Shanthi Statement of affairs as on
31^st December, 2018
Liabilities	Rs	Assets	Rs
Sundry creditors	25,000	Cash	4,000
Bills payable	4,000	Stock	45,000
Capital (balancing figure)	1,66,000	Debtors	70,000
		Bills receivable	6,000
		Machinery	60,000
		Furniture	10,000
	1,95,000		1,95,000

Generic 5

8 x 5 = 40

In the books of Y company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 x 10)	Dr.	1,00,000
To Equity share application A/c			1,00,000
(Application money received)
Equity share application A/c	Dr.	1,00,000
To Equity share capital A/c			1,00,000
(Application money transferred to share capitals)

(ii) Issued at a premium

In the books of Y company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 x 12)	Dr.	1,20,000
To Equity share application A/c			1,20,000
(Application money received)
Equity share application A/c	Dr.	1,20,000
To Equity share capital A/c (10,000 x 10)			1,00,000
To Securities premium A/c (10,000 x 2)			20,000
(Application money transferred)

10.

Journal entries
Date	Particulars		Depit Rs	Credit Rs
2018 Dec.31	Revaluation A/c	Dr	13,000
	To Machinery A/c			10,000
	To Office equipment A/c			2,000
	To Provision for doubtful debts A/c			1,000
	(Depreciation on machinery and furniture and
	provision made for doubtful debts adjusted)
2018 Dec.31	Investments A/c	Dr	25,000
	To Revaluation A/c			25,000
	(unrecorded investment brought into accounts)
2018 Dec.31	Revaluation A/c	Dr	12,000
	To A's capital A/c			4,000
	To B's capital A/c			4,000
	To C's cpital A/c			4,000
	(profit on revaluation transferred to capital accounts)

Dr Revaluation Account Cr
Particulars	Rs	Rs	Particulars	Rs
To Machinery A/c		10,000	By Investments A/c	25,000
To office equipment /c		2,000
provision for doubtful debts		1,000
To profit on revaluation transferred to
A's capital A/c (12,000 X1/3)	4,000
B's capital A/c (12,000 X1/3)	4,000
C's capital A/c (12,000 X1/3)	4,000	12,000
		25,000		25,000

Dr Capital Account Cr
Particulars	A Rs	B Rs	C Rs	Particulars	A Rs	B Rs	C Rs
To Balance c/d	84,000	64,000		By Balance b/d	80,000	60,000	1,00,000
To C's loan Ale			1,04,000	By Revaluation A/c	4,000	4,000	4,000

	84,000	64,000	1,04,000		84,000	64,000	1,04,000
				By Balanced b/d	84,000	64,000

11.

(i) Interest on capital will not allowed as the partnership deed is silent as to the interest on capital.
(ii) Profit before interest on capital is 27,000
Computation of interest on capital:
Anusha: Rs.2,00,000 x \(\frac{3}{100}\) = Rs.6,000
Barathi: Rs.1,00,000 x \(\frac{3}{100}\) = Rs.3,000
Computation of interest on capital:
Anusha: Rs.2,00,000 x \(\frac{5}{100}\) = Rs.10,000
Barathi: Rs.1,00,000 x \(\frac{5}{100}\) = Rs.5,000

12.

Statement of affairs as on 31^st December 2016
Liabilities	Rs.	Assets	Rs.
Bank overdraft	30,000	Cash in hand	6,000
Sundry creditors	26,000	Stock	50,000
Bills payable	6,000	Sundry Debtors	60,000
Capital (Balancing figure)	1,82,000	Furniture	40,000
		Bills receivable	8,000
		Machinery	50,000
		Investment	30,000
	2,44,000		2,44,000

Statement of affairs as on 31^st December 2017
Liabilities	Rs.	Assets	Rs.	Rs.
Sundry creditors	40,000	Cash in hand		24,000
Bills payable	12,000	Stock		80,000
Outstanding salary	2,400	Debtors	1,40,000
Capital (Balancing figure)	4,33,400	Less: Bad debts	2,000
			1,38,000
		Less: Provision @5%	6,900	1,31,100
		Furniture	60,000
		Less: Depreciation @10%	6,000	54,000
		Bills receivable		28,000
		Prepaid insurance		700
		Machinery	1,00,000
		Less: Depreciation @10%	10,000	90,000
		Investment		80,000
	4,87,800			4,87,800

Statement showing profit or loss for the year ending 31st December 2017
Particulars	Rs.
Capital at the end of the year	4,33,400
Add: Drawings during the year (10,000 x 12)	1,20,000
	5,53,400
Less: Additional capital introduced in the year	2,00,000
Adjusted closing capital	3,53,400
Less: Capital in the beginning of the year	1,82,000
Profit for the year 2017	1,71,400

13.

Journal entries
Date	Particulars		Debit Rs	Credit Rs
2018 April 1	Land and building A/c	Dr	18,000
	To Revaluation A/c			18,000
	(Increase in the value of building accounted)
2018 April 1	Revaluation A/c	Dr.	23,000
	To Machinery A/c			15,000
	To Outstanding expenses A/c			8,000
	(Reduction in the value of machinery
	and outstanding expenses accounted)
2018 April 1	Vinoth's capital A/c	Dr	2,000
	Karthi's capital A/c	Dr.	2,000
	Pranar's capital A/c	Dr	1,000
	To Revaluation A/c			5,000
	(Loss on revaluation transferred to
	capital accounts)

**Dr Revaluation A/c Cr**
Particulars	Rs	Particulars	Rs	Rs
To Machinery A/c	15,000	By Land and building A/c		18,000
To Outstanding expenses A/c	8,000	By Loss on revaluation transferred to
		Vinoth's capital A/c (5,000 x 2/5)	2,000
		Karthi's capital A/c (5,000 x 2/5)	2,000
		Prana's capital A/c (5,000 x 1/5)	1,000
				5,000
	23,000			23,000

14.

**Dr. Partners’ Capital A/c Cr.**
Particulars	Mannan Rs.	Sevagan Rs.	Particulars	Mannan Rs.	Sevagan Rs.
To Drawings A/c	40,000	35,000	By Balance b/d	2,00,000	1,75,000
To Interest on			By Profit and loss
drawings A/c	1,000	500	appropriation A/c	21,000	16,500
To Balance c/d	2,10,00	1,69,000	By Interest on capital A/c	12,000	10,500
			By Salary A/c	18,000	-
			By Commission A/c	-	2,500
	2,51,000	2,04,500		2,51,000	2,04,500
				2,10,000	1,69,000

15.

In the books of Poompuhar Literary Association
Dr. Receipts and Payments Account for the year ended 31st March, 2019 Cr
Receipts	Rs.	Payments	Rs.
To Balance b/d		By Balance b/d
Cash in hand	5,000	Bank overdraft	4,000
To Sale of investments	1,000	By Printing and stationery	1,500
To Endowment fund receipts	2,000	By Interest paid	3,250
To Subscriptions received	20,000	By Purchase of refreshments	1,500
To Sundry receipts	750	By Lighting charges	1,300
To Government grants received	6,000	By Repairs and renewals	2,500
To Sale of refreshments	1,500	By Conveyance paid	2,750
		By Books purchased	10,000
		By Insurance premium paid	4,000
		By Balance c/d
		Cash at bank	2,000
		Cash in hand	3,450
	36,250		36,250

Note: As outstanding salary and depreciation are non-cash items, both are to be excluded inreceipts and payments account.

16.

Dr. Bills receivable account Cr.
Particulars	Rs	Particulars	Rs
To Balance b/d	5,000	By Cash A/c	14,000
To Debtors A/c	11,200	By Debtors A/c	1,200
(Bills received - balancing figure )		(bills receivable dishonoured) By Balance c/d	1,000
	16,200		16,200

Dr. Total debtors account Cr.
Particulars	Rs	Particulars	Rs
To Balance b/d	60,000	By Cash A/c (received)	1,30,000
To Bills receivable A/c (dishonoured)	1,200	By Discount allowed A/c	5,500
To Sales A/c (credit)	1,44,000	By Bad debts A/c	3,500
(balancing figure)		By Bills receivable A/c	11,200
		(bills received) By Balance c/d	55,000
	2,05,200		2,05,200

Dr. Bills payable account Cr
Particulars	Rs	Particulars	Rs
To Cash A/c (bills paid)	7,000	By Balance b/d	2,000
To Balance c/d	3,000	By Sundry creditors A/c (bills accepted – balancing figure)
			8,000
	10,000		10,000

Dr. Total creditors account Cr.
Particulars	Rs	Particulars	Rs
To Cash A/c (paid )	70,000	By Balance b/d	25,000
To Discount received A/c	3,500	By Purchases A/c (credit)	84,500
To Bills payable A/c (bills accepted)	8,000	(balancing figure)
To balance c/d	28,000
	1,09,500		1,09,500

Multiple Choice Question

20 x 1 = 20

17.

(b)
May not

18.

(b)
Closing Balance

19.

20.

(b)
Single aspect of transaction is recorded

21.

(b)
Calls in advance

22.

(b)
Rs.2

23.

(a)
the difference between the capital on two dates

24.

(d)
Rs. 1,20,000

25.

(b)
Liability

26.

27.

(a)
Capital account of all the partners

28.

29.

(d)
Rs.2 per share

30.

31.

(d)
6% per annum

32.

(a)
An asset

33.

(b)
Real A/c

34.

(a)
Rs. 9,000

35.

(a)
Total debtors account

36.

Generic 2

5 x 2 = 10

37.

Statement of affairs prepared under single entry system is not called a balance sheet because statement of affairs is not prepared with the list of ledger balances kept on the basis of double entry system. Also value of assets and liabilities shown in statement of affairs are only the estimates and not the actual values.

38.

In the current account, the transactions relating to drawings, interest on capital, interest on drawings, salary, share of profit or loss etc, are recorded. Hence, the balance in the currents accounts change every year.

39.

Computation of sacrificing ratio and new profit sharing ratio
Siva's share = \(\frac{1}{5}\)
Proportion of share sacrificed = 1 : 1 (equally) i.e.\(\frac{1}{2}:\frac{1}{2}\)
Share scarified = New partner's share x Proportion of share sacrificed
Selvam \(=\frac { 1 }{ 5 } \times \frac { 1 }{ 2 } =\frac { 1 }{ 10 } \)
Senthil \(=\frac { 1 }{ 5 } \times \frac { 1 }{ 2 } =\frac { 1 }{ 10 } \)
Sacrificing ratio of Selvam and Senthil is \(\frac { 1 }{ 10 } :\frac { 1 }{ 10 } \) that is 1:1
New share of old partner = Old share - Share sacrificed
Selvam \(=\frac { 2 }{ 5 } -\frac { 1 }{ 10 } =\frac { 4-1 }{ 10 } =\frac { 3 }{ 10 } \)
Senthil \(=\frac { 3 }{ 5 } -\frac { 1 }{ 10 } =\frac { 6-1 }{ 10 } =\frac { 5 }{ 10 } \)
Share of new partner
Siva = \(\frac{1}{5}\)
In order to equate, monthly and divide Siva's share by 2
\(=\frac { 1 }{ 5 } \times \frac { 2 }{ 2 } =\frac { 2 }{ 10 } \)
New profit sharing ratio of Selvam, Senthil and Siva \(=\frac { 3 }{ 10 } :\frac { 5 }{ 10 } :\frac { 2 }{ 10 } \), that is 3:5:2

40.

When the number of shares applied for is more than the number of shares offered for subscription, it is said to be over subscription.

41.

It is the amount given to a non-trading concern as per the will. It is like a donation. It appears as the debit side of receipts and payments account. But is not treated income because it is not of recurring nature. It is a capital receipt.