+2 Acc Model Hly Exam 22

Date : 22-Nov-22
12th Standard
Reg.No. :
Accountancy
Use Blue Ink Only

Time : 03:00:00 Hrs

Total Marks : 90
Part A Multiple Choice Question 15 x 1 = 15
1) (c) Small sized sole trader business
2) (a) Total debtors account
3) (b) Real A/c
4) (a) Nominal A/c
5) (a) Equal ratio
6) (b) 6 months
7) (a) Goodwill is an intangible asset
8) (c) Goodwill under Annuity method - Average profit × Present value annuity factor
9) (b) Nominal A/c
10) (d) 1:2
11) (c) Date of his retirement
12) (c) Both (i) and (ii) are correct
13) (c) Trend analysis refers to the study of movement of figures for one year
14) (b) Ratio
15) (b) Special purpose report
Part A Assertion and reason 1x1=1
16) (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
Part A Odd one out 1x1=1
17) Sacrificing ratio
Reason: Sacrificing ratio is the proportion of the profit which is sacrificed or foregone by the old partners in favour of the
new partner. Other three are functional classification of ratio analysis.
Part A Correct Statement 1x1=1
18) (i), (ii) and (iii) are correct
Part A Find out the wrong pair 1x1=1
19) (d) Contra voucher = Only receipt items
Part A Choose the correct pair 1x1=1
20) Profit/Loss = Closing capital + Drawings - Additional - Capital - opening capital
Part B Answer Any Seven Questions and Question Number 30 is Compulsory 7 x 2 = 14
21)
Dr. Bills receivable account Cr.
Particulars Rs Particulars Rs
To Balance b/d 20,000 By Cash A/c 60,000
To Debtors A/c 75,000 By Debtors A/c 5,000
(Bills received during the year
– balancing figure) (Bills receivable dishonoured)
By Balance c/d 30,000
95,000 95,000
22)
Dr. Income and Expenditure Account for the year ended 31st March, 2017 Cr
Expenditure Rs. Income Rs. Rs.
By Subscription 60,000
Add: Outstanding subscription for 2016-17 2,400
Subscription received in advance in
in advance in 1,000 63,400

Tutorial note
(i) Subscription for the year 2015-16 Rs. 7,500 and for the year 2017-18 Rs. 1,500 do not relate to the current year. So they
should not be recorded in Income and Expenditure Account.
(ii) Subscription outstanding for the current year 2016-17 is Rs. 2,400. It should be added with the amount of subscription
received during 2016-17.
23) Calculation of interest on drawings of Priya (using average period)
Total amount of drawings = 4,000 × 4 = Rs. 16,000
If drawings are made at the end of every quarter, average period = 4.5
Interest on drawings = Total amount of drawings × Rate of interest × Average period

12

= Rs. 16,000 ×
6
×
4.5 = Rs. 360
100 12

24)
 Calculation of weighted average profit

Year Profit (a)

Weights (b) Weighted profits
Rs. (a x b) Rs
2015 20,000
1 20,000
2016 22,000
2 44,000
2017 24,000
3 72,000
2018 28,000
4 1,12,000
Total 10 2,48,000
Weighted average profit = T otal of weighted prof its

T otal of weights

= 2,48,000 =Rs.24,800
10

Goodwill = Weighted average profit × Number of years of purchase

= 24,800 x 3 = Rs.74,400
25)
Journal entry
Debit Credit
Date Particulars L.E. Rs. Rs.
2019 Kavitha’s capital A/c Dr. 40,000
January 1 Radha’s capital A/c Dr. 30,000
To Profit and loss a/c
(Accumulated loss transferred to old partners’ 70,000
capital account in the old profit sharing ratio)
26) Gaining Ratio is the proportion of the profit which is gained by the continuing partner.
Gaining ratio = Ratio of share gained by the Conitinuing partners.
Share gained = New share - Old share
27) When a shareholder defaults in making payment of allotment andlor call money, the shares may be forfeited. On forfeiture,
the share allotment is cancelled and to that extent paid up share capital a reduced. The person ceases to be a shareholder
of the company after the shares are forfeited.
28)
Common-size income statement of Kumar Ltd for the year ended 31st March, 2018
Particulars Absolute amount Percentage of revenue from operations
Revenue from operations 5,00,000 100
Add: Other income 20,000 4
Total revenue 5,20,000 104
Less: Expenses 3,00,000 60
Profit before tax 2,20,000 44
Computation of percentage for other income
20, 000
× 100 = 4 %
5, 00, 000

29) Quick ratio = Quick assets

C urrent liabilities

Quick assets = Current assets - Inventories - Prepaid expenses

= Rs.4,50,00 + Rs.70,000 - Rs.20,000
= Rs.3,60,000
Quick ratio = = 1:5:1
3,60,000

2,40,000

30) (i) A Management Information System (MIS) is a system that provides information for decision making at all levels of
management.
(ii) It includes manufacturing information system, marketing information system, human resource information system and
accounting information system.
Part C Answer Any Seven Questions and Question Number 40 is Compulsory 7 x 3 = 21
31)
Statement of profit or loss for the year ended 31st March, 2019
Particulars Rs.
Closing capital (as on 31.3.2019) 1,90,000
Add: Drawings during the year 30,000
2,20,000
Less: Additional capital introduced during the year 50,000
Adjusted closing capital 1,70,000
Less: Opening capital (as on 1.4.2018) (balancing figure) 2,10,000
Loss for the year ending 31.3.2019 (-) 40,000
32)
Dr. Receipts and Payments Account for the year ended
31st March, 2019 Cr
Receipts Rs. Payments Rs.
To Balance b/d By Rent paid 6,000
Cash in hand 18,000 By Scholarship given 15,200
To Entrance fees 18,500 By Building purchased 2,10,000
To Subscription received 2,65,000 By Staff salary 55,000
By Balance c/d
Cash in hand 15,300
3,01,500 3,01,500
33)
 Particulars Subha Sudha
Rs. Rs.
Capital on 31st
December 2017 15,000 20,000
Add: Drawings 2,500 3,500
17,500 23,500
Less: Profit already credited 7,500 7,500
Capital on 1st January 2017 10,000 16,000
Calculation of interest on capital:
Subha:
On opening capital = 10,00 × = Rs. 600 6

100

Sudha:
On opening capital = 16,000 ×
6 = Rs. 960
100

34) Goodwill = Average profit × Number of years of purchase

Average profit = T otal prof it

N umber of year

Average profit = 15,000+17,000−6,000+14,000

= 40,000 = Rs. 10,000

4

Goodwill = Average profit × Number of years of purchase

= 10,000 × 5 = Rs. 50,000
35)
Journal entries

Date Particulars L.F. Debit

Rs.
Credit
Rs.
Buildings A/c Dr. 15,000
To Revaluation A/c 15,000
(Appreciation in value of buildings recorded)
Revaluation A/c Dr. 5,000
To Machinery A/c 4,000
To Provision for doubtful debts A/c 1,000
(Decrease in assets recorded and provision made)
Revaluation A/c Dr. 10,000
To Rajesh’s capital A/c 6,000
To Ramesh’s capital A/c 4,000
(Profit on revaluation transferred)
Dr. Revaluation Account Cr.
Particulars Rs. Rs. Particulars Rs.
To Machinery A/c 4,000 By Buildings A/c 15,000
To Provision for doubtful debts A/c 1,000
To Profit on revaluation transferred to
Rajesh’s capital A/c (3/5) 6,000
Ramesh’s capital A/c (2/5) 4,000 10,000
15,000 15,000
36)
Journal entry

Date Particulars L.F Debit

Rs.
Credit
RS.
2019
March Profit and loss appropriation A/c Dr. 10,000
31
General reserve A/c Dr. 55,000
Workmen compensation fund A/c Dr. 17,000
To Prince’s capital A/c (42,000 × 2/7) 12,000
To Dev’s capital A/c (42,000 × 4/7) 24,000
To Sasireka’s capital A/c (42,000 × 1/7) 6,000
(Accumulated profits and reserve transferred to allpartners’ capital account in the
old profit sharing ratio)
37)
In the books of Anu Company Journal entries
Debit Credit
Date Particulars L.F. Rs. Rs.
Equity share capital A/c (200 × 10) Dr. 2,000
To Equity share final call A/c (200 × 3) 600
To Forfeited shares A/c (200 × 7) 1,400
(100 shares forfeited)
Bank A/c (200 × 6) Dr 1,200
Forfeited shares A/c (200 × 4) Dr 800
To Share capital A/c (200 × 10) 2,000
(Forfeited shares reissued)
Forfeited shares A/c (1,400-800) Dr. 600
To Capital reserve A/c 600
(Gain on reissue of forfeited shares transferred to capital reserve account)
38)
 Comparative income statement of Abdul Co. Ltd for the years ended 31st March, 2016
and 31st March, 2017
Absolute amount Percentage
Particulars 2015-16 2016-17 of increase (+) or increase (+) or
decrease (–) decrease (–)
Rs. Rs. Rs.
Revenue from operations 3,00,000 3,60,000 +60,000 +20
Add: Other income 1,00,000 60,000 –40,000 –40
Total revenue 4,00,000 4,20,000 +20,000 +5
Less: Expenses 2,00,000 1,80,000 –20,000 –10
Profit before tax 2,00,000 2,40,000 +40,000 +20
Less: Tax (30%) 60,000 72,000 +12,000 +20
Profit after tax 1,40,000 1,68,000 +28,000 +20
39) Operating cost ratio = Operating cost 4, 80, 000 %
× 100 = × 100 = 60
Revenue f rom operations 8, 00, 000

Cost of revenue from operations = Purchases of stock-in-trade + Change in inventories of stock in trade + Direct expenses
(wages)
=4,50,000 + (40,000) + 10,000 = Rs.4,20,000
Operating expenses = Administrative expenses + Selling and distribution expenses+ Employee benefits expenses (salaries)
= 20,000 + 28,000 + 12,000 = Rs.60,000
Operating cost = Cost of revenue from operations + Operating expenses
= 4,20,000 + 60,000 = Rs.4,80,000
Tutorial Note
Loss on sale of fixed assets is a non-operating item, hence it is ignored.
(iii) Operating profit ratio
Operating profit ratio gives the proportion of operating profit to revenue from operations.
Operating profit ratio is an indicator of operational efficiency of an organisation. It may be computed as follows
Operating profit ratio = Operating prof it
× 100
Revenue f rom operations

Alternatively, it is calculated as under.

Operating profit ratio = 100 – Operating cost ratio
Operating profit = Revenue from operations – Operating cost
A higher ratio indicates better profitability. Greater the operating ratio, higher is the margin available for paying non-
operating expenses
Tutorial note
Operating cost ratio + Operating profit ratio = 100%
40) In Tally, to record transactions, the transactions are to be identified with the related ledger accounts. In Tally ERP 9, there
are two types of pre. defined ledgers.
(i) Cash: Under the group cash-in-hand this ledger is created, you can enter the opening balance as on the books beginning
from.
(ii) Profit and loss account : This ledger is created under the group primary. In this ledger previous year's profit or loss is
entered as the opening-balance of this ledger.
To create ledger:
Gateway of Tally ➝ Masters >
Accounts Info > Ledgers >
Single Ledger > create
Part D Answer All 7 x 5 = 35
41) a)
 In the books of Ahmed
Calculation of opening capital
Statement of affairs as on 31st March, 2017
Liabilities Rs Assets Rs
Bank overdraft 14,000 Cash in hand 800
Creditors 60,000 Stock 12,000
Capital (balancing figure) 92,800 Debtors 34,000
Plant 80,000
1,66,800 1,66,800

Calculation of closing capital

Statement of affairs as on 31st March, 2018
Liabilities Rs Assets Rs Rs
Creditors 72,000 Bank balance 18,000
Capital
(balancing 1,04,000 Cash in hand 1,500
figure)
Stock 16,000
Debtors 30,000
Less: Provision
for doubtful
debts @ 5% 1,500 28,500
Plant 80,000
Less:
8,000 72,000
Depreciation
Furniture 40,000
1,76,000 1,76,000
Statement of profit or loss for the year ending 31st March,
2018
Particulars Rs
Closing capital as on 31.3.2018 1,04,000
Add: Drawings during the year 40,000
1,44,000
Less: Additional capital introduced during the year 16,000
Adjusted closing capital 1,28,000
Less: Opening capital as on 31.3.2017 92,800
Profit for the year ending 31.3.2018 35,200
(OR)
b)
Dr. Revaluation Account Cr.
Particulars Rs. Rs. Particulars Rs.
To Stock A/c 5,000 By Buildings A/c 16,000
To Provision for doubtful debts A/c 1,000
To Profit on revaluation transferred to
Mani’s capital A/c (4/10) 4,000
Rama’s capital A/c (3/10) 3,000
Devan’s capital A/c (3/10) 3,000 10,000
16,000 16,000
Dr. Capital Account Cr.

Particulars Mani Rama Devan Particulars Mani Rama Devan

Rs. Rs. Rs. Rs. Rs. Rs.
To Mani’s loan A/c 66,000 By Balance b/d 50,000 50,000 50,000
To Balance c/d 62,000 62,000 By Revaluation A/c 4,000 3,000 3,000
By Profit and loss A/c 12,000 9,000 9,000
66,000 62,000 62,000 66,000 62,000 62,000
By Balance b/d 62,000 62,000
42) a)
 In the book of Raju
Calculation of opening capital:
Statement of affairs as on 1.1.2018
Liabilities Rs. Assets Rs.
Sundry creditors 1,30,000 Cash at bank 80,000
Bank loan 60,000 Stock of goods 1,80,000
Bills payable 80,000 Debtors 90,000
Capital (Balancing figure) 2,50,000 plant and machinery 1,70,000
5,20,000 5,20,000
Calculation of closing capital:
Statement of affairs as on 1.1.2018
Liabilities Rs. Assets Rs.
Sundry creditors 1,95,000 Cash at bank 90,000
Bank loan 60,000 Stock of goods 1,40,000
Bills payable 45,000 Debtors 2,00,000
Capital (Balancing figure) 3,00,000 Plant and machinery 1,70,000
6,00,000 6,00,000
Statement of profit loss for the year ending
31st December 2018
Particulars Rs.
Closing capital as on 31.12.2018 3,00,000
Add: Drawings during the year (2500 × 12) 30,000
3,30,000
Less: Additional capital introduced during the year 50,000
Adjusted closing capital 2,80,000
Less: Opening capital as on 01.01.2018 2,50,000
Profit made during the year 30,000
(OR)
b)
In the books of Chennai Sports Club
In the books of Chennai Sports Club
Dr. Receipts and Payments Account for the year ended
31st March, 2018 Cr.
Receipts Rs. Rs. Payments Rs. Rs.
To Balance b/d: By Interest paid 5,000
Cash 10,000 By Telephone expenses 7,000
Bank 15,000 25,000 By Upkeep of grounds 22,500
To Life membership fees 5,500 By Bats and balls purchased 13,000
To Tournament fund receipts 15,000 By Tournament expenses 12,500
To Subscriptions received By Balance c/d
2016 – 2017 4,500 Cash 5,000
2017 – 2018 65,000 Bank (Bal. fig) 55,000 60,000
2018 – 2019 5,000 74,500
1,20,000 1,20,000
43) a)
Dr In the books of Tenkasi Thiruvalluvar Manram Income and Expenditure
Account for the year ended 31st March, 2019 Cr
Expenditure Rs Income Rs
To Rent 24,000 By Interest received 5,000
To Travelling expenses 2,000 By Subscription 55,000
To Salaries 20,000 By Entrance fees 7,000
To Printing and
stationary 6,000
To Loss on sale of
furniture 1,000
To Surplus 14,000
(Excess of income over penditure)
67,000 67,000
(OR)
b)
 Journal entries

Date Particulars L.F. Debit Credit

Rs. Rs.
2017 Bank A/c Dr. 10,000
April 1 To Prakash’s capital A.c 10,000
(Capital brought by Prakash)
" Revaluation A/c Dr. 11,000
To Machinery A/c 6,000
To Furniture A/c 3,000
To Provision for doubtful debts A/c
(Depreciation on machinery and furniture and 2,000
provision made for doubtful debts adjusted)
" Trade receivables A/c 1,000
To Revaluation A/c 1,000
(Unrecorded trade receivables recorded)
" Raghu’s capital A/c 6,000
Sam’s capital A/c Dr. 4,000
To Revaluation A/c
(Loss on revaluation transferred to capital accounts) 10,000

Dr. Revaluation Account Cr.

Particulars Rs. Particulars Rs. Rs.
To Machinery 6,000 By Trade receivables A/c 1,000
To Furniture 3,000 By Loss on revaluation transferred to
To Provision for bad debts 2,000 Raghu’s capital A/c (3/5) 6,000
Sam’s capital A/c (2/5 4,000 10,000
11,000 11,000
Dr. Capital Account Cr.
Ragu Sam Praksh Ragu Sam Prakash
Date Particulars Rs. Rs. Rs. Date Particulars Rs. Rs. Rs.
To Revaluation A 6,000 4,000 - By Balance b/d 40,000 30,000 -
To Balance c/d 34,000 26,000 10,000 By Bank - - 10,000
40,000 30,000 10,000 40,000 30,000 10,000
By Balance b/d 34,000 26,000 10,000
44) a)
Dr. Partners’ Capital Account Cr.

Date Particulars Shanthi Sumathi Date Particulars Shanthi Sumathi

Rs. Rs. Rs. Rs.
2018 2018
Jan 1
By Balance b/d 1,00,000 80,000
By Bank
Dec 31 To Balance c/d 1,10,000 1,00,000 June 1 (Additional capital) 10,000 20,000
1,10,000 1,00,000 1,10,000 1,00,000
2019
Jan 1 By Balance b/d 1,10,000 1,00,000
Dr. Partners’ Current Account Cr.

Date Particulars Shanthi Sumathi Date Particulars Shanthi Sumathi

Rs. Rs. Rs. Rs.
To Drawings 20,000 13,000 By Balance b/d 5,000 3,000
To Interest on By Profit and loss
500 300
drawings appropriation A/c 10,000 8,000
To Balance c/d 9,800 4,300 (share of profit)
By Interest on capital 6,300 5,400
By Salary 9,000 -
By Commission - 1,200
30,300 17,600 30,300 17,600
By Balance b/d 9,800 4,300
(OR)
b)
(i) Gross profit ratio = Gross prof it = 100 = 4,000 100 = 20%
× ×
Revenue f rom operations 20,000

Cost of revenue from operations = Purchase of stock-in-trade + Changes in inventory + Direct expenses
= 17,000 – 1,000 + 0 = Rs.16,000
Gross profit = Revenue from operations – Cost of revenue from operations
= 20,000 – 16,000 = Rs.4,000
(ii) Net profit ratio = 100 =
N et prof it af ter tax
× ×
100 = 7.5% 1,500

Revenue f rom operations 20,000

45) a)
 Dr Profit and loss appropriation accounts for the year ended
31st December 2018 Cr
Particulars Rs. Rs. Particulars Rs.
To Interest on capital A/c By Profit and loss A/c 3,65,000
Antony (4,00,000 × 5%) 20,000
Ranjith (3,00,000 × 5%) 15,000 35,000
To Salary to Antony 90,000
To Commission to Ranjith 48,000
To Partner's capital A/c (profit)
Antony (1, 92, 000 × ) 1

2
96,000
Ranjith (1, 92, 000 × 96,000 1,92,000
1
)
2

3,65,000 3,65,000
Profit before commission = 3,65,000 - (35,000 + 90,000) = Rs. 2,40,000
Commission = Net profit before commission × Rate of commission

(100+Rate of commission)

Commission = 2,40,000 ×
25
= Rs. 48,000
125

(OR)
b)
Trend analysis for Neithal Ltd
Particulars Rs.in lakhs Trend percentages
2015-16 2016-17 2017-18 2015-16 2016-17 2017-18
Revenue from operations 150 135 90 100 90 60
Add: Other income 25 5 15 100 20 60
Total revenue 175 140 105 100 80 60
Less: Expenses 125 75 50 100 60 40
Profit before tax 50 65 55 100 130 110
Less: Income tax (40%) 20 26 22 100 130 110
Profit after tax 30 39 33 100 130 110
46) a)
Average profit T otal prof it
=
N umber of years

30,000+40,000+50,000+45,000
=
3
1,62,000 = Rs. 40,500
4

Normal profit = Capital employed × Normal rate of return

= 3,00,000 × = Rs. 30,000
10

100

Super profit = Average profit - Normal profit

= 40,500 - 30,000 = Rs. 10,500
Goodwill = 100
super prof it
×
N ormal rate of return

= 10,500
× 100
= Rs. 1,05,000
10

(OR)
b)
Comparative balance sheet of Chandra Ltd as on 31st March 2016 and 31st March 2017
Absolute amount Percentage
Particulars 2015-16 2016-17 of increase ( +) or increase (+) or
decrease (–) decrease (–)
Rs. Rs. Rs.
I EQUITY AND LIABILITIES
Shareholders’ fund 1,00,000 2,60,000 +1,60,000 +160
Non-current liabilities 50,000 60,000 +10,000 +20
Current liabilities 25,000 30,000 +5,000 +20
Total 1,75,000 3,50,000 +1,75,000 +100
II ASSETS
Non-current assets 1,00,000 2,00,000 +1,00,000 +100
Current assets 75,000 1,50,000 +75,000 +100
Total 1,75,000 3,50,000 +1,75,000 +100
47) a)
Normal profit = Capital employed × Normal rate of return
= 2,00,000 × 15% = Rs. 30,000
Super profit = Average profit - Normal profit
= 42,000 - 30,000
= Rs. 12,000
Goodwill = Super profit × Number of years of purchase
= 12,000 × 3
= Rs. 36,000
(OR)
b)
In the books of Aruna Mills Ltd. Journal entries

Date Particulars L.F. Debit Credit

Rs. Rs.
Bank A/c (10,000 × 3) Dr. 30,000
To Equity share application A/c 30,000
(Application money received)
Equity share application A/c Dr. 30,000
To Equity share capital A/c 30,000
(Application money transferred to share capital A/c)
Equity share allotment A/c (10,000 × 3) Dr. 30,000
To Equity share capital A/c 30,000
(Allotment money due)
Bank A/c (10,000 × 3) Dr. 30,000
To Equity share allotment A/c 30,000
(Allotment money received)
Equity share first call A/c (10,000 × 2) Dr. 20,000
To Equity share capital A/c 20,000
(First call money due)
Bank A/c (10,000 × 2) Dr. 20,000
To Equity share first call A/c 20,000
(First call money received)
Equity share second and final call A/c (10,000 × 2) Dr 20,000
To Equity share capital A/c 20,000
(Second and final call money due)
Bank A/c (9,900 × 2) Dr. 19,800
To Equity share second and final call A/c 19,800
(Second and final call money received)
Equity share capital A/c (100 × 10) Dr. 1,000
To Equity share second and final call A/c 200
To Forfeited shares A/c 800
(100 shares forfeited)
Bank A/c (100 × 7) Dr. 700
Forfeited shares A/c 300
To Equity share capital A/c (100 × 10) 1,000
(Shares forfeited reissued)
Forfeited shares A/c (800-300) Dr. 500
To Capital reserve A/c 500
(Gain on reissue of forfeited shares transferred to capital reserve account)