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Accounts..std 12
Accounts..std 12
Accounts..std 12
BISTUPUR, JAMSHEDPUR
FIRST TERM EXAMINATION 2020-21
STD. 12(D&E) ACCOUNTS F.M. 50
READING TIME: 8:30 a.m. – 8:40 a.m. WRITING TIME: 8:40 a.m. – 10:40 a.m.
SUBMISSION TIME: 10:40 a.m. – 10:50 a.m.
SECTION - A
PART - I
(Answer all the questions)
[7x2]
QI. 1) Give the adjusting and closing entries for recording interest on drawings charged from the partners
when the firm follows the fixed capital method.
2) Interest allowed on capital is debited to profit & loss appropriation account and not to profit and
loss account why ?
4) What entry is recorded to distribute general reserve and profit & loss credit balance in admission of
a partner.
QII.a) A Co. Ltd. Issued 2,75,000 equity shares of Rs.10 each for subscription at a premium of 10% on the
following terms. [6]
Rs.3 to be paid on application
Rs.4 to be paid on allotment
Rs.2 to be paid on first call
Rs.2 to be paid on final call
Applications were received for 2,50,000 eq. shares which were allotted. Amount due was received on due
date except from a shareholder holding 5000 shares failed to pay the calls. Pass entries and prepare the
Balance Sheet.
b) A and B, the two partners agreed to appropriate the profit of their firm on the following terms : [6]
1) Interest is payable on capital at 6% p.a.
2) A will be entitled to a salary of Rs.550 per month.
3) Interest on loan given by the firm to the partner is @ 10% per annum.
4) Interest on drawings to be charged from partners @ 5% per annum.
5) B will get commission @1% on the sales made during the year.
6) A is entitled to a rent of Rs.20,000 per annum for allowing the firm to carry on the business in his
premises.
Net profit of the firm for the year ended 31.03.2018 was Rs.1,80,000 before taking into account any
of the above terms.
Capital A Rs.150000
B Rs.140000
Loan advanced on 01.10.2017 by B Rs.100000 drawings A Rs.40000, B Rs.30000.
Sales of the firm amounted to Rs.750000. Prepare profit and loss appropriation accounts and
partners capital account.
STD.12 D&E : 2 :
QIII. Amit and Basu are partners in a firm. Their Balance Sheet as at 31.03.2020 was as follows :- [12]
On 1st April 2020, they admitted Vishnu as a partner on the following conditions.
1) Vishnu brings Rs.60000 as capital but unable to bring any amount for goodwill.
2) New profit sharing ratio 3 : 2 : 1.
3) Claim on account of workmen compensation is Rs. 3000.
4) Write off bad debts amounting to Rs.6000
5) Creditors are to be paid Rs.2000 more.
6) Rs.2000 be provided for a liability to wards customers warranty claim.
7) Outstanding expenses be brought down to Rs.1200.
8) Expenses on revaluation amounting to Rs.5000 are paid by Amit.
9) Out of the amount of insurance which was debited entirely to profit and loss account last year, Rs.5000
be carried forward as unexpected.
10) Goodwill is valued at 1 ½ years purchase of the average profit of last 3 years less Rs.12000. Profit for
the last 3 years amounted to Rs.10000, 20000 and Rs.30000.
Prepare Revaluation Account, capital Account and Balance Sheet.
QIV.a) Calculate the goodwill of a firm on the basis of three years purchase of the weighted average profit of the
last four years. Profits of these four years ended 31.03 were. [6]
31.03.2017 Rs.40400
31.03.2018 Rs.49600
31.03.2019 Rs.40000
31.03.2020 Rs.60000
b) P, Q and R are partners. Their capitals as on 31.03.2019 stood at Rs.500000, 500000 and 250000. Their
balance in the current accounts as on that date stood at Rs.100000, 150000 and 50000 (Dr) respectively.
Drawings of each of the partners during the financial year were Rs.50000.
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