Reg. No.

SET: 3

CONFEDERATION OF KERALA SAHODAYA COMPLEXES

COMMON MODEL TERM II EXAMINATION 2021-22
ACCOUNTANCY (055)
CLASS : XII TIME ALLOWED : 2 hrs
MAX. MARKS: 40
General Instructions:

1. This question paper comprises two Parts – A and B. There are 12 questions in the question paper.
All questions are compulsory.
2. Part-A is compulsory for all candidates.
3. Part- B has two options i.e., (i) Analysis of Financial Statements and (ii) Computerized Accounting.
Students must attempt only one of the given options.
4. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks each.
5. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks each.
6. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks each.
7. There is no overall choice. However, an internal choice has been provided in 3 questions of three
marks and 1 question of five marks.
PART A
(Accounting for Not-for-Profit organizations, Partnership firms and Companies)
1. Distinguish between Income and Expenditure A/c and Receipts & Payments
account on the basis of (a) Nature of account (b) basis of accounting. (2)
2. Anu, Manu and Vinu are partners in a firm in 5:4: 6 ratio. Manu retires and
goodwill of the firm was valued at Rs.3,60,000. Anu & Vinu decided to share
profits & losses equally after the retirement of Manu. The firm’s books
showed an Investments of ₹ 1,80,000 with an Investment Fluctuation Fund of ₹
15,000. Investments were valued at ₹ 1,50,000 on retirement of Manu. Pass
entries to record the above transactions. (2)
3. X, Y and Z are partners sharing profits in the ratio 1:2:3. Z retires on 1st
April, 2018 and his capital after making all adjustments for reserves and profit
on revaluation stands at Rs 2,40,000. X and Y agreed to pay him Rs 3,00,000 in
full settlement of his claim. Record necessary journal entry for the treatment of
goodwill if the new profit sharing ratio is decided as 1:3. (2)
4. Following information of Malayalee Club is given to you: (3)
Particulars. ₹
Subscription in arrears on 31 March2020
st 2,50,000
Subscription received in advance on 31/3/2020 1,50,000
Total subscription received during the year ending 31/3/21(including
1,80,000 for 2019-20 and 2,50,000 for 2021-22) 35,50,000
Subscription outstanding on 31/3/2021 5,50,000
 (a) Calculate the amount of subscription outstanding for the year 2020-21.
(b) What is the amount of subscription received on 2020-21 for the year 2020-21.
(c) Calculate the amount of subscription to be credited to Income & Expenditure
a/c for the year ending 31/3/21.
OR
Find out the cost of medicines consumed during the year ending 31/3/21 from the
following information. Also state what is the treatment for ‘medicines discarded’ .
PARTICULARS RS
Payments for purchase of medicines during the year 520000
Stock of medicines : as on 31-3-2021 50000

Creditors for medicine : as on 1/4/20 75000

Advance to suppliers of medicines as on 1/4/20 127000

Stock of medicines as on 1-4-2020 190000

Creditors for medicine as on 31-3-2021 90000
Advance to suppliers of medicine closing balance (31-3-2021) 110000
During the year the hospital discarded ₹25,000 worth of medicines
as they had crossed the expiry date.

5. Partners Kiran, Hari and Gopan sharing 2:2:1. Gopan died on 31-7-2021, on
which date (i) General Reserve appeared in the Balance Sheet was Rs. 50000/- . (ii)
Value of fixed assets were Rs. 300000/- and there was an increase in the value of
assets by 10% when these assets were revalued. Thenew profit sharing ratio between
Kiran and Hari will be 3:2 .The share of profit of Gopan till the date of death from
the previous Balance Sheet date 31-3-2021 was estimated as Rs. 15000/-
Pass Journal entries for the above transactions if-
(i) The partners do not want to distribute General Reserve
(ii) The partners wanted to show the value of assets in their old value in the new
Balance sheet after the death (3)
6. Neon Ltd Issued 20,000 , 8% Debentures of ₹200 each at 5% discount redeemable
after 5 years at 10% premium. Public applied for all these debentures. Amount was
payable as to ₹100 on application and balance on allotment. The company had a
balance of ₹3,00,000 in securities Premium, and ₹2,00,000 in Capital Reserve .Pass
entries. (3)

OR

KP Ltd issued 50,000, 11% debentures of ₹100 each as collateral security for a Loan
taken from HDFC Bank for ₹45,00,000 . The company decided to record the above
transactions in the books . Identify the two different methods to display the above
transactions and present in the books of the company.
 7. Hari Ltd issued Rs. 5,00,000, 9% Debentures of Rs. 100/- each at a discount of
10% ,redeemable at a premium of 5% . These debentures were payable as Rs. 40/-per
share on application and the balance on allotment. The company got applications for
6000 Debentures . The directors rejected 500 applications and pro-rata allotment was
made for the rest.

Write Journal entries for the issue and writing off the loss on issue of debentures and
prepare Loss on Issue of Debentures a/c. (5)

8. The following is the balance sheet of Jain Gupta & Malik .

Balance Sheet as at 31/3/2021.
Liabilities. Amount. Assets. Amount.
Sundry creditors 19,800 Land & Building 26,000
Telephone expenses 300 Machinery 20,230
Outstanding 8,950 Office Furniture 18,250
Accounts Payable 16,750 Computers. 13,200
Reserves Bonds 14,370
Capitals : Bills Receivables. 23,450
Jain --------------40,000 Sundry Debtors 26,700
Gupta------------60,000 Stock 18,100
Malik-------------20,000 1,20,000 Cash 5500
Total 1,65,800 Total 1,65,800
The partners have been sharing in the ratio of 5:3;2. Jain decided to retire from the
business on 1st April 2021 and his share in the business is calculated as per the
following terms of revaluation of assets and liabilities. Stock -₹20,000, Furniture-
₹14,250,Plant & machinery-₹23530, land & building- ₹20,000, A provision of ₹1700
be created on doubtful debts. The goodwill of the firm is valued at ₹45,000. The
continuing partners agreed to settle Jain by paying cash which is brought by
Gupta and Malik in their profit sharing ratio. You are required to make
Revaluation a/c and Capital accounts of partners.
OR
Following is the BALANCE SHEET of Anu and Anju as at 31-3-2021
LIABILITIES ASSETS
Capital Accounts: Land & Building 400000
Anju - 300000 Machinery 300000
Manju- 500000 Debtors 222000
Creditors 179000 Cash at Bank 78000
Employees Provident 21000
Fund 10,00,000 10,00,000
======== ==========

The firm was dissolved on 1.4.2021 and the Assets and Liabilities were settled as
follows:
(i) Land and Building realized ₹4,30,000; (ii) Debtors realized ₹2,25,000 (with
Interest) and ₹1,000 were recovered for Bad Debts written off last year. (iii) There
was an Unrecorded Investment which was sold for ₹25,000. (iv) Manju took over
Machinery at ₹2,80,000 for cash. (v) Creditors were settled by paying ₹4,000 less in
full settlement . Prepare Realization account. (5)

9. Following is the Receipts & Payments account of Rohan Welfare Club.

Receipts & payments account for the year ending 31/3/ 21

Prepare Income & Expenditure a/c for the year ended 31/3/21 and Balance Sheet after
considering the following adjustments:
(a) Subscription for 2021 still owing were 7000. Subscription received for the year
2021 includes Rs.5000 from a life member as membership fees.
(b ) Interest on Defence Bond Accrued was 7000,
(c)The book value of investments sold was 80,000. Investments still in hand is 30,000.
(d)Rent is still owing Rs. 1,000. Salary paid for the year 2022 is Rs.2000.
(e) The total value of furniture on 1-4- 21 was Rs. 12,000.
(f) Capital fund on 1/4/20 was Rs.2,01,000. (5)

PART—B
ANALYSIS OF FINANCIAL STATEMENTS

10. Classify the following into Operating activity, Investing activity or Financing
activity. (2)

(i)Dividend received by a Finance company

(ii)Dividend paid by a finance company
(iii)Interest paid by a non finance company
(iv) Cash paid against trade payables by a manufacturing company
 11 . Prepare a common size Balance sheet from the following information: (3)

Particulars Note No: 31/3/21 31/3/20

EQUITY & LIABILITIES :

Shareholder’s Fund 40,00,000 25,00,000
Non-Current liabilities 30,00,000 25,00,000
Current liabilities 10,00,000 15,00,000
80,00,000 55,00,000
TOTAL

ASSETS : 50,00,000 32,50,000

Non-Current assets 30,00,000 22,50,000
Current assets
80,00,000 55,00,000
TOTAL

OR
Prepare a Comparative statement of Profit and Loss from the following figures

Particulars. 31.3.2021 31.3.2020

Revenue from operation 40,00,000 20,00,000
Purchase of stock in trade 24,00,000 12,00,000
Change in inventories of stock in trade (% of purchase 25% 20%
of stock in trade)
Other expenses 2,00,000 1,60,000
Tax rate
40% 40%

12. Prepare a cash flow statement from the following balance sheet:
Note: No 31/3/21 31/3/20
Particulars.

I EQUITY AND LIABILITIES:

(1) Share holders fund

(a) Share capital 14,00,000 10,00,000
(b) Reserves & surplus (1) 5,00,000 4,00,000
(2) Non Current Liabilities:
Long term borrowing. 5,00,000 1,40,000
(3) Current liabilities:
(a) Trade payables
1,00,000 60,000
(b) Short term provisions (2) 80,000 60,000
TOTAL
25,80,000 16,60,000
 II. ASSETS:

(1) NON –Current Assets

( a) Fixed assets.
(i) Tangible assets (3) 16,00,000 9,00,000
(ii) Intangible assets. (4) 1,40,000 2,00,000
(2) current assets:
(a) Inventories 2,50,000 2,00,000
(b) Trade receivables 5,00,000 3,00,000
(c) Cash and cash equivalents. 90,000 60,000

TOTAL 25,80,000 16,60,000

Notes to accounts:--

PARTICULARS NOTE NO:

Reserves & Surplus:-
Statement of Profit & loss 1. 5,00,000 4,00,000

Short term provision:

Provision of taxation. 2 80,000 60,000
Tangible assets:
Machine 3. 18,50,000 10,00,000
Less : Depreciation (2,50,000) (1,00,000)
----------- -----------
16,00,000 9,00,000
Intangible assets: Goodwill 4 1,40,000 2,00,000

Adjustment:
(a) A machine costing 3, 00,000 with an accumulated depreciation of 45,000 was
sold at for 1, 35,000. (5)

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