Board Paper of Class 12-Commerce 2010 Accountancy (SET 1) - Solutions

Suresh, a partner in a firm has withdrawn the following amounts during the year ended 31. 12. 2008 for his personal use.
Rs. 9,000 on 01. 04. 2008
Rs. 6,000 on 30. 06. 2008
Rs. 5,000 on 01. 09. 2008
Rs. 7,000 on 30. 11. 2008

Calculate the interest on drawings at 8% per annum under product method.

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Anil, Bharath and Chandra are partners sharing profits and losses in the ratio of 5 : 4 : 3. Anil retires. Bharath gets $\frac{1}{4}$th and Chandra gets $\frac{1}{6}$ th of Anil’s share. Calculate the new profit and loss sharing ratio of Bharath and Chandra. VIEW SOLUTION

Pavan, Rakesh and Sohan are partners sharing profits and losses in the ratio of 3 : 2 : 1. Their capital balances on 01. 01. 2008 stood at Rs. 45,000, Rs. 30,000 and Rs. 20,000 respectively.
 
Rakesh died on 30. 09. 2008. Partnership deed provides the following:

(a) Interest on capital at 10% per annum.

(b) Salary to Rakesh Rs. 800 per month.

(c) His share of goodwill.

(d) His share of profit upto the date of death on the basis of previous year’s profit.

(i)  Goodwill of the firm Rs. 27,000

(ii) Profits for the year 2007 Rs. 15,000

Prepare Rakesh’s Capital Account.

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Varun Company Limited forfeited 500 shares of Rs. 100 each for non-payment of the final call money Rs. 25 per share. Later these shares were reissued at Rs. 90 per share.

Give necessary Journal Entries.

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Mention any six advantages of computerised accounting. VIEW SOLUTION

Arun kept his books of account under single entry system. He gave the following information:

Particulars	01. 01. 2008 (Rs)	31. 12. 2008 (Rs)
Cash	8,500	9,600
Cash at Bank	14,000	16,400
Stock	25,000	31,000
Debtors	16,000	20,000
Creditors	10,400	7,500
Bills payable	3,100	—
Investments	—	6,500
Furniture	15,000	15,000
Buildings	60,000	60,000

During the year, he withdrew Rs. 9,000 for personal use. On 01. 05. 2008, he has introduced Rs. 15,000 as additional capital.
 
Adjustments:

(a) Depreciate furniture by 20%

(b) Appreciate buildings by 15%

(c) Allow interest on capital at 6% per annum

(d) Create reserve for doubtful debts at 5% on debtors

(e) Outstanding salary Rs. 4,500

(f) Rent receivable Rs 1,100

 
Prepare:

(i) Statement of affairs

(ii) Statement of profit or loss

(iii) Revised statement of affairs.

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Ratan and Suraj are partners sharing profits and losses in the ratio of 3 : 2. Their Balance sheet as on 31. 12. 2008 was as follows:

Balance Sheet as on 31. 12. 2008
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Creditors		13,500	Cash	6,500
Bills Payable		7,500	Stock	21,000
General Reserve		15,000	Debtors	18,000
Capitals:			Bills Receivable	5,500
Ratan	Rs. 60,000		Furniture	10,000
Suraj	Rs. 30,000	90,000	Machinery	24,000
			Buildings	40,000
			Profit and Loss A/c.	1,000
		1,26,000		1,26,000

They admit Vinod to partnership for $\frac{1}{6}$th share on 01. 01. 2009 based on the following terms:

(a) He should bring in Rs. 20,000 as capital

(b) Buildings to be revalued at Rs. 50,000

(c) Furniture and Machinery to be depreciated at10% and 5% respectively

(d) Reserve for doubtful debts to be provided at 10% on Debtors

(e) Goodwill account to be raised and maintained to the extent of Rs. 25,000.
 

Prepare:

(i) Revaluation Account

(ii) Capital Accounts of Partners

(iii) Balance Sheet as on 01. 01. 2009

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Mohan, Nagaraju and Prakash are partners sharing profits and losses in the ratio of 4 : 3 : 2. Their Balance sheet as on 31. 12. 2008 was as follows:
 

Balance Sheet as on 31. 12. 2008
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Creditors		25,000	Cash	9,000
Bills Payable		17,000	Debtors	27,000
Prakash’s Loan A/c.		10,000	Stock	15,000
Reserve Fund		18,000	Investments	5,000
Capitals:			Furniture	14,000
Mohan	Rs. 30,000		Goodwill	20,000
Nagaraju	Rs. 20,000		Buildings	40,000
Prakash	Rs. 10,000	60,000
		1,30,000		1,30,000

On the above date the firm was dissolved. The assets realised as follows:

(a) Debtors realised 10% less than the book value and investments realised 20% more than the book value. Buildings realised Rs. 60,000, stock realised Rs. 12,000 and furniture sold for Rs. 15,000.

(b) Goodwill taken by Mohan at Rs. 15,000

(c) Creditors and Bills payable settled at discount of 5%

(d) Realisation expenses Rs. 2,000.

Prepare:

(i) Realisation Account

(ii) Capital Accounts of Partners

(iii) Cash Account

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On 01. 01. 2005 a firm purchased a lease costing Rs. 50,000 for a term of 4 years. It is proposed to depreciate the lease by Annuity method charging 5% interest. With reference to Annuity tables to write off Re. 1 at 5% over a period of 4 years the amount to be charged is 0.282012.
 
Show Lease account and Interest account for all four years. VIEW SOLUTION

Following are the Balance sheet and Receipts and Payments A/c. of Diamond Sports Club, Davanagere.

Balance Sheet as on 31. 12. 07
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Outstanding Salary	3,500	Cash	10,500
Pre-received Subscriptions	2,000	Sports Materials	25,000
Capital Fund	92,000	Furniture	12,000
		Land and Building	50,000
	97,500		97,500

 

Receipts and Payments A/c for the year ended 31. 12. 08.
Receipts	Amount (Rs)	Payments	Amount (Rs)
To Balance b/d	10,500	By Salary	23,000
To Subscriptions	42,000	By Sports Materials (01. 07. 2008)	14,000
To Entrance Fees	5,000	By Investments	10,000
To Sale of old newspapers	1,500	By Postage	1,200
To Sports Fees	7,200	By Electricity Charges	2,300
		By Up-keep of Grounds	4,500
		By Balance c/d	11,200
	66,200		66,200

Adjustments:

(a) Outstanding subscription for 2008 Rs. 1,000

(b) Outstanding salary as on 31. 12. 2008 Rs. 4,500

(c) Half of the Entrance fees to be capitalised

(d) Depreciate sports materials at 20% per annum and furniture at 5%.

 Prepare:

(i) Income and Expenditure Account

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Following is the Trial Balance of Vishwas Trading Company Ltd. as on 31. 12. 2008:
 

Trial Balance as on 31. 12. 2008
Particulars	Debit Amount (Rs)	Credit Amount (Rs)
Called up Share Capital	—	1,00,000
Calls in Arrear	3,000	—
Stock (01. 01. 2008 )	14,000	—
Purchases and Sales	55,000	1,40,000
Returns	5,000	3,000
Freight	3,400	—
Wages	11,600	—
Salaries	13,000	—
Director’s Fees	3,200	—
Postage	1,300	—
Printing Charges	2,500	—
General Expenses	4,500	—
Interest on Investments	—	3,300
Interim Dividend	5,000	—
Investments	15,000	—
Goodwill	40,000	—
Buildings	85,000	—
Machinery	30,000	—
Furniture	16,000	—
Bills receivable and Bills payable	12,000	17,000
Debtors and Creditors	24,000	15,200
Debentures	—	50,000
Reserve Fund	—	20,000
Profit and Loss Appropriation A/c.	—	12,000
Cash at Bank	17,000	—
	3,60,500	3,60,500

Adjustments:

(a) Closing stock valued at Rs. 15,000

(b) Outstanding salary Rs. 2,000

(c) Depreciate machinery at 10% and Furniture at 5%

(d) Make a provision for tax Rs. 12,000

(e) Transfer Rs. 15,000 to Reserve fund

(f) Proposed dividend Rs. 7,500.

 Prepare Final Accounts.

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Prepare an Executor’s Loan Account showing the repayment in two annual equal   instalments along with interest with imaginary figures. VIEW SOLUTION

Prepare a Machinery Account for two years with imaginary figures under diminishing method of depreciation. VIEW SOLUTION

Classify the following items into Capital and Revenue:

(a) Sale of furniture

(b) Annual whitewashing and painting expenses to buildings

(c) Sale of old newspapers

(d) Donations for construction of buildings

(e) Annual maintenance grant received from government

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