CAUVERY COMPOSITE PU COLLEGE

SAHAKARNAGAR BANGALORE
PREPARATORY EXAMINATION
II PUC
ACCOUNTANCY-30
Time-3Hrs 15 Min

Max Marks-100
SECTION-A

I.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Answer any seven questions, each carrying two marks.

What is annuity method?
What is Partnership Deed?
What is Goodwill?
Write any two reasons for retirement of a partner.
How do you treat Provision for Bad debts in Realisation A/c?
What do you mean by forfeiture of shares?
Write the formula for calculating Proprietary Ratio.
What is Revenue Expenditure?
What are Legacies?
What is Data Processing?
SECTION-B

(7X2=14)

II.
11.

Answer any four questions, each carrying five marks.

(4X5=20)
Raj and Shivraj are partners who commenced business with capital of ` 80,000 and
` 60,000 respectively, agreeing to share profits and losses in the ratio 3:2. They
earned a profit of `18,600 before allowing,
a) Interest on capital at 5% p.a
b) Interest on drawings, Raj `1200 Shivraj ` 800
c) Salary of Shivraj ` 400 for first 8 months and ` 400 for the remaining 4 months
d) Drawings during the year were Raj ` 12,000 and Shivraj ` 8000.
Prepare Profit and Loss Appropriation A/c.

12.
13.

M, N and O are partners sharing profits and losses in the ratio 5:3:2. N retires and
M and O share the future profits in the ratio 5:3 respectively. Calculate Gain Ratio.
Akshay Arun and Darshan are partners sharing profits and losses in the ratio 2:1:1
as on 31-3-2014.
Balance Sheet as on 31-3-2014

Liabilities
Creditors
Bills Payable
Capitals
Akshay
Arun
Darshan
Total

Amount(`)
22,000
18,000
20,000
20,000
10,000
90.000

Assets
Machinery
Buildings
Stock
Debtors
Cash
Profit & Loss A/c
Total

Amount(`)
15,000
28,000
20,000
15,000
2,000
10,000
90.000

Arun died on July 31 2014.According to the partnership deed, his legal

representatives are entitled to:
a) Share of Goodwill valued on the basis of two years purchase of average of
profits of last three years which were ` 7,000 ` 8,000 and ` 12,000
respectively.
b) Share of Profit up to the date of death on the basis of previous year profit.
c) Interest on capital at 6% p.a
d) Prepare Aruns Capital A/c.
14.

Shakthi trading Company issued 1,000 10% debentures of ` 100 each at a premium
of ` 10 per debenture. The amount payable as follows:
` 30 on Application ` 50 on Allotment (Including Premium) ` 30 on First and
Final Call. All the debentures were subscribed and money received.
Pass necessary Journal entries.

15.

From the following information prepare Common Size Income Statement.

Particulars
a)Revenue from
Operations
b)Other Revenue
c)Cost of Materials
consumed
d)Employee benefit
Expenses
e)Financial Expenses
f)Other Expenses
g)Income Tax

2014

2015

60,000

86,000

300
18,000

400
20,000

9,000

10,000

3,000
6,000
35%

3,400
6,600
40%

16.

From the following information of Manjunath Charitable Trust prepare Receipts

and Payments A/c for the year ended 31/3/2014
Opening cash balance `5,000 Subscriptions `20,000 Newspapers `300 Donations
`2,000 Printing and Stationery `500 Rent Paid `4,000 Entrance Fees `2,000
Furniture Purchased `5,000 Electricity `200 Bonds Purchased `5,000.

17.

Explain the stages of data processing cycle.

SECTION-C
III.
18.

Answer any four questions, each carrying fourteen marks.

(4X14=56)
On 01-07-2009, a company purchased Machine X for ` 80,000. On 01-10-2010,
it purchased Machine Y for ` 40000. On 31-10-2010 Machine X was sold for
` 68,000. On 01-10-2011 Machine Z was purchased for ` 30,000.Depreciation was
charged at 10% p.an on Diminishing balance method. Show Machinery A/c and
Depreciation A/c till 31-03-2012.

19.

Anita and Namitha are partners sharing profits and losses in the ratio 3:1.
Balance Sheet as on 31-03-2014
Liabilities
Creditors
Bills Payable
Capitals
Anita
Namitha

Amount(`)
16,000
14,000
50,000
25,000

Assets
Amount(`)
Buildings
25,000
Stock
15,000
Patents
6.000
Machinery
35,000
Debtors
20,000
Less: Provision
600 19,400
Cash
4,600

TOTAL
1,05,000
TOTAL
1,05,000
On 01-04-2014, Kavitha is admitted into the partnership on the following terms:
a) She should bring `20,000 as Capital.
b) Goodwill is valued at ` 20,000 and should be written off in New Profit Sharing
Ratio which is 5:3:2
c) Depreciate Machinery and Stock at 20% and 10% respectively.
d) Provision for Doubtful debts is to be increased by ` 900 on Debtors.
e) Buildings should be appreciated by ` 5,000.
Prepare Revaluation A/c, Partners Capital A/c, Cash A/c and Balance Sheet.
20.

Manu Ganu and Tanu are partners sharing profits and losses in the ratio 2:2:1.Their
Balance Sheet as on 31-03-2014 was as follows.
Balance Sheet as on 31-03-2014
Liabilities
Creditors
Bills Payable
Reserve fund
Tanu Loan
Capitals
Manu
Ganu
Tanu

Amount(`)
30.000
20,000
10,000
8,000

TOTAL

1,58,000

40,000
30,000
20,000

Assets
Bank
Debtors
Stock
Furniture
Buildings
Machinery

Amount(`)
6,000
30,000
30,000
22,000
50,000
20,000

TOTAL

1,58,000

It was decided to dissolve the partnership firm and details available are:
a) Debtors realised 10% less and Stock realised 15% more. Buildings realised
`60,000.
b) Manu took over Furniture for `20,000.
c) Ganu took over Machinery for `15,000.
d) Creditors and Bills payable were paid at 5% discount.
e) Dissolution expenses `1,500
Prepare Realisation A/c, Partners Capital A/c, and Bank A/c.
21.

Srikanth, Girish and Manju are partners sharing profits and losses equally.
Balance Sheet as on 31-03-2014
Liabilities
Creditors
Bills Payable
Bank Overdraft
Reserve Fund
Capitals
Srikanth
Girish
Manju

Amount(`)
30,000
20,000
25,000
15,000

Assets
Amount(`)
Buildings
50,000
Stock
36,000
Investment
9.000
Machinery
32,000
Debtors
20,000
60,000
Cash
24,000
50,000
Bills Receivable
28,000
30,000
Furniture
25,000
Profit and Loss A/c
6,000
TOTAL
2,30,000
TOTAL
2,30,000
On 01-04-2014, Manju Retired and the following adjustments were made:
1. Goodwill is created at ` 18,000 and retained.
2. Increase Stock by ` 4,000.
3. Depreciate Machinery and Furniture by 10%.
4. Provision for Doubtful debts is to be maintained at 5% on Debtors.
Prepare Revaluation A/c, Partners Capital A/c, Cash A/c and Balance Sheet.
22.

Good luck Co.Ltd issued 8,000 shares of ` 100 each at a discount of 10% payable
as follows:
` 20 on Application ` 20 on Allotment ` 30 on First Call ` 20 on Final Call.
All shares were subscribed and money received except on 400 shares of first and
final call. These shares were forfeited and re-issued at ` 80 per share.
Pass necessary Journal entries.

23.

Convert the following Balance Sheet into Comparative Balance Sheet.

Liabilities
Equity Share Capital
Capital Reserve
General Reserve
Reserve Fund
Debentures
Creditors
Bills Payable

2014(`)
10,00,000
90,000
5,00,000
90,000
4,50,000
2,00,000
15,000

2015(`)
12,00,000
1,85,000
4,50,000
1,00,000
6,50,000
1,50,000
20,000

Assets
Debtors
Cash
Stock
Investment
Building
Land
Furniture

2014(`)
4,50,000
2,00,000
3,20,000
3,00,000
8,00,000
1,98,000
77,000

2015(`)
3,90,000
15,000
2,50,000
2,50,000
14,00,000
3,45,000
1,05,000

TOTAL
24.

23,45,000

27,55,000

TOTAL

23,45,000

27,55,000

The following is the Trading Profit and Loss A/c and balance Sheet of XYZ Ltd.
Trading and Profit and Loss A/c for the year ended31-03-2014

Particulars
To Opening Stock
To Purchases
To Direct Expenses
To Gross Profit c/d
To Salary
To Interest
To Net Profit

Amount
1,00,000
4,00,000
40,000
3,80,000
9,20,000
1,00,000
10,000
2,70,000
3,80,000

Particulars
By Sales
By Closing Stock

Amount
8,00,000
1,20,000

By Gross Profit b/d

9,20,000
3,80,000
3,80,000

Balance Sheet as on 31-03-2014

Liabilities

Amount(`
Assets
Amount(`)
)
Share Capital
4,00,000
Cash
40,000
Reserve Fund
2,00,000
Stock
1,20,000
Profit and Loss A/c
80,000
Debtors
2,00,000
10% Debentures
1,00,000
Computer
1,00,000
Creditors
2,50,000
Buildings
7,40,000
Bills Payable
70,000
Bank Overdraft
1,00,000
TOTAL
12,00,000
TOTAL
12,00,000
Calculate: 1) Current Ratio 2) Liquid Ratio 3) Debt Equity Ratio 4) Proprietary Ratio
5) Gross Profit ratio 6) Net Profit Ratio 7) Stock Turnover Ratio.
SECTION-D
IV.
25.
26.

27.

Answer any two questions, each carrying five marks.

(2X5=10)
Prepare Partners Capital A/c under fluctuating capital system with 5 imaginary
figures.
Classify the following into Capital or Revenue.
a) Subscriptions
b) Honorarium
c) Purchase of Sports Equipment
d) Repairs to Fixed Assets.
e) Endowment Fund.
Prepare the tree diagram of hierarchical database model.
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