Jaju’s Professional Academy

XII Accounts
Marks: 80 Prelim-3 Time: 2 Hrs.

Q. 1. (A) Calculate the following : [M–5]

1. Undervaluation of Closing stock by 20% and Closing stock was Rs. 50,000.
Find out the value of Closing stock.

2. Calculate net subscription value for the following data.

Current year’s subscription Rs. 5,00,000.
Outstanding subscription of current year Rs. 50,000.
Subscription of current year received in advance in previous year Rs. 30,000.

3. Find out normal profit if capital employed is Rs. 10,00,000 and normal rate of return is
12%.

4. A, B and C are in partnership firm. They dissolved their firm. Realisation profit of the firm
is Rs. 24,000. Partners share profit and loss in the ratio of 3 : 2 : 1. Calculate the amount
of realisation profit to be credited to Partners’ Capital A/c.

5. 1,00,000 equity shares of Rs. 10 each issued and fully subscribed and called-up at 20%
premium. Calculate amount of equity share capital.

(B) Give Specimen of Bill of Exchange : [M– 5]

Drawer : Parshwa, Ahmedabad, Gujarat.
Drawee : Brahma, Mulund (West), Mumbai
Amount : Rs. 30,000.
Period : 3 months.
Date of Bill : 6th September, 2019
Date of Acceptance : 9th September, 2019

(C) State, True or False with reasons : [M– 5]

1. Prepaid expenses are treated as liabilities.
2. There is no difference between Receipts and Payments Account and Income and
Expenditure Account.

(D) Answer in one sentence only : [M– 5]

1. Why is new partner admitted?
2. How gain ratio is calculated?
3. When is gain ratio required to be calculated?
4. State the formula of cost of goods sold.
5. Write the full form of GAAP.
 Q. 2. The Balance Sheet of Punya and Prapti who share profits in the ratio of 3 : 2 as on 31 st
March, 2020 is as follows :
[M–10]
st
Balance Sheet as on 31 March, 2020
Liabilities Amount Amount Assets Amount Amount
(Rs.) (Rs.) (Rs.) (Rs.)
Creditors 30,000 Furniture 30,000
Capitals : Building 36,000
Punya 40,000 Debtors 20,000
Prapti 50,000 90,000 Closing Stock 24,000
Cash in Hand 10,000

1,20,000 1,20,000

Karma admitted on 1st April, 2020 on the following terms :

(1) Karma was to pay Rs. 50,000 for his share of capital.
(2) He was also to pay Rs. 20,000 as his share of goodwill.
(3) The new profit sharing ratio was 3 : 2 : 3.
(4) Old partners decided to revalue the assets as follows :
Building Rs. 50,000, Furniture Rs. 24,000, Debtors Rs. 19,000 (in view of likely bad debts)
(5) It was found that there was a liability for Rs. 1,500 for goods in March, 2020 but recorded
on 2nd April, 2020.
You are required to prepare :
(a) Profit and Loss Adjustment Account.
(b) Capital accounts of the partners.
(c) Balance Sheet after the admission of Karma.

OR

Q. 2.. Raja, Badshah and Kind are partners in a firm sharing profits and losses in the
proportion 3 : 1 : 1 respectively. Their balance sheet as on 31st March, 2020 is as
shown below :
[M-10]
st
Balance Sheet as on 31 March, 2020
Liabilities Amount (Rs.) Assets Amount (Rs.)
Creditors 20,000 Bank 6,250
General Reserve 25,000 Debtors 30,000
Bills Payable 12,500 Livestock 25,000
Capital Accounts : Building 37,500
Raja 62,500 Plant and Machinery 17,500
Badshah 50,000 Motor Truck 50,000
King 25,000 Goodwill 28,750
1,95,000 1,95,000

On 1st April, 2020, King retired and the following adjustments have been agreed upon :
 (1) Goodwill was revalued on Rs. 25,000.
(2) Assets and Liabilities were revalued as follows :
Debtors Rs. 25,000, Livestock Rs. 22,500 Building Rs. 62,500, Plant and Machinery Rs.
15,000, Motor truck Rs. 47,500 and Creditors Rs. 15,000.
(3) Raja and Badshah contributed additional capital through Net Banking of Rs. 25,000 and Rs.
12,500 respectively.
(4) Balance of King’s Capital Account is transferred to his Loan Account.
Give Journal Entries in the books of new firm.

Q. 3. X, Y and Z are partners sharing profits and losses in the ratio of 4 : 2 : 3. On 1 st April, 2019
they agreed to dissolve the partnership, their Balance Sheet was as follows :
[M-10]
st
Balance Sheet as on 31 March, 2019
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Capital : Building 1,10,000
X 1,30,000 Machinery 50,000
Y 90,000 Furniture 24,000
Z 14,000 Investment 30,000
Reserve Fund 36,000 Bills Receivable 7,000
Profit and Loss Account 10,800 Sundry Debtors 42,000
Loan from Tukaram 20,000 Stock 56,000
Sundry Creditors 24,000 Cash in Hand 11,000
Bills Payable 9,200 Cash at Bank 4,000

3,34,000 3,34,000

The assets realized : Building Rs. 93,500; Machinery Rs. 37,100; Furniture Rs. 19,200; Investment
Rs. 21,300; Bill Receivable and Debtors Rs. 41,500. All the liabilities were paid off. The cost of
realisation was Rs. 1,600. Z became bankrupt and Rs. 2200 only was recovered from his estate.
Show Realisation Account, Bank Account and Capital Account of the partners.

OR

Q. 3. Sunil accepted a bill for Rs. 18,000 drawn by Jignesh at 3 months. Jignesh discounted the
bill for Rs. 17,400. Before the due date, Sunil approached Jignesh for renewal of the bill.
Jignesh agreed on the condition that Sunil should pay Rs. 6,000 immediately and for the
balance he should accept a new bill for 4 months along with interest Rs. 550. The
arrangements were carried through. But on the due date of new bill, Sunil became
insolvent and only 35 paise in a rupee could be recovered from his estate.
Give Journal Entries in the books of Sunil and prepare Jignesh’s Account in the
books of Sunil.
[M-10]
Q. 4. Sanjay Co. Limited issued Rs. 10,00,000 new capital divided into Rs. 100 equity shares at
a premium of Rs. 20 per share payable as : Rs. 10 on Application, Rs. 40 on Allotment and
Rs. 10 premium, Rs. 50 on Final call and Rs. 10 premium.
The issue was oversubscribed to the extent of 13,000 equity shares. The applicants on
1,000 shares were sent letter of regret and their application money was refunded.
Remaining applicants were allotted shares on Pro-rate basis. All the money due on
Allotment and Final call was only received.
Make necessary Journal Entries in the books of Sanjay Co. Ltd.
[M–8]

OR

Q. 4. Write the features of Computerised Accounting System.

[M-8]

Q. 5. The Balance Sheet of Jay, Ajay and Vijay who were sharing profits and losses in the ratio
of 3 : 2 : 1 is as follows :
[M-8]
st
Balance Sheet as on 31 March, 2019
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Bank Overdraft 9,000 Bank 24,000
Creditors 42,500 Debtors 15,000
Bills Payable 20,000 Land and Building 20,000
Bank Loan 75,000 Machinery 40,000
General Reserve 13,500 Investments 20,000
Capital Accounts : Computers 20,000
Jay 10,000 Stock 45,000
Ajay 10,000 Patents 6,000
Vijay 10,000
1,90,000 1,90,000

Ajay died on 1st October, 2019 and the following adjustments were made :
(1) Goodwill of the firm is valued at Rs. 15,000.
(2) Land and Building and Machinery were found to be undervalued by 20%.
(3) Investments are valued at Rs. 30,000.
(4) Stock to be undervalued by Rs. 2,500 and a provision of 10% as debtors was required.
(5) Patents were value less.
(6) Ajay was entitled to share in profits up to the date of death and it was decided that he may
be allowed to retain his drawings as his share of profit. Ajay’s drawings till date of death
was Rs. 12,500.
Prepare Partners’ Capital Accounts.
OR
Q. 5. (A) A company has following Current Assets and Current Liabilities : [M- 8]
Debtors Rs. 60,000 Creditors Rs. 30,000
Bills Payable Rs. 20,000 Stock Rs. 30,000
Loose Tools Rs. 10,000 Bank Overdraft Rs. 10,000
Calculate Current Ratio.
(B) Calculate Quick Ratio :
Current liabilities Rs. 1,50,000
Working capital Rs. 4,00,000
Inventory Rs. 1,00,000
(C) Calculate Gross Profit Ratio :
Sales Rs. 1,35,000
Net purchases Rs. 75,000
Sales return Rs. 10,000
Closing stock Rs. 12,500
Opening stock Rs. 22,500
(D) Calculate Operating Ratio :
Cost of goods sold Rs. 1,75,000
Operating expenses Rs. 15,000
Sales Rs. 2,50,000
Sales return Rs. 15,000

Q. 6. From the following Balance Sheet and Receipts and Payment Account of Tapovan school
prepare Income and Expenditure Account for the year ending 31-03-2020 and a Balance
Sheet as on that date.
[M-12]
Balance Sheet as on 01-04-2019
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Capital Fund 3,21,500 Cash in Hand 3,000
Cash at Bank 5,000
Building 2,25,000
Furniture 36,000
Library Books 22,500
Computer Laboratory 30,000
3,21,500 3,21,500

Dr. Receipts and Payments Account for the year ending 31 – 03 – 2020 Cr.
Receipts Amount Amount Payments Amount Amount
(Rs.) (Rs.) (Rs.) (Rs.)
To Balance b/d By Salary 45,000
Cash in Hand 3,000 By Library Books 7,000
Cash at Bank 5,000 8,000 By Office Rent 5,000
To Tuition Fees 45,000By Printing and 11,000
To Term Fees 1,500Stationery
To Admission Fees 6,000By Sundry Expenses 6,000
To Donation 30,500By Insurance 5,100
(Capital) By Sports Expenses 4,000
To Interest Received 1,000 By Annual Gathering 4,500
To Government 60,000 Exp.
Grant (Revenue) By Furniture 25,000
To Sundry Receipts. 5,500 By Repairs 7,500
By Balance c/d
Cash in Hand 2,400
Cash at Bank 35,000 37,400
1,57,500 1,57,500
Additional Information :
(1) Outstanding salary of Rs. 4,500.
(2) Outstanding tuition fees Rs. 7,500.
(3) Depreciate library books by Rs. 4,500 and Furniture by Rs. 5,000.

Q. 7. From the following Trial Balance and Adjustments given below of Ram and Shyam, you
are required to prepare Trading Account and Profit and Loss Account for the year ended
31st March, 2019 and Balance Sheet as on that date.
[M-12]
st
Trial Balance as on 31 March, 2020.
Debit Balance Amount (Rs.) Credit Balances Amount (Rs.)
Purchases 71,000 Sales 1,16,400
Sundry Debtors 80,000 Sundry Creditors 51,400
Sales Returns 2,000 Purchase Returns 1,000
Opening Stock 36,200 R. D. D. 1,600
Bad Debts 1,000 Discount 100
Land & Building 50,000 Commission 500
Furniture 40,000 Capital :
Discount 2,000 Ram 1,00,000
Royalties 1,400 Shyam 60,000
Rent 3,800
Salaries 6,000
Wages 1,600
Insurance 3,000
Drawings :
Ram 4,000
Shyam 2,000
Cash at Bank 23,000
Cash in Hand 4,000
3,31,000 3,31,000
Adjustments :
(1) Closing stock valued at Rs. 44,000.
(2) Write off Rs. 1,800 for bad and doubtful debts and create a provision for reserve for
doubtful debts Rs. 2,000.
(3) Create a provision for discount on debtors @ 3% and on creditors @ 5%.
(4) Outstanding expenses : Wages Rs. 1,400 and Salaries Rs. 1,600.
(5) Insurance is paid for 15 months, w.e.f. 1st April, 2018.
(6) Depreciate land and Building @ 5%.
(7) Ram and Shyam are sharing Profits & Losses in their Capital Ratio.