Book Keeping & Accountancy March 2016 Board Paper
Book Keeping & Accountancy
March 2016 Board Paper
Q. 1. A. Answer the following questions in one sentence each. [5]
(1) What is bad debts?
Ans. An amount irrecoverable from debtors is known as bad debts.
(2) What is surplus?
Ans. Excess of income over expenditure in case of not for profit concern is known as surplus.
(3) What are Noting Charges?
Ans. Fee charged by Notary public for noting the dishonoured inland bill are known as noting charges.
(4) What is Gain Ratio?
Ans. The proportion in which continuing partners are benefitted, due to retirement or death of a partner is termed as gain ratio.
(5) What do you mean by Analysis of Financial Statement?
Ans. Critical evaluation of financial statement to measure the profitability, solvency and growth of the organisation is known as Analysis of Financial Statement.
(B) Write a word / term / phrase which can substitute each of the following statements: (5)
(1) Expenses which are paid before due.
Ans. Prepaid expenses
(2) Excess of expenditure over income of 'not for profit' concerns.
Ans. Deficit
(3) Payment of the bill before due date.
Ans. Retirement of bill
(4) An account opened to find out the profit or loss on sale of assets and settlement of liabilities.
Ans. Realisation account.
(5) A statement similar to balance sheet.
Ans. Statement of Affairs.
(C) Select the most appropriate alternative from those given below and rewrite the statements. (5)
(1) If shares are issued at its face value, it is called as issue at _____________.
(2) A person who accepts the bill is called __________
(3) The capital in the beginning of the accounting year is ascertained by preparing ______________
(4) If any asset is taken over by partner from firm his capital A/c will be ____________
(5) The proportion in which old partners make a sacrifice is called ___________ ratio.
(D) State whether the following statements are True or False. (5)
(1) The interest on capital is an income of the firm.(False)
(2) The inland bill which is drawn in and payable in the same country.(True)
(3) The debenture holder is owner of the company.(False)
(4) Purchase of fixed asset is operating cash flow.(False)
(5) Noting charges are payable to the Notary public, in case of honour of a bill.(False)
(E) Prepare a specimen of Bill of Exchange from the following information: (5)
(1) Drawee : M.P. Shinde, Siddharth Nagar, Panchgani.
(2) Drawer: M.M. Shaikh, Satara Road, Sangli.
(3) Period of bill : 90 days.
(4) Amount of bill : Rs. 12,800/-
(5) Date of bill : 10th March, 2013.
(6) Date of Acceptance: 14th March, 2013.
Answer:
Q. 2. Mrs. Meena of Bilaspur has not kept proper books of accounts, following information is provided to you. (8)
| Particulars | 31.3.2012 Amount (Rs.) |
31.3.2013 Amount (Rs.) |
|---|---|---|
| Machinery | 50000 | 50000 |
| Furniture | 50000 | 30000 |
| Debtors | 18000 | 25000 |
| Creditors | 18000 | 20000 |
| Stock | 30000 | 42000 |
| Outstanding Expenses | 1500 | - |
| Prepaid Expenses | - | 500 |
| Cash at bank | 28000 | 40000 |
Further information:
(1) Mrs. Meena introduced additional capital as on 1st October, 2012 by selling her personal car is Rs. 10,000.
(2) She paid her daughter's college fees from business bank account Rs. 3,000.
(3) Depreciate machinery by 5% p.a.
(4) Provide 2% on debtors for Bad and Doubtful debts.
(5) Interest on capital is to be provided @ 5% p.a. and on drawings @ 5% p.a.
Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.
Solution: [Click Here for Answer]
OR
(A) What are the components of 'Current Ratio'?
(B) What are the different cash inflows and cash outflows of investing activities?
Q. 3. Rani and Geeta are partners sharing profits and losses 3:2 respectively. Their position on 31st March, 2013 was as follows: [10]
Balance sheet as on 31st March, 2013.
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | Amount (Rs.) |
|---|---|---|---|---|
| Capital Accounts | Building | 100000 | ||
| Rani | 100000 | Furniture | 10000 | |
| Geeta | 75000 | Stock | 31000 | |
| Creditors | 10000 | Debtors | 50000 | |
| Bills Payable | 5000 | Less: R.D.D. | -1000 | 49000 |
| General Reserve | 15000 | Bank Balance | 15000 | |
| 205000 | 205000 |
On 1st April, 2013 they admitted suvarna on the following terms:
(1) Suvarna should bring in cash Rs. 1,00,000 as capital for 1/5 th share in future profit and Rs. 25,000 as goodwill.
(2) Building should be revalued at Rs. 1,25,000.
(3) Depreciate furniture @ 12.5 % and stock @ 10% p.a.
(4) R.D.D. should be maintained as it is.
(5) The Capital Accounts of partners should be adjusted in their new profit sharing ratio through bank account.
Prepare: Profit and loss adjustment account, capital account and balance sheet of the new firm.
Solution: [Click Here for Answer]
OR
Q3. The balance sheet of 'Anand Traders, Wardha' is as follows.
Partners share profits and losses as 5/10 , 2/10, 3/10.
Balance Sheet as on 31st March, 2013.
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | Amount (Rs.) |
|---|---|---|---|---|
| Capital Accounts | Plant and machinery | 32,000 | ||
| Sunil | 36,000 | Factory Building | 40,000 | |
| Pankaj | 32,000 | Stock | 20,400 | |
| Paresh | 17,600 | Debtors | 16,800 | |
| Creditors | 21,200 | Less: R.D.D. | -800 | 16,000 |
| General Reserve | 14,000 | Cash | 12,400 | |
| 1,20,800 | 1,20,800 |
Pankaj retired from the business on 1st April, 2013 on the following terms:
(1) The assets were revalued as under .....
(i) Stock at Rs. 28,000.
(ii) Factory building is appreciated by 10%.
(iii) Reserve for doubtful debts is to be increased up to Rs. 1,000.
(iv) Plant and machinery is to be depreciated by 10%
(2) The goodwill of the retiring partner is to be valued at Rs. 8,000 and the remaining partners decided that goodwill be written back in their new profit sharing ratio which will be 5:3.
(3) Amount due to Pankaj is to be transferred to his loan account.
Prepare : (a) Profit and Loss adjustment account
(b) Capital account of partners.
(c) Balance sheet of new firm.
Answer: [Click Here for Answers]
Q4. Raja of Nagpur draws a bill on Pradhan of Bhandara for Rs. 6,000 at 3 months. Pradhan accepted and returned it to Raja. Raja then sent the bill to bank for collection.
On due date, Pradhan finds himself unable to make payment of the bill and requests Raja to renew it. Raja accepted a proposal on the condition that, Pradhan should pay Rs. 1,000 on account along with interest Rs. 250 in cash and should accept new bill for the balance at 2 months. These arrangements were carried through. Afterwards, one month before due date of new bill Pradhan retired his acceptance by paying Rs. 4,850.
Give Journal entries in the books of Raja of Nagpur. [10]
Answer: [Click Here for Answers]
Q5. A, B, and C were partners sharing profits and losses in the proportion of 2:2:1. Following is their balance sheet as on 31st March, 2013. [10]
Balance sheet as on 31st March, 2013
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | Amount (Rs.) |
|---|---|---|---|---|
| Capital Account | Machinery | 25000 | ||
| A | 30000 | Stock | 10000 | |
| B | 10000 | Debtors | 27500 | |
| C | 10000 | Less: R.D.D. | -1500 | 26000 |
| General Reserve | 3000 | Investment | 12000 | |
| Creditors | 20000 | Profit and Loss A/c | 9000 | |
| A’s Loan Account | 4000 | Bank | 2000 | |
| Bills Payable | 7000 | |||
| 84000 | 84000 |
On the above date, the partners decided to dissolve the firm.
(1) Assets were realised as - Machinery Rs. 22,500, Stock Rs. 9,000, Investment Rs. 10,500, Debtors Rs. 22,500
(2) Dissolution expenses were Rs. 1,500.
(3) Goodwill of the firm realised Rs. 12,000
Pass the necessary journal entries in the books of the firm.
Answers: [Click Here for Answers]
OR
Q5. Kisan Co. Ltd. Miraj, issued Rs. 50,000 shares at par Rs. 10 each, payable Rs. 3 on application, Rs. 4 on allotment and the balance on the final call. All the shares were fully subscribed and paid except a shareholder Mr. D. Kapse having Rs. 1,000 shares could not pay the final call. Mr. D. K. Kapse paid the call - in - arrears amount together with interest after four months of due date of final call. Company charged interest on the arrears received as per table ‘A’.
Pass journal entries to record these transactions assuming that call - in - arrears and interest money received from Mr. D. Kapse in the books of Kisan Co Ltd. Miraj.
Q. 6. Marathi Vishwa Kosha Centre, Wai, has given you the following information from which, you are required to prepare. (i) Income and Expenditure Account for the year ending on 31.03.2013, (ii) Balance Sheet as on 31.03.2013.
Receipts and Payment Account for the year ending 31.03.2013
| Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
|---|---|---|---|
| To Balance b/d | By Stationery | 5000 | |
| Cash in hand | 13000 | By Furniture [Purchased on 01.01.2013] | 50000 |
| To Locker Rent | 5000 | By Investments | 1,00,000 |
| To Entrance Fees | 19000 | By Expenses of Drama | 33500 |
| To Sale of old newspapers | 1500 | By Postage and telegram | 2,500 |
| To Receipts from Drama | 78,500 | By Magazines and Newspapers | 4000 |
| To Legacies | 1,10,000 | By Salaries | 22,000 |
| To Miscellaneous Receipts | 8000 | By Balance c/d | |
| Cash in Hand | 3000 | ||
| Cash at bank | 1,10,000 | ||
| 3,30,000 | 3,30,000 |
Additional Information:
(1) Capital fund on 01.04.2012, was Rs. 1,08,000.
(2) Legacies are to be capitalized.
(3) Outstanding salary Rs. 3,000.
(4) 50% of entrance fees is to be capitalized.
(5) Depreciation on Furniture @ 10% p.a.
Solution: [Click Here For Answers]
Q7. From the following Trial Balance and adjustments of M/s Apeksha and Pratiksha; you are required to prepare Trading and Profit and Loss account for the year ended 31st March 2013 and Balance sheet as on that date:
Trial Balance as on 31.03.2013
| Particulars | Debit Amount (Rs.) | Credit Amount (Rs.) |
|---|---|---|
| Capital Accounts | ||
| Apeksha | 60000 | |
| Pratiksha | 35000 | |
| Purchases and Sales | 46700 | 85000 |
| Sundry Debtors and Creditors | 28000 | 25000 |
| Bills Receivable and Bills Payable. | 9600 | 7800 |
| Opening Stock | 18000 | |
| Wages | 9900 | |
| Investment | 13500 | |
| Postage and Telegrams | 3600 | |
| Insurance | 1200 | |
| Plant and machinery | 40700 | |
| Furniture | 18000 | |
| Cash in hand | 2500 | |
| Carriage | 3200 | |
| Bad debts | 400 | |
| Prepaid rent | 7000 | |
| Salaries | 10500 | |
| 212800 | 212800 |
Adjustments:
(1) The closing stock is valued at Rs. 31,000
(2) Outstanding wages Rs. 1,400.
(3) Depreciate furniture at 10% p.a.
(4) Insurance Rs. 500 is paid in advance.
(5) Provide for further bad debts of Rs. 1,500.
(6) Goods worth Rs. 2,000 withdrawn by Apeksha for her domestic use but not recorded in the books of account.
Answer: [Click Here for Answers]
Book-keeping and Accountancy 12th Standard
HSC Maharashtra State Board. Latest Syllabus.
- Chapter 1: Introduction to Partnership and Partnership Final Accounts
- Chapter 2: Accounts of ‘Not for Profit’ Concerns
- Chapter 3: Reconstitution of Partnership (Admission of Partner)
- Chapter 4: Reconstitution of Partnership (Retirement of Partner)
- Chapter 5: Reconstitution of Partnership (Death of Partner)
- Chapter 6: Dissolution of Partnership Firm
- Chapter 7: Bills of Exchange
- Chapter 8: Company Accounts - Issue of Shares
- Chapter 9: Analysis of Financial Statements
- Chapter 10: Computer In Accounting
ACCOUNTS BOARD PAPERS
- HSC Accounts March 2020 Board Paper With Solution
- MARCH 2014 : View | PDF Download
- OCTOBER 2014 View | PDF Download
- MARCH 2015 View | PDF Download
- JULY 2015 View | PDF Download
- MARCH 2016 View | PDF Download
- JULY 2016 View | PDF Download
- JULY 2017 View | PDF Download
- MARCH 2017 View | PDF Download
- MARCH 2018 View | PDF Download
- JULY 2018 View | PDF Download
- MARCH 2019 View | PDF Download
- MARCH 2020 View | PDF Download
Difficult Words & Meanings
- Book Keeping:The activity of recording business transactions (money coming in and going out).
- Accountancy:The profession or work of an accountant, which includes preparing and checking financial records.
- Bad Debts:Money owed to a business that is not expected to be paid back.
- Surplus:When income is more than expenses, especially for non-profit organizations; similar to profit.
- Noting Charges:Fees paid to a legal official (Notary Public) when a bill of exchange is not paid on time (dishonoured).
- Gain Ratio:The proportion in which existing partners benefit when another partner leaves or dies.
- Financial Statement:Formal records of a business's financial activities, like a Balance Sheet or Profit & Loss Account.
- Prepaid Expenses:Costs paid in advance for goods or services to be received in the future.
- Deficit:When expenses are more than income, especially for non-profit organizations; similar to a loss.
- Retirement of bill:Paying a bill of exchange before its due date.
- Realisation account:An account made when a business is closing down, to calculate profit or loss from selling assets and paying liabilities.
- Statement of Affairs:A summary of a business's assets and liabilities, similar to a Balance Sheet, often used when full accounting records are not kept.
- Shares (at par):Company shares sold at their original face value.
- Drawer (of a bill):The person or entity who writes/creates a bill of exchange, asking someone else to pay.
- Acceptor (of a bill):The person or entity who agrees to pay the amount on a bill of exchange.
- Debited / Credited:Terms for recording entries in accounts; debit often means an increase in assets/expenses or decrease in liability/income, credit is the opposite.
- Sacrifice Ratio:The proportion in which existing partners give up their share of profits when a new partner joins.
- Debenture:A type of long-term loan taken by a company, where the debenture holder is a creditor, not an owner.
- Cash flow:The movement of money into or out of a business.
- Drawee:The party directed by a drawer to pay a certain sum of money (usually the acceptor of a bill).
- Depreciation:The decrease in value of an asset over time due to use, wear and tear, or obsolescence.
- R.D.D. (Reserve for Doubtful Debts):Money set aside for potential bad debts that might not be collected from customers.
- Liabilities:What a business owes to others (e.g., loans, creditors).
- Assets:What a business owns (e.g., cash, buildings, machinery).
- Goodwill:The good reputation and customer base of a business, considered an intangible asset.
- Dissolution:The act of formally closing down a business or partnership.
- Call-in-arrears:The amount of money on shares that a shareholder has not yet paid when requested by the company.
- Legacies:Money or property left to an organization (like a non-profit) in someone's will.
- Capitalized (expenses/income):Treating an expense as an asset on the balance sheet rather than an expense in the income statement, or treating certain income as capital.
- Trial Balance:A list of all account balances in a ledger, used to check if total debits equal total credits.