Accounts March 2017 Board Paper HSC 12th Standard Solution.

HSC ACCOUNTS MARCH 2017 SOLUTION

1. A. (i) Statement of Profit or Loss is prepared under the Single Entry System to ascertain profit.

(ii) The debit balance of insolvent partner’s capital account which insolvent partner cannot pay is called capital deficiency.

(iii) Non - recurring expences are those capital expenses which are spent for acquisition of fixed asssets like purchase of land or furniture, in order to run the concern and it gives benefits for a lon period say more than 3 years.

(iv) Gain ratio is calculated at the time of retirement of a partner by deducting old ratio from new ratio.

(v) A bill of exchange is said to be retired if its acceptor makes payment of it before its due date, usually after deducting some discount or rebate.

Q1. B.

(i) Bad debts

(ii) Drawee

(iii) Gross Profit ratio / Turnover ratio.

(iv) Dissolution of Partnership firm.

(v) Notary Public.

Q. 1. C.

(i) Goodwill is an intangible asset.

(ii)  Debenture is an acknowledgement of debt under common seal of a company.

(iii) Whem closing capital is greated than opening capital it is denotes Profit.

(iv) Cash proceeds from the issue of debentures is a Financial activity.

(v) Payee is a person to whom the amount on a bill is payable.

Q. 1. D.

(i) True

(ii) False

(iii) True

(iv) False

(v) False.

Q. 1. F.

2. In the books of Mr. John.

Statement of Affairs.

Liabilities	1.4.12	31.3.13	Assets	1.4.12	31.3.13
Sundry Creditors	54500	60400	Machinery	70000	70000
Capital Fund (Balancing Figure)	178700	216400	Furniture	10000	20000
			Stock	36000	42000
			Sundry Dentors	72200	88400
			Cash in Hand	3000	4100
			Cash at Bank	42000	52300
	233200	276800		233200	276800

Statement of profit or Loss for the year ended 31st March, 2013

Particulars	Amount (Rs.)	Amount (Rs.)
Capital at the endo fothe accounting year. 2012 - 13		216400
Add: Drawings made duing the accounting year.		15000
		231400
Less: Additional Capital Introduced		20000
Adjusted Closing Capital		211400
Less: Capital at the begining of the accounting year		178700
		32700
Less: Depreciation
On Machinery (10% on Rs.70000 for 1 year)	7000
On Opening Furniture (20% p.a. On Rs. 10000 for 1 year)	2000
On Additional Furniture (20% on Rs. 10000 for 6 months)	1000	10000
Net profit Earnied during the year.		22700

3. In the books of Partnership Firm

Profit and Loss Adjustment Account

Particulars	Amount	Amount	Particulars	Amount	Amount
To Furniture A/c (Depreciation)		1500	By Stock A/c (Appreciation in Value)		2500
To partners’ Capital Account.(Profit)
Ram	500
Madan	500	1000
		2500			2500

Partners Capital Accounts

Particulars	Ram	Madan	Sohan	Particualrs	Ram	Madan	Sohan
To Goodwill A/c	10000	10000	10000	By Balance b/d	100000	100000
				By General Reserves A/c	20000	20000	-
				By Bank A/c (Capital Contribution)	-	-	100000
				By Goodwill A/c	15000	15000
				By Profit & Loss Adj. A/c (Profit)	500	500
To Balance C/d	125500	125500	90000
	135500	135500	100000		135500	135500	100000

Balance Sheet as on 1st April, 2012

Liabilities	Amount	Amount	Assets	Amount	Amount
Sundry Creditors		55300	Plant  & Machinery		90000
Partners’ Capital A/c			Furniture:	15000
Ram	125500		Less: Depreciation @10%	1500	13500
Madan	125500		Sundry Debtors		91000
Sohan	90000	341000	Stock	68000
			Add: Increase in value	2500	70500
			Cash in Hand		4200
			Cash at Bank		127100
		396300			396300

Goodwill A/c

Particulars	Amount	Amount	Particulars	Amount	Amount
To Ram’s Capital A/c		15000	By Ram’s Capital A/c		10000
To Madan’s Capital A/c		15000	By Madan’s Capital A/c		10000
			By Shohan’s Capital A/c		10000
		30000			30000

Bank A/c

Particulars	Amount	Amount	Particulars	Amount	Amount
To Balance b/d		27100
To Sohan’s Capital A/c		100000	By Balance C/d		127100
		127100			127100

OR

3. Journal of Partnership Firm

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs. )
31.3.13	Reserve Fund A/c ..... Dr.		50000
	To Sharmila’s Capital A/c			25000
	To Urmila’s Capital A/c			15000
	To Pramila’s Capital A/c			10000
	[Being reserve fund distributed and transfrred to all partners’ capital account in their old ratio)
31.3.13	Goodwill A/c ...... Dr.		12000
	To Pramila’s Capital A/c			12000
	[Being Goodwill raised and credited to Pramila’s Capital A/c ]
31.3.13	Sharmila’s Capital A/c .... Dr.		7500
	Urmila’s Capital A/c ..... Dr.		4500
	To Goodwill A/c			12000
	[Being Goodwill written off and debited to remaining partners’ capital A/c in their gain ratio]
31.3.13	Land and Building A/c .... Dr.		20000
	Stock A/c .... Dr.		2000
	To Profit and Loss Adjustment A/c			22000
	[Being appreciation in the value of Assets recorded]
31.3.13	Profit and Loss Adjustment A/c .... Dr.		2000
	To Furniture A/c			2000
	[Being the furniture depreciated in value]
31.3.13	Profit and Loss Adjustment A/c .... Dr.		20000
	To Sharmila’s Capital A/c			10000
	To Urmila’s Capital A/c			6000
	To Pramila’s Capital A/c			4000
	[Being profit on revaluation of assets and liabilities transfered to partners’ capital A/c ]
31.3.13	Pramila’s Capital A/c .......Dr.		126000
	To Pramila’s Loan A/c			126000
	[Being balance due to Pramila transferred to her Loan A/c ]

Working Note: Profit and Loss Adjustment Account & Partners Capital Accounts

Profit and Loss Adjustment Account

Particulars	Amount	Amount	Particulars	Amount	Amount
To Furniture A/c		2000	By Land and Buildings A/c		20000
To Partners’ Capital A/c			By Stock A/c		2000
Sharmila	10000
Urmila	6000
Pramila	4000	20000
		22000			22000

Partners Capital Accounts

Particulars	SHARMILA	URMILA	PRAMILA	Particualrs	SHARMILA	URMILA	PRAMILA
To Goodwill A/c	7500	4500		By Balance b/d	200000	150000	100000
To Pramila’s Loan A/c			126000	By Reserve Fund	25000	15000	10000
				By Goodwill A/c	-	-	12000
				By Profit & Loass Adjustment A/c	10000	6000	4000
To Balance c/d	227500	166500	-
	235000	171000	126000		235000	171000	126000

4. Journal of Raja

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs. )
1	Cash/Bank A/c ... Dr.		10000
	Pradhan’s A/c  .... Dr.		30000
	To Sales A/c			40000
	[Being the goods sold and part payment received]
2	Bills Receivable A/c ... Dr.		30000
	To Pradhan’s A/c			30000
	[Being the accptance received from Pradhan]
3	Bills sent to Bank for Collection A/c ... Dr.		30000
	To Bills Receivable A/c			30000
	[Being the bill sent to the bank for collection]
4	Pradhan’s A/c ... Dr.		30000
	To Bill sent to Bank for Collection A/c			30000
	[Being the bill is dishonoured]
5	Cash/Bank A/c ... Dr.		15000
	Bad debts A/c .... Dr.		15000
	To Pradhan’s A/c			30000
	[Being 50% of the amount due recovered from Pradhan]

In the Ledger of Raja

Pradhan’s Account

Date	Particulars	Amount	Date	Particulars	Amount
1.	To Sales A/c [Credit Sales]	30000	2.	By Bills Receivable A/c (Acceptance Received)	30000
4.	To Bill Sent to Bank for Collection A/c (Bill sent to the bank)	30000	5.	By Cash / Bank A/c [Amount recovered]	15000
			5.	By Bad debts A/c (Bad debts incurred)	15000
		60000			60000

5. In the books of Partnership Firm

Realisation Account.

Particulars	Amount	Amount	Particulars	Amount	Amount
To Sundry Assets:			By Sundry Liabilities (Sundry Creditors)		39700
Plant and Machinery A/c	40000		By R.D.D. A/c		1000
Furniture A/c	12000		By Bank A/c
Sundry Debtors A/c	61000		Plant and Macinery	30000
Stock A/c	28300	141300	Sundry Debtors	58000	88000
To Bank A/c (Sundry Creditors)		38000	By Akbar’s Capital A/c (Plant and Machinery)		10000
To Bank A/c (Realisation Expenses)		2000	By Birbal’s Capital A/c [Stock ]		27000
			By Partners’ Capital A/c
			Akbar	9360
			Birbal	6240	15600
		181300			181300

Partners’ Capital Accounts

Particulars	Akbar	Birbal	Particulars	Akbar	Birbal
To Realization A/c (Assets taken over)	10000	27000	By Balace b/d	60000	40000
To Realisation A/c (Loss)	9360	6240	By General Reserve A/c [Transfer]	12000	8000
To Bank A/c (Final Settlement)	52640	14760
	72000	48000		72000	48000

Bank Account.

Particulars	Amount	Amount	Particulars	Amount	Amount
To Balance b/d		19400	By Realisation A/c (Sundry Creditors)		38000
To Realisation A/c (Assets Sold)		88000	By Realization A/c (Expenses paid)		2000
			By Akbar’s Capital A/c [Final settlement]		52640
			By Birbal’s Capital A/c [Final Settlement]		14760
		107400			107400

OR

5. Journal of Modern Chemicals Co. Ltd.

Date	Particulars	L.F.	Debit (Rs.)	Credit (Rs. )
1	Bank A/c ... Dr.		325000
	To Equity Share Application A/c			325000
	[Being share application money Rs. 5 per share received on 65000 shares]
2	Equity Share Application A/c .... Dr		325000
	To Equity Share Capital A/c			300000
	To Bank A/c			25000
	[Being application money transferred to share capital and excess appliation monery refunded. ]
3	Equity Share Allotment A/c ....Dr		300000
	To Equity Share Capital A/c			300000
	[Being allotment money of Rs. 5 per share due on 60000 shares)
4	Bank A/c ... Dr.		300000
	To Equity Share Allotment A/c			300000
	[Being allotment monery received]
5	Equity Share First Call A/c .... Dr.		240000
	To Equity Share Capital A/c			240000
	[Being first call monery Rs. 4 per share due on 60000 shares)
6.	Bank A/c .... Dr.		240000
	To Equity Share First Call A/c			240000
	[Being first call monery received]
7	Equity Share second call A/c ... Dr.		180000
	To Equity Share Capital A/c			180000
	[Being second call money Rs. 3 per share due on 60000 shares]
8	Bank A/c .... Dr.		179700
	Equity Share Second call in Arrears A/c ... Dr.		300
	To Equityu share Second call A/c			180000
	[Being second call money received on all shares except 100 shares]

6. In the books of Adarsh Cultural Club, Mumbai

Income and Expenditure Account for the year ended 31st March, 2013

Particulars	Amount	Amount	Particulars	Amount	Amount
To Salaries	35300		By Subscriptions	48000
Less: Previous year’s Outstanding Salaries paid	1300		Add: Outstanding for current year	2000	50000
Add: Outstanding for the current year.	700	34700	By Drama Receipts	28000
To General Expenses		8400	Less: Drama Expenses	16000	12000
To Printing & Stationery		4200
To Depreciation on Furniture		5000
To Excess of Income Over Expenditure (Surplus)		9700
		62000			62000

Balance Sheet as on 31st March, 213

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital Fund	257000		Buildings		250000
Add: Surplus	9700	266700	Furniture	20000
Building Fund	50000		Add: New Furniture Purchased	10000
Add: Donation for Building Fund	20000	70000	Less: Depreciation	5000	25000
Subscriptions received in advance		2000	Outstanding Subscription for 2012 - 13		2000
Outstanding salaries for 2012 - 13		700	Cash at Bank		57800
			Cash in Hand		4600
		339400			339400

7. In the books of Partnership Firm of Jaya and Maya

Trading A/c For the year ended 31st March, 2011

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		32800	By Sales		194000
To Purchases	109000		By Closing Stock		22600
Less:  Purchase of furniture wrongly included	10000	99000
To Carriage Inwards		3700
To Wages and Salaries		28600
To Gross Profit C/d		52500
		216600			216600

Profit & Loss Account for the year ended 31 st March, 2011

Particulars	Amount	Amount	Particulars	Amount	Amount
To Insurance		3700	By Gross Profit b/d		52500
To Rent, Rates and Taxes		14600	By Commission		5500
To Office Expenses		7300
To R.B.D.D. A/c
New Reserve	4400
Less: Old Reserve	2000	2400
To Depreciation on Land and Building	30000
Plant and Machinery	6000		By Partners’ Current A/c [Net Loss]
Furniture	4000	40000	Jaya	4000
			Maya	6000	10000
		68000			68000

Partners’ Current Accounts

Particulars	Jaya	Maya	Particulars	Jaya	Maya
To Drawings A/c	500	1500	By Balance b/d	3400	9100
To Profit & Loss A/c	4000	6000	By Balance b/d	1100
To Balance c/d		1600
	4500	9100		4500	9100

Balance Sheet as on 31st March, 2013

Liabilities	Amount	Amount	Assets	Amount	Amount
Partners’ Capital A/c			Land and Building	300000
Capital A/c			Less: Depreciation	30000	270000
Jaya	200000		Plant and Machinery	60000
Maya	250000	450000	Less: Depreciation	6000	54000
Sundry Creditors		45600	Furniture	15000
Maya’s Current A/c		1600	Add: New furniture Purchased	10000
			Less: Depreciation	-4000	21000
			Sundry Debtors	88000
			Less: R.D.D. @ 5%	-4400	83600
			Closing Stock		22600
			Cash in Hand		4700
			Cash at Bank		40200
			Jaya’s Current A/c		1100
		497200			497200