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HSC Accounts July 2017 Board Question Paper With Solution

HSC Accounts July 2017 Board Paper
HSC Accounts July 2017 Board Paper Page 1
HSC Accounts July 2017 Board Paper Page 2
HSC Accounts July 2017 Board Paper Page 3
HSC Accounts July 2017 Board Paper Page 4
HSC Accounts July 2017 Board Paper Page 5

HSC ACCOUNTS JULY 2017 BOARD PAPER

Q. 1. ATTEMPT ANY THREE OF THE FOLLOWING SUB QUESTIONS: [15]

(A) Answer the following questions in only ‘one’ sentence each:
(1) What is ‘Capital Fund’?
Ans. Excess of assets over liabilites in case of not for profit concern is known as capital fund.
2. What is ‘Equity Share’?
Ans. Share which does not have preference with respect to payment of dividend and repayment of capital is known as equity share.
3. What are noting charges?
Ans. The fee charged by the notary public for noting of dishonoured of inland bill is known as noting charges.
4. What is ‘analysis’ of financial statement?
Ans. Analysis of financial statement means critical evaluation of financial statement to measure the profitablity, solvency and growth of organisation.
5. When is the bill is said to be ‘honoured’?
Ans. A bill is said to be honoured when the amount of bill is paid on its due date.

ACCOUNTS BOARD PAPERS

(B) Write a word/ term / phrase as substitute for each of the following statements. [5]
(1) Expenses which are paid before due.
Ans. Prepaid expenses
(2) Account which is credited when goodwill is withdrawn by old parters.
Ans. Cash / Bank Account.
(3) Expenses incurred on dissolution of a partnership firm.
Ans. Realisation / Dissolution expenses.
(4) A person to whom the bill is endorsed.
Ans. Endorsee
(5) The ratio measuring the relationship between gross profit and net sales.
Ans. Gross profit ratio.
(C) Select the most appropriate alternative from those given below and rewrite the statements: [5]
(1) Return outward are decuted from ________________.
(a) purchses
(b) sales
(c) capital
(d) debtors
(2) ___________ is a major source of revenue income for ‘not for profit’ concern.
(a) Subscription
(b) Donation
(c) Legacies
(d) Life membership fees
(3) Assets and Liabilities are transferred to Realisation Account at their __________ values.
(a) market
(b) purchase
(c) sale
(d) book
(4) A person on whom a bill of exchange is drawn is called as _______
(a) drawer
(b) drawee
(c) payee
(d) endorsee
(5) If closing capital is greater than opening capital it shows _______________
(a) gross profit
(b) net profit
(c) gross loss
(d) net loss
D. State whether the following statements are ‘True’ or ‘False’ [05]
(1) All direct expenses are debited to trading account. (True)
(2) When goodwill is paid privately, no entry in the books of account is required. (True)
(3) On dissolution, cash or bank account is closed automatically. (True)
(4) Noting charges are payable to the notary public on honour of a bill. (False)
(5) Single entry system is based on certain rules and principles. (False)
E. Prepare a format of Bill of Exchange from the following information: [5]
(1) Drawer : Abhilash Patil, M.G. Road, Kokarda.
(2) Drawee: Bhargav Mishra, 140 Civil Lines, Nagpur.
(3) Payee: Gopal Deshpande, Ambajogai.
(4) Amount of bill: Rs. 21,500/-
(5) Period of Bill : 3 months
(6) Date of bill : 23rd August, 2013
(7) Date of acceptance: 25th August, 2013.
(8) Accepted for : Rs. 20,000 only.
Answer:
Bill of Exchange Format Bill of Exchange Calculation
Additional Information:
(1) Mr. Govind transferred Rs. 300 per month during first half year and Rs. 200 each month for the remaining period from his business to his personal account. He also took goods of Rs. 700 for private use.
(2) Mr. Govind sold his personal assets for Rs. 7000 and brought the proceeds into his business.
(3) Furniture is to be depreciated by 10%.
(4) Provide R.D.D. at 5% for debtors.
Prepare: Opening and Closing Statement of affairs and Statement of Profit or Loss for the year ended 31st March 2013.
CLICK HERE FOR ANSWER

Q. 3. Ganga, Yamuna are partners sharing profits and losses in 3:2 respectively.

Their position on 31. 3. 2013. [10 Marks]
Balance sheet as on 31.03.2013
Liabilities Amount Assets Amount
Capital A/c Building 100000
Ganga 100000 Furniture 10000
Yamuna 75000 Stock 31000
Creditors 10000 Debtors 50000
Bills Payable 5000 Less: R.D.D. -1000 49000
General Reserve 15000 Bank 15000
205000 205000

On 1st April, 2013, they admitted Saraswati on the following terms:

(1) Saraswati should bring in cash Rs. 1,00,000 as capital for 1/5 share in future profit and Rs. 25,000, as goodwill.
(2) Building should be revalued for Rs. 1,25,000.
(3) Depreciate Furniture at 12 1/2 % p.a. And stock at 10%.
(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: (1) Profit and loss adjustment account. (2) Capital Account. (3) Balance sheet of new firm.

Click Here for Solution.

Q. 3. Shanti, Samadhan and Sangarsh were sharing profits and losses in the ratio of 7: 5: 4. Their balance sheet as on 31st .03.2013 was as follows:

Balance Sheet as on 31st March,2013.
Liabilities Amount Assets Amount
Capitals: Furniture 17000
Shanti 23000 Machinery 18000
Samadhan 15000 Building 16000
Sangharsh 12000 Cash 37000
Bills Payable 4000
Creditors 8000
Loan 10000
General Reserve 16000
88000 88000

Sangharsh died on 30 th June, 2013, and the following adjustments were agreed as per deed.

(1) Furniture, Machinery and Building are to be revalued at Rs. 16,700, Rs. 16,200, Rs. 30,100 respectively.
(2) Sangharsh’s share in goodwill is to be valued from firm’s goodwill which was valued at two times of the average profit of last three years.
Profits of the last three years - Rs. 30,000, Rs. 25,000, Rs. 20,000.
(3) His profit up to the date of death is to be calculated on the basis of profit of last year.
(4) Sagharsh was entitled to get a salary of Rs. 800 per month.
(5) Interest on capital at 10% to be allowed.
(6) Sangharsh’s drawing up to the date of death was Rs. 600 per month.
Prepare : (i) Sangarsh’s capital account showing amount payable to his executor.
(ii) Give working notes for share of goodwill and profit.
Click here for Solution.
Q. 4. Apate draws a bill on Mapate for Rs. 8000 at 3 months. Mapate accepted the same and sent to Apate. Apate sent the same bill to his bank for collection. On due date Mapate found himself unable to make payment of the bill, and requested Apate to renew it.

Apate agreed on the condition that Mapate should pay Rs. 2000 and interest Rs. 200 on the remaining balance in cash and accept a fresh bill for the balance for two months.

These agreements were carried through. On due date of new bill it was duly honoured.

Pass journal entries and Mapate’s account in the books of Apate.
Click Here For Journal Entries
Q. 5. Umesh and Prakash were partners sharing profit and losses in the proportion of 3/5 and 2/5 respectively. They dissolved their partnership firm on 31st March, 2013, when their financial position was us under: [10]
Balance sheet as on 31st March, 2012
Liabilities Amount Assets Amount
Sundry Creditors 7500 Cash at Bank 1500
Umesh’s Wife’s Loan 15000 Debtors 33750
Capital Accounts: Less: R.D.D. - 3750 30000
Umesh 69000 Stock 67500
Prakash 45000 Machinery 22500
Furniture 15000
136500 136500
(1) The assets realised as under.
Goodwill Rs. 7500; Stock Rs. 60000; Debtors Rs. 27000
(2) Machinery was taken over by Prakash at Rs. 20,000 and furniture by Umesh at book value.
(3) Umesh agreed to discharge his wife’s loan.
(4) The creditors were paid at a rebate of Rs. 1500.
(5) The expenses of dissolution amounted to Rs. 3000
Solution: Journal Entries in the books of the firm.
OR
Q. 5. Mahalaxmi Industries Ltd. Kundur issued 15000 equity shares of Rs. 100 each. They were payable as follows:
On Application Rs. 20
On Allotment Rs. 30
On First Call Rs. 25
On Second Call Rs. 25

The company received application for 12000 shares. All the applications were accepted and shares were alloted. The company made both the calls. One Shareholder holding 400 shares failed to pay the final call. His shares were forefeited.

Pass journal entries in the books of Mahalaxmi Industries Ltd. Kundur. [10]
Solution: Journal of M/s Mahalaxmi Industries Ltd. Kundur.
Q. 6. Following is the Balance Sheet and Receipts and Payments Account of Ekveera Hospital Amravati.
Balance Sheet as on 1.4.2012
LIABILITIES AMOUNT ASSETS AMOUNT
Capital Fund 502000 Cash in Hand 3000
Medical bill Unpaid 3000 Cash at Bank 6000
Land and Building 400000
Furniture 35000
Equipments 60000
Outstanding Subscription 1000
505000 505000
Receipts and Payments Account for the year ended 31.3.2013
Receipts Amount Payments Amount
To balance b/d By Salaries 55000
Cash in Hand 3000 By Medicines 26000
Cash at Bank 6000 By Equipment purchased 10000
To Subscription [Includes Rs. 1000 received for previous year] 65000 By General Expenses 4300
To Sale of Old Furniture [Book value Rs. 15000] 10000 By Balance c/d
To Donations (Revenue) 22000 Cash in Hand 7700
To Life Membership Fees 12500 Cash at Bank 15500
118500 118500
Adjustments:
(1) Outstanding subscription Rs. 6000.
(2) Capitalise the amount of life membership fees.
(3) Outstanding Salary Rs. 6000.
(4) Depreciate Land and Building by Rs. 10000 and Equipments by Rs. 15000.
(5) Unpaid medicine bill as on 1-4-2012 is still unpaid.
Prepare Income and Expenditure Account for the year ending 31.3.2013 and Balance Sheet as on that date.
Solution: In the books of Ekveera Hospital, Amravati. Income and Expenditure A/c for the year ended 31.3.2013
Q. 7. From the following Trial Balance of M/s Vishal and Vaibhav, 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 after taking into consideration the adjustments given below:
Trial Balance as on 31st March, 2013
Debit Balances Amount Credit Balances Amount
Salary and Wages 17000 Sales 110000
Postage and Telegram 1750 Sundry Creditors 72700
Opening Stock 23500 Bills Payable 40000
Plant and Machinery 70000 10% Bank Loan [Taken on 1st October, 2012] 60000
Import Duty 3100 Outstanding Audit Fees 5900
Purchases 98500 Capital Accounts:
Sundry Debtors 45800 Vishal 45000
Bills Receivable 16700 Vaibhav 45000
Carriage Outward 1800
Wages and Salary 14000
Printing and Stationery 4600
Cash in hand 1850
Lease hold premises 80000
378600 378600
Adjustments:
(1) Closing stock was valued at Rs. 30000.
(2) Postal stamps of Rs. 250 and stationery of Rs. 400 are unused.
(3) Lease hold property is to be run for 10 years w.e.f. 1st October, 2012.
(4) Depreciate Plant and Machinery at 10% p.a.
(5) Mr. Rajan, our customer, became insolvent and could not payhis debts of Rs. 1500.
Solution: In the books of Vishal and Vaibhav
Trading A/c for the year ended 31.3.2013
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