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HSC Board July 2023 Book Keeping & Accountancy Question Paper Solution

Board Question Paper: July 2023 - Book Keeping & Accountancy | Solutions
HSC Board Question Paper Header

BOARD QUESTION PAPER: JULY 2023
BOOK KEEPING & ACCOUNTANCY

Name Page No. 1 Name Page No. 2 Name Page No. 3 Name Page No. 4 Name Page No. 5 Name Page No. 6 Name Page No. 7 Name Page No. 8 Name Page No. 9 Name Page No. 10 Name Page No. 11

Q.1. All objective questions are compulsory: [20]

(A) Write the word/phrase/term which can substitute each of the following statements: (5)

  1. Debit balance of trading account.
    Answer: Gross Loss
  2. The receipts which are not recurring in nature.
    Answer: Capital Receipts
  3. \( \text{Capital employed} \times \frac{\text{N.R.R}}{100} = \)
    Answer: Normal Profit
  4. Fees charged by notary public for getting the fact of dishonour noted.
    Answer: Noting Charges
  5. The person who purchases the share of a company.
    Answer: Shareholder

(B) Complete the following statements: (5)

  1. Return outwards are deducted from _______.
    Answer: Purchases
  2. Receipts and Payments account falls under the category of _______ account.
    Answer: Real
  3. Revaluation Account is also known as _______ account.
    Answer: Profit and Loss Adjustment
  4. Making payment of the bill before the due date of maturity is known as _______.
    Answer: Retirement of bill
  5. Benefit Ratio – New Ratio = _______
    Answer: Old Ratio

(C) Answer in one sentence only: (5)

  1. When is partners’ current account opened?
    Answer: Partners' Current Account is opened when the Fixed Capital Method is adopted by the firm.
  2. What is surplus?
    Answer: Excess of income over expenditure as shown by Income & Expenditure A/c represents surplus for the financial year.
  3. What is sacrifice ratio?
    Answer: The ratio which is surrendered or given up by the old partners in the favour of the newly admitted partner is called as sacrifice ratio.
  4. Who is called insolvent person?
    Answer: Insolvent person is a person whose Capital A/c has debit balance (debit side greater) & is unable to meet the capital deficiency even from his personal property.
  5. What is Computerized Accounting System?
    Answer: CAS is the Computerised Accounting System which helps the organisation to implement the accounting process with automation & makes it user friendly.

(D) Select the most appropriate alternatives from the following and rewrite the sentences: (5)

  1. The Indian Partnership Act is in force since _______.
    (A) 1932 (B) 1881 (C) 1956 (D) 1984
    Answer: (A) 1932
  2. Not for profit organisation is also called _______ organisation.
    (A) Service (B) Trading (C) Profit making (D) Commercial
    Answer: (A) Service
  3. Rishi, Ratna and Ruchira are sharing profits and losses \(\frac{1}{2}, \frac{3}{10}\) and \(\frac{1}{5}\), if Rishi retires then their new ratio will be _______.
    (A) 5 : 2 (B) 3 : 2 (C) 5 : 3 (D) 2 : 5
    Answer: (B) 3 : 2
  4. Assets and liabilities are transferred to Realisation account at their _______ value.
    (A) market (B) purchase (C) sales (D) book
    Answer: (D) book
  5. The common size statement requires _______.
    (A) Common base (B) Journal entry (C) Cash flow (D) Current ratio
    Answer: (A) Common base

HSC Accounts Board Papers with Solution

Book Keeping and Accountancy

Q.2. Solution (Admission of Partner) [10]

In the books of Partnership Firm

(i) Revaluation Account

Particulars Amt (₹) Particulars Amt (₹)
To Building A/c (Overvalued) 24,000 By Stock A/c (Undervalued) 40,000
To R.D.D. A/c 2,400 (Working: 1,20,000 / 75 * 25)
To Profit on Revaluation transferred to:
Rajeev's Capital A/c (3/4) 10,200
Sanjeev's Capital A/c (1/4) 3,400
Total 40,000 Total 40,000

(ii) Partners' Capital Accounts

Particulars Rajeev Sanjeev Mahesh Particulars Rajeev Sanjeev Mahesh
To Balance c/d 2,44,200 1,71,400 1,20,000 By Balance b/d 1,80,000 1,50,000 -
By General Reserve (3:1) 9,000 3,000 -
By Cash A/c - - 1,20,000
By Goodwill A/c (3:1) 45,000 15,000 -
By Revaluation A/c 10,200 3,400 -
Total 2,44,200 1,71,400 1,20,000 Total 2,44,200 1,71,400 1,20,000

(iii) Balance Sheet as on 1st April 2020

Liabilities Amt (₹) Assets Amt (₹)
Capital Accounts: Building (1,80,000 - 24,000) 1,56,000
Mr. Rajeev 2,44,200 Stock (1,20,000 + 40,000) 1,60,000
Mr. Sanjeev 1,71,400 Debtors 93,000
Mr. Mahesh 1,20,000 Less: R.D.D. (2,400)
Sundry Creditors 63,000 (Outer) 90,600
Cash (12k + 120k + 60k) 1,92,000
Total 5,98,600 Total 5,98,600
OR

Q.2. Solution (Retirement of Partner) [10]

In the books of Kiran, Suraj and Dhiraj

(i) Profit and Loss Adjustment Account

Particulars Amt (₹) Particulars Amt (₹)
To R.D.D. A/c (5% of 1,80,000) 9,000 By Building A/c (5%) 6,000
To Outstanding Salary A/c 6,000 By Investment A/c (10%) 30,000
To Profit on Revaluation transferred to:
Kiran (3/6) 10,500
Suraj (2/6) 7,000
Dhiraj (1/6) 3,500
Total 36,000 Total 36,000

(ii) Partners' Capital Accounts

Particulars Kiran Suraj Dhiraj Particulars Kiran Suraj Dhiraj
To Dhiraj's Cap (Gw w/off) 18,000 12,000 - By Balance b/d 2,40,000 1,80,000 1,20,000
To Dhiraj's Loan A/c - - 1,53,500 By P&L Adj A/c (Profit) 10,500 7,000 3,500
To Balance c/d 2,32,500 1,75,000 - By Kiran & Suraj Cap (Gw) - - 30,000
Total 2,50,500 1,87,000 1,53,500 Total 2,50,500 1,87,000 1,53,500

(iii) Balance Sheet of New Firm as on 1st April 2020

Liabilities Amt (₹) Assets Amt (₹)
Capital Accounts: Building (120k + 6k) 1,26,000
Kiran 2,32,500 Investment (300k + 30k) 3,30,000
Suraj 1,75,000 Debtors (180k - 9k RDD) 1,71,000
Dhiraj's Loan A/c 1,53,500 Bank 1,08,000
Loan 1,00,000
Creditors 44,000
Bills Payable 24,000
Outstanding Salary 6,000
Total 7,35,000 Total 7,35,000

Q.3. Solution (Dissolution of Partnership) [10]

In the books of Aarti and Akanksha

(i) Realisation Account

Particulars Amt (₹) Particulars Amt (₹)
To Sundry Assets A/c (Trf): By Sundry Liabilities A/c (Trf):
  Furniture 12,000   Creditors 6,000
  Patents 2,400   Bills Payable 2,000
  Goodwill 4,000 By R.D.D. A/c 400
  Debtors 7,600 By Bank A/c (Assets Realised):
  Stock 7,200   Furniture (13k), Gw (6k)
To Bank A/c (Liab Paid):   Stock (8k), Debtors (6k) 33,000
  Creditors (6000-10%) 5,400 By Aarti's Capital A/c (Patents) 4,000
  Bills Payable 2,000
To Profit on Realisation:
  Aarti (1/2) 2,400
  Akanksha (1/2) 2,400
Total 45,400 Total 45,400

Note: Expenses of ₹ 3,000 were borne by Akanksha, so no cash payment from firm's bank account.

(ii) Partners' Capital Accounts

Particulars Aarti Akanksha Particulars Aarti Akanksha
To Realisation A/c (Patents) 4,000 - By Balance b/d 12,000 10,000
To Bank A/c (Final Payment) 12,400 14,400 By General Reserve 2,000 2,000
By Realisation A/c (Profit) 2,400 2,400
Total 16,400 14,400 Total 16,400 14,400

(iii) Bank Account

Particulars Amt (₹) Particulars Amt (₹)
To Balance b/d 2,400 By Realisation A/c (Liab Paid) 7,400
To Realisation A/c (Assets) 33,000 By Aarti's Loan A/c 4,000
By Aarti's Capital A/c 12,400
By Akanksha's Capital A/c 14,400
Total 35,400 Total 35,400
OR

Q.3. Solution (Bills of Exchange) [10]

In the books of Mr. Aman
Journal Entries

Date Particulars L.F. Debit (₹) Credit (₹)
1. Varun's A/c ...Dr.
   To Sales A/c
(Being goods sold on credit)		 24,000
24,000
2. Bills Receivable A/c ...Dr.
   To Varun's A/c
(Being acceptance of bill received)		 24,000
24,000
3. Bank A/c ...Dr.
Discount A/c ...Dr.
   To Bills Receivable A/c
(Being bill discounted)		 23,700
300

24,000
4. Varun's A/c ...Dr.
   To Bank A/c
(Being bill dishonoured)		 24,000
24,000
5. Varun's A/c ...Dr.
   To Interest A/c
(Being interest charged)		 550
550
6. Cash A/c ...Dr.
   To Varun's A/c
(Being part amount received with interest)		 4,550
4,550
7. Bills Receivable A/c ...Dr.
   To Varun's A/c
(Being acceptance of new bill received)		 20,000
20,000
8. Varun's A/c ...Dr.
   To Bills Receivable A/c
(Being new bill dishonoured)		 20,000
20,000
9. Cash/Bank A/c ...Dr.
Bad Debts A/c ...Dr.
   To Varun's A/c
(Being 20% amount recovered & balance written off as bad debts)		 4,000
16,000

20,000

Q.4. Solution (Issue of Shares) [8]

In the books of Ankur Company Limited
Journal Entries

Date Particulars L.F. Debit (₹) Credit (₹)
1. Bank A/c ...Dr.
   To Equity Share Application A/c
(Being application money received on 50,000 shares)		 15,00,000
15,00,000
2. Equity Share Application A/c ...Dr.
   To Equity Share Capital A/c
(Being application money transferred)		 15,00,000
15,00,000
3. Equity Share Allotment A/c ...Dr.
   To Equity Share Capital A/c
(Being allotment money due)		 20,00,000
20,00,000
4. Bank A/c ...Dr.
   To Equity Share Allotment A/c
(Being allotment money received)		 20,00,000
20,00,000
5. Equity Share First & Final Call A/c ...Dr.
   To Equity Share Capital A/c
(Being first & final call money due)		 15,00,000
15,00,000
6. Bank A/c ...Dr.
Calls in Arrears A/c ...Dr.
   To Equity Share First & Final Call A/c
(Being call money received except on 5000 shares)		 13,50,000
1,50,000

15,00,000
7. Equity Share Capital A/c ...Dr.
   To Calls in Arrears A/c
   To Share Forfeiture A/c
(Being shares forfeited)		 5,00,000
1,50,000
3,50,000
OR

Q.4. Solution (Computerized Accounting) [8]

Features of Computerized Accounting System (CAS):

  1. Speed: CAS can perform accounting functions much faster than manual systems. Calculations, posting, and report generation are instantaneous.
  2. Accuracy: Computers reduce the risk of human error in calculations. Once the data is entered correctly, the reports generated are highly accurate.
  3. Reliability: CAS is reliable as it can handle large volumes of data without getting tired or bored, maintaining consistency in operations.
  4. Scalability: The system can easily adapt to the growing needs of the business. It can handle an increase in the volume of transactions without a significant drop in performance.
  5. Security: Data can be secured through passwords and encryption. Backups can be taken easily to prevent data loss.
  6. Automated Reports: It automatically generates financial statements like Trial Balance, Profit & Loss A/c, and Balance Sheet at the click of a button.
  7. Storage and Retrieval: It requires less physical space for storage compared to manual books, and retrieving old data is very quick.
  8. Up-to-date Information: Accounting records are updated in real-time, providing management with current financial status for decision making.

Q.5. Solution (Death of Partner) [8]

(i) Working of Vijay's Share of Profit

Average Profit of last two years (IV and V) = \(\frac{1,00,000 + 1,20,000}{2} = 1,10,000\)
Period from 1st April to 1st July = 3 months.
Profit for 3 months = \(1,10,000 \times \frac{3}{12} = 27,500\)
Vijay's Share (1/5) = \(27,500 \times \frac{1}{5} = \textbf{5,500}\)

(ii) Working of Vijay's Share of Goodwill

Average Profit (Last 5 years) = \(\frac{60k + 50k + 80k + 100k + 120k}{5} = \frac{4,10,000}{5} = 82,000\)
Goodwill of Firm = Average Profit × No. of Years Purchase
Goodwill of Firm = \(82,000 \times 2 = 1,64,000\)
Vijay's Share = \(1,64,000 \times \frac{1}{5} = \textbf{32,800}\)

(iii) Revaluation Account

Particulars Amt (₹) Particulars Amt (₹)
To R.D.D. A/c 5,000 By Building A/c (60k-40k) 20,000
To Profit on Revaluation: By Furniture A/c (35k-30k) 5,000
Jay (2/5) 8,000
Ajay (2/5) 8,000
Vijay (1/5) 4,000
Total 25,000 Total 25,000
OR

Q.5. Solution (Common Size Statement) [8]

(i) Common Size Income Statement

Particulars 31st March 2019 31st March 2020
Amt (₹) % Amt (₹) %
Net Sales 10,00,000 100.00 12,00,000 100.00
Less: Cost of Goods Sold 6,00,000 60.00 7,20,000 60.00
Gross Profit 4,00,000 40.00 4,80,000 40.00
Less: Operating Expenses
  Office & Admin Exp. 1,10,000 11.00 1,44,000 12.00
  Selling & Dist. Exp. 1,05,000 10.50 1,32,000 11.00
Total Operating Exp. 2,15,000 21.50 2,76,000 23.00
Net Profit 1,85,000 18.50 2,04,000 17.00

(ii) Profitability Analysis

The profitability was better in the year ending 31st March 2019 (18.50% Net Profit Ratio) compared to 2020 (17.00%).

Q.6. Solution (Not for Profit Concern) [12]

In the books of Dr. Dhanashri

Income and Expenditure Account for the year ended 31st March, 2020

Expenditure Amt (₹) Income Amt (₹)
To Drugs Consumed: By Visit Fees 20,000
  Purchases: 14,000   Add: Outstanding 4,000
  Less: Closing Stock: (2,000) 12,000 (Outer) 24,000
To Salary 36,000 By Receipts from Dispensary 60,000
To Conveyance (8000 * 60%) 4,800   Add: Outstanding 1,000
To Stationery 11,000 (Outer) 61,000
To Journals 1,000 By Sundry Receipts 10,000
To Depreciation on:
  Furniture (16k * 10%) 1,600
  Equipment 1,000
To Surplus (Excess of Income over Exp) 27,600
Total 95,000 Total 95,000

Balance Sheet as on 31st March, 2020

Liabilities Amt (₹) Assets Amt (₹)
Capital Fund 50,000 Furniture 16,000
Add: Surplus 27,600 Less: Depreciation (1,600)
Less: Drawings (Outer) 14,400
(Cash 30,000 + Conv 3,200) (33,200) Equipment (20k - 1k Dep) 19,000
(Outer) 44,400 Stock of Drugs 2,000
Outstanding Income:
  Visit Fees 4,000
  Dispensary 1,000
Cash in Hand 4,000
Total 44,400 Total 44,400

Q.7. Solution (Partnership Final Accounts) [12]

In the books of Seema and Vivek

Trading and Profit & Loss Account for the year ended 31st March, 2020

Particulars Amt (₹) Particulars Amt (₹)
To Opening Stock 65,000 By Sales 1,84,200
To Purchases (1,48,000 - 4,000) 1,44,000 Less: Returns (2,000)
To Wages & Salary (9,000 - 700 PP) 8,300 (Outer) 1,82,200
To Gross Profit c/d 4,900 By Closing Stock 40,000
Total 2,22,200 Total 2,22,200
To Bad debts (Old) 1,000 By Gross Profit b/d 4,900
Add: New Provision 1,800 By Interest Received 1,800
(Outer) 2,800 Add: Receivable 900
To Depreciation: (Outer) 2,700
  Building (5% of 75k) 3,750 By Net Loss transferred to:
  Motor Car (3% of 68k) 2,040 Seema (1/2) 7,495
To Advertisement 4,500 Vivek (1/2) 7,495
Add: Outstanding (3 months) 1,500
(Outer) 6,000
To Audit Fees 5,000
To Printing & Stationery 3,000
Total 22,590 Total 22,590

Balance Sheet as on 31st March, 2020

Liabilities Amt (₹) Assets Amt (₹)
Capital Accounts: Building 75,000
Seema (160k - 7,495 Loss) 1,52,505 Less: Dep 5% (3,750)
Vivek (120k - 7,495 Loss) 1,12,505 (Outer) 71,250
Sundry Creditors 78,000 Motor Car 68,000
Outstanding Advertisement 1,500 Less: Dep 3% (2,040)
(Outer) 65,960
Debtors 1,32,500
Less: New Bad Debts Prov. (1,800)
(Outer) 1,30,700
Closing Stock 40,000
Bank Balance 35,000
Prepaid Wages 700
Interest Receivable 900
Total 3,44,510 Total 3,44,510
Title: HSC Board July 2023 Book Keeping & Accountancy Question Paper Solution Labels: HSC Board Question Papers, Book Keeping Solutions, Accountancy 12th Std, Maharashtra Board July 2023, Solved Papers Permalink: hsc-board-july-2023-book-keeping-accountancy-solution Search Description: Complete solved paper for Maharashtra HSC Board July 2023 Book Keeping & Accountancy. Detailed solutions for all questions.
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