BOARD QUESTION PAPER: AUGUST 2022
BOOK KEEPING & ACCOUNTANCY | Time: 3 Hrs | Max. Marks: 80
Q.1. Attempt all of the following sub-questions:
(A) Do you agree or disagree with the following statements: (5)
(1) Financial statement includes only Balance sheet.
(2) The person in whose favour the bill is endorsed is known as endorsee.
(3) Retiring partner is not entitled to share in General Reserve and Accumulated profit.
(4) Income and Expenditure Account is Real Account.
(5) Partnership firm is a Trading concern.
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(B) Select the most appropriate alternative from those given below and rewrite the statements: (5)
(1) A proportion in which the continuing partners get the share of retiring partner is known as _______.
- (A) Old Ratio
- (B) New Ratio
- (C) Gain Ratio
- (D) Capital Ratio
(2) Partnership is completely dissolved when the partners of the firm become _______.
- (A) solvent
- (B) insolvent
- (C) creditors
- (D) debtors
(3) The person on whom the bill is drawn is called as _______.
- (A) Drawee
- (B) Payee
- (C) Drawer
- (D) None of the above
(4) Liability of partners in a partnership business is _______.
- (A) limited
- (B) unlimited
- (C) limited and unlimited
- (D) None of the above
(5) Ajay and Vijay are two partners sharing profits and losses in the ratio of 3 : 2. They decided to admit Sanjay for \( \frac{1}{5} \)th share, the new profit and loss sharing ratio will be _______.
- (A) 12 : 8 : 5
- (B) 4 : 3 : 1
- (C) 12 : 8 : 1
- (D) 12 : 3 : 1
(C) Find the odd one: (5)
(1) Reserve Fund, Bank Loan, Building, Capital
(2) Admission fees received, Sundry income, specific donations for Building, Sale of old news papers.
(3) Postage, Stationary, Dividend received, Advertisement.
(4) Bank overdraft, Library books, Stock of Drugs, Equipments.
(5) Realisation Account, Partners’ Capital Account, Balance Sheet, Bank Account.
(D) Complete the sentences: (5)
(1) Excess of income over expenditure is termed as _______.
(2) _______ shareholders are the real owners of the company.
(3) Deceased partner’s Executor’s Loan Account is shown on the _______ side of the Balance sheet.
(4) _______ is the set of programs that direct the computer to perform the desired task.
(5) Revaluation Account is also known as _______ Account.
Q.2. Admission of Partner / Retirement
Option 1: Admission of Ravindra (Virat & Rohit)
(i) Profit and Loss Adjustment Account
| Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| To R.D.D. A/c | 5,400 | By Stock A/c (Appreciation) | 10,800 | ||
| To Machinery A/c | 8,400 | By Building A/c (Appreciation) | 12,000 | ||
| To Furniture A/c | 360 | ||||
| To Profit on Revaluation transferred | |||||
| to old Partners Current A/c: | |||||
| Virat (6/10) | 5,184 | ||||
| Rohit (4/10) | 3,456 | 8,640 | |||
| Total | 22,800 | Total | 22,800 |
(ii) Partners' Current Accounts
| Particulars | Virat | Rohit | Particulars | Virat | Rohit |
|---|---|---|---|---|---|
| To Cash A/c | 3,600 | 2,400 | By Balance b/d | 15,000 | 13,800 |
| To Balance c/d | 23,784 | 19,656 | By Goodwill A/c (6:4) | 7,200 | 4,800 |
| By Profit & Loss Adj. A/c (Profit) | 5,184 | 3,456 | |||
| Total | 27,384 | 22,056 | Total | 27,384 | 22,056 |
(iii) New Balance Sheet as on 1st April, 2020
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| Partners Capital A/c | Building | 60,000 | |||
| Virat | 84,000 | Add: Appreciation | 12,000 | 72,000 | |
| Rohit | 84,000 | Machinery | 84,000 | ||
| Ravindra | 36,000 | 2,04,000 | Less: Depreciation 10% | 8,400 | 75,600 |
| Partners Current A/c | Furniture | 3,600 | |||
| Virat | 23,784 | Less: Depreciation 10% | 360 | 3,240 | |
| Rohit | 19,656 | 43,440 | Stock | 49,200 | |
| Creditors | 1,20,000 | Add: Appreciation | 10,800 | 60,000 | |
| Debtors | 1,08,000 | ||||
| Less: RDD 5% | 5,400 | 1,02,600 | |||
| Cash | 54,000 | ||||
| Total | 3,67,440 | Total | 3,67,440 |
Working Note: Cash A/c
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Balance b/d | 12,000 | By Virat's Current A/c | 3,600 |
| To Ravindra's Capital A/c | 36,000 | By Rohit's Current A/c | 2,400 |
| To Goodwill A/c | 12,000 | By Balance c/d | 54,000 |
| Total | 60,000 | Total | 60,000 |
Option 2: Retirement of Rohan (Sohan, Mohan & Rohan)
(i) Profit and Loss Adjustment Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Furniture A/c (Depreciation) | 9,000 | By Freehold Property (Appr.) | 9,000 |
| To Goodwill A/c (Written off)* | 4,500 | By Machinery (Appreciation) | 3,000 |
| To Partners' Capital A/c (Profit): | By R.D.D. (Written back) | 3,000 | |
| Sohan (2/5) | 600 | ||
| Mohan (2/5) | 600 | ||
| Rohan (1/5) | 300 | ||
| Total | 15,000 | Total | 15,000 |
(ii) Partners' Capital Accounts
| Particulars | Sohan | Mohan | Rohan | Particulars | Sohan | Mohan | Rohan |
|---|---|---|---|---|---|---|---|
| To Rohan's Loan A/c | - | - | 48,300 | By Balance b/d | 1,20,000 | 90,000 | 45,000 |
| To Balance c/d | 1,26,600 | 96,600 | - | By General Reserve | 6,000 | 6,000 | 3,000 |
| By P & L Adj. A/c | 600 | 600 | 300 | ||||
| Total | 1,26,600 | 96,600 | 48,300 | Total | 1,26,600 | 96,600 | 48,300 |
(iii) Balance Sheet as on 1st April, 2020
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capital Accounts: | Bank | 15,000 | |
| Sohan | 1,26,600 | Debtors (All good) | 60,000 |
| Mohan | 96,600 | Furniture (Revalued) | 36,000 |
| Rohan's Loan A/c | 48,300 | Machinery (Revalued) | 15,000 |
| Creditors | 30,000 | Freehold Property | 90,000 |
| Goodwill (Revalued) | 85,500 | ||
| Total | 3,01,500 | Total | 3,01,500 |
Q.3. Dissolution of Partnership / Bills of Exchange
Option 1: Dissolution (Sheetal and Kanchan)
Journal Entries in the books of the Firm
| Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|
| Realisation A/c ... Dr. (Transfer of Assets) To Stock A/c To Debtors A/c To Bills Receivable A/c To Furniture A/c To Building A/c |
1,98,000 | 60,000 54,000 6,000 18,000 60,000 |
|
| Creditors A/c ... Dr. Bills Payable A/c ... Dr. (Transfer of Liabilities) To Realisation A/c |
38,400 21,600 |
60,000 |
|
| Cash A/c ... Dr. (Assets Realised: Stock 55,200 + Debtors 49,800 + BR 5,940) To Realisation A/c |
1,10,940 | 1,10,940 |
|
| Kanchan's Capital A/c ... Dr. (Building taken over) To Realisation A/c |
54,000 | 54,000 |
|
| Sheetal's Capital A/c ... Dr. (Furniture taken over) To Realisation A/c |
16,200 | 16,200 |
|
| Realisation A/c ... Dr. (Liabilities & Expenses Paid: Creditors 38,400 + BP 21,600 + Exp 1,800) To Cash A/c |
61,800 | 61,800 |
|
| Sheetal's Capital A/c ... Dr. Kanchan's Capital A/c ... Dr. (Realisation Loss transferred equally) To Realisation A/c |
9,330 9,330 |
18,660 |
|
| Reserve Fund A/c ... Dr. To Sheetal's Capital A/c To Kanchan's Capital A/c (Reserve fund distributed equally) |
24,000 | 12,000 12,000 |
|
| Sheetal's Capital A/c ... Dr. (Bal: 60+12-16.2-9.33) Kanchan's Capital A/c ... Dr. (Bal: 72+12-54-9.33) To Cash A/c (Final Settlement) |
46,470 20,670 |
67,140 |
Option 2: Bills of Exchange (Sandhya's Books)
Journal Entries
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| 1 | Bills Receivable A/c ... Dr. To Vidya's A/c (Being bill drawn.) |
36,000 | 36,000 |
|
| 2 | Bank A/c ... Dr. Discount A/c ... Dr. To Bills Receivable A/c (Being bill discounted.) |
34,800 1,200 |
36,000 |
|
| 3 | Vidya's A/c ... Dr. To Bank A/c (Being bill dishonoured.) |
36,000 | 36,000 |
|
| 4 | Cash / Bank A/c ... Dr. To Vidya's A/c (Being part amount received.) |
12,000 | 12,000 |
|
| 5 | Vidya's A/c ... Dr. To Interest A/c (Being interest charged.) |
1,100 | 1,100 |
|
| 6 | Bills Receivable A/c ... Dr. To Vidya's A/c (Being new bill drawn with interest.) |
25,100 | 25,100 |
|
| Total | 1,46,200 | 1,46,200 |
Vidya's Account
| Date | Particulars | Amount (₹) | Date | Particulars | Amount (₹) |
|---|---|---|---|---|---|
| 1 | To Balance b/d | 36,000 | 1 | By Bills Receivable A/c | 36,000 |
| 3 | To Bank A/c | 36,000 | 4 | By Cash / Bank A/c | 12,000 |
| 5 | To Interest A/c | 1,100 | 6 | By Bills Receivable A/c | 25,100 |
| Total | 73,100 | Total | 73,100 |
Q.4. Issue of Shares / Computerised Accounting
Option 1: Journal Entries (Mahesh Co. Ltd.)
Journal Entries in the books of Mahesh Co. Ltd.
| Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|
| Bank A/c ... Dr. (1,20,000 shares × ₹2) To Equity Share Application A/c (Being application money received) |
2,40,000 | 2,40,000 |
|
| Equity Share Application A/c ... Dr. To Equity Share Capital A/c (1,00,000 × ₹2) To Bank A/c (20,000 × ₹2) (Being application money transferred to capital and excess refunded) |
2,40,000 | 2,00,000 40,000 |
|
| Equity Share Allotment A/c ... Dr. (1,00,000 shares × ₹4) To Equity Share Capital A/c (Being allotment money due) |
4,00,000 | 4,00,000 |
|
| Bank A/c ... Dr. To Equity Share Allotment A/c (Being allotment money received) |
4,00,000 | 4,00,000 |
|
| Equity Share First Call A/c ... Dr. (1,00,000 shares × ₹2) To Equity Share Capital A/c (Being first call money due) |
2,00,000 | 2,00,000 |
|
| Bank A/c ... Dr. To Equity Share First Call A/c (Being first call money received) |
2,00,000 | 2,00,000 |
|
| Equity Share Second & Final Call A/c ... Dr. (1,00,000 shares × ₹2) To Equity Share Capital A/c (Being final call money due) |
2,00,000 | 2,00,000 |
|
| Bank A/c ... Dr. To Equity Share Second & Final Call A/c (Being final call money received) |
2,00,000 | 2,00,000 |
Option 2: Importance of Computerised Accounting system
The importance of a Computerised Accounting System (CAS) includes:
- Speed: CAS processes data much faster than manual systems, generating reports instantly.
- Accuracy: It reduces human errors in calculations. Once data is entered correctly, the outputs (reports, balances) are accurate.
- Reliability: Standardized processes ensure consistent and reliable financial information.
- Scalability: It can handle large volumes of transactions easily, suitable for growing businesses.
- Security: Data can be secured with passwords and backups, preventing unauthorized access and data loss.
- Automated Reporting: Generates financial statements (Balance Sheet, P&L) automatically at the click of a button.
- Cost-Efficient: Reduces the cost of stationery, storage, and manpower in the long run.
Q.5. Death of Partner / Ratios
Option 1: Death of Mamta
Mamta's Capital Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Drawings A/c (To Cash A/c) | 1,200 | By Balance b/d | 10,000 |
| To Mamta's Executor's Loan A/c | 15,000 | By General Reserve A/c | 1,000 |
| By Interest on Capital A/c | 500 | ||
| By Goodwill A/c | 3,000 | ||
| By Profit & Loss Suspense A/c | 750 | ||
| By Profit & Loss Adjustment A/c (profit) | 950 | ||
| Total | 16,200 | Total | 16,200 |
Working Notes
1. Profit & Loss Adjustment Account (Revaluation):
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| To Stock A/c | 1,500 | By Plant & Machinery A/c (Appr.) | 5,000 |
| To Partners' Capital A/c (Profit) | 4,750 | By R.D.D. A/c (Written back) | 1,250 |
| Total | 6,250 | Total | 6,250 |
Mamta's Share of Profit = 4,750 × 1/5 = ₹ 950
2. Interest on Capital:
Interest = Capital × Rate × Period
\( = 10,000 \times \frac{10}{100} \times \frac{6}{12} \)
= ₹ 500
3. Calculation of Mamta's Share of Goodwill:
Average Profit (3 years) = \( \frac{7,500 + 8,500 + 6,500}{3} = \frac{22,500}{3} \) = ₹ 7,500
Goodwill of Firm = Average Profit × No. of Years Purchase
Goodwill = 7,500 × 2 = ₹ 15,000
Mamta's Share = 15,000 × 1/5 = ₹ 3,000
4. Calculation of Profit upto date of death (P&L Suspense A/c):
Average Profit (Last 2 years) = \( \frac{8,500 + 6,500}{2} = \frac{15,000}{2} \) = ₹ 7,500
Profit for 6 months (Apr to Sept) = \( 7,500 \times \frac{6}{12} \) = ₹ 3,750
Mamta's Share = \( 3,750 \times \frac{1}{5} \) = ₹ 750
Option 2: Ratio Analysis
1. Current Ratio:
\( \text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}} \)
Current Assets = Debtors (90,000) + Stock (45,000) = 1,35,000
Current Liabilities = Creditors (45,000) + Bills Payable (30,000) + Bank OD (15,000) = 90,000
Ratio = \( \frac{1,35,000}{90,000} \) = 1.5 : 1
2. Gross Profit Ratio:
\( \text{GP Ratio} = \frac{\text{Gross Profit}}{\text{Net Sales}} \times 100 \)
\( = \frac{1,50,000}{5,00,000} \times 100 \) = 30%
3. Net Profit Ratio:
\( \text{NP Ratio} = \frac{\text{Net Profit}}{\text{Net Sales}} \times 100 \)
\( = \frac{1,00,000}{5,00,000} \times 100 \) = 20%
Q.6. Not for Profit Concern
Income and Expenditure Account
for the year ended 31st March, 2019
| Expenditure | Amount (₹) | Amount (₹) | Income | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| To Salaries to Teachers | 1,20,000 | By Tuition Fees (2018-19) | 35,000 | ||
| Add: Outstanding | 6,000 | 1,26,000 | Add: Outstanding | 5,000 | 40,000 |
| To Printing and Stationary | 3,500 | By Admission Fees | 4,000 | ||
| To Office Rent | 4,500 | (8,000 - 50% Capitalized) | |||
| To Sports Expenses | 750 | By Interest on Bank Deposits | 12,750 | ||
| To Annual Gathering Expenses | 6,000 | Add: Outstanding | 750 | 13,500 | |
| To Depreciation on: | By Government Grant | 43,250 | |||
| Books | 27,250 | (86,500 - 50% Capitalized) | 43,250 | ||
| Furniture | 53,250 | 80,500 | By Deficit (Excess of expenditure | 1,20,500 | |
| over income) | |||||
| Total | 2,21,250 | Total | 2,21,250 |
Balance Sheet as on 31st March, 2019
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| Capital Fund | 16,51,000 | Building | 9,00,000 | ||
| Add: Admission Fees | 4,000 | Furniture | 3,50,000 | ||
| Add: Government Grant | 43,250 | Add: Purchased | 20,000 | ||
| 16,98,250 | 3,70,000 | ||||
| Less: Deficit | 1,20,500 | 15,77,750 | Less: Depreciation 15% | 53,250 | 3,16,750 |
| Books | 2,50,000 | ||||
| Donation for Prize Fund | 45,000 | Add: Purchased | 30,000 | ||
| Outstanding Salaries | 6,000 | 2,80,000 | |||
| Less: Depreciation 10% | 27,250 | 2,52,750 | |||
| 9% Bank Deposits | 1,50,000 | ||||
| Add: Outstanding Interest | 750 | 1,50,750 | |||
| Cash in Hand | 100 | ||||
| Cash at Bank | 3,400 | ||||
| Outstanding Tuition Fees | 5,000 | ||||
| Total | 16,28,750 | Total | 16,28,750 |
Working Notes
1. Interest on Bank Deposit:
\( 1,50,000 \times \frac{9}{100} = 13,500 \)
Less: Received = 12,750
Outstanding Interest = 750
2. Depreciation on Books @ 10%:
On Opening Balance: \( 2,50,000 \times 10\% = 25,000 \)
On Purchased (1-7-2018 for 9 months): \( 30,000 \times 10\% \times \frac{9}{12} = 2,250 \)
Total Depreciation = 25,000 + 2,250 = 27,250
3. Depreciation on Furniture @ 15%:
On Opening Balance: \( 3,50,000 \times 15\% = 52,500 \)
On Purchased (1-1-2019 for 3 months): \( 20,000 \times 15\% \times \frac{3}{12} = 750 \)
Total Depreciation = 52,500 + 750 = 53,250
Q.7. Final Accounts (Partnership)
Trading Account
for the year ended 31st March, 2019
| Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| To Opening Stock | 30,800 | By Sales | 99,550 | ||
| To Purchases | 80,000 | Less: Returns | - | 99,550 | |
| Less: Returns | - | 80,000 | By Goods Destroyed by Fire | 8,000 | |
| To Wages | 7,500 | By Closing Stock | 35,000 | ||
| To Gross Profit c/d | 24,250 | ||||
| Total | 1,42,550 | Total | 1,42,550 |
Profit & Loss Account
for the year ended 31st March, 2019
| Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| To Salaries | 5,000 | By Gross Profit b/d | 24,250 | ||
| To Printing & Stationary | 1,050 | By Net Loss transferred to | |||
| To Advertisement | 30,000 | Partners' Capital A/c: | |||
| To Bad Debts | 500 | Pravin | 8,193 | ||
| Add: New RDD | 1,075 | Prashant | 8,192 | 16,385 | |
| 1,575 | |||||
| Less: Old RDD | - | 1,575 | |||
| To Depreciation on Furniture | 1,010 | ||||
| To Loss by fire | 2,000 | ||||
| Total | 40,635 | Total | 40,635 |
Balance Sheet as on 31st March, 2019
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
|---|---|---|---|---|---|
| Partners Capital A/c: | Sundry Debtors | 43,000 | |||
| Pravin | 51,807 | Less: RDD 2.5% | 1,075 | 41,925 | |
| Prashant | 51,808 | 1,03,615 | Furniture | 20,200 | |
| Sundry Creditors | 20,500 | Less: Depreciation 5% | 1,010 | 19,190 | |
| Cash in Hand | 7,000 | ||||
| Fixed Deposits | 15,000 | ||||
| Closing Stock | 35,000 | ||||
| Insurance Claim | 6,000 | ||||
| Total | 1,24,115 | Total | 1,24,115 |
Partners Capital Account
| Particulars | Pravin (₹) | Prashant (₹) | Particulars | Pravin (₹) | Prashant (₹) |
|---|---|---|---|---|---|
| To Profit & Loss A/c (Net Loss) | 8,193 | 8,192 | By Balance b/d | 60,000 | 60,000 |
| To Balance c/d | 51,807 | 51,808 | |||
| Total | 60,000 | 60,000 | Total | 60,000 | 60,000 |
