Subject

Accountancy

Class

CBSE Class 12

Pre Boards

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Sample Papers

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 Multiple Choice QuestionsShort Answer Type

1.

Distinguish between Fixed and Fluctuating Capital Accounts.


In fixed capital account method, two separate accounts are maintained for each partner capital account and current account. In fluctuating capital accounts method, each partner maintains only one account, i.e. capital account

1456 Views

2.

Pass the necessary Journal entry when 10,000 debentures of Rs. 100 each are issued as collateral security against a Bank loan of Rs. 8,00,000.


Particulars

LF

Debit (Rs)

Credit (Rs)

 

Debenture suspense a/c                       Dr 
 
     To Debenture a/c
 

(Being 10,000 debentures of Rs 100 each  issued as a collateral security against a bank loan of Rs 8,00,000)

 

 

10,00,000

 

  

10,00,000

695 Views

3.

A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in similar business is 10%. Find out the value of Goodwill by (i) Capitalisation of super profit method and (ii) Super profit method if the goodwill is valued at 3 years purchase of super profit. The assets of the business were Rs. 10,00,000 and its external liabilities Rs. 1,80,000.


(i) Calculation of good will by capitalisation of super profit method:

* Average profit earned by the firm = Rs 1,00,000 

* Capital employed = Asset – Liabilities

 

= 10,00,000 – 1,80,000= 8,20,000 

* Normal profit = capital employed* normal rate of return

 

= 8,20,000* 10% = 82,000 

* Super Profit = Average profit earned – Normal profit

 

= 1,00,000- 82,000 = 18000 

* Good will = Capitalisation of super profit = Super profit * 100/ Normal rate of return

 

=18000*100/10 =Rs 1,80,000/- 

(ii) Calculation of good will by super profit method:

 

Average profit earned by the firm = 1,00,000
Normal profit earned = capital employed * normal rate of return

Capital employed = asset – liabilities = 8,20,000
Normal profit = 820000* 10/100 =82,000 

Super profit = average profit – normal profit
= 1,00,000 – 82,000 = 18,000 

Goodwill valued at 3 years purchase of super profit = 18000* 3 = Rs 54000/-

 

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4.

Y Ltd. purchased furniture costing Rs. 1,35,000 from A. B. Ltd. The payment was made by issue of Equity Shares of Rs. 10 each at a discount of Rs. 1 per share. Pass necessary Journal entries in the books of Y Ltd. 


Journal Entries

Particulars

LF

Debit

Credit

 

Furniture a/c                                 Dr

              To A.B Ltd 

(Being furniture purchased from A.B Ltd)

 

 

 

1,35,000

 

 

 

 
 1,35,000

   15,000

 

 

 1,35,000

 

 

 

 

 

 
 150000

 

A.B Ltd a/c                                   Dr

Discount on issue of shares a/c      Dr 

              To Equity share capital a/c 

(Being issue of15000 fully paid equity shares of Rs 10 each at a discount Rs 1 per share.)

 

Working note: Number of equity shares to be issued=135000/9 (Price of a share after 1 Rs discount) = 15000 shares.

 

629 Views

5.

From the following item of Receipts & Payments A/c. of Young Ladies Club, prepare an Income and Expenditure Account for the year ended 31-3-2010.

                                                                                                                                                                                                                                                                        Rs.

Salaries paid                                                                                              50,000

Lighting and Heating                                                                                 5000    

Printing and Stationery (including Rs. 500 for the previous year)             3500                  

Subscriptions received (including Rs. 2,000 received in advance
and Rs 5,000 for the previous year)                                                          40,000                            

Net proceeds of Refreshment Room                                                          45,000

Miscellaneous expenses                                                                            16,000

Interest paid on Loan for half year                                                            1,200                                    

Rent and Rates (including Rs. 1,000 prepaid)                                         7,5000                                                                                     

Locker rent received                                                                                  4,500                                                                                                                                 

Additional Information:

Subscriptions in arrears on 31-3-2010 were Rs. 8,000 and Half year's interest on loan was also outstanding. 


Expenditure

 

Amount (Rs)

Income

 

Amount (Rs)

 

To

Salary paid

Lighting and heating

Printing and Stationary

Less

 

Miscellaneous expenses

Interest paid on Loan for half year

Add outstanding                                                                    

 










Rent and Rates

Less prepaid

 

To surplus a/c

 

 

 

 

 

3,500

500

 

50,000

5,000

 

 

3,000

 

16,000

 

 

2,400

 

 










6,500

7,600

By

Subscription received

Less received in advance

Less previous year

 

Add arrears

 









Net proceeds of Refreshment Room 

Locker rent received                                                                                        

 

 

40,000

 

2,000

 

5,000

 

 

 

 

 

 

 






41,000

 

45,000

 

4,500

 

 

 

 

1200

1200

33,000

8,000

 

 

 

 

7,500

1,000

 

 

 

 

90,500

90,500

 
742 Views

6.

State the two main rights that a newly admitted partner acquires in the firm. 


The two main rights a newly admitted partner acquires in a firm are:
i. Right to share the assets of the partnership firm; and
ii. Right to share the profits of the partnership firm

2012 Views

7.

What is the basis for preparing an Income and Expenditure Account in the case of Not-for-Profit Organizations. 


The Income and Expenditure Account in the case of not for profit organisations is prepared on accrual basis with the help of Receipts and Payments Account.

2158 Views

8.

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. The following was the Balance Sheet of the firm as on 31-3-2010. 

Liabilities

Amount Rs

Assets

Amount Rs

 

Capital        A

 

                  B

 

60,000

 

20,000

 

Sundry Assets

 

80,000

 

80,000

 

80,000

The profits Rs. 30,000 for the year ended 31-3-2010 were divided between the partners without allowing interest on capital @ 12% p.a. and salary to A @ Rs. 1,000 per month. During the year A withdrew Rs. 10,000 and B Rs. 20,000. Pass the necessary adjustment journal entry and show your working clearly.


Date

Particulars

LF

Debit (Rs)

Credit (Rs)

 

 

B’s capital a/c                                    Dr

 

                  To a’s capital a/c

 

(being interest on capital and salary unpaid adjusted.)

 

 

 

 

5280

 

 

 

5280

 

Working Notes

Calculation of opening Capital

PARTICULARS

A

B

 

Capital closing balance

Less profit

 

 

Add drawings

 

Capital opening balance

 

 

60,000

18,000

 

 

20,000

12,000

 

42,000

10,000

8,000

20,000

52,000

28,000

 

Calculation of Net amount to be adjusted:                          

Particulars

Partner A’s a/c

Partner B’s a/c

Firm a/c

Dr

Cr

Dr

Cr

Dr

Cr

Interest on capital

 

6,240

 

3,360

9,600

 

Salary to A

 

12,000

 

 

12,000

 

 

12,960

 

8,640

 

 

21,600

Total

12,960

18,240

8,640

3,360

21,600

21,600

Net amount to be adjusted

 

5280(Cr)

5280(Dr)

 

 

 

 

523 Views

9.

How does the market situation affect the value of goodwill of a firm?


The monopoly condition of a market and limited competition helps a firm to earn huge profit which will ultimately lead to higher value of goodwill.

572 Views

10.

From the following information of a club, show the amounts of match expenses and match fund in the Financial Statements of the Club for the years ended on 31st March, 2009 and 31st March, 2010.

Details                                                                               Amount Rs.

 

Match expenses (paid during the year 2009 - 2010)                                      30,000

Match Fund (as on 31-3-2009)                                                                     17,000

Donation for Match Fund (Received during the year 2009-2010                         9,000           

Proceeds from the sale of match tickets (Received during the year 2009-2010)  3,000


Balance sheet as on 31-3-2010

Liabilities

Amount (Rs)

Assets

Amount (Rs)

 

Match fund as on 31-3-2009                             

Add

Donation received during the year 09-10                                 

Proceeds from sale of match ticket during 09-10                      

                                                                                     

Less Match expenses during the period

 

 

Transfer to income and expenditure account.                            

 

17000

 

 

9000

 

 

3000

 

 

29,000

 

 

 

 

30,000

 

 

(1000)

 

 

Income and Expenditure a/c for the year ended 31-3-2010

Dr                                                                                                                             Cr

Expenditure

Amount (Rs)

Income

Amount (Rs)

 

To

Match Expenses

 

 

1,000

 

 

680 Views