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12TH COMMERCE – BOOK-KEEPING & ACCOUNTANCY

Final Test: 01 Marks: 80
Time: 3 Hours

Q.1.
(A) Select the correct option from the following and rewrite the sentences: [5 Marks]
1. The Indian Partnership Act is in force since ……………………...
(a) 1932 (b) 1942 (c) 1933 (d) 1948
2. The closing balance of Receipts and Payments Account usually represent ……………………...
(a) surplus (b) deficit (c) cash and bank balance (d) capital
3. The profit or loss from revaluation on retirement of partner is shared by ……………………...
(a) all the partners (b) the remaining partners
(c) only retiring partner (d) none of the above
4. The ratio by which existing partners are benefited ……………………...
(a) capital ratio (b) profit ratio (c) gain ratio (d) sacrifice ratio
5. Shareholders get ……………………... on shares.
(a) interest (b) commission (c) rent (d) dividend

(B) Find the odd one: [5 Marks]

1. Wages, Salary, Import duty, Royalty
2. Machinery, Furniture, Computers, Salaries
3. General reserve, Creditors, Machinery, Capital
4. Bills receivable, Bills payable, Endorsement of bill, Cash memo
5. Equity shares, Preferential shares, Debentures, Investments

(C) Answer in one sentence only: [5 Marks]

1. What is the main objective of the partnership firm?
2. What do you mean by 'Not for Profit' concern?
3. What is Sacrifice Ratio?
4. When is Realisation Account opened?
5. How to view reports in Tally?

(D) Do you agree or disagree with the following statements: [5 Marks]

1. Partners are entitled to get Salary or Commission.
2. Not for profit concerns do not have profit motive.
3. Retiring partner is not entitled to share in general reserve and accumulated profit.
4. A deceased partner is not entitled to Goodwill of the firm.
5. Financial statements include only Balance Sheet.

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Q.2. Yesha and Kriya were in partnership sharing profits and losses in the proportion of 3 : 1 respectively. Their
Balance Sheet on 31st March, 2020 stood as follows:
Balance Sheet as on 31st March, 2020
Liabilities Amt. (`) Amt. (`) Assets Amt. (`) Amt. (`)
Sundry Creditors 80,000 Cash 80,000
Bill Payable 20,000 Sundry Debtors 64,0000
Bank Overdraft 22,000 Land & Building 32,000
Capital A/cs: Stock 40,000
Yesha 1,20,000 Plant and Machinery 60,000
Kriya 40,000 1,60,000 Furniture 22,000
General Reserve 16,000 _______
2,98,000 2,98,000
They admit Krisha into partnership on 1 April, 2020. The terms being that:
1. She shall have to bring in ` 40,000 as her capital for 1/5 share in future profits and ` 20,000 as her
share of Goodwill.
2. A provision for 5% doubtful debts to be created on sundry debtors.
3. Furniture to be depreciated by 20%.
4. Stock should be appreciated by 5% and Building be appreciated by 20%.
5. Capital A/c of all partners be adjusted in their new profit sharing ratio through cash account.
Prepare: Profit and Loss Adjustment A/c, Partners' Capital A/c, Balance Sheet of new firm. [10 Marks]

OR

Q.2. A, B and C are partners sharing profits and losses in 3 : 2 : 1 respectively and their Balance sheet as on 31st
March, 2020 is as follows:
Balance Sheet as on 31st March, 2020
Liabilities Amt. (`) Assets Amt. (`)
Capitals: Bank 27,000
A 60,000 Debtors 45,000
B 45,000 Building 30,000
C 30,000 Investment 75,000
Creditors 11,000
Bills Payable 6,000
Loan 25,000 _______
1,77,000 1,77,000
C retired on 1st April, 2020 on the following terms:
1. Building and Investment to be appreciated by 5% and l0% respectively.
2. Provision for Doubtful Debts to be created at 5% on Debtors.
3. The provision of ` 1,500 be made in respect of Outstanding Salary.
4. Goodwill of the firm is valued at ` 45,000 and partners decide that goodwill should be written back.
5. The amount payable to the retiring partner be transferred to his Loan A/c.
Prepare: Profit and Loss Adjustment A/c, Partners' Capital A/c, Balance Sheet of new firm. [10 Marks]

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Q.3. Hetvi, Punita and Monu were in partnership sharing profits and losses in the ratio 2 : 2 : 1. They decided to
dissolve their partnership firm on 31st March, 2020 and their Balance Sheet on that date stood as:
Balance Sheet as on 31st March, 2020
Liabilities Amt. (`) Assets Amt. (`)
Capital: Plant 2,40,000
Hetvi 1,80,000 Debtors 90,000
Punita 1,20,000 Stock 1,50,000
Monu 60,000 3,60,000
Loan 24,000
Sundry Creditors 18,000
Bank Overdraft 78,000 _______
4,80,000 4,80,000
In was agreed that:
1. Hetvi to discharge Loan and to take Debtors at book value.
2. Plant realised ` 2, 70,000.
3. Stock realised ` 1,44,000.
4. Creditors were paid off at a discount of ` 90.
Show Realisation Account, Partners' Capital Account and Bank Account. [10 Marks]

OR

Q.3. Parul owed Alka ` 36,000, Parul accepted a bill drawn by Alka for the amount at 4 months. Alka endorsed
the same bill to Bhumi. Before due date, Parul approached Alka for renewal of bill. Alka agreed on
condition that ` 12,000 be paid immediately together with interest on the remaining amount of 8 % p. a.
for 3 months and Parul should accept a new bill for the balance amount. These arrangements were carried
through. However, before the due date Parul became insolvent and only 50 % of the amount could be
recovered from her estate.
Give Journal Entries in the books of Alka. [10 Marks]

Q.4. Bhadresh Co. Limited issues 4000 Equity shares of ` 100 each payable as ` 30 on application, ` 30 on
allotment, ` 40 on first and final call.
All the shares were subscribed and duly allotted. Company made all the calls. All cash was duly received
except the first and final call on 200 equity shares. These shares were forfeited by company and were re-
issued as fully paid for ` 75 per share. Show the Journal Entries in the books of Bhadresh Co. Limited.
[8 Marks]
OR

Q.4. Give the points of Difference: Manual Accounting and Computerised Accounting. [8 Marks]

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Q.5. Het, Heet and Hir are partners sharing profits and losses in the ratio 5 : 3 : 2 respectively. Their Balance
Sheet as on 31st March, 2020 was as follows:
Balance Sheet as on 31st March, 2020
Liabilities Amt. (`) Assets Amt. (`)
General Reserve 50,000 Goodwill 1,00,000
Creditors 2,00,000 Loose Tools 1,00,000
Unpaid Rent 50,000 Debtors 3,00,000
Capital Accounts: Livestock 2,00,000
Het 2,00,000 Cash 50,000
Heet 1,50,000
Hir 1,00,000 ________
7,50,000 7,50,000
Hir died on 31st July, 2020 and the following adjustments were agreed as per partnership deed:
1. Creditors have increased by ` 20,000
2. Goodwill is to be calculated at 2 years purchase of average profits of 5 year.
3. The profits of the preceding 5 years was:
2015-16 ` 1,80,000 2018-19 ` 1,00,000
2016-17 ` 2,00,000 2019-20 ` 1,00,000 (Loss)
2017-18 ` 1,20,000
Hir's share in it was to be given to her.
4. Loose tools and livestock were valued at ` 1,60,000 and ` 2,40,000 respectively.
5. R.D.D. was maintained at ` 20,000.
6. Commission ` 4,000 p.m. was payable to Hir. Profit for 2019-20 was estimated at ` 90,000 and Hir’s
share in it up to the date of her death was given to her.
Prepare: Revaluation A/c, Hir’s Capital A/c showing the amount payable to her executors. [8 Marks]

OR

Q.5. Prepare Comparative Income Statement of Noha Limited for the year ended 31.3.2019 and 31.3.2020.
Particulars 31.03.2019 (`) 31.03.2020 (`)
Sales 4,00,000 6,00,000
Income Tax 50% 50%
Cost of Sales 2,40,000 1,60,000
Indirect Expenses 16,000 24,000
[8 Marks]

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Q.6. Jyot Art Circle, a newly established concern has presented the following information:
Dr. Receipts and Payments Account for the year ending 31.03.2020 Cr.
Receipts Amt. (`) Amt. (`) Payments Amt. (`) Amt. (`)
To Admission Fees 44,000 By Furniture 24,000
To Subscriptions 80,000 By Stationery 8,000
To Donations 36,000 By Office Rent 5,200
By Newspapers & Periodicals 600
By Telephone Expenses 1,120
By Investments 46,000
By Balance c/d
Cash in Hand 15,080
_______ Cash at Bank 60,000 75,080
1,60,000 1,60,000
Adjustments:
1. Subscription outstanding for the year was ` 10,000.
2. Depreciate Furniture @ 10% p.a.
3. Full amount of admission fees and 50% donations are to be capitalised.
You are required to prepare Income and Expenditure Account for the year ending 31.03.2020 and Balance
Sheet as on that date. [12 Marks]

Q.7. Adil and Naval are partners in Partnership Firm sharing Profits and Losses equally. You are required to give
effects of Adjustments in Profit & Loss A/c and Balance Sheet with the help of following information.
Debit Balances Amt. (`) Credit Balances Amt. (`)
Insurance 30,000 Capital A/cs:
Land and Building (Addition of 1,00,000 Adil 1,00,000
` 40,000 w.e.f. 1st July, 2019)
Salaries 10,000 Naval 1,00,000
Export Duty 5,000 110 % Bank Loan (taken on 1st Oct., 2019)
Interest 2,000 Interest 3,000
Furniture 80,000 Bills Payable 16,000
Debtors 52,000 _______
2,79,0000 2,79,0000
Adjustments:
1. Gross profit amounted to ` 69,000.
2. Insurance paid for 15 months w.e.f. 1.4.2019.
3. Depreciate Land and Building at 10% p.a. and Furniture at 5% p.a.
4. Write off ` 2,000 for Bad debts and maintain R.D.D. at 5% on Sundry debtors.
5. Closing stock is valued at ` 69,000. [12 Marks]

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