# Plus Two Accountancy Model Question Paper 3

## Kerala Plus Two Accountancy Model Question Paper 3

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

General Instructions to Candidates

•  There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
•  Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• All questions are compulsory and only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.
• Malayalarn version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non programmable calculators are not allowed in the Examination Hall.

Answer all questions from 1 to 3. Each carries 1 score.

Question 1:
Non profit organisations trial balance. (3)
a. Debit
b. Credit
c. Equal balance
d. Suspense a/c

Question 2:
Change in a agreement (relationship among the partners) lead to (1)

a. Reconstitution
b. Dissolution
c. Reconstruction
d. Amalgamation

Question 3:
Ram and Manu are partners in a business. Their capitals at the end of the year were ₹48,000 and ₹36,000 respectively. During the year ended 31st March, 2012 Ram’s drawings and Manu’s drawings were ₹8,000 and ₹12,000 respectively. Profit (before charging interest on capital) during the year was ₹32,000. Calculate the interest on the capital @ 5% for the year ended 31st March, 2012. (2)

Answer any 2 questions from 4 to 6, each carries ‘2’ scores.

Question 4:
A and B are partners in a firm sharing profits and losses in the ratio of 2:1. They admit ‘C’ for (1/6)th in future profits. Calculate the new ratio and sacrificing ratio. (5)

Question 5:
The profit of a firm for the last five years are (3)

 Year 2000 2001 2002 2003 2004 Profit 60,000 70,000 80,000 40,000 30,000 Weight 1 2 3 4 5

Question 6:
Give any four differences between Income & Expenditure A/c. and Receipt and Payment A/c. (2)

Answer any 5 questions from 7 to 12, each carries ‘2’ scores.

Question 7:
On what account Realisation Account differs from Revaluation Account. (5)

Question 8:
On 1st Jan 2004, Arun and Anil entered into partnership contributing ₹20,000 and ₹30,000 respectively and share profit in the ratio of 1: 2. Arun is allowed a salary of ₹6000 per year.
Interest on capital is to be allowed at 5% p.a. Anil is entitled to receive a commission of ₹2000. During the year Anil with-drew ₹2000 and Arun ₹2500. Interest on the same being ₹40 and ₹50 respectively.
Profit in 2004 before the above adjustement was ₹15000. Prepare partner’s capital A/c and PI L appropriation A/c. (7)

Question 9:
A, B and C are in partnership sharing profits and losses at the ratio of 5 : 3 : 2. The balance sheet of the firm on 31.12.2011 was as follows :

On 1.1.2012, Awants to retire, Band C agreed to continue at 2:1. Joint Life Policy was taken on 1.1.2006 for ₹1,00,000 and its surrender value as on 31.12.2011 was ₹25,000. For the purpose of A’s retirement goodwill was raised for ₹1,00,000. Sundry Fixed Assets was revalued for ₹1,10,000. But B and C did not prefer to show such increase in assets in the Balance Sheet. Also they agreed to bring necessary cash to discharge 50% of the A’s claim, to make the bank balance ₹25,000 and to make their capital proportionate. Prepare necessary journal entries. (7)

Question 10:
Manu and Vinu are partners sharing profits and losses in the ratio of 3 : 2. The following balances were extracted from the books of acfcount for the year ended March 31,2015. (5)

Prepare the final accounts for the year ended March 31, 2015 firm taking into consideration the following.
a. Stock on March 31, 2015 was ₹40,500.
b. Provide 5% on debtors towards provision for doubtful debts. ’
c. Outstanding salaries were ₹2,900
d. Interest on capitals is allowed at 6% per annum and interest on drawings is also charged at 6% per annum.
e. Kapil is entitled to a salary of ₹1,750 per annum.
f. Write off Larjd and buildings at 5%, Furniture at 20% and Plant and Machinery at 10%.

Question 11:
What do you understand by terms ‘key field’ ‘primary key’ and ‘secondary key’ in a database?
Answer all questions from 12 to 13, each carries ‘4’ scores.

Question 12:
From the following particulars, prepare income and expenditure A/c. (4)

Fee collection including ₹80,000 on a account of previous year                      – 5,20,000
Fee for the year outstanding                                                                                      – 30,000
Salary paid including ₹5,000 on account of the previous year                          – 68,000
Salary out standing at the end of the year                                                              – 3,000
Entertainment expenses                                                                                            – 8,000
Tournament expenses                                                                                                 – 25,000
Meeting expenses                                                                                                         – 18,000
Travelling expenses                                                                                                      – 7,000
Purchase of books and periodicals including 31,000 for purchase Of books : 40,000
Rent                                                                                                                                  – 15,000
Postage, telegrams and telephones                                                                            – 6,000
.Printing & Stationery                                                                                                   – 18,000

Answer any 2 questions from 13 to 15, each carries ‘5’ scores.

Question 13:
A, B and C commenced Business on 1st Jan 2014 with capital of 50,000,40,000 and 30,000 respectively. Profit and loss are shown in the ratio of 4 : 3 : 3. During 2014 and 2015 they made profit ₹20,000 and ₹25,000 respectively each partner withdrew ₹5,000 per year. On 31st Dec 2015 they decides to dissolve the firm, creditors and cash on that date were 12,000, 2000 respectively. The assets realised 1,50,000,creditors were settled for 1.1,500 and realisation expense were 500. Prepare realisation A/c,Capital A/c and Cash A/c (5)

Question 14:
Explain various methods for the treatment of goodwill on the admission of a new partner? (5)

Question 15:
Dowell & Co. is a partnership firm with partners Mr. A, Mr. B and Mr. C sharing profits and losses in the ratio of 10 : 6 : 4. The balance sheet of the firm as at 31st March, 2011 is as under : Mr.

April, 2011. For this purpose, the following adjustments are to be made:
a. Goodwill is to be valued at ₹1 lakh but the same will not appear as an asset in the books of the reconstituted firm.
b. Buildings and plant and machinery are to be depreciated by 5% and 20% respectively. Investments are to be taken over by the retiring partner at 15,0OO. Provision of 20% is to be made on debtors to cover doubtful debts.
c. In the reconstituted firm, the total capital will be ₹2 lakhs which will be contributed by Mr. A, Mr. C and Mr. D in their new profit sharing ratio, which is 2 : 2 : 1.
a. The surplus funds, if any, will be used for repaying bank overdraft.
b. The amount duç to retiring partner shall be transferred to his loan account

Prepare:

• Revaluation account;
• Partners’ capital accounts;
• Bank account; and
• Balance sheet of the reconstituted firm as on 1st April, 2011

Answer the following. It carries 8 score

Question 16:
a. Prepare Income and expenditure Account and Balance sheet for the year ending 31- 03 -2015 from the following information:

1. There are 1,800 members each paying an annual subscription of Rs.200. Rs. 8,000 were in arrears for 2013-14 as on April 1, 2014.
2. On 31-03-2015 the rates were prepaid to June 2015, the charge paid every year being Rs. 24,000.
3. There was an outstanding telephone bill Rs.1400 on March 31,2015.
4. Outstanding sundry expense as on March 31, 2014 totalled Rs.2800.
5. Stock of stationery 31-03-201.4 was Rs.2000; on 31-03-2014 it was Rs.3600.
6. On 31-03-2014, Building stood at Rs. 400,0oo and it was subject to depreciation @ 2.5% p.a.
7. Investment on 31-03-2014 stood at Rs.800000.
8. On 31-03-2015, income accrued on investments amounted to Rs.1500 (8)

Agent

Reconstitution

Statement Showing the Calculation of Opening Capitals and Interest

 Particulars Ram Manu Closing Capitals (+) Drawings Already Debited (-) Profit Already Credited Opening Capital or Capital in the Beginning Interest on Capitals @ 5% per annum 48,000 8,000 56.000 40,000 40,000×5/100 = ₹2,000 36,000 12,000 48.000 32,000 32,000×5/100 = ₹1,600

C’s share of profit =1/6 ;
Remaining share of profit = 1- $$\frac { 1 }{ 6 }$$ = $$\frac { 5 }{ 6 }$$
A’s new ratio = $$\frac { 5 }{ 6 }$$ x $$\frac { 2 }{ 3 }$$ = $$\frac { 10 }{ 18 }$$
B’s new ratio =$$\frac { 5 }{ 6 }$$ x $$\frac { 1 }{ 3 }$$ = $$\frac { 5 }{ 18 }$$
C’s new ratio = $$\frac { 1 }{ 6 }$$ or $$\frac { 3 }{ 18 }$$
New ratio = 10 : 5 : 3
Sacnfcing ratio = Old ratio – New ratio
A’s sacrificing ratio = $$\frac { 2 }{ 3 }$$ – $$\frac { 10 }{ 18 }$$ = $$\frac { 12 }{ 18 }$$ – $$\frac { 10 }{ 18 }$$ = $$\frac { 2 }{ 18 }$$
B’s sacrificing ratio = $$\frac { 1 }{ 3 }$$ – $$\frac { 5 }{ 18 }$$ = $$\frac { 6 }{ 18 }$$ – $$\frac { 5 }{ 18 }$$ = $$\frac { 1 }{ 18 }$$
Sacnfcing ratio = 2: 1

 Year Profit Weight Product 2000 60,000 1 60,000 2001 70,000 2 1,40,000 2002 80,000 3 2,40,000 2003 40,000 4 1,60,000 2004 30,000 5 1,50,000

Total weight = 15;
Total product = 7,50,000
Weighted average profit = 7,50,000/15 50,000;
GoodwIll = 50,000 x 3 = 1,50,000

 Receipts & payment account Income & Expenditure Account It is a real account It includes both capital and revenue items It is like cash book It ignores non-cash items It is a nominal a/c It includes only revenue items It is like P&L a/c It records all non-cash items

Difference between Realisation A/c & Revaluation A/c

 Realization Revaluation Prepared at the time of dissolution Prepared at the time of admission, retirement, death Prepared to find out P/L on A/c of realisation Prepared to find out P/L on revaluation of assets and liabilities All assets and liabilities are recorded liabilities at book value Only changes in value of assets and are recorded Realisation expenses are shown No expenses are shown

Key field: Two common field used in a rela tionship between tables are called the key field.

Primarylcey: The Primary Key is the unique identifier for each record in a table. Access will not allow duplicate entries in a Primary Key field. By default, Access sets the first field in the table as the Primary Key field.

Secondary Key: A table may have one or more choices for the primary key. Collectively these are known as candidate keys one is selected as a primary key those not selected are known as secondary keys or alternate keys.

At the time of admission new partner has to bring certain amount to get share in future profit,this amount is called goodwill.

Treatment of goodwill
New partner is required to compansated bythe existing partners by giving him a share in future profit.

1. When new partner brings his share of goodwill in cash.
2. Goodwill shared by the old partners in their sacrificing ratio.

Case 1:
a.When the amount of goodwill is paid privately (outside the business)
– No journal entry
b.When the new partner bring his share of goodwill en cash and retained in the business

Journal entry:
1. Cash A/c                         Dr
[bring goodwill in cash]

To Old partners Capital Nc
[distribution of goodwill]

c. When the amount of goodwill brought in by the new partner is withdrawn by the old partners

Journal entry:

1. Cash A/c                               Dr
(brings goodwill in cash]

To Old partner’s Capital A/c
(distribution of goodwill]

3. Old partner’s Capital A/c .                  Dr
To Cash A/c
(with drawal of goodwill in cash]

Case 2: .
When new partner brings his share of good will in kind
Journal entry:

1. AssetA/c Dr
[goodwill brought in asset]

To Old partner’s Capital A/c
[distribution of goodwill]

Case 3:
When a new partner brings only a portion of goodwill in cash
Journal entry:
1. CashA/c                        Dr
New partner’s Capital A/c Dr
To old partner’s Çapital A/c

Case 4:
When the new partner is not in a position to bring in cash
New partner’s Capital A/c                Dr
To old partner’s Capital A/c

Case 5:
When the goodwill is existing in the books