Plus Two Accountancy Model Question Paper 4

Kerala Plus Two Accountancy Model Question Paper 4

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.
• Read questions carefully before you answering.
•  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:
When premium paid on Joint Life Policy is treated as an investment not as a business expense, it is transferred to (1)

a. Trading Account
b. Profit and Loss Account
c. Joint Life Policy Account
d. Joint Life Policy account and Balance Sheet

Question 2:
In non-profit organizations excess of asset over liabilities is called (1)

a. Capital block
b. General fund
c. Shareholders fund
d. Capital

Question 3:
Receipts and payment accounts includes all receipts and payments of (1)


a. Capital nature
b. Revenue nature
c. Cash nature
d. None of these

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

Question 4:
What are the basic concept of Spreadsheet? (3)

Question 5:
R& S are Partners sharing profits in the ratio 5:3. They admit T for 1/7^th share in the profits. Calculate sacrificing ratio. (2)

Question 6:
Riya, Liya and Niya are partners sharing profits in the ratio of 1 : 2 : 3. Niya retires and her capital, after making adjustments for reserves and profits on revaluation stands at ₹ 4,40,000. Riya and Liya agreed to pay her ₹5,00,000 in full settlement of her claim.
Record necessary journal entry for the treatment of goodwill, if the new profit sharing ratio is decided at 1 : 3. (3)

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

Question 7:
During the year 2009 the expenses actually paid were Rs. 5,500. Find out the expenses chargeable to income and expenditure account for the year ended 2009. (2)

expenses on 31-12-08                                ₹ 500
Prepaid expenses on 31-12-09                    600
outstanding expenses on 31-12-08            750
Outstanding expenses on 31-12-09            650

Question 8:
The following was the Balance Sheet of Om & Co. in which X, Y, Z were partners sharing profits and losses in the ratio of 1 : 2 : 2 as on 31.3.2011. Mr. Z died on 31^st December, 2011. His account has to be settled under the following terms. (5)

Goodwill is to be calculated at the rate of two years purchase on the basis of average of three years profits and losses for the three years were detailed as below :

Year ending on                           profit/loss 
31.3.2011                                           30.000
31.3.2010                                          20.000
31.3.2009                                       (10,000) Loss

Profit for the period from 1.4.2011 to 31.12.2011 shall be ascertained proportionately on the basis of average profits and losses of the preceding three years.

During the year ending on 31:3.2011 a car costing ?40,000 was purchased oh 1.4.2010 and debited to travelling expenses account on which depreciation is to be calculated at 20% p.a. This asset is to be brought into account at the depreciated value.
Other values of assets were agreed as follows :
Stock at ₹16,000, building at ₹1,40,000, computers at ₹50,000; investments at ₹6,000. Sundry debtors were considered good. Your are required to :

i. Calculate goodwill and Z’s share in the profits of the firm for the period 1.4.2011 to 31.12.2011.
ii. Prepare revaluation account assuming that other items of assets and liabilities remained the same.

Question 9:
Riya, Shreya and Niya are partners sharing profits in the ratio of 1 : 2 : 3. Niya retires and her capital, after making adjustments for reserves and profits on revaluation stands at ₹4,40,000. Riya and Shreya agreed to pay her ₹5,00,000 in full settlement of her claim. Record necessary journal entry for the treatment of goodwill ,if the new profit sharing ratio is decided at 1 : 3. (5)

Question 10:
Balance sheet of L and R who share profits and losses in the ratio of 3: 2 as at 31st March, 2014 was (5)


They agreed to take K as a partner from 1 st April,2014 for 1/5

Question 11:
Raju and Ramu are partners in a firm sharing profits and losses in the ratio of 3 : 2. The balance in their capital and current accounts as on 1st April, 2006 were as under: (5)

The partnership deed provides that Raju is to be paid salary @ ₹500 per month whereas, Ramu is to get a commission of ₹40,000 for the year. Interest on capital is to be credited at 6% per annum. The drawings of Raju and Ramu for the year were ₹30,000 and ₹10,000, respectively. The net profit of the firm before making these adjustments was ₹2,49,000. Interest on Raju’s drawings was ₹750 and Ramu’s drawings was ₹250. Prepare profit and loss appropriation account and partners’ capital and current accounts.

Answer all questions from 12 to 13, each carries ‘4’ scores.

Question 12:
What are the difference between dissolution of partenership and dissolirtion of a firm? (5)

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

Question 13:
Melvin, Mark and Maju are partners sharing profits in the ratio of 4 : 3 : 2. Their Balance Sheet as on 31st December 2003 was as follows:

Mark died on 30th June, 2004 and according to the agreement his legal heirs were entitled to the following :

1. Capital to the credit of Mark at the time of death and interest @ 6 p.a.
2. His share in profits till dteath on the basis of average profit of last 3 years which were ₹12,000, 10,000,14,000 respectively.
3. His share of goodwill in the firm which was valued at ₹54,000.
4.  His share in Reserve fund Pass necessary journal entries to give effect to the above and prepare Mark’s

Question 14:
P, Q and R are partners in a firm. Q retires. On his date of retirement, Rs. 60,000 bee- omes due to him. P and R promise to pay him in instalments every year at the end of the year.
Prepare Q’s Loan A/c. in the following cases:
a. When the payment is made four yearly instalments plus interest @ 12% p.a. on the unpaid balance.
b. When they agree to pay three yearly instalments of Rs. 20,000 including interest, @12%p.a.on the outstanding balance during first three years and the balance including interest in the fourth year. (7)

Question 15:
Red,White and Black shared profits and losses in the ratio of 5 : 3 : 2. They took out a joint life policy in 2007 for ₹50,000, a premium of ₹3,000 being paid annually on 10^th June. The surrender value of the policy on 31st December of various year’s was as follows: 2007 nil: 2008 ₹900: 2009 ₹2,000; 2010 ₹3,600. Black retires on 15^th April, 2011. Prepare ledger accounts assuming no Joint Life Policy Account is maintained. (7)

Answer the following. It carries 8 score

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

The College had the following assets as on 31^st March 2008.
Furniture ₹17,500, Land and Building ₹80,000,
Library books ₹12,000, Investments ₹5,000 and Outstanding tuition fees ₹1,100.
Provide for depreciation on the closing balances of the following assets :
Land and Building @ 5%; Furniture @ 15% and Library books @ 20%.

Answers

Answer 1:
Joint Life Policy account and Balance Sheet

Answer 2:
General fund

Answer 3:
Revenue nature

Answer 4:

Answer 5:
Sacrificing ratio = Old ratio – New ratio

Answer 6:

Answer 7:

Answer 8:

Answer 9:

Answer 10:

Working Note
Calculation of Hidden Goodwill .                                                                                                                            Amt (₹ )
Net worth (or total capital) of new firm on the basis of capital brought
in by K (₹ 6,0O0 x 5/1)                                                                                                                                                30,000
(-) Net worth of the new firm (Adjusted capitals of the old partners + incoming partner’s capital)
[₹ 4,800 +₹ 3,2O0+₹ 3,5O0 for reserves+ ₹2,000 for profit and loss AIc -1 ,000 for advertisement expenditure – ₹ 2,500 for existing goodwill) + ₹ 6,000]                                                                                                                                      16,000
Value of goodwill                                                                                                                                                             14,000

Answer 11:

Answer 12:

Answer 13:

Answer 14:
a. When payment is made in four yearly instalments plus interest

b. When payment-is made in three yearly installment of Rs. 20,000 each including interest.

Answer 15:

Answer 16:
Income and Expenditure Account of Modern College

Rs. 8o,ooo( 4 x 1 x Rs. 20,000) Hence based on then share in profits, the capital of Anju & Manju will be
Anju’s Capital = \(\frac { 2 }{ 4 }\) of 8o,ooo = Rs. 40,000
Manju’s Capital = \(\frac { 1 }{ 4 }\) of 80,000= Rs. 20,000
The capital of Anju & Manju after all adjustments have been made, are Rs. 45,000 & Rs. 15,000 respectively. Hence, Anju will withdraw Rs. 5,000 (Rs. 45,000-Rs-40,000) from the firm whereas Manju will contribute additional amount of Rs. 5,000/- (Rs. 20,000-Rs.15,000/-)

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