HSC ACCOUNTS MODEL QUESTION PAPER FOR BOARD EXAM

AS PER NEW SYLLABUS MARKS: 80 MARKS

Q1. Attempt any THREE of the following.                                            (15 marks)

A. Answer in one sentence only: (5 MARKS)

          

  (1)        What is Partnership Deed?

Ans:     A partnership deed is a written agreement duly stamped, signed and registered document containing the terms and conditions of the partnership.

(2) What is Bill of Exchange?

Ans. A bill of exchange is a negotiable instrument containing an unconditional order signed by the maker directing a certain person to pay a certain sum of money only to the bearer of the instrument.

(3)        What do you mean by Scrap Value of an asset?

Ans:     The net amount which is expected to be realised on the final disposal of a fixed asset is called ‘scrap value’.

  (4)        What are Noting Charges?

Ans:     Noting charges are the fees charged by the Notary Public for noting the dishonour on the face of the bill and in his official register.

(5) What is Single Entry System?

Ans. It is an unscientific system of recording transactions where only one aspect of the transaction is recorded.

B. Write the word / Term / Phrase which can substitute each of the following statement:

1. A person who draws a bill of exchange. (Drawer)

2. Winding up of partnership business. (Dissolution of partnership firm)

3. The credit balance of Profit and Loss Account.  (Net Profit)

4. An excess of assets over liabilities. (Capital)

5. The account which shows change in the values of assets. (Revaluation Account)

C. Select the most appropriate alternative from the given below and rewrite the statement:  (5 MARKS)

1. There are ______ parties to a bill exchange. (Three)

a. Three            b. Two  c. Four d. Five

2. In case of dissolution assets and liabilities are transferred to ____ account. (Realisation)

a. Bank b. Partner's Capital        c. Realisation    d. Partner's Current.

3. When goodwill is withdrawn by old partners _________ Account is credited. (Cash or Bank)

a. Cash or bank b. Capital          c. Revaluation   d. Profit and Loss adjustment.

4. Generally incomplete records are maintained by ______ (Trader)

a. Trader           b. Company      c. Society                     d. Government 

5. Excess of income over expenditure is termed as _____(Surplus)

a. Deficit,          b. Profit            c. Surplus         d. Loss

D. State whether the following statements are True or False.  (5 MARKS)

1. Single entry system is based on certain rules and regulations. (False)

2. Not for profit concern do not have profit motive.  (True)

3. Bill of exchange is an instrument in writing, containing an unconditional order. (True)

4. A bill of exchange is signed by the person on whom it is drawn. (True)

5. Realisation loss is not transferred to insolvent partner's capital account. . (False)

E. Prepare bill of exchange from the following details.    (5 marks)

      Drawer -    Shekhar Desai, Shastri Road, Mahad.           

Drawee –       Sharad Verma, Narayan Peth, Pune.    

Amount -        Rs. 3500/-

Period -        3 months.

Payee -       Mukund Pande, Panvel

Date of Bill Drawn –      21st June, 2007

Date of Acceptance -     23^rd June, 2007

Q2. Following is the records of Mr. Raj were kept on single entry system. ( March 2009 board exam questions) (MODIFIED)

Particulars	31.3.2013	31.3.2014
Stock Furniture Plant and machinery Loan taken Bank balance Debtors Creditors	15000 53500 42500 21000 1900 43000 18000	14000 44000 55500 21000 2100 35000 14900

Mr. Raj invested Rs. 4000 in the business. Also he had withdrawn Rs. 15000 for his private expenses from business. Rs. 500 to be provided for bad debts. Depreciate plant and machinery @5% and furniture @ 5%.

Prepare : (1) statement of affairs as on 31.3.2013. (2) statement of affairs as on 31.3.2014. (3) statement of profit and loss for the year ended on 31.3.2014.

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OR

Q2. A. State the Objectives of Analysis of Financial Statements.(4)

(B) What is Cash Flow Analysis? (4)

Q3. The Balance Sheet of Rajkumar and Rajendra kumar as on 31st March, 2012 is set out below, they share profits and losses in the ratio of 2:1.
Balance sheet as on 31st March, 2012

Liabilities	Amount Rs.	Assets	Amount Rs.
Capital A/c Rajkumar Rajendrakumar General Reserve Creditors	200000 150000 120000 80000	Buildings Furniture Stock Debtors Cash Profit and Loss A/c	100000 30000 60000 300000 30000 30000
	550000		550000

They agreed to admit Dhirajkumar on 1st April, 2012 as a partner into the firm on the following terms.

1.    Dhirajkumar to bring Rs. 60000 as capital and Rs. 45000 as goodwill, which is to be retained in the business. He will be entitled to 1/4 th share of profit of the firm.

2.    50% of General Reserve is to remain as Reserve for doubtful debts.

3.    Furniture is to be depreciated by 5%

4.    Stock is to be revalued at Rs. 65,000.

5.    Creditors of Rs. 5000 are not likely to claim and hence should be written of.

6.    Rent of Rs. 2,000 due but not received has not been recorded in the books.

Pass necessary journal entries in the books of new firm and prepare Balance sheet of the new firm.

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OR

Sanil, Nitish, Sapna were partners in a firm sharing profits and losses in the proportion of 1/2 , 1/3, 1/6 respectively. Their Balance Sheet as on 31st March, 2012 was as follows:

Balance Sheet as on 31 - 03 - 2012

Liabilities	Amount	Assets	Amount
Bills Payable Capitals: Sanil Nitish Sapna	30000 80000 50000 30000	Machinery Furniture Sundry Assets Stock Debtors Bank	40000 5000 60000 30000 32000 23000
	190000		190000

Sapna decided to retire on 1st April, 2012 on following terms:

1. Goodwill of the firm will be valued at Rs. 30,000.

2. Furniture war taken over by Sanil for Rs. 4,700.

3. Make a Provision for unpaid expenses Rs. 1,700.

4. Out of the amount due to Sapna Rs. 7,500 to be paid by cheque and the remaining amount to be transferred to her loan account.

Prepare Profit and Loss Adjustment Account, Partners’ Capital Accounts and Balance sheet of New firm on 1st April, 2012.

4. Anjali of Nagpur sold goods worth Rs. 25,000 to Rupali of Amaravati. On next day Ruapali paid Rs. 10,000 in cash and accepted two months bill for the balance drawn by Anjali. Anjali discounted the bill at 12% p.a. with her bank. Before due date, Rupali finds herself unable to make payment of the bill; and requests Anjali to renew it. Anjali accepts the proposal on the condition that Rupali should pay Rs. 5,000 in cash and accept new bill for one month along with interest Rs. 200 for the balance. These arrangements were carried through. The new bill was met on due date. Give journal entries in the books of Anjali.

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Q5. X and Y are equal partners. 

The following is their Balance Sheet as on 31st March, 2012.

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
X’s Capital Y’s Capital Reserve Fund X’s Loan Creditors		40000 30000 8000 2000 15000	Building Machinery Furniture Debtors Less: R.D.D. Stock Investments Commission Receivable Bank	8800 - 800	30000 10000 12000 8000 20000 4000 1000 10000
		95000			95000

The firm was dissolved on 31st March, 2012

(i) The Assets realised as follows:

Stock Rs. 19,000, Debtors Rs. 7,500, Machinery Rs. 11,000, Building Rs. 14,000

ii. Y took over the investments Rs. 5000 and Furniture at Book Value.

iii. X agreed to accept Rs. 1500 in full settlement of his Loan Account.

iv. Dissolution expenses amounted to Rs. 2000.

v. Commission Receivable could not be recovered.

Prepare Realisation Account, X’s Loan Account, Capital Accounts and Bank Account.

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Q6. From the following Receipt and Payment account of Patan Sports Association, Patan and the adjustments. You are required to prepare Income and Expenditure Account for the year ended 31^st March, 2004 and a Balance sheet as on that date.    (12)

            Receipts and Payments Account for the year ended 31^st March 2004.

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Balance b/d	4160	By Salaries	5500
To Subscription:		By Entertainment Expenses.	2580
2003 – 04	16000	By Lighting	1000
2004 – 05	412	By General Expenses	1536
To Donation	2000	By Taxes	500
To Receipts from Entertainment	3644	By Investments	12000
To Interest on Investment	324	By Printing and Stationery	944
To Entrance Fees	4500	By Expenses of 2002 – 03	2400
To Prize Fund	3000	By Fixed Deposit	4000
		By Bank Balance	3000
		By Balance C/d	580
	34040		34040

Adjustments:

(1)           There are 450 members paying an annual subscription of Rs. 40 each.

(2)           Salary outstanding on 31^st March, 2004 was Rs. 1,000.

(3)           Building stood in books Rs. 60,000 and furniture at Rs. 4,600 on 1^st April, 2003. Write off depreciation on these assets @ 2% and 10% respectively.

(4)           Interest on investment @ 5% has accrued for 3 months.

(5)           The capital fund was Rs. 66,360 on 1^st April, 2003.

(6)           60% of the entrance fee is to be capitalised.

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Q7. Kamesh and Mani are partners sharing profits and losses in equal ratio. From the following Trial Balance you are required to prepare Trading and profit and Loss Account for the year ended 31st December, 2005 and Balance sheet as on that date after taking into consideration the additional information.

Debit Balance	Amount	Credit Balance	Amount
Land and Building	44500	Capital : Kamesh	60000
Plant	9750	Mani	40000
Drawings: Kamesh	3000	Sales	57000
Mani	2000	Sundry Creditors	9500
Opening Stock	26000	Reserve for Doubtful Debts	500
Wages	5000	Outstanding Expenses	500
Purchases	34500
Carriage inwards	700
Office expenses	2270
Rent, Rates and Taxes	1750
Insurance	480
Motor Van (addition on 1st July Rs. 10,000)	20,000
Salaries	1750
Bad debts	950
Debtors	14600
Cash at Bank	250
	167500		167500

Additional Information:

1.      Closing stock on 31^st December, 2005 was at cost Rs, 40, 000/- and Market price Rs. 50,000/-

2.      Depreciate Plant at 10% p.a. and Land and Building @ 20% p.a. Depreciate Motor van by 10% p.a.

3.      The goods for Rs. 5, 600 purchases and received on 25^th December, 2002 were not recorded in the purchase book.

4.      Insurance is paid for the year ended 31st March 2005.

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