SRI BHAGAWAN MAHAVEER JAIN COLLEGE

Vishweshwarapuram, Bangalore 560004

Mock Examination Question Paper-2 (January 2019)

Course: II PUC Subject: Accountancy

Max. Marks: 100 Duration: 3:15 hrs.

Instructions:-
1. All the sub questions of section-A should be answered continuously at one place
2. Provide working notes wherever necessary.
3. 15 minutes extra has been allotted for candidates to read the questions.
4. Figures in the right hand margin indicates full marks.

SECTION-A
I. Answer any Eight questions, each question carries one mark. 8x1=8
1. Subscription is paid by _______.
2. Name any one Content of partnership deed.
3. Goodwill is an _________ asset.
4. Abhishek, Rajat and Vivek are partners sharing profits in the ratio of 5:3:2. If Vivek retires, the New
profit sharing ratio between Abhishek, and Rajat will be.
(a) 3:2 (b) 5:3 (c) 5:2 (d) None of the above.
5. Call money received in advance is called ________ .
6. State any one kind of debenture.
7. Name any one internal user of financial statements.
8. Give the meaning of analysis.
9. Quick Ratio known as _______
10. True or False: According to revised AS3, preparation and presentation of cash flow statement is
mandatory for all listed companies.

SECTION-B
II. Answer any five questions, each question carries Two marks. 5x2=10
11. Give two features of Receipts and payments Account.
12. What is fluctuating capital system?
13. What do you mean by hidden goodwill?
14. What is Realisation account?
15. What is calls in arrears?
16. State any two features of financial statements.
17. What do you mean by commonsize statements?
18. What do you mean by investing activities?

SECTION-C
III. Answer any FOUR questions, each question carries TWO marks. 4x6=24
19. Murthy and Patil are partners in a firm sharing profits and losses in the ratio of 3:2 Murthy withdraw
`4000 quarterly at the beginning of each quarter. Calculate interest on drawings at 9% p.a for the year
ending 31.03.2017. Under product method.
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20. Deepa and Seema are partners sharing profits and losses in the ratio of 3:2. They admit Roopa into the
partnership and give her 1/4th share. Calculate the new profit share ratio.

21. Reddy, Ramesh and Fayaz are the partners in the business sharing profits and losses in the ratio of
2:2:1 respectively. Their balance sheet as on 31.03.2017 was as follows:-

Balance sheet as on 31.3.2017

Liabilities ` Assets `
Creditors 40,000 Cash in Bank 30,000
Bills payable 10,000 Bills receivable 15,000
Reserve fund 20,000 Debtors 40,000
Capitals:- Reddy 50,000 Stock 30,000
Ramesh 30,000 Furniture 10,000
Fayaz 20,000 Buildings 45,000

1,70,000 1,70,000
st
Ramesh died on 31 July 2017, and the partnership deed provided as follows.
(i) The deceased partner will be entitled to his share of reserve fund, in the addition to his capital as per
the last balance sheet.
(2) He will be entitled to his share of accrued profit, calculated on the basis of previous year’s profit.
(3) His share of goodwill of the firm. Calculated on the basis of three years purchase of the average
profit of last 4 years as follow:-
2013-14- `50,000
2014-15- `80,000
2015-16- `40,000
2016-17- `30,000
(4) Interest on capital at 6% per annum to be allowed
(5) Drawings made by Ramesh upto his death `3000
Surviving partners agreed that `19600 should be paid to the executor immediately and balance amount
is transferred to their loan account show Ramesh capital account and his executors loan account.

22. Prabha Ltd issued 5000 10% debentures of `100 each payable:-
`10 per debenture on application
`40 per debenture on allotment
`50 per debenture on first and final call.
All debentures were subscribed and money duly received. Pass journal entries in the books of
company.

23. From the following information prepare statement of profit and loss for the year ended 31.3.2018 as
per schedule III of companies Act 2013.
Particular `
Revenue from operations 500,000
Purchase of goods 300,000
Salaries to employees 40,000
Leave encashment 10,000
Rent and taxes 30,000
Repairs to Machinery 20,000
Tax 30%
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24. From the following information calculate the current ratio and quick ratio.
Current Assets 240,000
Current Liabilities 60,000
Quick Assets 1,20,000

25. Arun ltd, arrived a net income of `500,000 for the year ended march 31,2017 depreciation for the year
`100,000, profit on sale of assets `50,000 transferred to statement of profit and loss. Trade receivables
increased during the year `40,000 and trade payable also increased by `60,000. Compute cash flow
from operating activities by indirect method.

SECTION-D
IV. Answer any Four questions, each question carries TWELVE marks. 4x12=48
26. Following is the balance sheet and receipts and payments account of a charitable trust for year ending
31.3.2017.
Balance sheet as on 31.3.2017
Liabilities ` Assets `
Capital fund 3,20,000 Buildings 3,00,000
Subscriptions received O/S Debtors for subscriptions 3,800
in advance. 6,000 O/S Debtors for locker rent 2,400
O/S expenses 14,000 Cash in hand 1,00,000
Loan 50,000
Income and
Expenditure account 16,200
4,06,200 4,06,200

Dr. Receipts and Payments Account for the year ending 31.03.2018 Cr.
Receipts Amount (₹) Payments Amount (₹)
To Balance b/d 1,00,000 By Expenses:-
To Subscriptions 2016-17 12,000
2016-17 2,000 2017-18 20,000 32,000
2017-18 21,000 By cost of lease hold land 40,000
2018-19 1,500 24,500 By Investments 4,000
To Entrance fees 8,000 By Refreshment expenses 20,000
To Locker Rent 7,000 By Balance c/d 83,500
To Income from Refreshments 40,000

1,79,500 1,79,500
Adjustments:-
1. Expenses due but not paid `5000
2. Subscriptions due but not received `1000
3. Salary due but not paid `2000
4. Depreciation on building `20,000
5. One half of the entrance fees to be capitalized.
Prepare:-
Income and expenditure account for year ending 31.03.2018. Balance sheet as on that date.
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27. Hari, Giri and Suri were partners sharing profits and losses in the ratio of 5:2:1 their balance sheet as
on 31.3.17 was as under.
Liabilities ` ` Assets ` `
Creditors 15,000 Cash at bank 5,000
Bills payable 9,000 Bills Receivable 12,600
Reserve fund 16,000 Debtors 30,000
Capital:- Less; provision 1600 28,400
Hari 50,000 stock 20,000
Giri 30,000 Machinery 50,000
Suri 10,000 90,000 Motor car 14,000
1,30,000 1,30,000
Suri Retired. The following adjustments are to be made.
1. Stock to be increased by 20%
2. Machinery and motor car depreciated by 5% and 10%.
3. Provision for doubtful debts to be brought up by 10% on debtors.
4. Outstanding power charges to be provided for `1,100
5. Goodwill of firm was raised for `35,000 and it has to be written off, immediately after Suri’s
retirement.
Prepare:-
Revaluation account
Capital accounts of partners
Balance Sheet of firm.

28. Anil, and Sunil were partners in a firm. Their balance sheet as on 31.3.18 was as follows
Balance sheet as on 31.3.18
Liabilities ` Assets `
Creditors 10,000 Cash 5,000
Bills Payable 6,000 Debtors 15,000
Bank Overdraft 4,000 Stock 18,000
Mrs. Sunil’s loan 5,000 Furniture 12,000
Profit and loss account 8,000 Machinery 20,000
Capitals: Anil 52,000 Buildings 50,000
Sunil 45,000 Goodwill 10,000

1,30,000 1,30,000
On the above date, they decided to wind up the firm. The following information is available.
(a) Debtors realized less 10%, stock realized 10% more and building realized ` 62,000
(b) Vehicle which was unrecorded realsied `4000
(c) Creditors to be settled at 10% less and interest on Bank Overdraft due `500 also to be paid off.
(d) Mr. Sunil took once his wife’s loan
(e) Dissolution expenses amounted ` 3,000
Prepare:-
(1) Realisation account
(2) Partners capital account
(3) Cash account

29. Harsha company ltd issued 10,000 preference shares of `100 each at a premium of `5 per share.
The amount was payable as follows:-
`10 application
`50 on allotment (including premium)
`45 on first and final call.
All the shares were subscribed and the money duly received except the first and final call on 500
shares. The directors forfeited these shares and re-issued at `80 each fully paid.
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30. From the following Balance Sheets of Indu company ltd., prepare common size balance sheet as at 31st
march 2017 and 31st March 2018.
Balance sheet as at 31.3.16 and 31.3.17
Particulars 31.03.2017 (₹) 31.03.2018 (₹)
1.Equity and Liabilities:
I Shareholders fund: 7,50,000 10,00,000
(a) Share capital 1,50,000 1,00,000
(b) Reserves and Surplus

2. Non-Current Liabilities: 4,50,000 6,75,000

(a) Long term borrowings

3. Current Liabilities: 1,50,000 2,25,000

(a) Short term borrowings
15,50,000 15,00,000
Total
Assets:
1. Non-Current Assets:
Fixed Assets 7,50,000 10,00,000
(a) Tangible Assets 3,00,000 4,50,000
(b) Intangible Assets

2. Current Assets: 1,50,000 2,50,000

(a) Inventories 75,000 1,00,000
(b) Other Current Assets 2,25,000 2,00,000
(c) Cash and cash equivalents 15,50,000 15,00,000
Total

31. Pass necessary journal entries at the time of redemption of debentures in each of following cases.
(a) A company ltd, issued 10,000, 8% debentures of `100 each at par and redeemable at par at the end
of five years out of capital
(b) B company ltd, issued, 4000 12% debentures of `100 each at par. These debentures are redeemable
at 10% premium at the end of four years.
(c) C company ltd issued 10% debentures of total face value of `3, 00,000 at a premium of 5% to be
redeemed at par at end of four years.
(d) D company ltd, issued 200,000, 10% debentures at a discount of 5%, but redeemable at a premium
of 5% at end of 5 years.
(e) E company ltd, issued, 1000, 8% debentures of `100 each at a premium of 5% to be redeemed at
par at the end of 4 years.

32. From the following calculate:-

(1) Inventory turnover ratio
(2) Trade receivable turnover ratio
(3) Trade payable turnover ratio
(4) Gross profit ratio
(5) Operating ratio
(6) Net profit ratio.
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Particulars `
Revenue from operations 10,00,000
Gross profit 200,000
Average Inventory 1,00,000
Net credit revenue from operations 600,000
Average trade receivables 1,50,000
Net credit purchases 500,000
Average trade payable 250,000
Operating expenses 100,000
Net profit 100,000

SECTION-E
(Practical Oriented Questions)
V. Answer any TWO questions, each carries FIVE marks. 2x5=10
33. How do you treat the following in absence of partnership deed?
(a) Profit sharing Ratio
(b) Interest on capital
(c) Interest on drawings
(d) Interest on advances from partners
(e) Remuneration to partners to firms work.
34. Give the disclosure requirements pertaining to share capital in notes to accounts of Balance Sheet of a
company with imaginary figures.
35. Prepare Comparative statement of profit and loss with 5 imaginary figures

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