PRN AMRATHA BHARATHI PU COLLEGE, HEBRI

II PUC - ACCOUNTANCY MID TERM EXAMINATION,November 2020

Duration: 3 .15 Hours Max. Marks: 100
Section A
Answer any eight questions. 1x8=8
1. The income and expenditure is prepared on_------------basis.
2. When interest is charged on partners drawings?
3. State any one right acquired by a newly admitted partner.
4. Decrease in the value of liability debited to Revaluation A/c (State True/ False)
5. State the meaning of over subscription.
6. Interest on calls in arrears is charged according to Table F at the rate of----
a)8%p.a b)6%p.a c)10%p.a d) 11%p.a
7. State any two methods of issue of shares.
8. Balance of Share Forfeiture Account is shown in the Balance Sheet under the head-------
9. What is prospectors?
10 How do you treat preliminary expenses.
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Section B
Answer any Five questions. 2x5=10
11 Mention two features of Not for profit organizations.
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12 What is guarantee of profit to a partner?
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13 Why there is need for the revaluation of assets and liabilities on the admission of a partner?
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14 State any two circumstances under which a partnership firm dissolved.
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15 Rajith Limited purchased Machinery form Hemanth Ltd. for 3,60,000 and payment is to be made by the
. issue of Debentures of Rs.100 each calculate number of debentures are issued a)at par b) at premium.
16 State any two difference between current liabilities and non current liabilities.
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17 .Write two objectives of financial statement.
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18 Mention two types of shares and two types financial statements.
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Section C
Answer any Four questions. 6x4=24
19 Calculate interest on drawings of Karna @10% p.a for the year ending 31-3-2019 by the short cut
. method .If he withdrew Rs.2,000 per month.
I) beginning of each month
II) ii) middle of each month
III) iii)end of the each month. Or
20 Rama and Krishna were partners in a firm sharing profit and losses in the ratio of 3:2 .they admit
. Govinda for 1/6 share in profits and guaranteed that his share of profits will not be less than Rs.25,000.
Total profits of the firm were Rs. 90,000 .calculate share of profits for each partner when Guarantee is
given by firm.NPSR3:2:1.
Prepare Profit and Loss Appropriation A/c for the year ended 31-3-2019.
21 A and B were partners in a firm sharing profits and losses in the ratio of 3:2. They admit C into the
. partnership with 1/6 share in the profits.Calculate the new profit sharing ratio.

22 Arun,Kiran and Varun are partners in a firm. They share profit and losess in the proportion of 2:1:2
. respectively. On 1/4/2018 their capital account shows the following balances. Rs.45,000, Rs.32,000 and
R 25,000 respetively. Varun died on 31/08/2018. According to the partnership his executors are entitled
to the following.
a) His capital
b) Interest on capital at 6% p.a
c) Salary Rs. 1800 per month.
D)Annual commission of Rs24,000.
e) His share of profit Upto the date of death based on previous years profit 24,000
f) His share of goodwill Rs. 12,000 .
g) His Drawings during the year 5500 upto the date of death. Prepare Varun’s executors account.

23 M trading Co. Ltd issued 10,000 9% debentures of Rs. 100 each at a premium of Rs. 10 per debenture.
. The amount was payable as
Rs. 10 on application,
Rs. 60 on allotment including premium,
Rs. 40 on first and final call.
All the debentures were subscribed and the money duly received. Pass the journal entries.

24 From the following details prepare balance sheet for the ended 31-3-2019 as per Schedule III of
Companies Act 2013.
Inventories7,00,000,
Equity Share Capital 16,00,000
,Plant and Machinery 8,00,000,
Preference share capital6,00,000,
General Reserve 6,00,000,
Creditors,3,50,000,
Provision for taxation2,50,000,
Land and Building 26,00,000,
Cash at Bank 5,00,000
12% Debentures 12,00,000. Or
25 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
Revenue from operations 5,00,000,
Purchase of goods 3,00,000,
salaries to employees 40,000
leave encashments 10,000 ,
Rent and taxes 30,000
Repairs to machinery20,000,
Tax 30%
 Section –D 12x4=48
26
.
Following is the balance sheet and receipts and payments accounts of Swaraj Club. Balance sheet as on
31-3-2017.
Liabilities Rs. Assets Rs.
Outstanding salary 6,000 Building 6,00,000
Capital Fund 6,94,000 O/S subscription 18,000
Books 30,000
Furniture 37,,000
Cash in hand 15,000
7,00,000 7,00,000

Receipts and payments A/c for the year ending 31-3-2018.

Receipts Rs. Payments Rs.
To balance b/d 15,000 By Furniture 18,000
To Sale of old Furniture 4,000 By Books (1.10.2017) 10,000
(costing Rs.6,000) By Salaries 72,000
To Subscription: By General Expenses 30,000
2016-17 18,000 By News paper 33,800
2017-18 60,000 By Printing and stationery 11,000
2018-19 12,000 90,000 By Audit Fees 40,000
To Sale of old news paper 10,800
To Profit from entertainment 44,000 By balance c/d 33,000
To Rent 84,000
247800 247800
Adjustment : 1)the club had 500 member each paying an annual subscription of Rs.150.
2) on 31.3.2018Salary due amounted to1,200 and salaries paid included Rs.6,000for the year 2018-19
3) Depreciate Building@5%and Books @10%.
Prepare
income and expenditure account
balance sheet.
27
.

A and B are partners in a firm, sharing profit and losses in the ratio of 3:2. Their balance sheet as on 31-
3-2017stood as follows.
Balance sheet as on 31-3-2017
Liabilities Rs. Assets Rs.
Creditors 20,000 Cash at Bank 5,000
Billspayable 6000 Debtors 19000 18,000
General Reserves 4000 Less PDD 1000
stock 17,000
Capitals A 40,000 Machinery 20,000
B 30,000 Furniture 10,000
Land and Building 30,000

1,00,000 1,00,000

They admit C into the partnership for 1/6 th share. C should bring Rs. 25,000 as capital and goodwill of the
8000
.
a) Land and building are valued at 24,000
b) Machinery is reduced by 10%.
c) Provision for doubtful debt is increased by 300.
d) A sum of Rs. 150 is payable in respect of repairs.
e) Goodwill amount is withdrawn by the old partners
Prepare
revaluation account,
partners’ capital accounts,
bank account
balance sheet after admission.
 Roopa and Seema are partners sharing profit and losses in the ratio of 3:2. Their balance sheet as on
28 31-3-2017 was as follows.Balance sheet as on 31-3-2017
. Liabilities Rs. Assets Rs.
Creditors 20,000 Bank 15,000
Bills payable 17,000 Debtors 25,000 24,000
Bank Overdraft 6,000 less PBD 1,000
Roopa’s Loan 10,000 Stock 12,000
Kripa’s Loan 5,000 Investment 10,000
Profit and Loss A/c 10,000 Furniture 16,000
Reserve Fund 10,000 Motor car 30,000
Capital Roopa 44,000 Computer 25,000
Seema 40,000 Building 30,000
Total 1,62,000 1,62,000
On the above date they decided to wind up the business.
a) Debtors22,000, stock16,000,furniture14,000,motor car25,000,buildings 50,000 ,unrecorded asset
6,000
b) Investment was taken over by Roopa at .book value.Computer is taken over by Seema at 10% less.
c) Creditors and bills payble to be settled at 10% less and interest on Bank O/D due Rs. 500 also to be
paid off.
d) Kripa’s Loan taken over byRoopa.
e) Dissolution expenses amounted to Rs. 2,500.
Prepare
Realisation A/c,
partners’ capital A/c
Bank A/c.

29 The Star Company Ltd issued 20,000 Equity shares of 100 each at a premium of Rs. 10 per share. The
. share amount was payable as
Rs. 20 on application,
Rs. 40 including premium on allotment,
Rs. 50 on first and final call.
All the shares were subscribed and the money was duly received except the first and final call on 800
shares. These shares were forfeited and reissued at Rs. 80 each as fully paid up. Pass the journal
entries.
.
 30
Prakash,Naresh and Suresh are partners sharing profits in the ratio of 3:2:1.Naresh retired from the firm
due to illness. On that date the Balance sheet of the firm was as follows.
Balance Sheet as on March 31,2019
Liabilities Rs. Assets Rs.
Creditors 18,000 Bank 7,600
Bills payable 14,000 Debtors 6,000
Outstanding salary 2,200 less PBD 400 5,600
Provision for legal 6,000 Stock 9,000
damage
General Reserve 12,000 Furniture 41,000
Capitals Premises 80,000
Prakash 46,000 Profit and loss A/c 5,000
Naresh 30,000
Suresh 20,000
Total 148200 1,48,200

a)Premises have been appreciated by 20%,stock depreciated by 10%and provision for doubtful debts
was to be made at 5% on debtors.Further provision for legal damages is to be made for Rs. 1,200 and
furniture to be brought up to 45,000.
b)Goodwill of the firm be created at 42,000 and the retiring partners share is adjusted through the capital
accounts of remaining partners.

c)Rs.26000 from Naresh’s capital a/c be transferred to his Loan a/c and be paid through bank , if
required , necessary loan may obtained from bank.
Prepare Revalation a/c ,
Partners Capital a/c ,
Bank a/c and
Balance sheet of the firm.

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Section -E
Answer any Two 5x2=10
31 Write Profit and Loss Appropriation a/c of a firm with 5 imagimary figures.
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32 Prepare executor’s loan account with imaginary figures showing the repayment in two annual equal
. installments along with interest
33 Prepare two partners current a/c under fixed capital system with five imaginery figures.
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