Maharashtra Board Class 12 BK & Accountancy Sample Paper Set 4 with Solutions

Maharashtra State Board Class 12th BK & Accountancy Sample Paper Set 4 with Solutions Answers Pdf Download.

Maharashtra Board Class 12 BK & Accountancy Model Paper Set 4 with Solutions

Time: 3 Hours
Max. Marks: 80

Notes:

1. All questions are compulsory.
2. Figures to the right indicate full marks.
3. Write answers to all main questions on new page.

Question 1.
Attempt all of the following sub-questions:

(A) Select most appropriate answer from the alternatives given below and rewrite the sentences. (5)

Question 1.
In the absence of an agreement, interest on loan advanced by the partner to the firm is allowed at the rate of ____
a. 5%
b. 6%
c. 10%
d. 9%
Answer:
b. 6%

In the absence of an agreement, interest on loan advanced by the partner to the firm is allowed at the rate of 6%.

Question 2.
The closing balance of Receipts and Payments account usually represent _____
a. Closing stock
b. Cash and Bank balance
c. Surplus
d. Deficit
Answer:
b. Cash and Bank balance
The closing balance of Receipts and Payments account usually represent Cash and Bank balance.

Question 3.
____ is the rate of return normally earned by the firms in the same industry.
a. Average rate of return
b. Normal rate of return
c. Excess rate of return
d. Premium rate of return
Answer:
b. Normal rate of return

Normal rate of return is the rate of return normally earned by the firms in the same industry.

Question 4.
The profit or loss from revaluation on retirement of partner is shared by _____
a. the remaining partners
b. all the partners
c. only retiring partner
d. bank
Answer:
b. all the partners

The profit or loss from revaluation on retirement of partner is shared by all the partners.

Question 5.
Profit and Loss Suspense Account is shown in the new Balance Sheet on
a. Debit
b. Credit
c. Asset
d. Liabilities
Answer:
c. Asset

Profit and Loss Suspense Account is shown in the new Balance Sheet on assets side.

(B) Write the Word / Term / Phrase which can substitute each of the following statements.

Question 1.
Stage in which all the assets are disposed and liabilities paid off.
Answer:
Realisation / Disposal stage

Question 2.
Three extra days which are allowed over and above the term of bill.
Answer:
Grace Period.

Question 3.
The form of business organisation where huge amount of capital can be raised
Answer:
Joint stock company

Question 4.
The tool for analysis of financial statement where, individual figures of Balance Sheet is converted into percentage.
Answer:
Common Size Balance Sheet

Question 5.
The process by which all the calculations are automatically done by the accounting software.
Answer:
Automation

(C) Answer the following questions in only ‘one’ sentence each:

Question 1.
What is liability of a partner?
Answer:
Liability of a partner is unlimited, joint and several. If assets of business are not sufficient to pay liabilities then personal properties of partners can be used. Similarly, if anyone of the partner is declared insolvent then his liability will be borne by other solvent partners.

Question 2.
What do you mean by Non-recurring Expenses?
Answer:
Non-recurring expenses are usually capital expenses which are not undertaken frequently and whose benefit is derived over a long period of time.

Question 3.
What is sacrifice ratio?
Answer:
When new partner is admitted, old partners have to sacrifice their share of profit to give the share of profit to new partner. The ratio in which the old partners sacrifice their share of profit is called as sacrifice ratio.

Question 4.
What is Trading Account?
Answer:
Trading Account is a nominal account prepared to record direct expenses and direct incomes in order to arrive at the Gross Profit or Gross Loss.

Question 5.
What is Surplus?
Answer:
Excess of income over expenditure in the Income and Expenditure Account is called as Surplus.

(D) Prepare a bill of exchange from the following information:
Drawer : Dinesh, P. R. Road. Andheri West.
Drawee : Mahesh, L. B. S. Road, Mulund.
Payee: Amit, Thane West.
Amount: ₹ 9,500
Period of Bill: 4 months after sight.
Date of Bill : 26^th Nov. 2019.
Date of Acceptance : 29^th Nov. 2019.
Answer:

Question 2.
Sangeeta, Anita and Smita were in partnership sharing profits and losses in the ratio 2 : 2 : 1.
Their Balance Sheet as on 31^st March, 2019 was as under: [10]
Balance Sheet as on 31^st March, 2019

They decided to dissolve the firm as follows :
i. Assets realised as; Land recovered ₹ 1,80,000; Goodwill for ₹ 75,000; Loans and Advances realised ₹ 12,000; 10% of the Debts proved bad;
ii. Sangeeta took Plant at book value.
iii. Creditors and Bills payable paid at 5% discount.
iv. Sangeeta’s Loan was discharged along with ₹ 6,000 as Interest.
v. There was a contingent liability in respect of bills of ₹ 1,00,000 which was under discount. Out of them, a holder of one bill of ₹ 20,000 became insolvent.
Show Realisation Account, Partners Capital Account and Bank Account.
OR
Hitesh sold goods for ₹ 4,500 to Ashok on 01.01.2019 and drew upon him bill of exchange payable 2 months after sight. Ashok accepted the bill and returned the same to Hitesh on 03.01.2019. On the due date the bill was honoured by Ashok.
Record the necessary Journal entries in the books of Hitesh and also prepare Ashok account in his books.
i. When the bill was retained by Hitesh till the date of its maturity.
ii. When Hitesh immediately discounted the bill @ 15% p.a. with his bank.
iii. When three days before its maturity, the bill was sent by Hitesh to his bank for collection.
iv. When the bill was endorsed immediately by Hitesh in favour of his creditor Venkat. [10]
Answer:
In the books of Sangeeta, Anita and Smita, Realisation Account

Partner’s Capital Account

Bank Account

Working Note:

i. Sangeet’s Loan Account

OR

In the books of Hitesh (Drawer), Journal Entries

Ashoka’s Account

Working Note:

i. Calculation of amount of discount charged by bank while discounting the bill
= 4,500 × \(\frac{2}{12}\) × \(\frac{15}{100}\) = 112.5 i.e. ₹ 113
[Note: Ashok’s Account in all the above situations viz., Case A, B, C and D, will remain same.]

Question 3.
Tara, Chandra and Surya are partners in a firm of Accountants sharing profits and losses in the ratio of 2 : 3 : 1. Their Balance Sheet as on 31^st March, 2018 on which date Akash is admitted as a partner is as follows: [10]
Balance Sheet as on 1^st April, 2018

Akash is given 1 /4^th share of the profits and losses in the firm and the profit and loss sharing ratio among other partners to remain same as before. The following adjustments are to be made prior to Akash’s admission:
i. The Motor Car is taken over by Chandra at a value of ₹ 75,000.
ii. The Furniture is revalued at ₹ 54,000.
iii. Goodwill account is raised in the books at ₹ 1,50,000.
iv. Unrecorded debtors are ₹ 33,000.
v. Expenses incurred but not paid ₹ 9,000 are to be provided for.
vi. Akash brings in ₹ 60,000 in cash as his capital contribution.
Pass necessary journal entries and prepare Balance Sheet of the firm after Akash’s admission.
OR
Wadia, Oza and Jagdish were partners in a firm sharing profits and losses in the proportion of 5: 3: 2 respectively. Their Balance Sheet as on 31^st March, 2019 is as under: [10 j

Balance Sheet as on 31^st March, 2019

On 1^st April, 2019, Mr. Jagdish retired from the business on the following terms:
i. Assets and Liabilities were revalued as follows – Goodwill ₹ 11,000 Land and Building ₹ 30,000, Machinery ₹ 8,000, Motor Van ₹ 20,000, Creditors ₹ 7,000, Stock ₹ 10,000, Debtors ₹ 12,000
ii. Wadia and Oza contributed additional capital of ₹ 20,000 and ₹ 15,000 respectively.
iii. Balance of Jagdish capital account has been fully paid in cash.
Prepare: Profit and Loss Adjustment A/c, Partners’ Capital Account, New Balance Sheet.
Answer:
In the books of the Firm
Journal Entries

Balance Sheet as on 1^st April, 2018

Working Notes:
i. Partner’s Capital Account

ii. Calculation of amount of appreciation of Motor Car = 75,000 – 60,000 = 15,000
iii. Calculation of amount of appreciation of Furniture = 54,000 – 30,000 = 24,000

OR

In the books of the Firm
Profit and Loss Adjustment Account

Partner’s Capital Account

Balance Sheet as on 1^st April, 2019

Working Note:

Cash Account

Question 4.
Balance Sheet of XYZ Ltd as on 31.03.20 is given below. [8]
Balance Sheet as on 31^st March, 2020

You are required to prepare Common Size Statement for the year ending 31.03.2020.
OR
Explain in detail different Categories of Accounting Packages. [8]
Answer:
Common size Balance Sheet as on 31^st March, 2020

Working Note:

Formula \(=\frac{\text { Amount of Individual Item }}{\text { Total Funds Available / Applied }}\) × 100

i. Calculation of percentage of Equity Share Capital \(=\frac{\text { Equity Share Capital }}{\text { Total Funds Available }}\) × 100
For 31^st Mar, 2020 = \(\frac{9,00,000}{16,30,000}\) × 100 = 55.22%
[Similarly, calculation of percentage of Preference Share Capital, Reserves and Surplus, Secured Loans, Unsecured Loans, etc. can be done]

OR

Accounting software is an essential part of the computerized accounting system. An important factor to be considered before acquiring accounting software is the accounting expertise of people responsible in business for accounting work. People not computers, are responsible for accounting. Every Computerized Accounting System is implemented to perform the accounting activity (recording and storing of accounting data and information) and generate various reports as per the requirements of the user. From this perspective, the accounting packages are classified into the following categories:

The choice of the accounting software would depend upon the suitability to the organisation or firm especially in terms of accounting and financial needs.

1. Ready to Use: This accounting software is suitable to those organizations or firms running small scale business where the frequency or volume of accounting transactions is very less. This is because the cost of installation is generally less and number of users is limited. Ready-to-use software is relatively easier to learn. This also implies that level of secrecy is relatively low and the software is prone to data frauds. The training needs are simple
and sometimes the vendor (supplier or software) offers the training on the software free. However, this software offers little scope of linking to other information systems.
E.g.: Initial versions of Tally

2. Customized: This accounting software may be customized to meet the special requirement of the user. Standardized accounting software available in the market may not suit or fulfill the user requirements.

3. Tailored: The accounting software is generally tailored in large business organizations with multi users and geographically scattered locations. This software requires specialized training to the users. The tailored software is
designed to meet the specific requirements of the users and form an important part of the organizational MIS. The secrecy and authenticity checks are robust in such softwares and they offer high flexibility in terms of number of users.

4. Free and Open Source: Small business needs an accounting software but they don’t have a big budget. So, they find accounting software available for free on the Internet. Such software is called as open source software. These applications can be downloaded and installed from the websites.

E.g.: GNU Khata is the open source accounting software for small business as well as a personal finance software.

Question 5.
Hinduja Co. Ltd with an authorized capital of ₹ 4,00,000 divided into shares of ₹ 100 each, issued 2,000 shares payable as ₹ 25 on application, ₹ 30 on allotment, ₹ 20 on first call and the balance as and when required. Application money on 2,000 shares was received and allotment was duly made. Allotment money was received in full. When first call was made one shareholder paid the entire amount on his 50 shares.
Show journal of Hinduja Co. Ltd. [8]
OR
Pravin, Prakash and Paresh were partners sharing profits and losses in the proportion to their capitals. The balance sheet of the firm on 31^st March, 2013 was as under: [8]
Balance Sheet as on 31^st March, 2013

Paresh died on 1^st August, 2013 and the following adjustments were made:
i. Assets were revalued as – Land and Building ₹ 88,000, Investments ₹ 36,000 and Stock ₹ 34,000.
ii. All Debtors were good.
iii. Goodwill of the firm valued at two times the average profit of the last 4 years profit.
iv. Paresh’s share of profit upto his death to be calculated on the basis of average profit of the last two years.
v. Profits for the last four years were: ₹ 12,000; ₹ 24,000; ₹ 14,000 and ₹ 22,000.
Prepare:
i. Profit and Loss Adjustment Account.
ii. Paresh’s Capital Account, showing the amount payable to his executor.
iii. Give working of Paresh’s share in Goodwill and Profit.
Answer:
Journal entries in the books of Hindhuja Co. Ltd.

Working Notes:

i. Calculation of uncalled amount per share

ii. Advance amount received from shareholder
Number of shares held = 50
Amount uncalled on shares (50 × 25) = ₹ 1250

OR

In the books of the Firm.
Profit and Loss Adjustment Account

Paresh’s Capital Account

Working of Paresh’s share in Goodwill and profit:

i. Paresh’s share in Goodwill:
Total Profit = 12,000 + 24,000 + 14,000 + 22,000 = ₹ 72,000
Average profit \(=\frac{\text { Total profit }}{\text { Number of years of profit }}\) = \(\frac{72,000}{4}\) = ₹ 18,000
Goodwill = Average profit × Number of years of purchase
= 18,000 × 2 = ₹ 36,000
Paresh’s share in Goodwill = Goodwill × Paresh’s Share
= 36,000 × \(\frac{1}{6}\) = ₹ 6,000

ii. Paresh’s share in profit:
Total profit = 14,000 + 22,000 = ₹ 36,000
Average profit for last two years \(=\frac{\text { Total profit }}{\text { Number of years }}\)
= \(\frac{36,000}{2}\) = ₹ 18,000

Question 6.
Following is the Balance Sheet as on 01.04.2018 and the Receipts and Payments Account for the year ending 31.03.2019 of Bright Students Junior College, Pune. [12]
Balance Sheet as on 01.04.2018

Additional Information:
i. For the current year (2018-19) tuition fees receivable (outstanding) ₹ 24,000.
ii. Donations are to be capitalized.
iii. Salary to teachers is outstanding ₹ 12,000.
iv. Depreciate Books @ 20% p.a. and Furniture @ 10% p.a.
You are required to prepare:
a. Income and Expenditure Account for the year ending 31.03.2019.
b. Balance Sheet as on 31.03.2019.
Answer:
In the books of Bright Students Junior College, Pune Income and Expenditure Account for the year ended 31^st March, 2019

Balance Sheet as on 31<sup.st March, 2019

Working Notes:

i. Calculation of depreciation on Furniture
a. Opening balance = 1,20,000 × \(\frac{10}{100}\) = ₹ 12,000
b. Additional purchase of Furniture on 01.01.2019 = 80,000 × \(\frac{10}{100}\) × \(\frac{3}{12}\)
= ₹ 2,000
Total depreciation on Furniture: 12,000 + 2,000 = ₹ 14,000

ii. Calculation of depreciation on Books
a. Opening balance = 60,000 × \(\frac{20}{100}\) = ₹ 12,000
b. Additional purchase of Books on 01.01.2019 = 20,000 × \(\frac{20}{100}\) × \(\frac{3}{12}\) = ₹ 1,000
Total depreciation on Books = 12,000 + 1,000 = ₹ 13,000

Question 7.
From the following Trial Balance and Adjustments given below of Reena and Aarti, you are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date. [12]
Trial Balance as on 31^st March, 2019

Adjustments:
i. Closing Stock valued at ₹ 22,000.
ii. Write off ₹ 900 for Bad & doubtful debts and create a provision for Reserve for Doubtful Debts ₹ 1,000.
iii. Create a provision for Discount on Debtors @ 3% and creditors @ 5%.
iv. Outstanding Expenses Wages ₹ 700 and Salaries ₹ 800.
v. Insurance is paid for 15 months, w.e.f. 1^st April 2018.
vi. Depreciate Land and Building @ 5%.
vii. Reena and Aarti are sharing Profits & Losses in their Capital Ratio.
Answer:
In the books of Reena and Aarti
Trading and Profit & Loss Account for the year ended 31^st March, 2019

Balance Sheet as on 31^st March, 2019

Working Note:

i. Prepaid Insurance:
Insurance paid for 15 months = 1,500
∴ Insurance for 12 months = 1,500 × \(\frac{12}{15}\) = 1,200
∴ Prepaid Insurance = 1,500 – 1,200 = 300

Maharashtra Board Class 12 BK & Accountancy Previous Year Question Papers