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Karnataka 2nd PUC Accountancy Model Question Paper 2 with Answers
Time: 3.15 Hours
Max Marks: 100
Instructions:
1. All Sub questions of Section – A should be answered continuously at one place.
2. Provide working notes wherever necessary.
3. 15 Minutes extra time has been allotted for the candidates to read the questions.
4. figures in the right hand margin indicate full marks.
Section – A
I. Answer any eight questions, each carries one mark: (8 × 1 = 8)
Question 1.
Government grant is treated as _________.
Answer:
Revenue Receipt
Question 2.
State the minimum number of persons required to form a partnership.
Answer:
2 persons
Question 3.
Accumulated profits are transferred to all partners’ capital account including new partner (True/ False)
Answer:
False
Question 4.
Amount due to deceased partner is settled in the following manner ________
(a) Immediate full payment
(b) Transferred to loan account
(c) Partly paid in cash and balance transferred to loan account
(d) All of the above
Answer:
(d) All of the above
Question 5.
Profit on forfeited shares is transferred to ________ account
Answer:
Capital reserve
Question 6.
Name any one method of redemption of debentures.
Answer:
Payment in lump sum or any other one
Question 7.
Write any one of the objectives of financial statements.
Answer:
To provide information about economic resources and obligations of a business or any other one.
Question 8.
Comparative statement analysis is also known as _________
(a) Dynamic analysis
(b) Horizontal analysis
(c) Vertical analysis
(d) External analysis.
Answer:
(b) Horizontal analysis
Question 9.
Expand E.P.S
Answer:
E.P.S = Earnings Per Share
Question 10.
Give an example for cash inflows from financing activities.
Answer:
Cash proceeds from issuing shares (equity or/and preference].
Section – B
II. Answer any Five Questions, each carries two marks (5 × 2 = 10)
Question 11.
What is Capital Fund?
Answer:
Capital fund is the difference between the assets and liabilities of the not for profit organization. It is aggregate capital items like legacies, entrance fees and life membership fees.
Question 12.
Write any two contents of partnership deed.
Answer:
Contents of partnership deed.
(a) Name and address of the firm.
(b) Name and address of all the partners or any other
Question 13.
State any two methods of valuation of goodwill.
Answer:
The important methods of valuation of goodwill are as follows.
(a) Average profits method
(b) Super profits method or any other
Question 14.
Give the journal entry for a liability taken over by a partner on dissolution of firm.
Answer:
Question 15.
What is Oversubscription?
Answer:
The process whereby the applications for the shares of a company is received in a higher number than the shares called for subscription is referred to as Over Subscription.
Question 16.
Write any two Limitations of financial statements.
Answer:
(a) Do not reflect current situation: Financial statements are prepared on the basis of historical cost. Since the purchasing power is changing, the values of assets and liabilities shown in financial statement do not reflect current market situation.
(b) Bias: Financial statements are the outcome of recorded facts, accounting concepts and conventions used and personal judgments made in different situations by accountants.
Question 17.
State any two uses of financial statement analysis.
Answer:
Uses of financial statement analysis
(a) Help the financial manager to take better decisions.
(b) Help the management in measuring the success of the company’s operations.
Question 18.
Mention any two activates which are classified for preparation of cash flow statement as per AS – 3.
Answer:
Two activities for the preparation of cash flow statement are:
[a) Operating activities
(b) Investing activities or
(c) Financing activities
Section – C
III. Answer any four question, each carries six marks: (4 × 6 = 24)
Question 19.
Mahesh, partner in a firm withdrew the following amounts during the year ended March 31, 2018.
May 01, 2017 | ₹ 10,000 |
September 30,2017 | ₹ 8,000 |
November 01,2017 | ₹ 7,000 |
January 31,2018 | ₹ 12,000 |
Calculate interest in his drawings at 9% p.a. under product method.
Answer:
Interest = Total products × \(\frac { 1 }{ 2 }\) × Rate of interest
= ₹ 2,17,000 × \(\frac { 1 }{ 2 }\) × \(\frac { 9 }{ 100 }\)
= ₹ 1627.50 or ₹ l,628
Question 20.
Ankit, Suchit and Chandru are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2 Ankit retires from the firm. Suchit and Chandru agreed to share in the ratio of 5 : 3 in future.
Calculate gaining ratio of Suchit and Chandru
Answer:
O.R.S Ratio = Anikit – 4: Suchit – 2 : Chandru – 2
NPSR = Suchit – 5 : Chandru – 3 Share of Gain = New Share (-) Old share
Gain ratio of Suchit and Chandru is
\(\frac{21}{72}: \frac{11}{72}\) = 21 : 11
Question 21.
A, B and C are the partners in a business sharing profits and losses in the ratio 2:2:1 respectively. Their Balance Sheet as on 31st march, 2017 was as follows:
C died on 30th Sept 2017. The partnership deed provides the following:
a. The deceased partner will be entitled to his share of profit up the date of death calculated on the basis of previous year’s profit.
b. He will be entitled to his share of goodwill of the firm calculated on the basis of three years purchases of average of last four years profit. The profits for last four years are given below;
c. Interest on capital is to be allowed at 12 % p .a.
Prepare C’s Executors account
Answer:
Question 22.
Anand Co., Ltd, issued 10,000 10% debentures at ₹ 100 each payable as:
₹ 20 on application
₹ 50 on allotment and
₹ 30 on first and final call
All the debentures were subscribed and money duly received.
Pass necessary journal entries.
Answer:
Question 23.
From the following particulars, prepare statement of profit and loss for the year ending 31st March 2017 as per the schedule III of the companies Act of 2 013./Revised Schedule VI of the companies Act, 1956.
Answer:
Question 24.
From the following particulars, calculate current ratio and quick ratio:
Particulars | ₹ |
Inventories | 2,20,000 |
Trade Receivables | 90,000 |
Cash in hand | 222,800 |
Current investment | 7,200 |
Trade payables | 2,34,000 |
Proposed dividend | 6,000 |
Bank overdraft | 60,000 |
Answer:
(b)
Quick assets = Current assets (-] Inventory
= 3,40,000 (-) 2,20,000 = 1,20,000
Quick ratio = \(\frac{1,20,000}{3,00,000}\) = 0.4
Quick ratio = 0.4 : l
Question 25.
Praful Ltd, arrived at a net income of ₹ 5,00,000 for the year ended March 31,2018. Depreciation for the year was ₹ 2,00,000. There was a profit of ₹ 50,000 on asset sold which was transferred to statement of profit and loss. Trade receivables increased during the year ₹ 40,000 and trade payables also increased by ₹ 60,000.
Answer:
Section – D
IV. Answer any Four questions, each carries twelve marks: (4 × 12 = 48)
Question 26.
Following are the Balance Sheet and Receipt and payment Account of Golden Sports Club, Vijayapura.
Adjustments:
(a] Outstanding subscription for 2018 ₹ 1,000.
(b) Outstanding Salary as on 31 -3-2018 ₹ 5,000
(c] Half of the entrance fees to be capitalized.
(d) Depreciate sports materials @ 20% p.a
Prepare
(i) Income and Expenditure account for the year ending 31-3-2018 and
(ii) Balance Sheet as on that date.
Answer:
Question 27.
Raja and Rani are partners in a firm sharing profits and losses in the ration of 3:2. Their balance sheet as at 31.3.2018 was as follows.
On 1.4.2018 they admitted mantri as a partner and offered hini l/5th share in the future profits on the following terms.
a. Mantri has to bring in ₹ 30,000 as his capital and 10,000 towards goodwill. Goodwill is to be withdrawn by the old partners.
b. Depreciate Machinery by 5%
c. Appreciate buildings by 10%
d. PBD is maintained at 4,000 and investments are to be revalued at ₹ 25,000
Prepare :
(i) Revaluation Account
(ii) Partner’s Capital Account
(iii) New Balance Sheet of the firm.
Answer:
Question 28.
Tanu and Sonu are partners in a firm sharing profits and losses in the ratio of 3:2. They decided to dissolve their firm on 31.3.2018 their balance was as follows:
The following information is available :
a. Machinery were given to creditors in full settlement of their account and stock were given to bills payable in full settlement.
b. Investments are taken over by Sonu at book value. Sundry Debtors book value of ₹ 50,000 were taken over by Tanu at 10 % less and remaining debtors realized ₹ 51„000.
c. Sonu paid realisation expenses of ₹ 1,000 and she was to get remuneration of ₹ 2,000 for completing the dissolution process.
Prepare:
(a) Realisation A/c
(b) Partner’s capital accounts and
(c) Bank a/c
Answer:
Question 29.
Sun India Ltd. Issued 20000 shares of ₹ 100 each at a premium of ₹ 10 each. The amount was payable as follows:
₹ 20 on application.
₹ 50 on allotment (including premium)
₹ 40 on first and final call
All the shares were subscribed and money duly received except the first and final call money on 1000 shares. The directors forfeited these shares and re-issued them as fully paid @ ₹ 90 per share.
Pass the journal entries relating to issue, forfeiture and re-issue.
Answer:
Question 30.
Give journal entries for the following:
a. Issue of ₹ 2,00,000 12% debenture of ₹ 100 each at par and redeemable at par.
b. Issue ₹ 50,000,10% debenture of ₹ 100 each at a premium of 5% but redeemable at par.
c. Issue of ₹ 3,00,000, 8% debenture of ₹ 100 each at a discount of 5% repayable at par.
d. Issue of ₹ 1,00,000, 9% debenture of ₹ 100 each at par but repayable at a premium of 5%.
Answer:
Question 31.
From the following Balance Sheet of LG industries ltd. Calculate the trend percentages using 31.3.2016 as base year.
Answer:
Trend analysis base year 2016 = 100
Question 32.
From the following particulars calculate:
a. Inventory turnover ratio
b. Trade receivable turnover ratio
c. Trade payable turnover ratio
d. Gross profit ratio
e. Operating ratio
f. Net profit ratio
Particulars | ₹ |
Revenue from operations | 10,00,000 |
Gross profit | 2,00,000 |
Average inventory | 1,00,000 |
Net credit revenue from operations | 6,00,000 |
Average Trade Receivables | 1,50,000 |
Net credit purchases | 5,00,000 |
Average trade payables | 2,50,000 |
Operating expenses | 1,00,000 |
Net profit | 1,00,000 |
Answer:
Section – E
Practical oriented Questions
V Answer any two Questions, each carries Five Marks (2 × 5 = 10)
Question 33.
Write the Partners Capital Account under Fluctuating Capital system with 5 imaginary figures.
Answer:
Question 34.
Write the Proforma of a Balance sheet with main heads only.
Answer:
Question 35.
Prepare comparative statement of Profit & loss with 5 imaginary figures.
Answer: