2nd PUC Accountancy Model Question Paper 5 with Answers

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Karnataka 2nd PUC Accountancy Model Question Paper 5 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 lime 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.
______ are the amount received as per the will of the deceased person.
Answer:
Legacies

Question 2.
State any one method of maintaining partner’s capital account
Answer:
Fixed Capital System.

Question 3.
The balance of reserves and other accumulated profits at the time of admission of a new partner are transferred to
(a) All partners in the new ratio
(b) Old partners in the new ratio
(c) Old partners in the old ratio
(d) Old Partners in sacrifice ratio
Answer:
(c) Old partners in the old ratio

Question 4.
Profit or loss on revaluation is transferred to all the partner’s capital account, in case of retirement of a partner. [True/False]
Answer:
True

2nd PUC Accountancy Model Question Paper 5 with Answers

Question 5.
The directors of Eshwara Ltd. made the final call of ₹ 30/share on 15.5.18 indicating the last date of payment of call money to be 31.5.18. Mr. Ganesha, holding 5,000 shares paid the call money on 15.7.18. If the company adopts Table A, the interest payable on calls-in-arrears is ________
Answer:
₹ 937.50
Working Notes:
5,000 shares × ₹ 30/share = ₹ 1,50,000
Over due period = 31.5 to 15.7 is 1.5 months
Table A for calls-in-arrears = 5%
= 1,50,000 × 5% × 1.5/12 = ₹ 937.50

Question 6.
Loss on issue of debentures is treated as _____________
Answer:
Other Non-Current Assets.

Question 7.
Expand PBT.
Answer:
Profit before Tax

Question 8.
The method of financial statement analysis determining the direction of the items either upwards or downwards and involves the computation of percentage relationship that each statement items bear to the same item in the base year is ___________
(a) Trend Analysis
(b) Ratio Analysis
(c) Cash Flow Analysis
(d) Comparative Statement Analysis
Answer:
(a) Trend Analysis

Question 9.
What are Liquidity Ratios?
Answer:
To meet its commitments, business needs liquid funds.S.The ability of the business to pay the amount due to the stakeholders as and when it is due is known as liquidity, and the ratios calculated to measure it are known as ‘Liquidity Ratios’.

Question 10.
Give an example for cash flows from operating activities.
Answer:
Cash receipts from royalties, fees, commission etc., is an example for cash flows from operating activities.

2nd PUC Accountancy Model Question Paper 5 with Answers

Section – B

II. Answer any five questions. Each carries two marks (5 × 2 = 10)

Question 11.
What is a Not for Profit Organisation ? Give two examples.
Answer:
A Not for Profit Organisation is that concern started not for doing business and making profit but for promoting art, culture, sports, science, charity, literature etc. These concerns are created to render services to their members and to the general public.
(For eg. Educational institutions like schools, colleges. Public hospitals, public libraries, sports club etc.)

Question 12.
What is profit and loss appropriation account?
Answer:
The profit and loss appropriation account is continuation of Profit and Loss A/cs., which is prepared to appropriate the profits of the firm. Items such as interest on Partner’s capital, drawings, loans, current accounts, partner’s salaries or commission and also the final apportionment or division of the net profits among the partners are recorded in the Profit and Loss Appropriation A/c.

Question 13.
What is Revaluation A/c?
Answer:
Revaluation account is an account opened for the purpose of ascertaining the profit or loss on account of revaluation of assets and liabilities of the firm.

Question 14.
What is meant by Dissolution of a firm?
Answer:
Dissolution of a firm means the complete closing down of the business of the partnership firm. In other words when all the business activities of a partnership are brought to an end it is the case of dissolution of a firm.

Question 15.
What is Buy Back of Shares?
Answer:
The process under which the company purchases its own shares from existing equity shareholders, open market, odd lot shareholders or employees of the company is called as Buy Back of Shares.

Question 16.
What is a Statement of Profit and Loss?
Answer:
Statement of Profit and Loss records the summarized report of the expenses incurred and the revenues earned during the accounting period. It helps n the process of ascertainment of the profits or losses incurred by the company during the financial year.

Question 17.
Define Analysis of Financial Statements.
Answer:
According to Metcalf and Titurd, “Analysis of Financial Statements is the process of evaluating the relationship between component parts of financial statement to obtain a better understanding of a firm’s position and performance”.

Question 18.
State the types of Cash flows.
Answer:
The types of Cash flows are as follows:

  • Actual Cash Flow
  • Notional Cash Flow

2nd PUC Accountancy Model Question Paper 5 with Answers

Section – C

III. Answer any four Questions. Each Question carries six marks (4 × 6 = 24)

Question 19.
Arun & Varun are the partners sharing profits & losses in the ratio of 2:1. Their opening capital being ₹ 80,000 & ₹ 50,000 respectively. They earned a profit of ₹ 20,000 before allowing the following:
(a) Interest on capital @ 8% p.a.
(b) Interest on drawings: Arun ₹ 2,000
Varun ₹ 2,500
(c) Salary to Arun ₹ 3,000 p.a.
(d) Commission to Varun ₹ 2,000 p.a.
Prepare Profit & Loss Appropriate Account.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 1

Question 20.
A, B and C are Partners’ Sharing Profits and Losses in the ratio of 1:1:1. B retires from the firm. A and C decided to share the profit in future in the ratio of 4:3.
Answer:
Calculate the Gain ratio.
Gain Ratio = New Share of remaining partners (-) Old Share of remaining partners
2nd PUC Accountancy Model Question Paper 5 with Answers - 2
∴ Gain Ratio = \(\frac{5}{21}: \frac{2}{21}\)

2nd PUC Accountancy Model Question Paper 5 with Answers

Question 21.
Shankar, Sheenu and Karath are partners sharing profits and losses in the ratio of 2 : 2 :1. Their capital balances on 31.3.17 stood at ₹ 70,000, ₹ 50,000 and ₹ 40,000 respectively. Sheenu died on 30.06.17.
According to partnership deed, Sheenu executors are entitled to get the following:
(a) Sheenu’s capital as on 31.3.2017
(b) Interest on capital at 6% p.a.
(c) Salary to Sheenu at ₹ 1,000 per month.
(d) Sheenu’s share of goodwill. Goodwill of the firm is ₹ 60,000.
(e) Sheenu is entitled for commission of ₹ 4,000 per year
Prepare:
Sheenu’s Capital account.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 3

Question 22.
Padmavati Ammal Co. Ltd., issued 2,000 10% debentures of ₹ 100 each at a discount of 10% payables to ₹ 20 on application, ₹ 20 on allotment, and the balance on first and final call.
All the debentures were subscribed and the money duly received.
Pass the journal entries up to the stage of first and final call money due.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 4

2nd PUC Accountancy Model Question Paper 5 with Answers

Question 23.
From the following trial balance and other information, Statement of Profit and Loss for the year ending 31st March 2018 as per Schedule III of Companies Act, 2013.
2nd PUC Accountancy Model Question Paper 5 with Answers - 5
Adjustments:
1. Tax rate 30%
2. Depreciation on plant and machinery at 10% and amortisation of goodwill by ₹ 24,000.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 6

Question 24.
Honda Ltd. has inventory of 20,000. Total liquid assets are 1,00,000 and Quick Ratio is 2: 1. Calculate Current Ratio.
Answer:
Given: Quick Ratio = \(\frac { 2 }{ 1 }\)
Quick Assets = Current Assets (-) Inventory
1,00,000 = x (-) 20000
Current Assets x = 1,00,000 (+) 20,000
Current Assets x = 1,20,000
2nd PUC Accountancy Model Question Paper 5 with Answers - 7
So, Current Liabilities = \(\frac{2}{1}=\frac{1,00,000}{x}\) = (cross multiplying)
So, 2(x) = 1,00,000
Current Liabilities(x) = \(\frac{1,00,000}{2}\) = 50,000
So, Current Assets = ₹ 1,20,000, Current Liabilities = ₹ 50,000
2nd PUC Accountancy Model Question Paper 5 with Answers - 8

2nd PUC Accountancy Model Question Paper 5 with Answers

Question 25.
From the following information, calculate cash flow from investing activities.
2nd PUC Accountancy Model Question Paper 5 with Answers - 9
In the year 2017, machine costing ₹ 2,00,000 was sold at a profit of ₹ 1,50,000. Depreciation charged on machine during the year 2016 amounted to ₹ 2,50,000.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 10
2nd PUC Accountancy Model Question Paper 5 with Answers - 11
2nd PUC Accountancy Model Question Paper 5 with Answers - 12
Importnat Points:

  • In this problem we are not considering depreciation during the calculation of sales price because, machine is sold in 2017. But depreciation year in the question is for 2016.
  • However in the Ledger A/c, depreciation has to be taken.
  • If balancing figure in asset account ¡s on:
    Dr, side = Purchases
    Cr. side = Depreciation/Sales.

2nd PUC Accountancy Model Question Paper 5 with Answers

Section – D

IV. Answer any four questions. Each question carries twelve marks (4 × 12 = 48)

Question 26.
Followings are the Balance Sheet and Receipts and Payments Account of Buddivardaka Library, Sirsi.
2nd PUC Accountancy Model Question Paper 5 with Answers - 13
Adjustments:
(a) Outstanding rent on 31.03.2018 was ₹ 300
(b) Subscriptions receivable for the year 2017-18 amounted to ₹ 400
(c) Subscriptions received for the year 2018-19 was ₹ 800
(d) Half of the entrance fees and half of the donations are to be capitalised,
(e) Depreciate books at 10% p.a.
Prepare
(i) Income and Expenditure Account and
(ii) Balance Sheet as on 31.03.2018.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 14
2nd PUC Accountancy Model Question Paper 5 with Answers - 15

2nd PUC Accountancy Model Question Paper 5 with Answers

Question 27.
Rajesh and Rakesh are partners in a firm sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31.03.2017 stood as follows:
2nd PUC Accountancy Model Question Paper 5 with Answers - 16
On 01.04.2017, Rohan is admitted into the partnership On the following terms:
(a) Rohan Pays ₹ 20,000 as capital. The Goodwill of the firm is valued at ₹ 20,000 and Goodwill Account should not remain in books.
(b) Buildings are appreciated by ₹ 5,000 & machinery is depreciated by 20%.
(c) Provision for doubtful debts is increase by ₹ 1,000.
(d) The new profit sharing ratio between the partners is 5:3:2.
Prepare:
(i) Ravaluation Account
(ii) Partners’ Capital Accounts &
(iii) Balance Sheet of the firm after admission.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 17
2nd PUC Accountancy Model Question Paper 5 with Answers - 18

2nd PUC Accountancy Model Question Paper 5 with Answers

Question 28.
Meena and Tina are partners in a firm sharing profits in the ratio of 3:2. They decided to dissolve the firm as on 31-3-18 when their balance sheet depicted the following position.
2nd PUC Accountancy Model Question Paper 5 with Answers - 19
The assets and liabilities were disposed off as follows:
1. Machinery were given to A/C payables in full settlement of their account and stock were given to bills payable is full settlement.
2. Investments were taken over by Tina at book value.
3. A/c Receivables of book value ₹ 50,000 were taken over by Meena at 10% less and remainder of the asset realised ₹ 51,000.
4. Realisation expenses amounted to ₹ 2,000.
You are required to prepare the necessary ledger accounts.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 20
2nd PUC Accountancy Model Question Paper 5 with Answers - 21
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2nd PUC Accountancy Model Question Paper 5 with Answers

Question 29.
M.S. Ramaiah Co., Ltd., issued 10,000 shares of ₹100 each payable as under.
On Application ₹ 20
On Allotment ₹ 40
On First and Final Call ₹ 40
Applications were received for 15,000 shares, of which applications for 3,000 shares were rejected and their application money refunded and the remaining 2,000 share application money on 2000 shares are adjusted towards allotment. All the calls were made and all the moneys were duly received except the first and final call on 500 shares. The Directors forfeited these Shares and then re-issued at ₹ 75 per share as fully paid-up.
Pass the journal Entries.
Answer:
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2nd PUC Accountancy Model Question Paper 5 with Answers - 24
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2nd PUC Accountancy Model Question Paper 5 with Answers

Question 30.
Give the necessary journal entries at the time of redemption of debentures in each of the following situations, if redemption is done on Lumpsum basis:
a. Vadiraj Ltd., issued 5,000,10% Debentures of ₹ 100 each at par and redeemable at par at the end of 5 years out of capital.
b. Vadiraj Ltd., issued 1,000,9% Debentures of ₹ 100 each at par. These debentures are redeemable at 10% premium at the end of 4 years.
c. Vadiraj Ltd., issued 8% Debentures of the total face value of ₹ 1,00,000 at a premium of 5% to be redeemed at par at the end of 4 years.
d. Vadiraj Ltd., issued ₹ 1,00,000, 7% Debentures at a discount of 5% but redeemable at a premium of 5% at the end of 5 years.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 26
2nd PUC Accountancy Model Question Paper 5 with Answers - 27

2nd PUC Accountancy Model Question Paper 5 with Answers

Question 31.
From the following information of Krishnan R Co. Ltd Prepare a Comparitive Profit and Loss Statement for the year 2012 and 2013.
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Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 29

Question 32.
The followings are the summarized profit and loss Account for the year ended 31.12.2018 and Balance sheet
2nd PUC Accountancy Model Question Paper 5 with Answers - 30
Additional Information:
(a) Average Debtors ₹ 25,000
(b) Average Credit Purchase ₹ 80,000

You are Required to calculate
(i) Gross Profit Ratio
(ii) Operating Ratio
(iii) Net Profit Ratio
(iv) inventory Turnover Ratio
(y) Trade Receivable Turnover Ratio
(vi) Trade Payable Turnover Ratio
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 31
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2nd PUC Accountancy Model Question Paper 5 with Answers

Section – E

V. Answer any two questions. Each carries five marks: (2 × 5 = 10)

Question 33.
Write two Partners Capital Account under Fluctuating Capital System with 5 imaginary figures.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 34

Question 34.
Prepare a Statement of Profit & Loss of a company in vertical form with imaginary figures of 5 main heads.
Answer:
2nd PUC Accountancy Model Question Paper 5 with Answers - 35

2nd PUC Accountancy Model Question Paper 5 with Answers

Question 35.
Classify the following cash flow activities into operating, investing, financing as per A.S. – 3
Answer:

  1. Depreciation – Operating Activities
  2. Increase in Stock – Operating Activities
  3. Dividend Received on Shares – Investing Activities
  4. Purchases of Land – Investing Activities
  5. Dividend Paid to Equity Share Capital – Financing Activities