Plus Two Accountancy Model Question Papers Paper 2

Plus Two Accountancy Model Question Papers Paper 2 are part of Plus Two Accountancy Previous Year Question Papers and Answers. Here we have given Plus Two Accountancy Model Question Papers Paper 2.

Plus Two Accountancy Model Question Papers Paper 2

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

General Instructions to Candidates

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
• Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
•  Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and only internal choice is allowed.
•  When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures and graphs should be shown in the answer sheet itself.• Malayalarn version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non programmable calculators are not allowed in the Examination Hall.

Answer all questions from 1 to 3. Each carries 1 score.

Question 1:
A partner acts as ……… for a firm.  (1)

Question 2:
In non-profit organizations excess of asset over liabilities is called (1)


a. Capital block
b. General fund
c. Siiareholders fund
d. Capital

Question 3:
P,Q and R are partners sharing profits and losses in the ratio of 5 : 3 :2. Calcualte the new profit sharing ratio and sacrificing ratio if R acquires 1/10th share equally from P and Q. (3)

Answer any 2 questions from 4 to 6, each carries ‘2’ scores.

Question 4:
From the following particulars taken from the cash book of ABC Club, prepare a receipts and payments A/C. (5)

Question 5:
X, Y and Z are partners in a firm sharing profits in the ratio of 4:3:2. Y retires from the business and his share of profit is acquired by X and Z in the ratio of 1:2. Calculate the new profit sharing ratio and gaining ratio. (5)

Answer any 5 questions from 7 to 12, each carries ‘2’ scores.

Question 6:
What are the difference between Capital Expenditure and Revenue Expenditure (5)

Question 7:
Write the various matters that need adjustments at the time of retirement of a partners. (5)

Question 8:
S and G are partners in a firm sharing profits and losses equally. On 1^st April, 2011, the capitals of the partners were ₹4,00,000 and ₹3,00,000 respectively. The profit and loss appropriation account of the firm showed a net profit of ₹7,50,000 for the year ended 31st March, 2012. The terms of partnership deed provided the following:

i. Transfer 10% of distributable profits to reserve fund.
ii. Interest on capitals @ 6% per annum.
iii. Interest on drawing @ 6% per annum. Drawings being S ₹80,000 and G ₹60,000.
Prepare profit and loss appropriation account for the year ended 31^st March, 2012. (5)

Question 9:
Describe in brief the function of ‘Table’, ‘Query’, ‘Form’ and ‘Report’ object of Access program?

Question 10:
Anju and Manju are partners sharing profits in the ratio of 2:1. Sanju is admitted into the firm for 1/4 share of profits. Sanju brings in Rs. 20,000 in respect of his capital. The capitals of old partners Anju and Manju, after all adjustments relating to goodwill, revaluation of assets and liabilities etc., are Rs. 45,000 and Rs. 15,000 respectively. It is agreed that partners capitals should be according to the new profit shanng ratio. Determine the new capitals of Anju and Manju and record the necessary journal entries assuming that the partner whose capital falls short, brings in the amount of deficiency and the partner who has an excess, withdraws the excess amount (5)

Question 11:
Chithra, Pavitha and Geetha are partners in a firm. Pavitha retires from the firm, on the date of retirement, Rs 30000 is due to her. Chithra and Geetha promises to repay the amount in three equal instalments at the end of every year. Prepare Pavitha’s loan Nc if they agreed to pay in three equal yearly instalments together with interest @ 10%.(7)

Question 12:
What are the use of ‘query’ object in Access program? (5)

Answer any 2 questions from 13 to 15, each carries 5’ scores.

Question 13:
The following was the Balance Sheet of Om & Co. in which X, Y, Z were partners sharing profits and losses in the ratio of 1: 2 :2 as on 31.3.2011. Mr. Z died on 31^st December, 2011. His account has to be settled under the following terms.
Balance Sheet of Om & Co. as on 31.3.2011

Goodwill is to be calculated at the rate of two years purchase on the basis of average of three years profits and losses. The profits and losses for the three years were detailed as below :

Year ending on                                        profit/loss
31.3.2011                                                      30,000
31.3.2010                                                     20,000
31.3.2009                                              (10,000) Loss

Profit for the period from 1.4.2011 to 31.12.2011 shall be ascertained proportionately on the ba-sis of average profits and losses of the preceding three years.

During the year ending on 31.3.2011 a car costing if ₹40,000 was purchased on 1.4.2010 and debited to travelling expenses account on which depreciation is to be calculated at 20% p.a.This asset is to be brought into account at the depreciated value.

Other values of assets were agreed as follows :
Stock at ₹16,000, building at ₹1,40,000, computers at ₹50,000; investments at ₹6,000. Sundry debtors were considered good.
Your are required to :

1. Calculate goodwill and Z’s share in the profits of the firm for the period 1.4.2011 to 31.12.2011.
2. Prepare revaluation account assuming that other items of assets and liabilities remained the same.

Question 14:
Arun is a partner in a firm in which he is entitled to 1/6 share in profits. On January 1,2014 his capital account showed a credit balance of ₹18,000. On June 30, 2015, he decided to retire from the business on which date goodwill of the firm was valued at ₹24,000 (no goodwill appears in the book) and in terim profit of the firm upto that date was valued at ₹9,000. The books of the flrmshowed balance in general reserve of ₹13,200. Arun has withdrawn ₹4,000 from the business during the year. Compute the total amount payable to Arun. (5)

Question 15:
What are the difference between scarifying ratio and Gaining ratio? (5)

Answer the following. It carries 8 score

Question 16:
a. i. What do you mean by Not-for-Profit Organisation? What are the Accounting Records of such organizations?
ii. Explain the steps involved in the preparation of Receipt and Payment A/c and income & Expenditure A/c. (8)

Answers

Answer 1:
Agent

Answer 2:
b. Death of a partner

Answer 3:
The new profit sharing ratio will be calculated as follows

Answer 4:

Answer 5:
i. Calculation of new profit sharing ratio
X’s old share = \(\frac { 4 }{ 9 }\)
Share acquired from Y = \(\frac { 3 }{ 9 }\) x \(\frac { 1 }{ 3 }\) = \(\frac { 1 }{ 9 }\)
X’s newratio = His old share + acquired from Y
i.e., \(\frac { 4 }{ 9 }\) X \(\frac { 1 }{ 9 }\) = \(\frac { 5 }{ 9 }\)
Z’s old share = \(\frac { 2 }{ 9 }\)
Share acquired from Y = \(\frac { 3 }{ 9 }\) X \(\frac { 2 }{ 3 }\) = \(\frac { 2 }{ 9 }\)
Z’s new share = His old share + share acquired from Y
i.e., \(\frac { 2 }{ 9 }\) X \(\frac { 2 }{ 9 }\) = \(\frac { 4 }{ 9 }\)
New profit sharing ratio of X and Z = \(\frac { 5 }{ 9 }\) X \(\frac { 4 }{ 9 }\) or 5 : 4

Gaining ratio
Since X and Z acquired Y’s share in the ratio of 1: 2, their gaining ratio will also be 1: 2

Answer 6:

Answer 7:
Retirement
A partners withdrawal from the business with the consent of other partners or as per the provisions of partnership deed or by giving notice of retirement.

Adjustment required at the time of retirement of a partner

1. Calculation of new ratio, gaining ratio
2. Adjustment regarding goodwill
3. Adjustment of reserves and accumliated profit/loss.
4. Revaluation of assets and liabilaties
5. Ascertainment of profit or loss up to the date of retirement calculation of total amount due to the retiring partner
6. Calculation of total amount due to the retiring partner
7. Settlement of total amount due to the retiring partner
8. Adjustment of capital account

Answer 8:
Note: In thé absence of date of drawings. interest on drawing have been calculated on an average basis for 6 months.
Working Note:
Calculation of Amount Transferred to Reserve Fund
Distributable Profits = Profit + Interest on
Drawings – Interest on Capital
= 7,50,000 + 2,400 + 1,800 -24,000 – 18,000 = ₹7,12,200
Amount transferred to reserve fund = 7,12,200 x 10/100 = ₹71 ,220

Answer 9:
Table: Table are used to store the data in the databse. Access database hold the ‘actual data records inside tables. A table is a database object used to store data about a particular subject. A datasheet displays the information stored in a table in columns and rows. That is, a table consists of records and fields.

Query: Queries are used to find and retrieve secific information of interest stored in ta bles. A query is a basic tool that Access provides for retrieving information from the databse. It is used to review, add, change or delete data from the database. It allows taking information from single or multiple tables to obtain the data required.

Form: Forms are screen that allow viewing, adding, and updating the data stored in the tables. A form is used to enter, edit, or dis play data in database. That is, a form is a different view of the database. Form can be designed for effective retrieval of data through automated searches.

Report: Report allow printing the data based on queries from the tables in a specific lay out. The MS Access Report provides the ability to its users to present the data queried from any data source in a formatted, stylized way. The report can be based on either a table or a query.

Answer 10:
a. Calculation of new profit sharing ratio.
Assuming the new partner Sanju requires his share from A&B in their old profit sharing ratio 2:1 .
Total share =1, Sanju’s share = \(\frac { 1 }{ 4 }\)
Remaining shares =1 – \(\frac { 1 }{ 4 }\) = \(\frac { 3 }{ 4 }\)
Anju’s new share = \(\frac { 3 }{ 4 }\) x \(\frac { 2 }{ 3 }\) = \(\frac { 6 }{ 12 }\)
Manj’s new share = \(\frac { 3 }{ 4 }\) x \(\frac { 1 }{ 3 }\) = \(\frac { 3 }{ 12 }\)
Sanj’s new share = \(\frac { 1 }{ 4 }\) x \(\frac { 3 }{ 3 }\) = \(\frac { 3 }{ 12 }\)
Thus new profit sharing ratio between Anju, Manju & Sanju is 6 : 3 : 3 or 2 : 1 : 1

b. Required Capital of Anju & Manju Sanju’s capital (who has ¼ share in profits) is Rs. 20,000 Manj’s new share in profit ¼. Hence her capital will be Rs. 40,000. .

Alternatively based on Sanju’s Capital, the total Capital of the firm works out at Rs. 80,000( 4 x I x Rsh 20,000) Hence based on then share in profits, the capital of Anju & Manju will be
Anju’s Capital = \(\frac { 2 }{ 4 }\) of 80,000=Rs. 40,000
Manju’s Capital = \(\frac { 1 }{ 4 }\) of 80,000Rs. 20,000

The capital of Anju&Manju Mu after all adjustments have been made, are Rs. 45,000 & Rs. 15,000 respectively. Hence , Anju will withdraw Rs.5,000 (Rs. 45,000 – Rs. 40,000) from the firm where as Manju will contribute additional amount of Rs. 5,000/- (Rs. 20,000 – Rs. 15,000/- )

Answer 11:

a. Paying off rralization gxpenses
b. Paying the depts of third parties, creditors, Bank OD, Bills payable.
e. Repayment of Loan from partners.
d. Repayment of capital contributed by partners.
e. Surplus if any distributed to partners in the profit sharing ratio.

Answer 12:
An Accounting Information system is a collection of data and processing procedure that create needed information for its users.
The subsystems of AIS are
a. Cash and Bank sub-system

b. Sales and Accounts receivable sub system

c. Inventory sub-system

d. Purchase and Account payable sub system

Answer 13:
Calculation of goodwill and Z’s share of profit:
a. Adjusted profit for the year ended 31.3.2011 :
Profit (Given)
Add: Cost of car wrongly written off
Less : Depreciation for the year 201 0-11
(20% on ₹40,000)

Answer 14:
To find out the amount due to Arun. His capital account has to be prepared in which all his entitilement are to be posted.

Answer 15:

Answer 16:
b. i. Not-for -profit Organisation refer to the organisations that are for used for the wel fare of the society and are set up as charitable institutions which function without any profit motive. Their main aims is to provide service to a specific group or the public at large. Normally, they do not manufacture, purchase of sell goods and may not have credit transactions. Hence they need not maintain many books of account (as the trading concerns do) and Trading and Profit and Loss Account. The funds raised by such organisations are credited to capital fund or general fund. The major sources of their income usually are subscriptions from their members donations, grants-in- aid, income from ¡nvestments, etc. The main objective of keepting records in such organisations is to meet the statutory re quirement and help them in exercising control over utilisation of their funds. They also have to prepare the financial state ments at the end of each accounting period (usually a financial year) and ascerta in their income and expenditure and the financial position, and submit them to the statutory authority called Registrar of Societies.

As stated earlier, normally such organisations are not engaged in any trading or bu siness activities.The main sources of their income are subcriptions from members, donations, financial assistance from gov ernment and income from investments. Most of their transactions are in cash or through the bank. These institutions are required by law to keep proper account ¡ng records and keep proper control over the utilization of their funds. This is why they usually keep a cash book in which all receipts and payments are duly recorded.
They also maintain a ledger containing the accounts of all incomes, expenses, assets and habilites which facilitates the prepa ration of financial statements at the end of the accounting period. In addition, they are required to maintain a stock register to keep complete record of all fixed assets and the consumables.

Final Accounts of Financial Statements: The Not-for-Profit Organisations are also required to prepare financial statements at the end of the each accounting period. Although these organisations are non-profit making entities and they are not required to make Trading and Profit & Loss Account but it is necessary to know whether the income during the year was sufficient to meet the expenses or not. Not only that they have to provide the necessary financial information to members, donors, and contributors and also to the Registrar of Societies. For this purpose, they have to prepare their final accounts at the end of the accounting period and the general principles of accounting are fully applicable in their preparation as stated earlier, the final accounts of a ‘not-for-profit organisation’ consist of the following.

1. Receipt and Payment Account
2. Income and Expenditure Account, and
3. Balance Sheet.

The Receipt and Payment Account is the summary of cash and bank transations which helps in the preparation of Income and Expenditure Account and the Balance Sheet. Income and Expenditure Account is akin to Profit and Loss Account. The Not for-Profit Organisations usually prepare the

income and Expenditure Account and a Balance Sheet with the help of Receipt and Payment Account. In fact, if an organisation has followed the double entry system they must prepare atrial balance for checking the accuracy of the ledger accounts and it will also facilitate the preparation of receipt and Payment account. Income and Expenditure Ac count and the Balance Sheet.

ii. Following steps may be helpful in preparing an Income and Expenditure Account from a given Receipt and payment Ac count:

1. Persye the Receipt and Payment Account thoroughly .
2. Exclude the opening and closing balances of cash and bank as they are notan income.
3. Exclude the capital receipts and capital payments as these are to be shown in the Balance Sheet.
4. Consider only the revenue receipts to be shown on the income side of Income and Expenditure Account. Some of these need to be adjusted by excluding the amounts relating to the preceding and the succeeding periods and including the amounts relating to the current year not yet received.
5. Take the revenue expenses to the expenditure side of the Income and Expenditure Account with due adjustments asper the additional information providedrelating to the amounts received in advance and those not yet received.
6. Consider the following items not appearingin the Receipt and Payment Account that need to be taken into account for determing the surplus/deficit for the current year:
   • Depreciation of fixex assets.
   • Provision for doubtful debts, if required.
   • Profit or loss on sale of fixed assets.

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