Aadarsha
AROMA Secondary School
English School
Principle of Accounting-II
Grade: XII Set: 4
Time: 3 Hrs. Full Marks: 75
(The candidates are required to give their answers in their own words as far as practicable. The
figure in the margin indicate full marks.)
(Group A)
Very Short answer questions
Attempt all questions [1×11=11]
1. Define company.
2. Write main documents of company.
3. Mention any two types of share capital.
4. Write any two limitation cost accounting.
5. What is bin card?
6. Write any two disadvantages of time rate system.
7. What do you mean by financial statements?
8. Write any two points which are not included in cost sheet.
9. Mention any two uses of computer in accounting.
10. Annual requirement is 30,000 units. The carrying and ordering cost are Rs. 2 per unit and Rs.
300 respectively. Find the EOQ.
11. Opening balance Retained earnings Rs. 40,000. Net profit Rs. 60,000 and proposed dividend
Rs. 30,000. Find out closing retained earnings.
(Group B)
Short answer questions
(Attempt any eight questions) [8×5 =40]
12. A microfinance company issued 10,000 shares of Rs.100 each at a premium of 10% payable as
follows:
On application Rs.20
On allotment Rs.60 (Including Premium)
On First and final call Rs.30
Applications were received for 18,000 shares. The BOD decided to allot as follows;
To application for 8,000 shares in full,
To application for 6,000 shares rejected
To application remaining shares pro-rata
Excess money on prorate basis is utilized towards allotment and call money. All money
received but Mr. Chhetri holding 400 shares failed to pay call money and his shares were
forfeited.
Required: - Journal entries
i. Share allotment ii. Share first and final call iv. Share forfeiture.
(Or)
A company forfeited 500 shares of Rs. 10 each at discount 10% for nonpayment to pay first
and final call of Rs. 4 per share. Out of these 200 shares were re-issued at Rs. 7 per share as
fully paid up.
Required: - Journal entries for forfeiture, re-Issue and transfer (1+1.5+1+1=5)
13. A. Best Co. Ltd. took over the following assets and liabilities of Worst Co. Ltd at an agreed
price of Rs. 7,20,000
Plant and Machinery 6,00,000 Bills receivable 1,60,000
Stock 2,40,000 Account payable 1,80,000
Payment to this deal will be made by issuing equity share of Rs. 100 each at 10% discount.
Required: Journal entries for asset purchase (1+1=2)
B. SR Bank Limited issued 500, 10% debentures of Rs.100 each at a 10% discount and
redeemable at the end of 5 years at a 5% premium.
Required: Entry for issue and redemption debentures (1+2=3)
st
14. The following trial balance of a company on 31 December is given to you:
Particulars Amount Particulars Amount
Fixed assets.............................. 275,000 Capital .................................... 200,000
Administration expenses ......... 44,000 Bank loan .............................. 140,000
Investment ............................... 90,000 Commission ........................... 30,000
Sundry debtors ......................... 100,000 Creditors................................. 25,000
Cash and bank ......................... 40,000 Interest received .................... 10,000
Prepaid rent.............................. 40,000 Provision for bad debt ............ 17,000
Closing stock ......................... 41,000 Outstanding expenses ........... 14,000
Gross profit ............................ 194,000
Total 630,000 Total 630,000
Additional information:
Prepaid rent expired of Rs. 35,000.
Depreciation on fixed assets @ 12% p.a.
Required: a) Profit and loss account b) Balance sheet [3+2=5]
15. A trial balance of a concern is given below:
Debit balances Dr. (Rs.) Credit balances Cr. (Rs.)
Rent 10,000 Sales 450,000
Wages 5,000 Capital 125,000
Salary 21,000 Bank loan 100,000
Insurance 4,000 Commission 50,000
Purchases 180,000 Profit and loss account 25,000
Opening stock 5,000 ---
Plant & machinery 5,00,000 ---
Cash 25,000
Total 7,50,000 Total 7,50,000
Additional information:
Depreciate plant and machine by 5%
Salary payable Rs. 4,000.
Advance commission received Rs. 10,000.
Proposed dividend Rs. 5,000.
Required: Work sheet (12 column) [5]
16. Write about essentials of material control. [5]
17. A. Write any one difference between cost and financial accounting. [2]
B. The following store transactions of a material during the month are as under.
Jan 1 : Opening balance 500 units @ 10 each
Jan 4 : Purchased 1000 units @ Rs. 11
Jan 7 : Issued 800 units.
Jan 10 : Surplus from work order 200 units.
Jan 20 : 600 units @ Rs. 13
Required: Store Ledger under FIFO method. [3]
18. A. Following information is given.
Output for 10 units 5 hours
Actual production 10000 units
Wages rate per hour Rs. 20
Required: Total wages under time rate system [2]
B. The following information is provided to you:
Net loss shown by cost accounting Rs. 20,000
Office overhead under charged in cost account Rs. 3,000
Under valuation of opening stock in financial Account Rs. 8,000
Interest on investment is not included in cost account Rs. 1,000
Required: Cost Reconciliation Statement. [3]
19. Mention the uses of software in accounting. [5]
Or
Write the uses of Microsoft excel in computer accounting.
Group C
Long Answer Questions
Attempt All Questions. (3 × 8 = 24)
20. The following trial balance has been extracted as on 31st December, 2021.
Dr. Cr.
Building 9,00,000 Share Capital 10,00,000
Vehicles 5,00,000 Sales 12,00,000
Freight in 5,000 Discount received 8,000
Purchase 4,00,000 Sundry Creditors 1,04,000
Prepaid Insurance 18,000 Commission earned 10,000
Rent 40,000 10% debentures 1,00,000
Wages 90,000
Sundry debtors 1,60,000
Office Salaries 112,000
Advertising 25,000
General expenses 50,000
Bank balance 24,000
Goodwill 90,000
Interest on debentures 8,000
24,22,000 24,22,000
Additional Information:
Stock at the end at cost Rs. 130,000.
Depreciate 20% on vehicles.
Prepaid insurance expired Rs. 5,000
Tax payable 20,000.
Required:
a. Income Statement as per NFRS
b. Financial Position as per NFRS [4+4=8]
Or
a. Prepare multi-step income statement.
b. Classified balance sheet as on December, 2020
21. The following two balance sheet of a company is given to you
Particular Last year Current year Particular Last year Current year
Share capital 750,000 900,000 Equipment 220,000 200,000
Retained earning 350,000 350,000 Investment 900,000 12,00,000
% Debentures 200,000 120,000 Debtors 140,000 60,000
Creditors 210,000 250,000 Inventory 100,000 120,000
Salary due 20,000 10,000 Prepaid salaries 50,000 60,000
Provision for tax 30,000 50,000 Cash at bank 150,000 40,000
1560,000 16,80,000 1560,000 16,80,000
Additional Information
Sales revenue during the year Rs. 20,00,000
Cost of goods sold Rs. 14,00,000
Operating expenses Rs. 4,50,000
(Including depreciation 30,000 and Interest on debenture 20,000)
Tax paid Rs. 30,000
Purchase of equipment Rs. 60,000
Gain on sale of plant (Book value. Rs. 25,000) Rs. 15,000
Dividend distributed Rs. 90,000
Required: Cash Flow Statement using direct method. [8]
22. The following information are the data of a manufacturing concern.
Stock 20X1 20X2
Raw material 25,000 15,000
Work in progress 10,000 20,000
Finished goods 30,000 50,000
Purchase of raw material 2,25,000
Carriage on purchase 15,000
Commission on sales 22,000
Productive wages 1,00,000
Factory rent 45,000
Other indirect cost 20,000
Office insurance 15% of factory cost
Audit fees 10,000
Sales of scrap 2% of material consumed
Advertising expenses 28,000
Profit on 10% on selling price
Required: Statement of Cost Sheet showing; Prime cost Factory cost
Cost of production Cost of goods sold Net profit (2+2+2+1+1=8)
The end