Ac

Std.
XII : Commerce
BOARD QUESTION PAPER : MARCH 2017

Time: 3 Hours Max. Marks: 80

Q.1. Attempt any THREE of the following sub‐questions: [15]
(A) Answer the following questions in ‘one’ sentence each: (5)
(1) Which statement is prepared under single entry system to ascertain profit?
(2) What is ‘capital deficiency’?
(3) What do you mean by ‘non‐recurring expenses’?
(4) How is gain ratio calculated?
(5) What is ‘retirement of a bill of exchange’?
(B) Write a word/term/phrase as a substitute for each of the following statements: (5)
(1) The amount which is not recoverable from the debtors.
(2) A person on whom a bill is drawn.
(3) The ratio measuring the relationship between gross profit and net sales.
(4) Winding up of partnership business.
(5) Officer appointed by the Central Government for noting of dishonour of a bill.
(C) Select the most appropriate alternative from those given below and rewrite the statements: (5)
(1) _______ is an intangible asset.
(A) Goodwill (B) Stock
(C) Building (D) Cash
(2) _______ is an acknowledgement of debt under common seal of a company.
(A) Share (B) Debenture
(C) Cheque (D) Bond
(3) When closing capital is greater than opening capital, it denotes _______.
(A) profit (B) loss
(C) no profit, no loss (D) asset
(4) Cash proceeds from the issue of debentures is a _______ activity.
(A) operating (B) trading
(C) financial (D) non‐financial
(5) _______ is a person to whom the amount on a bill is payable.
(A) Drawer (B) Drawee
(C) Payee (D) Endorser
(D) State whether the following statements are True or False: (5)
(1) Not for profit concerns do not have profit motive.
(2) Bank account is debited when a bill is sent to the bank for collection.
(3) A new partner is admitted in the firm for getting additional capital and skill.
(4) Closing stock is always valued at market price.
(5) Shares are always issued at par.
(E) Prepare a specimen of Bill of Exchange from the following information: (5)
(1) Drawer  Shri Ratnakar Patil,
205, New Bazer,
Amaravati.
(2) Drawee  Shri Jairam Purohit,
Hiwarkheda Road,
Kannad.
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Board Question Paper : March 2017
(3) Payee  Shri Rohit Joshi,
Kedareshwar Market,
Ladjalgaon.
(3) Period of bill  3 months
(4) Amount of bill  ` 25,000
(5) Date of bill  25th August, 2013
(6) Date of acceptance  28th August, 2013
Q.2. Mr. John keeps his books according to single entry system. Following are the details of his
business: [8]
01.04.2012 31.03.2013
Particulars Amount Amount
(`) (`)
Machinery 70,000 70,000
Furniture 10,000 20,000
Stock 36,000 42,000
Sundry debtors 72,200 88,400
Cash in hand 3,000 4,100
Cash at bank 42,000 52,300
Sundry creditors 54,500 60,400
Additional information:
(1) Mr. John had introduced ` 20,000 as additional capital on 1st October, 2012.
(2) Mr. John had withdrawn ` 15,000 for his personal use during the year.
(3) Additions to furniture were made on 1st October, 2012.
(4) Depreciate machinery at 10% p. a.and furniture at 20% p. a.
Prepare:
(1) Opening and Closing Statement of Affairs.
st
(2) Statement of Profit or Loss for the year ending on 31 March, 2013
OR
(A) What are the objectives of ‘ratios’? (4)
(B) State the various sources of cash inflows from operating activities. (4)
Q.3. Ram and Madan were partners in a firm sharing profits and losses equally. Following was their balance
sheet as on 31.03.2012: [10]
Balance Sheet as on 31.03.2012
Amount Amount
Liabilities Assets
` `
Capital: Plant and machinery 90,000
Ram 1,00,000 Furniture 15,000
Madan 1,00,000 Sundry debtors 92,600
General reserve 40,000 Less: R.D.D. 1,600 91,000
Sundry creditors 55,300 Stock 68,000
Cash in hand 4,200
Cash at bank 27,100
2,95,300 2,95,300
On 1st April, 2012, Soham was admitted as a partner in the firm on the following terms:
(1) Soham is to bring in ` 1,00,000 as his capital. He is to be given 1/3rd share in future profits.
(2) Goodwill of the firm to be raised at ` 30,000. It was decided that ‘goodwill’ should not
appear in the books of the new firm.
(3) Furniture to be depreciated by 10%. Stock was valued at ` 70,500.
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Std. XII : Commerce
Prepare:
(1) Profit and Loss Adjustment Account.
(2) Partners’ Capital Accounts.
(3) Balance Sheet of the new firm.
OR
Following is the balance sheet at Sharmila, Urmila and Pramila, who shared profits and losses in
the ratio of 5 : 3 : 2 respectively:
Balance Sheet as on 31st March, 2013
Amount Amount
Liabilities Assets
(`) (`)
Capital accounts: Land and buildings 2,50,000
Sharmila 2,00,000 Plant and Machinery 70,000
Urmila 1,50,000 Furniture 20,000
Pramila 1,00,000 Sundry debtors 90,000
Reserve fund 50,000 Stock 56,500
Sundry creditors 42,800 Bills receivable 7,400
Bills payable 6,000 Cash in hand 3,700
Cash at bank 51,200

5,48,800 5,48,800
Pramila retired on 31st March, 2013 on the following terms:
(1) Goodwill of the firm was valued at ` 60,000. It was decided that ‘goodwill’ should be raised
to the extent of Pramila’s share only, and to be written off immediately.
(2) Land and building to be appreciated by ` 20,000. Stock is revalued at ` 58,500. Furniture is
to be depreciated by 10%.
(3) Amount payable to Pramila is to be transferred to her loan account.
Give Journal Entries in the books of the firm.
Q.4. Raja made sales of goods worth ` 40,000 to Pradhan and received a part payment of ` 10,000. [10]
On the same date, Raju drew on Pradhan a three months’ bill for ` 30,000, received the
acceptance on the bill and sent the bill to the bank for collection immediately.
However, on the due date, the bill was dishonoured due to Pradhan’s insolvency and only 50% of
the amount due could be recovered from his private estate as the first and final dividend.
Give Journal Entries and Pradhan’s Account in the books of Raja.
Q.5. Akbar and Birbal were partners in a firm sharing profits and losses in the ratio of 3 : 2 respectively.
Their balance sheet as on 31st March, 2013 was as follows : [10]
Amount Amount
Liabilities Assets
(`) (`)
Capital A/c’s: Plant and Machinery 40,000
Akbar 60,000 Furniture 12,000
Birbal 40,000 Sundry debtors 61,000
General reserve 20,000 Less: R.D.D. 1,000 60,000
Sundry creditors 39,700 Stock 28,300
Bank 19,400
1,59,700 1,59,700
On the above date, the firm was dissolved and the assets realised were as follows :
Plant and machinery ` 30,000.
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Sundry debtors ` 58,000.
Furniture was taken over by Akbar for ` 10,000 and stock by Birbal for ` 27,000.
Sundry creditors were paid ` 38,000 in full settlement of their claim.
Realisation expenses amounted to ` 2,000.
Prepare : (1) Realisation Account
(2) Partners’ Capital Accounts
(3) Bank Account
OR
Modern Chemicals Co. Ltd. made an issue of 60,000 shares of ` 20 each payable as follows :
On application ` 5 per share
On allotment ` 5 per share
On first call ` 4 per share
On second call ` 3 per share
The company received applications for 65,000 shares of which applications for 5,000 shares were
rejected and money refunded.
All the shareholders paid up to second call except one shareholder, Mr. Bhupendra, the allotee of
100 shares, who did not pay the amount of the second call.
Give Journal Entries in the books of Modern Chemicals Co., Ltd.
Q. 6. With the help of the Balance Sheet and Receipts and Payments Accounts of Adarsh Cultural Club,
Mumbai, prepare Income and Expenditure Account for the year ended 31st March, 2013 and the
Balance Sheet as on that date : [12]
Amount Amount
Liabilities Assets
(`) (`)
Capital fund 2,57,000 Buildings 2,50,000
Building fund 50,000 Furniture 20,000
Outstanding salary 1,300 Outstanding Subscription 1,000
Cash in hand 2,400
Cash at bank 34,900
3,08,300 3,08,300
Receipts and Payments Account for the year ending 31.03.2013
Dr. Cr.
Amount Amount
Receipts Payments
(`) (`)
To Balance b/d By Salaries 35,300
Cash in hand 2,400 By Furniture (Purchased on
Cash at bank 34,900 01.10.2012) 10,000
To Subscriptions By General expenses 8,400
2011–12 1,000 By Printing and stationery 4,200
2012–13 48,000 By Drama expenses 16,000
2013–14 2,000 51,000 By Balance c/d
To Donations for Cash in hand 4,600
building fund 20,000 Cash at bank 57,800
To Drama receipts 28,000
1,36,300 1,36,300
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Std. XII : Commerce
You are also required to consider the additional information given below:
(1) The club had 100 members, each paying ` 500 as annual subscription.
(2) Furniture to be depreciated at 20% p.a.
(3) Salaries include ` 1,300 paid for outstanding salaries for the year 2011‐12.
Salaries outstanding for the year 2012‐13 were ` 700.
Q.7. Jaya and Maya are partners in a firm sharing profits and losses in the ratio of 2 : 3 respectively.
With the help of the trial balance and adjustments given below, you are required to prepare their
Trading, Profit and Loss Account for the year ended 31st March, 2013 and the Balance Sheet as on
that date : [15]
st
Trial Balance as on 31 March, 2013
Amount Amount
Debit Balances Credit Balances
(`) (`)
Purchases 1,09,000 Sundry creditors 45,600
Insurance 3,700 Sales 1,94,000
Rent, rates and taxes 14,600 R.D.D. 2,000
Office expenses 7,300 Commission 5,500
Land and buildings 3,00,000 Capital A/c’s:
Plant and machinery 60,000 Jaya 2,00,000
Furniture 15,000 Maya 2,50,000
Carriage inwards 3,700 Current A/c’s:
Sundry debtors 88,000 Jaya 3,400
Stock (as on 01.04.2012) 32,800 Maya 9,100
Wages and salaries 28,600
Cash in hand 4,700
Cash at bank 40,200
Drawings A/c’s:
Jaya 500
Maya 1,500
7,09,600 7,09,600
Adjustments :
(1) Closing stock was valued at ` 22,600.
(2) Purchases include purchase of furniture of ` 10,000 made on 1st October, 2012.
(3) Depreciate land and buildings at 10% p.a.; plant and machinery at 10% p.a. and furniture at
20% p.a.
(4) Create R.D.D. at 5% on sundry debtors.
276

Q. 1. Attempt any THREE of the following sub-questions: [15]

(1) What is bad debts?
(2) What is surplus?
(3) What are Noting Charges?
(4) What is Gain Ratio?
(5) What do you mean by Analysis of Financial Statement?
(B) Write a word/term/phrase which can substitute each of the following statements: (5)
(1) Expenses which are paid before due.
(2) Excess of expenditure over income of ‘not for profit’ concerns.
(3) Payment of the bill before due date.
(4) An account opened to find out the profit or loss on sale of assets and settlement of
liabilities.
(5) A statement similar to balance sheet.
(1) If shares are issued at its face value, it is called as issue at _______.
(A) premium (B) discount
(C) par (D) none of these
(2) A person who accepts the bill is called _______.
(A) drawer (B) acceptor
(C) payee (D) creditor
(3) The capital in the beginning of the accounting year is ascertained by preparing _______.
(A) closing statement of affairs (B) cash account
(C) statement of profit or loss (D) opening statement of affairs
(4) If any asset is taken over by partner from firm his capital A/c will be _______.
(A) credited (B) debited
(C) added (D) none of these
(5) The proportion in which old partners make a sacrifice is called _______ ratio.
(A) capital (B) gaining
(C) sacrifice (D) new
(1) The interest on capital is an income of the firm.
(2) The inland bill which is drawn in and payable in the same country.
(3) The debenture holder is owner of the company.
(4) Purchase of fixed asset is operating cash flow.
(5) Noting charges are payable to the Notary public, in case of honour of a bill.
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Std. XII : Commerce
(E) Prepare a specimen of a Bill of Exchange from the following information: (5)
(1) Drawee − M.P. Shinde,
Siddharth Nagar,
Panchgani.
(2) Drawer − M.M. Shaikh,
Satara Road,
Sangli
(3) Period of bill − 90 days
(4) Amount of bill − ` 12,800
(5) Date of bill − 10th March, 2013
(6) Date of acceptance − 14th March, 2013
Q. 2. Mrs. Meena of Bilaspur has not kept proper books of accounts, following information is provided
to you: [8]
31.03.2012 31.03.2013
(`) (`)
Machinery 50,000 50,000
Furniture 50,000 30,000
Debtors 18,000 25,000
Creditors 18,000 20,000
Stock 30,000 42,000
Outstanding Expenses 1,500 −
Pre-paid Expenses − 500
Cast at Bank 28,000 40,000
Further information:
(1) Mrs. Meena introduced additional capital as on 1st October, 2012 by selling her personal car
is ` 10,000.
(2) She paid her daughter’s college fees from business bank account ` 3,000.
(3) Depreciate machinery by 5% p.a.
(4) Provide 2% on debtors for Bad and Doubtful debts.
(5) Interest on capital is to be provided @ 5% p.a. and on drawings @ 5% p.a.
Prepare: Opening and closing statement of affairs and statement of profit or loss for the year
ended 31st March, 2013.
OR
(A) What are the components of 'Current Ratio’? (4)
(B) What are the different cash inflows and cash outflows of investing activities? (4)
Q. 3. Rani and Geeta are partners sharing profits and losses 3:2 respectively. Their position on 31st March,
2013 was as follows: [10]
Balance Sheet as on 31st Mar, 2013
Amount Amount Amount
Liabilities Assets
` ` `
Capital A/c’s Building 1,00,000
Rani 1,00,000 Furniture 10,000
Geeta 75,000 Stock 31,000
Creditors 10,000 Debtors 50,000
Bills payable 5,000 Less : R.D.D. − 1,000 49,000
General Reserve 15,000 Bank Balance 15,000
2,05,000 2,05,000
408
st
On 1 April, 2013 they admitted Suvarna on the following terms:
(1) Suvarna should bring in cash ` 1,00,000 as capital for 1/5th share in future profit and
` 25,000 as goodwill.
(2) Building should be revalued at ` 1,25,000.
(3) Depreciate furniture @ 12 ½% p.a. and stock @ 10% p.a.
(4) R.D.D. should be maintained as it is.
(5) The Capital Accounts of partners should be adjusted in their new profit sharing ratio through
bank account.
Prepare:
Profit and loss adjustment account, capital accounts and balance sheet of the new firm.
OR
The balance sheet of ‘Anand Traders, Wardha is as follows. Partners share profits and losses as
5 2 3
: :
10 10 10
Amount Amount
Liabilities Assets
(`) (`)
Capital A/c’s: Pland and Machinery 32,000
Sunil 36,000 Factory Building 40,000
Pankaj 32,000 Stock 20,400
Paresh 17,600 Debtors 16,800
Creditors 21,200 Less: R.D.D − 800 16,000
General Reserve 14,000 Cash 12,400
1,20,800 1,20,800
Pankaj retired from the business on 1st Apr, 2013 on the following terms :
(1) The assets were revalued as under: (i) Stock ` 28,000. (ii) Factory building is appreciated by
10%. (iii) Reserve for doubtful debts is to be increased up to ` 1,000. (iv) Plant and
machinery is to be depreciated by 10%.
(2) The goodwill of the retiring partner is valued at ` 8,000 and the remaining partners decided
that goodwill be written back in their new profit sharing ratio which will be 5 : 3.
(3) Amount due to Pankaj is to be transferred to his loan account.
Prepare : (a) Profit and loss adjustment account, (b) Capital account of partners, (c) Balance sheet
of new firm.
Q.4. Raja of Nagpur draws a bill on Pradhan of Bhandara for ` 6,000 at 3 months. Pradhan accepted
and returned it to Raja. Raja then sent the bill to bank for collection. [10]
On due date, Pradhan finds himself unable to make payment of the bill and requests Raja to
renew it. Raja accepted a proposal on the condition that, Pradhan should pay ` 1,000 on account
along with interest ` 250 in cash and should accept new bill for the balance at 2 months. These
arrangements were carried through.
Afterwards, one month before due date of new bill Pradhan retired his acceptance by paying
` 4,850.
Give Journal entries in the books of Raja of Nagpur.
409
Std. XII : Commerce
Q. 5. A, B and C were partners sharing profits and losses in the proportion of 2 : 2 : 1. Following is their
balance sheet as on 31st March, 2013 : [10]
Amount Amount
Liabilities Assets
(`) (`)
Capital A/c’s: Machinery 25,000
A 30,000 Stock 10,000
B 10,000 Debtors 27,500
C 10,000 Less: R.D.D. −1,500 26,000
General reserve 3,000 Investment 12,000
Creditors 20,000 Profit and Loss A/c. 9,000
A’s loan A/c 4,000 Bank 2,000
Bills payable 7,000
84,000 84,000
On the above date, the partners decided to dissolve the firm.
(1) Assets were realised as —
Machinery ` 22,500, Stock ` 9,000, Investment ` 10,500, Debtors ` 22,500.
(2) Dissolution expenses were ` 1,500.
(3) Goodwill of the firm realised ` 12,000.
Pass the necessary journal entries in the books of the firm.
OR
Kisan Co. Ltd. Miraj, issued ` 50,000 shares at par ` 10 each, payable ` 3 on application, ` 4 on
allotment and the balance on the final call. All the shares were fully subscribed and paid except a
shareholder Mr.D. Kapse having ` 1,000 shares could not pay the final call. Mr.D. Kapse paid the
call-in-arrear amount together with interest after four months of due date of final call. Company
charged interest on the arrears received as per table ‘A’.
Pass journal entries to record these transactions assuming that call-in-arrears and interest money
received from Mr.D. Kapse in the books of Kisan Co. Ltd. Miraj.
Q. 6. Marathi Vishwa Kosha Centre, Wai, has given you the following information from which, you are
required to prepare : (i) Income and Expenditure Account for the year ending on 31.03.2013,
(ii) Balance sheet as on 31.03.2013. [12]
Dr. Cr.
Amount Amount
Receipts Payments
(`) (`)
To Balance b/d By Stationery 5,000
Cash in Hand 13,000 By Furniture (Purchased on
Cash at Bank 95,000 01.01 2013) 50,000
To Locker Rent 5,000 By Investments 1,00,000
To Entrance fees 19,000 By Expenses of Drama 33,500
To Sale of old newspapers 1,500 By Postage and telegram 2,500
To Receipts from Drama 78,500 By Magazines and newspapers 4,000
410
To Legacies 1,10,000 By Salaries 22,000
To Miscellaneous Receipts 8,000 By Balance c/d
Cash in hand 3,000
Cash at bank 1,10,000
3,30,000 3,30,000
Additional information :
(1) Capital fund on 01.04.2012, was ` 1,08,000.
(2) Legacies are to be capitalised.
(3) Outstanding salary ` 3,000.
(4) 50% of entrance fees is to be capitalised.
(5) Depreciation on Furniture @ 10% p.a.
Q. 7. From the following Trial Balance and adjustments of M/s Apeksha and Pratiksha; you are required to
prepare Trading and Profit and Loss account, for the year ended 31st March, 2013 and Balance Sheet
as on that date : [15]
Trial Balance as on 31.03.2013
Debit Credit
Particulars
Amount (`) Amount (`)
Capital Accounts
Apeksha 60,000
Pratiksha 35,000
Purchases and Sales 46,700 85,000
Sundry Debtors and Creditors 28,000 25,000
Bills receivable and Bills Payable 9,600 7,800
Opening stock 18,000
Wages 9,900
Investment 13,500
Postage and Telegrams 3,600
Insurance 1,200
Plant and Machinery 40,700
Furniture 18,000
Cash in hand 2,500
Carriage 3,200
Bad Debts 400
Pre-paid rent 7,000
Salaries 10,500
2,12,800 2,12,800
Adjustments :
(1) The closing stock is valued at ` 31,000.
(2) Outstanding wages ` 1,400.
(3) Depreciate furniture at 10% p.a.
(4) Insurance ` 500 is paid in advance.
(5) Provide for further bad debts of ` 1,500.
(6) Goods worth 2,000 withdrawn by Apeksha for her domestic use but not recorded in the
books of account.
411
Board Question Paper : July 2016
BOARD QUESTION PAPER : JULY 2016


(1) What is Trial Balance?
(2) What shows credit balance of revaluation account?
(3) What are ‘convertible debentures’?
(4) Who is ‘Payee’?
(5) What is ‘single entry system’?
(1) The accounts which are prepared at the end of each financial year.
(2) The fees paid by a person who wants to become a life member of the concern, for his whole
life.
(3) The acknowledgement of debt under common seal of company.
(4) Payment of the bill before its due date.
(5) Critical evaluation of financial statement to measure profitability.
(1) All indirect expenses are debited to _______ account.
(A) Trading (B) Capital
(C) Profit and Loss (D) Current
(2) Share of profit of a deceased partner till the date of death is _______.
(A) debited to profit and loss adjustment account
(B) credited to profit and loss adjustment account
(C) debited to profit and loss suspense account
(D) credited to profit and loss suspense account
(3) If any asset is taken over by a partner from the firm, his capital account will be _______.
(A) credited (B) debited
(C) added (D) none of these
(4) There are _______ parties to the Bill of Exchange.
(A) two (B) three
(C) four (D) five
(5) Further capital introduced during the year is _______ from closing capital in order to find
out the correct profit.
(A) added (B) deducted
(C) divided (D) ignored
(1) All receipts are the items of revenue income.
(2) At the time of dissolution, loan from partner will be transferred to realisation account.
407
Std. XII : Commerce
(3) A Bill of Exchange is a negotiable instrument.
(4) Acceptance without making any change in the terms of bill is called general acceptance.
(5) Ratio analysis is useful for inter-firm comparison.
Shri Arjun Patil, 104, Shivaji Nagar, Ambajogai draws a two months bill on Shri Tukaram
Magdum, Daulat Road, Halkarni, Kolhapur payable to Shri Ranveer Patil, Mondha, Parali
Vaijanath on 23rd August 2013 for ` 7,550.
Shri Tukaram Magdum accepted it on 26th August, 2013 for ` 7,500 only.
Q. 2. Mrs. Shailaja keeps her books under single entry system and gives the following information. [8]
01.04.2012 31.03.2013
(`) (`)
Investments - 12,000
Bank overdraft - 10,000
Bills payable 5,000 8,000
Creditors 26,500 31,500
Furniture 9,000 19,000
Debtors 35,000 50,000
Stock 15,000 19,000
Bank balance 18,000 28,000
(1) Mrs. Shailaja withdrew ` 4,000 for her personal use. She received ` 15,000 from her father
as gift, which she brought into the business.
(2) Additional furniture was purchased on 01.10.2012. Depreciate furniture by 10% p.a.
(3) Write off ` 1,000 as bad debt and provide 5% R.D.D. on debtors.
Prepare:
(1) Opening and closing statements of affairs and
(2) Statement of profit or loss for the year ended 31.03.2013.
OR
(A) Explain the limitations of analysis of financial statements. (4)
(B) Explain the operating activities on cash flow. (4)
Q. 3. Following is the Balance Sheet of Harish and Girish. [10]
Amount Amount Amount
Liabilities Assets
` ` `
Creditors 38,000 Cash in hand 37,000
Bills payable 46,000 Stock 21,000
Profit and Loss Debtors 46,000
account 16,000 Less : R.D.D. 6,000 40,000
Capital A/c’s Equipments 12,000
Harish 1,00,000 Furniture 25,000
Girish 1,40,000 Plant 85,000
Building 1,20,000
3,40,000 3,40,000
They admitted Shirish on 1st April, 2013 on following conditions:
1
(1) For his share in future profit, Shirish brings `2,00,000 as his capital.
3
408
(2) It is decided to raise goodwill by ` 90,000 and write it off fully after Shirish’s admission.
(3) Equipments and plant to be depreciated by 20% and 10% respectively and building to be
appreciated by 15%.
(4) Bills payable were retired for ` 35,000.
(5) All debtors are considered good.
(6) Furniture of the book value ` 12,000 was taken over by Harish at 40% of the book value.
Prepare:
(1) Revaluation account.
(2) Partner’s capital account.
(3) Balance Sheet of new firm.
OR
Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance
Sheet as on 31st March 2013 is as below:
Amount Amount
Liabilities Assets
(`) (`)
Capital Accounts Building 10,000
Anita 11,000 Machinery 10,700
Sunita 15,000 Furniture 10,000
Kavita 8,000 Debtors 5,000
Creditors 10,900 Stock 6,600
Reserve fund 4,000 Cash 6,600
48,900 48,900
st
On 1 April, 2013, Mrs. Kavita retired from the firm on the following terms:
(1) Goodwill of the firm is to be valued at ` 4,000, however, only Kavita’s share in it is to be
raised in the books and written off immediately.
(2) Assets to be revalued as under:
Stock ` 6,300; Machinery ` 10,000; Furniture ` 10,200.
(3) R.D.D. to be maintained at 10% on debtors.
(4) ` 100 to be written off from creditors.
(5) The amount payable to Mrs. Kavita is to be transferred to her loan account.
Prepare :
(1) Profit and loss adjustment account.
(2) Partner’s capital account, and
(3) Balance Sheet of new firm as on 01.04.2013.
Q.4. Journalise the following transactions in the books of Jaydeep. [10]

(A) Arvind renews his acceptance of Jaydeep of ` 7,000 with interest ` 500 for two months.
(B) Bank informed Jaydeep that Mahadev’s acceptance of ` 4,000 which was discounted and
dishonoured. Bank charged noting charges ` 80.
(C) Hanumant informed Jaydeep that Kazi’s acceptance for ` 7,000 endorsed to Hanumant has
been dishonoured, noting charges `85.
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Std. XII : Commerce
(D) Datta honoured his acceptance of `4,900, which was sent to bank for collection. Bank
debited ` 100 for bank charges.
(E) Radhika retired her acceptance to Jaydeep of ` 9,000 by paying ` 8,700.
Q. 5. Rahul, Rohit and Ramesh were partners in a firm sharing profits and losses in the ratio of 2:2:1
respectively. The Balance Sheet as on 31.03.2013 was as follows: [10]
Amount Amount
Liabilities Assets
(`) (`)
Sundry Creditors 20,000 Cash at Bank 8,000
Bills payable 5,000 Debtors 16,000
General Reserve 6,000 Less: R.D.D. –1,000 15,000
Rahul’s loan account 16,000 Stock 20,000
Capital Accounts Plant and Machinery 30,000
Rahul 25,000 Furniture 6,000
Rohit 10,000 Ramesh’s capital account 3,000
82,000 82,000
The firm was dissolved on the above date:
(1) Assets realised as follows:
Debtors ` 9,000, Plant and Machinery ` 26,000, Stock ` 14,000, and Furniture ` 3,000.
(2) The creditors were paid ` 18,000, in full settlement and the bills payable were paid in full.
(3) The realisation expenses amounted to ` 3,000.
(4) Ramesh became insolvent and was able to bring in only ` 1,800 from his private estate.
Prepare:
(1) Realisation account
(2) Partner’s capital account and
(3) Bank account.
OR
Mahakali Co. Ltd. Chandrapur issued 1,000, 12% debentures of ` 100 each, payable ` 20 on
application and the balance on allotment.
Applications were received for 1,500 debentures, out of which, applications for 900 were alloted
fully, applications for 400 were alloted 100 debentures and remaining were rejected.
All dues received.
Journalise the transactions and also show Balance Sheet.
Q. 6. Following is the receipts and payments account of Chamber of Commerce, Chandgad for the year
ending 31.03.2013 and some additional information. You are required to prepare the Income and
Expenditure Account for the year ending 31.03.2013 and Balance Sheet as on that date. [12]
Amount Amount
Receipts Payments
(`) (`)
To Balance b/d By Printing and Stationery 6,950
(Cash at Bank) 11,960 By Repairs 2,100
410
To Subscriptions By Rent 8,500
(including ` 2,500 By Books 20,000
For 2011-2012) 36,500 By Travelling Expenses 2,000
To Sale of Furniture By Investments 40,000
(Book value By Insurance 1,700
`18,000) 12,000 By Balance c/d
To Donations 27,000 (Cash at Bank) 11,260
To Admission fees
(Revenue) 5,050
92,510 92,510
Additional information :
(1)
01.04.2012 31.03.2013
(`) (`)
Outstanding Subscriptions 3,000 5,000
Furniture 32,000 ?
Building fund 1,45,000 ?
Capital fund 1,51,960 ?
Investments 2,50,000 ?
(2) Neglect depreciation on the part of furniture sold during the year, but depreciate the
remaining furniture by `1,000.
(3) Donation is received for building fund.
Q. 7. Dhiraj and Suraj are partners sharing profits and losses in the ratio of 2:1. From the following Trial
Balance and adjustments, prepare Trading and Profit and Loss account for the year ended
31st March, 2013 and balance sheet as on that date: [15]
Amount Amount
Particulars Payments
(`) (`)
Opening Stock 32,000 Sales 1,93,500
Purchases 64,000 Sundry Creditors 16,500
Plant and Machinery 30,000 Return Outward 2,500
Furniture 18,500 Capital Account’s
Carriage 1,500 Dhiraj 90,000
Wages 30,000 Suraj 50,000
Bills Receivable 5,000
Sundry Debtors 32,000
Conveyance 4,000
Salaries 10,500
Cash in hand 14,750
Land and Building 83,500
Bad debts 1,750
Patents 25,000
3,52,500 3,52,500
Adjustments :
(1) Closing stock: Cost price ` 25,000 and market price ` 30,000.
(2) An amount of ` 3,500 spent for repairs to building is debited to building account.
(3) Depreciate plant and machinery and building at 5% p.a.
(4) Included in wages in advance given to workers ` 3,000.
(5) Provide ` 1,500 for bad and doubtful debts on debtors.
411


(1) What is ‘liability of partners’?
(2) What is meant by ‘capital fund’?
(3) What is ‘gain ratio’?
(4) What do you mean by ‘issue of shares at premium’?
(5) What are ‘noting charges’?
(1) Excess of income over expenditure of a ‘not for profit’ concern.
(2) Debit balance of revaluation account.
(3) The debentures which are convertible into shares.
(4) A person who draws a bill of exchange.
(5) An asset which can be converted into cash immediately.
(1) Dissolution expenses are credited to _______.
(A) Realisation Account (B) Cash/Bank Account
(C) Partner’s capital Account (D) Partner’s Loan Account
(2) Pre-paid expenses are shown on the _______ side of balance sheet.
(A) assets (B) liability
(C) debit (D) cash
(3) A bill is drawn on 23rd Sept, 2013 at 4 months would be payable on _______.
(A) 24th Jan, 2014 (B) 25th Jan, 2014
(C) 26th Jan, 2014 (D) 25th Jan, 2013
(4) Capital balance is ascertained by preparing _______.

(A) Statement of Affairs (B) Cash Account
(C) Drawing Account (D) Debtor’s Account
(5) From financial statement analysis the creditors are interested to know _______.
(A) liquidity (B) profit
(C) share (D) share capital
(1) Balance sheet is a nominal account.
(2) Drawee can transfer the ownership of a bill.
(3) Debit balance of insolvent partner’s capital account is known as ‘capital deficiency’.
(4) A bill drawn in India and payable in Japan is a foreign bill.
(5) Under single entry system it is not possible to prepare trial balance.
397
Std. XII : Commerce
(1) Drawer − Shri Mahesh Patil,
Plot No. 25, “Ganesh Nivas”
Mahesh Nagar, Koregaon.
(2) Drawee − Shri Vijay Jadhav,
“Saket” M.G. Road,
Pune – 11.
(3) Payee − Shri Sanjay Bornare,
Vaijapur.
(5) Date of bill − 16th Mar, 2013
(7) Date of acceptance − 20th Mar, 2013
Q. 2. Mr. Anil keeps his books by single entry method. Following are the details of his business: [8]
01.04.2012 31.03.2013
(`) (`)
Cash in Hand 10,000 16,000
Cash at Bank 20,000 36,000
Stock 16,000 24,000
Furniture 18,000 18,000
Plant and Machinery 60,000 90,000
Creditors 15,000 18,000
Debtors 24,000 30,000
During the year Mr. Anil has withdrawn ` 10,000 for his private purpose and bought goods of
` 2,000 for household use.
On 1st Oct, 2012, he sold his household furniture for ` 2,000 and deposited the same amount in
the business bank account.
Provide depreciation on machinery @ 10% p.a. (assuming additions were made on 1st Oct, 2012)
and on furniture @ 5%.
Prepare:
(a) Opening Statement of Affairs. (b) Closing Statement of Affairs.
(c) Statement of Profit or Loss for the year ended 31st Mar, 2013.
OR
(A) What are the components of current ratio? (4)
(B) State the objectives of financial statements from the view point of a business concern. (4)
Q. 3. Akash and Suraj are partners in a firm sharing profits and losses in the ratio 3 : 2. Their balance sheet as
on 31st Mar, 2013 was as follows : [10]
Amount Amount
Liabilities Assets
(`) (`)
Capital A/c’s: Furniture 2,100
Akash 50,000 Stock 28,700
Suraj 50,000 Land and Building 35,000
General Reserve 10,000 Plant and Machinery 49,000
Sundry Creditors 60,000 Sundry Debtors 63,000
Bills Payable 17,000 Cash 9,200
1,87,000 1,87,000
398
st
They agreed to admit Sanjay in their partnership on 1 Apr, 2013, on the following terms:
(1) Sanjay should bring ` 1,500, as his share of goodwill in the firm, and ` 2,000 as his capital.
(2) Reserve for doubtful debts is to be provided @ 5% on debtors.
(3) Land and building be depreciated at 10% p.a.
(4) Plant and machinery to be depreciated @ 5% and stock to be depreciated @ 10% p.a.
(5) The new profit sharing ratio will be 2 : 1 : 1.
Prepare:
(a) Revaluation Account.
(b) Partner’s Capital Accounts.
(c) New Balance Sheet of the firm.
OR
Given below is the balance sheet of Vaishali, Madhuri and Shobha, who were sharing profits and
losses in the ratio of 3 : 3 : 2.
Amount Amount
Liabilities Assets
(`) (`)
Creditors 34, 800 Cash 21,600
Bills Payable 8,800 Machinery 34,800
Capital A/c’s: Debtors 50,000
Vaishali 48,000 Stock 25,200
Madhuri 52,000 Furniture 16,000
Shobha 36,000 Buildings 48,000
Reserve Fund 16,000
1,95,600 1,95,600
st
On 1 Apr, 2012 Shobha retired from the firm on the following terms :
(1) Assets be revalued as under: Stock ` 24,000, Machinery ` 32,000, Furniture ` 16,800.
(2) R.D.D. be maintained at 4% on debtors.
(3) An item of ` 400 from creditors is no longer a liability and hence should be properly
adjusted.
(4) The amount due to Shobha be transferred to her loan account.
Pass necessary Journal Entries in the books of the firm.
Q. 4. Ramesh sold goods to Ganesh on credit for ` 20,000. Ganesh accepted a bill of ` 20,000 for
3 months, drawn by Ramesh on the same date. [10]
On the due date Ganesh dishonoured his acceptance. Then Ganesh appoached Ramesh and
requested for renewal of the bill.
Ramesh agreed on the condition that Ganesh should pay ` 10,000 in cash and accept a new bill for
2 months for the balance amount plus interest ` 200.
The new bill was drawn by Ramesh and accepted by Ganesh.
However one month before the due date Ganesh retired his acceptance by paying ` 9,900.
Pass necessary Journal Entries in the books of Ramesh.
399
Std. XII : Commerce
Q.5. Mr. Aaba and Mr. Baba are equal partners whose Balance Sheet as on 31st Mar, 2012 was as under: [10]
st
Balance Sheet as on 31 Mar, 2012
Amount Amount
Liabilities Assets
(`) (`)
Sundry Creditors 16,000 Cash in Hand 500
Capital A/c’s: Stock 4,500
Aaba 2,000 Debtors 4,000
Baba 2,000 Plant and Machinery 5,000
Furniture 2,000
Land and Building 4,000
20,000 20,000
Due to weak financial position of the partners the firm is dissolved. Aaba and Baba are not able to
contribute anything from their private estate, hence they are declared insolvent.
The assets are realised as follows:
Stock ` 3,000, Plant and Machinery ` 3,000, Furniture ` 1,000, Land and Building ` 2,000 and
Debtors ` 1,000 only.
Realisation expenses amounted to ` 500.
You are required to prepare necessary Ledger Accounts to close the books of the firm.
OR
Joshi – Patil Ltd. issued 2,000, 10% debentures of ` 100 each, payable ` 20 on application and the
balance on allotment.
Company received applications for 2,500 debentures, out of which applications for 2,000 were
alloted fully and remaining applications were rejected and the money refunded.
Journalise the above transactions, assuming that all the sums were received.
Q. 6. Following is the Balance Sheet and Receipts and Payments Account of Sevagiri Hospital, Satara. [12]
Prepare Income and Expenditure account for the year ended on 31st Mar, 2013 and Balance Sheet
as on that date:
Balance Sheet as on 1st Apr, 2012
Amount Amount
Liabilities Assets
(`) (`)
Capital Fund 10,00,000 Cash in Hand 6,000
Outstanding Salaries 22,000 Cash at Bank 30,000
Medical Bill Unpaid 6,000 Land and Building 8,00,000
Furniture 70,000
Equipments 1,20,000
Outstanding Subscription 2,000
10,28,000 10,28,000
400
Dr. Cr.
Amount Amount
Receipts Payments
(`) (`)
To Balance b/d By Salaries 1,10,000
Cash in Hand 6,000 (including of previous year)
Cash at Bank 30,000 By Medicines 48,000
To Subscription 1,30,000 By Equipment Purchased 20,000
(includes 2,000 received for previous year) By Taxes 3,000
To Sale of old Furniture (book value ` 30,000) 20,000 By General Expenses 8,600
To Donations (revenue) 44,000 By Balance c/d
To Life Member-ship Fees 25,000 Cash in Hand 15,400
Cash at Bank 50,000
2,55,000 2,55,000
Consider the following adjustments:
(1) Outstanding subscription ` 15,000.
(2) Capitalise the amount of life membership fees.
(3) Pre-paid taxes ` 500.
(4) Outstanding salary ` 12,000.
(5) Write off depreciation ` 20,000 from land and building and ` 30,000 from equipments.
(6) Outstanding medicine bill as on 01.04.2012 is still due.
Q.7. From the following Trial Balance of M/s Sanjay and Keshav, you are required to prepare Trading and
Profit and Loss account, for the year ended 31st Mar, 2013 and Balance Sheet as on that date after
taking into account the following additional information: [15]
Trial Balance as on 31st Mar, 2013
Amount Amount
Debit Balances Credit Balances
(`) (`)
Opening Stock 1,80,000 Sales 5,25,000
Bills Receivable 80,000 Rent 22,000
Purchases 2,40,000 Bills Payable 78,000
Bad Debts 20,000 Sundry Creditors 1,00,000
Salary and Wages 24,000 Capital Account’s
Discount 9,000 Sanjay 5,00,000
Carriage Inward 12,000 Keshav 3,00,000
Travelling Expenses 13,000
Cash in Hand 38,000
Furniture 2,80,000
Insurance 12,000
Land and Building 4,00,000
Postage and Telegram 7,000
Sundry Debtors 2,10,000
Total: 15,25,000 15,25,000
(1) Insurance paid in advance ` 3,000.
(2) Depreciation provided on furniture at 10%.
(3) Salary and wages outstanding ` 6,000.
(4) Rent received in advance ` 5,000.
(5) Closing stock as on 31.03.2013 ` 2,00,000.
401
Std. XII : Commerce
BOARD QUESTION PAPER : OCTOBER 2015


(A) Answer the following in ‘one’ sentence each: (5)
(1) What is ‘bad debt’?
(2) In what proportion is general reserve distributed among old partners?
(3) Which account is debited on payment of dissolution expenses?
(4) Who is ‘drawer’?
(5) What is ‘Statement of Affairs’?
(1) Excess of income over expenditure of a ‘not for profit’concern.
(2) Winding up of partnership business.
(3) Encashment of the bill before its due date.
(4) A system of accounting which is unscientific.
(5) A bill drawn in India and made payable in Japan.
(C) Select the most appropriate alternative from those given below and rewrite the
statements: (5)
(1) The gross profit is transferred to _______ account.
(A) Trading (B) Profit and Loss
(C) Capital (D) Current
(2) A, B and C are partners sharing profit in the ratio of 5 : 3 : 2. If B retires, then the new ratio
will be _______.
(A) 5 : 2 (B) 5 : 3
(C) 3 : 2 (D) 1 : 1
(3) If shares are issued at their face value, it is called as issued at _______.
(A) premium (B) discount
(C) par (D) none of these
(4) The bill drawn on 12th june, 2013 at two months, would be payable on _______ .
(A) 12th August, 2013 (B) 14th August, 2013
th
(C) 15 August, 2013 (D) 16th August, 2013
(5) From financial statement analysis, the creditors are interested to know _______.
(A) liquidity (B) profit
(C) sale (D) share capital
(D) State whether the following statements are TRUE or FALSE: (5)
(1) Closing stock is always valued at market price.
(2) Receipts and Payments Account is a real account.
(3) Shares are issued for cash only.
(4) A bill of exchange can be endorsed only once.
(5) Financial statements include only balance sheet.
(E) Prepare a format of a Bill of Exchange from the following information: (5)
(1) Drawer − Krishna Hake
104, Mondha Road,
Ambajogai.
(2) Drawee − Rahul Kukare,
Sister Colony, Chandrapur.
402
Board Question Paper : October 2015
(3) Payee − Rajvardhan patil
Nashik.
(6) Date of bill − 23rd August, 2013
(7) Date of acceptance − 25th August, 2013
Q. 2. Shri Rajesh keeps his books by Single Entry Method. Following are the details of his business: [8]
1.04.2012 31.03.2013
Particulars
(`) (`)
Cash in hand 10,000 16,000
Cash at bank 20,000 36,000
Stock 16,000 24,000
Furniture 18,000 18,000
Plant and Machinery 60,000 90,000
Creditors 15,000 18,000
Debtors 24,000 30,000
During the year Shri Rajesh has withdrawn ` 10,000 for his private purpose and taken goods of
` 2,000 for household use. On 1st October 2012, he sold his household furniture for ` 2,000 and
deposited the same amount in the business bank account. Provide depreciation on Machinery at
10 % p.a. (assuming additions were made on 1st October, 2012) and furniture at 5% p.a.
Prepare: Opening and closing statement of affairs and Statement of profit or loss for the year
ended 31st March, 2013.
OR
(A) State any four limitations of analysis of financial statements. (4)
(B) Explain Return On Investment (ROI). (4)
2 1
Q. 3. Ram and Krishna were partners sharing profits and losses in the proportion of and respectively.
3 3
Their Balance Sheet is as follows: [10]
Amount Amount Amount Amount
Liabilities Particulars
` ` ` `
Capital A/c’s Building 1,00,000
Ram 96,000 Furniture 30,000
Krishna 64,000 1,60,000 Sundry debtors 63,000
General reserve 18,000 Less : R.D.D. 3,000 60,000
Profit and loss A/c 6,000 Stock 84,000
Sundry creditors 80,000 Cash 16,000
Ram’s loan 26,000
2,90,000 2,90,000
On 1st April, 2013, Hari is admitted in the partnership on the following terms:
(1) Hari should bring in cash of ` 48,000 as capital for 1/5th share in future profit.
(2) Goodwill was raised in the books of the firm for ` 18,000.
(3) Building is revalued at ` 1,12,000 and the value of stock to be reduced by ` 6,000.
(4) Reserve for doubtful debts be maintained at ` 18,00.
(5) Ram’s Loan is to be repaid.
Prepare: Revaluation account, Capital accounts of partners and Balance sheet of the new firm.
OR
403
Std. XII : Commerce
Following is the Balance Sheet of the firm of Sonu, Monu and Piyu who share profits and losses in
the ratio of their capital:
Amount Amount
Liabilities Assets
(`) (`)
Capital A/cs: Plant and Machinery 20,000
Sonu 50,000 Land and Building 55,000
Monu 20,000 Stock 12,000
Piyu 30,000 Debtors 12,000
Creditors 15,000 Less: R.D.D. −1,000 11,000
Cash 17,000
1,15,000 1,15,000
Piyu retires from the business on 31st March, 2013 and the following adjustments were agreed:
(1) The stock is to be valued at 92% of its book value.
(2) R.D.D. is to be maintained at 10% on debtors.
(3) The value of Land and Building is to be appreciated by 20%.
(4) The goodwill of the firm be fixed at ` 12,000.
Piyu’s share in the same be adjusted in the account of continuing partners in gain ratio.
(5) The entire capital of the new firm be fixed at ` 1,60,000 between Sonu and Monu in their
new profit sharing ratio which is fixed at 3 : 1 by making adjustment for difference in cash
and amount payable to Piyu paid in cash.
Prepare: Profit and Loss Adjustment Account, Partners’ Capital Accounts and Balance Sheet after
retirement of Piyu.
Q. 4. Sukhdev sold goods to Namdev worth ` 30,000 on 1st March, 2013. [10]
Namdev accepted a bill for three months, drawn by Sukhdev on 1st March, 2013.
Namdev requested on 21st May, 2013 to Sukhdev to receive ` 10,000 and to draw a new bill for
the balance for two months. Sukhdev agreed on condition that interest at 12% p.a. for two
months is to be provided.
Sukhdev then drew a new bill for balance amount plus interest at 12% p.a. for two months.
Namdev accepted the new bill. On due date the new bill was honoured.
Give Journal Entries in the books of Sukhdev.
Q. 5. Jay, Ajay and Vijay were partners sharing profits and losses in the proportion of 2 : 2 : 1. Following is their
Balance Sheet as on 31-03-2013. [10]
Amount Amount
Liabilities Assets
(`) (`)
Capital A/cs: Machinery 50,000
Jay 60,000 Stock 20,000
Ajay 20,000 Debtors 55,000
Vijay 20,000 Less: R.D.D. 3,000 52,000
General reserve 6,000 Investments 24,000
Creditors 40,000 Profit and Loss A/c. 18,000
Jay’s loan A/c 8,000 Bank 4,000
Bills payable 14,000
1,68,000 1,68,000
On the above date the partners decided to dissolve the firm.
(1) Assets were realised as − Machinery ` 45,000, Stock ` 18,000, Investment ` 21,000, Debtors
` 45,000.
(2) Dissolution expenses were ` 3,000.
404
(3) Goodwill of the firm realised ` 24,000.
Prepare:
(1) Realisation account.
(2) Partners’ capital account.
(3) Bank account.
OR
Yogeshwari Co. Ltd., Ambajogai made an issue of 20,000 equity shares of ` 20 each, payable as
follows :
Application ` 5 per share, Allotment ` 10 per share, First call ` 3 per share, Second and final call
` 2 per share.
The company received applications for 25,000 shares of which application for 5,000 shares were
rejected and money refunded. All the shareholders paid up to second and final call, except Dhiraj,
the allotee of 200 shares who failed to pay the final call.
Pass journal entries in the books of Yogeshwari Co.Ltd., Ambajogai.
Q. 6. Following is the balance sheet as on 1.4.2012 and receipts and payments accounts of Mahakavi Kalidas
Library, Nashik. Balance Sheet an on 31st March, 2013.
Amount Amount
Liabilities Assets
(`) (`)
Capital Fund 6,90,000 Furniture 72,500
Expenses due 7,000 Books 5,51,000
Investments in securities 50,000
Cash in Hand 8,500
Cash in Bank 15,000
6,97,000 6,97,000
Receipts and Payments for the year ending 31st March, 2013
Amount Amount
Receipts Payments
(`) (`)
To Balance b/d By Electricity charges 6,980
Cash in hand 8,500 By Postage and Telegram 6,100
Cash in bank 15,000 By Purchase of books 80,000
To member’s Subscriptions 1,80,000 By Payments of expenses due 7,000
To Entrance fees 25,000 By Sundry Expenses 10,500
To Sales of old newspapers 1,500 By investment in securities 1,00,000
To Hire of lecture hall 18,000 By Funiture 28,000
By Balance c/d
Cash in hand 6,420
To Interest on securities 4,000 Cash in bank 7,000
2,52,000 2,52,000
Adjustments:
1. During the current year, funiture was purchased on 1.10.2012. Depreciate furniture @ 10% p.a.
2. Depreciate books by ` 1,00,000.
3. Membership subscription received during the year includes ` 15,000, for the year 2013-14 and `
7,500, are outstanding for current year.
4. Capitalise half (1/2) of the entrance fees.
Prepare: Income and Expenditure account for the year ended 31st March, 2013 and Balance
Sheet as on 31st March, 2013.
405
Std. XII : Commerce
Q. 7. Satish and Pradeep are partners in a partnership firm, sharing Profits and Losses equally. From the
following Trail Balance and Adjustmetns given below your are required to prepare Trading and Profit and
Loss Account for the year ended 31st March, 2013 and Balance Sheet as on that date.
Amount Amount
Debit Balance Credit Balances
(`) (`)
Purchases 2,20,000 Partners’ capital
Sundry Debtors 45,000 Satish 1,20,000
Discount 4,000 Pradeep 90,000
Opening Stock 25,000 Sales 4,30,000
Wages and Salaries 23,000 Sundry Creditors 85,000
Manufacturing expenese 25,500 Discount 3,500
Factory Building 1,75,000
Plant and Machinery 75,000
Advertisement (for 2 yrs w.e.f. 1.1.13 10,000
Salary and Wages 45,000
Cash in hand 15,000
10% Govt. Bonds
(Purchased on 01.07.2012) 60,000
Warehouse Rent 6,000
7,28,500 7,28,500
Adustments:
1. Closing stock was valued at market price at ` 92,000, which is 15% above its cost price.
2. Depreciate machinery at 10% p.a.
3. Outstanding wages were ` 2,500.
4. Maintain R.D.D. at 5% on sundry debtors.
406


(A) Answer the following questions in ‘one sentence’ each: (5)
(1) What do you mean by ‘carriage inward’?
(2) What is ‘due date of a bill?
(3) What is ‘deficit’?
(4) What do you mean by ‘sacrifice ratio’?
(5) Which statement is prepared under single entry system to ascertain profit?
(1) The debit balance of trading account.
(2) The excess of total assets over total liabilities of a ‘not for profit concern’.
(3) Expenses incurred on dissolution of a partnership firm.
(4) Transfer of title of a bill from a debtor to a creditor.
(5) The statement showing profitability of two different periods and its percentage change.
(C) Select the most appropriate alternative from those given below and rewrite the
statements: (5)
(1) When shares are forfeited, share capital account is _______.
(A) debited (B) credited
(C) adjusted (D) none of the above
(2) A bill drawn and accepted on 23rd November, 2012 for two months will be payable on
_______.
(A) 23rd January, 2012 (B) 23rd January, 2013
(C) 25th January, 2013 (D) 26th January, 2013
(3) If the opening capital is ` 80,000, closing capital is ` 1,80,000, withdrawals are
` 10,000 and additional capital brought in is ` 20,000, the profit will be ` _______.
(A) 90,000 (B) 1,10,000
(C) 70,000 (D) 1,50,000
(4) Assets and liabilities are transferred to Realisation Account at their _______ value.
(A) market (B) purchase
(C) sale (D) book
(5) Share of profit of a deceased partner till the date of his death is _______.
(A) debited to profit and loss adjustment account.
(B) credited to profit and loss adjustment account.
(C) debited to profit and loss suspense account.
(D) credited to profit and loss suspense account.
(1) Honour of bill means payment in accordance with the apparent tenor of the bill.
(2) The issue of debenture more than the face value is termed as issue of debenture at par.
(3) Return inward is deducted from purchases.
(4) Ratio analysis is useful for inter-firm comparison.
(5) Renewal is a request by drawee to cancel the old bill and draw a new bill by extending the
credit period.
387
Std. XII : Commerce
(E) Prepare a specimen of Bill of Exchange from the following information: (5)
(1) Drawer − Ramesh Mishra,
L.B.S. Road, Ghatkopar,
Mumbai.
(2) Drawee − Nandkumar Sharma,
Laxmi Road, Pune
(3) Payee − Rupesh Kumar Pande,
Rajkamal Chowk, Amaravati.
(6) Date of bill − 17th February, 2014
(7) Date of acceptance − 20th February, 2014
(8) Accepted for − ` 20,000 only.
Q. 2. Mr. Keshav keeps his books on Single Entry System and disclosed the following information of his
business. [8]
1st April, 12 31 st March, 13
Particulars
(`) (`)
Investments − 30,000
Bills Payable − 18,000
Creditors 52,500 69,000
Furniture 15,000 45,000
Debtors 60,000 90,000
Stock in Trade 30,000 37,500
Cash at Bank 36,000 54,000
(1) Mr. Keshav transferred ` 3,000 per month during the first half year and ` 2,000 per month
for the second half year from business account to his personal account.
(2) He also took goods worth ` 7,000 for private use.
(3) He sold his private asset for ` 27,000 and brought the proceeds into his business.
(4) Furniture to be Depreciated by 10%.
(5) Provide Reserve for Doubtful Debts at 5% on Debtors.
Prepare:
(i) Opening Statement of Affairs
(ii) Closing Statement of Affairs
(iii) Statement of Profit or Loss for the year ended 31st March, 2013.
OR
(A) What are the different ‘cash inflows’ and ‘cash outflows’ of operation activity? (4)
(B) State and explain any ‘four objectives’ of financial statement analysis from business point of
view. (4)
388
Q. 3. Mrs. Snehal and Mrs. Meenal are equal partners in a business. Their balance sheet is as follows: [10]
Balance Sheet as on 31st March 2013
Amount Amount
Liabilities Assets
` `
Capital A/c’s: Premises 20,500
Snehal 80,000 Investments 10,500
Meenal 45,000 1,25,000 Equipments 5,000
Creditors 46,000 Bills receivable 18,000
General Reserve 20,000 Debtors 1,10,000
Less: R.D.D. 11,000 99,000
Bank Balance 38,000
1,91,000 1,91,000
st
They agreed to admit Mrs. Komal on 1 April, 2013 on the following terms:
(1) Komal should bring ` 50,000 towards her capital for one fourth (1/4th) share in future profit.
(2) Goodwill to be raised in the books of the firm for ` 40,000.
(3) R.D.D. to be maintained at 5% on Debtors.
(4) Premises to be valued at ` 30,000 and Equipments to be written off fully.
(5) Creditors allowed a Discount of ` 1,000 and they were paid off immediately.
Prepare: Profit & Loss Adjustment Account, Partner’s Capital Accounts and Balance Sheet of the
new firm.
OR
Pravin, Prakash and Paresh were partners sharing profits and losses in the proportion to their
capitals. Their balance sheet of the firm on 31st March, 2013 was as under:
Balance Sheet as on 31st March 2013
Amount Amount
Liabilities Assets
` `
Capital A/c’s: Land and Building 80,000
Pravin 60,000 Investments 40,000
Prakash 40,000 Debtors 32,000
Paresh 20,000 1,20,000 Less: R.D.D. 4,000 28,000
Creditors 56,000 Stock 36,000
Reserve fund 36,000 Cash 28,000
2,12,000 2,12,000
st
Paresh died on 1 August, 2013 and the following adjustments were made :
(1) Assets were revalued as − Land and building ` 88,000, Investments ` 36,000 and Stock
` 34,000.
(2) All debtors were good.
(3) Goodwill of the firm valued at two times the Average Profit of the last 4 years profit.
(4) Paresh’s share of profit upto his death to be calculated on the basis of Average profit of the
last two years.
(5) Profit 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.
389
Std. XII : Commerce
Q. 4. Journalise the following transactions in the books of Kedarnath: [10]
A. Badrinath informs Kedarnath that Aloknath’s acceptance of ` 16,000 endorsed to Badrinath
has been dishonoured and noting charges amounted to ` 500.
B. Somnath renews his acceptance of ` 14,400 to Kedarnath by paying cash ` 4,400 and
accepting a new bill for 2 months for the balance plus interest @ 12% p.a.
C. Vishwanath retired his acceptance for ` 10,500 to Kedarnath by paying in cash ` 10,250.
D. Recovered only 50% of the amount due from the private estate of Ramnath, who declared
as insolvent, against his bill of ` 12,500.
Q. 5. Devendra and Ganesh were partners sharing profits and losses in the ratio of 3 : 2. They dissolved
the partnership firm on 31st March, 2013 when their position was as follows: [10]
Amount Amount
Liabilities Assets
` `
Sundry Creditors 12,500 Debtors 56,250
Bank Overdraft 10,000 Less: R.D.D. 6,250 50,000
Reserve Fund 15,000 Stock 1,12,500
Capital Account’s: Furniture 25,000
Devendra 1,15,000 Motor Car 37,500
Ganesh 75,000 1,90,000 Cash in hand 2,500
2,27,500 2,27,500
The assets realised as follows:
(1) Debtors ` 45,000, Stock ` 1,00,000 and Goodwill ` 12,500.
(2) Motor car was taken over by Devendra for ` 35,000 and Furniture by Ganesh for ` 30,000.
(3) The creditors were paid ` 11,250 in full settlement.
(4) The Realisation Expenses were ` 5,000.
Pass necessary journal entries in the books of the firm.
OR
Khandelwal Co. Ltd. made an issue of 40,000 Equity Shares of ` 20 each, payable as follows:
Application: ` 5 per share Allotment: ` 10 per share
First Call: ` 3 per share Second and Final Call: ` 2 per share
The company received applications for 45,000 shares of which applications for 5,000 shares were
rejected and the money refunded. All the shareholders paid upto second call except Sachin, the
allotee of 2,000 shares, failed to pay Final Call.
Pass Journal Entries for the above transactions in the books of Khandelwal Co. Ltd.
Q. 6. Following is the Receipts and Payments Account of Chamber of Commerce, Amaravati for the year
ending 31st March, 2012 and some additional information. [12]
Receipts and Payments Account for the year ended 31.03.2012
Dr. Cr.
Amount Amount
Receipts Payments
` `
To Balance b/d (Cash at Bank) 11,960 By Printing and Stationery 6,950
To Subscription 36,500 By Repairs 2,100
(Including ` 2,500 for 2010-11) By Rent 8,500
To Sale of Furniture (Book value ` 18,000) 12,000 By Books 20,000
To Donation for Building Fund 27,000 By Travelling Expenses 2,000
To Admission Fees (Revenue) 5,050 By Investments 40,000
By Insurance 1,700
By Balance c/d (Cash at Bank) 11,260
92,510 92,510
390
Particulars 1.04.2011 31.03.2012
Outstanding 3,000 5,000
Subscription
Furniture 32,000 12,600
Building Fund 1,45,000 –
Capital Fund 1,51,960 –
Investments 2,50,000 –
Prepare Income and Expenditure A/c for the year ended 31st March 2012 and Balance Sheet as on
that date.
Q. 7. Miss Meena and Miss Reena are in partnership sharing Profits and Losses in the ratio of 3 : 2.
From the following trial balance and adjustments, you are required to prepare Trading Account,
Profit and Loss Account for the year ended 31st March, 2013 and Balance Sheet as on that date. [15]
Dr. Cr.
Amount Amount
Particulars Particulars
` `
Building 4,00,000 Capital Accounts
Plant and Machinery 1,20,000 Meena 3,00,000
Purchases 6,50,000 Reena 2,00,000 5,00,000
Carriage 7,000 Sales 8,14,000
Opening Stock 90,000 Sundry Creditors 1,80,000
Wages 35,000 Bank Overdraft 20,000
Sundry Debtors 1,50,000
Salaries 28,000
Postage and telegram 4,000
Insurance 5,000
Bad Debts 3,000
Rent 4,000
Discount 3,000
Drawings
Meena 10,000
Reena 5,000 15,000
15,14,000 15,14,000
Adjustments:
(1) Stock on hand on 31st March, 2013 was valued at ` 1,10,000.
(2) Depreciate Plant and Machinery at 10% p.a.
(3) Create Reserve for Doubtful Debts at 5% on Sundry Debtors.
(4) Salaries include ` 2,500 as Advance to Workers.
(5) Partners are allowed Interest at 5% p.a. on their Capitals.
391
Std. XII : Commerce
BOARD QUESTION PAPER : OCTOBER 2014


(A) Answer the following in ‘one’ sentence each: (5)
(1) What is ‘balance sheet’?
(2) What is ‘deficit’?
(3) What is ‘sacrifice ratio’?
(4) What is ‘allotment of shares’?
(5) Who is a ‘drawer’?
(1) Debit balance on realisation account.
(2) The three extra days which are allowed over and above the period of the bill.
(3) Expenses which are due but not paid at the end of the year.
(4) A statement similar to a balance sheet.
(5) An asset which can be converted into cash immediately.
(C) Select the most appropriate answer from the alternatives given below and rewrite the
sentences: (5)
(1) The profit or loss from revaluation on retirement of partners is shared by _______.
(A) all the partners (B) the remaining partners
(C) only the retiring partners (D) none of these
(2) Purchase of stationery is a _______ expenditure.
(A) capital (B) revenue
(C) long term (D) deferred revenue
(3) _______ means payment of the bill before due date.
(A) Discounting of bill (B) Retirement of bill
(C) Renewal of bill (D) Endorsement of bill
(4) Generally, incomplete records are maintained by the _______ .
(A) trader (B) company
(C) society (D) government
(5) The interest on drawings is transferred to _______ side of the profit and loss account.
(A) debit (B) credit
(C) asset (D) liability
(1) The debenture holder is the owner of the company.
(2) A person, to whom or as per his order amount of bill is payable, is a payee.
(3) Government is not interested in the analysis of financial statement.
(4) On its dissolution, the cash or bank account is closed automatically.
(5) A bill can’t be deposited into a bank for collection.
(1) Drawer − Rahul Chaudhari
105, Ghodbunder Road,
Thane.
(2) Drawee − Prakash Patil
207, Ganga Road,
Nasik.
392
(3) Payee − Sonal Chaudhari
M. G. Road
Dhule.
(6) Date of bill − 15th Dec, 2013
(7) Date of acceptance − 18th Dec, 2014
Q. 2. Mrs. Asha keeps her books on Single Entry System and gives the following information: [8]
31.03.2011 31.03.2012
Particulars
(`) (`)
Cash at Bank 10,000 64,000
Sundry Debtors 50,000 80,000
Stock in Trade 60,000 1,00,000
Furniture 40,000 40,000
Machinery 1,00,000 1,00,000
Bills Payable 10,000 10,000
Sundry Creditors 30,000 40,000
Mrs. Asha withdrew from business ` 30,000 for personal use. She further introduced fresh capital of
` 50,000.
Depreciation is to be charged @ 10% p.a. on furniture and machinery.
Prepare:
(1) Statement of Affairs as on 31.03.2011.
(2) Statement of Affairs as on 31.03.2012.
(3) Statement of Profit or Loss for the year ending 31.03.2012.
OR
(A) What are the investing activities of cash flow? (4)
(B) State the limitations of analysis of financial statements. (4)
Q. 3. Anil and Sunil were partners sharing profits and losses in the ratio of 2 : 1 respectively. Their Balance
Sheet was as follows: [10]
Amount Amount
Liabilities Assets
(`) (`)
Capital A/c’s Cash at Bank 4,000
Anil 24,000 Debtors 15,000
Sunil 16,000 Stock 23,500
Trade Creditors 26,000 Furniture 5,000
Anil’s Loan A/c 6,500 Building 25,000
72,500 72,500
st
On 1 Apr, 2010, Ram is admitted in the partnership on the following terms:
(1) Ram should bring in cash of ` 12,000 as capital for 1/5th share in future profit.
(2) Goodwill A/c be raised in the books of the firm for ` 4,500.
(3) Building is revalued at ` 28,000 and the value of stock be reduced by ` 1,500.
(4) Reserve for doubtful debts be provided at 5% on debtors.
Prepare:
(i) Profit and Loss Adjustment Account.
(ii) Capital accounts of partners.
(iii) Balance Sheet of the new firm.
393
Std. XII : Commerce
OR
Supriya, Surekha and Sujata were partners sharing Profits and Losses in the ratio of 2 : 2 : 1
respectively. Their Balance Sheet as on 31st Mar, 2012 was as follows:
Amount Amount
Liabilities Assets
(`) (`)
Capital A/c’s: Land and Building 50,000
Supriya 40,000 Stock 30,000
Surekha 40,000 Debtors 37,500
Sujata 20,000 Less: R.D.D. 2,500 35,000
Reserve Fund 10,000 Furniture 10,000
Creditors 16,000 Cash at Bank 5,000
Outstanding Expenses 4,000
1,30,000 1,30,000
Sujata died on 1st Jul, 2012 and the adjustments were agreed to as per the deed as follows:
(1) Land and building to be valued at ` 60,000 and all debtors were good.
(2) Stock be depreciated by 10%.
(3) The drawings of Sujata upto the date of her death amounted to ` 2,000.
(4) Interest on capital was to be allowed at 10% p.a.
(5) The deceased partner’s share of goodwill is to be valued at 2 years purchase of average
profit of last 3 years.
The profits were: 2009-10 = ` 15,000; 2010-11 = ` 17,000; 2011-12 = ` 13,000
(6) The deceased partner’s share of profit upto the date of her death should be based on
average profit of the last two years.
You are required to prepare −
(a) Profit and Loss Adjustment Account.
(b) Sujata’s Capital Account showing the balance payable to her Executor’s Loan Account.
(c) Working notes for calculation of (a) Goodwill and (b) Profit till the date of Sujata’s death.
Q. 4. On 14th May, 2012, Rohit sold goods on credit to Devidas for ` 30,000 [10]
On the same date, Rohit draws a bill on Devidas for ` 30,000 at 4 months. Devidas accepted it and
returned to Rohit.
On 17th Jun, 2012, Rohit discounted the bill with his bank @ 10% p.a.
On due date, Devidas finds himself unable to make payment of the bill and requests Rohit to renew it.
Rohit accepted the proposal on the condition that Devidas should pay ` 10,000 on account along
with interest ` 500 in cash and should accept a new bill for the balance at 2 months.
These arrangements were carried through.
Give Journal Entries in the books of Rohit.
Q. 5. Uday and Prabhakar are partners sharing profits and losses in the proportion of 3/5th and 2/5th respectively.
They dissolved their partnership firm of 31st Mar, 2012 when their financial position was as under: [10]
st
Balance Sheet as on 31 Mar, 2012
Amount Amount
Liabilities Assets
(`) (`)
Sundry Creditors 15,000 Cash at Bank 3,000
Uday’s wife’s Loan 30,000 Debtors 67,500
Capital A/c’s: Less: R.D.D. 7,500 60,000
Uday 1,38,000 Stock 1,35,000
Prabhakar 90,000 Machinery 45,000
Furniture 30,000
2,73,000 2,73,000
394
The assets were realised as under:
Goodwill ` 15,000; Stock ` 1,20,000 and Debtors ` 54,000.
Machinery was taken over by Prabhakar at ` 40,000 and Furniture by Uday at book value.
Uday agreed to discharge his wife’s loan.
The creditors were paid at a rebate of ` 3,000.
The expenses of dissolution amounted to ` 6,000.
Pass necessary Journal Entries in the books of the firm.
OR
Milind and Co. Ltd. issued 20,000 equity shares of ` 100 each payable as under:
On Application ` 20 per share.
On Allotment ` 35 per share.
On First Call ` 25 per share.
On Second Call ` 20 per share.
The company received applications for 30,000 equity shares. Applications for 20,000 shares were
accepted and allotted. Applications for 10,000 shares were rejected and refunded in full. The
money due on allotment and both the calls was received in full. The expenses of issue amounted
to ` 5,000.
Pass necessary Journal Entries in the books of the company.
Q.6. From the following Balance Sheet and Receipts and Payments Account of Vidya Mandir High
School, Alibag, prepare Income and Expenditure Account for the year ended 31st Mar, 2008 and
Balance Sheet as on that date. [12]
Balance Sheet as on 1st Apr, 2007
Amount Amount
Liabilities Assets
(`) (`)
Entrance Fees 6,000 Furniture 16,800
Capital Fund 1,03,800 Laboratory 20,000
Library 25,000
Investment 40,000
Cash in Hand 1,000
Cash at Bank 3,000
Outstanding:
Tuition Fees 4,000
1,09,800 1,09,800
Receipts and Payment Account for the year ended 31st Mar, 2008
Dr. Cr.
Amount Amount
Receipts Payments
(`) (`)
To Balance b/d By Furniture Purchased 5,400
Cash in Hand 1,000 By Salaries 60,000
Cash at Bank 3,000 By Rent 28,000
To Tuition Fees 80,000 By Sundry Expenses 15,200
To Term Fees 26,200 By Annual Gathering Expenses 11,300
To Government Grant 16,000 By Insurance 4,000
To Donation of Library 30,000 By Closing Balance:
To Interest on Investment 2,000 Cash at Bank 34,300
1,58,200 1,58,200
395
Std. XII : Commerce
Adjustments:
(1) Tuition fees still receivable are ` 10,000.
(2) Salaries still payable are ` 30,000.
(3) Insurance premium is paid for one year ending 30.09.2008.
(4) Rent paid in advance ` 4,000.
(5) Depreciate furniture and library at 10%. Depreciation to be charged on the closing balances
of the assets.
Q.7. Jitesh and Lailesh are in partnership sharing profits and losses in the ratio of 2 : 1. From the
following Trial Balance and adjustments given below, you are required to prepare Trading and
Profit and Loss A/c for the year ended 31st Mar, 2013 and the Balance Sheet as on that date: [15]
Trial Balance as on 31st Mar, 2013
Particulars Debit Credit
(`) (`)
Prepaid Insurance 800 −
Insurance 2,000
R.B.D.D. − 1,000
Discount 800 −
Postage and Telephone 3,200 −
Salaries 56,000 −
Debtors and Creditors 66,000 68,000
Wages 24,000 −
Opening Stock 48,000 −
Carriage 1,000 −
Purchases and Sales 1,93,200 3,01,600
Return Inwards and Outwards 5,600 9,200
Bank Overdraft − 1,20,800
Plant and Machinery 24,000 −
Land and Building 1,76,000 −
Capital:
Jitesh − 52,000
Lailesh − 48,000
Total: 6,00,600 6,00,600

Adjustments:
(1) Write off ` 2,000 for bad debts and provide R.B.D.D. 5% on debtors.
(2) Goods worth ` 4,000 were distributed as free samples.
(3) Closing stock on 31.03.2013 was valued at the cost of ` 56,000 while its market price was
` 60,000.
(4) Salaries were outstanding ` 2,000.
(5) Depreciate:
Land and Building @ 5% p.a. and Plant and Machinery @ 10% p.a.
396

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Std.

BOARD QUESTION PAPER : MARCH 2016

Q. 1. Attempt any THREE of the following sub-questions: [15]

BOARD QUESTION PAPER : JULY 2016

Q. 1. Attempt any THREE of the following sub-questions: [15]

Q.4. Journalise the following transactions in the books of Jaydeep. [10]

BOARD QUESTION PAPER : MARCH 2015

Q. 1. Attempt any THREE of the following sub-questions: [15]

(4) Capital balance is ascertained by preparing _______.

BOARD QUESTION PAPER : OCTOBER 2015

Q. 1. Attempt any THREE of the following sub-questions: [15]

BOARD QUESTION PAPER : MARCH 2014

Q. 1. Attempt any THREE of the following sub-questions: [15]

BOARD QUESTION PAPER : OCTOBER 2014

Q. 1. Attempt any THREE of the following sub-questions: [15]

Total: 6,00,600 6,00,600

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