2015 H.S. 2nd Year ACCOUNTANCY Question Paper

H.S. 2nd Year
Full Marks : 100
Pass Marks : 30
Time : Three hours

Figure in the margin indicates full marks for the questions.

1. (a) Fill in the blanks with appropriate word :   1x4= 4

(i) If a partner takes over a liability of the firm, the partner’s capital  account is ______.
(ii) A partner acts as an _____ for the firm.
(iii) When Partners’ Capital Accounts are fixed, then their ______ Accounts are prepared.
(iv) ______ is the extra earning capacity of a firm.

(b)  Choose the correct alternative :  1x2= 2

(i) In the event of death of a partner, the amount of general reserve is transferred to the Partners’ Capital accounts in :
   (1) New Profit sharing ratio
   (2) Old Profit sharing ratio
   (3) Capital ratio
   (4) None of the above

(ii) Balance Sheet shows :
   (1) Financial Position of a Company
   (2) Profit or Loss of a Company
   (3) Cash flow of a Company
   (4) None of the above

(c)  State whether the following statements are true or false :   1x2= 2

(i) The deceased partner’s executor is entitled to a share of Profit for the period upto his / her death.

(ii) A preference shareholder gets interest at a fixed rate.

2. State any two features of a Not-for Profit organization.   2

3. A, B and C are partners sharing profits in the ratio of 2:2:1. C retires. A and B have decided to share future profits and losses in the ratio of 2:1. Calculate the gaining ratio. 2
4. Mention any two features of debentures.   2

5. Mention any two methods of valuation of goodwill.     2

6. X Ltd. decided to forfeit 1,000 shares of ₹ 10/- each for non-payment of allotment money for ₹ 4/- each and 1st and final call money of ₹ 3/- each. Give journal entry for the forfeiture of shares.     2

7. X, Y and Z are partners sharing profits in the ratio of 3:2:1. It is now agreed that they will share the future profits equally. Goodwill of the firm is valued at ₹ 60,000/- and the same does not appear in the books. Pass necessary journal entries.    3

8. Briefly explain any three objectives of analysis of financial statements.        3


From the following, calculate current Ratio :        3
Sundry Debtors      50,000/-
Stock                          40,000/-
Prepaid Expenses  2,000/-
Sundry Creditors   38,000/-
Bank Overdraft       10,000/-
Dividend payable   10,000/-
10% Debentures    40,000/-
Machinery                50,000/-

9. What do you mean by Forfeiture of shares? Discuss the procedure of forfeiture of shares.  3

10. What is meant by Common Size Statement? Mention any two uses of Common Size Statements.       3


Give any three distinctions between sacrificing ratio and gaining ratio.     3

11. Mention any three objectives of Receipts and Payment Account.     3

12. Give the new format of the Balance Sheet of a Company (main heading only) as per the requirement of schedule VI of the Companies Act, 1956.   5


Distinguish between a Company’s Balance Sheet and a Balance Sheet of a partnership Firm. 5

13. Assam Cricket Club has a Cash and Bank Balances of ₹1,600/- and ₹20,000/- respectively on 01-04-2013. From the following details, prepare a Receipts and Payments Account for the year ended 31-03-2014 :     5

Subscription Received:
For 2012-12                    8,000/-
For 2013-14                   25,000/-
For 2014-15                    1,000/-
Life Membership Fees    4,000/-

14. X Ltd. made a profit of ₹5,00,000/- after considering the following items :

Calculate Cash from Operating Activities for the year ended 31st March, 2014.         5


What is Cash Flow statement? Briefly explain any four objectives of preparing a Cash Flow statement.            1+4= 5

15. From the given information, calculate the stock Turnover Ratio :   5
Sales                           ₹ 4,00,000/-
Gross Profit Ratio           25%
Opening Stock was 1/3rd of the value of the Closing Stock.
Closing Stock was 30% of Sales.


How are the accounts settled between partners on the dissolution of a Partnership Firm?  5

16. The Balance Sheet of A, B and C who were sharing profits in proportion to their capitals stood as follows on 31st March, 2014 :

B retired on the above date on the following terms and conditions :
(i) That stock be depreciated by 6%.
(ii) That a provision for Doubtful Debt be created @5% on Debtors.
(iii) That Land and Buildings be appreciated by 20%.
(iv) That the Goodwill of the entire firm be fixed at ₹ 10,800/- and B’s share goodwill be adjusted into the accounts of A and C who are going to share future profits in the ratio of 5:3. (No Goodwill account is to be raised).
Pass the necessary journal entries in the books of the firm.       5


Explain the issue of Shares at par, at a discount and at a premium.       5

17. A, B, and C were partners in a firm sharing profits in the ratio of 5:3:2. On 31st March 2013, their Balance  Sheet was as follows :

A died on 1st October, 2013. It was agreed between his executors and the remaining partners that :

(ii) Machinery and Building be valued at ₹28,000/- and ₹25,000/- respectively.
(iii) Profit for the year 2013-14 be taken as having accrued at the same rate as that of the previous year.
(iv) Interest on capital be provided at 10% p.a.
(v) The amount due to A shall be transferred to his executor’s Loan Account.
Prepare A’s Capital Account as on the date of his death.             5

18. A and B are partners sharing Profits in the ratio of 3:2. Their Balance Sheet as on 31.03.2014 was as follows :

The firm is dissolved on the above date. Assets are realised at ₹13,500/-. Dissolution expenses came to ₹250. Give journal entries to close the books of the firm.           5

19. Preety and Jyoti are partners in a firm sharing profits in the ratio of 3:2. The Trial Balance of the firm as on 31-03-2014 was as follows :-

Prepare the Profit and Loss A/c and the Profit and Loss Appropriation A/c of the firm for the year ended on 31-03-14 and a Balance Sheet as on that date after considering the following adjustments:        8
(i) Machinery is to be depreciated by 10%.
(ii) Provision for bad debt is to be increased by ₹200/-.
(iii) Preety was to receive, salary @ ₹300/- per month.
(iv) Interest on Capital is allowed@ 5% p.a.


Distinguish between dissolution of Partnership and dissolution Partnership firm.     8

20.  X Ltd. issued 2,000 shares of ₹100/- each at a premium of ₹20 payable as follows:
₹30/- on Application
₹50/- on Allotment (including securities premium ₹20/-)
₹40/- on First Call & Final Call.

All the shares were duly subscribed for, called up and paid up, except Miss Nitu who holding 300 shares failed to pay First & Final call money. Show entries in the Cash Book and Journal of the company for the above transactions.               8

21. Give journal entries in respect of the following :        8
(i) Debentures issued at par, redeemable at a premium.
(ii) Debentures issued at a premium, redeemable at par.
(iii) Debentures issued at a discount, redeemable at par.
(iv) Debentures issued at a discount, redeemable at par.


What is meant by Redemption of Debentures? Discuss briefly any three methods of Redemption of Debentures.   2+6=8

22. Ram and Shyam are partners sharing profits and losses in the ratio of 3:1. Their Balance Sheet as on 31-03-2014 is given below : 

Hari was admitted as a new partner on the following conditions :
(i) That Hari will bring ₹40,000/- for his capital and ₹ 20,000/- for the premium for Goodwill.
(ii) That Hari will get 1/3rd  share in future profit.
(iii) That the value of stock is be reduced by ₹7,000/-.
(iv) That the value of Plant and Machinery is to be depreciated by 20%.
(v) Furniture is to be reduced by 10%.
(vi) Bad debts amounted to ₹2000/- and are to be written off.
(vii) There was an unrecorded computer valued at ₹10,000 and the same is to be brought into books now.

Prepare a Prevaluation  Account, Partners’ Capital Account and the reconstituted Balance Sheet after Hari’s admission.      3+2+3=8


Who are the users of financial statement? Explain the informations they require from financial statements.     3+5=8