2016 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 :  1x4=4
(i) In the absence of Partnership Deed, a Partner who advances money to the firm beyond the amount of his / her capital is entitled to get interest thereon at the rate of  _______ % per annum as per Partnership Act, 1932.

(ii) The members of a Partnership business are collectively known as _________ .

(iii) The amount due to the retiring partner is transferred to his / her _______ Account in case it is not paid immediately.

(iv) In case of fixed capital, a partner’s Capital Account always shows a _______ balance. 

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

(i)  Financial Statements of a company include :
  (1) Balance Sheet
  (2) Profit and Loss Account
  (3) Cash flow Statement
  (4) All of the above

(ii) Profit and Loss Account is also known as ______ statement.

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

(i) Interest on Partner’s Capital is debited to Partner’s Capital Account.
(ii) Debentures holders are creditors of the Company.

2. State the meaning of Not-for-Profit Organization. 2

3. A and B are partners sharing profits in the ratio 3:2. C is admitted as a new partner for 1/5th share in the future profits. Calculate the new profit sharing ratio.  2

4. Mention any two distinctions between shares and debentures.   2

5. A Ltd. forfeited 500 shares of ₹10/- each, ₹8/- paid, for non-payment of final call of ₹2/- each.
Give journal entry of forfeiture of share.   2

6. A and B are partners in a firm sharing profits in the ratio of 3:2. Their capitals as on April 1, 2014, were ₹2,00,000/- and ₹1,80,000/- respectively. On October 1, 2014, A introduced an additional capital of ₹50,000/- and on January 1, 2015, B introduced ₹70,000/-. Interest on capital is allowed at 10% p.a. Calculate interest on capital for both the partners for the year ending March 31, 2015. 2

7. Explain any three objectives of preparing a Cash Flow statement. 1x3=3


From the following details, calculate Current Ratio and Liquid Ratio :  3

Machinery               1,00,000/-
8% Debenture         80,000/-
Bank Overdraft        20,000/-
Sundry Creditors     76,000/-
Prepaid Expenses    4,000/-
Stock                          80,000/-           
Sundry Debtors        1,00,000/-

8. Mention any three items that can be shown under the heading “Reserves & Surplus” in a company’s Balance Sheet.  1x3=3


Give three objectives of financial statement analysis. 1x3=3

9. What is meant by Comparative Statements? What do they show? 1+2=3


Explain the Capitalization method of valuation of Goodwill.   3

10. Mention any three distinctions between Fund-based Accounting and Non-fund based Accounting.  1x3=3


Mention three features of a non-trading organization.  1x3=3

11. Mention any three limitations of Financial Statements. 1x3=3

12. From the following Receipts and Payments Account for the year ended 31st December, 2015 and other details of the Sankardev Club, prepare an Income and Expenditure Account for the year ended 31st December, 2015 :      5

Additional Information :
(i) Outstanding Subscription ₹2,500/-
(ii) Outstanding Salaries ₹1,000/-
(iii) Subscription for 2015 ₹400/- received in 2014.


Mention any five distinctions between Receipts and Payments Account and Income and Expenditure Account.   5

13. From the following details, calculate cash from Investing and Financing Activities :  5

During the year, machinery costing ₹15,000/- was sold at a loss of ₹3,000.
Depreciation on machinery charges during the year amounted to ₹9,000.


Explain any five advantages of Cash Flow Statement.  1x5=5

14. From the following details, calculate Gross profit and Sales :   2½ x 2 = 5
Average Stock= ₹60,000/-
Stock Turnover ratio=6 times
Selling Price is 20% above cost


Name any five ratios used for analyzing the liquidity position of a Firm. 1x5=5

15. Partha, Pranoy and Prasanna are partners sharing profits and losses in the ratio of 3:2:1. On 31st March, 2015, their Balance Sheet stood as follows :

Pranoy retires on that date under the following terms :
(i) The Goodwill of the firm is valued at ₹36000/-.
(ii) Plant and Machinery is to be depreciated by 10%.
(iii) Inventory and Buildings are to be appreciated by 20% and 10% respectively.
Give necessary journal entries in the books of the firm.  5


Explain the procedure of forfeiture of shares. 5

16. Anupam, Binoy and Chandan were partners in a firm sharing profits in the ratio of 2:3:5. On 31st March, 2014, their Balance Sheet was as follows ;

Anupam died on 1st October, 2014. It was agreed between his executors and the remaining partners that :
(i) Goodwill will be valued at 3 years purchase of the average profits of the last four years which were :
   Year                      Profit
2010-11              30,000/-
2011-12              40,000/-
2012-13              40,000/-
2013-14              40,000/-

(ii) Machinery and Furniture be valued at ₹36,000/- and ₹56,000/- respectively.
(iii) Profit for the year 2014-15 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 Anupam shall be transferred to his Executors’ Loan Account.

Prepare Anupam’s Capital Account as on the date of his death.  5


What are the causes of retirement of a Partner from a Partnership firm (Any five causes) 1x5=5

17. R, M and H were in partnership sharing profits and losses in the ratio of 8:5:3 respectively. The firm’s balance sheet as on 31st March, 2015 was as under :                                                 

It was resolved to dissolve the partnership as on that date. The assets were realized as follows:
Machinery             ₹600/-
Stock                       ₹5,230/-
Sundry Debtors   ₹3,555/-

Prepare Realization  Account.   5
What do you mean by dissolution of a Partnership? State three grounds for dissolution of Partnership.            2+3=5
18. Give the new format of the Balance Sheet of a Company (main headings only) as per the requirements of revised Schedule-VI of the Companies Act, 1956. 5


How would you compute the amount due to a deceased Partner’s Executors?   5

19. Following is the Trial Balance of Sudip and Pradip as on 31st March, 2015 :

Prepare the Profit & Loss Account and the Profit & Loss Appropriation Account of the firm for the year ended 31st March, 2015 and a Balance sheet as on that date after taking into consideration the following additional information : 8

(i) Depreciate Plant & Machinery @ 10% p.a.
(ii) Prepaid Publicity ₹500/-
(iii) Outstanding Salaries ₹1,150/-
(iv) Provide for doubtful debt @ 5% on Sundry Debtors
(v) Partners will get interest on capital @ 5% p.a

20. Assam Tea Ltd. has an authorized capital of ₹ 10,00,000/- divided into ₹1,00,000 equity shares of ₹10/- each. The directors decided to issue 50,000 shares to the public at a premium of 10% payable as follows :

On Application ₹3/-
On Allotment (including premium) ₹5/-
and the balance on 1st and final call.

The company received applications for 60,000 shares. The directors decided to reject the excess applications and the money thereon was refunded. All the shares were duly subscribed for, called up and paid up. Give Journal entries and prepare a cash Book in the books of the company.  8


Write short notes on :   2x4=8
(a) Call in Arrear
(b) Calls in Advance
(c) Preference Share
(d) Right Share

21. Tata Motors Ltd. invited applications for the issue of 3,000, 10% debentures of ₹100/- each at a discount of 10% payable ₹30/- on application,₹30/- on allotment (after deducting discount) and the balance on first and final call. All the debentures were subscribed and the debenture money was duly called and paid up.
Give journal entries and show how Debentures Account will be shown in the Balance Sheet of the Company.  8


Give the accounting entries for issue of debentures under different situations with imaginary figures. (Any four situations)  2x4=8

22. A and B two partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31st March, 2015 was as follows :

On 01-04-2015, C was admitted as a new partner for 1/4th share in the future profits on the following conditions :

(i) C will bring ₹20,000/- as Capital and ₹6,000 as premium for goodwill.
(ii) The Land and Buildings will be revalued at ₹35,000/-.
(iii) Plant and Machinery and Furniture will be depreciated by 5% and 10% respectively.
(iv) Stock will be reduced by ₹2,000/-
Give journal entries and prepare the Balance Sheet of the firm after C’s admission. 6+2=8


Give the Accounting entries relating to forfeiture and re-issue of shares with imaginary figures. 8