2017 H.S. 2nd Year ACCOUNTANCY Question Paper

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

The figure in  the margin indicates full marks for the questions 

1. (a) Fill in the blanks with appropriate word/words: 1x4=4
(i) Unrecorded assets when realised are credited to ______ Account.
(ii) When Partners’ Capital Accounts are fixed, their ______ Accounts are prepared.
(iii) Partner’s Loan Account is paid before payment of _____.
(iv) If a partner takes over a liability of the firm, the partner’s capital account is ____.

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

(i) Financial Statements are
(1) Summarized reports of recorded facts
(2) Detailed reports of the recorded facts
(3) Summarized reports of only cash transactions
(4) None of the above

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

(c) State whether the following statements are true or false: 1x2=2
(i) Financial analysis is used only by the creditors.
(ii) The decreased partner’s executor is entitled to a share of profit for the period upto his/her death.

2. What is a Capital Fund? 2

3. Ram, Shyam and Hari are partners sharing profits in the ratio of 2:2:1. Hari retires. Ram and Shyam 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. Assam Tea Ltd. decided to forfeit 1,000 shares of Rs. 20/- each for non-payment of allotment money of Rs. 5/- each and 1st and final call money of Rs. 2/- each. Give journal entry for the forfeiture of shares. 2

6. Mention any two method of valuation of Goodwill. 2

7. What are the sources of Cash Flows as per AS-3 (Revised)? 3


From the following details, calculate Current Ratio: 3
Sundry Debtors               10,000/-
Stock                                8,000/-
Prepaid Expenses             6,000/-
Sundry Creditors              8,000/-
Bank Overdraft                2,000/-
Interest Payable               2,000/-
Debentures                      50,000/-
Buildings                          1,00,000/-
8. Explain the meaning of financial statements. 3


What is trend analysis? Mention its usefulness. 1+2=3

9. What is Common Size Statement? What do they show?    1+2=3


Explain any one Method of Valuation of Goodwill. 3

10. State any three features of Receipts and Payments Account. 3


Explain the meaning of Fund-based Accounting. 3

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

12. Guwahati Sports Club has a Cash and Bank Balances of Rs. 5,000/- and Rs. 10,000/- respectively on 01-04-2015. From the following details, prepare a Receipts and Payments Account for the year ended 31-03-2016: 5
Entrance fee received                      8,000/-
Donation received                          10,000/-
Donation received for Building      10,000/-
Computer purchased                      12,000/-
Salary Paid                                       5,000/-
Repair to Building                           6,000/-
Rent received                                   5,000/-
Wages paid                                      3,000/-
Outstanding salaries                        2,800/-
Depreciation on Furniture              13,000/-
Maintenance Grant received            8,000/-
Subscription received                     10,000/-
Life Membership Fees received     10,000/-
Cash in hand on 31-03-2016           40,000/-


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

13. From the following information, ascertain “Cash Flow from Investing Activities”: 5
Land and Buildings purchased during the year    Rs. 2,00,000/-
Additional furniture purchased during the year  Rs. 50,000/-
Investments purchased                                         Rs. 50,000/-
Investments sold                                                   Rs. 1,00,000/-
Loss on Sale of Investments                                  Rs. 5,000/-
Plant and Machinery sold during the year            Rs. 40,000/-
Dividend received                                                  Rs. 15,000/-
Interest received                                                    Rs. 20,000/-
Sale of land                                                            Rs. 3,00,000/-
Profit on Sale of land                                             Rs. 1,50,000/-


Explain the meaning of Cash Flow Statement. /mention any three objectives of Cash Flow Statement. 2+3=5

14. From the following information, calculate (i) Current Assets (ii) Current Liabilities and (iii) Quick Ratio. 5

Working Capital= Rs. 40,000/-
Current Ratio = 2:1
Stock = Rs. 30,000/-


What do you mean by Activity Ratios? Explain the method of calculating any one of Activity Ratios.       

15. The Balance Sheet of Ram, Shyam and Hari who were sharing profits in proportion to their capital stood as follows on 31st March, 2016:

Shyam retired on the above date on the following terms and conditions:
(i) That stock be depreciated by Rs. 1,000/-
(ii) That Buildings be appreciated by 20%.
Pass the necessary journal entries and prepare the opening Balance Sheet of the new firm. 5


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

16. A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. Their Balance Sheet as on 31-3-2016 was as follow:

A died on 30-09-2016. Under the agreement, the executors of the deceased partner were entitled to:
(a) Amount outstanding to the credit of partner’s capital account.

(b) Interest on capital at 12% per annum.

(c) Share of goodwill on the basis of four years’ purchase of the average profit of last three years.

(d) Share of profit from closing of the last financial year to the date of death on the basis of last year’s profit.

(e) Profits for the last three years were:

  Year                 Profit
 2013-14            8,000/-
 2014-15           12,000/-
 2015-16            7,000/-

Prepare A’s capital Account on the date of his death. 5


How would you compute the amount due to a retiring partner or the executors of a deceased partner. 5

17. Akash and Bikash are partners sharing profits in the ratio of 3:2. Their Balance Sheet as on 31-03-2016 was as follows:

The firm is dissolved on the above date. Assets are realised at Rs. 60,000/- Dissolution expenses came to Rs. 2,000/-.
Give journal entries to close the books of firm. 5


Explain any five distinctions between Revaluation Account and Realisation Account. 5

18. What do you mean by preliminary expenses? Mention the items which are usually included in the list of preliminary expenses.   2+3=5


Give the new format of the Balance Sheet of a company (main headings only) as per the requirements of the revised Schedule-VI of the Companies Act. 5

19. Following is the Trial Balance of Anima and Pramita as on 31st March, 2016:

Prepare the Profit & Loss A/c and the Profit & Loss Appropriation A/c of the firm for the year ended 31
st March, 2016 and a Balance Sheet as on that date after taking into consideration the following additional information:  8

(i) Depreciate Machinery @ 10% p.a.
(ii) Partners will get interest on capital @ 10% p.a.

20. NE Traders Ltd. issued 5,000 shares of Rs. 20/- each at par payable as follows:
Rs. 5/- on Application
Rs. 5/- on Allotment
Rs. 5/- on First call
Rs. 5/- Second and Final Call.

All the shares were duly subscribed for, called up and paid up. Show the necessary entries in cash book & journal of the company for the above transactions. 8


Write short notes on:  2x4=8
(a) Minimum Subscription
 (b) Authorised Share Capital
 (c) Reserve Capital
 (d) Preference Share

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 premium.


Explain the different methods of redemption of debentures. 8

22. Ram and Shyam are partners in a firm sharing profits and losses in the ratio of 3:1. Their Balance sheet as on 1st April, 2016 was as under:

On that date, Barun was admitted as a new partner. He paid Rs. 30,000/- towards his capital, but was unable to bring his share of Goodwill of Rs. 6,000/- in cash. The new profit sharing ratio was agreed to be 3;2:2.

Pass journal entries in the books of the firm and show the Balance Sheet of the new firm. 8


What do you mean by debenture? Explain any six points of distinctions between shares and debentures. 2+6=8