2018 H.S. 2nd Year ACCOUNTANCY Question Paper

Full Marks : 100
Pass Marks : 30
Time : Three hours

1.(a) Fill in the blanks with appropriate word/words:     1x4=4
1) The interest due to the retiring partner is transferred to his _____ account in case it is not paid immediately.
2) A partner acts as _____ of the firm.
3) In case of fixed capital, a partner’s capital account always shows a _____ balance.
4) Unrecorded assets when realised are credited to ______ Account.(b) Choose the correct alternative:   1x2=2

i. Balance Sheet shows:
1) Financial position of a company.
2) Profit and Loss of a company.
3) Cash flow of a company.
4) All of the above.

ii. Financial statements are:
1) Detailed reports of the recorded facts.
2) Detailed reports of the cash transactions only.
3) Summarised reports of recorded facts.
4) Summarised reports of the financial institutions only.

(c) State whether the following statements are true or false:  1x2=2
i) Interest on Partner’s Capital is credited to Partner’s Drawings Account.
ii) Life membership fee is a Revenue receipt.

2. State any two features of a not-for-profit organization.    2

3. What is a Common Size Statement?   2

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

5. What do you mean by Forfeiture of shares?  2

6. What do you mean by Comparative statement?   2

7. Explain the meaning of Cash Flow from Financial Activities.  3


From the following information, calculate Stock Turnover Ratio:     3

8. Mention any three objectives of financial statement analysis.     3


Briefly explain the nature of financial statements.   3

9. Mention any three limitations of financial statements.    3


Explain the meaning of Ratio Analysis.   3

10. Mention any three distinctions between Fund-based Accounting and Non-Fund-based Accounting.     3


What do you mean by Income and Expenditure Account?    3

11. Amar and Bahadur are partners of a firm sharing profits in the ratio of 3:2. They admit Mery as a new partner for 1/4th share in the future profits. The new profit sharing ratio between Amar and Bahadur is agreed to be 2:1. Calculate their sacrificing ratio.           3


Ranjana, Sadhana and Kamona are partners sharing profits in the ratio of 4:3:2. Ranjana retires and Sadhana and Kamona agree to share future profits in the ratio of 5:3. Calculate the gaining ratio.        3

12. From the following Receipts and Payments Account for the year ended 31st March, 2017 and other details of KAZIRANGA SPORTS CLUB, prepare an Income Expenditure Account for the year ended 31st March, 2017.          5
Additional Information:
a) Outstanding Salaries= 2,000/-
b) Prepaid Rent= 1,000/-


Explain the steps in preparation of Income and Expenditure Account.         5

13. Charles Ltd. made a profit of Rs. 1,00,000/- after charging depreciation of ₹20,000 on assets and a transfer to general reserve of ₹30,000. The goodwill written off was ₹7,000/- and gain on sale of machinery was ₹3,000/-. Other information available to you (change in the value of current assets and current liabilities) are: debtors showed an increase of ₹6,000/-; creditors an increase of ₹10,000/-; prepaid expenses an increase of ₹200/-; bills receivable a decrease of ₹3,000/-; bills  payable a decrease of ₹4,000/-
And outstanding expenses a decrease of ₹2,000/-. Ascertain cash flow from operating activities.


Explain the terms: 5
1) Cash equivalents.
2) Cash flows.

14. Mention any five objectives of Ratio Analysis. 5


Calculate current assets of a company from the following information:  5
15. Shyam, Gagan and Ram are partners sharing profits in the ratio of 2:2:1. On 31st March, 2017, their Balance Sheet was as follows:

Gagan retired on that date and Shyam and Ram agreed to share future profits in the ratio 5:3. Stock, Machinery and Buildings were revalued at ₹20,000/-, ₹15,000/- and ₹45,000/- respectively, Prepare Revaluation Account and Partner’s Capital Account.  5


Prepare the new format of the Balance Sheet of a company with the major headings only. 5

16. Mohit, Shohan and Rahul were partners sharing profits in the ratio of 2:2:1. Their Balance Sheet as on 31st March, 2017 was as follows:
Shohan died on June 30, 2017. It was agreed between the remaining partners and his executors that:
1) Goodwill will be valued at ₹50,000.
2) Interest on capital be provided at 10% p.a.
3) Profit for the year 2017-18 be taken as having accrued at the same rate as that of the previous year which was ₹40,000/-.
4) The amount due to Shohan shall be transferred to his Executor’s Loan Account.

Prepare Shohan Capital Account as on the date of his death.  5


What is Partnership Deed? Mention any three distinctions between Fixed and Fluctuating Capital Accounts of a partners. 2+3=5

17. Sonu and Ashu were partners sharing profits in the ratio of 3:1. Their Balance Sheet as on 31st March, 2017 was as follows:

The firm was dissolved on the above date. The assets were realised at ₹50,000/-. Creditors were paid at a discount of 20%. Sonu agreed to pay off the Loan. Realisation expenses were ₹2,000/-.
Prepare Realisation Account, Bank Account and Partners Capital Account. 5


What do you mean by Dissolution of a Partnership? State three grounds for Dissolution of Partnership.   2+3=5

18. Explain the terms ‘Over-subscription’ and ‘Under-subscription’ Shares.   2+3=5

19. Following is the Trial Balance of Ram and Shyam as on 31st March, 2017:

Prepare a Profit & Loss A/c and the Profit & Loss Appropriation A/c of the firm for the year ended31st March, 2017 and a Balance Sheet as on that date, after taking into consideration the following additional information:  8

i. Outstanding Salaries ₹3,000/-
ii. Ram will get a Commission of ₹10,000/- for the year.
20. Honda Ltd. issued 10,000 equity shares of 100 each payable as follows:
₹20/- on application
₹30/- on allotment
₹20/- on first call
₹30/- on second and final call

10,000 shares were applied for the allotted. All money due was received with the exception of both the calls on 300 shares held by Supriya. These shares were forfeited. Give necessary journal entries. 8


Write short notes on:  2x4=8
1) Re-issue of forfeited shares.
2) Calls in Arrears.
3) Calls in Advance.
4) Reserve Capital.
21. XLtd. Issued 5,000, 16% debentures of ₹100/- each at a discount of 5% repayable after 5 years at a premium of 5%. You are required to pass journal entries and show the “Loss on Issue of Debentures Account” over the period of five years.  8


What is  meant by a debenture? Explain the different types of debentures.  2+6=8

22. A and B are partners sharing profits in the ratio of 3:2. Their Balance Sheet as on 31st March, 2017 was as follows:

C was admitted as new partner on the following terms and conditions:
1) C will bring ₹15,000/- for capital and ₹5,000 for his share of Goodwill for 1/6th share in the future profits.
2) The value of stock to be reduced by ₹2,000/- and that of machinery be increased by ₹8,000/-
3) The value of furniture to be fixed at ₹9,000/-
 Pass journal entries in the books of the firm and prepare the Balance Sheet of the new firm. 8


Give journal entries on dissolution of a Partnership firm in respect of the following: 1x8=8
a) For transfer of assets.
b) For sale of assets.
c) If any partner takes over any asset.
d) For payment of Realisation Expenses.
f) For realization of unrecorded assets.
g) For transfer of the balance of General Reserve Account.
h) For payment of Partners’ Loan.