2020 H.S. 2nd Year ACCOUNTANCY Question Paper

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

1. (a) Fill in the blanks with appropriate word/words: 1x4=4
(i) Unrecorded liabilities when paid are debited to ______ Account.
(ii) Life Membership Fee is a ____receipt.
(iii) A partner acts as _____of the firm.
(iv) A company is required to publish its _____every year.

(b) Choose the correct alternative:    1x2=2
(i) When a new partner does not bring in his share of goodwill in cash, the amount of premium is debited to:
(a) Premium Account
(b) Cash Account
(c) Capital Account of new partner
(d) Capital Account of old partner.

(ii) Financial statements are:
(a) Summarised reports of recorded facts
(b) Detailed reports of recorded facts
(c) Summarised reports of only cash transactions
(d) None of the above.

(c) State whether the following statement are “True” or “False”: 1x2=2
(i) Subscription received in advance is an asset.
(ii) Interest on debenture is payable only when a company earns profits.

2. Mention two differences between Receipts and Payments account and Income and Expenditure account.  2

3. What is Premium for Goodwill?   2

4. Give two situations under which a partnership firm is dissolved. 2

5. A, B and C are partners sharing profits in the ratio 3:2:1. A retires. B and C have decided to take up A’s share equally. Calculate the new ratio.   2

6. Name any two items of current assets. 2

7. Mention three uses of financial statement. 3

8. What is common size statement? Mention its two uses.   1+2=3


Current Ratio is 3:5:1 and Quick Ratio 2.5:1. Inventory is ₹50,000. Calculate current asset and current liabilities.  3

9. Explain the super profit method of valuation of goodwill.   3

10. State three features of Not-for-profit organization. 3


Calculate the amount of subscription to be credited to Income and Expenditure Account for the year ended 31st March, 2019. 3

(i) Subscription received during the year ended 31st March, 2019, ₹2,50,000.
(ii) Outstanding subscription on 1.4.2018-₹50,000.
(iii) Outstanding subscription on 31.3.2019-₹35,000.
(iv) Advance subscription on 1.4.2018-₹25,000.
(v) Advance subscription on 31.3.2019-₹30,000.

11. What is gaining ratio? Give two distinctions between gaining ratio and sacrificing ratio. 1+2=3


What are the items shown under shareholders’ fund? 3

12. Prepare Income and Expenditure Account from the following Receipts and Payments Account of Ekta Club for the year 31st December, 2018: 5

Additional information:
(i) Outstanding subscription ₹1,000.
(ii) 60% of the admission fees and the whole of the life membership subscription are to be capitalized.
(iii) Depreciation on Books ₹600.


What is the meaning of Found Based Accounting? Mention any three principles of Fund Based Accounting.     2+3=5

13. X Ltd. made a profit of ₹ 5,00,000 after considering the following items:    5
(i) Preliminary expenses written off - ₹5,000
(ii) Description on fixed assets - ₹50,000
(iii) Loss on sale of machinery - ₹20,000
(iv) Provision for doubtful debts - ₹10,000
(v) Gain on sale of Land - ₹7,500

Position of current assets and current liabilities:
                                               2017 (₹)           2018 (₹)
Debtors                                   52,000            78,000
Bills Receivable                      15,000            12,000
Prepaid expenses                   2,000               3,000
Creditors                                40,000             51,000
Bills Payable                          19,000             12,000
Expenses Payable                  34,000            20,000
Calculate cash from operating activities.


What is meant by “cash equivalents”? Mention any three objectives of preparing cash flow statement.  2+3=5

14. Calculate the values of opening and closing stock from the following information: 5
Cost of goods sold - ₹2,00,000
Stock Turnover Ratio – 8 times
Stock at the beginning is 1.5 times more than the stock at the end.


What is Ratio Analysis? Mention any three uses of ratio analysis.    2+3=5

15. Ram, Shyam and Mohan were in partnership sharing profits and losses in the ratio of 3:2:1. On 31.12.2018 Shyam retired from the firm, Balance Sheet of the firm on that date was as under:     2+3=5
The terms of retirement were:
(i) Goodwill of the firm to be valued at ₹12,000.
(ii) Machinery to be appreciated by ₹5,000.
(iii) Furniture to be depreciated by ₹1,000.
(iv) Provision for bad debts to be increased by ₹400.
Prepare Revaluation Account and Partners’ Capital Account.


What is share? Explain different types of shares.      2+3=5

16. What is Profit and Loss Appropriation Account? Why is it prepared?     2+3=5


Ajoy, Bijoy and Sanjay were partners in a firm sharing profits in the ratio of 3:2:1. On 31st March, 2019 their Balance Sheet was as under:  5

Ajoy died on 30.9.2019. Under the partnership agreement the executors of a deceased partner were entitled to:

(a) Amount standing to the credit of Partner’s Capital account.
(b) Interest on Capital @12% p.a.
(c) Share of goodwill on the basis of 4 years purchase of last 3 years average profits.
(d) Share of profit from the 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 (₹)
2016-17                    8,000/-
2017-18                  12,000/-
2018-19                    7,000/-
Prepare Ajoy’s Capital Account on the date of his death.

17. What is dissolution of partnership? How does it differ from dissolution of firm? 2+3=5


Dipali and Rajshri were partners in a firm sharing profits and losses in the ratio of 3:2. They decided to dissolve their firm on 31st December, 2019, when their Balance Sheet was as under:  5

Investments are sold at ₹3,800. Other assets realised as follows:
Land- ₹28,000, Sundry Debtors- ₹1,800, Stock- ₹2,800.
Creditors agreed to accept 5% less. Expenses of realisation amounted to ₹400.
Prepare Realisation Account, Partner’s  Capital Account and Bank Account.

18. Explain the following terms: (any two)    2½ + 2½ =5
(i) Calls-in-advance
(ii) Under Subscription
(iii) Pro-rata allotment of shares


Prepare a common size Income Statement from the following information: 5
Sales                                                  5,00,000
Cost of Goods Sold                           3,78,000
Opening Expenses                              62,500
Depreciation                                       22,000
Income from Investment                  70,000
Income Tax                                         32,500

19. Nanu and Manu are partners of a firm. The Trial Balance of the firm as on 31st March, 2019 was as under: 8

Prepare Profit and Loss Account, Profit and Loss Appropriation Account and the Balance Sheet of the firm for the year ended 31
st March, 2019, after considering the following information:

(i) Write off ₹1,000 as bad debt and provide 5% provision for doubtful debts on remaining debts.
(ii) Commission received in advance ₹500.
(iii) Transfer 10% of Net Profit to General Reserve.
(iv) Allow Interest on Capital @ 5% p.a.

20. Bijoya Ltd. issued 2,000 shares of ₹100 each at par, payable as follows: 8
On Application - ₹30
On Allotment - ₹30
On First Call - ₹20
On Final Call - ₹20

All the shares were duly subscribed for, called-up and paid-up, except the followings:
(a) Arnab holding 100 shares failed to pay first call and final call money.
(b) Ayushi holding 60 shares failed to pay the final money.
All the above shares were forfeited after final call.

Give journal entries in the books of the company to record the above transactions.


(a) Mention three differences between shares and debentures.      3
(b) Mention three uses of securities premium.  3
(c) What is Authorised Capital of a company?    2

21. Give journal entries in the books of PM Ltd. relating to issue of debentures under the following conditions:   2+3+3=8
(a) 120, 8% Debentures of ₹1,000 each issued at a discount of 5% and redeemable at par.
(b) 150, 8% Debentures of ₹1,000 each issued at 5% discount and redeemable at 10% premium.
(c) 200, 7% Debentures of ₹100 each, issued at a premium of 5% and redeemable at 10% premium.


Explain different methods of redemption of debentures.   8

22. Jugal and Govind are partners in a firm sharing profits and losses in the ratio 2:1. Their Balance Sheet as on 1st June, 2019 was as under:     8

On that date Khirod was admitted as a new partner. He paid ₹30,000 towards his capital but unable to pay anything for goodwill in cash. It was agreed that goodwill will be valued at ₹21,000. The new profit sharing ratio among Jugal, Govind and Khirod was agreed at 3:2:1 respectively.

Pass Journal entries to record the above transactions and show the Balance Sheet of the new firm.


(i) Mention any three features of partnership business. 3
(ii) Mention five distinctions between “Fixed” and “Fluctuating” Capital.    5