Model Question Set
Subject: Account II | Class: 12 | F.M.: 100 | P.M.: 35 | Time: 3hrs
Candidates are required to give answers in their own words as far as practicable. The figures in the margin indicate full marks.
Attempt all questions.
- Write any two characteristics of a company. [2]
- Point out any three difference between equity shares and preference shares. [3]
- What do you understand by Financial Statement Analysis? [3]
- Mention any two objectives of funds flow analysis. [2]
- Name and define any two types of costing. [3]
- Differentiate between direct and indirect cost. [2]
- Give the specimen of purchase requisition form. [2]
- What do you understand by allocation, appointment and absorption of overhead? Write in brief.
- A Company forfeited 200 shares of Rs. 100 each of shareholder for non-payment of final call money of Rs. 30 per share. These shares were reissued at Rs. 60 per share as fully paid.
Required: Journal entries for: (a) Forfeiture (b) Reissue (c) Transfer
- A Company limited invited applications for 1,000 shares of Rs. 100 each at a premium of Rs. 20 per share payable as under: [6]
On application Rs. 30
On allotment (including premium) Rs. 50
On first and final call Rs. 40
The public applied for 1,500 shares. Applications for 300 shares were rejected and allotment of excess application money in part payment of allotment. One shareholder, holding 20 shares, failed to pay the money due on allotment and the call. His shares were forfeit.
Required: Journal entries for:
i. Share allotment
ii. Share first and final call
iii. His shares were forfeiture
- R.Co. Ltd.took over the following assets and liabilities of S. Co. Ltd. at on agreed purchase price of Rs. 69,000. [3]
| Sundry debtors | 60,000 | Stock in trade | 76,000 |
| Machinery | 1,00,000 | Cash and bank | 5,000 |
| Sundry creditors | 40,000 | Outstanding expenses | 15,000 |
The company issued fully paid equity shares of Rs. 100 each at Rs. 115 per share for the payment of purchase consideration amount.
Required: Journal entries.
- X. Co. Ltd. issued 200, 10% debentures of Rs. 100 each at a discount of 10% and redeemable at the end of 5 years at a premium of 5%. The debentures were redeemed after 5 years.
Required: Journal entries for issue and redemption of debentures. [4]
- The Trail Balance of a company as on 31st Chaitra, last year is given below. [15]
| Particulars | Debit (Rs.) | Credit (Rs.) |
| Building | 90,000 | |
| Machinery | 66,000 | |
| Land | 1,07,000 | |
| Creditors | 68,000 | |
| Advance rent | 12,000 | |
| Share capital | 80,000 | |
| Cash at bank | 40,000 | |
| Debtors | 14,000 | |
| Prepaid insurance | 6,000 | |
| General reserve | 44,000 | |
| Revenue | 3,22,000 | |
| Wages | 1,10,000 | |
| Salaries | 20,000 | |
| Sundry expenses | 40,000 | |
| Interest | 9,000 | |
| Insurance | 24,000 | |
| Total | 5,26,000 | 5,26,000 |
Additional Information:
i. Outstanding wages Rs. 10,000
ii. Outstanding interest Rs. 1,000
iii. Depreciation on Building and Machinery 10%
iv. Insurance premium Rs. 4,000 advance paid
Required: Ten-column worksheet.
- Prepare Income statement and balance Sheet as on 31st Chaitra, last year from the Ten-column work sheet of questions No. 13. [5]
- The Balance Sheet of A.K. Co. Ltd. as on 31st Chaitra, 2062 is as under: [5]
| Liabilities | Rs. | Assets | Rs. |
| Share capital | 2,00,000 | Fixed assets | 2,00,000 |
| Retained earning | 1,50,000 | Investment | 1,23,000 |
| 10% Debentures | 70,000 | Sundry debtors | 1,00,000 |
| Sundry debtors | 30,000 | Inventory | 50,000 |
| Overdraft | 20,000 | Preliminary expenses | 7,000 |
| Outstanding expenses | 10,000 | ||
| Total | 4,80,000 | Total | 4,80,000 |
Additional Information:
i. Fixed assets turnover ratio 3
ii. Gross profit Rs. 60,000
Required:
a. Sales amount
b. Current ratio
c. Quick ratio
d. Debt-equity ratio
e. Gross profit ratio
16. The opening and closing balance of different accounts are as under. [5]
| Particulars | Openings Balance (Rs.) | Closing Balance (Rs.) |
| Sundry debtors | 30,000 | 50,000 |
| Inventories | 1,00,000 | 1,10,000 |
| Cash at bank | 11,000 | 18,000 |
| Sundry creditors | 71,000 | 94,000 |
| Outstanding expenses | 7,500 | 5,500 |
| Fixed assets | 1,40,000 | 1,88,000 |
| 10% Debentures | 75,000 | 50,000 |
| Share capital | 1,53,000 | 2,04,000 |
Additional Information: Funds from operation was Rs. 38,500
Required:
i. Schedule of changes in working capital.
ii. Funds flow statement.
17. Following are the Balance Sheets of a company as on 31st Chaitra: [10]
| Liabilities | 1st Year | 2nd Year | Assets | 1st Year | 2nd Year |
| Share capital | 2,40,000 | 3,30,000 | Plant and machinery | 2,10,000 | 3,00,000 |
| Share premium | 33,000 | Land and building | 1,41,000 | 3,81,000 | |
| Reserve and suppliers | 1,95,000 | 2,01,600 | Long term investment | 66,000 | 42,000 |
| Long term liabilities | 1,50,000 | 3,00,000 | inventories | 42,000 | 57,000 |
| Accumulated Dep | 90,000 | 1,65,000 | Sundry debtors | 75,000 | 87,000 |
| Sundry creditors | 45,000 | 60,000 | Cash and bank | 2,01,000 | 2,52,600 |
| Bills payable | 15,000 | 30,000 | |||
| 7,35,000 | 11,19,600 | 7,35,000 | 11,19,600 |
Income for the second year is as follows:
| Particulars | Rs. | Rs. | |
| Sales | 3,60,000 | ||
| Cost of goods sold | 2,02,200 | ||
| Less: | Depreciation on plant | 30,000 | 1,57,800 |
| Depreciation on building | 48,000 | 1,57,800 | |
| Operating expenses | 60,000 | 19,000 | |
| Net income from operation | 7,200 | ||
| Gain on sale of investment | 27,000 | ||
| Less | Loss on sale of machinery (Proceeds were Rs. 9,000) | 3,000 | |
| Net Income | 24,000 | ||
| Less | Dividend paid | 17,400 | |
| Retained earning | 6,600 | ||
Additional Information:
i. Investment costing Rs. 24,000 was sold for Rs. 31,200
ii. The plant purchase for Rs. 1,05,000
Required: Cash flow statement using direct method.
18. The details form materials purchase of a firm are:
Annual requirement 4,000 units, cost per order Rs. 400, Cost per unit Rs. 200, Inventory carrying cost 10% of inventory value. [2]
a. Economic order quantity
b. No. of orders per year
19. The following are the details of receipts and issues of materials during Ashadh:
1 Opening stock 400 units @ Rs. 5 each
3 Purchase 1600 units @ Rs. each
5 Issued 1000 units
10 Returned to vendors 100 units purchased on 3rd Ashadh
12 Returned from a work order 20 units
15 Issued 500 units
16 Purchased 1000 units @ Rs. 5.50 each
20 Stock verification surplus 10 units
25 Issued 500 units
Required: Store ledger under LIFO method.
20. The following particulars are given:
| Wage material | Rs. 20 per hour |
| Normal time | 30 minutes per unit |
| Production per worker: Ram | 15 units |
| Shyam | 20 units |
Required: Earning of Ram and Shyam by using Piece Rate System.
21. The beginning and ending balance of a manufacturing company for a month are as under:
| Particulars | Beginning | Ending |
| Raw material | Rs. 12,000 | Rs. 10,000 |
| Work-in-progress | 6,000 | 8,000 |
| Finished goods 500 units | 10,000 |
The information available from cost records for the month ended was as follows:
| Direct materials purchased | Rs. 1,20,000 |
| Indirect labour | 18,000 |
| Direct labour | 32,000 |
| Freight on materials purchased | 6,000 |
| Other factory expenses | 30,000 |
| Indirect materials | 34,000 |
| Selling and distribution overhead | 10,000 |
| Production units | 16,000 units |
| Sales units | 15,000 units |
| Profit | 10% on cost |
Required: Cost sheet showing:
- Cost of raw material consumed
- Prime cost
- Factory cost
- Cost of production
- Cost of goods sold
- Cost of sales
- Sales value
22. The net profit shown by financial accounts of a company amounted to Rs. 2,00,000. On reconciliation, the following facts brought to light:
i. The director’s fees amounted to Rs. 6,000 and income tax Rs. 80,000 were included in the financial account but not in cost account.
ii. Under recovery of factory overheads in cost account was Ts. 20,000.
iii. Depreciation in financial account recorded Rs. 22,000 but it was Rs. 20,000 in cost account.
iv. Bank interest and dividend credited to financial account Rs. 10,000.
Required: Reconciliation Statement of Cost and Financial Account.
Related Articles
- BBS principle of management 2074
- old model Question paper marketing 2068 Grade Xi
- model Question paper of economics 2068