Std.

XII : Commerce

BOARD QUESTION PAPER : MARCH 2018

Time: 3 Hours Max. Marks: 80

Q.1. Attempt any THREE of the following sub-questions: [15]

(A) Answer the following questions in only ‘one’ sentence each: (5)
(1) What is ‘trial balance’?
(2) What is ‘entrance fees’?
(3) What is ‘qualified acceptance’?
(4) When is gain ratio required to be calculated?
(5) What is the formula for calculating gross profit ratio?
(B) Write a word/term/phrase as a substitute for each of the following statements: (5)
(1) The assets which are not recorded in the books of accounts.
(2) The excess of total assets over total liabilities.
(3) The person in whose favour the bill is transferred.
(4) The proportion in which the continuing partners are benefitted due to retirement of a partner.
(5) The system of accounting normally suitable for a small business organization.
(C) Select the most appropriate alternative from those given below and rewrite the statements: (5)
(1) When shares are forfeited, share capital account is _______.
(A) debited (B) credited
(C) adjusted (D) none of these
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(2) A bill is drawn on 23 October, 2016 payable after 3 months, the due date of the bill will be
_______.
(A) 25th January, 2017 (B) 26th January, 2017
(C) 24th January, 2017 (D) 25th January, 2016
(3) The capital balances are ascertained by preparing _______.

(A) Statement of Affairs (B) Cash Account (C) Drawings Account (D)
Debtor’s Account
(4) If any unrecorded liability is paid on dissolution of the firm, _______ is debited.

(A) Cash/Bank Account (B) Realization Account (C) Partners’ Capital

Account (D) Partners’ Loan Account
(5) Return outwards are deducted from _______.
(A) purchases (B) sales
(C) capital (D) debtors
(D) State whether the following statements are True or False: (5)
(1) Closing stock is always valued at market price.
(2) Retirement of bill means payment of the bill before due date.
(3) Share forfeited balance is transferred to Capital Reserve Account.
(4) Gross profit depends upon net sales.
(5) The inland bill which is drawn and payable in the same country.
(E) Prepare a format of a Bill of Exchange from the following information: (5)
Mr. Akash Sane, 42, ‘Sagar’, Bandar Road, Ratnagiri, draws a three months bill on Mrs.
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Megha Kale, Vishram Baag, Sangli, for ` 16,500 on 1 December 2016, which was accepted
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on 4 December 2016, for ` 15,000 only by Mrs. Megha Kale.
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Q.2. Miss Kalpana started her business with a capital of ` 1,30,000 on 1 April, 2015. Her financial
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position on 31 March 2016 was as follows: [8]
Amount (`)
Cash 9,120
Stock 10,250
Bills payable 12,880
Creditors 17,180
Debtors 31,000
Prepaid insurance 550
Bills receivable 29,120
Premises 85,800
Vehicles 40,200
Additional information:
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(1) Miss Kalpana brought additional capital of ` 20,000 on 30 September, 2015.
(2) Interest on capital is to be allowed at 5% p.a.
(3) She withdrew ` 10,000 for personal use.
(4) Reserve for doubtful debts is to be provided at 2½ % after writing off bad debts of ` 1,000.
(5) Depreciate vehicles at 10% p.a. and premises at 5% p.a.
(6) Creditors were overvalued by ` 2,180.
Prepare:
(1) Closing Statement of Affairs as on 31.03.2016.
(2) Statement of Profit or Loss for the year ended 31.03.2016.
OR
(A) State and explain any ‘four objectives’ of analysis of financial statement from a business
concern’s point of view. (4)
(B) What are the different cash inflows and cash outflows of investing activities? (4)
Q.3. The Balance Sheet of Meena and Heena who shared the profits and losses in the ratio of 2 : 1 is as
under: [10]
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Balance Sheet as on 31 March 2016
Amount Amount
Liabilities Assets
(`) (`)
Capital: Leasehold property 20,000
Meena 1,34,000 Livestock 6,600
Heena 1,20,000 Loose tools 90,200
Creditors 53,800 Stock 86,800
Rent outstanding 10,000 Debtors 48,000
Reserve fund 7,200 Less: R.D.D. 2,000 46,000
Bank 75,400
3,25,000 3,25,000
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On 1 April, 2016, Seema was admitted as ¼ th partner on the following terms:
(1) Seema should bring in ` 1,20,000 towards her capital.
(2) Firm’s goodwill is valued at ` 1,44,000 and Seema agreed to bring her share in the firm’s
goodwill by a cheque.
(3) Reserve for doubtful debts should be maintained at 7.5% on debtors.
(4) Increase live stock by ` 4,400 and write off loose tools by 20%.
(5) Outstanding rent ` 9,040 is paid in full settlement.
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Std. XII : Commerce
Prepare:
(1) Profit and Loss Adjustment Account.
(2) Partners’ Capital Account.
(3) Balance Sheet of the new firm.
OR
Ashish, Satish and Manish were partners in a business sharing profits and losses in the ratio of 3 :
1 : 1 respectively.
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Their Balance Sheet as on 31 March, 2016 was as follows:
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Balance Sheet as on 31 March, 2016
Amount Amount
Liabilities Assets
(`) (`)
Capital accounts: Plant and machinery 70,000
Ashish 80,000 Stock 50,000
Satish 60,000 Debtors 40,000
Manish 50,000 Cash 60,000
Creditors 10,000
Reserve fund 20,000

2,20,000 2,20,000
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Manish died on 1 October, 2016 and the partnership deed provided that:
(1) The deceased partner to be given his share of profit upto the date of death on the basis of
the profit of the previous year.
(2) His share of goodwill will be calculated on the basis of two years’ purchase of average profit
of the last four years.
The net profits for the last four years were:
First year: ` 1,40,000, Second year: ` 1,10,000.
Third year: ` 90,000, Fourth year: ` 60,000.
(3) Plant and machinery to be valued at ` 80,000. Reserve for doubtful debts of ` 4,000 to be
created.
(4) The drawings of Manish upto the date of death amounted to ` 40,000.
(5) Interest on capital is to be allowed at 10% p.a. and interest on drawings is charged at 6% p.a.
Prepare:
(1) Profit and Loss Adjustment Account
(2) Manish’s Capital Account
(3) Working of Manish’s share in profit and goodwill

Q.4. Sayali sold goods on credit to Manali for ` 40,000. Sayali draws a bill on Manali for 4 months for [10]
the amount due. Manali accepted the bill and returned it to Sayali. After a month, Sayali
discounted the bill with her bank at 12% p.a.
On the due date, bank informed that the bill is dishonoured and bank paid the noting charges
` 300. Manali requested Sayali to renew the bill. Sayali agreed on conditions that Manali should
pay ` 20,000 in cash along with noting charges and accept a new bill for the balance amount with
interest at 15% p.a. for 3 months.
These arrangements were carried through. Before the due date, Manali was declared insolvent
and only 40% of the amount due could be recovered from her private estate as final dividend.
Give Journal Entries in the books of Sayali.
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Q.5. Ashwin, Bhavin and Pravin carried on business. They share profits and losses in the ratio of 5 : 3 : 2
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respectively. Their Balance Sheet as on 31 March, 2016 was as under: [10]
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Balance Sheet as on 31 March, 2016
Amount Amount
Liabilities Assets
(`) (`)
Sundry creditors 42,000 Plant and machinery 40,000
Bhavin’s loan 10,000 Investment 16,000
Reserve fund 40,000 Stock 60,000
Capital accounts: Debtors 36,000
Ashwin 40,000 Less: R. D. D. 2,000 34,000
Bhavin 20,000 Bank 10,000
Pravin 8,000

1,60,000 1,60,000
On the above date, the firm was dissolved and the assets realised were as under:
(1) Investment ` 10,000, Stock ` 48,000 and Debtors ` 30,000.
(2) Plant and machinery were taken over by Ashwin at book value.
(3) Sundry creditors and Bhavin’s loan were paid in full.
(4) Realisation expenses incurred ` 2,000.
Prepare : (1) Realisation Account (2) Partners’ Capital Account (3) Bank Account
OR
Aniket Ltd. issued 40,000 equity shares of ` 100 each payable as follows :
On application ` 20
On allotment ` 30
On first call ` 30
On second call ` 20
The company received applications for 50,000 equity shares.
Allotment of shares was made on pro-rata basis. Excess application money were adjusted to
allotment. Share allotment and calls were made and also received, except Mr. Sanish who was
holding 1000 shares failed to pay both the calls. His shares were forfeited after the second call.
Record the above transactions in the books of Aniket Ltd.
Q. 6. From the following Receipts and Payments Account of A. S. C. College of Commerce, Ramanand
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Nagar, for the year ending 31 March, 2016 and additional information, prepare Income and
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Expenditure Account for the year ending 31 March, 2016 and Balance Sheet as on that date. [12]
Receipts and Payments Account for the year ended on 31 March, 2016
Dr. Cr.
Amount Amount
Receipts Payments
(`) (`)
To Balance b/d By Salaries 67,000
Cash in hand 7,950 By Electricity 26,200
Cash at bank 50,800 By Books 41,300
To Life membership fees 20,500 By Furniture 45,000
To Donations 1,00,000 By Stationery 18,300
To Tuition fees 1,30,000 By Fixed deposits 2,00,000
To Term fees 1,00,000 By Balance c/d
To Admission fees 40,000 Cash 1,450
Bank 50,000
4,49,250 4,49,250

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Std. XII : Commerce
Additional information:
(1)
01.04.2015 31.03.2016
Particulars Amount Amount
(`) (`)
Furniture 40,000 75,000
Building fund 1,50,000 –
Fixed deposits 1,60,000 –
Capital fund 1,20,750 –
(2) 50% of donations are received for building fund.
(3) Life membership fees are to be capitalised.
(4) Tuition fees includes ` 12,000 received for the last year.
(5) Outstanding tuition fees for the current year amounted to ` 4,200.
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Q.7. Given below is the Trial Balance of M/s. Shailesh and Nilesh as on 31 March, 2016. You are required to
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prepare Trading and Profit & Loss Account for the year ended 31 March, 2016 and Balance Sheet
as on that date: [15]
Trial Balance as on 31.03.2016
Amount Amount
Debit Balances Credit Balances
(`) (`)
Opening stock 88,000 Capital accounts
Purchases 1,76,000 Shailesh 1,20,000
Wages 23,500 Nilesh 1,20,000
Salaries (10 months) 18,000 Sundry creditors 1,03,000
Office expenses 8,000 Bank overdraft 60,000
Bank charges 2,600 Sales 3,08,000
Machinery 90,000 Current accounts:
Land and building 1,30,000 Shailesh 5,000
Bad debts 4,000 Nilesh 4,000
Sundry debtors 82,000
Electricity charges 9,900
Furniture 43,000
8% Debentures
(1.10.2015) 40,000
Drawings:
Shailesh 3,000
Nilesh 2,000
7,20,000 7,20,000
Adjustments :
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(1) Stock on 31 March, 2016 was valued at market price of ` 84,000, which was 20% above its
cost price.
(2) Depreciate machinery at 10% p.a.
(3) Create reserve for bad and doubtful debts at 5% on sundry debtors.
(4) Provide interest on capital at 8% p.a.
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(5) Machinery includes purchase of machinery for ` 40,000 on 1 January, 2016.

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