Orgnisation : Council For Indian School Certificate Examinations
Exam : ISC (Class XII) Accounts
Document type : Question Paper
Website : cisce.org
Download Sample/Model Question Papers :https://www.pdfquestion.in/uploads/cisce.org/5916-ACCOUNTS.pdf
Accounts Question Paper :
ISC Specimen Question Paper 2014
SECTION A
PART I (20 Marks) Answer all questions.
Related / Similar Question Paper : CISCE ISC Sociology Question Paper
Question 1 [10 × 2]
Answer each of the following questions briefly :Question 1 : [10 × 2]
Answer each of the following questions briefly:
(i) Define joint venture.
(ii) State the provisions of the Partnership Act, 1932, in the absence of a Partnership Deed regarding (a) Interest on Partner’s Drawing (b) Interest on advances made by a partner to the firm other than capital.
(iii) State the complete accounting treatment of hidden goodwill at the time of admission of a partner.
(iv) Why are assets revalued and liabilities reassessed when there is a change in profit sharing ratio amongst the partners?
(v) State two differences between dissolution of partnership and dissolution of firm.
(vi) Why is a memorandum balance sheet prepared at the time of dissolution of a partnership firm?
(vii) State two similarities between calls in arrear account and calls in advance account.
(viii) What is the accounting treatment when shares are issued to promoters for consideration other than cash?
(ix) Differentiate between Joint Venture account and JV with …… account.
(x) Mention the name and explain the part of capital of a company which is called up only on its winding up.
Part II : (40 Marks)
Answer any four questions.
Question 2 : [10]
Brian and Derek entered into a joint venture agreement sharing profits and losses equally. Brian purchased 10,000 litres of oil @ ` 40 per litre and incurred freight and insurance amounting to `10,000. The goods were sent to Derek to be sold in the market.
Derek incurred `5,000 on duty and `3,000 on godown rent. During transit, 100 litres were stolen against which Brian received an insurance claim of `3000. Derek took delivery of the remaining consignment and sold 7,000 litres @ ` 50 per litre.
Finally, Derek took over the closing stock for business use. Assume a normal loss of 10 litres due to leakage and evaporation.
You are required to prepare the Joint Venture Account and Derek’s account in the books of Brian assuming both coventurers maintain all accounts.
Note : All calculations are to be made to the nearest rupee.
Question 3 : [10]
The capital accounts of Adam and Batty stood at ` 40,000 and ` 30,000 respectively after the necessary adjustments in respect of the drawings and the net profit for the year ended 31st December 2011.
It was subsequently ascertained that interest on capital and on drawings @ 5% per annum were not taken into account in arriving at the divisible profits for the year.
The drawings of the partners had been : Adam – ` 1,200 drawn at the end of each quarter and Batty – `1,800 drawn at the end of each half year. The net profit for the year amounted to ` 20,000. The partners share profits and losses in the ratio of 3:2.
You are required to pass the necessary journal entries to rectify the lapse in accounting and also prepare the adjusted capital accounts of the partner.
Question 4 : [10]
Following is the Balance Sheet of John and Jimmy as on 31st December 2010
John’s capital 50,000 Goodwill 6,000
Jimmy’s capital 35,000 Land and building 40,000
Reserve 6,000 Furniture 3,750
Creditors 25,000 Stock 25,000
Debtors 20,000
Investments 15,250
Bank 4,500
Cash 1,500
1,16,000 1,16,000
The partners shared profits and losses in the ratio of 2:1. From 1st January, 2011. They agreed to share profits and losses equally. For this purpose, the following particulars are provided
(a) Land and building are to be appreciated by 25% .
(b) Furniture valued at ` 3,250.
(c) Market value of stock is ` 22,500.
(d) A provision for bad debts @ 5% is to be created on debtor.
(e) Goodwill is valued at ` 15,000.
Show the revised Balance Sheet of the firm as on 1st January, 2011 along with appropriate ledger accounts as proper working notes.
Question 5 : [10]
Henry, Jacob and Jackson are partners in a firm. Their Balance Sheet as on 31st December 2011, stood as follows
Liabilities Amount
Assets Amount
Henry’s capital 2,00,000 Plant and machinery 2,00,000
Jacob’s capital 1,50,000 Furniture and fixtures 25,000
Jackson’s capital 40,000 Stock 1,05,000
General reserve 1,00,000 Debtors 1,50,000
Creditors 1,00,000 Investments 1,20,000
6,00,000 6,00,000
The partnership deed provides that the representatives of the deceased partner shall be entitled to
(a) Deceased partner’s capital as appearing in the last balance sheet.
(b) Interest on capital @ 6% per annum up to date of death.
(c) His share of profit up to date of death on the average of last three years’ divisible profit.
(d) His share of goodwill valued at two years’ purchase of the average divisible profit of last three years.
(e) His share of any undistributed profits and losses as per last drawn balance sheet.
(f) Interest on drawings up to date of death will be charged @ 10% per annum.
(g) Assets and liabilities of the firm on the date of death will be revalued and reassessed respectively by an independent valuer.