Kerala Plus Two Accountancy Previous Year Question Paper 2018
Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60
General Instructions to Candidates
- There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
- Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
- Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
- Read questions carefully before you answering.
- All questions are compulsory and only internal choice is allowed.
- When you select a question, all the sub-questions must be answered from the same question itself.
- Calculations, figures and graphs should be shown in the answer sheet itself.
- Malayalam version of the questions is also provided.
- Give equations wherever necessary.
- Electronic devices except non programmable calculators are not allowed in the Examination Hall.
Answer all questions from 1 to 3. Each carries 1 score.
Question 1:
Complete the series:
a. Receipts and Payments Account → Cash in Hand and Cash at Bank
b. Income and Expenditure Account → ___?__
Question 2:
On admission of a partner, the Debit Balance of profit and Loss Account shown in the Balance Sheet of the firm, denotes:
a. Accumulated Profit
b. Accumulated Loss
c. Revalution Loss
d. General Reserve
Question 3:
On death of a partner, his legal representatives were settled by paying Rs. 1,20,000. As per his Capital Account, the amount due to him after all adjustments was Rs. 1,05,000. Ascertain the deceased partner’s share of goodwill from the firm.
(Hint: Case of hidden goodwill)
Answer any 2 questions from 4 to 6, each carries 2 scores.
Question 4:
List out any four items to be credited to a partner’s Current Account, when capitals are fixed.
Question 5:
Mention two situations in which ‘Compulsory Dissolution’ of a partnership business takes place.
Question 6:
Pass journal Entries on dissolution of a firm, in connection with realisation of assets,in the following cases:
a. Furniture worth Rs. 12,000 taken over by Mr.Roy, one of the partners, at the book value.
b. Unrecorded machinery sold out for Rs. 4,000.
Answer any 5 questions from 7 to 12, each carries 3 scores. (Score : 5 x 3=15)
Question 7:
During the year 2016-17, there was 1800 members in a sports club. The yearly subscription was fixed at Rs.40 per member. There was an unearned subscription of Rs.2,000 at the beginning of the year. The unearned subscription at the end of the year was Rs. 1,200.
Show how the amount of subscription appears in the following financial statements of the club:
a. Income and Expenditure Account.
b. Receipts and Payments Account.
Question 8:
Anu and Beena are partners in a firm sharing profits in 3: 2 ratio. They admitted Bindu as a new partner. Anu surrendered 1/3 of her share in favour of Bindu and Beena surrendered 1/4 of her share in favour of Bindu. Calculate the new profit sharing ratio.
Question 9:
Afnas and Sakariya are partners in a firm sharing profits and losses in the ratio of 3:2 Ukkash is admitted as a new partner for 1/4 share in profits. He should brings in Rs. 50,000 as capital and his share of goodwill in cash. Firm’s goodwill is valued at Rs.80,000 at the time of his admission.
Give necessary journal Entries, on the assumption that 50% of the premium amount is withdrawn by the old partners.
Question 10:
Aran, Hari and Jaya are partners in a firm sharing profits and losses in the ratio of 5 : 3: 2. Jaya retires from the firm and the continuing partners decided to share future profits in the ratio of 3 : 2 respectively. On her retirement, firm’s goodwill valued at Rs.50,000.
Record necessary journal entries for the treatment of goodwill, without opening the Goodwill Account.
Question 11:
Explain the order in which the amounts realised through the sale of assets are to be applied, at the time of dissolution of a partnership firm.
Question 12:
Prepare a Realisation Account from the following details, on dissolution of a firm:
| Balance Sheet as on 31-03-2017 | |||
| Liabilities | Rs. | Assets | Rs. |
| Reserve Fund | 8,000 | Cash in hand | 12,000 |
| Creditors | 22,000 | Stock | 28,000 |
| Capitals: | Debtors | 10,000 | |
| Sudha-20,000 | Furniture | 20,000 | |
| Bindu- 20,000 | 40,000 | ||
| 70,000 | 70,000 | ||
On the date of the balance sheet, the firm was dissolved and all assets were sold out for Rs. 68,000. Firm incurred Rs. 1,000 as the realisation expenses.
Answer any two questions from 13 to 15, each carries 5 scores.
Question 13:
Gireesh and Ramees are equal partners in a firm and their capitals as on 01 -04-2016 were Rs.80,000 and Rs. 60,000 respectively. As per the partnership deed Gireesh is entitled to monthly salary of Rs. 3,000. Ramees gets a commission of 10% on the Net Profits of the business, before charging such commission. They are also eligible for interest on capital @ 8% p.a Interest on drawings is charged as 6%p.a. Gireesh withdrew Rs.2,000 at the begnning of every month for his personal purposes. Total drawings of Ramees during 2016 – 17 was Rs.20,000.
Prepare the Profit and Loss Appropriation Account, to show the distribution of profits among partners. The net profits of the business for the year ended 31 – 03 – 2017 was Rs. 1,24,000(before adjusting above items).
Question 14:
Shammu and Viswan are partners sharing profits in the ratio of 2:1. Radha is admitted into the firm for 1/4 share of profits. The new partner brings in Rs. 40,000 in respect of his capital. The capitals of old partners after all adjustments were Rs.90,000 and Rs.30,000 respectively. It is agreed that partners’ capitals should be according to the new profit sharing ratio.
Determine the new capitals of old partners.
Also record necessary journal entries to adjust the capital accounts in cash terms.
Question 15:
X, Y and Z were partners in business sharing profits and losses in the ratio of 3 : 2: 1. ‘X’ died on October 1, 2016. It was agreed between his executors and the remaining partners that:
a. Goodwill to be valued at 2 years purchase of the average profits of previous ‘5’ years.
(Average profit of past 5 years is worked out as Rs. 30,000)
b. Machinery be depreciated by Rs. 12,000 and Buildings be appreciated by Rs.24,000.
c. Profits for the year 206-17 be taken as having accrued at the same rate as that of the previous year. (The profit of 2015 -16 was Rs.36000)
d. Interest on capital @12% p.an (X’s capital account has a credit balance of Rs.60,000 as on 01-04-2016)
e. Accumulated profits or losses are to be shared among partners. (Balance Sheet of the firm as on 31-03-2016 shows a credit balance of Rs. 24,000 in the Profit and Loss Account) Workout the amount payable to X’s legal representatives and show them in X’s Capital Account.
Answer the question no.16, which carries 8 scores.
Question 16:
The Receipts and Payments Account of a Private School is given below:
Receipts and Payments Account(31-03-2017)
| Receipts | Rs | Payments | Rs |
| Balance b/d | 30,800 | Furniture | 23,000 |
| (Cash at bank) | Investments | 55,000 | |
| Tution Fees | 32,000 | Salaries | 74,400 |
| Admission Fees | 50,200 | Stationery Expenses | 2,400 |
| Endowment Fund | 60,000 | Advertisements | 4,800 |
| Donations | 24,000 | Balance c/d | 42,500 |
| Interest on Investment | 4,600 | (Cash at bank) | |
| Sale of Perio dicals | 500 | ||
| 2,02,100 | 2,02,100 |
The school has following assets and liabilities as on 01-04-2016:
Furniture School Bus Bank Loan
Land & Buildings Rs. 4,50,000
Furniture Rs. 1,85,000
School Bus Rs. 1,15,000
Bank Loan Rs. 1,50,000
Prepare the Income and Expenditure Account for the year ended 31 – 03 – 2017 and the Balance Sheet as on that date by considering the following:
a. Half of the donations should be treated as income.
b. Advertisement expenses outstanding Rs. 1,200.
c. Interest on Bank Loan Rs. 14,600 due for payment.
d. Accrued interest on investments Rs.2,400.
Answers
Answer 1:
b. Surplus / Deficit / Opening Balance
Answer 2:
Actual loss
Answer 3:
Hidden Goodwill = Capitalized value of firm – Networth
= 120000 – 105000 = 15000
Answer 4:
i. Commission
ii. Salary
iii. Interest o capital
iv. General Reserve
v. Credit Balance
Answer 5:
a. Where all the partners or all exept one becomes insolvent or iNSANE.
b. When the business becomes illegal.
c. When all the partners except one decide to retire from the firm.
d. When all the partners or all except one die.
Answer 6:
Answer 7:
a. Income & Expenditure A/C
b. Receipts & Payment A/C
Answer 8:
Answer 9:
Answer 10:
Working notes
1. Jaya’s share of Goodwill = 50000 x \(\frac { 2 }{ 10 }\) = 10000
2. Calculation of gaining ratio
Gaining share = New share – old sharew
Aruns gaining share = \(\frac { 3 }{ 5 }\) – \(\frac { 5 }{ 10 }\) = \(\frac { 5 }{ 50 }\)
Hans gairnng share = \(\frac { 2 }{ 5 }\) – \(\frac { 3 }{ 10 }\) = \(\frac { 5 }{ 50 }\)
Hence, gaining ratio between Arun & Han is 5 : 5 ⇒ \(\frac { 5 }{ 10 }\) : \(\frac { 5 }{ 10 }\)
Answer 11:
a. Paying off rralization expenses
b. Paying the depts of third parties, creditors, Bank OD, Bills payable.
c. Repayment of Loan from partners.
d. Repayment of capital contributed by partners.
e. Surplus if any distributed to partners in the profit sharing ratio.
Answer 12:
Answer 13:
Answer 14:
i. Calculation of new profit sharing ratio
Total share = 1 Radha share = \(\frac { 1 }{ 4 }\)
Remaining shares = 1 – \(\frac { 1 }{ 4 }\) = \(\frac { 3 }{ 4 }\)
Shamnu’s new share = \(\frac { 3 }{ 4 }\) x \(\frac { 2 }{ 3 }\) = \(\frac { 6 }{ 12 }\)
Viswan new share = \(\frac { 3 }{ 4 }\) x \(\frac { 1 }{ 3 }\) = \(\frac { 3 }{ 12 }\)
Radha share = \(\frac { 1 }{ 4 }\) x \(\frac { 3 }{ 3 }\) = \(\frac { 3 }{ 12 }\)
ii. Required capital shamnu & Viswan
Radha’s capital [Who has \(\frac { 1 }{ 4 }\) share in profits] is Rs.40000.
Viswan new share in profits \(\frac { 1 }{ 4 }\) .
Hence his capital will be Rs. 80000.
Alternatively based on Radha’s capital of the firm works out at Rs. 16oooo (4/1 Rs.4000) Hence, based on theior shari in profits, the capital of Shamnu & Viswan will be.
Shamnus capital = \(\frac { 2 }{ 4 }\) of 160000 = 80000
Viswan capital = \(\frac { 1 }{ 4 }\) of 160000=40000
Answer 15:
a. Goodwill = Average profits x No.of years purchase
= 30000 x 2 = 60000
60000 x \(\frac { 3 }{ 6 }\) = 30000
b. Revaluation Profit = 12000
X’s share = 12000 x \(\frac { 3 }{ 6 }\) = 6000
c. P/L Suspense a/c = 36000 x \(\frac { 6 }{ 12 }\) x \(\frac { 3 }{ 6 }\) = 9000
d. Interest on capital = Amount of capital x rule x period
= 6oooo x \(\frac { 12 }{ 100 }\) x \(\frac { 6 }{ 12 }\) = 3600
e. P/L credit Balance = 24000 x \(\frac { 3 }{ 6 }\) = 12000
Answer 16:
Income & Expenditure a/c for the year ended 31/03/17
