Students must start practicing the questions from RBSE 12th Accountancy Model Papers Board Model Paper 2022 with Answers in English Medium provided here.
RBSE Class 12 Accountancy Board Model Paper 2022 with Answers in English
Time: 2:45 Hours
Maximum Marks: 80
General Instructions for the Examinees:
- Candidate must first write his/her Roll No. on the question paper compulsorily.
- All the questions are compulsory.
- Write the answer to each question in the given answer-book only.
- For questions having more than one part the answers to those parts must be written together in continuity.
- If there is any error/difference/contradiction in Hindi & English version of the question paper, the question of the Hindi version should be treated valid.
Section – A
Question 1.
Multiple Choice Questions [1 × 12 = 12]
(i) Nature of Income & Expenditure A/c is: [1]
(a) Personal A/c
(b) Real A/c
(c) P & L A/c
(d) None of these
Answer:
(c) P & L A/c
(ii) In absence of Partnership Deed, interest on loan is charged:- [1]
(a) 10% Annual
(b) 6% Annual
(c) 12% Annual
(d) 8% Annual
Answer:
(b) 6% Annual
(iii) On the admission of a new partner, increase in the value of Assets is debited to: [1]
(a) Profit and Loss Adjustment A/c
(b) Assets A/c
(c) Old partner’s capital A/c
(d) None of the above
Answer:
(b) Assets A/c
(iv) Shares can be forfeited: [1]
(a) For non-payment of call money
(b) For failure to attend meetings
(c) For failure to re-pay the loan to the bank
(d) All of the above
Answer:
(a) For non-payment of call money
(v) Debentures which are transferable by mere delivery are: [1]
(a) Registered Debentures
(b) First Debentures
(c) Bearer Debentures
(d) Redeemable Debentures
Answer:
(c) Bearer Debentures
(vi) Convertible Debentures can not be issued at a Discount if: [1]
(a) they are to be immediately converted.
(b) they are not to be immediately converted.
(c) Both of the above
(d) None of the above
Answer:
(c) Both of the above
(vii) Excess value of net assets over purchase consideration at the time of purchase of
business is credited to:- [1]
(a) General Reserve A/c
(b) Capital Reserve A/c
(c) Vendor’s A/c
(d) Goodwill A/c
Answer:
(b) Capital Reserve A/c
(viii) Own debentures are those debentures of the company which: [1]
(a) the company allots to its own promoters.
(b) the company allots to its directors.
(c) the company purchases from the market and keeps them as investments.
(d) the company gives to vendor as purchase consideration.
Answer:
(c) the company purchases from the market and keeps them as investments.
(ix) An item is classified as current: [1]
(a) if it is involved in entity’s operating cycle.
(b) If it is cash and cash equivalent
(c) If it is to be realised/settled within 12 months.
(d) All of the above
Answer:
(d) All of the above
(x) The financial statements of a business enterprise include: [1]
(a) Balance sheet
(b) Statement of profit and loss
(c) Cash flow statement
(d) All of the above
Answer:
(d) All of the above
(xi) Comparative statements are also known as – [1]
(a) Dynamic analysis
(b) Horizontal analysis
(c) Vertical analysis
(d) External analysis
Answer:
(b) Horizontal analysis
(xii) The two basic measures of liquidity are: [1]
(a) Inventory turnover and current ratio
(b) Current ratio and liquid ratio
(c) Gross profit margin and operating ratio
(d) Current ratio and average collection period
Answer:
(b) Current ratio and liquid ratio
Question 2.
Fill in the blanks [1 × 6 = 6]
(i) Partnership comes into existence as a result of …………………… among the partners. [1]
Answer:
agreement
(ii) Balance of share forfeiture A/c is shown in the Balance sheet under …………………. . [1]
Answer:
share capital
(iii) Interest on Debentures is a …………………….. against the profit of the company and must
be paid. [1]
Answer:
charge
(iv) Any security in addition to primary security is called ………………. . [1]
Answer:
collateral security
(v) Financial statements are prepared on the basis of …………………. cost. [1]
Answer:
realisation
(vi) The ………………… of business firm is measured by its ability to satisfy its shortterm
obligations. [1]
Answer:
liquidity.
Question 3.
Very Short Answer Type Questions [1 × 12 = 12]
(i) What is meant by Capital Fund ? [1]
Answer:
Capital fund is the excess of assets over the outsider’s liabilities of a not for profit organisation.
(ii) P and Q are partners sharing profits in ratio of 2 : 1. They admitted it into partnership giving him 1/5 share which he acquired from P and Q in 1 : 2 ratio. Calculate new profit sharing ratio. [1]
Answer:
Share acquired from P by R = 1/3 of 1/5 = 1/15
Share acquired from Q by R = 2/3 of 1/5 = 2/15
Remaining share of P = 2/3 – 1/15 = 9/15
Remaining share of Q = 1/3 – 2/15 = 3/15
New profit sharing ratio of P, Q and R – 9/15 : 3/15 : 1/5
= 9 : 3 : 3
= 3 : 1 : 1
(iii) What is Capital Reserve? [1]
Answer:
A capital reserve is a line item in the equity section of a company’s balance sheet that indicates the cash on hand that can be used for future expenses or to offset any capital losses.
(iv) What is meant by irredeemable Debentures? [1]
Answer:
The debentures which will be redeemed only on the winding up of the comapny are called irredeemable debentures.
(v) Profit on cancellation of own Debentures is transferred to which account? [1]
Answer:
It is transferred to capital reserve account.
(vi) X Ltd. purchased Assets worth ₹ 2,88,000. It issued Debentures of ₹ 100 each at discount of 4% in full satisfaction of the purchase consideration. Calculate the number of debentures issued. [1]
Answer:
Number of debentures issued = 2,88,000/96 = 3,000 debentures.
(vii) Give journal entry of interest due on 8% Debentures of ₹ 3,00,000. [1]
Answer:
(viii) What is meant by redemption of debentures by “purchase in open market”? [1]
Answer:
When a company purchases its own debentures in open market for the purpose of immediate cancellation, the process is termed as redemption of debentures by purchase in open market.
(ix) Why is statement of profit and loss is prepared? [1]
Answer:
Statement of profit and loss is prepared to ascertain the net profit or loss earned by the enterprise.
(x) Distinguish between vertical and horizontal analysis of financial data. [1]
Answer:
Vertical analysis of financial statement refers to the comparative statement analysis, while horizontal analysis of financial statement refers to the common size analysis.
(xi) What is meant by common size statements? [1]
Answer:
These are the statements prepared to compare components of financial statements (balance sheet and statement of profit and loss) of two years by inverting them into percentage taking a common base.
(xii) Current liabilities of a company are ₹ 5,60,000. Current ratio is 2.5 : 1 and Quick ratio is
2 : 1. Find the value of inventories. [1]
Answer:
Current Ratio = CurrentAssets/Current Liabilities
= 2.5/1 = Current Assets/Current Liabilities
= 2.5 × Current Liabilities = Current Assets
= 2.5 × 5,60,000 = Current Assets
= ₹ 14,00,000
Quick Ratio = Quick Assets/Current Liabilities
= Quick assets = 2 × 5,60,000
= ₹ 11,20,000
Quick Assets = Current Assets – Inventories
Inventories = Current Assets – Quick Assets
= 14,00,000 – 11,20,000
= ₹ 2,80,000
Section – B
Short Answer Type Questions [2 × 13 = 26]
Question 4.
Distinguish between profit and not-for-profit organisation. [2]
Answer:
Profit Organiation | Not-for-Profit Organisation |
(i) The main motive is to earn profit. | (i) The main motive is social service. |
(ii) Trading and profit and loss account is prepared to ascertain the operating efficiency of the business. | (ii) Income and expenditure account is prepared to ascertain the operating efficiency of the business. |
Question 5.
John Ibraham, a partner in Modem Tours and Travels, withdraws money during the year ending March 31, 2015 from his capital account, for his personal use. Calculate interest on drawings in each of the following alternative situations, if rate of interest is 9 per cent per annum :
(a) If he withdrew ₹ 2000/-per month at the beginning of the month.
(b) If an amount of ₹ 2000/- per month was withdrawn by him at the ehd of each month. [2]
Answer:
(a) Total amount of drawings dining the year = 2,000 × 12 = ₹ 24,000
Average period = 6.5 months
Interest on drawings = 24,000 × \(\frac{9}{100} \times \frac{6.5}{12}\)
= ₹ 1,170
(b) Total amount of drawing during the year = 2,000 × 12 = ₹ 24,000
Average period = 5.5 months
Interest on drawings = 24,000 × \(\frac{9}{100} \times \frac{5.5}{12}\)
= ₹ 990.
Question 6.
A business has earned average profits of ₹ 50,000/- during the last few years. Find out the value of goodwill by capitalisation method given that the assets of the business are worth ₹ 5,00,000/- and its external liabilities are ₹ 90,000/- The normal rate of return is 10%. [2]
Answer:
Capital Employed = Total Real Assets – External Liabilities
= 5,00,000 – 90,000
= ₹ 4,10,000
= \(\frac{4,10,000 \times 10}{100}\) = ₹ 41,000
Super Profit = Average Profit – Normal Profit
= 50,000 – 41,000
= ₹ 9,000
Goodwill = Super Profit × \(\frac{100}{\text { NRR }}\)
= 9,000 × \(\frac{100}{10}\)
= ₹ 90,000
Question 7.
Leela and Meena were partners in a firm sharing profits and losses in the ratio of 5 : 3. In April 2017, they admitted Om as a new partner. On the date of Om’s admission, there was balance of ₹ 8,000/- in General Reserve and ₹ 12000/- (Cr.) in Profit and Loss Account. Record necessary journal entries for the treatment of these items on Om’s admission. The new profit sharing ratio among Leela, Meena and Om was 5 : 3 : 2 . [2]
Answer:
Question 8.
What is meant by Calls in Advance? Explain with an example. [2]
Answer:
When any shareholder pays the call money of share in advance, this situation is called calls in advance. For example.
Ram had to pay ₹ 20 on application. ₹ 20 on allotment and ₹ 60 on first and final call on
1,000 shares. He paid his call money along with allotment call. In this condition, ₹ 1,000 × 60 = ₹ 60,000 will be calls in advance.
Question 9.
Bansal Heavy Machine Ltd. purchased machine worth ₹ 3,80,000/- from Handa Traders. Payment was made as ₹ 50,000/- cash and remaining amount by issue of equity shares of the face value of ₹ 100/- each fully paid at an issue price of ₹ 110/- each. Give journal entries to record the above transaction. [2]
Answer:
Question 10.
Sunena, a shareholder holding 500 shares of ₹ 10 each did not pay the allotment money of ₹ 4 per share (including a premium of ₹ 2) and the first and final call of ₹ 3. Her shares were forfeited after the first and final call. Give journal entry for forfeiture of the shares. [2]
Answer:
Question 11.
R Ltd. offered 20,00,000,10% Debentures of ₹ 200 each at a discount of 7% redeemable at a premium of 8% after 9 years. Record necessary journal entries in the books of R. Ltd. [2]
Answer:
Question 12.
Madhur Ltd. has outstanding 9% Debentures of ₹ 5,00,000/- redeemable at par on January 01/ 2020. Debentures were redeemed on the due date. Record necessary journal entries in the books of the company. [2]
Answer:
Question 13.
Explain the limitations of financial analysis. [2]
Answer:
- An analysis of financial statement cannot take place of sound judgement. It is only a means to reach conclusions.
- The analysis of financial statements cannot provide a basis for future estimation as only past data of accounting information is included in the financial statements.
Question 14.
From the following information, prepare a common size income statement for the year ended March 31,2016 and March 31,2017 : [2]
Particulars | 2015-16 (₹) | 2016-17 (₹) |
Revenue from operations | 18,00,000 | 25,00,000 |
Cost of goods sold | 10,00,000 | 12,00,000 |
Operating expenses | 80,000 | 1,20,000 |
Non-operating expenses | 12,000 | 15,000 |
Depreciation | 20,000 | 40,000 |
Wages | 10,000 | 20,000 |
Answer:
Question 15.
From the following information, calculate inventory turnover ratio: [2]
Revenue from operations – 4,00,000/-
Average Inventory – 55,000/-
Gross Profit Ratio – 10%
Answer:
Cost of Revenue from Operations = 4,00,000 – 40,000
= ₹ 3,60,000
Inventory Turnover Ratio = \(\frac{3,60,000}{55,000}\)
= 6.54 times.
Question 16.
From the following details, calculate interest coverage ratio:
Net Profit after tax ₹ 60000,15% Long term debt ₹ 1000000 and Tax rate 40%. [2]
Answer:
Profit Before Tax = \(\frac{60,000 \times 100}{60}\) = ₹ 1,00,000
Interest Charges = \(\frac{10,00,000 \times 15}{100}\) = ₹ 1,50,000
Profit Before Interest and Tax = 1,00,000 + 1,50,000
= ₹ 2,50,000
Interest Coverage Ratio = \(\frac{2,50,000}{1,50,000}\) = 1.67 times
Section – C
Question 17.
Following is the information given in respect of certain items of a sports club, show these items in the income and expenditure account and the balance sheet of the club: [3]
Particulars | LF. | Amount Dr. (₹) |
Sports fund as on 01-04-2016 | 35000 | |
Sports fund investments | 35000 | |
Interest on sports fund Investment | 4000 | |
Donations for sports fund . | 15000 | |
Sports prizes awarded | 10000 | |
Expenses on sports events | 4000 |
Answer:
In Books of ………………….
Balance Sheet as on …………………. (An Extract)
Liabilities | Amount | Assets | Amount |
Opening Sports Fund 35,000 | Sports Fund Investment | 35,000 | |
Excess of Income over expenditure 5,000 | 40,000 |
Question 18.
Hitesh, Rohit and Harsh are partners in a firm, and their profit sharing ratio is 2 : 2 : 1. Harsh is guaranted an amount of ₹ 10,000 as share of profit, every year. Any deficiency on that account shall be met by Rohit. The Profit for the year ending March 31,2019 was ₹ 40,000. Prepare the Profit and Loss Appropriation Account. [3]
Answer:
Profit and Loss Appropriation Account for the year ended March 31,2019
Question 19.
Vijay and Sanjay are partners in a firm sharing profit and losses in the ratio of 3 : 2. They admitted Ajay into partnership with 1/4 share in profits. Ajay brings in im 30,000 for capital and the requisite amount of premium in cash. The goodwill of the firm is valued at im 20,000. The new profit sharing ratio is 2 : 2 : 1. Vijay and Sanjay withdrew their share of goodwill. Give necessary journal entries. [3]
Answer:
Working Notes : Sacrificing ratio of Vijay and Sanjay
Vijay’s old ratio = \(\frac{3}{5}\)
Vijay’s new ratio = \(\frac{2}{5}\)
Sacrifice = \(\frac{3}{5}-\frac{2}{5}=\frac{1}{5}\)
Sanjay’s old ratio = \(\frac{2}{5}\)
Sanjay’s new Ratio = \(\frac{2}{5}\)
Sacrifice = \(\frac{2}{5}-\frac{2}{5}\) = Nil
Hence, only Vijay has sacrified, so Goodwill will be credited only to Vijay’s capital A/c :
Question 20.
Compute Proprietary Ratio, Working Capital Turnover Ratio and Debt Equity ratio from the following information: [3]
Answer:
= \(\frac{5,00,000}{4,00,000}\)
= 5 : 4 = 1.25 : 1
Note : No information has been given about fixed assets, hence current assets have been assumed as total assets.
Working Capital = Current Assets – Current Liabilities
= 4,00,000 – 2,80,000
= ₹ 1,20,000
Net Revenue from operations = 10,00,000 ,
Working Capital Turnover Ratio = \(\frac{10,00,000}{1,20,000}\)
= 8.33 times
= \(\frac{2,00,000}{5,00,000}\) = 0.4 : 1
Section – D.
Question 21.
Following is the Balance sheet of A and B who share profit in the ratio of 3 :2 : [4]
On that date, C is admitted into the partership on the following terms
1. C is to bring in ₹ 15,000 as capital and ₹ 5,000 as premium for goodwill for 1/6 share.
2. The value of stock is reduced by 10% while plant and machinery is appreciated by 10%
3. Furniture is revalued at ₹ 9,000
4. A provision for doubtful debts is to be created on sundry debtors at 5% and ₹ 200 is to be provided for an electricity bill.
5. Investment worth ₹ 1000 (not mentioned in the balance sheet) is to be taken into account.
6. A creditor of ₹ 100 is not likely to claim his money and is to be written off record journal entries.
Or
Ashish and Datta were partners in a firm sharing profits in 3 : 2 ratio, on 01-04-2017, they achnitted Vimal for 1/5 share in the profits. The Balance sheet of Ashish and datta as on 31-03-2017-
It was agree! that:
1. The value of Land and Building be increased by ₹ 15,000/-
2. The value of plant be increased by ₹ 10,000/-
3. Goodwill of the firm be valued at ₹ 20,000/-
4. Vimal to bring in capital to the entent of 1/5 of the total capital of the new firm. Prepare revaluation a/c and partner’s capital A/c. [4]
Answer:
Or
Working Notes : Adjusted capital of Ashish and Dutta:
Vimal’s share in profit = \(\frac{1}{5}\)
1,40,000 for \(\frac{4}{5}\) share
Total capital of the firm = \(\frac{1,40,000 \times 5}{4}\)
= 1,75,000
Capital of Vimal = 1,75,000 – 1,40,000
= ₹ 35,000
Question 22.
Krishna Ltd. issued 15,000 shares of ₹ 100 each at a premium of ₹ 10 per share, payable as follows: [4]
On application – ₹ 30
On allotment – ₹ 50 (including premium)
On first and final call – ₹ 30
All the shares were subscribed and the company received all the money due, with the exeception of allotment and call money on 150 shares. These shares were forfieted and reissued to Neha as fully paid up shares at an issue price of ₹ 120 each.
Give journal entries iii the books of the company.
Answer:
Question 23.
M.K. Ltd has outstanding 30,000,11% Debentures of ₹ 100 each redeemable at 10% premium as follows-
31 March 2018 – 10,000 DebentpaB?
31 March 2019 – 12,000 Debentures
31 March 2020 – Remaining Debentures
Give necessary journal entries.
Or
Aijun Plastic Ltd. redeemed 1,000,15% Debentures of ₹ 100 each by converting them into equity shares of ₹ 10 each at a premium of ₹ 2.5 per share. The company redeemed the same kind of 500 Debentures by utilising ₹ 50,000 out of profit. Give the necessary journal entries. [4]
Answer:
Or
Working Notes : No. of shares issued = \(\frac{1,00,000}{10+25}\) = \(\frac{1,00,000}{125}\) = 8,000
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