ISC Class 12 Accounts Previous Year Question Paper 2017

ISC Class 12 Accounts Previous Year Question Paper 2017 Download in PDF. This Old Question Paper also known as ISC Specimen Paper 2017 Class 12 Accounts included all Chapter of ISC Syllabus Partnership Accounts,  Joint Stock Company Accounts,  Financial Statement Analysis,Cash Flow Statement, Ratio Analysis, Accounting Application of Electronic SpreadSheet, Database Management System (DBMS)

 ISC Class 12 Accounts Previous Year Question Paper 2017 from Chapter Partnership Accounts,  Joint Stock Company Accounts,  Financial Statement Analysis,Cash Flow Statement, Ratio Analysis, Accounting Application of Electronic SpreadSheet, Database Management System (DBMS)

SECTION A

PART I (12 Marks)

Answer all questions.

Question 1:

(i) What is meant by ‘Current Maturities of Long Term Debt? How is it disclosed in the Balance Sheet of a company?

(ii) Mita and Mohan are partners sharing profits and losses in the ratio of 1:2 with capitals of ₹ 15,000 and ₹ 25,000 respectively. The partnership deed provides for interest on capital @ 6% per annum. The trading loss for the year ending 31st March, 2016 was ₹ 1,500. State, giving reason, the amount of interest of capital which will be allowed to the partners.

(iii) State the Application of Assets as per Section 48 of the Indian Partnership Act, 1932.

(iv) ‘A company has to pay interest on debentures prior to paying dividend on shares’. Justify.

(v) Give any two differences between Securities Premium Reserve and Premium on Redemption of Debentures.

(vi) Mittal & Sons earned a profit of ₹ 2,75,000 during the year ended 31st March, 2016. 10% of this profit was to be transferred to Investment Fluctuation Reserve. Pass the necessary journal entry for the same.

PART II (48 Marks)

Answer any four questions.

Question 2:

(A) Mohit and Keshav are two partners sharing profits and losses equally. The Balance Sheet of their firm as at 31st March, 2016, was as follows:

Liabilities Amount (₹) Assets Amount (₹)
Creditors General Reserve Capital Mohit 19,030 Keshav 18,870

 

12,330

 2,000

37,900

 

 

Cash in hand

Book Debts

Closing Stock

Building

 Goodwill

 

13,000

10,200

6,730

19,300

3,000

52,230

52,230

Keshav retires on 1st April, 2016 on which date:

(i) The Goodwill of the firm was valued at ₹ 9,000.

(ii) 20% of the General Reserve was kept aside as provision for doubtful debts.

(iii) There was a piece of furniture valued at ₹ 2,060 which was unrecorded in the books of the firm.

Mohit decided to pay off Keshav by giving him this piece of furniture and the balance in annual installments of ₹ 8,000 along with interest @ 5 % per annum.

You are required to prepare:

(a) Keshav’s Capital Account.

(b) Keshav’s Loan Account till it is finally closed.

(B) Arun and Barun are partners in a firm sharing profits and losses equally. Their capitals on 1 st April, 2015, were ₹ 4,80,000 and ₹ 5,40,000. On 1st October, 2015, they decided that the total capital of the firm should be ₹10,00,000, to be contributed equally by both of them. According to the partnership deed, interest on capital is allowed to the partners @ 6 % p.a

You are required to compute interest on capital for the year ending 31st March, 2016.

Question 3:

(A) Nickel Ltd. issued Equity shares of ₹10 each at a premium of ₹3 per share payable as ₹4 per share on application, ₹5 per share on allotment (including premium), ₹2 per share on first call and ₹2 per share on final call.

Amit, who had applied for 2,000 shares, was allotted 1,200 shares. He failed to pay the allotment money and on his failure to pay the first call his shares were forfeited.

Out of the forfeited shares, 1,000 were reissued at ₹7 per share.

You are required to pass journal entries for forfeiture and reissue.

(B) Carbon Ltd. forfeited 800 shares of ₹20 each issued at a premium of ₹2 per share (₹18 called up) on which first call of ₹4 per share was not paid.

Of these 300 shares were re-issued @ ₹15 per share as ₹18 paid up.

You are required to pass journal entries for forfeiture and reissue.

Question 4:

(A) On 1st April, 2015 Max Ltd. took over assets of ₹4,50,000 and liabilities of ₹ 60,000 of Prudence Ltd. for the purchase consideration of ₹4,40,000. It paid the purchase consideration by issuing 8% Debentures of ₹100 each at 10% premium. On the same date it issued another 3,000 8% Debentures of ₹100 each at a discount of 10%, redeemable at a premium of 5% after 5 years. According to the terms of the issue ₹30 is payable on application and the balance on the allotment of debentures.

You are required to pass journal entries in the books of Max Ltd. to record the above transactions.

(B) Palms Ltd. was formed on 1st November, 2015, with a capital ₹12,00,000 divided into Equity shares of ₹10 each at a premium of ₹2 per share. It offered 1,00,000 shares to the public.

The issue price was payable as follows:

₹4 with application

₹6 with allotment (including premium)

The balance as and when required.

The balance was not called till the date of the Balance Sheet.

All the shares offered by the company were subscribed for. One shareholder holding 1,000 shares paid the balance with allotment.

Another shareholder holding 800 shares did not pay the allotment money when due.

You are required to show the items under Equity and Liabilities in the Balance Sheet of the Company (prepared as per Schedule III of the Companies Act 2013) at the end of the financial year with Notes to Accounts.

Question 5:

(A) Diya and Riya were partners sharing profits and losses equally. On 31st March, 2016, the Balance Sheet of the firm was as follows:

Liabilities Amount (₹) Assets Amount (₹)
Sundry Creditors

 

Riya’s Loan

 

General Reserve

 

Investment Fluctuation Fund

 

Riya’s Capital

 

 Diya’s Capital

 

60,000

 

 15,000

 

 15,000

 

2,000

 

30,000

 

10,000

 

Cash

 

Debtors         42,000

 

Less Provision for Doubtful Debts (6000)

 

Stock

 

 Investments

 

Plant & Machinery

 

Diya’s Loan

25,000

 

36,000

 

12,000

 

18,000

 

39,000

 

2,000

 

1,32,000 1,32,000

 Their firm was dissolved on above date and the assets and liabilities were settled as follows:

(i) The creditors were paid off by giving them the plant and machinery at a discount of 10% and the balance in cash.

(ii) Riya’s loan was paid off with interest of ₹500.

(iii) Debtors realized 10% less of the amount due from them.

(iv) Stock was taken over by Riya at ₹7,000.

(v) Investments realized 80% of their book value.

(vi) Realisation expenses ₹600 were paid by Diya.

You are required to prepare:

(a) Realisation Account.

(b) Riya’s Loan Account.

(c) Diya’s Loan Account.

(B) Cake and Muffin are partners sharing profits and losses in the ratio of 5:4.

On April 1, 2016, they admit Cookie as a new partner for 1/6th share in the profits of the firm and the new ratio agreed upon is 3:2:1.

Goodwill, at the time of Cookie’s admission is to be valued on the basis of capitalisation of the average profits of the last three years. Profits for the last three years were:

Year ended 31st March, 2014 ₹ 39,000 (including an abnormal loss of ₹ 9,000).
Year ended 31st March, 2015 ₹ 83,000 (including an abnormal gain of ₹ 8,000).
Year ended 31st March, 2016 ₹ 72,000.

On 1st April, 2016, the firm had assets of ₹ 8,00,000. Its creditors amounted to ₹ 3,60,000. The firm had a Reserve Fund of ₹ 40,000 while Partners’ Capital Accounts showed a balance of ₹ 4,00,000.

The normal rate of return expected from this class of business is 13%.

Cookie brings in ₹ 2,00,000 for her capital but is unable to bring in cash her share of goodwill.

You are required to calculate:

(i) Calculate Cookie’s share of Goodwill in the firm (Show your workings clearly).

(ii) Pass journal entries at the time of Cookie’s admission.

Question 6:

The capital accounts of Asif and Benny stood at ₹ 30,000 and ₹ 40,000 respectively after the necessary adjustments in respect of drawings and net profit for the year ended 31st March, 2016. It was subsequently ascertained that interest on capital @ 10% per annum and interest 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: Asif ₹ 1,200 drawn at the end of each half year and Benny ₹ 1,200 drawn at the end of each quarter.

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:

(i) Pass the necessary journal entries to rectify the lapse in accounting.

(ii) Prepare the adjusted capital accounts of the partners.

Question 7:

Dhruv and Ansh are partners in a firm sharing profits and losses: Dhruv 75% and Ansh 25% respectively.

Their Balance Sheet as at 31st March, 2016 is given below:

Liabilities Amount (₹) Assets Amount (₹)
Sundry Creditors

 

Workmen

Compensation

Reserve

 

Profit & Loss Account

 

Capital Accounts:

 

Dhruv 30,000

 

Ansh 20,000

39,000

 

 5,000

 

10,000

 

50,000

 

 

Cash

 

Sundry Debtors 18,500

 

 Less Prov. for

 

Doubtful debts (1,500)

 

Stock

 

Furniture

 

Land & Buildings Goodwill

 

10,000

 

17,000

 

37,000

 

5,000

 

25,000

 

10,000

 

 

1,04,000 1,04,000

 On 1st April, 2016, Kavi is admitted as a new partner on the following terms:

(i) The value of stock is to be increased to ₹ 42,000.

(ii) Land and building is to be reduced by 20%.

(iii) Bad debts amounting to ₹ 1,800 are to be written off.

(iv) Creditors include an amount of ₹ 5,000 received as commission from Amar. The necessary adjustment is required to be made.

(v) The liability on Workmen Compensation Reserve is determined at ₹ 3,000.

(vi) Kavi is to pay ₹ 15,000 to the existing partners as premium for Goodwill for 20% of the future profits of the firm. He is also to bring in capital equal to 1/4th of the combined capitals of Dhruv and Ansh.

You are required to:

(i) Pass journal entries on the date of Kavi’s admission.

(ii) Prepare the opening Balance sheet of the new firm on the completion of the transactions.

Question 8:

Deepak and Rajesh enter into a Joint Venture to sell umbrellas. Deepak agreed to bring his contribution in cash. Accordingly, a Joint Bank account was opened by him for a sum of ₹ 90,000. Rajesh brought in umbrellas worth ₹ 40,000 as part of his share of capital. Further, umbrellas worth ₹ 1,10,000 were purchased from Kamal who was paid ₹ 60,000 in cash and the balance by a promissory note signed by Deepak and Rajesh. The umbrellas were sent to distant markets for sale. Expenses totaling ₹ 6,000 were incurred in sending them.

Umbrellas originally costing ₹ 50,000 were damaged in transit and a sum of ₹ 40,000 was received from the insurance company. The remaining umbrellas were sold at a profit of 20% on the original cost + proportionate direct expenses.

The promissory note was retired at a rebate of ₹ 1,000.

Rajesh, who looked after the sales, was entitled to a commission @ 2% on the profit after charging such commission.

You are required to prepare:

(i) Joint Bank Account.

(ii) Joint Venture Account.

(iii) Co- Venturers’ Account.

SECTION B (20 Marks)

Answer any two questions.

Question 9:

(a) Why are Prepaid expenses not considered as Quick Assets?

(b) From the following, calculate Inventory Turnover Ratio: [2] Particulars

Opening Inventory ₹ 28,000
Closing Inventory ₹ 52,000
Revenue from Operations ₹ 6,00,000
Gross Profit 25% on cost of revenue from operations

 (c) From the following information calculate (up to two decimal places):

(i) Trade Receivables Turnover Ratio

(ii) Operating Profit Ratio

(iii) Net Profit Ratio

Cash Revenue from Operations ₹ 1,00,000
Net Purchases ₹ 2,97,000
Closing Debtors ₹ 80,000
Closing Bills Receivables ₹ 60,000
Carriage inward ₹ 3,000
Finance cost ₹ 5,000
Administrative expenses ₹ 40,000
Profit on sale of fixed asset ₹ 10,000
Discount received ₹ 7,000

 Question 10:

(A) From the following particulars, calculate Cash Flow from Investing Activities:

Assets Note. No. 31.03.2016 (₹) 31.03.2015 (₹)
Non-Current Assets

(a) Fixed Assets

(i) Tangible

(ii) Intangible

(b) Non-Current Investments

1

 

2

 

3

13,40,000

 

4,60,000

 

2,60,000

11,20,000

 

4,80,000

 

1,60,000

 Notes to Accounts:

Particulars 31.03.2016 (₹) 31.03.2015 (₹)
1 Tangible Fixed Assets

 

Machinery

 

Land

12,40,000

 

1,00,000

 

10,20,000

 

1,00,000

 

13,40,000 11,20,000
2  Intangible Assets

Goodwill

Patents

 

2,00,000

2,60,000

1,00,000

3,80,000

 

4,60,000 4,80,000
3.  Non- Current Investments

Shares of Finance Ltd.

2,60,000 1,60,000

 Additional Information:

(i) Patents were written off to the extent of ₹ 40,000 and some patents were sold at a profit of ₹ 20,000.

(ii) A Machine costing ₹ 1,40,000 (depreciation provided thereon ₹ 60,000 ) was sold for ₹ 50,000.

(iii) Depreciation charged during the year on Plant and Machinery was ₹ 1,40,000.

(iv) Dividend received on shares ₹ 40,000.

(B) From the following extracts of a company’s Balance Sheets, calculate Cash from Financing Activities for the year ending 31st March, 2016:

Particulars 31.3.2016 (₹) 31.3.2015 (₹)
Equity Share Capital

Securities Premium Reserve

12% Debentures

Proposed Dividend

Bank Overdraft

9,00,000

1,25,000

4,00,000

60,000

12,000

7,00,000

1,00,000

3,00,000

70,000

10,000

 Additional information:

(i) Dividend proposed on Equity Shares ₹ 65,000.

(ii) Debentures were issued on 1st April, 2015, at a discount of 10%.

(iii) Unclaimed Dividend ₹ 7,000.

Question 11:

(A) Name any two commonly used tools for comparison of Financial Statements.

(B) (i) State whether declaration of final dividend would result in inflow, outflow or no flow of cash.

(ii) Give one difference between an Operating Activity and an Investing Activity.

(C) Give the formulae for calculating the following ratios:

(i) Interest Coverage Ratio

(ii) Proprietary Ratio

(D) From the following data, prepare a Common Size Statement of Profit & Loss of Pitambar Ltd.

Particulars 31.03.2016 (₹) 31.03.2015 (₹)
Revenue from Operations (% of Other Income) 200% 200%
Other Income 2,00,000 1,50,000
Cost of Materials consumed (% of Operating Revenue) 60% 50%
Other Expenses (% of Material Cost) 10% 20%
Tax Rate 30% 30%

 

SECTION C (20 Marks)

Answer any two questions.

Question 12:

(i) Describe range with an example.

(ii) What is fill handle? Why is it used?

(iii) Mention, with an example, the important criteria for using any formula in excel.

(iv) State any two methods to increase or decrease the column width.

(v) Write the formula for calculating:

(a) Minimum of cell values

(b) Sum of the values in a range that meet specific criteria

Question 13:

From the given table:

Employee code Basic Salary (₹) DA (₹) HRA (₹) Gross Salary (₹)
001 12500 1875 5000 19375
002 9800 1470 3920 15190
003 10100 1515 4040 15655
004 11800 1770 4720 18290
005 13200 1980 5280 20460

 (i) Give the expression for calculating Gross Salary of each employee for the column ‘Gross’.

(ii) Write the expression for retrieving maximum salary paid.

(iii) Mention any two methods to introduce a new column to the left of the column ‘Gross’.

(iv) Name the above column ‘PF’, and give an expression to calculate values as 10% of (Basic + DA).

(v) How will the formula to calculate ‘Gross’, which is a total of Basic, DA, HRA and PF, be changed?

Question 14:

(i) Name any two specific uses of SQL functions.

(ii) Write the command to retrieve data from a table.

(iii) What is the difference between Char & Varchar?

(iv) Write the command to insert a column in a Table.

(v) How can a table from the database be deleted?

Accounts (Question Paper PDF):

Accounts
Updated: July 9, 2022 — 1:09 pm

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