ISC Specimen Question Paper Accounts : www.cisce.org +2 / 12th Std / Plus Two

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Document Described : Accounts Question Paper, ISC Question Paper

ISC SPECIMEN QUESTION PAPER FOR 2012 EXAMINATION
ACCOUNTS (Three hours)
(Candidates are allowed additional 15 minutes for only reading the paper. They must NOT start writing during this time) Answer Question 1 (compulsory) and Question 2(compulsory) from Part I and any other five questions from Part II.
The intended marks for questions or parts of questions are given in brackets [ ].
Transactions should be recorded in the answer book. All calculations should be shown clearly.
All working, including rough work, should be done on the same sheet as, and adjacent to, the rest of the answer.

http://www.cisce.org/isc_XII_SpecimanQP_2012-13.html

Accounts Year 2012 ISC Specimen Question Paper link :
http://www.cisce.org/ISC%202012%20Sp...P/Accounts.pdf

Accounts Year 2013 ISC Specimen Question Paper link :
http://www.cisce.org/ISC%202013%20Sp...P/Accounts.pdf

PART I
Question 1
Answer each of the following questions briefly:
(i) Distinguish between authorized, issued, subscribed, called up and paid up capital by the means of a hypothetical example in the form of a problem.
(ii) What is the complete accounting treatment of interest on loan to the partner during the preparation of a profit and loss appropriation account of a partnership firm assuming that such interest has been paid in cash to the partner by the firm?
(iii) Why are abnormal losses ignored when calculating the profit of the joint venture?
(iv) Give two examples of selling overhead and two examples of distribution overhead in the context of a cost sheet.
(v) What are imputed costs? How will you deal with it during the preparation of a cost sheet?
(vi) What is the basis of accounting that is followed when preparing a cash flow statement?
(vii) State two differences between Debtors’ turnover ratio and Creditors’ turnover ratio.
(viii) What is the self-balancing entry for credit sales and credit purchases?
(ix) When should goodwill be recorded in the books of a firm as per AS – 10? Are there any exceptions? If so, under what circumstances?
(x) Under what heading will ‘Premium on Redemption of Debentures’ be recorded in a Horizontal balance sheet?

Question 2 [10]
Calculate net cash flows from operating activities:
31.3.09 31.3.10
Particulars Rs. Rs.
Profit and Loss Account 30,000 35,000
General Reserve 10,000 15,000
Provision for depreciation on plant 30,000 35,000
Outstanding expenses 5,000 3,000
Goodwill 20,000 10,000
Sundry debtors 40,000 35,000
An item of plant costing Rs. 20,000 having book value of Rs. 14,000 was sold for Rs. 18,000 during 2009 – 2010.

PART II
Question 3
(a) Current liabilities of a company are Rs. 3,00,000. Its current ratio is 3 : 1 and quick ratio is 1 : 1. Calculate the value of stock in trade.
(b) Calculate stock turnover ratio from the following information: Opening stock Rs. 58,000; purchases Rs. 4,84,000; Gross profit rate 25% on sales. Sales – Rs. 6,40,000
(c) From the following information, calculate operating Ratio: Net sales Rs. 5,00,000; cost of goods sold Rs. 3,00,000 and operating expenses Rs. 1,00,000.
(d) X Ltd. has a current ratio of 4 : 1 and its liquid ratio is 3 : 1. If its inventory is Rs. 36,000, find out the value of total current assets, total quick assets and total current liabilities.
(e) From the following Balance Sheet of Spencer Ltd. as on 31.3.2010, calculate debt – equity ratio.
Liabilities Rs. Assets Rs.
Equity share capital 10,00,000Building 5,00,00010%
Preference share capital 4,00,000 Plant 8,00,000
Securities premium 1,20,000Machinery 4,00,000
General Reserve 1,00,000Furniture 2,00,00012%
Debentures 4,00,000Stock 1,00,000
Creditors 1,00,000Debtors 50,000
Bills Payable 1,00,000Bills Receivable 30,000
Outstanding expenses 50,000Bank 1,00,000
Provision for tax 30,000Cash 1,00,000
Discount on issue of shares 20,000 23,00,000 23,00,000

Question 4
A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1. On 31.3.10, B decides to retire and their capital accounts on that date are A – Rs. 60,000; B – Rs. 45,000 and C – Rs. 50,000. Their current accounts on that date are A – Rs. 5,000 (CR); B – Rs. 2,300 (DR) and C – Rs. 3,000 (CR). The partnership deed provided that, in case of retirement, the retiring partner should be entitled to a share of the goodwill of the firm to be calculated on the average of the profits of last three years’ ending on 31.3.2010 which comes to Rs. 12,000 and that the payment of the total interest of the retiring partner will be made by annual instalments of Rs.10,000 each. The retiring partner will be entitled to interest also at 6% on the unpaid balance. The first instalment was paid on 31.3.2010. Show B’s loan account until the whole payment due to him is made.

Question 5
Jacob and Company Ltd. issues one thousand, 14% debentures of Rs. 100 each at par on 1.1.01. Under the terms of issue:
(a) Debenture interest is annually payable on 31st December every year and
(b) th15of the debentures are annually redeemable by drawings; the first redemption occurring on 31.12.03. Pass necessary journal entries for the year 2001 and 2002.

Question 6
Arther and Barry entered into a joint venture on 1.10.2009 for sale of goods paying Rs. 60,000 and Rs. 40,000 respectively in a joint bank account and sharing profits and losses in the ratio of 3 : 5. It was agreed that the joint bank account is to be used for purchases and sales and each venturer is to meet his joint venture expenses out of private funds. Each venturer is to charge a commission @ 5% on sales made by him. The transactions for the period ended 31.3.2010 were as follows: Arther purchased goods costing Rs. 40,000 and incurred carriage amounting to Rs. 6,000. He sold 90% of these goods at 30% over this cost price and selling expenses amounted to Rs. 2,500. Barry purchased goods costing Rs. 50,000 and incurred carriage amounting to Rs. 6,500. He sold 80% of these goods at 25% over the cost price and selling expenses amounted to Rs. 3,000. th15of the remaining goods purchased by Arther was destroyed by fire on 28.2.2010 and the insurance company paid a claim of Rs. 2,000. Write up Joint Venture account, Joint Bank account and Ventures’ account.

Question 7
From the following information prepare a Cost Sheet of Jackson and Company Ltd. showing the total cost for the month of January 2010: Rs. Opening stock of raw materials 60,600
Opening stock of finished goods 35,900
Closing stock of raw materials 75,000
Closing stock of finished goods 30,900
Opening stock of work-in-progress 1,25,600
Closing stock of work-in-progress 1,42,200
Purchase of raw materials 2,85,700
Sale of finished goods 13,50,000
Direct wages 3,50,000
Factory expenses 2,00,000
Office and administration expenses 1,05,000
Selling and distribution expenses 75,000
Abnormal loss of materials 10,000
Cost of idle time in the factory 1,000
Cost of rectification of defective work 5,000

Question 8
The following information has been extracted from the books of Mathew and Company Ltd. for the three months ended 31.12.2008:
1.10.08 Stock 1500 units @ Rs. 2 per unit
12.10.08 Goods received note 2000 units @ Rs. 2.25 per unit
18.10.08 Requisition 1100 units
10.11.08 Requisition 800 units
16.11.08 Requisition 1000 units
18.11.08 Goods received note 2400 units @ Rs. 2.50 per unit
20.12.08 Requisition 900 units At the physical stock taking on
31.12.08, 2000 units were in stock.
You are required to prepare a stores ledger based on LIFO method of pricing. Also prepare a Trading account using this method on the basis of the following sales figures:
18.10.08 1100 units @ Rs. 3.50 per unit 10.11.08 800 units @ Rs. 4 per unit
16.11.08 1000 units @ Rs. 2.75 per unit 20.12.08 900 units @ Rs. 4.50 per unit