Accountancy Quiz

2016-17 of

Class XII

Question : 1.

State any one conditionunder which capital balance

may change under the system of fixed capital account.

Answer 1.

Capital balance may change under fixed capital.

(a) Additional Capital (b) Withdrawal of capital

Question : 2.A and B are partners.

A advances loan of Rs. 6000 to the firm.

Calculate interest on loan in absence of partnership deed .

6000x6/100= Rs. 360

Answer: 2.

Question : 3 .

C and D are partners in a firm. In the absence of partnership deed,

how the profits of the firm would be distributed between the

partners?

Answer: 3.

Equally (1:1)

Question : 4.

E and F have invested Rs. 20,000 and 30,000 respectively as partners

of a firm. Calculate the amount allowed as interest on capital if rate

of interest is 2.5% p.a. as per Partnership deed.

Answer: 4.

Interest on E’s capital= 20,000x2.5/100=Rs 500

Interest on F’s capital= 30,000x2.5/100=Rs 750

Audience Question : 5.State all the provisions of Partnership

Act,1932 when partnership deed is silent in respect of

● Partner’s salary/commission,● Interest on capital,

● Interest on drawings,● Interest on loan,

● Profit/loss

Provisions when the partnership deed is silent .

1.No salary/commissions will be given to partners.

2.Interest on partner’s loan will be provided at 6%p.a.

3. No Interest on Drawings will be charged.

4.Profit/losses would be shared equally.

5.No Interest on capital to be allowed.

Answer : 5

Question : 6.

If Rs. 2000 per quarter is withdrawn by a partner at the end of each quarter.Calculate the interest on drawings when rate is 6% p.a.

Answer: 6.

2000 X 4 X 4.5 X 6 = Rs. 180

12 100

Question : 7.

If Rs. 4000 is withdrawn on the first day of every month, calculate interest on drawings if rate is 2% p.a.

4000 X 12 X 2 X 6.5 = Rs. 520

100 12

Answer: 7.

Question : 8.

If Rs. 10,000 is withdrawn on the first day for six months ended 30.9.2016, calculate interest on drawings at the rate of 5% p.a. (Fin. Year 1 Apr 2016 -31 Mar 2017)

10000 X 6 X5/100 X 3.5/12 = Rs 875

Answer: 8.

Question : 9.

If Rs. 5000 is withdrawn every month in a year and rate of interest on drawings is 4% p.a. Calculate interest on drawings.

5000 X 12 X 4 X 6 = Rs. 1200

100 12

Answer: 9.

Audience Question : 10.If a fixed amount is withdrawn

on the(a) First day of every month

(b) 15th day of every month (c) Last day of every month For what period, the interest

on total drawings will be calculated?

Answer: 10.

(a) 6.5 months(b) 6 months (c) 5.5 months

Question : 11.

Ravi and Mohan were partners in a firm sharing profits in the ratio of 7:5. The profit of the firm was Rs. 1,20,000 which was wrongly distributed equally. Give the adjustment entry .

Answer: 11Date Particulars

 LF  

Dr  

Cr  

  Mohan’s capital A/C Dr To Ravi’s capital A/C(Being profit wrongly distributed now rectified.)

 10,000   10,000

Question : 12.A,B and C are partners sharing profit in the ratio of 3:2:1. Profit of the firm Rs. 60,000 is already distributed among the partners in the ratio 2:2:1. Give the Adjustment entry to rectify the situation.

Answer: 12

Date Particulars

 LF  

Dr  

Cr  

  B’s capital A/C DrC’s capital A/C Dr To A’s capital A/C (Being profit wrongly distributed now rectified)

  4,000 2,000

 

6,000

Question : 13.

X,Y and Z are partners sharing profits in the ratio of 4:3:2.Goodwill of the firm is valued at Rs. 36,000. With effect from 1.4.2016 ,they agreed to share future profit equally. Give Journal entry .

Answer: 13

Date Particulars  

LF  

Dr  

Cr  

  Z’s capital A/C Dr To X’s capital A/C (Being adjustment entry passed)

 4,000

 

4,000

Sacrificing RatioX=4/9 - ⅓ = 1/9Y=3/9 - ⅓ = 0Z =2/9-⅓= -1/9 (gain)

Question : 14.X and Y are partners sharing profits and losses in the ratio of 2:1. They admit Z into partnership with ¼ th share in profit which he acquires equally from X and Y. Z brings in Rs.1,65,000 as capital and Rs. 30,000 as goodwill in cash. Pass the necessary Journal entry

Answer: 14Date Particulars

 LF  

Dr  

Cr  

  Bank A/C Dr To Z’s capital A/C To premium for goodwill A/C(Being premium & capital brought in by new partner on admission)

Premium for goodwill A/C Dr To X’s capital A/C To Y’s capital A/C(Being amount of premium distributed among sacrificing partners in S.R ratio 1:1)

 1,95,000

30,000

 

1,65,000 30,000

15000 15000

Audience Question : 15.

P and Q are partners sharing profits in the ratio of 7:5.They admit R into partnership for ¼ th Share. P and Q decide to sacrifice equally for the new partner.What will be the sacrificing ratio?

Answer: 15

SACRIFICING RATIO 1:1

Question : 16.

Give the Journal entry to distribute “Workmen Compensation Reserve”of Rs 70000 at the time of retirement

of Neeti when there is a claim of Rs 25000 against it. The firm has three partners Naveen, Neeti and Rajat.

Date Particulars  

LF  

Dr  

Cr  

  Workmen Compensation Reserve A/c Dr To Liability for workmen Compensation claim To Naveen’s Capital A/C To Neeti’s Capital A/c To Rajat’s Capital A/C(Transfer of balance in Workmen Compensation Reserve in equal ratio) 

70000  

  

25000150001500015000  

Answer: 16

Question: 17Guru Ltd. Invited applications 5,00,000

equity shares of Rs. 10 each at a premium of Rs. 5 per share. Because of favourable market conditions, the issue was over subscribed and applications for 15,00,000 shares were received.Suggest the alternatives available to Board of Directors for allotment of shares?

Answer: 17Alternative available to the Board of

Directors are:1)Excess applications may be rejected and remaining applications were alloted full.2) Shares may be allotted to all the applications on pro-rata basis.3) Some of the applications may be rejected and others may be allotted on pro –rata basis

Question : 18.

State with reason whether the change in profit sharing ratio amounts to dissolution of Partnership .

Answer: 18

Yes, Change in profit sharing ratio amounts to dissolution of partnership because existing agreement amongst the partners comes to an end and a new agreement comes into existence.

Question : 19.

What Journal entry will be passed when the firm pays realisation expenses of Rs. 20,000 on behalf of X, a partner who has to bear the expenses?

Date Particulars  

LF  

Dr  

Cr  

 

X’s Capital A/c Dr To Bank A/c  (Being realisation expenses paid by firm on behalf of X)

 

20,000  

  

20000

Answer: 19

Question : 20.

Can Securities Premium Reserve be used as Working Capital?

Give reason .

Answer: 20

No ,Securities Premium Reserve cannot be used as working Capital. It can be used only for those purposes which are specially mentioned as per Section 52 of Companies Act 2013.

Question : 21.

The value of furniture given in the old Balance Sheet was Rs. 66,000 which was overvalued by 10%.What is the effect of the transaction in Revaluation Account.

Answer: 21

Furniture is to be shown on debit side of Revaluation Account with Rs 6000.

66000 X 10/110 = Rs 6000

Question : 22.

When a creditor who owed us Rs. 1,50,000 takes over an asset of Rs. 1,20,000 in full settlement . What Journal entry shall be passed?

Answer: 22

No Entry will be passed

Question : 23.

A,B and C are partners sharing in the ratio of 3:2:1. C died and his share of profit in the firm till the date of death was Rs.15,000. What Journal Entry shall be passed?

Answer: 23

Date Particulars  

LF  

Dr  

Cr  

 

Profit and Loss suspense A/c Dr To C’s capital A/c  (Being C’s share of profit transferred to P&L Suspense)

 

15,000  

  

15,000

Question : 24.

At what rate , interest is payable on the amount remaining unpaid to the executor of deceased partner.

Answer: 24

6% p.a. since it’s a partner’s loan

Question : 25.

Do you think that Calls in Advance is a part of Share Capital?

Answer: 25

No, Calls in Advance is not a part of Company’s Share Capital and no dividend is payable on such amount.

Question : 26.

X , Y and Z are partners sharing profits in the ratio of 3:2:1. Z retires and surrenders 2/3rd of his share in favour of Y and remaining to X. Calculate new profit sharing ratio.

Answer : 26

Z provides his share to X = 1/3 Of 1/6 = 1/18

X share in future will be = 3/6+ 1/18 = 9+1/18= 10/18

Z provides his share to Y= 2/3 of 1/6 =2/18

Y share in future will be = 2/6+ 2/18 = 6+2/18= 8/18

New ratio of X and Y = 10:8= 5:4

Question : 27.

A Co. forfeited 240 shares of Rs. 10 each issued to Rajat at a premium of 20%. He paid only application money but not allotment and calls. His shares were forfeited .Application money was Rs. 4. These shares were reissued at Rs.11. Pass a Journal entry relating to forfeiture of 240 shares.

Answer : 27Date Particulars

 LF  

Dr  

Cr  

  Equity share capital A/C DrSecurity premium A/C Dr To Equity share forfeiture A/C To Calls in Arrear A/C(Being 240 shares forfeited due to non payment of allotment & call money)

 

2400 480 

  

9601920

Question : 28.

Sundram Ltd. purchased furniture for Rs. 300,000 from Ravindram Ltd. & it was paid by issue of equity shares of Rs. 10 each at a premium of Rs 2 per share. Find out Number of shares to be issued to Ravindram.

Number of equity shares to be issued = 300000/12 = 25000 shares

Answer : 28

Question : 29.Sona Ltd. issued 15000 shares of Rs. 10 each . Payment on these shares is to be made as : application 4 , allotment 3 and final call Rs. 3.● Rakesh to whom 1000 shares were

allotted paid the full amount.● Mohan to whom 100 shares were

allotted failed to pay allotment money.

Calculate how much amount the Sona ltd. will receive at the time of allotment?

Answer : 29.

Amount due on allotment = 15000x3 = 45000Calls in advance = 1000x3 = 3000Total = 48000 Calls in arrear = 100x3 = (300)Amount to be received on allotment = Rs 47700

Question : 30.

Rohit Ltd. purchased assets from Rohan & Co. for Rs. 350000. A sum of Rs. 75000 was paid by means of bank draft and for the balance due Rohit Ltd. issued equity shares of Rs. 10 each at a premium of 10%. Calculate the number of shares to be issued.

Question:30

Number of equity shares to be issued = 2,75,000/11

= 25000 shares

Question : 31.

What will be Journal entry for goodwill at the time of death of a partner ?

Answer : 31.

Date Particulars  

LF  

Dr  

Cr  

 

Remaining partner’s Capital A/C Dr To Deceased partner’s capital A/C

(Being deceased partner’s amount of goodwill adjusted among remaining partners in gaining ratio)

 

………. 

……………

Question : 32.

P,Q and R are partners sharing profit in the ratio of 7:2:1. P retires and the new profit sharing ratio between Q and R is 2:1. State the gaining ratio.

Answer : 32.

P Q R

OLD RATIO

NEW RATIO

7 2

2 1

1

X 3

6 3Gaining ratio 4 2 2:1

Question : 33.

B Ltd. forfeited 500 shares of Rs. 10 each fully called up for non- payment of final call of Rs. 2 per share and re-issued to Sunil as fully paid for Rs. 10 Per share.What amount will be transferred to capital reserve.

Answer : 33.

Called up capital 500 X 10 = 5000Calls in arrear ( Final Call) = (1000) ( 500 X 2 )Amount of Share forfeiture = 4000

Shares re- issued at Rs 10 No, forfeiture amount will be used in re-issue

Capital reserve = Rs 4000

Question : 34.

India Ltd. purchased building for Rs. 10,00,000 from Gupta Ltd. 10% of the payable amount was paid by a cheque drawn in favour of Gupta Ltd. The balance was paid by issue of shares of Rs. 100 each.Journalise

Date Particulars  

LF  

Dr  

Cr  

  Building account Dr To Gupta Ltd. To Bank A/C(Being assets purchased )

Gupta Ltd. Dr To Equity Share Capital A/C (Being 9000 shares issued to vendor )

  10,00,000

9.00,000

 9,00,0001,00,000

9,00,000

Answer : 34.

Audience Question :35

What Journal entry would be passed

on dissolution of the firm when an

unrecorded asset realised Rs 25000.

JOURNAL

Audience Answer 35:

Date Particulars  

LF  

Dr  

Cr  

  Bank Dr To Realisation   (Being the realisation of an unrecorded asset)

 

25,000  

  

25,000