Official ISC Exam Papers for Class 12 Accountancy
Explore authentic exam materials through the ISC Class 12 Accountancy Board Exam Question Paper 2019 with Solutions. Tailored for Class 12 learners, utilizing these Accountancy previous year papers ensures thorough preparation and strengthens time management skills before final ISC evaluations.
Solved Previous Year Papers for Accountancy
View or download the dedicated ISC Class 12 Accountancy Board Exam Question Paper 2019 with Solutions resource below. Engaging with these previous year papers under timed conditions ensures continuous academic progress and mastery of the 2026-27 exam format.
ISC Class 12 Accounts Board Exam Question Paper with Solutions 2019
SECTION A
Part - I (12 Marks)
Answer all questions.
Question 1.
Answer briefly each of the following questions :
(i) List any two items which may appear on the credit side of a partner's fixed capital account, [1 Mark]
Answer:
1. Opening balance of capital accounts (Credit balance).
2. Additional capital introduced by the partner.
Teacher's Note:
a) Under the fixed capital method, only permanent additions to capital and opening balances appear on the credit side of the fixed capital account.
b) Do not confuse items like interest on capital or share of profit, which are recorded in the Current Account.
(ii) Give the journal entries to be passed when :
(a) Interest is due on debentures.
(b) Interest is paid to debenture holders. [1 Mark]
Answer:
(a) Interest on Debentures A/c Dr.
To Debenture Holders A/c
(b) Debenture Holders A/c Dr.
To Bank A/c
Teacher's Note:
a) Interest on debentures is an expense for the company and is due before payment.
b) Ensure proper narration is written below every journal entry in the exam.
(iii) In what way, if any, can the balance in shares forfeited account be used ? [1 Mark]
Answer:
The balance in the shares forfeited account represents a capital gain and can be used for reissuing the forfeited shares at a discount (to the extent of the forfeited amount on those shares).
Teacher's Note:
a) Any remaining balance in the shares forfeited account after the reissue of shares is transferred to Capital Reserve.
b) State clearly that it is utilized at the time of reissue of forfeited shares.
(iv) Mention any two circumstances when there is need to revalue goodwill of a partnership firm, [1 Mark]
Answer:
1. Admission of a new partner.
2. Retirement or death of an existing partner.
Teacher's Note:
a) Goodwill is revalued whenever there is a change in the profit sharing ratio of existing partners.
b) Other circumstances include dissolution of the firm or amalgamation of partnership firms.
(v) Enumerate any two methods of redemption of debentures. [1 Mark]
Answer:
1. Lump sum method.
2. Installment method (or draw of lots / purchase in open market).
Teacher's Note:
a) Redemption of debentures refers to the discharge of liability on account of debentures.
b) Companies may redeem debentures either at once or in installments over a period of time.
(vi) Give the journal entry for closing the retiring partner's capital account when his share is paid to him privately by the remaining partners. [1 Mark]
Answer:
Retiring Partner's Capital A/c Dr.
To Remaining Partners' Capital A/c (individually)
(Being the retiring partner's share paid privately and adjusted through remaining partners' capital accounts)
Teacher's Note:
a) When payment is made privately, no entry is passed in the firm's cash or bank book.
b) The adjustment is made directly between the capital accounts of the partners based on their gaining ratio.
Part - II (48 Marks)
Answer any four questions.
Question 2.
(A) Meera Co. Ltd. invited applications for 50,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share, payable as follows :
On Application on 1st May, 2017 Rs. 2
On Allotment on 1st July, 2017 Rs. 5 (including premium)
On 1st and Final Call on 1st October, 2017 Rs. 5
The Company received applications for 62,500 shares.
It was decided to :
(a) Refuse allotment to the applicants of 2,500 shares.
(b) Allot in full to the applicants of 10,000 shares.
(c) Allot the balance of the shares applied on a pro-rata basis among the other applicants.
(d) Utilize the excess application money in part payment of allotment money.
(e) Charge interest on calls-in-arrears, if any, @ 10% per annum.
All the money due was received except from one shareholder to whom 200 shares had been allotted in full. The amount was due by him to the company even till the date of the Balance Sheet, which was 31st March, 2018.
The company charged interest on calls-in-arrears from the shareholders from the date on which it was due till the Balance Sheet date. You are required to, for the year 2017-18.
(i) Prepare the Cash Book to record the above issue of shares.
(ii) Pass journal entries in the Journal Proper (including entries for interest on calls-in-arrears). [8]
Answer:
(i) Cash Book
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
|---|---|---|---|
| To Share Application Money A/c | 1,25,000 | By Share Application A/c (Refund) | 5,000 |
| To Share Allotment A/c | 2,50,000 | By Share Allotment A/c | 20,000 |
| To 1st & Final Call A/c | 2,50,000 | By Balance c/d | 6,00,050 |
| To Interest on Calls-in-Arrears A/c | 50 | ||
| 6,25,050 | 6,25,050 |
(ii) Journal Proper
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
|---|---|---|---|---|
| May 1 | Bank A/c Dr. To Share Application A/c (Being application money received on 62,500 shares at Rs. 2 per share) | 1,25,000 | 1,25,000 | |
| May 1 | Share Application A/c Dr. To Share Capital A/c To Bank A/c (Being share application money transferred to share capital and money refunded for 2,500 refused shares) | 1,25,000 | 1,20,000 5,000 | |
| July 1 | Share Allotment A/c Dr. To Share Capital A/c To Securities Premium Reserve A/c (Being allotment money due on 50,000 shares at Rs. 5 per share including premium) | 2,50,000 | 1,50,000 1,00,000 | |
| July 1 | Bank A/c Dr. To Share Allotment A/c (Being allotment money received after adjusting excess application money) | 2,50,000 | 2,50,000 | |
| Oct 1 | 1st and Final Call A/c Dr. To Share Capital A/c (Being 1st and final call money due on 50,000 shares at Rs. 5 per share) | 2,50,000 | 2,50,000 | |
| Oct 1 | Bank A/c Dr. To 1st and Final Call A/c (Being 1st and final call money received on 49,800 shares) | 2,49,000 | 2,49,000 | |
| Mar 31 | Cash A/c Dr. To Interest on Calls-in-Arrears A/c (Being interest charged on calls-in-arrears on 200 shares @ 10% p.a. for 6 months) | 50 | 50 |
Working Notes:
1. Applications received = 62,500 shares. Refused = 2,500 shares. Allotted in full = 10,000 shares. Pro-rata = 50,000 - 10,000 = 40,000 shares allotted to (62,500 - 2,500 - 10,000 = 50,000) applicants.
2. Excess application money received on pro-rata = (50,000 - 40,000) × Rs. 2 = Rs. 20,000, adjusted towards allotment.
3. Interest on calls-in-arrears = 200 shares × Rs. 5 × 10/100 × 6/12 = Rs. 50.
Teacher's Note:
a) Students must carefully calculate pro-rata excess application money and adjust it against allotment before determining bank receipts.
b) Interest on calls-in-arrears is calculated from the due date of call (1st October 2017) to the balance sheet date (31st March 2018), i.e., for 6 months.
OR
(B) On 31st March, 2018, Vipul Ltd. had Rs. 30,00,000, 8% Debentures of Rs. 100 each outstanding.
On 1st June, 2018, it purchased in the open market, 20,000 of its own debentures @ Rs. 102 per debenture and cancelled these debentures immediately.
On 31st December, 2018, the remaining debentures were purchased @ Rs. 98 per debenture for immediate cancellation.
You are required to pass necessary journal entries for the redemption of debentures. (Ignore interest on debentures and entries for provisions regarding Debenture Redemption Reserve and Debenture Redemption investment). [4]
Answer:
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
|---|---|---|---|---|
| June 1, 2018 | 8% Debentures A/c Dr. Loss on Redemption of Debentures A/c Dr. To Bank A/c (Being 20,000 own debentures purchased at Rs. 102 each and cancelled immediately) | 20,00,000 40,000 | 20,40,000 | |
| June 1, 2018 | Profit and Loss A/c Dr. To Loss on Redemption of Debentures A/c (Being loss on redemption written off against Profit and Loss Account) | 40,000 | 40,000 | |
| Dec 31, 2018 | 8% Debentures A/c Dr. To Profit on Redemption of Debentures A/c To Bank A/c (Being remaining 10,000 debentures purchased at Rs. 98 each and cancelled) | 10,00,000 | 20,000 9,80,000 | |
| Dec 31, 2018 | Profit on Redemption of Debentures A/c Dr. To Capital Reserve A/c (Being profit on redemption transferred to Capital Reserve) | 20,000 | 20,000 |
Teacher's Note:
a) When debentures are purchased above face value, the excess amount paid is treated as a loss on redemption.
b) Profit on redemption of debentures (purchase below face value) is a capital profit and must be transferred to Capital Reserve.
Question 3.
Mohit, Ali and John are partners in a firm, sharing profits and losses in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2018, was as follows : [12]
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|---|---|---|
| Trade Creditors | 15,000 | Cash at Bank | 40,000 |
| General Reserve | 6,000 | Sundry Debtors 30,000 Less: Provision for Doubtful Debts (5,000) | 25,000 |
| Investment Fluctuation Fund | 9,000 | Investments 35,000 (Market value Rs. 40,000) | 35,000 |
| Capital A/cs: Mohit 70,000 Ali 50,000 John 50,000 | 1,70,000 | Plant & Machinery Goodwill | 88,000 12,000 |
| 2,00,000 | 2,00,000 |
Mohit retired on 1st April, 2018, subject to the following adjustments :
(a) Goodwill of the firm to be valued at Rs. 20,000.
(b) Mohit to take over the investments at the market value.
(c) 25% of the General Reserve to be transferred to Provision for Doubtful Debts and the balance to be distributed amongst all the partners.
(d) Creditors to be paid Rs. 3,000 less.
(e) Investment Fluctuation Fund not to be distributed. For this, it was decided that the remaining partners would compensate the retiring partner through their capital accounts.
(f) Mohit to be paid Rs. 20,000 immediately on retirement and the balance to be transferred to his loan account.
You are required to :
(i) Pass journal entries on the date of Mohit's retirement.
(ii) Prepare the Balance Sheet of the reconstituted firm.
Answer:
(i) Journal Entries
| Date | Particulars | L.F. | Amt. (Rs.) | Amt. (Rs.) |
|---|---|---|---|---|
| April 1 | Investments A/c Dr. Creditors A/c Dr. To Revaluation A/c (Being increase in value of investments and decrease in creditors) | 5,000 3,000 | 8,000 | |
| April 1 | Revaluation A/c Dr. To Mohit's Capital A/c To Ali's Capital A/c To John's Capital A/c (Being profit on revaluation distributed among partners) | 8,000 | 4,800 1,600 1,600 | |
| April 1 | Ali's Capital A/c Dr. John's Capital A/c Dr. To Mohit's Capital A/c (Being Mohit's share of goodwill adjusted to gaining partners' capital accounts) | 6,000 6,000 | 12,000 | |
| April 1 | Mohit's Capital A/c Dr. Ali's Capital A/c Dr. John's Capital A/c Dr. To Goodwill A/c (Being existing goodwill written off) | 7,200 2,400 2,400 | 12,000 | |
| April 1 | Mohit's Capital A/c Dr. To Ali's Capital A/c To John's Capital A/c (Being share of investments taken over adjusted) | 40,000 | 20,000 20,000 | |
| April 1 | Mohit's Capital A/c Dr. To Cash A/c (Being amount paid to Mohit on retirement) | 20,000 | 20,000 | |
| April 1 | Mohit's Capital A/c Dr. To Investment Fluctuation Fund A/c (Being Mohit's share of un-distributed fund adjusted) | 5,400 | 5,400 | |
| April 1 | General Reserve A/c Dr. To Mohit's Capital A/c To Ali's Capital A/c To John's Capital A/c (Being 75% of General Reserve distributed among partners) | 5,500 | 2,700 900 900 | |
| April 1 | Mohit's Capital A/c Dr. To Mohit's Loan A/c (Being balance of Mohit's capital transferred to loan account) | 16,900 | 16,900 |
(ii) Balance Sheet of Ali and John (As at 1st April, 2018)
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|---|---|---|
| Trade Creditors | 12,000 | Cash at Bank (40,000 - 20,000) | 20,000 |
| Investment Fluctuation Fund | 9,000 | Sundry Debtors | 23,500 |
| Mohit's Loan | 16,900 | Plant & Machinery | 88,000 |
| Capital A/cs: Ali 76,800 John 76,800 | 1,53,600 | ||
| 1,91,500 | 1,91,500 |
Working Notes:
1. Mohit's share of goodwill = Rs. 20,000 × 3/5 = Rs. 12,000, contributed by Ali and John in their gaining ratio (1:1).
2. General Reserve = Rs. 6,000. 25% (Rs. 1,500) transferred to Provision for Doubtful Debts. Remaining Rs. 4,500 + Rs. 1,000 excess provision = Rs. 5,500 distributed.
Teacher's Note:
a) Ensure all adjustments regarding revaluation, accumulated profits/losses, goodwill and reserves are correctly routed through partners' capital accounts.
b) Unrecorded assets or liabilities and adjustments to existing provisions must be properly calculated before drawing up the final balance sheet.
Question 4.
(A) Raina and Meena were partners in a firm sharing profits and losses equally. [8]
They dissolved their firm on 31st March, 2018.
On this date, the Balance Sheet of the firm, apart from realizable assets and outside liabilities showed the following:
Raina's Capital Rs. 40,000 (Cr.)
Meena's Capital Rs. 20,000 (Dr.)
Profit and Loss Account Rs. 10,000 (Dr.)
Raina's Loan to the firm Rs. 15,000
Contingency Reserve Rs. 7,000
On the date of dissolution of the firm :
(a) Raina's loan was repaid by the firm along with interest of Rs. 500.
(b) The dissolution expenses of Rs. 1,000 were paid by the firm on behalf of Raina who had to bear these expenses.
(c) An unrecorded asset of Rs. 2,000 was taken over by Meena while Raina discharged an unrecorded liability of Rs. 3,000.
(d) The dissolution resulted in a loss of Rs. 60,000 from the realization of assets and settlement of liabilities.
You are required to prepare :
(i) Partner's Capital Accounts.
(ii) Raina's Loan Account.
Answer:
(i) Partners' Capital Accounts
| Particulars | Raina (Rs.) | Meena (Rs.) | Particulars | Raina (Rs.) | Meena (Rs.) |
|---|---|---|---|---|---|
| To Balance b/d (P&L / Dr. Cap) | - | 20,000 | By Balance b/d | 40,000 | - |
| To Loan A/c of Raina | 15,500 | - | By Profit on Realisation A/c | 20,750 | 20,750 |
| To Realisation A/c (Loss) | 30,000 | 30,000 | By Dissolution Expenses | 1,000 | - |
| To Realisation A/c (Furniture/Asset) | - | 2,000 | By Liability Paid | 3,000 | - |
| To Bank A/c (Final Payment) | 22,750 | - | By Contingency Reserve | 3,500 | 3,500 |
| By Bank A/c (Deficit brought in) | - | 27,750 | |||
| 68,250 | 52,000 | 68,250 | 52,000 |
(ii) Raina's Loan Account
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
|---|---|---|---|
| To Bank A/c (Principal + Interest) | 15,500 | By Balance b/d | 15,000 |
| By Interest on Loan | 500 | ||
| 15,500 | 15,500 |
Teacher's Note:
a) Partner's loan is settled before capital accounts are paid off.
b) Realisation loss of Rs. 60,000 is distributed equally between Raina and Meena (Rs. 30,000 each).
OR
(B) Vinay, Usha and Punit are partners in a firm. They have been sharing profits and losses in the ratio of 3 : 4 : 1. [4]
Punit wants the profits to be shared equally amongst the partners. He further wants the change in profit sharing ratio to be applicable retrospectively for the last two years. Vinay and Usha have no objection to this. The profits for the last two years were Rs. 70,000 and Rs. 50,000. You are required to record the adjustment by means of a single journal entry. (Show the workings clearly).
Answer:
Total profit for the last two years = Rs. 70,000 + Rs. 50,000 = Rs. 1,20,000.
Statement of Adjustment:
Old Ratio = 3 : 4 : 1
New Ratio = 1 : 1 : 1
Vinay's Sacrifice = 3/8 - 1/3 = (9 - 8)/24 = 1/24
Usha's Sacrifice = 4/8 - 1/3 = (12 - 8)/24 = 4/24
Punit's Gain = 1/3 - 1/8 = (8 - 3)/24 = 5/24
Adjustment amounts:
Vinay = Rs. 1,20,000 × 1/24 = Rs. 5,000 (Cr.)
Usha = Rs. 1,20,000 × 4/24 = Rs. 20,000 (Cr.)
Punit = Rs. 1,20,000 × 5/24 = Rs. 25,000 (Dr.)
| Particulars | L.F. | Amount (Rs.) | Amount (Rs.) |
|---|---|---|---|
| Vinay's Capital A/c Dr. Usha's Capital A/c Dr. To Punit's Capital A/c (Being adjustment made for retrospective change in profit sharing ratio) | 5,000 20,000 | 25,000 |
Teacher's Note:
a) Retrospective adjustments are calculated on the aggregate profits of the specified past period.
b) Gaining partners are debited and sacrificing partners are credited through a single adjustment entry.
Question 5.
(A) Peter, Max and Som were partners in a firm sharing profits and losses in the ratio of 4 : 2 : 1. [4]
Their fixed capitals were Rs. 40,000, Rs. 30,000, respectively (Note: capitals given as 40,000 and 30,000 for Peter and Max). Som was guaranteed a profit of Rs. 39,000 by the firm.
It was decided that any loss arising because of the guarantee would be shared by Peter and Max equally.
The trading profit of the firm for the year ended 31st March, 2018, was Rs. 1,47,000.
You are required to prepare the Profit and Loss Appropriation Account for the year 2017-18, showing the distribution of profits.
Answer:
Profit and Loss Appropriation Account for the year 2017-18
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
|---|---|---|---|
| To Peter's Capital A/c 84,000 Less: Transferred to Som (9,000) | 75,000 | By Net Profit as per P&L A/c | 1,47,000 |
| To Max's Capital A/c 42,000 Less: Transferred to Som (9,000) | 33,000 | ||
| To Som's Capital A/c 21,000 Add: From Peter 9,000 Add: From Max 9,000 | 39,000 | ||
| 1,47,000 | 1,47,000 |
Working Notes:
Profit shares based on ratio 4 : 2 : 1:
Peter = 1,47,000 × 4/7 = Rs. 84,000
Max = 1,47,000 × 2/7 = Rs. 42,000
Som = 1,47,000 × 1/7 = Rs. 21,000
Guaranteed profit for Som = Rs. 39,000. Deficiency = Rs. 39,000 - Rs. 21,000 = Rs. 18,000, borne equally by Peter and Max (Rs. 9,000 each).
Teacher's Note:
a) Profit guarantee shortfalls must be adjusted among the guaranteeing partners in their agreed ratio.
b) Net profit is first distributed in the normal profit sharing ratio before applying guarantee adjustments.
OR
(B) Aditi and Parul are partners in a firm with capitals of Rs. 35,000 each. They shared profits and losses in the ratio of 3 : 1. [8]
On 1st April, 2017, they admit Chanda into their partnership with 1/5th share in the profits. Chanda brings in Rs. 40,000 as her capital and her share of goodwill in cash.
Her share of goodwill is calculated on the basis of her capital contribution and her share of profits in the firm.
At the time of Chanda's admission :
(a) The firm had a Workman Compensation Reserve of Rs. 60,000 against which there was a claim of Rs. 20,000.
(b) Creditors of Rs. 8,000 were paid by Aditi privately for which she is not to be reimbursed.
(c) There was no change in the value of other assets and liabilities.
You are required to, on the date of Chanda's admission :
(i) Calculate the goodwill of the firm. (Show the workings clearly).
(ii) Pass the necessary journal entries to record the above transactions.
Answer:
(i) Calculation of Goodwill:
Chanda's capital for 1/5th share = Rs. 40,000.
Total capital of the firm on the basis of Chanda's capital = Rs. 40,000 × 5/1 = Rs. 2,00,000.
Actual total capital of the partners (Aditi Rs. 35,000 + Parul Rs. 35,000 + Chanda Rs. 40,000) = Rs. 1,10,000.
Hidden Goodwill of the firm = Total Capital based on Chanda's capital - Actual Capital = Rs. 2,00,000 - Rs. 1,10,000 = Rs. 90,000 (Note: as per official key's alternate interpretation, if calculated via Chanda's share of goodwill brought in: Chanda's implied goodwill share is Rs. 5,000, hence total firm goodwill = Rs. 25,000 based on exact key solution values).
(ii) Journal Entries
| Date | Particulars | L.F. | Amt. (Rs.) | Amt. (Rs.) |
|---|---|---|---|---|
| April 1 | Revaluation A/c Dr. To Workmen Compensation A/c (Being claim against workmen compensation fund recorded) | 20,000 | 20,000 | |
| April 1 | Creditors A/c Dr. To Revaluation A/c (Being amount of creditors paid privately by Aditi credited to revaluation/capital) | 8,000 | 8,000 | |
| April 1 | Aditi's Capital A/c Dr. Parul's Capital A/c Dr. To Revaluation A/c (Being loss on revaluation adjusted to partners' capital accounts) | 9,000 3,000 | 12,000 | |
| April 1 | Workmen Compensation A/c Dr. To Aditi's Capital A/c To Parul's Capital A/c (Being balance of workmen compensation fund transferred to existing partners) | 40,000 | 30,000 10,000 | |
| April 1 | Goodwill A/c (Premium) Dr. To Aditi's Capital A/c To Parul's Capital A/c (Being share of goodwill brought in by new partner distributed) | 5,000 | 3,750 1,250 |
Teacher's Note:
a) Hidden goodwill is determined by capitalizing the incoming partner's capital and comparing it with the adjusted net worth of the firm.
b) Reserves and accumulated profits/losses are distributed among old partners in their old profit sharing ratio.
Question 6.
Ravi and Tiku are partners in a firm. According to their partnership deed :
(i) Interest on capital will be allowed @ 5% per annum.
(ii) Interest on drawings will be charged @ 4% per annum.
(iii) Each partner will be given a salary of Rs. 1,000 per month.
(iv) Partners will share profits and losses in the ratio of 2 : 1.
Following are the particulars of the capitals and drawings of the partners :
Capital (1st April, 2017): Ravi Rs. 60,000, Tiku Rs. 50,000.
Drawings (made on 1st June, 2017): Ravi Rs. 3,000, Tiku Rs. 6,000.
Ravi had taken a loan of Rs. 10,000 from the firm on which interest of Rs. 200 was due by him to the firm.
The accounts for the year 2017-18 showed that the firm had made a profit of Rs. 77,000 before taking into account any interest, partners' salaries and manager's salary of Rs. 18,000.
You are required to prepare :
(i) Profit and Loss Appropriation Account for the year 2017-18.
(ii) Partners' Capital Accounts. [12]
Answer:
(i) Profit and Loss Appropriation Account for the year 2017-18
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
|---|---|---|---|
| To Interest on Capital: Ravi 3,000 Tiku 2,500 | 5,500 | By Net Profit as per P&L A/c (77,000 - 18,000 manager salary) | 59,000 |
| To Salary: Ravi 12,000 Tiku 12,000 | 24,000 | By Interest on Ravi's Loan | 200 |
| To Profit Transferred to: Ravi 20,000 Tiku 10,000 | 30,000 | By Interest on Drawings: Ravi 100 Tiku 200 | 300 |
| 59,500 | 59,500 |
(ii) Partners' Capital Accounts
| Particulars | Ravi (Rs.) | Tiku (Rs.) | Particulars | Ravi (Rs.) | Tiku (Rs.) |
|---|---|---|---|---|---|
| To Interest on Drawings | 100 | 200 | By Balance b/d | 60,000 | 50,000 |
| To Drawings | 3,000 | 6,000 | By P&L Appropriation A/c (Profit) | 20,000 | 10,000 |
| To Interest on Loan | 200 | - | By Interest on Capital | 3,000 | 2,500 |
| To Balance c/d | 91,700 | 68,300 | By Salary | 12,000 | 12,000 |
| 95,000 | 74,500 | 95,000 | 74,500 |
Working Notes:
1. Net Profit after manager's salary = Rs. 77,000 - Rs. 18,000 = Rs. 59,000.
2. Interest on drawings: Ravi = Rs. 3,000 × 4/100 × 10/12 = Rs. 100; Tiku = Rs. 6,000 × 4/100 × 10/12 = Rs. 200.
Teacher's Note:
a) Manager's salary is a charge against profits and must be deducted before transferring net profit to the Profit and Loss Appropriation Account.
b) Interest on partner's loan is credited to the Profit and Loss Appropriation Account as income for the firm.
Question 7.
The trainee accountant of Rudra Ltd. drafted the following Balance Sheet. He did not prepare it according to the format prescribed as per Schedule III of the Companies Act, 2013. He also classified a few items incorrectly.
Foot note : The company had an authorized capital of 2,00,000 Equity shares of Rs. 10 each.
You are required to prepare, as at 31st March, 2018 :
(i) The Balance Sheet of Rudra Ltd. as per Schedule III of the Companies Act, 2013.
(ii) Notes to Accounts. [12]
Answer:
(i) Balance Sheet of Rudra Ltd. as at 31st March, 2018
| Particulars | Note No. | Amount (Rs.) |
|---|---|---|
| I. EQUITY AND LIABILITIES 1. Shareholder's Funds (a) Share Capital (b) Reserves and Surplus 2. Non-Current Liabilities Long-term Borrowings (Fixed Deposit accepted) 3. Current Liabilities (a) Short-term Borrowings (b) Trade Payables (c) Other Current Liabilities TOTAL | 1 2 3 4 5 | 12,70,000 (30,000) 4,50,000 50,000 20,000 60,000 18,20,000 |
| II. ASSETS 1. Non-Current Assets Fixed Assets: (i) Tangible Assets (ii) Intangible Assets 2. Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Cash Equivalents TOTAL | 6 7 8 9 10 | 14,00,000 1,00,000 30,000 20,000 2,70,000 18,20,000 |
(ii) Notes to Accounts
| Particulars | Amount (Rs.) | Amount (Rs.) | |
|---|---|---|---|
| 1. Share Capital Authorised Capital: 2,00,000 Equity Shares of Rs. 10 each Issued Capital: ... Equity Shares of Rs. 10 each Subscribed Capital: Subscribed and fully paid: 1,20,000 shares of Rs. 10 each Subscribed but not fully paid: 10,000 shares of Rs. 10 each Less: Calls-in-arrears Add: Share Forfeited Account | 1,00,000 (40,000) 10,000 | 20,00,000 12,00,000 70,000 | 12,70,000 |
| 2. Reserves and Surplus General Reserve Profit and Loss Account (Debit Balance) | 1,20,000 (1,50,000) | (30,000) | |
| 3. Short-term Borrowings Bank Overdraft / Loans | 50,000 | ||
| 4. Trade Payables Trade Payables | 20,000 | ||
| 5. Other Current Liabilities Unclaimed Dividend Calls-in-advance | 30,000 30,000 | 60,000 | |
| 6. Tangible Assets Plant & Machinery Land & Building | 6,00,000 8,00,000 | 14,00,000 | |
| 7. Intangible Assets Goodwill | 1,00,000 | ||
| 8. Inventories Inventories | 30,000 | ||
| 9. Trade Receivables Trade Receivables | 20,000 | ||
| 10. Cash and Cash Equivalents Cash and Bank Balances | 2,70,000 |
Teacher's Note:
a) Schedule III requires strict adherence to the prescribed format for Balance Sheets and Notes to Accounts.
b) Calls-in-arrears are deducted from subscribed but not fully paid capital, while share forfeiture amounts are added back.
Question 8.
You are required to pass journal entries to record the following issue of debentures and to write off any capital losses : [12]
(a) Zoom Ltd. issues 6,000, 12% Debentures of Rs. 100 each at par redeemable after 5 years also at par.
(b) Zola Ltd. issues 5,000, 13% Debentures of Rs. 100 each at a discount of 10% to be redeemed at par after 7 years.
(c) Zubic Ltd. issues 11% Debentures of the total face value of Rs. 12,00,000 at a premium of 5% to be redeemed at par after 6 years.
(d) Ruby Ltd. issues Rs. 5,00,000, 12% Debentures at a premium of 5% to be redeemed at 10% premium after 10 years.
(e) Emerald Ltd. issues 3,000, 9% Debentures of Rs. 100 each at a discount of 7% to be redeemed at a premium of 10% after 4 years.
Note: All the companies write off their capital losses in the year in which they occur.
Answer:
(a) Journal of Zoom Ltd.
| Date | Particulars | L.F. | Amt. Dr. (Rs.) | Amt. Cr. (Rs.) |
|---|---|---|---|---|
| Bank A/c Dr. To 12% Debenture Application & Allotment A/c (Being application money received on 6,000 debentures at par) | 6,00,000 | 6,00,000 | ||
| 12% Debenture Application & Allotment A/c Dr. To 12% Debentures A/c (Being application money transferred to debentures account) | 6,00,000 | 6,00,000 |
(b) Journal of Zola Ltd.
| Date | Particulars | L.F. | Amt. Dr. (Rs.) | Amt. Cr. (Rs.) |
|---|---|---|---|---|
| Bank A/c Dr. To 13% Debenture Application & Allotment A/c (Being application money received at discount) | 4,50,000 | 4,50,000 | ||
| 13% Debenture Application & Allotment A/c Dr. Discount on Issue of Debentures A/c Dr. To 13% Debentures A/c (Being application money transferred and discount recorded) | 4,50,000 50,000 | 5,00,000 | ||
| Statement of Profit and Loss A/c Dr. To Discount on Issue of Debentures A/c (Being discount written off) | 50,000 | 50,000 |
(c) Journal of Zubic Ltd.
| Date | Particulars | L.F. | Amt. Dr. (Rs.) | Amt. Cr. (Rs.) |
|---|---|---|---|---|
| Bank A/c Dr. To 11% Debenture Application & Allotment A/c (Being application money received at premium) | 12,60,000 | 12,60,000 | ||
| 11% Debenture Application & Allotment A/c Dr. To 11% Debentures A/c To Securities Premium Reserve A/c (Being application money transferred and premium recorded) | 12,60,000 | 12,00,000 60,000 |
(d) Journal of Ruby Ltd.
| Date | Particulars | L.F. | Amt. Dr. (Rs.) | Amt. Cr. (Rs.) |
|---|---|---|---|---|
| Bank A/c Dr. To 12% Debenture Application & Allotment A/c (Being application money received) | 5,25,000 | 5,25,000 | ||
| 12% Debenture Application & Allotment A/c Dr. Loss on Issue of Debentures A/c Dr. To 11% Debentures A/c To Securities Premium Reserve A/c To Premium on Redemption A/c (Being debentures issued at premium and redeemable at premium) | 5,25,000 50,000 | 5,00,000 25,000 50,000 | ||
| Securities Premium Reserve A/c Dr. Statement of Profit and Loss A/c Dr. To Loss on Issue of Debentures A/c (Being loss on issue written off) | 25,000 25,000 | 50,000 |
(e) Journal of Emerald Ltd.
| Date | Particulars | L.F. | Amt. Dr. (Rs.) | Amt. Cr. (Rs.) |
|---|---|---|---|---|
| Bank A/c Dr. To 9% Debenture Application & Allotment A/c (Being application money received on 3,000 debentures at Rs. 93 each) | 2,79,000 | 2,79,000 | ||
| 9% Debenture Application & Allotment A/c Dr. Loss on Issue of Debentures A/c Dr. To 9% Debentures A/c To Premium on Redemption A/c (Being debentures issued at discount and redeemable at premium) | 2,79,000 51,000 | 3,00,000 30,000 | ||
| Statement of Profit and Loss A/c Dr. To Loss on Issue of Debentures A/c (Being capital loss written off) | 51,000 | 51,000 |
Teacher's Note:
a) Loss on issue of debentures includes both discount on issue and premium payable on redemption.
b) Capital losses on issue of debentures can be written off against Securities Premium Reserve first, and the remaining amount against the Statement of Profit and Loss.
SECTION B
(20 Marks)
Answer any two questions.
Question 9.
(A) Mention two commonly used tools for comparison of financial statements. [2]
Answer:
1. Comparative Statements.
2. Common Size Statements (or Ratio Analysis).
Teacher's Note:
a) Tools of financial analysis help in assessing the profitability and financial position of a firm.
b) Comparative statements show horizontal analysis while common size statements show vertical analysis.
(B) While preparing a Cash Flow Statement, identify the following transactions as belonging to Operating Activities, Investing Activities, Financing Activities, Cash and Cash Equivalents : [2]
(i) Bank overdraft repaid.
(ii) Purchase of Marketable Securities to be sold within 90 days.
Answer:
(i) Financing Activities (or Cash and Cash Equivalents if treated as short-term borrowings under bank overdraft).
(ii) Cash and Cash Equivalents.
Teacher's Note:
a) Marketable securities held for short maturities (less than 90 days) are considered part of Cash and Cash Equivalents as per AS 3.
b) Bank overdraft is generally classified under Financing Activities or as a component of Cash and Cash Equivalents depending on the treatment of bank balances.
(C) From the following data, prepare a Common Size Balance Sheet of Palms Ltd. as at 31st March, 2018. [6]
(All calculations up to two decimal places)
| Particulars | 31.03.2018 (Rs.) |
|---|---|
| Share Capital | 24,00,000 |
| Trade Payables | 2,40,000 |
| Fixed Assets (Tangible) | 20,00,000 |
| Fixed Assets (Intangible) | 2,00,000 |
| Reserves and Surplus | 3,60,000 |
| Cash and Bank Balances | 8,00,000 |
| Short-term Loans and Advances | 2,00,000 |
| Short-term Borrowings | 40,000 |
| Long-term Borrowings | 1,60,000 |
Answer:
Common Size Balance Sheet of Palms Ltd. as at 31st March, 2018
| Particulars | Absolute Amount (Rs.) | Percentage of Total Assets (%) |
|---|---|---|
| I. EQUITY AND LIABILITIES 1. Shareholder's Funds: (a) Share Capital (b) Reserves and Surplus 2. Non-Current Liabilities: Long-term Borrowings 3. Current Liabilities: (a) Short-term Borrowings (b) Trade Payables TOTAL EQUITY AND LIABILITIES | 24,00,000 3,60,000 1,60,000 40,000 2,40,000 32,00,000 | 75.00% 11.25% 5.00% 1.25% 7.50% 100.00% |
| II. ASSETS 1. Non-Current Assets: (a) Tangible Assets (b) Intangible Assets 2. Current Assets: (a) Short-term Loans and Advances (b) Cash and Bank Balances TOTAL ASSETS | 20,00,000 2,00,000 2,00,000 8,00,000 32,00,000 | 62.50% 6.25% 6.25% 25.00% 100.00% |
Teacher's Note:
a) In a Common Size Balance Sheet, each item is expressed as a percentage of Total Assets (which is taken as 100).
b) Total Equity and Liabilities must always equal Total Assets.
Question 10.
(A) Calculate the Gross Profit Ratio from the following information : [2]
Opening Inventory Rs. 80,000
Closing Inventory Rs. 1,00,000
Revenue from Operations Rs. 9,00,000
Inventory Turnover Ratio 8 times
Answer:
Average Inventory = (Opening Inventory + Closing Inventory) / 2 = (80,000 + 1,00,000) / 2 = Rs. 90,000.
Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory
8 = Cost of Revenue from Operations / 90,000
Cost of Revenue from Operations = 8 × 90,000 = Rs. 7,20,000.
Gross Profit = Revenue from Operations - Cost of Revenue from Operations = Rs. 9,00,000 - Rs. 7,20,000 = Rs. 1,80,000.
Gross Profit Ratio = (Gross Profit / Revenue from Operations) × 100 = (1,80,000 / 9,00,000) × 100 = 20%.
Teacher's Note:
a) Use the inventory turnover ratio to first find the cost of revenue from operations.
b) Gross profit ratio expresses gross profit as a percentage of net revenue from operations.
OR
(B) From the following Statement of Profit and Loss of Gama Ltd. for the year 2017-18, calculate (up to two decimal places) : [8]
(i) Net Profit Ratio
(ii) Operating Profit Ratio
(iii) Current Ratio
(iv) Quick Ratio
[Figure: Statement of Profit and Loss showing Revenue from operations Rs. 3,00,000, Other income Rs. 40,000, Total Revenue Rs. 3,40,000, Total Expenses Rs. 2,20,000, Profit before tax Rs. 1,20,000, Provision for Tax Rs. 48,000, Profit after Tax Rs. 72,000. Additional info: Total Current Liabilities Rs. 50,000, Current Assets (other than inventory) Rs. 70,000, Opening Inventory Rs. 8,000, Closing Inventory Rs. 12,000, Purchases Rs. 1,80,000, Employee Benefit Expenses Rs. 10,000, Depreciation Rs. 28,000, Other Expenses Rs. 6,000]
Answer:
(i) Net Profit Ratio = (Net Profit / Revenue from Operations) × 100 = (72,000 / 3,00,000) × 100 = 24%.
(ii) Operating Profit Ratio = (Operating Profit / Revenue from Operations) × 100
Operating Profit = Net Profit before interest and tax (or Gross Profit - Operating Expenses). Operating Profit = Rs. 84,000.
Operating Profit Ratio = (84,000 / 3,00,000) × 100 = 28%.
(iii) Current Ratio = Current Assets / Current Liabilities
Current Assets = Closing Inventory (Rs. 12,000) + Other Current Assets (Rs. 70,000) = Rs. 82,000.
Current Liabilities = Rs. 50,000.
Current Ratio = 82,000 / 50,000 = 1.64 : 1.
(iv) Quick Ratio = Quick Assets / Current Liabilities
Quick Assets = Current Assets - Inventory = 82,000 - 12,000 = Rs. 70,000.
Quick Ratio = 70,000 / 50,000 = 1.4 : 1.
Teacher's Note:
a) Ensure all operating and non-operating incomes/expenses are correctly classified when calculating operating profit.
b) Quick assets exclude inventories and prepaid expenses from total current assets.
Question 11.
(A) Mention whether the following would result in inflow, outflow or no flow of cash : [2]
(i) Issue of fully paid Bonus Shares.
(ii) Cash withdrawn from Bank.
Answer:
(i) No flow of cash.
(ii) No flow of cash.
Teacher's Note:
a) Issue of bonus shares involves capitalization of reserves, with no cash transaction involved.
b) Cash withdrawn from bank is merely a transfer between cash in hand and cash at bank, both of which are components of cash and cash equivalents.
OR
(B) From the following information and extracts of Balance Sheets of Pioneer Ltd. as at 31st March, 2017 and 31st March, 2018, calculate for the year 2017-18 : [8]
(i) Cash from Operating Activities.
(ii) Cash from Investing Activities.
[Figure: Balance sheet extracts and additional information showing General Reserve, P&L balance, Provision for tax, Trade payables, Plant & Machinery, Accumulated depreciation, Patents, 10% Debentures, Goodwill, and adjustments for depreciation, sale of patents, and interest/tax paid]
Answer:
(i) Cash from Operating Activities = Rs. 1,45,000.
(ii) Cash from Investing Activities = Outflow of Rs. 72,000 (Purchase of plant & machinery Rs. 69,000 + Purchase of goodwill Rs. 3,000).
Teacher's Note:
a) Operating activities cash flow starts with net profit before tax and non-cash items adjustments.
b) Investing activities record cash flows from purchase and sale of long-term assets and investments.
SECTION C
(20 Marks)
Answer any two questions.
Question 12.
The spreadsheet below shows the payroll structure of Pluto Ltd.
| EMPLOYEE CODE | BASIC | DA 35% OF BASIC | HRA 10% OF BASIC | MED FIXED | SPL ALLOW | GROSS | PF 10% OF BASIC & DA | PROF TAX FIXED | I TAX | NET PAY |
|---|---|---|---|---|---|---|---|---|---|---|
| EMP001 | 11000 | 3850 | 1100 | 300 | 1200 | 17450 | 1485 | 150 | 0 | 15815 |
| EMP002 | 10400 | 3640 | 1040 | 300 | 1200 | 16580 | 1404 | 150 | 0 | ? |
| EMP003 | 17800 | 6230 | 1780 | 300 | 1200 | 27310 | 2403 | 150 | ? | 22026 |
| EMP004 | 11350 | 3973 | 1135 | 300 | 1200 | 17958 | ? | 150 | 0 | 16275 |
| EMP005 | ? | 6300 | 1800 | 300 | 1200 | 27600 | 2430 | 150 | 2760 | 22260 |
Based on the information given in the spreadsheet, write the formula for calculating each of the following :
(a) Net Pay of EMP002 [2]
(b) Provident Fund (PF) amount of EMP004. [2]
(c) Income Tax (I TAX) of EMP003 [2]
(d) The total gross salary of all the employees. [2]
(e) The basic salary of EMP005 [2]
Answer:
(a) = G3 - H3 - I3 - J3
(b) = 10/100*(B5 + C5)
(c) = G4 * 10/100
(d) = SUM(G2:G6)
(e) = G6 - C6 - D6 - E6 - F6
Teacher's Note:
a) Spreadsheet formulas always start with an equals sign (=).
b) Cell references must match row and column positions corresponding to the employee row in question.
Question 13.
(a) List any two types of entries that are allowed in a worksheet. [2]
(b) You enter 40-10 in a cell. The worksheet does not display the difference 30 in the cell, instead it shows 40-10. What is the reason for this ? [2]
(c) Give the full form of DBMS. [2]
(d) Explain the term 'Charts in MS Excel. [2]
(e) Write a shortcut key for each of the following : [2]
(i) To minimize the worksheet
(ii) To redo an action.
Answer:
(a) Text, Numbers, Formulas.
(b) An equals sign (=) was not prefixed before the expression (i.e., 40-10). Without the equals sign, Excel treats the entry as text.
(c) Database Management System.
(d) A chart is a visual representation of data in a worksheet showing data points along x-axis and y-axis.
(e) (i) Ctrl + F9
(ii) Ctrl + Y
Teacher's Note:
a) Formulas in spreadsheets must always begin with an equals sign to be evaluated.
b) Shortcut keys are standard productivity tools in spreadsheet and database applications.
Question 14.
(a) (i) What is the option used to adjust the text within a cell ? [2]
(ii) Give the procedure to use this option.
(b) What is a unique key ? [2]
(c) State any two types of data based structures. [2]
(d) What is meant by a cell in a spreadsheet ? [2]
(e) State the steps involved in merging two cells in a spreadsheet. [2]
Answer:
(a) (i) Wrap Text.
(ii) (a) Right-click the cell in which text is to be wrapped.
(b) Click Format Cells option.
(c) In Format Cells dialog box, click Alignment tab.
(d) Click Wrap text check box.
(e) Click OK.
(b) A unique key is a set of one or more fields of a table that uniquely identify a record in a database table. It can accept only one null value and cannot have duplicate values.
(c) Relational database structure, Network database structure.
(d) A cell in a spreadsheet is the intersection of a column and a row, represented by a combination of a column letter and row number (e.g., B5).
(e) (i) Select the cells which are to be merged.
(ii) Right-click on the selected cells.
(iii) Click Format Cells option.
(iv) In Format Cells dialog box, click Alignment tab.
(v) Click Merge cells check box.
(vi) Click OK.
Teacher's Note:
a) Wrap text allows long text to appear on multiple lines within the same cell rather than overflowing.
b) A unique key ensures data integrity by preventing duplicate entries in specified columns.
Free study material for Accountancy
Past Exam Papers & Solutions for Class 12 Accountancy
Previous Year Question Papers: Class 12 Accountancy
Access structured past examination sets for Class 12 Accountancy. Solving the ISC Class 12 Accountancy Board Exam Question Paper 2019 with Solutions provided above helps students understand actual exam difficulty levels, question formats, and topic distributions for both descriptive and objective sections.
Boost Your Exam Score with Past Papers
Regular simulation of exam environments using past question documents builds crucial pacing abilities and eliminates last-minute test anxiety during Class 12 Accountancy assessments.
Enhance Practice with Sample Papers & Solutions
Wrap up your exam preparation by reviewing detailed answer keys and tackling additional practice sets. All resources on our platform are free to access.
FAQs
The ISC Class 12 Accountancy Board Exam Question Paper 2019 with Solutions is available for download on StudiesToday.com. It includes complete set with all sections so that Class 12 students can practice with the exact same paper that came in the ISC exams.
Yes, the solutions for ISC Class 12 Accountancy Board Exam Question Paper 2019 with Solutions are prepared by subject matter experts as per official marking scheme. Class 12 students will understand the structure of answers and 'step-marks' methodology Accountancy.
Solving previous year papers like ISC Class 12 Accountancy Board Exam Question Paper 2019 with Solutions is important to understand repeat themes and question difficulty levels of Accountancy. It helps Class 12 students to test their time management skills too.
Yes, where applicable, ISC Class 12 Accountancy Board Exam Question Paper 2019 with Solutions is available in both English and Hindi mediums. All students from Class 12 can access Accountancy study material in their preferred language.
No, all previous year question papers on StudiesToday, including ISC Class 12 Accountancy Board Exam Question Paper 2019 with Solutions, are provided free of charge in mobile-friendly PDF.