ISC has released sample papers for 2012 for Accounts. ISC recommends students to practice these sample papers to get better marks in examination.
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
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.