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Top 10 Questions in Accounts CBSE Class 12 Exam - 2020

Education

Top 10 Questions in Accounts CBSE Class 12 Exam - 2020

Check top 10 important accounts questions and answers that will help you plan your study and revision in CBSE Class 12 Accounts exam - 2020

By Topperlearning Expert 27th Feb, 2020 07:14 pm

Your Accountancy board paper for 2020 will comprise two sections, where Part A is compulsory for all and Part B has 2 options.

Part A is for 60 marks which comprises Accounting for Not-for-Profit Organisations, Partnership Firms and Companies. Part B is for 20 marks which has 2 options—Analysis of Financial Statements and Computerised Accounting.

Here are some important questions that you should not miss while studying for your Accountancy paper.

 

Part A: Accounting for Not-for-Profit Organisations, Partnership Firms and Companies [60 Marks]: Following is the list of questions which you can expect in Part A of your Accountancy paper:

 

  • Financial Statements of Not-for-Profit Organisations

 1.      Prepare the income & expenditure account and balance sheet for the year ending 31.03.2019 from the receipts & payments account given below.

Receipts

Amount

Payments

Amount

To Balance b/d
    Cash in hand       12,500

    Cash at Bank   1,22,500

To Subscription

To Bank Interest

To Sale of Van

 

 

1,35,000

2,00,000

1,000

20,000

 

By Rent

By Printing & Stationery

By Salaries

By Printer

By Investments

By Balance c/d:

      Cash in hand             6,500

      Cash at Bank       1,00,000

 

30,000

9,500

1,50,000

20,000

40,000

 

 

1,06,500

 

3,56,000

 

3,56,000

Additional Information:

  1. Subscriptions include Rs. 40,000 for the year ending 31.03.2018 & Rs. 20,000 for the year ending 31.03.2020. Rs. 40,000 of the current year are still in arrears.
  2. Investments were purchased on 01.10.2018 and earns an interest @5% p.a.
  3. Rent for 1 month Rs. 2,500 is still outstanding.
  4. Payment for stationery Rs. 1,500 is still outstanding.
  5. Van sold for Rs. 20,000 had a book value of Rs. 27,500.

                                                                                                                                                                     [6 M] [Modified question asked in 2019]

Suggested Answer:

    Dr.                                                  Income and Expenditure Account                                                 Cr.

       for the year ended 31st March 2019

Expenditure

Amount

Income

Amount

 

To Rent                                       30,000

 

By Subscription            2,00,000

 

    Add: Outstanding                   2,500

32,500

Less: For 2017-18        (40,000)

 

To Printing and Stationery     9,500

 

           For 2019-20        (20,000)

 

    Add: Outstanding                  1,500

11,000

                                          1,40,000

 

To Salaries

1,50,000

Add: Outstanding           40,000

1,80,000

To Loss on Sale of Van

7,500

By Bank Interest              1,000

 

 

 

Add: Accrued                    1,000

2,000

 

 

By Deficit

19,000

 

2,01,000

 

2,01,000

 

 

Balance Sheet as on 31st March 2019

Liabilities

Amount 

Amount 

Assets

Amount 

Capital Fund:

Opening Balance

Less: Deficit

Advance Subscription

Outstanding Rent

Outstanding Printing & Stationery

 

2,02,500

(19,000)

 

 

1,83,500

20,000

2,500

1,500

Cash in hand

Cash at bank

Outstanding Subscription

Interest Accrued

Investments

Printer

6,500

1,00,000

40,000

1,000

40,000

20,000

 

 

2,07,500

 

2,07,500


Working Notes
:

Calculation of Opening Balance of Capital Fund:

Balance Sheet as on 31st March 2018

Liabilities

Amount 

Assets

Amount 

Capital Fund

2,02,500

Cash in hand

Cash at bank

Outstanding Subscription

Van

12,500

1,22,500

40,000

27,500

 

2,02,500

 

2,02,500

 

  • Accounting for Partnership Firms

 2. M, S and U are partners in a firm sharing profits in the ratio 3:1:1 with fixed capital balances of Rs. 2,00,000, Rs. 80,000 and Rs. 60, 000, respectively. The net profit for the year ending 31st March 2019 distributed among the partners was Rs. 50,000 without providing for the following adjustments:

  1. Salary of Rs. 9,000 was paid to M and was also allowed a commission of 6% divisible profit after charging such commission.
  2. Commission paid to U was Rs. 6,000.
  3. Interest on capitals @2.5% p.a.

Pass the rectifying entry by showing all the workings clearly.

                                                                                                          [6 M] [Modified question asked in 2015, 2017, Sample Paper 2018-19, 2019]


 3M, N and O are partners sharing profits and losses in the ratio 5:3:2. On 1st April 2018, they decided to change their profit-sharing ratio so that they share all future profits and losses equally. On this date, goodwill appeared in their books at Rs. 24,000 which was revalued at Rs. 60,000.

Pass the necessary journal entries assuming that goodwill will not appear in the books of account.

                                                                                                                                                                    [4 M]

 4Vini and Mani are partners in a firm sharing profits in the ratio 3:2. The balance sheet on 1st April 2018 was as follows:

Liabilities

 

Amount

Assets

 

Amount

Capital A/c:

 

 

Plant

 

30,000

Vini

30,000

 

Patents

 

10,000

Mani

25,000

55,000

Stock

 

20,000

General Reserve

 

10,000

Debtors

 

18,000

Creditors

 

15,000

Cash

 

2,000

 

 

 

 

 

 

 

 

80,000

 

 

80,000


On the above date, Jai is admitted as a partner on the following terms:

  1. The incoming partner was to introduce Rs. 20,000 as capital, and the capital of the remaining partners was to be adjusted in the new profit-sharing ratio by bringing in the required amount of cash or paying off the surplus as the case may be.
  2. It was decided that the incoming partner will pay Rs. 10,000 as premium for 1/4th share in the future profits.
  3. In the event of admission, assets are to be valued as follows:
  • Plant Rs. 32,000
  • Stock Rs. 18,000
  • Debtors at book value less a provision for doubtful debts of 5%.
  • Creditors of Rs. 1,400 was not to be paid. It was also found that there was a liability for compensation to workers amounting to Rs. 2,000.

 Prepare Revaluation A/c, Partners’ Capital A/c and Balance Sheet in the event of admission of the new partner Jai.

[8 M] [Modified question asked in 2017, 2018, Sample Paper 2018-19, 2019]

 

 5. S, H and R were partners in a firm and the Balance Sheet of the firm as on 31st March 2014 is as follows:

Liabilities

Amount

Assets

Amount

Capital A/cs:

S                                                    15,000                   

H                                     15,000

R                                     10,000

General Reserve

Sundry Creditors

 

 

 

40,000

15,000

5,000

Plant & Machinery

Furniture

Investments

Stock

Sundry Debtors

20,000

7,500

10,000

12,500

10,000

 

60,000

 

60,000

On 31st December 2014, H died, and as per the partnership deed, the representatives of the deceased partner are entitled to

  1. Capital Account Balance of the deceased partner
  2. Share in the undistributed profits or losses as per the Balance Sheet
  3. Share in the profits of the firm till the date of his death calculated on the basis of the rate of net profit on the sales of the previous year (which was 20%); sales for the year till 31st December 2014 was Rs. 3,00,000
  4. Interest on capital @6% p.a. up to the date of his  death

Prepare H’s Capital Account to be presented to his executors.

[6 M] [Modified question asked in 2013, 2014, 2015, 2017, 2018, 2019]

  • Accounting for Companies:

 6Begam Ltd. issued 25,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as follows:

On Application - Rs. 3 per share

On Allotment - Rs. 4 per share (including premium)

On First Call - Rs. 2 per share

On Final Call - Balance

Applications were received for 37,500 shares and pro-rata allotment was made to all the applicants. All the money due was received except allotment and first call from Neha who applied for 600 shares. All her shares were forfeited which were then reissued for Rs. 4,800.

Assuming that the final call was not made, pass the necessary journal entries.

[8 M] [Modified question asked in 2015, 2018, 2019]

 

7. Mahesh Limited issued Rs. 15,20,000, 9% debentures of Rs. 100 each on 1st April 2013 which are redeemable at a premium of 5% on 30th June 2015. The company transferred an amount of Rs. 3,80,000 to Debenture Redemption Reserve on 31st March 2015. Also, investments as required by law were made in the fixed deposit of a bank on 1st April 2015. 

Pass the necessary journal entries for redemption from 31st March 2015 ignoring the interest on the fixed deposit.                               

                                                                                                                                            [6 M] [Modified question asked in 2016, 2018, 2019]

 

 

Part B: Analysis of Financial Statements [40 Marks]: Following is the list of questions which you can expect in Part B of your Accountancy paper:

 

  • Analysis of Financial Statements:

 8.      From the information given below, prepare a comparative income statement for the company:

Particulars

Note No.

31st March 2019

31st March 2018

Revenue from Operations

Other Income (% of Revenue from Operations)

Expenses (% of Operating Revenue)

Tax Rate

 

45,00,000

20%

70%

30%

32,00,000

25%

60%

30%

[4 M] [Modified question asked in 2014, 2016, 2019]

Suggested Answer:  

Comparative Income Statement for the years ended 31st March 2018 and 2019

Particulars

Note No.

31st March 2018

31st March 2019

Absolute Change

Percentage Change

 

 

(A)

(B)

(C = B - A)

(D = C/A x 100)

        I.            Revenue from Operations

      II.            Other Income (WN)

 

32,00,000

8,00,000

45,00,000

9,00,000

13,00,000

1,00,000

40.63

12.5

   III.            Total Revenue (I+II)

    IV.            Expenses (WN)

 

40,00,000

19,20,000

54,00,000

31,50,000

14,00,000

12,30,000

35

64.06

      V.            Profit before Tax (III-IV)

    VI.            Less: Tax (30%)

 

20,80,000

6,24,000

22,50,000

6,75,000

1,70,000

51,000

8.17

8.17

 VII.            Profit after Tax (V-VI)

 

14,56,000

15,75,000

1,19,000

8.17


     Working Notes:

Particulars

31st March 2018

31st March 2019

Other Income

25% x 32,00,000 = 8,00,000

20% x 45,00,000 = 9,00,000

Expenses

60% x 32,00,000 = 19,20,000

70% x 45,00,000 = 31,50,000

 

9. Compute gross profit ratio from the information given below:

Average Inventory = 3,50,000

Inventory Turnover Ratio = 6 times

Average Trade Receivables = 4,00,000

Trade Receivables Turnover Ratio = 5 times

Cash Sales = 20% of Net Sales

[3 M] [Modified question asked in 2016, 2018, 2019]

  • Cash Flow Statement:

 10Following is the balance sheet of R Ltd. along with the additional information as on 31.3.2018. You are required to prepare a cash flow statement from the given information:

Balance Sheet of R Ltd. as on 31-3-2018

Particulars

Note

No.

31-03-2018

Rs.

31-03-2017

Rs.

 

I. Equity and Liabilities

 

 

 

 

1. Shareholders’ Funds

 

 

 

 

(a)    Share Capital

 

1,80,000

1,40,000

 

(b)  Reserve and Surplus

1

50,000

20,000

 

2. Non-Current Liabilities

 

 

 

 

(a)  Long-term borrowings

2

90,000

70,000

 

3. Current Liabilities

 

 

 

 

(a)   Short-term borrowings

3

30,000

15,000

 

(b)  Short-term provisions

4

40,000

25,000

Total

 

3,90,000

2,70,000

 

 

 

 

 

II. Assets

 

 

 

 

1. Non-Current Assets

 

 

 

 

(a)   Fixed Assets

 

 

 

 

Tangible Assets

5

2,93,000

1,81,000

 

Intangible

6

20,000

30,000

 

(b)  Non-Current Investments

 

30,000

20,000

 

2. Current Assets

 

 

 

 

(a)   Current Investments

 

8,000

14,000

 

(b)  Inventories

7

24,400

14,400

 

(c)   Cash and Cash Equivalents

 

14,600

10,600

 

 

 

 

Total

 

3,90,000

2,70,000

               

 

Notes to Accounts:

Note No.

Particulars

31-3-2018

Rs.

31-3-2017

Rs.

1.

Reserve and surplus

 

 

 

(Surplus, i.e. Balance in the Statement of Profit & Loss)

50,000

20,000

 

 

50,000

20,000

 

 

 

 

2.

Long-term borrowings

 

 

 

12% Debentures

90,000

70,000

 

 

90,000

70,000

 

 

 

 

3.

Short-term borrowings

 

 

 

Bank overdraft

30,000

15,000

 

 

75,000

15,000

 

 

 

 

4.

Short-term  provisions

 

 

 

Provisions for tax

40,000

25,000

 

 

40,000

25,000

 

 

 

 

5.

Tangible Assets

 

 

 

Machinery

3,35,000

2,09,000

 

Accumulated depreciation

(42,000)

(28,000)

 

 

2,93,000

1,81,000

 

 

 

 

6.

Intangible Assets

 

 

 

Goodwill

20,000

30,000

 

 

20,000

30,000

 

 

 

 

7.

Inventories

 

 

 

Stock in trade

24,400

14,400

 

 

24,400

14,400

 

 

 

 

 

Additional Information:

  1. Rs. 20,000, 12% debentures were issued on 31.3.2018.
  2. During the year, a part of machinery costing Rs. 16, 000 with accumulated depreciation of Rs. 8,000 was sold at a loss of Rs. 2,000.

[6 M] [Modified question asked in 2017, 2019]

 

Watch the video on how to score more than 90% in CBSE Class 12 Accounts Exam - 2020


 

For reviewing all the important answers and practice material for CBSE Class 12 Accounts exam 2020 click here:

 

CBSE Class 12 Accounts exam 2020 - Sample Papers

CBSE Class 12 Accounts exam 2020 - Previous years papers

 

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