Top 10 Questions in Accounts CBSE Class 12 Exam - 2020

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]

 3. M, 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]

 4. Vini 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 31^st 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 31^st 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 31^st 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:

 6. Begam 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 1^st April 2013 which are redeemable at a premium of 5% on 30^th June 2015. The company transferred an amount of Rs. 3,80,000 to Debenture Redemption Reserve on 31^st March 2015. Also, investments as required by law were made in the fixed deposit of a bank on 1^st April 2015. 

Pass the necessary journal entries for redemption from 31^st 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 31^st 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:

 10. Following 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:

 

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]

 

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CBSE Class 12 Accounts exam 2020 - Sample Papers

CBSE Class 12 Accounts exam 2020 - Previous years papers

 

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