Ahsec, Class - 12, Accountancy Solved paper - 2024| H.s. 2nd Year

Ahsec, Class - 12, Accountancy Solved paper - 2024| H.s. 2nd Year

 2024
ACCOUNTANCY
For New Course Students
Full Marks: 80
Pass Marks: 24
For Old Course Students in lieu of Project works
Full Marks:100
Pass Marks: 30
[Those who appeared H S Final Exam till 2023 have been treated as Old Course students]
Time: Three hours
The figures in the margin indicate full marks for the questions.

 

1. (a) Fill in the blanks with appropriate word/ words: (any four) 1x4=4

(i) Partners current accounts are prepared when the capital accounts are fixed.

(ii) Company has a separate legal entity apart from its members.

(iii) Current ratio is the relationship between current assets and current liabilities.

(iv) Equity shareholders are owners of a company.

(v) At the time of dissolution of partnership firm, assets are transferred to Realisation Account at book value.

(b) State whether the following statements are 'True' or 'False': 1x2=2

(i) Debenture holders do not have right to vote in the meeting of the company. True

(ii) Premium for goodwill is shared in gaining ratio. True

(c) Choose the correct alternative: 1x2=2

(i) The portion of the authorised capital which is offered to the public for sale in the form of shares is called

(a) subscribed capital

(b) issued capital

(c) called-up capital

(d) paid-up capital

Ans:- (b) issued capital

(ii) In the absence of partnership deed, the rate of interest allowed on partner's capital is

(a) 6%

(b) 5%

(c) 6.5%

(d) None of the above

Ans:- (a) 6%

2. What is meant by re-issue of forfeited shares?  2

Ans:- Re-issue of forfeited shares: This refers to the process in which the company re-issues shares that were previously forfeited due to non-payment of allotment or call money by shareholders. After forfeiture, the shares can be resold, usually at a price not lower than the amount owed on those shares. The re-issue may be at par, premium or discount, depending on the decision of the company and the original terms of the shares.

3. Write any two demerits of partnership business. 2

Ans:- Two Demerits of Partnership Business are:-

(i) Unlimited Liability: Partners have unlimited liability, which means they are personally responsible for the debts of the business, which may put their personal assets at risk.

(ii) Possibility of Disputes: Partnerships may lead to conflicts between partners regarding decision-making, profit-sharing and management, which may disrupt business operations.

4. Mention two features of a debenture. 2

Ans:- Two Features of Debentures are:-

(i) Fixed interest rate: Debentures usually carry a fixed interest rate that is paid to debenture holders at regular intervals.

(ii) Secured or unsecured: Debentures may be secured against the company's assets or unsecured depending on the terms of issue.

Or

Write the meaning of 'Cash flow from investing activities'. 2

Ans:- Cash flow from investing activities: It refers to the cash generated or spent by a company in connection with its investments, including purchases and sales of physical assets (such as property and equipment), investments in securities, and other capital expenditures. It shows how much cash is used for investment purposes or how much cash is generated from it during a specific period.

5. Give two circumstances under which the fixed capitals of partners may change. 2

Ans:- Two Circumstances under which the fixed capital of partners may change:-

(i) Admission of a new partner: When a new partner is admitted to the partnership, the fixed capital accounts may be adjusted to reflect the capital contribution of the new partner.

(ii) Withdrawal of a partner: If a partner withdraws from the partnership, their capital account will be settled, potentially leading to a change in the fixed capital structure of the remaining partners.

Or

Why is Profit and Loss Adjustment Account prepared? 2

Ans:- Profit and Loss Adjustment Account: This account is prepared to distribute the profit or loss among the partners at the end of an accounting period. It ensures that the profit or loss is allocated in accordance with the partnership agreement, reflecting each partner's share based on their respective profit-sharing ratio.

6. What is meant by 'calls-in-advance'? 2

Ans:- Calls-in-advance: This term refers to the amount received by the company from shareholders before the due date of the call for payment on shares. This is an advance payment for shares that have not yet been called, and companies may pay interest on these amounts until the actual call is made.

7. Mention two limitations of financial statement analysis. 2

Ans:- Two Limitations of Financial Statement Analysis are:-

(i) Historical Data: Financial statements are based on historical data, which may not accurately predict future performance or current financial health.

(ii) Subjectivity in accounting policies: Different accounting methods can lead to variations in reported figures, making comparisons between companies less reliable.

Or

What is meant by the term 'cash equivalents'?

Ans:- Cash equivalents: This term refers to short-term, highly liquid investments that are easily convertible into a known amount of cash and have an insignificant risk of change in value. Examples include Treasury bills, money market funds, and short-term government bonds.

8. Write three situations when a partnership firm is compulsorily dissolved. 3

Ans:- Circumstances of Compulsory Dissolution of Partnership Firm:

A partnership firm may be compulsorily dissolved under the following circumstances:-

(i) Insolvency of Partners: If all the partners or all the partners except one become insolvent, the firm must be dissolved as they are legally incapable of entering into contracts.

(ii) Illegality of Business: If the business of the firm becomes illegal, such as if it is engaged in unlawful activities, compulsory dissolution is required.

(iii) Death of Partner: Death of a partner may also lead to dissolution of the firm, especially if it has not been agreed that the partnership will continue after such an event.

9. Give any three items that can be shown under the heading 'Reserves and Surplus' in a company's Balance Sheet. 3

Ans:- Items under 'Reserves and Surplus' in the Balance Sheet of a Company:

The following items may be shown under the head 'Reserves and Surplus' in the Balance Sheet of a Company:-

(i) General Reserve: It is a reserve created out of profits for general purposes and is not earmarked for any specific liability.

(ii) Capital Reserve: This reserve is created out of capital profits and is not available for distribution as dividend.

(iii) Retained Earnings: It represents the cumulative profits which have been retained in the business instead of being distributed as dividends to shareholders.

Or

Name any three items of current assets.  3

Ans:- Items of Current Assets:

Three items which can be classified as current assets are:-

(i) Cash and cash equivalents: This includes cash in hand and bank balances.

(ii) Accounts receivable: These are amounts due to the company by customers for goods or services delivered but not yet paid.

(iii) Inventory: This includes raw materials, work in progress and finished goods which are held for sale in the ordinary course of business.

10. Current liabilities of a company are Rs. 3.50,000. Its current ratio is 3:1 and liquid ratio is 1.75:1. Calculate the current assets and liquid assets. 3


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