Maharashtra Board Class 12 Book Keeping and Accountancy(50-J-897) Question Paper 2024 Available- Download Solution PDF with Answer Key

Question 1(a):

Attempt all of the following subquestions:

Find the odd one

(i). Subscribed Capital, Called up Capital, Paid up Capital, Equity Shares

Correct Answer: Equity Shares

View Solution

Subscribed Capital, Called-up Capital, and Paid-up Capital represent different stages of capital
commitment in a company, whereas Equity Shares refer to ownership units and do not represent a stage of
capital.

Question 1(a):

(ii). Building, Bills Payable, Furniture, Machinery

Correct Answer:Bills Payable

View Solution

Building, Furniture, and Machinery are fixed assets (tangible property). Bills Payable, however, is
a liability, making it the odd one out.

Question 1(a):

(iii) Retaining of Bill, Noting of Bill, Discounting of Bill, Endorsing of Bill

Correct Answer: Noting of Bill

View Solution

Noting, Discounting, and Endorsing of a Bill are all financial actions taken on a bill. Retaining of
Bill means keeping it without taking any financial action, making it the odd one out.

Question 1(a):

(iv). Audit Fees, Insurance, Medical Expenses, Sundry Receipts

Correct Answer: Sundry Receipts

View Solution

Audit Fees, Insurance, and Medical Expenses are expenses incurred by a business. Sundry Receipts
refer to income and not an expense, making it the odd one out.

Question 1(a):

(v). General Reserve, Creditors, Investments, Capital

Correct Answer: Investments

View Solution

General Reserve, Investments, and Capital are company-owned funds, whereas Creditors represent an external liability, making it the odd one out. Quick Tip: Identifying the odd one requires understanding categories of financial terms, such as assets, liabilities, expenses, and revenues.

Question 1(b):

(i). ‘Not for Profit’ concerns do not prepare Balance Sheet.

Correct Answer:Disagree

View Solution

Non-Profit Organizations (NPOs) do prepare a Balance Sheet (also called Receipts & Payments
Account or Statement of Affairs). This statement shows their assets, liabilities, and capital funds, even though
their primary objective is not profit-making.

Question 1(b):

(ii). Current Account always shows a debit balance.

Correct Answer:

Disagree

View Solution

Question 1(b):

(iii). A Bill of Exchange is a conditional order.

Correct Answer:

Disagree

View Solution

A Bill of Exchange is an unconditional order to pay a specified amount to a certain person at a fixed
date. According to the Negotiable Instruments Act, bills of exchange must be unconditional to ensure clarity
and enforceability.

Question 1(b):

(iv). Retiring partner is entitled to share in Reserve Fund and Accumulated Profit.

Correct Answer:

Agree

View Solution

Question 1(b):

(v). On dissolution, Cash or Bank account is closed automatically.

Correct Answer:

View Solution

On dissolution, all accounts must be closed manually by adjusting final payments to creditors, partners, and shareholders.
The Cash or Bank Account is closed only after all transactions are settled, and the firm ceases operations. Quick Tip: A Bill of Exchange is always unconditional, and a Current Account can have both debit or credit balances.

Question 1(c):

Select the most appropriate alternative from those given below and rewrite the statements:

(i). In case of dissolution, assets and liabilities are transferred to ____ Account.

(a) Bank

(b) Partners’ Capital
(c) Realisation
(d) Partners’ Current

Correct Answer: (c) Realisation

View Solution

At the time of dissolution of a firm, all assets and liabilities are transferred to the Realisation Account
to determine profit or loss on the sale of assets and settlement of liabilities.

Question 1(c):

(ii). In the absence of an agreement, interest on loan advanced by the partner to the firm is allowed at the rate of ____.

(a) 5%
(b) 6%
(c) 10%
(d) 9%

Correct Answer: (b) 6%

View Solution

According to the Indian Partnership Act, 1932, if there is no agreement, interest on a partner’s loan
is allowed at 6% per annum.

Question 1(c):

(iii). If an asset is taken over by the partner, ____ account is debited.

(a) Revaluation
(b) Capital
(c) Asset
(d) Balance Sheet

Correct Answer: (b) Capital

View Solution

When a partner takes over an asset, the value of the asset is debited to the Partner’s Capital Account
as it reduces the amount due to the partner.

Question 1(c):

(iv). The balance of the Capital Account of a retired partner is transferred to his ____ Account, if it is not paid.

(a) Loan
(b) Personal
(c) Current
(d) Son’s

Correct Answer: (a) Loan

View Solution

If the retiring partner’s capital balance is not immediately paid, it is transferred to the Loan Account
and treated as a liability of the firm.

Question 1(c):

(v) Income and Expenditure Account is a ____ Account.

(a) Capital
(b) Real
(c) Personal
(d) Nominal

Correct Answer:(d) Nominal

View Solution

The Income and Expenditure Account is a Nominal Account as it records revenues and expenses of a Non-Profit Organization (NPO) during an accounting period. Quick Tip: The Realisation Account is used during dissolution, and a retiring partner’s unpaid capital is converted into a loan.

Question 1(d):

Write a word/term/phrase as a substitute for each of the following statements:

(i). Tally software is classified into this category.

Correct Answer:

View Solution

Tally is an Accounting Software used for financial transactions, bookkeeping, and GST compliance.

Question 1(d):

(ii). Partnership Agreement in written form.

Correct Answer:

View Solution

A Partnership Deed is a legal document that outlines the rights, duties, and responsibilities of
partners in a firm.

Question 1(d):

(iii). An asset which can be converted into cash immediately.

Correct Answer:

View Solution

Liquid Assets are those assets that can be quickly converted into cash without a significant loss in
value. Examples: Cash, Bank Deposits, Marketable Securities.

Question 1(d):

(iv). A person who represents the deceased partner.

Correct Answer:

View Solution

A Legal Representative is a person (heir/executor) who manages the assets, liabilities, and legal
matters of a deceased partner.

Question 1(d):

(v). The debit balance of the Income and Expenditure Account.

Correct Answer:

View Solution

A Deficit occurs when expenses exceed income in a Non-Profit Organization’s Income and Expenditure Account. Quick Tip: A Partnership Deed is a legal document that defines partner responsibilities, profit sharing, and dispute resolution.

Question 2:

Seeta and Geeta share profits and losses in the ratio of 3:2 in a partnership firm. Their Balance Sheet as on 31^st March, 2020 was as under:
Balance Sheet as on 31^st March, 2020

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Bank	11,250
Seeta	22,500	Bills Receivable	5,700
Geeta	18,000	Debtors	31,200
	40,500	Less: R.D.D	(1,200)
Creditors	18,750	Stock	18,000
Bills Payable	15,000	Furniture	7,050
Bank Loan	24,000	Machinery	7,500
General Reserve	3,750	Building	22,500
Total	1,02,000	Total	1,02,000

On 1st April, 2020, they admitted Reeta on the following terms:

(1).For half (½) share in future profit, Reeta should bring Rs. 15,000 as capital and Rs. 7,500 for goodwill in cash.
(2).Furniture should be appreciated up to Rs. 8,025 and building be appreciated by 20%.
(3).R.D.D. is to be maintained at Rs. 1,500.
(4).The stock is to be reduced by 10% and machinery depreciated by 5%.
(5).Half of the amount of goodwill is withdrawn by old partners.

Correct Answer:

View Solution

Journal Entries in the Books of the Firm

Date	Particulars	Dr. (₹)
1-Apr-2020	Bank A/c Dr.	22,500
	To Reeta’s Capital A/c	15,000
	To Goodwill A/c	7,500
1-Apr-2020	Furniture A/c Dr.	975
	Building A/c Dr.	4,500
	To Revaluation A/c	5,475
1-Apr-2020	Revaluation A/c Dr.	1,500
	To R.D.D A/c	300
	To Stock A/c	1,800
	To Machinery A/c	375
1-Apr-2020	Revaluation A/c Dr.	75
	To Seeta’s Capital A/c	45
	To Geeta’s Capital A/c	30
1-Apr-2020	Goodwill A/c Dr.	7,500
	To Seeta’s Capital A/c	4,500
	To Geeta’s Capital A/c	3,000
1-Apr-2020	Seeta’s Capital A/c Dr.	2,250
	Geeta’s Capital A/c Dr.	1,500
	To Bank A/c	3,750

Revaluation Account

Particulars	Dr. (₹)	Particulars	Cr. (₹)
To R.D.D Increase	300	By Furniture Appreciation	975
To Stock Depreciation	1,800	By Building Appreciation	4,500
To Machinery Depreciation	375
To Profit Transferred:	75
Seeta (3:2)	45
Geeta (3:2)	30
Total	2,550	Total	5,475

Adjusted Balance Sheet as on 1st April, 2020

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:	59,250	Bank	30,000
Seeta	24,750	Bills Receivable	5,700
Geeta	19,500	Debtors	31,200
Reeta	15,000	Less: R.D.D	(1,500)
Creditors	18,750	Stock	16,200
Bills Payable	15,000	Furniture	8,025
Bank Loan	24,000	Machinery	7,125
General Reserve	3,750	Building	27,000
Total	1,20,750	Total	1,20,750

Quick Tip: On admission of a partner, goodwill is credited to old partners, and assets are revalued to reflect the current market value.

Question 2(b):

The balance sheet of Shivshakti Traders, Mumbai is as follows. Partners share profit and
losses as 5:2:3.

Balance Sheet as on 31st March, 2020

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	30,000	Bank	18,600
Bills Payable	1,800	Debtors	25,200
General Reserve	21,000	Less: R.D.D	(1,200)
Capital Accounts:		Stock	30,600
Raj	54,000	Building	60,000
Rahul	48,000	Plant and Machinery	48,000
Nitin	26,400
Total	1,81,200	Total	1,81,200

Rahul retired from the business on 1st April, 2020 on the following terms:

1. The assets were revalued as under:
• Plant and Machinery to be depreciated by 10%.
• R.D.D. to be increased up to |1,500.
• Building is appreciated by 10%.
• Stock at |42,000.
2. The goodwill of retiring partner is valued at |12,000 and the remaining partners decided that goodwill
will be written back in their new profit-sharing ratio, which will be 5:3.
3. Amount due to Rahul at the time of retirement is to be transferred to his loan account.

(i). Profit and Loss Adjustment Account (Revaluation Account)

Correct Answer:

View Solution

Particulars	Dr. (₹)	Particulars	Cr. (₹)
To Plant and Machinery Depreciation (10%)	4,800	By Stock Increase	11,400
To R.D.D Increase	300	By Building Appreciation (10%)	6,000
To Profit Transferred:	Raj (5/10)	6,150
	Rahul (2/10)	2,460
	Nitin (3/10)	3,690
Total	17,400	Total	17,400

Question 2(b):

(ii). Partners’ Capital Account

Correct Answer:

View Solution

Particulars	Raj (₹)	Rahul (₹)	Nitin (₹)
To Goodwill Written Off	7,500	0	4,500
To Rahul’s Loan A/c (Settlement)	0	69,960	0
By Balance b/d	54,000	48,000	26,400
By Revaluation Profit	6,150	2,460	3,690
By General Reserve	10,500	4,200	6,300
By Goodwill Share	7,500	0	4,500
Total	70,650	69,960	40,890

Question 2(b):

(iii). Adjusted Balance Sheet as on 1st April, 2020

Correct Answer:

View Solution

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	30,000	Bank	18,600
Bills Payable	1,800	Debtors	25,200
Rahul’s Loan A/c	69,960	Less: R.D.D	(1,500)
Capital Accounts:		Stock	42,000
Raj	70,650	Building	66,000
Nitin	40,890	Plant and Machinery	43,200
Total	1,81,200	Total	1,81,200

Explanation of Adjustments:

Profit and Loss Adjustment Account: Records revaluation of assets and distribution of profits among partners.
Partners’ Capital Account: Adjusts each partner’s share, goodwill adjustments, and the transfer of Rahul’s amount to his loan account.
Balance Sheet: Reflects the adjusted figures post-retirement of Rahul.

%Quicktip Quick Tip: At retirement, a partner’s goodwill is shared among remaining partners in their new profit-sharing ratio.

Question 3(a):Lal, Bal, and Pal were partners sharing profits and losses in the ratio of 2:2:1. The following
is the Balance Sheet as on 31st March, 2020.

Balance Sheet as on 31st March, 2020

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Machinery	50,000
Lal	60,000	Investment	24,000
Bal	20,000	Debtors	55,000
Pal	20,000	Less: R.D.D	(3,000)
General Reserve	6,000	Stock	20,000
Creditors	48,000	Profit and Loss A/c	18,000
Bills Payable	14,000	Bank	4,000
Total	1,68,000	Total	1,68,000

On the above date, the partners decided to dissolve the firm.

1. Assets were realised as under:
• Machinery ₹45,000
• Stock ₹18,000
• Investment ₹21,000
• Debtors ₹45,000
2. Dissolution expenses were ₹3,000.
3. Goodwill of the firm realised ₹24,000.

3(i). Realisation Account

Correct Answer:

View Solution

Particulars	Dr. (₹)	Particulars	Cr. (₹)
To Machinery	50,000	By Bank (Machinery)	45,000
To Investment	24,000	By Bank (Stock)	18,000
To Debtors	55,000	By Bank (Investment)	21,000
To Stock	20,000	By Bank (Debtors)	45,000
To Creditors	48,000	By Bank (Goodwill)	24,000
To Bills Payable	14,000	By Partners’ Capital A/c (Loss)	3,000
To Dissolution Expenses	3,000	Lal (2/5)	1,200
		Bal (2/5)	1,200
		Pal (1/5)	600
Total	1,68,000	Total	1,68,000

Question 3(a):

(ii). Partners’ Capital Account

Correct Answer:

View Solution

Particulars	Lal (₹)	Bal (₹)	Pal (₹)
To Realisation A/c (Loss)	1,200	1,200	600
To Cash/Bank A/c (Final Payment)	64,800	22,800	25,800
By Balance b/d	60,000	20,000	20,000
By General Reserve	2,400	2,400	1,200
By Profit	3,600	1,600	5,200
Total	66,000	24,800	27,000

Question 3(a):

(iii). Bank Account

Correct Answer:

View Solution

Particulars	Dr. (₹)	Particulars	Cr. (₹)
To Balance b/d	4,000	By Dissolution Expenses	3,000
To Realisation A/c	1,53,000	By Lal (Final Payment)	64,800
		By Bal (Final Payment)	22,800
		By Pal (Final Payment)	25,800
Total	1,57,000	Total	1,57,000

Explanation of Adjustments:

Realisation Account: Records the sale of assets, payment of liabilities, and expenses.
Partners’ Capital Account: Reflects the final settlements of partners' capital balances.
Bank Account: Shows cash inflow from the sale of assets and outflow for liability payments and final settlement.

%Quicktip Quick Tip: At the time of dissolution, all assets are sold, liabilities paid, and the remaining balance is distributed among partners according to their capital balances.

Question 3(b):

Journalise the following transactions in the books of Mr. Arvind.

(A) Bank informed that Sam's acceptance for Rs. 30,000 sent to bank for collection has been honoured and bank charges debited Rs. 200.

(B) Arun informed Arvind that Neena's acceptance for Rs. 25,000 endorsed to Arun has been dishonoured. Noting charges paid by Arun amounted to Rs. 400.

(C) Bank informed that Jay's acceptance of Rs. 35,000 which was discounted with bank was dishonoured, bank. paid noting charges Rs. 500.

(D) Arvind sold goods to Sagar for Rs. 20,000 on credit and drew a bill for two months on Sagar for the same amount.

(E) Neeta retired her acceptance to Arvind of Rs. 16,500 by paying cash Rs. 16,000.

Correct Answer:

View Solution

Journal Entries in the Books of Mr. Arvind

Date	Particulars	Dr. (₹)	Cr. (₹)
(A)	Bank A/c Dr.	29,800
	Bank Charges A/c Dr.	200
	To Bills Receivable A/c		30,000
	(Being Sam’s acceptance collected by the bank and bank charges deducted)
(B)	Arvind’s A/c Dr.	25,400
	To Arun’s A/c		25,000
	To Noting Charges A/c		400
	(Being Neena’s acceptance dishonoured and noting charges paid by Arun)
(C)	Jay’s A/c Dr.	35,500
	To Bank A/c		35,000
	To Noting Charges A/c		500
	(Being Jay’s acceptance dishonoured and noting charges paid by bank)
(D)	Sagar’s A/c Dr.	20,000
	To Sales A/c		20,000
	(Being goods sold on credit to Sagar and bill drawn for the same)
(E)	Cash A/c Dr.	16,000
	Discount Allowed A/c Dr.	500
	To Neeta’s A/c		16,500
	(Being Neeta retired her acceptance by paying ₹16,000 in cash)

Explanation of Entries:
(A) The bill received from Sam was collected by the bank, but bank charges of Rs. 200 were deducted.
(B) Neena’s bill was dishonoured, and noting charges were paid by Arun, which Arvind needs to reimburse.
(C) Jay’s bill was dishonoured after it was discounted with the bank, and noting charges were borne by the bank.
(D) Goods were sold on credit to Sagar, and a bill was drawn for the same amount.
(E) Neeta settled her acceptance early by paying Rs. 16,000 instead of Rs. 16,500, leading to a discount allowed of Rs. 500. Quick Tip: When a bill is dishonoured, the amount is debited back to the drawee's account along with any noting charges.

Question 4(a):

Mohini Company Limited issued 25,000 equity shares of Rs. 100 each payable as follows:
On Application Rs. 20
On Allotment Rs. 30
On First Call Rs. 20
On Second and Final Call Rs. 30
Applications were received for 22,000 equity shares, and allotment of shares was made accordingly.
All money was received by the company.
Pass Journal Entries in the books of Mohini Co. Ltd.

Correct Answer:

View Solution

Journal Entries in the Books of Mohini Co. Ltd.

Date	Particulars	Dr. (₹)	Cr. (₹)
(1)	Bank A/c Dr.	4,40,000
	To Equity Share Application A/c		4,40,000
	(Being application money received for 22,000 shares at ₹20 per share)
(2)	Equity Share Application A/c Dr.	4,40,000
	To Equity Share Capital A/c		4,40,000
	(Being application money transferred to share capital)
(3)	Bank A/c Dr.	6,60,000
	To Equity Share Allotment A/c		6,60,000
	(Being allotment money received for 22,000 shares at ₹30 per share)
(4)	Bank A/c Dr.	4,40,000
	To Equity Share First Call A/c		4,40,000
	(Being first call money received for 22,000 shares at ₹20 per share)
(5)	Bank A/c Dr.	6,60,000
	To Equity Share Second and Final Call A/c		6,60,000
	(Being second and final call money received for 22,000 shares at ₹30 per share)

Explanation of Entries:

(1) Application money received for 22,000 shares at Rs. 20 per share.
(2) Application money transferred to Share Capital Account.
(3) Allotment money received for 22,000 shares at Rs. 30 per share.
(4) First Call money received for 22,000 shares at Rs. 20 per share.
(5) Second and Final Call money received for 22,000 shares at Rs. 30 per share. Quick Tip: In share issue transactions, all application money first goes to the Application Account, and upon allotment, it is transferred to the Share Capital Account.

Question 4(b):

Write the features of Computerized Accounting System.

Correct Answer:

View Solution

Features of a Computerized Accounting System:

Automation: The entire process of accounting, from recording transactions to generating financial statements, is automated.
Accuracy: Reduces errors in calculations and data entry, ensuring precise financial records.
Speed: Transactions are processed much faster compared to manual accounting.
Scalability: Can handle large volumes of financial data efficiently.
Integration: Easily integrates with other business applications such as inventory management, payroll, and taxation.
Security: Provides restricted access to authorized users, ensuring data confidentiality.
Backup and Recovery: Enables automatic backups, reducing the risk of data loss.
Data Analysis and Reporting: Generates real-time reports and financial analysis for better decision-making.
Multi-User Access: Allows multiple users to work simultaneously without data conflicts.
Compliance with Accounting Standards: Ensures adherence to financial regulations and tax laws. Quick Tip: A Computerized Accounting System improves efficiency by reducing human intervention and increasing accuracy in financial transactions.

Question 5(a):

Suresh, Naresh, and Paresh were equal partners. On 31st March, 2019, their Balance Sheet
was as follows:

Balance Sheet as on 31st March, 2019

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Land and Building	2,00,000
Suresh	2,50,000	Furniture	1,50,000
Naresh	1,00,000	Debtors	1,50,000
Paresh	1,00,000	Cash	1,00,000
Sundry Creditors	1,50,000
Total	6,00,000	Total	6,00,000

Suresh died on 30th June, 2019, and the following adjustments were agreed upon:
1. Furniture to be adjusted to its market price of ₹1,70,000.
2. Land and building to be depreciated by 10%.
3. Provide R.D.D. at 5% on debtors.
4. The profit up to the date of death of Suresh is to be calculated on the basis of average profit of last year,
which was ₹90,000.

(i). Profit and Loss Adjustment Account (Revaluation Account)

Correct Answer:

View Solution

Particulars	Dr. (₹)	Particulars	Cr. (₹)
To Land and Building Depreciation (10%)	20,000	By Furniture Appreciation	20,000
To R.D.D Increase (5% on ₹1,50,000)	7,500	By Profit Transferred:
To Profit Transferred:	7,500	Suresh (1/3)	2,500
		Naresh (1/3)	2,500
		Paresh (1/3)	2,500
Total	35,000	Total	35,000

Question 5(a):

(ii). Partners’ Capital Account

Correct Answer:

View Solution

Particulars	Suresh (₹)	Naresh (₹)	Paresh (₹)
To Executor of Suresh A/c (Final Settlement)	2,87,500	0	0
By Balance b/d	2,50,000	1,00,000	1,00,000
By Revaluation Profit	2,500	2,500	2,500
By Profit Share (₹90,000 × 1/3)	30,000	0	0
Total	2,87,500	1,02,500	1,02,500

Question 5(a):

(iii). Adjusted Balance Sheet of the Continuing Firm as on 30th June, 2019

Correct Answer:

View Solution

Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	1,50,000	Land and Building (90%)	1,80,000
Executor of Suresh A/c	2,87,500	Furniture	1,70,000
Capital Accounts:		Debtors (After 5% R.D.D)	1,42,500
Naresh	1,02,500	Cash	1,47,500
Paresh	1,02,500
Total	6,42,500	Total	6,42,500

Explanation of Adjustments:

Profit and Loss Adjustment Account: Reflects revaluation of assets and liabilities.
Partners’ Capital Account: Adjusts each partner’s capital, including profit up to the date of death and revaluation profit.
Balance Sheet: Shows the adjusted financial position of the firm after the death of Suresh. Quick Tip: At the time of a partner's death, revaluation of assets and settlement of the deceased partner’s share must be made before preparing the new balance sheet.

Question 5(b):

Convert the following Trading and Profit and Loss Account into Vertical Income Statement for the year ended 31^st March, 2020.

Trading and Profit and Loss Account (for the year ended 31^st March, 2020)

Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	50,000	By Sales	6,00,000
To Purchases	4,50,000	By Closing Stock	1,50,000
To Carriage	20,000
To Direct Expenses	30,000
To Wages	50,000
To Gross Profit c/d	1,50,000
Total	7,50,000	Total	7,50,000

Particulars	Amount (₹)	Particulars	Amount (₹)
To Office Expenses	62,500	By Gross Profit b/d	1,50,000
To Finance Expenses	15,000
To Selling Expenses	50,000
To Net Profit c/d	22,500
Total	1,50,000	Total	1,50,000

Correct Answer:

View Solution

Vertical Income Statement for the year ended 31^st March, 2020

Particulars	Amount (₹)
Revenue:
Sales	6,00,000
Add: Closing Stock	1,50,000
Total Revenue	7,50,000
Less: Cost of Goods Sold (COGS)
Opening Stock	50,000
Purchases	4,50,000
Carriage	20,000
Direct Expenses	30,000
Wages	50,000
Total COGS	6,00,000
Gross Profit	1,50,000
Less: Operating Expenses
Office Expenses	62,500
Finance Expenses	15,000
Selling Expenses	50,000
Total Operating Expenses	1,27,500
Net Profit	22,500

Explanation of Vertical Income Statement:

Revenue Section: Includes Sales and Closing Stock.
Cost of Goods Sold (COGS): Includes all direct expenses such as purchases, wages, and carriage.
Gross Profit: Difference between total revenue and COGS.
Operating Expenses: Includes office, finance, and selling expenses.
Net Profit: The final profit after deducting all expenses. Quick Tip: A Vertical Income Statement presents financial data in a step-wise manner, making it easy to analyze profitability.

Question 6:

Dr. Anish Korgaonkar started practice as a Medical Practitioner on 1st April, 2019. He
provides the Receipts and Payments Account for the year ended 31st March, 2020. Based on the
adjustments, prepare the Income and Expenditure Account and Balance Sheet as on 31st March,
2020.

6(a). Income and Expenditure Account for the year ended 31st March, 2020

Correct Answer:

View Solution


Expenditure	Amount (₹)	Income	Amount (₹)
To Drugs Consumed (₹14,000 - ₹2,000)	12,000	By Visit Fees (₹20,000 + ₹4,000)	24,000
To Salaries (₹24,000 + ₹2,000 O/S)	26,000	By Dispensary Receipts (₹60,000 + ₹1,000)	61,000
To Rent (₹8,000 + ₹1,000 O/S)	9,000	By Sundry Receipts	10,000
To Conveyance (₹8,000 - 40% domestic)	4,800
To Stationery	1,000
To Electrical Charges	10,000
To Journals	1,000
To Depreciation on Furniture (8% of ₹16,000)	1,280
To Depreciation on Equipment (₹1,000)	1,000
To Surplus (Net Income)	28,920	Total	95,720

Question 6(b):

Balance Sheet as on 31st March, 2020

Correct Answer:

View Solution

Liabilities	Amount (₹)	Assets	Amount (₹)
Outstanding Rent	1,000	Cash Balance	4,000
Outstanding Salaries	2,000	Visit Fees Receivable	4,000
Capital (₹50,000 + ₹28,920 Net Income)	78,920	Dispensary Receipts Receivable	1,000
		Drugs Stock	2,000
		Furniture (₹16,000 - ₹1,280 Depreciation)	14,720
		Equipment (₹20,000 - ₹1,000 Depreciation)	19,000
Total	81,920	Total	81,920

\hrule

Explanation of Adjustments:

Receipts in Arrears: Visit fees Rs. 4,000 and dispensary receipts Rs. 1,000 are added to income.
Outstanding Expenses: Salaries Rs. 2,000 and Rent Rs. 1,000 added to liabilities and expenditure.
Stock of Drugs: Rs. 2,000 is deducted from drug expenses.
Depreciation: Furniture is depreciated at 8% (Rs. 1,280), Equipment is depreciated by Rs. 1,000.
Conveyance: 40% used for personal purposes is deducted from total.

%Quicktip Quick Tip: An Income and Expenditure Account records only revenue items, while a Balance Sheet records assets and liabilities.

Question 7:

Mama and Kaka are partners in a partnership firm sharing profits and losses equally. You are
required to prepare the Profit and Loss Account for the year ended 31st March, 2019, and the
Balance Sheet as on that date.

7(a). Profit and Loss Account for the year ended 31st March, 2019

Correct Answer:

View Solution

Expenditure	Amount (₹)	Income	Amount (₹)
To Salaries	10,000	By Gross Profit	69,000
To Export Duty	5,000	By Interest Received	3,000
To Interest on Loan (₹60,000 × 10% × 6/12)	3,000
To Insurance (₹30,000 - ₹7,500 Prepaid)	22,500
To Depreciation on Land & Building (10% of ₹1,00,000)	10,000
To Depreciation on Furniture (5% of ₹80,000)	4,000
To Bad Debts Written Off	2,000
To R.D.D. (5% of ₹50,000)	2,500
To Net Profit c/d	13,000	Total	72,000

Question 7(b):

Partners’ Capital Account

Correct Answer:

View Solution

Particulars	Mama (₹)	Kaka (₹)
To Balance c/d	1,06,500	1,06,500
By Balance b/d	1,00,000	1,00,000
By Net Profit (₹13,000 ÷ 2)	6,500	6,500
Total	1,06,500	1,06,500

Question 7(c):

Balance Sheet as on 31st March, 2019

Correct Answer:

View Solution

Liabilities	Amount (₹)	Assets	Amount (₹)
10% Bank Loan	60,000	Land & Building (After 10% Depreciation)	90,000
Bills Payable	16,000	Furniture (After 5% Depreciation)	76,000
Capital Accounts:		Debtors (₹52,000 - ₹2,000 Bad Debts - ₹2,500 R.D.D.)	47,500
Mama	1,06,500	Closing Stock	69,000
Kaka	1,06,500	Prepaid Insurance	7,500
Total	2,89,000	Total	2,89,000

Explanation of Adjustments:

Gross Profit: Given as Rs. 69,000.
Prepaid Insurance: Rs. 7,500 deducted from Insurance Expense.
Depreciation: 10% on Land \& Building (Rs. 10,000) and 5% on Furniture (Rs. 4,000).
Bad Debts Written Off: Rs. 2,000 deducted from debtors.
R.D.D.: 5% on Sundry Debtors after Bad Debts (Rs. 2,500).
Closing Stock: Rs. 69,000 included in Balance Sheet.
Quick Tip: In a partnership, profits are divided equally unless stated otherwise in the agreement.

Maharashtra Board Class 12 Book Keeping and Accountancy (50-J-897) Question Paper 2024 Available- Download Solution PDF with Answer Key

Maharashtra Board Class 12 Book Keeping and Accountancy( 50-J-897) Question Paper 2024 with Solutions

Maharashtra Board Class 12 Book Keeping and Accountancy( 50-J-897) Question Paper 2024 with Solutions

Question 1(a):

Ask your question

Also Check

Maharashtra Board Class 12 Book Keeping and Accountancy (50-J-897) Question Paper 2024 Available- Download Solution PDF with Answer Key

Maharashtra Board Class 12 Book Keeping and Accountancy(  50-J-897) Question Paper 2024 with Solutions

Maharashtra Board Class 12 Book Keeping and Accountancy(  50-J-897) Question Paper 2024 with Solutions

Question 1(a):

Ask your question

Also Check

Maharashtra Board Class 12 Book Keeping and Accountancy( 50-J-897) Question Paper 2024 with Solutions

Maharashtra Board Class 12 Book Keeping and Accountancy( 50-J-897) Question Paper 2024 with Solutions