National Examinations Board Grade 12 Accounting II — Model Question 2079 (2023) (Set A)

National Examinations Board · Accounting (Grade 12) · 2079 (2023) BS · Model Question — 22 questions — a free old question paper on Goodone.club’s exam-paper archive.

  1. State the meaning of a private company. [1 marks]
  2. A Company Ltd. invited applications for 30,000 shares of Rs. 100 each at a 10% premium, payable: on application Rs. 30, on allotment Rs. 40, on first & final call Rs. 40. Applications were received for 42,000 shares. The board allotted 25,000 applicants in full, 10,000 applicants 50%, and rejected 7,000 applicants. Excess application money was used towards part payment of allotment. All money was duly received except a shareholder holding 200 shares who failed to pay the first & final call. Required — Journal entries for: (i) share application, (ii) share allotment, (iii) share first & final c... [5 marks]
  3. The Trial Balance of a company Ltd. as on 31st Chaitra last year is given below. Additional information: (i) Closing inventory: Rs. 120,000. (ii) Prepaid insurance expired: Rs. 8,000. (iii) Depreciation on equipment at 10% and building at 5%. (iv) Provision for income tax at 25%. Required: (a) Profit or Loss statement based on NFRS. (b) Statement of financial position based on NFRS. [4+4] OR (a) Multi-step income statement. (b) Statement of financial position. [8 marks]
  4. Write the meaning of cumulative preference share. [1 marks]
  5. (a) A company purchased the following assets at an agreed price of Rs. 1,100,000: Plant Rs. 520,000; Land & Building Rs. 730,000. The agreed price was paid by issuing shares of Rs. 100 each at a 20% discount. Required — entries for purchase of assets and issue of shares. [1+1] (b) A Co. Ltd. issued 8,000, 10% debentures of Rs. 1,000 each at a premium of 5%, redeemable at a premium of 10% after 5 years. Required — journal entries for issue and redemption of debentures. [1.5+1.5] [5 marks]
  6. The Balance Sheet of a company on 31st December is given below. Additional information: (i) Sales: Rs. 300,000. (ii) Cost of goods sold: Rs. 180,000. (iii) Sales of fixed assets: Rs. 25,000. (iv) Purchase of fixed assets: Rs. 110,000. (v) Dividend paid: Rs. 30,000. (vi) Operating expense: Rs. 40,000. Required: Cash flow statement using the direct method. [4+1+2+1] [8 marks]
  7. Give any two items of current assets. [1 marks]
  8. Following information was taken from a company as on 31st Ashad last year and is given below. Additional information: (a) Proposed dividend: Rs. 90,000. (b) Prepaid insurance expired: Rs. 6,000. Required: Profit and Loss account and Profit and Loss Appropriation account. [3+2] [5 marks]
  9. The opening and closing balances of inventories are given below. Other information provided by the company for the month: - Purchase of raw material: Rs. 350,000. - Direct labour cost: Rs. 420,000. - Profit: 25% on sales. - Factory overhead: 50% of direct labour cost. - Selling expenses: 12% of factory cost. - Administration overhead: 15% of factory cost. Required: Cost sheet. [8] [8 marks]
  10. Write the meaning of cost accounting. [1 marks]
  11. The Trial Balance of a Co. Ltd. as on 31st Chaitra last year is given below. Additional information: (i) Salary payable: Rs. 6,000. (ii) Unearned income earned: Rs. 4,000. Required: Worksheet. [5] [5 marks]
  12. Classify overhead according to controllability. [1 marks]
  13. Differentiate between cost accounting and financial accounting. [5] [5 marks]
  14. Give the meaning of periodic inventory system. [1 marks]
  15. (a) State the meaning of material classification with suitable examples. [2] (b) Store transactions for May: May 1 beginning inventory 150 units @ Rs. 20; May 2 purchased 400 units @ Rs. 25; May 20 purchased 650 units @ Rs. 30; sales during May 850 units. Required — cost of ending inventory and cost of goods sold using FIFO under the periodic inventory system. [3] [5 marks]
  16. State any two advantages of the time-wage system. [1 marks]
  17. (a) The time allowed to produce 80 units of output is 2 hours. A worker produced 400 units during the month. The wage rate per hour is Rs. 800. Required — wages of the worker. [2] (b) On reconciliation of financial and cost accounting: (i) profit shown by cost account Rs. 420,000; (ii) works overhead under-recorded in cost account Rs. 25,000; (iii) office overhead under-recovered in financial account Rs. 15,000; (iv) profit on sale of fixed assets shown in financial account Rs. 5,000. Required — cost reconciliation statement. [3] [5 marks]
  18. Mention any two disadvantages of a computer system in accounting. [1 marks]
  19. Explain the features of accounting software. [5] [5 marks]
  20. Prepare the adjusting entry for commission earned but not received Rs. 15,000. [1 marks]
  21. Given: Net profit Rs. 18,000; Non-operating expenses Rs. 6,000; Decrease in current liabilities Rs. 5,000. Required: Cash from operating activities under the indirect method. [1 marks]
  22. If ordering cost per order is Rs. 300, carrying cost per unit is Rs. 2 and the annual requirement is 30,000 units, find the economic order quantity. [1 marks]