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

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. Mention any two important documents of a company. [1 marks]
  2. A company forfeited 800 shares out of 5,000 shares of Rs. 100 each issued at a 10% premium, due to non-payment of first & final call money of Rs. 30. These shares were subsequently re-issued at Rs. 85 per share as fully paid up. Required — entries for share final call, forfeiture, re-issue and transfer. [2+1+1+1] [5 marks]
  3. Trial balance of a company limited as on last year — Debit: Opening stock 150,000; Wages 40,000; Purchase 450,000; Rent 30,000; Interest on bank loan 10,000; Salaries 60,000; Furniture 100,000; Debtors 80,000; Bad debts 10,000; Carriage 5,000; Prepaid insurance 15,000; Machinery 200,000; Cash 25,000; Goodwill 40,000. Credit: Share capital 300,000; 10% Bank loan 150,000; Commission 20,000; Creditors 80,000; P&L account 50,000; Sales 615,000 (Total 1,215,000). Additional: (a) Stock at close Rs. 210,000; (b) Outstanding wages Rs. 5,000; (c) Prepaid insurance expired Rs. 10,000; (d) Provision for... [8 marks]
  4. Write the meaning of called-up capital. [1 marks]
  5. (a) X Company purchased the following assets of Y Company at an agreed price of Rs. 550,000: Machinery Rs. 300,000; Debtors Rs. 100,000; Inventories Rs. 150,000. X paid the purchase price by issuing shares of Rs. 100 each at a 10% premium. Required — entry for purchase of the above assets by issuing shares. [2] (b) P Company Ltd. issued 5,000, 9% debentures of Rs. 100 each at a 10% discount, redeemable at a 10% premium after 5 years. Required — journal entries for issue and redemption of debentures. [1+1+1] [5 marks]
  6. Balance Sheet of A Ltd. (5th year / 6th year) — Liabilities: Share capital 200,000/300,000; Debenture 150,000/130,000; Creditors 140,000/150,000; Bank overdraft 120,000/110,000; Retained earnings 140,000/160,000. Assets: Furniture 200,000/260,000; Land 130,000/145,000; Stock 180,000/200,000; Debtors 130,000/120,000; Cash 110,000/125,000 (Total 750,000/850,000). Income statement (6th year): Sales 7,800,000; less COGS 6,700,000; gross margin 1,100,000; less operating expenses — depreciation 20,000, premium on redemption of debenture 1,000, loss on sale of furniture 5,000 (book value Rs. 20,000);... [8 marks]
  7. List out any two limitations of financial statements. [1 marks]
  8. Pashupati Co. Ltd. as on 31st March 2021: Purchase 275,000; Insurance 24,000; Rent 10,000; Opening stock 80,000; Wages 175,000; Sales 530,000; Interest received 5,000; Salary 36,000; General expenses 20,000; Selling expenses 15,000. Additional: (i) Closing stock — market price Rs. 80,000, cost price Rs. 70,000; (ii) Depreciation on fixed assets Rs. 10,000; (iii) Provision for taxation Rs. 7,000. Required — (a) Trading Account; (b) Profit and Loss Account. [2+3] [5 marks]
  9. Cost information for manufacturing a product: Direct material 20,000 kg @ Rs. 10 per kg; Direct labour cost 80% of material cost; Factory overhead Rs. 64,000; Administrative overhead Rs. 42,400. For submitting a tender, the following estimations were made: estimated cost of materials Rs. 30,000; direct labour Rs. 24,000; factory overhead absorbed on the basis of direct labour; administrative overhead absorbed on the basis of factory cost; a profit of 20% on selling price is estimated. Required — a statement of cost and a tender sheet. [3+5] [8 marks]
  10. Write the meaning of contract costing. [1 marks]
  11. Trial balance of a company Ltd. as on last year ended — Debit: Purchases 900,000; Opening stock 100,000; Wages 50,000; Rent 40,000; Salaries 24,000; Cash 86,000; Fixed assets 200,000; Debtors 100,000. Credit: Sales 1,200,000; Creditors 80,000; Share capital 200,000; P&L account 20,000 (Total 1,500,000). Additional: (1) Depreciation on fixed assets 15%; (2) Proposed dividend 12%. Required — 12-column worksheet. [5] [5 marks]
  12. Write the meaning of semi-variable overhead. [1 marks]
  13. Give the meaning of cost accounting and mention any three objectives of cost accounting. [5] [5 marks]
  14. Give the meaning of purchase order. [1 marks]
  15. (a) Write about centralized store. [2] (b) A manufacturing company: Beginning inventory 2,000 units @ Rs. 100; Purchases — Mar 02: 3,000 @ Rs. 110; Jun 10: 4,000 @ Rs. 120; Aug 15: 2,500 @ Rs. 130; Dec 22: 1,500 @ Rs. 150. During the year, 10,000 units were issued (sold). Required — cost of goods sold and cost of closing stock under the weighted average method using the periodic inventory system. [3] [5 marks]
  16. Mention any two disadvantages of the time-rate system of wage payment. [1 marks]
  17. (a) The standard time to produce each unit of output is 4 hours. A worker produced 200 units during the month; the wage rate per hour is Rs. 80. Required — total wages for the month. [2] (b) From cost and financial accounting: (a) net profit as per financial account Rs. 77,000; (b) over-valuation of opening stock in cost account Rs. 20,000; (c) administrative expenses under-absorbed in cost account Rs. 30,000; (d) dividend received recorded in financial account Rs. 20,000. Required — cost reconciliation statement. [3] [5 marks]
  18. Define account masters. [1 marks]
  19. Write in brief the uses of the computer in accounting. [5] [5 marks]
  20. Prepare the adjustment entry for depreciation on furniture Rs. 20,000. [1 marks]
  21. Find the cash collection from sales if sales is Rs. 600,000 during the year and debtors increased by Rs. 40,000. [1 marks]
  22. If annual consumption is 7,000 units and the number of orders is 5, find the economic order quantity (EOQ). [1 marks]