Class 12 Accounting Model Questionn Model Question (With Solution)

1.

State the meaning of private company.

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2.

Write the meaning of cumulative preference share.

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3.

Give any two items of current asset.

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4.

Write the meaning of Cost Accounting.

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5.

Classify overhead according to controllability.

6.

Give the meaning of periodic inventory system.

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7.

State any two advantages of time wage system.

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8.

Mention any two disadvantages of computer system in accounting.

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9.

Prepare adjusting entry of commission earned but not received Rs. 15,000.

Commission Receivable A/c Dr.
To Commission Income A/c

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10.

Following information are given:

Net profit =
Non-operating expenses =
Decrease in current liabilities =

Required: Cash from operating activities under indirect method.

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11.

If ordering cost per order is Rs. 300, carrying cost per unit is Rs. 2 and annual requirements are 30,000 units, find out economic order quantity.

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12.

A Company Ltd. invited application for shares of Rs. 100 each at premium, payable as under:

On application: Rs. 30
On allotment: Rs. 40
On first and final call: Rs. 40

Applications were received for shares. The board of directors decided to allot applicants in full, some applicants partially, and some applicants were rejected. It was decided to utilize excess application money as part payment of allotment. All money was duly received except a shareholder holding 200 shares failed to pay first and final call money.

Required (Entries for):

Share application
Share allotment
Share first and final call

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13.

A company purchased the following assets at an agreed price of Rs.:

a.

A company purchased the following assets at an agreed price of Rs.:

Plant: Rs. 520,000

Land and Building: Rs. 730,000

The company paid the agreed price by issuing shares of Rs. 100 each at 20% discount.

Required: Entries for purchase of assets and issue of share.

b.

A Co. Ltd. issued debentures of Rs. each at a premium of redeemable at a premium of 10% after 5 years.

Required: Journal entries for issue and redemption of debentures.

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14.

Following information was taken from a company as on 31st Ashad, last year is given as:

Additional Information:

Proposed dividend =
Prepaid insurance expired =

Required:
Profit and Loss account and Profit and Loss Appropriation account

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15.

The Trial Balance of a Co. Ltd. as on 31st Chaitra last year is given below:

Additional Information:

Salary payable =
Unearned income earned =

Required: Worksheet

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16.

Differentiate between cost accounting and financial accounting.

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17.

a.

State the meaning of material classification with suitable examples.

b.

Following are the store transactions for the month of 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 method under periodic inventory system.

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18.

a.

The time allowed to produce 80 units of output is 2 hours. A worker produced 400 units during the month. Wages rate per hour is Rs. 800.

Required: Wages of a worker

b.

On reconciliation of Financial and Cost Accounting, following facts were disclosed:

Profit shown by cost account Rs. 420,000

Works overhead under recorded in cost account Rs. 25,000

Office overhead under recovered in financial account Rs. 15,000

Profit on sale of fixed assets shown in financial account Rs. 5,000

Required: Cost reconciliation statement

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19.

Explain the features of accounting software.

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20.

The Trial Balance of a company Ltd. as on 31st Chaitra last year is given below:

Particulars	Debit Rs.	Particulars	Credit Rs.
Opening inventory	60,000	Sales	520,000
Sales commission	40,000	Creditors	30,000
Purchases	350,000	Other service revenue	40,000
Stationery	9,000	10% Debentures	100,000
Rent	20,000	Share capital	500,000
Salary	60,000	Interest on investments	15,000
Interim Dividend	8,000	Retained earnings	40,000
Equipment	100,000
Prepaid insurance	10,000
Cash	17,000
Biologic assets	60,000
10% investment	150,000
Advertisement expense	10,000
Land and building	300,000
Account receivables	41,000
Interest expenses	10,000
Total	1,245,000	Total	1,245,000

Additional Information:

Closing inventory – Rs. 120,000
Prepaid insurance was expired to Rs. 8,000.
Depreciation charged on equipment by 10% and on building by 5%.
Provision for income tax @ 25%.

Required:

Profit or Loss statement based on NFRS
Statement of financial position based on NFRS

Or,

Multi step income statement
Statement of financial position

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21.

The Balance Sheet of a company on 31st December were given below:

Liabilities	Assets
Year I (Rs.)	Year II (Rs.)	Year I (Rs.)	Year II (Rs.)
Share capital 300,000	300,000	Fixed Assets 250,000	325,000
Retained earnings 20,000	60,000	Inventory 10,000	35,000
Creditors 20,000	30,000	Debtors 40,000	12,500
Expense payable 25,000	17,500	Bank balance 65,000	35,000
Total 365,000	407,500	Total 365,000	407,500

Additional Information:

Sales – Rs. 300,000
Cost of goods sold – Rs. 180,000
Sales of fixed assets – Rs. 25,000
Purchase of fixed assets – Rs. 110,000
Dividend paid – Rs. 30,000
Operating expense – Rs. 40,000

Required:
Cash flow statement using direct method

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22.

The opening and closing balance of inventories are as below:

Inventories	Opening	Closing
Finished goods	Rs. 40,000	Rs. 45,000
Work-in-progress	Rs. 25,000	Rs. 20,000
Raw materials	Rs. 40,000	Rs. 50,000

The other information provided by the company for the month ended was as follows:

Purchase of raw material – Rs. 350,000
Direct labor cost – Rs. 420,000
Profit – 25% on sales
Factory overhead – 50% of direct labor cost
Selling expenses – 12% of factory cost
Administration overhead – 15% of factory cost

Required: Cost sheet

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