ISC (Commerce) Class 12 - CISCE Important Questions for Accounts

Mink & Sons run a bakery that sells sandwiches, cookies, muffins and pastries. The raw material is sourced from a well-known supplier and fresh items are prepared every day for the customers. The cost of each item also includes the cost of cutlery and paper napkins.

During the festive season, the bakery gives small discounts to its customers.

The spread sheet given below is a summary of its Purchases, Sales and Unsold Stock for the month of October 2023:

Based on the above transactions and the information given in the spreadsheet, answer the following questions:

1. Write the formula to calculate the total sales of sandwiches in cell H2.
2. Give the formula to calculate the cost of cookies sold in cell I3
3. Write the formula to calculate the cost of unsold stock of muffins in cell J4.
4. 1. Give the formula to calculate the festival discount on the sale of Pastries in cell G5.
   2. Calculate the amount of festival discount per pastry in cell G5.

How is index hunting helpful?

Give any two measures to achieve index hunting.

Give the difference between data and information along with an example.

Give any two basic commands of SQL.

Give the adjusting entry and closing entry for interest on a loan taken by a partner from the firm when the firm follows the Fluctuating Capital Method.

Ruma and Neha started business on 1^st April, 2021, with fixed capitals of ₹ 4,00,000 and ₹ 3,50,000 respectively. On 1^st October, 2021, they decided that their total capital (fixed) should be ₹ 8,00,000, in their profit-sharing ratio of 3 : 2.

Accordingly, they introduced extra capital or withdrew excess capital.

Their partnership deed provided for the following:

1. Interest on capital to be allowed @ 10% per annum.
2. A monthly salary of ₹ 1,000 each to be allowed to both Ruma and Neha.
3. Interest on drawings to be charged @ 18% per annum.

Ruma had withdrawn ₹ 12,000 during the year. As per the deed, the interest on her drawings, amounting to ₹ 1,080 to be charged from her.

During the year ending 31^st March, 2022, the firm earned a net profit of ₹ 2,04,000 before charging a manager’s commission of ₹ 20,400 and interest on a bank loan of ₹ 4,000.

You are required to:

1. Give the journal entry to close Ruma’s Drawings Account.
2. Prepare a Profit and Loss Appropriation Account for the year ending 31^st March, 2022.

Tanuj and Ravi are partners in a business with capital balances of ₹ 1,50,000 and ₹ 1,00,000 respectively on 1^st April, 2022.

Their partnership deed contains the following clauses:

1. Interest on capital to be allowed @ 10% per annum.
2. Interest on drawings to be charged @ 4% per annum.
3. Tanuj to be allowed a commission @ 5% of the trading profit after charging his commission.
4. Ravi to be allowed an annual commission of ₹ 10,000.

Additional information:

During the year 2022-23:

• Tanuj withdrew ₹ 6,000 at the end of every quarter.
• The trading profit of the firm was ₹ 84,000.
• The firm's divisible profit was ₹ 46,360.
• On 1st October, 2022, Ravi permanently withdrew ₹ 20,000 from his capital.

You are required to do the following:

1. Pass the journal entries to record:
   
   1. The permanent withdrawal made by Ravi.
   2. The distribution of the divisible profits between the partners.
   3. The adjusting entry for commission due to Ravi.
2. Calculate the interest on capital allowed to:
   1. Tanuj
   2. Ravi
3. Calculate the commission allowed to Tanuj.
4. Calculate the interest on drawings charged from Tanuj.

The commission due to a partner is closed by ______.

Deb, Riza and Ved entered into a partnership on 1st July, 2023, without any agreement as to profit sharing, except that Deb guaranteed that Ved’s share of profit, after considering interest into account, would not be less than ₹ 8,500 per annum. The initial capital provided by the partners was as follows:

In addition to the above capital, Deb and Riza gave temporary loans to the partnership firm as follows:

• Deb advanced ₹ 18,000 on 1st October, 2023, and was repaid on 1st April following.
• Riza advanced ₹ 40,000 on 1st September, 2023, and it was repaid, along with interest, on 1st December, 2023.

The profit of the firm for the year ended 31st March, 2024, before providing for any interest, was ₹ 21,000.

You are required to prepare for the year 2023-24:

1. Profit and Loss Appropriation Account.
2. Riza’s Loan Account.
3. Ved’s Capital Account.

Krish and Tarun are partners in a firm with capitals of ₹ 40,000 and ₹ 60,000. As per their partnership deed:

1. Interest on capital is to be allowed to them @ 5% per annum.
2. Profits are to be shared in the ratio of 3 : 2.

The trading profits for the year 2023-24 was ₹ 3,600. You are required to calculate the interest on capital allowed to the partners in the year 2023-24.

Deepa, Ridhi and Adit are partners in a firm. Following are the particulars of their Capital and Drawings Accounts for the year 2023-24:

According to their partnership deed:

• Profits were to be shared in the ratio of 2 : 2 : 1
• Interest on capital to be allowed @ 5% per annum
• Interest on drawings to be charged @ 8% per annum

The trading profits of the firm for the financial year 2023-24 were ₹ 50,000, before considering the discrepancy of having recorded the inventory at ₹ 10,000 when its realisable value was ₹ 4,000.

1. You are required to give:
   1. The adjusting entry and closing entry for Drawings made by Ridhi
   2. The adjusting entry and closing entry for Interest on Drawings
   3. The adjusting entry and closing entry for Interest on Capital
   4. The entry to close the Adit’s Loan A/c
2. The accountant of the firm distributed the divisible profit among the partners in the ratio 2 : 1 : 2 instead of in the ratio mentioned in the deed.

You are required to rectify the lapse in accounting by passing a single adjusting entry.

Give the formula for valuation of goodwill by the Capitalisation of Average Profit Method.

Give the formula used for calculating goodwill of a partnership firm by the Weighted Average Profit Method.

On 1^st April, 2020, Anish started a business with a capital of ₹ 3,00,000.
During the three years ending 31^st March, 2023, the results of his business were:

From the year 2020-21 to the year 2022-23, Anish withdrew ₹ 30,000 from the firm for his personal use.
On 1st April, 2023, he admitted Danish into partnership on the following terms:

1. Goodwill of the firm to be valued at two years’ purchase of the average profits of the last three years.
2. Danish to have a `1/4` share in the future profits.
3. Danish’s capital is to be equal to `1/4` of Anish’s capital determined on 1^st April, 2023, after the goodwill compensation has been taken into account.

You are required to give:

1. The formula to calculate goodwill by the Average Profit Method.
2. The value of self-generated goodwill of the firm.
3. Danish’s capital contribution.

Choose the components required to calculate goodwill of a firm by capitalisation of average profits method.

P: The normal profits of a similar firm in the industry

Q: The average profits of the firm

R: The number of years purchase

S: The actual capital employed in the business

Aman and Vinod are partners in a firm. Their Balance Sheet showed:

Gross Debtors: ₹ 1,52,000

Provision for doubtful debts: ₹ 1,000

On Milin’s admission as a new partner, the assets and liabilities are to be revalued as:

1. Unaccounted accrued income of ₹ 10,000 to be provided for.
2. Bills Payable of ₹ 10,000 which were recorded, to be discharged at a rebate of 10%.
3. Debtors of ₹ 2,000 to be irrecoverable.
4. Provision for doubtful debts to be provided @ 2% of the debtors.

What is the net effect of revaluation of assets and liabilities?

Asif and Ravi are partners in a firm, sharing profits and losses in the ratio of 3 : 2. Their fixed capitals as on 1st April, 2016, were ₹ 6,00,000 and ₹ 4,00,000, respectively.

Their partnership deed provides for the following:

1. Partners are to be allowed interest on their capital @ 10% per annum.
2. They are to be charged interest on drawings @ 4% per annum.
3. Asif is entitled to a salary of ₹ 2,000 per month.
4. Ravi is entitled to a commission of 5% of the correct net profit of the firm before charging such commission.
5. Asif is entitled to a rent of ₹ 3,000 per month for the use of his premises by the firm.

The net profit of the firm for the year ended 31st March, 2017, before providing for any of the above clauses
was ₹ 4,00,000.

Both partners withdrew ₹ 5,000 at the beginning of every month for the entire year.

You are required to prepare a Profit and Loss Appropriation Account for the year ended 31^st March, 2017.

Hint: Commission 5% on ₹ 3,64,000 = ₹ 18,200.

Rita, Nina and Mita are partners in a firm sharing profits and losses in the ratio of 3:2:1. Mita dies on 1st April, 2017. On the date of her death, it was decided to value goodwill on the basis of two year’s purchase of
weighted average profits of the firm for the last three years.

The profits of the last three years and weights assigned were:

You are required to:

1. Calculate the firms goodwill on the date of Mita’s death (show working formula).
2. Pass the necessary journal entry to credit Mita’s capital account with her share of goodwise.

Anita and Binita are partners in a firm. Anita had taken a loan of ₹ 15,000 from the firm. How will Anita’s loan be closed in the event of dissolution of the firm?