NEB Class 12 · Past paper
The complete NEB Class 12 2071 exam paper for Accountancy, all 22 questions with solved model answers.
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Mention any two differences between public limited company and private limited company.
Public Ltd. vs Private Ltd. company (any two): 1. Number of members: A private company has a minimum of 1 and a maximum of 101 (as restricted by its articles), whereas a public company needs a minimum of 7 members with no upper limit. 2....
Differentiate between equity shares and preference shares.
Equity shares vs Preference shares: Basis Equity shares Preference shares --------- Dividend Fluctuating rate, paid after preference Fixed rate, paid first Repayment of capital Repaid last, on winding up Repaid before equity Voting right...
Write the meaning of fixed assets and current assets.
Fixed assets are assets held on a long-term basis to be used in the operation of the business rather than for resale, for example land, building, machinery and furniture. They provide benefit over several years and are not meant to be co...
State any two limitations of ratio analysis.
Limitations of ratio analysis (any two): 1. Based on historical data: Ratios are computed from past financial statements, so they may not reflect the present or future position. 2. Ignores price level changes: Ratios do not adjust for in...
Write three differences between cost accounting and financial accounting.
Cost accounting vs Financial accounting: Basis Cost accounting Financial accounting --------- Purpose Ascertains cost per unit and controls cost Ascertains overall profit or loss and financial position Users Mainly internal management Ex...
Write the meaning of purchase order.
A purchase order is a written document prepared by the purchasing department and sent to a supplier requesting the supply of the materials described in it. It states the quantity, quality, rate, terms of delivery and payment for the good...
Clarify the meaning of perpetual inventory system.
A perpetual inventory system is a method of recording stores by which a continuous, up-to-date record of receipts, issues and balance of each item of material is maintained (through the Bin Card and Stores Ledger) so that the balance in ...
Write the meaning of time rate system of wage payment. Mention any two disadvantages of this system.
Time rate system is a method of wage payment in which a worker is paid wages on the basis of the time spent (hours, days or months) at work, irrespective of the quantity of output produced. Wages = Time worked $\times$ Rate per unit of t...
A company Ltd. issued 20,000 shares of Rs.100 each at a premium of 10%, payable as follows: on Application Rs.20; on Allotment (inclusive of premium) Rs.40; on First and Final call Rs.50. Applications were received for all the shares and all instalments were duly received. Required: (i) Entries for application (ii) Entries for allotment.
$$ \begin{aligned} \text{Premium} &= 10% \text{ of } \text{Rs.}100 \ &= \text{Rs.}10 \end{aligned} $$ Allotment Rs.40 includes premium Rs.10, so allotment towards capital = Rs.30. $$ \begin{aligned} \text{Application money} &= 20{,}000...
B company Ltd. issued 10,000 shares of Rs.50 each at a premium of 10%, payable: on Application Rs.15; on Allotment (inclusive of premium) Rs.25; on First and Final instalment Rs.15. Applications were received for 15,000 shares. Applicants for 4,000 shares were allotted fully, applicants for 9,000 shares were allotted 6,000 shares on pro-rata basis, and applicants for the remaining 5,000 shares were refunded. Excess application money was utilised towards allotment. 100 shares allotted (from the pro-rata category) to a shareholder were forfeited as he failed to pay the first and final call. Required: Journal entries for (i) Allotment (ii) First and final call (iii) Forfeiture.
$$ \begin{aligned} \text{Premium} &= 10% \text{ of } \text{Rs.}50 \ &= \text{Rs.}5 \end{aligned} $$ Allotment Rs.25 includes premium Rs.5, so allotment towards capital = Rs.20. Pro-rata: applicants for 9,000 shares are allotted 6,000 s...
A company Ltd. took over the following assets and liabilities of a Vendor Company at an agreed price of Rs.14,30,000: Debtors Rs.3,50,000; Equipments Rs.6,00,000; Furniture Rs.8,00,000; Inventories Rs.2,00,000; Creditors Rs.8,00,000; Loan Rs.3,00,000. The company paid the purchase price by issuing equity shares of Rs.100 each at 10% premium. Required: Entries for purchase of assets and liabilities.
A company Ltd. issued 10,000, 10% debentures of Rs.10 each at 10% discount, redeemable at 10% premium after 5 years. Required: Entries for issue and redemption of debenture.
The Trial Balance of a Ltd. Company as on 31 Chaitra 2068: Debit - Goodwill 70,000; Debtors 2,00,000; Machinery 7,00,000; Stationery 30,000; Bank Balance 1,00,000; Salary 2,00,000; Wages 50,000 (Total 13,50,000). Credit - Share capital 6,00,000; Sales 3,50,000; Reserve Fund 1,50,000; Creditors 2,00,000; Profit & Loss A/C 50,000 (Total 13,50,000). Additional information: (i) Depreciation on machinery 10% (ii) Wages payable Rs.5,000. Required: (i) Adjustment entries (ii) Work sheet.
Adjustments: $$ \begin{aligned} \text{Depreciation} &= 10% \text{ of } 7{,}00{,}000 \ &= \text{Rs.}70{,}000 \end{aligned} $$ Outstanding wages = Rs.5,000. Adjustment entries Particulars Dr (Rs.) Cr (Rs.) --------- Depreciation A/c .......
The Trial Balance of A Company Ltd. as on Ashad 31, 2068: Debit - Salaries & Wages 50,000; Director's Fees 2,000; Interest on Debentures 2,500; Auditor's Fees 3,250; Sundry Expenses 80,000; Discount on Shares 2,000; Cash at Bank 43,750; Sundry Debtors 70,000; Closing Stock 1,00,000; Investment 1,15,000; Vehicle 15,000; Furniture 2,500; Building 1,50,000 (Total 6,36,000). Credit - 10% Equity Share Capital (25,000 shares @ Rs.10) 2,50,000; 6% Debenture 50,000; Provision for Taxation (last year) 50,000; Sundry Creditors 27,500; P/L Appropriation A/C 5,000; Gross Profit 2,50,000; Interest on Investment 3,500 (Total 6,36,000). Additional: (i) Provide 10% depreciation p.a. on Fixed Assets (ii) Provide Rs.40,000 for tax liability for the year (iii) Dividend proposed @ 20% for the year (iv) Provide Rs.1,500 for interest receivable on investments. Required: (i) Profit and Loss Account (ii) Profit and Loss Appropriation Account (iii) Balance Sheet.
$$ \begin{aligned} \text{Depreciation} &= 10% \text{ of } (\text{Vehicle }15{,}000 + \text{Furniture }2{,}500 + \text{Building }1{,}50{,}000 = 1{,}67{,}500) \ &= \textbf{Rs.}16{,}750 \end{aligned} $$ Profit and Loss Account Dr Rs. Cr R...
Balance Sheet of XYZ Co. Ltd. as on 31 Chaitra: Liabilities - Capital 10,00,000; Reserve 2,00,000; Profit & Loss A/C 1,50,000; Debenture 3,00,000; Current Liabilities 2,60,000 (Total 19,10,000). Assets - Fixed Assets 12,00,000; Stock 4,50,000; Debtors 1,60,000; Cash 1,00,000 (Total 19,10,000). Additional: Cash Sales Rs.2,00,000; Credit Sales Rs.6,00,000. Required: (i) Quick ratio (ii) Debtors Turnover Ratio (iii) Debt Equity Ratio (iv) Fixed Assets Turnover Ratio (v) Return on Total Assets.
The following figures are extracted from the two years' Balance Sheet of a company. Share capital: 2,00,000 / 2,50,000; 10% Debentures: 70,000 / 40,000; Profit & Loss A/C: 30,000 / 60,000; Goodwill: 60,000 / 50,000; Reserve: 30,000 / 40,000 (Last year / Current year). Additional: (i) Dividend paid for current year Rs.15,000 (ii) Depreciation on machinery Rs.10,000 (iii) Machinery purchased during current year Rs.1,00,000. Required: (i) Funds from operation (ii) Funds flow statement.
(i) Funds From Operation Particulars Rs. ------ Closing balance of P&L A/c 60,000 Add: Transfer to Reserve (40,000 - 30,000) 10,000 Add: Goodwill written off (60,000 - 50,000) 10,000 Add: Depreciation on machinery 10,000 Add: Dividend pa...
Balance sheet of a company as on 31 Ashad (2067 / 2068): Liabilities - Share capital 8,00,000 / 9,00,000; Retained Earning 2,00,000 / 3,00,000; Bank Loan 2,00,000 / 1,00,000; Creditors 3,00,000 / 4,00,000. Assets - Machinery 7,00,000 / 9,00,000; Debtors 3,00,000 / 2,50,000; Stock 3,00,000 / 4,50,000; Cash 2,00,000 / 1,00,000. Additional: (i) Sales and cost of goods sold for the year were Rs.11,00,000 and Rs.7,30,000 (ii) Operating expenses Rs.1,90,000 (including depreciation Rs.50,000) (iii) Machinery sold for Rs.1,50,000 and new machinery purchased Rs.4,00,000 (iv) Dividend paid Rs.80,000. Required: Cash flow statement using direct method.
Working: Machinery A/c: $$ \begin{aligned} \text{Opening }7{,}00{,}000 + \text{Purchase }4{,}00{,}000 - \text{Depreciation }50{,}000 - \text{Book value of machine sold} &= \text{Closing }9{,}00{,}000 \ \text{so book value of machine sol...
Following information in respect of materials transactions during the month of Jestha 2068: Jestha 1 Opening balance 1,000 units @ Rs.10; Jestha 5 Issued 300 units; Jestha 8 Purchased 400 units @ Rs.12; Jestha 10 Issued 400 units; Jestha 12 Purchased 200 units @ Rs.11; Jestha 13 Return to store 50 units (issued from 8th Jestha); Jestha 18 Purchased 200 units @ Rs.10; Jestha 25 Issued 600 units; Jestha 30 Shortage on verification 20 units. Required: Store ledger under LIFO method.
Store Ledger (LIFO Method) (amounts in Rs.) Date Receipt (Qty/Rate/Amt) Issue (Qty/Rate/Amt) Balance ------------ Jes 1 Opening 1,000 @ 10 = 10,000 Jes 5 300 @ 10 = 3,000 700 @ 10 = 7,000 Jes 8 400 @ 12 = 4,800 700 @ 10; 400 @ 12 = 11,80...
Following information: Maximum consumption per day 200 units; Minimum consumption per day 100 units; Reorder period 10-15 days; Reorder quantity 1,500 units. Required: Maximum stock level.
Reorder Level = Maximum consumption $\times$ Maximum reorder period $$ \begin{aligned} &= 200 \times 15 \ &= 3{,}000 \text{ units} \end{aligned} $$ Maximum Stock Level = Reorder Level + Reorder Quantity - (Minimum consumption $\times$ M...
Following information: Standard output per hour 10 units; Wage rate per hour Rs.25; Actual worked hours 40. Required: Total wages of the worker.
Under the time rate system, wages depend on the time worked at the given hourly rate. Total wages = Hours worked $\times$ Rate per hour $$ \begin{aligned} &= 40 \times 25 \ &= \text{Rs.}1{,}000 \end{aligned} $$ (The standard output of 1...
A production unit showed the following details of its production cost for 2,000 units of the previous year: Direct materials Rs.50,000; Direct wages Rs.30,000; Factory overhead Rs.10,000; Administrative overhead Rs.16,000; Selling expenses Rs.3,000; Profit 20% of selling price. The unit wants to estimate the total cost and selling price for 1,000 units next year, estimating that cost of raw materials will increase by 20% and wages cost by 30%. Other overheads are to be allocated: factory overhead on the basis of direct wages, office overhead and selling expenses on the basis of factory cost. Required: (i) Cost sheet for previous year (ii) Tender sheet with selling price.
(i) Cost Sheet - Previous Year (2,000 units) Particulars Rs. ------ Direct materials 50,000 Direct wages 30,000 Prime Cost 80,000 Add: Factory overhead 10,000 Factory Cost 90,000 Add: Administrative overhead 16,000 Add: Selling expenses ...
Net profit as shown by Cost Account is Rs.20,500. On reconciliation with Financial Account, the following facts were disclosed (Cost Account / Financial Account): Direct wages 12,000 / 15,000; Factory Expenses 12,000 / 13,000; Admin Expenses 15,000 / 12,000; Stock valuation at close 25,000 / 22,000; Bank Interest -- / 1,000. Required: Reconciliation Statement between Cost and Financial Account Profit.
Reconciliation Statement (starting from Cost Profit) Particulars (+) Rs. (-) Rs. --------- Net Profit as per Cost Account 20,500 Admin expenses over-charged in cost (15,000 - 12,000) 3,000 Bank interest credited in financial account only...
Time rate system is a method of wage payment in which a worker is paid wages on the basis of the time spent (hours, days or months) at work, irrespective of the quantity of output produced. Wages = Time worked Rate per unit of t...
Allotment Rs.40 includes premium Rs.10, so allotment towards capital = Rs.30. $$ \begin{aligned} \text{Application money} &= 20{,}000...
Allotment Rs.25 includes premium Rs.5, so allotment towards capital = Rs.20. Pro-rata: applicants for 9,000 shares are allotted 6,000 s...
Adjustments: Outstanding wages = Rs.5,000. Adjustment entries Particulars Dr (Rs.) Cr (Rs.) --------- Depreciation A/c .......
Profit and Loss Account Dr Rs. Cr R...
Reorder Level = Maximum consumption Maximum reorder period Maximum Stock Level = Reorder Level + Reorder Quantity - (Minimum consumption M...
Under the time rate system, wages depend on the time worked at the given hourly rate. Total wages = Hours worked Rate per hour (The standard output of 1...