NEB Class 12 · Past paper
The complete NEB Class 12 2073 exam paper for Accountancy, all 22 questions with solved model answers.
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State any three differences between equity share and preference share.
Equity share vs Preference share (any three): Basis Equity share Preference share --------- Dividend Fluctuating rate, paid after preference Fixed rate, paid before equity Capital repayment Repaid last on winding up Repaid before equity ...
Write the meaning of Private Limited Company.
A private limited company is a company which, by its articles of association, restricts the right to transfer its shares, limits the number of its members (minimum 1 and maximum 101 as per the Companies Act) and prohibits any invitation ...
Mention any three objectives of Financial Statement Analysis.
Objectives of financial statement analysis (any three): 1. To assess the earning capacity and profitability of the firm. 2. To measure the short-term and long-term solvency position. 3. To evaluate the operating efficiency of management....
Define Funds Flow statement.
A Funds Flow Statement is a statement that shows the sources from which funds (working capital) are raised and the ways in which those funds are applied between two balance sheet dates. It explains the causes of change in the working cap...
State any three limitations of Cost Accounting.
Limitations of cost accounting (any three): 1. It is costly to install and operate, as it needs extra records and staff. 2. It is based on estimates and assumptions (such as overhead apportionment), so it is not fully exact. 3. It is com...
With suitable example, write the meaning of fixed cost.
Fixed cost is a cost that remains unchanged in total for a given period regardless of the level of output, though per unit it decreases as output increases. Example: rent of the factory building, salary of the manager, insurance premium.
Define time rate system of wage payment. Also mention any two advantages of it.
Time rate system is a method of wage payment under which a worker is paid according to the time spent at work (per hour, day or month), regardless of output. Wages = Time worked $\times$ Rate per unit of time. Advantages (any two): 1. It...
Write the meaning of overhead.
Overhead is the aggregate of indirect costs, that is indirect material, indirect labour and indirect expenses, which cannot be conveniently and wholly identified with a particular unit of output. Example: factory rent, depreciation, offi...
A limited company issued 2,000 shares of Rs.100 each at a discount of 10% payable as follows: on Application Rs.40 per share; on Allotment Rs.50 per share. Applications were received for 4,000 shares. The excess money received on application was utilised toward the sum due on allotment. All the money was duly received. Required: Entries for (i) Application (ii) Allotment.
Shares of Rs.100 issued at 10% discount (Rs.90): $$ \begin{aligned} \text{Application Rs.}40 + \text{Allotment Rs.}50 &= \text{Rs.}90 \end{aligned} $$ discount Rs.10 adjusted at allotment. Applications for 4,000 shares, allotted 2,000 sh...
M company limited issued 10,000 shares of Rs.10 each payable: on Application Rs.5; on Allotment Rs.3; on First and Final call Rs.2. All the shares were subscribed and allotted. All money was duly received except one shareholder holding 200 shares who failed to pay the first and final call money. Hence his shares were forfeited and subsequently re-issued at Rs.8 per share as fully paid up. Required: (i) Allotment (ii) First and Final call (iii) Forfeiture (iv) Re-issue (v) Transfer entries.
Forfeited 200 shares had paid application: $$ \begin{aligned} \text{Rs.}5 + \text{allotment Rs.}3 &= \text{Rs.}8 \text{ each} \end{aligned} $$ (Rs.1,600); call Rs.2 unpaid. Journal entries Particulars Dr (Rs.) Cr (Rs.) --------- Share Al...
S. company ltd. acquired the following assets and liabilities at an agreed price of Rs.5,50,000: Machinery Rs.3,00,000; Debtors Rs.1,00,000; Creditors Rs.50,000; Inventory Rs.1,50,000. The company paid the agreed price by issuing shares of Rs.100 each at a premium of 10%. Required: Entries for purchase of business.
$$ \begin{aligned} \text{Net assets} &= (\text{Machinery }3{,}00{,}000 + \text{Debtors }1{,}00{,}000 + \text{Inventory }1{,}50{,}000) - \text{Creditors }50{,}000 \ &= \text{Rs.}5{,}00{,}000 \end{aligned} $$ Purchase price Rs.5,50,000, s...
N. company limited issued 5,000, 10% debentures of Rs.200 each at 5% discount, redeemable at 5% premium. Required: Entries for issuance and redemption of debentures.
Trial balance of a limited company as on December 31, 2015: Debit - Purchases 5,00,000; Wages 40,000; Opening stock 1,00,000; Carriage outward 5,000; Machinery 3,00,000; Furniture 1,00,000; Debtors 1,00,000; Discount 15,000; Insurance 25,000; Cash 55,000; Rent 40,000; Salaries 60,000 (Total 13,40,000). Credit - Sales 9,00,000; Share capital 2,00,000; 10% Debentures 1,00,000; Purchase return 5,000; Creditors 50,000; Commission 15,000; Reserve 10,000; P/L appropriation account 60,000 (Total 13,40,000). Additional: (a) Closing stock Rs.1,20,000 (b) Wage payable Rs.10,000 (c) Depreciation on machinery at 10% (d) Commission received in advance Rs.3,000 (e) Provision for tax Rs.20,000 (f) Proposed dividend @10%. Required: (i) Trading account (ii) Profit and loss account (iii) P/L appropriation account (iv) Balance sheet.
Trading Account Dr Rs. Cr Rs. ------------ To Opening stock 1,00,000 By Sales 9,00,000 To Purchases (5,00,000 - 5,000) 4,95,000 By Closing stock 1,20,000 To Wages (40,000 + 10,000) 50,000 To Gross Profit c/d 3,75,000 Total 10,20,000 Tota...
Trial balance of a limited company as on Ashad 31, 2072: Debit - Opening stock 50,000; Purchases 4,00,000; Plant 2,00,000; Debtors 1,00,000; Wages 40,000; Rent 30,000; Salaries 60,000; Cash 20,000 (Total 9,00,000). Credit - Sales 7,00,000; Share capital 1,00,000; Creditors 40,000; Profit and loss account 60,000 (Total 9,00,000). Additional: (a) Wages payable Rs.5,000 (b) Pre-paid rent Rs.10,000 (c) Depreciation on plant Rs.20,000 (d) Proposed dividend Rs.10,000. Required: (i) Adjustment Entries (ii) Work-sheet.
Adjustment entries Particulars Dr (Rs.) Cr (Rs.) --------- Wages A/c ................................ Dr 5,000 $\quad$ To Outstanding Wages A/c 5,000 Prepaid Rent A/c ...................... Dr 10,000 $\quad$ To Rent A/c 10,000 Depreciati...
The following accounts are extracted from Income Statement and Balance Sheet: Debentures 5,00,000; Creditors 1,00,000; Undistributed profit 3,00,000; Debtors 2,50,000; Discount on shares issued 50,000; Cash 1,50,000; Outstanding expenses 1,00,000; Inventory 2,00,000; Sales 25,00,000; Share capital 10,00,000. Required: (i) Current ratio (ii) Quick ratio (iii) Inventory turnover ratio (iv) Debt-equity ratio.
The following assets and liabilities are extracted from two year Balance Sheets (Year 1 / Year 2): Cash 75,000 / 73,000; Debtors 35,000 / 30,000; Creditors 12,000 / 15,000; Bills payable 8,000 / 5,000. Additional: (a) Purchases of machinery Rs.48,000 (b) Payment of loan Rs.50,000 (c) Issue of shares Rs.50,000 (d) Dividend paid Rs.10,000. Required: (i) Schedule of changes in working capital (ii) Funds Flow Statement.
(i) Schedule of Changes in Working Capital Particulars Year 1 Year 2 Increase in WC Decrease in WC --------------- Current Assets Cash 75,000 73,000 2,000 Debtors 35,000 30,000 5,000 Current Liabilities Creditors 12,000 15,000 3,000 Bill...
The opening and closing balances of assets and liabilities are as under (Opening / Closing): Inventory 48,000 / 96,000; Debtors 2,52,000 / 2,04,000; Cash 1,20,000 / 60,000; Creditors 1,20,000 / 1,60,000; Outstanding expenses 60,000 / 80,000. Additional: (a) Sales Rs.8,40,000 (b) Cost of sales Rs.5,28,000 (c) Administrative expenses Rs.1,20,000 (d) Purchase of fixed assets Rs.3,84,000 (e) Sale of fixed assets Rs.84,000 (f) Shares issued Rs.1,20,000 (g) Repayment of debentures Rs.60,000 (h) Dividend paid Rs.72,000. Required: Cash Flow Statement.
Cash Flow Statement (Direct Method) Particulars Rs. Rs. --------- A. Operating Activities Cash received from customers (8,40,000 + 48,000 dec. debtors) 8,88,000 Less: Cash paid to suppliers (5,28,000 + 48,000 inc. stock - 40,000 inc. cre...
The following information are given in respect to a material: Annual requirement 60,000 units; Purchasing price per unit Rs.20; Carrying cost 20% of purchasing price per unit; Ordering cost per order Rs.300. Required: Economic order quantity.
The following information relating to work and remuneration are provided: Working hours per week 50; Working per year 40 weeks; Output per hour 2 units; Wage per unit Rs.10. Required: Annual earning.
$$ \begin{aligned} \text{Annual working hours} &= 50 \text{ hours} \times 40 \text{ weeks} \ &= 2{,}000 \text{ hours} \ \text{Annual output} &= 2 \text{ units} \times 2{,}000 \text{ hours} \ &= 4{,}000 \text{ units} \end{aligned} $$ U...
Stores transactions during the month of Magh: Magh 1 Opening stock 500 units @ Rs.10; Magh 4 Purchased 600 units @ Rs.11; Magh 7 Issued 500 units; Magh 9 Purchased 600 units @ Rs.12; Magh 15 Issued 500 units; Magh 20 Purchased 600 units @ Rs.12.50; Magh 25 Issued 500 units; Magh 28 Stock verification loss 20 units. Required: Stores ledger under First-in-First-out (FIFO) method.
Store Ledger (FIFO Method) (amounts in Rs.) Date Receipt (Qty/Rate/Amt) Issue (Qty/Rate/Amt) Balance ------------ Magh 1 Opening 500 @ 10 = 5,000 Magh 4 600 @ 11 = 6,600 500 @ 10; 600 @ 11 = 11,600 Magh 7 500 @ 10 = 5,000 600 @ 11 = 6,60...
The details of manufacturing and other costs are as under: Direct material purchased Rs.2,40,000; Carriage on purchase Rs.4,000; Direct wages Rs.1,44,000; Direct expenses Rs.20,000; Administrative overhead Rs.54,000; Factory overhead Rs.70,000; Selling overhead Rs.30,000; Carriage on sales Rs.2,000. Opening and closing balances: Direct material 60,000 / 40,000; Work in progress 30,000 / 25,000; Finished goods 20,000 / 30,000. Required: Cost sheet showing (i) Cost of material consumed (ii) Prime cost (iii) Factory cost (iv) Cost of production (v) Cost of goods sold (vi) Selling price by 20% profit on cost.
Cost Sheet Particulars Rs. ------ Opening stock of direct material 60,000 Add: Direct material purchased 2,40,000 Add: Carriage on purchase 4,000 Less: Closing stock of direct material (40,000) (i) Cost of Material Consumed 2,64,000 Add:...
The net profit as per financial account of a company is Rs.60,000. On verification of financial and cost account, the following facts were located: (a) Factory overhead - On cost account Rs.30,000, On financial account Rs.40,000 (b) Administrative expenses undercharged in financial account Rs.12,000 (c) Closing stock over valued in financial account Rs.9,000 (d) Dividend received Rs.15,000. Required: Reconciliation statement of cost and financial account.
Reconciliation Statement (starting from Financial Profit) Particulars (+) Rs. (-) Rs. --------- Net Profit as per Financial Account 60,000 Factory overhead over-charged in financial account (40,000 - 30,000) 10,000 Administrative expense...
Time rate system is a method of wage payment under which a worker is paid according to the time spent at work (per hour, day or month), regardless of output. Wages = Time worked Rate per unit of time. Advantages (any two): 1. It...
Shares of Rs.100 issued at 10% discount (Rs.90): discount Rs.10 adjusted at allotment. Applications for 4,000 shares, allotted 2,000 sh...
Forfeited 200 shares had paid application: (Rs.1,600); call Rs.2 unpaid. Journal entries Particulars Dr (Rs.) Cr (Rs.) --------- Share Al...
Purchase price Rs.5,50,000, s...
Adjustment entries Particulars Dr (Rs.) Cr (Rs.) --------- Wages A/c ................................ Dr 5,000 To Outstanding Wages A/c 5,000 Prepaid Rent A/c ...................... Dr 10,000 To Rent A/c 10,000 Depreciati...
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