ISC Accounts 2011 Class-12 Previous Year Question Papers
ISC Accounts 2011 Class-12 Previous Year Question Papers Solved for practice. Step by step Solutions with Questions of Section-A (Part-1 and Part-2) and Section-B. By the practice of Accounts 2011 Class-12 Solved Previous Year Question Paper you can get the idea of solving.
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ISC Accounts 2011 Class-12 Previous Year Question Papers Solved
-: Select Your Topics :-
Maximum Marks: 80
Time allowed: Three hours
- Candidates are allowed additional 15 minutes for only reading the paper. They must NOT start writing during this time.
- Answer Question 1 (Compulsory) from Part I and five questions from Part II, choosing two questions from Section A, two questions from Section B and one question from either Section A or Section B.
- The intended marks for questions or parts of questions are given in brackets [ ].
- Transactions should be recorded in the answer book.
- All calculations should be shown clearly.
- All working, including rough work, should be done on the same page as, and adjacent to the rest of the answer.
Section – A Part – I (12 Marks)
Answer all questions.
ISC Accounts 2011 Class-12 Previous Year Question Papers Solved
Answer each of the following questions briefly : [10 x 2]
(i) How will you deal with the following items during the preparation of a cost sheet ?
(a) Salary of Public Relations Officer.
(b) Subscription to technical journals.
(ii) What journal entry will you pass w hen unsold stock is taken over by a Co-venturer assuming that a separate set of books is maintained ?
(iii) Which method of valuation of inventory will you recommend during:
(a) Periods of rising prices.
(b) Periods of falling prices.
(iv) State the entries you will pass in case of transfer from Debtors Ledger to Creditors Ledger under Self Balancing System.
(v) State two differences between average profits and super profits.
(vi) What are the closing entries for interest on calls in arrear account and interest on calls in advance account ?
(vii) State two differences bewtween current ratio and quick ratio.
(viii) List any two types of operating activities.
(ix) Explain the nature of interest on debentures.
(x) How will you deal with a situation when a solvent partner’s capital account reflects a debit balance in the application of Gamer Vs Murray ?
(a) The salary of a Public Relations officer is to be considered under the head Selling and Distribution overhead. As PRO is the officer who promotes the companies welfare and goodwill of the company.
(b) Subscription to technical journals will be considered under the head factory overheads. Technical journals arc used by the factory personnel, supervisors and technician
(ii) When unsold stock is taken over by a co-venturer the journal entry to be passed is
Co-Venturer A/c Dr
To Joint Venture A/e stock
(a) In the condition of rising prices FIFO gives greater profit than LIFO due to difference in the values of closing stock
(b) In the condition of falling prices LIFO gives greater profit than FIFO.
(iv) In the case of transfer under Self Balancing system the journal entries to be passed will be as follows assuming Mr. Singh as the person who is debtor as well as creditor for the common amount.
(a) Singh A/c Dr.
(in the purchase ledger)
To Singh A/c
(Balance of Singh a/c in the purchases ledger transferred to their a/c in the sales ledger)
(b) Purchases ledger adjustment A/c Dr.
(in General ledger)
To General ledger adjustment A c (in purchase ledger)
(Correcting entry of Adjustment Accounts for the transfer)
(c) General ledger adjustment A/c Dr
(in the sales ledger)
To Sales Ledger Adjustment A/c
(in the General ledger)
(Correcting entry of adjustment Accounts for the transfer)
|Average Profits||Super Profits|
|1. It is (he average of profits of the past few years.
2. The normal rate of return is not relevant in the calculation of the average profits.
|1. It is excess of the average profits over the normal profits.
2. The normal rate of return is considered while calculating super profits.
(i) On Transfer of interest on Calls – in – Arrears A/c to Profit and Loss A/c at the end of the accounting period.
Interest on calls in Arrears A/c Dr
To Profit and Loss A/c (With the amount of interest)
(ii)On transfer to P/L account at the end of accounting period.
Profit and Loss A/c Dr
To interest on Calls-in-advance A/c
(With the account of interest)
|Current Ratio||Quick Ratio|
|1. Current ratio relates current assets to current liabilities
2. Ideal ratio 2 : 1
|1. Quick ratio relates quick assets to quick liabilities.
2. Ideal ratio 1 : 1
(viii) Two types of operating activities may be stated as :
- Cash receipts from sale of goods and sen ices.
- Cash receipts from royalties, fees, commission, etc
1. No interest is payable on debentures issued as a collateral security.
2. The balance of interest on debentures account is transferred to the profit and loss account at the end of the year.
3. If the amount of interest accrued and due is not paid, it is known as Interest accrued and Due to interest outstanding. It appears under the head secured loans.
(x) When a solvent partner’s capital account reflects a debit balance in the application of Garner Vs Murray . The partner, having a debit balance, will not haw to bear the loss due to insolvency of a partner.
Part – II (48 Marks)
Answer any five questions.
Previous Year Question Papers Solved ISC Accounts 2011 Class-12
Question 2. 
The following information is available from the records of Singh and Company Limited for the month ended 30th September 2010 :
Purchases of raw materials — ₹ 1,00,000
Opening stock of finished goods (1000 units) — ₹ 13,600
Direct wages — ₹ 68,000
Factory overhead — ₹ 80% of direct wages
Administrative overhead — ₹ Rs. 2 per unit
Selling and Distribution overhead — ₹ R.s 1.50 per unit
Closing stock of finished goods —₹ 1.800 units
Royalties on production — ₹ 10,000
Sale of scrap of raw materials (normal loss) — ₹ 8,000
The manufacturer sells the product so as to reflect a profit of 25% on sales and 6200 units are sold in the market.
From the above information, you are required to prepare a Cost Sheet showing the total cost for the month ended 30th September 2010.
Note : All calculations are to be made to the nearest rupee and sales are made on the basis of LIFO principle.