Category: Class 12

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TN State Board 12th Economics Model Question Paper 1 English Medium

General Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II, III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each.
   These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about one or two sentences.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in above three to five short sentences.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in detail Draw diagrams wherever necessary.

Time: 3.00 Hours
Maximum Marks: 90

PART – I

Choose the correct answer. Answer all the questions: [20 × 1 = 20]

Question 1.
Indicate the contribution of J M Keynes to economics……..
(a) Wealth of Nations
(b) General Theory
(c) Capital
(d) Public Finance
Answer:
(b) General Theory

Question 2.
Per capita income is obtained by dividing the National income by………..
(a) Production
(b) Population of a country
(c) Expenditure
(d) GNP
Answer:
(b) Population of a country

Question 3.
Assertion (A): The Expenditure method is called outlay method.
Reason (R): This method is used only private sector.
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is true but ‘R’ is false
Answer:
(c) ‘A’ is true but ‘R’ is false

Question 4.
The component of aggregate demand is………..
(a) Personal demand
(b) Government expenditure
(c) Only export
(d) Only import
Answer:
(b) Government expenditure

Question 5.
If the Keynesian consumption function is C= 10 + 0.8 Y then, if disposable income is Rs 1000, what is amount of total consumption?
(a) Rs 0.8
(b) Rs 800
(c) Rs 810
(d) Rs 0.81
Answer:
(c) Rs 810

Question 6.
Which of the following is correctly matched:
(a) J.M. Clark – Ceteris Paribus
(b) J.M. Keynes – Psychological law of consumption
(c) R.F. Khan – Accelerator model
(d) Duesenberry – Laissez-faire
Answer:
(b) J.M. Keynes – Psychological law of consumption

Question 7.
………. inflation is in no way dangerous to the economy.
(a) Walking
(b) Running
(c) Creeping
(d) Galloping
Answer:
(a) Walking

Question 8.
Match the following and choose the correct answer by using codes given below:

Codes

Answer:
(a) A-3, B-4, C-1, D-2

Question 9.
Expansions of ATM.
(a) Automated Teller Machine
(b) Adjustment Teller Machine
(c) Automatic Teller mechanism
(d) Any Time Money
Answer:
(a) Automated Teller Machine

Question 10.
Commercial Banks create credit in favour of the……..
(a) consumers
(b) business men
(c) customers
(d) agriculturists
Answer:
(c) customers

Question 11.
Net export equals ………
(a) Export x Import
(b) Export + Import
(c) Export – Import
(d) Exports of services only
Answer:
(c) Export – Import

Question 12.
Assertion (A): Price of a commodity is measured by the amount of labour required to produce it.
Reason (R): Trade is one of the Demerit.
(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’
(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’
(c) ‘A’ is true but ‘R’ is false
(d) ‘A’ is false but ‘R’ is true
Answer:
(c) ‘A’ is true but ‘R’ is false

Question 13.
Which of the following is not the member of SAARC?
(a) Pakistan
(b) Sri Lanka
(c) Bhutan
(d) China
Answer:
(d) China

Question 14.
IBRD otherwise called the………..
(a) IMF
(b) SDR
(c) SAF
(d) World Bank
Answer:
(d) World Bank

Question 15.
Finance Commission determines …………
(a) The finances of Government of India
(b) The resources transfer to the states
(c) The resources transfer to the various departments
(d) None of the above
Answer:
(b) The resources transfer to the states

Question 16.
Match the following and choose the correct answer by using codes given below:

codes

Answer:
A-2, B-4. C-1, D-3

Question 17.
………. is the current increase in temperature of the Earth’s surface as well as its atmosphere.
(a) Globe warming
(b) Global warming
(c) Globe spoiled
(d) Temperature warming
Answer:
(b) Global warming

Question 18.
The supply side vicious circle of poverty suggests that poor nations remain poor because
(a) Saving remains low
(b) Investment remains low
(c) There is a lack of effective government
(d) a and b above
Answer:
(d) a and b above

Question 19.
……….planning pertains to the allocation of resources in terms of men, materials and machinery.
(a) Financial
(b) Physical
(c) Functional
(d) Structural
Answer:
(b) Physical

Question 20.
The word ‘statistics’ is used as……….
(a) Singular
(b) Plural
(c) Singular and Plural
(d) None of above
Answer:
(c) Singular and Plural

PART – II

Answer any seven question in which Question No. 30 is compulsory. [7 x 2 = 14]

Question 21.
What do you mean by Capitalism?
Answer:
Capitalism, is total freedom and private ownership of means of production. Capitalistic economy is also termed as a free economy (Laissez faire, in Latin) or market economy where the role of the government is minimum and market determines the economic activities.

Question 22.
Write the formula for calculating GNP.
Answer:
GNP at market prices means the gross value of final goods and services produced annually in a country plus net factor income from abroad
(C + I + G + (X – M) + (R – P)

Question 23.
Write the headlines of difficulties in Measuring National Income.
Answer:
Difficulties in Measuring National Income:

1. Transfer payments
2. Difficulties in assessing depreciation allowance
3. Unpaid services
4. Income from illegal activities
5. Production for self-consumption and changing price
6. Capital Gains
7. Statistical problems.

Question 24.
What is effective demand?
Answer:
The starting point of Keynes theory of employment and income is the principle of effective demand.  Effective demand denotes money actually spent by the people on products of industry. The money which entrepreneurs receive is paid in the form of rent, wages, interest and profit. Therefore effective demand equals national income.

Question 25.
Define “Unemployment”.
Answer:
Unemployment: When there are people, who are willing to work and able to work but cannot find suitable jobs.

Question 26.
Define average propensity to save (APS).
Answer:
Average Propensity to Save (APS):
The average propensity to save is the ratio of saving to income. APS is the quotient obtained by dividing the total saving by the total income. In other words, it is the ratio of total savings to total income. It can be expressed algebraically in the form of equation as under
APS = \(\frac{S}{Y}\)
Where, S = Saving; Y = Income

Question 27.
Define “Ceteris paribus”.
Answer:
Ceteris paribus (constant extraneous variables): The other variables such as income distribution, tastes, habits, social customs, price movements, population growth, etc. do not change and consumption depends on income alone.

Question 28.
State briefly the functions of SAARC.
Answer:
Functions of SAARC:
The main functions of SAARC are as follows.

1. Maintenance of the co operation in the region
2. Prevention of common problems associated with the member nations.
3. Ensuring strong relationship among the member nations.
4. Removal of the poverty through various packages of programmes.
5. Prevention of terrorism in the region.

Question 29.
What are the components of GST?
Answer:
Components of GST:
The component of GST are of 3 types. They are: CGST, SGST & IGST.

1. CGST: Collected by the Central Government on an intra-state sale (e.g. Within state/ union territory)
2. SGST: Collected by the State Government on an intra-state sale (e.g. Within state/ union territory)
3. IGST: Collected by the Central Government for inter-state sale (e.g. Maharashtra to Tamil Nadu)

Question 30.
What are environmental goods? Give examples.
Answer:
Environmental goods are typically non-market goods, including clear air, clean water, landscape, green transport infrastructure (footpaths, cycle ways, greenways, etc.), public parks, urban parks, rivers, mountains, forests, and beaches.

Concerns with environmental goods focus on the effects that the exploitation of ecological systems have on the economy, the well-being of humans and other species, and on the environment.

PART – III

Answer any seven question in which Question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
Describe the socialistic econonomy.
Answer:
Socialistic Economy (Socialism):

1. The Father of Socialism is Karl Marx. Socialism refers to a system of total planning, public ownership and state control on economic activities.
2. Socialism is defined as a way of organizing a society in which major industries are owned and controlled by the government.
3. A Socialistic economy is also known as ‘Planned Economy’ or ‘Command Economy’.
4. In a socialistic economy, all the resources are owned and operated by the government.
5. Public welfare is the main motive behind all economic activities. It aims at equality in the distribution of income and wealth and equal opportunity for all.
6. Russia, China, Vietnam, Poland and Cuba are the examples of socialist economies. But, now there are no absolutely socialist economies.

Question 32.
Discuss the limitations of Macro Economics.
Answer:
Macro economics suffers from certain limitations. They are:

1. There is a danger of excessive generalisation of the economy as a whole.
2. It assumes homogeneity among the individual units.
3. There is a fallacy of composition. What is good of an individual need not be good for nation and vice versa. And, what is good for a country is not good for another country and at another time.
4. Many non-economic factors determine economic activities; but they do not find place in the usual macroeconomic books.

Question 33.
Give short note on Expenditure method.
Answer:
The Expenditure Method (Outlay method):

1. The total expenditure incurred by the society in a particular year is added together.
2. To calculate the expenditure of a society, it includes personal consumption expenditure, net domestic investment, government expenditure on consumption as well as capital goods and net exports.

Question 34.
Describe the types of unemployment.
Answer:
The following are the types of unemployment.
Types of unemployment:

1. Cyclical Unemployment
2. Frictional Unemployment
3. Technical Unemployment
4. Disguised Unemployment
5. Seasonal Unemployment
6. Educated Unemployment
7. Structural Unemployment

1. Cyclical Unemployment:

• This unemployment exists during the downturn phase of trade cycle in the economy.
• In a business cycle during the period of recession and depression, income and output fall leading to widespread unemployment.
• It is caused by deficiency of effective demand.
• Cyclical unemployment can be cured by public investment or expansionary monetary policy.

2. Seasonal Unemployment:

• This type of unemployment occurs during certain seasons of the year.
• In agriculture and agro based industries like sugar, production activities are carried out only in some seasons.
• These industries offer employment only during that season in a year. Therefore people may remain unemployed during the off season.
• Seasonal unemployment happens from demand side also; for example ice cream industry, holiday resorts etc.

3. Frictional Unemployment (Temporary Unemployment):

• Frictional unemployment arises due to imbalance between supply of labour and demand for labour.
• This is because of immobility of labour, lack of necessary skills, break down of machinery.
• shortage of raw materials etc.
• The persons who lose jobs and in search of jobs are also included under frictional unemployment.

4. Educated Unemployment:

• Sometimes educated people are underemployed or unemployed when qualification does
  not match the job.
• Faulty education system, lack of employable skills, mass student turnout and preference for white collar jobs are highly responsible for educated unemployment in India.

5. Technical Unemployment:

• Modem technology being capital intensive requires less labourers and contributes to technological unemployment.
• Now a days, invention and innovations lead to the adoption of new techniques there by the existing workers are retrenched.
• Labour saving devices are responsible for technological unemployment.

6. Structural Unemployment:

• Structural unemployment is due to drastic change in the structure of the society.
• Lack of demand for the product or shift in demand to other products cause this type of unemployment.
• For example rise in demand for mobile phones has adversely affected the demand for cameras, tape recorders etc.
• So this kind of unemployment results from massive and deep rooted changes in economic structure.

7. Disguised Unemployment:

• Disguised unemployment occurs when more people are than what is actually required.
• Even if some workers are withdrawn, production does not suffer.
• This type of unemployment is found in agriculture.
• A person is said to be disguisedly by unemployed if his contribution to output is less than what he can produce by working for normal hours per day.
• In this situation, marginal productivity of labour is zero or less or negative.

Question 35.
Differentiate autonomous and induced investment.
Answer:

Sl.No	Autonomous Investment	Induced Investment
1	Independent	Planned
2	Income inelastic	Income elastic
3	Welfare motive	Profit Motive

Question 36.
What is money supply?
Answer:

1. Money supply means the total amount of money in an economy.
2. It refers to the amount of money which is in circulation in an economy at any given time.
3. Money supply plays a crucial role in the determination of price level and interest rates.
4. Money supply viewed at a given point of time is a stock and over a period of time it is a flow.

Question 37.
Distinguish between money market and capital market.
Answer:

S.No.	Money Market	Capital Market
1.	Money market is the mechanism through which sthort term funds are loaned and borrowed. It designates financial instittutions which handle the purchase, sale and transfer of short term credit instruments.	Capital Market is a part of financial system which is concerned with raising capital by dealing in shares, bonds and other long term investments.
2.	Commercial banks, acceptance houses, Non Banking Financial Institutions and the Central Bank are the institutions catering to the requirements of short term funds in the money Market.	The market where investment instruments like bonds, equities and mortgages are traded is known as the capital market.

Question 38.
List out the achievements of ASEAN.
Answer:
The ASEAN Declaration states the aims and purposes of the Association as:

1. To accelerate the economic growth, social progress and cultural development in the region;
2. To promote regional peace and stability and adherence to the principles of the United Nations Charter;
3. To promote cooperation among the members of ASEAN through the exchange of knowledge and experience in the field of public sector auditing.
4. To provide a conducive environment and facilities for research, training, and education among the members
5. To serve as a centre of information and as an ASEAN link with other international organizations.

Question 39.
Give two examples for direct tax.
Answer:

1. Equity: Direct taxes are progressive i.e. rate of tax varies according to tax base. For example, income tax satisfies the canon of equity.
2. Certainity: Canon of certainty can be ensured by direct taxes. For example, an income tax payer knows when and at what rate he has to pay income tax.

Question 40.
Define economic planning.
Answer:
Economic Planning is “collective control or suppression of private activities of production and exchange”. – Robbins
“Economic Planning in the widest sense is the deliberate direction by persons in-charge of large resources of economic activity towards chosen ends”. – Dalton

PART – IV

Answer all the questions. [7 x 5 = 35]

Question 41 (a).
Compare the feature among Capitalism, Secularism and Mixedism.
Answer:

[OR]

(b) What are the difficulties involved in the measurement of national income?
Answer:
Difficulties in Measuring National Income:
In India, a special conceptual problem is posed by the existence of a large, unorganised and non-monetised subsistence sector where the barter system still prevails for transacting goods and services. Here, a proper valuation of output is very difficult.

Transfer payments:

1. Government makes payments in the form of pensions, unemployment allowance, subsidies, etc. These are government expenditure.
2. But they are not included in the national income.
3. Because they are paid without adding anything to the production processes.
4. During a year, Interest on national debt is also considered transfer payments because it is paid by the government to individuals and firms on their past savings without any productive work.

Difficulties in assessing depreciation allowance:

1. The deduction of depreciation allowances, accidental damages, repair and replacement charges from the national income is not an easy task.
2. It requires high degree of judgment to assess the depreciation allowance and other charges.

Unpaid services:

1. A housewife renders a number of useful services like preparation of meals, serving, tailoring, mending, washing, cleaning, bringing up children, etc.
2. She is not paid for them and her services are not directly included in national income.

Income from illegal activities:

1. Income earned through illegal activities like gambling, smuggling, illicit extraction of . liquor, etc., is not included in national income.
2. Such activities have value and satisfy the wants of the people but they are not considered as productive from the point of view of society.

Production for self-consumption and changing price:

1. Farmers keep a large portion of food and other goods produced on the farm for self consumption.
2. The problem is whether that part of the produce which is not sold in the market can be included in national income or not.

Capital Gains:

1. The problem also arises with regard to capital gains.
2. Capital gains arise when a capital asset such as a house, other property, stocks or shares, etc. is sold at higher price than was paid for it at the time of purchase.
3. Capital gains are excluded from national income.

Statistical problems:

1. There are statistical problems, too. Great care is required to avoid double counting. Statistical data may not be perfectly reliable, when they are compiled from numerous sources.
2. Skill and efficiency of the statistical staff and cooperation of people at large are also equally important in estimating national income.

Question 42 (a).
Write short note on the implications of Say’s law.
Answer:
Implications of Say’s Law:

1. There is no possibility for over production or unemployment.
2. If there exist unutilized resources in the economy, it is profitable to employ them up to the point of full employment. This is true under the condition that factors are willing to accept rewards on a par with their productivity.
3. As automatic price mechanism operates in the economy, there is no need for government intervention. (However, J.M. Keynes emphasized the role of the State)
4. Interest flexibility brings about equality between saving and investment.
5. Money performs only the medium of exchange function in the economy, as people will not hold idle money.

[OR]

(b) State the propositions of Keynes’s Psychological Law of Consumption.
Answer:
Propositions of the Law:
This law has three propositions:
(i) When income increases, consumption expenditure also increases but by a smaller amount. The reason is that as income increases, we wants are satisfied side by side, so that the need to spend more on consumer goods diminishes. So, the consumption expenditure increases with increase in income but less than proportionately.

(ii) The increased income will be divided in some proportion between consumption expenditure and saving. This follows from the first proposition because when the whole of increased income is not spent on consumption, the remaining is saved. In this way, consumption and saving move together.

(iii) Increase in income always leads to an increase in both consumption and saving. This means that increased income is unlikely to lead to fall in either consumption or saving. Thus with increased income both consumption and saving increase.

Question 43 (a).
Bring out the methods of credit control.
Answer:
Methods of Credit Control:
1. Bank Rate Policy:
The bank rate is the rate at which the Central Bank of a country’ is prepared to re-discount the first class securities.

2. Open Market Operations:

• In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market.
• In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns.

3. Variable Reserve Ratio:
(i) Cash Reserves Ratio:

• Under this system the Central Bank controls credit by changing the Cash Reserves Ratio.
• For example, if the Commercial Banks have excessive cash reserves on the basis of which they are creating too much of credit,this will be harmful for the larger interest of the economy.
• So it will raise the cash reserve ratio which the Commercial Banks are required to maintain with the Central Bank.

(ii) Statutory Liquidity Ratio:

• Statutory Liquidity Ratio (SLR) is the amount which a bank has to maintain securities.
• The quantum is specified as some percentage of the total demand and time liabilities (i.e., the liabilities of the bank which are payable on demand anytime, and those liabilities which are accruing in one month’s time due to maturity) of a bank.

[OR]

(b) Briefly explain the gains from International Trade Categories.
Answer:
Gains from International Trade:

• International trade helps a country to export its surplus goods to other countries and secure a better market for it.
• Similarly, international trade helps a country to import the goods which cannot be produced at all or can be produced at a higher cost.
• The gains from international trade may be categorized under four heads.

I. Efficient Production:
International trade enables each participatory country to specialize in the production of goods in which it has absolute or comparative advantages. International specialization offers the following gains.

1. Better utilization of resources.
2. Concentration in the production of goods in which it has a comparative advantage.
3. Saving in time.
4. Perfection of skills in production.
5. Improvement in the techniques of production.
6. Increased production.
7. Higher standard of living in the trading countries.

II. Equalization of Prices between Countries:
International trade may help to equalize prices in all the trading countries.

1. Prices of goods are equalized between the countries (However, in reality it has not happened).
2. The difference is only with regard to the cost of transportation.
3. Prices of factors of production are also equalized (However, in reality it has not happened).

III. Equitable Distribution of Scarce Materials:
International trade may help the trading countries to have equitable distribution of scarce resources.

IV. General Advantages of International Trade:

1. Availability of variety of goods for consumption.
2. Generation of more employment opportunities.
3. Industrialization of backward nations.
4. Improvement in relationship among countries (However, in reality it has not happened).
5. Division of labour and specialisation.
6. Expansion in transport facilities.

Question 44 (a).
Write a note on SAARC.
Answer:
South Asian Association For Regional Co-Operation (SAARC):

1. The South Asian Association for Regional Co-operation (SAARC) is an organisation of South Asian nations, which was established on 8 December 1985 for the promotion of economic and social progress, cultural development within the South Asia region and also for friendship and co-operation with other developing countries.
2. The SAARC Group (SAARC) comprises of Bangaladesh, Bhutan, India, The Maldives, Nepal, Pakistan and Sri Lanka.
3. In April 2007, Afghanistan became its eighth member.
4. The basic aim of the organisation is to accelerate the process of economic and social development of member states through joint action in the agreed areas of cooperation.
5. The SAARC Secretariat was established in Kathmandu (Nepal) on 16th January 1987.
6. The first SAARC summit was held at Dhaka in the year 1985.
7. SAARC meets once in two years. Recently, the 20th SAARC summit was hosted by Sri Lanka in 2018.

[OR]

(b) Briefly explain facilities offered by IMF.
Answer:
Facilities offered by IMF:
The Fund has created several new credit facilities for its members. Chief among them are:
(i) Basic Credit Facility:

• The IMF provides financial assistance to its member nations to overcome their temporary difficulties relating to balance of payments.
• A member nation can purchase from the Fund other currencies or SDRs, in exchange for its own currency, to finance payment deficits.
• The loan is repaid when the member repurchases its own currency with other currencies or SDRs.
• A member can unconditionally borrow from the Fund in a year equal to 25% of its quota.
• This unconditional borrowing right is called the reserve tranche.

(ii) Extended Fund Facility:

• Under this arrangement, the IMF provides additional borrowing facility up to 140% of the member’s quota, over and above the basic credit facility.
• The extended facility is limited for a period up to 3 years and the rate of interest is low.

(iii) Compensatory Financing Facility:

• In 1963, IMF established compensatory financing facility to provide additional financial assistance to the member countries, particularly primary producing countries facing shortfall in export earnings.
• In 1981, the coverage of the compensatory financing facility was extended to payment problem caused by the fluctuations in the cost of cereal inputs.

(iv) Buffer Stock Facility:

• The buffer stock financing facility was started in 1969.
• The purpose of this scheme was to help the primary goods (food grains) producing countries to finance contributions to buffer stock arrangements for the stabilisation of primary product prices.

(v) Supplementary Financing Facility:
Under the supplementary financing facility, the IMF makes temporary arrangements to provide supplementary financial assistance to member countries facing payments problems relating to their present quota sizes.

(vi) Structural Adjustment Facility:

• The IMF established Structural Adjustment Facility (SAF) in March 1986 to provide additional balance of payments assistance on concessional terms to the poorer member countries.
• In December 1987, the Enhanced Structural Adjustment Facility (ESAF) was set up to augment the availability of concessional resources to low income countries.
• The purpose of SAF and ESAF is to force the poor countries to undertake strong macroeconomic and structural programmes to improve their balance of payments positions and promote economic growth.

Question 45 (a).
What are the functions of a modern state?
Answer:
Functions of Modern State:
The modem state is a welfare state and not just police state. The state assumes greater roles by creating economic and social overheads, ensuring stability both internally and externally, conserving resources for sustainable development and so on.

(i) Defence:

1. The primary function of the Government is to protect the people from external aggression and internal disorder.
2. The government has to maintain adequate police and military forces and render protective
   services.

(ii) Judiciary:

1. Rendering justice and settlement of disputes are the concern of the government.
2. It should provide adequate judicial structure to render justice to all classes of citizens,

(iii) Enterprises:

1. The regulation and control of private enterprise fall under the purview of the modem State.
2. Ownership of certain enterprises and operating them successfully are the responsibilities of the government.

(iv) Social Welfare:
It is the duty of the state to make provisions for education, social security, social insurance, health and sanitation for the betterment of the people in the country.

(v) Infrastructure:
Modem States have to build the base for the economic development of the country by creating social and economic infrastructure.

(vi) Macro-economic policy:
The Government has to administer fiscal policy and monetary policy to achieve macro¬economic goals.

(vii) Social Justice:

1. During the process of growth of an economy, certain sections of the society gain at the cost of others.
2. The Government needs to intervene with fiscal measures to redistribute income.

(viii) Control of Monopoly:
Concentration of economic power is another evil to be corrected by the Government. So, the state intervenes through control of monopolies and restrictive trade practices to curb concentration of economic power.

[OR]

(b) What are the causes of water pollution?
Answer:
Water pollution is caused due to several reasons. Here are the few major causes of water pollution:
(i) Discharge of sewage and waste water:

1. Sewage, garbage and liquid waste of households, agricultural runoff and effluents from factories are discharged into lakes and rivers.
2. These wastes contain harmful chemicals and toxins which make the water poisonous for aquatic animals and plants.

(ii) Dumping of solid wastes:
The dumping of solid wastes and litters in water bodies cause huge problems.

(iii) Discharge of industrial wastes:
Industrial waste contains pollutants like asbestos, lead, mercury, grease oil and petrochemicals, which are extremely harmful to both people and environment.

(iv) Oil Spill:
Sea water gets polluted due to oil spilled from ships and tankers while travelling. The spilled oil does not dissolve in water and forms a thick sludge polluting the water.

(v) Acid rain:

1. Acid rain is pollution of water caused by air pollution.
2. When the acidic particles caused by air pollution in the atmosphere mix with water vapor, it results in acid rain.

(vi) Global warming:
Due to global warming, there is an increase in water temperature as a result aquatic plants and animals are affected.

(vii) Eutrophication:

1. Eutrophication is an increased level of nutrients in water bodies.
2. This results in bloom of algae in water.
3. It also depletes the oxygen in water which negatively affects fish and other aquatic animal population.

Question 46 (a).
Explain different sources of e-waste.
Answer:

[OR]

(b) What are the non-economic factors determining development?
Answer:
Non-Economic. Factors:

1. Human Resource
2. Technical Know-how
3. Political Freedom
4. Social Organization
5. Corruption free administration
6. Desire for Development
7. Moral, ethical and social values
8. Casino Capitalism
9. Patrimonial Capitalism

Non-Economic Factors: ‘Economic Development has much to do with human endowments, social attitudes, political conditions and historical accidents. Capital is a necessary but not a sufficient condition of progress.
(i) Human Resources:

• Human resource is named as human capital because of its power to increase productivity and thereby national income.
• There is a circular relationship between human development and economic growth.
• A healthy, educated and skilled labour force is the most important productive asset.
• Human capital formation is the process of increasing knowledge, skills and the productive capacity of people.

(ii) Technical Know-how:
As the scientific and technological knowledge advances, more and more sophisticated techniques steadily raise the productivity levels in all sectors.

(iii) Political Freedom:
The process of development is linked with the political freedom.

(iv) Social Organization:
People show interest in the development activity only when they feel that the fruits of development will be fairly distributed.

(v) Corruption free administration:

• Corruption is a negative factor in the growth process.
• Unless the countries root-out corruption in their administrative system, the crony capitalists and traders will continue to exploit national resources.

(vi) Desire for development:
The pace of economic growth in any country depends to a great extent on people’s desire for development.

(vii) Moral, ethical and social values:

• These determine the efficiency of the market, according to Douglas C. North.
• If people are not honest, market cannot function.

(viii) Casino Capitalism:
If People spend larger proportion of their income and time on entertainment liquor and other illegal activities, productive activities may suffer, according to Thomas Piketty.

(ix) Patrimonial Capitalism:
If the assets are simply passed on to children from their parents, the children would not work hard, because the children do not know the value of the assets.

Question 47 (a).
Describe different types of Planning.
Answer:

(i) Democratic Vs Totalitarian:
A form of rule in which the government attempts to maintain ‘total’ control over society, including all aspects of the public and private lives of its citizens.

(ii) Centralized Vs Decentralized:

• Under centralized planning, the entire planning process in a country is under a central planning authority.
• This authority formulates a central plan, fixes objectives, targets and priorities for every sector of the economy.
• In other words, it is called ‘planning from above’.

(iii) Planning by Direction Vs Inducement:
Under planning by direction, there is a central authority which plans, directs and orders the execution of the plan in accordance with pre-determined targets and priorities.

(iv) Indicative Vs Imperative Planning:

• Indicative planning is peculiar to the mixed economies. It has been in practice in France since the Monnet Plan of 1947-50.
• In a mixed economy, the private sector and the public sector work together.
• Under this plan, the outline of plan is prepared by the Government.
• Then it is discussed with the representatives of private management, trade unions, consumer groups, finance institutions and other experts.

(v) Short, Medium and Long term Planning:

• Short-term plans are also known as ‘controlling plans’.
• They encompass the period of one year, therefore, they are also known as ‘annual plans’.

(vi) Financial Vs Physical Planning:
Financial planning refers to the technique of planning in which resources are allocated in terms of money while physical planning pertains to the allocation of resources in terms of men, materials and machinery.

(vii) Functional Vs Structural Planning:
Functional planning refers to that planning which seeks to remove economic difficulties by directing all the planning activities within the existing economic and social structure.

(viii) Comprehensive Vs Partial Planning:
General planning which concerns itself with the major issues for the whole economy is known as comprehensive planning whereas partial planning is to consider only the few important sectors of the economy.

[OR]

(b) Discuss the Economic planning of Democratic planning and Totalitarian planning.
Answer:
Democratic Vs Totalitarian:

1. Democratic planning implies planning within democracy.
2. People are associated at every step in the formulation and implementation of the plan.
3. A democratic plan is characterized by the widest possible consultations with the various state governments and private enterprises at the stage of preparation.
4. The plan prepared by the Planning Commission is not accepted as such.
5. It can be accepted, rejected or modified by the Parliament of the country.
6. Under totalitarian planning, there is central control and direction of all economic activities in accordance with a single plan.
7. Consumption, production, exchange, and distribution are all controlled by the state. In authoritarian planning, the planning authority is the supreme body.
8. It decides about the targets, schemes, allocations, methods and procedures of implementation of the plan.

Subject Matter Experts at SamacheerKalvi.Guide have created Samacheer Kalvi Tamil Nadu State Board Syllabus New Paper Pattern 12th Economics Model Question Papers 2020-2021 with Answers Pdf Free Download in English Medium and Tamil Medium of TN 12th Standard Economics Public Exam Question Papers Answer Key, New Paper Pattern of HSC 12th Class Economics Previous Year Question Papers, Plus Two +2 Economics Model Sample Papers are part of Tamil Nadu 12th Model Question Papers.

Let us look at these Government of Tamil Nadu State Board 12th Economics Model Question Papers Tamil Medium with Answers 2020-21 Pdf. Students can view or download the Class 12th Economics New Model Question Papers 2021 Tamil Nadu English Medium Pdf for their upcoming Tamil Nadu HSC Board Exams. Students can also read Tamilnadu Samcheer Kalvi 12th Economics Guide.

TN State Board 12th Economics Model Question Papers 2020 2021 English Tamil Medium

Tamil Nadu 12th Economics Model Question Papers English Medium 2020-2021

• Tamil Nadu 12th Economics Model Question Paper 1 English Medium
• Tamil Nadu 12th Economics Model Question Paper 2 English Medium
• Tamil Nadu 12th Economics Model Question Paper 3 English Medium
• Tamil Nadu 12th Economics Model Question Paper 4 English Medium
• Tamil Nadu 12th Economics Model Question Paper 5 English Medium

Tamil Nadu 12th Economics Model Question Papers Tamil Medium 2020-2021

• Tamil Nadu 12th Economics Model Question Paper 1 Tamil Medium
• Tamil Nadu 12th Economics Model Question Paper 2 Tamil Medium
• Tamil Nadu 12th Economics Model Question Paper 3 Tamil Medium
• Tamil Nadu 12th Economics Model Question Paper 4 Tamil Medium
• Tamil Nadu 12th Economics Model Question Paper 5 Tamil Medium

12th Economics Model Question Paper Design 2020-2021 Tamil Nadu

Types of Questions	Marks	No. of Questions to be Answered	Total Marks
Part-I Objective Type	1	20	20
Part-II Very Short Answers (Totally 10 questions will be given. Answer any Seven. Any one question should be answered compulsorily)	2	7	14
Part-Ill Short Answers (Totally 10 questions will be given. Answer any Seven. Any one question should be answered compulsorily)	3	7	21
Part-IV Essay Type	5	7	35
Marks			90
Internal Assessment			10
Total Marks			100

Tamil Nadu 12th Economics Model Question Paper Weightage of Marks

Purpose	Weightage
1. Knowledge	30%
2. Understanding	40%
3. Application	20%
4. Skill/Creativity	10%

It is necessary that students will understand the new pattern and style of Model Question Papers of 12th Standard Economics Tamilnadu State Board Syllabus according to the latest exam pattern. These Tamil Nadu Plus Two 12th Economics Model Question Papers State Board Tamil Medium and English Medium are useful to understand the pattern of questions asked in the board exam. Know about the important concepts to be prepared for TN HSLC Board Exams and Score More marks.

We hope the given Samacheer Kalvi Tamil Nadu State Board Syllabus New Paper Pattern Class 12th Economics Model Question Papers 2020 2021 with Answers Pdf Free Download in English Medium and Tamil Medium will help you get through your subjective questions in the exam.

Let us know if you have any concerns regarding the Tamil Nadu Government 12th Economics State Board Model Question Papers with Answers 2020 21, TN 12th Std Economics Public Exam Question Papers with Answer Key, New Paper Pattern of HSC Class 12th Economics Previous Year Question Papers, Plus Two +2 Economics Model Sample Papers, drop a comment below and we will get back to you as soon as possible.

Students can Download Tamil Nadu 12th Accountancy Model Question Paper 5 English Medium Pdf, Tamil Nadu 12th Accountancy Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 12th Accountancy Model Question Paper 5 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

PART – I

Answer all the questions. Choose the correct answer. [20 × 1 = 20]

Question 1.
A firms total sales Rs 80,000 and its credit sales Rs 60,000. Then its cash sales is…………
(a) Rs 1,40,000
(b) Rs 70,000
(c) Rs 20,000
(d) Rs 80,000
Answer:
(c) Rs 20,000

Question 2.
A firm has assets worth 47,500, and liabilities 17,700, Then its capital is…………
(a) Rs 29,800
(b) Rs 65,200
(c) Rs 35,400
(d) Rs 17,700
Answer:
(a) Rs 29,800

Question 3.
Some organisations are established for the purpose of rendering services to the public without…………
(a) any profit motive
(b) any service motive
(c) both
(d) None of these
Answer:
(a) any profit motive

Question 4.
Charitable institutions and educational institutions are example of………….
(a) Profit organisation
(b) Not-for-profit organisation
(c) both
(d) None of these
Answer:
(b) Not-for-profit organisation

Question 5.
The rate of interest on capital is generally agreed by the partner and is mentioned in the…………
(a) Capital A/c
(b) Profit and Loss A/c
(c) Partnership deed
(d) None of these
Answer:
(c) Partnership deed

Question 6.
Interest on capital is to be calculated on the capitals at the begining for the…………..
(a) Particular period
(b) Relevant period
(c) average period
(d) all of these
Answer:
(b) Relevant period

Question 7.
The total capitalised value of the business is calculated by capitalising the average profits on the basis of………….
(a) average profit
(b) normal rate of return
(c) actual capital employed
(d) none of these
Answer:
(b) normal rate of return

Question 8.
Goodwill is to be valued when …………
(a) analgamation takes place
(b) a partner is admitted
(c) one company takes over another company
(d) all of the above
Answer:
(d) all of the above

Question 9.
On admission of a partner if goodwill account is to be raised this should be debited to………….
(a) Partner’s capital A/c
(b) Goodwill A/c
(c) Revaluation A/c
(d) None of these
Answer:
(b) Goodwill A/c

Question 10.
The old partners share all the accumulated profits and reserves in their……………
(a) new profit sharing ratio
(b) old profit sharing ratio
(c) capital ratio
(d) sacrificing ratio
Answer:
(b) old profit sharing ratio

Question 11.
At the time of retirement of partners, the existing partners stand to…………..
(a) Gain
(b) Loss
(c) Income
(d) None of these
Answer:
(a) Gain

Question 12.
At the time of retirement of a partners, calculation of new profit ratio is……………
(a) Compulsory
(b) Optional
(c) Necessary
(d) Not necessary
Answer:
(c) Necessary

Question 13.
Equity’ shares are known as …………
(a) authorised capital
(b) issued capital
(c) subscribed capital
(d) ordinary capital
Answer:
(d) ordinary capital

Question 14.
Authorised capital is also known as…………
(a) paid up capital
(b) called up capital
(c) nominal capital
(d) subscribed capital
Answer:
(c) nominal capital

Question 15.
Common size statement can be prepared with……….
(a) Double columns
(b) single columns
(c) three columns
(d) five columns
Answer:
(c) three columns

Question 16.
Which of the following are techniques tools or methods of analysis and interpretation of financial statements………..
(a) Ratio analysis
(b) Average analysis
(c) Trend analysis
(d) All of the above
Answer:
(d) All of the above

Question 17.
Interpretation of accounts is the………….
(a) art and science of translating the figures
(b) to know financial strengths and weakness of a business
(c) to know the causes for the prevailing performance of business
(d) All the above
Answer:
(d) All the above

Question 18.
The term ‘Financial Statement’ covers………….
(a) Profit and Loss Account
(b) Balance sheet and profit and loss statement appropriation account
(c) profit and loss statement and balance sheet
(d) none of these
Answer:
(c) profit and loss statement and balance sheet

Question 19.
A technique that is used in comparative analysis of financial statement is…………..
(a) graphical analysis
(b) preference analysis
(c) common size analysis
(d) returning analysis
Answer:
(c) common size analysis

Question 20.
In payment voucher cash or batik account is credited and other ledger account is…………..
(a) debited
(b) Credited
(c) both ‘a’ and ‘b’
(d) none of these
Answer:
(a) debited

PART – II

Answer any seven questions in which question no. 30 is compulsory. [7 × 2 = 14]

Question 21.
What is a statement of Affairs?
Answer:
A statement of affairs is a statement showing the balances of assets and liabilities on a particular date. The balance of assets are shown on the right side and the balance of liabilities on the left side. This statement resembles a balance sheet. The difference between the total of assets and total of liabilities is taken as capital.
Capital = Assets – Liabilities

Question 22.
From the following details calculate the amount that will be shown as subscription in Income and Expenditure Account for the year ending 31st March, 2017.

Subscription outstanding for the year 2016-17 is Rs 2,400. Subscription for 2016-17 received in 2015-16 was Rs 1,000.
Answer:

Tutorial note:
(i) Subscription for the year 2015-16 Rs 7,500 and for the year 2017-18 Rs 1,500 do not relate to the current year. So they should not be recorded in Income and Expenditure Account.
(ii) Subscription outstanding for the current year 2016-17 is Rs 2.400. it should be added with the’ amount of subscription received during 2016-17.

Question 23.
Mani is a partner, who withdrew Rs 30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.
Answer:
Mani:
30,000 x \(\frac{6}{100}\) × \(\frac{4}{12}\) = Rs 600
Interest on drawings of Mani = Rs 600

Question 24.
What is goodwill?
Answer:
Goodwill is the good name or reputation of the business which brings benefit to the business. It enables the business to earn more profit. It is the present value of a firm’s future excess earnings.

Question 25.
Arul and Anitha are partners sharing profits and losses in the ratio of 4 : 3. On 31.3.2018, Ajay was admitted as a partner. On the date of admission, the book of the firm showed a general reserve of Rs 42,000. Pass the journal entry to distribute the general reserve.
Answer:

Question 26.
Mary, Meena and Mariam are partners of a firm sharing profits and losses equally.
Answer:
Mary retired from the partnership on 1.1.2019. On that date, their balance sheet showed accumulated loss of Rs 75,000 on the asset side of the balance sheet. Give the journal entry to distribute the accumulated loss.
Answer:
Journal entry

Question 27.
What is over-subscription?
Answer:
When the number of shares applied for is more than the number of shares offered for . subscription it is said to be over subscription.

Question 28.
What is working capital?
Answer:
Working capital statement or schedule of changes in working is prepared to disclose net changes in working capitals on two specific dates (generally two balance sheet dates). It is prepared from current assets and current liabilities.
Working Capital = Current Assets – Current Liabilities

Question 29.
Calculate quick ratio of Auantfe Constructions Ltd from the information given below.

Answer:

Quick assets = Current assets – Inventories – Prepaid expenses
= 2,50,000 – 50,000 – 15,000
= 1,85,000

Question 30.
What are accounting reports?
Answer:
Accounting report is a compilation of accounting information that are derived from the accounting records of a business concern. Accounting reports may be classified as routine reports and special purpose reports.

PART – III

Answer any seven questions in which question No. 40 is compulsory. [7 × 3 = 21]

Question 31.
Find out credit sales from the following information:

Answer:

Question 32.

Subscription of Rs 9,000 is still in arrears for the year 2012-13. Prepare Income and Expenditure Account for 2013-2014.
Answer:
Income and Expenditure Account for the year 31.03.14

Question 33.
Arul is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 12% p.a. During the year ended 31st December 2018 he drew as follows:

Calculate the amount of interest on drawings.
Answer:
Interest on drawings = Amount of drawings × Rate of interest × Period of interest

Question 34.
A firm’s profit for the last 5 years were Rs 20,000, Rs 30,000, Rs 40,000, Rs 50,000, and Rs 60,000. Calculated the value of firm’s goodwill on the basis of three years purchase of weighted average profit after using weight of 1, 2, 3, 4, 5 respectively.
Answer:

Goodwill = Weighted avg. profit × Number of years purchase
= 46,667 × 3 = Rs 1,40,000 (appr.)

Question 35.
What are the adjustments required at the time of admission of a partner?
Answer:
The following adjustments are necessary at the time of admission of a partner.

1. Distribution of accumulated profits, reserves and losses
2. Revaluation of assets and liabilities
3. Determination of new profit sharing ratio and sacrificing ratio
4. Adjustment for goodwill
5. Adjustment of capital on the basis of new profit sharing ratio

Question 36.
Distinguish between sacrificing ratio and gaining ratio.
Answer:

Question 37.
Anu Company forfeited 200 equity shares of Rs 10 each issued at par held by Thiyagu for non-payment of the final call of Rs 3 per share. The shares were reissued to Laxman at Rs 6 per share. Show the journal entries for forfeiture and reissue.
Answer:
In the books of Anu Company
Journal entries

Question 38.
From the following particulars, prepare comparative income statement of Arul Ltd.

Answer:
Comparative Income Statement Analysis of Arul Ltd. for the year ended 31.3.2016 to 31.3.2017

Question 39.
From the following statement of profit and loss of Mukesh Ltd. calculate
(i) Gross profit ratio
(ii) Net profit ratio.
Statement of Profit and Loss

Answer:

Gross profit = Revenue from operations – Cost of revenue from operations
= 5,00,000 – 2,00,000
= Rs 3,00,000
Cost of revenue from operations = Purchase of stock in trade + Changes in inventories
= 1,80,000 + 20,000 = Rs 2,00,000

Question 40.
Explain arty five applications of computerised accounting system (CAS).
Answer:
The applications of CAS are as follows

1. Maintaining accounting records
2. Inventory management
3. Pay-roll preparation
4. Report generation
5. Data Import/Export

PART – IV

Answer all the following questions. [7 × 5 = 35]

Question 41 (a).
Ananth does not keep his books under double entry system. Find the profit or loss made by him for the year ending 31st March, 2019.

Ananth had withdrawn Rs 60,000 for his personal use. He had introduced Rs 17,000 as capital for expansion of his business. Create a provision of 5% on debtors. Plant and machinery is to be depreciated at 10%.
Answer:

[OR]

(b) What are the applications of computerised accounting system?
Answer:
Computerised accounting system refers to the system of maintaining accounts using computer. It involves the processing of accounting transactions through the use of computer in order to maintain and produce accounting records and reports.
The applications of computerised accounting system are as follows:
(i) Maintaining accounting records:
In computerised accounting system, accounting records can be maintained easily and efficiently for long time period. It does not require a large amount of physical space. It facilitates fast and accurate retrieval of data and information.

(ii) Inventory management:
Computerised accounting system facilitates efficient management of inventory, fast moving, slow’ moving and obsolete inventory can be identified. Updated information about availability of inventory, Level of inventory etc, can be obtained instantly.

(iii) Payroll Preparation:
Payroll involves the calculation of amount due to an employee. Pay of an employee may be calculated based on hours/days worked or units produced.

(iv) Report generation:
Computerised accounting system helps to generate various routine and special purpose reports.

(v) Data import/export:
Accounting data and information can be imported from or exported to other users within the organisation as well as outside the organisation.

(vi) Taxation:
Computerised accounting system helps to compute various taxes and to deduct these and deposit .the same to the Government account.

Question 42 (a).
What are the Sailent Feature of tally ERP.9?
Answer:
(i) A leading accounting package:
The first version of Tally was released in 1988 and through continuous development is now recognised as one of the leading accounting packages across the world with over a quarter million of customer Tally’s market share is more than 90%.

(ii) No accounting codes:
Unlike other computerised accounting packages which require numeric codes. Tally ERP 9 pioneered the “no accounting codes’” concept. Tally ERP 9 users have the freedom to allocate meaningful names in plain english to their data items in the system.

(iii) Compute business solution:
Tally ERP 9 provides a comprehensive solution to the accounting and inventory needs of a business. The packages comprises financial accounting book keeping and inventory accounting. It also has various tools to extract interpret and present data.

(iv) Speed:
It allows the user to maintain multiple companies and with unlimited levels of classification andJgrouping capabilities. It also allows dried down facility from report level to transaction level.

(v) Versatibility:
Tally ERP is suitable for a range of organisations from small grocery stores to large corporations with international locations and operations.

(vi) Online help:
The Tally ERP 9 online help (AH + H) provides instant assistance on basic and advanced feathers or any other relavent topics of Tally ERP. 9.

[OR]

(b) From the following Receipts and Payments account and from the information given below of Ramanathapuram Sports Club, prepare Income and Expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.

Additional information:
(j) Capital fund as on 1st January 2018 Rs 30,000.
(ii) Opening stock of sports material Rs 3,000 and closing stock of sports material Rs 5,000.
Answer:
Income and Expenditure Account for the year ended 31.12.18

Question 43 (a).
From the following Receipts and Payments account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.
Answer:

Additional information:
(i) Opening capital fund Rs 20,000.
(ii) Stock of books on 1.4.2018 Rs 9,200.
(iii) Subscription due but not received Rs 1,700.
(iv) Stock of stationery on 1.4.2018 Rs 1,200 and stock of stationery on 31.3.2019, Rs 2,000
Answer:
Income and Expenditure Account for the year ended 31.03.19

[OR]

(b) From the following details of Rakesh, prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and a Balance Sheet as on that date.

Answer:

Question 44 (a).
Arulappan and Nallasamy are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st January 2018, their capitals were Rs 20,000 and Rs 10,000, respectively. The partnership deed specifies the following:
(a) Interest on capital is to be allowed at 5% per annum.
(b) Interest on drawings charged to Arulappan and Nallasamy are Rs 200 and Rs 300, respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings amounted to Rs 18,000.
Give necessary journal entries and prepare Profit and loss appropriation account for the year ending 31st December 2018. Assume that the capitals are fluctuating.
Answer:
Journal entries

[OR]

(b) Find out the value of goodwill by capitalising super profits:
(a) Normal Rate of Return 10%
(b) Profits for the last four years are Rs 30,000, Rs 40,000, Rs 50,000 and Rs 45,000.
(c) A non-recurring income of Rs 3,000 is included in the above mentioned profit of Rs 30,000.
(d) Average capital employed is Rs 3,00,000.
Answer:

Total profit = 27000 + 40000 + 50000 + 45000 = 162000

Question 45 (a).
Vetri and Ranjit are partners sharing profits in the ratio 3 : 2. Their balance sheet as on 31st December 2017 is as under.

On 1.1.2018 they admit suriya into their firm as a partner on the following arrangements,
(i) Suriya brings Rs 10,000 as capital for 1/4 share of profit
(ii) Stock to be depreciated by 10%
(iii) Debtors to be revalued at Rs 7,500
(iv) Furniture to be revalued at Rs 40,000.
(v) There is an outstanding wages of? 4,500 not yet recorded. Prepare revaluation account, partners capital account and the balance sheet of the firm after admission.
Answer:

[OR]

(b) Chandru, Vishal and Ramanan are partners in a firm sharing profits and losses equally. Their balance sheet as on 31st March, 2018 is as follows:

Ramanan retired on 31st March 2019 subject to the following conditions:
(i) Machinery is valued at Rs 1,50,000
(ii) Value of furniture brought down by Rs 10,000
(iii) Provision for doubtful debts should be increased to Rs 5,000
(iv) Investment of Rs 30,000 not recorded in the books is to be recorded now.
Pass necessary journal entries and prepare revaluation account and capital account of partners.
Answer:

Question 46 (a).
Kannan, Rahim and John are partners in a firm sharing profit and losses in the ratio of 5 : 3 : 2. The balance sheet as on 31st December, 2017 was as follows:

John retires on 1st January 2018, subject to following conditions:
(i) To appreciate building by 10%
(ii) Stock to be depreciated by 5%
(iii) To provide ? 1,000 for bad debts
(iv) An unrecorded liability of ? 8,000 have been noticed
(v) The retiring partner shall be paid immediately
Prepare revaluation account, partners capital account and the balance sheet of the firm after retirement.
Answer:

[OR]

(b) Sudha Ltd. offered 1,00,000 shares of Rs 10 each to the public payable Rs 3 on application, Rs 4 on share allotment and the balance when required. Applications for 1,40,000 shares were received on which the directors allotted as:
Applicants for 60,000 shares – Full
Applicants for 75,000 shares – 40,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares – Nil
All the money due was received. Pass journal entries up to the receipt of allotment.
Answer:

Working note

Question 47 (a).
Prepare common-size statement of financial position of Saleem Ltd as on 31st March, 2017 and 31st March, 2018.

Answer:
Common-size balance sheet of Saleem Ltd as on 31st March, 2017 and 31st March, 2018

[OR]

(b) From the following Balance Sheet of James Ltd. as on 31.03.2019 calculate
(i) Debt-equity ratio
(ii) Proprietary ratio
(iii) Capital gearing ratio
Balance Sheet of James Ltd. as on 31.03.2019

Answer:

Long term debts = Debentures = 3,00,000
Shareholder’s funds = Equity share capital + Preference share capital + Reserves and surplus
= 2,50,000 + 2,00,000 + 1,50,000
= 6,00,000

Funds bearing fixed interest or dividend = Preference share capital + Debentures + Long term borrowings.
= 2,00,000 + 3,00,000
= 5,00,000
Equity shareholder’s funds = Equity share capital + Reserves and surplus
= 2,50,000 + 1,50,000
= 4,00,000
Capital gearing ratio = 4 00 000 = \(\frac{500000}{400000}\) = 1.25 : 1

Students can Download Tamil Nadu 12th Accountancy Model Question Paper 4 English Medium Pdf, Tamil Nadu 12th Accountancy Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 12th Accountancy Model Question Paper 4 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

PART – I

Answer all the questions. Choose the correct answer. [Answers are in bold] [20 x 1 = 20]

Question 1.
Companies cannot keep books on single entry system because of……….
(a) tax properties
(b) legal provisions
(c) both (a) and (b)
(d) None of these
Answer:
(b) legal provisions

Question 2.
Bills receivable endorsed are debited to………
(a) Bills receivable A/c
(b) Debtors A/c
(c) Creditors A/c
(d) None of these
Answer:
(c) Creditors A/c

Question 3.
The amount or property received by a non-profit organisation as stated by the will of a decreased person is commonly referred to as……….
(a) Donations
(b) Honorarium
(c) Legacy
(d) Endowment
Answer:
(c) Legacy

Question 4.
In non-profit organisation the sale of old newspapers is generally considered as a/an …….
(a) Revenue Receipts
(b) Expenditure
(c) Income
(d) capital Receipt
Answer:
(c) Income

Question 5.
Which of the following method, the capital of the partners is not altered and it remains generally fixed?
(a) Fixed capital method
(b) Fluctuating capital method
(c) Both ‘a’ and ‘b’
(d) None of these
Answer:
(a) Fixed capital method

Question 6.
All the transactions between the partner and the firm are recorded in the……..
(a) Capital A/c
(b) Drawing A/c
(c) Profit and loss A/c
(d) Revaluation A/c
Answer:
(a) Capital A/c

Question 7.
Which of the following method goodwill is calculated by multiplying the weighted average – profit?
(a) Super profit method
(b) Annuity
(c) Weighted average profit method
(d) All of these
Answer:
(c) Weighted average profit method

Question 8.
Self-generated goodwill should not be shown in the……….
(a) Journal
(b) Ledger
(c) Balance sheet
(d) Books of accounts
Answer:
(d) Books of accounts

Question 9.
When A and B sharing profits and losses in the ratio of 3:2 they admit C as a partner giving him 1/3 share of profits. This will be given by A and B………
(a) Equality
(b) In the ratio of their capitals
(c) In the ratio of their profit
(d) None of these
Answer:
(c) In the ratio of their profit

Question 10.
In order to maintain fair dealings, at the time of admission it is necessary to revalue assets and liabilities of the firm to their………
(a) Cost price
(b) True value
(c) Selling price
(d) None of these
Answer:
(b) True value

Question 11.
In both types of policies the insurance premium is paid by the……….
(a) Sale tradership
(b) Partnership firm
(c) Hindu undivided family
(d) None of these
Answer:
(b) Partnership firm

Question 12.
The policy amount received from the insurance company, is used to settle the amount due to the………..
(a) Increased partner
(b) Decreased partner
(c) Partnership at will
(d) Partnership deed
Answer:
(b) Decreased partner

Question 13.
The capital of a company is divided into small units of………..
(a) Current amount
(b) fixed amount
(c) Capital amount
(d) None of these
Answer:
(b) fixed amount

Question 14.
Equity shares do not enjoy any ………..
(a) Equity rights
(b) Preference rights
(c) Dividend of rights
(d) Ordinary shares
Answer:
(b) Preference rights

Question 15.
Comparative statements and trend percentages are examples of …………
(a) Cash flow analysis
(b) Trend analysis
(c) Horizontal analysis
(d) Vertical analysis
Answer:
(c) Horizontal analysis

Question 16.
Preparation of common size statements and computation of ratios are examples………..
(a) Ratio analysis
(b) vertical analysis
(c) Horizontal analysis
(d) None of these
Answer:
(b) vertical analysis

Question 17.
Which ratio is the proportion, of fixed income bearing funds to ………..
(a) Debt, equity ratio
(b) Capital gearing ratio
(c) Propreetory ratio
(d) Profitability ratio
Answer:
(b) Capital gearing ratio

Question 18.
Which ratio indicates the efficiency of utilisation of fixed assets ……….
(a) Inventory turnover ratio
(b) Trade receivables turnover ratio
(c) Trade payable turnover ratio
(d) Fixed assets turnover ratio
Answer:
(d) Fixed assets turnover ratio

Question 19.
All transactions related to receipt either in cash or through bank are recorded using……….
(a) Payment voucher
(b) Centra voucher
(c) Receipt voucher
(d) Sales voucher
Answer:
(c) Receipt voucher

Question 20.
All transactions related to payments either in Cash or through bank are recorded using………..
(a) Journal voucher
(b) Centra voucher
(c) Receipt voucher
(d) Payment voucher
Answer:
(d) Payment voucher

PART – II

Answer any seven questions in which question no. 30 is compulsory. [7 × 2 = 14]

Question 21.
What is a statement of affairs?
Answer:
A statement of affairs is a statement showing the balances of assets and liabilities on a particular date. The balance of assets are shown on the right side and the balance of liabilities on the left side. This statement resembles a balance sheet. The difference between the total of assets and total of liabilities is taken as capital.
Capital = Assets – Liabilities

Question 22.
How will the following appear in the final accounts of Marthandam woman Cultural Association.
Stock of sports materials on 1.4.2018 16,000
Sport materials purchased 84,000
Stock of sports materials on 31.3.19 10,000
Answer:

Question 23.
Mani is a partner, who withdrew Rs 30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.
Answer:
Mani:
30,000 × \(\frac{6}{100}\) x \(\frac{4}{12}\) = Rs 600
Interest on drawings of Mani = Rs 600

Question 24.
The following are the profits of a firm in the last five years: 2014: Rs 4,000; 2015: Rs 3,000; 2016: Rs 5,000; 2017: Rs 4,500 and 2018: Rs 3,500. Calculate the value of goodwill at 3 years purchase of average profits of five years.
Answer:
Goodwill = Average profit × Number of years of purchase

Goodwill = Average profit × Number of years of purchase
= 4,000 × 3 = Rs 12,000.

Question 25.
What is goodwill?
Answer:
Goodwill is the good name or reputation of the business which brings benefit to the business. It enables the business to earn more profits. It is the present value of a firm’s future excess earnings.

Question 26.
Anbu and Raju are partners sharing profits in the ratio of 3 : 2. Akshai is admitted as a partner. The new profit sharing ratio among Anbu. Raju and Akshai is 5 : 3 : 2. Find out the sacrificing ratio.
Answer:
Old ratio of Anbu and Raju = 3 : 2 that is, \(\frac{3}{5}\) : \(\frac{2}{5}\)
New Ratio of Anbu, Raju and Akshai = 5 : 3 : 2 that is, \(\frac{5}{10}\) : \(\frac{3}{10}\) : \(\frac{2}{10}\)
Share sacrificed = Old share – New share

Question 27.
Vivin, Hari and Joy are partners sharing profits and losses in the ratio of 3 : 2 : 1. On 31.3.2017, Hari retired. On the date of retirement, the books of the firm showed a general reserve of Rs 60,000. Pass the journal entry to transfer the general reserve.
Answer:
Journal Entry

Question 28.
List the tools of financial statement analysis.
Answer:

1. Comparative Statement
2. Common size statement
3. Trend analysis
4. Funds flow analysis
5. Cash flow analysis

Question 29.
Calculate quick ratio of Ananth Constructions Ltd from the information given below.

Answer:

Quick assets = Current assets – Inventories – Prepaid expenses
= 2,50,000 – 50,000 – 15,000
= Rs 1,85,000

Question 30.
What are the pre-defined ledgers available in Tally.ERP-9.
Answer:
Tally has two-predefined ledgers cash and profit and loss A/c. The user has to create various other ledgers based on their requirements. Pre-defined group/ledger cannot be deleted.

PART-III

Answer any seven questions in which question No. 40 is compulsory. [7 × 3 = 21]

Question 31.
On 1st April 2017, Ganesh started his business with a capital of Rs 75,000. He did not maintain proper book of accounts. Following particulars are available from his books as on 31.03.2018.

During the year he withdrew Rs 15,000 for his personal use. He introduced further capital of Rs 20,000 during the year. Calculate his profit or loss.
Answer:
Statement of affairs of Ganesh as on 31st March, 2018

For finding out the closing capital, Statement of affairs as on 31st March, 2018 is prepared. Statement of profit or loss for the year ending 31st March, 2018

Question 32.
Compute income from subscription for the year 2018 from the following particulars relating to a club.

Answer:
Subscription received during the year 2018: Rs 45,000.
Income and Expenditure Account for the year ended 31.03.2019

Question 33.
State the difference between fixed capital method and fluctuating capital method.
Answer:

S. No.	Basis of distinction	Fixed capital method	Fluctuating capital method
1.	Number of accounts	Two accounts are maintained for each partner, that is, capital account and current account.	Only one account, that is, capita] account is maintained for each partner.
2.	Change in capital	The amount of capital normally remains unchanged expect when additional capital is introduced or capital is withdrawn permanently.	The amount of capital changes from period to period.
3.	Closing balance	Capital account always shows a credit balance. But, current account may show either debit or credit balance.	Capital account generally shows credit balance. It may also show a debit balance.
4.	Adjustments	All adjustments relating to interest on capital, interest on drawings, salary or commission, share of profit or loss are done in current account.	All adjustments relating to interest on capital, interest on drawings, salary or commission, share of profit or loss are done in the capital account.

Question 34.
From the following information, calculate the value of goodwill based on 3 years purchase of super profit
(i) Capital employed: Rs 2,00,000
(ii) Normal rate of return: 15%
(iii) Average profit of the business: Rs 42,000
Answer:
Normal profit = Capital employed × Normal rate of return
= 2,00,000 × 15% = Rs 30,000
Super profit = Average profit – Normal profit
= 42,000 – 30,000 = Rs 12,000
Goodwill = Super profit × Number of years of purchase
= 12,000 × 3 = Rs 36,000

Question 35.
Govind and Gopal are partners in a firm sharing profits in the ratio of 5 : 4. They admit Rahim as a partner. Govind surrenders 2/9 of his share in favour of Rahim. Gopal surrenders 1/9 of his share in favour of Rahim. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:

Question 36.
Balu, Chandru and Nirmal are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March 2018, Nirmal retires from the firm. On the date of Nirmal’s retirement, goodwill appeared in the books of the firm at Rs 60,000. By assuming fluctuating capital account, pass the necessary journal entry if the partners decide to
(а) write off the entire amount of existing goodwill
(b) write off half of the existing goodwill.
Answer:

Question 37.
State the different between preference shares and equity shares?
Answer:

S. No.	Points to Distinct	Preference Shares	Equity Shares
1.	Rate of Dividend	Rate of Dividend is fixed.	Ratio of Dividend varies from year to year depending upon profits available.
2.	Redemption	These are redeemed after stipulated period but within period of ten years from the date of issue.	These shares are not redeemed during the lifetime of the company. At the time of winding up
3.	Participation in management	They have no right to participate in management.	These shareholders have the right to participate in management.

Question 38.
Briefly explain any three limitations of financial statements.
Answer:
(i) Lack of qualitative information : Qualitative information, that is non-monetary information is also important for business decisions. For e.g. Efficiency of the employees and efficiency of the management. But this is ignored in financial statements.

(ii) Record of historical data : Financial statement are prepared based on historical data. They may not reflect the current position.

(iii) Ignores price level changes : Adjustments for price level changes are not made in the financial statements. Hence financial statements may not reveal the current position.

Question 39.
State any three advantages of ratio analysis.
Answer:
(i) Measuring operational efficiency : Ratio analysis helps to know operational efficiency of a business by finding the relationship between operating cost and revenues and also by comparison of present ratios with those of the past ratios.

(ii) Intra firm comparison : Comparison of efficiency of different divisions of an organisation is possible by comparing the relevant ratios.

(iii) Inter firm comparison : Ratio analysis helps the firm to compare its performance with other firms.

Question 40.
Explain any five applications of computerised accounting system (CAS).
Answer:
The applications of CAS are as follows

1. Maintaining accounting records
2. Inventory management
3. Pay-roll preparation
4. Report generation
5. Data Import/Export
6. Taxation

PART – IV

Answer all the following questions. [7 × 5 = 35]

Question 41(a).
From the following details you are required to calculate credit sales and credit purchases by preparing total debtors account, total creditors account, bills receivable account and bills payable account.

Answer:

[OR]

(b) From the following Receipts and Payments account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.

Additional information:
(i) Opening capital fund Rs 20,000.
(ii) Stock of books on 1.4,2018 Rs 9,200.
(iii) Subscription due but not received Rs 1,700.
(iv) Stock of stationery on 1.4.2018 Rs 1,200 and stock of stationery on 31.3.2019, Rs 2,000
Answer:
Income and Expenditure Account for the year ended 31.03.19

Question 42(a).
Following is the Receipts and Payments Account of Salem Recreation Club for the year ended 31st March, 2019.
In the books of Salem Recreation Club

Additional information:
(i) There are 450 members each paying annual subscription of Rs 30.
(ii) Stock of stationery on 31st March, 2018 Rs 300 and on March 31, 2019 Rs 500.
(iii) Capital fund as on 1st April 2018 was Rs 9,300.
Prepare income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.
Answer:

[OR]

(b) From the following‘details you are required to calculate credit sales and credit purchases by preparing total debtors account, total creditors account, bills receivable account and bills payable account.

Answer:

Question 43(a).
Arulappan and Nallasamy are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st January 2018, their capitals were Rs 20,000 and Rs 10,000, respectively. The partnership deed specifies the following:
(a) Interest on capital is to be allowed at 5% per annum.
(b) Interest on drawings charged to Arulappan and Nallasamy are Rs 200 and Rs 300, respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings amounted to Rs 18,000.
Give necessary journal entries and prepare Profit and loss appropriation account for the year en’ding 31st December 2018. Assume that the capitals are fluctuating.
Answer:
Journal entries

[OR]

(b) Calculate the value of goodwill at 5 years purchase of super profit from the following information:
(i) Capital employed: Rs 1,20,000
(ii) Normal rate of profit: 20%
(iii) Net profit for 5 years:
2014: Rs 30,000; 2015: Rs 32,000; 2016: Rs 35,000; 2017: Rs 37,000 and 2018: Rs 40,000
(d) Fair remuneration to the partners Rs 2,800 per annum.
Answer:

Normal profit = Capital employed × Normal rate of return
= 1,20,000 × 20%
= Rs 24,000
Super profit = Average profit – Normal profit
= 32,000 – 24,000
= 8,000
Goodwill = Super profit × Number of years of purchase
= 8,000 × 5
= Rs 40,000

Question 44(a).
Distribution of Profits: Anitha, Ramita were partners sharing profit and losses in the ratio of 7 : 3. Their capitals were Rs. 80,000 and Rs. 60,000, respectively.
(i) Interest on capital @10% p.a
(ii) Interest on drawings @12% p.a
(iii) Both to get a salary of Rs. 10,000 each per annum
(iv) Anitha to get a commission of 10% on the net profit before charging such commission. The profit for the year Rs. 60,000. Drawings were Anitha Rs. 12,000 and Ramita Rs 8,000. Show profit and loss appropriation account and the capital A/c.
Answer:

[OR]

(b) From the following information relating to Sridevi enterprises, calculate the value of goodwill on the basis of 4 years purchase of the average profits of 3 years.
(a) Profits for the years ending 31st December 2016, 2017 and 2018 were Rs 1,75,000, Rs 1,50,000 and Rs 2,00,000, respectively.
(b) A non-recurring income of Rs 45,000 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs 30,000.
Calculation of adjusted profit.
Answer:

Average profit = \(\frac{Total profit}{Number of years}\)
Total profit 1,60,000 + 1,20,000 + 23,000
= 4,80,000
Average profit = \(\frac{4,80,000}{3}\) = Rs 1,60,000
Goodwill = Average profit × No. of year purchase
= Rs 1,60,000 × 4 = Rs 64,00,000

Question 45(a).
Vetri and Ranjit are partners sharing profit in the ratio 3 : 2. Their balance sheet as on 31st December 2017 is under.

On 1.1.2018 they admit suriya into their firm as a partner on the following arrangements.
(i) Suriya brings Rs 10,000 as capital for 1/4 share of profit
(ii) Stock to be depreciated by 10%
(iii) Debtors to be revalued at Rs 7,500
(iv) Furniture to be revalued at Rs 40,000.
(v) There is an outstanding wages Rs 4,500 not yet recorded. Prepare revaluation account, partners’ capital account and the balance sheet of the firm after admission.
Answer:

[OR]

(b) Sundar and Suresh are partners sharing profits in the ratio of 3 : 2. Their balance sheet as on 1st January, 2017 was as follows:

They decided to admit Sugumar into partnership for 1/4 share in the profits on the following terms:
(a) Sugumar has to bring in Rs 30,000 as capital. His share of goodwill is valued at Rs 5,000. He could not bring cash towards goodwill.
(b) That the stock be valued at Rs 20, 000.
(c) That the furniture be depreciated by Rs 2,000.
(d) That the value of building be depreciated by 20%.
Prepare necessary ledger accounts and the balance sheet after admission.
Answer:

Question 46(a).
Charles, Muthu and Sekar are partners, sharing profits in the ratio of 3 : 4 : 2. Their balance sheet as on 31st December 2018 is as under:

On 1,1.2019, Charles retired from the partnership firm on the following arrangements:
(i) Stock to be appreciated by 10%
(ii) Furniture to be depreciated by 5%
(iii) To provide Rs 1,000 for bad debts
(iv) There is an outstanding repair of Rs 11,000 not yet recorded
(v) The final amount due to Charles was paid
Prepare revaluation account, partners capital account and the balance sheet of the firm after retirement.
Answer:

[OR]

(b) Varsha, Shanthi and Madhuri are partners, sharing profits in the ratio of 5 : 4 : 3. Their balance sheet as on 31st December 2017 is as under:
Balance Sheet as on 31st December 2017

On 1.1.2018, Madhuri died and on her death the following arrangements are made:
(i) Stock to be depreciated by Rs 5,000
(if) Premises is to be appreciated by 20%
(iii) To provide Rs 4,000 for bad debts
(iv) The final amount due to Madhuri was not paid
Prepare revaluation account, partners capital account and the balance sheet of the firm after death.
Answer:

Question 47 (a).
Lalitha Ltd. offered Rs 30,000 equity shares of ? 10 each to the public payable Rs 2 per share on application, Rs 3 on share allotment and the balance when required. Applications for 50,000 shares were received on which the directors allotted as:
Applicants for 10,000 shares – Full
Applicants for 35,000 shares – 20,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares – Nil
All the money due was received. Pass journal entries upto the receipt of allotment.
Answer:
Journal Entries

Working notes

[OR]

(b) Prepare common-size income statement for the following particulars of Sam Ltd.

Answer:
Common Size Income statement of Sam Ltd.

Students can Download Tamil Nadu 12th Accountancy Model Question Paper 3 English Medium Pdf, Tamil Nadu 12th Accountancy Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 12th Accountancy Model Question Paper 3 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

PART – I

Answer all the questions. Choose the correct answer.[Answers are in bold] [20 x 1 = 20]

Question 1.
The total assets of the proprietor are ? 5,00,000. His liabilities ? 3,50,000. Then his capital in the business is
(a) Rs 8,50,000
(b) Rs 1,50,000
(c) Rs 3,50,000
(d) Rs 4,25;000
Answer:
(b) Rs 1,50,000

Question 2.
A firm has assets worth Rs 60,000 and capital 45,000; then its liabilities is
(a) Rs 45,000
(b) Rs 1,05,000
(c) Rs 60,000
(d) Rs 15,000
Answer:
(d) Rs 15,000

Question 3.
Income and expenditure accounts show
(a) Cash available to an organization
(b) Closing capital of an organization
(c) Cash available in the bank account
(d) Surplus or deficit for the current accounting period
Answer:
(d) Surplus or deficit for the current accounting period

Question 4.
On what basis the receipts and payments account is prepared
(a) Cash basis
(b) Credit basis
(c) Both
(d) None of these
Answer:
(a) Cash basis

Question 5.
The balance in the appropriation account is transferred to the partner’s capital account in the
(a) Agree ratio
(b) Sacrifice ratio
(c) Profit sharing ratio
(d) Old ratio
Answer:
(c) Profit sharing ratio

Question 6.
Amount invested by partners in the partnership business is called
(a) Owner’s capital
(b) Partners capital
(c) Profit and loss appropriation
(d) None of these
Answer:
(b) Partners capital

Question 7.
The profit earning capacity of the firm determines the value of its
(a) Balance Sheet
(b) good will
(c) Profit and Loss Account
(d) All of these
Answer:
(b) good will

Question 8.
Goodwill acquired by making payment in cash or kind is called
(a) Purchased goodwill
(b) Self-generated goodwill
(c) Average goodwill
(d) (a) and (b)
Answer:
(a) Purchased goodwill

Question 9.
A new partner may be admitted to a partnership
(a) with the consent of all the partners
(b) with the consent of any one partner
(c) with the consent of two-third of the old partners
(d) with the consent of three-fourth of the old partners
Answer:
(a) with the consent of all the partners

Question 10.
An incoming partner is liable for all the acts of the firms dare
(a) Before his admission
(b) After his admission
(c) From six months prior to his admission
(d) None of these
Answer:
(b) After his admission

Question 11.
The profit or loss arising therefrom is transferred to the capital accounts of all the partners in the
(a) New profit sharing ratio
(b) Old profit sharing ratio
(c) Gaining ratio
(d) Sacrificing ratio
Answer:
(b) Old profit sharing ratio

Question 12.
The settlement is to be done in the manner prescribed in the
(a) Partnership-at-will
(b) Partnership deed
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Partnership deed

Question 13.
Company is a voluntary association of persons which has separate
(a) legal entity
(b) voluntary association
(c) common seal
(d) limited liability
Answer:
(a) legal entity

Question 14.
The liability of the shareholders of the company is limited to the extent of face value of the shares held by the
(a) share holders
(b) card holders
(c) debenture holders
(d) None of these
Answer:
(a) share holders

Question 15.
The term fund refers to
(a) working capital
(b) opening capital
(c) closing capital
(d) None of these
Answer:
(a) working capital

Question 16.
When figure relating to several years are considered for the purpose of analysis, the analysis is called
(a) Horizontal analysis
(b) vertical analysis
(c) Trend analysis
(d) Cash flow analysis
Answer:
(a) Horizontal analysis

Question 17.
Which ratios measure the firm’s ability to meet its short term obligations in time?
(a) Profitability Ratios
(b) Liquidity Ratios
(c) Activity Ratios
(d) None of these
Answer:
(b) Liquidity Ratios

Question 18.
For Calculating Quick Assets – and- are excluded from current assets
(a) Debtors and inventory
(b) Inventory and Bills payable
(c) Cash and Bank balances
(d) Inventory and Prepaid Expenses
Answer:
(d) Inventory and Prepaid Expenses

Question 19.
Ideal current Ratio is
(a) 1 : 1
(b) 1 : 2
(c) 2 : 1
(d) 3 : 1
Answer:
(c) 2 : 1

Question 20.
Which of the following options is used to view Trial Balance from Gateway of Tally?
(a) Gateway of Tally → Reports → Trial Balance
(b) Gateway of Tally → Trial Balance
(c) Gateway of Tally → Reports → Display → Trial Balance
(d) None of these
Answer:
(c) Gateway of Tally → Reports → Display → Trial Balance

PART – II

Answer any seven questions in which question no. 30 is compulsory. [7 × 2 = 14]

Question 21.
From the following particulars ascertain profit or loss?
Capital as on 1. 4. 2018 1,60,000
Capital as on 31. 3. 2019 1,50,000
Additional capital introduced 25,000
Drawings made during the year 30,000
Answer:
Statement of profit or loss for the year ended 31.3.2019

Question 22.
From the following particulars of Tamil Educational Society.
Prepare Receipts and Payments for the year ended 31.03.2019

Answer:

Question 23.
What is partners current account?
Answer:
Under fixed capital method, Capital account and current accounts are maintained. In current account all adjustments relating to partners are recorded on the credit side of current account viz: Interest on capital, Share of profits, Salary and commission etc are recorded.
On the debit side drawings interest on drawings, share of loss are recorded. Current account sometimes show credit or debit balance.

Question 24.
The following are the profits of a firm in the last five years 2014 – Rs 4,000, 2015 – Rs 3,000, 2016 – Rs 5,000, 2017 – Rs 4,500, 2018 – Rs 3,500. Calculate the value of goodwill at 3 years purchase of average profit of five year.
Answer:
Goodwill = Average profit × No. of years of purchase

Good will = Average profit × No. of years of purchase
= Rs 4,000 × 3
Goodwill = Rs 12,000

Question 25.
Mala and Vimala were partners sharing profit and losses in the ratio of 3 : 2. On 31.3.2017. Varshini was admitted as a partner. On the date of admission. The book of the firm showed a reserve fund of Rs 50,000. Pass the journal entry to distribute the reserve fund.
Answer:
Journal Entry

Question 26.
Mary, Vleena, Mariam are partners of a firm sharing profit and losses equally. Many retired from the partnership on 1.1.2019. On that date, their balance sheet showed accumulated loss of Rs 75,000. On the assets side of Balance Sheet. Give the journal entry to distribute the accumulated loss.
Answer:
Journal Entry

Question 27.
Anitha was holding 500 equity shares of Rs 10 each of Thanjavur Motors Ltd. issued at par. She paid Rs 3 on application Rs 5 on allotment but could not pay the first and final call of Rs 2. The directors forfeited the shares for non payment of call money. Give Journal Entry for forfeiture of shares.
Answer:
Journal Entry

Question 28.
What is working capital?
Answer:
Working capital statement or schedule of changes in working is prepared to disclose net changes in working capitals on two specific dates (generally two balance sheet dates). It is prepared from current assets and current liabilities.
Working Capital = Current Assets – Current Liabilities

Question 29.
What is meant by accounting ratio?
Answer:
Ratio is a mathematical expression of relationship between two related or interdependent items. It is the numerical or quantitative relation ship between two items. It is calculated by dividing one item by the other related item. When ratios are calculated on the basis of accounting information, these are called ‘accounting ratio’.

Question 30.
What are accounting reports?
Answer:
Accounting report is a compilation of accounting information that are derived from the accounting records of a business concern. Accounting reports may be classified as routine reports and special purpose reports.

PART – III

Answer any seven questions in which question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
Following are the balances of Shanthi as on 31.12.2018

Answer:
Prepare a statement of affairs as on 31.12.2018 and calculate capital as at that date.

Question 32.
Compute income from subscription for the 2018 from the following particulars relatiiig to a club.

Answer:
Subscription received during the year 2018 Rs 1,50,000
Calculation of incomes from subscription for 2018

Question 33.
From the following information prepare capital accounts of partners Mannan and Sevagan when their capitals are fluctuating.

Answer:
Partners Capital Account

Question 34.
From the following information relating to Sridevi Enterprises, calculate the value of goodwill on the basis of 4 years purchase of the average profit of 3 years.
(a) Profits for the year ending 31st December 2016, 2017 and 2018 were Rs 1,75,000, 1,50,000 and Rs 2,00,000 respectively.
(b) A non – recuring income of Rs 45,000 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs. 30,000
Answer:
Calculation of adjusted profit

Goodwill = Average profit × Number of years of purchase
= 1,60,000 × 4
= Rs 6,40,000

Question 35.
A, B and C were partners. Sharing profits and losses in the ratio of 5 : 3 : 2. D is admitted into a partnership. The following adjustments are to be made.
(a) Increase the value of premises by Rs 60,000
(b) Depreciate stock by Rs 5,000; Furniture by Rs 2,000 and Machinery by Rs 2,500.
(c) Provide for an outstanding liabilities of Rs 500. Pass the journal entries.
Answer:
Journal Entries

Question 36.
Kavitha, Kumudha and Lalitha are partners sharing profit and losses in the ratio of 5 : 3 : 3 respectively. Kumudha retires on 31st Dec 2018. On the date of retirement, her capital account shows a credit balance of Rs 2,00,000 pass journal entries of
(i) The amount due is paid off immediately by cheque.
(it) The amount due is not paid immediately
(iii) Rs 70,000 is paid immediately by cheque
Answer:

Question 37.
Maruthu Ltd. forfeited 150 equity shares @ Rs 10 each for non-payment of final call of Rs 4/- per share of these 100 shares were reissued @ Rs 9/- per share. Pass journal entries for forfeiture and reissue.
Answer:
Journal entries

Forfeited shares:
150 shares = Rs 900
100 shares \(\frac{900}{150}\) × 100 = Rs 600
Gain or loss = Amount forfeited – loss on reissue
= Rs 600 – 100 = Rs 500

Question 38.
From the following particulars prepare comparative income statement of Mary Co. Ltd.

Answer:
Comparative income statement of Mary Co. Ltd. for the year ended 31st March 2016 and 31st March 2017

Note: Calculation of income tax
For 2015-16 = 2,00,000 × 20% = Rs 40,000;
For 2016-17 = 3,20,000 × 50% = Rs 1,60,000

Question 39.
Explain the objectives of ratio analysis?
Answer:
Following are the objectives of ratio analysis.

1. To Simplify accounting figures
2. To Facilitate analysis of financial statements
3. To analyses the operational efficiency of a business.
4. To help in budgeting and forecasting
5. To facilitate intro firm and inter firm comparison of performance.

Question 40.
Mention the commonly used voucher types in Tally ERP.9. Following are some of the major accounting vouchers used in an organisation.
Answer:

1. Receipt voucher
2. Payment voucher
3. Contra voucher
4. Purchase voucher
5. Sales voucher
6. Journal voucher

PART – IV

Answer all the following questions. [7 × 5 = 35]

Question 41 (a).
Raju does not keep proper books of accounts. Following details are taken from his records.

During the year introduced further capital of? 50,000 and withdraw ? 2,500 per month from the business for his personal use. Prepare statement of profit or loss with above information.
Answer:
Statement of affairs as on 1.1.2018

[OR]

(b) From the following particular calculate total purchases.

Answer:

Total Purchases = Cash Purchases + Credit Purchases
= Rs 3,20,000 + Rs 4,80,000
= Rs 8,00,000

Question 42(a).
From the following Receipts and Payments Account of Friends Football club for the year ending 31st March 2017. Prepare income and expenditure Account for the year ending 31.3.2017.

Additional information:
(i) The club had furniture of Rs 12,000 on 1.4.2016. Ignore depreciation on furniture
(ii) Subscription outstanding for 2016-17- Rs 600
(iii) Stock of sports material on 31.03.2017- Rs 100
(iv) Capital Fund as on 1st April 2016 was Rs 23,000
Answer:
Income and Expenditure Account for the year ended 31.03.17

[OR]

(b) From the following balance sheets of Brindha and Praveena who share profits and losses in the ratio of 3 : 4, calculate interest on capital at 6% p.a. for the year ending 31st December 2017.
Balance sheet as on 31st December 2017

On 1st July 2017, Brindha introduced an additional capital of Rs 6,000 and on 1st October 2017, Praveena introduced Rs 10,000. Drawings of Brindha and Praveena during the year were Rs 5,000 and Rs 7,000 respectively. Profit earned during the year was Rs 31,000.
Answer:

Profit credited = Profit earned Rs 31,000 – Balance profit as per balance sheet Rs 10,000 = Rs 21,000. This amount is distributed in their profit sharing ratio of 3 : 4.
Calculation of interest on capital:

Question 43(a).
Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st January 2018, their capitals were Rs 50,000 and Rs 30,000 respectively. The partnership deed specifies the following:
(a) Interest on capital is to be allowed at 6% per annum.
(b) Interest on drawings charged to Anand and Narayanan are Rs 1,000 and Rs 800 respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings amounted to Rs 35,000.
Give necessary journal entries and prepare profit and loss appropriation account as on 31st December 2018. Assume that the capitals are fluctuating.
Answer:

[OR]

(b) The following particulars are available in respect of a business carried on by a partnership firm:
(i) Profits earned: 2016: Rs 30,000; 2017: Rs 29,000 and 2018: Rs 32,000.
(ii) Profit of 2016 includes a non-recurring income of Rs 3,000.
(iii) Profit of 2017 is reduced by Rs 2,000 due to stock destroyed by fire.
(iv) The stock is not insured. But, it is decided to insure the stock in future. The insurance premium is estimated at Rs 5,600 per annum.
You are required to calculate the value of goodwill on the basis of 2 years purchase of average profits of the last three years.
Answer:

Goodwill = Average profit × Number of years of purchase
= 24,400 × 2 = Rs 48,800

Question 44(a).
Sri Ram and Raj are partners sharing profits and losses in the ratio of 2 : 1. Nelson joins as a partner on 1st April 2017. The following adjustments are to be made.
(i) Increase the value of stock by Rs 5,000
(ii) Bring into record investment of Rs 7,000 which had not been recorded in the books of the firm.
(iii) Reduce the value of office equipment by Rs 10,000
(iv) A provision would also be made for outstanding wages for Rs 9,500. Give journal entries and prepare revaluation account.
Answer:
Journal Entries

[OR]

(b) Kannan, Rahim and John are partners in a firm sharing profit and losses in the ratio of 5 : 3 : 2. The balance sheet as on 31st December, 2017 was as follows:

John retires on 1st January 2018, subject to following conditions:
(i) To appreciate building by 10%
(ii) Stock to be depreciated by 5%
(iii) To provide Rs 1,000 for bad debts
(iv) An unrecorded liability of Rs 8,000 have been noticed
(v) The retiring partner shall be paid immediately
Prepare revaluation account, partners capital account and the balance sheet of the firm after retirement.
Answer:

Question 45(a).
Sudha Ltd. offered 1,00,000 shares of Rs 10 each to the public payable Rs 3 on application, Rs 4 on share allotment and the balance when required. Applications for 1,40,000 shares were received on which the directors allotted as:
Applicants for 60,000 shares – Full
Applicants for 75,000 shares – 40,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares – Nil
All the money due was received. Pass journal entries upto the receipt of allotment.
Answer:
In the books of Sudha Ltd. Journal entries

Working note

[OR]

(b) Prepare common-size statement of financial position for the following particulars of Rani Ltd.

Answer:
Common Size Balance sheet of Rani Ltd. as on 31st March 2016 to 31st March 2017

Question 46(a).
Lalitha Ltd. offered 30,000 equity shares of Rs 10 each to the public payable Rs 2 per share on application, Rs 3 on share allotment and the balance when required. Applications for 50,000 shares were received on which the directors allotted as:
Applicants for 10,000 shares – Full
Applicants for 35,000 shares – 20,000 shares (excess money will be utilised for allotment)
Applicants for 5,000 shares – Nil
All the money due was received. Pass journal entries upto the receipt of allotment.
Answer:
Journal Entries

[OR]

(b) From the following particulars of Neithal Ltd, calculate trend percentages.

Answer:
Trend analysis for Neithal Ltd

Question 47 (a).
From the following particulars, calculate the trend percentages of Babu Ltd.

Answer:
Trend Percentage of Babu Ltd. (In Thousands)

[OR]

(b) Calculate
(i) Inventory turnover ratio
(ii) Trade receivable turnover ratio
(iii) Trade payable turnover ratio and
(iv) Fixed assets turnover ratio from the following information obtained from Delphi Ltd.

Additional information:
Revenue from operations for the year Rs 10,50,000
Purchases for the year Rs 4,50,000
Cost of revenue from operations Rs 6,00,000
Assume that sales and purchase are for credit
Answer:

Students can Download Tamil Nadu 12th Accountancy Model Question Paper 2 English Medium Pdf, Tamil Nadu 12th Accountancy Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 12th Accountancy Model Question Paper 2 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

PART-I

Answer all the questions. Choose the correct answer. [Answers are in bold] [20 × 1 = 20]

Question 1.
In case of net worth method of single entry system profit is ascertained by
(a) Comparing the capital in the beginning of the accounting period and the capital at the end of the accounting period
(b) Preparing profit and loss account
(c) Preparing a balance sheet
(d) Representative Personal Account
Answer:
(a) Comparing the capital in the beginning of the accounting period and the capital at the end of the accounting period

Question 2.
Profit = capital at the end + ? – capital introduced – capital in the beginning ………
(a) Sales
(b) Drawing
(c) Net purchases
(d) Revenue expenditure
Answer:
(b) Drawing

Question 3.
From the incomplete records, it is possible to prepare…………
(a) Ledger Accounts
(b) Trial Balance
(c) Statement of Affairs
(d) Personal Account
Answer:
(c) Statement of Affairs

Question 4.
Which of the following is to be recorded in an income and expenditure account?
(а) Purchase of a fixed asset
(б) Capital expenditure incurred in a fixed asset
(c) Profit on the sale of fixed asset
(d) Sale of a fixed assets
Answer:
(c) Profit on the sale of fixed asset

Question 5.
Subscription due but not yet earned is considered as an…………
(a) Asset
(b) Liability
(c) Income
(d) Expenditure
Answer:
(a) Asset

Question 6.
In India partnership firms are governed by the Indian Partnership act ………….
(a) 1932
(b) 1930
(c) 1992
(d) 1986
Answer:
(a) 1932

Question 7.
The maximum number of partners in a partnership firm is……….
(a) 25
(b) 10
(c) 30
(d) 50
Answer:
(d) 50

Question 8.
The monetary value of such advantage is termed as………..
(a) Goodwill
(b) Bank overdraft
(c) Capital
(d) Cash
Answer:
(a) Goodwill

Question 9.
Goodwill helps in earning more profit and attracts more…………
(a) Customers
(b) Producers
(c) Competitors
(d) Suppliers
Answer:
(a) Customers

Question 10.
When are unrecorded liabilities is brought into books is results in …………
(a) Profit
(b) loss
(c) income
(d) expense
Answer:
(b) loss

Question 11.
The revaluation profit or loss is transferred to the old partner’s capital accounts in their……..
(a) Old ratio
(b) New ratio
(c) Sacrifice ratio
(d) Gain ratio
Answer:
(a) Old ratio

Question 12.
A partner who retires from the firm is called an……….
(a) outgoing partner
(b) admitted partner
(c) death of a partner
(d) none of these
Answer:
(a) outgoing partner

Question 13.
Profits and loses of previous years which are not distributed to the partners are known as ………
(a) Accumulated profit and losses
(b) General reserve
(c) Reserve fund
(d) Workmen compensation fund
Answer:
(a) Accumulated profit and losses

Question 14.
The money raised by issuing shares is called………
(a) Share capital
(b) Dividend
(c) Equity capital
(d) Share application
Answer:
(a) Share capital

Question 15.
Profits are distributed among the shareholders in the form of………..
(a) Share
(b) Dividends
(c) Both
(d) None of these
Answer:
(b) Dividends

Question 16.
Which statements are involve personal judgements in certain cases?
(a) Financial statements
(b) Income statements
(c) Profit and loss account statements
(d) None of these
Answer:
(a) Financial statements

Question 17.
Different tools are used for analysing the…………
(a) Balance sheet
(b) Financial statement
(c) Income statement
(d) None of these
Answer:
(b) Financial statement

Question 18.
If the two items in a ratio are from income statement it is classified as ………….
(a) Balance sheet ratio
(b) Income statement ratio
(c) Inter-statement ratio
(d) None of these
Answer:
(b) Income statement ratio

Question 19.
If a ratio is computed with one item from income statement and another item from balance sheet it is called ……….
(a) Inter-statement ratio
(b) Balance sheet ratio
(c) Income statement ratio
(d) None of these
Answer:
(a) Inter-statement ratio

Question 20.
Transactions are to be recorded through………….
(a) Journal entries
(b) Voucher entries
(c) Accounting entries
(d) None of these
Answer:
(b) Voucher entries

PART – II

Answer any seven questions in which question no. 30 is compulsory. [7 × 2 = 14]

Question 21.
What are the possible reasons for keeping in complete records?
Answer:
(i) Simple method:
Proprietor, who do not have the proper knowledge of accounting principles. Find it much convenient and easier to maintain their business records under this system.
(ii) Less expensive:
It is an economical mode of maintaining records as there is no need to appoint specialised accountant.

Question 22.
What are the features of not- for-profit organisation?
Answer:

1. They are the organisations which function without any profit motive.
2. Their main aim is to provide services to a specific group or the public at large.
3. They do not undertake business or trading activities.

Question 23.
Mannan and Ramesh share profit and losses 3 : 1. The capital of Rs 80,000 and Rs 60,000 and their current accounts show a credit balance of Rs 10,000 and Rs 5,000 respectively. Calculate interest on capital at 5% p.a. for the year ending 31st march 2018 and show the journal entries.
Answer:
Interest on capital = amount of capital × rate of interest
Interest of Mannan’s capital = 80,000 × \(\frac{5}{100}\) = Rs 4,000
Interest of Ramesh’s capital = 60,000 × \(\frac{5}{100}\) = Rs 3,000
Note:
Balance of current account will not be considered for calculation of interest on capital.

Question 24.
The following are the profit of a firm in the last five years 2014 – Rs 8,000, 2015 – Rs 6,000, 2016 – Rs 10,000, 2017 – Rs 9,000, 2018 – Rs 7,000. Calculate the value of goodwill at 3 years purchase of average profits of five year.
Answer:
Goodwill = Average profit × No. of years of purchase

Goodwill = Average profit × No. of years of purchase
= Rs 8,000 × 3
Goodwill = Rs 24,000

Question 25.
What is the journal entries of transferring of accumulated profit and reserves?
Answer:

Question 26.
Kiran, vinoth and vimal are partners sharing profits in the ratio 5 : 3 : 2. Kiran retires and the new profit sharing ratio between vinoth and vimal is 2 : 1. Calculate the gaining ratio.
Answer:
Share gained = New share – Old Share

Question 27.
What is the journal entry forfeiture of shares?
Answer:
Journal Entry

Question 28.
What is analysis of Financial statement?
Answer:

1. Methodical classification of the data given in the financial statement.
2. Explaining the meaning and significance of the relationship between various financial factor,
3. Comparison of these relationship.

Question 29.
Calculate quick ratio of Ananth construction ltd from the following given below. Total current liabilities Rs 1,00,000, Inventories Rs 50,000,
Total current assets Rs 25,000, prepaid expenses Rs 15,000.
Answer:

= Current assets – Inventories – Prepaid expenses
= 2,50,000 – 50,000 – 15,000
= Rs 1,85,000

Question 30.
What are accounting reports?
Answer:
Accounting report is a compilation of accounting information that are derived from the accounting records of a business concern. Accounting reports may be classified as routine reports and special purpose reports.

PART – III

Answer any seven questions in which question No. 40 is compulsory. [7 × 3 = 21]

Question 31.
Following are the balances in the books of Thomas as on 31st march 2019.

Answer:

Question 32.
From the following particulars of Tamil Educational society. Prepare Receipts and payments account for year ended 31st march 2019.

Answer:

Question 33.
Mr A and B started a business on 1.4.2014 with capital of Rs 60,000, Rs 50,000 respectively. On 1st July 2014 Mr A withdrawal of Rs 8000 from his capital. Mr. B introduced additional capital Rs 10,000 on 30.9.2014. Calculate interest on capital at 5% p.a. for the year ending 31.03.2015.
Answer:

Question 34.
A firm has decided to value its goodwill at 3 years purchase of the average profits of 4 years using weighted average methods. Profits of past 4 years & respective weights are as follows.

compute the value of good will.
Answer:

Goodwill = Weighted Average profit × Number of years of purchase
= 24,800 × 3 = Rs 74,400

Question 35.
Sri Ram and Raj are partners sharing profit and losses in the ratio of 2 : 1. Nelson joins as a partner on 1.4.17.
The following adjustments are to be made.
(i) Increase the value of stock Rs 5,000
(ii) Bring into record investments of Rs 7,000, which had not been recorded in the books of the firm.
(iii) Reduce the value of office equipment by Rs 10,000.
(iv) A provision would also be made for outstanding wages for Rs 9,500. Give the journal entries.
Answer:
Journal Entries

Question 36.
Rahul, Ravi and Rohit are partners, sharing profits and loss in the ratio of 5 : 3 : 2. Rohit retires and the share is taken by Rahul and Ravi in the ratio of 3 : 2. Find out the new profit sharing ratio and gaining ratio.
Answer:
Rohit share = \(\frac{2}{10}\)
Share gained = Retiring partner share × Proportion of share gained

New share of continuing partners = old share + share gained

Question 37.
Anu company forfeited 200 equity shares of Rs 10 each issued at par held by thiyagu for non-payment of the final call of Rs 3 per share. The shares were reissued to laxman at Rs 6 per share, show the journal entries.
Answer:
In the books of Anu Company Journal entries

Question 38.
From the following prepare comparative income statement of Tharun & Co. Ltd.

Answer:
Comparative incomp statement of Tharun Co. Ltd. for the year ended 31st March 2017 and 31st March 2018

Tutorial note: Computation of percentage increase for revenue from operations.

Question 39.
Calculate operating profit ratio under the following cases,
Case 1: Revenue from operation Rs 20,00,000 operating profit Rs 3,00,000
Case 2: Revenue from operation Rs 30,00,000 operating cost Rs 24,00,000
Case 3: Revenue from operation Rs 40,00,000 gross profit 30% on revenue from
operations expenses Rs 8,00,000.
Answer:

Operating profit = Revenue from operation – operating cost
= 30,00,000 – 24,00,000 = Rs 6,00,000

Operating profit = Gross profit – Operating expenses
= 12,00,000 – 8,00,000 = Rs 4,00,000

Question 40.
What are the salient features of computerised Accounting system?
Answer:
(i) Simplicity:
They are easy to set up and simple to us.
(ii) Speed:
They are capable to generation instant and accurate report.
(iii) Power:
They are capable of maintaining accounts of multiple companies and with unlimited levels of classification.
(iv) Flexibility:
They provide flexibility to generate instant reports for giving period.

PART – IV

Answer all the following questions. [7 × 5 = 35]

Question 41(a).
From the following particulars calculate total purchase.

Answer:
Bills payable account

Total Purchases = Cash purchases + credit Purchase
= 7 3,20,000 + 74,80,000 = 7 8,00,000

[OR]

(b) From the following receipts and payments account of yercaud youth Association. Prepare income and expenditure Account for the year ended 31st march 2019 and the balance sheet as on that date.

Additional information:
(i) Opening capital fund Rs 20,000
(ii) Stock of books on 1.4.2018 Rs 9,200
(iii) Subscription due but not received Rs 1,700
(iv) Stock of stationery on 1.4.2018 Rs 1,200; stock of stationery on 31.3.2019 Rs 2,000.
Answer:
Income and Expenditure Account for the year ended 31.3.2019

Question 42(a).
Miss. Soniya sport equipment does not keep proper records from the following informations. Find out profit or loss and also prepare balance sheet for the year ended 31st December 2017.

Drawing Rs 10,000 per month for personal use, additional capital introduced during the year Rs 2,00,000. A bad debts Rs 2,000 and a provision of 5% to be made in debtors. Outstanding salary Rs 2,600 prepaid insurance Rs 700 depreciation changed as furniture at 10% P.a.
Answer:
Statement of affairs as on 31st December 2016

Balance sheet as on 31.3.2017

[OR]

(b) From the following Receipts and Payment account of Neyveli Science Club for the year ended 31st December 2018.

Additional information:
(i) Opening capital fund Rs 6,400
(ii) Subscription includes Rs 600 for the year 2019
(iii) Science equipment as on 1.1.2018 Rs 5,000
(iv) Surplus on account of exhibition should be kept in reserve for new auditorium.
Prepare income and expenditure account for the year ended 31st December 2018 and the balance sheet as on that date.
Answer:
Income and Expenditure Account for the year ended 31st Dec. 2018

Question 43(a).
Arulappan and Nallasamy are partners sharing profit and losses in the ratio 4 : 1. On 1st January 2018 their capitals were Rs 20,000 and Rs 10,000 respectively. The partnership deed specifies the following.
(а) Interest on capital is to he allowed at 5%P.a
(b) Interest on drawings charged to Arulappan and Nallasamy are Rs 200 and Rs 300 respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings amounted to Rs 18,000.
Give the journal entries and prepare profit and loss appropriation account for the year ending 31st December 2018. Assume that the capitals are fluctuating.
Answer:
Journal Entries

[OR]

(b) From the following information compute the value of goodwill by super profit method & capitalising method
(i) Capital employed is Rs 4,00,000
(ii) Normal rate of return is 10%
(iii) Profit for 2016 : Rs 62,000; 2017 : Rs 61,000 and 2018 : Rs 63,000
(iv) Super profit method:
Answer:

Normal profit = capital employed × Normal rate of return
= 400000 × \(\frac{10}{100}\)
= 40000
Super profit = Average profit – Normal profit = Rs 62,000 – 40,000
= Rs 22,000

Goodwill = Total capitalised value of the average profit – Capital employed = Rs 6,20,000 – 4,00,000
= Rs 22,000

Question 44(a).
Calculate the value of goodwill of the partnership firm of 2 partners
(а) At the 3 years purchase of average profits
(b) At the 3 years purchase of super profits
(c) On the basis of capitalisation of super profits
(d) On the basis of capitalisation of average profits
(i) Average capital employed Rs 7,00,000
(ii) Net trading results of the firm 2014 – Rs 1,47,600, 2015 – Loss Rs 1,48,100, Profit for 2016 – Rs 4,48,700
(iii) Interest on capital @ 18%
(iv) Remuneration Rs 500 per month.
Answer:
Calculation of Average profit and super profit
Total profit = Rs 1,47,600 – Rs 1,48,100 + Rs 4,48,700 = Rs 4,48,200

Super profit = Average profit – Normal profit
= 1,37,400 – 1,26,000
Super profit = Rs 11,400
(a) Average profit method:
Average profit × No. of years purchase
= Rs 1,37,400 × 3 = Rs 4,12,200
(b) Super profit method:
Super profit × No. of years purchase
= Rs 11,400 × 3 = Rs 34,200

[OR]

(b) Sri Ram and Raj are partners sharing profits in the ratio 2 : 1. Nelson joins as a partner on 1st April 2017. The following adjustments are to be made.
(i) Increase the value of Rs 10,000
(ii) Bring into record investment of Rs 14,000 which had not been recorded in the books of the firm.
(iii) Reduce the value of office equipment by Rs 20,000
(iv) A provision would also be made for outstanding wages for Rs 19,000. Give journal entries and prepare revaluation account.
Answer:
Journal Entries

Question 45(a).
Raj an and selva are partners sharing profit and losses in the ratio of 3:1. sheet as on 31st march 2017.

On 1.4.2017 they admit Ganesan as a new partner on the following arrangements
(i) Ganesan brings 10,000 as capital for 1/5 share of profit.
(ii) Stock and furniture is to be reduced by 10% a reserve of 5% on debtors for doubtful debts is to be created.
(iii) Appreciate building by 20%
Prepare revaluation account, partners capital account and the balance sheet of the firm after admission.
Answer:

[OR]

(b) The balance sheet of Rekha and mary on 31.12.2018 as

They share the profit and losses in the ratio 3 : 1. They agreed to admit kavitha into the partnership firm for 1/4 share of profits which she gets entirely gets from Rekha. Following are the conditions,
(i) Kavitha has to bring Rs 20,000 as capital. Her share of goodwill is valued at 4,000. She could not bring cash towards goodwill.
(ii) Depreciate buildings by 10%
(iii) Stock to be the revalued at Rs 6,000
(iv) Create provision for doubtful debts @ 5% on debito?
Prepare necessary ledger accounts and the balance sheet after admission.
Answer:

Question 46(a).
Charles, Muthu and sekar are partners sharing profits in the ratio 3 : 4 : 2. Their balance sheet as on 31st december 2018 is as under.

(i) On 1.1. 2019 Charles retired from the partnership firm on the following arrangements. Stock to be appreciated by 10%
(ii) Furniture to be depreciated by 5%
(iii) To provide Rs 1000 for bad debts
(iv) There is an outstanding repair of Rs 11,000 not yet recorded.
(v) The final amount due to Charles was paid.
Prepare revaluation account, capital account and the balance sheet of partner’s frim after the retirement.
Answer:

Balance sheet

[OR]

(b) Thangam Ltd issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows.
On application Rs 5, on allotment Rs 5 (including premium) on first and final call Rs 2.
Issue was fully subscribed and the amounts due were received except priya to whom 500 shares were allotted who faded to pay the allotment money and first and final call money. Her shares were forfeited. All the forfeited shares were reissued to devi Rs 8 per share. Pass journal entries.
Answer:
Journal Entries

Question 47(a).
Compute trend percentage for the following particular of Boomi Ltd.

Answer:

[OR]]

(b) Calculate-
(i) inventory turnover ratio
(ii) Trade receivable turnover
(iii) Trade payable turnover ratio
(iv) Fixed assets turnover ratio
(v) Gross profit ratio from the following,

Additional information:
Revenue from operations for the year Rs 10,50,000
Purchases for the year Rs 4,50,000
Cost of revenue from operations RS 6,00,000
Assume that sales and purchase are for credit
Answer:


Gross profit = Revenue from operations – Cost of revenue from operations
= 10,50,000 – 6,00,000
= 7 4,50,000

Students can Download Tamil Nadu 12th Accountancy Model Question Paper 1 English Medium Pdf, Tamil Nadu 12th Accountancy Model Question Papers helps you to revise the complete Tamilnadu State Board New Syllabus, helps students complete homework assignments and to score high marks in board exams.

TN State Board 12th Accountancy Model Question Paper 1 English Medium

Instructions:

1. The question paper comprises of four parts.
2. You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
3. All questions of Part I, II. III and IV are to be attempted separately.
4. Question numbers 1 to 20 in Part I are Multiple Choice Questions of one mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer.
5. Question numbers 21 to 30 in Part II are two-mark questions. These are to be answered in about 50 words.
6. Question numbers 31 to 40 in Part III are three-mark questions. These are to be answered in about 150 words.
7. Question numbers 41 to 47 in Part IV are five-mark questions. These are to be answered in about 250 words. Draw diagrams wherever necessary.

Time: 2.30 Hours
Max Marks: 90

Part -I

Answer all the questions. Choose the correct answer. [Answers are in bold] [20 × 1 = 20]

Question 1.
Capital in the beginning of the accounting year is ascertained by preparing
(a) Debtors A/c
(b) Cash A/c
(c) Opening statement of affairs
(d) None of these
Answer:
(c) Opening statement of affairs

Question 2.
Single entry system can be adopted by
(a) Small firms
(b) Joint stock companies
(c) Co-op societies
(d) None of these
Answer:
(a) Small firms

Question 3.
An advance receipt of subscription from a member of the non-profit organisation is considered as an
(a) Expenses
(b) Liability
(c) Equity
(d) Assets
Answer:
(b) Liability

Question 4.
Income and expenditure account is based on
(a) Cash Accounting
(b) Government Accounting
(c) Management Accounting
(d) Accrual Accounting
Answer:
(d) Accrual Accounting

Question 5.
The name under which the business of a firm is carried on is called the
(a) Company name
(b) Firm name
(c) Partnership firm
(d) Partner’s name
Answer:
(b) Firm name

Question 6.
The profit or loss arising from the partnership business is shared by the partners ………. in the
(a) Old ratio
(b) New ratio
(c) agreed ratio
(d) Sacrifice ratio
Answer:
(c) agreed ratio

Question 7.
Which is the present value of a firm’s future excess earnings?
(a) Fixed assets
(b) Current assets
(c) Goodwill
(d) None of these
Answer:
(c) Goodwill

Question 8.
Goodwill is shown under fixed assets in the
(a) Trial balance
(b) Balance sheet
(c) Trading A/c
(d) P and L A/c
Answer:
(b) Balance sheet

Question 9.
Revaluation account is also called
(a) Accumulation profit and loss A/c
(b) Profit and loss adjustment A/c
(c) Profit and loss appropriation A/c
(d) None of these
Answer:
(b) Profit and loss adjustment A/c

Question 10.
When the value of assets increases it results in
(a) profit
(b) loss
(c) income
(d) expense
Answer:
(a) profit

Question 11.
When a partner leaves from a partnership firm, it is known as
(a) Admission
(b) Retirement
(c) Dissolution
(d) Death
Answer:
(b) Retirement

Question 12.
The firm is reconstituted and other partners continue the partnership firm with a new………..
(a) contract
(b) agreement
(c) start business
(d) none of these
Answer:
(b) agreement

Question 13.
In order to meet them production must be carried on a
(a) small scale
(b) large scale
(c) medium scale
(d) none of these
Answer:
(b) large scale

Question 14.
The capital of companies is divided into small unit is
(a) shares
(b) debentures
(c) dividend
(d) none of these
Answer:
(a) shares

Question 15.
Which statement are prepared by the business concerns at the end of the accounting period to ascertain the operating results and the financial position?
(a) Trend analysis
(b) Income statement
(c) Financial statement
(d) Balance sheet
Answer:
(c) Financial statement

Question 16.
Financial statements are prepared based on………..
{a) Past data
(b) Future cost
(c) Terminal cost
(d) Historical cost
Answer:
(d) Historical cost

Question 17.
The financial status and financial performance of business entities can be assessed through………..
(a) Financial analysis
(b) Managerial analysis
(c) Cash flow statement
(d) None of these
Answer:
(a) Financial analysis

Question 18.
If both items in a ratio are from balance sheet it is classified as………..
(a) Inter statement ratio
(b) Income statement ratio
(c) Balance sheet ratio
(d) All of these
Answer:
(c) Balance sheet ratio

Question 19.
CAS helps to compute various taxes and to deduct these and deposit the same to the………..
(a) Private A/c
(b) Company A/c
(c) Government A/c
(d) None of these
Answer:
(c) Government A/c

Question 20.
In 2009, Tally solutions introduced the software………..
(a) Tally ERP 9
(b) Tally ERP 10
(c) Tally ERP 6.0
(d) None of these
Answer:
(a) Tally ERP 9

PART – II

Answer any seven questions in which question No. 30 is compulsory. [7 × 2 = 14]

Question 21.
What shall be the profits of the concern? if,
Opening capital 3,20,000, Drawings 72,000
Closing capital 3,60,000, Additional capital 20,000
Statement of Profit or Loss
Answer:

Question 22.
How will the following items appear in income and expenditure account?

Stock of sport materials (1.4.2018)	6,000	Stock sports materials (31.3.2019)	8,000
Sports materials purchased	18,000
Sale of old sport materials	1,000

Answer:

Question 23.
What is partnership deed?
Answer:
Partnership deed is a documents in writting that contains the terms of agreement among the partners. It is not compulsory for a partnership to have a partnership deed as per the Indian partnership Act 1932.

Question 24.
What is normal rate of return?
Answer:
Normal rate of return refers to the rate at which profit is earned by similar business entities in the Industry under normal circumstances.

Question 25.
Give the Journal Entry for writing off existing goodwill at the time of admission of a new partner?
Answer:

Question 26.
A, B and C are partners sharing profits in the ratio of 3:2:1. A retires and the new profit sharing ratio between B and C is 2:3. Calculate the gaining ratio.
Answer:
Share gained = New share – old share

∴ The gaining ratio of B, C = 2 : 13

Question 27.
What are the methods of issue of equity shares?
Answer:
A public company may raise capital by issue of equity shares through the following ways:
Public issue
Private placement
Rights issue
Bonus issue

Question 28.
What are “Financial Statements”?
Answer:
Financial statements are the statements prepared by the business concern at the end of the accounting period to ascertain the operating results and the financial position. The basic financial statements prepared by business concerns are income statement and balance sheet.

Question 29.
Calculate quick ratio; Total current liabilities Rs 2,40,000; Total current assets Rs 4,50,000; Inventories Rs 70,000; prepaid expenses Rs 20,000.
Answer:
Current liabilities
Quick ratio = \(\frac{Quick assets}{Current liabilities}\)
Quick assets = Current assets – Inventories – Prepaid expenses
Rs 4,50,000 – 70,000 – 20,000
= Rs 3,60,000
Quick ratio = \(\frac{360000}{240000}\)
= 1.5 : 1

Question 30.
What are accounting reports?
Answer:
Accounting report is a compilation of accounting information that are derived from the accounting records of a business concern. Accounting reports may be classified as routine reports and special purpose reports.

PART – III

Answer any seven questions in which question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
What are the features of incomplete records?
Answer:
(i) Nature:
It is an unscientific and unsystematic way of recording transactions. Accounting principles and accounting standards are not followed properly.
(ii) Lack of uniformity:
There is no uniformity in recording the transactions among different organisations. Different organisations record their transactions according to their needs and conveniences.
(iii) Suitability:
Only the business concerns which have no legal obligation to maintain books of accounts under double entry system may maintain incomplete records. Hence it may be maintained by small sized sole traders and partnership firms.

Question 32.
From the following particulars, show how the items “subscription” will appear in the income and expenditure account for the year ended 31.2.2018. Subscription received in 2018 is Rs 32,000; which includes Rs 3,000 for 2017 and Rs 5,000 for 2019. Subscription outstanding for the year 2018 is Rs 4,000; subscription of Rs 2,000 was received in advance for 2018 in the year 2017.
Answer:
Income and expenditure account for the year ended 31.12.2018

Question 33.
From the following information, prepare capital accounts of Mannan and Sevagan where their capitals and fluctuating.

Answer:

Question 34.
The following particulars are available in respect of a business carried on by a partnership firm.
a) Profits earned 2016 – 30,000; 2017 – 29,000; 2018 – 32,000.
b) Profit of 2016 includes a non-recurring income of Rs 3,000.
c) Profit of 2017 is reduced by Rs 2,000 due to stock destroyed by fire.
d) The stock is not insured. But it is decided to insure the stock in future. The insurance premium is estimated at Rs 5,600 p.a. You are required to calculate the value of goodwill on the basis of 2 years purchase of average profit of the last three years.
Answer:
Calculation of adjusted profit

Goodwill = Average profit × Number of years of purchase
= 24,400 × 2 = Rs 48,800

Question 35.
A and B are partners sharing profits in the ratio of 3 : 2. ‘C’ is admitted as a new partner and the new profit sharing ratio is decided as 5 : 3 : 2. The following revaluation are made. Pass journal entries.
(a) The value of building is increased by Rs 15,000
(b) The value of the machinery is decreased by Rs 4,000
(c) Provision for doubtful debtors is made for Rs 1,000
Answer:
Journal Entries

Question 36.
Rathna, Baskar and Ibrahim are partners sharing profit and losses in the ratio of 2 : 3 : 4, respectively. Rathna died on 31st December 2018. Final amount due to her showed a credit balance of 1,00,000. Pass journal entries, if
(а) The amount due is paid off immediately by cheque
(b) The amount due is not paid immediately
(c) Rs 60,000 is paid immediately by cheque.
Answer:

Question 37.
Anu company forfeited 200 equity shares of Rs 10 each issued at par held by Thiyagu for non-payment of the final call of Rs 3 per share. The shares were reissued to Laxman at Rs 6 per share. Show the journal entries for forfeiture and reissue.
Answer:
Journal entries

Question 38.
From the following particulars prepare comparative income statements of Tharun co Ltd.

Answer:

Question 39.
Calculate operating profit ratio under the following cases:
Case 1: Revenue from operations and Rs 10,00,000, operating profit Rs 1,50,000
Case 2: Revenue from operations and Rs 15,00,000, operating cost Rs 12,00,000
Case 3: Revenue from operations and Rs 20,00,000, gross profit 30%.
On revenue from operations, operating expenses Rs 4,00,000.
Answer:
case 1:
operating profit ratio =

case 2:
operating profit ratio =

Operating profit = Revenue from operation – operating cost
= 15,00,000 – 12,00,000
= Rs 3,00,000

case 3:
operating profit ratio =

Gross profit = 20,00,000 × \(\frac{30}{100}\) = Rs 6,00,000
Operating profit = Gross profit – operating expenses Operating profit
= 6,00,000 – 4,00,000
= Rs 2,00,000

Question 40.
Write a brief note on accounting vouchers?
Answer:
This type of a voucher basically analyses a business transactions from the accounting stand point and is used for recording purposes. These are commonly prepared by accountants on the basis of supporting voucher and approved by a different individual. They are further sub¬divided into two. Cash and non-cash voucher.
Example of cash type:

1. Credit vouchers
2. Debit vouchers

Example of Non-cash type:

1. Debit Note
2. Credit Note
3. Invoice

PART – IV

Answer all the questions. [7 × 5 = 35]

Question 41(a)
David does not keep proper books of accounts. Following details are given from his records.

During the year, he introduced further capital of Rs 45,000 and withdraw of Rs 2,500 per month from the business for his personal use. Prepare the statement of profit or loss with the above information.
Answer:
Statement of affairs as on 1.4.2018 and 31.03.2019

[OR]

(b) Arun and Selvan are partners who maintain their capital accounts under fixed capital method. From the following particulars prepare capital accounts of partner

Answer:

Question 42(a)
From the following receipts and payments account of friends football club for the year ending 31st March 2017. Prepare income and expenditure account for the year ending , 31st March 2017 and the balance sheet as on that date.
In the books of Friends Football Club

Additional information:
(i) The club had furniture of Rs 12,000 on 1st April 2016. Ignore depreciation on furniture.
(ii) Subscription outstanding for 2016-17 – Rs 600
(iii) Stock of sports materials on 31.3.2017 – Rs 100
(iv) Capital fund as on 1st April 2016 was Rs 23,000
Answer:
In the books of Friends Football Club

[OR]

(b) Calculate the value of goodwill at 5 years purchase of super profit from the following information.
(i) Capital employed: Rs 60,000.
(ii) Normal rate of return: 20%
(iii) Net profit for 5 years: 2014 – 1,00,000; 2015 – Rs 50,000; 2016 – 70,000; 2017 – 54,000; 2018 – 10,000.
(iv) Fair remuneration to the partners Rs 3,600 p.a
Answer:


Normal profit = Capital employed × Normal rate of return
= 60000 × \(\frac{20}{100}\)
= Rs 12,000
super profit = Average profit – Normal profit
= 53,200 – 12,000
= 41,200
Goodwill = Super profit × Number of years of purchased R
= 41,200 × 5
= Rs 2,06,000

Question 43(a)
Hari, Madhavan and Kesavan are partners sharing ratio of 5 : 3 : 2. As from 1st April 2017. Vanmathi is admitted into the partnership and the new profit ratio is decided 4 : 3 : 2 : 1. The following adjustments are to be made.
(a) Increase the value of premises by Rs 60,000.
(b) Depreciate stock by Rs 5,000; furniture by Rs 2000 and machinery by Rs 2,500.
(c) Provide for an outstanding liability of Rs 500.
Pass journal entries and prepare revaluation.
Answer:
Journal Entries

[OR]

(b) Sundar, Vivek, and Pandian are partners sharing profits in the ratio of 3 : 2 : 1. Their balance sheet as on 31st Dec 2018 is as under.

On 1.1.2019 Pandian died and on his death the following arrangements are made,
(i) Stock to be depreciated by 10%.
(ii) Land is to be appreciated by Rs 11,000.
(iii) Reduce the value of debtors Rs 3,000.
(iv) The final amount due to Pandian was not paid. Prepare revaluation account, partner’s capital A/c and the balance sheet of the firm after death.
Answer:

Question 44(a)
Vetri and Ranjit are partners sharing profit in the ratio of 3 : 2. Their balance sheet as on 31st December 2017 as under.

On 1.1.2018, they admit suriya into their firm as a partner on the following arrangements.
(i) Suriya brings Rs 10,000 as, capital for 1/4th share of profit
(ii) Stock to be depreciated by 10%
(iii) Debtors to be revalue at Rs 7,500
(iv) Furniture to be revaluted at Rs 40,000
(v) There is an outstanding wages Rs 4,500 not yet recorded. Prepare revaluation account, partner’s capital account and the balance sheet of the firm after admission.
Answer:

[OR]

(b) Prabu, Raju and Siva are partners sharing profit and losses in the ratio of 3 : 2 : 1. Prabu retires from partnership on 1.4.2017.
The following adjustments are to be made:
(i) Increase the value of building by Rs 12,000
(ii) Reduce the value of furniture by Rs 8,500
(iii) A provision would also be made for outstanding salary for Rs 6500.
Answer:
Journal Entries

Question 45(a)
Mani, Rama and Devan are partners in a firm sharing profit and losses in the ratio of 4 : 3 : 3. Their balance sheet as on 31st March 2019 is as follows:

Vlani retired from the partnership firm on 31.03.2019 subject to the following
adjustments:
(i) Stock to be depreciated Rs 5,000.
(ii) Provision for doubtful debtors to be created for Rs 1,000.
(ii) Buildings to be appreciated by Rs 16,000. The final amount due to Mani is not paid immediately. Prepare revaluation A/c and Capital Account of partners after retirement.
Answer:

[OR]

(b) Joy company issued 10,000 equity shares at Rs 10 per share payable Rs 5 on application, Rs 3 on allotment and Rs 2 on first and final call. The public subscribed for 9,000 shares. The directors allotted all the 9,000 shares and duly received the money. Pass the necessary journal entries.
Answer:
Journal Entries

Question 46(a)
Thangam Ltd issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows:
On application Rs 5, on allotment Rs 5 (including premium), on first and final call Rs 2. Issue was fully subscribed and the amount due were received except Priya to whom 500 shares were allotted who failed to pay the allotment money and first and final call money. Her shares were forfeited. All the forfeited share were reissued to devi Rs 8 per share.
Answer:
Journal Entries

[OR]

(b) From the following particulars of Neithal Ltd. Calculate trend percentage.

Answer:

Question 47 (a)
From the following balance sheet of Gupta Ltd, prepare comparative balance sheet as on 31st March 2017 and 31st March 2018.

Answer:
Comparative balance sheet as on 31st March 2017 and 31.3.2018

[OR]

(b) Calculate
(i) inventory turnover ratio
(ii) Trade receivable (or) turnover ratio
(iii) Trade payable turnover ratio
(iv) Gross profit ratio
(v) Fixed assets turnover ratio.
From the following information obtained from Delphi Ltd.

Additional information:
Revenue from operations for the year – 10,50,000
Purchases for the year – 4,50,000
Cost of revenue from operations – 6,00,000
Assume that sales and purchases are for credit
Answer:

Gross profit ratio = Revenue from operation – Cost of revenue from operation
Gross profit ratio = 10,50,000 – 6,00,000 = Rs 4,50,000

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TN State Board 12th Accountancy Model Question Papers 2020 2021 English Tamil Medium

Tamil Nadu 12th Accountancy Model Question Papers English Medium 2020-2021

• Tamil Nadu 12th Accountancy Model Question Paper 1 English Medium
• Tamil Nadu 12th Accountancy Model Question Paper 2 English Medium
• Tamil Nadu 12th Accountancy Model Question Paper 3 English Medium
• Tamil Nadu 12th Accountancy Model Question Paper 4 English Medium
• Tamil Nadu 12th Accountancy Model Question Paper 5 English Medium

Tamil Nadu 12th Accountancy Model Question Papers Tamil Medium 2020-2021

• Tamil Nadu 12th Accountancy Model Question Paper 1 Tamil Medium
• Tamil Nadu 12th Accountancy Model Question Paper 2 Tamil Medium
• Tamil Nadu 12th Accountancy Model Question Paper 3 Tamil Medium
• Tamil Nadu 12th Accountancy Model Question Paper 4 Tamil Medium
• Tamil Nadu 12th Accountancy Model Question Paper 5 Tamil Medium

12th Accountancy Model Question Paper Design 2020-2021 Tamil Nadu

Types of Questions	Marks	No. of Questions to be Answered	Total Marks
Part-I Objective Type	1	20	20
Part-II Very Short Answers (Totally 10 questions will be given. Answer any Seven. Any one question should be answered compulsorily)	2	7	14
Part-Ill Short Answers (Totally 10 questions will be given. Answer any Seven. Any one question should be answered compulsorily)	3	7	21
Part-IV Essay Type	5	7	35
Marks			90
Internal Assessment			10
Total Marks			100

Tamil Nadu 12th Accountancy Model Question Paper Weightage of Marks

Purpose	Weightage
1. Knowledge	30%
2. Understanding	40%
3. Application	20%
4. Skill/Creativity	10%

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Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Maths Guide Pdf Chapter 4 Inverse Trigonometric Functions Ex 4.1 Textbook Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Maths Solutions Chapter 4 Inverse Trigonometric Functions Ex 4.1

Question 1.
Find all the values of x such that
Solution:
(i) sin x = 0
⇒ x = nπ
where n = 0, ±1, ±2, ±3, ……., ±10
(ii) sin x = -1
⇒ x = (4n – 1) \(\frac{\pi}{2}\), n = 0, ±1, ±2, ±3, 4

Question 2.
Find the period and amplitude of
Solution:
(i) y = sin 7x
For Amplitude use the form
y = a sin(bx – c) + d
Amplitude = |a|
a = 1, ∴ |a| = 1
Period using the formula = \(\frac{2π}{|b|}\) = \(\frac{2π}{|7|}\) = \(\frac{2π}{7}\)
∴ Amplitude = 1
Period = \(\frac{2π}{7}\)

(ii) y = -sin (\(\frac{1}{3}\)x)
a = -1, b = \(\frac{1}{3}\)
∴ Amplitude = |a| = |-1| = 1
Period = \(\frac{2π}{|b|}\) = \(\frac{2π}{| \frac{1}{3}|}\) = 3(2π) = 6π

(iii) y =4 sin (-2x)
a = 4, b = -2
Amplitude = |4| = 4
Period = \(\frac{2π}{|b|}\) = \(\frac{2π}{|-2|}\) = \(\frac{2π}{2}\) = π

Question 3.
Sketch the graph of y = sin (\(\frac{1}{3}\)x) for 0 ≤ x ≤ 6π
Solution:

Question 4.
Find the value of
(i) sin^-1 (sin(\(\frac{2π}{3}\)))
(ii) sin^-1 (sin(\(\frac{5π}{4}\)))
Solution:

Question 5.
For what value of x does sin x = sin^-1 x?
Solution:
sin x = sin^-1 x is possible only when x = 0 (∵ x ∈ R)

Question 6.
Find the domain of the following
(i) f(x) = sin^-1 (\(\frac{x²+1}{2x}\))
Solution:
f(x) = sin^-1 (\(\frac{x²+1}{2x}\))
Range of sin^-1x is [-1, 1]
-1 ≤ \(\frac{x²+1}{2x}\) ≤ 1
Multiply by 2x² ≥ 0

∴ solution is [-1, 1]

(ii) g (x) = 2 sin^-1 (2x – 1) – \(\frac{π}{4}\)
Range of 2 sin^-1 x is [-1, 1]
-1 ≤ 2x – 1 ≤ 1
2x – 1 ≤ 1 (or) 2x – 1 ≥ -1
2x ≤ 2 (or) 2x ≥ -1 + 1
x ≤ 1 (or) 2x ≥ 0 ⇒ x ≥ 0
x ≥ 0 and x ≤ 1
∴ solution is [0, 1]

Question 7.
Find the value of
(sin\(\frac{5π}{9}\) cos\(\frac{π}{9}\) + cos\(\frac{5π}{9}\) sin\(\frac{π}{9}\))
Solution:
sin (A + B) = sin A cos B + cos A sin B

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Maths Guide Pdf Chapter 3 Theory of Equations Ex 3.7 Textbook Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Maths Solutions Chapter 3 Theory of Equations Ex 3.7

Choose the most suitable answer.

Question 1.
A zero of x³ + 64 is:
(a) 0
(b) 4
(c) 4i
(d) -4
Solution:
(d) -4
Hint:
x³ = -64
x³ = -4 × -4 × -4 = (-4)³
x = -4

Question 2.
If f and g are polynomials of degrees m and n respectively, and if h(x) = (f o g) (x), then the degree of h is:
(a) mn
(b) m + n
(c) mⁿ
(d) n^m
Solution:
(a) mn
Hint:
Let f(x) = x^m and g(x) = xⁿ
degree = m, degree = n
(f o g) (x) = f(g(x)) = f(xⁿ) = (xⁿ)^m =x^mn
degree = mn

Question 3.
A polynomial equation in x of degree n always has:
(a) n distinct roots
(b) n real roots
(c) n imaginary roots
(d) at most one root.
Solution:
(a) n distinct roots

Question 4.
If α, β and γ are the roots of x³ + px² + qx + r, then Σ \(\frac{1}{α}\) is:
(a) –\(\frac{q}{r}\)
(b) –\(\frac{p}{r}\)
(c) \(\frac{q}{r}\)
(d) –\(\frac{q}{p}\)
Solution:
(a) –\(\frac{q}{r}\)
Hint:
x³ + px² + qx + r = 0
α, β, γ are the roots
α + β + γ = -p
αβ + βγ + γα = q
αβγ = -r
Σ \(\frac{1}{α}\) = \(\frac{1}{α}\) + \(\frac{1}{β}\) + \(\frac{1}{γ}\) = \(\frac{βγ+αβ+αγ}{αβγ}\) = –\(\frac{q}{r}\)

Question 5.
According to the rational root theorem, which number is not possible rational root of 4x⁷ + 2x⁷ – 10x³ – 5?
(a) -1
(b) \(\frac{5}{4}\)
(c) \(\frac{4}{5}\)
(d) 5
Solution:
(c) \(\frac{4}{5}\)
Hint:
By rational root of theorem,
\(\frac{p}{q}\) is a root of a polynomial a₀ = -5, a_n = 4 and (4, -5) = 1, then p must divide 5 and q must divide 4.
Possible values of p are +1, -1, +5, -5
Possible values of q are +1, -1, 4, -4
∴ \(\frac{4}{5}\) is not possible rational roots.

Question 6.
The polynomial x³ – kx² + 9x has three real roots if and only if, k satisfies:
(a) |k | ≤ 6
(b) k = 0
(c) |k| > 6
(d) |k| ≥ 6
Solution:
(d) |k| ≥ 6
Hint:
Δ ≥ 0
k² – 4(1)(9) ≥ 0
k² ≥ 36
|k| ≥ 6

Question 7.
The number of real numbers in [0, 2π] satisfying sin⁴x – 2 sin²x + 1 is:
(a) 2
(b) 4
(c) 1
(d) ∞
Solution:
(a) 2
Hint:
sin⁴x – 2sin²x + 1 = 0
Put sin²x = t [t² – 2t + 1 = 0 ⇒ (t – 1)² = 0]
t = 1, t = 1
sin²x = 1
sin x = ± 1
∴ sin x = 1, sin x = -1
sin x = sin \(\frac{π}{2}\), sin x = sin (π + \(\frac{π}{2}\))
x = \(\frac{π}{2}\), x = \(\frac{3π}{2}\)
Number of real numbers in [0, 2, π] is 2.

Question 8.
If x³ + 12x² + 10ax + 1999 definitely has a positive root, if and only if:
(a) a ≥ 0
(b) a > 0
(c) a < 0
(d) a ≤ 0
Solution:
(c) a < 0
Hint:
∴ If a < 0, then only we can get one sign change.

Question 9.
The polynomial x³ + 2x + 3 has:
(a) one negative and two real roots
(b) one positive and two imaginary roots
(c) three real roots
(d) no solution
Solution:
(a) one negative and two real roots
Hint:
p(x) = x³ + 2x + 3, no sign changes ⇒ no positive real roots.
p(-x) = -x³ – 2x + 3, one sign changes ⇒ one negative real roots.
∴ It has 1 negative root and 2 imaginary roots.

Question 10.
The number of positive roots of the polynomials \(\sum_{r=0}^{n}\) ⁿC_r (-1)^r x^r is
(a) 0
(b) n
(c) <n
(d) r
Solution:
(b) n
Hint:
\(\sum_{r=0}^{n}\) ⁿC_r (-1)^r x^r = xⁿ – ⁿC₁ x^n-1 + ⁿC₂ x^n-2 + …. + (-1)ⁿ
P(x) has n changes
∴ It has n positive changes
P(-x) has no changes
∴ no negative roots.