HSC Commerce Class 12 Maharashtra Accounts March 2022 Paper Solution

(A) Select the correct options and rewrite the statements

(1) To find out the net profit or net loss of the business _____________Account is prepared.
(a) Trading (b) Capital
(c) Current (d) Profit and Loss

(2) From financial statement analysis the creditors are specially interested to know____________
(a) Liquidity (b) Profits
(c) Sale                (d) Share Capital

(3) Death is a compulsory _____________               
(a) dissolution (b) admission
(c) retirement (d) winding up

(4) The due date of the bill drawn for 2 months on 23^rd November, 2019 will be _____________
(a) 23^rd Jan, 2020 (b) 25^th Jan, 2019
(c) 26^th Jan, 2019 (d) 25^th Jan, 2020

(5) Decrease in the value of assets should be_________________to Profit and Loss Adjustment Account.
(a) debited (b) credited
(c) added (d) none of the above

(B) Write a word / term / phrase as a substitute for each of the following statements:

(1) Debit balance of Trading Account. Gross Loss
(2) Expenses incurred on dissolution of firm. Dissolution/realisation Expenses
(3) Old Ratio less New Ratio. Sacrifice Ratio
(4) Officer appointed by Govt. for noting of dishonour of bill. Notary Public
(5) Donation received for a specific purpose. Specific donation / Capital receipt

(C) Answer the following questions in only ‘one’ sentence each:
(1) What is Legacy?
Ans. Any assets, property or amount of cash that the ‘Not for Profit’ concern receives per the provision made in the donor’s will after his death is called a Legacy

(2) What is CAS?
Ans. CAS means Computerized Accounting System which help business firms to implement accounting process and makes it user friendly with automation

(3) Who is called Insolvent Person?
Ans. When a person is unable to contribute fully or partially to discharge his/her liabilities out of his/her private assets, then that person is regarded as an insolvent. Thus, in the following two situations, a partner is declared as insolvent:
a. When his/her personal assets are insufficient
b. When his/her debit capit balance cannot be covered

(4) What is Reserve Capital?
Ans. Reserve capital represents the portion of subscribed capital that remains uncalled except in case of winding up or at the time of liquidation. As per Section 99 of the Companies Act, 1956, a company can create reserve capital by passing a special resolution.

(5) What is Revaluation Account?
Ans. Revaluation Account is an account that is opened at the time of admission, retirement and death of a partner. This account records the effect of every increase or decrease in the value of assets and liabilities. The balance of this account (which may be either profit or loss) is transferred to the Old Partners’ Capital Accounts, as the new partner has no right over such profits earned ior to his/her admission.

(d) Complete the sentences:

(1) Partnership deed is an Article of partnership.
(2) Aurangabad University prepares Income From Expenditure Account instead of Profit and Loss Account
(3) Returns outward are deducted from Purchases
(4) New Ratio (–) Old ratio= Gain Ratio.
(5) Cash receipts which are recurring in nature are called as Revenue receipts.

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