ICSE Sample Question Paper Accountancy 2010 2012

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ICSE Board Sample Paper
Accountancy – 2010

Q1. Mention two differences between Premium on Issue of Debentures and Premium on Redemption of Debentures.
Answer:

Premium on Issue of Debenture

Premium on Redemption of Debenture

(1) It is a capital profits and used in writing of the capital losses
(2) The balance of premium on issue of debenture A/c (securities premium A/c) is shown on the liabilities side of the balance sheet under the head, “Reserve and Surplus”.

(1) It is a capital loss.
(2) It is a liability and appears under the head current liability and provisions until the debentures are repaid.

Q2. State any two advantages of the Self Balancing System.
Answer:
1. Easy location of errors : Self balancing system localises the errors and facilitates their given detection with minimum effort.
2. Division of work : It facilitates division of work among different employees of the business enterprises.

Q3. What is a stores ledger ?
Answer:
Store ledger is a record of material. It is prepared by stores department in which they kept the records of all receipts and issue of materials both in terms of quantity and value. In store ledger separate account for each material is kept.

Q4. What are quoted investments ?
Answer:
Investment in shares and debentures which are quoted on a recognised stock exchanger are called quoted investments. A company after fulfillment of certain conditions and payment of requisite fees, gets its shares and debentures listed on a stock exchange.

Q5. Mention any two differences between Revaluation Account and Realisation Account.
Answer:
Difference between Revaluation account and Realisation account :

Revaluation account

Realisation account

(1) Meaning

In this effect of the revaluation of assets and liabilities is recorded.

In this realisation of assets and liabilities is recorded.

(2) Time

It is prepared at the time of admission, retirement or death of a partner.

It is prepared at the time of dissolution of the firm.

Q6. Why is the word memorandum affixed to the Memorandum Joint Venture Account ?
Answer:
Word memorandum affixed to the memorandum joint venture account because a joint venture account is prepared but not as a part of accounts. It is an alternative method when all the co-ventures maintain the books of account.

Q7. Mention any four sources of funds.
Answer:
(1) Funds from operation.
(2) Funds from issue of share capital.
(3) Funds from long term loans.
(4) Funds from sale of fixed assets.

Q8. Give two differences between fixed and fluctuating capital accounts.
Answer:
The two differences are as follows :
(a) When capital is fixed then two accounts are prepared i.e., Capital A/c & Current A/c. But when capital is fluctuating then only one account is to be kept i.e., Partner’s Capital A/c.

(b) When capital is fixed then all adjustments relating to interest on capital and drawings, salary & commission of Partner’s, share of Profit & Loss, Drawings of partner’s passed through current accounts of partner’s. But when Capital is fluctuating then all these adjustments are passed through in partner’s Capital A/c

(b) When capital is fixed then all adjustments relating to interest on capital and drawings, salary & commission of Partner’s, share of Profit & Loss, Drawings of partner’s passed through current accounts of partner’s. But when Capital is fluctuating then all these adjustments are passed through in partner’s Capital A/c

Q9. What is gaining ratio ?
Answer:
The gaining ratio is the ratio in which the retired partner or deceased partner share is acquired by the remaining (continuing) partner’s. It is calculated at the time of Retirement or death of a partner (formula for calculating Gaining Ratio is New Ratio – Old Ratio).

Q10. When drafting a company balance sheet under Schedule VI Part I, under which heading and sub-heading will calls in arrear and calls in advance appear ?
Answer
(i) Calls in arrear : This is shown on the liabilities side, under the head share capital and sub-heading called up capital, as a deduction from the called up capital. Calls in advance is shown separately in the balance sheet under the head share capital, subheading subscribed capital but it should not be added in subscribed capital.

Q11. State the two effects of the provision of Accounting Standard-10 as issued by the Institute of Chartered Accountants of India.
Answer (
ii) As per AS-10 (Regarding Goodwill).

(a) Firm can show the Goodwill in the books when firm purchased Goodwill from the market. In this case, the firm first raised the Goodwill in books and then written off.

(b) Goodwill is not shown in the balance sheet.

Q12. Why is premium on the issue of debentures considered a capital profit ?
Answer
(xiv) Premium on the Issue of debentures considered a capital profit because it is used for writing of capital losses. Such as discount on Issue of Shares & Debentures, Preliminary Expenses, Goodwill, Patents, Premium on Redemption of Debenture etc. It is shown in the liabilities side of Balance Sheet under the head of ‘Reserve and Surplus’.

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Ask a Question:

  • the improvement form for class 12th when will be online?
    and what will be the last date for appling examinatins. when will be available on the website….?

    shurya on 27 Jun 2012
  • fully describe about realisation account,their entries and
    how to transfer it in partner's capital a/c and in bank?

    shruti on 12 Jul 2011
  • . Why is premium on the issue of debentures considered a capital profit ?
    Answer (xiv) Premium on the Issue of debentures considered a capital profit because it is used for writing of capital losses. Such as discount on Issue of Shares & Debentures, Preliminary Expenses, Goodwill, Patents, Premium on Redemption of Debenture etc. It is shown in the liabilities side of Balance Sheet under the head of ‘Reserve and Surplus’.

    robin on 05 Mar 2011
  • Are there only 12 questions in whole paper??? This question paper is of how many marks???

    Abhinav Sood on 16 Dec 2010
  • ritesh and abhishek entered into a joint venture paying Rs.30,000 and Rs.50,000 respectively into a joint bank account ,sharing profits and losses in the proportion of 3:2. it was agreed that the joint bank account was to be used for purchase and sales,while each partner was to meet his joint venture expenses out of his private funds.each partner was entitled to a commission of 5% on the sales made by him.The transaction were as follows:ritesh purchased 80 quintles of maida at Rs.600 per quintal and his expenses were Rs.3000.Abhishek sold 60 quintals and his expenses were Rs.2000.Abhishek purchased 20 quintals of dal moong for Rs.21,000 and his expenses were Rs. 1,000.Ritesh sold 16 quintals of dal moong fo Rs.19,000 and his expenses were Rs.1,200.Prepare Bank account,Personal account of Co-ventures,Joint Venture account and also prepare the Balance Sheet of the Joint Venture.

    mishir jha on 13 Dec 2010