Class -XII
SUBJECT: ACCOUNTANCY
CASE STUDY 1
Read the following hypothetical text and answer the given questions:
Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They
sold fast food items across the counter and did home delivery too. Their initial fixed capital
contribution was ₹1,20,000 and ₹80,000 respectively.
At the end of first year their profit was ₹ 1,20,000 before allowing the remuneration of ₹.3,000
per quarter to Amit and ₹.2,000 per half year to Mahesh. Such a promising performance for first
year was encouraging, therefore, they decided to expand the area of operations.
For this purpose, they needed a delivery van, a few Scotties and an additional person to support.
Six months into the accounting year they decided to admit Sundaram as a new partner and offered
him 20% as a share of profits along with monthly remuneration of ₹ 2,500. Sundaram was asked
to introduce ₹1,30,000 for capital and ₹.70,000 for premium for goodwill. Besides this Sundaram
was required to provide Rs.1,00,000 as loan for two years.
Sundaram readily accepted the offer. The terms of the offer were duly executed and he was
admitted as a partner.
1 Remuneration will be transferred to _______________ of Amit and Mahesh at the end of the
accounting period.
a. Capital account.
b. Loan account.
c. Current account.
d. None of the above.
2 Upon the admission of Sundaram the sacrifice for providing his share of profits would be done:
(a) by Amit only.
(b) by Mahesh only.
(c) by Amit and Mahesh equally.
(d) by Amit and Mahesh in the ratio of 3:2.
3 Sundaram will be entitled to a remuneration of _____________at the end of the year.
4 While taking up the accounting procedure for this reconstitution the accountant of the firm Mr.
Suraj Marwaha faced a difficulty. Solve it be answering the following:
For the amount of loan that Sundaram has agreed to provide, he is entitled to interest thereon at
the rate of ____________.
, CASE STUDY 2
Read the following hypothetical text and answer the given questions:
Dr. Rajani Mehta a qualified M.B.B.S. doctor got voluntary retirement at the age of 50 years from a
renowned hospital. She was residing in a flat of a wide apartment which is surrounded by a slum
which is inhabited by economically weaker strata of the society. As the people in that area were not
aware about importance of health care, a widespread ailment had been persistently prevailing.
Rajani met with some of the well-off people of apartment and decided to open a dispensary named
as `LOCAL Clinic’ to provide them cost free medical assistance and make them aware about
hygienic living, physical fitness, and economic balance diet. Many of the apartment members
agreed to it. She approached health department of the town with her proposal which was accepted
and an initial one time grant of ₹.2,00,000 was sanctioned immediately for purchase of medical
equipment and test kits for pathological tests. 10 members of the apartment contributed ₹.20,000
each as lifetime subscription to the clinic. Rajni decided to charge ₹10 as one time registration fee
from patients. Apart from above Rajni made following transactions for first year:
S. No. Particulars Amount in (₹)
1 Purchased Equipment 1,20,000
2 Purchased Medicines 95,000
3 Purchased Furniture 10,000
4 Rent paid 12,000
5 Fee received for medical tests 45,000
6 Honorarium paid to Yoga teacher 35,000
7 Honorarium paid to physiotherapist and sports teacher 38,000
Rajni informed that during the first year 10,500 patients were registered for treatment and for other
services. Taking reference from the above, answer following questions.
1 Not for profit organization prepares
(i) Income and Expenditure account
(ii) Trading and Profit loss account
(iii) Receipt and Payment account
(iv) None of the above
Options:
(a) Only (ii)
(b) Only (iii)
(c) Both (i) and (ii)
(d) Both (i) and (iii)
2 Honorarium paid to Physiotherapist and sports teacher Will be posted to
(a) Debit side of Income and Expenditure Account.
(b) Debit side of Receipt and Payment Account.
(c) Debit side of Profit and Loss Account.
(d) Credit side of Income And Expenditure account
3 State whether the following statements are true or false:
“Donations received by Ms Rajani Mehta from health department should be capitalized.”
4 Lifetime subscription paid by 10 members will be posted in
(a) Expenditure side of Income and Expenditure Account
(b) Liability side of closing Balance Sheet
(c) Income side of Income and Expenditure Account
(d) Assets side of closing Balance Sheet
SUBJECT: ACCOUNTANCY
CASE STUDY 1
Read the following hypothetical text and answer the given questions:
Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They
sold fast food items across the counter and did home delivery too. Their initial fixed capital
contribution was ₹1,20,000 and ₹80,000 respectively.
At the end of first year their profit was ₹ 1,20,000 before allowing the remuneration of ₹.3,000
per quarter to Amit and ₹.2,000 per half year to Mahesh. Such a promising performance for first
year was encouraging, therefore, they decided to expand the area of operations.
For this purpose, they needed a delivery van, a few Scotties and an additional person to support.
Six months into the accounting year they decided to admit Sundaram as a new partner and offered
him 20% as a share of profits along with monthly remuneration of ₹ 2,500. Sundaram was asked
to introduce ₹1,30,000 for capital and ₹.70,000 for premium for goodwill. Besides this Sundaram
was required to provide Rs.1,00,000 as loan for two years.
Sundaram readily accepted the offer. The terms of the offer were duly executed and he was
admitted as a partner.
1 Remuneration will be transferred to _______________ of Amit and Mahesh at the end of the
accounting period.
a. Capital account.
b. Loan account.
c. Current account.
d. None of the above.
2 Upon the admission of Sundaram the sacrifice for providing his share of profits would be done:
(a) by Amit only.
(b) by Mahesh only.
(c) by Amit and Mahesh equally.
(d) by Amit and Mahesh in the ratio of 3:2.
3 Sundaram will be entitled to a remuneration of _____________at the end of the year.
4 While taking up the accounting procedure for this reconstitution the accountant of the firm Mr.
Suraj Marwaha faced a difficulty. Solve it be answering the following:
For the amount of loan that Sundaram has agreed to provide, he is entitled to interest thereon at
the rate of ____________.
, CASE STUDY 2
Read the following hypothetical text and answer the given questions:
Dr. Rajani Mehta a qualified M.B.B.S. doctor got voluntary retirement at the age of 50 years from a
renowned hospital. She was residing in a flat of a wide apartment which is surrounded by a slum
which is inhabited by economically weaker strata of the society. As the people in that area were not
aware about importance of health care, a widespread ailment had been persistently prevailing.
Rajani met with some of the well-off people of apartment and decided to open a dispensary named
as `LOCAL Clinic’ to provide them cost free medical assistance and make them aware about
hygienic living, physical fitness, and economic balance diet. Many of the apartment members
agreed to it. She approached health department of the town with her proposal which was accepted
and an initial one time grant of ₹.2,00,000 was sanctioned immediately for purchase of medical
equipment and test kits for pathological tests. 10 members of the apartment contributed ₹.20,000
each as lifetime subscription to the clinic. Rajni decided to charge ₹10 as one time registration fee
from patients. Apart from above Rajni made following transactions for first year:
S. No. Particulars Amount in (₹)
1 Purchased Equipment 1,20,000
2 Purchased Medicines 95,000
3 Purchased Furniture 10,000
4 Rent paid 12,000
5 Fee received for medical tests 45,000
6 Honorarium paid to Yoga teacher 35,000
7 Honorarium paid to physiotherapist and sports teacher 38,000
Rajni informed that during the first year 10,500 patients were registered for treatment and for other
services. Taking reference from the above, answer following questions.
1 Not for profit organization prepares
(i) Income and Expenditure account
(ii) Trading and Profit loss account
(iii) Receipt and Payment account
(iv) None of the above
Options:
(a) Only (ii)
(b) Only (iii)
(c) Both (i) and (ii)
(d) Both (i) and (iii)
2 Honorarium paid to Physiotherapist and sports teacher Will be posted to
(a) Debit side of Income and Expenditure Account.
(b) Debit side of Receipt and Payment Account.
(c) Debit side of Profit and Loss Account.
(d) Credit side of Income And Expenditure account
3 State whether the following statements are true or false:
“Donations received by Ms Rajani Mehta from health department should be capitalized.”
4 Lifetime subscription paid by 10 members will be posted in
(a) Expenditure side of Income and Expenditure Account
(b) Liability side of closing Balance Sheet
(c) Income side of Income and Expenditure Account
(d) Assets side of closing Balance Sheet
