sample detailed solutions question paper
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General InstructionsRead the following instructions very carefully and strictly follow them: (i) ThisquestionpapercomprisestwoParts–AandB.Thereare32questionsinthequestionpaper.Allquestionsarecompulsory. (ii) Part A is compulsoryforallcandidates. (iii) Part Bhastwooptionsi.e.(1)AnalysisofFinancialStatementsand(2)ComputerizedAccounting.Youhavetoattemptonlyoneofthegiven
options.[Thissamplepapercontainsonlyoption(1).] (iv) Heading of the optionoptedmustbewrittenontheAnswer-BookbeforeattemptingthequestionsofthatparticularOPTION. (v) Questionnos.1to13and23to29areveryshortanswertypequestionscarrying1markeach. (vi) Questionnos.14and30areshortanswertype–Iquestionscarrying3markseach. (vii) Questionnos.15to18and31areshortanswertype–IIquestionscarrying4markseach. (viii) Questionnos.19, 20and32arelonganswertype–Iquestionscarrying6markseach. (ix) Questionnos.21and22arelonganswertype–IIquestionscarrying8markseach. (x) Answersshouldbebriefandtothepoint.Theanswerofeachpartshouldbewrittenatoneplace. (xi) There isnooverall choice.However, an internal choicehasbeenprovided in2questionsof threemarks,2questionsof fourmarks,1
questionofsixmarksand2questionsofeightmarks.Youhavetoattemptonlyoneofthechoicesinsuchquestions. (xii) However,separateinstructionsaregivenwitheachpartandquestion,wherevernecessary.
Part-a
1. Which amongst the following shares confer voting rights on its holders?
(a) Equity shares (b) Redeemable preference shares (c) Participatory preference shares (d) None of the above
2. What will be the capital fund if total assets are of `2,00,000 and bank overdraft is `50,000 and advance subscription is `40,000?
(a) `2,90,000 (b) `1,10,000 (c) `2,40,000 (d) `1,90,000
3. Loss on issue of debentures is written-off out of (a) securities premium reserve (b) general reserve and statement of profit and loss (c) Both (a) and (b) (d) discount on issue of debentures account
4. In a firm, 10% of net profit after deducting alladjustments, including reserve is transferred to generalreserve.Thenetprofitafteralladjustments
but before transfer to general reserve is ` 88,000. Calculate the amount which is to be transferred to reserve.
(a) `5,000 (b) `8,000 (c) `8,800 (d) `4,400
5. What will be the entry for writing-off goodwill at the time of retirement?
(a) Goodwill A/c Dr To Old Partner’s Capital A/c (In new ratio) (b) Old Partner’s Capital/Current A/c (In old ratio) Dr To Goodwill A/c (c) Goodwill A/c (Appeared goodwill) Dr To Old Partner’s Capital/Current A/c (In old ratio) (d) None of the above
6. Emi,NemiandKimiarepartnerssharingprofitsinthe ratio of 5 : 3 : 2. They have admitted Vimi into
the partnership for the 16
th share. An extract of
theirbalancesheeton1stApril,2020isasfollows:
SAMPLEQUESTION PAPER Time : 3 hrs.
Max. Marks : 80 2with
Detailed Solutions(Questions-Answers)
Class XIIACCOUNTANCY
12 aCCOUNtaNCY Class XIIamadhaan
Liabilities Amt. (`) Assets Amt. (`)Investment Fluctuation Fund 27,000
Investment (cost) 3,00,000
If the market value of investments is ` 2,90,000, then the Investment Fluctuation Fund will be showninthebalancesheetofthefirmat
(a) ` 27,000 (b) ` 20,000 (c) ` 10,000 (d) ` 13,000
7. No interest is to be charged on drawings from the partners in case of ..... . . . . .
(a) no interest clause in deed (b) absence of deed (c) an oral agreement between partners including interest
clause (d) Both (a) and (b)
8. Pass the necessary entry for the following transaction:
A furniture of ` 6,000 (book value) is taken by Manoj, who is a partner of Royals.
(a) Manoj’s Capital A/c Dr 6,000 To Furniture A/c 6,000 (b) Furniture A/c Dr 6,000 To Manoj’s Capital A/c 6,000 (c) Furniture A/c Dr 6,000 To Cash A/c 6,000 (d) Cash A/c Dr 6,000 To Furniture A/c 6,000
9. Shares for consideration other than cash can be issued at
(a) par (b) premium (c) discount (d) Both (a) and (b)
10. Neton Ltd. has in its Memorandum of Association, capital clause stating that it is formed with 75,000 equity shares of `100each.Thecompanyhas issued the entire shares and the public has also subscribed and paid-up for the full amount on application itself. What will be the subscibed capital?
(a) `75,00,000 (b) `10,00,000 (c) `1,00,000 (d) `7,50,000
11. On change in profit sharing ratio, the gainingpartner compensates the sacrificing partner bypaying him goodwill which is equal to the share ..... . . . . by him.
12. Any change in existing agreement of partnership or existing relationship of the partners is known as ..... . . . . .
13. Write the meaning of partnership deed. 14. On1stApril, 2019, the bookvalue ofmachinery
was ` 2,88,000. On 1st July, 2019, 1/4th of themachinery was sold for ` 50,000. Depreciation is beingcharged@10%p.a.
Show the following adjustment in income and expenditure account for the year ended 31stMarch, 2020.
Or Calculate the amount of sports material to be
debited to income and expenditure account for theyearended31stMarch,2020onthebasisofthe following information:
Particulars 1st April, 2019 (`)
31st March, 2020 (`)
Stock of Sports Material 4,500 3,840
Creditors for Sports Material 1,200 1,560
Amount paid for sports material during the year was `11,400.
15. ABCLtd. issued20,000, 9%debenturesof` 100eachatadiscountof4%payable 30 on application and the balance on allotment. The debentures are redeemable after 5 years. Give necessary journal entries for the issue of debentures.
16. X Ltd. purchased the assets of Y Ltd. for `1,00,000payable in fully paid equity shares of `10each.What entries will be passed in the books of X Ltd. ifsuchissueis(i)atpar(ii)atapremiumof25%?
17. X,YandZarepartnerssharingprofitsandlossesintheratioof2:2:1.Yretiresfromthefirmon31stMarch, 2020.On thedateofY’s retirement,the following balances appeared in the books of thefirm:
Advertisement suspense account ` 25,000 Contingency reserve `15,000 Workmen’scompensationreserve ` 20,000 Loss in business account `15,000 Pass the necessary journal entries for the
adjustmentoftheseitemsonY’sretirement.Or
AKandBKarepartnerssharingprofitsandlossesintheratioof5:1.TheyagreedtoadmitCKasapartner.Profitswillbesharedequallyinfuture.CKbrought in ` 60,000 as a premium for his share in profits.Passnecessaryjournalentriesinthebooksofthefirm.
13Sample Question Paper 2 for 2021 Board Examination 18. X,YandZwerepartnersinafirmsharingprofitsin
2:2:1ratio.Xdiedon1stJuly,2019.Onthatdate,the goodwill of the firmwas valued at`22,500. Onthedeathofapartner,hisshareofprofitintheyear of death was to be calculated on the basis of theaverageprofitsofthelastfouryears.Theprofitfor the last four years were:
(`) 2015-16 80,000 2016-17 72,000 2017-18 84,000 2018-19 56,000(Loss) Pass necessary journal entries. 19. Following is the receipts and payments account of
GreenClubfortheyearended31stMarch,2020:Receipts and Payments Account
Dr. fortheyearended31stMarch,2020 Cr.Receipts Amt. (`) Payments Amt. (`)
ToBalanceb/d 15,640 By Salary 2,400To Subscriptions By Newspaper 1,640 2018-19 2019-20 2020-21
96021,200
400 22,560
By Electricity BillBy9%Investments
(1stJuly,2019)
80016,000
To Sale of Old Newspapers 1,000 By Books 8,480To Government Grants 8,000 By Rent 5,440To Sale of Old Furniture 4,560 By Furniture 8,400 (Book value ` 5,600) ByBalancec/d 8,960To Interest on Investments 360
52,120 52,120
Additional Informations: (i) The club owned furniture `12,000 and books
`5,600on1stApril,2019. (ii) Salary and rent were outstanding `480 and
`960on31stMarch,2020. (iii) Subscriptionoutstandingon31stMarch,2019
was 1,600andon31stMarch,2020was 2,000. Prepare income and expenditure account and
balance sheet for the year ending 31st March,2020.
20. The balance sheet of Ajeet, Vijeet and Sujeet on the date of dissolution was as follows:
Balance Sheetas at ..... .
Liabilities Amt. (`) Assets Amt. (`)Creditors 52,000 Bank 6,500
Employees Provident Fund 26,000 Debtors 41,600
Outstanding Expenses 13,000 Stock 54,600
CapitalA/cs’ Prepaid Expenses 2,600
Ajeet 1,05,950 Furniture 13,000
Sujeet 76,050 1,82,000 Machinery 1,09,200
ProfitandLossA/c 19,500
Vijeet’sCapitalA/c 26,000
2,73,000 2,73,000
Sujeet was appointed to realise the assets and paytheliabilities.Hewasentitledtoreceive5%commission on the amounts realised from sale of assets. He was also to bear the expenses of realisation. Assets realised as follows:
Machinery –`91,000;Debtors–`26,000;Furniture– `9,750;Stockat60%ofitsbookvalue.
Expenses of realisation amounted to `1,950.Anoffice typewriter realised `3,250 which was not shown in the books of accounts. There was a contingent liability of `6,500 for bills discounted for which `2,600 had to be paid. Based on the above given information, complete the following realisation account:
Realisation AccountDr. Cr.Particulars Amt. (`) Particulars Amt. (`)
To Debtors ... By Creditors 52,000
To Stock ... By Employees Provident Fund 26,000
To Prepaid Expenses 2,600 By Outstanding Expenses 13,000
To Furniture ... By Bank (Assets Sold)
To Machinery ... Debtors ...
To Bank (Liabilities Paid) Stock ...
CreditorsEmployees Provident FundOutstanding ExpensesContingent Liability for Bills
52,00026,000
13,000
Furniture ...
Machinery Typewriter
...3,250 ...
By Loss Transferred to Vijeet’sCapitalA/c Sujeet’sCapitalA/c
……
Discounted … …
ToSujeet’sCapitalA/c(1,62,760×5%) 8,138
… …
21. On1stApril,2019,RanjanaLtd.madeanissueof3,00,000 equity shares of `10eachatapremiumof ` 4 per share, payable as follows:
` 6 on application (including `1premium) ` 2 on allotment (including `1premium) `3onfirstcall(including`1premium) `3onsecondandfinalcall(including 1premium) Applications were received for 4,50,000 shares,
of which applications for 90,000 shares were rejected and their money was refunded. Rest of the
14 aCCOUNtaNCY Class XIIamadhaan
applicants were issued shares on pro-rata basis and their excess money was adjusted towards allotment.
Jatin, towhom6,000shareswereallotted, failedto pay the allotment money and his shares were forfeited after allotment. Ruchi, who applied for 10,800sharesfailedtopaythetwocallsandonher such failure, her shares were forfeited.
12,000forfeitedshareswerere-issuedasfullypaidon receipt of `9pershare, thewholeofRuchi’sshares being included.
Prepare the cash book and pass the necessary journal entries.
Or Krishna Ltd. issued 40,000 equity shares of `10
each at a premium of `2.50 per share. The amount was payable as follows:
On application `2 per share, on allotment `4.50 per share (including premium) and on call `6 per share.
Owing to heavy subscription, the allotment was made on pro-rata basis as follows:
(i) Applicants for 20,000 shares were allotted 10,000shares.
(ii) Applicants for 56,000 shares were allotted 14,000shares.
(iii) Applicants for 48,000 shares were allotted 16,000shares.
It was decided that the excess amount received on applications would be utilised on allotment and the surplus would be refunded.
Riya,towhom1,000shareswereallottedandwhobelongs to category (i), failed to pay allotment money. Her shares were forfeited after the call. Pass the necessary journal entries in the books of Krishna Ltd. for the above transactions.
22. Rachit and Madhur were partners in a firmsharingprofitsandlossesintheratioof4:3.Thefollowing is thebalance sheetof thefirmason31stDecember,2019:
Balance Sheet asat31stDecember,2019
Liabilities Amt. (`) Assets Amt. (`)Sundry Creditors 20,000 Cash 14,800
Bills Payable 3,000 Debtors 20,500
Bank OverdraftCapitalA/cs’
17,000 (-) Provision for Doubtful Debts (300) 20,200
Rachit 70,000 Stock 20,000
Madhur 60,000 1,30,000 Plant 40,000
Building 75,000
1,70,000 1,70,000
They agreed to admit Rishant as a partner with effect from1stJanuary,2020for1/4thshareinprofitsonthe following terms
(i) Rishant will bring in `47,183ashiscapital. (ii) Building is to be appreciated by `14,000 and
plant to be depreciated by ` 7,000. (iii) The provision on debtors is to be raised to
`1,000. (iv) The goodwill of the firm has been valued at
`21,000. Prepare revaluation account, partners’ capital
accountandbalancesheetofthefirmimmediatelyafterRishant’sadmission.
Or A,BandCarepartnerswithprofitsharingratio
5 : 3 : 2. Their balance sheet is as follows:Balance Sheet
as at…Liabilities Amt. (`) Assets Amt. (`)
CreditorsBills PayableGeneral ReserveReserve for ContingencyWorkmen Compensation FundProvident Fund
80,00060,00030,00020,000
40,00040,000
BankDebtorsFurnitureInvestmentBuildingPrepaid InsuranceGoodwill
40,00060,00040,00030,000
1,00,00010,00020,000
CapitalA/cs’A—B—C—
40,00030,00030,000 1,00,000
PatentsProfitandLoss
30,00040,000
3,70,000 3,70,000
Adjustments: (i) C takes retirement, new ratio of A and B is 3 : 2. (ii) `10,000 given to C in cash and balance
transferredtoC’sloanaccount. (iii) Prepaid insurance is no more required. (iv) `10,000unrecordedtypewriterhastobeshown
in the balance sheet. (v) Investment is valued at `20,000 and is taken
over by A at this value. (vi) Make5%provisionfordiscountoncreditors. (vii) Outstanding repair bills due `10,000. (viii) Provident fund decreased by `10,000. (ix) Accrued commission `5,000. (x) Buildingincreasedby20%. (xi) Goodwillofthefirmvaluedat`40,000. Prepare necessary ledgers.
15Sample Question Paper 2 for 2021 Board Examination
Part-B 23. The assets which cannot be realised in cash or
fromwhichnofurtherbenefitcanbederived,areknown as ..... . . . . .
(a) tangible assets (b) intangible assets (c) fictitious assets (d) None of these
24. Assumingthatdebttoequityratiois2:1,whichofthe following transaction will have no effect on it?
(a) Purchase on fixed assets by taking loan of `10,00,000 (b) Sale of fixed assets at a loss of `30,000 (c) Issue of bonus shares (d) Declaration of final dividend
25. Mention the net amount of source or use of cash whenafixedasset(havingbookvalue`1,20,000)is sold at a loss of `40,000intermofcashflow.
(a) `1,20,000 (b) `40,000 (c) `80,000 (d) `1,60,000
26. Total of equity and liabilities is `30,00,000 and share capital is `6,00,000 as on 31stDecember,2019.Whatwillbethepercentageofsharecapitalshown in the common size balance sheet?
(a) 15% (b) 25% (c) 20% (d) 18%
27. Which of the following is not an item of sub-head other current liabilities in balance sheet?
(a) Creditors (b) Outstanding expenses (c) Advance income (d) Both (b) and (c)
28. Definetheterm‘cashflow’. 29. Ratioanalysisandcashflowareusedfor..... . . .in
accounting. 30. Explain any three items of reserves that are shown
under the heading ‘reserves and surplus’ in thebalance sheet of a company as per Schedule III of theCompaniesAct,2013.
Or Preparecommonsizestatementofprofitandloss
fromthefollowingstatementofprofitandloss:Statement of Profit and Loss
fortheyearending31stMarch,2020Particulars Note
No.31st March,
2020 Amt. (`)I. Income:
Revenue from Operations 10,00,000Other Income 2,00,000Total Revenue 12,00,000
II. Expenses:Purchases of Stock-in-trade 5,00,000Change in Inventories of Stock-in-trade 2,50,000Other Expenses 1,50,000Total 9,00,000
III. Net Profit before Tax (I - II) 3,00,000
31. From the following information, calculate any two of the following ratios:
(i) Debt to equity ratio (ii) Working capital turnover ratio (iii) Return on investment Additional Informations: Equity share capital `25,000, general reserve
`2,500, balance of statement of profit and lossafter interest and tax `7,500, 9% debentures`10,000, creditors `7,500, land and building `32,500, equipments `7,500, debtors `7,250, cash `2,750, revenue from operations, i.e. sales for the yearended31stMarch,2019was 25,000, tax rate is50%.
Or From the following data, calculate Gross Profit
Ratio, Current Ratio, Quick Ratio and Debt to Equity Ratio.
Revenue from Operations 30,000, Cost of Revenue from Operations (Cost of Goods Sold) 20,000;NetProfit `3,000; Current Assets `6,000; Inventory`1,000; Current Liabilities `2,000; Share Capital`5,000 and Debentures `2,500.
32. From the following summarised balance sheets of PQRLtd.ason31stMarch,2019and2020,youarerequiredtopreparethecashflowstatement:
Particulars Note No.
31st March, 2020
Amt. (`)
31st March, 2019
Amt. (`)I. EQUITY AND LIABILITIES 1. Shareholders’ Funds: Share Capital 35,00,000 30,00,000 Reserves and Surplus 1 23,00,000 15,00,000 2. Non-current Liabilities: Long-term Borrowings: 15%Debentures
10,00,000 15,00,000
3. Current Liabilities: Trade Payables 12,50,000 8,00,000 Short-term Provisions 2 5,50,000 5,00,000 Other Current Liabilities 3 60,000 50,000
Total 86,60,000 73,50,000
16 aCCOUNtaNCY Class XIIamadhaan
II. ASSETS 1. Non-current Assets: Fixed Assets 4 47,50,000 40,00,000 Long-term Investments (At cost) 9,00,000 9,00,000 2. Current Assets: Inventories 13,50,000 10,00,000 Trade Receivables 12,25,000 11,25,000 Cash and Cash Equivalents 4,35,000 3,25,000
Total 86,60,000 73,50,000
Notes to Accounts:
Particulars31st March,
2020 Amt. (`)
31st March, 2019
Amt. (`)1. Reserves and Surplus
BalanceinStatementofProfitandLoss 22,50,000 15,00,000Capital Reserve (Profitonsaleofinvestments)
50,000 —
23,00,000 15,00,0002. Short-term Provisions
Proposed Dividend 1,70,000 1,50,000Provision for Tax 3,80,000 3,50,000
5,50,000 5,00,000
3. Other Current LiabilitiesOutstanding Expenses 60,000 50,000
60,000 50,0004. Fixed Assets
Fixed Assets (at cost) 60,00,000 50,00,000(-) Accumulated Depreciation (12,50,000) (10,00,000)
47,50,000 40,00,000
Additional Informations: (i)During the year ended 31st March, 2020,
fixedassetswithanetbookvalueof`50,000 (accumulated depreciation `1,50,000) weresold for `40,000.
(ii)During the year ended 31st March, 2020,investments costing `4,00,000 were sold.
(iii) Debentures were redeemed at a premium of 10%.
(iv) Tax of `3,75,000 was paid. (v) Debenture interest paid during the year ended
31stMarch,2020was`1,50,000.
nswersPart-a
1. (a) Equity shares
2. (b) `1,10,000Hint: Capital Fund = Total Assets - Total Liabilities = 2,00,000 - (50,000 + 40,000) = 2,00,000 - 90,000 = `1,10,000(It is always calculated from opening/previous year balance sheet)
3. (c) Both (a) and (b)
4. (b) `8,000
Hint: 10% of net profit after adjustments = × =88 00010
1108 000, ,`
5. (c) Goodwill A/c (Appeared goodwill) Dr To Old Partner’s Capital/Current A/c (In old ratio)
6. (c) `10,000Hint: Difference between cost price and market value of investments is `10,000 (3,00,000 - 2,90,000), thus Investment Fluctuation Fund will be shown at `10,000 in the balance sheet of new firm.
7. (d) Both (a) and (b)
8. (a) Manoj’s Capital A/c Dr 6,000
To Furniture A/c 6,000
9. (d) Both (a) and (b)
10. (a) `75,00,000
Hint: Total authorised capital (75,000 × 100) = `75,00,000Since, complete capital has been subscribed by the public, thus subscribed capital is equal to authorised capital.
11. gained 12. reconstitution of the partnership firm 13. Partnership comes into existence as a result of agreement among
the partners. The agreement may be either oral or written. The document containing the terms and conditions of the agreement in writing among partners is called the ‘partnership deed’.
14. Income and Expenditure Accountfor the year ending 31st March, 2020Dr. Cr.
Expenditure Amt. (`) Income Amt. (`)
To Loss on Sale of Machinery 20,200
To Depreciation 23,400
Working Notes
Particulars Amt. (`)
1. Book value of machinery sold on 1st July, 2019 2 88 00014
, , ×
72,000
(-) Depreciation (WN 2) (1,800)
70,200
(-) Sale value (50,000)
Loss on sale of machinery 20,200
17Sample Question Paper 2 for 2021 Board Examination
2. Calculation of Depreciation
(i) For machinery sold 2 88 00014
10100
312
, , × × ×
1,800
(ii) For remaining machinery 2 88 00034
10100
1, , × × ×
21,600
Total Depreciation 23,400Or Calculation of Sports Material Purchased During the YearTotal payment made during the year for sports material 11,400(-) Creditors at beginning (1,200)
10,200(+) Creditors at end 1,560Sports material purchased during the year 11,760Calculation of Sports Material Consumed During the YearOpening stock of sports material 4,500(+) Purchase during the year 11,760
16,260(-) Closing stock of sports material (3,840)Sports material consumed during the year 12,420
∴ The amount of sports material to be debited to income and expenditure account for the year ended 31st March, 2020 is `12,420.
15. Journal
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c (20,000 × 30) To Debenture Application A/c(Being the application money on 20,000 debentures @ ` 30 received)
Dr. 6,00,0006,00,000
Debenture Application A/c To 9% Debentures A/c(Being the debenture application money transferred to debentures account)
Dr. 6,00,0006,00,000
Debenture Allotment A/c (20,000 × 66)Discount on Issue of Debentures A/c (20,000 × 4) To 9% Debentures A/c (20,000 × 70)(Being the allotment money due on 20,000 debentures)
Dr.Dr.
13,20,00080,000
14,00,000
Bank A/c To Debenture Allotment A/c(Being the amount received on allotment)
Dr. 13,20,00013,20,000
16. Journal
Date Particulars L.F. Dr. (`) Cr. (`)
Sundry Assets A/c To Y Ltd.(Being assets purchased from Y Ltd.)
Dr. 1,00,0001,00,000
(i) Y Ltd. To Equity Share Capital A/c(Being 10,000 shares issued at par to Y Ltd.)
Dr. 1,00,0001,00,000
(ii) Y Ltd. To Equity Share Capital A/c To Securities Premium Reserve A/c(Being 8,000 shares issued at a premium of 25% to Y Ltd.)
Dr. 1,00,00080,00020,000
Working Notes
1. Number of equity shares issued = =100 00010
10 000, ,
, shares
2. Number of equity shares issued =+
=100 00010 2 50
8 000, ,
., shares
17. Journal
Date Particulars L.F. Dr. (`) Cr. (`)
2020Mar. 31 Contingency Reserve A/c
Workmen’s Compensation Reserve A/c To X’s Capital A/c To Y’s Capital A/c To Z’s Capital A/c(Being the contingency reserve and workmen’s compensation reserve transferred to capital accounts on Y’s retirement)
Dr.Dr.
15,00020,000
14,00014,0007,000
Mar. 31 X’s Capital A/cY’s Capital A/cZ’s Capital A/c To Advertisement Suspense A/c To Loss in Business A/c(Being the amount of advertisement suspense account and loss in business account transferred to capital accounts on Y’s retirement)
Dr.Dr.Dr.
16,00016,0008,000
25,00015,000
OrJournal
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c To Premium for Goodwill A/c(Being amount of premium brought in by CK)
Dr. 60,00060,000
Premium for Goodwill A/cBK’s Capital A/c To AK’s Capital A/c(Being sacrificing partner’s account is credited with his share of sacrifice)
Dr.Dr.
60,00030,000
90,000
Working Note:
Sacrificing ratio = Old share - New share
AK sacrifice= − =
−=
56
13
5 26
36
BK gain= − =
−=
16
13
1 26
16
BK will compensate = × × =60 00031
16
30 000, ,`
18. Journal
Date Particulars L.F. Dr. (`) Cr. (`)
Y’s Capital A/cZ’s Capital A/c To X’s Capital A/c(Being goodwill adjusted)
Dr.Dr.
6,0003,000
9,000
Profit and Loss Suspense A/c To X’s Capital A/c(Being deceased partner’s share of profit transferred)
Dr. 4,5004,500
Working Notes:1. X’s share of goodwill = 22,500 × 2/5 = ` 9,000 (to be adjusted
by Y and Z in the ratio 2 : 1)2. Four year’s average profit
=
+ + +=
80 000 72 000 84 000 56 0004
45 000, , , ( , )
,`
X’s share of profit = × × =45 00025
312
4 500, ,`
18 aCCOUNtaNCY Class XIIamadhaan 19. Income and Expenditure Account
for the year ending 31st March, 2020Dr. Cr.Expenditure Amt. (`) Income Amt. (`)
To Loss on Sale of Furniture 1,040
By Subscription(+) Subscription
21,200
To Salary(+) Outstanding for
Current Year
2,400
480 2,880
Outstanding for Current Year (2,000 – 640)By Sale of Old Newspaper
1,360 22,5601,000
To Newspaper 1,640 By Government Grant 8,000To ElectricityTo Rent 5,440
800 By Interest on Investment(+) Accrued Interest
360720 1,080
(+) Outstanding for
Current Year 960 6,400
To Surplus, i.e. Excess of Income over Expenditure 19,880
32,640 32,640
Balance Sheetas at 31st March, 2020
Liabilities Amt. (`) Assets Amt. (`)Salary Outstanding 480 Cash 8,960Rent Outstanding 960 Subscription OutstandingAdvance Subscription 400 Previous Year (1,600 - 960) 640Capital Fund 34,840 Current Year (2,000 - 640) 1,360 2,000(+) Surplus 19,880 54,720 9% Investments 16,000
Accrued Interest on Investment 720Books(+) Purchase
5,6008,480 14,080
Furniture 12,000(+) Purchase 8,400
(-) Sale20,400(5,600) 14,800
56,560 56,560
Balance Sheetas at 31st March, 2019
Liabilities Amt. (`) Assets Amt. (`)Capital Fund 34,840 Cash 15,640
Furniture 12,000Books 5,600Subscription Outstanding 1,600
34,840 34,840
Working Note:Accrued interest on investments
= × × − = −16 000
9100
912
360 1080 360, , =` 720
20. Dr. Realisation Account Cr.
Particulars Amt. (`) Particulars Amt. (`)To Debtors 41,600 By Creditors 52,000To Stock 54,600 By Employees Provident Fund 26,000To Prepaid Expenses 2,600 By Outstanding Expenses 13,000To Furniture 13,000 By Bank (Assets Sold)To Machinery 1,09,200 Debtors 26,000To Bank (Liabilities Paid) Stock 32,760 Creditors 52,000 Furniture 9,750
Employees Provident Fund
Outstanding Expenses
26,000
13,000
Machinery Typewriter
91,000 3,250 1,62,760
Contingent Liability for Bills By Loss Transferred to Discounted 2,600 93,600 Vijeet’s Capital A/c 34,489To Sujeet’s Capital A/c 8,138 Sujeet’s Capital A/c 34,489 68,978 (`1,62,760 × 5%)
3,22,738 3,22,738
21.
Dr. Cash Book (Bank Column) Cr.
Particulars Amt. (`) Particulars Amt. (`)
To Equity Share App. A/c (4,50,000 shares × `6) 27,00,000
By Equity Share Application A/c (90,000 shares × `6) 5,40,000
To Equity Share Allotment A/c (WN 1) 2,35,200
By Balance c/d 42,13,200
To Equity Share First Call A/c (WN 2) (2,85,000 shares × `3)
8,55,000
To Equity Share Second and Final Call A/c (WN 2) (2,85,000 shares × `3)
8,55,000
To Equity Share Capital A/c (12,000 shares × `9)
1,08,000
47,53,200 47,53,200
Journal
Date Particulars L.F. Dr. (`) Cr. (`)
Equity Share Application A/c To Equity Share Capital A/c (3,00,000 × 5) To Securities Premium Reserve A/c (3,00,000 × 1) To Equity Share Allotment A/c (60,000 × 6)(Being the application money adjusted)
Dr. 21,60,00015,00,0003,00,0003,60,000
Equity Share Allotment A/c (3,00,000 × 2) To Equity Share Capital A/c (3,00,000 × 1) To Securities Premium Reserve A/c (3,00,000 × 1)(Being the allotment money due on 3,00,000 shares)
Dr. 6,00,0003,00,0003,00,000
Equity Share Capital A/c (6,000 × 6)Securities Premium Reserve A/c (WN 5) To Equity Share Allotment A/c [(WN 1) (ii)] To Forfeited Shares A/c(Being 6,000 shares of Ram forfeited for non-payment of allotment money)
Dr.Dr.
36,0004,800
4,80036,000
19Sample Question Paper 2 for 2021 Board Examination
Equity Share First Call A/c (2,94,000 × 3) To Equity Share Capital A/c (2,94,000 × 2) To Securities Premium Reserve A/c (2,94,000 × 1)(Being the first call due on 2,94,000 shares)
Dr. 8,82,0005,88,0002,94,000
Equity Share Second and Final Call A/c (2,94,000 × 3) To Equity Share Capital A/c (2,94,000 × 2) To Securities Premium Reserve A/c (2,94,000× 1)(Being the second and final call due on 2,94,000 shares)
Dr. 8,82,0005,88,0002,94,000
Equity Share Capital A/c (9,000 × 10)Securities Premium Reserve A/c (9,000 × 2) To Equity Share First Call A/c (9,000 × 3) To Equity Share Second and Final Call A/c (9,000 × 3) To Forfeited Shares A/c(Being 9,000 shares of Ruchi forfeited for non-payment of calls)
Dr.Dr.
90,00018,000
27,00027,00054,000
Forfeited Equity Shares A/c (12,000 × 1) To Equity Share Capital A/c(Being the discount on reissue adjusted against the credit balance of forfeited shares account)
Dr. 12,00012,000
Forfeited Equity Shares A/c To Capital Reserve A/c (WN 3)(Being the profit on reissue transferred to capital reserve)
Dr. 60,00060,000
Working Notes:1. (i) Excess Amount Received from Jatin on Application
6,000 shares were allotted to Jatin. Therefore, he must have applied for 3 60 0003 00 000
6 000 7 200, ,, ,
, ,×
= shares
Excess application money received from Jatin (7,200 - 6,000) = 1,200 shares × ` 6 = ` 7,200 (ii) Money Due from Jatin on Allotment Amt. (`) 6,000 shares × ` 2 12,000 (-) Excess application money adjusted on allotment (7,200) [` 6,000 as a part of share capital (6,000 × ` 1) and balance ` 1,200 as a part of securities premium] Money due from Jatin 4,800 (iii) Money Received on Allotment Amt. (`) Total amount due on allotment (3,00,000 × ` 2) 6,00,000 (-) Excess application money adjusted (60,000 × ` 6) (3,60,000) 2,40,000 (-) Money not paid by Jatin (ii) (4,800) Net amount received on allotment 2,35,200
2. Ruchi applied for 10,800 shares. Therefore, he must have been allotted = ×
=3 00 0003 60 000
10 800 9 000, ,, ,
, , shares
She has not paid first and second call money. As such, (i) First call money will be received on (2,94,000 - 9,000 shares of Ruchi) = 2,85,000 shares (ii) Second call money will be received on (2,94,000 - 9,000 shares of Ruchi) = 2,85,000 shares3. Amount Transferred to Capital Reserve 12,000 shares have been reissued which include 9,000 shares of Ruchi and the balance 3,000 of Jatin Amt. (`) (i) Amount forfeited in respect of Ruchi shares 54,000
(ii) Amount forfeited in respect of Jatin shares 36 0003 0006 000
,,,
×
18,000
72,000 (-) Loss on reissue of 12,000 shares @ ` 1 each (12,000) Profit on reissue to be transferred to capital reserve 60,000
20 aCCOUNtaNCY Class XIIamadhaan4. Balance in Forfeited Shares Account Profit on 6,000 shares of Jatin ` 36,000.
Therefore, the balance of forfeited shares account on 3,000 unissued shares36 0006 000
3 000,,
,×
is `18,000.
Note: It should be noted that forfeited amount of shares not yet reissued will be shown in the balance sheet as part of capital.5. Adjustment of Securities Premium Reserve on Forfeiture of Jatin’s Share: Securities premium reserve related to allotment of 6,000
shares to Jatin = 6,000 × `1 = `6,000, out of this `1,200 is already received as surplus application money. Balance of `4,800 has not been received by the company.
Therefore, at the time of forfeiture, securities premium reserve account will be debited by `4,800 to cancel it because securities premium account was credited at the time of allotment. This should also be considered at the time of forfeiture of Ruchi shares.
OrJournal
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c (1,24,000 × 2) To Equity Share Application A/c(Being the application money received @ ` 2 per share on 1,24,000 sahres)
Dr. 2,48,0002,48,000
Equity Share Application A/c To Equity Share Capital A/c (40,000 × 2) To Equity Share Allotment A/c To Bank A/c (Being the application money adjusted)
Dr. 2,48,00080,000
1,47,00021,000
Equity Share Allotment A/c (40,000 × 4.5) To Equity Share Capital A/c (40,000 × 2) To Securities Premium Reserve A/c (40,000 × 2.5)(Being the allotment money due)
Dr. 1,80,00080,000
1,00,000
Bank A/c (WN 3) To Equity Share Allotment A/c(Being the allotment money received except on 1,000 shares)
Dr. 30,50030,500
Equity Share First and Final Call A/c To Equity Share Capital A/c (40,000 × 6)(Being the first and final call money due)
Dr. 2,40,0002,40,000
Bank A/c (39,000 × 6) To Equity Share First and Final Call A/c(Being the first and final call money received except on 1,000 shares)
Dr. 2,34,0002,34,000
Equity Share Capital A/c (1,000 × 10)Securities Premium Reserve A/c (1,000 × 2.5) To Forfeited Shares A/c To Equity Shares Allotment A/c (WN 2) To Equity Shares First and Final Call A/c (1,000 × 6)(Being 1,000 shares forfeited)
Dr.Dr.
10,0002,500
4,0002,5006,000
Working Notes:
Shares Applied
Shares Allotted
Application Money Received ` 2 per Share
Application Money Transferred to Share
Capital A/c
Excess Application
Money
Share Allotment Due
Excess Application
Money Adjusted
Allotment Money to be
Received
Excess Money to be
Refunded
(i) 20,000 10,000 40,000 (20,000 × 2) 20,000 (10,000 × 2) 20,000 45,000 (10,000 × 4.5) 20,000 25,000 —
(ii) 56,000 14,000 1,12,000 (56,000 × 2) 28,000 (14,000 × 2) 84,000 63,000 (14,000 × 4.5) 63,000 — 21,000
(iii) 48,000 16,000 96,000 (48,000 × 2) 32,000 (16,000 × 2) 64,000 72,000 (16,000 × 4.5) 64,000 8,000 —
1,24,000 40,000 2,48,000 80,000 1,68,000 1,80,000 1,47,000 33,000 21,000
Note: After adjustment of excess application money on allotment, there is still balance, in case of category (ii), ` 21,000 (i.e. 84,000 - 63,000). This balance will be refunded to the shareholders.2. Money Due from Riya on Allotment Category (i) applicants for 20,000 shares were allotted 10,000 shares.
Riya was allotted 1,000 shares. She applied for 20 00010 000
1000 2 000,,
, ,×
= shares
Therefore, application money paid by Riya (2,000 × 2) = `4,000
21Sample Question Paper 2 for 2021 Board Examination Amt. (`) Application money received on application 4,000 (-) Amount due on application (1,000 × `2) (2,000) Excess application money to be adjusted on allotment 2,000 Money due on allotment (1,000 × 4.5) 4,500 (-) Excess application money adjusted on allotment (2,000) Allotment money not paid by Riya 2,500 3. Money Received on Allotment Total amount due on allotment 1,80,000 (-) Excess application money adjusted (1,47,000) Allotment money to be received 33,000 (-) Money not paid by Riya (2,500) Allotment money received 30,500
22. Dr. Revaluation Account Cr.Particulars Amt. (`) Particulars Amt. (`)
To Plant A/c 7,000 By Building A/c 14,000To Provision for Bad Debts A/c 700To Profit Transferred to Rachit’s Capital A/c 3,600 Madhur’s Capital A/c 2,700 6,300
14,000 14,000
Dr. Partners’ Capital Account Cr.Particulars Rachit (`) Madhur (`) Rishant (`) Particulars Rachit (`) Madhur (`) Rishant (`)
To Balance c/d 76,600 64,950 47,183 By Balance b/d 70,000 60,000 —By Revaluation A/c (Profit) 3,600 2,700 —By Rishant’s Current A/c 3,000 2,250 —By Cash A/c — — 47,183
76,600 64,950 47,183 76,600 64,950 47,183
Balance Sheet as at 1st January, 2020
Liabilities Amt. (`) Assets Amt. (`)
Sundry Creditors 20,000 Cash (14,800 + 47,183) 61,983
Bills Payable 3,000 Debtors 20,500
Bank Overdraft 17,000 (-) Provision for Doubtful Debts (1,000) 19,500
Capital A/cs’ Stock 20,000
Rachit 76,600 Plant 40,000
Madhur 64,950 (-) Depreciation (7,000) 33,000
Rishant 47,183 1,88,733 Building 75,000
(+) Appreciation 14,000 89,000
Rishant’s Current A/c 5,250
2,28,733 2,28,733
Working Note:
Rishant’s share of goodwill = × =2100014
5 250, ,`
To be distributed among old partners in their sacrificing ratio, i.e. 4 : 3.
Rachit’s gain = × =5 25047
3 000, , ;`
Madhur’s gain = × =5 25037
2 250, ,`
22 aCCOUNtaNCY Class XIIamadhaanOr
Revaluation AccountDr. Cr.
Particulars Amt. (`) Particulars Amt. (`)
To Prepaid Insurance A/c 10,000 By Typewriter A/c (Unrecorded) 10,000
To Investment A/c 10,000 By Provision for Creditors A/c 4,000
To Outstanding Repair Bill A/c 10,000 By Provident Fund A/c 10,000
To Profit Transferred to By Accrued Commission A/c 5,000
A’s Capital A/c 9,500 By Building A/c 20,000
B’s Capital A/c 5,700
C’s Capital A/c 3,800 19,000
49,000 49,000
Partners’ Capital AccountDr. Cr.Particulars A (`) B (`) C (`) Particulars A (`) B (`) C (`)
To Investment A/c 20,000 — —
By Balance b/d 40,000 30,000 30,000
To Goodwill A/c 10,000 6,000 4,000
By General Reserve A/c 15,000 9,000 6,000
To Profit and Loss A/c 20,000 12,000 8,000
By Reserve for Contingency A/c 10,000 6,000 4,000
To C’s Capital A/c 4,000 4,000 —
By Workmen Compensation Fund A/c 20,000 12,000 8,000
To Cash A/c — — 10,000 By A’s Capital A/c — — 4,000
To C’s Loan A/c — — 37,800
By B’s Capital A/c — — 4,000
To Balance c/d 40,500 40,700 —
By Revaluation A/c (Profit) 9,500 5,700 3,000
94,500 62,700 59,800 94,500 62,700 59,800
Bank AccountDr. Cr.Particulars Amt. (`) Particulars Amt. (`)
To Balance b/d 40,000 By C’s Capital A/c 10,000By Balance c/d 30,000
40,000 40,000
Balance Sheetas at...
Liabilities Amt. (`) Assets Amt. (`)Creditors (80,000 - 4,000) 76,000 Bank 30,000Outstanding Repair Bill 10,000 Typewriter (Unrecorded) 10,000Provident Fund (40,000 - 10,000) 30,000 Accrued Commission 5,000Bills Payable 60,000 Building (1,00,000 + 20,000) 1,20,000C’s Loan 37,800 Debtors 60,000Capital A/cs’ Furniture 40,000
A— 40,500 Patents 30,000B— 40,700 81,200
2,95,000 2,95,000
Working Notes:1. Calculation of Gaining Ratio Gaining ratio = New share - Old share
A = − =
−=
35
510
6 510
110
B = − =
−=
25
310
4 310
110
Gaining ratio = 1 : 12. C’s Share in Goodwill
Goodwill = ×40 0002
10, = `8,000
`8,000 given by continuing partners in gaining ratio, i.e. 1 : 1.
Part-B 23. (c) fictitious assets
24. (c) Issue of bonus shares
25. (c) ` 80,000Hint: Source of cash = 1,20,000 - 40,000 = ` 80,000(Cash inflow through investing activities by selling of fixed assets)
26. (c) 20%
Hint: Percentage of share capital = × =6 00 000 10030 00 000
20, ,
, ,%
27. (a) Creditors
28. Cash flow means cash inflow (received) and cash outflow (payments) from different activities of a company.
29. analysis of financial statements
30. The three items shown under the heading ‘reserves and surplus’ are:
(i) Capital Reserve: Capital reserve is the main sub-heading of reserve and surplus which is created from capital profits/gains of the business and retained for writing-off the losses of the company.
(ii) Securities Premium Reserve: Securities Premium Reserve (SPR) is that reserve which is created/collected by issuing shares more than its face value by a company.
(iii) General Reserve: It refers to those reserves which is created out of profit amount of the business every year. It is retained for completing the future objects/growth of the business or used to meet future obligations. It is also a main sub-heading of reserves and surplus.
OrCommon Size Statement of Profit and Loss
for the year ending 31st March, 2020
S.No. Particulars Note No.
Absolute Amount 31st March, 2020
(`)
Percentage of Revenue from
Operations 31st March, 2020 (`)
I. Revenue from Operations 10,00,000 100
II. Other Income 2,00,000 20
III. Total Income 12,00,000 120
IV. Expenses:
(a) Purchases of Stock-in-trade 5,00,000 50
23Sample Question Paper 2 for 2021 Board Examination
(b) Changes in Inventories of Stock-in-trade 2,50,000 25
(c) Other Expenses 1,50,000 15
Total Expenses 9,00,000 90
V. Profit before Tax (III - IV) 3,00,000 30
31. (i) Debt to Equity Ratio
= = =Debt*
Equity or Shareholders’ Funds**10 00035 000
0 286 1,,
. :
*Debts = 9% Debentures = `10,000**Shareholders’ Funds = Equity Share Capital + General Reserve
+ Balance of Statement of Profit and Loss = 25,000 + 2,500 + 7,500 = `35,000(ii) Working Capital Turnover Ratio
= =Revenue from Operations (Net sales)Working Capital*
25 00, 002 500
10,
= times
*Working Capital = Current Assets** - Current Liabilities = 10,000 - 7,500 = ` 2,500**Current Assets = Cash + Debtors = 2,750 + 7,250 = ` 10,000Current Liabilities = Creditors = `7,500(iii) Return on Investment
= Profit before Interest, Tax and Preference Dividend*
Capitaal Employed**× 100
= × =15 900
45 000100 35 33
,,
. %
*Profit before Tax
=
−× = ×
−=Profit after Tax
Tax Rate100100
7 500 100100 50
7 50 000, , ,550
15 000= ` ,
Profit before Interest and Tax = 15,000 + 900 (Interest on debentures) = ` 15,900
**Capital Employed = Equity Share Capital + General Reserve
+ Balance of Statement of Profit and Loss +9% Debentures
= 25,000 + 2,500 + 7,500 + 10,000 = ` 45,000Or
(i) Gross Profit Ratio = ×Gross ProfitRevenue from Operations
100
Gross Profit = Revenue from Operations - Cost of Revenue from Operations (Cost of Goods Sold)
= `30,000 - `20,000 = `10,000
Gross Profit Ratio = × =`
`
10 00030 000
100 33 33,,
. %
(ii) Current Ratio = = =
Current AssetsCurrent Liabilities
`
`
6 0002 000
3 1,,
:
(iii) Quick Ratio
= = −Quick Assets
Quick Liabilities(Inventory)` `6 000 1000
2 0, ,
, 0002 5 1= . :
(iv) Debt to Equity Ratio
= =
DebtEquity (Shareholders Funds)
DebenturesShare Capital + Profit (Net)
=
+= =`
` `
`
`
2 5005 000 3 000
2 5008 000
0 31 1,
, ,,,
. :
32. Cash Flow Statementfor the year ended 31st March, 2020
Particulars Amt. (`)
I. Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items 13,75,000
(+) Non-cash and Non-operating Expenses
Depreciation 4,00,000
Interest on Debentures 1,50,000
Loss on Sale of Fixed Assets 10,000 5,60,000
Operating Profit before Working Capital Changes 19,35,000
(+) Increase in Current Liabilities or Decrease in Current Assets
Trade Payables 4,50,000
Outstanding Expenses 10,000 4,60,000
(-) Increase in Current Assets or Decrease in Current Liabilities
Inventories (3,50,000)
Trade Receivables (1,00,000) (4,50,000)
Cash Generated from Operations 19,45,000
(-) Income Tax Paid (3,75,000)
Cash Flow from Operating Activities 15,70,000
II. Cash Flow from Investing Activities
Proceeds from Sale of Assets (Machinery) 40,000
Proceeds from Sale of Investment 4,00,000
Purchase of Machinery (12,00,000)
Purchase of Investment (3,50,000)
Cash Used in Investing Activities (11,10,000)
III. Cash Flow from Financing Activities
Proceeds from Issue of Shares 5,00,000
Repayment of Debentures (5,00,000 + 50,000) (5,50,000)
Interest Paid on Debentures (1,50,000)
Proposed Dividend Paid (1,50,000)
Cash Used in Financing Activities (3,50,000)
IV. Net Increase in Cash and Cash Equivalents (I + II + III) 1,10,000
(+) Cash and Cash Equivalents in the Beginning of the Year 3,25,000
V. Cash and Cash Equivalents at the end of Year 4,35,000
Working Notes:
1. Dr. Plant and Machinery Account Cr.
Particulars Amt. (`) Particulars Amt. (`)
To Balance b/d 50,00,000 By Bank A/c 40,000
To Bank A/c (Balancing figure)
12,00,000 By Accumulated Depreciation A/c 1,50,000
(Purchase of Machinery) By Loss on Sale (Statement of profit and loss) 10,000
By Balance c/d 60,00,000
62,00,000 62,00,000
24 aCCOUNtaNCY Class XIIamadhaan 2. Dr. Accumulated Depreciation Account Cr.
Particulars Amt. (`) Particulars Amt. (`)
To Plant and Machinery A/c (Transfer) 1,50,000 By Balance b/d 10,00,000
To Balance c/d 12,50,000 By Depreciation A/c (Balancing figure) 4,00,000
(Statement of profit and loss)
14,00,000 14,00,000
3. Dr. Provision for Tax Account Cr.
Particulars Amt. (`) Particulars Amt. (`)
To Bank A/c (Tax paid) 3,75,000 By Balance b/d 3,50,000
To Balance c/d 3,80,000 By Statement of Profit and Loss 4,05,000
(Provision for tax) (Balancing figure)
7,55,000 7,55,000
Amt. (`)
4. Surplus, i.e. Balance in Statement of Profit and Loss (Closing) 23,00,000
(-) Surplus, i.e. Balance in Statement of Profit and Loss (Opening) (15,00,000)
8,00,000
(+) Proposed Dividend for the Current Year 1,70,000
Provision for Tax (WN 3) 4,05,000 Net Profit before Tax and Extraordinary Items 13,75,000
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