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INDIAN SCHOOL AL WADI AL KABIR

SAMPLE PAPER-3, 2019-20

Class: XII Sub: ACCOUNTANCY (055) M.M: 80

General Instructions: (i) This question paper contains two parts – A and B. (ii) Part A is compulsory for all. (iii) Part B has two options – Analysis of Financial Statements and Computerized Accounting. (iv)Attempt only one option of Part B. (v) All parts of a question should be attempted at one place.

PART A: Accounting for Not-for-Profit Organizations, Partnership Firms & Companies

Q. No Questions Marks

PART -A

1.

Subscription received in advance by a club are shown

(a) In the credit side of the income and expenditure account

(b) In the asset side of the balance sheet

(c) In the liabilities side of the balance sheet

(d) None of the above

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2. The balance in the investment fluctuation fund, after meeting the loss on revaluation of

investments, at the time of aadmission of a partne will be transferred to

(a) The old partners’ capital account

(b) The revaluation Account

(c) The General Reserve

(d) None of the above

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3. Premium received on the issue of shares is shown on,

(a) Equity and liabilities part of the balance sheet

(b) Assets part of the balance sheet

(c) Credit side of the statement of profit and loss

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(d) Debit side of the statement of profit and loss

4. Interest payable on the capitals of the partners is charged to ------------------AccounT

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5. The share of goodwill of the retiring partner is debited to the remaining partners in their -

-------

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6.

------------ is the amount not called – up by the company, but paid by the shareholders.

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7.

At the time of dissolution of the firm, Partner’s loan is paid first and then the loan from

an outsider is settled.

Is the above statement true or false ? Give reason for your answer.

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8.

Y ltd forfeited 100 equity shares of Rs. 10 each for non-payment of first call of Rs. 2 per

share. The final all of Rs. 2 per share was yet to be made.

The maximum amount of discount at which these shares can be reissued is Rs. 7 per

share.

Is the statement true. Justify your answer.

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9.

When a new partner brings cash for goodwill, the amount is credited to the premium for

goodwill account.

Is the above statement true?

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10.

Land and Building (Book Value) Rs. 1,60,000 sold for Rs. 3,00,000 through a broker

who charged 2% commission on the deal. Journalise the transaction at the time of the

firm.

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11.

In case of dissolution of partnership firm, what will be the journal entry if unrecorded

assets are taken over by a partner?

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12.

A, B and C are partners sharing profits in the ratio of 5:3:2. They decided to share future

profits in the ratio of 2:3:5 with effect from 1st April 2019. They also decided to adjust

the following accumulated profits, losses and reserves without affecting their book

values, by passing an adjustment entry:

Profit and Loss Account Rs. 15,000

General Reserve Rs. 60,000

Advertising Suspense A/c Rs. 30,000

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13.

Write any one point of difference between Capital Reserve and Reserve Capital

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14.

Following is the extract of Receipts & Payments Account of Muscat Club for the year

ending Dec. 31, 2016:

Receipts Rs. Payments Rs.

By Salaries:

2015

2016

2017

20,000

2,80,000

18,000

Additional information:

(i) Salaries outstanding on 31st December, 2015 Rs.25,000.

(ii) Salaries outstanding on 31st December, 2016 Rs.45,000.

(iii) Salaries paid in advance on 31st December, 2015 Rs.10,000

Show the treatment of above items

OR

Extracts of Receipt and Payment Account for the year ended March 31, 2017

are given below:

Subscriptions (Rs.)

2015-16 2,500

2016-17 26,750

2017-18 1,000

30,250

Additional Information:

Total number of members: 230.

Annual membership fee: Rs. 125.

Subscriptions outstandings on April 1, 2016: Rs. 2,750.

How will you show the above items in final accounts of NPO.

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15.

Following is the Balance Sheet of Mighty, Akbar and Akhil as on 31st March 2017.

Their profit sharing ratio is 2:2:1

LIABILITIES Amount ASSETS Amount

Creditors 24,000 Cash at Bank 36,000

Bills Payable 16,000 Stock 28,000

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General Reserve 12,000 Debtors 16,000

Capital A/c’s Land and Building 2,00,000

Mighty 1,20,000 Profit and Loss A/c 64,000

Akbar 1,20,000

Akhil 52,000

Total 3,44,000 Total 3,44,000

Akbar died on 30th

June 2017. The Partnership Deed provided for the following on the

death of a partner:

(i) Goodwill of the firm was valued at 2 years’ purchase of the average profit of the last

5 years. The profit for the year ended 31st March 2016; 31

st March 2015; 31

st March

2014; 31st March 2013 were Rs. 20,000, Rs. 32,000, Rs. 44,000, and Rs. 88,000

respectively.

(ii) Akbar’s share of profit or loss till the date of death is to be calculated on the basis of

profit or loss for the year ended 31st

March 2017. Pass necessary journal entries.

16.

After doing their graduation, Sourav suggested to his class mate Tejaswini to form a

partnership to sell low cost school uniforms to the students belonging to low income

group who have admitted to the private schools of the city as per the provisions of Right

to Education Act 2009. Tejaswini agreed to the proposal and requested to admit her

friend Sita, a visually handicapped unemployed person also to be a member of the

proposed firm. All of them agreed to form a partnership firm but they were not having

enough capital to invest. Sourav therefore persuaded a rich friend of his, Arunima, who

hailed from Assam to be a partner and contribute the required capital. All of them

formed a partnership on the following terms:

(i) Sourav will contribute Rs. 1,00,000, Tejaswini Rs. 50,000, Arunima Rs.

10,00,000 and Sita will be a partner without capital

(ii) Profits will be shared equally

(iii) Interest on capital allowed at 5% p.a

(iv) The profit of the firm for the year ended 31st march 2019 were Rs.

1,50,000

Prepare Profit and loss Appropriation account for the firm for the year ending 31st march

2019

OR

X and Y are partners sharing profits in the ratio of 3:2. On 31 st March 2019 after

closing

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the books of accounts, their capitals are Rs. 5,00,000 and Rs. 6,25,000 respectively. On

1 st May 2018, X had introduced an additional capital of Rs. 1,25,000 and Y withdrew

Rs. 62,500 from his capital. On 1 st October 2018, X withdrew Rs. 2,50,000 from his

capital and Y introduced Rs. 3,12,500. After closing the accounts, it was noticed that

Interest on Capital @ 6% p.a. has been omitted. During the year ended 31 st March

2019, X’s Drawings and Y’s Drawings were Rs. 1,25,000 and Rs. 62,500. Profits before

interest on capital during the year were Rs. 2,50,000.

Calculate Interest on Capital if the capitals are Fluctuating

17.

Xansa Ltd. offered 22,000 equity shares of Rs.100 each to the public at a premium of

Rs.20 per share. The amount per share was payable as Rs.30 on application; Rs.50

(including premium) on allotment; and the balance on first and final call. 20,000 shares

were subscribed by the public. All calls were made. A shareholder holding 1,000 shares

failed to pay the first and final call money. His shares were forfeited. All these shares

were reissued @ Rs.90 per share fully paid up.

Prepare Bank A/c, Share forfeiture A/c and show ‘Share Capital’ in the Balance Sheet

of Xansa Ltd. Also, prepare ‘Notes to Accounts’.

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18.

Shivani and Andrea were partners sharing profits in the ratio of 3:1. On 31st March,

2017, their Balance Sheet was as follows:

LIABILITIES AMOUNT ASSETS AMOUNT

Capital A/cs:

Shivani

1,20,000

Land and Building

70,000

Andrea 80,000 Machinery 60,000

Creditors 70,000 Debtors 80,000

Bank 60,000

2,70,000 2,70,000

The firm was dissolved on 1st April 2017 and the Assets and Liabilities were settled as

follows:

(i) Creditors of Rs. 50,000 took over Land and Building in full settlement of their claim.

(ii) Remaining Creditors were paid in cash.

(iii) Machinery was sold at a depreciation of 30%

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(iv) Debtors were collected at a cost of Rs. 500.

(v) Expenses of realization were Rs. 1,700

Pass necessary Accounts for dissolution of the firm.

19.

Fill the missing figures for the following entries in the books of a company

Date Particulars L.F. Debit (Rs.) Credit(Rs.)

2016

April

1st

Bank A/c Dr

To ----------------

(Being issue of 5,000, 9% Debentures of

Rs.100 each at a premium of 10%)

------------

------------

-------------

To 9% Debentures A/c

To ----------------

(Being acceptance of 5,000, 9%

Debentures of Rs. 100 each @ Rs. 110 per

debenture)

-------------

5,00,000

-----------

March

2017

---------------

To -----------------

(Being purchase of 250 own debentures @

Rs. 97 each, 150 own debentures @ Rs.

96 each and 100 own debentures @95

each for immediate cancellation)

-------------

------------

March

31

------------------------

To Bank A/c

(Being the expenses met for purchase of

debentures paid)

200

200

March

31

---------------------

To ------------------

To ------------------

(Being cancellation of own 500, 9%

Debentures purchased)

----------

-------------

-------------

March

31

--------------------

To --------------------

(Being the profit on cancellation of own

debentures transferred)

----------

------------

March

31

--------------------

To General Reserve A/c

(Being proportionate amount of 250, 9%

debentures cancelled transferred from

DRR to general reserve)

-----------

------------

OR

(a) B. Ltd. issued 1,000, 12% debentures of Rs.100 each on April 01, 2010 at a

discount of 5% redeemable at a premium of 10%.

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Give journal entries relating to the issue of debentures and debentures interest for

the period ending March 31, 2011 assuming that interest is paid half yearly on

September 30 and March 31 and tax deducted at source is 10%.

(a) B.Ltd. purchased assets of the book value of Rs.4,00,000 and took over the

liability of Rs.50,000 from Mohan Bros. It was agreed that the purchase

consideration, settled at Rs,3,80,000, be paid by issuing debentures of Rs.100

each. What Journal entries will be made in the following three cases, if

debentures are issued: (a) at par; (b) at discount; (c) at premium of 10%? It was

agreed that any fraction of debentures be paid in cash.

20.

Given below is the Receipts and payments Account of Dubai Sports Club for the year

ended 31.12.2019.

Receipt Rs. Payment Rs.

To Donations

To Life Membership Fees

To Entrance Fees

To Quadrangular Match fund

To Subscription (including 100

for 2020)

To Interest

To Other Match Receipts

To Sundry Receipts

50,000

1,500

2,500

10,000

3,200

200

900

100

68,400

By Buildings

By Exp. of Quadrangular

matches

By Furniture

By Salaries

By Expenses on Cricket,

Tennis etc.

By Insurance (Paid up to

June 2020)

By Gardening

By Printing & Stationery

By Postage etc.

By Sundries

By Investments at cost

By Balance c/d

40,000

900

2,100

1,800

1,140

360

170

80

200

150

18,000

3,500

68,400

Additional Information: Subscriptions for 2019 amounting to Rs. 300 are outstanding

and unpaid.

Outstanding salaries for December, 2019 are Rs.170.

Rs. 200 is the amount of interest accrued on investments.

You are required to prepare the income and expenditure Account and Balance Sheet as

on 31st December 2019

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21.

The following was the Balance Sheet of A, B and C sharing profits

and losses in the ratio of 6: 5: 3respectively.

Liabilites Amount (Rs.) Assets Amount (Rs.)

Creditors 9,000 Land and

Buildings

24,000

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Bills Payable 3,000 Furniture 3,500

Capital Accounts Stock 14,000

A 19,000 Debtors 12,600

B 16,000 Cash 900

C 8,000 43,000

55,000 55,000

They agreed to take D into partnership and give him a share of 1/8

on the following terms:

a) D should bring in Rs. 4,200 as goodwill and Rs. 7,000 as his Capital;

(b) Furniture be depreciated by 12%;

(c) Stock be depreciated by 10%

(d) Reserve of 5% be created for doubtful debts.

(e ) Value of land and buildings having appreciated be brought upto Rs. 31,000

(f) After making the adjustments the capital accounts of the old partners (who continue

to share in the same proportion as before) be adjusted on the basis of the proportion of

D’s Capital to his share in the business, i.e., actual cash to be paid off to, or brought in

by the old partners as the case may be.

Prepare Profit and Loss Adjustment Account (Revaluation Account), Partners capital

account and the Balance Sheet of the firm.

OR

P,Q, and R are partners sharing profits in 3:2:1. The Balance sheet is as follows:

LIABILITIES AMT ASSETS AMT

Creditors 20,000 Goodwill 5000

EPF 1000 Cash 6000

Workmen compensation

reserve

15000 Stock 35000

Investment fluctuation

reserve

3000 Investments(market value

17600)

15000

Capitals:

P

Q

R

68000

32000

21000

Debtors 40000

Less: PBDD 2000

38000

160000 Patents 5000

Plant 50000

Advertisement suspense 6000

160000 160000

Prepare necessary accounts and Balance Sheet if R retired on following terms:

1. Goodwill of the firm is valued at 30000.

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2. Patents be reduced by 20% and Plant to 90%.

3. PBDD be raised to 6%.

4. R took over investments at market value.

5. Liability of provident fund was 2750.

6. Liability of workmen compensation fund was 3000.

7. R was to be paid half on retirement and remaining through Bill of Exchange.

Capital of partners is adjusted in the new ratio and excess or deficit be transferred to cash

22.

I ltd issued 50000 shares of 10 each at premium of 2 per share payable as 3 on

application, 5 on allotment (inc prem) and balance on first and final call. Applications

were received for 92000 shares and allotment was made as follows: (A) Applicants of

40000 shares- 30000 shares. (B) Applicants of 40000 shares- allotted 20000 shares (C)

Applicants of 12000 shares- Nil. Suresh who applied for 2000 shares in category A

didn’t pay any money after application. Chandu who was allotted 800 shares in category

B paid the call money due along with allotment. Suresh’s shares were forfeited. The

forfeited shares were subsequently reissued at maximum discount as fully paid. Pass

entries

OR

Amisha Ltd. invited applications for 40,000 shares of Rs.100 each at a premiumof Rs.20

per share payable; on application Rs.40 ; on allotment Rs.40 (Includingpremium): on

first call Rs.25 and Second and final call Rs.15.

Applications were received for 50,000 shares and allotment was made on prorate basis.

Excess money on application was adjusted against due on allotment. Rohit to whom 600

shares were allotted failed to pay the allotment money and his shares were forfeited after

allotment. Ashmita, who applied for 1,000 shares failed to pay the two calls and her

shares were forfeited after the second call. Of the shares forfeited, 1,200 shares were

sold to Kapil for Rs.85 per share as fully paid, the whole of Rohit’s shares being

included. Record necessary journal entries.

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23.

PART - B

Sale of Fixed Asset (Book Value Rs. 40,000) at a loss of Rs. 5,000 will lead to --------- in

ratio

(a) Increase (b) Decrease (c ) No Change

(Note: Debt to Equity Ratio is 2:1)

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24.

Cash withdrawn from Bank leads to ---------of cash

(a) Inflow (b) Outflow (c) No flow

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25.

Debt Equity Ratio of a company is 1:2. Purchase of a Building for Rs. 6,00,000 on long

term deffered payment basis will increase, decrease or not change the ratio?

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26.

The two basic measures of operational efficiency of a company are:

(a) Inventory Turnover Ratio and Working Capital Turover Ratio

(b) Liquid Ratio and Operating Ratio

(c) Gross Profit Margin and Net Profit Margin

(d) Liquid Ratio and Current Ratio.

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27.

M/s. Raj & Co purchased a machinery for R.s. 8,00,000. It received dividend of Rs.

60,000 on investment in shares. The company also sold an old machine of the book

value of Rs. 88,000 at a loss of Rs. 15,000. Calculate cash flow from investing activities.

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28.

Pride Ltd is carrying on Mutual Fund business. It invested Rs.15,00,000 in shares and

Rs. 10,00,000 in debentures of various companies during the year. It received Rs.

2,00,000 as dividend and interest together. Find out Cash flow from Investing Activities.

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29.

Name the Main Head and the Sub-Head under which Debentures appear in the Balance

Sheet of a company.

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30.

From the following information calculate:

(i) Return on Investment (ii) Inventory Turnover Ratio

RFO Rs. 25,20,000

Net Profit Rs. 3,60,000

Cost of Sales Rs. 19,20,000

Long-term Debt Rs. 9,00,000

Creditors Rs. 2,00,000

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Average Inventory Rs. 8,00,000

Current Assets Rs. 7,60,000

Fixed Assets Rs. 14,40,000

Current Liabilities Rs. 6,00,000

Net Profit before Interest and Tax Rs. 8,00,000

31.

Prepare a common size Balance sheet of AK Ltd from the following information:

Particulars Note

No

31st March 2018 (Rs) 31

st March 2019(Rs)

I Equity and Liabilities

1. Shareholder’s funds

2. Non- current liabilities

3. Current Liabilities

8,00,000

5,00,000

3,00,000

4,00,000

2,00,000

2,00,000

Total 16,00,000 8,00,000

II. Assets

1. Non-Current Assets

2. Current Assets

10,00,000

6,00,000

5,00,000

3,00,000

Total 16,00,000 8,00,000

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32.

Following is the Balance Sheet of Sreshtha Ltd. as on 31st March, 2019.

Particulars Note

no

2018-19 2017-18

I. EQUITY AND LIABILITIES

(1) Shareholders Funds

(a) Share Capital

(b) Reserves and Surplus

(2) Non-Current Liabilities

Long Term Borrowings

(3) Current Liabilities

(a) Trade Payables

(b) Short Term Provisions

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2

40,00,000

10,00,000

6,00,000

3,00,000

1,40,000

30,00,000

6,00,000

4,00,000

4,00,000

1,20,000

TOTAL 60,40,000 45,20,000

II. ASSETS

(1) Non-current Assets

(a) Fixed Assets

(i) Tangible assets

(ii) Intangible assets

(2) Current Assets

(a) Inventories

(b) Trade Receivables

(c) Cash and Cash Equivalents

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4

38,00,000

9,40,000

5,00,000

4,20,000

3,80,000

30,00,000

5,40,000

3,20,000

4,20,000

2,40,000

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TOTAL 60,40,000 45,20,000

Notes to Accounts :

No. Particulars As on 31-3-2019 As on 31-3-

2018

1. Reserves and Surplus:

Surplus (Balance in Statement of

Profit and Loss)

10,00,000

6,00,000

2. Short Term provisions:

Provision for tax

1,40,000

1,20,000

3. Tangible Assets:

Machinery

Accumulated Depreciation

42,00,000

(4,00,000)

33,00,000

(3,00,000)

4. Intangible Assets:

Goodwill

9,40,000

5,40,000

Prepare a Cash Flow Statement after taking into account the following adjustment :

During the year a piece of machinery costing Rs. 40,000 on which accumulated

depreciation was Rs. 30,000, was sold for Rs. 9,000.

PART- C

COMPUTERIZED ACCOUNTING

(NOT APPLICABLE TO ISWK STUDENTS)