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CTF’s Sample Papers: Accountancy 12PB CTF’s Sample Papers: Accountancy 12 59

PArT–A(ACCOUNTING FOr PArTNErSHIP FIrMS AND COMPANIES)

1. Loss on realisation = `1,95,000 2. New Profit Sharing Ratio: 20:11:9 3. Interest on drawing = 54000 × 15/100 × 3/12 = `2,025 4. i) For issuing fully paid bonus shares to equity shares holders. ii) For writing of expenses or discount allowed on issue of shares or debenture. iii) For providing for payment of premium on redemption of preference shares or debentures. 5. Super Profit = Average Profit – Normal Profit = `54,000 – `48,000 = `6,000 6. Capital reserve = `6,00,000 – `5,93,500 = `6,500 7. Journal

Date Particulars L.F. Dr. (`) Cr. (`)

31.03.2015 C’s current A/c Dr. D’s Current A/c Dr.

To A’s Current A/c To B’s Current A/c

(Adjustment entry for wrong charging of interest on capital and on drawings)

360

1,630 1,580 410

8. Balance Sheet of PQr Ltd. As at 31st March, 2016

Particulars Note No. 31st March, 2016

I. EQUITY AND LIABILITY1. Shareholders’ Fund

a) Share Capital2. Current Liabilities

a) Other Current Liabilities

1

2

17,85,000

4,000

Total 17,89,000II. Assets

1. Current Assets:a) Cash and Cash Equivalents 3 17,89,000

Total 17,89,000

SOLUTIONS(PrACTICE SAMPLE PAPEr-5)

CTF’s Sample Papers: Accountancy 1260 CTF’s Sample Papers: Accountancy 12 61

Notes to Accounts:

Particulars 31st March 2016

1. Share Capital:i) Authorised capital:

6,00,000 shares of `10 eachii) Issued Capital:

3,00,000 shares of `10 eachiii) Subscribed Capital:

3,00,000 shares of `10 each 6 Called up 18,00,000 Less Call in Arrear (7,500 × 2) (15,000)

2. Other current Liabilities:Call in Advance

3. Cash and Cash Equivalents:Cash at Bank

60,00,000

30,00,000

17,85,000

4,000

17,89,000

9. Journal EntryDate Particulars L.F. Dr. (`) Cr. (`)

2016 March 31

12% Debentures A/c Dr.Premium on redemption of Debentures A/c Dr.

To Debenture holder A/c (11,500 debentures of `200 each cancelled for conversion)

23,00,000 2,30,000

25,30,000

Debenture holder A/c Dr.To Equity share Capital A/cTo Securities Premium Reserve A/c

(6,000 debentures converted into equity shares at 20% premium)

13,20,00011,00,000 2,20,000

Debenture holder A/c Dr.To 9% Preference share Capital A/cTo Securities Premium Reserve A/c

(5,500 debentures converted into preference shares at premium of 10%)

12,10,00011,00,000 1,10,000

10. Vesting date: 31st March, 2018 Exercise period: 3 Months Exercise date: 30th June, 2018 Vesting period: 4 years No, Muskan is not eligible to subscribe for the option as she has not completed the terms of

contract.


11. Profit & Loss Appropriation A/c

Dr. For the year ended 31st March, 2016 Cr.Particulars Amount (`) Particulars Amount (`)

To Interest on CapitalShashwat 3,375Adamya 2,250Shivam 1,125

To Shivam’s Salary To Profit transfer to Partners Capital A/c:

Shashwat (16125 – 1425) 14,700Adamya 9,675Shivam (6450 + 1425) 7,875

6,75045,000

32,250

By Net Profit 84,000

84,000 84,000

12. JournalDate Particulars L.F. Dr. (`) Cr. (`)

2016 March 31

Reserve A/c Dr.To Aastha Capital A/cTo Nitya Capital A/cTo Ananya Capital A/c

(Reserves distributed to partners in their old ratio)

97,00048,500 9,70038,800

Aastha Capital A/c Dr.Nitya Capital A/c Dr.Ananya Capital A/c Dr.

To Profit and Loss A/c (Loss distributed in old ratio)

17,500 3,50014,000

35,000

Nitya Capital A/c (5/10 × 30,000) Dr. To Aastha Capital A/c (3/10 × 30,000)To Ananya Capital A/c (2/10 × 30,000)

(Adjustment entry for goodwill and revaluation of assets and liabilities)

15,0009,0006,000

Working Notes: Calculation of adjustment amount: Decrease in Stock (19,800) Increase in PBDD (1,500) Decrease in furniture (9,000) Decrease in machinery (10,000) Increase in Building 28,000 Goodwill 42,300 Net Adjustment amount 30,000


Calculation of Gaining/Sacrificing Ratio: Astha Nitya Ananya Old Ratio 5/10 1/10 4/10 New Ratio 1/5 3/5 1/5 Sacrifice/(Gain) 5/10 – 1/5 1/10 – 3/5 4/10 – 1/5 5 – 2/10 1 – 6/10 4 – 2/10 3/10 (S) –5/10 (G) 2/10 (S)Values: Regional Development and Generation of Employment Opportunities.13.

JournalDate Particulars L.F. Dr. (`) Cr. (`)

2016 March 31

Amar’s Capital A/c Dr. Anthony’s Capital A/c Dr.

To Akbar’s Capital A/c(Adjustment entry for goodwill on Akbar’s retirement)

9,000 18,000

27,000

Revaluation A/c Dr.To Claim for workmen Compensation A/cTo Provision for doubtful debts A/c

(Claim created and provision made)

6,0005,400 600

Stock A/c Dr. Furniture A/c Dr.

To Revaluation A/c (Revaluation of assets)

5,0005,000

10,000

Revaluation A/c Dr.To Amar’s Capital A/c To Akbar’s Capital A/c To Anthony’s Capital A/c

(Profit on revaluation is distributed in old ratio)

4,0002,0001,200 800

Outstanding Salary A/c Dr.To Cash A/c

(Unpaid salary paid off)

3,5003,500

Investment Fluctuation Fund A/c Dr.To Amar’s Capital A/c To Akbar’s Capital A/c To Anthony’s Capital A/c

(Fund distributed among the partners)

10,0005,0003,0002,000

Akbar’s Capital A/c Dr.To Akbar’s Loan A/c

(Amount due to Akbar transferred to loan account)

56,20056,200


Balance sheetAs at 1st April, 2016

Liabilities Amount (`) Assets Amount (`)Claim for workmen compensation CreditorsAkbar’s Loan A/cCapital Accounts:

Amar 61,680Anthony 41,120

5,40028,80056,200

1,02,800

CashDebtors 10,000Less: Provisions for

Doubtful debts (800) StockFurniture Investment Machinery

9,500

9,200 47,000 25,000

95,000 7,500

1,93,200 1,93,200

Calculation of Gaining/Sacrificing Ratio: Amar Akbar Anthony Old Ratio 5/10 3/10 2/10 New Ratio 3/5 2/5 Sacrifice / (Gain) 5/10 – 6/10 2/10 – 4/10 5 – 6/10 2 – 4/10 –1/10 (G) 3/10 (S) –2/10 (G)

14.

Cash A/c Dr.To Amar’s Capital A/c

(Cash brought in by Amar)

13,68013,680

Anthony’s Capital A/c Dr.To Cash A/c

(Surplus capital paid back to Anthony)

13,68013,680


2014 31th March

Surplus in Statement of Profit & Loss A/c Dr.To Debenture Redemption Reserve A/c

(Reserve created for redemption of debentures)

2,25,0002,25,000

201430th April

Debenture Redemption Investment A/c Dr.To Bank A/c

(Investment made in for redemption purpose)

75,00075,000

201531st March

Bank A/c Dr.TDS A/c Dr.

To Debenture Redemption Investment A/c To Interest Earned

(Investment realised and interest earned)

79,950 550

75,000 5,500


15.

31st March 13% Debentures A/c Dr.Premium on Redemption A/c Dr.

To Debenture holder A/c (Debentures due for redemption)

5,00,000 25,000

5,25,000

31st March Debenture holder A/c Dr.To Bank A/c

(Debentureholders paid off)

5,25,0005,25,000

31st March Interest Earned A/c Dr.To Statement of Profit and Loss A/c

(Interest on investments transferred)

5,5005,500

30th April Debenture Redemption Investment A/c Dr.To Bank A/c

(Investment made for redemption purpose)

60,00060,000

201631st March

Bank A/c Dr.TDS A/c Dr.

To Debenture Redemption Investment A/c To Interest Earned

(Investment sold and interest received)

63,960 440

60,000 4,400

31st March 13% Debentures A/c Dr.Premium on Redemption A/c Dr.

To Debenture holder A/c (Debentures cancelled at premium for redemption)

4,00,000 20,000

4,20,000

31st March Debenture holder A/c Dr.To Bank A/c

(Debentureholders paid off)

4,20,0004,20,000

31st March Interest Earned A/c Dr.To Statement of Profit and Loss A/c

(Interest earned on DRI transferred)

4,4004.400

31st March Debenture Redemption Reserve A/c Dr.To General Reserve A/c

(Balance in DRR transferred)

2,25,0002,25,000

Dr. realisation A/c Cr.Liabilities Amount (`) Assets Amount (`)

To Sundry Assets:Debtors 20,000Stock 15,000Furniture 8,000Plant 12,200Investment 20,000

To Kartik’s Capital A/c75,20015,000

By Sundry Liabilities:Bills Payable 2,000Creditors 16,000Bank Loan 20,000Mrs. Kartik’s Loan 15,000

By Ayush’s Capital A/c(Investment taken over)

53,000

18,000


Dr. Partners Capital Accounts Cr.Particulars Ayush Kartik Particulars Ayush Kartik

To Advertisement suspense A/cTo Realisation A/c To Cash A/c

2,00018,00036,600

3,000

56,900

By Bal B/dBy ReserveBy Realisation A/cBy Realisation A/c(Profit on realisation)

50,0004,000

2,600

35,0006,000

15,0003,900

56,600 59,900 56,600 59,900

Dr. Bank A/c Cr.Particulars Amount (`) Particulars Amount (`)

To Balance B/dTo Realisation A/c

67,80062,500

By Realisation A/c(Creditors, Bills payable and Bank loan)By Realisation A/c(Expenses on realisation)By Ayush’s Capital A/cBy Kartik’s Capital A/c

35,000

1,800

36,60056900

1,30,300 1,30,300

Value: Social value as dumping of hazardous material into river pollutes environment and affects society as a whole.

16. Dr. revaluation A/c Cr.Particulars Amount (`) Particulars Amount (`)

To Provision for tax 9,000 By InvestmentBy Loss transferred to partners capital A/c:

Pankaj 2,400Rahul 2,400Manish 1,200

3,000

6,0009,000 9,000

(Mrs. Kartik loan Taken over)To Cash A/c To CashA/cTo Partners Capital Account:(profit on realisation)

Ayush 2/5 2,600Kartik 3/5 3,900

35,000 1,800

6,500

By Bank:Debtors 19,500Stock 26,000Furniture 9,000Plant 8,000 62,500

1,33,500 1,33,500


Dr. Partners Capital Accounts Cr.Particulars Pankaj Rahul Manish Particulars Pankaj Rahul Manish

To DrawingTo Revaluation A/cTo Goodwill To Profit & Loss Suspense A/cTo Rahul’s Capital A/c To Rahul’s Loan A/cTo Rahul’s Executor’s To Cash A/cTo Balance c/d

___2,4007,200____

12,000________

_____60,000

13,5002,4007,200

15,000

_____5,000

40,100__________

___1,2003,600

___

6,000______

11,80030,000

By Balance b/dBy Investment

Fluctuation FundBy Contingency ReserveBy Pankaj’s Capital A/cBy Manish’s Capital A/cBy cash A/c

40,000

2,0003,200

______

36,400

60,000

2,0003,200

12,000 6,000

___

50,000

1,0001,600

_________

81,600 83,200 52,600 81,600 83,200 52,600

Dr. rahul’s Executor A/c Cr.Particulars Amount (`) Particulars Amount (`)

To Cash A/cTo Rahul’s Executor’s Loan A/c

8,02032,080

By Rahul’s Capital A/c 40,100

40,100 40,100

Balance SheetAs at 1st July, 2016

Liabilities Amount (`) Particulars Amount (`)

CreditorsBills PayableProfit and Loss Suspense A/cRahul’s Executor Loan A/c Provision for taxCapital A/c’s:

Pankaj 60,000Manish 30,000

24,00010,000

15,000 32,080 9,000

90,000

Land and BuildingFurnitureStockDebtorsCash(25,000 + 18,000–13500 + 36400 – 11800 – 8020)

61,00030,00021,00022,00046,080

1,80,080 1,80,080

Or

Dr. revaluation Account Cr.Particulars Amount (`) Particulars Amount (`)

Depreciation on Plants & MachineryStockRevaluation ProfitRaghu 4,720Munna 7,080

2,5003,200

11,800

PatentsCreditor Investment

5,0003,5009,000

17,500 17,500


Dr. Partners Capital Accounts Cr.Particulars Raghu Munna Akram Particulars Raghu Munna Akram

To InvestmentTo Raghu’s

Current A/cTo Bal c/d

35,000

39202,40,000

9,000

---------3,60,000

---------

---------1,50,000

By Bal b/dBy General ReserveBy Bank LoanBY Profit and Loss A/cBy Bank By Premium for G/wBy Revaluation A/cBy Munna’s Current A/c

2,50,0003,2007,000

10,000---------

4,0004,720

---------

1,50,0004,800

---------15,000

---------6,0007,080

1,86,120

------------------------------------1,50,000---------------------------

2,78,920 3,69,000 1,50,000 2,78,920 3,69,000 1,50,000

Balance SheetAs at 1st April, 2016

Particulars Amount (`) Particulars Amount (`)

CreditorsEmployees Provident FundRaghu’s Current A/c Capital Accounts:

Raghu 2,40,000Munna 3,60,000Akram 1,50,000

45,50010,000

3,920

7,50,000

Bank(9000 + 1,50,000 + 10,000)DebtorsBuildingPlant and MachineryStock PatentsInvestment By Munna’s Current A/c

1,69,000

47,0001,48,000

37,5001,56,800

50,00015,000

1,86,1208,09,420 8,09,420

17. JournalDate Particulars L.F. Dr. (`) Cr. (`)

Bank A/c Dr.To Share Application A/c

(Application money received on 2,20,000 shares @ `50 each)

1,10,00,0001,10,00,000

Share Application A/c Dr.To Share Capital A/cTo Security Premium Reserve A/cTo Bank A/c

(Application money transferred)

1,10,00,00038,00,00057,00,00015,00,000

Share Allotment A/c Dr.To Share Capital A/cTo Security Premium Reserve A/c

(Allotment money due on 2,20,000 shares @ `70 per share)

1,33,00,00038,00,00095,00,000


Or

Bank A/c Dr.To Share Allotment A/c

(Allotment money received, except on 1,000 shares)

1,32,30,0001,32,30,000

Share Capital A/c Dr.Security Premium Reserve A/c Dr.

To Share Forfeiture A/c To Share Allotment A/c

(1,000 shares forfeited due to non-payment of allotment money)

40,00050,000

20,00070,000

Share First and Final Call A/c Dr.To Share Capital A/c

(First call due on 1,89,000 shares @`60 per share)

1,13,40,0001,13,40,000

Bank A/c Dr.To Share First and Final Call A/c

(First call money received on 1,87,000 shares)

1,12,20,0001,12,20,000

Share Capital A/c Dr.To Share Forfeiture A/c To Share First and Final Call

(2,000 shares on which first call was not received were forfeited)

2,00,00080,000

1,20,000

Bank A/c Dr.Share Forfeiture A/c Dr.

To Share Capital A/c(1,400 shares re-issued at `90, fully paid up)

1,26,000 14,000

1,40,000

Share forfeiture A/c Dr. To Capital Reserve A/c

(Balance in share forfeited account transferred)

30,00030,000


Bank A/c Dr.To Share Application A/c

(Application money received on 1,02,000 shares)

30,60,00030,60,000

Share Application A/c Dr.To Share Capital A/cTo Share Allotment A/c To Bank A/c

(Application money transferred and surplus refunded)

30,60,00018,00,000 9,00,0003,60,000


PArT–B(ANALYSIS OF FINANCIAL STATEMENTS)

18. Operating Activity.19. Investing activities nil and financing activities: 47,00,000 (inflow)

Share Allotment A/c Dr.To Share Capital A/cTo Security Premium Reserve A/c

(Allotment due)

30,00,00018,00,00012,00,000

Bank A/c Dr.To Share Allotment A/c (Allotment Received)

16,75,00016,75,000

Share Capital A/c Dr.Security Premium Reserve A/c Dr.

To Share Forfeiture A/c To Share Allotment A/c

(Shares of Aarav forfeited)

6,00,000 2,00,000

3,75,0004,25,000

Share First Call A/c Dr.To Share Capital A/c

(First call Due)

10,00,00010,00,000

Bank A/c Dr.To Share First Call A/c

(First call Received)

9,20,0009,20,000

Share Final Call A/c Dr.To Share Capital A/c

(Final call Due)

10,00,00010,00,000

Bank A/c Dr.To Share Final Call A/c

(First call Received)

9,20,0009,20,000

Share Capital A/c Dr.To Share Forfeiture A/c To Share First CallTo Share Final Call

(Abhinav Shares forfeited)

4,00,0002,40,000

80,00080,000

Bank A/c Dr.Share Forfeiture A/c Dr.

To Share Capital A/c(Shares reissued)

6,40,0001,60,000

8,00,000

Share Forfeiture A/c Dr.To Capital Reserve A/c

(Share forfeited Profit transferred to Capital Reserve)

2,30,0002,30,000


20. Comparative Statement of Profit and Loss For the year ended 31st March, 2015 and 2016

Particulars 31st March 2015

31st March 2016

Absolute Change

Percentage Change %

1. Revenue from Operation2. Other income

20,00,000 4,00,000

30,00,000 4,50,000

10,00,000 50,000

5012.5

Total Revenue 24,00,000 34,50,000 10,50,000 43.753. Expense 10,00,000 18,00,000 8,00,000 80

Profit before Tax 14,00,000 16,50,000 2,50,000 17.864. Tax paid 7,00,000 8,25,000 1,25,000 17.86

Profit After Tax 7,00,000 8,25,000 1,25,000 17.86

21. a) Capital commitments are the financial commitments or future liabilities for capital expenditure in respect of which contacts have been made.

Examples: i) Arrear of dividend on cumulative preference shares and ii) Estimated amounts of contracts remaining to be executed on capital accounts and not

provided for.

b)

Items Main Heads Sub-Headi. Loan given to employee. Current Assets Short term loan and Advanceii. Capital Advances Non- Current Assets Long term loan and Advanceiii. Interest accrued but not due

on Loans.Current Liabilities Other Current Liabilities

iv. Guarantees given by Company It is a contingent liability and is disclosed in the notes to accounts

Cost of revenue from operations + Operating Expense22. Operating ratio = revenue from operation

Cost of Revenue from operation = Revenue from operation – gross profit = 22,00,000 – 8,80,000 = 13,20,000 13,20,000 + 4,40,000 Operating Ratio = × 100 22,00,000 = 80% Debt Equity ratio = Debt/Equity = 6,00,000/30,00,000 = 0.2:1


23. Cash flow statement

For the year ended 31st March, 2016 as per AS-3

Particulars Amount (`) Amount (`)

(A) Cash flow from operating ActivitiesNet profit before tax and Extraordinary itemsAdd: Depreciation on MachineryAdd: Patents written offAdd: Interest on DebenturesLess: Profit on sale of Machinery

Operating profit before working capital changesAdd: Decrease in Current Assets and increase in current

LiabilitiesDecrease in inventoriesDecrease in Trade ReceivableIncrease in Trade payablesLess: Increase in Current Assets and Decrease in current

LiabilitiesDecrease in outstanding Expenses

Cash flow from operating Activities(B) Cash flow from Investing Activities

Purchase of MachineryPurchase of Non-current InvestmentSale of Machinery

Cash used in Investing Activities

60,00080,000 4,00010,000(5,000)

1,49,000

20,00020,00095,000

(3,000)

(2,28,000) (5,000) 53,000

2,81,000

(1,80,000)(C) Cash flow from Financing Activities

Equity Dividend paid (20,000 – 6,000)Interest on DebenturesCash used in Financing ActivitiesNet increase in Cash and Cash EquivalentsAdd: Opening Cash and Cash EquivalentsClosing Cash and Cash Equivalents

(14,000)(10,000)

(24,000)77,00018,00095,000

1. Calculation of net profit before Tax and Extraordinary items:Surplus i.e. Balance in the Statement of Profit and Loss (closing) 1,00,000Less: Surplus i.e. Balance in the Statement of Profit and Loss (Opening) (60,000)Profit for the year 40,000Add: Dividend on Equity shares 20,000Net profit before Tax and Extraordinary items. 60,000

Machinery A/cParticulars Amount (`) Particulars Amount (`)

To Balance B/dTo Statement of P&LTo Bank A/c

3,00,000 5,0002,28,000

By Bank A/cBy DepreciationBy Balance c/d

53,000 80,000

4,00,0005,33,000 5,33,000

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