· web viewdr. [amount received, i.e., exercise price x no.of shares] employees stock options...

TOPIC:- DEBENTURES

Q1: Explain any two methods of redemption of debentures.Q2: Give any two important provisions of the Companies Act, 2013 relating to Debenture

Redemption Reserve (DRR).Q3: What do you understand by ‘Redemption of Debentures by Purchase from Open Market?Q4: X Ltd. had 10,00,000, 9% debentures due to be redeemed out of profits on 1st October, 2016 at

a premium of 5%. The company had a Debenture Redemption Reserve of Rs 1,50,000. Pass necessary journal entries at the time of redemption.

Q5: X Ltd. has issued Rs 8,00,000, 9% debentures due to be redeemed out of profits on 1st October. 2016 at a premium of 5%. The company had a debenture redemption reserve of Rs 4,14,000.Pass necessary journal entries at the time of redemption.

Q6: F Ltd. issued Rs 1,00,000; 15% Debentures of Rs 100 each at a premium of 5%, redeemable at apremium of 10% at the end of 4 years. The Board of Directors decided to transfer the minimum required amount to Debenture Redemption Reserve Account at the time of redemption. Pass Journal entries at the time of Redemption of Debentures.

Q7: On 1st Jan., 2007 a Public Limited Company issued 5,000, 10% Debentures of ^ 100 each at par which were repayable at a Premium of 10% on 31st December, 2011. On the date of maturity, company decided to redeem the above mentioned 10% Debentures as per the terms of issue, out of profits. The Statement of Profit and Loss shows a credit balance of ^6,00,000 on this date. The offer was accepted by all the Debentureholders and all the Debentures were redeemed.

Pass the necessary journal entries in the books of the Company only for the redemption of debentures.

Q8: AFCONs India Ltd., a banking company issued 50,00,000, 9% Debentures of Rs 20 each on April 1, 2012 redeemable on April 1, 2016. How much amount of Debenture Redemption Reserve is required before the redemption of debentures? Also record journal entries for issue and redemption of debentures.

Q9: Pass necessary Journal entries for issue and redemption of Debentures in the following cases: 10,000; 12% Debentures of Rs 50 each were issued and to be redeemed as follows:(i) Issued at par and redeemed at a premium of 10%.(ii) Issued at a premium of 10% and redeemable at a premium of 20%.

Q10: Radhika Ltd. issued 5,00,000, 7% Debentures of Rs 100 each at par on Oct. 1,2014 redeemable on Sept. 30,2016. The board of directors transferred the required amount to Debenture Redemption Reserve on March 31, 2016. Debentures were redeemed on due date. Record necessary entries for issue and redemption of debentures.

Q11: Assam Tea Ltd. issued Rs 6,00,00,000,7% Debentures divided into debentures of Rs 100 each on April 1,2013, redeemable in four equal annual instalments starting from April 1, 2016. The board of directors have decided to create Debenture Redemption Reserve of Rs 40,00,000 on March 31,2014; Rs 40,00,000 on March 31, 2015 and the balance on March 31, 2016. Record necessary journal

Q12: Suresh Ltd., on 1st April, 2009 acquired assets of the value of Rs 6,00,000 and liabilities from Rs 70,000 from P & Co., at an agreed value of Rs 5,50,000. Suresh Ltd. issued 12%

Debentures of Rs 100 each at a premium of 10% in full satisfaction of purchase consideration. The Debentures were redeemable 3 years later at a premium of 5%. Pass journal entries to record the above for redemption of debentures

Q13: Pure Water Ltd. issued 1,500, 14% Debentures of Rs 100 each on 1st April. 20 13. On 31st March 2014 the company purchased Rs 50,000 debentures at Rs 98 each from the open market for immediate cancellation. Give journal entries and show the debentures in the company’s Balance Sheet.

Q14: A company has 5,000, 12% Debentures of ?100 each outstanding. The interest is payable half yearly On 31st March and 30th September each year. It decides to redeem 800 debentures out of profits by purchase of 500 debentures in the open market at 95% and 300 debentures by draw of lots on IstOctober,20l5 Give journal entries in the books of the company.

Q15: On 1st January, 2013 a company made an issue of 1,000, 12% Debentures of Rs 1,000 each at Rs 900 per debenture. The terms of issue provided for the redemption of Rs 20,000 debentures every year commencing from 2014 either by purchase or drawings at par at the company’s option.On 31 st December, 2014 the company purchased for cancellation debentures of the face value of Rs 8,000 at Rs 950 per debenture and of 12,000 at Rs 900 per debenture. jJournalise the above transactions and show how the profit on redemption would be treated?

Q16: Bombay Cotton Ltd. has an outstanding balance of 50,00,000, 9% Debentures of Rs 100 each and sufficient funds in Debenture Redemption Reserve to meet legal requirements. The Board Directors decided to purchase 4,00,000 debentures at a price of Rs 94 for investment purpose. But after few months they took decision to sell them @ Rs 97 in the market. Record necessary journal entry to show above transactions.

Q17: Zee Ltd. had Rs 5,00,000, 10% Debentures outstanding on 1st April, 2015. On the same date fl company purchased Rs 1,00,000 own debentures at 98% as investment from the open market. Pass journal entries if the debentures purchased from open market were cancelled on 31st March “I (Ignore interest)

Q18: Pass the necessary journal entries for the issue and redemption of debentures in the for cases:(i) 15,000, 10% Debentures of ?100 each issued at 10% premium, repayable at par(ii) 6,00,000, 12% Debentures of ?500 each issued at 5% premium, repayable at l0%

Premium.Q19: Ananya Ltd.’ had an authorised capital of Rs 10,00,00,000 divided into 10,00,000 equity shares

Rs 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for t year ended 31st March, 2007 was Rs 30. The management decided to export its products to Afric countries. To meet the requirements of additional funds, the finance manager put up the following three alternate proposals. Record the necessary Journal entries in the books of the company for the Issue and Redemption of Debentures.

Q20: Shyam Ltd. converted 450,10% Debentures of Rs 100 each into Equity Shares of Rs 100 each. The 10% Debentures were redeemable at 10% premium and the Equity Shares were issued at 25% premium.Pass the necessary Journal entries for the redemption of the above mentioned Debentures in the books of Shyam Ltd.

Q21: J Ltd. converted its 1,000; 9% Debentures of Rs 10.0 each into Equity Shares of Rs 10 each. The Debentures were issued at a premium of Rs 10 per Debenture and the Equity shares were issued at a premium of Rs 2.50 per sharePass the necessary Journal entries in the books of J Ltd. for the above transactions.

Q21: A Joint Stock Company issued 15,000; 9% Debentures of ? 100 each at a premium of 5%. These

debentures were to be redeemed at a premium of 10% through the issue of shares at a premium of 25%. Journalise the issue and redemption of debentures.

Q22: Pass the necessary Journal entries in the books of Rachna Ltd. for the following transactions:(i) Converted 740; 9% Debentures of Rs 100 each into Equity Shares of Rs 10 each issued

at a premium of 25%.(ii) Issued 1,875; 8% Debentures of Rs 100 each at a premium of Rs 10 each redeemable

after three years.Q23: X Ltd. redeemed 1,000; 6% Debentures of Rs 100 each by converting them into Equity Shares of

Rs 100 each. The 6% Debentures were redeemable at a premium of 5% for which the Equity Shares were issued at a premium of 25%. Pass the necessary Journal entries for the redemption of the above mentioned Debentures in the books of X Ltd.

Q24: Ltd. issued ? 20,00,000; 8% Debentures on 1st April, 2011 at a premium of 5%. On 31st March, 2016, out of these Rs 2,00,000; 8% Debentures were redeemed by converting them into Equity Shares of Rs 100 each issued at par and Rs 5,00,000; 8% Debentures were converted into 10% Preference Shares of Rs 100 each issued at a premium of 25%.Pass the necessary Journal entries in the books of Z Ltd. for the redemption of debentures.

Q25: Pass necessary journal entries for the issue and redemption of 10,000, 12% debentures of Rs 50 each were issued and to be redeemed as follows:(i) Issued at par and redeemable at a premium of 10%.(ii) Issued at a premium of 10% and redeemable at a premium of 20%.(iii) Issued at par and 50% of the redemption to be made in cash, and the balance to be

redeemed at a premium of 20% through the issue of fresh debentures.

Q26: Pass the necessary journal entries for the following transactions in the books of Ashoka Ltd.:(i) Purchased machinery worth Rs 1,65,000. The vendor was paid by issuing 12%

Debentures Rs 100 each at a premium of 10%.(ii) Issued Rs 1,50,000, 12% Debentures as collateral security against a bank loan of Rs

1,20,000. (iii) Redeemed Rs 1,00,000, 12% Debentures at a premium of 10% by draw of lots.(iv) Paid half yearly interest on Rs 1,80,000, 12% Debentures.(v) Issued 1,000, 12% Debentures of Rs 100 each at a discount of 5%. These debentures are

repayable at a premium of 10%.Q27: On 1st January, 2015 Manoj Ltd. issued Rs 5,00,000 10%. Debentures at 6% discount repayable

after 5 years at par. The company reserved the right to redeem to the extent of Rs 50,000 every year by purchase in the open market. The interest was payable half yearly on 30th June and 31st December, the same was duly paid.

On 1st January, 2016 the company purchased Rs 50,000 debentures at a cost of Rs 48,500. Pass necessary journal entries upto 1st January, 2016 if the above purchase was made: (i) for cancellation and (ii) as investment.

Q28: On 1st April 2012, a company issued 6,000; 9% Debentures of Rs 100 each at a discount of 10% repayable at a premium of 10%. The terms of issue provided for the redemption of 1000 debentures every year commencing from 31st March, 2016, either by purchase from open Market or by draw of lots at the company’s option.

Q29: On 31st March, 2016, the company purchased for cancellation its own debentures of the face value of Rs 48,000 at Rs 95 per debenture and Rs 12,000 at Rs 90 per debenture. The expenses of purchase amounted to Rs 500. Record necessary Journal entries for redemption of 9% Debentures.

TOPIC:-EMPLOYEES STOCK OPTION PLAN (ESOP)

Employees Stock Option Plan (ESOP): In order to retain high calibre employees or to give them a ] sense of belongingness, companies may offer a choice to the whole-time directors, officers and 1 employees, the right to purchase or subscribe at a future date, the securities or equity shares offered by I the company at a p re-determined rate. It is known as Employees Stock Option Plan. Such scheme is called as Employees Stock Option Plan (ESOP) or Employees Stock Option Scheme (ESOS). Employees Stock Option Plan can be used to keep plan participants focussed on company

I performance and share price appreciation.There are some specific terms associated with ESOP which are explained as under:

Vesting Period: The time duration between the granting date and the date by which all the specified vesting conditions for ESOP have been fulfilled.

Vesting Date: The date on or after which employees are entitled to receive the shares.

Grant Date: The date at which the company and its employees agree to the terms and conditions of ESOP.

Exercise Period: The time duration within which employee should exercise his right to apply ^ I shares, against the option vested in him under ESOP.

Exercise Price: The price at which shares are granted by the company to its employees for exercising the option under ESOP

Employees Compensation Expenses Account: This account denotes proportionate expense or loss for the company which arises due to the difference between the market price and exercise price (issuePrice) of the shares granted under ESOP. At the year end, this account is transferred to Statement of profit and Loss and is shown under head ‘Employees Benefit Expenses’

Employees Stock Option Outstanding Account: This account represents the total expense or loss due to options granted under ESOP. It is shown in the Balance Sheet under head ‘Shareholders’ fund’ and sub-head ‘Reserves and Surplus’.

Journal EntriesI. At the time of recording the expense :

Employees Compensation Expense A/c Dr.To Employees Stock Option Outstanding A/c

(Being the proportionate expenses recognised in respect of ESOP)Note: This entry will be passed for each year of vesting period.II. At the time of exercising the options by the employees:

(a) When the options are exercised by all the employees

Bank A/c Dr. [Amount received, i.e., Exercise Price X

No.of Shares]

Employees Stock Options Outstanding A/c Dr. [Amount credited to Employees Stock

Option Outstanding Account,i.e, No.of Shares X (Market Price - Exercise Price)]

To Share Capital A/c [Nominal value of shares]To Securities Premium Reserve A/c [With the balance amount, i.e., No.

of shares x Market Price -Nominal

value)](Being the option exercised bv the employees)

(b) When the options are not exercised by all the employees and the options get expired.

Bank A/c Dr. [Amount received, i.e., Exercise Price * No.of

SharesEmployees Stock Option Outstanding A/c Dr. [Amount credited to Employees Stock

Option Outstanding Account, i.e., No. of Shares (Market Price - Exercise Price)]

To Share Capital A/c [Nominal Value of SharesTo Securities Premium Reserve A/c [Amount related to options that

have been exercised, i.e., No.of Shares x (Market Price - Nominal Value)]

To General Reserve A/c Amount related to options that have not been exercised, i.e., No.of shares x (Market Price - Exercise Price)]

(Being the option exercised bv the employees)

Right Issue of Shares: According to Section 62 of the Companies Act, 2013 the existing shareholders have a right to subscribe to the fresh issue of capital in their existing proportion or to reject the offer or sell their rights. It is known as ‘Right Issue of Shares’. The right issue share price may be above the previous issue price, this difference will be known as value of right. In other words:Value of right = Market price of a share - Average price of a share.

Buy-Back of Shares: When a company purchases its own shares from the market, it is called ‘buy-back of shares’. A Company may buy-back its own shares from out of the following sources:1. Its free reserves;2. the securities premium reserve account [Section 52(2) of the Companies Act, 2013];3. The proceeds of any shares or other specified securities.

SAMPLE PAPER

Sub: - AccountancyClass:- XII

Time allowed: 3 hours M M: 80General Instructions:

(i) This question paper contains Two parts A& B.(ii) Both the parts are compulsory for all.(iii) All parts of questions should be attempted at one place.(iv) Marks are given at the end of each question.

Part - APartnership, Share Capital and Debentures

Q1 Maximum number of partners in case of a banking business can be(i) 20 (ii) 10 (iii) 7 (iv) 50

(1)Q2 Which one is correct in the following options, when there is no partnership deed?

(i) No interest on loan will be provided to partner(ii) Interest on drawings will be charged @6% p.a.(iii) Interest on Capital will be 6% p.a.(iv) Profit sharing ratio will be equal

(1)Q3 What is the nature of Revaluation Account?

(i) Personal Account(ii) Real Account(iii) Nominal Account(iv) Statement

(1)Q4 What do you mean by 'Executor’?Q5 Why DRR is not necessary in case of infrastructure firms?

(1)Q6 Krishna ,Sandeep and Karim are partners sharing profit in the ratio of 3:2:1.Their fixed capitals

are: Krishna Rs 1,20,000,Sandeep Rs 90,000 and Karim Rs 60,000 .For the year 2013-14.Interest was credited to them @6% p.a instead of 5% p.a .Record adjustment entry.

(1)Q7 Record necessary journal entries for the issue of debentures in each of the following cases:

(i) 27,000,7% debentures of Rs 100 each issued at par redeemable at par.(ii) 25,000 7% debentures of Rs 100 each issued at par redeemable at 4% premium.(iii) 35,000 7% debentures of Rs 100 each issued at a discount of 4% and redeemable at a

premium of 5%.(3)

Q8 Jain Ltd .purchased Building for Rs 10,00,000 from Gupta Ltd.10% of the payable amount was paid by a cheque drawn in favor of Gupta Ltd. The balance was paid by issue of Equity shares of Rs 10 each at a discount of 10%. Pass necessary Journal Entries in the books of Jain Ltd.

(3)Q9 On 1st January 2013,Y Ltd has 1000 12% Debentures of Rs 100 each issued at a discount of 5%

redeemable at par. The DRR balances on this date is 30,000. They are due for redemption at the end of the year. Pass the necessary Journal entries for redemption of Debentures in lump sum.

(3)Q10 L&M were partners in a firm sharing in the ratio of 3:2.Their fixed capitals on 1.4.2010 were L

Rs 1,00,000 and M Rs 2,00,000.They agreed to allow interest on capital @ 12% per annum and to charge on drawing @ 15% per annum. The firm earned a profit, before all above adjustments of Rs 30,000 and Rs 5,000 respectively. Showing your calculations, clearly prepare Profit and

Loss Appropriation A/c of L&M .The interest on capital will be allowed even if the firm incurs a loss. (3)

Q11 (a) A,B and C are sharing profit in the ratio 3:2:1 ,C dies on 30 June ,2011.Accounts are closed on 31st March every year. Sales for the year ending 31st March 2011 amounted to Rs 90,00,000.Sales form 1st April 2013 to 30 June 2013 amounted to Rs 36,00,000.The profit for the year ending 31st March 2013 amounted to Rs 4,50,000.Calculate the deceased partner’s share in the current year’s profit.(b) There is no earning members in C’s family and hence it is agreed to take C’s daughter into partnership with 1/10th share of profit. You are required to identify the virtues in making such decision.

(4)

Q12 Three charted accountants A, B and C form a partnership firm , profit sharing ratio will be 3:2:1 subject to the following:(i) C’s Share of profit is guaranteed to be Rs 15,000 p.a. minimum.(ii) B gives the guarantee to the effect that gross fees earned by him for the firm shall be

equal to the the average gross fees of preceding five years, which was Rs 25000.The net profit for the year ended March 31st , 2013 is 75,000.The gross fees earned by B was Rs 16,000.

Show the Profit and Loss Appropriation Account giving the above effects. (4)Q13 On dissolution of a partnership firm of P,Qand R; journalise the following:

(i) A loan of Rs 50,000 advanced by P ,was paid off along with the interest of Rs 1,000.(ii) Profit &Loss A/C balance of Rs 30,000 appears on the asset side of B/S.(iii) Creditors of Rs 50,000 accepted Rs 45,000 in full settlement.(iv) Expenses on Realisation amounting to Rs 1,500 was paid by R(v) A bill of Rs5,000 received from Mohan, was discounted from the bank; is dishonored

due to insolvency of Mohan. Only 50% was received from his estate.(vi) An unrecorded asset worth Rs 10,000 was taken by Q for Rs 7,000.

(6)Q14 Pass necessary Journal Entries for the following transactions:

(i) X Ltd purchased its 2000 own debentures of the face value 10,000 from the open market for immediate cancellation at Rs 95.

(ii) S Ltd purchased its 8000 own debentures of the face value Rs 200 from the open market for immediate cancellation at Rs 185.

(iii) Z Ltd purchased its 3000 own debentures of the face value Rs 500 from the open market for immediate cancellation at Rs 275.

(6)Q15 Nikhil and Piyush are partners sharing Profit and loss in the ratio of 3:1. On March 31st 2012

their Balance Sheet was as follows:Liabilities Amount. Assets AmountCapital Cash 10,200Nikhil 30,000 Bills Receivable 3,000Piyush 16,200 Stock 20,000Creditors 21,000 Debtors 10,000

Bills Payable 20,000 Machinery 30,000General Reserve 4,000 Investment 15,000Investment Fluctuation Fund 5,000 Profit &loss A/c 8,000

96,200 96,200

They decided to admit Jatin into the partnership on the following terms(i) Machinery and stock is to be depreciated by 10%(ii) Outstanding rent is Rs 2,500(iii) Investment to be reduced by 7,500.(iv) Jatin is to bring Rs 5,000 as Goodwill and Rs 10,000 as capital for a 1/5th share.(v) Capitals of partners be made proportionate taking Jatin’s capital as base.

Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet of the new firm.OR

Following is the balance Sheet X , Y, and Z as on 31st March 2004 Who were sharing profit and loss in the ratio of their Capitals.

Liabilities Rs Assets RsCreditors 40,000 Cash 36,000Bills Payable 12,000 Debtors 50,000Provision for doubtful debt 6,000 Stock 36,000General Reserve 24,000 Furniture 60,000Capital Account Machinery 1,00,000X 80,000Y 80,000Z 40,000

2,82,000 2,82,000

Y retires on the above date on the following terms:(i) Provision for doubtful debts raised to Rs 8,000.(ii) Outstanding claim for damages of Rs 2,200 is to be provided.(iii) Creditors be reduced by Rs 12,000(iv) Goodwill of the firm is valued at Rs 40,000.(vii) After the retirement of Y the entire capital of the firm was fixed at Rs 1,80,000 and

partners decided to maintain it in their new profit sharing ratio of 3:2. Prepare Revaluation A/c, Capital A/c and Balance sheet of X and Z.

(6)Q16 Geeta Ltd issued 50,000 shares of Rs 10 each payable Rs 3 on application ,Rs 4 on allotment Rs

2 on first call and balance on final call. In all 60,000 application were received. Allotment was done as follows:(i) To applicants for 10,000 shares-in full(ii) To applicants for 20,000 shares-15,000 shares(iii) To applicants for 30,000 shares- 25,000 shares

Every share holder paid the money as and when due , except Sohan who applied for 2000 shares; out of the group applying for 20,000 shares did not paid allotment, first and final call money. His shares were forfeited .1000 of the forfeited shares were reissued for Rs.8 per share as fully paid up .Give Journal Entries.The directors made full allotment to some and prorata allotment to the rest .Which values are highlighted through it?

OR

K limited has been registered with an authorized capital of Rs. 2,00,000 divided into 2,000 shares of Rs.100 each of which 1,000 shares were offered for public subscription at a premium of Rs.5 share, payable as under :On application10On allotment 25 (including premium)On first call 40On final call balance

Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright, the rest of applications were allotted 1,000 shares on pro-rata basis. Excess Application money was transferred to allotment, All the money were duly received except from Sundar, holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at Rs.60 per share, Rs 70 paid up. Final call has not been made. Pass necessary Journal entries in the books of K limited. By rejecting 300 shares, which values are ignored by the management? (6)

PART BANALYSIS OF FINANCIAL STATEMENT

Q17. State one transactions which results in flow of cash.(i) Cash withdrawn from bank(ii) Issue of bonus shares(iii) Purchase of machinery on credit(iv) Purchase of stock for cash

(1)Q18 X Ltd has a Debt equity ratio at 3:1; the management wants to maintain it at 1:1.What are the

two choices to do so.(i) Redemption of debentures(ii) Issue of bonus shares(iii) Declaring dividends(iv) Buy- back of shares

(1)Q19 Payment of dividend by a financing company will come under which of the following activity:

(i) Operating activity(ii) Financing Activity(iii) Investing activity(iv) None of these

(1)

Q20 Prepare a Comparative Income Statement from the following2012 2013

Gross Sales 1,20,200 1,35,800Sales Return 20,200 5,800Cost of goods sold 40% of net sales 50% of net saleOperating Expenses 15,000 14,000Income Tax 50% 50%

(4)

Q21 a) Current Ratio of a company is 4:3, working capital is Rs 80000.Calculate the amount of current assets and current liabilities b) Calculate Proprietary Ratio from the following

Closing Stock 60,0009% Preference Shares 4,00,000Security Premium 30,000General Reserve 10,000Other Current Assets 1,10,000Current Liabilities 1,80,000Fixed Assets 3,50,000Operating Expenses 25,000

(4)Q22 a) Mention any two Contingent Liabilities of a Company.

b) List two items shown under non-current liabilities of a company.(4)

Q23 From the following Balance Sheet of Sheetal Ltd; prepare the Cash Flow Statement:Particulars Note no 31.3.2012(Rs) 31.3.2013(Rs)1.Equity and Liabilitiesa. Shareholder’s FundEquity Share capital 5,00,000 7,00,000Reserves and Surplus b. Non-current liabilities

2,00,000 3,50,000

Long term Borrowings c. Current Liabilities

1,00,000 50,000

Trade payables 55,000 52,000Short term Provisions 1 80,000 1,20,000

Total 9,35,000 12,72,0002.Assetsa.Non-Current AssetsFixed assetsTangible assets: building 5,00,000 5,00,000Intangible assets :Patents 1,00,000 95,000Non current Investments 1,00,000b. Current AssetsInventories 55,000 1,30,000Trade receivables 80,000 1,47,000Cash and cash equivalents 2,00,000 3,00,000

Total 9,35,000 12,72,000

Particulars 31.3.2012(Rs) 31.32013(Rs)Provision for Tax 30,000 50,000Proposed Dividend 50,000 70,000

Total 80,000 1,20,000Additional Information:-

During the year a Building costing Rs 1,00,000 was purchased. Loss on sale of building is Rs 12,000.Depreciation charged on the building was Rs 18,000.

(6)ACCOUNTANCY

Sub: Accountancy Class: XIITime allowed: 3 hours Maximum Marks: 80General Instructions:



Q1 Is a sleeping partner liable to the acts of other partners?(a) No(b) Yes(c) Sometimes(d) Only when there is loss

(1)Q2 Goodwill is

(a) Fictitious Asset(b) Current Asset(c) Liquid Asset(d) Intangible Asset

(1)Q3 Vasu and Kumar are partners in a firm sharing profits in the ratio of 3:2. Mrs. Vasu has given a

loan of Rs.20,000 to the firm and the firm also obtained a loan of Rs.10,000 from Kumar. The firm was dissolved and its assets were realised for Rs.25,000. State the order of payment of Mrs. Vasu’s Loan and Kumar’s Loan with reason, if there were no creditors of firm.

(1)Q4 What is the name given to that part of capital of a company which is called up only on Winding up?

(1)Q5 Define Secured Debentures.

(1)Q6 X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. The following was

the Balance Sheet of the firm as on 31st March, 2010 :Liabilities Amount Assets AmountCapitals: Sundry Assets 40,000X 30,000Y 10,000

40,000 40,000The profits Rs.15,000 for the year ended 31.03.2010 were divided between the partners

without allowing interest on capital @12% p.a. and salary to X Rs.500 per month. During the year, X withdrew Rs.5,000 and Y Rs.10,000.Prepare the necessary adjustment entry and show your working clearly.(3)

Q7 Bhanu Limited obtained a loan of Rs.4,00,000 from HDFC Bank. The company issued 5,000, 9% Debentures of Rs.100 each as a collateral security for the same. Show how these items will be presented in the Balance Sheet of Company.

(3)Q8 VS Limited has 10,000, 12% Debentures of Rs.100 each due for redemption on 31st March,

2011. Assuming that Debentures are to be redeemed out of profit fully and DRR has a balance of Rs.3,60,000 on that date, give entries at the time of redemption of debentures.

(3)

Q9 X, Y and Z were partners in a firm. Their capitals on 1.4.2012 were : X Rs.2,00,000; Y Rs.2,50,000 and Z Rs.3,00,000. The partnership deed provided for the following:(i) They will share profits in the ratio of 2:3:3.(ii) X will be allowed a salary of Rs. 12,000 per annum.(iii) Interest on capital will be allowed @12% p.a.During the year X withdrew Rs.28,000; Y Rs.30,000 and Z Rs.18,000. For the year ended 31.3.2013 the firm earned a profit of Rs.5,00,000.Prepare Profit & Loss Appropriation A/c and Partners Capital A/cs.

(4)Q10 Sunil Limited purchased furniture for Rs.99,000 from Kumar Limited. The payment to Kumar

Limited was made by issued of Equity Shares of Rs.10 each.Give necessary entries when:(i) Shares were issued at 10% Premium(ii) Shares were issued at 10% discount

(4)

Q11 The Balance Sheet of Sindhu, Rahul and Kamlesh, who were sharing profits in the ratio of 3:3:4 respectively, as on 31st March 2012 was as follows:

Liabilities Amount Assets Amount

General Reserve 10,000 Cash 32,000Bills Payable 20,000 Stock 88,000Loan 24,000 Investments 94,000Capitals: Land and Buildings 1,20,000Sindhu 1,20,000 Sindhu’s Loan 20,000Rahul 1,00,000Kamlesh 80,000 3,00,000

3,54,000 3,54,000

Sindhu died on 31st July 2012. The partnership deed provided for the following on the death of a partner:(i) Goodwill of the firm be valued at two year’s purchase of average profits for the last

three years which were Rs.80,000.(ii) Sindhu’s share of profit till the date of his death was to be calculated on the basis of

sales. Sales for the year ended 31st March 2012 amounted to Rs.8,00,000 and that from 1st April to 31st July 2012 Rs.3,00,000. The profit for the year ended 31st March 2012 was Rs.2,00,000.

(iii) Interest on capital was to be provided @6% p.a.(iv) According to Sindhu’s will, the executors should donate his share to ‘Matri Chaya-an

orphanage for girls’.Prepare Sindhu’s Capital A/c to be rendered to his executor. Also identify the value

being highlighted in the question.(6)

Q12 On 1st April, 2012, Vishwas Ltd. was formed with an authorised capital of Rs.10,00,000 divided into 1,00,000 equity shares of Rs.10 each. The company issued prospectus inviting applications for 90,000 equity shares. The company received applications for 85,000 equity shares. During the first year, Rs.8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the first call of Rs 2 per share. Shyam’s shares were forfeited after the first call and later on 1,500 of the forfeited shares were re-issued at Rs. 6 per share, Rs.8 called up.Show the following:

Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956. Also prepare ‘Notes to Accounts’ for the same.

(4)Q13 Ram and Mohan are partners in a firm. They admitted Rakhi as a partner without capital for

1/3rd share in profits of the firm. She is blind by birth but having good management qualities. The new partnership agreement provides for the following:(i) 10% of the trading profit will be donated to Prime Minister’s Relief Fund.(ii) 5% of the trading profit will be donated to the National Blind Relief Fund.(iii) Products will be sold at a discount of 15% on Maximum Retail price to the people living

below poverty line.(iv) New retail shops will be opened in the Naxal affected areas of the country.(v) New jobs of salespersons will be reserved for the girls belonging to Scheduled Castes

andScheduled Tribes.The trading profit of the firm for the year ended 31.3.2012 was Rs.10,00,000.Identify any four values considered by Ram, Mohan and Rakhi while preparing the new partnership deed and prepare the ‘Profit & Loss Appropriation Account’ of Ram, Mohan and Rakhi for the year ended 31.3.2012.

(6)

Q14 Prashant and Rajesh were partners in a firm sharing profits in the ratio of 3 : 2. In spite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Parshant was deputed to realise the assets and to pay the liabilities. He was paid Rs.1,000 as commission for his services. The financial position of the firm on 31st March 2012 was as follows:

BALANCE SHEETFor the year ended 31st March 2012

Liabilities Amount Assets AmountCreditors 80,000 Building 1,20,000Mrs. Prashant’s Loan 40,000 Investments 30,600Rajesh’s Loan 24,000 Debtors 34,000Investment Fluctuation Fund 8,000 Less : Provision 4,000 30,000Capitals: Bills Receivable 37,400Prashant 42,000 Cash 6,000Rajesh 42,000

84,000Profit and Loss A/c 8,000Goodwill 4,000

2,36,000 2,36,000Following was agreed upon:(i) Prashant agreed to pay off his wife’s loan.(ii) Debtors realized Rs.24,000.(iii) Rajesh took away all investments at Rs.27,000.(iv) Building realized Rs.1,52,000.(v) Creditors were payable after 2 months. They were paid immediately at 10% discount.(vi) Bills receivable were settled at a loss of Rs.1,400.(vii) Realisation expenses amounted to Rs.2,500.Prepare Realisation A/c, Partners Capital A/c and Cash A/c and identify the value being

conveyed.

(6)

Q15 (a) X Ltd. forfeited 200 shares of Rs.100 each, Rs.70 called up, on which the shareholders had paid application and allotment money of Rs.50 per share. Out of these, 150 shares were re-issued to Naresh as Rs.70 paid up for Rs.80 per share.(b) Y Ltd. forfeited 180 shares of Rs.10 each, Rs.8 called up, issued at a premium of Rs.2 per share to R for non-payment of allotment money of Rs.5 per share (including premium). Out of these, 160 shares were re-issued to Sanjay as Rs.8 called up for Rs.10 per share fully paid up.(c) Z Ltd. forfeited 30 shares of Rs.100 each issued at a discount of Rs.10 per share for non-payment offirst and final call money of Rs.30 per share. Out of these, 20 shares were re-issued at Rs.30 per share fully paid up.

(8)Q16 The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2 as at March

31, 2007 :

X retired on March 31, 2007 and Y and Z decided to share profits in future in the ratio of 2:3 respectively. The other terms on retirement were as follows :(i) Goodwill of the firm is to be valued at Rs. 80,000.(ii) Fixed Assets are to be depreciated to Rs. 57,500(iii) Make a provision for doubtful debts at 5% on debtors(iv) A liability for claim, included in creditors for Rs. 10,000, is settled at Rs. 8000.(v) The amount to be paid to X by Y and Z in such a way that their Capitals are

proportionate to their profit sharing ratio and leave a balance of Rs. 15,000 in the Bank Account. Prepare Profit and Loss Adjustment Account and Partners. Capital Accounts.

(8)

Part - BFinancial Statement Analysis

Q17 State whether ‘Conversion of debentures into Equity Shares by a Financing Company will result into inflow, outflow or no flow of cash?

(1)

Q18 State how qualitative aspects are ignored in financial statement analysis.(1)

Q19 Why is Cash Flow Statement Prepared?(1)

Q20 List the items which are shown under the heading. ‘Reserves and Surplus’ in the Balance Sheet of a company as per provisions of Schedule VI, of the Companies Act 1956.

(3)


Creditors 50,000 Cash at Bank 40,000Employees. Provident Sundry Debtors 1,00,000Fund 10,000 Stock 80,000Profit & Loss A/c 85,000 Fixed Assets 60,000Capital A/cs :X 40,000Y 62,000Z 33,000 1,35,000

2,80,000 2,80,000

Q21 From the following Statement of Profit and Loss of VK Ltd., for the years ended 31st March 2011 and 2012, prepare a Comparative Statement of Profit and Loss. (4)

Particulars Note No. 2011 2012Revenue from Operations 6,00,000 7,00,000Other Income 50,000 80,000Purchase of Stock-in-Trade 1,80,000 2,00,000Employees Benefits Expenses 90,000 1,00,000Other Expenses 80,000 80,000Tax Rate 30% 40%

Q22. Calculate return on investment ratio from the following:Equity Share Capital 16,00,000 Preference Share Capital 4,00,000 General Reserve 7,56,000 10% debentures 16,00,000 Current liabilities 4,00,000 Discount on issue of shares 2,000. Net profit (after interest on debentures but before income tax) 3,20,000

(4)Q23. Calculate cash flow from operating activities with the following information of Vijay Limited:

Particulars 2012 2013Statement of Profit & Loss 50,000 30,000Bills Receivable 26,000 17,000Rent payable 1,600 4,000Prepaid insurance 2,800 2,400Stock 22,000 39,000Creditors 20,000 10,000

Vijay Limited had provided for the following items while arriving at the profit for the year :(i) Depreciation on fixed assets Rs.24,000.(ii) Writing off preliminary expenses Rs.6,000.(iii) Loss on sale of furniture Rs.2,000.(iv) Profit on sale of Machinery Rs.4,000.

(6)

SAMPLE PAPER

Sub: - AccountancyClass:- XII

Time allowed: 3 hours M M: 80General Instructions:


PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES

Q1. Any change in the relationship of existing partners which results in an end of the existing agreement

and enforces making of a new agreement is called(a) Revaluation of partnership.(b) Reconstitution of partnership.

(c) Realization of partnership.(d) None of the above. (1)

Q2. Karan, Nakul and Asha were partners in a firm sharing profits and losses in the ratio 3:2:1. At the time

of admission of a partner, the goodwill of the firm was valued at `2,00,000. The accountant of the firm

passed the entry in the books of accounts and thereafter showed goodwill at `2,00,000 as an asset in the Balance Sheet. Was he correct in doing so? Why?

(1)Q3. Anu, Bina and Charan are partners. The firm had given a loan of `20,000 to Bina. They decided to

dissolve the firm. In the event of dissolution, the loan will be settled by:(a) Transferring it to debit side of Realization account.(b) Transferring it to credit side of Realization account.(c) Transferring it to debit side of Bina’s capital account.(d) Bina paying Anu and Charan privately. (1)

Q4. Differentiate between ‘Capital Reserve’ and ‘Reserve Capital’. (1)

Q5. Metacaf Ltd. issued 50,000 shares of Rs 100 each payable Rs 20 on application (on 1st May 2012); Rs 30 on allotment (on 1st January 2013); Rs 20 on first call (on 1st July 2013) and the balance on final call (on 1st February 2014). Shankar, a shareholder holding 5,000 shares did not pay the first call on the due date.The second call was made and Shankar paid the first call amount along with the second call. All sums due were received. Total amount received on 1st February was:(a) Rs 15,00,000(b) Rs 16,00,000(c) Rs 10,00,000(d) Rs 11,00,000(1)

Q6. Abha and Beena were partners sharing profits and losses in the ratio of 3:2. On April 1st 2013, they

decided to admit Chanda for 1/5th share in the profits. They had a reserve of Rs 25,000 which they wanted to show in their new balance sheet. Chanda agreed and the necessary adjustments were made in the books. On October 1st 2013, Abha met with an accident and died. Beena and Chanda decided to admit Abha’s daughter Fiza in their partnership, who agreed to bring Rs 2,00,000 as capital. Calculate Abha’s share in the reserve on the date of her death.

(1)Q7. State any three purposes for which securities premium can be utilized.

(3)Q8. Ankur and Bobby were into the business of providing software solutions in India. They were sharing

profits and losses in the ratio 3:2. They admitted Rohit for a 1/5 share in the firm. Rohit, an alumni of IIT, Chennai would help them to expand their business to various South African countries where he had been working earlier. Rohit is guaranteed a minimum profit of Rs 2,00,000 for the year. Any deficiency in Rohit’s share is to be borne by Ankur and Bobby in the ratio 4:1. Losses for the year were Rs 10,00,000. Pass the necessary journal entries

(3)Q9. Newbie Ltd. was registered with an authorized capital of Rs 5,00,000 divided into 50,000 equity

shares of Rs10 each. Since the economy was in robust shape, the company decided to offer to the public for subscription 30,000 equity shares of Rs10 each at a premium of Rs 20 per share.

Applications for 28,000 shares were received and allotment was made to all the applicants. All calls were made and duly received except the final call of Rs 2 per share on 200 shares. Show the ‘Share Capital’ in the Balance Sheet of Newbie Ltd.as per Schedule VI of the Companies Act 1956. Also prepare Notes to Accounts for the same.

(3)Q10. Drumbeats Ltd. had a prosperous shoe business. They were manufacturing shoes in India and

exporting to Italy. Being a socially aware organization, they wanted to pay back to the society. They

decided to not only supply free shoes to 50 orphanages in various parts of the country but also give

employment to children from those orphanages who were above 18 years of age. In order to meet the

fund requirements, they decided to raise 50,000 equity shares of Rs 50 each and 40,000 9% debentures of Rs40 each. Pass the necessary journal entries for issue of shares and debentures. Also identify one value which the company wants to communicate to the society.

(3)Q11. Following is the Balance Sheet of Punita, Rashi and Seema who are sharing profits in the ratio 2:1:2 as

on 31st March 2013.

Punita died on 30th September 2013. She had withdrawn Rs 44,000 from her capital on July 1, 2013.

According to the partnership agreement, she was entitled to interest on capital @8% p.a. Her share of

profit till the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was to be calculated on the basis of three times the average profits of the last four years. The profits for the years ended 2009-10, 2010-11 and 2011-12 were Rs 30,000, Rs 70,000 and Rs 80,000 respectively. Prepare Punita’s account to be rendered to her executors.

(4)Q12: Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio

2:1 with capitals `5,00,000 and `4,00,000 respectively. Kanika withdrew the following amounts during

the year to pay the hostel expenses of her son.1st April 10,0001st June 9,0001st Nov. 14,0001st Dec. 5,000Gautam withdrew Rs 15,000 on the first day of April, July, October and January to pay rent for

the

accommodation of his family. He also paid Rs 20,000 per month as rent for the office of partnership which was in a nearby shopping complex. Calculate interest on Drawings @6% p.a.

(4)Q13. (a) A firm earned profits of Rs 80,000, Rs 1,00,000, Rs 1,20,000 and Rs 1,80,000 during 2010-

11, 2011-12, 2012-13 and 2013-14 respectively. The firm has capital investment of Rs 5,00,000. A fair rate of return on investment is 15% p.a. Calculate goodwill of the firm based on three years’ purchase of average super profits of last four years.(b) Kabir and Farid are partners sharing profits and losses in the ratio of 7:3. Kabir surrenders 2/10th from his share and Farid surrenders 1/10th from his share in favor of Jyoti, a new partner. Calculate new profit sharing ratio and sacrificing ratio.

(6)Q14. (a) Sunrise Company Ltd. has an equity share capital of Rs 10,00,000. The company earns a return on

investment of 15% on its capital. The company needed funds for diversification. The finance manager hadthe following options: (i) Borrow Rs 5,00,000 @15% p.a. from a bank payable in four equal

quarterlyinstallments starting from the end of the fifth year (ii) Issue Rs 5,00,000, 9% Debentures of Rs. 100 each redeemable at a premium of 10% after five years. To increase the return to the shareholders, thecompany opted for option (ii). Pass the necessary journal entries for issue of debentures.(b) Walter Ltd. issued Rs 6,00,000 8% Debentures of Rs 100 each redeemable after 3 years either by draw of lots or by purchase in the open market. At the end of three years, finding the market price of debentures at Rs 95 per debenture, it purchased all its debentures for immediate cancellation. Pass necessary journal entries for cancellation of debentures assuming the company has sufficient balance in Debenture Redemption Reserve.

(6)Q15. Following is the Balance sheet of Karan and Sandeep who share profits and losses equally as

on 31st march

The firm was dissolved on the above date.1. Karan agreed to take over 50% of the stock at 10% less on its book value, the remaining stock was sold at a gain of 15%. Furniture and machinery realized for Rs 30,000 and Rs 50,000 respectively.2. There was unrecorded Investments which was sold for Rs 25,000.3. Debtors realized Rs 31,500 (with interest) and Rs 1200 was recovered for bad debts written off last year.4. There was an outstanding bill for repairs which had to be paid Rs 2000.Prepare necessary Ledger accounts to close the books of the firm.

Q16. A and B are partners in a firm sharing profits and losses in the ratio 3:1. They admit C for a ¼ share on

31st March 2014 when their Balance Sheet was as follows:

The following adjustments were agreed upon:(a) C brings in Rs 16,000 as goodwill and proportionate capital.(b) Bad debts amounted to Rs 3,000.(c) Market value of investment is Rs 4,500.(d) Liability on account of workmen’s compensation reserve amounted to Rs 2,000.

Prepare Revaluation A/c and Partner’s Capital A/cs.OR

X, Y and Z are partners in a firm sharing profits in proportion of 1/2, 1/6 and 1/3 respectively. The Balance Sheet as on April 1, 2014 was as follows:

Z retires from the business and the partners agree that:(a) Machinery is to be depreciated by 10%.(b) Provision for bad debts is to be increased to Rs 1,500.(c) Furniture was taken over by Z for Rs 14,000.(d) Goodwill is valued at Rs 21,000 on Z’s retirement.(e) The continuing partners’ have decided to adjust their capitals in their new profit sharing ratio after retirement of Z. Surplus or deficit if any, in their capital accounts will be adjusted throughtheir current accounts.Prepare Revaluation A/c and Partners’ Capital A/c’s. (8)

Q17. Amrit Ltd. issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as Rs 3 on application, Rs 4 on allotment (including premium), Rs 2 on first call and the remaining on second call. Applications were received for 75,000 shares and a pro-rata allotment was made to all the applicants.All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for `9,600. Final call was not made. Pass necessary journal entries.

ORVelco Ltd. issued 30,000 shares of Rs 10 each at a discount of Rs 1 per share payable as Rs 3 on application, Rs 2 on allotment, Rs 2 on first Call and Rs 2 on second call.Applications were received for 40,000 shares and a pro-rata allotment was made to all the

applicants.All money due were received except allotment and first call from Mohit who had applied for

2,000shares. His shares were forfeited after first call. Subsequently, the second call was duly made

and dulyreceived. Thereafter, the forfeited shares were reissued for Rs 9 fully paid. Pass the necessary

journalentries(8)

PART B: ANALYSIS OF FINANCIAL STATEMENTSQ18. Cash deposit with the bank with a maturity date after two months belongs to which of the following

while preparing cash flow statement:(a) Investing activities(b) Financing activities(c) Cash and Cash equivalents(d) Operating activities. (1)

Q19. Finserve Ltd is carrying on a Mutual Fund business. It invested Rs 30,00,000 in shares and Rs 15,00,000 in debentures of various companies during the year. It received Rs 3,00,000 as dividend and interest. Find out cash flows from investing activities.

(1)Q20. (a) Name the sub heads under the head ‘Current Liabilities’ in the Equity and Liabilities part of the

Balance Sheet as per Schedule VI of the Companies Act 1956.(b) State any two objectives of Financial Statements Analysis. (4)

Q21. (a) From the following details, calculate Opening inventory: Closing inventory Rs 60,000; Total Revenue from operations Rs 5,00,000 (including cash revenue from operations Rs 1,00,000); Total purchases Rs 3,00,000 (including credit purchases Rs 60,000). Goods are sold at a profit of 25% on cost.(b) Current Assets of a company are Rs 17,00,000. Its current ratio is 2.5 and liquid ratio is 0.95.Calculate Current Liabilities and Inventory. (4)

Q22. Nimani Ltd. is into the business of back office operations. Honesty and hard work are the two pillars

on which the business has been built. It has a good turnover and profits. Encouraged by huge profits, it

decided to give the workers bonus equal to two months salary. Following is the Comparative Statement of Profit and Loss of Nimani Ltd. for the years ended 31st March 2013 and 2014.(a) Calculate Net Profit ratio for the years ending 31st March 2013 and 2014.(b) Identify any two values which Nimani Ltd. wants to communicate to the society.

(4)

23. Following are the Balance Sheets of Krishna Ltd. as on 31st March 2013 and 2014:Particulars Note No. 2013-14 (Rs) 2012-

13(Rs)EQUITY AND LIABILITIES(1) Shareholders Funds(a) Share capital(b) Reserves and Surplus(2) Non Current LiabilitiesLong term borrowings(3) Current LiabilitiesTrade PayablesShort term Provisions

1

2

14,00,0005,00,000

5,00,000

1,00,00080,000

10,00,0004,00,000

1,40,000

60,00060,000

Total 25,80,000 16,60,000ASSETS(1) Non Current Assets(a) Fixed assets(i) Tangible assets(ii) Intangible Assets(2) Current Assets(a) Inventories(b) Trade Receivables(b) Cash and Cash Equivalents

34

16,00,0001,40,000

2,50,0005,00,00090,000

9,00,0002,00,000

2,00,0003,00,00060,000

Total 25,80,000 16,60,000Notes to Accounts:S.No Particulars As on 31.3.2014

(Rs)As on 31.3.2013 (Rs)

1.

2.

3.

4.

Reserves and SurplusSurplus (i.e. balance inStatement of Profit and Loss)

Short Term provisionsProvision for taxTangible assetsMachineryLess Accumulated depreciation

Intangible AssetsGoodwill

5,00,000

80,000

17,60,000(1,60,000)

1,40,000

4,00,000

60,000

10,00,000(1,00,000)

2,00,000

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

(i) Tax paid during the year amounted to Rs 70,000. (6)

Question Paper DesignAccountancy (Code No. 055)

Class XII (2016-17)One Paper Theory: 80 Marks

Duration: 3 hrs.

Q5: A Ltd forfeited a share of Rs 100 issued at a premium of 20% for non-payment of first call of Rs 10 per share and final call of ?10 per share. State the minimum price at which this share can be reissued

Q6: A group of 60 persons want to form a partnership business in India. Can they do so? Give reason in support of your answer.

Q7: Explain with an imaginary example how issue of debenture as collateral security is shown in the balance sheet of a company when it is recorded in the books of accounts.

Q8: Rekha, Sunita and Teena are partners in a firm sharing profits in the ratio of 3:2:1. Samiksha joins the firm. Rekha surrenders 1/4th of her share; Sunita surrenders 1/3rd of her share and Teena 1/5th of her share in favour of Samiksha. Find the new Profit sharing ratio.

Q9: King Ltd took over Assets of Rs 25,00,000 and liabilities of Rs 6,00,000 of ( "pen Jit k purchase consideration by issuing 10,000 equity shares of <Tl 00 each at a premium ot t0% and ?11,00,000 by Bank Draft.Calculate Purchase consideration and pass necessary Journal entries in the books of King Ltd.

Q10: ABC Ltd was a cloth manufacturing company located in Delhi. Being a socially aware organisation they wanted to set up a manufacturing plant in a backward area of Kashmir to provide employment to the local people. On July 17, 2014 a flood had hit the entire state of Jammu & Kashmir causing massive destruction and loss. The company wanted to help the

SAMPLE PAPER 1ACCOUNTANCY (055) CLASS-XII

Time allowed –Three hours Max Marks 80General Instructions:

1) This question paper contains two parts A and B.2) Part A is compulsory for all.3) Part B has two options-Financial statement Analysis and Computerised Accounting.4) Attempt only one option of Part B.5) All parts of a question should be attempted at one place.

Q1: A, B and C are the partners sharing profits and losses in the ratio of 5:3:2. C retired and his capital balance after adjustments regarding Reserves, Accumulated profits/ losses and gain/loss on revaluation was Rs 2,50,000. C was paid Rs 3,00,000 in full settlement. Afterwards D was admitted for 1/4th share . Calculate the amount of goodwill premium brought by D.

Q2: A and B were partners in a firm. They admitted C as a new partner for 20% share in the profits. After all adjustments regarding general reserve, goodwill, gain or loss on revaluation, the balances in capital accounts of A and B were Rs 3,85,000 and Rs 4,15,000 respectively. C brought proportionate capital so as to give him 20% share in the profits. Calculate the amount of capital to be brought by C.

Q3: A and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is ? 2,50,000. The total interest on partner’s drawing is ? 4,000. A’s salary is ? 4,000 per quarter and B’s salary is 40,000 per annum. Calculate the net profit/loss earned during the year.

Q4: ABC Ltd. Purchased for cancellation its own 5,000, 9% Debentures of ? 100 each for Rs 95 per debenture. The brokerage charges Rs 15,000 were incurred. Calculate the amount to be transferred to capital reserve.

people, so they decided to raise the funds through issuing 50,000 Equity shares of ?50 each to set up the plant in the rural area of Kashmir.Pass necessary Journal entries for the issue of shares and identify any two values that the company wanted to communicate to the society.

Q11: A, B, C and D were partners sharing profits in the ratio of 1:2:3:4. D retired and his share was acquired by A and B equally. Goodwill was valued at 3 year’s purchase of average profits of last 4 years, which were ? 40,000. General Reserve showed a balance of ^1,30,000 and D’s Capital in the Balance Sheet was ?3,00,000 at the time of D’s retirement. You are required to record necessary Journal entries in the books of the firm and prepare D’s capital account on his retirement

Q12: Kavita, Meenakshi and Gauri are partners doing a paper business in Ludhiana. After the accounts of partnership have been drawn up and closed, it was discovered that for the years ending 31st March 2013 and 2014, Interest on capital has been allowed to partners @ 6% p. a. although there is no provision for interest on capital in the partnership deed. Their fixed capitals were ^ 2,00,000; ?1,60,000 and ?1 ,20,000 respectively. During the last two years they had shared the profits as under:Year Ratio31 March 2013 3 : 2 : 131 March 2014 5 : 3 : 2You are required to give necessary adjusting entry on April 1, 2014.

Q13: On 31 March 2015 the Balance Sheet of Punit, Rahul and Seema was as follows Balance Sheet of Punit, Rahul and Seema As at March 31, 2015

Liabilities Assets *Capitals: Buildings 40,000Punit 60,000 Machinery 60,000Rahul 50,000 Patents 12,000Seema 30.000 1,40,000 Stock 20,000

Cash 42,000Reserves 20,000Creditors 14,000

1,74,000 1,74,000

They were sharing Profit and loss in the ratio 5:3:2.Seema died on October 1, 2015. It was agreed between her executors and the remaining partners that:Goodwill be valued at 2 years’ purchase of the average profits of the previous five years, which were: 2010-11: ?30,000; 2011-12: Rs 26,000; 2012-13: Rs 24,000; 2013-14: Rs 30,000 and 2014-15: Rs 40,000.Patents be valued at Rs 16,000; Machinery at Rs 56,000; Buildings at Rs 60,000.Profit for the year 2015-16 be taken as having been accrued at the same rate as that in the previous year.Interest on capital be provided at 10% p. a.A sum of ^15,500 was paid to her executors immediately.Prepare Revaluation Account, Seema’s Capital Account and Seema’s executors Account

Q14: Ruchi Ltd issued 42,000, 7% Debentures of Rs100 each on 1st April, 2011, redeemable at a premium of 8% on 31St March 2015. The Company decided to create required Debenture Redemption Reserve on 31st

March 2014. The company invested the funds as required by law in a fixed deposit with State Bank of India on 1st April, 2014 earning interest @10% per annum. Tax was deducted at source by the bank on interest @10% per annum. Pass necessary Journal Entries regarding issue and redemption of debentures.

Q15: Hema and Garima were partners in a firm sharing profits in the ratio of 3:2 . On March 31, 2015, their Balance Sheet was as follows:

Balance Sheet of Hema and Garima as at March 31, 2015Liabilities Rs Assets RsCreditors 36,000 Bank 40,000Garima’s Husband’s Loan 60,000 Debtors 76,000

Hema’s Loan 40,000 Stock 2,00,000Capitals: Furniture 20,000Hema 2,00,000 Leasehold Premises 1,00,000Garima 1.00.000 3,00,000

4,36,000 4,36,000On the above date the firm was dissolved. The various assets were realized and liabilities were settled as

under:(i) Garima agreed to pay her husband’s loan.(ii) Leasehold Premises realized Rs1,50,000 and Debtors Rs2,000 less.(iii) Half the creditors agreed to accept furniture of the firm as full settlement of their claim and

remaining half agreed to accept 5% less.(iv) 50% Stock was taken over by Hema on cash payment ofvRs 90,000 and remaining stock was

sold for Rs94,000.Realisation expenses of Rs10,000 were paid by Garima on behalf of firm.

Pass necessary journal entries for the dissolution of the firm.Q16: P and Q were partners in a firm sharing profits in 3; 2 ratio. R was admitted as a new partner for 1/4

share in the profits on April 1, 2015. The Balance Sheet of the firm on March 31, 2015 was as follows:Balance Sheet of P and Q As at March 31, 2015

Liabilities Assets ?Creditors 20,000 Cash 20,000General Reserve 16,000 Debtors 18,000Capitals: Stock 20,000P 96,000 Furniture 12,000Q 68,000 1,64,000 Machinery 40,000

Buildings 90,0002,00,000 2,00,000

The terms of agreement on R’s admission were as follows:(i) R brought in cash ?60,000 for his capital and ^30,000 for his share of goodwill.(ii) Building was valued at ? 1,00,000 and Machinery at ? 36,000.(iii) The capital accounts of P and Q were to be adjusted in the new profit-sharing ratio. Necessary

cash was to be brought in or paid off to them as the case may be.Prepare Revaluation Account, Partner’s Capital Account and the Balance Sheet of P, Q and R.

ORKhushboo, Leela and Meena were partners in a firm sharing profits in the ratio of 5:3:2. Their Balance Sheet on March 31, 2015 was as follows:

Balance Sheet of Khushboo, Leela and Meena As at March 31, 2015Liabilities Assets ?Creditors 70,000 Bank 44,000Capitals: Debtors 24,000Khushboo 90,000 Stock 60,000Leela 56,000 Buildings 1,40,000Meena 60,000 2,06,000 Profit & Loss A/c 8,000

2,76,000 2,76,000

On April 1,2015 Leela retired on the following terms:a. Building was to be depreciated by Rs10,000.b. A Provision of 5% was to be made on Debtors for doubtful debts.c. Salary outstanding was Rs 4,800.d. Goodwill of the firm was valued at Rs 1,40,000.

e. Leela was to be paid Rs 20,800 through cheque and the balance was to be paid in two equal quarterly installments (starting from June 30, 2015) along with interest @ 10% p.a.Prepare Revaluation Account, Leela’s Capital Account and her Loan Account till it is finally

paid.

Q17: Surya Ltd with a Registered capital of 10,00,000 Equity Shares of Rs 10 per Shares payable Rs 3 on Application, Rs 2 on Allotment, Rs3 on First Call and Rsr2 on Second and Final Call. The amount due on Allotment was duly received except Mr. X holding 6,000 shares. His shares were immediately forfeited. On the first call being made, Mr. Y holding 5,000 Equity shares paid the entire balance on his holding. Second call was not made.Pass the necessary Journal Entries to record the transactions and Show how the Share Capital will be presented in the Balance Sheet of the Company. Also prepare notes to accounts.

ORa) Nidhi Ltd. issued 2,000 Shares of Rs100 each. All the money was received except on 200 shares on which only Rs90 per share were received. These shares were forfeited and out of the forfeited shares 100 shares were reissued at Rs 80 each as fully paid up. Pass necessary Journl entries for the above transactions and prepare the Forfeited Share Account.

b) Complete the following Journal Entries:

S.No Particulars L.F Debit Credit____________________ Dr

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

(Being the forfeiture of 1000 shares of Rs10 each, Rs 8 called up, on which allotment money of Rs 2 and First Call of Rs 3 has not been received)

________________________

____________________ Dr To------------------------------- To-------------------------------

(Being reissue of 1000 forfeited shares @ Rs 11 fully paid up)

________________________

____________________ Dr To-------------------------------

(being the amount transfer to capital Reserve)

________________

ANALYSIS OF FINANCIAL STATEMENTS PART - BQ18. The Goodwill of X ltd. increased from ?2, 00,000 in 2013-14 to ?3, 50,000 in 2014-15. What will be its treatment

while preparing Cash Flow Statement for the year ended 31st March 2015?(1)

Q19. Kartik Mutuals, a mutual fund company, provides you the following information:31st March 2013 31st March 2014Proposed Dividend ?20,000 ?15,000Additional Information:Equity Share Capital raised during the year ^3,00,000 10% bank loan repaid was <fl,00,000 Dividend received during the year was ?20,000 Find out the cash flow from financing activities.

(1)

Q20. Mudra Ltd. is in the process of preparing its Balance Sheet as per Schedule III, Part I of the Companies Act, 2013 and provides its true and fair view of the financial position.Under which head and sub-head will the company show ‘Stores and Spares’ in its Balance Sheet?What is the accounting treatment of ‘Stores and Spares’ when the Company will calculate its Inventory Turnover Ratio?The management of Mudra Ltd. want to analyse its Financial Statements. State any two objectives of such analysis.Identify the value being followed by Mudra Ltd.

(4)

Q21. X Ltd. has a current ratio of 3.5:1 and quick ratio of 2:1. If excess of current assets over quickassets represented by Inventory is *24,000, calculate current assets and current liabilities.From the following information, calculate Inventory Turnover Ratio.Revenue from Operations: *4,00,000, Average Inventory : *55,000, The rate of Gross Loss on Revenue from Operations was 10%.

(4)

Q22: From the following Statement of profit and loss of the Sakhi Ltd for the years ended 31 March 2015, prepare Comparative Statement of Profit & Loss.

STATEMENT OF PROFIT & LOSSfor the years ended 31 March, 2015

Particulars 2013-14 ? 2014-15 ?

Revenue from operations 25,00,000 40,00,000Expenses:Employee benefit expenses were 5% of Revenue from operationsOther expenses 5,90,000 6,80,000Rate of Tax 35%

Q23: Following is the Balance Sheets of Akash Ltd. as at 31-3-2014:Akash Ltd. Balance Sheet as at 31-3-2014

PARTICULARS NOTE 2013-14 2012-13No. ? ?

I EQUITY & LIABILITIES

(1) Shareholders’ Funds 15,00,000 14,00,000(a) Share Capital(b) Reserves & Surplus

1 2,50,000 1,10,000

(2) Non - Current Liabilities 2,00,000 1,25,000(a) Long Term Borrowings (3)

Current Liabilities2 12,000 10,000

(a) Short term borrowings 15,000 83,000(b) Trade Payables(c) Short term provisions

3 18,000 11,000

TOTAL 19,95,000 17,39,000

II (1) Non - Current Assets

(a) Fixed Assets(i) Tangible assets 4 18,60,000 16,10,000

(ii) Intangible assets 5 50,000 30,000(2) Current Assets

(a) Current Investments(b) Inventories

8,000 5,000

(c) Trade Receivables 37,000 59,000(d) Cash & Cash Equivalents 26,000 23,000

14,000 12,000TOTAL 19,95,000 17,39,000

Note No PARTICULARS 2013-14 2012-13? ?

1 Reserves and Surplus:- Surplus (balance in Statement of Profit and Loss)

2,50,000 1,10,000

2 Short Term Borrowings Bank Overdraft 12,000 10,000

3 Short term provisionsProvision for Tax 18,000 11,000

4 Tangible Assets Machinery

Accumulated Depreciation

20,00,000(1,40,000)

17,00,000(90,000)

5 Intangible AssetsPatents 50,000 30,000

Additional Information:(i) Tax paid during the year amounted to Rs16, 000.(ii) Machine with a net book value of Rs10,000 (Accumulated Depreciation ?40,000) was sold for Rs 2,000.

Prepare Cash Flow Statement.


Time allowed –Three hours Max Marks 80General Instructions:

1) This question paper contains two parts A and B.2) Part A is compulsory for all.3) Part B has two options-Financial statement Analysis and Computerised Accounting.4) Attempt only one option of Part B.5) All parts of a question should be attempted at one place.

PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES

Q1. Any change in the relationship of existing partners which results in an end of the existing agreementand enforces making of a new agreement is called(a) Revaluation of partnership.(b) Reconstitution of partnership.(c) Realization of partnership.(d) None of the above. (1)

Q2. Karan, Nakul and Asha were partners in a firm sharing profits and losses in the ratio 3:2:1. At the time

of admission of a partner, the goodwill of the firm was valued at `2,00,000. The accountant of the firm

passed the entry in the books of accounts and thereafter showed goodwill at `2,00,000 as an asset in the

Balance Sheet. Was he correct in doing so? Why? (1)

Q3. Anu, Bina and Charan are partners. The firm had given a loan of `20,000 to Bina. They decided todissolve the firm. In the event of dissolution, the loan will be settled by:(a) Transferring it to debit side of Realization account.(b) Transferring it to credit side of Realization account.(c) Transferring it to debit side of Bina’s capital account.(d) Bina paying Anu and Charan privately. (1)

Q4. Differentiate between ‘Capital Reserve’ and ‘Reserve Capital’. (1)

Q5. Metacaf Ltd. issued 50,000 shares of ` 100 each payable `20 on application (on 1st May 2012); `30 on

allotment (on 1st January 2013); `20 on first call (on 1st July 2013) and the balance on final call (on 1st

February 2014). Shankar, a shareholder holding 5,000 shares did not pay the first call on the due date.

The second call was made and Shankar paid the first call amount along with the second call. All sums due

were received.Total amount received on 1st February was:(a) Rs15,00,000(b) Rs16,00,000(c) Rs10,00,000(d) Rs11,00,000 (1)

Q6. Abha and Beena were partners sharing profits and losses in the ratio of 3:2. On April 1st 2013, they

decided to admit Chanda for 1/5th share in the profits. They had a reserve of `25,000 which they wantedto show in their new balance sheet. Chanda agreed and the necessary adjustments were made in thebooks. On October 1st 2013, Abha met with an accident and died. Beena and Chanda decided to

admitAbha’s daughter Fiza in their partnership, who agreed to bring `2,00,000 as capital. Calculate Abha’sshare in the reserve on the date of her death. (1)

Q7. State any three purposes for which securities premium can be utilized.(3)

Q8. Ankur and Bobby were into the business of providing software solutions in India. They were sharingprofits and losses in the ratio 3:2. They admitted Rohit for a 1/5 share in the firm. Rohit, an alumni of

IIT,Chennai would help them to expand their business to various South African countries where he had

beenworking earlier. Rohit is guaranteed a minimum profit of `2,00,000 for the year. Any deficiency in

Rohit’sshare is to be borne by Ankur and Bobby in the ratio 4:1. Losses for the year were Rs10,00,000. Pass

thenecessary journal entries (3)

Q9. Newbie Ltd. was registered with an authorized capital of Rs5,00,000 divided into 50,000 equity shares of

Rs10 each. Since the economy was in robust shape, the company decided to offer to the public forsubscription 30,000 equity shares of Rs10 each at a premium of Rs20 per share. Applications for

28,000shares were received and allotment was made to all the applicants. All calls were made and dulyreceived except the final call of Rs 2 per share on 200 shares. Show the ‘Share Capital’ in the

Balance Sheetof Newbie Ltd.as per Schedule VI of the Companies Act 1956. Also prepare Notes to Accounts for

thesame. (3)

Q10. Drumbeats Ltd. had a prosperous shoe business. They were manufacturing shoes in India andexporting to Italy. Being a socially aware organization, they wanted to pay back to the society. Theydecided to not only supply free shoes to 50 orphanages in various parts of the country but also giveemployment to children from those orphanages who were above 18 years of age. In order to meet thefund requirements, they decided to raise 50,000 equity shares of Rs 50 each and 40,000 9%

debentures ofRs40 each. Pass the necessary journal entries for issue of shares and debentures. Also identify one

valuewhich the company wants to communicate to the society. (3)

Q11. Following is the Balance Sheet of Punita, Rashi and Seema who are sharing profits in the ratio 2:1:2 as

on 31st March 2013. (4)

Punita died on 30th September 2013. She had withdrawn 44,000 from her capital on July 1, 2013.According to the partnership agreement, she was entitled to interest on capital @8% p.a. Her share ofprofit till the date of death was to be calculated on the basis of the average profits of the last three

years.Goodwill was to be calculated on the basis of three times the average profits of the last four years.

Theprofits for the years ended 2009-10, 2010-11 and 2011-12 were `30,000, `70,000 and `80,000respectively.Prepare Punita’s account to be rendered to her executors.(4)

Q12: Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio

2:1 with capitals `5,00,000 and `4,00,000 respectively. Kanika withdrew the following amounts during

the year to pay the hostel expenses of her son.1st April 10,0001st June 9,0001st Nov. 14,0001st Dec. 5,000Gautam withdrew `15,000 on the first day of April, July, October and January to pay rent for theaccommodation of his family. He also paid `20,000 per month as rent for the office of partnership

whichwas in a nearby shopping complex.

Calculate interest on Drawings @6% p.a. (4)

Q13. (a) A firm earned profits of Rs80,000, Rs1,00,000, Rs1,20,000 and Rs1,80,000 during 2010-11, 2011-12,

2012-13 and 2013-14 respectively. The firm has capital investment of `5,00,000. A fair rate of return on

investment is 15% p.a. Calculate goodwill of the firm based on three years’ purchase of average super

profits of last four years.(b) Kabir and Farid are partners sharing profits and losses in the ratio of 7:3. Kabir surrenders 2/10th

fromhis share and Farid surrenders 1/10th from his share in favor of Jyoti, a new partner. Calculate new

profitsharing ratio and sacrificing ratio. (6)

Q14. (a) Sunrise Company Ltd. has an equity share capital of Rs10,00,000. The company earns a return oninvestment of 15% on its capital. The company needed funds for diversification. The finance

manager hadthe following options: (i) Borrow Rs5,00,000 @15% p.a. from a bank payable in four equal quarterlyinstallments starting from the end of the fifth year (ii) Issue Rs5,00,000, 9% Debentures of Rs. 100

each

redeemable at a premium of 10% after five years. To increase the return to the shareholders, thecompany opted for option (ii). Pass the necessary journal entries for issue of debentures.(b) Walter Ltd. issued Rs 6,00,000 8% Debentures of Rs100 each redeemable after 3 years either by

draw oflots or by purchase in the open market. At the end of three years, finding the market price of

debenturesat Rs95 per debenture, it purchased all its debentures for immediate cancellation. Pass necessary

journalentries for cancellation of debentures assuming the company has sufficient balance in DebentureRedemption Reserve.(6)

Q15. Following is the Balance sheet of Karan and Sandeep who share profits and losses equally ason 31st march

The firm was dissolved on the above date.1. Karan agreed to take over 50% of the stock at 10% less on its book value, the remaining stock was sold at a gain of 15%. Furniture and machinery realized for Rs 30,000 and50,000 respectively.2. There was unrecorded Investments which was sold for Rs 25,000.3. Debtors realized Rs 31,500 (with interest) and Rs 1200 was recovered for bad debts written off

last year.4. There was an outstanding bill for repairs which had to be paid Rs 2000.Prepare necessary Ledger accounts to close the books of the firm.

Q16. A and B are partners in a firm sharing profits and losses in the ratio 3:1. They admit C for a ¼ share on

31st March 2014 when their Balance Sheet was as follows:

The following adjustments were agreed upon:(a) C brings in `16,000 as goodwill and proportionate capital.(b) Bad debts amounted to `3,000.(c) Market value of investment is `4,500.

(d) Liability on account of workmen’s compensation reserve amounted to `2,000.Prepare Revaluation A/c and Partner’s Capital A/cs.

ORX, Y and Z are partners in a firm sharing profits in proportion of 1/2, 1/6 and 1/3 respectively. The

BalanceSheet as on April 1, 2014 was as follows:

Z retires from the business and the partners agree that:(a) Machinery is to be depreciated by 10%.(b) Provision for bad debts is to be increased to ` 1,500.(c) Furniture was taken over by Z for ` 14,000.(d) Goodwill is valued at ` 21,000 on Z’s retirement.(e) The continuing partners’ have decided to adjust their capitals in their new profit sharing ratioafter retirement of Z. Surplus or deficit if any, in their capital accounts will be adjusted throughtheir current accounts.Prepare Revaluation A/c and Partners’ Capital A/c’s. (8)

Q17. Amrit Ltd. issued 50,000 shares of `10 each at a premium of `2 per share payable as `3 on application, `4 on allotment (including premium), `2 on first call and the remaining on second call.Applications were received for 75,000 shares and a pro-rata allotment was made to all the applicants.All moneys due were received except allotment and first call from Sonu who applied for 1,200

shares. Allhis shares were forfeited. The forfeited shares were reissued for `9,600. Final call was not made. Passnecessary journal entries.

ORVelco Ltd. issued 30,000 shares of ` 10 each at a discount of `1 per share payable as `3 on

application, `2on allotment, `2 on first Call and `2 on second call.Applications were received for 40,000 shares and a pro-rata allotment was made to all the applicants.All money due were received except allotment and first call from Mohit who had applied for 2,000shares. His shares were forfeited after first call. Subsequently, the second call was duly made and

dulyreceived. Thereafter, the forfeited shares were reissued for `9 fully paid. Pass the necessary journalentries(8)

PART B: ANALYSIS OF FINANCIAL STATEMENTSQ18. Cash deposit with the bank with a maturity date after two months belongs to which of the following

while preparing cash flow statement:(a) Investing activities(b) Financing activities(c) Cash and Cash equivalents(d) Operating activities. (1)

Q19. Finserve Ltd is carrying on a Mutual Fund business. It invested ` 30,00,000 in shares and `15,00,000

in debentures of various companies during the year. It received ` 3,00,000 as dividend and interest. Find

out cash flows from investing activities. (1)

Q20. (a) Name the sub heads under the head ‘Current Liabilities’ in the Equity and Liabilities part of theBalance Sheet as per Schedule VI of the Companies Act 1956.(b) State any two objectives of Financial Statements Analysis. (4)

Q21. (a) From the following details, calculate Opening inventory: Closing inventory Rs60,000; Total Revenue

from operations Rs5,00,000 (including cash revenue from operations Rs1,00,000); Total purchasesRs3,00,000 (including credit purchases Rs60,000). Goods are sold at a profit of 25% on cost.(b) Current Assets of a company are Rs17,00,000. Its current ratio is 2.5 and liquid ratio is 0.95.Calculate Current Liabilities and Inventory. (4)

Q22. Nimani Ltd. is into the business of back office operations. Honesty and hard work are the two pillarson which the business has been built. It has a good turnover and profits. Encouraged by huge profits,

itdecided to give the workers bonus equal to two months salary. Following is the Comparative

Statementof Profit and Loss of Nimani Ltd. for the years ended 31st March 2013 and 2014.(a) Calculate Net Profit ratio for the years ending 31st March 2013 and 2014.(b) Identify any two values which Nimani Ltd. wants to communicate to the society.

(4)23. Following are the Balance Sheets of Krishna Ltd. as on 31st March 2013 and 2014:

Particulars Note No. 2013-14 (Rs) 2012-13(Rs)EQUITY AND LIABILITIES(1) Shareholders Funds(a) Share capital(b) Reserves and Surplus(2) Non Current LiabilitiesLong term borrowings(3) Current LiabilitiesTrade PayablesShort term Provisions

1

2

14,00,0005,00,000

5,00,000

1,00,00080,000

10,00,0004,00,000

1,40,000

60,00060,000

Total 25,80,000 16,60,000ASSETS(1) Non Current Assets(a) Fixed assets(i) Tangible assets(ii) Intangible Assets(2) Current Assets(a) Inventories(b) Trade Receivables(b) Cash and Cash Equivalents

34

16,00,0001,40,000

2,50,0005,00,00090,000

9,00,0002,00,000

2,00,0003,00,00060,000

Total 25,80,000 16,60,000

Notes to Accounts:

S.No Particulars As on 31.3.2014 (Rs)

As on 31.3.2013 (Rs)

1.

2.

3.

4.

Reserves and SurplusSurplus (i.e. balance inStatement of Profit and Loss)

Short Term provisionsProvision for taxTangible assetsMachineryLess Accumulated depreciation

Intangible AssetsGoodwill

5,00,000

80,000

17,60,000(1,60,000)

1,40,000

4,00,000

60,000

10,00,000(1,00,000)

2,00,000

Prepare a Cash Flow Statement after taking into account the following adjustment:(i) Tax paid during the year amounted to ` 70,000. (6)

ORPart B: Computerized Accounting

Q18: While navigating in the workbook, which of the following commands is used to move to the beginning of the Current row:

a. [ ctrl] + [home]b. [page Up]c. [Home]d. [ctrl] + [Back space] (1)

Q19: Join line in the context of Access table means:a. Graphical representation of tables between tablesb. Lines bonding the data within tablec. Line connecting two fields of a tabled. Line connecting two records of a table (1)

Q20. Enumerate the basic requirements of computerised accounting system for a business organization.(4)

Q21. The generation of ledger accounts is not a necessary condition for making trial balance in acomputerised accounting system. Explain. (4)

Q22. Intentional manipulation of accounting records is much easier in computerised accounting than inmanual accounting. How? (4)

Q23. Computerisation of accounting data on one hand stores voluminous data in a systematic andorganised manner where as on the other hand suffers from threats of vulnerability and manipulations.

Discuss the security measures you would like to employ for securing the data from such threats. (6)

SAMPLE PAPER 3Class - XII ACCOUNTANCY

Time allowed: 3 hours Maximum Marks: 80General Instructions:



Q1 Can a partner be exempted from sharing the losses in a firm? If yes, under what circumstances?(i) If all partners agree(ii) If there is no partnership deed(iii) If one partner is new(iv) If one partner is active partner (1)

Q2 When an asset is taken over by a partner, why is his capital account debited?(i) To increase his capital account(ii) To reduce his capital balance(iii) To open his current account(iv) To close his current account (1)

Q3 Apart from location and profitability, list any two other factors affecting Goodwill of a firm. (1)Q4 Can ‘Securities premium’ be used as working capital? Give reason in support of your answer. (1)Q5 What is the nature of interest on Debentures? (1)Q7 Sony Limited purchased assets of Vinod Limited for Rs.8,40,000 and took over the liabilities

(creditors) of Rs.80,000 for an agreed purchase consideration of Rs.8,00,000. Sony Limited issued 12% debentures of Rs.100 each at 25% premium for purchase consideration.Pass necessary Journal entries in the books of Sony Limited. (3)

Q8 A and B were partners in a firm sharing profits in 3:2 ratio. They admitted C and D as new partners. The new profit sharing ratio will be 2:2:1:1. C and D brought Rs.2, 75,000 each for their respective capitals and also necessary amount of premium for goodwill in cash. Goodwill was valued at Rs.2,40,000 for the firm. Calculate sacrificing ratio of A and b and pass necessary Journal entries for the above transactions in the books of the firm.

(3)Q9 Shubham Limited has 80,000; 8% Debentures of Rs.100 each due for redemption on 31st March,

2014. Assume that Debenture Redemption Reserve has a balance of Rs.38,00,000 on that date. Record necessary journal entries at the time of Redemption of Debentures.

(3)Q10 Deepika Limited forfeited 1,000 shares of Rs.10 each, issued at a discount of Rs.1 per share, for the

non-payment of the first call of Rs.2 per share. The final call of Rs.3 per share has not yet been made. Subsequently, 400 of these shares were reissued at Rs.5 per share, Rs.7 paid-up, and 600 reissued at Rs.7 per share fully paid. Journalise the transactions to record the forfeiture and reissue of shares. (4)

Q11 DK, EK and FK were partners in a firm sharing profits in the ratio of 5:7:8. Their fixed capitals were ; DK Rs.10,00,000; EK Rs.14,00,000 and FK Rs.16,00,000. Their Partnership deed provided for the following:

(i) Interest on capital @ 10% per annum and Interest on drawings @12% per annum.(ii) Salary of Rs.20,000 per month to FK.(iii) DK Withdrew Rs.80,000 on 31st January, 2013; EK withdrew Rs.1,00,000 on 31st March,

2013 and FK withdrew Rs.60,000 on 31st December, 2013.During the year ended 31st December, 2013, the firm earned a profit of Rs.7,00,000. Prepare

P/L Appropriation Account. Partners have also decided to give more jobs in their business to the economically backward women. Identify the values disclosed by the partners.

(4)

Q12 A, B and C are partners in a firm sharing profits in the ratio of 3 : 2: 1. Their balance sheet as at 31.12.2004 was as under:


Creditors 46,000 Cash in hand 18,000General Reserve 12,000 Debtors 25,000Capitals : A 40,000 Less: Provision 3,000 22,000B 40,000 Stock 18,000C 30,000 1,10,000 Furniture 30,000

Machinery 68,000Goodwill 12,000

1,68,000 1,68,000

B retires on 1.1.2005 on the following terms:(i) Provision for doubtful debts will be raised by Rs.1,000.(ii) Stock will be depreciated by 10% and Furniture by 5%.(iii) There is an outstanding claim for damages of Rs.1,100 and it is to be provided for in the

books.(iv) Creditors will be written back by Rs.6,000.Goodwill of the firm is valued at Rs.24,000, which is not to be shown in the books of the new firm.B is paid in full with the cash brought in by A and C in such a manner that their capitals are in proportion to their profit sharing ratio 3:2.Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet. (6)

Q13 X Ltd. has an Authorized capital of Rs.15,00,000 divided into 1,00,000 Equity shares of Rs.10 each and 50,000 9% preference share of Rs.10 each . The company invited applications for all the preference shares but only 90,000 equity shares. All the preference shares were subscribed, called and paid while subscriptions were received for only 85,000 equity shares. During the first year Rs.8 per share were called.Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay first call of Rs.2.Shyam’s shares were forfeited after the first call and later on 1,500 of the forfeited shares were reissued at Rs.6 per share Rs.8 called up. Show share capital in the Balance Sheet as per revised Schedule VI as at 31st March 2013.Prepare relevant ‘Notes to Accounts’ (4)

Q14 A, B and C are partners in a trading firm. The firm has a fixed total capital of Rs.60,000 held equally by all the partners. Under the partnership deed the partners were entitled to:(i) A and B to a salary of Rs.1,800 and Rs.1,600 per month respectively.(ii) In the event of the death of a partner, Goodwill was to be valued at 2 years purchase of the

Average profits of the last 3 years.(iii) Profit upto the date of the death based on the profit of the previous year.(iv) Partners were to be charged interest on drawings at 5% p.a. and allowed interest on capitals at

6% p.a.B died on 1.1.2011. His drawings to the date of death were Rs.2,000 and the interest thereon

was Rs.60. The profits for the three years ending 31.3.2008, 2009 and 2010 were Rs.21,200; Rs.3,200 (Dr.) and Rs.9,000 respectively.

Prepare A’s Capital Account to calculate the amount to be paid to his executors. (6)Q15 Following is the Balance Sheet of X and Y, who share profits and losses in the ratio of 4 : 1, as at 31st

March 2012 :Liabilities AmountAssets AmountSundry Creditors 8,000Bank 20,000Bank Overdraft 6,000Debtors 17,000X’s Brother’s Loan 8,000Less : Provision 2,000 15,000Y’s Loan 3,000Stock 15,000Investment Fluctuation fund 5,000Investments 25,000Capitals : Buildings 25,000X 50,000 Goodwill 10,000Y 40,000 90,000Profit and Loss A/c 10,000

1,20,000 1,20,000

The firm was dissolved on the above date and the following arrangements were decided upon :(i) X agreed to pay off his brother’s loan.(ii) Debtors of Rs.5,000 proved bad.(iii) Other assets realized :- Investments 20% less ; and goodwill at 60%.(iv) One of the creditors for Rs.5,000 was paid only Rs.3,000.(v) Buildings were auctioned for Rs.30,000 and the auctioneer’s commission amounted to

Rs.1,000.Y took a part of stock at Rs.4,000 (being 20% less than the book value) and balance stock

was realized 50%.Realisation expenses amounted to Rs.2,000.Prepare Realisatiion Account, Partners Capital Account and Cash Account.

(6)Q16 X and Y were partners in a firm sharing profits in 3 : 1 ratio. They admitted Z as a new partner for

1/4th share in the profits. Z was to bring Rs.20,000 as his capital and the capitals of X and y were to be adjusted on the basis of Z’s capital in the profit sharing ratio. The balance sheet of X and Y on 31.3.2006 was as follows:

Liabilities Amount Assets AmountSundry Creditors 18,000 Cash 5,000Bills Payable 10,000 Debtors 17,000General Reserve 12,000 Stock 12,000Capitals : X 25,000 Machinery 21,000Y 10,000 35,000 Building 20,000

75,000 75,000Other terms of agreement on Z’s admission were as follows:(i) Z will bring Rs.6,000 for his share of goodwill.(ii) Building will be valued at Rs.25,000 and Machinery at Rs.19,000.(iii) A Provision at 5% on debtors will be created for bad debts.(iv) Capital accounts of X and y were adjusted by opening current accounts.Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet of new firm. (8)

Q17 Shivani Limited issued 30,000 shares of Rs.10 each at maximum discount, payable as follows:Rs.3 per share on ApplicationRs.2 per share on AllotmentBalance on first and final callApplications were received for 50,000 shares. Applications for 10,000 shares were rejected and allotment was made on pro-rata basis to the remaining applicants. Harish who applied for 1,600 shares failed to pay the amount due on allotment and call. Company forfeited his shares. Later on out of the forfeited shares company reissued 800 shares at Rs.10 per share fully paid up.

Pass necessary journal entries in the books of Shivani Limited. (8)Part - B

Financial Statement Analysis

March

Q18. State with reason whether charging of depreciation on furniture will result into inflow, outflow or no flow of cash. (1)

Q19 Interest received by a finance company is classified under which king of activity while preparing Cash Flow Statement. (1)

Q20 State how qualitative aspects are ignored in Financial Statement Analysis. (1)Q21 Give major heads and sub heads under which following items will be disclosed in the Balance Sheet

as per Revised Schedule VI of the Companies Act, 1956:(3)

(i) Tax Reserve (iv) Premium on Redemption of debentures(ii) Interest on calls in advance (v) Loose Tools(iii) Stores and spares (vi) Bank Balance

Q21. From the following statement of profit and loss of VK Limited for the years ended 31s 2010 and 2009.

Particulars 31 March 2010 31 March 2009Revenue from operations 300% of cost of material

consumed200% of cost of material consumed

Cost of material consumed 12,00,000 10,00,000Other Expenses 20% of cost of material 10% of cost of material consumedTax 50% 50%

Prepare a comparative statement of profit and loss. (4)

Q22. Calculate ‘Return on Investment’ and ‘Debt Equity Ratio’ from the following information: Net Profit after interest and tax 3, 00,00010% Debentures 5, 00,000Tax Rate 40%Capital Employed 40, 00,000 (4)

Q23. Following is the Balance Sheets of Greenland Limited as on 31st March 2012:Particulars Note

No.31st March2011-12 (Rs.)

31st March2010-11 (Rs.)

I. Equity and Liabilities1. Shareholders’ Funds (a) Share Capital 12,00,000 8,00,000(b) Reserves and Surplus (Profit Balance) 3,50,000 4,00,0002. Non-current LiabilitiesLong-term Borrowings : Bank Loan 4,40,000 3,50,0003. Current Liabilities(a) Trade Payables (Creditors) 60,000 50,000Total 20,50,000 16,00,000

II Assets1. Non-current Assets (a) Fixed Assets:(i) Tangible Assets : Machinery 12,00,000 9,00,0002. Current Assets(a) Inventories (Stock) 2,00,000 1,00,000(b) Trade Receivables (Debtors) 3,10,000 2,30,000(c) Cash and Cash Equivalents 3,40,000 3,70,000Total 20,50,000

16,00,000

Adjustments:

(i) The Company paid interest Rs.36,000 on its long term borrowings.(ii) Depreciation provided on fixed assets during the year amounted to Rs.1,20,000. (6)

SAMPLE PAPER 4Class - XII ACCOUNTANCY




Q1 Do all firms of business organisations prepare the P/L Appropriation A/c?(a) Yes all firms prepare P/L App. A/c(b) Only registered firms require P/L App. A/c(c) Only unregistered firms require P/L App. A/c(d) Sole proprietorship firms do not require P/L App. A/c (1)

Q2 Where would you record the interest on capital when capital is fixed?(a) Cr. Side of Parners Capital Account(b) Dr. Side of Partners Capital Account(c) Cr. Side of Partners Current Account(d) Dr. Side of Partners Current Account (1)

Q3 In the absence of partnership deed, how are mutual relations of partners governed? (1)Q4 In case of re-issue of shares which were originally issued at par or at a premium, what is the

maximum permissible discount on re-issue?(1)

Q5 State the provision of the Companies Act, 1956 regarding DRR? (1)Q6 On 31st March, 2005, after the closing of books of accounts, the Capital Accounts of A, B and C

stood at Rs.24,000; Rs.20,000 and Rs.12,000 respectively. The profit for the year Rs.36,000 was distributed equally. Subsequently, it was found that interest on capital @ 5% p.a. had been omitted. The profit sharing ratio was 2:2:1.

(3)Q7 Shaweta Limited has Rs.8,00,000; 9% Debentures to be redeemed out of profits on 1st October 2010

at a premium of 5%. The company had a DRR of Rs.4,14,000. Pass the necessary Journal entries at the time of redemption.

(3)Q8 Rajesh Limited issued 25,000; 10% Debentures of Rs.100 each. Give the Journal entries in each the

following cases when:(i) The Debentures were issued at a premium of 20%.(ii) The Debentures were issued at a collateral security to bank against a loan of Rs.20,00,000.(iii) The Debentures were issued to Supplier of Machinery costing Rs.28,00,000 as his full and

final payment.(3)

Q9 D, E and F were partners in a firm sharing profits in the ratio of 5:7:8. Their fixed capitals were ; D Rs.5,00,000; E Rs.7,00,000 and F Rs.8,00,000. Their Partnership deed provided for the following:

(i) Interest on capital @ 10%per annum(ii) Interest on drawings @12%per annum.(iii) Salary of Rs.10,000 per month to F.(iv) D Withdrew Rs.40,000 on 31st January, 2009; E withdrew Rs.50,000 on 31st March, 2009 and

F withdrew Rs.30,000 on 31st December, 2009.During the year ended 31st December, 2009, the firm earned a profit of Rs.3,50,000. Prepare P/L Appropriation Account.

(4)Q10 Sukriti Limited invited applications for 40,000 shares of Rs.50 each isseud at a premium of Rs.10 per

share. The amount was payable as follows:On Application and Allotment Rs.20 per share Balance on first and final call (including premium)Application for 70,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants. First and final call was made and duly received except on 400 shares alloted to Rakesh. Give journal entries.

(4)

Q11 Vijay, Vivek and Vinay were partners in a firm sharing profits in 2 : 2: 1 ratio. On 31.3.2006 Vivek retired from the firm. On the date of Vivek’s retirement the Balance Sheet was as under:


Creditors 54,000 Bank 55,200Bills Payable 24,000 Debtors 12,000Outstanding Rent 4,400 Less: Provision 800 11,200Provision for Legal Claims 12,000 Stock 18,000Capitals : Vijay 92,000 Furniture 8,000Vivek 60,000 Premises 1,94,000Vinay 40,000 1,92,000

2,86,400 2,86,400

On Vivek’s retirement it was agreed that:(i) Premises will be appreciated by 5% and Furniture will be appreciated by Rs.2,000. Stock will

be depreciated by 10%.(ii) Provision for bad debts was to be made at 5% on debtors and provision for legal damages to

be made for Rs.14,400.(iii) Goodwill of the firm was valued at Rs.48,000.(iv) Rs.50,000 from Vivek’s Capital Account will be transferred to his loan account and the

balance will be paid by cheque.Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet.(6)

Q12. The authorized capital of Vishu Limited is Rs.50,00,000 divided into 25,000 shares of Rs.200 each. Out of these, the company issued 12,000 shares of Rs.200 each at a premium of 10%. The amount per share was payable as follows:Rs.60 on application; Rs.60 on allotment (including premium); Rs.30 on first call and balance on final call. Public applied for 11,000 shares. All the money was duly received.Prepare an extract of Balance Sheet of Vishu Limited as per Revised Schedule VI Part 1 of the Companies Act 1956 and also prepare notes to accounts.

(4)Q13 A, B and D are partners in a firm. On 1st April 2011 the balance in their capital accounts stood at

Rs.4,00,000, Rs.3,00,000 and Rs.2,00,000 respectively. They shared profits in the proportion of 5 : 3 : 2 respectively. Partners are entitled to interest on capital @ 10% p.a. and salary to B and D @ Rs.2,000 per month and Rs.3,000 per quarter respectively as per the provisions of the partnership

deed.B’s Share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs.50,000 p.a. Any deficiency arising on that account shall be met by D. The profits of the firm for the year ended 31st March 2012 amounted to Rs.2,00,000. Prepare ‘Profit and Loss Appropriation Account’ for the year ended 31st March 2012. (6)

Q14 X, Y and Z were partners sharing profits in the ratio of 3 : 2: 1. On 31.3.08 their balance sheet stood as under:Liabilities Amount Assets AmountCreditors 72,000 Cash at Bank 70,000General Reserve 24,000 Investments 50,000Capitals: X 75,000 Patents 15,000Y 70,000 Stock 25,000Z 50,000 1,95,000 Debtors 20,000

Buildings 75,000Machinery 36,000

2,91,000 2,91,000Z died on 31.5.2008. It was agreed that:

(i) Goodwill was valued at 3 years purchase of the average profits of the last five years, which were, 2003 : Rs.40,000; 2004: Rs.40,000; 2005: Rs.30,000; 2006: Rs.40,000 and 2007: Rs.50,000.

(ii) Machinery was valued at Rs.70,000, Patents at Rs.20,000 and Buildings at Rs.66,000.(iii) For the purpose of calculating Z’s share of profits till the date of death, it was agreed that the

same be calculated based on the average profits for the last 2 years.(iv) The executor of the deceased partner is to be paid the entire amount due by means of a

cheque.Prepare Z’s Capital A/c to be rendered to his executor and also a Journal entry for the

settlement of the amount due to the executor.(6)

Q15 VK Limited issued Rs.10,00,000 new capital divided into Rs.100 at a premium of Rs.20 per share, payable as under:On Application Rs.10 per shareOn Allotment Rs.40 per share (including premium of Rs.10 per share)On First and Final Call Balance amount Over-payments on application were to be applied towards sums due on allotment and first and final call. Where no allotment was made, money was to be refunded in full.The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 2,000 shares and applicants for 3,000 shares were sent letters of regret. Shares were allotted in full to the remaining applicants. All the money due was duly received.Which value has been affected by rejecting the applications of the applicants who had applied for 3,000 shares? Suggest a better alternative for the same.Give Journal Entries to record the above transactions (including cash transactions) in the books of the company. (8)

Q16 X and Y were partners in a firm sharing profits in 3 : 1 ratio. They admitted Z as a new partner for 1/4th share in the profits. Z was to bring Rs.20,000 as his capital and the capitals of X and y were to be adjusted on the basis of Z’s capital in the profit sharing ratio. The balance sheet of X and Y on 31.3.2006 was as follows:Liabilities Amount Assets AmountSundry Creditors 18,000 Cash 5,000Bills Payable 10,000 Debtors 17,000General Reserve 12,000 Stock 12,000Capitals : X 25,000 Machinery 21,000Y 10,000 35,000 Building 20,000

75,000 75,000Other terms of agreement on Z’s admission were as follows:(i) Z will bring Rs.6,000 for his share of goodwill.(ii) Building will be valued at Rs.25,000 and Machinery at Rs.19,000.

(iii) A Provision at 5% on debtors will be created for bad debts.(iv) Capital accounts of X and y were adjusted by opening current accounts.

Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet of new firm. (8)Part - B

Financial Statement AnalysisQ17 X Ltd. has a Debt Equity Ratio at 3 : 1. According to the management it should be maintained at 1 :

1. What are the two choices to do so?(1)

Q18 State whether cash deposited in bank will result in inflow/outflow or no flow of cash. (1)Q19 Interest received by a finance company is classified under which kind of activity while preparing a cash flow statement?

(1)

Q20 List the items which are shown under the heading. ‘Current Assets’ in the Balance Sheet of a company as per provisions of Schedule VI, of the Companies Act 1956.

(3)Q21 Prepare a ‘Comparative Statement of Profit & Loss’ with the help of following information: (4)

Particulars 2011 2012Revenue from operationsExpensesOther incomesIncome Tax

20,00,00012,00,0004,00,00050%

0000003,60,00050%

Q22Find the value of current liabilities and current assets, if current ratio is 2.5: 1, liquid ratio is 1.2 : 1 and the value of inventory of the firm is Rs.78,000. (4)

Q23 Following are the Balance Sheets of Krishtec Limited for the year ended 31st March 2011 and 2012:Particulars 2011-12 2010-11I. Equity and Liabilities(1) Shareholders Funds :(a) Share Capital 12,00,000 8,00,000(b) Reserves & Surplus 3,50,000 4,00,000(Statement of P/L)(2) Non-current Liabilities:Long term borrowings 4,40,000 3,50,000(3) Current Liabilities:Trade Payables 60,000 50,000Total 20,50,000 16,00,000

II. Assets(1) Non-current Assets:(a) Fixed Assets: 12,00,000

o o o o o

(i) Tangible Assets(2) Current Assets:(a) Inventories M b o o o o i-> o o o o o

(b) Trade Receivables 3,10,000 2,30,000(c) Cash and Cash Equivalents

3,40,000 3,70,000

Total 20,50,00016,00,000

Prepare a Cash Flow Statement after taking into account the following adjustment:(i) The Company paid interest Rs.36,000 on its long term borrowings.(ii) Depreciation charged on tangible fixed assets was Rs.1,20,000. (6)

SAMPLE PAPER 5Class - XII

ACCOUNTANCYTime allowed: 3 hours Maximum Marks: 80General Instructions:

(v) This question paper contains Two parts A& B.(vi) Both the parts are compulsory for all.(vii) All parts of questions should be attempted at one place.(viii) Marks are given at the end of each question.


Q1 Is a sleeping partner liable to the acts of other partners?(e) No(f) Yes(g) Sometimes(h) Only when there is loss

(1)Q2 Goodwill is

(e) Fictitious Asset(f) Current Asset(g) Liquid Asset(h) Intangible Asset

(1)Q3 Vasu and Kumar are partners in a firm sharing profits in the ratio of 3:2. Mrs. Vasu has given a loan

of Rs.20,000 to the firm and the firm also obtained a loan of Rs.10,000 from Kumar. The firm was dissolved and its assets were realised for Rs.25,000. State the order of payment of Mrs. Vasu’s Loan and Kumar’s Loan with reason, if there were no creditors of firm.

(1)Q4 What is the name given to that part of capital of a company which is called up only on Winding up?

(1)Q5 Define Secured Debentures.

(1)Q6 X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. The following was the

Balance Sheet of the firm as on 31st March, 2010 :

Liabilities Amount Assets AmountCapitals: Sundry Assets 40,000X 30,000Y 10,000

40,000 40,000The profits Rs.15,000 for the year ended 31.03.2010 were divided between the partners

without allowing interest on capital @12% p.a. and salary to X Rs.500 per month. During the year, X withdrew Rs.5,000 and Y Rs.10,000.Prepare the necessary adjustment entry and show your working clearly.(3)

Q7 Bhanu Limited obtained a loan of Rs.4,00,000 from HDFC Bank. The company issued 5,000, 9% Debentures of Rs.100 each as a collateral security for the same. Show how these items will be presented in the Balance Sheet of Company.

(3)Q8 VS Limited has 10,000, 12% Debentures of Rs.100 each due for redemption on 31st March, 2011.

Assuming that Debentures are to be redeemed out of profit fully and DRR has a balance of Rs.3,60,000 on that date, give entries at the time of redemption of debentures.

(3)Q9 X, Y and Z were partners in a firm. Their capitals on 1.4.2012 were : X Rs.2,00,000; Y Rs.2,50,000

and Z Rs.3,00,000. The partnership deed provided for the following:(iv) They will share profits in the ratio of 2:3:3.(v) X will be allowed a salary of Rs. 12,000 per annum.(vi) Interest on capital will be allowed @12% p.a.During the year X withdrew Rs.28,000; Y Rs.30,000 and Z Rs.18,000. For the year ended 31.3.2013 the firm earned a profit of Rs.5,00,000.Prepare Profit & Loss Appropriation A/c and Partners Capital A/cs.

(4)Q10 Sunil Limited purchased furniture for Rs.99,000 from Kumar Limited. The payment to Kumar

Limited was made by issued of Equity Shares of Rs.10 each.Give necessary entries when:(iii) Shares were issued at 10% Premium(iv) Shares were issued at 10% discount

(4)Q11 The Balance Sheet of Sindhu, Rahul and Kamlesh, who were sharing profits in the ratio of 3:3:4

respectively, as on 31st March 2012 was as follows:Liabilities Amount Assets Amount

General Reserve 10,000 Cash 32,000Bills Payable 20,000 Stock 88,000Loan 24,000 Investments 94,000Capitals: Land and Buildings 1,20,000Sindhu 1,20,000 Sindhu’s Loan 20,000Rahul 1,00,000Kamlesh 80,000 3,00,000

3,54,000 3,54,000

Sindhu died on 31st July 2012. The partnership deed provided for the following on the death of a partner:

(v) Goodwill of the firm be valued at two year’s purchase of average profits for the last three years which were Rs.80,000.

(vi) Sindhu’s share of profit till the date of his death was to be calculated on the basis of sales. Sales for the year ended 31st March 2012 amounted to Rs.8,00,000 and that from 1st April to 31st July 2012 Rs.3,00,000. The profit for the year ended 31st March 2012 was Rs.2,00,000.

(vii) Interest on capital was to be provided @6% p.a.(viii) According to Sindhu’s will, the executors should donate his share to ‘Matri Chaya-an

orphanage for girls’.

Prepare Sindhu’s Capital A/c to be rendered to his executor. Also identify the value being highlighted in the question.

(6)Q12 On 1st April, 2012, Vishwas Ltd. was formed with an authorised capital of Rs.10,00,000 divided into

1,00,000 equity shares of Rs.10 each. The company issued prospectus inviting applications for 90,000 equity shares. The company received applications for 85,000 equity shares. During the first year, Rs.8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the first call of Rs 2 per share. Shyam’s shares were forfeited after the first call and later on 1,500 of the forfeited shares were re-issued at Rs. 6 per share, Rs.8 called up.Show the following:

Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956. Also prepare ‘Notes to Accounts’ for the same.

(4)Q13 Ram and Mohan are partners in a firm. They admitted Rakhi as a partner without capital for 1/3rd

share in profits of the firm. She is blind by birth but having good management qualities. The new partnership agreement provides for the following:(vi) 10% of the trading profit will be donated to Prime Minister’s Relief Fund.(vii) 5% of the trading profit will be donated to the National Blind Relief Fund.(viii) Products will be sold at a discount of 15% on Maximum Retail price to the people living

below poverty line.(ix) New retail shops will be opened in the Naxal affected areas of the country.(x) New jobs of salespersons will be reserved for the girls belonging to Scheduled Castes and

Scheduled Tribes.The trading profit of the firm for the year ended 31.3.2012 was Rs.10,00,000.Identify any four values considered by Ram, Mohan and Rakhi while preparing the new

partnership deed and prepare the ‘Profit & Loss Appropriation Account’ of Ram, Mohan and Rakhi for the year ended 31.3.2012.

(6)

Q14 Prashant and Rajesh were partners in a firm sharing profits in the ratio of 3 : 2. In spite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Parshant was deputed to realise the assets and to pay the liabilities. He was paid Rs.1,000 as commission for his services. The financial position of the firm on 31st March 2012 was as follows:

Liabilities Amount Assets AmountCreditors 80,000 Building 1,20,000Mrs. Prashant’s Loan 40,000 Investments 30,600Rajesh’s Loan 24,000 Debtors 34,000Investment Fluctuation Fund 8,000 Less : Provision 4,000 30,000Capitals: Bills Receivable 37,400Prashant 42,000 Cash 6,000Rajesh 42,000

84,000Profit and Loss A/c 8,000Goodwill 4,000

2,36,000 2,36,000Following was agreed upon:(viii) Prashant agreed to pay off his wife’s loan.(ix) Debtors realized Rs.24,000.(x) Rajesh took away all investments at Rs.27,000.(xi) Building realized Rs.1,52,000.(xii) Creditors were payable after 2 months. They were paid immediately at 10% discount.(xiii) Bills receivable were settled at a loss of Rs.1,400.(xiv) Realisation expenses amounted to Rs.2,500.

Prepare Realisation A/c, Partners Capital A/c and Cash A/c and identify the value being conveyed . (6)Q15 (a) X Ltd. forfeited 200 shares of Rs.100 each, Rs.70 called up, on which the shareholders had paid

application and allotment money of Rs.50 per share. Out of these, 150 shares were re-issued to Naresh as Rs.70 paid up for Rs.80 per share.(b) Y Ltd. forfeited 180 shares of Rs.10 each, Rs.8 called up, issued at a premium of Rs.2 per share to R for non-payment of allotment money of Rs.5 per share (including premium). Out of these, 160 shares were re-issued to Sanjay as Rs.8 called up for Rs.10 per share fully paid up.(c) Z Ltd. forfeited 30 shares of Rs.100 each issued at a discount of Rs.10 per share for non-payment offirst and final call money of Rs.30 per share. Out of these, 20 shares were re-issued at Rs.30 per share fully paid up.

(8)Q16 The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2 as at March 31, 2007 :

X retired on March 31, 2007 and Y and Z decided to share profits in future in the ratio of 2:3 respectively. The other terms on retirement were as follows :(vi) Goodwill of the firm is to be valued at Rs. 80,000.(vii) Fixed Assets are to be depreciated to Rs. 57,500(viii) Make a provision for doubtful debts at 5% on debtors(ix) A liability for claim, included in creditors for Rs. 10,000, is settled at Rs. 8000.(x) The amount to be paid to X by Y and Z in such a way that their Capitals are proportionate to

their profit sharing ratio and leave a balance of Rs. 15,000 in the Bank Account. Prepare Profit and Loss Adjustment Account and Partners. Capital Accounts.

(8)Part - B

Financial Statement Analysis

Q17 State whether ‘Conversion of debentures into Equity Shares by a Financing Company will result into inflow, outflow or no flow of cash? (1)

Q18 State how qualitative aspects are ignored in financial statement analysis. (1)Q19 Why is Cash Flow Statement Prepared? (1)Q20 List the items which are shown under the heading. ‘Reserves and Surplus’ in the Balance Sheet of a

company as per provisions of Schedule VI, of the Companies Act 1956. (3)Q21 From the following Statement of Profit and Loss of VK Ltd., for the years ended 31st March 2011

and 2012, prepare a Comparative Statement of Profit and Loss. (4) Particulars Note No. 2011 2012Revenue from Operations 6,00,000 7,00,000Other Income 50,000 80,000Purchase of Stock-in-Trade 1,80,000 2,00,000Employees Benefits Expenses 90,000 1,00,000Other Expenses 80,000 80,000


Creditors 50,000 Cash at Bank 40,000Employees. Provident Sundry Debtors 1,00,000Fund 10,000 Stock 80,000Profit & Loss A/c 85,000 Fixed Assets 60,000Capital A/cs :X 40,000Y 62,000Z 33,000 1,35,000

2,80,000 2,80,000

Tax Rate 30% 40%

Q22. Calculate return on investment ratio from the following:Equity Share Capital 16,00,000 Preference Share Capital 4,00,000 General Reserve 7,56,000 10% debentures 16,00,000 Current liabilities 4,00,000 Discount on issue of shares 2,000. Net profit (after interest on debentures but before income tax) 3,20,000 (4)

Q23. Calculate cash flow from operating activities with the following information of Vijay Limited:Particulars 2012 2013Statement of Profit & Loss 50,000 30,000Bills Receivable 26,000 17,000Rent payable 1,600 4,000Prepaid insurance 2,800 2,400Stock 22,000 39,000Creditors 20,000 10,000

Vijay Limited had provided for the following items while arriving at the profit for the year :(v) Depreciation on fixed assets Rs.24,000.(vi) Writing off preliminary expenses Rs.6,000.(vii) Loss on sale of furniture Rs.2,000.(viii) Profit on sale of Machinery Rs.4,000. (6)

SAMPLE PAPER 6ACCOUNTANCY

Class - XIITime allowed: 3 hours Maximum Marks: 80General Instructions:



Q1 Maximum number of partners in case of a banking business can be(ii) 20(iii) 10(iv) 7(v) 50

Q2 Which one is correct in the following options, when there is no partnership deed?(v) No interest on loan will be provided to partner(vi) Interest on drawings will be charged @6% p.a.(vii) Interest on Capital will be 6% p.a.(viii) Profit sharing ratio will be equal

Q3 What is the nature of Revaluation Account?(v) Personal Account

(vi) Real Account(vii) Nominal Account(viii) Statement

Q4 What do you mean by 'Executor’?Q5 Why DRR is not necessary in case of infrastructure firms?Q6 Krishna ,Sandeep and Karim are partners sharing profit in the ratio of 3:2:1.Their fixed capitals are:

Krishna Rs 1,20,000,Sandeep Rs 90,000 and Karim Rs 60,000 .For the year 2013-14.Interest was credited to them @6% p.a instead of 5% p.a .Record adjustment entry.

Q7 Record necessary journal entries for the issue of debentures in each of the following cases:(iv) 27,000,7% debentures of Rs 100 each issued at par redeemable at par.(v) 25,000 7% debentures of Rs 100 each issued at par redeemable at 4% premium.(vi) 35,000 7% debentures of Rs 100 each issued at a discount of 4% and redeemable at a

premium of 5%.Q8 Jain Ltd .purchased Building for Rs 10,00,000 from Gupta Ltd.10% of the payable amount was paid

by a cheque drawn in favor of Gupta Ltd. The balance was paid by issue of Equity shares of Rs 10 each at a discount of 10%. Pass necessary Journal Entries in the books of Jain Ltd.

Q9 On 1st January 2013,Y Ltd has 1000 12% Debentures of Rs 100 each issued at a discount of 5% redeemable at par. The DRR balances on this date is 30,000. They are due for redemption at the end of the year. Pass the necessary Journal entries for redemption of Debentures in lump sum.

Q10 L&M were partners in a firm sharing in the ratio of 3:2.Their fixed capitals on 1.4.2010 were L Rs 1,00,000 and M Rs 2,00,000.They agreed to allow interest on capital @ 12% per annum and to charge on drawing @ 15% per annum. The firm earned a profit, before all above adjustments of Rs 30,000 and Rs 5,000 respectively. Showing your calculations, clearly prepare Profit and Loss Appropriation A/c of L&M .The interest on capital will be allowed even if the firm incurs a loss.

Q11 (a) A,B and C are sharing profit in the ratio 3:2:1 ,C dies on 30 June ,2011.Accounts are closed on 31st March every year. Sales for the year ending 31st March 2011 amounted to Rs 90,00,000.Sales form 1st April 2013 to 30 June 2013 amounted to Rs 36,00,000.The profit for the year ending 31st March 2013 amounted to Rs 4,50,000.Calculate the deceased partner’s share in the current year’s profit.(b) There is no earning members in C’s family and hence it is agreed to take C’s daughter into partnership with 1/10th share of profit. You are required to identify the virtues in making such decision.

Q12 Three charted accountants A, B and C form a partnership firm , profit sharing ratio will be 3:2:1 subject to the following:(iii) C’s Share of profit is guaranteed to be Rs 15,000 p.a. minimum.(iv) B gives the guarantee to the effect that gross fees earned by him for the firm shall be equal to

the the average gross fees of preceding five years, which was Rs 25000.The net profit for the year ended March 31st , 2013 is 75,000.The gross fees earned by B was Rs 16,000.

Show the Profit and Loss Appropriation Account giving the above effects.Q13 On dissolution of a partnership firm of P,Qand R; journalise the following:

(viii) A loan of Rs 50,000 advanced by P ,was paid off along with the interest of Rs 1,000.(ix) Profit &Loss A/C balance of Rs 30,000 appears on the asset side of B/S.(x) Creditors of Rs 50,000 accepted Rs 45,000 in full settlement.(xi) Expenses on Realisation amounting to Rs 1,500 was paid by R(xii) A bill of Rs5,000 received from Mohan, was discounted from the bank; is dishonored due to

insolvency of Mohan. Only 50% was received from his estate.(xiii) An unrecorded asset worth Rs 10,000 was taken by Q for Rs 7,000.

Q14 Pass necessary Journal Entries for the following transactions:(iv) X Ltd purchased its 2000 own debentures of the face value 10,000 from the open market for

immediate cancellation at Rs 95.(v) S Ltd purchased its 8000 own debentures of the face value Rs 200 from the open market for

immediate cancellation at Rs 185.(vi) Z Ltd purchased its 3000 own debentures of the face value Rs 500 from the open market for

immediate cancellation at Rs 275.

Q15 Nikhil and Piyush are partners sharing Profit and loss in the ratio of 3:1. On March 31st 2012 their Balance Sheet was as follows:

Liabilities Amount. Assets AmountCapital Cash 10,200Nikhil 30,000 Bills Receivable 3,000Piyush 16,200 Stock 20,000Creditors 21,000 Debtors 10,000Bills Payable 20,000 Machinery 30,000General Reserve 4,000 Investment 15,000Investment Fluctuation Fund 5,000 Profit &loss A/c 8,000

96,200 96,200

They decided to admit Jatin into the partnership on the following terms(vi) Machinery and stock is to be depreciated by 10%(vii) Outstanding rent is Rs 2,500(viii) Investment to be reduced by 7,500.(ix) Jatin is to bring Rs 5,000 as Goodwill and Rs 10,000 as capital for a 1/5th share.(x) Capitals of partners be made proportionate taking Jatin’s capital as base.

Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet of the new firm.OR

Following is the balance Sheet X , Y, and Z as on 31st March 2004 Who were sharing profit and loss in the ratio of their Capitals.

Liabilities Rs Assets RsCreditors 40,000 Cash 36,000Bills Payable 12,000 Debtors 50,000Provision for doubtful debt 6,000 Stock 36,000General Reserve 24,000 Furniture 60,000Capital Account Machinery 1,00,000X 80,000Y 80,000Z 40,000

2,82,000 2,82,000

Y retires on the above date on the following terms:(v) Provision for doubtful debts raised to Rs 8,000.(vi) Outstanding claim for damages of Rs 2,200 is to be provided.(vii) Creditors be reduced by Rs 12,000(viii) Goodwill of the firm is valued at Rs 40,000.

After the retirement of Y the entire capital of the firm was fixed at Rs 1,80,000 and partners decided to maintain it in their new profit sharing ratio of 3:2. Prepare Revaluation A/c, Capital A/c and Balance sheet of X and Z.

Q16 Geeta Ltd issued 50,000 shares of Rs 10 each payable Rs 3 on application ,Rs 4 on allotment Rs 2 on first call and balance on final call. In all 60,000 application were received. Allotment was done as follows:(iv) To applicants for 10,000 shares-in full(v) To applicants for 20,000 shares-15,000 shares(vi) To applicants for 30,000 shares- 25,000 shares

Every share holder paid the money as and when due , except Sohan who applied for 2000 shares; out of the group applying for 20,000 shares did not paid allotment, first and final call money. His shares were forfeited .1000 of the forfeited shares were reissued for Rs.8 per share as fully paid up .Give Journal Entries.The directors made full allotment to some and prorata allotment to the rest .Which values are highlighted through it?

ORK limited has been registered with an authorized capital of Rs. 2,00,000 divided into 2,000 shares of Rs.100 each of which 1,000 shares were offered for public subscription at a premium of Rs.5 share, payable as under :

On application10On allotment 25 (including premium)On first call 40On final call balance

Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright, the rest of applications were allotted 1,000 shares on pro-rata basis. Excess Application money was transferred to allotment, All the money were duly received except from Sundar, holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at Rs.60 per share, Rs 70 paid up. Final call has not been made. Pass necessary Journal entries in the books of K limited. By rejecting 300 shares, which values are ignored by the management?

PART BANALYSIS OF FINANCIAL STATEMENT

Q17. State one transactions which results in flow of cash.(v) Cash withdrawn from bank(vi) Issue of bonus shares(vii) Purchase of machinery on credit(viii) Purchase of stock for cash

Q18 X Ltd has a Debt equity ratio at 3:1; the management wants to maintain it at 1:1.What are the two choices to do so.(v) Redemption of debentures(vi) Issue of bonus shares(vii) Declaring dividends(viii) Buy- back of shares

Q19 Payment of dividend by a financing company will come under which of the following activity:(v) Operating activity(vi) Financing Activity(vii) Investing activity(viii) None of these

Q20 Prepare a Comparative Income Statement from the following2012 2013

Gross Sales 1,20,200 1,35,800Sales Return 20,200 5,800Cost of goods sold 40% of net sales 50% of net saleOperating Expenses 15,000 14,000Income Tax 50% 50%

Q21 a) Current Ratio of a company is 4:3, working capital is Rs 80000.Calculate the amount of current assets and current liabilities b) Calculate Proprietary Ratio from the following

Closing Stock 60,0009% Preference Shares 4,00,000Security Premium 30,000General Reserve 10,000Other Current Assets 1,10,000Current Liabilities 1,80,000Fixed Assets 3,50,000Operating Expenses 25,000

Q22 a) Mention any two Contingent Liabilities of a Company.b) List two items shown under non-current liabilities of a company.

Q23 From the following Balance Sheet of Sheetal Ltd; prepare the Cash Flow Statement:Particulars Note no 31.3.2012(Rs) 31.3.2013(Rs)1.Equity and Liabilitiesa. Shareholder’s FundEquity Share capital 5,00,000 7,00,000

Reserves and Surplus b. Non-current liabilities

2,00,000 3,50,000

Long term Borrowings c. Current Liabilities

1,00,000 50,000

Trade payables 55,000 52,000Short term Provisions 1 80,000 1,20,000Total 9,35,000 12,72,0002.Assetsa.Non-Current AssetsFixed assetsTangible assets: building 5,00,000 5,00,000Intangible assets :Patents 1,00,000 95,000Non current Investments 1,00,000b. Current AssetsInventories 55,000 1,30,000Trade receivables 80,000 1,47,000Cash and cash equivalents 2,00,000 3,00,000

Total 9,35,000 12,72,000

Particulars 31.3.2012(Rs) 31.32013(Rs)Provision for Tax 30,000 50,000Proposed Dividend 50,000 70,000

Total 80,000 1,20,000Additional Information:-

During the year a Building costing Rs 1,00,000 was purchased. Loss on sale of building is Rs 12,000.Depreciation charged on the building was Rs 18,000.

SAMPLE PAPER 7Class – XII

ACCOUNTANCYTime allowed: 3 hours Maximum Marks: 80

General Instructions:(i) This question paper contains Two parts A& B.(ii) Both the parts are compulsory for all.(iii) All parts of questions should be attempted at one place.(iv) Marks are given at the end of each question.

Part – APartnership, Share Capital and Debentures

Q1 In the absence of any provision in the partnership deed, at what rate is a working partner entitled for remuneration?

(a) Remuneration per month(b) Remuneration @6% p.a. on profit(c) Remuneration per quarter(d) No Remuneration at all (1)

Q2 Unless given otherwise, what will be the ratio of sacrifice of the old partners in the case of admission of a new partner?(a) Old Ratio(b) Sacrificing Ratio(c) Gain Ratio(d) New Ratio (1)

Q3 Charry, Mohan and Ramesh were partners sharing profits in the ratio of 1/2 ; 3/10 ; 1/5. Charry retired from the firm. Calculate the gaining ratio of the remaining partners. (1)

Q4 Identify the purpose of utilising the ‘Security Premium’ that would maximise the return toshareholders. (1)

Q5 What is meant by Debentures issued as collateral security? (1)Q6 Vishal Limited issued 25,000, 10% Debentures of Rs.100 each. Give journal entries in each of the f

ollowing cases when:(i) The debentures were issued at a premium of 20%.(ii) The debentures were issued as a collateral security to Bank against a loan Rs.20,00,000.(iii) The debentures were issued to a supplier of machinery costing Rs.28,00,000 as his full and

final payment. (3)Q7 A and B are partners with capitals of Rs.26,000 and Rs.22,000 respectively. They admit C as a

partner with 1/4th share in profits of the fir. C brings Rs.26,000 as his share of capital. Give journal entry to record goodwill on C’s admission.

(3)Q8 Gourav Limited purchased its own debentures of Rs.100 each of the face value of Rs.20,000 from

the open market for cancellation at Rs.92. Record necessary journal entries. (3)Q9 Pass necessary journal entries for the following:

On 1.4.2004, Sourav Limited received in advance the final call of Rs.3 per share on 15,000 equity shares. The final call was due on 15.6.2004. Record necessary entries and transfer the advance to final call accounts by opening calls in advance account.

Q10 Vijay Limited purchased Furniture costing Rs.1,35,000 from AB Limited. The payment wasmade by issue of Equity Shares of Rs.10 each at a discount of Rs.1 per share. Pass necessary journal entries in the books of Vijay Limited.

(4)Q11 Vinu and Mohan were partners in a firm sharing profits in the ratio of 5:3. Their fixed capitals as

on 1.4.2010 were : Vinu Rs.60,000 and Mohan Rs.80,000. They agreed to allow interest on capital @12% p.a. and to charge on drawings @ 15% p.a. The profit of the firm for the year ended 31.3.2011 before all above adjustments were Rs.12,600. The drawings made by Vinu were Rs.2,000 and by Arora Rs.4,000 during the year. Prepare Profit and Loss Appropriation account of Vinu and Mohan when interest on capital will be allowed even if the firm incurs loss. They have also decided to donate some amount every year for the Cancer patients. Identify the values disclosed by the partners. (6)

Q12 Priya, Riya and Siya are partners sharing profits in the ratio of 4:3:1 respectively. It is provided in the partnership deed that on the death of any partner, her share of goodwill was to be valued at half of the profits credited to her account during the four previous completed years. Riya died on 1st January 2012. The firm’s profits for the last four years were : 2008 Rs.1,20,000, 2009 Rs.80,000, 2010 Rs.40,000 and 2011 Rs.80,000. Determine the amount that should be credited to Riya in respect of her share of goodwill. On the date of Riya’s death, one of the old debtors whose account was closed last year by transferring his debt amounting to Rs.8,000 to bad debts account, has now promised to pay the amount fully.Pass necessary journal entries at the time of Riya’s death.

(4)Q13 The authorized capital of XYZ Ltd. is Rs.20,00,000 divided into 2,00,000 equity share of Rs.10 each.

Out of these company issued 1,00,000 equity shares of '10 each. The amount is payable as follows:On application Rs.2 On allotment Rs.5 On Final call Rs.3The public applied for 90,000 equity shares and all the money was duly received.You are required to:Show share capital in the Balance Sheet of the company as at 31st March 2013, and Prepare ‘Notes to Accounts’ for the same (4)

Q14 A, B and C were partners in a firm. They had no partnership deed. They had been in business for 4years and their profit or loss for this period was: year ending March 2004 Rs.39,000, March 2005 Rs.54,000, March 2006 Rs.18,000 (loss) and March 2007 Rs.75,000. During the year 2007-08, they agreed to share profits and losses in the ratio of 2:2:1 with retrospective effect from the year 2003-04. It was also decided that an interest (charge) of 5% p.a. was to be provided on capitals (fixed). Their capitals were Rs.80,000, Rs.60,000 and Rs.60,000 respectively. Pass a single adjustment entry to adjust the capital accounts of the partners. After the flood in Uttarakhand, all partners decided to help the flood victims personally. State two values which the partners wanted to communicate to the society. (6)

Q15 X, Y and Z were partners sharing profits in the ratio of 2:2:1. The Balance Sheet on 31st March, 2010, when they dissolved the firm was as follows:

Liabilities (Rs.) Assets (Rs.)

Bank Loan 11,500 Other Sundry Assets 1,17,000Creditors 16,000 Furniture 11,000Profit and Loss A/c 20,000 Customers 1,24,200Contingency Reserve 5,000 Less : Provision 1,200 1,23,000Capitals: Stock 17,800X 1,27,500 Cash 13,200Y 1,10,000 Advertisement Suspense 20,000Z 17,000 2,54,500 Preliminary Expenses 5,000

3,07,000 3,07,000

It was agreed that :(i) X to take over furniture at Rs.8,000 and debtors amounting to Rs.1,20,000 at Rs.1,17,200

and the creditors of Rs.16,000 were to be paid by him at this figure.(ii) Y is to take over all stock for Rs.17,000 and some sundry assets at Rs.72,000 (being 10%

less than the book value)(iii) Z to take over remaining sundry assets at 80% of the book value and assume the

responsibility of discharge of loan together with accrued interest of Rs.2,300.(iv) The expenses of realization were Rs.2,700. The remaining debtors were sold to a debt

collecting agency at 50% of the value. Prepare necessary accounts to close the books of the firm. (6)

Q16 The balance sheet of Madan and Mohan who share profits and losses in the ratio of 3 : 2 on 31.3.2010 was as follow:


Sundry Creditors 28,000 Cash at Bank 10,000Workmen’s Compensation Fund 12,000 Debtors 65,000General Reserve 20,000 Less : Provision 5.000 60,000Investment Fluctuation Fund Stock 30,000Capitals : Madan 60,000 Investments 50,000Mohan 40,000 1,00,000 Patents 10,000

1,60,000 1,60,000

They decided to admit Gopal on 1.4.2010 for 1/4th share on the following terms:(a) Gopal shall bring Rs.20,000 as his share of premium of goodwill.(b) The unaccounted accrued income of Rs.1,000 be provided for.(c) The market value of investment was Rs.45,000.(d) A debtor whose dues of Rs.5,000 were written off as bad debts, paid Rs.4,000 in full settlement.(e) A claim of Rs.3,000 on account of workmen compensation to be provided for.(f) Patents are overvalued by Rs.2,000.(g) Gopal to bring in capital equal to 1/4th of the total capital of the firm after all adjustments.Prepare Revaluation A/c, Partners Capital A/c and Balance sheet of new firm. (8)

Q17 Vinod Limited invited applications for issuing 2,00,000 Equity shares of Rs.100 each at a premium of Rs.60 per share. The amount was payable as follows:On application Rs.30 per share (including premium Rs.10)On allotment Rs.70 per share (including premium Rs.50)On first and final call the balance amount.Applications for 1,90,000 shares were received. Shares were allotted to all the applicants and the Company received all money due on allotment except Sharma who had been allotted 1,000 shares, and his shares were immediately forfeited. Afterwards first and final call was made. Verma did not pay the first and final call on his 2,000 allotted shares. His shares were also forfeited. 50% of the forfeited shares of both Sharma and Verma were reissued for Rs.90 per share fully paid up.

Pass necessary journal entries. (8)Part - B

Financial Statement AnalysisQ18 Give any two transactions which result into inflow of cash. (1)Q19 Give one difference between an operating activity and an investing activity. (1)Q20 How window dressing is a limitation of financial statement analysis. (1)Q21 Give major heads and sub heads under which following items will be disclosed in the Balance Sheet

as per Revised Schedule VI of the Companies Act, 1956: (3) (i) Licenses and Franchise (iv) Vehicles(ii) Live Stock (v) Plant and Machinery(iii) Stock in trade (vi) Investment in Mutual Funds

Q21. From the following statement of profit and loss of VK Limited for the years ended 31st March 2011 and

2012.


Q22. Current Ratio of a company is 2:1. State which of the following would improve, reduce or not change the ratio:(a) Repayment of a current liability(b) Purchasing goods on credit(c) Sale of motor vehicles at a profit of 10%(d) Sale of goods at a profit of 10%(e) Payment of dividend(f) Redemption of debentures at a premium (4)

Q23. From the following Balance Sheets of Vinod Limited prepare Cash Flow Statement : Particulars Note No. 31-3-2013 31-3-2012I. EQUITY AND LIABILITIES :1. Shareholder’s Funds:(a) Share Capital 3,00,000 2,00,000(b) Reserve and Surplus 1 (5,000) 35,0002. Non-current LiabilitiesLong Term Borrowings : 12% Debentures 1,20,000 1,40,0003. Current Liabilities 45,000 15,000Total 4,60,000 3,90,000II. ASSETS:1. Non-Current Assets:Fixed Assets:Tangible Assets 2,00,000 1,70,000Investments 1,05,000 1,05,000Other Non-current Assets : Discount on debentures 5,0002. Current AssetsTrade Receivables 1,20,000 80,000Other Current Assets: Discount on debentures 5,000 10,000Cash and Cash Equivalents 30,000 20,000

Total 4,60,000 3,90,000

Particulars 31 March 2011 31 March 2012Revenue from operations Other incomeExpensesTax Rate

500% of other income120 % of expenses3,00,00040%

500% of other income120 % of expenses5,00,00050%

Notes to AccountsParticulars 2013 20121. Reserves and SurplusGeneral ReserveStatement of P/L

10,000(15,000) 35,000

Additional Information:(a) Debentures were redeemed on 1st April, 2012.(b) During the year a machine included in fixed assets costing Rs.60,000 was purchased and anothermachine having book value of Rs.18,000 was sold at a loss of Rs.2,000. (6)



1. This question paper contains Two parts A& B.2. Both the parts are compulsory for all.3. All parts of questions should be attempted at one place.4. Marks are given at the end of each question.


Q1 If the partnership agreement is silent as to Interest on capital(i) No interest on capital is allowed(ii) 6% interest on capital is allowed(iii) 5% interest on capital is allowed(iv) 2% interest on capital is allowed

(1)Q2 Credit balance of Current Account is shown in which side of Balance sheet:

(i) Liabilities side(ii) Assets side(iii) Both the side(iv) None of these side

(1)Q3 What is meant by Reserve Capital?

(1)Q4 State any two provisions of the Companies Act, 1956 for the issue of shares at a discount.

(1)Q5 Company pays interest at a fixed rate on debentures. At what rate interest will be Payable on the

debentures issued as collateral security?(1)

Q6 X, Y and Z are partners their profit sharing ratio is 3:2:1. After the final accounts have beenprepared, it was discovered that interest on drawings @5% p.a. had not been taken into consideration. The drawings of the partners were amounted to X Rs.30,000; Y Rs.25,200; Z

Rs.24,000. Pass necessary adjusting entry.(3)

Q7 Ajay Limited had a balance of Rs.55,00,000 in its Statement of Profit & Loss. Instead of declaringdividend it decided to redeem its Rs.50,00,000, 8% debentures at a premium of 10% out of profits. Pass the necessary journal entries for the redemption of debentures.

(3)Q8 Faroz Limited purchased Machinery worth Rs.5,00,000 from Punjab Limited. 20% of the amount

was paid by accepting a Bill of Exchange in favour of Punjab Limited and the balance was paid issuing 11%. Debentures of Rs.100 each at a premium of 25%. Give necessary journal entries.

(3)Q9 Vijay, Lalu and Mohit entered into partnership on 1st January 2011 to share profits in the ratio of

3:1:1. It was provided in the deed that Mohit’s share of profit will not be less than Rs.25,000 per annum and Vijay will be allowed a salary of Rs.10,000 per annum. The losses of the firm for the year ended 31st December 2011 were Rs.1,00,000 before allowing salary to Vijay. Prepare Profit & Loss Appropriation Account. (4)

Q10 The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5:3:2 as at March 31, 2013:Liabilities Amount Assets AmountCreditors 50,000 Plant & Machinery 60,000Employees’ Provident Fund 10,000 Inventory 80,000Profit & Loss A/c 85,000 Sundry Debtors 1,00,000Retained Earnings 10,000 Cash at Bank 40,000Capitals: X 40,000 Deferred Revenue Exp. 10,000Y 62,000Z 33,000 1,35,000

2,90,000 2,90,000

X retired on March 31, 2013 and Y and Z decided to share profits in future in the ratio of 2:3 respectively. The other terms on retirement were as follows:(i) Goodwill of the firm is to be valued at Rs.80,000.(ii) Plant & Machinery is to be depreciated to Rs.57,500.(iii) Make a provision for doubtful debts at 5% on debtors.(iv) A liability for claim, included in creditors for Rs.10,000, is settled at Rs.8,000.(v) The amount to be paid to X by Y and Z in such a way that their capitals are proportionate to

their profit sharing ratio and leave a balance of Rs.15,000 in the Bank A/c.Prepare P/L Adjustment A/c and Partners Capital Accounts.(6)

Q11 Ashok Limited issued 80,000 shares of Rs.10 each payable as Rs.2 per share on application, Rs.4 on allotment and the balance in two equal instalments.Applications were received for 1,60,000 shares and the allotment was made as:Applicants of 1,00,000 sharesAllotted 60,000 shares.Applicants of 60,000 shares Allotted 20,000 shares.Govind, to whom 1,200 shares were allotted from category (a), failed to pay the allotment money.Give necessary journal entries upto allotment only.(4)

Q12 Usha Limited has an authorised capital of Rs.25,00,000 divided into Equity Shares of Rs.100 each.The company offered to the public for 1,25,000 shares. Applications received for only 1,00,000 shares. Company had made allotment and calls and duly received except the final call of Rs.20 per shares on 2,000 shares. 600 of these shares on which final call was not received by the company were forfeited. Prepare a Balance Sheet of the Company showing Share Capital as per Revised Schedule VI of the Indian Companies Act, 1956.

(4)

Q13 Ravi and Shubh were partners in a firm sharing profits in the ratio of 3:2. On 1.1.2008 their fixed capitals were Rs.1,00,000 and Rs.1,50,000 respectively. On 31.3.2008, they decided that their total capital (fixed) should be Rs.3,00,000 in their profit sharing ratio. Accordingly they introduced or withdrew the necessary capital. The partnership deed provided the following:(i) Interest on capital @12% and interest on drawings @18% p.a.(ii) Monthly salary to Ravi @Rs.2,000 per month and to Shubh @ Rs.3,000 per month.(iii) The drawings of Ravi and Shubh during the year were as follows:

Date Vinod Shubh1, July 10,000 12,00030th September 15,000 12,000

The profit earned by the firm for the year ended 31.12.2012 was Rs.2,00,000. 10% of this profit was to be kept in a reserve. You are required to prepare P/L Appropriation A/c and Capital and Current Accounts of partners.

(6)

Q14 N, S and M were partners sharing profits and losses in the ratio of 5:3:2.Their Balance Sheet as on December 31, 2011 was as follows :

Liabilities Amount(Rs.)

Assets Amount(Rs.)

Creditors 14,000 Investments 10,000Reserve Funds 6,000 Goodwill 5,000Capital Accounts : Premises 20,000Nithya 30,000 Patents 6,000Sathya 30,000 Machinery 30,000Mithya 20,000 80,000 Stock 13,000

Debtors 8,000Bank 8,000

1,00,000 1,00,000

M dies on 1.5.2012. The agreement between the executors of Mithya and the partners stated that:(i) Goodwill of the firm be valued at 2 '/2 times the average profits of last four years. The profits

of four years were : 2008 Rs. 13,000, 2009 Rs. 12,000, 2010 Rs. 16,000 and 2011 Rs. 15,000.(ii) The Patents are to be valued at Rs, 8,000, Machinery at Rs. 25,000 and Premises Rs.25,000.(iii) The share of profit of Mithya should be calculated on the basis of the profit of 2011.(iv) Rs. 1,000 should be paid immediately and the balance should be paid in 4 equal half-yearly

instalments carrying interest @ 10%.(v) Executor of M has decided to donate 30% of the total amount for the education of girls

belongs to deprived and financially weak section of the society.(vi) Record the necessary journal entries to give effect to the above and write the executor’s

account till the amount is fully paid. Also prepare the balance sheet of N and S as it would appear on 1.5.2012 after giving effect to the adjustments.

(6)Q15 Sheetal Limited invited applications for 10,000 shares at Rs.10 each, at a premium of Rs.4 payable

at: On Application Rs.4 (including premium Rs. 1 per share)On Allotment Rs.5 (Including premium of Rs.3 per share)On 1st Call Rs.3 Balance on Final CallApplications were received for 20,000 shares and pro-rata allotment was made to the applicants of 16,000 shares. Excess application money is to be adjusted towards allotment money only. Mohan who applied for 1,600 share did not pay allotment money and her shares were forfeited after allotment. Sohan did not pay 1st Call and final call on 400 shares and her shares were forfeited after the final call. Out of the forfeited shares 600 shares of Mohan and 300 shares of Sohan were reissued to Mr. David at fully paid up Rs.9. Give necessary journal entries.

(8)

Q16 The following was the Balance Sheet of A, B and C sharing profits in the ratio of 6:5:3 respectively:Liabilities Amount Assets Amount

(Rs.) (Rs.)Creditors 13,900 Land and Building 50,400E.P.F 11,300 Furniture 7,350Profit & Loss A/c 14,000 Stock 29,400Capital Accounts : Debtors 26,460A 38,900 Cash 1,890B 33,600 C’s Current Account 13,000C 17,800 90,300 Preliminary Expenses 28,000Current Accounts :A 15,000B 12,000 27,000

1,56,500 1,56,500

They agreed to take D into partnership a physically challenged person by giving 1/8 th share on following terms:(i) That D should bring Rs. 14,700 as capital.(ii) Furniture depreciated by Rs.920 and Stock by 10%.(iii) A reserve of Rs.1,320 be made for outstanding repairs bill.(iv) Land and Building appreciated by Rs.14,700.(v) Goodwill of the firm was Rs. 11,200.(vi) Capitals of partners will be adjusted on the basis of D’s Capital and difference if any will be

adjusted through cash account.Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet. Also identify the values disclosed by the old partners.

(8)


Q17 State how ‘Window Dressing’ is the limitation of Financial Statement Analysis.(1)

Q18 Interest paid by a manufacturing company is classified under which kind of activity while preparing a Cash Flow Statement?

(1)Q19 What is meant by the term Cash Equivalents as per AS-3?

(1)Q20 Give major heads and sub heads under which following items will be disclosed in the Balance Sheet

(3)Q21 From the following information, prepare Comparative Statement of Profit & Loss: (4)

Particulars 2012 2013Revenue from OperationsOther incomeCost of Material ConsumedOther ExpensesTax

500% of other income40,00060% of Revenue from operations2 % % of Cost of Material Consumed

500% of other income50,00050% of Revenue from operations2 % % of Cost of Material Consumed

(a) Proposed Dividend (d) Live Stock(b) Premium on Redemption of (e) Bank OverdraftDebentures (f) Outstanding Expenses(c) Licenses and Franchise

Q22 (a) Net Credit Sales of Vinod Limited during the year were Rs.4,50,000. If Debtors Turnover Ratio is 4 Times, calculate the debtors in the beginning and at the end of the year. you are informed that closing debtors are two times in comparison to opening debtors.(b) Opening Inventory Rs.50,000; Inventory Turnover Ratio 4 Times; Gross Profit 20% of Sales (Revenue from operation). Closing Inventory was two times in comparison of Opening Inventory. Find out the amount of sales (Revenue from operations).

(4)Q23 From the Balance Sheets and information given below prepare Cash Flow Statement:

(6)Particulars Note 31st March 31st March

No. 2005 (Rs.) 2006 (Rs.)I. Equity and LiabilitiesShareholders’ Funds (a) Share CapitalNon-current Liabilities 1,25,000 1,53,000

Long-term Borrowings : Mortgage Loan3. Current Liabilities

65,000 50,000

(a) Trade Payables (Creditors) 40,000 44,000Total 2,30,000 2,30,000

II Assets1. Non-current Assets(a) Fixed Assets:(i) Tangible Assets 1 1,55,000 1,65,0002. Current Assets(a) Inventories 35,000 25,000(b) Trade Receivables (Debtors) 30,000 50,000(b) Cash and Cash Equivalents 10,000 7,000Total 2,30,000 2,30,000

Notes to Accounts1. Tangible Assets 31st March 2005 31st March 2006Land 40,000 50,000Machinery 80,000 55,000Building 35,000 60,000

During the year Machine Costing Rs.10,000 (Accumulated Depreciation Rs.3,000) was sold for Rs.5,000. The provision for depreciation against Machinery as on 31st March 2005 and on 31st March 2006 wereRs.25,000 and Rs.40,000 respectively. Net Profit for the year amounting to Rs.4,500.





Q1 If a partner advances some loan to the firm, he is entitled for interest on loan. Do you think he will get interest on such loan if there is loss in the firm?

(1)(i) Interest on loan will be paid whether there is profit or loss(ii) Interest on loan will be paid only if there is some profit(iii) No interest on loan will be paid in case of loss(iv) Interest on loan is paid @6% p.a. when there is loss

Q2 State two financial rights acquired by a new partner.(i) Right to share future profits and assets of the firm(ii) Right to share old profits and assets of the firm(iii) Right to share old reserves and goodwill of the firm(iv) Right to share future profits and old reserves

(1)

Q3 X and Y are partners with Rs. 1,50,000 and Rs.1,00,000 as their respective capitals. They admittedZ as a new partner for 1/6th share in profits. What will be his share of capital if he has to bring capital in proportion to his profit sharing ratio.

(1)Q4 Vinod Limited invited applications for 20,000 shares of Rs.10 each. Applications were Received for

25,000 shares. Name the kind of Subscription.Give three alternatives for allotting shares.(1)

Q5 What i s meant by Debenture?(1)

Q6 Following is the extract of the Balance Sheet of, Blue and Red as on March 31, 2007:Liabilities Amount Assets AmountCurrent Accounts :Blue 1,00,000Red 1,00,000 2,00,000

Sundry Assets 30,00,000

Capital Accounts :Blue 10,00,000Red 10,00,000P/L Appropriation (31.3.07)

20,00,0008,00,00030,00,000 30,00,000

During the year Red’s drawings were Rs.30,000. Profits during 2007 is Rs. 10,00,000.Calculate interest on capital @ 5% per annum for the year ending March31, 2007.(3)

Q7 Explain dissolution of a firm by (i) Agreement and (ii) Notice.(3)

Q8 What entries would be passed for the following transactions on the dissolution of a firm, if Sundry Assets and Outer Liabilities have already been transferred to Realisation A/c.(i) There was an unrecorded Asset of Rs.5,000 which was taken over by C at Rs.4,000.(ii) Stock worth Rs.7,000 was taken over by partner B.(iii) Workmen’s Compensation paid to employees by the firm Rs.8,000.(iv) Sundry Creditors amounted to Rs.4,000 were paid off at a discount of 4%.(v) There was a debit balance of Profit & Loss Account in the firm.(vi) Loss on Realisation was Rs.36,000 to be distributed among the partners in 3:2:1 ratio.

(3)

Q9 A Partnership firm earned net profits during the last three years as follows:Year 2008 Rs.38,000; Year 2009 Rs.44,000; Year 2010 Rs.50,000.The Capital Employed in the firm throughout the above mentioned period has been Rs.80,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital. The remuneration of all the partners during the period is estimated to be Rs.20,000 per annum. Calculate goodwill on the basis of two years purchase of (a) super profits. (b) Capitalisation Method

(4)Q10 A, B and C are partners in a trading firm. The firm has a fixed total capital of Rs.60,000 held equally

by all the partners. Under the partnership deed the partners were entitled to:A and B to a Salary of Rs.1,800 and Rs.1,600 per month respectively.In the event of death of a partner, goodwill was to be valued at 2 years purchase of the average profits of the last 3 years.Profit upto the date of death based on the profits of the previous year.

Partners were to be charged interest on drawings at 5% p.a. and allowed interest on capitals at 6% per annum.B died on January 1st, 2011. His drawings to the date of death were Rs.2,000 and interest there on was Rs.60. The profits for the three years ending March 31st 2008 Rs.21,200; 2009 Rs.3,200 (Dr.); and in 2010 Rs.9,000 respectively.

Prepare B’s Capital A/c to calculate the amount to be paid to his executors.(6)

Q11 (a) Ranbaxy Limited purchased a machinery worth Rs.5,00,000 from Laborate Pharmaceutical. Rs.2,75,000 was paid by issue of 9% Preference Shares of Rs.100 each at a premium of 10%. The balance was paid by cheque. Give necessary entries.

On 1.1.2014 Govardhan Limited received in advance the first call of Rs.2 per share on 10,000 equity shares. The first call was made due on 15.2.2014. journalise the transaction and transfer the advance to first call account by opening a calls in advance account.

(4)Q12 Registered capital of Sunshine Limited is Rs.5,00,000 divided in 50,000 Equity Shares of Rs.10

each. Out of these 50,000 shares, company issued 10,000 shares to Luxmi Machines Limited as fully paid as purchase consideration for a Machinery acquired. Remaining 40,000 shares were offered to the public but applications were received for 36,000 shares only, full allotment was made to the applicants. Company called Rs.6 per share and received the entire amount except a call of Rs.3 per share on 6,000 shares.How would you show the relevant items in the Company’s Balance Sheet?

(4)Q13 Himanshu and Jayant were partners in a firm sharing profits in the ratio of 3:2. Their fixed capitals

on 1-4-2013 were : Himanshu Rs.6,00,000 and Jayant Rs.12,00,000. They agreed to allow interest on capitals @12% per annum and to charge on drawings @15% per annum. Himanshu will get a commission of Rs.10,000 after charging interest on capital (if any profit available). The firm earned a profit, before all above adjustments, Rs.1,80,000 for the year ended 31.3.2014. The drawings of Himanshu and Jayant were Rs.18,000 and Rs.30,000 respectively. Prepare P/L Appropriation Account if interest on capital is treated as a charge and will be allowed even if the firm incurs a loss.

(6)Q14 On January 1, 2004, Vinod Limited company made an issue of 1,000, 6% debentures of Rs.1,000

each at Rs.960 per debenture. The terms of issue provided for the redemption of 200 debentures every year starting from the end of 2005 either by purchase or draw of lot at par at the company’s option. Discount was written off in the same year against the available profit balance. On 31.12.2005 the company purchased for cancellation, debentures of the face value of Rs.80,000 at Rs.9.50 per debenture and of the face value of Rs.1,20,000 at Rs.900 per debenture.Journalise the above transactions i.e. issue, redemption, profit on cancellation and discount written off etc.

(6)Q15 Rainbow Limited issued prospectus inviting applications of 4,000 Equity Shares of Rs.10 each at a

premium of Rs.4 per share payable as follows:On Applications Rs.2 ; On Allotment Rs.7 (including premium);First call Rs.3 and Second Call Rs.2 per share.

Applications were received for 6,000 shares and allotment made on pro-rata basis to the applicants for 4,800 shares, the remaining applications being refused. Money received in excess on Applications was adjusted towards allotment.

Mr. M to whom 80 Shares were allotted failed to pay the allotment and first call money so his shares were forfeited.Mr. N the holder of 120 shares, failed to pay two calls. So his shares were forfeited.

Of the shares forfeited 160 shares were reissued to Mr.SK credited as fully paid up for Rs.8 per share. The whole share of Mr. M included. Give journal entries.

(8)OR

Vivek Limited invited applications for 10,000 shares of Rs.100 each at 10% premium included in the allotment money. Applications were received for 18,000 shares of which applications of 3,000 shares were rejected and their money was returned. Rest of the applicants were issued shares at pro-rata basis and their excess money was adjusted towards allotment. The money was called as follows:On Applications Rs.30; Allotment Rs.30; 1st Call Rs.30; 2nd Call Rs.20.

Mr. David, a holder of 300 shares paid only the application money and Mr. Robert, a holder of 600 shares paid up to the first call money. All the calls were made and the payment received

except that in case of Mr. David and Mr. Robert. Their shares were forfeited after the 2nd Call and reissued at 15% discount. Pass necessary journal entries.

Q16. The Balance Sheet of Mohan and Sohan carrying on business in partnership and sharing profits in proportion of 2/3rd and 1/3 rd respectively, stood as follows:

Liabilities Amount(Rs.)

Assets Amount(Rs.)

Creditors 10,300 Machinery 50,000Reserve Funds 1,500 Furniture 3,000Capital Accounts : Debtors 18,000Mohan 51,450 Stock 27,000Sohan 36,750 88,200 Cash 2,000

1,00,000 1,00,000They admitted Kapil physical challenged person but expert in management, into partnership

giving him 1/5th share of profits on the following terms:(i) The goodwill of the firm is to be valued at two years profits calculated on the average of the

1st three years profits, which amounted to Rs.20,000; Rs.15,000 and Rs.22,000.(ii) Kapil is to bring in cash for the amount of his share of goodwill.(iii) Kapil is to bring in capital in proportion to her profit sharing arrangement with other partners.Give necessary journal entries and Balance Sheet also identify the values involved in the question.

(8) OR

A, B and C are equal partners in a firm, whose balance sheet as at 31st March 2013 was as follow:Liabilities Amount Assets AmountCreditors 4,000Cash at Bank 6,400Bills Payable 3,000Debtors 9,000General Reserve 3,000Stock 10,600Capitals : Furniture 2,000A 8,000B 6,000C 4,000 18,000

28,000 28,000B retired on the above date and the following was agreed upon:(i) To reduce stock and furniture by 5% and 10% respectively.(ii) To provide for doubtful debts at 5% on debtors.(iii) Rent outstanding was Rs.260.(iv) Goodwill was valued at Rs.4,200.(v) A and C decided: To share profits and losses in 5:3 respectively. Not to show goodwill in the books. To readjust their capital in their new profit sharing ratio. To bring in sufficient cash to pay off B immediately and to leave a balance of Rs.1,000 in the

Bank. Provided B’s Payment.

Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet.


Q17Why investors and Bankers are interested in financial analysis? (1)

Q18 State with reason whether Goodwill amortised would result in inflow, outflow or no flow of cashor cash equivalents. (1)

Q19 How would you record increase in provision for doubtful debts while preparing Cash Flow Statement?

(1)Q20 Give complete proforma of Balance Sheet as per Revised Schedule VI. (3)Q21 Prepare a ‘Comparative Balance Sheet’ with the help of following information: (4)

Particulars NoteNo.

31st March 2012

31st March 2013

I. EQUITY AND LIABILITIES

15,00,0000000002,00,000

20,00,0003,00,000000000

Shareholders’ FundsShare capital : Equity Share CapitalReserve and Surplus : (Statement of P/L)Non-current LiabilitiesLong term borrowings : 11% Bank LoanCurrent LiabilitiesTrade payables : Creditors

Total 27,00,000 35,00,000

II. Assets

15.0. 000 6,00,000

4.0. 0002.0. 000

20,00,000

9,00,000

3,00,000

3,00,000

(1) Non-Current AssetsFixed Assets

(a)Tangible Assets : Plant & Machinery(b) Intangible Asset : Goodwill

(2) Current Assets(a) Inventories : Stock(b)Cash and Cash Equivalents : Cash and Bank Balance

Total 27,00,000 35,00,000

Q22 Read the following carefully and give treatment(i) The Stock Turnover Ratio of a company is 3 Times. State giving reasons, whether the ratio

improves, declines or does not change because of increase in the value of closing inventory by Rs.5,000.

(ii) The Current Ratio of a Company is 3:1. State with reasons whether the payment of Rs.20,000 to the creditors will increase, decrease or not change the ratio.

(iii) The Debt Equity Ratio of a company is 0.8:1 State whether the long term loan obtained by thecompany will improve, decrease or not change the ratio. (4)

Q23 Calculate Cash flows from operating activities from the following information: (6)Profit for the year 2003-04 Rs.50,000Transfer to General Reserve During the year Rs.10,000Depreciation provided during the year Rs.20,000Profit on sale of Furniture Rs.5,000Loss on sale of Machine Rs.10,000Preliminary expenses written off during the year Rs. 10,000

Particulars 31.3.03 31.3.04Debtors 10,000 15,000Bills Receivables 7,000 5,000Stock 15,000 18,000Prepaid Expenses 2,000 3,000Creditors 20,000 18,000Bills Payable 15,000 25,000Outstanding Expenses 3,000 4,000

Q1 Why is it necessary to have partnership deed?(i) To settle the dispute among the partners(ii) To share the profits equally(iii) To admit the new partner(iv) To retire a partner from the firm (1)

Q2 State any two circumstances in which sacrificing ratio may be applied.(i) When there is change in existing ratio and when new partner is admitted(ii) When new partner is admitted and when there is no goodwill given in old B/s(iii) When a partner retires and when calculating profit for a deceased partner(iv) Only in case of admission of a partner (1)

Q3 A and B are partners in a firm having no partnership deed. X desires that Y should not participate in the conduct of firm’s business but Y does not agree to this.State giving reason who is correct in this case. (1)

Q4 Debenture Account is a(i) Personal Account(ii) Real Account(iii) Nominal Account(iv) Temporary Account (1)

Q5 How will you show amount of calls in arrear and calls in advance in Balance Sheet? (1)Q6 Kavita and Simran are partners sharing profits and losses in the ratio of 1 : 1. Kavita is a non-

working partner , and contributes Rs.60,000 as his capital. Simran is a working partner and agreed to work (overtime) for the firm. The partnership deed provides for interest on capital @10% p.a. and Salary to every working partner @ Rs.3,000 p.a. The profit of the firm before charging anything was Rs.6,000. Prepare P/L Appropriation A/c.

(3)Q7 X Ltd. purchased its own debentures of Rs.100 each of the face value of Rs.20,000 from the open

market for cancellation at Rs.92. Record necessary journal entries. (3)Q8 X Limited decided to redeem Rs.25,000, 12% Debentures. It purchased Rs.20,000 debentures in the

open market at Rs.98.50 each, the expenses being Rs.100 and redeemed the balance of Rs.5,000 debentures by draw of lots. Journalise.

(3)Q9 A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. On 31st December 2006 their

Balance Sheet was as follows:Liabilities Amount Assets AmountCreditors 65,000 Cash 22,500Bills Payable 20,000 Debtors 52,300Provident Fund 12,000 Stock 36,000Investment Fluctuation Fund 6,000 Investment 15,000Advance Commission 8,000 Plant 91,200Capitals : Profit & Loss A/c 54,000A 80,000B 50,000C 30,000 1,60,000

2,71,000 2,71,000

On this date the firm was dissolved. A was appointed to realise the assets. A was to5% commission on the sale of assets (except cash) and was to bear all expenses of realisation.(i) A realised assets as follows:

Debtors Rs.30,000; Stock Rs.26,000; Investment 75% of book value; Plant Rs.42,750. Expenses of realisation were Rs.4,100.

(ii) Commission received in advance was returned to the customers after deducting Rs.3,000. Firm had to pay Rs.7,200 for outstanding salary not provided for earlier. Compensation paid to employees amounted to Rs.9,800. This liability was not provided for in the above balance sheet Rs.2,500 and to be paid for provident fund.

Prepare Realisation A/c, Partners Capital A/cs and Cash A/c. (6)

Q10 Smith and Steve are partners in a firm. The partnership agreement provided that interest on drawings was to be charged @ 6 % per annum. Smith had withdrawn the following amounts during the year ended 31 December 2010:Rs.30,000 Rs.20,000 Rs.40,000 Rs.15,000 Rs.25,000 Calculate interest Smith’s Drawings on. (4)

Q11 Akhil, Nikhil and Sunil are partners sharing profits and losses equally. Their Balance Sheet as on 31st

December 2012 was as follows:Liabilities Amount Assets AmountCreditors 4,000Buildings 20,000General Reserve 4,500Plant and Machinery 8,000Capitals : Stock 3,500Akhil 19,500 Sundry Debtors 8,000Nikhil 12,000 Cash at Bank 8,500Sunil 8,000 39,500

48,000 48,,000Sunil died on 1st May 1993. Their partnership deed provided that the executor of a deceased partner was entitled to:(i) Balance of partner’s capital account and his share of General Reserve.(ii) Share of goodwill calculated on the basis of three times the average profits of the last four

years.(iii) Share of profit from the closure of the last accounting year till the date of death on the basis

of the profit of the preceding completed year before death.(iv) Interest on capital @6% per annum.(v) Rs.5,000 was to be paid to the deceased partner’s executor immediately and the balance to be

kept in his loan account.(vi) Profit and losses for the preceding years were:2119 Rs.8,000 (Profit); 2010 Rs.10,000 (Loss); 2011 Rs.12,000 (Profit); 2012 Rs.18,000 (Profit). Pass necessary journal entries and prepare Sunil’s Capital A/c and Sunil’s Executor’s A/c.

(6)Q12 Vishal Limited is registered with an authorised capital of Rs.2,00,000 divided into 20,000 Equity

Shares of Rs.10 each. The company offered 16,000 shares for subscription to the public, out of which 15,000 shares were subscribed for Rs.6 per share were called and received except a call of Rs.2 per share on 200 shares. Show the share capital of the company in Balance Sheet as per the Revised Schedule VI of the Companies Act, 1956. (4)

Q13 J.P. Limited purchased Building costing Rs.70,00,000 from M/s Construction Limited. The Company paid Rs.20,50,000 by cheque and for the balance issued equity shares of Rs.100 each in favour of M/s Construction Limited. Pass necessary journal entries in the books of J.P. Limited for the purchase of building and making payment if shares were issued(a) at 10% discount and (b) at a premium of 25%. (4)

Q14 (a) X, Y and Z are partners in a firm. Their capital accounts stood at Rs.15,000; Rs.7,500 and Rs.7,500 respectively on January 1, 1996:(i) Z was to be allowed a remuneration of Rs.1,500 per annum(ii) Interest at 5% per annum was to be provided on capital(iii) Profits were to be divided in the ratio of 2:2:1.(iv) Ignoring the above terms, the net profit of Rs.9,000 for the year ended 1996 was divided

among the partner equally. Pass an adjustment entry to rectify the error. Show your working clearly.

(b) A and B are partners in a firm. A is to get a commission of 10% of Net Profit before charging any commission. B is to get a commission of 10% on Net Profit after charging all commissions. Net profit before charging any commission was Rs.55,000. Find out the commission of A and B. Show your working clearly.

(6)

Q15 Mobile Limited was registered with an authorized capital of Rs.10,00,000 divided in Rs.10 per equity share, of these 30,000 equity shares issued as fully paid to the vendor for the purchase of building. 40,000 Equity shares were subscribed for by the public and during the first year Rs. 5 per

equity share were called up, payable Rs. 2 on application, Rs. 1 on allotment, Rs. 1 on first call and Rs. 1 on second call. The amounts received in respect of these shares were:On 30,000 equity shares the full amount called.On 6,250 shares Rs. 4 per equity share.On 2,500 shares Rs. 3 per equity share.On 1,250 shares Rs. 2 per equity share.

The directors forfeited 3,750 equity shares on which less than Rs.4 per equity share had been paid. Give Journal entries to record the above. (8)

ORFairy Limited invited applications for 10,000 Equity Shares of Rs.10 each for public subscription. The amount was payable as follows:On Application Rs.1; On Allotment Rs.2; On First Call Rs.3; Second Call Rs.4. All amounts payable on applications, allotment and calls have been duly received with following exceptions:‘A’ who hold 100 shares failed to pay the money on allotment and calls.‘B’ to whom 50 shares have been allotted failed to pay the money on first & final call.‘C’ who holds 30 shares, has not paid the amounts due on final call.The share of ‘A’, ‘B’ and C were forfeited. Pass journal entries.

Q16 PK and SK were partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet on 31.3.2001 was as follows:

Liabilities Amount Assets AmountBank overdraft 20,000 Cash 8,000Creditors 30,000 Debtors 30,000Provision for bad debts 1,000 Bills Receivable 40,000General reserve 15,000 Stock 50,000VK’s Loan 20,000 Building 90,000Capitals : Land 1,48,000PK 1,00,000SK 1,80000 2,80,000

3,66,000 3,66,000On 1.4.2001 they admitted VK as new partner on the following conditions:

(i) VK will get 1/8th share in the profits of the firm.(ii) VK’s loan will be converted into his capital.(iii) The goodwill of the firm was valued at Rs.80,000 and VK brought his share of goodwill as

premium in cash.(iv) Provision for bad debts was to be made equal to 5% of the debtors.(v) Stock was to be depreciated by 5% and Land was to be appreciated by 10%.

Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet. (8)OR

E, F and G were partners in a firm sharing profits in the ratio of 3:1:1. On 31.3.2004, their Balance Sheet was as follows:

Liabilities Amount Assets AmountCreditors 90,000 Bank 31,000Bills Payable 30,000 Debtors 70,000Capitals : Less: Provision 2,000 68,000E 1,50,000 Stock 80,000F 1,00,000 Building 2,70,000G 99,000 3,49,000 Goodwill 20,000

4,69,000 4,69,000

On the above date F retired on the following terms:(i) Building was to be appreciated by 10%.(ii) 10% provision for doubtful debts was to be made on sundry debtors.

(iii) Creditors Rs.10,000 will not be claimed.(iv) There was an outstanding bill for repairs of Rs.2,000.(v) Goodwill of the firm was valued at Rs.75,000.(vi) F was to be paid Rs.20,000 in cash and balance was to be transferred to his loan account.Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet.


Q17 What do you mean by financial analysis? (1)Q18 Assuming that the Current Ratio is 2:1, state giving reason whether the ratio will improve, decline or

will have no change in case a Bill Receivable is dishonoured. (1)Q19 Where will you record Dividend Received and Interest received on Investment by a manufacturing

company while preparing Cash Flow Statement? (1)Q20 Give major heads and sub heads under which following items will be disclosed in the Balance Sheet

as per Revised Schedule VI of the Companies Act, 1956: (3)(a) Work in progress (d) Trademarks(b) Interest Accrued on Investments (e) Office Equipment(c) Stores and Spare Parts (f) General Reseve

(4)Q21 Prepare Common Size Balance Sheet from the following:

Particulars Note 31st MarchNo. 2013

I. EQUITY AND LIABILITIES(1) Shareholders’ Funds(a) Share capital 30,00,000(b) Reserve and Surplus 4,00,000(2) Non-current Liabilities(a)Long term borrowings 10,00,000(3) Current LiabilitiesTrade payables : Creditors 6,00,000Total 50,00,000

II. Assets(1) Non-Current Assets(a) Fixed Assets(i) Tangible Assets 30,00,000(ii) Intangible Assets 6,00,000(2) Current Assets(a) Inventories 10,00,000(b) Trade receivables 4,00,000

Total 50,00,000

Q22. (a) Calculate Stock Turnover Ratio from the following information: (4)Sales Rs.2,00,000; Gross Profit 25%; Opening Stock was 1/4th of the value of closing stock.Closing Stock was 40% of sales.(b) A business has current ratio of 4 : 1 and a quick ratio of 1.2:1. If the working capital is Rs.1,80,000, calculate the total current assets and stock.

Q23. From the following information prepare Cash Flow Statement:Particulars Note 31st March 31st March

No. 2013 (Rs.) 2014 (Rs.)I. Equity and Liabilities1. Shareholders’ FundsShare CapitalReserves and Surplus

9,00,000 9,00,000

General Reserve 6,00,000 6,20,000

Statement of Profit & Loss 1,12,000 1,36,000Non-current LiabilitiesLong-term Borrowings : Mortgage LoanCurrent Liabilities

--- 5,40,000

(a) Trade Payables (Creditors) 3,36,000 2,68,000(b) Short Term Provision : Tax Provision 1,50,000 20,000Total 20,98,000 24,84,000

II Assets1. Non-current Assets(a) Fixed Assets:(i) Tangible Assets : Machinery 8,00,000 6,40,000(b) Non-current Investments2. Current Assets

1,00,000 1,20,000(a) Inventories 4,80,000 4,20,000(b) Trade Receivables (Debtors) 4,20,000 9,10,000(b) Cash and Cash Equivalents 2,98,000 3,94,000Total 20,98,000 24,84,000

Additional Information:(i) Investments costing Rs.16,000 were sold during the year 2013-14 for Rs.17,000.(ii) Provision for Tax made during the year Rs.18,000.(iii) Dividend paid during the year Rs.80,000.(iv) During the year a part of fixed assets costing Rs.20,000 sold for Rs.24,000. The profit was

included in the Statement of Profit & Loss.

. SAMPLE PAPER 11

ACCOUNTANCYClass - XII




Q1 What amount of interest on drawing will be debited to Vasu’s Capital Account when he withdrew Rs.2,000 in the beginning of each quarter @8% p.a.?(i) 600(ii) 400(iii) 750(iv) 1040

Q2 In what situation fixed capitals of the partners may change?(i) When interest on drawings is calculated(ii) When interest on capital is provided

(iii) When Salary or commission is given to the partners(iv) When additional capital is introduced by partners

Q3 Give the journal entry for calls in arrears received.Q4 Why is sacrificing ratio calculated?Q5 Prior to dissolution sundry debtors stood at 1,36,000 and provision for doubtful debts was 12,600. At

what value will sundry debtors be transferred to Realiasation account?Q6 What is meant by “Debentures issued as Collateral Security?”Q7 Anita, Sunita and Rinita were partners in a firm. Anita died on 28th February, 2012. Anita’s share of

profits from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years’ profits before death.The profits for 2009, 2010, 2011 were Rs. 70,000, Rs.80,000 and Rs.80,000 respectively. The firm closes its books on 31st December each year.Calculate Anita’s share of profits till the date of her death.

Q8 Rajeev and Sanjeev were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed capitals were Rs.10,00,000 and Rs.7,00,000. The partnership deed provided for the following:(i) Interest on Capital @ 12%(ii) Rajeev’s salary Rs.6,000 per month and Mohan’s salary Rs.60,000 per year.(iii) The profit for the year ended 31.3.2012 was Rs.5,04,000 which was distributed equally,

without providing for the above. Give necessary adjustment entry and show the working notes.

Q9 20,000, 12% debentures of Rs.50 each were issued and to be redeemed as follows:(i) Issued at par and redeemed at a premium of 10%(ii) Issued at a premium of 10% and redeemable at a premium of 20%Khandelwal’s Ltd issued 7,500,5% debentures of Rs.50 each redeemable after 3 years by converting them into shares of Rs.20 each. Pass necessary journal entries to record the issue and redemption of debentures.

Q10 a) Madan and Shiva are good friends and interested in sports. However, they could not do much in sports because sports goods were not available to them at reasonable rates. Hence, both of them decided to form a partnership firm to sell sports goods at reasonable profits.They started the business on 1st April 2011 and their capital contribution was as follows - Madan Rs.50,000 and Shiva Rs.60,000.

On 1st January 2012, Madan gives a loan of Rs. 10,000 and Shiva introduced Rs.20,000 as additional capital. Profit for the year ending 31st March 2012 was Rs. 15,200. There is no Partnership Deed. Both Madan and Shiva expected interest @10%p.a. on the loan and additional capital advanced by them. Show how the profits would be divided. Give reasons.Identify the value which motivated Madan and Shiva to form the partnership.

Q11 A, B and C are partners sharing profits and losses 5:3:2 respectively. Their Balance Sheet as on March 31st 2012 is as follows:

Liabilities Rs. Assets Rs.Capital A/cs: Fixed Assets 2,25,000A 2,00,000 Stock 55,000B 50,000 Debtors 45,000C 40,000 2,90,000 Cash 10,000General Reserve 15,000Creditors 26,500Outstanding expenses 3,500

3,35,000 3,35,000

B retires on 31.3.12 and for this purpose:(i) Goodwill was valued at Rs.90,000.(ii) Fixed Assets were found undervalued by Rs.60,000.

(iii) Stock was considered worth Rs.50,000.(iv) B was to be paid in cash brought in by A and C in such a way so as to make their capitals

proportionate to their new profit sharing ratio which is 3:2 respectively. Prepare the Revaluation account and Capital accounts of partners.

Q12 Reliance Co. purchased assets of Rs.5,00,000 and took over liabilities of Rs.90,000 at an agreed value of Rs.3,80,000. Reliance Co. issued debentures of Rs.100 each @ 5% discount in full satisfaction of the purchase price. Give journal entries in the books of Reliance Co.

Q13 Jai ltd has an authorized capital of Rs.4,00,000 which is divided into Equity Shares of Rs.10 each. The company invited applications for 35,000 shares. Applications were received for 30,000 shares. Final call of Rs.2 on 1,000 shares was not received. The Directors of the company forfeited the shares and after some time, reissued 800 of the forfeited shares at Rs.9 per share.Show how Share Capital will appear in the Balance Sheet of the company as per Schedule VI of the Companies Act,1956.

Q14 A and B share profits and losses in the ratio of 1:1.Their capitals stood at Rs.2,50,000 and Rs.1,50,000 respectively on 1st January,2012. They admitted C as a partner for 4/10 share. C introduced capital of Rs.1,25,000 and was given a guarantee that his share of profit will not be less than Rs.30,000 in any year. Partners were allowed interest @ 10% p.a on their capitals and a salary of Rs.20,000 p.a. Net profits for the year ending 31st December,2012 were Rs.1,75,000. Prepare profit and Loss appropriation Account for the year ended 31st December,2012.

Q15 A, B and C were partners sharing profits in the ratio of 3:2:1. The firm had insured the partners lives separately, A for Rs.1,20,000; B for Rs.60,000 and C for Rs.48,000. Premiums paid have been charged to Profit and Loss a/c, which is prepared annually on 31st March.B died on 30th June,2011. On this date surrender value of the policies are 1/4th of the policy amount. Under the partnership deed, the executors of the deceased partner are entitled to:(i) His capital as per Balance Sheet(ii) Interest on Capital @ 10%p.a up to the date of death.(iii) His share of profits till the date of death, calculated on the basis of last years’ profit.(iv) His share of insurance money.

B’s capital on 31st March,2011 was Rs.80,000 and from 1st April,2011 he has withdrawn Rs.2,400 per month at the beginning of each month. Interest on drawings is to be charged @ 10% p.a. Last year’s profit was Rs.48,000. Prepare B’s Account to be rendered to his Executors.

Q16 a) Kamal Ltd was formed for the purpose of purchasing Rajesh Ltd and was registered with a nominal capital of Rs.2,00,000 divided into 2,000 Equity shares of Rs.100 each. 1,000 shares were issued as fully paid to the vendors in payment of the purchase consideration. The remaining 1,000 shares were offered to the public for subscription at a premium of Rs.5 per share payable as under:On Application -- Rs.30 per shareOn Allotment -- Rs.25 per share(including premium)On First call -- Rs.20 per share On Final call -- Rs.30 per shareApplications were received for 900 shares which were duly allotted and the Allotment money was duly received. At the time of First Call, a shareholder who held 100 shares failed to pay the first call money and his shares were forfeited.

These shares were re-issued @ Rs.60 per share, Rs.70 paid up. Final call has not been made.You are required to give necessary Journal Entries to record the above transactions.b) Diplod Ltd kept aside Rs.10 Lac for the group insurance of its employees. State the values involved in such decision

ORA Ltd company forfeited 300 shares of Mr.X who had applied for 500 shares on account of

non- payment of allotment money of Rs.3 + 2 (premium) and first call of Rs.2. Only Rs.3 per share was received with application. Out of these, 200 shares were re-issued to Mr.Y as fully paid for Rs.8 per share.

A company forfeited 200 shares of Rs.10 each fully called up issued at 10% discount on which Rs.3 per share was received with application. Amount required to be paid was Rs.2 on allotment; Rs.2 on first call and Rs.2 on final call. Out of these, 100 shares were re-issued to Mr.M as fully paid shares @ Rs.8 per share. Journalise the above entries relating to forfeiture and re-issue.

Q17 A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their Balance sheet as on 31st March,2013 is as follows:Liabilities Amount Assets Amount

Sundry Creditors 36,000 Cash 14,000

Bank Overdraft 20,000 Sundry Debtors 50,000

Reserve 15,000 Less: provision 2,500 47,500Capital account: Stock 60,000

A 60,000 Patents 6,000

B 60,000 Fixed Assets 98,500

C 50,000 1,70,000 Goodwill 15,000

2,41,000 2,41,000

On 1st April,2013, D was admitted into the firm with 1/4th share in the profits, which he gets equally from A and B. Other terms of agreement were:(i) D will introduce Rs.60,000 as his capital and pay Rs.18,000 as his share of goodwill.(ii) 20% of the Reserve is to remain as a provision against bad and doubtful debts.(iii) A liability to the extent of Rs.1,000 be created in respect of a claim for damages against the

firm.(iv) An item of Rs.4,000 included in sundry creditors is not likely to be claimed.(v) Stock to be reduced by 30% and patents to be written off in full.(vi) A is to pay off the Bank overdraft.(vii) After making the above adjustments the capital accounts of the old partners be adjusted on

the basis 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.

(viii) D Ltd decided to give free tablets worth Rs.5,00,000 to the disabled students of the nearby schools. State the values involved in such decision.

Prepare Journal entries, capital accounts and the Balance sheet of the new firm.OR

A,B and C sharing profits equally, dissolved their firm on 31st March,2013 on which date their Balance Sheet was as follows:

Liabilities Amount Assets AmountSundry Creditors 31,000 Bank 6,300Reserve for contingency 18,000 Debtors 55,000Profit and loss account 12,000 Stock 81,000A’s wife loan 12,000 Furniture 20,000Bank loan@ 12% 20,000 Plant 53,700Capital accounts: Capital Account: C 2,000A 70,000B 55,000 1,25,000

2,18,000 2,18,000The firm was dissolved on the above date and the following arrangements were decided

upon:(i) There is a bill for Rs.5,000 under discount. This bill was received from 'R’. R proved

insolvent and 60% were received from his estate.(ii) It was found that an investment not recorded in the books is worth Rs.8,000. This is taken

over by one of the creditors at this value.(iii) A agreed to accept furniture in full settlement of his wife’s loan.

(iv) Bank loan was repaid along with interest for nine months.(v) Assets realized as follows: Debtors- Rs.24,500; Stock - Rs.60,000; Plant - Rs.28,000.

Prepare necessary accounts.PART B

FINANCIAL STATEMENT ANALYSISQ18 What will be the impact of 'Bills Receivable’ received from 'Trade Receivables’ on a Quick ratio of

1:1?Q19 State whether sale of Marketable Securities for cash will result in inflow, outflow or no flow of cash.Q20 A short-term deposit in bank is classified under which kind of activity while preparing a cash flow

statement.Q21 List the items which are shown under the heading, ’Current Assets’ in the balance Sheet of a

company as per provisions of Schedule VI, of the Companies Act 1956.Q22 Prepare a Common size Balance Sheet from the following:

Particulars Note No 31.3.2012 31.3.2011I. EQUITY ANDLIABILITIESShareholder's Funds:Share Capital 6,00,000 6,00,000Reserves and Surplus 10,00,000 6,80,000Non-Current LiabilitiesLong-term Borrowings 3,00,000 3,00,000Current Liabilities:Trade Payables 5,90,000 4,12,000Short term provisions 10,000 8,000TOTAL 25,00,000 20,00,000

.

Particulars Note No 31.3.2012 31.3.2011ASSETS:Fixed Assets 7,50,000 8,00,000Non-Current Investments 6,06,250 4,00,000Current Assets:Inventory 6,25,000 4,50,000Trade Receivables 4,10,000 2,55,000Cash and Cash Equivalents 1,08,750 95,000

TOTAL 25,00,000 20,00,000

23 (a) The Current liabilities of a company are Rs.3,50,000. Its current ratio id 3:1 acid test ratio is 1.75:1. Calculate the value of Current assets, liquid assets Inventories.(b) Calculate trade receivables turnover ratio from the following information:Total revenue from Operations for the year Rs.2,00,000Cash revenue from Operations for the year Rs.40,000Trade receivables at the beginning of the year Rs.20,000 Trade receivables at the end of the yearRs.60,000

Q24 From the following Balance Sheet of Vikas Ltd, prepare a Cash Flow Statement:Particulars Note

No.31.3.2013Rs.

31.3.2012Rs.

I.EQUITY AND LIABILITIES:Shareholder’s Funds:Share Capital 1,30,000 90,000Reserves and Surplus 1 97,000 58,000Current Liabilities:Trade Payables 22,000 17,400

TOTAL 2,49,000 1,65,400

Note 1:31.3.2013 31.3.2012

Reserves and Surplus: 55,000 30,000General Reserve 42,000 28,000Profit and Loss Balance 97,000 58,000

Additional Information:(i) Depreciation charged on Fixed Assets for the year 2012-13 was Rs.20,000(ii) Income Tax Rs.5,000 has been paid during the year.

SAMPLE PAPER 12Class – XII

ACCOUNTANCYTime allowed: 3 hours Maximum Marks: 80

General Instructions:1. This question paper contains Two parts A& B.2. Both the parts are compulsory for all.3. All parts of questions should be attempted at one place.4. Marks are given at the end of each question.


Q1 What share of profits would a “Sleeping Partner”, who has contributed 75% of the total capital, get in the absence of partnership deed?(i) 75% of the profit(ii) 50% of the profit(iii) In Capital Ratio(iv) In Equal Ratio

(1)Q2 If the amount of super profit is negative, what does it indicate?

(i) Firm has more goodwill(ii) Negative Goodwill(iii) No Goodwill of firm(iv) Goodwill is equal to super profit

(1)Q3 A and B are partners with capitals of Rs.90,000 and Rs.1,00,000 respectively. They decide to admit

C into the partnership for 1/4th share in the future profits. C is to bring in a sum of Rs.80,000 as his

II.Assets: 1,66,000 93,400Non Current Assets: 12,000 8,000Fixed Assets

Deferred Tax Assets(Net) 27,000 24,000Current Assets: 39,000 36,000Inventory 5,000 4,000Trade Receivables 2,49,000 1,65,400

Cash and Cash EquivalentsTOTAL


Creditors 25,000 Building 26,000Reserve Fund 20,000 Investments 15,000Capitals: X 15,000 Debtors 15,000Y 10,000 Bills Receivable 6,000Z 10,000 35,000 Stock 12,000

Cash 6,00080,000 80,000

capital. Calculate the amount of goodwill.(1)

Q4 Vinay Limited wants to issue 1,00,000 Equity Shares of Rs.100 each at a discount. State clearly the conditions which should be fulfilled by the company to issue these shares.

(1)Q5 What is meant by issue of debentures for consideration other than cash?

(1)Q6 EK and FK were partners in a firm sharing profits in the ratio of 3 : 1. They admitted GK as a new

partner on 1.3.2005 for 1/3rd share. It was decided that EK, FK and GK will share future profits equally. GK brought Rs.50,000 in cash and Machinery worth Rs.70,000 for his share of profit as premium for goodwill. Showing your working clearly, give necessary entries.

(3)Q7 Sagar and Sarita were partners in a firm sharing profits in 3 : 2 ratio. On 28.02.2006, Their firm

was dissolved. On that date the balances in their capital accounts were Sagar Rs.20,000 (Cr.), Sarita Rs.5,000 (Dr.). There was a debit balance of Rs.15,000 in the profit and loss account. The general reserve account had a balance of Rs.30,000. Dissolution resulted into a gain of Rs.75,000. You are required to prepare the capital accounts of the partners at the time of dissolution assuming that the necessary cash was paid or brought in by the partners for final settlement as the case may be.

(3)Q8 Madhu and Garima started business on 1.4.2004 with capitals of Rs.80,000 and Rs.60,000

respectively. Their profit sharing ratio was 3 : 2. During the year ended 31.3.2005 they earned a profit of Rs.50,000. Their drawings during the year were Madhu Rs.7,000 and Garima Rs.5,000. On 31.3.2005 the firm was dissolved. Creditors on that date were Rs.37,000. The assets were realised for Rs.2,80,000. The expenses of realisation were Rs.5,000.Prepare Realisation Account only.

(3)Q9 A and B were sharing profits in the ratio of 3 : 2. They decided to admit C into the partnership for

1/6th share of the future profits. Goodwill, valued at 4 times the average super profits of the firm, was Rs.18,000. The firm had Assets worth Rs.15,00,000 and Liabilities Rs.12,00,000. The normal earning capacity of such firms is expected to be 10% p.a. Find the Average Profits/Actual Profits earned by the firm during the last 4 years.

(4)

Q10 On 31st December 2013, the Balance Sheet of X, Y and Z who were partners in a firm was as under:

The partnership deed provides that the profits should be shared in the ratio of 2:1: 1 and in the event of death of a partner, his executors will be entitled to be paid out:

(i) The capital to his credit at the date of last Balance Sheet.(ii) His proportion of Reserve at the date of last Balance Sheet.(iii) His proportion of profits to the date of death based on the average profit of the last three

completed years plus 10%.(iv) By way of goodwill, his proportion of the total profits for the three preceding years.The net profits for the last three years were: 2011 Rs.16,000; 2012 Rs.16,000; 2013 Rs.15,400. Z died on 1st April 2014. He had withdrawn Rs.5,000 to the date of his death. The investments were sold at par and Z’s executors were paid off.

Prepare the Partners Capital Accounts and Balance Sheet.(6)

Q11 Vasu Limited forfeited 1,000 shares of Rs.10 each, issued at a discount of Rs.1 per share, for the non-payment of the first call of Rs.2 per share. The final call of Rs.3 per share has not yet been made. Subsequently, 400 of these shares were reissued at Rs.5 per share, Rs.7 paid up and 600 reissued at Rs.7 per share fully paid. Give journal entries of forfeiture and re-issue.

(4)Q12 On 1st April, 2012, Ashok Ltd. was formed with an authorized capital of Rs.1,00,00,000 divided into

2,00,000 equity shares of Rs. 50 each. The company issued prospectus inviting applications for 1,50,000 shares. The issue price was payable as under:On application: Rs.15 On allotment: Rs.20 On call: BalanceThe issue was fully subscribed and the company allotted shares to all the applicants.The company did not make the call during the year. The company also issued 5,000 shares of Rs.50 each fully paid up to the vendor for purchase of office premises.Show the Share capital in the Balance Sheet of the company as per Schedule-VI Also prepare ‘Notes to Accounts’.

(4)Q13 Annu and Mannu are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as on 31st

March 2009 was as follows:Liabilities Amount Assets Amount

Sundry CreditorsGeneral ReserveInvestment Fluctuation Fund Capitals : Annu 1,19,000Mannu 1,12,000

56.000 4,0002,31,000

Cash in handDebtors 42,000Less : Provision 7,000Investments (Market Price 19,000) BuildingsPlant and Machinery

77.00035.00021.00098.00070.000

3,01,000 3,01,000Sonu was admitted on that date for 1/4 share of profit on the following terms:(i) Sonu will bring Rs.56,000 as his share of capital.(ii) Goodwill of the firm is valued at Rs.84,000 and Sonu will bring his share of goodwill in cash.(iii) Plant and Machinery appreciated by 20% and all debtors were good.(iv) There was a liability of Rs.9,800 included in creditors which was not likely to arise.(v) New profit sharing ratio will be 2 : 1: 1.(vi) Capital of Annu and Mannu will be adjusted on the basis of Sonu’s share of capital and any

excess or deficiency will be made by withdrawing or bringing in cash by the concerned partners as the case may be.Partners have decided to contribute some part of profit for the education of economically backward section of the society. Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet of new firm and also identify the values disclosed by the partners.

(6)Q14 Pass necessary Journal entries for Issue of Debentures for the following:

(i) Issued Rs.4,00,000, 9% debentures of Rs.100 each at a premium of 8% redeemable at 10% premium.

(ii) Issued Rs.6,00,000, 9% debentures of Rs.100 each at par, repayable at a premium of 10%.(iii) Issued Rs.10,00,000, 9% debentures of Rs.100 each at a premium of 5%, redeemable at

par.(6)

Q15 Rohit Ltd. Company issued 4,000 Equity shares of Rs.10 each at a premium of Rs.2 per share payable as follows :On application Rs. 2On allotment Rs. 5 (including premium)On 1st call Rs. 3On second and final call Rs. 2Applications were received for 8,000 shares and pro-rata allotment was made on the applications for 5000 shares. Money overpaid on application was utilized on account of sums due on allotment.

Raman to whom 40 shares were allotted, failed to pay allotment money on his subsequent failure to pay the 1st call his shares was forfeited.Dheeraj a holder of 60 shares, failed to pay the two calls, and his shares were forfeited after the second call, of the forfeiture shares 80 were sold to Krishna (including 40 shares of Raman) credited as fully paid for Rs.9 per share. Give journal entries.

(8)Q16 Following is the Balance Sheet of Aruna, Karuna and Varuna as on 31st March 2009, who have

agreed to share profits & losses in the proportion of their capitals:Liabilities Amount Assets AmountCapitals : Aruna 2,00,000 Land & Building 2,00,000

Karuna 3,00,000 Machinery 3,00,000Varuna 2,00,000 7,00,000 Closing Stock 1,00,000

General Reserve 35,000 Debtors 1,10,000Workmen compensation fund 15,000 Less : Provison 10,000 1,00,000Sundry Creditors 50,000 Cash at Bank 1,00,000

8,00,000 8,00,000

On March 31st 2009, Aruna desired to retire from the firm and the remaining partners decided to carry on the business. It was agreed to revalue the assets and re-assess the liabilities on that date,on the following basis:(i) Land and Building be appreciated by 30%.(ii) Machinery be depreciated by 20%.(iii) There were Bad Debts of Rs.17,000.(iv) The claim on account of workmen compensation fund was estimated at Rs.8,000.(v) Goodwill of the firm was valued at Rs.1,40,000 and Aruna’s share of goodwill was adjusted

against the capital accounts of the continuing partners Karuna and Varuna who have decided to share future profits in the ratio of 4:3 respectively.

(vi) Capital of the new firm in total will be the same as before the retirement of Aruna and will be in the new profit sharing ratio of the continuing partners.

(vii) Amount due to Aruna be settled by paying Rs.50,000 in cash and balance by transferring to her Loan A/c which will be paid later on.

Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet of new firm. (8)Part - B

Financial Statement AnalysisQ17 The Current Ratio of Vinod Limited is 2 : 1. State giving reasons whether ‘Issue of Shares for Cash’

will improve, reduce or not change the ratio. (1)Q18 State with reason whether ‘Short term deposits in Bank will result in inflow, outflow or no flow of

cash.(1)

Q19 State any one objective of financial statement analysis. (1)Q20 Give major heads and sub heads under which following items will be disclosed in the Balance Sheet

as per Revised Schedule VI of the Companies Act, 1956: (3) (i) Mining Rights (iv) Public Deposits(ii) Loose Tools (v) Prepaid Insurance(iii) Cheques in hand (vi) Retained Earnings

Q21. From the following statement of profit and loss of VS Limited for the years ended 31st March 2011 and 2012.

Particulars 31 March 2011 31 March 2012Revenue from operations Other incomeExpensesTax Rate

00000020% of Revenue from operations 40%

00000040% of Revenue from operations40%


Q22 Calculate ‘Return on Investment’ and ‘Debt Equity Ratio’ from the following information:Net profit after interest and tax Rs.3,00,00010% Debentures Rs.5,00,000Tax Rate 40%Capital Employed Rs.40,00,000 (4)

Q23 From the following Balance Sheets of Vinod Limited, calculate Cash Flow from Operating ActivitiesParticulars Note No. 31-3-2012 31-3-2011I. EQUITY AND LIABILITIES :1. Shareholder’s Funds:(a) Share Capital 1 13,00,000 15,00,000(b) Reserve and Surplus 2 7,00,000 40,0002. Non-current LiabilitiesLong Term Borrowings : 8% Debentures 6,00,000 4,00,0003. Current Liabilities 2,40,000 1,70,000Total 28,40,000 21,10,000II. ASSETS:1. Non-Current Assets:Fixed Assets:Tangible Assets 17,20,000 12,40,000Intangible Assets (Goodwill) 20,000 30,000Investments 2,50,000 1,60,0002. Current Assets 8,50,000 6,80,000Total 28,40,000 21,10,000

Notes to AccountsParticulars 2012 20111. Share CapitalEquity Share Capital 9,00,000 9,00,0005% Preference Share Capital 4,00,000 6,00,0002. Reserves and SurplusGeneral Reserve 3,00,000 2,40,000Statement of P/L 4,00,000 (2,00,000)

Additional Information:(i) Depreciation provided on fixed assets Rs.1,20,000.(ii) Preference Shares were redeemed at a premium of 5% on 31st March, 2012.(iii) Additional debentures were issued on 1st October, 2011.(iv) The Company declared and paid dividend on Equity Shares @ 8%. (6)


Subject Accountancy

Time Allowed : 3 Hrs. Max. Marks : 80

General Instructions:-(i) This question paper contains two parts A and B.(ii) All parts of the question should be attempted at one place.

PART ‘A’Q1 X has given a loan of 50,000 to the firm. He claims 10% p. a. interest. Is his claim valid in case

partnership deed is silent in this matter?(1)

Q2 What is meant by change in profit-sharing ratio? (1)Q3 Under what circumstances premium for goodwill paid by the incoming partner would never be

recorded in the books of account?(1)

Q4 On dissolution of a firm, out of the proceeds received from the sale of assets who will be paid first of all. (1)Q5 What is Subscribed Capital? (1)Q6 A, B and C are partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. Their fixed

capitals were 15,00,000, 30,00,000 and 60,00,000 respectively. For the year 2012 interest on capital was credited to them @ 12% instead of 10%. Pass the necessary adjustment entry.

(3) Q7 Mohan Ltd. gave notice of its intention to redeem its outstanding 14% Debentures of 10,00,000;

at 5% premium. However, an option to convert their holding into 15% cumulative preference shares

http://en.wikipedia.org/wiki/File:Indian_Rupee_symbol.svg





of 25 each at 30 per share was also given. Debenture holders holding Debentures of 4,53,000 accepted the offer. Journalise.

(3)Q8 On 31.3.2011 G Ltd. had 8,00,000 9% debentures due for redemption. The company had a balance

of 3,40,000 in its Debenture Redemption Reserve Account. Pass necessary journal entries for redemption of debentures if redemption was carried out of capital.

(3)Q9 A and B are partners sharing profits in the ratio of 3 : 2. They admit C into the partnership

with1/4 th share in future profits. The new profit sharing ratio is 5 : 4 : 3. C brings into the business 50,000 for his capital but could not bring any amount for goodwill. The firm’s goodwill on C’s

admission was valued at 48,000. Pass journal entries.(4)

Q10 P Ltd. Purchase business from Q Ltd. for a sum of 3,00,000, payable a 80,000 by issuing a cheque and the balance in fully paid equity shares of 100 each at 10% premium.

The assets and liabilities consisted the following:Building 4,00,000 Bills Payable 30,000Bills Receivables 50,000 Sundry creditors 40,000

Pass necessary journal entries in the books of P Ltd. (4)Q11. Akshit Ltd. was registered with an authorized capital of 1,00,00,000 divided into 1,00,000 Equity

shares of 100 each. The company offered for public subscription 60,000 Equity shares. Applications for 56,000 shares were received and allotment was made to all the applicants. All the calls were made and were duly received except the second and final call of 20 per share on 700 shares.

Prepare the Balance sheet of the company. Also prepare Notes to Accounts for the same. (4)Q12 Akshaya and Ritika were partners in a firm supplying school stationery. They share profits in the

ratio of 4 : 1. Their capitals as on 1st April 2012 were 2,00,000 and 1,00,000 respectively.On this date Ritika suggested Akshaya to start supplying low cost stationery also to the students who belong to low income group and have been admitted to the private schools of the city as per the provisions of Rights to Education Act 2009. Akshaya agreed and requested to admit her friend Sunil, a physically handicapped unemployed person in to the firm, however Sunil will not contribute any capital. Akshaya surrenders 1/4th of her share and Ritika surrenders 1/2 of her share in favour of Sunil, a new partner.(i) Identify any four values which according to you motivated them to form the partnership firm.

(ii) Calculate Sacrificing ratio.(iii) Calculate new ratio. (6)

Q13. X, Y, and Z are partners with fixed capitals of 1,50,000, 1,20,000 and 1,00,000 respectively. The Balance of current accounts on 1st January, 2011 were X 8,000 (Cr.); Y 3,000 (Cr.) and Z 2,000 (Dr.). X advanced 20,000 on July 1, 2011. The partnership deed provided for the following: (a) Interest on Capital at 5% p. a.(b) Interest on drawings at 6% p. a. Each partner drew 10,000 on July 1, 2011.(c) 20,000 is to be transferred to a Reserve Account.(d) Profit and Loss to be shared in the proportion of 3 : 2 : 1 upto 60,000 and above 60,000 equally.Net profit of the firm before above adjustments was 1,15,400

From the above information, prepare Profit and Loss Appropriation Account, Capital and Current Accounts of the partners.

(6)Q14. A, B and C were partners in a business sharing profits equally, C retires on 1.1.2011, when the

Balance Sheet stood as followsBALANCE SHEET

as on 1.1.2011Liabilities AssetsBills Payable 2,000 Cash at Bank 3,750


































CreditorsGeneral ReserveProfit and Loss A/cCapitals – A B C

3507,5003,000

7,5008,2508,000

Bills ReceivableDebtorsStock in TradeFurniture & FixturesBuilding & LandDeferred Revenue Expenditure (Advertisement)

2,5006,3007004,00016,350

3,00036,600 36,600

The goodwill of the firm is valued at 11,250. Amount payable to C is transferred to his loan account which will be paid in three equal annual installment together with interest @ 10% p. a. Show the Retiring Partner’s Capital Account and his Loan Account till it is paid off. Books of accounts are closed on 31st December ever year.

(6)Q15. Athveth Ltd. invited applications for 80,000 shares of 20 each at a premium of 5 per share. The

share was payable as follows: 10 on Application 10 on Allotment (including 5 as premium) 4 on First Call 1 on Second and Final Call

Applications were received for 1,50,000. Full allotment was made to an applicant who has applied for 10,000 shares. Applications for 10,000 shares was rejected. Pro-rata allotment was made to the remaining applicants as under:

Applicants for 50,000 shares were allotted 30,000 sharesApplicants for 80,000 shares were allotted 40,000 sharesX, a holder of 150 shares and who belongs to those category who have applied for 50,000

shares failed to pay allotment money and on his subsequent failure to pay first call his shares were forfeited. (i) Journalise in the books of Athveth Limited. (ii) Which value has been affected by rejecting the application of the applicants who had applied for 10,000 shares? Suggest a better alternative for the same.

(8)

OR

Krishna Limited invited applications for 5,000 shares of 25 at a premium of 5 per share payable as follows:

On Application 15 (including 2 as premium)On Allotment 5 (including 1 as premium)On First and Final Call 10 (including 2 as premium)

Applications were received for 7,500 shares and prorata allotment was made to applications for 6,000 shares. Remaining applications were rejected.

Sree, to whom 100 shares were allotted, failed to pay the allotment money and call money. Saran, a holder of 150 shares failed to pay the first and final call. These shares were forfeited after the final call was made.(i) Which value has been affected by the rejection of application? Suggest a better alternative for the same. (ii) Pass journal entries in the books of Krishna Ltd. (8)

Q16. A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2012, their Balance Sheet was as under:Liabilities Assets



















CreditorsCapital A/cs: A 1,50,000 B 80,000

70,000

2,30,000

BankDebtorsStockFurnitureGoodwill

40,0001,20,00060,00050,00030,000

3,00,000 3,00,000

On the above date C is admitted as a partner. A surrendered 1/6th of his share and B 1/3rd of his share in favour of C. Goodwill is valued at 1,20,000. C brings in only 1/2 of his share of goodwill in cash and 1,00,000 as his capital. Following adjustments are agreed upon:(i) Stock is to be reduced to 56,000 and furniture by 5,000.(ii) There is an unrecorded asset worth 20,000.(iii) One month’s rent of 15,000 is outstanding.(iv) A creditor for goods purchased for 10,000 had been omitted to be recorded although the

goods had been correctly included in stock.(v) Insurance premium amounting to 8,000 was debited to P & L A/c, of which 2,000 is

related to the period after 31st March, 2012.You are required to prepare Revaluation Account, Partner’s Capital Accounts and the

Balance Sheet of the new firm. (8)

OROn 1st January, 2011, X, Y and Z started business sharing profit and losses in the ratio of 3 : 2 : 1 respectively. They contributed 1,00,000, 80,000 and 40,000 respectively as their Capital which was deposited into Bank. Each Partner withdrew 15,000 during the year. The firm was dissolved on 31st December, 2011. X took up the stock at an agreed price of 25,000. Y took up furniture at 5,000 and Z took up debtors at 18,500. Creditors were paid off and then remained a balanced of 14,000 in the Bank Account.

Prepare the necessary accounts to show the result of winding up and to close the books of the firm . (8)

PART - BQ17. Name any two financial characteristics which are analyzed by Financial Analysis. (1)Q18. Give two examples of extra ordinary items. (1)Q19. How will you disclose purchase of goodwill in Cash Flow Statement? (1)Q20. List the different items which are presented under the major head. ‘Non-current Assets’ as per

revised Schedule VI Part I of the Companies Act 1956. (3)

Q21. On the basis of the following information, calculate the (i) Debt-Equity Ratio, and (ii) Working Capital Turnover Ratio (4)ParticularsNet SalesCost of Goods SoldOther Current AssetsCurrent LiabilitiesPaid-up Share Capital6% Debentures9% LoanDebenture Redemption Reserve (DRR)Closing Stock

60,00,00045,00,00011,00,0004,00,0006,00,0003,00,0001,00,0002,00,0001,00,000

Q22. Prepare the Comparative Income Statement from the following:Particulars 31st March, 2011 31st March, 2012

Revenue from operationCost of material consumed Expenses

10,00,0006,00,00040,000

12,50,0007,50,00050,000





















Interest on Investments @ 50,000 and Taxes Payable @ 50%. (4)Q23. From the following Balance Sheets of Samta Ltd., as at 31st March, 2011 and 31st March, 2012

prepare the Cash Flow Statement:Particulars 31.3.2011

( )31.3.2012 ( )

1. EQUITY AND LIABILITIES 1. Shareholders’ Funds Share Capital Reserves and Surplus: 31.3.2011 ( ) 31.3.2012 ( ) Statement of Profit and Loss 2,00,000 4,00,000 Miscellaneous Expenditure (2,00,000) . . .

2. Current Liabilities Provisions: Proposed Dividend Total

II. ASSETS Fixed Assets Current Assets Total

15,00,000

NIL

3,00,0001,00,000

20,00,000

4,00,000

4,00,0002,00,000

19,00,000 30,00,000

12,00,0007,00,000

18,00,00012,00,000

19,00,000 30,00,000

Additional Information:(i) During the year 80,000 depreciation was charged on fixed assets.(ii) A piece of machinery included in fixed assets costing 20,000 on which depreciation charged

as 8,000 was sold for 10,000. (6)




Part - A

Partnership, Share Capital and DebenturesQ1 State the conditions under which the capital balances may change under the system of a Fixed

Capital Account(1)

Q2 Name two factors affecting value of goodwill of a firm. (1)Q3 VS, NS and AH are partners in a firm. AH retired from the firm. After making adjustments for

Reserves and Revaluation of Assets and Liabilities the balance in AH’s capital account was Rs.1,20,000. VS and NS paid Rs.1,80,000 in full settlement to AH. Identify the item for which VS and NS paid Rs.60,000 more to AH.

(1)










Q4 Vishal Limited has a paid up Share Capital of Rs.50,00,000 and a balance of Rs.10,00,000 in ‘Securities Premium Reserve Account’. The company management do not want to carry over the balance. State the purposes for which the balance can be utilized

(1)Q5 What is meant by Redemption of Debentures by Lump sum Payment? (1)Q6 Bat and Ball are partners in a firm sharing profits in the ratio of 3:2 respectively. The fixed capital of

Bat is Rs.4,80,000 and Ball Rs.3,00,000. On 1.4.2012 they admitted Wicket as a new partner for 1/5th

share in future profits. Wicket brought Rs.3,00,000 as her capital. Calculate the value of goodwill and record necessary journal entries.

(3)Q7 X, Y and Z were the partners in a firm sharing profits in the ratio of 4:3:3. The firm was dissolved.

Pass the necessary journal entries if the following transactions took place:(i) Kamal, a Creditor, to whom Rs.6,000 were due to be paid, accepted Office Equipment at

Rs.4,000 and the balance was paid to him in cash. (ii) An unrecorded liability of the firm Rs.7,800 was paid by X. (iii) There was a Dr. balance in P/L A/c Rs.5,000. (3)

Q8 Govinda and Gopala were partners from 1.1.2008 with capitals of Rs.90,000 and Rs.60,000 respectively. They shared profits in the ratio of 3:2. They carried on business for two years. In the first year they made a profit of Rs.75,000 but in Second year a loss of Rs.30,000 was incurred. As the business was no longer profitable, they dissolved the firm on 31.12.2009. Creditors on that date were Rs.30,000. Each partner withdrew for personal use, Rs.12,000 per year. The expenses of realisation were Rs.4,500. The assets realised Rs. 1,50,000. Prepare Realisation Account, Partners Capital A/cs and Cash Account. (3)

Q9 A business had earned average profits of Rs.2,00,000 during the last few years and the normal rate of return in similar business is 10%. Find out the value of goodwill by: (i) Capitalisation of Super Profit Method (ii) Super Profit Method if the goodwill is valued at 3 year’s purchase of super profits. The assets of the business were Rs.20,00,000 and its external liabilities Rs.3,60,000. (4)

Q10 John, Robert and Dolly are partners in a firm sharing profits in the ratio of 2:2:1 respectively. Firm closes its accounts on 31st March every year. Robert died on 30th September 2012. There was a balance of Rs.96,000 in Robert’s Capital account in the beginning of the year. In the event of death of any partner. The partnership deed provides for the following: (i) Interest on capital will be calculated at the rate of 12% p.a. (ii) The Executor of deceased partner shall be paid Rs.15,000 for his share of goodwill. (iii) His share of Reserve fund which is Rs.10,000, shall be paid to executor. His share of profit till the date of death will be calculated on the basis of sales. It is also specified that the sales during the year 2011-12 were Rs.8,00,000. The sales from 1st April 2012 to 30th September 2012 were Rs.1,50,000. The profit of the firm for the year ending 31st March 2012 was Rs.1,00,000.Prepare Robert’s Capital account to be presented to his executor. (6)

Q11 Sunshine Limited forfeited 100 shares of Rs.10 each, issued at a premium of 10%. The company has called up only Rs.8 per share. Final call of Rs.2 each has not been made on these shares. These shares were allotted to Aishwarya, who did not pay the first call of Rs.3 per share were reissued at Rs.7 per share, as Rs.8 paid up. Give journal entries and show your working clearly.

(4) Q12 Mahindra Limited has an authorised capital of Rs.5,00,000 divided into equity shares of Rs.50 each.

The company invited applications for 8,000 shares. Applications for 6,000 shares were received. All calls were made and duly received except the final call of Rs.10 per share on 500 shares. Out of the shares on which final call was not received 400 shares were forfeited. Show how the share capital will be shown in the balance sheet of the company as per Revised Schedule VI Part 1 of the Companies Act 1956. (4)

Q13 Tanya and Ridhima are partners in a firm. They admitted Sonia as a partner without capital for 1/3rd share in the profits of the firm. She is blind by birth but having good management qualities. The new partnership agreement provides for the following: (i) 10% of the trading profit will be donated to the Prime Minister’s Relief Fund. (ii) 5% of the trading profit will be donated to the National Blind Relief Fund.

(iii) Products will be sold at a discount of 15% on maximum retail price to the people living below poverty line.

(iv) New retail shops will be opened in the Naxal affected areas of the country. (v) New jobs of salespersons will be reserved for the girls belonging to Scheduled Castes and

Scheduled Tribes. The Trading Profit of the firm for the year ended 31.3.2012 was Rs.10,00,000.Identify any four values considered by the partners while preparing the new partnership deed and also prepare the Profit & Loss Appropriation Account.

(6)Q14 Pass necessary Journal entries for Issue of Debentures for the following:

(i) BPLM Limited issued 3,000, 12% Debentures of Rs.100 each at a discount of 10%, redeemable at a premium of 5%.

(ii) ABCD Limited issued 3,200, 9% Debentures of Rs.100 each at a premium of Rs.20 per Debenture, redeemable at a premium of Rs.10 per Debenture.

(iii) HLPC Limited issued 2,000, 9% Debentures of Rs.100 each at a discount of 5% redeemable at par. (6)

Q15 Mahaluxmi Limited invited applications for issuing 1,00,000 Equity Shares of Rs.10 each. The amount was payable as follows: On Application Rs.3 per share; On Allotment Rs.5 per share; Balance on first & final call. Applications for 1,40,000 shares were received. Allotment was made to all applicants on pro-rata basis. Excess money received on application was adjusted towards sums due on allotment. Ramesh, who had applied for 1,400 shares, did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited. After wards, the first and final call was made. Kapoor, who had been allotted 1,000 shares, did not pay the first and final call. His shares were also forfeited. Out of the forfeited shares 1,800 shares were reissued at Rs.8 per share fully paid up. The reissue shares included all the shares of Ramesh. Pass necessary journal entries.

(8)OR

Give necessary journal entries related to forfeiture and reissue in the following cases:(i) Vishal Limited forfeited 10 shares of Rs.10 each on which Rs.6 were called up only, issued at

a discount of 10% to Mr. Kothari on which he had paid the application money of Rs.2 per share. Out of these, 8 shares were reissued to Mr. Modi at Rs.6 per share, Rs.8 called up. Max Bombay Limited forfeited 1,000 shares of Rs.10 each (Rs.8 Called up) for the non-payment of the allotment money of Rs.5 per share including Rs.2 as premium. Of these 800 shares were reissued to Mr.Vinod at Rs.7 per share as Rs.8 called up.

Q16 Balance Sheet of A and B as on 31.3.2013 is given below. Their profit sharing ratio is 2:1.Liabilities Amount Assets AmountCreditors 16,000 Freehold Property 20,000General Reserve 24,000 Furniture 6,000Capitals : Stock 12,000A 40,000 Debtors 60,000B 30,000 70,000 Cash 6,000

Profit & Loss A/c 6,0001,10,000 1,10,000

C was admitted on the following terms:(i) C will bring in Rs.21,000 of which Rs.9,000 will be treated as premium for goodwill to be

retained in the business. (ii) 50% of General Reserve is to remain in the business as reserve for doubtful debts. (iii) He will be entitled for 1/4th share of profit in the business. (iv) Depreciation is to be provided on furniture @5%. (v) Stock is to be valued at Rs.10,500.

Give journal entries and Balance Sheet. (8)OR

The Balance Sheet of A, B and C who were sharing profits in the ratio of 4:3:2 respectively stood as follows on 31st December 2013:Liabilities Amount Assets AmountCreditors 3,800 Land and Building 4,000General Reserve 9,000 Plant and Machinery 8,000Capitals : Stock 6,000A 20,000 Debtors 23,000B 7,500 Less : Reserve 400 22,600C 10,000 37,500 Cash 700

Advertisement Suspense 9,00050,300 50,300

B has given notice to retire from the firm, the following adjustments were agreed upon:(i) Stock be appreciated by 10% and reserve for doubtful debts is not required in future. (ii) Land and Building be appreciated by 20%. (iii) That adjustments be made in accounts to rectify previous entries whereby B was credited in

excess by Rs.1,500 while A and C were debited in excess by Rs.1,100 and Rs.400 respectively.

(iv) Goodwill of the firm Rs.63,000 and B’s Share of the same being adjusted to that of A and C who are going to share profits in the ratio of 2:1 in future.

(v) That the entire capital of the firm as newly constituted will be readjusted by bringing in or paying of cash so that the future capitals of A and C be in the ratio of 2:1. Pass necessary Journal entries and prepare Balance Sheet showing B’s balance as loan.

Part – BFinancial Statement Analysis

Q17 State the importance of Analysis of Financial Statements for Trade Unions. (1)Q18 Give the meaning of Cash and cash equivalents. (1)Q19. Vishu Limited paid the instalment of Rs.50,000 for Machinery purchased on credit in which interest

of Rs.4,000 was included. How will you show this payment at the time of preparation of Cash Flow Statement?

(1)Q20. Give major heads and sub heads under which following items will be disclosed in the Balance Sheet

as per Revised Schedule VI of the Companies Act, 1956:(a) Debentures (e) Accrued Income(b) Capital Reserve (f) Brands(c) Bills Payable (g) Mastheads and Publishing Titles(d) Rent received in advance (h) Employees Provident Fund

Q21 Prepare a common size income statement from the following information:Particulars Amount

Income:Revenue from operations 5,00,000Other income 20,000

5,20,000Expenses:Cost of material consumed 2,40,000Other expenses 10,000

2,50,000

Tax 30,000

Q22 From the following From the following information obtained from the books of Vasu Limited as on 31.3.2012. Calculate (a) Quick Ratio and (b) Stock Turnover Ratio: Inventory Rs.1,00,000 Trade Receivables Rs.1,20,000 Advance Tax Rs.4,000 Cash Rs.60,000; Trade Payables Rs.1,05,000 Bank Overdraft Rs.8,000 Cost of goods sold Rs.4,20,000Additional Information:Closing Inventory was Rs.20,000 more than the opening Inventory. (4)

Q23. From the following Balance Sheets of Vinod Limited, prepare Cash Flow Statement: (6)Particulars Note No. 31-3-2012 31-3-2013I. EQUITY AND LIABILITIES :Shareholder’s Funds:Equity Share Capital 1,90,000 1,90,000Reserve and Surplus :Contingencies Reserve 30,000 30,000Statement of Profit & Loss 8,000 11,500Non-current LiabilitiesLong Term Borrowings : 8% Debentures 45,000 35,000Current Liabilities :Trade Payables (Creditors) 51,500 48,000Other Current Liabilities (Outstanding Expenses) 6,500 6,000TotalII. ASSETS: 3,31,000 3,20,500Non-Current Assets:Fixed Assets:Tangible Assets 1 1,56,000 1,63,000Current Assets :Short term Investment 55,000 37,000Inventories 41,000 53,000Trade Receivables 33,500 21,500Cash & Cash Equivalents 45,000 45,000Other Current Assets (Prepaid Expense) 500 1,000

Total3,31,000 3,20,500

Notes to AccountsParticulars 2012 20131. Tangible AssetsLand and Building 1,50,000 1,50,000Machinery 26,000 35,000

1,76,000 1,85,000Less : Accumulated Depreciation 20,000 22,000

1,56,000 1,63,000

Additional Information:(i) 10% dividend was paid in cash.

(ii) New Machinery for Rs.15,000 was purchased but old Machinery costing Rs.6,000 was sold for Rs.2,000, accumulated depreciation was Rs.3,000.

(iii) Rs.10,000, 8% Debentures were redeemed by purchase from the open market @ Rs.96 for a Debenture of Rs.100.

(iv) Rs.18,000 Investment were sold at book value.

Sample paper 15Class: XII Commerce

Time Allowed: 3 Hours Subject – Accountancy (055) M.M.: 80General Instructions:

(i) This question paper contains three parts A and B (ii) All parts of questions should be attempted at one place.

Part – A: Accounting for partnership firms and Companies1. Under what circumstances the fixed capital of partnership firm changes? (1)2. P and J are partners. They admitted B for 1/4th share. What is the ratio in which P and J will sacrifice

their share in favour of B? (1)3. State any two occasions on which a firm may be reconstituted. (1)4. When is ‘Partner’s Executors’ Account prepared? (1)5. What is the maximum amount of discount at which forfeited shares can be reissued? (1)6. A, B and C are partners in a firm. They had omitted interest on capital @ 10% p.a. for three years

ended 31st March, 2012. Their fixed capitals on which interest was to be calculated throughout were: A - 1,00,000; B - 80,000; C - 70,000.

Give the necessary adjusting entry with working notes. (3)7. X Ltd. had issued 10,000, 12% debentures in 2009, each 100, interest payable on 30th September and

31st March each year, till the date of redemption. It redeemed, 1,000 debentures by paying back the money on 31st March, 2012. on the same date, it also converted 2,000 debentures into 20,000 equity shares of 10 each at par.Give journal entries for recording these transactions on 31st March 2012 in the books of X Ltd. (3)

8. What journal entries will be made at the time of issue of debentures in the following cases:(i) A company issued 40,000, 12% debentures at a premium of 10% redeemable at

premium of 5%.(ii) A company issued 40,000, 12% debentures at a premium of 5% redeemable at par.

(iii) A company issued 40,000, 12% debentures at par redeemable at 10% premium. (3)9. Shabir and David were partners in a firm supplying school uniform. They share profits in the ratio of

4:3. Their capitals as on 1st April, 2011 were 1,00,000 and 50,000 respectively. On this date Shabir suggested David to start supplying low cost school uniforms also to the students who belong to low income group and have been admitted to the private schools of the city as per the provisions of Right to Education Act 2009. David agreed and requested to admit his friend Charu, a visually handicapped unemployed person into the firm; however Charu will not contribute any capital. Shabir agrees to it. They were in need of more capital. Shabir, therefore persuaded a rich friend of his, Rafiq, who hailed from Assam to be a partner.

(i) Rafiq contributed 7,00,000 in cash, Delivery Van of 2,75,000 and Furniture of 25,000 as capital.

(ii) The new profit sharing ratio is 3:2:1:1.(a) Identify any four values which according to you motivated them to form the

partnership firm. (b) Calculate Sacrificing ratio and pass necessary journal entry. (2+2)

10. A, B and C were partners sharing profits in the ratio of 5:3:2. Their Balance Sheet as on 1st April, 2011 was as follows

Balance Sheet of A, B and C as on 31st March, 2012Liabilities AssetsCreditors Employees Provident FundCapital A/c’s:ABC

20,00026,000

1,00,00070,00050,000

Cash Debtors StockFurniture Building

16,00016,00080,00034,0001,20,000

2,66,000 2,66,000C retires on the above date and it was agreed that:a. C’s share of Goodwill was 8,000.b. 5% provision for doubtful debts was to be made on debtors. c. Sundry creditors were valued 4,000 more than the book value. Pass necessary journal entries for the above transactions on C’s retirement. (4)

11. Give answer to the following:(i) Pragati Ltd. issued 50,000 shares of 10 each for public subscriptions at a discount of

10%. Full amount was payable on application. Pass entries. (ii) Akash Ltd. issued 1,00,000 shares of 10 each, payable as follows:

On application ------------------ 2 (on 1st March, 2011)On allotment -------------------- 3 (on 1st May, 2011)On first call ---------------------- 2 (on 1st August, 2011)On second and final call ----- 3 (on 1st December, 2011)

All the shares were subscribed for and amount duly received. Ramesh, who had 8,000 shares, paid the amount of both the calls alongwith allotment. Jitender, who had applied for 4,000 shares, paid the amount of second and final call with the first call. Calculate the amount of interest on calls in advance payable to Ramesh and Jitender. (4)

12. Jai Ltd. had an authorised capital of 2,00,000 divided into equity shares of 10 each. The company offered for subscription 1,00,000 shares. The issue was fully subscribed. The amount payable on application was 2 per share. 4 per share were payable each on allotment and first and final call. A shareholder holding 100 shares failed to pay the allotment money. His shares were forfeited. The company did not make the final call.

Show how the share capital will be shown in the company’s Balance sheet. Also prepare notes to accounts for the same.

(6)

13. X, Y and Z were partners in a firm. Their capitals on 1st April, 2011 were: X 2,00,000; Y 2,50,000 and Z 3,00,000. Their Current Account Balances were: X Rs. 12,000; Y Rs. 10,000 and Z Rs. 5,000 (Dr.). The partnership deed provided for the following:

(i) They will share profits in the ratio of 2:3:3.(ii) X will be allowed a salary of 12,000 p.a.(iii) Interest on capital will be allowed @ 12% p.a.

During the year X withdrew 28,000; Y 30,000 and Z 18,000. For the year ended 31st March, 2012 the firm earned a profit of 5,00,000.Prepare Profit and Loss Appropriation Account and Partners Current Accounts. (6)

14. X and Y share profits and losses in the ratio of 3:2. They have decided to dissolve the firm. Assets and external liabilities have been transferred to Realisation Account. Pass the journal entries to effect the following:

(i) Bank Loan 15,000 is paid.(ii) X was to bear all expenses of realisation for which he is given a commission of 5,000.(iii) Deferred Advertisement Expenditure Account appeared in the books at 20,000.(iv) Stock worth 2,000 was taken by Y at 1,700.(v) An unrecorded computer realised 7,000.(vi) There was an unrecorded liability of 3,000, which was settled at 2,500. (6)

15. Shivaji Ltd. issued 10,00,000 new capital divided into 100 shares at a premium of 20 per share, payable as follows:

On application 10 per shareOn allotment 40 per share (including premium of 10 per share)On First and Final Call 70 per share (including premium of 10 per share)Over payments on application were to be applied towards sums due on allotment and first and final call. Where no allotment was made, money was to be refunded in full. The issue was over subscribed to the extent of 13,000 shares. Applications for 12,000 shares were allotted only 2,000 shares and applicants for 3,000 shares were sent letters of regret. Shares were allotted in full to the remaining applicants. All money was duly received.

(a) Which value has been affected by rejecting the applications of the applicants who had applied for 3,000 shares? Suggest a better alternative for the same.

(b) Give journal entries to record the above transactions in the books of the company. OR

Sambhav Ltd. invited applications for 1,00,000, 12% preference shares of 100 each issued at a discount of 10%. The amount was payable as follows:On application 30On allotment 20On first and final call BalanceApplications for 1,50,000 shares were received. Applications for 30,000 shares were rejected and pro-rata allotment was made to the remaining applicants. All calls were made and were duly received except the first and final call on 1,000 shares held by Laxman. His shares were forfeited. Out of the forfeited shares 700 shares were reissued at 120 per share as fully paid up.

(a) Which value has been affected by rejecting the applications of the applicants who had applied for 30,000 shares? Suggest a better alternative for the same.

(b) Give journal entries to record the above transactions in the books of the company. (8)16. A firm has two partners B and C sharing profits in the ratio of 3:2. They admit A into the partnership

on 1st April, 2012, when the Balance Sheet of the firm was as follows:Liabilities AssetsB’s CapitalC’s CapitalProfit & Loss A/cCreditors

30,00010,0007,5007,000

Machinery FurnitureInvestments Stock

18,00018,0009,0006,000

Bills Payable 2,500 Debtors Cash

4,0002,000

57,000 57,000Terms of admission are:

(i) A is to bring in 20,000 as capital for 1/3rd share of profit and 3,500 as his share of goodwill.

(ii) Value of machinery and stock are to be reduced by 7,000 and 1,000 respectively. Value of furniture to be increased by 3,000.

(iii) Capitals of partners shall be proportionate to their profit sharing ratio, taking A’s capital as the base. Excess capital is to be withdrawn in cash by the partners concerned and deficiency is to be made up by bringing in cash.

Prepare Revaluation A/c, Partner’s Capital Accounts and Opening Balance Sheet of new firm.OR

A, B and C carrying on business with the following assets with effect from 1st April, 2012: Furniture 1,80,000; Machinery 7,20,000; Cash 1,00,000; Debtors 2,00,000. Their profit sharing ratio

was 5:3:2. Capital is also shared in the same ratio. B died on 30th September, 2012. His son claimed his father’s interest in the firm. The following was the settlement:(1) Allow his capital to his credit on the date of death.(2) Give 5% p.a. interest on his capital.(3) He had been drawing @ 6,000 per month which he withdrew at the beginning of each month. He be

allowed to retain these drawings as a part of his share of profit. (4) Interest @ 6% p.a. be charged on his drawings. (5) They had separate life policies for which the premium had been paid out of profit and loss A/c of the firm:

A 5,00,000; B 6,00,000; C 4,00,000. The surrender value of A’s policy was 50% whereas of C’s policy it was 60%.

(6) Goodwill was evaluated twice the average of profits which were 2,10,000. Prepare B’s Capital Account and show yours working clearly. (8)

Part – B: Financial Statement Analysis17. X Ltd. has a Debt-Equity Ratio at 2.5:1. According to the management it should be maintained at 1:1. What are

the two choices to do so? (1)

18. State with reason whether cash withdrawn from bank will result in inflow, outflow or no flow of cash. (1)19. Dividend received by Mutual Fund Company is classified under which kind of activity while preparing cash

flow statement? (1)20. How will you disclose the following items while preparing the Balance Sheet of a Company:

(i) Bank Overdraft (ii) 12% Debentures (iii) Calls in Arrears (iv) Provident Fund (v) Loose Tools (vi) Shares in HCL Ltd.

(3)21. Prepare a ‘Common size Statement of Profit and Loss’ with the help of following information:

Particulars 2011 2012Revenue from operation 8,00,000 17,00,000Interest on Investments 2,00,000 3,00,000Expenses 6,00,000 8,00,000Income Tax 50% 50% (4)

22. From the following information, calculate any two of the following ratios:(i) Acid Test Ratio (ii) Debt Equity Ratio (iii) Working Capital Turnover RatioInformation:Net Sales 3,00,000; Gross Profit 1,00,000; Total Current Assets 2,00,000; Closing Inventory 20,000; Prepaid Insurance 4,000; Total Current Liabilities 1,20,000; Share Capital 3,50,000; Reserve & Surplus

40,000; Preliminary Expenses 7,000; Fixed Assets 4,30,000. (4)

23. Following are the Balance Sheets of Sewak Ltd. as on 31-3-2011 and 31-3-2012:

Particulars Note No. 31-3-2011 31-3-20121. EQUITY AND LIABILITIES : Shareholders’ Funds:

Share CapitalReserve and SurplusNon-Current Liabilities:Long-term Borrowings Current Liabilities: Trade Payables Outstanding Expenses TOTAL

2. ASSETS:Non-Current Assets:Fixed AssetsNon-Current Investments Current Assets:InventoryTrade Receivables Cash & Cash Equivalents

TOTAL

1

2

4,00,000(50,000)

2,00,000

1,10,00010,000

6,70,000

3,00,0002,00,000

50,0001,00,000

20,0006,70,000

7,00,000(3,20,000)

4,00,000

1,50,00020,000

9,50,000

5,00,0001,40,000

1,00,0001,70,000

40,0009,50,000

Notes to Accounts: 1. Reserve and Surplus: 31-3-2011 31-3-2012 Profit and Loss A/c (50,000) (3,20,000)

2. Long-term Borrowings: 9% Debentures 2,00,000 4,00,000

Additional Information: Included in the fixed assets was a piece of machinery costing 70,000 on which depreciation charged was 40,000 and it was sold for 30,000. During the year 1,40,000 depreciation was charged on fixed assets.

(6)

SAMPLE PAPER- 16ACCOUNTANCY

Class – XII

Time allowed: 3 hours Maximum Marks: 80

General Instructions:(i) This question paper contains Two parts A& B. (ii) Both the parts are compulsory for all. (iii) All parts of questions should be attempted at one place. (iv) Marks are given at the end of each question.

Part – APartnership, Share Capital and Debentures

Q1 What is the meaning of change in profit sharing ratio among the existing partners? (1)Q2 Why it is necessary for a new partner to bring premium for goodwill? (1)Q3 What is meant by Reserve Capital? (1)Q4 State any two provisions of the Companies Act, 1956 for the issue of shares at a discount. (1) Q5 Company pays interest at a fixed rate on debentures. At what rate interest will be Payable on the

debentures issued as collateral security? (1)Q6 X, Y and Z are partners their profit sharing ratio is 3:2:1. After the final accounts have been

prepared, it was discovered that interest on drawings @5% p.a. had not been taken into consideration. The drawings of the partners were amounted to X Rs.30,000; Y Rs.25,200; Z Rs.24,000

Pass necessary adjusting entry. (3)Q7 Vishal Limited had a balance of Rs.55,00,000 in its Statement of Profit & Loss. Instead of declaring

dividend it decided to redeem its Rs.50,00,000, 8% debentures at a premium of 10% out of profits. Pass the necessary journal entries for the redemption of debentures. (3)

Q8 Farida Limited purchased Machinery worth Rs.5,00,000 from Punjab Limited. 20% of the amount was paid by accepting a Bill of Exchange in favour of Punjab Limited and the balance was paid issuing 11% Debentures of Rs.100 each at a premium of 25%.Give necessary journal entries.

(3)

Q9 KK, LK and MK entered into partnership on 1st January 2011 to share profits in the ratio of 3:1:1. It was provided in the deed that MK’s share of profit will not be less than Rs.25,000 per annum and KK will be allowed a salary of Rs.10,000 per annum. The losses of the firm for the year ended 31st December 2011 were Rs.1,00,000 before allowing salary to KK. Prepare Profit & Loss Appropriation Account. (4)

Q10 The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5:3:2 as at March 31, 2013:

Liabilities Amount Assets AmountCreditors 50,000 Plant & Machinery 60,000Employees’ Provident Fund 10,000 Inventory 80,000Profit & Loss A/c 85,000 Sundry Debtors 1,00,000Retained Earnings 10,000 Cash at Bank 40,000Capitals: X 40,000 Deferred Revenue Exp. 10,000Y 62,000Z 33,000 1,35,000

2,90,000 2,90,000

X retired on March 31, 2013 and Y and Z decided to share profits in future in the ratio of 2:3 respectively. The other terms on retirement were as follows:(i) Goodwill of the firm is to be valued at Rs.80,000.(ii) Plant & Machinery is to be depreciated to Rs.57,500. (iii) Make a provision for doubtful debts at 5% on debtors. (iv) A liability for claim, included in creditors for Rs.10,000, is settled at Rs.8,000.

The amount to be paid to X by Y and Z in such a way that their capitals are proportionate to their profit sharing ratio and leave a balance of Rs.15,000 in the Bank A/c.Prepare P/L Adjustment A/c and Partners Capital Accounts. (6)

Q11. Vishal Limited issued 80,000 shares of Rs.10 each payable as Rs.2 per share on application, Rs.4 on allotment and the balance in two equal instalments.Applications were received for 1,60,000 shares and the allotment was made as:Applicants of 1,00,000 shares............................... Allotted 60,000 shares. Applicants of 60,000 shares.................................. Allotted 20,000 shares. Govind, to whom 1,200 shares were allotted from category (a), failed to pay the allotment money. Give necessary journal entries upto allotment only. (4)

Q12. Vikas Limited has an authorised capital of Rs.25,00,000 divided into Equity Shares of Rs.100 each. The company offered to the public for 1,25,000 shares. Applications received for only 1,00,000 shares. Company had made allotment and calls and duly received except the final call of Rs.20 per shares on 2,000 shares. 600 of these shares on which final call was not received by the company were forfeited.

Prepare a Balance Sheet of the Company showing Share Capital as per Revised Schedule VI of the Indian Companies Act, 2013 (4)

Q13 Bhanu and Shubh were partners in a firm sharing profits in the ratio of 3:2. On 1.1.2008 their fixed capitals were Rs.1,00,000 and Rs.1,50,000 respectively. On 31.3.2008, they decided that their total capital (fixed) should be Rs.3,00,000 in their profit sharing ratio. Accordingly they introduced or withdrew the necessary capital. The partnership deed provided the following:(i) Interest on capital @12% and interest on drawings @18% p.a. (ii) Monthly salary to Bhanu @Rs.2,000 per month and to Shubh @ Rs.3,000 per month. The

drawings of Bhanu and Shubh during the year were as follows:

The profit earned by the firm for the year ended 31.12.2012 was Rs.2,00,000. 10% of this profit was to be kept in a reserve.You are required to prepare P/L Appropriation A/c and Capital and Current Accounts of partners. (6)

Date Bhanu Shubh1, July 10,000 12,00030th September 15,000 12,000

Q14. N, S and M were partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as on December 31, 2001 was as follows :

M dies on 1.5.2002. The agreement between the executors of M and the partners stated that:(i) Goodwill of the firm be valued at 2 ½ times the average profits of last four years. The profits

of four years were : 1998 Rs. 13,000, 1999 Rs. 12,000, 2000 Rs. 16,000 and 2001 Rs. 15,000. (ii) The Patents are to be valued at Rs, 8,000, Machinery at Rs. 25,000 and Premises Rs.25,000. (iii) The share of profit of M should be calculated on the basis of the profit of 2001. (iv) Rs. 1,000 should be paid immediately and the balance should be paid in 4 equal half-yearly

instalments carrying interest @ 10%. Executor of M has decided to donate 30% of the total amount for the education of girls

belongs to deprived and financially weak section of the society. Record the necessary journal entries to give effect to the above and write the executor’s

account till the amount is fully paid. Also prepare the balance sheet of N and S as it would appear on 1.5.2002 after giving effect to the adjustments.

Q15 Vasu Limited invited applications for 10,000 shares at Rs.10 each, at a premium of Rs.4 payable at: On Application Rs.4 (including premium Rs.1 per share) On Allotment Rs.5 (Including premium of Rs.3 per share) On 1st Call Rs.3 and Balance on Final CallApplications were received for 20,000 shares and pro-rata allotment was made to the applicants of 16,000 shares. Excess application money is to be adjusted towards allotment money only. Mohan who applied for 1,600 share did not pay allotment money and her shares were forfeited after allotment.Sohan did not pay 1st Call and final call on 400 shares and her shares were forfeited after the final call. Out of the forfeited shares 600 shares of Mohan and 300 shares of Sohan were reissued to Mr. David at fully paid up Rs.9. Give necessary journal entries.

Identify the values has been affected by rejecting the 4,000 applications of the applicants? Suggest a better alternative for the same. (8)

ORSatyam Limited invited applications for issuing 2,00,000 Equity Shares of Rs.100 each at a

premium of Rs.60 per share. The amount was payable as follows:On Application Rs.30 per share (including premium Rs.10) On Allotment Rs.70 per share (Including premium Rs.50) Balance on 1st & final callApplications for 1,90,000 shares were received. Shares were allotted to all the applicants and the company received all money due on allotment except Mr. Mohan who had been allotted 1,000 shares, and his shares were immediately forfeited. Afterwards first & final call was made. Mr. Sohan did not pay the first & final call on his 2,000 allotted shares. His shares were also forfeited. 50% of the forfeited shares of both Mr. Mohan and Mr. Sohan were reissued for Rs.90 per share fully paid up.

Pass necessary journal entries in the books of the company and also identify the values disclosed by the company by issuing shares to all the applicants.

Q16. The following was the Balance Sheet of A, B and C sharing profits in the ratio of 6:5:3 respectively:

Liabilities Amount Assets Amount(Rs.) (Rs.)

Creditors 14,000 Investments 10,000Reserve Funds 6,000 Goodwill 5,000Capital Accounts : Premises 20,000N 30,000 Patents 6,000S 30,000 Machinery 30,000M 20,000 80,000 Stock 13,000

Debtors 8,000Bank 8,000

1,00,000 1,00,000

They agreed to take D into partnership a physically challenged person by giving 1/8th share on the following terms:(i) That D should bring Rs.14,700 as capital. .(ii) Furniture depreciated by Rs.920 and Stock by 10%. (iii) A reserve of Rs.1,320 be made for outstanding repairs bill. (iv) Land and Building appreciated by Rs.14,700. (v) Goodwill of the firm was Rs.11,200. (vi) Capitals of partners will be adjusted on the basis of D’s Capital and difference if any will be

adjusted through cash account. Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet. Also identify the values

disclosed by the old partners. (8) OR

The following is the Balance Sheet of A and B on 31st December 2010:


Sundry Creditors 30,000 Cash in Hand 500Bills Payable 8,000 Cash at Bank 8,000Mrs. A’s Loan 5,000 Stock- in- Trade 5,000Mrs. B’s Loan 10,000 Investment 10,000General Reserve 10,000 Debtors 20,000Outstanding Salaries 1,000 Less : Provision 2,000 18,000Capital Accounts : Plant 20,000A 10,000 Buildings 15,000B 10,000 20,000 Goodwill 4,000

Profit and Loss A/c 3,50084,000 84,000

In spite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The Court ordered for the dissolution of their partnership firm on 31st December, 2010.Partners were agreed for the following terms:(i) A promised to pay off Mrs. A’s loan and took away stock-in-trade at Rs.4,000. (ii) B took away half the investment at 10% Discount. (iii) Debtors realised Rs.19,000.


Creditors 13,900 Land and Building 50,400E.P.F 11,300 Furniture 7,350Profit & Loss A/c 14,000 Stock 29,400Capital Accounts : Debtors 26,460A 38,900 Cash 1,890B 33,600 C’s Current Account 13,000C 17,800 90,300 Preliminary Expenses 28,000Current Accounts :A 15,000B 12,000 27,000

1,56,500 1,56,500

(iv) Creditors and Bills payable were due, on an average basis, on month after 31st December, but they were paid immediately on 31st December, at a discount of 6% per annum.

(v) Plant realised Rs.25,000; Building Rs.40,000, Goodwill Rs.6,000 and remaining investments at Rs.4,500.

(vi) There was an old typewriter in the firm which had been written off completely from the books of the firm. It was not estimated to realize Rs.300. It was taken away by B at this estimated price.

(vii) Realisation expenses were Rs.1,000. Prepare necessary accounts to close the books of the firm and also identify the Values

violated by the partners.Part – B

Financial Statement AnalysisQ17 State how ‘Window Dressing’ is the limitation of Financial Statement Analysis. (1)Q18 Interest paid by a manufacturing company is classified under which kind of activity while Preparing

a Cash Flow Statement?Q19 What is meant by the term Cash Equivalents as per AS-3?

Q20. Give major heads and sub heads under which following items will be disclosed in the Balance Sheet as per Revised Schedule VI of the Companies Act, 1956:

(a) Proposed Dividend (d) Live Stock(b) Outstanding Expenses (e) Redemption of Debentures (c) Licenses and Franchise (f) Bank Overdraft

Q21. From the following information, prepare Comparative Statement of Profit & Loss: (4)Particulars 2012 2013Revenue from Operations 500% of other income 500% of other incomeOther income 40,000 50,000Cost of Material Consumed 60% of Revenue from operations

50% of Revenue from operations

Other Expenses 2 ½ % of Cost of Material Consumed2 ½ % of Cost of Material Consumed

Tax 30% 30%

Q22. (a) Net Credit Sales of Vinod Limited during the year were Rs.4,50,000. If Debtors Turnover Ratio is 4 Times, calculate the debtors in the beginning and at the end of the year. you are informed that closing debtors are two times in comparison to opening debtors.(b) Opening Inventory Rs.50,000; Inventory Turnover Ratio 4 Times; Gross Profit 20% of Sales (Revenue from operation). Closing Inventory was two times in comparison of Opening Inventory. Find out the amount of sales (Revenue from operations).

(4)

Q23. From the Balance Sheets and information given below prepare Cash Flow Statement: (6)

Particulars Note 31st March 31st MarchNo. 2005 (Rs.) 2006 (Rs.)

I. Equity and Liabilities1. Shareholders’ Funds

(a) Share Capital 1,25,000 1,53,0002. Non-current Liabilities

Long-term Borrowings : Mortgage Loan 65,000 50,0003. Current Liabilities

(a) Trade Payables (Creditors) 40,000 44,000Total 2,30,000 2,30,000

Assets Non-current Assets

(a) Fixed Assets:

(i) Tangible Assets 11,55,000 1,65,000

2. Current Assets(a) Inventories

35,000 25,000(b) Trade Receivables (Debtors)

30,000 50,000(b) Cash and Cash Equivalents

10,000 7,000Total

2,30,000 2,30,000

Notes to Accounts

31st March 2005 31st March 20061. Tangible AssetsLand 40,000 50,000Machinery 80,000 55,000Building 35,000 60,000

During the year Machine Costing Rs.10,000 (Accumulated Depreciation Rs.3,000) was sold for Rs.5,000. The provision for depreciation against Machinery as on 31st March 2005 and on 31st March 2006 were Rs.25,000 and Rs.40,000 respectively. Net Profit for the year amounting to Rs.4,500.

__________________________________________________________

All the Best

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