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Part A
Total: 80
Q 4. Calculate interest on drawings of Mr. Malik @ 10% p.a. for the year ended 31st
Q 5. A firm earned net profits during the last three years as follows:
Year : I II III
The capital investment of the firm is Rs.60,000. A fair return on the capital having regard to the risk involved
is 10%. Calculate the value of goodwill on the basis of three year’s purchase of the super profits for the last
3 years.
Q 6. A company purchased assets of the book value of 99,000 from another firm. It was agreed that the
purchase consideration be paid by issuing 11% debentures of Rs.100 each at par.
Q 7. Mohan, Vijay and Anil are partners, the balances of their capital accounts being Rs.30,000, Rs.25,000
and Rs.20,000 respectively. In arriving at these figures, the profit for the year ended March 31, 2007,
Rs.24,000 had already been credited to partners in the proportion in their profit share and ratio.
Vijay – 4,000
Anil – 3,000
b) Interest on drawings:
Mohan – Rs.250
Vijay – Rs.250
Anil – Rs.150
Q 8. What adjustments are required at the time of change in profit sharing ratio?
Q 9. Ram and Kabir invested Rs.3,00,000 & 1,50,000 respectively. A new partner Prabhu contributes
Rs.2,00,000 for 1/5th share in profits. Old partners Ram and Kabir were sharing profits and losses in the
ratio 3:2. At the time of admission of Prabhu loss of revaluation calculated as Rs.7,000.
Q 10. A, B and C are partners sharing profits in the ratio of 1:2:3, C retires and his capital, after making
adjustments for reserves and profit on revaluation stands at Rs.1,20,000. A and B agreed to pay him
Rs.1,50,000 in full settlement of his claim. Record necessary Journal entry for the treatment of goodwill if the
new profit sharing ratio is decided at 1:3.
4 marks questions.
Q 11. The following was the balance sheet of Anurag and Bhawna, who were sharing profits in the ratio of
2/3 and 1/3 on 31st December 2008:
Building 50,000
1,15,900 1,15,900
a) Monika was to be given 1/3 share in profits and was to bring Rs.15,000 as capital & Rs.6,000 as premium
of goodwill.
e) Investment worth Rs.1,400 (not mentioned in Balance Sheet) were to be taken into account.
Prepare Revaluation account, Partners Capital Account & Balance Sheet for new form.
Q 12. Y Ltd. Issued 10,000 shares of Rs.10 each at par amounts were due as follows:
Rs.2.50 on Applicatiion, Rs.2.50 on Allotment, Rs.3.00 on First Call & Rs.2.00 on Final Call. A, holding 200
shares did not pay the amount due on allotment & first call and his shares were forfeited. Final call was
made after the forfeiture, B holding 500 shares failed to pay the amount due on final call and his shares
were also forfeited.
i) C Ltd. forfeited 600 shares of Rs.10 each fully called up for non-payment of allotment money
of Rs.3 per share, first call of Rs.2 per share and final call of Rs.2 per share. 400 of these shares were re-
issued at Rs.9 per share fully paid up.
ii) D Ltd. forfeited 800 shares of Rs.10 each fully called up. On with the holder was
paid only the application money of Rs.3 per share. Out of these, 500 shares were re-
Q 14. Journalize
6 marks questions.
Q 15. Explain the meaning of debentures and bond. Also write any three types of debentures.
Q 16. Mahesh, Baldev and Davinder were in partnership sharing profits and losses equally. Devender died
on the 30th of June 2008. The balance sheet on 31.3.2008 stood as follows:
88,900 88,900
Additional information:
1) On the date of death, freehold property is valued at Rs.58,000, Investment at Rs.4,700 & Stock at
Rs.9,400.
2) Goodwill valued at one year’s purchase of average profit of the past 5 years.
3) Devender’s share of profit to the date of his death is to be calculated on average profits of preceding three
years:
2003 – 04 11,500
2004 – 05 14,000
2005 – 06 9,000
2006 – 07 8,000
2007 – 08 10,000
Q 17. A company issued for public subscription on 40,000 equity shares of Rs.10 each at a premium of Rs.2
per share payable as under:
Applications were received for 60,000 shares, allotment was made pro rata to the applicants for 48,000
shares. The remaining applications being refused. Money overpaid on application was utilized towards sum
due on allotment. Girdhari to whom 1,600 shares were allotted failed to pay the allotment money and
Krishna to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently
forfeited after second call was made. All forfeited shares were re-issued as fully paid at Rs.8 per share.
8 marks question.
Q 18. The “Receipts and Payments Account” of “Delhi Football Club” for the year ending 31st March 2008
was as under:
Investment 1,00,000
Salaries 12,000
3,66,000 3,66,000
Prepare clubs “Income & Expenditure Account” for the year ending 31st March 2008 and
“Balance Sheet” as on the date after taking the following information into account:
i) Subscription received include Rs.10,000 for the year 2006-07 and Rs.8,000 for the year 2008-09 and
Rs.16,000 are still outstanding as Subscriptions for the year 2007-08.
iv) Rent of playground due but not paid for the current year amounted to Rs.6,000,
Part B
Q 19. What are the major heads which appear at the Asset side of the Balance Sheet?
Q 21. From the following balance sheets, prepare a comparative balance sheet of D Ltd:
Q 22. The following Ledger balances were extracted from the books of Varun Ltd. as on 31sr March 2002.
Calculate Stock Turnover Ratio, Operating Ratio, Gross Profit Ratio:
Particulars Rs.
Purchases 46,000
Sales 90,000
Q 23. From the following information, prepare the Cash Flow Statement for the year ended 31st March
2007:
Particulars Rs.
Marking Scheme
Sol. 4. Rs.1,500
To Vendor 99,000
b) Vendor 99,000
Sol. 8.
i) Adjustment of Goodwill
Sol. 9. Total capital value of firm on the basis of new partners contribution= 2,00,000 X 5/1 =Rs.10,00,000 ½
Actual capital of the firm= (Ram + Kabir)’s capital of the adjustment of revaluation +
Prabhu’s Capital
Capital Account:
Anurag – 33,610
Bhavna – 21,805
Monika – 15,000
Sol. 12.
2) For Allotment
3) For I Call
4) Forfeiture
5) Final Call
6) Forfeiture
Sol. 13.
P/E 33.33%
G.R. 50.00%
Debentures 33.33%
Loans 33.33%
Total 3.93%
OR = 77.5% 2
GP = 30% 2
—- End of document —-
PAPER – 04
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SAMPLE QUESTION PAPER-IV
ACCOUNTANCY
General Instructions:
PART A
1. Give any one difference between Cash book and Receipts and Payment
account (1)
2. Amit and Sumit are partners in a firm without having partnership deed what should be done in the
following case
(i) Amit wants to introduce his son Raju into the business. Sumit objects it
(ii) Amit spends more time then Sumit in business the wants a salary of Rs 3000 per month for
extra time be denotes (1)
(1)
(1)
6. Ramananda Orphanage Society receipts and payment account shows that it received Rs 3,50,000 as
subscription in the year ending 31st Dec 2007.Account shows that Rs 21,000 were outstanding at the
beginning of the year out of which only Rs15,000 were received during the year. Subscriptions in advance
were Rs 2000 Rs 5000 respectively at the beginning and end of the year 2007 . Subscriptions in arrear at
the end of year of 2007 were Rs 23,000 Show how would you deal with these in income and expenditure
account and balance sheet as at 31st December 2007
(3)
7. 20,000 shares of Rs. 10 each were issued for public subscription at a premium of 10% . Full amount was
payable on application. Application were received for 30,000 shares and the board decided to allot the
shares on a pro-rata basis Pass followed entries
(3)
8. Journalise
A ltd Company issued 2000, 12%debentures of Rs 100 each at a discount of 10% redeemable at par
after 5 years.
(a) If they were converted into 14% debentures of Rs 100 each issued at a premium of 25% before maturity.
(b) If they were converted into 14% debenture of Rs 100 each issued at a discount of 20% before maturity.
(3)
9. A man , Babu and Chaman were in partnership with there fixed Capitals of Rs 48,000 ; Rs 40,000 and
Rs.32,000 respectively. It was agreed that they will set interest on capital @ 8% p.a. the profit sharing ratio
were
2001 — 1:1:1
2002 — 2:2:1
2004 — 3:2:1
It was found that interest on capital was omitted for these four years.
You are required to make an adjusting entry for the above omission.
(4)
10. A , B and C were partners in a firm sharing profits in the ratio of 3:2:1
Liabilities Rs Assets Rs
Creditors 4000 Buildings 20000
Reserve 6000 Plant &Machinery 16000
54000 54000
A died on 30-9-2003 ,under the partnership agreement ,the executors of a deceased partner were entitled
to
(c) Share of goodwill on the basis of four years purchase of last three years average profit.
(d) Share of profit from the closing of the last financial year to the date of death on the basis of last years
profit profit for the year 2001,2002 and 2003 were Rs 8000, Rs 12,000 and Rs7000 respectively.
(4)
11. Chandra Ltd was registered with Capital of Rs 3,00,000 shares of RS 100 each. It issued 2000 shares
payable Rs 20 per share on application , Rs 30 on application, Rs 20 on first call and the balance as and
when required.
All the money due on application and allotments was duly received except first call of Rs 20 per share
on 100 shares. But a shareholder holding 200 shares paid them in full.
12. Given below is the Receipts and Payments Account of a club for the year ending 31stDecember,1995
By Investments 2000
To Sale of Waste Paper By Electric Charges 145
4710 4710
Prepare the Club Income and Expenditure Account for the year ended 31st December ,1995 and its Balance
Sheet as on that date after taking the following informations into account:
(i) There are 500 members each paying an annual subscription of Rs 5; 50 being in arrears for
1994 at the beginning of this year
(ii) Municipal Taxes amounting Rs 40 per annum have been paid upto 31st March ,1996 and Rs.50
for salaries is outstanding
P, Q and R were partners in the ratio of 5:3:2 Their Balance Sheet was as follows:
Balance Sheet
1,45,200
21,60,000 21,60,000
Q. retires
(5) Q was paid Rs 48,000 immediately and the balance was transferred to his Loan account.
you are required to prepare revaluation a/c partners capital a/c and Balance Sheet of the new firm.
(8)
13. A and B were partners in the ratio of 7:5 C was admitted for 1/6th share . The new ratio was decided as
13:7:4 respectively C brings Rs 2,00,000 as his share of capital but was not able to bring any cash for his
share of goodwill. The firms goodwill at the time of c’s admission was valued at Rs 1,92,000 Pass
necessary journal entries.
(i) On 1st January 2002 , a limited Company issued 12% debentures of Rs 4,00,000 at a discount
of 10 % repayable at the end of 4 years (Pass only issue journal entry)
(ii) Mohan ltd , purchased assets of Sohan ltd, for Rs 4,20,000 and also took over the liabilities of
Rs 40,000 at an agreed value of Rs 3,60,000 Mohan ltd issued 11 % debentures of Rs 100 each at 20 %
discount in full satisfactions. Pass necessary journal entries in the books of Mohan ltd.
(iii) Meena ltd took a loan of Rs 4,20,000 from the Bank and issued 500 ,10 % debentures of Rs
1000 each as a collateral security. Prepare Balance sheet of the company.
1. X and Y sharing profits in the ratio of 3:2 had the following Balance Sheet as on March 31,2008
X 10000
(ii) Accrued income of Rs.1500 does not appear in the books and Rs 5000 are outstanding for
salaries.
(iii) The present market value of investments is Rs 6000 x takes over the investments at this value.
(vi) Z is to pay in cash an amount equal to his share in the firm’s goodwill valued at twise the
average profits of the last 3 years which were 25,000; Rs 26,000and 30,000 respectively.
You are required to pass the journal entries . Prepare the Revolutions Account , the Partners Capital
accounts, the current Accounts and the opening Balance Sheet of the new firm.
(or)
1. Krishna ltd issued Rs 15,00,000 new capital divided into Rs 100 shares at a premium of Rs 20 per
share payable as follows: Rs 10 per share on application Rs 40 per share and Rs 10 premium
allotment and Rs 50 per share and 10 premium on final payment.
Over payments on application were to be applied towards sums due on allotment and over
payments on application exceeding sums due an allotment were to be returned where no allotment was
made money was to be returned in full. The shares were over subscribed to the extent of 19500 shares.
Applicants for 18,000 shares were allotted only 1500 shares and applicants for 3000 shares were sent
letters of regret and application deposit were returned to them. All the money due on allotment and final call
was duly received . Make the journal entries & show the companies Balance Sheet.
(or)
Ram Ltd. Issued 100000 shares of Rs. 10 each, payable 3 on application, 4 on allotment, 2 on first call & the
balance on final call. Rita the holder of 200 shares failed to pay allotment & first call money & her shares
were forfeited. After this forfeiture, the final call was made & Anju the holder of 2000 shares failed to pay the
final call & her shares were forfeited.
Pass the necessary journal entries & show Balance Sheet also.
II
PART B
17.Assuming that the current ratio is 2:1 , state giving reason whether the ratio will improve, decline (or) will
have no change in cash a bill receivable is dishonoured.
18. State whether cash deposited in bank will result inflow , outflow(or) no flow of cash.
19. Interest received by a finance company is classified under which kind of activity while preparing a cash
flow statement.
20. Give the heading under which the following will be shown in a company Balance Sheet as per Schedule
VI.
Part I
(iii) Goodwill
1. Prepare a Comparative Income statement with the help of the following information;
Gross profit 40 % 30 %
Income Tax 50 % 50 %
Tax rate-40 %
Proposed dividence-Rs.5,00,000
Capital:
(b) 10 % preference shares-Rs 10,00,000 f rom the above calculate for equity shares.
1. From the following Balance Sheet of ABC ltd , find act cash from oprating activities only
Additional Information:
MARKING KEY
3 Meaning of goodwill 1
4 Joining Ratio . 1
½ a mark for each Add & Less and a 1 mark for the right answer.Shown
Cr(Rs) Cr(Rs)
(1+2)=3 marks
Rs.1,60,000 Rs 40,000
Rs 2,50,000 Rs 50,000
1. Balance Sheet
Liabilities Assets Rs
Share Capital 3,00,000 Current Assets 1,44,000
Rs 70 called up 1,40,000
Calls in advance
1,44,000 1,44,000
1. Surplus – Rs 2235
6 mark
(2+3+1)=6
(or) Rs
Q – 7200
R – 4800 24000
Qs loan 5,79,600
R 4,04,400
(or)
17. No change – because are current asset will be replaced by another current asset
debtors. ½ mark
21.
Particulars Percentage Change
Sales 50%
Cen: Cost of sales 75%
G.P. 12.50%
22.
—————–
25000
—————-
25000
——————-
44
Activity 11,800
( interest on investment)=(300)
Accountancy – XII
PART – A
1. Why depreciation on Fixed Assets is not recorded in Receipt and Payments Account? (1)
2. Ravi, a partner, in the Firm has advanced a loan of Rs. 1,00,000 to the firm and has demand an interest
@ 9% p.a. The Partnership deed is silent on the matter. How will you deal with it?
(1)
5. State the ratio on which profit or loss on revaluation will be shared by the partners when a partner
retires. (1)
Details
7. L, M and N are partners in a firm sharing profits and losses in the ratio of 2:3:5. Their Fixed capitals were.
Rs. 15,00,000, Rs. 30,00,000 and Rs. 60,00,000 respectively. For the year 2007 interest on capital was
credited to them @ 12% instead of 10%. Pass the necessary adjustment entry. (3)
8. JCM Ltd. Invited applications for issuing 20,000 equiry shares of Rs. 20 each at a discount of 10%. The
whole amount was payable on application. The issue was fully subscribed Pass necessary Journal
Entries. (3)
9. E and F were partners in a Firm, sharing profits in the ratio of 3:1. They admitted G as a new partner on
1.3.2007 for 1/3rd share. It was decided that E, F and G will share future profits equally. G brought Rs.
50,000 in cash and machinery worth Rs. 70,000 for his share of profit as premium for goodwill. Showing
your calculations clearly, pass necessary journal entries in the books of the firm. (4)
10. D Ltd. Forfeited 800 shares of Rs. 10 each fully called up, on which the holder has paid only the
application money of Rs. 3 per share. Out of these, 500 shares were re-issued at Rs. 11 per share, fully paid
up. (4)
Plant and Machinery of Rs. 20,00,000 at Rs. 18,00,000; Land and Building of Rs. 30,00,000 at Rs.
42,00,000 For purchase consideration of Rs. 55,00,000 and paid Rs. 10,00,000 in cash and remaining by
issue of 8% debenture of Rs. 100 each at a premium of 20%. Record necessary Journal entries in the books
of X Ltd. (4)
12. Extract of Receipts and Payment account for the year ended March 31, 2006 are given below:
Receipts
2004-05 3,000
2005-06 96,000
2006-07 2,500
Calculate the amount of subscription to be shown on the income side of Income and Expenditure A/c and
show the relevant data in the balance sheet on 31st March 2005 and 2006.
13. Bakul and Gokul were partners in a firm sharing profits and losses in the Ratio of 2:1 with capitals of Rs.
40,000 and Rs. 30,000 respectivley. They decide to admit Nakul into partnership on conditions that he would
bring in Rs. 20,000 as his capital and Rs. 6,000 for his share of Goodwill for 1/4th share of profit. Half of the
amount of goodwill was withdrawn by the existing partners. The capital of the partners in the New Firm were
to be arranged in profit sharing ratio on the basis of Nakul’s capital and excess or deficit capital to be
adjusted in cash. Show the capital Accounts of the Partners. (6)
14. Surya Ltd. Was formed with a nominal share capital of Rs. 20,00,000 divided into 20,000 shares of Rs.
100 each. Out of these 3,000 shares were issued to the vendors as fully paid up as purchase consideration
for a building acquired. The company offers 13,000 shares to the public payable Rs. 30 per share on
Application, Rs. 30 per shares on allotment and the balance on first and final call applications were received
for 12,000 shares. All money payable on allotment was duly received, except on 100 shars held by X. First
and final call was not made by the company. (6)
How would you show the relevant items in the Balance sheet of Surya Ltd?
15. A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1 on April, 2007, D is
admitted into the firm with 1/4th share in the profits, which he gets 1/8th from A and 1/8th from B. Other terms
of Agreement are as under:
(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. 1000 is created in respect of a claim for damages against the firm.
(iv) An item of Rs. 4000 included in sundry creditors in not likely to be claimed.
After making the above adjustment the capital accounts of 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.
241,000 241,000
Prepare Revaluation A/c, Capital Accounts and the balance sheet of the new firm. (8)
(Or)
On 31st December 2007, the Balance Sheet of P, Q and R who were partners in a firm, is under:
Liabilities Amount Assets Amount
Creditors 25,000 Building 26,000
Reserve Fund 20,000 Investment 15,000
Capital: Debtors 15,000
P 15,000 35,000 B/R 6,000
The partnership Deed provides that the profits he shard in the ratio of 2:1:1 and in the event of death of any
partner, his executors will be entitles to be paid out:
(a) The capital to his credit at the date of last Balance Sheet.
(c) His proportion of profits to the date of death on the average profits of the last thre completed years,
plus 10% and
(d) By way of Goodwill, his proportion of the total profits for the three preceding years.
(e) The net profits for the last three years were:
R died on 1st April, 2004. He had withdrawn Rs. 5,000 to the date of his death. The investments were sold at
par and R’s executors were paid off.
Prepare Partner’s Capital Accounts, R’s Executor’s account and Balance Sheet of the surviving partners P
and Q.
16. AB Ltd. Invited applications for 1,00,00 equity shares of Rs. 10 each, payable as Rs. 2 on application,
Rs. 3 on allotment and the balance on first and final call. Applications were received for 3,00,000 shares and
the shares were allotted on pro-rata basis. The excess application money was to be adjusted against
allotment money only. M, a shareholder, who had applied for 3,000 shares, failed to pay the call money and
his shares were accordingly forfeited and reissued at Rs. 8 per share as fully paid. (8)
(Or)
A company redeemed 1,000, 15% debentures of Rs. 100 each by converting them into 12% preference
shares of Rs. 100 each at 25% premium and 500, 15% debentures of Rs. 100 each by purchasing from
market for immediate cancellation at Rs. 95 a debenture. Give journal entires.
Part – B
21. Opening Stock Rs. 29,000; closing stock Rs. 31,000; Sales Rs. 3,20,000; Gross Profit Ratio = 25% on
sales.
23. From the following balance Sheets, Prepare Cash Flow Statement:
Additional Information:
(c) An Interim Dividend paid during the year Rs. 15,000. (6)
Building A/c
PAPER – 05 SOLUTION
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Solution Sample Paper -V
Personal guarantee: This guarantee is given by some particulars partners. The deficiency arising if
any will be borne by the guaranteeing partners only. [1]
4. Hidden goodwill is the excess of desired total capital of the firm over the actual combined capital of
all partners.
5. Old profit sharing ratio (including retiring partners).
1. Balance Sheet
6,40,000
10,00,000
L M N Total
Adjustment Entry :
8.
Working note:
Sacrifice or Gain:
E= 3 - 1 = 9 - 4 = 5 (Sac.)
4 3 12 12
F= 1 - 1 = 3 - 4 = 1 (Sac.)
4 3 12 12
Since F is gaining equal to ½ in the profits, therefore, he will also have to compensate E proportionately.
10.
11.
Working Note :
120
1. Income and Expenditure A/C. For the ending March 31, 2006.
1,06,000
(3 marks)
(1.5 marks)
2005-06 10,000
12,000
(1.5marks )
By prem for
Goodwill 4000 2000 -
Subscribed capital
1017000 1017000
25000 25000
By Premium -
Balance Sheet
C 40000
D 60000
240000
273000 273000
16.
1. These are short term highly liquid investment that are readily convertible into known amount of
cash and which are subject to an insignificant risk of changes in value i.e. –Bank overdraft, cash
credit, marketable see. Treasury bills, comm.,. papers etc. (1 marks)
2. Ignore accounting concept of Accrual basis 1 marks
3. Average collection Period = Average Deb x 365 1 ½ marks
( 6,00,000 – 80,000)
= 240000
= 8 times 2 Marks
242000 2 Marks
Working Capital :
Represented by
2 Marks 2 marks
As per AS – 3
Depreciation 21000
PAPER 01
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Accountancy XII
Sample Paper I
Part A
Q2. Why should a new partner contribute towards Goodwill on his admission? (1)
Q3. Give two circumstances in which sacrificing ratio may be applied. (1)
Q6. Show how would you deal with the following items in the final accounts of a club:
Debit credit
Prize fund
Q7. Raghav limited purchased a running business from Krishna traders for a sum of Rs. 15,00,000
payble Rs 3,00,000 by cheque and for the balance issued 9% debentures of Rs. 100 each at
par. (3)
The assets and Liabilities consisted of the following:
Rs
Buildings 600000
Stock 500000
Q8. A,B and C are partners sharing profits and losses in the ratio of 1 : 2: 3. They have omitted interest
on capital @ 8% p.a. for two years ended 31st March, 2008. Their fixed capitals were Rs. 400000, Rs
600000 and Rs 800000 respectively. Pass the necessary adjusting
entry. (3)
Q9. A and B are partners in a firm sharing profits in the ratio of 7:5. On April 1,2004 they admit C as a
new partner for (1/6)th share. The new ratio will be 13:7:4. C contributed the following assets towards his
capital and for his share of Goodwill.
Stock Rs. 60000; debtors RS 80000; Land 20000; Plant and Machinery Rs 120000. On the date of
admission of C, the Goodwill of the firm was valued at Rs 750000. Record necessary journal entries in the
books of the firm on C’s admission and prepare C’s capital account.
Q10. X and Y are partners in a firm sharing profits in 3:2 ratio. They admitted Z as a new partner and the
new profit- sharing ratio will be 2:1:1.
Z brought Rs 10000 for the share of Goodwill. Goodwill appeared in the books of X and Y.at Rs. 5000.
Pass the necessary Journal entries in the books of the new firm for the above
transactions. (4)
Q11. CMC Ltd. Invited applications for issuing 100000 equity shares of Rs. 10 each at a premium of Rs 3
per share. The whole amount was payable on application. The issue was over subscribed by 30000 shares
and allotment was made on pro-rata basis. Pass journal
entries. (4)
Q12. X Ltd. Made on issue of 2000. 15% debentures of Rs. 100 each of these, debentures of the face
value of Rs. 50000 are to be redeemed annually commencing from 1996, either by drawings at par or by
purchase in the open market at the company’s option.
During 1996, the company purchased for cancellation of Rs 40000 debentures at Rs 95 and Rs 10000
debentures of Rs. 98. The expenses of purchases amounted to Rs. 500
Make necessary journal entries to be passed 1996.
Q13. From the following receipts and payments Account of Sonic club and from the given additional
information prepare the expenditure on account of salaries for the year ending 31st December,2006 and
show the salaries item in the income and expenditure Account and the balance sheet as on 31stDecember,
2006.
Receipts Rs Payments Rs
By salaries:
2005 20000
2006 280000
2007 18000
Q14. A,B and C were partners in a firm sharing profits in the ratio of 5:3:2. On 31st March, 2003 their
Balance sheet was as under:
Liabilities Rs Assets Rs
Creditors 11000 Buildings 20000
Reserves 6000 Machinery 30000
Cash 8000
87000
A died on 1st October, 2003. It was agreed between his executors and the remaining
Partners that:
a) Goodwill to be valued at 2and a half years purchase of the average profit of the previous four years,
which were :
c) Profit for the year 2003 to 2004 be taken as having accrued at the same rate as that of previous year.
e) Half of the amount to A to be paid immediately to the executor and the balance transferred to his loan
A/c.
(6 marks)
Q.15)Y Ltd.issued 10000 shares of Rs. 10 each at par.Amounts were due as follows :
A, holding 200 shares did not pay the amount due on allotment and first call;and his shares were forfeited .
Final call was made after the forfeiture.B,holding 500shares failed to pay the amount due
on final call and his shares were also forfeited. Show the in the Journal of the company. Also prepare the
balance sheet.
(8 marks)
Or
Pass necessary journal enteries in the books of Roman Ltd. For the following transactions:
(1) 400 equity shares of Rs.100 each issued at a discount of 10% were forfeited for the non-payment of
final call of Rs. 20 per share .The forfeited shares wre reissuied for Rs.38000 fully paid up.
(2) 300 equity shares of Rs.100 each were forfeited for the non- payment of the allotment money of Rs. 40
per share.The first and final call of Rs. 20 per share was not paid . The forfeited shares were reissued for
Rs. 29000 fully paid up.
(8 marks)
Q16) X&Y share profits in the ratio of 3:1.Their balance sheet as on 31st December,1996,was as under :
Goodwill 16000
(iv)Z will pay Rs. 20,000 as capital and the capitals of old partner will be adjusted on the basis of new
partners capital and his share in the business, actual cash to be brought in oo withdrawn by old partners, as
the case may be .
(v)Goodwill of the form is valued at Rs. 20000. Prepare capital Accounts and the balance sheet of the new
firm. (8 marks)
OR
P,Q and R sharing profits and losses equally with effect from 1st April,2008. Following is an extract of their
Balancs sheet as at 31st March,2007:
Liabilities Rs Assets Rs
Investment fluctuation 30000 Investments(At last) 500000
Reserve
(8 marks)
PART B
1. The following figures use extracted from the trial balance of x Ltd:
You are required to draw up the liability side of the Balance sheet according requirement of the
companies Act. (3)
1. Prepare a comman size Balance sheet of x Ltd.& Y Ltd as on 31st March 2007; The Balance sheet
of Kewal Ltd. As on 31st ,2006 and 31st Decmber ,2006 were as follows:
(4)
(in Rs)
31.03.06(Rs) 31.03.07(Rs)
Additional Information :
(i)Plant and Machinery costing Rs 12,80,000 accumulated depreciation there on Rs 5,30,000 was sold at a
loss of Rs 2,60,000.
(a) The amount of plant and Machinery purchased, sold and depreciation charged for the year.
(c) How each of the item related to plant & machinery and dividend will be recorded in the cash flow
statement.
PAPER 01 – SOLUTION
leave a response
CLASS XII
Part A
Ans.1 Two contents of a partnership deed are following:-
(1) Interest on capitals :- Whether interest is to be allowed on capitals. If so, the rate of interest.
(2) Drawings:- How much amount the partners are entitled to withdraw for personal use.
Ans.2 Since a new partner gets his share of profits from old partner’s, he must compensate
the old partners for the share sacrificed by them. The amount of compensation given by the new partner is
known as good will.
Ans.3 Two circumstances in which sacrificing ratio may be applied are following:-
Ans.4 No, a company can not issue a share having face value of Rs.10 at Rs.8 because under section 79 of
the Companies Act, 1956, the rate of discount must not exceed 10% of the value of the share.
Ans.6
Fund investments
1,32,000
JOURNAL
To Bank A/C
To 9% Debentures A/C
Ans 8.
Ans 9.
JOURNAL
Working Note:-
A=
B=
Ans 10 Journal
Working Note:-
X’s sacrificed =
Y’s sacrificed =
Ans 11.)
CMC Ltd.
Journal
(100000 x Rs 3)
Ans 12
JOURNAL
Dr (Rs) Cr (Rs)
Date Particulars
1996 Own Debentures A/c Dr 48300
Dec 31 To Bank A/c 50000 48300
Dec31 (purchase of own debentures 400 @ 95 and 100 @ 98 plus 1700 48300
Rs 500 expenses for purchase)
Dec 31 1700
15% Debentures A/c Dr
1700
To own debentures
Working Note:-
47800
Ans 13
40000
Balance Sheet
Balance Sheet
(25000-20000) 5000
For 2006
(45000-5000) 40000
Ans 14
Rs. 37500
It will be adjusted into the capital Accounts of B & C in the gaining ratio of 3:2
5000
Ans 15
Cash Book
JOURNAL
Balance sheet
93000 97500
4,500
Ans 16
Capital Accounts
Particulars X Y Z particulars X Y Z
To P & L A/c 12000 4000 BY Bal c/d 68000 31000
To revaluation 12300 4100 4000 By Y’s capital A/c 1000 4100 20000
To Goodwill 6000 2000 16000 By z’s capital A/c 4000 35100 20000
Balance Sheet
Z 16000
Working Note:-
X= (sacrifice)
Y= (gain)
Z= (gain)
(2) After adjustment for goodwill, z’s capital is reduced by Rs. 4000 to Rs. 16000. The profit sharing ratio
is 5:3:2. Therefore, based on z’s capital, the total capital of the new firm will be;
(3) Cash balance = Rs. 7,800 + Rs. 20,000- Rs. 2,700 + Rs 4,100
= Rs. 29,200
OR
JOURNAL
Case III
PART – B
1. Description charged
2. Good will write of.
A.19 Cash Equivalents: – Cash equivalents are shorts term highly liquidly investments that carry in
significant risk of change in value.
A.21
Ans 22.
Gross Credit Sales = Cash received from Debtors + Sales Returns + Closing Debtors – Opening Debtors.
= Rs. 240000
= Rs. 37500
= 6 times
Ans 23
PART A
(Not for profit organisations, partnership firms and company accounts)
Ans. Two main sources of income of a not for profit organisation are: (any two)
(a) Subscriptions
Ans. A’s claim is not valid as in the absence of a partnership deed, no salary is allowed to any partner.
Ans. Gaining ratio is the ratio in which the remaining/ continuing partners acquire the share of the outgoing partner.
Ans. Occasions when reconstitution of a partnership firm takes place are: (Any two)
Ans. If a shareholder makes a default in sending the call amount due on allotment or on any calls, the amount not so se
unpaid amount on calls due.
Rs.
opening stock of stationery 8,000
49,000
Alternate solution:
Balance c/d
55,000
7 - 6 Q. PS Ltd. forfeited……………………company.
Ans. Journal
Note: No marks should be given for the journal entry if the examinee has written capital accounts instead of cur
Working notes:
Partners Cr. interest on Cr. salary Dr. profits Cr. profits Net Effect
capital Dr.
Journal
Note: If the goodwill entry is wrong but the goodwill is calculated correctly, 1 mark should be given.
SHARE CAPITAL
Authorised Capital 4,00,000
Subscribed capital
2,79,600
OR
SHARE CAPITAL
Authorised Capital 4,00,000
2,79,600
43,550 43,550
Dr. Income and Expenditure A/c for the year ended 31st March 2006 Cr.
Surplus
40,800
Note : If an examinee has capitalized Government Grants by giving a note, full credit is to be given and the Surp
13 Q. A and B were partners……………….on C’s admission.
Sacrificing ratio = 20 : 9
New ratio = 40 : 27 : 29
Journal
Premium A/c
(Cash brought in by C as his share of capital and goodwill)
allotment A/c
7% Debentures a/c
(b)
Own Debentures A/c Dr. 2,91,000
Bank A/c
Profit on cancellation of
debentures A/c
(c)
9% Debentures A/c Dr. 1,80,000
Debentureholders A/c
11,400
Particulars X Y Z Particulars X Y Z
Balance c/d 66,500 44,900 20,000 Bal b/d 50,000 35,000 -
G Reserve 10,000 6,000 -
Y 29,900 Cash 4
1,57,400 1
Note: if an examinee has calculated the adjusted capitals as:
X Rs.20,000; Y Rs.12,000 and Z Rs.16,000 and the total of the Balance Sheet is Rs.1,53,400, only ½ mark is to be
OR
8,400 8,400
Ans. Journal
Date Particulars
Bank A/c Dr
Share application A/c
Bank A/c
OR
OR
OR
OR
Ans. Journal
Date Particulars
Bank A/c Dr
Share application A/c
Bank A/c
OR
OR
OR
• Fixed Assets
• Investments
• Current Assets, loans and advances
• Miscellaneous Expenditure
Absolute
2006 2007 Percentage
Particulars Increase/
(Rs.) (Rs.) increase/ decrease
decrease
= 2,25,000 + 3,00,000
= 5,25,000
= 5,25,000 – 6,80,000
= – 1,55,000
= (1,55,000/5,25,000) x 100
= 29.52%
OR Gross Profit Ratio = Gross profit x 100
Net Sales
= – 1,55,000 x 100
5,25,000
= - 29.52%
= 5,25,000
2,10,000
= 2.5 times
OR
= 6,80,000
2,10,000
= 3.24 times
= 8,00,000/ 14,30,000
= 80 : 143 or 55.94%
14,30,000 14,30,000
23 - - Q. From the following ……………..Cash Flow Statement.
Ans.
Cash Flow Statement for the year ended 31st March 2007
Particulars (Rs.)
Cash flows from operating activities
Net profit before tax 20,000
Increase in Debtors
(2,80,000)
Increase in Stock
50,000
Cash used in operating activities
(80,000)
(20,000)
Redemption of Debentures
Dividend paid
Working Notes:
7,80,000
Note 1: Full credit to be given to an examinee if he/she has taken preference dividend separately. The answers w
Dr. Fixed assets A/c Cr.
Net Profit before tax = Rs.14,800
Note 2: In case, interest on debentures and dividend on preference shares has been calculated on the closing balances, n
Q. SET No. ADDITIONAL QUESTIONS OF SET II DISTRI-
67/1/1 67/1/2 67/1/3 67/1/2 BUTION
PART A
(Not for profit organisations, Partnership firms and Company accounts)
(b) Main sources of income are: Subscriptions from members, donations, grants etc.
(d) They are in the form of charitable societies, trusts, clubs etc.
Ans. No, Ramesh’s claim is not valid as in the absence of a partnership deed, profit are to be 1 mark
shared equally.
Ans. Sacrificing ratio is the ratio in which the existing partners sacrifice their share in favour of
the incoming partner.
Ans. Calls-in-Advance means the amount received by a company from its shareholders in excess 1 mark
of the amount due from them.
Rs.
(1/2 + 1+ 1+
½=
3 marks)
Alternative solution:
OR
Balance c/d
1,44,650 1 mark for
½ mark for
purchases +
½ mark for
the answer
=(1+ 1+ ½ +
½ =3 marks)
3 marks
journal
Note: No marks should be given for the journal entry if the examinee has written capital entry
accounts instead of current accounts.
+
Working notes:
3 marks
Partners Dr. Cr. Net Effect
for correct
interest profits Dr. Cr.
on working
drawings
in any
4 marks)
Cash Flow Statement for the year ended 31st March 2007
20,000
(10,000)
(20,000) 1 marks
(10,000)
55,000
5,000
25,000
Sale of machinery
Redemption of Debentures
Dividend paid
Particulars Amt(Rs.) Particulars Amt(Rs.)
Interest paid on Debentures
Balance b/d 2,50,000 Bank-sale 15,000
Bank
Cash -purchase 1,50,000
generated from financing activities Loss on sale 35,000
½ mark
Net increase in cash and Cash Equivalents Balance c/d 3,50,000
4,00,000
Add opening balance of Cash and Cash equivalents 4,00,000
=
Note 1: Full credit to be given to an examinee if he/she has taken preference dividend
Closing balance of Cash and Cash equivalents
separately. The answers would be: (1+ 1+ 1+ 2
Working +½+½
Net ProfitNotes:
before tax = Rs.87,400
Note 2: In case, interest on debentures and dividend on preference shares has been calculated on
the closing balances, no marks should be deducted.
PART A
(Not for profit organisations, Partnership firms and Company accounts)
Journal = (½ + ½ + 1
+ 1=
Date Particulars F Dr. (Rs.) Cr.(Rs.)
Cash A/c Dr. 2,22,000 3 marks)
D’s Capital a/c 1,80,000
(3 + 3 = 6
marks)
Ans. Journal
Debentureholders A/c
(Amount due to Debentureholders)
(b)
Bank A/c 20,72,70,000 20,72,70,000
Dr.
Debenture Application
(c)
9% Debentures A/c Dr. 1,50,000 1,87,500
Debentureholders A/c
(Paid to Debentureholders )
1x6
= 6 marks
Income and Expenditure A/c for the year ended 31st March 2006
+
Expenditure Amount Income Amount
(Rs.) (Rs.)
the Income
and
Expenditure
A/c
1/2 x 8 = 4
Marks
2+4
6 marks
Part B
Ans.
Cash Flow Statement for the year ended 31st March 2007
40,000
(30,000)
(30,000)
(15,000) 1 marks
65,000
10,000
40,000
60,000
Purchase of fixed assets
Sale of machinery
Dividend paid
Balance c/d
Add opening balance of Cash and Cash Equivalents 5,00,000
5,60,000
Closing balance of Cash and Cash Equivalents 5,60,000
Note 1: Full credit to be given to an examinee if he/she has taken preference dividend
Working Notes:
separately. The answers would be:
6 marks)
Part –C
2 marks
2 marks
2 marks
4 marks
(4+3) 7 mark
Ans :The commands which are used to control the data stored in a database is called Data control
language (DCL). They represent the GRANT, REVOKE etc
2 marks
Ans hysical data independence means that the Physical structure of the data may be changed without
changing the logical structure, and Logical data independence means change at the logical level without
changing the Application programme
4 marks
2 marks