2. The capital accounts of A and B stood at Rs.4,00,000/- and Rs.3,00,000/- respectively after

Transcription

1 DEHRADUN PUBLIC SCHOOL I TERM ASSIGNMENT(201617) SUBJECT ACCOUNTANCY (055) CLASS XII Ch 1 FUNDAMANTAL OF PARTNERSHIP 1. Amit and Vijay started a partnership business on 1 st April, Their capital contributions were.2,00,000 and.1,50,000 respectively. The partnership deed provided inter alia that: (a) Interest on 10% p.a. (b) Amit to get a salary of.2,000 per month and Vijay.3,000 per month. (c) Profits are to be shared in the ratio of 3:2. The profits for the year ended 31 st March, 2011 before making above appropriations were.2,16,000. Interest on drawings amounted to.2,200 for Amit and.2,500 for Vijay.Prepare Profit and Loss Appropriation A/c. 2. The capital accounts of A and B stood at.4,00,000/ and.3,00,000/ respectively after necessary adjustments in respect of the drawings and the net profits for the year ended 31 st March, It was subsequently ascertained that 5% p.a. interest on capital and drawings were not taken into account in arriving at the net profit. The drawings of the partners had been : A. 12,000/ drawn at the end of each quarter and B.18,000/ drawn at the end of each half year. The profits for the year as adjusted amounted to.2,00,000/. The partners share profits in the ratio of 3:2.You are required to pass journal entries. 3. A, B and C were partners in a firm having capitals of.50,000;.50,000 and.1,00,000 respectively. Their current account balances were A:.10,000 B:.5,000 and C:.2,000 (Dr.). According to the partnership deed the partners were entitled to an interest on 10% p.a. C being the working partner was also entitled to a salary of.12,000 p.a. The profits were to be shared as: (a) The first.20,000 in the proportion to their capitals. (b) Next.30,000 in the ratio of 5:3:2. (c) Remaining profits to be shared equally. The firm made a profit of.1,72,000 before charging any of the above items. Prepare the profits and loss appropriation account and pass the necessary Journal entry for the appropriation of profits. 4. Ram, Mohan and Sohan sharing profits and losses equally have capitals.1,20,000;.90,000 and.60,000. For the year 2009, interest was credited to 6% instead of 5%. Give the adjusting journal entry. 5. A, B and C are partners in a firm. Their profit sharing ratio is 2:2:1. However, C is guaranteed a minimum amount of.10,000 as share of profits every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2009 and 31st March, 2010 were.40,000 and.60,000 respectively. Prepare the profit and loss appropriation account for the two years. 6. A partnership deed provides for the payment of interest on capital but there was a loss instead of profits during the year At what rate will the interest on capital be allowed? 7. A and B are partner s dealing in manufacturing Plastic Polythene were sharing profits in the ratio of 3:2. Their capitals are. 70,000/ and. 50,000/ respectively. The government banned the plastic and therefore, they shifted to manufacturing paper bags. Their sale was going down consistently as compared to previous years. They employed a new marketing manager to uplift the sale volume from the current year. To motivate the manager, firm provided him 5% commission on net profit earned during the year. Net profit earned during the year was. 2,00,000/. The firm also admitted one new partner C, who is marketing expert, for 1/4th share with a guarantee of minimum profit of. 50,000/ every year as he needed this money for her daughter s marriage. Prepare profit and Loss Appropriation Account to show the effect of the above transactions. Page 1 of 19

2 Identify the values which according to you are highlighted in the above problem. 8. A, B and C are partners in a firm. A and B sharing profits in the ratio of 5:3 and C receiving a salary of.150 per month, plus a commission of 5% on the profits after charging such salary and commission or 1/5 the of the profits of the firm, whichever is larger. Any excess of the latter over the former is, under the partnership agreement, to be borne personally by A. The profits for the year ended 31st March, 2010 amounted to.10,710 after charging C s salary. Prepare the Profit and Loss Appropriation Account showing the division of the profits of the firm. 9. A and B entered into partnership on 1st April 2009 without any partnership deed. They introduced capitals of 5,00,000 and 3,00,000 respectively. On 31st October 2009, Advanced 2,00,000 by way of loan to the firm without any agreement as to interest. The profit and loss account for the year ended showed a profit of 4,30,000, but the partners could not agree upon the amount of interest on loan to be charged and the basis of division of profits. Pass the necessary journal entries for the distribution of the profit between the partners and prepare the Capital A/cs of both the partners and Loan A/c of A. 10.The partners of a firm distributed the profits for the year ended 31st March, 2011,.90,000 in the ratio of 3:2:1 without providing for the following adjustments (a) A and B were entitled to a salary of.1,500 each p.a. (b) B was entitled to a commission of.4,500. (c) B and C guaranteed a minimum profit of.35,000 p.a. to A. (d) Profits were to be shared in the ratio of 3:3:2. Pass the necessary journal entry for the above adjustments in the books of the firm. CH 2 VALUATION OF GOODWILL 11.A business has earned average profit of. 60,000 during the last few years. The assets of the business are. 5,40,000 and its external liabilities are. 80,000. The normal rate of return is 10%. Calculate the value of goodwill on the basis of capitalisation of super profits. 12.The capital of a firm of Arpit and Prajwal is.10,00,000. The market rate of return is 15% and the goodwill of the firm has been valued.1,80,000 at two years purchase of super profits. Find the average profits of the firm. 13.Goodwill is to be calculated at one year's purchase of the average of the last 3 years profit. The profit of the firm in first year was.6000, second year twice the profit of the first year, third year 1/2 of the profit of the second year. Calculated goodwill. 14.The books of Ram and Bharat showed that the capital employed on was. 5,00,000 and the profits for the last 5 years : ,000; ,000; ,000; ,000 and ,000. Calculate the value of goodwill on the basis of 3 years purchase of the average super profits of the last 5 years assuming that the normal rate of return is 10%? 15.A firm earned profits of.80,000, 1,00,000,.1,20,000 and.1,80,000 during , , and 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. (CBSE 2015 Sample Paper) 16.A and B are partners sharing profits in the ratio of 3:2. They decided to admit C who is specially able as a partner from 1st April, 2014 on the following terms: C will be given 2/5th share of the profit. Goodwill of the firm will be valued at two year s purchase of three years normal average profits of the firm. Profit of the previous three years ended 31st March were: 2014 Pro it. 30,000/ (after debiting loss of stock by fire. 40,000/) 2013 Loss. 80,000/ (includes voluntary retirement compensation paid. 1,10,000/) 2012 Pro it. 1,00,000/ (includes a profit of. 30,000/ on the sale of assets). Calculate goodwill for the year and C s share of Goodwill. Page 2 of 19

3 Which value do you find here? (CBSE 2015 Sample Paper) CH 3 CHANGE IN PROFIT SHARING RATIO 17.X, Y and Z were partners sharing profits and losses in the ratio of 4:3:2. Goodwill does not appear in the books but it is worth The partners decide to share future profits in equal proportions.give a journal entry to record the above change. Also indicate the individual partners gain or loss due to change in the ratio. Show your working clearly. 18.Shivam and Vishal are partners sharing profits and losses in the ratio of 3:2. It was decided to share future profits in the ratio of 1:1. For this purpose Assets were revalued from.5,00,000 to.8,00,000. Assets were to be shown at their original values. Journalize. 19.X, Y and Z are partners sharing profits in the ratio of 4:3:2. From April 1,2008, they decided to share the profits equally.on that date their books showed a credit balance of.1,80,000 in the Profit and loss Account and a balance of in the General Reserve.Record the necessary journal entry for the distribution of profit and General reserve. 20.P,Q and R sharing profits and losses in the ratio of 3:2:1,decide to share future profits and losses in the ratio of 4:3:2 with effect from 1April,2015.Following is an extract of their Balance sheet as at 31 st March,2015; Liabilities Workmen Compensation 60,000 Reserve Show the accounting treatment under the following alternative cases ; Case (i) If there is no other information. Case(ii)If a claim on account of workmen compensation is estimated at P, Q and R sharing profits and losses in the ratio of 3:2:1,decided to share profits and losses equally with effect from 1 st April 2008.Following is an extract of their Balance Sheet as at 31 st march,2015; Liabilities. Assets. Investment fluctuation 30,000 Investment(At cost) 5,00,000 Reserve Show the accounting treatment under the following alternative cases; Case (i) If there is no other information. Case(ii) If the market value of investment is.5,00,000. Case (iii)if the market value of investment is A,B and C are partners in a firm sharing profits and losses in the ratio of 4:2:1.Their Balance Sheet as at 31 st March 2015 stood as follows; Liabilities. Assets. Sundry creditors 40,000 Sundry Assets 7,20,000 Reserves 1,30,000 Profit and loss 50,000 A/C(Profit) Capital Accounts: A 2,00,000 B 2, C 1,00,000 5,00,000 7, ,20,000 From 1 st April 2015, the partners decided to change their profit sharing ratio to 5:3:2. For this purpose goodwill was valued at.1,00,000. The partners do not want to record the goodwill and also do not want Page 3 of 19

4 to distribute the reserves and profits. You are required to record the change by passing a single journal entry. Also prepare the revised Balance sheet. 23.X,Y and Z are partners sharing profits in the ratio of 3:2:1.Z is facing acute financial difficulties and it is now agreed that will share the future profits equally. You are required to identify the virtues involved in changing the profit sharing ratio. CH 4 ADMISSION OF A PARTNER 24.Suresh and Ramesh were partners in a firm sharing profits in 5:3 ratio. On they admitted Deepak as a new partner for ¼ share. On 31 st July,2015 Karan was admitted as a new partner for 1/6 share which he acquired equally from Suresh, Ramesh and Deepak. Calculate the new profit sharing ratio of Suresh, Ramesh, Deepak and Karan. 25.Arun,Bhushan and Chetan are partners in a firm sharing profits in 3:2:3 ratio. They decide to admit Shehzad as a partner,who is associated with them as their selling agent for the last 10 years. Arun surrendered 1/3 of his share in favour of Shehzad, Bhushan surrendered ¼ of his share in favour of Shehzad and chetan surrendered1/5 of his share in favour of Shehzad. (i)calculate new profit sharing ratio,and (ii) Highlight the values in admitting Shehzad. 26.Mukesh and Manish are partners sharing profits min the ratio of 3:2.They admit Ruchika into the firm for 3/8 profit, which she takes 2/8 th from Mukesh and 1/8from Manish and bring 1,800 as a premium,out of her share of 2,000. Goodwill account does not appear in the books of Mukesh and Manish. Give journal entries and the new ratio of Mukesh, Manish and Ruchika. 27.Ramesh and Suresh are partners sharing profits in the ratio of 3:1.Their capital contribution as on 31 st March 2015(after all adjustments except goodwill),were.1,00,000 and.1,50,000 respectively. On the same date,they admit Vinita into partnership with the condition that she will bring proportionate capital. Their new profit sharing ratio was 5:3:2.Vinita bring cash.2,500,stock.40000,machinery.45,000 and goodwill.15,000 towards her share of capital and premium. You are required to pass the necessary journal entries at the time of Vinita s admission in the books of the firm. 28.Hari,Ravi and Kavi were partners in a firm sharing profits in the ratio of 3:2:1.They admitted Guru as a new partner for 1/7 th share in profits.the new profit sharing ratio will be 2:2:2:1 respectively.guru brought.3,00,000for his capital and.45,000 for his 1/7 th share of goodwill.showing your working clearly,pass the necessary journal entries in the books of the firm for the above mentioned transactions. 29.X and Y are in partnership sharing profits in the ratio of 5:3 respectively.their balance sheet is as follows; Liabilities. Assets. Creditors 28,000 Cash at Bank 15,800 Workmen s compensation Reserve 12,000 Debtors 40,000 Less:provision 1,800 Page 4 of 19 38,200 Z S loan A/C 30,000 Stock 56,000 Capital A/C Investment 10,000 X 50,000 Goodwill 10,000 Y 40,000 plant 30,000 1,60,000 1,60,000 Z is admitted into the partnership on the following terms. (1)The new ratio will be 4:3:2 between X, Y and Z respectively. (2) Z s loan should be treated as his capital.

5 (3)Goodwill of the firm is valued at.27,000. (4).8,000 of investment were to be taken over by X and Y in their profit sharing ratio. (5)Stock be reduced by 10% (6)provision for doubtful debts should on debtors and a provision for discount on also be made. (7)The liability of workmen s compensation reserve was determined to be.15,000. (8)X is to withdrawn.6,000 in cash. Give journal entries to record the above and prepare balance sheet of the new firm. 30.X and Y were partners in a firm sharing profits in 5:3 ratio.they admitted Z as a new partner for 1/3 rd in profit. Z was to contribute.20,000 as his capital. The balance sheet of X and Y on the date of Z s admission was as follows: Liabilities. Assets. Creditors 27,000 Land and Building 25,000 Capital; Plant and Machinery 30,000 X 50,000 Stock 15,000 Y 35,000 85,000 Investment 20,000 General Reserve 16,000 Cash 19,500 Debtors ,500 Less provision ,28,000 1,28,000 Other terms agreed upon were: (1)Goodwill of the firm was valued at.12,000. (2)Land and Building were to be valued at.35,000 and Plant and Machinery at (3)The provision for doubtful debts was found to be in excess by.400. (4)A liability for.1,000 included in sundry creditors was not likely to arise. (5)The capitals of the partners be adjusted on the basis of Z S Contribution of capital in the firm. (6)Excess or shortfall if any to be transferred to current accounts. Prepare Revaluation Account, Partner s capital Account and Balance Sheet of the new firm. 31.C and P are partners sharing profits and losses in the ratio of 5:4.The following is the Balance Sheet of the firm as at Liabilities. Assets. Capitals C 1,89,000 Plant and Machinery 1,08,000 P 1, Land and Building 2,02,500 Creditors 54,000 Debtors 55,350 Less: provision Bills payable 8,100 Stock Bank Overdraft 45,900 Cash in hand 39,960 4,59,000 4,59,000 M is admitted on 1 st April 2015 for 1/6 th share in profits which he takes from C and P in the ratio of 2:1. Following terms are agreed uponi) M will bring capital to the extend of 20% of the total capital of the new firm after adjustments. ii) Goodwill of the firm is valued at and M will bring his share of goodwill in cash. iii) Land and building is to be appreciated by.7500 and plant and machinery to be decreased by iv) Provision on debtors is to be maintained at 10%. Prepare Revaluation account, Partners Capital account and the balance sheet of the new firm. 32. X and Y were partners in a firm sharing profits in the ratio of 3:1. They admitted Z as a new partner for 1/4 th share in the profits. Z was to bring as his capital and the capital 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 st march 2015 was as follows: Page 5 of 19

6 Liabilities Amount Assets Amount Creditors Bills Payable General Reserve Capitals: X Y Cash Debtors Stock Machinery Building Page 6 of Other terms of agreements on Z s admission were as follows: i) Z will bring.6000 for his share of goodwill. ii) Building will be values at and machinery at iii) A provision of 5% on debtors will be created for bad debts. iv) Capital accounts of X and Y were adjusted by opening current accounts. Prepare Revaluation account, Partners Capital account and the balance sheet of the new firm. CH5 RETIREMENT AND DEATH OF A PARTNER 33.A, B and C are partners in a firm sharing profits in the ratio of 5:4:3. B retired and his share was divided equally between A and C. Calculate new profit sharing ratio of A and C. 34.A, B and C were partners sharing profits in the ratio of 2/6, ½ and 1/6. A retires and surrenders 2/3 rd of his share in favour of B and remaining in favour of C. Calculate new ratio and gaining ratio. 35.S,T and U were partners in a firm sharing profits in the ratio of 1:2:2. On 15 th February 2015 S died and new ratio of T and U was 3:2. On S s death the goodwill of firm was valued at. 60,000. Calculate the gaining ratio and pass journal entry on S s death for the treatment of goodwill without opening goodwill account. 36.A, B and C were partners sharing profit and losses in the ratio of 2:2:1. On 1 st April 2015 their goodwill was valued at.75000, there being no account for it in the books. On this date B retired. Pass necessary journal entry. 37.The Balance sheet of A,B and C on 31 st December 2015 was as under: Liabilities Amount Assets Amount Capital A B C General reserve Sundry Creditors ,23,000 Building Motor Car Stock Investment Debtors Patents ,20, ,30,000 2,30,000 The partners share profits in the ratio of 8:4:5. C retires from the firm on the same date subject to the following terms and conditions : i) 20% of the general reserve is remain as a reserve for bad and doubtful debts. ii) Motor car is to be decreased by 5%. iii) Stock is to be revalued at iv) Goodwill is to be valued at 2 years purchase of the average profit of last 3 years. Profits were ;2009: 11000; 2010: and 2011: C was paid in full. A and B borrowed the necessary amounts from the bank on the security of motor car and stock to pay off C Prepare Revaluation account, Partners Capital account and the balance sheet of the new firm.

7 38.The balance sheet of Keshav, Nirmal and Pankaj who are partners in a firm sharing profits according to their capitals as on 31 st March,2015 was as follows: Liabilities Amount Assets Amount Capital Keshav Nirmal Pankaj General reserve Sundry Creditors 1,60, Building Machinery Stock Cash at bank Debtors Less:Provision 2000 Page 7 of ,02,000 4,02,000 On 1 st April 2015 Nirmal decided to retire from the firm and was paid for his share in the firm subject to the following: i) Building to be appreciated by 20%. ii) Provision for Bad Debts to be increased to 15% on Debtors. iii) Machinery to be depreciated by 20%. iv) Goodwill of the firm is valued at.1,44,000 and the retiring partner s share is adjusted through the capital account of remaining partners. v) The capital of the new firm be fixed at. 2,40,000 Prepare Revaluation account, Partners Capital account and the balance sheet of the new firm. 39.following is the balance sheet of Aruna,Karuna and varuna as at 31 st march,2015,who have agreed to share profits and losses in their capitals. Liabilities. Assets. Capitals Land and Building Aruna Machinery Karuna Stock Varuna Debtors Less: Provision General reserve Bank Workmen Compensation Reserve Sundry Creditors Total On 31 st March, 2015 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 reassess the liabilities on the following basis: i) Land and building to be appreciated by 30%. ii) Machinery be depreciated by 20%. iii) There were bad debts of.17,000. iv) The claim on account of workmen s compensation was estimated at v) Goodwill of the firm was valued at. 1,40,000 and Aruna s share of Goodwill be adjusted against the Capital Accounts of the continuing partners Karuna and Varuna who have decided to share future profits in the ratio 4:3 respectively. vi) Capital of new firm in total will be the same as before the retirement of Aruna and will be in the new ratio.

8 vii) Amount due to Aruna be settled by paying in cash and balance by transferring to her loan account which will be paid later on. Prepare Revaluation account, Partners Capital account and the balance sheet of the new firm. 40.Following is the Balance Sheet of Punita, Rashi and Seema who are sharing profits in the ratio of 2:1:2 as on 31 st March,2013. Liabilities Amount Assets Amount Capital Punita Rashi Seema Bills payable Sundry Creditors 1,44,000 92,000 1,24, Building P & L Account Stock Cash at bank Debtors ,00,000 4,00,000 Punita died on 30 th September, 2013 she had withdrawn from her capital on July1,2013.According to the partnership agreement, she was entitled to interest on p.a. Her share of profit till the date of death was to be calculated on the basis of the average profit 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 , and were.30000, and respectively. Prepare Punita account to be rendered to her executors. 41.Nitya,Satya and Mithya were partners sharing profits and losses in the ratio of 5:3:2 respectively. Their balance sheet as at December 31,2001 was as follows; Liabilities. Assets. Creditors Investment Reserve fund 6000 goodwill 5000 Capital accounts; Premises Nithya Patents 6000 Sathya Machinery Mithya Stock Debtors 8000 bank Mithya dies on The agreement between the executors of Mithya and the partners stated that; (a)goodwill of the firm be valued at 2 times the average profits of last four years.the profits of four years were: ; ; and (b)the patents are to be valued at.8000; Machinery at and premises (c)the share of profit of Mithya should be calculated on the basis of the profits of (d).4200 should be paid immediately and the balance should be paid in 4 equal halfyearly installments carrying Record the necessary journal entries to give effect to the above and write the executor account till the amount is fully paid. Also prepare the balance sheet of Nithya and Sathya as it would appear on after giving effect to the adjustments. Ch 6 DISSOLUTION OF FIRM Page 8 of 19

9 42.On a firms dissolution debtors as shown in the Balance sheet were out of these became bad. One debtor of became insolvent and 40% could be recovered from him. Full recovery was made from the balance debtors. Calculate the amount received from debtors and pass necessary journal entry. 43.What journal entries would be passed in the books of A and B who are partners in a firm, sharing profits in the ratio of 5:2, for the following transactions on the dissolution of the firm after various assets (other than cash) and third party liabilities have been transferred to Realisation Account? (a) Bank loan. 12,000 is paid. (b) Stock worth is taken over by B. (c) Loss on Realisation. 14,000. (d) Realisation expenses amounted to. 2,000, B has to bear these expenses. (e) Deferred Revenue Advertising Expenditure appeared at. 28,000. (f) A typewriter completely written off in the books of the firm was sold for A and B were partners in a firm sharing profits and losses equally. Their firm was dissolved on 15th March, 2004, which resulted in a loss of. 30,000. On that date the capital A/C of A showed a credit balance of. 20,000 and that of B a credit balance of The cash account has a balance of You are required to pass the necessary journal entries for the (i) Transfer of loss to the capital accounts and (ii) making final payment to the partners. 45.Give journal entries for the following transactions: 1. To record the Realisation of various assets and liabilities, 2. A Firm has a Stock of 1,60, Aziz, a partner took over 50% of the Stock at a discount of 20%, Remaining Stock was sold at a profit of 30% on cost, 4. Land and Buildging (book value 1,60,000) sold for 3,00,000 through a broker who charged 2%, commission on the deal, 5. Plant and Machinery (book value 60,000) was handed over to a C reditor at an agreed valuation of 10% less than the book value, 6. Investment whose face value was 4,000 was realised at 50%. 46.Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5:3:2 Inspiteof repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolutions of their partnership firm on 31 st March Prachi was deputed to realize the assets and pay the liabilities. She was paid. 1,000 as commission for her services. The financial position of the firm was as follows : Liabilities Amount Assets Amount Creditors 10,000 Furniture 37,000 Investment Fluctuation Fund 4,500 Stock 5,500 Capital : Investments 15,000 Prachi 40,000 Cash 9,000 Ritika 30,000 70,000 Ishita s Capital 18,000 84,500 84,500 Following was agreed upon : Prachi took over investments for. 12,500. Stock and furniture realized. 41,500. There was old furniture which has been written off completely from the books. Ritika agreed to take away the same at the price of. 3,000. Compensation paid to the employees amounted to. 8,000. The liability was not provided in the above Balance sheet. Realization expenses amounted to Prepare Realization account, Partners capital accounts in the books of the firm. Also identify the values being conveyed in the question. (CBSE 2013) 47. Following is the Balance sheet of A and B on 31 st December 2011 Page 9 of 19

10 Liabilities Amount Assets Amount 60,000 1,000 16,000 16,000 10,000 10,000 20,000 20,000 20,000 2,000 Sundry Creditors Bills payable Mrs. A s Loan Mrs. B s Loan General Reserve Investment fluctuation fund A s Capital B s Capital 20,000 20,000 Cash in hand Cash at Bank Stock in Trade Investment Debtors 40,000 Less Provision 4,000 Plants & fitting Building Goodwill Profit and Loss 36,000 40,000 30,000 8,000 7,000 1,68,000 1,68,000 The firm was dissolved on 31 st December, 2011 on the following terms: i. A promised to pay off Mrs. A s Loan and took away half stock at. 8,000 ii. B took away half the investment at 10% discount. iii. Debtors realization. 38,000. iv. Creditors and bills payable were due on an average basis one month after 31 st December, but they were paid immediately on 31 st December, at 6% discount per annum. v. Plant realized. 50,000, Building. 80,000, Goodwill. 12,000 and remaining investment at. 9,000. vi. There was an old typewriter in the firm which had been written off completely from the books. It is now estimated to realize It was taken away by B at this estimated price. vii. Realization expenses were. 2,000. Give necessary ledger accounts to close the books of the firm. 48.P, Q and R were partners sharing profits and losses in the ratio of 2: 2:1. When they dissolved the firm, their Balance sheet was as follows: Liability Amount Assets Amount P s Capital Q s Capital R Capital Creditors Loan 1,91,250 1,65,000 25,500 24,000 17,250 Cash Stock Debtors 1,86,300 Less: provision for d/d 1,800 19,800 26,700 1,84,500 Furniture Other Sundry Assets 16,500 1,75,500 4,23,000 4,23,000 It was agree that: i. The expenses of the realization were 4,050 ii. P to take over furniture at 12,000 and debtors amounted to 1,08,000 and the creditors of 24,000 were to be paid by him at this figure. iii. Q to take over sundry assets at 1,08,000 (being 90% of book value) as well as the entire stock for 25,500 iv. R to assume the responsibility of discharge of loan together with outstanding interest of.3,450 and to take over the remaining sundry assets at 20% less than their book value. v. The remaining debtors were sold to a debt collecting agency at half value. Prepare accounts to close the books of the firm.. ( 2015 SAMPLE PAPER ) 49.A, B and C are partner sharing profit and losses in the ratio of 2:1;1. They decided to dissolve their firm on 1 st april, Complete the realization account, partner capital account and bank account from the information given below: REALIZATION ACCOUNT Particular. Particular. Page 10 of 19

11 To sundry assets Goodwill Building Machinery Motor Debtor To bank (creditors) To bank (expenditure) By creditors By bank A/c assets realised Goodwill20000 Building Machinery Motor Debtor By loss on realization A capital B capital C capital PARTNERS CAPITAL ACCOUNT Particular A B C Particular A B C To realization a/c To bank By balance b/d (bal figure ) Particular To balance b/d To 2000 BANK ACCOUNT Particular By By By A s capital final payment by B s capital final payment by C s capital final payment Ashish and Neha were partners in a firm sharing profits and losses in the ratio 4:3. They decided to dissolve the firm on 1stMay From the information given below, complete Realisation A/c, Partner s capital accounts and Bank A/c: Page 11 of 19

12 Dr. REALISATION A/C Cr. Liabilites Amount Assets Amount To Sundry Assets : Machinery Stock Debtors To Bank: Creditors 5,60,000 90,000 55,000 By Sundry Liabilities: Creditors Ashish's wife's loan By Bank: Machinery Debtors 40,000 25,000 4,80,000 10,000 To Ashish's Capital A/C: Ashish's wife's loan To Neha's Capital A/C: Realisation expenses To profit transferred to: Ashish's Capital A/C 4,000 Neha's Capital A/C 3,000 34,000 7,000 By Ashish's Capital A/C: Stock 1,28,000 Typewriter 70,000 By Neha's Capital A/C Debtors 1,98,000 40,000 7,000 7,93,000 7,93,000 Dr. Partner's Capital Accounts Cr. Particulars Ashish Neha Particulars Ashish Neha To Realsation A/C To Bank A/C 4,00,000 4,50,000 By By By Dr. Bank A/C Cr. Particulars Amount Particulars Amount To Balance b/d To Realisation A/c By Realisation A/C By Ashish',s loan By Ashish's Capital A/C By Neha's Capital A/C 4,000 4,00,000 (2015 CBSE SAMPLE PAPER ) Page 12 of 19

13 PARTB (CHAPTER 14) CHAPTER:1 FINANCIAL STATEMENT OF A COMPANY 1. MN Ltd. has an authorized capital of.50,00,000 divided into equity shares of 10 each. The company invited applications for.3,00,000 shares. Applications for.2,75,000 shares were received. All calls were made and were duly received except the final call of.3 per share on.5,000 shares..4,000 of the shares on which the final call was not received were forfeited. Show how share Capital will appear in the Balance Sheet of the company as per Schedule III Part I of the Companies Act 2013? Also prepare notes to accounts. 2. On 1 st April, 2012 X Ltd. has a debit balance of.3,00,000 in Reserves and Surplus as Balance of Statement of Profit & Loss. It earned a profit of.5,00,000 for the year ended 31st March, How would you show these items in the Balance Sheet and notes to accounts? 3. Y Ltd. has the following balances on 1st April, 2012:. Securities Premium Reserve 6,00,000 Statement of Profit & Loss 4,00,000 During the year ended 31st March, 2013, it incurred a loss of ` 2,60,000. How would you show these items in the Balance Sheet and notes to accounts? 4. Z Ltd. has the following balances on 1st April, 2013:. General Reserve 2,50,000 Capital Reserve 1,50,000 Statement on Profit & Loss 2,00,000 During the year ended 31st March, 2014 it incurred a loss of.7,10,000. Show how these items will appear in the Balance Sheet and notes to accounts? 5. Operating Cycle and the period when payment is made is given below. How will you classify the liability? Particulars (i) (ii) (iii) (iv) (v) (vi) Operating Cycle (Months) Expected Period when payment is made (Months) Under which head following items of a nonfinancial company will be classified: (i) Sales; (ii) Interest on Loans given; (iii) Dividend income; (iv) Sale of miscellaneous items; (v) Refund of Income Tax; (vi) Revenue from services rendered. 7. Under which head following items of a financial company will be classified: (i) Revenue from Services rendered; (ii) Interest on Loan given; (iii) Dividend Income; (iv) Refund of Income Tax; (v) Sale of miscellaneous items. 8. Out of the following, identify the items to be shown in the Notes to Accounts on Financial Costs: (i) Interest paid on Bank Overdraft (ii) Interest paid on Borrowing (iii) Interest received on Term Deposits (iv) Discount on Issue of Debentures written off (v) Interest paid on Term Loan 9. State the major head under which the following items will be shown in the statement of Profit and Loss of a Company: (i) Loss on Issue of Debentures written off: (ii) Dividend received; (iii) Sale of Services; (iv) Contribution to Gratuity fund; (v) Medical Expenses; (vi) Bank Charges (vii) Ca rriage Outwards (viii) BadDebts written off: Page 13 of 19

14 10. Under which major subheadings will the following items be placed in the Balance Sheet of a company as per ScheduleIII, PartI of the Companies Act, 2013: (i) Capital Reserve (ii) Bonds (iii) Loans repayable on demand (iv) Vehicles (v) Goodwill (vi) Loose tools CBSE (A) Under what heads the following are recorded in a Company s financial statements: I. Computer Software II. Bills Receivable III. Interest Accrued and Due on Debentures IV. Interest Accrued on Investments V. Calls in Arrears VI. Discount on Issue of Debentures written off VII. Fees receivable for arranging loans VIII. Telephone and Internet Exp. CBSE 2013 (B) Under what headings will you show the following items in the Financial Statements of a Company? (a) Authorised Capital (a) Share Forfeiture Account (b) Capital Reserve (c) Secured Debentures (d) Provision for Tax (e) Trade Payables written back (f) Loan Processing Charges CBSE Give the headings under which the following items will be shown in a Company s Balance Sheet: (i) Mining Rights (ii) Debtors (iii) Interest on Calls in Advance (iv) Workin progress (v) Mortgage Loan (vi) Bonds CBSE Under what headings will you show the following items in the Balance Sheet of a Company? (i) Credit Balance of Statement of Profit & Loss (ii) Discount on Issue/Loss on issue of Debentures (to be amortized in the next 12 months) (iii) Employees earned leave payable on retirement. (iv) Provisions for Provident Fund Scheme (v) Provisions for Employee Benefits (Shortterm) (vi) Provisions for Doubtful Debts (vii) Contracts remaining to be executed CHAPTER:2 FINANCIAL STATEMENT ANALYSIS 14. State any two objectives of Financial Statement Analysis? 15. Explain breifly limitations of Financial Statement Analysis? Page 14 of 19

15 CHAPTER:3 TOOLS FOR FINANCIAL STATEMENT ANALYSIS 16. Prepare a Comparative Statement of Profit & Loss from the following: Particulars Revenue from Operations Expenses Note No 31 st March st March ,00,000 58% of Revenue from Operations 30,00,000 60% of Revenue from Operations Interest on 2,00,000 and taxes 50%. 17. From the following statement of Profit & Loss of Moontrack Ltd. for the years ended 31st March 2011 and 2012, prepare a Comparative Statement of Profit & Loss. CBSE 2013 Revenue from Operations Other Incomes Expenses Particulars Note No ,00,000 24,00,000 16,00, ,00,000 18,00,000 14,00, From the following Statement of Profit & Loss of Fenox Ltd. for the years ended 31st March 2013 and 2012, prepare a Comparative Statement of Profit & Loss. CBSE 2014 Particulars Note No Revenue from Operations Other Incomes Expenses 8,00,000 1,00,000 5,00,000 6,00,000 50,000 4,00,000 Rate of Income Tax was 40%. 19. ABCD Ltd. is a leading manufacturing Company. Encouraged by the spurt in its profits company decided to give 15% interim dividend to the equity shareholders of the Company. Following the Comparative Statement of Profit and Loss of the Company : COMPARATIVE STATEMENT OF PROFIT & LOSS Particulars I. Revenue from Operations II. Add. Other Income Total Revenue I + II III. Less : Expenses Profit before Tax Less : Tax Profit after Tax You are required to for the year ended 31st March, 2012 and 2013 Absolute Note (Increase No. or Page 15 of 19 Percentage (Increase or A B B A=C C/A 100 =D 50,00,000 2,00,000 _ ( ) 15,00,000 1,00,000 % (25.00)

16 (a) Fill in the missing figures in the Comparative Statement of Profit & Loss; (b) Compute the Net Profit Ratio for both the years ; and (c) Identify the values involved in paying the interim dividend. 20. Fill in the missing figures in the following: COMPARATIVE STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2011 and 2012 Particulars I. Revenue from Operations II. Other Income III. Total Revenue (I + II) IV. Less : Expenses V. Profit before Tax Note No Absolute (Increase or Percentage (Increase or A B B A=C C/A 100 =D 10,00,000 2,00,000 4,50,000 % 50 (10) Fill in the missing figures in the following Common Size Statement of Profit & Loss: COMMON SIZE STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2010 and 2011 Particulars I. Revenue from Operations II. Less: Expenses: Note No. Absolute Amounts Percentage of Revenue from Operations % Cost of Materials Consumed 7,20,000 9,60, Employee Benefits Expenses 10 8 Depreciation Other Expenses Total Expenses 80,000 1,00, III. Profit before Tax (III) Less : Tax 2,08,000 2,97,000 Profit after Tax 22. Fill in the missing figures in the following Common Size Statement of Profit & Loss : Page 16 of 19

17 Particulars I. Revenue from Operations II. Other Income III. Total Revenue (I+II) IV. Less : Expenses : Cost of Materials Consumed Other Expenses Total Expenses Profit before Tax (IIIIV) Less: Tax Profit after Tax COMMON SIZE STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2013 Note No. Page 17 of 19 Absolute Amounts Percentage of Revenue from Operations % 60,000 2,10,000 CHAPTER 4 RATIO ANALYSIS 23. Calculate Current Ratio from the following information : Total Assets Land and Building Machinery 12,00,000 6,00,000 1,00,000 Non Current Investment Shareholder s Funds Non Current Liabilities 1,40,000 8,50,000 1,10, A business has a Current Ratio of 4 : 1 and a Quick Ratio of 1.2 : 1. If the Working Capital is.1,80,000, Calculate the total Current Assets and Inventory. CBSE Calculate the Debt Equity Ratio from the following: Equity Share Capital Preference Share Capital Reserves Profit & Loss Balance (Accumulated Loss) Longterm Borrowings Provisions for Employee Benefits ,00,000 50,000 1,60,000 (50,000) 2,00,000 60, Calculate the Debt Equity Ratio from the following: Tangible Fixed Assets 24,50,000 Intangible Fixed Assets 3,00,000 Current Assets 3,34,000 Current Liabilities 84,000 Longterm Borrowings 16,00,000 Long term Provisions 1,50, A company has a loan of 30,00,000 as part of its capital employed. Interest payable on the loan is 12% and the R.O.I. of the company is 25%. The rate of income tax is 40%. What is the gain to shareholders due to the loan raised by the company? 28. Calculate Operating Profit Ratio if Operating Ratio is 78%. 29. From the following information, calculate any two of the following ratios :

18 (a) DebtEquity Ratio; (b) Working Capital Turnover Ratio; (c) Return on Investment. Information: CBSE 2012 Equity Share Capital 9,00,000, General Reserve 1,00,000; Statement of Profit and Loss Balance after Tax and Interest 3,00,000; 12% Debentures 4,00,000; Trade Payables 3,00,000; Land and Building 13,00,000; Furniture 3,00,000; Trade Receivables 2,90,000; Cash 1,10,000. Revenue from Operation for the year ended was 3,00,000 and Tax paid 50%. 30. Compute Trade Receivables Turnover Ratio from the following information : Total Revenue from Operations 5,20,000, Cash Revenue from Operations 60% of the Credit Revenue from Operations, Closing Trade Receivables 80,000, Opening Trade Receivables are 3/4th of Closing Trade Receivables. CBSE Following is the Comparative Balance Sheet of Kolam Fabrics Ltd. COMPARATIVE BALANCE SHEET OF KOLAM FABRICS LTD. as at 31st March 2014 & 2015 Particulars I. EQUITY AND LIABILITIES: 1. Shareholder s Funds : (a) Share Capital (b) Reserve and Surplus Note No Absolute (Increase or Page 18 of 19 Percentage Increase or % 10,00,000 2,40,000 10,00,000 (20,000) 2. NonCurrent Liabilities : Long term Borrowings 8,00,000 () (12.50) 3. Current Liabilities : (a) Short Term Borrowings (b) Trade Payables 7,00,000 4,00,000 () TOTAL 25,00,000 26,96,400 II. ASSETS: 1. NonCurrent Assets 16,00,000 16,00, Current Assets: (a) Inventory (b) Trade Receivables (c) Cash & Cash Equivalents 5,20,000 4,20,000 1,20,000 () ( ) () () TOTAL Additional Information 1. Trade Receivables as at 31st March, 2013 were 3,25, Revenue from Operations (Net Sales) for the year ended 31st March, 2014 and 31st March, 2015 is 62,50,000 and 90,00,000 respectively. Net Credit Revenue from Operations being 60% of Revenue from Operations in both the years. You are required to : (a) Fill up the missing figures in the Comparative Balance Sheet ; and (b) Calculate the Trade Receivables Turnover Ratio. 32. Following is the Comparative Statement of Profit and Loss of Varanasi Silk Ltd. : COMPARATIVE STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2012 and 2013 Particulars Note Absolute Percentage

19 No. (Increase or (Increase or A B B A=C C/A 100 =D % I. Revenue from Operations 50,00, II. Add : Other Income 2,00,000 ( ) (25.00) Total Revenue I + II III. Less: Expenses : (a) Purchase of Stock in Trade (b) in Inventories of Stock in Trade (c) Depreciation and Amortization Expenses (d) Other Expenses Total Expenses 32,00,000 3,00,000 4,60,000 8,40,000 53,00,000 (2,00,000) 46,000 IV. Profit before Tax (IIIIV) You are required to : (a) Fill in the missing figures in the Comparative Statement of Profit & Loss; (b) Compute the Gross Profit Ratio for both the years. 33. Following is the Comparative Statement of Profit & Loss of Raunak Ltd : COMPARATIVE STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2014 and 2015 Particulars Note No Absolute (Increase or Percentage (Increase or A B B A=C C/A 100 =D % I. Revenue from Operations II. Add : Other Income 1,50,000 2,00,000 III. Total Revenue I + II IV. Less: Expenses : Cost of Materials Consumed Employee Benefit Expenses Finance Costs Other Expenses (10% of Cost of Materials consumed) Total Expenses 5,00,000 2,40,000 3,00,000 3,50,000 IV. Profit before Tax (IIIIV) 11,10,000 15,20,000 You are required to : a) Fill in the missing figures in the Comparative Statement of Profit & Loss; b) Compute Operating Ratio (25.00) Page 19 of 19