ACCOUNTANCY. Std.: XII- Com. (As per new pattern) Time : 3 Hrs. 80. General Instructions:

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1 ACCOUNTANCY Time : 3 Hrs. 80 M.M.: Std.: XII- Com. (As per new pattern) General Instructions: 1. This question paper contains two parts A and B. 2. All parts of a question should be attempted at one place. 1. Give the average period in months for charging interest on drawings for the same amount withdrawn at the beginning of each quarter. (1) 2. What is Life Membership Fee? (1) On firm s dissolution, what entry will be passed when a partner voluntarily gives his personal asset to firm s creditor as payment? 3. Bharati and Aastha were partners sharing profits in the ratio of 3:2. They admitted Dinkar as a new partner for 1/5 th share in the future profits of the firm which he got equally from Bharati and Aastha. Calculate the new profit sharing ratio of Bharati, Aastha and Dinkar. (1) Ashok paid the realisation expenses of Rs 50,000 out of his private funds, who was to get a remuneration of Rs 45,000 for completing dissolution process and was responsible to bear all the realisation expenses. Pass journal entry. 4. Ananya, Bimal and Chetna are partners dealing in sale of gift items. Ananya without the knowledge of Bimal and Chetna is also running the business of supplying gift items with the help of her husband. She is earning good profits from this business which she did not share with Bimal and Chetna. Was Ananya correct in doing so? Indicate a value which she did not follow. (1) 5. What is meant by Employee Stock Option Plan? (1)

2 6. A company issued 10,000 equity shares of Rs.10 each at par payable as to: Rs 4 on application; Rs 5 on allotment and rest on call. Application were received for 16,000 shares. Allotment was made on pro-rata. How much amount will be received in cash on allotment? Why should a new partner contribute towards goodwill on his admission? 7. show how would you deal with the building Fund of N.D.A: Building Fund as on 31 st March,2018 Rs. 5,00,000 8% Building fund investment as on 31 st March, 18 Rs. 5,00,000 Donations collected for building during the year Rs 2,50,000 Interest received on building fund investments Rs 22,500 Expenditure made on construction of commerce lecture hall Rs 7,50,000 (3) 8. A, B and C were partners in a firm sharing profits and losses in the ratio of 3:2:1. On 1 st January 2018, A died due to heart attack so B and C decided to admit D, son of A as a partner in the firm at 1/5 th share of profit.on this date, General Reserve appeared in the Balance Sheet at Rs 24,000. It was decided to keep Reserve in the books. New profit sharing ratio of B, C and D was 2:1:1. (3) 9. Star ltd. issued 20,000 shares of Rs 10 each. It received applications for 18,500 shares and allotment was made. It did not make final call of Rs 2 on these shares. Rubina holding 1,500 shares failed to pay share first call of Rs 3 each. Latika failed to pay share first call on 1,000 shares and her shares were forfeited by the company. Show how the share capital will appear in the balance sheet of the company as at 31 st march (3) 0r Anjali,Bhanvi and Harsha are partners in a firm. They had omitted interest on 12% p.a. for five years ended 31 st march, Their fixed capitals on which interest was to be calculated throughout were: AnjaliR3,00,000; BhanviR 2,40,000; HarshaR 2,10,000. Give the necessary adjusting journal entry with working notes. (3) 10. A,B and C are partners sharing profits and losses in the ratio of 3:2:1. Their capitals were Rs 40,000, Rs 30,000 and Rs 20,000 res. According to the p ship agreement partners are entitled to receive the following: (a) Interest on 10%; (b) Rs.250 P.M to each partner; (c) Interest on drawings is to be 9%, irrespective of the period. Partners drawings amount to Rs. 4,000 for A, Rs 3,000 for B and Rs 2,500 for C. The profit earned by the firm after charging partners salaries but before allowing interest on capital and charging interest on drawings amounting Rs 22,000. Distribute profit among partners. (3)

3 11. A and B are partners sharing profits and losses in the ratio of 2:1. On 1 st Jan, 17 they admit C as a partner for 1/4 th share who pays Rs 4,500 as goodwill privately. On 1 st Jan, 18, they take D as a partner for 3/5 th share who brings Rs 4,000 as goodwill, out of which half is withdrawn by the existing partners. On 1 st Jan, 19, E is admitted as a partner for 1/6 share, who brings Rs 5,000 as goodwill which is retained in the business. Calculate the new profit sharing ratios on admission of the partners. Journalise the above transactions in the books of the firm. (4) 12.Show by means of Journal entries the following at the time of issue on 1 st April, 2013 and redemption after 6 years on 31 st March, 2019: a. A Ltd. Issued 40,000, 12% Debentures of Rs 100 each at a premium of 5% to be redeemed at par. b. B Ltd issued 20,000, 11% Debenture of Rs 100 each at a premium of 4% to be redeemed at a premium of 5%. c. C Ltd issued 30,000 13% Debentures of Rs 100 each at par, to be redeemed at a premium of 4%. d. D Ltd. Issued 24,000, 14% Debentures of Rs 100each at a discount of 4%, to be redeemed at a Premium of 55. (4) 13. (a) X Ltd. Forfeited 100 shares of Rs 10 each (Rs 6 called up) issued at a discount of 10% to Mr. John on which he had paid an application money of Rs 2 per share. Out of these, 80 shares were reissued to Jack as Rs 8 called up for Rs 9 per share. Journalise. (b) ABC Ltd. gave notice of its intention to redeem its outstanding Rs 4,00, % Debentures 20 at 102% and offered the holders to convert their holdings into 14% cum. Pref. shares of Rs each at Rs per share. The holders of Rs 1,71,000 Debentures exercised their option. Give J.E. (6) 14. The following is the Receipts and Payments Account of A Sports Club for the year ended 31st December, 2018 : Receipts Rs. Payments Rs.

4 To Donations 17,500 By Rent 21,000 To Subscription 24,000 By Salary 26,000 To Bar Receipts 72,000 By Rates and Taxes 6,900 To cricket Fees 6,800 By Bar Purchases 58,000 To Table Tennis Fees 5,200 By Furniture 7,500 To chess Room Fees 3,600 By Stationery 7,400 To aid from auth. 13,400 By Telephone 3,600 To Advertisement By Postages 3,700 In year-book 6,800 By Balance c/d : Cash 1,700 Additional Information: Bank 13,500 1,49,300 1,49,300 (i) Donations are for constituting a Match fund. (ii) Subscription in arrear Rs. 3,600 and pre-received Rs. 1,400. (iii) Salary is Rs. 7,500 per quarter. (iv) Salary of Rs. 1,400 is prepaid. (v) Rent is paid for 3 years in advance. (vi) Bar stock unused Rs. 7,200 and stationery unused Rs. 2,100. (vii) Sundry members owed Rs. 1,500 for advertisement in club s year-book. You are required to prepare Income and Expenditure Account for the year ended 31 st Dec.18 and Balance Sheet as on that date. (6) 15. A, B and C who were sharing P/L in the ratio of 2:2:1res, decided to dissolve the firm on 31 st March, 2019 on which date B/S was as under: Liability Rs Assets Rs A,s capital 20,000 Goodwill 1,500 B s capital 10,000 Building 30,000

5 C s capital 1,000 Machinery 30,000 Gen. Res 10,000 Investments 10,000 JLP Reserve 15,000 Stock 2,000 Investment Fluctuation reserve 5,000 Debtors 8,000 Employees provident fund 1,000 Less: prov 400 7,600 Loan from C 10,000 JLP 15,000 Loan from Mrs.A 3,000 Bank 6,900 Creditors 20,000 C s current a/c 5,000 Acceptances 15,000 Profit and loss a/c 1,000 Advertisement suspense a/c 1,000 Note: there was a bill of Rs 1,000 under discount. The bill was received from Mr.Z Additional information: 1. JLP was surrendered for Rs 13, A agreed to discharge his wife s loan. 3. B took over investments at 40% discount. 60% 4. The assets realized as under: building: 30,000 more, machinery 18,000 less, stock only and debtors 80%. 5. Acceptances were met in full but creditors were paid 19,500 ( in full settlement )including an investment worth 4,500 unrecorded in the books. bear 6. A was to receive 4300 as remuneration for completing the dissolution work and was to realization exp. Realization exp amounted to Rs 3,300 paid by the firm. 7. Z becomes insolvent. Prepare realization a/c, bank a/c and the capital a/cs of the partners. (6)

6 A and B were partners. The partnership deed provided inter alia that: (i) The accountants be made up to march 31 st, each year. (ii) The profits were divided as follows: A: ½, B: 1/3 and reserve: 1/6 (iii) In the event of death of a partner, his representative be entitled to (a) The capital of his credit at the date of date. (b) His proportion of profits to date of death based on the average profits of the last three completed years. (c) By way of goodwill his proportion of the total profits for the three preceding years. on , the ledger balances were: Particulars Debit (amt.) Credit (amt.) A s capital - 90,000 B s capital - 60,000 Reserve - 30,000 Creditors - 30,000 B/R 20,000 - Investments 50,000 - Cash 1,40,000 - Total 2,10,000 2,10,000 The profits for the three years were: Years Net profit Amt. (Rs) , , ,000 Mr. B died on Show the account of B s executors. (8)

7 16. Akash Ganga Ltd. issued a prospectus inviting applications for 50,000 shares of Rs. 10 each at a premium of Rs. 4 per share, payable as follows : On Application Rs. 3 (including premium Re. 1) On Allotment Rs. 4 (including premium Re. 1) On First Call Rs. 4 (including premium Re. 1) On Second and Final Call Rs. 3 (including premium Re. 1) Applications were received for 75,000 shares and pro-rata allotment was made on the applications for 70,000 shares. It was decided to utilise excess application money towards the sums due on allotment. to X, who was allotted 700 shares, failed to pay the allotment money and on his subsequent failure pay the first call, his shares were forfeited. Y, who applied for 2,100 shares, failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 2,400 shares were re-issued as fully paid up for Rs. 7 per share, the whole of Y s shares being included. Prepare Cash Book, Journal and Balance Sheet. Sun Glass Ltd. invited applications for issuing 20,000 shares of Rs. 100 each at a premium of Rs. 40 per share payable as follows : On Application Rs. 40 (including premium Rs. 20) On Allotment Rs. 60 (including premium Rs. 20) On First & Final Call Rs. 40 as Applications were received for 26,000 shares and pro-rata allotment was made to all applicants follows : (i) Applicants for 16,000 shares were allotted 12,000 shares, and (ii) Applicants for 10,000 shares were allotted 8,000 shares. X, who belonged to the first category and was allotted 800 shares failed to pay the allotment and call money.

8 Y, who belonged to the second category and who applied for 2,000 shares also failed to pay the allotment and call money. Their shares were forfeited and 2,200 of the forfeited shares were Rs. 90 per share as fully paid Re-issued shares included whole of Y s shares. Prepare Cash Book, journal entries and an opening Balance Sheet. (8) 17. Following is the Balance Sheet of R, S and T sharing profits and losses in the proportion of 6 : 5 : 3 respectively: (8) Amount Amount Liabilities (Rs.) Assets (Rs.) Creditors 26,250 Cash 2,670 Bills Payable 9,750 Debtors 41,730 General Reserve 14,700 Stock 38,400 Capital: furniture 13,425 R 52,500 Land and Buildings 49,650 S 42,000 Motor-car 7,875 T 15,000 1,09,500 Investment 6,450 1,60,200 1,60,200 They agreed to admit Z into partnership and to give him 1/7th share on the following terms. (i) He will take his share equally from R, S And T. (ii) Stock be depreciated by Rs. 2,400. in (iii) An old customer, whose account was written off as bad debts has promised to pay Rs. 1,905 full settlement of his debts. (iv) The value of land and building be brought upto Rs. 55,500. (v) The value of goodwill be brought up to Rs. 23,730. (vi) Z will bring Rs. 21,000 as his capital and his share of goodwill in cash.

9 (vii) After making the above adjustments, the capital account of old partners be adjusted on the basis of the proportion of Z's capital to his share in business, i.e., actual cash to be paid off or brought in by old partners as the case may be. Pass necessary journal entries and prepare Revaluation Account, Capital Account and Balance Sheet of the new firm. X, Y and Z were partners sharing profits in the ratio of 3:2:1. The B/S of the firm as on 31st Dec Liabilities Amount Assets Amount Bills payable 4,000 Bank 1,500 S.creditors Reserve 19,000 Debtors 16,000 12,600 Less prov ,500 Capitals: Stock 25,000 X 40,000 M.van 8,000 Y 30,000 P&m 35,000 Z 25,000 L&b 45,000 Adv. Suspense a/c 600 X retires subject to the following adjustment: 1. The goodwill of the firm to be valued at Rs 18,000, but no goodwill is to be raised. 2. The provision for d. debts to be increased by Rs 1, Stock to be appreciated by 20% and building by 10%. 4. Plant to be depreciated by 10% and m.van by 15% 5. X s account will be settled immediately on his retirement and continuing partners shall bring required cash in new ratio and then after they adjusted their capital proportionately. For the

10 purpose of payment of X, firm s cash utilized after maintaining minimum balance of Rs 1,000. (8) Part B (Analysis of financial statements) 18.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 dididend and interest. Find out cash flows from investing activities. (1) 19. X ltd received interest on an item and the accountant classified it under financing activity while preparing cash flow statement. Name another item for which such a treatment is possible. (1) 20. (a) State the major heads of items shown under the head, current liabilities. (b) What are the importances of financial statement analysis. (4) 21. Prepare comparative income statement of Videocon ltd. from the following information: Particulars Note no ,00,000 9,00,000 Revenue from operations Expenses: Purchase of stock in trade Change in inventories of stock in trade Employees benefit expenses Other expenses (% of employees benefit expenses) Tax rate 8,50,000 (40,000) 1,50,000 45% 50% 6,00,000 60,000 1,00,000 40% 50% From the following information provided, prepare a common size income statement for the period 2018 and 2019 : Particulars ,00,000 One third on cost 25% on GP 50% on NP Sales Gross profit Administrative exp. Income tax (4) 4,00,000 One fourth on sales 20% on GP 40% on NP 22. (a) A business has current ratio 3:1 and quick ratio 1.2:1. If the working capital is Rs 1,80,000,

11 calculate the current liabilities and stock. (b) The quick ratio of a Co. is 1.5:1.state giving reasons, which of the following would improve, reduce or no change the ratio: (i) Purchase of stock for cash; (ii) Cash collected from debtors; (iii) Sale of goods (costing Rs.1,40,000) for Rs 1,50,000; (iv) Sale of office typewriter (book value Rs 12,000) for Rs 8,000. (2+2) Calculate Return on Investment and Debt Equity Ratio from the following information: Net profit after interest and tax Rs.3,00,000 10% Debentures Rs.5,00,000 Tax Rate 40% Capital Employed Rs.40,00,000 (4) 23. From the following Balance Sheets of Raj Limited, calculate Cash Flow statements : Particulars Note No I. 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, Non-current Liabilities Provision for taxation 60,000 80,000 Long Term Borrowings : 8% Debentures 6,00,000 4,00, Current Liabilities 2,40,000 1,70,000 Total 29,00,000 21,90,000 II. ASSETS:

12 1. Non-Current Assets: Fixed Assets: Tangible Assets (Net) 17,80,000 13,20,000 Intangible Assets (Goodwill) 20,000 30,000 Investments 2,50,000 1,60, Current Assets 8,50,000 6,80,000 Total 29,00,000 21,90,000 Notes to Accounts: Particulars Share Capital Equity Share Capital 9,00,000 9,00,000 5% Preference Share Capital 4,00,000 6,00, Reserves and Surplus General Reserve 3,00,000 2,40,000 Statement of P/L 4,00,000 (2,00,000) Additional Information: (a) A part of assets whose value is 60,000 on which depreciation already charged Rs.12,000, sold for Rs 25,000. (b) Preference Shares were redeemed at a premium of 5% on 31st March, (c) Additional debentures were issued on 1st October, (d) The Company declared and paid dividend on Equity 8%. (e) Opening balance of accumulated depreciation is Rs. 1,20,000 whereas closing balance is Rs 1,50,000 (f) Opening as well as closing balance of provision for dividend are Rs 40,000 and 55,000 respectively.

QUESTION BANK ( ) Class XII Subject:- ACCOUNTANCY

QUESTION BANK ( ) Class XII Subject:- ACCOUNTANCY QUESTION BANK (2017-2018) Class XII Subject:- ACCOUNTANCY 1. Give any one rule in absence of partnership deed. 1 2. Write two items of debit side of partner s current Accounts. 1 3. Mention two items that