Solution to Question Paper

Time : 3 Hours Maximum Marks : 80 ACCOUNTANCY CBSE Sample Question Papers Solution to Question Paper 6 Ans. 1. Companies Act, 2013 Maximum number of partners : 50 [CBSE Marking Scheme 2011] 1 Ans. 2. Ram s share = 5/10 3/25 = 19/50 Ans. 3. Ans. 4. Ans. 5. Mohan s share = 3/10 2/25 = 11/50 Sohan s share = 2/10 5/5 = 10/50 Hari s share = 1/5 10/10 = 10/50 Thus, the New Profit sharing ratio for Ram, Mohan, Sohan and Hari will be = 19 : 11 : 10 : 10 [CBSE Marking Scheme 2012] 1 Profit and Loss Suspense A/c is opened to transfer the share of profit of the decreased partner. [CBSE Marking Scheme] 1 The maximum amount of discount that may be allowed on reissue of shares is amount credited to Forfeited shares account. [CBSE Marking Scheme 2014] 1 New India Ltd. Date L.F. 2016 Jan. 15 Calls in Arrears A/c To Equity Share First call A/c To Calls in Advance A/c (Being call money received except on 500 shares and received advance on 600 shares) Debit Amount 39,800 2,000 Credit Amount 40,000 1,800 Ans. 6. [CBSE Marking Scheme 2016] 1 A retiring partner is entitled to get an amount equal to his share of profit out of firm s goodwill. [CBSE Marking Scheme] 1

2 Ans. 7. OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 In the Books of BG Ltd. Date L.F. 2013 March 31 Interest on Debentures A/c To 12% Debentureholders' A/c To Tax Deducted at Source A/c (Being interest due for the half-year ended 31.3.2013 and tax deducted @ 10% thereon) March 31 Statement of Profit & Loss A/c To Interest on Debentures A/c (Being the interest on debentures for the year transferred to statement of profit & loss) Debit Amount 12,000 24,000 Credit Amount 10,800 1,200 24,000 Ans. 8 3 Date L.F. (i) Profit and Loss A/c To X s Capital A/c To Y s Capital A/c To Z s Capital A/c (Being profit distributed among all partners in their old ratio) (ii) X s Capital A/c To Realisation A/c (Being unrecorded bike taken over by X ) (iii) Realisation A/c To (Being creditors were paid) Debit Amount 18,000 50,000 4,000 Credit Amount 9,000 6,000 3,000 50,000 4,000 Ans. 9. A Ltd. Balance Sheet (1 3 = 3) Note No. 2012-13 2011-12 I. Equity and Liabilities : (1) Shareholders' Funds : (a) Share Capital 4,80,000 Notes to Accounts Amount Amount Share Capital Authorized Share Capital 1,00,000 share of ` 10 each 10,00,000 Issued Capital 50,000 shares of ` 10 each 5,00,000 Subscribed & Fully Paid Capital 48,000 shares of ` 10 each 4,80,000 3

Solutions 3 Ans. 10. In the Books of Z Ltd. Date L.F. Debit Credit A s Capital A/c B s Capital A/c C s Capital A/c To Goodwill A/c (Being old goodwill written off) B s Capital A/c C s Capital A/c To A s Capital A/c (Being goodwill adjusted at the time of change in existing ratio) 22,500 13,500 9,000 8,000 32,000 45,000 40,000 Working Note : Sacrifice of A Gain of B Gain of C Ans. 11. 5 10 1 = 3 1 3 = 3 10 5 30 1 30 1 2 = 4 3 10 30 Table Showing Adjustment (1½ + 1½ = 3) A B Firm Interest on Capital @ 12% p.a. (Cr.) 6,240 3,360 9,600 Salary to A @ ` 1,000 p.m. (Cr.) 12,000 12,000 Total (Cr.) 18,240 3,360 21,600 Share of Firm s loss in 3 : 2 () 12,960 8,640 21,600 Net Adjustment 5,280 (Cr.) 5,280 () Opening Capital = Capital + Drawings Profit share A = ` (60,000 + 10,000 18,000) = ` 52,000 B = ` ( + 12,000) = ` 28,000 Date L.F. Debit Credit 2010 March 31 B s Capital A/c 5,280 To A s Capital A/c 5,280 (Being adjustment towards interest on capital and salary) Ans. 12. [CBSE Marking Scheme, 2011] (2 + 2 = 4) Date L.F. Debit Credit 2,60,000 To R.S. Gill s Capital A/c To Premium for Goodwill A/c 2,00,000 60,000 (Being capital and premium brought by new partner)

4 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Premium for Goodwill A/c To Vinod Kumar s Capital A/c To Ashish Gupta s Capital A/c (Being premium distributed by sacrificing partners in 2:1 ratio) Vinod Kumar s Capital A/c Ashish Gupta s Capital A/c To (Being 40% of premium is withdrawn by the partners) 60,000 16,000 8,000 40,000 24,000 Ans. 13. In the Books of... Profit & Loss Appropriation Account For the year ended 31 March, 2012 Cr. To Interest on Capital : Amount Amount Anwar 48,000 Biswas 36,000 Divya 24,000 To Salary : Biswas 48,000 Divya 24,000 To Profit transferred to Partners' Capital Accounts : Anwar 66,000 Biswas (44,000 + 2,000) 46,000 Divya (22,000 2,000) Working notes : 1,08,000 72,000 32,000 By Profit & Loss A/c (Net Profit) 3,12,000 3,12,000 3,12,000 (1) Biswas guaranteed : ` 82,000 Less : Interest on capital ` 36,000 Guaranteed amount excluding interest on capital ` 46,000 (2) Share of Profit = ` (3,12,000 1,08,000 72,000) = ` 1,32,000 distributed in ratio 3 : 2 : 1 to : Anwar ` 66,000 Biswas ` 44,200 Divya ` 22,000 (3) Share of Biswas guaranteed profit = ` 46,000 ` 44,000 = ` 2,000 Profit after guarantee clause Anwar ` 66,000 Biswas ` 44,000 + ` 2,000 = ` 46,000 Divya ` 22,000 ` 2,000 = ` (4) [CBSE Marking Scheme 2014] (½ 6 + 1 3)

Solutions 5 Ans. 14. (a) Thermal Power Energies Ltd. Date L.F. Dedit Credit To Equity Share Application and Allotment A/c (Being Application & Allotment money received for 17,00,000 shares) Equity Share Application and Allotment A/c To Equity Share Capital A/c To To Securities Premium Reserve A/c (Being share application and Allotment money adjusted) 2,89,00,000 2,89,00,000 2,89,00,000 1,00,00,000 1,19,00,000 70,00,000 Values (Any two) : 1. Providing employment opportunities. 2. Development of backward areas. 3. Helping the young people to undertake developmental activities. 4. Promoting peace and harmony in the society. [CBSE Marking Scheme 2016] (1½ + 1½ = 3) (b) Date L.F. Dedit Credit Own Debentures A/c To (Being 5,000 own debentures purchased @ ` 987 each) Own Debentures A/c To (Being purchase of 600 own debentures @ ` 986 each) 8% Debentures A/c To Own Debentures A/c To Gain on Cancellation of Debentures A/c (Being cancellation of 5,600 own debentures) Gain on Cancellation of Debentures A/c To Capital Reserve A/c (Being gain transferred to capital reserve) 49,35,000 5,91,600 56,00,000 73,400 49,35,000 5,91,600 55,26,600 73,400 73,400 (3) Ans. 15. Sindhu s Capital Account Cr. To Sindhu s Loan A/c Amount Amount To Sindhu s Executor's A/c 1,75,900 Value of Concern towards Society has been highlighted. By Balance b/d By General Reserve A/c By Profit & Loss Suspense A/c By Interest on Capital A/c By Rahul s Capital A/c (Goodwill) By Kamlesh s Capital A/c (Goodwill) 1, 3,000 22,500 2,400 20,571 27,429 1,95,900 1,95,900

6 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Working Notes : Ans. 16. 1. Total Goodwill = Average Profit Number of years' purchase Sindhu s Share = 3 10 = ` 80,000 2 = ` 1,60,000 1,60,000 = ` 48,000 To be contributed by Rahul and Kamlesh in ratio 3 : 4. 2. Interest on Capital = 6% ` 1, = ` 7,200 3. Share of Profit for 4 months : Profit ratio = for 4 months (till 31 July, 2012) = ` 7,200 4 12 = ` 2,400 ` 2,00,000 ` 8,00,000 Profit for 4 Months = 25% ` 3,00,000 = ` 75,000 100 = 25% Sindhu s Share = ` 75,000 3 10 = ` 22,500 Note : Terms of Sindhu s will, whatever may be does not pertain to accounting by the concerned firm. Therefore, no adjustment is required. (Value based question) +1 (working)] [CBSE Marking Scheme 2013] 6 Revaluation Account Cr. To Investments A/c To Machinery A/c Amount 26,000 18,000 By Creditors A/c By Partners Capital A/cs (transfer of loss) : P 17,500 Q 11,667 R 5,833 Amount 9,000 35,000 44,000 44,000 Partners' Capital Accounts Cr. P Q R S P Q R S To Revalu ation A/c To Balance c/d 17,500 2,39,000 11,667 1,29,333 5,833 64,667 86,600 By Balance b/d By By General Reserve A/c 1,80,000 31,500 1, 21,000 60,000 10,500 86,600 By Premium for goodwill A/c 45,000 2,56,500 1,41,000 70,500 86,600 2,56,500 1,41,000 70,500 86,600

Solutions 7 Balance Sheet of P, Q, R and S as at 31 st March 2015 Liabilities Amount Assets Amount Creditors Capitals : P 2,39,000 Q 1,29 333 R 64,667 S 86,600 2,43,000 5,19,600 Bank (51,000 + 45,000 + 86,600) Debtors Investment Machinery Furniture Stock 1,82,600 69,000 64,000 87,000 30,000 3,30,000 7,62,600 7,62,600 [CBSE Marking Scheme 2016] (2 + 3 + 3 = 8) OR Revaluation Account Cr. To Building A/c To Furniture A/c Particular Amount Particular Amount 3,00,000 60,000 By Land A/c 3,60,000 3,60,000 3,60,000 Partners' Capital Accounts Cr. P Q R P Q R To Q s Capital A/c To Q s Loan A/c To Balance c/d 2,10,000 12,22,000 To R s Current A/c To Balance c/d 18,97,000 12,32,000 30,000 9,46,000 By Balance b/d By Gen. Res. A/c By Workmen Com. Fund A/c By P s Capital A/c By R s Capital A/c 9,00,000 2,52,000 2,80,000 8,40,000 72,000 80,000 2,10,000 30,000 9,00,000 36,000 40,000 14,32,000 12,32,000 9,76,000 14,32,000 12,32,000 9,76,000 6,75,000 2,71,000 By Balance b/d To P s Current A/c 12,22,000 6,75,000 9,46,000 18,97,000 9,46,000 18,97,000 9,46,000 Total Capital of P and R = ` 21,68,000 P s Share of Capital = ` 21,68,000 7/8 = ` 18,97,000 R s Share of Capital = ` 21,68,000 1/8 = ` 2,71,000 Balance Sheet Liabilities Amount Assets Amount Capitals : P R R s Current A/c Q s Loan A/c Workman Compensation Fund Creditors 18,97,000 2,71,000 6,75,000 12,32,000 1,40,000 3,60,000 Land Building Furniture Stock Debtors 6,00,000 Less : Provision (30,000) P s Current A/c Cash 15,60,000 6,00,000 3,00,000 6,60,000 5,70,000 6,75,000 2,10,000 45,75,000 45,75,000 (2 + 3 + 3 = 8)

8 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Ans. 17. In the Books of Blue Star Ltd. Date L.F. Building A/c To Vendor's A/c (Being building purchased) Vendor's A/c To Share Capital A/c (Being 6,000 shares issued to vendor of building in purchase consideration) To Share Application A/c (Being application money of ` 2 received on 8,000 shares) Share Application A/c To Share Capital A/c (Being application money transferred to share capital A/c) Share Allotment A/c To Share Capital A/c (Being share allotment money due) To Share Allotment A/c (Being allotment money received except on 750 shares) Share First Call A/c To Share Capital A/c (Being share first call due) To Share First call A/c (Being share call money received except on 2,000 shares) Share Capital A/c To Share Allotment A/c To Share First Call A/c To Share Forfeiture A/c (Being 750 shares forfeited for not receiving allotment & call money) OR In Books of JS Ltd. Debit Amount 60,000 60,000 16,000 16,000 8,000 7,250 16,000 12,000 3,750 Credit Amount 60,000 60,000 16,000 16,000 8,000 7,250 16,000 12,000 750 1,500 1,500 Date L.F. Debit Credit To Equity Share Application A/c (Being Application money received on 1,60,000 shares) Equity Share Application A/c To Equity Share Capital A/c To Securities Premium Reserve A/c To To Equity Share Allotment A/c (Being Application money transferred to share capital A/c) Equity Share Allotment A/c To Equity Share Capital A/c To Securities Premium Reserve A/c (Being share Allotment made due) 6,40,000 6,40,000 4,80,000 6,40,000 2,40,000 80,000 1,60,000 1,60,000 2,40,000 2,40,000 8

Solutions 9 To Equity Share Allotment A/c (Being Allotment money received except on 400 shares) OR Calls in Arrears A/c To Equity Share Allotment A/c (Being Allotment money received except on 400 shares) Equity Share Capital A/c Securities Premium Reserve A/c To Share Forfeiture A/c To Equity share allotment A/c / Calls in Arrears A/c (Being 400 shares of Raman forfeited after allotment) Equity Share First & Final call A/c To Equity Share Capital A/c To Securities Premium Reserve A/c (Being First & Final call due on 79,600 shares) To Equity Share First and Final Call A/c (Being First & Final call money received except on 800 shares) OR Calls in Arrears A/c To Equity Share First and Final Call A/c (Being First & Final call money received except on 800 shares) Equity Share Capital A/c Securities Premium Reserve A/c To Share Forfeiture A/c To Equity Share First and Final Call /Calls in Arrears A/c (Being 800 shares of Veer forfeited) Share Forfeiture A/c To Equity Share Capital A/c (Being 500 shares reissued for ` 8 per share fully paid up) Share Forfeiture A/c To Capital Reserve A/c (Being gain on reissue on forfeited shares transferred to capital reserve account) 3,18,400 3,18,400 1,600 2,400 1,200 4,77,600 4,72,800 4,72,800 4,800 8,000 1,600 4,000 1,000 1,600 3,18,400 3, 2,000 1,600 3,18,400 1,59,000 4,72,800 4,77,600 4,800 4,800 5,000 1,600 (½ + 1 + ½ + 1 + 1 + ½ + 1 + 1 + ½ + 1 = 8) Ans. 18. Payment of principal- Investing Activity Payment of interest- Financing Activity [CBSE Marking Scheme 2016] 1 Ans. 19. Operating Activities. 1 Ans. 20. Trademarks Items Capital Redemption Reserve Income Received in Advance Stores and Spares Office Equipment Current Investment Major Heading Non-Current Assets Shareholders' Funds Current Liabilities Current Assets Non-Current Assets Current Assets 4

10 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Ans. 21. Gross Profit Ratio = Gross Profit/Revenue from operations 100 Ans. 22. Working Note : (i) (ii) = ` 10,00,000 / ` 30,00,000 100 = 33.33% Working Capital Turnover Ratio = Revenue from operations/working Capital = ` 30,00,000 / ` 4,00,000 = 7.5 Gross Profit = Revenue Cost of Revenue = ` 30,00,000 ` 20,00,000 = ` 10,00,000 Working Capital = Current Assets Current Liabilities = ` 6,00,000 ` 2,00,000 Good Service Ltd. Comparative Statement of Profit & Loss for the year ended 31 st March, 2012 and 2013 Note 31 st March, 2012 = ` 4,00,000 (2 + 2 = 4) 31 st March, 2013 Absolute change (Increase/ Decrease) Percentage change (Increase/ Decrease) (A) (B) C = B A D=C/A 100 I. Revenue from Operations 15,00,000 20,00,000 5,00,000 33.33 II. Other Income 4,00,000 10,00,000 6,00,000 150 III. Total Revenue (I + II) 19,00,000 30,00,000 11,00,000 57.89 IV. Expenses 15,00,000 21,00,000 6,00,000 40 V. Profit before tax (III IV) 4,00,000 9,00,000 5,00,000 125 Less : Income Tax 2,00,000 4,50,000 2,50,000 125 VI. Profit after tax 2,00,000 4,50,000 2,50,000 125 (1 + 1 + 1 + 1 = 4) Ans. 23. Cash Flow Statement for the year ended 31 st March, 2012 A. Cash Flow from Operating Activities : Amount Amount Difference in Net Profit (Reserves & Surplus) (50,000) Adjustments for Non-cash & Non-operating Items : Add : Interest on long-term borrowings Add : Depreciation charged on tangible assets Cash flow before working capital changes Less : Increase in Investments Less : Increase in Trade Receivables Add : Increase in Trade Payables Net Cash used in Operating Activities (A) 36,000 1, (1,00,000) (80,000) 10,000 1,56,000 1,06,000 (1,70,000) (64,000)

Solutions 11 B. Cash Flow from Investing Activities : Purchase of Tangible Assets Net Cash used in Investing Activities (B) C. Cash Flow from Financing Activities : Issue of Share capital Raising of Long-term borrowings Interest paid on Long-term borrowings Net Cash from Financing Activities (C) Net decrease in Cash & Cash Equivalents (A + B + C) Add : Cash and Cash Equivalents in the beginning of year Cash and Cash Equivalents at the end of year (4,) 4,00,000 90,000 (36,000) (4,) 4,54,000 (30,000) 3,70,000 3,40,000 Working Note : Tangible Assets Account Cr. To Balance b/d To Amount Amount 9,00,000 4, By Depreciation A/c By Balance c/d 1, 12,00,000 13, 13, ( 2 + 2 + 2 = 4) qqq

Time : 3 Hours Maximum Marks : 80 ACCOUNTANCY CBSE Sample Question Papers Solution to Question Paper 7 Ans. 1. The provision of Indian Partnership Act, 1932 regarding : Ans. 2. Ans. 3. (i) Interest on Partners' capital : No Interest on capital is allowed. (ii) Interest on Partners loan : Interest is payable @ 6% per annum. [CBSE Marking Scheme 2011] 1 A new partner cannot be admitted in the partnership firm without the consent of old partners. In this case K can become partner only if X and Y allow him. 1 Basis Court s Intervention Dissolution of Partnership Court does not intervene because partnership is dissolved by mutual agreement. Dissolution of Partnership Firm A firm can be dissolved by the court s order. Ans. 4. Ans. 5. Ans. 6. [CBSE Marking Scheme, 2016] 1 Paid-up capital is the amount which has been paid by the shareholders of the company against the shares alloted to them. 1 According to the provisions of the Companies Act, 2013, the companies are required to create Debenture Redemption Reserve of at least 25% of the face value of debentures before the redemption of debentures commences. [CBSE Marking Scheme, 2016] 1 Date L.F. Debit Credit 2015 Mar. 31 A s Current A/c To Interest on Drawings A/c (Being Interest on drawings charged) 700 700 Ans. 7. In the Books of Fena Ltd. [CBSE Marking Scheme, 2016] 1 Date L.F. Debit Credit To 12% Debentures Applications and Allotment A/c (Being 12% debentures issued at premium) 7,35,000 7,35,000

Solutions 13 12% Deb. Application & Allotment A/c Loss on Issue of Debentures A/c To 12% Debentures A/c To Securities Premium Reserve A/c To Premium on Redemption of Debentures A/c (Being debentures issued at a premium of 5% and redeemable at 20% premium) 7,35,000 1,40,000 7,00,000 35,000 1,40,000 (1½ + 1½ = 3) Ans. 8 The book value of the assets and liabilities may be different from the present value/ market value of assets and liabilities, that is why the assets are revalued and liabilities are reassessed on the reconstitution of a partnership firm. Example : (i) Change in value of land on the admission of a new partner. (ii) Change in value of machinery on the change in profit sharing ratio amongst existing partners (or any other such circumstance) [CBSE Marking Scheme, 2016] 3 Ans. 9. (i) Yes, these shares can be re-issued. (ii) The minimum amount at which shares can be re-issued is ` 100 55 = ` 45 (iii) If these shares were re-issued at ` 50 per share fully paid up the amount which will be transferred to capital reserve will be ` 5,000. (1 3 = 3) Ans. 10 Balance Sheet as on... Note No. Amount I. Equity and Liabilities Shareholders Fund : (a) Share Capital 1 9,60,000 Notes to Accounts : Note No. Amount (i) (ii) (iii) Ans. 11. I. Share Capital Authorized Share Capital 2,00,000 share of ` 10 each 20,00,000 Issued Share Capital 96,000 shares of ` 10 each 10,00,000 Subscribed and Fully paid up capital 96,000 shares of ` 10 each fully called up 9,60,000 Profit and Loss Appropriation Account for the year ending 31 st March, 2012 Amount Amount To Reserve A/c To Rehman s Current A/c (1,26,000 16,000) To Suleman s Capital A/c (36,000 16,000) To Hanuman s Capital A/c (18,000 + 16,000 + 16,000) 1,10,000 50,000 By Profit & Loss A/c 2,00,000 2,00,000 2,00,000 3

14 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Working Notes : (1) 10% of the trading profits will be transferred to Reserve Account. 10% of Profit = 2,00,000 10 = ` 100 Profit ` 2,00,000 ` = ` 1,80,000 will be transferred to current accounts of partners. (2) Profit ` 1,80,000 will be shared among all partners in their existing ratio. Rehman Suleman Hanuman 7 : 2 : 1 Rehman s Share of Profit (1,80,000 7/10) = ` 1,26,000 Suleman s Share of Profit (1,80,000 2/10) = ` 36,000 Hanuman s Share of Profit (1,80,000 1/10) = ` 18,000 Hanuman s Share of guarantee = ` 50,000 Deficiency = ` 50,000 ` 18,000 = ` 32,000 Deficiency ` 32,000 will be borne by Rehman and Suleman equally i.e., ` 16,000 each Thus, Rehman s Share ` 1,26,000 ` 16,000 = ` 1,10,000, Suleman's Share ` 36,000 ` 16,000 = `, Hanuman s Share ` 18,000 + ` 16,000 + ` 16,000 = ` 50,000. (3 + 1 = 4) Ans. 12. Entries Date L.F. Sundry Assets A/c Goodwill A/c (Bal. fig.) To Creditors A/c To Ashish Ltd. A/c (Being purchase of business of Ashish Ltd.) Ashish Ltd. A/c To To 12% Debentures A/c To Securities Premium Reserve A/c (Being debentures issued at premium) Debit Amount 1,80,000 36,000 1,76,000 Credit Amount 40,000 1,76,000 88,000 80,000 8,000 Working Note : No. of debentures to be issued to Ashish Ltd. = 88,000/110 = 800 [CBSE Marking Scheme 2011] (1½ + 1½ + 1 = 4) Ans. 13. Date L.F. Debit Credit B s Capital A/c To A s Capital A/c (Being adjustments in partners capital account passed) Adjustment Table 60,000 60,000 A B C Total Profit Distributed to be debited 1,00,000 1,00,000 1,00,000 3,00,000 Salary credited 60,000 60,000 Commission credited 80,0000 80,000 Profit after adjustment (2 : 1 : 1) credited 80,000 40,000 40,000 1,60,000 Total Payable to Partners as per agreement 1,60,000 40,000 1,00,000 3,00,000 Adjustment (Cr.) 60,000 () 60,000 Nil (2 + 4 = 6)

Solutions 15 Ans. 14. Revaluation Account Cr. Amount Amount To Furniture A/c To Provision for doubtful debts A/c To Provision for legal claims A/c 17,500 500 2,500 By Land and Building By Loss transferred to : X Y Z 10,000 5,250 3,150 2,100 20,500 20,500 Partners Capital Account Cr. X Y Z X Y Z To Revaluation A/c To Z s Capital A/c To Z s Loan A/c To (Bal.) To Balance c/d 5,250 7,500 1,14,250 3,150 4,500 82,350 2,100 70,000 10,900 By Balance b/d By X s Capital A/c By Y s Capital A/c 1,27,000 90,000 71,000 7,500 4,500 1,27,000 90,000 83,000 1,27,000 90,000 83,000 3 2 = 6 Ans. 15. Revaluation Account Cr. Amount Amount To Investment A/c (as investment was overvalued) To Profit on Revaluation : Hot Cold Warm 10,000 1,500 1,000 500 By Land A/c (as land was undervalued) By Provision for doubtful debt A/c 5,000 8,000 13,000 13,000 Cold s Capital Account Cr. Amount Amount To Cold s Executor s A/c 87,500 By Balance b/d By Revaluation A/c By Hot's Capital A/c (Goodwill) By Warm s Capital A/c (Goodwill) By Profit & Loss Suspense A/c By Workmen Compensation fund A/c Values : (i) Concern towards society. (ii) Social upliftment. Working Notes : (i) Value of Goodwill Average Profit = ` 35, 000 + ` 30, 000+ ` 25, 000 3 60,000 1,000 15,000 5,000 2,500 4,000 87,500 87,500 = ` 30,000

16 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Goodwill = ` 30,000 2 = ` 60,000. 2 Cold's share in goodwill to be ` 60, 000 = ` 20, 000 6 Contributed by Hot & Warm in ratio 3 : 1 2 3 (ii) Cold's Share of Profit for three months = ` 30,000 = ` 2,500 6 12 (3 + 3 = 6) Ans. 16. Revaluation Account Cr. Amount Amount To Stock A/c To Provision for doubtful debts A/c 2,500 150 By Plant A/c By Loss on Revaluation : W R 2,500 2,650 2,650 Partners' Capital Account Cr. W R B W R B To Goodwill A/c To Revaluation A/c To Balance c/d Creditors Bank Loan Partners' Capital A/cs : 2,400 90 23,210 1,600 60 17,140 15,000 By Balance b/d By Invest. F. Fund A/c By Cash A/c 2,400 15,000 1,600 By Premium for goodwill A/c 3,300 2,200 25,700 18,800 15,000 25,700 18,800 15,000 Balance Sheet As on 31 st March, 2013 90 60 15,000 Liabilities Amount Assets Amount W 23,210 R 17,140 B 15,000 Working Note : 17,500 10,000 55,350 Cash (` 2,500 + ` 15,000 + 5,500) Debtors 10,000 Less : Provision for Bad Debts (500) Stock Plant Patents Investment 23,000 9,500 10,000 10,350 10,000 82,850 82,850 `(10, 000 + 7, 000 + 8, 500, + 7, 500) Average Profit = = ` 8,250 4 Goodwill = ` 8,250 2.5 = ` 20,625 B s Share in goodwill = ` 20, 625 4 15 = ` 5,500 (2 + 3 + 3 = 8)

Solutions 17 OR Realisation Account Cr. To Plant A/c To Furniture A/c To Motor Van A/c To Stock A/c To Debtors' A/c To Cash A/c Creditors Amount Amount Realisation Expenses 80,000 45,000 25,000 30,000 71,000 1,00,000 5,000 By Creditors' A/c By Kumar's Capital A/c (Plant taken over) By Cash A/c : Plant Furniture Debtors By Shyam's Capital A/c (Motor Van taken over) By Loss on Realisation : Kumar 500 Shyam 300 Ratan 200 1, 45,000 50,000 40,000 70,000 30,000 1,000 3,56,000 3,56,000 Partners' Capital Accounts Cr. To Realisation A/c (Assets taken Over) To Realisation A/c (Loss on realization) To Cash A/c (Final settlement) Kumar 45,000 500 22,500 Shyam 30,000 300 19,700 Ratan 200 26,800 Kumar Shyam Ratan By Balance b/d 68,000 50,000 27,000 68,000 50,000 27,000 68,000 50,000 27,000 Cash Account Cr. Amount Amount To Balance b/d To Realisation A/c : Plant Furniture Debtors 14,000 50,000 40,000 70,000 By Realisation A/c : Creditors Realisation Expenses By Partners' Capital A/cs : Kumar Shyam Ratan 1,00,000 5,000 22,500 19,700 26,800 1,74,000 1,74,000 (2 + 3 + 3 = 8)

18 Ans. 17. OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 In the Books of X Ltd. Entries Date L.F. Debit Credit (a) Share Capital A/c To Share Forfeiture A/c To Share First Call A/c (Being share forfeited) (15 8) To Share Capital A/c To Securities Premium Reserve A/c (Being shares issued at ` 8 paid up at a premium of ` 1/ share) 140 120 100 40 105 15 Share Forfeiture A/c To Capital Reserve A/c (Being forfeited amount transfared to capital reserve) (b) Share Capital A/c Securities Premium Reserve A/c (90 2) To Share Forfeiture A/c To Share Allotment A/c (Being shares forfeited) To Share Capital A/c To Securities Premium Reserve A/c (Being shares re-issued) Shares Forfeiture A/c To Capital Reserve A/c (Being Shares forfeited transferred to capital reserve) 75 720 180 800 400 75 450 450 640 160 400 OR In the Books of Pragya Ltd. (8) Date L.F. Debit Credit To Share Application A/c (Being application received for 16,500 share @ ` 50) Share Application A/c To Share Capital A/c (10,000 ` 50) To (4,000 ` 50) To Share Allotment A/c (Balance) (Being application amount adjusted) 8,25,000 8,25,000 8,25,000 1,25,000 2,00,000 5,00,000 Share Allotment A/c To Share Capital A/c To Securities Premium Reserve A/c (Being allotment amount due on 10,000 shares @ ` 35) 3,50,000 2,50,000 1,00,000

Solutions 19 To Share Allotment A/c (Being allotment amount received except on 20 shares of Ankur) 2,20,500 2,20,500 Share First & Final Call A/c 2,50,000 To Share Capital A/c 2,50,000 (Being share first call due on 10,000 shares @ ` 25) 2,45,000 To Share First & Final Call A/c 2,45,000 (Being first call amount received on 9,800 shares) Share Capital A/c Securities Premium A/c 2,000 To Share Forfeiture A/c 12,500 To Share Allotment A/c 4,500 To Share First & Final Call A/c 5,000 (Being 200 shares forfeited) To Share Capital A/c To Securities Premium Reserve A/c (Being 100 shares re-issued at premium of ` 5 per share) Share Forfeiture A/c (100/200 ` 12,500) To Capital Reserve A/c (Being profit on re-issue transferred to capital reserve) 10,500 6,250 10,000 500 6,250 (½ + 1 + ½ + 1 + 1 + 1 + 1 + 1 + 1 = 8) Ans. 18. Dividend is classified as cash flow from financing activity in the Cash Flow Statement. 1 Ans. 19. Cash equivalents are short-term, highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of changes in value. 1 Ans. 20. Comparative Statement of Profit & Loss for the year ended 31 st March, 2014 and 2015 2013-14 2014-15 Absolute Change Percentage Change (%) (i) Revenue from Operations 34,00,000 75,00,000 41,00,000 120.59 (ii) Add : Other income 3,00,000 1,50,000 (1,50,000) (50) (iii) Total Revenue (i) + (ii) 37,00,000 76,50,000 39,50,000 106.76 (iv) Less : Expenses Employee Benefit Expenses Other Expenses 22, 2,22,000 45,90,000 4,59,000 23,70,000 2,37,000 106.76 106.76 Total Expenses 24,42,000 50,49,000 26,07,000 106.76 (v) Profit before Tax (iii) (iv) (vi) Less : Tax 12,58,000 6,29,000 26,01,000 10,40,400 13,43,000 4,11,400 106.76 66.41 (vii) Profit after tax 6,29,000 15,60,600 9,31,600 148.11

20 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Values (Any two) : 1. Promoting environment friendly ways of supplying energy. 2. Development of rural areas. 3. Infrastructural development in rural areas to increase accessibility. 4. Promoting use of indigenous resources. 5. Providing employment opportunities. [CBSE Marking Scheme, 2016] (3 + 1 = 4) Ans. 21. (a) Profitability of business refers to the earning capacity of the business. Operating Profit (b) Operating Profit Ratio = 100 Net Revenue from Operations Net Revenue from Operations = ` 4,00,000 ` 15,000 = ` 3,85,000 Cost of Revenue from Operations = Opening Stock + Purchases Purchase Return Closing Stock = ` (10,000 + 1, 5,000 60,000) = ` 65,000 Gross Profit = Net Revenue from operations Cost of revenue from operations = ` 3,85,000 ` 65,000 = ` 3, Operating Expenses = Selling expenses + Administrative expenses = ` 70,000 + ` 40,000 = ` 1,10,000 Operating Profit = Gross Profit Operating Expenses = ` 3, ` 1,10,000 = ` 2,10,000 ` 2,10, 000 Operating Profit Ratio = 100 ` 3, 85, 000 = 54.55% (1 + 3 = 4) Ans. 22. Current Assets : (i) Current Investments (ii) Inventories (iii) Trade Receivables Current Liabilities : (i) Short-term Borrowings (ii) Trade Payables (iii) Short-term Provisions (1 4 = 4) Ans. 23. Cash Flow Statement for the year ended 31 st March, 2012 (A) Cash Flow from Operating Activities : Net Loss for the Year before Tax Add : Items to be Added Depreciation Amount Amount Operating Profit Before Working Capital Changes Add : Decrease in Current Assets & Increase in Current Liabilities: Inventories Trade Payables Less : Increase in Current Assets Decrease in Current Liabilities Trade Receivables Cash Flow from Operating Activities (A) 1,00,000 25,000 (1,00,000) 1,00,000 Nil 1,25,000 (25,000) 1,00,000

Solutions 21 (B) Cash Flow from Investing Activities Purchase of Intangible Assets Sale of Non-Current Investments Cash used in Investing Activities (B) (C) Cash Flow from Financing Activities Issue of Share Capital Raise of Long-term Borrowings Cash flow from Financing Activities (C) Net Increase in Cash and Cash Equivalents (A + B + C) Add : Cash and Cash Equivalents in the beginning of the Period Cash and Cash Equivalents at the end of the Period (3,00,000) 1,00,000 3,00,000 1,00,000 (2,00,000) 4,00,000 3,00,000 2,00,000 5,00,000 Working Note : Tangible Assets Account Cr. Amount Amount To Balance b/d 9,00,000 By Depreciation A/c By Balance c/d 1,00,000 8,00,000 9,00,000 9,00,000 (3 + 1 + 2 = 6) qqq

Time : 3 Hours Maximum Marks : 80 ACCOUNTANCY CBSE Sample Question Papers Solution to Question Paper 8 Ans. 1. No, a sleeping partner is not liable for the act of other partners. 1 Ans. 2. Partnership deed is a written agreement containing rights and liabilities of partners 1 Ans. 3. (i) Super Profit = Actual (Average) Profit Normal Profit. (ii) Goodwill = Super Profit No. of years purchase. (½ + ½ = 1) Ans. 4. Securities Premium Reserve is the excess amount, charged by a company for issuing securities (shares, debentures etc.) over its face value. Securities Premium Reserve = Issue Price Face Value. [CBSE Marking Scheme 2014] 1 Ans. 5. General Reserve Account. 1 Ans. 6. No, he is not correct. Reason : Because rent paid is a charge against profits so it should be debited to Profit & Loss Account. 1 Ans. 7. Basis Preference Shares Equity Shares Dividend Rights First of all dividend will be paid to the preference shareholders'. Dividend will be paid to the equity share - holders after it is paid on preference shares. Dividend Rate Rate of dividend is fixed. Rate of dividend is decided every year. Conversion Can be converted into equity shares. Equity shares cannot be converted. Ans. 8. Ans. 9. (1 + 1 + 1 = 3) Goodwill = Super profit No. of years of purchase ` 60,000 = Super profit 4 Super profit = ` 60,000 / 4 = ` 15,000 Capital Employed = ` 1,00,000 + ` ` 10,000 = ` 1,10,000 Normal Profit = ` 1,10,000 8/100 = ` 8,800 Super Profit = Average Profit Normal Profit ` 15,000 = Average Profit ` 8,800 Average Profit = ` 23,800 3 Notes to Accounts Share Capital : (a) Authorised Share Capital Amount Amount 1,00,000 shares of ` 10 each 10,00,000 (b) Issued Share Capital 90,000 shares of ` 10 each 9,00,000

Solutions 23 (c) Subscribed Share Capital 90,000 shares of ` 10 each 9,00,000 (d) Called up Share Capital 90,000 shares @ ` 6 each 5,40,000 (e) Less : Calls in arrears (5,500 shares @ ` 2 each) (11,000) (f) Paid-up Share Capital 5,29,000 Ans. 10. In the Books of... Date L.F. Debit Credit Working Notes : Z's Capital A/c To X's Capital A/c (Being Profit & Loss A/c balance and advertisement suspense adjusted in gaining & sacrificing ratio) Ans. 11. (a) Values : X's Sacrifice = Z's gain = 5 2 = 3 10 10 10 Z will compensate X for sacrifice made = 3 10 ( ) = 7,500 ` 48, 000 ` 24, 000 ` 7, 200 7,500 3 (1½ + 1½ = 3) (1) By Manufacturing ISI goods for economically weaker section, they are fulfilling the social responsibility. (2) By taking Juliee as a partner, they are giving opportunity to a specially abled, creative and intelligent friend. Moreover, they are compassionate towards Juliee, as they are taking her as a partner, without capital. (b) Profit & Loss Appropriation Account for the year ending 31 st March, 2013 Cr. Amount Amount To Interest on Capital : Satnam 25,500 Qureshi 12,300 To Profit transferred to Capital A/cs : Satnam 1, Qureshi 1, Juliee 60,000 Working Note : Interest on Capital : 37,800 3,00,000 Satnam = 4,00,000 6/100 + 50,000 6/100 6/12 = ` 25,500. By Net Profit 3,37,800 3,37,800 3,37,800 Qureshi = 2,00,000 6/100 + 6/100 3/12 = ` 12,300. 2 + 2 = 4 [CBSE Marking Scheme]

24 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Ans. 12. Date L.F. A s Capital A/c B s Capital A/c C s Capital A/c D s Capital A/c To Goodwill A/c (Being old goodwill written off) A s Capital A/c B s Capital A/c To C s Capital A/c To D s Capital A/c (Being the goodwill adjusted on retirement of D) Profit & Loss App. A/c To A s Capital A/c To B s Capital A/c To C s Capital A/c (Being profit distributed among partners in new ratio) Debit Amount 1,35,000 1,35,000 90,000 90,000 1, 12,00,000 Credit Amount 4,50,000 1, 6,00,000 4,00,000 2,00,000 Ans. 13. Working Note : Calculation of Gaining Ratio = New Share Old Share A = 3 3 = 6 (Gain) 6 10 30 B = 2 3 = 1 (Gain) 6 10 30 C = 1 2 1 = 6 10 30 (Sacrifice) A s contribute in Goodwill = ` 6,00,000 6 30 = ` 1, B s contribute in Goodwill = ` 6,00,000 1 30 = ` C s will get in Goodwill = ` 6,00,000 1 30 = ` D s Share in Goodwill = ` 6,00,000 2 10 = ` 1, (3 + 1 = 4) Profit & Loss Appropriation Account Cr. To Profit transferred to : Ram s Capital A/c Mohan s Capital A/c Rakhi s Capital A/c for the year ended 31.03.12 Amount Amount 2,83,333 2,83,333 2,83,334 By Profit & Loss A/c (W.N.) 8,50,000 8,50,000 8,50,000

Solutions 25 Values considered by Ram, Mohan and Rakhi : (i) The decision of donating to Prime Minister s Relief Fund depicts their Social responsibility towards the needy people. (ii) Sensitivity towards Blind people. (iii) Sensitivity towards people of low income group and fulfilment of social responsibility towards weaker section of the society. (iv) This decision reveals about fulfilment of Social responsibility about Naxal affected areas of the country. (v) Sensitivity towards girls belonging to scheduled castes and scheduled tribes and also fulfilment of social responsibility towards women empowerment. Working Notes : 1. Trading Profit = ` 10,00,000 (Given) Less : 10% of Profit Donated to Prime Minister s Relief Fund = ` (1,00,000) Less : 5% Donation to the National Blind Relief Fund = ` (50,000) Balance Profit = ` 8,50,000 (4 + 2 = 6) Ans. 14. (a) Date L.F. (i) 6% Debentures A/c Premium on Redemption A/c To Debentureholders' A/c (Being amount due on redemption) (ii) Debentureholders A/c To 8% Preference Share Capital A/c To Securities Premium Reserve A/c (Being conversion of debenture into preference shares) Debit Amount 50,000 5,000 55,000 Credit Amount 55,000 50,000 5,000 (b) Date L.F. (i) 6% Debentures A/c To Debentureholders' A/c (Being amount due on redemption) (ii) Debentureholders' A/c To Equity Share Capital A/c To Securities Premium Reserve A/c (Being conversion of debenture into equity shares @ premium of ` 2 per share) Debit Amount 88,00,000 88,00,000 Credit Amount 88,00,000 80,00,000 8,00,000 (3 + 3 = 6) Ans. 15. Naresh s Capital Account Cr. To Profit and Loss A/c Amount Amount To Profit and Loss Suspense A/c (2009) To Naresh s Executor s A/c 64,000 16,000 2,80,000 By Balance b/d By General Reserve A/c By Ramesh s Capital A/c By Sudesh s Capital A/c 3,00,000 12,000 32,000 16,000 3,60,000 3,60,000

26 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Working Notes : (i) Goodwill = Average Profit No. of Years Purchase Average Profit = `(50,000 + 80,000 + 1,10,000 + 2, 1,60,000) 5 = `3,00,000 5 = ` 60,000 Goodwill = ` 60,000 2 = ` 1, Ans. 16. Naresh s share of Goodwill = ` 1, 2 5 = ` 48,000 To be shared by remaining partners in the ratio of 2 : 1. (ii) Naresh's share in Profit (Loss) = `1,60,000 2 3 5 12 = ` 16,000 (loss) 6 Revaluation Account Cr. To Profit transferred to : Raghu 22,440 Amount Rishu 14,960 37,400 By Building A/c By Prov. for doubtful debts A/c By Creditors A/c Amount 19,600 7,000 10,800 37,400 37,400 Partners' Capital Accounts Cr. To Cash A/c To Balance c/d Raghu 48,040 1,00,000 Rishu 84,860 50,000 Rishabh 50,000 By Balance b/d By Inv. Flu. Fund A/c By Cash A/c By Premium for Goodwill A/c Raghu 1,19,000 2,400 Rishu Rishabh By Revaluation A/c 22,440 14,960 1,48,040 1,34,860 50,000 1,48,040 1,34,860 50,000 4,200 1,12,000 1,600 6,300 50,000 Liabilities Creditors Employee Provident Fund Capitals : Raghu 1,00,000 Rishu 50,000 Rishabh 50,000 Balance Sheet as on 1 st March, 2009 Amount 75,200 10,000 2,00,000 Assets Cash in hand (77,000 + 50,000 + 10,500 48,040 84,860) Debtors Investment Buildings Plant and Machinery Amount 4,600 42,000 21,000 1,17,600 1,00,000 2,85,200 2,85,200 (2 + 3 + 3 = 8)

Solutions 27 OR Realisation Account Cr. Amount Amount To Stock A/c To Debtors' A/c To Furniture A/c To Investments A/c To Cash A/c (Sundry creditors) To Cash A/c (Exp.) To profit transferred to Partners' Capital A/cs : Bhuvan 1,400 Suraj 933 Ibrahim 467 20,100 62,600 16,000 50,400 4,500 2,800 By Sundry Creditors A/c By Investment Fluctuation Fund A/c By Bhuvan's Capital A/c (Investments) By Suraj's Capital A/c (Stock) By Ibrahim's Capital A/c (Furniture) By Cash A/c (Debtors) 50,400 10,000 18,000 17,500 60,500 1,76,400 1,76,400 Partners Capital Accounts Cr. To Realisation A/c To Cash A/c Bhuwa 18,000 19,400 Suraj 17,500 7,433 Ibrahim By Balance b/d By General Reserve A/c By Realisation A/c By Cash A/c Bhuvan 30,000 6,000 1,400 Suraj 4,000 933 Ibrahim 10,000 2,000 467 7,533 37,400 24,933 37,400 24,933 Cash Account Cr. Amount Amount To Balance b/d To Ibrahim's Capital A/c To Realisation A/c (Debtors) 13,700 7,533 60,500 By Realisation A/c (creditors) By Realisation A/c (Expenses) By Bhuvan s Capital A/c By Suraj s Capital A/c 50,400 4,500 19,400 7,433 81,733 81,733 Ans. 17. Entries Date L.F. To Share Application & Allotment A/c (Being application money received) Debit Amount 2,00,000 2 + 3 + 3 = 8 Credit Amount 2,00,000 Share Application & Allotment A/c To Share Capital A/c To Calls in advance (Being allotment made) 2,00,000 1,60,000 40,000

28 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Share First Call A/c To Share Capital A/c (Being first call money due) Calls in arrears A/c Calls in advance A/c To Share first call A/c (Being first call money received) Share Capital A/c To Share Forfeiture A/c To Calls in arrears A/c (Being 1600 shares forfeited) Shares Second & Final Call A/c To Share Capital A/c (Being second & final call due) Call in arrears A/c To Share Second & final call A/c (Being second and final call received) Share Capital A/c To Share Forfeiture A/c To Second and final call (Being 2,400 shares forfeited) Share Forfeiture A/c To Share Capital A/c (Being 4,000 forfeited shares reissued) Share Forfeiture A/c To Capital Reserve A/c (Being amount transferred to capital reserve) (a) OR 3, 2,74,400 5,600 40,000 9,600 3,13,600 3,04,000 24,000 36,000 4,000 14,400 3, 3, 4,000 5,600 3,13,600 3,04,000 14,400 9,600 40,000 14,4000 Date L.F. Debit Credit Share Capital A/c Securities Premium Reserve A/c To Share Forfeiture A/c To Share Allotment A/c To Share First call A/c (Being 2,000 shares of ` 10 each, ` 8 called up issued at a premium of ` 2 per share forfeited for non-payment of allotment of ` 2 per share and first call of ` 2 per share) To Share Capital A/c To Securities Premium Reserve A/c (Being 1,400 shares reissued for ` 19,600 as fully paid up) 16,000 4,000 19,600 6,000 10,000 4,000 14,000 5,600 8

Solutions 29 Shares Forfeiture A/c To Capital Reserve A/c (Being balance of share forfeited amount transferred to Capital Reserve) (B) Date L.F. Share Capital A/c To Share First Call A/c To Share Forfeiture A/c (Being 100 shares of ` 10 each, ` 8 called up forfeited for nonpayment of first call ` 2 per share) Shares Forfeiture A/c To Share Capital A/c (Being forfeited shares reissued as fully paid up at ` 7 per share) Shares Forfeiture A/c To Capital Reserve A/c (Being balance of share forfeited amount Transferred to Capital Reserve) 4,200 Debit Amount 800 700 300 300 4,200 Credit Amount 200 600 1,000 300 (4 2 = 8) Ans. 18. Cash outflow in a cash flow statement is the amount of cash spent or paid. 1 Ans. 19. Only profit ` 15,00,000 will be considered in operating activities while preparing cash flow statement 1 Ans. 20. S. No. Items Major Headings Lines Items (Heading) 1. Loose Tools Assets Current Assets Inventories Subline Items (Sub-heading) 2. Bills Receivables Assets Current Assets Trade Receivables 3. Patents Assets Non-current Assets Fixed Assets (Intangible) 4. Goodwill Assets Non-current Assets Fixed Assets (Intangible) 5. General Reserve Equity & Liabilities Shareholders funds Reserves & Surplus 6. Debentures Equity & Liabilities Non-current Liabilities Long-term borrowings [CBSE Marking Scheme, 2011] (1 4 = 4) Ans. 21. (a) Capital Employed = Fixed Assets + Working Capital ` 1,00,000 = Fixed asset + ` Fixed Assets = ` 80,000 Cost of goods sold = ` 3, Gross Profit on cost = 1 4 of cost = 1 of ` 3, 4 = ` 80,000 Net Sales = Cost + Gross Profit = ` 80,000 + ` 3, = ` 4,00,000 Net Sales Fixed Assets Turnover Ratio = Fixed Assets = ` 4,00,000 = 5 times ` 80, 000 (b) Profit before Ineterst and Taxes ` 2, Less : Interest on Debentures ` 40,000

30 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Ans. 22. Profit after Interest but Before Tax ` 1,80,000 Less : Tax @ 50% ` 90,000 Profit After Tax ` 90,000 Less : Preference share dividend ` 30,000 Profit after Tax and Dividend ` 60,000 Profit after Tax and Dividend Earning Per Share = No. of Equity shares = ` 60,000 25, 000 = ` 2.4 per share (2 + 2 = 4) Comparative Statement of Profit & Loss for the years ended 31st March 2011 & 2012 31.03.2011 31.03.2012 Absolute Change Relative Change (i) Revenue from Operations 20,00,000 30,00,000 10,00,000 50% (ii) Employees Benefit Expenses 12,00,000 21,00,000 9,00,000 75% (iii) Other Expenses 4,00,000 3,60,000 (40,000) (10%) (iv) Profit Before Tax (i ii iii) 4,00,000 5,40,000 1,40,000 35% (v) Tax 2,00,000 2,70,000 70,000 35% (vi) Profit After Tax (iv v) 2,00,000 2,70,000 70,000 35% Ans. 23. Cash Flow Statement For the year ended 31.03.12 Amount Amount (I) Cash Flow Statement from Operating Activities : Net Profit before tax (1,00,000 + 50,000) Add : Goodwill written off Add : Depreciation Add : Loss on Sale of Machinery Operating Profit before working capital changes Less : Increase in trade receivables Less : Increase in Inventories Less : Decrease in Trade Payables Less : Tax Cash Generated from Operating Activities (II) Cash Flow from Investing Activities : Purchase of Machinery Sale of Machinery Cash used in Investing Activities (III) Cash Flow from Financing Activities : Issue of Share Capital Money raised from borrowings Cash from Financing Activities Net Increase in Cash & Cash Equivalents (I + II + III) Add : Opening Cash & Cash equivalents (` 1,50,000 + 3,75,000) 1,50,000 72,000 66,000 2,000 2,90,000 (27,000) (8,000) (25,000) (77,000) (2,94,000) 6,000 1,00,000 70,000 1,53,000 (2,88,000) 1,70,000 35,000 5,25,000 Closing Cash & Cash Equivalents (` 3, + 2,40,000) 5,60,000

Solutions 31 Working Notes : Machinery Account Cr. Amount Amount To Balance b/d To (Purchases Bal. fig.) 10,00,000 2,94,000 By By Accumulated Dep. A/c By Loss on Sale of Machine A/c By Balance c/d 6,000 16,000 2,000 12,70,000 12,94,000 12,94,000 Accumulated Depreciation Account Cr. Amount Amount To Machinery A/c To Balance c/d 16,000 2,00,000 By Balance b/d By Depreciation A/c (Bal. fig.) 1,50,000 66,000 2,16,000 2,16,000 (2 + 1½ + 1½ + ½ + ½ = 6) qqq

Time : 3 Hours Maximum Marks : 80 ACCOUNTANCY CBSE Sample Question Papers Solution to Question Paper 9 Ans. 1. (i) Interest on capital (ii) Profit sharing ratio. 1 Ans. 2. Ans. 3. Preparation Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner. Not only that, but the liability of a partner for acts of the firm is also unlimited. This implies that his private assets can also be attached for paying off the firm s debts. [CBSE Marking Scheme, 2010] 1 Profit and Loss Appropriation Account Vs Profit and Loss Suspense Account Basis Profit and Loss Appropriation A/c Profit and Loss Suspense Account Profit & Loss Appropriation A/c is prepared to distribute profit among partners according to the provisions of partnership deed or Partnership Act. Profit & Loss Suspense A/c is temporary account opened to provide profit to deceased partner from last accounting year to date of death. Ans. 4. Reserve Capital. 1 Ans. 5. Ans. 6. Ans. 7. Authorised Capital : It is the maximum amount of share capital which a company can issue during its life span. It is also called as registered or nominal capital. 1 Ganga and Jamuna paid ` 60,000 more to Krishna which is the amount of Goodwill because the retiring partner is entitled to his share of goodwill at the time of retirement. 1 In the Books of Nandan Ltd 1 Date L.F. (i) To Equity Share Application & Allotment A/c (Being application money received on 50,000 equity shares of ` 100 each at par) (ii) Equity Share Application & Allotment A/c To Equity Share Capital A/c (Being equity share application money transferred to Share Capital Account) Amount 50,00,000 50,00,000 Amount Cr. 50,00,000 50,00,000

Solutions 33 (iii) (iv) To 10% Debenture Application & Allotment A/c (Being application money received on 80,000, 10% Debentures of ` 50 each) 10% Debenture Application & Allotment A/c To 10% Debentures A/c (Being amount transferred to debenture account) 40,00,000 40,00,000 40,00,000 40,00,000 Ans. 8. Ans. 9. Value which the company wants to communicate to the society (Any one) : (i) Welfare of employees. (ii) Environment awareness. (iii) Employment in the backward areas. (iv) Spreading literacy. 3 Minimum subscription is that amount which must be raised by the company in order to provide for the following : (i) To purchase the required assets. (ii) To meet the preliminary expenses, commission on shares etc. (iii) Working Capital. (iv) Paying loan or any other purpose. As per the SEBI s guidelines a company must receive a minimum of 90% subscription before making any allotment otherwise issue should be cancelled. 3 Balance Sheet of Vivek Ltd. as at 1 st April, 2012 Note No. Amount I. EQUITY AND LIABILITIES (1) Shareholders' Funds : Share Capital 1 63,00,000 Notes to Accounts : Share Capital : Authorised Share Capital : 2,00,000 share of ` 50 each Issued Share Capital : 1,80,000 equity shares of ` 50 each Subscribed Share Capital : Subscribed but not Fully Paid up 1,80,000 equity shares of ` 50 each, ` 35 called up Ans. 10. In the Books of... Date L.F. Cash A/c To C s Capital A/c To Premium for Goodwill A/c (Being capital and premium brought by C) 1,00,00,000 90,00,000 63,00,000 [CBSE Marking Scheme, 2014] (1 + 1 + 1 = 3) Debit Amount 2,60,000 Credit Amount 2,00,000 60,000

34 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 Ans. 11. Premium for Goodwill A/c To A s Capital A/c To B s Capital A/c (Being goodwill credited to sacrificing partners in 2:1 ratio) A s Capital A/c B s Capital A/c To Cash A/c (Being 40% of the premium withdrawn by the partners) 60,000 16,000 8,000 40,000 24,000 (1 + 1 + 1 = 3) Date L.F. (i) Anu's Capital A/c Bhagwan's Capital A/c To Goodwill A/c (Being the existing goodwill written off in the old ratio) (ii) Cash A/c To Raja's Capital A/c To Premium for goodwill A/c (Being the amount brought by Raja) (iii) Premium for Goodwill A/c Bhagwan's Capital A/c To Anu's Capital A/c (Being the amount paid to Anu for her sacrifice) Debit Amount 3,30,000 1,10,000 1,50,000 50,000 37,500 Credit Amount 4,40,000 1,00,000 50,000 87,500 Ans. 12. Working Notes : Calculation of Gaining/Sacrificing Ratio Anu = 3/4 2/5 = 7/20 (Sacrifice) Bhagwan = 1/4 2/5 = 3/20 (Gain) 4 Date L.F. 2014 March 31 Own Debentures A/c Expenses on Purchase of Own Debentures A/c To (Being for purchase of own debentures) March 31 9% Debenture A/c To Own Debentures A/c To Profit on Redemption of Debentures A/c To Expenses on Purchase of Own debentures A/c (Being for own debentures purchased being cancelled) March 31 Profit on Redemption of Debentures A/c To Capital Reserve A/c (Being for profits on cancellation of debentures transferred to capital reserve) Debit Amount 37,600 1,000 40,000 1,400 Credit Amount 38,600 37,600 1,400 1,000 1,400 4

Solutions 35 Ans. 13. Date L.F. Debit Amount 2014 Mar. 31 Esha's Capital A/c Manav's Capital A/c To Daman's Capital A/c (Being interest on capital and interest on drawings omitted, now adjusted) 6,250 300 Credit Amount 6,550 Working Notes : Calculation of Opening Capital : Esha Manav Daman Closing Capitals 3, 2,40,000 1,60,000 Less : Profits (45,000) (30,000) (15,000) Add : Drawings 48,000 48,000 60,000 Opening Capitals 3,23,000 2,58,000 2,05,000 Table showing adjustment : Esha Manav Daman Total Interest on Capital (Cr.) 32,300 25,800 20,500 78,600 Interest on Drawing () 1,200 1,200 1,500 3,900 Net (Cr.) 31,100 24,600 19,000 74,700 Profits already distributed () 37,350 24,900 12,450 74,700 Net Effect 6,250 () 300 () 6,550 (Cr.) Ans. 14. (a) 4 Date L.F. Profit and Loss A/c General Reserve A/c To A s Capital A/c To B s Capital A/c (Being adjustment made at the time of change in profit sharing ratio) Debit Amount 1,00,000 1,80,000 Credit Amount 1,68,000 1,12,000 (b) Date L.F. Plant A/c Land A/c Stock A/c Goodwill A/c (Bal. fig.) To Creditors' A/c To GK Ltd. (Being business purchased from GK Ltd.) Debit Amount 3,50,000 6,00,000 4,50,000 5,00,000 Credit Amount 1,00,000 18,00,000

36 OSWAAL CBSE Sample Question Paper, Accountancy, Class-12 GK Ltd. To Equity Share Capital A/c To Securities Premium Reserve A/c (Being issue of equity shares at premium) 18,00,000 15,00,000 3,00,000 Working Note : No. of shares to be Issued 18,00,000/120 = 15,000 3 + 3 = 6 Ans. 15. (a) New Ratio after retirement of Y is X : Z 3 : 1 X Z Fixed Capital 2,10,000 3 4 2,10,000 1 4 (In new ratio) 1,57,500 52,500 Balance at the time of retirement of Y 1,45,000 63,000 (b) Average profit of 5 years = 12,500 + 10,500 (Amount to be (Amount to be brought in by X) paid off to Z) ` (14,000 + 18,000 + 16,000 10,000 + 16,000) 5 = ` 54,000 5 = ` 10,800. Profit from 1.4.2009 to 30.6.2009 = ` 10,800 3 12 = ` 2,700 B s share of profits up to the date of death (estimated) = ` 2,700 1 3 = ` 900 Date L.F. Debit Amount Credit Amount Ans. 16. Profit and Loss Suspense A/c To B s (deceased) Capital A/c (Being amount credited to B's capital A/c i.e., his share in profits up to 30.6.2009) 900 900 6 Revaluation Account Cr. To Bad Debts A/c To Profit transferred to Partners' Capital A/c : Amit 2,050 Vidya 2,050 Amount Amount 900 By Stock A/c 5,000 4,100 5,000 5,000