Book Recommended : Ultimate Book of Accountancy 12 th CBSE ACCOUNTANCY (055) CLASS XII Time allowed: 3Hours Sample Paper - 2 M.M 80 General Instructions: 1. This question paper contains Two parts A& B. 2. Both the parts are compulsory for all. 3. All parts of questions should be attempted at one place. 4. Marks are given at the end of each question. Part A Partnership, Share Capital and Debentures 1. What is meant by Partnership Deed? (1) 2. What is meant by Reconstitution of a partnership firm? (1) 3. What is meant by Over-subscription of shares? (1) 4. State any one purpose for which Securities Premium can be utilised. (1) 5. What is meant by Debentures issued as Collateral Security? (1) 6. Ram and Shyam were partners in a firm sharing profits in the ratio of 3 : 2. Their fixed capitals were Rs.2,00,000 and Rs.3,00,000. After closing the accounts it was discovered that Interest on capital 10% p.a. provided in the agreement has not been credited to the partners before distribution of the profits. Pass the necessary Journal entry. (3) (Ans. Ram s Current A/c Dr.10,000 and Shyam s Current A/c Cr.10,000) 7. Vinod Limited acquired assets of Rs.50 Lakhs and took over creditors of Rs.5 Lakhs from Kumar Enterprises. Vinod Limited issued 8% Debentures of Rs.100 each at a premium of 25% as purchase consideration. Record the necessary Journal Entries in the books of Vinod Limited. (3) (Ans. (i) Assets A/c Dr.50,00,000; Creditors Cr.5,00,000; Kumar Enterprise Cr.45,00,000 (ii) Kumar Enterprise Dr.45,00,000; 8% Debentures A/c Cr.36,00,000; Securities Premium Cr.9,00,000)
8. Vinod Limited has 5,000, 8% Debentures of Rs.100 each due for redemption on 31 st March, 2007. Assume that Debenture Redemption Reserve has a balance of Rs.1,90,000 on that date. Record the necessary entries at the time of redemption of debentures. (3) (Ans. (i) Statement of P/L Dr.60,000 and DRR Cr.60,000 (ii) 8% Debentures A/c Dr 5,00,000 and Debentureholders A/c Cr.5,00,000 (iii) Debentureholders Dr.5,00,000 and Bank Cr.5,00,000 (iv) DRR Dr.2,50,000 and General Reserve Cr.2,50,000) 9. X, Y and Z are partners in a firm. Their profit sharing ratio is 5 : 3 : 2. However, Z is guaranteed a minimum amount of Rs.40,000 as share of profit every year. Any deficiency arising on that account shall be met by Y. The profit for the two years ending 31 st December 1995 and 1996 were Rs.1,60,000 and Rs.2,40,000 respectively. Prepare profit and loss appropriation account for two years. (4) (Ans. Year 1995 : Profit to X Rs.80,000; Y Rs.40,000 and Z Rs.40,000 Year 1996 : Profit to X Rs.1,20,000; Y Rs.72,000 and Z Rs.48,000) 10. A, B and C were in partnership sharing profits in proportion to their capitals. Their balance sheet on 31.3.2008 was as follows: Liabilities Amount Assets Amount To Capitals : Cash 16,000 A 90,000 Debtors 20,000 B 60,000 Less : Provision 400 19,600 C 30,000 1,80,000 Stock 18,000 Creditors General Reserve 15,600 6,000 Machinery Buildings 48,000 2,01,600 2,01,600 On the above date B retired owing to ill health and following adjustments were agreed upon: (a) Building be appreciated by 10%. (b) Provision for doubtful debts be increased to 5% of debtors. (c) Machinery be depreciated by 15%. (d) Goodwill of the firm be valued at Rs.36,000 and the adjusted into the capital accounts of A and C who will share profits in future in the ratio of 3:1. (e) A provision be made for outstanding repairs bill of Rs.3,000. (f) Included in the value of creditors is Rs.1,800 for an outstanding legal claim, which is not likely to arise. (g) Out of the insurance premium paid Rs.2,000 is for the next year. The amount was debited to Profit & Loss account. (h) Partners decide to fix the capital of the new firm as Rs.1,20,000 in profit sharing ratio. (i) B is to be paid Rs.9,000 in cash and the balance to be transferred to his Loan Account. Prepare Revaluation A/c, Partners Capital A/cs, Bank A/c and Balance Sheet. (6) (Ans. Revaluation Profit Rs.5,500 and Balance Sheet Rs. 2,42,425)
11. Vinod Limited forfeited 150 shares of Rs.20 each issued at a premium of Rs.5 per share for the non-payment of the second and final call of Rs.7 per share. 100 of these shares were reissued @ Rs.21 per share fully paid. Journalise the above transactions regarding the forfeiture and reissue. (4) (Ans. (i) Sh.Capital A/c Dr.3,000; Share Forfeiture A/c Cr.1,950; Sh.2 nd & final call 1050 (ii) Bank A/c Dr.2,100; Sh.Capital A/c Cr.2,000; Securities premium Cr.100 (iii) Forfeited Shares A/c Dr.1,300 and Capital Reserve Cr.1,300) 12. On 1st April, 2012, Micro-tech Ltd. was formed with an authorised capital of Rs. 50,00,000 divided into 5,00,000 equity shares of Rs.10 each. The company issued prospectus inviting applications for 4,50,000 equity shares. The company received applications for 4,20,000 equity shares. During the first year, Rs. 8 per share were called. Trilok holding 1,000 shares and Rajesh holding 2,000 shares did not pay the first call of Rs. 2 per share. Rajesh s shares were forfeited after the first call and later on 1,500 of the forfeited shares were re-issued at Rs. 6 per share, Rs.8 called up. Show the following : (a) Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956. (b) Also prepare Notes to Accounts for the same. (4) (Ans. Share Capital to be shown in Balance Sheet Rs. 33,57,000) 13. KK and BK are partners sharing profits in the ratio of 3:2 with capitals of Rs. and Rs.60,000 respectively. Interest on capital is agreed @6% per annum. BK is to be allowed an annual salary of Rs.5,000. During 2012-13 the profits of the year prior to calculation of interest on capital but after charging BK s salary amounted to Rs.25,000. A provision of 5% of the profits is to be made in respect of manager s commission. Show allocation of profits and also prepare Partners Capital Account. (6) (Ans. Profit Rs.13,900; KK s Capital A/c Rs.1,14,340 and BK s Capital A/c Rs.74,160) 14. X, Y and Z were partners sharing profits in the ratio of 3:2:1. On 31 st March 2008, their Balance Sheet stood as under: Liabilities Amount Assets Amount To Capitals : Cash at Bank X 75,000 Investments Y 70,000 Patents Z 50,000 1,95,000 Stock Creditors General Reserve 72,000 24,000 Debtors Buildings 70,000 50,000 15,000 25,000 20,000 75,000 36,000 Machinery 2,91,000 2,91,000 X died on 31 st May 2008. It was agreed that:
(a) Goodwill was valued at 3 years purchase of the average profits of the past five years, which were, 2003 Rs.40,000; 2004 Rs.40,000; 2005 Rs.30,000; 2006 Rs.40,000 and 2007 Rs.50,000. (b) Machinery was valued at Rs.70,000, Patents at Rs.20,000 and Buildings at Rs.66,000. (c) For the purpose of calculating X s share of profits till the date of death, it was agreed that the same be calculated based on the average profits for the last 2 years. (d) The executor of the deceased partner is to be paid the entire amount due by means of a cheque. Prepare X s Capital A/c to be rendered to his executor and also a Journal entry for the settlement of the amount due to the executor. (6) (Ans. X s Executor s A/c Rs.1,65,750) 15. Peromax Ltd. issued 50,000 shares of Rs.10 each at a premium of Rs.2 per share payable as Rs.3 on application, Rs.5 including premium on allotment and the balance in equal installments over two calls. Applications were received for 92,000 shares and allotment was done as under: (a) Applicants of 40,000 shares ----------------------- 30,000 shares (b) Applicants of 40,000 shares ----------------------- 20,000 shares (c) Applicants of 12,000 shares ----------------------- Nil Suresh who had applied for 2,000 shares (category A) did not pay any money other than application money. Chander who was allotted 800 shares (category B) paid the call money due along with allotment. All other allottees paid their dues as per schedule. Pass necessary Journal entries in the books of company to record the above. (8) (Hint: Allotment Received Rs.1,57,200; 1 st Call Received 95,400 and 2 nd call Rs.1,06,500) 16. A and B are partners in a firm sharing profits in the ratio of 2:1. Their Balance Sheet on 31 st March 2013 was as follows: Liabilities Rs Assets Rs Bills Payable Sundry creditors Outstanding expenses A s capital B s capital 10,000 58,000 2,000 1,80,000 1,50,000 Cash in Hand Cash at Bank Sundry Debtors Stock in Hand Plant and Machinery Building 10,000 40,000 60,000 40,000 1,50,000 4,00,000 4,00,000 C is admitted into the partnership giving her 1/4 th share in profits subject to the following terms: (i) C will bring in Rs. as his capital and Rs.60,000 as his share of goodwill for 1/4 th share in profits. (ii) Plant is to be appreciated to Rs.1,20,000 and the value of buildings is to be appreciated
by 10%. (iii) Stock is found overvalued by Rs.4,000. (iv) A Provision for bad and doubtful debts is to be created at 5% of debtors. (v) Creditors were unrecorded to the extent of Rs.1,000. Prepare Revaluation A/c, Partners Capital A/cs.. (8) (Ans. (i) Revaluation Profit 27,000; (ii) Balance of Capitals : A Rs.2,38,000; B Rs. 1,79,000; C Rs.) Part B Financial Statement Analysis 17. Under which type of activity will you classify Dividend Received by a finance company while preparing Cash Flow Statement? (1) 18. What is meant by Cash from Investing Activities? (1) 19. Give any one objective of Financial Statement Analysis. (1) 20. Give major heads and sub heads under which following items will be disclosed in the Balance Sheet as per Revised Schedule VI of the Companies Act, 1956: (3) (a) Land and Building (b) Live Stock (c) Patents (d) TradeMarks (e) Statement of P/L (Profit) (f) Debentures (Hint: (a) Fixed Assets (b) Fixed Asset (c) Intangible Assets (d) Intangible Assets (e) Reserves and Surplus (f) Long term borrowings) 21. Prepare a comparative income statement from the following information: (4) Particulars 2012 2013 Revenue from 10,00,000 12,50,000 Cost of raw material consumed Other expenses 60% of Revenue from 2% of Revenue from 70% of Revenue from 5% of Revenue from
Income tax 50% of net profit before tax 50% of net profit before tax (Ans. Percentage of net profit after tax 17.76%) 22. (a) Net Profit after interest but before tax : Rs.1,40,000; 15% Long-term debts Rs.4,00,000; Shareholders funds Rs.2,40,000; Tax rate 50%; Calculate Return on Capital Employed. (b) Opening Stock Rs.60,000; Closing Stock Rs.; Stock Turnover Ratio 8 Times; Selling Price 25% above cost. Calculate the Gross Profit Ratio. (2 + 2 = 4) (Ans. Return on Capital Employed 31.25%; Gross Profit Ratio 20%) 23. From the Balance Sheets and information given below prepare Cash Flow Statement: (6) Particulars I. Equity and Liabilities 1. Shareholders Funds (a) Share Capital (b) Reserve & Surplus (profit) 2. Non-current Liabilities Long-term Borrowings : Bank Loan 3. Current Liabilities (a) Trade Payables (Creditors) Total Note No. 31 st March 2013 (Rs.) 3,50,000 1,50,000 15,000 6,15,000 31 st March 2012 (Rs.) 3,00,000 55,000 12,500 4,67,500 II Assets 1. Non-current Assets (a) Fixed Assets: (i) Tangible Assets (Machinery) 2. Current Assets (a) Inventories (b) Trade Receivables (Debtors) (b) Cash and Cash Equivalents Total 5,50,000 35,000 16,000 14,000 6,15,000 4,00,000 30,000 20,000 17,500 4,67,500 Adjustments : During the year a piece of machinery of book value of Rs.40,000 was sold for Rs.32,500. Depreciation provided on tangible assets during the year amounted to Rs.. Prepare a Cash Flow Statement. (Ans. Cash inflow from Operating Activities Rs.3,08,000; Cash used in Investing Activities (5,15,000); Cash inflow from Financing Activities Rs.2,00,000)
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