CBSE Sample Papers for Class 12 Accountancy Solved 2016 Set 10
Part A
(Accounting for Partnership Firms and Companies)
1.X, Y and Z are equal partners in a firm. Z retires from the firm. The new profit sharing ratio between X and Y is 1 : 2. Find the gaining ratio.
2.Rajat is admitted to the partnership and he was to bring in Rs 1,00,000 as goodwill. But, he is not in a position to bring in the goodwill. The accountant has recorded an entry in the books of accounts debiting ‘goodwill account’ and crediting ‘sacrificing partners’ capital accounts’. Do you think, he has recorded the entry correctly? Give reasons for your reply.
3.Will interest paid to a partner on loan be debited to profit and loss account even if there is a loss?
4.State the name of capital which refers to that amount which is stated in the Memorandum of Association as the share capital of the company?
5.In case of dissolution of a firm, which liabilities are to be paid first?
6.The subscribed share capital of XYZ Ltd is Rs 80,00,000 divided in shares of Rs 100 each. There were no calls-in-arrears till the final call was made. The final call made was paid on 77,500 shares. The calls-in-arrears amounted to Rs 62,500. Calculate the final call per share?
7.Distinguish between over subscription and under subscription?
8.Board of Directors of Design Bank Ltd want to start a new unit at a remote area of Bihar. The new unit can be started in the form of labour intensive unit with a capital of 30,00,000 or in the form of automatic plant with capital of 80,00,000.Directors decided to start this unit in the form of labour intensive for generation of employment opportunities in the remote area. Therefore, company purchased land for 2,00,000 and machinery for 3,00,000. In consideration of these assets, company issues shares of Rs 100 each at par.Identify the two values involved in the decision of Directors of Design Bank Ltd and journalise the transactions.
9.Neelam and Ranjana entered into partnership on 1st April, 2014 without any partnership deed. They introduced capitals of Rs 5,00,000 and Rs 3,00,000 respectively. On 31st October, 2014, Neelam advanced Rs 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 31st March, 2015 showed a profit of Rs 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 a journal entry for the distribution of the profits between the partners and prepare loan account of Neelam.
10.Rihan Ltd issued 50,000 equity shares of 110 each at a premium of Rs 2 per share payable, rs 3 per share on application, t 5 per share (including premium) on allotment, Rs 2 per share on the first call and the balance on the second call. Mrs Sakshi was allotted 800 shares. Give the necessary journal entries for forfeiture in the books of the company in the following cases
Case 1. Mrs Sakshi paid application and allotment money when due but could not pay first and second calls. Her shares were forfeited.
Case 2. Mrs Sakshi could not pay the allotment and the first call money. Her shares were forfeited after the first call.
11.Anil, Sunil and Ravinder entered into partnership to start a business of manufacturing shoes on 1st January, 2015 to share profits in the ratio of 2 : 1 : 1.
They decided to allow a discount of 30% on shoes for school going children. It was provided in the deed that Ravinder’s share of profit will not be less than Rs 70,000 per annum. The profit for the year ended 31st December, 2015 were Rs 2,00,000 before allowing interest Rs 8,000 on Anil’s loan which is due for the current year.
Prepare profit and loss appropriation account for the year ended 31st December,2015. Identify the value shown in above case.
12.Following is the balance sheet of A, B and C as at 31st December, 2014
A died on 31st March, 2015. Under the partnership agreement, the executor of A was entitled to
(i)Amount standing to the credit of his captial account.
(ii)Interest on capital @ 6% per annum.
(iii)His share of goodwill Rs 12,000.
(iv)His share of profit upto the date of death is to be calculated on the behalf of previous years profit which was amounting Rs 64,000.
As executor was paid Rs 20,000 on 1st April, 2015 and balance transferred to his loan account.Pass necessary journal entries.
13.P, Q and R are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Q retires and surrenders his 5/25th share in favour of E The goodwill of the firm is valued at 2 years’ purchase of super profits based on average profits of last 3 years. The profits of the last three years are Rs 1,00,000, Rs 1,10,000 and Rs 1,20,000 respectively. The normal profits of the similar firms are Rs 60,000. Goodwill already appears in the books of the firm at Rs 1,50,000. The profit for the first year after Q’s retirement was Rs 2,00,000.Give necessary journal entries to adjust goodwill and distribute profits showing your workings.
14.Complete the following journal entries
(ii)XYZ Ltd issued 30,000, 10% debentures of Rs 100 each on 1st April, 2014. The issue was fully subscribed. According to the terms of issue, interest is payable on half-yearly basis. Pass journal entries for the year ended 31st March, 2015.
15.A, B and C are partners. They decided to dissolve their firm. Pass necessary journal entries for the following after various assets (other than cash and bank) and the third party liabilities have been transferred to realisation account.
(i)There were total debtors of Rs 76,000. A provision for doubtful debts also stood in the books at Rs 6000, Rs 12,000 debtors proved bad and rest paid the amount due.
(ii)A agreed to pay off her husband’s loan of ? 7,000 at a discount of 5%.
(iii) A machine which was not recorded in the books was taken over by B at Rs 3,000, whereas its expected value was Rs 5,000.
(iv)The firm had a debit balance of Rs 27,000 in the profit and loss account on the date of dissolution.
(v)A contingent liability (not provided for) of Rs 4000 was also discharged.
(vi)C paid realisation expenses of Rs 15,000 out of her pocket and she was to get a remuneration of Rs 18,000 for completing the dissolution process.
16.DEF Company Ltd offered for public subscription 10,000 shares of Rs 10 each at Rs 11 per share. Money was payable as follows Rs 3 on application; Rs 4 on allotment (including premium); Rs 4 on first and final call.
Applications were received for 12,000 shares and the directors made pro-rata allotment.
Akanksha, an applicant for 120 shares, could not pay the allotment and call money and Shalu, a holder of 200 shares, failed to pay the call. All these shares were forfeited.
Out of the forfeited shares, 150 shares (the whole of Akanksha shares being included) were issued at ? 8 per share. Record journal entries for the above transactions and prepare the share forfeited account.
or
Krishna Ltd issued 40,000 equity shares of Rs 10 each at a premium of Rs 2.50 per share. The amount was payable as follows
On application Rs2 per share; on allotment Rs 4.50 per share (including premium); and on call Rs 6 per share.
Owing to heavy subscription the allotment was made on pro-rata basis as follows
(i)Applicants for 20,000 shares were allotted 10,000 shares.
(ii)Applicants for 56,000 shares were allotted 14,000 shares.
(iii)Applicants for 48,000 shares were allotted 16,000 shares.
It was decided that the excess amount received on applications would be utilised on allotment and the surplus would be refunded. .
Riya, to whom 1,000 shares were allotted and who belongs to category (i), failed to pay allotment money. Her shares were forfeited after the call.
Pass the necessary journal entries in the books of Krishna Ltd for the above transactions.
17.Shiva and Anshita are partners in a firm with equal ratio.
Manav was admitted on that date fori/4 th share of profit on the following terms
(i)Manav will bring Rs 50,000 as his share of capital.
(ii)Goodwill of the firm is valued at Rs 42,000 and Manav will bring his share of goodwill in cash.
(iii)Buildings were appreciated by 20%.
(iv)All debtors were good.
(v)There was a liablity of Rs 10,800 included in creditors which was not likely to arise.
(vi)New profit sharing ratio will be 2:1:1.
(vii)Capital of Shiva and Anshita will be adjusted on the basis of Manav’s share of capital and any excess or deficiency will be adjusted by withdrawing or bringing in cash by the concerned partners as the case may be.
Prepare revaluation account, partners’ capital account and the balance sheet of the new firm.
Following is the balance sheet of Harsh, Mahima and Karan as at 31st March, 2009.
On 31st March, 2015, Karan desired to retire from the firm and the remaining partners decided to carry on the business. It was agreed to revalue the assets and re-assess the liabilities on that date, on the following basis
(i)Land and Building be appreciated by 30%.
(ii)Machinery be depreciated by 30%.
(iii)There were bad debts of Rs 35,000.
(iv)The claim on account of workmen compensation fund was estimated atRs 15,000.
(v)Goodwill of the firm was valued at Rs 28,000 and Karan’s share of goodwill was adjusted against the capital accounts of the continuing partners Harsh and Mahima who have decided to share future profits in the ratio 3 : 4 respectively.
(vi)Capital of the new firm in total will be the same as before the retirement of Karan and will be in the new profit sharing ratio of the continuing partners.
(vii)Amount due to Karan be settled by paying Rs 1,00,000 in cash and balance by transferring to his loan account which will be paid later on.
Prepare revaluation account, capital accounts of partners and balance sheet of the new firm after Karan’s retirement.
Part B
(Financial Statements Analysis)
18.What type of activity is ‘proceeds from sale of investments’, while preparing cash flow statement?
19.A company reported the following information for the past year.
Net Profit Rs 2,00,000
Depreciation expense Rs 30,000
Gain on sale of truck Rs 5,000
Proceeds from sale of truck Rs 8,000
Decrease in accounts receivable Rs 10,000
What amount will the company report as the cash provided by operating activities in the cash flow statement?
20(a)Give the major heads under which the following items will be shown in a company’s balance sheet as per Schedule III, Part I of Companies Act, 2013
(i) Debit balance of statement of profit and loss.
(ii) Advances from customer (long-term).
(iii) Deposit with custom authorities.
(iv) Provision for employee benefits.
(v)Capital reserve.
(vi)Trade marks.
(b) Name any two financial characteristics which are analysed by financial analysis.
21.From the following balance sheets of Z Ltd as at 31st March, 2014 and 2015, prepare comparative balance sheet.
22.From the following balance sheet of Kanishka Ltd, compute the debt to equity ratio.
23.From the following balance sheet of M Ltd, prepare cash flow statement
Answers
Part A
(Accounting for Partnership Firms and Companies)
1.X, Y and Z are equal partners in a firm. Z retires from the firm. The new profit
sharing ratio between X and Y is 1 : 2. Find the gaining ratio.
Ans.
2.Rajat is admitted to the partnership and he was to bring in Rs 1,00,000 as goodwill. But, he is not in a position to bring in the goodwill. The accountant has recorded an entry in the books of accounts debiting ‘goodwill account’ and crediting ‘sacrificing partners’ capital accounts’. Do you think, he has recorded the entry correctly? Give reasons for your reply.
Ans.The accountant has not recorded the entry correctly as it is not in accordance with AS-26 which requires that goodwill should be recorded in the books of accounts only if money or money’s worth has been paid for it.
3.Will interest paid to a partner on loan be debited to profit and loss account even if there is a loss?
Ans.Yes, as it is a charge on profit.
4.State the name of capital which refers to that amount which is stated in the Memorandum of Association as the share capital of the company?
Ans.Authorised share capital.
5.In case of dissolution of a firm, which liabilities are to be paid first?
Ans.The liabilities of the firm to the third parties are to be paid first.
6.The subscribed share capital of XYZ Ltd is Rs 80,00,000 divided in shares of Rs 100 each. There were no calls-in-arrears till the final call was made. The final call made was paid on 77,500 shares. The calls-in-arrears amounted to Rs 62,500. Calculate the final call per share?
Ans.
7.Distinguish between over subscription and under subscription?
Ans.
8.Board of Directors of Design Bank Ltd want to start a new unit at a remote area of Bihar. The new unit can be started in the form of labour intensive unit with a capital of 30,00,000 or in the form of automatic plant with capital of 80,00,000.Directors decided to start this unit in the form of labour intensive for generation of employment opportunities in the remote area. Therefore, company purchased land for 2,00,000 and machinery for 3,00,000. In consideration of these assets, company issues shares of Rs 100 each at par.Identify the two values involved in the decision of Directors of Design Bank Ltd and journalise the transactions.
Ans.
9.Neelam and Ranjana entered into partnership on 1st April, 2014 without any partnership deed. They introduced capitals of Rs 5,00,000 and Rs 3,00,000 respectively. On 31st October, 2014, Neelam advanced Rs 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 31st March, 2015 showed a profit of Rs 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 a journal entry for the distribution of the profits between the partners and prepare loan account of Neelam.
Ans.
10.Rihan Ltd issued 50,000 equity shares of 110 each at a premium of Rs 2 per share payable, rs 3 per share on application, t 5 per share (including premium) on allotment, Rs 2 per share on the first call and the balance on the second call. Mrs Sakshi was allotted 800 shares. Give the necessary journal entries for forfeiture in the books of the company in the following cases
Case 1. Mrs Sakshi paid application and allotment money when due but could not pay first and second calls. Her shares were forfeited.
Case 2. Mrs Sakshi could not pay the allotment and the first call money. Her shares were forfeited after the first call.
Ans.
11.Anil, Sunil and Ravinder entered into partnership to start a business of manufacturing shoes on 1st January, 2015 to share profits in the ratio of 2 : 1 : 1.
They decided to allow a discount of 30% on shoes for school going children. It was provided in the deed that Ravinder’s share of profit will not be less than Rs 70,000 per annum. The profit for the year ended 31st December, 2015 were Rs 2,00,000 before allowing interest Rs 8,000 on Anil’s loan which is due for the current year.
Prepare profit and loss appropriation account for the year ended 31st December,2015. Identify the value shown in above case.
Ans.
12.Following is the balance sheet of A, B and C as at 31st December, 2014
A died on 31st March, 2015. Under the partnership agreement, the executor of A was entitled to
(i)Amount standing to the credit of his captial account.
(ii)Interest on capital @ 6% per annum.
(iii)His share of goodwill Rs 12,000.
(iv)His share of profit upto the date of death is to be calculated on the behalf of previous years profit which was amounting Rs 64,000.
As executor was paid Rs 20,000 on 1st April, 2015 and balance transferred to his loan account.Pass necessary journal entries.
Ans.
13.P, Q and R are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Q retires and surrenders his 5/25th share in favour of E The goodwill of the firm is valued at 2 years’ purchase of super profits based on average profits of last 3 years. The profits of the last three years are Rs 1,00,000, Rs 1,10,000 and Rs 1,20,000 respectively. The normal profits of the similar firms are Rs 60,000. Goodwill already appears in the books of the firm at Rs 1,50,000. The profit for the first year after Q’s retirement was Rs 2,00,000.Give necessary journal entries to adjust goodwill and distribute profits showing your workings.
Ans.
14.Complete the following journal entries
(ii)XYZ Ltd issued 30,000, 10% debentures of? 100 each on 1st April, 2014. The issue was fully subscribed. According to the terms of issue, interest is payable on half-yearly basis. Pass journal entries for the year ended 31st March, 2015.
Ans.
15.A, B and C are partners. They decided to dissolve their firm. Pass necessary journal entries for the following after various assets (other than cash and bank) and the third party liabilities have been transferred to realisation account.
(i)There were total debtors of Rs 76,000. A provision for doubtful debts also stood in the books at Rs 6000, Rs 12,000 debtors proved bad and rest paid the amount due.
(ii)A agreed to pay off her husband’s loan of ? 7,000 at a discount of 5%.
(iii) A machine which was not recorded in the books was taken over by B at Rs 3,000, whereas its expected value was Rs 5,000.
(iv)The firm had a debit balance of Rs 27,000 in the profit and loss account on the date of dissolution.
(v)A contingent liability (not provided for) of Rs 4000 was also discharged.
(vi)C paid realisation expenses of Rs 15,000 out of her pocket and she was to get a remuneration of Rs 18,000 for completing the dissolution process.
Ans.
16.DEF Company Ltd offered for public subscription 10,000 shares of Rs 10 each at Rs 11 per share. Money was payable as follows Rs 3 on application; Rs 4 on allotment (including premium); Rs 4 on first and final call.
Applications were received for 12,000 shares and the directors made pro-rata allotment.
Akanksha, an applicant for 120 shares, could not pay the allotment and call money and Shalu, a holder of 200 shares, failed to pay the call. All these shares were forfeited.
Out of the forfeited shares, 150 shares (the whole of Akanksha shares being included) were issued at Rs 8 per share. Record journal entries for the above transactions and prepare the share forfeited account.
or
Krishna Ltd issued 40,000 equity shares of Rs 10 each at a premium of Rs 2.50 per share. The amount was payable as follows
On application Rs2 per share; on allotment Rs 4.50 per share (including premium); and on call Rs 6 per share.
Owing to heavy subscription the allotment was made on pro-rata basis as follows
(i)Applicants for 20,000 shares were allotted 10,000 shares.
(ii)Applicants for 56,000 shares were allotted 14,000 shares.
(iii)Applicants for 48,000 shares were allotted 16,000 shares.
It was decided that the excess amount received on applications would be utilised on allotment and the surplus would be refunded. .
Riya, to whom 1,000 shares were allotted and who belongs to category (i), failed to pay allotment money. Her shares were forfeited after the call.
Pass the necessary journal entries in the books of Krishna Ltd for the above transactions.
Ans.
17.Shiva and Anshita are partners in a firm with equal ratio.
Manav was admitted on that date fori/4 th share of profit on the following terms
(i)Manav will bring Rs 50,000 as his share of capital.
(ii)Goodwill of the firm is valued at Rs 42,000 and Manav will bring his share of goodwill in cash.
(iii)Buildings were appreciated by 20%.
(iv)All debtors were good.
(v)There was a liablity of Rs 10,800 included in creditors which was not likely to arise.
(vi)New profit sharing ratio will be 2:1:1.
(vii)Capital of Shiva and Anshita will be adjusted on the basis of Manav’s share of capital and any excess or deficiency will be adjusted by withdrawing or bringing in cash by the concerned partners as the case may be.
Prepare revaluation account, partners’ capital account and the balance sheet of the new firm.
Following is the balance sheet of Harsh, Mahima and Karan as at 31st March, 2009.
On 31st March, 2015, Karan desired to retire from the firm and the remaining partners decided to carry on the business. It was agreed to revalue the assets and re-assess the liabilities on that date, on the following basis
(i)Land and Building be appreciated by 30%.
(ii)Machinery be depreciated by 30%.
(iii)There were bad debts of Rs 35,000.
(iv)The claim on account of workmen compensation fund was estimated atRs 15,000.
(v)Goodwill of the firm was valued at Rs 28,000 and Karan’s share of goodwill was adjusted against the capital accounts of the continuing partners Harsh and Mahima who have decided to share future profits in the ratio 3 : 4 respectively.
(vi)Capital of the new firm in total will be the same as before the retirement of Karan and will be in the new profit sharing ratio of the continuing partners.
(vii)Amount due to Karan be settled by paying Rs 1,00,000 in cash and balance by transferring to his loan account which will be paid later on.
Prepare revaluation account, capital accounts of partners and balance sheet of the new firm after Karan’s retirement.
Ans.
Part B
(Financial Statements Analysis)
18.What type of activity is ‘proceeds from sale of investments’, while preparing cash flow statement?
Ans.Investing activity.
19.A company reported the following information for the past year.
Net Profit Rs 2,00,000
Depreciation expense Rs 30,000
Gain on sale of truck Rs 5,000
Proceeds from sale of truck Rs 8,000
Decrease in accounts receivable Rs 10,000
What amount will the company report as the cash provided by operating activities in the cash flow statement?
Ans.
20(a)Give the major heads under which the following items will be shown in a company’s balance sheet as per Schedule III, Part I of Companies Act, 2013
(i) Debit balance of statement of profit and loss.
(ii) Advances from customer (long-term).
(iii) Deposit with custom authorities.
(iv) Provision for employee benefits.
(v)Capital reserve.
(vi)Trade marks.
(b) Name any two financial characteristics which are analysed by financial analysis.
Ans.
21.From the following balance sheets of Z Ltd as at 31st March, 2014 and 2015, prepare comparative balance sheet.
Ans.
22.From the following balance sheet of Kanishka Ltd, compute the debt to equity ratio.
Ans.
23.From the following balance sheet of M Ltd, prepare cash flow statement
Ans.
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