Accountancy Outside Delhi Set 3 2019-2020 Commerce (English Medium) Class 12 Question Paper Solution

When a company plans to redeem its debentures out of profits, it should transfer minimum - % of the face value of the outstanding debenture to Debenture Redemption Reserve out of surplus available for payment of dividend.

______ Capital accounts always show a credit balance.

In the case of retirement, if full or part of the amount payable to the retiring partner still remains to be paid, and there is no agreement among the partners then the retiring partner will get:

1. Interest @ 6% p.a. on the Balance amount.
2. Share of profit earned proportionate to his amount outstanding to the total capital of the firm.
3. Interest @ 9% p.a. on the balance amount.

Which out of the following is correct?

(i)

(ii)

(iii)

Have a choice to get either (i) or (ii)

The following information has been extracted from the financial statements of a not-for-profit organization for the year ended 31^st March, 2019:

Which of the following statements is correct for the presentation of the above items in the financial statements of the not-for-profit organization?

Negative Balance of Match fund ₹ 1,000 will be shown on the liabilities side of the Balance Sheet as at 31^st March, 2019.

Opening Balance of Match Fund ₹ 5,00,000 will be shown on the liabilities side of Balance Sheet as at 1.4.2018.

Negative balance of match fund ₹ 1,000 will be shown on the expenditure side of the Income and Expenditure Account for the year ended 31.3.2019.

Both Opening Balance of Match Fund ₹ 5,00,000 will be shown on the liabilities side of Balance Sheet as at 1.4.2018 and Negative balance of match fund ₹ 1,000 will be shown on the expenditure side of the Income and Expenditure Account for the year ended 31.3.2019.

Anita and Babita were partners sharing profits and losses in the ratio of 3 : 1. Savita was admitted for `1/5`th share in the profits. Savita was unable to bring her share of goodwill premium in cash. The journal entry recorded for goodwill premium is given below:

The new profit sharing ratio of Anita, Babita and Savita, will be:

41 : 7 : 12

13 : 12 : 10

3 : 1 : 1

5 : 3 : 2

Amla, Bimla and Kavita were partners sharing profits and losses in the ratio of 4 : 3 : 1. Bimla retires and gives her share of profit to Amla for ₹ 3,600 and to Kavita for ₹ 3,000. The gaining ratio of Amla and Kavita will be ______.

4 : 5

2 : 1

6 : 5

4 : 1

Capital Reserve is created out of ______ profits.

Avya, Divya and Kavya were equal partners. They decided to change the profit-sharing ratio to 4 : 3 : 2. For this purpose, the goodwill of the firm was valued at ₹ 90,000. The journal entry for the treatment of goodwill on change in profit sharing ratio will be:

Mohit, Shobhit and Rohit are partners sharing profits and losses in the ratio 2 : 1 : 1. Rohit is guaranteed a profit of ₹ 14,000. The firm incurred a profit of ₹ 20,000 during the year. Calculate the amount of deficiency borne by Mohit and Shobhit.

Which of the following is not a purpose for which the securities premium amount can be used?

Issuing fully paid bonus shares to shareholders.

Issuing partly paid up bonus shares to shareholders.

Writing off preliminary expenses of the company.

In purchasing its own shares (buy back).

Tangible assets of the firm are ₹ 14,00,000 and outside liabilities are ₹ 4,00,000. Profit of the firm is ₹ 1,50,000 and normal rate of return is 10%. The amount of capital employed will be ______.

₹ 10,00,000

₹ 1,00,000

₹ 50,000

₹ 20,000

Income and expenditure account records ______.

Receipts and Payments of Revenue and Capital nature both.

Income and Expenditure of Revenue nature only.

Expenditure of Capital nature only.

Receipts of Revenue nature only.

When the business of the firm becomes illegal, the way of dissolution of the firm is ______.

On 31^st March 2018 SS Ltd. had 50,000 10% debentures of ₹ 100 each outstanding. These debentures were due for redemption on 31^st March, 2019. Debenture Redemption Reserve has a balance of ₹ 5,00,000 on 31^st March, 2018. 

Ignoring the entries for interest, pass the necessary journal entries for redemption of debentures.

X Ltd. has 4,000 12% debentures of ₹ 100 each on 1^st April, 2018. According to the terms of issue interest on debentures is payable half yearly on 31^st September and 31^st March and the rate of tax deducted at source is 10%.

Pass necessary journal entries for interest on debentures for the year 2018-19.

From the following information, calculate the amount of medicines that will be debited to the Income and Expenditure Account of Sarojini Hospital for the year ended 31-3-2019.

Additional Information:

During the year ₹ 17,00,000 were paid to creditors. Medicines ₹ 9,33,000 were purchased for cash.

A and B are partners sharing profits and losses in the ratio of 3 : 2. Their capital on 31^st March, 2018 after all adjustments stood at ₹ 1,65,500 and ₹ 1,27,600 respectively. Profits amounting to ₹ 50,000 for the year 2017-18 were distributed after allowing interest on drawings @ 12% p.a. During the year A withdrew ₹ 15,000 at the beginning of every quarter and B withdrew ₹ 40,000 during the year Partnership deed is silent on interest on drawings but provides for interest on Capital @ 5% p.a. Interest on Capital has not been provided.

Showing your working clearly, pass the necessary adjustment entry to rectify the above errors.

Arun, Shobha and Yuvraj were partners in a firm. On 1^st April, 2018 their Fixed Capitals stood at ₹ 1,00,000, ₹ 50,000 and ₹ 50,000 respectively.

As per the provisions of partnership deed.

1. Partners were entitled to an annual salary of ₹ 20,000 each.
2. Interest on Capital ₹ 10% p.a. was to be provided.
3. Profits were to be shared in the ratio 3: 1 : 1. Net profit for the year ended 31^st March, 2019 was ₹ 90,000.

Passs Journal Entries for the above in the books of the firm.

From the following Receipts and Payments Account of Jai Bharat Music Club for the year ended 31- 03-2019 and the additional information, prepare Income and Expenditure Account for the year ended 31-3-2019.

Additional Information:

1. The Club had 300 members each paying an annual subscription of ₹ 500.
2. Musical instruments were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on musical instruments.

Satnam, Harnam and Gurunam were partners in a firm sharing profits and losses in the ratio of 5 : 2 : 3. The firm closes its books on 31^st March every year. On 1-7-2019 Harnam died. On his death goodwill of the firm was valued on the basis of average profits of last four years. The profits of the last four years were as follows:

His share in the profits of the firm till the date of his death were ₹ 57,000. The total amount payable to Harnam’s executors was ₹ 3,40,000. It was paid on 15-7-2019.

Pass necessary journal entries for the above transactions in the books of the firm.

Harish and Gopal were partners in a firm sharing profits in the ratio of 3: 2. On 31^st March, 2018, their Balance Sheet was as follows:

On the above date, the firm was dissolved. The various assets were realized and liabilities were settled as under:

1. Gopal agreed to pay his wife’s loan.
2. Leasehold premises realised ₹ 1,50,000 and Debtors ₹ 12,000 less.
3. Half of the creditors agreed to accept furniture of the firm as full settlement of their claim and remaining half agreed to accept 10% less.
4. 50% stock was taken over by Harish on payment by cheque of ₹ 90,000 and remaining stock was sold for ₹ 94,000.
5. Realization expenses ₹ 10,000 were paid by Gopal on behalf of the firm.

Prepare Realization Account.

Sudha, Naresh and Geeta were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Their fixed capitals were ₹ 6,00,000, ₹ 4,00,000 and ₹ 2,00,000 respectively. Besides her capital Geeta had given a loan of 75,000 to the firm. There partnership deed provided for the following:

1. Interest on capital @ 9% p.a.
2. Interest on partner’s drawings @ 12% p.a.
3. Salary to Sudha ₹ 30,000 per month and to Naresh ₹ 40,000 per quarter.
4. Interest on Geeta’s loan @ 9% p.a.

During the year Sudha withdrew ₹ 50,000 at the end of each quarter. Naresh withdrew ₹ 50,000 in the beginning of each half year and Geeta withdrew ₹ 70,000 at the end of each half year.

The profit of the firm for the year ended 31.3.2019 before allowing interest on Geeta’s loan was ₹ 7,06,750. Prepare Profit and Loss Appropriation Account.

Pass necessary journal entries in the books of New India Ltd. for the following transactions:

1. Issued 500, 9% debentures of ₹ 100 each at a discount of 6% redeemable at a premium of 5%.
2. Issued ₹ 15,00,000, 9% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%.
3. Issued ₹ 75,00,000, 9% debentures of ₹ 100 each at par redeemable at a premium of 5%.

Zee Ltd. invited application for issuing 3,40,000 equity shares of ₹ 10 each at a premium of ₹ 5 per share. The amount was payable as follows:

On application ₹ 4 per share (including ₹ 2 premium)

On allotment ₹ 5 per share (including ₹ 2 premium)

On First and Final call-Balance 

Applications for 6,00,000 shares were received. Application for 1,80,000 shares were rejected and application money was refunded. Shares were allotted on prorate basis to the remaining applicants. Excess money received with applications was adjusted towards sum due on allotment.

Yamini who had applied for 2100 shares failed to pay allotment money and her shares were forfeited immediately. Vani to whom 6800 shares were allotted paid her entire share money due on allotment.

Afterwards First and Final call was made and was duly received. Out of the forfeited shares 850 shares were reissued to Vansh at ₹ 8 per share fully paid up.

Pass necessary journal entries for the above transactions in the books of the company by opening calls-in-arrears and calls-in-advance accounts.

K.N. Ltd. invited applications for issuing 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The amount was payable as follows:

On Application and Allotment ₹ 3 per share.

On First Call ₹ 4 per share

On Second and Final Call Balance (including premium).

Applications for 8,00,000 shares were received. Applications for 50,000 shares were rejected and the application money was refunded. The shares were allotted to the remaining applicants as follows:

Category I: Those who had applied for 4,00,000 share were allotted 3,00,000 shares on pro-rata basis.

Category II: The remaining applicants were allotted the remaining shares on pro-rata basis.

Excess application money received with applications was adjusted towards sums due on first call. Rakesh to whom 6,000 shares were allotted failed to pay the first call money. belonged to category I. His shares were forfeited. The forfeited shares were re-issued at ₹ 13 per share fully paid up. The second call was made afterwards and was duly received.

Pass necessary journal entries for the above transactions in the books of K.N. Ltd.

Raman and Aman were partners in a firm and were sharing profits in 3 : 1 ratio. On 31.3.2019 their balance sheet was as follows:

On the above date, Suman was admitted as a new partner for 1/5^th share in the profits on the following conditions:

1. Suman will bring ₹ 2,00,000 as her capital and necessary amount for her share of goodwill premium. The goodwill of the firm on Suman’s admission was valued at ₹ 1,00,000.
2. Outstanding expenses will be paid off. ₹ 5,000 will be written off as bad debts and a provision of 5% for bad debts on debtors was to maintained.
3. The liability towards workmen compensation was estimated at ₹ 60,000.
4. Machinery was to be depreciated by ₹ 18,000 and Land and Building was to be depreciated by ₹ 54,000.

Pass necessary journal entries for the above transactions in the books of the firm.

A, B and C were partners in a firm. Their Balance Sheet as at 31^st March, 2019 was a follows:

B retired on 1^st April, 2019. A and C decided to share profits in the ratio of 2 : 1. The following terms were agreed upon:

1. Goodwill of the firm was valued at ₹ 30,000.
2. Bad-debts ₹ 4,000 were written off. The provision for doubtful debts was to be maintained 10% on debtors.
3. Land and Building was to be increased to ₹ 1,32,000.
4. Furniture was sold for ₹ 20,000 and the payment was received by cheque.
5. Liability towards Workmen Compensation was estimated at ₹ 1,500.
6. B was to be paid ₹ 20,000 through a cheque and the balance was transferred to his loan account.

Prepare Revaluation Account, Partner’s Capital Accounts and Bank Account.

The quick ratio of company is 1 : 0·75. Will purchase of goods for cash ₹ 70,000 increase, decrease or not change the ratio? Give reason in support of your answer.

Employee benefit expenses include ______.

bonus

depreciation

income tax

Which of the following is not a limitation of the analysis of financial statements?

Window dressing

Price level changes ignored

Subjectivity

Intra firm comparison possible

Under which heading/sub-heading, ‘Calls-in-arrears’ will be presented in the Balance Sheet of a Company as per Schedule III Part I of the Companies Act, 2013.

Interest received in cash from loans and advance is considered as ______ activity while preparing cash flow statement.

What is meant by ‘Cash Equivalents’?

While preparing cash flow statement, will ‘Cash withdrawn from bank’ result into inflow outflow or no flow of cash? Give reason in support of your answer.

From the following information obtained from the books of Kamal Ltd.,
Calculate:

1. Gross Profit Ratio
2. Net Profit Ratio

Fill in the amounts left blank in the following Common Size Statement of Profit and Loss for the year ended 31^st March, 2019.

From the following Statement of Profit and Loss of Skills India Ltd. for the year ended 31^st March, 2018 and 2019, prepare a Comparative Statement of Profit and Loss.

Tax Rate 30%.

From the following Balance Sheet of Gopal Ltd. and the additional information as at 31^st March, 2019, prepare a Cash Flow statement when cash flows from financing activities is ₹ 2,32,000.

Notes to Accounts:

Additional Information:

Tax ₹ 1,50,000 was paid during the year.