# Accountancy Delhi Set 2 2014-2015 CBSE (Commerce) Class 12 Question Paper Solution

Accountancy [Delhi Set 2]
Date: March 2015

[1]1

Joy Ltd. issued 1,00,000 equity shares of Rs 10 each. The amount was payable as follows:

On application - Rs 3 per share

On allotment - Rs 4 per share

On 1st and final call - balance

Applications for 95,000 shares were received and shares were allotted to all the applicants. Sonam to whom 500 shares were allotted failed to pay allotment money and Gautam paid his entire amount due including the amount due on first and final call on the 750 shares allotted to him along with allotment.

The amount received on allotment was

(a) Rs 3,80,000
(b) Rs 3,78,000
(c) Rs 3,80,250
(d) Rs 4,00,250

Concept: Pro-rata Allotment
Chapter: [0.032] Accounting for Companies
[1]2

Give the meaning of forfeiture of shares

Concept: Accounting Treatment of Forfeiture and Re-issue of Share
Chapter: [0.021] Accounting for Share Capital [0.032] Accounting for Companies
[1]3

Kumar, Verma and Naresh were partners in a firm sharing profit & loss in the ratio of 3:2:2. On 23rd January 2015 Verma died. Verma's share of profit till the date of his death was calculated at Rs 2,350. Pass necessary journal entry for the same in the books of the firm.

Concept: Retirement and Death of a Partner - Effect of Retirement I Death of a Partner on Change in Profit Sharing Ratio
Chapter: [0.031] Accounting for Partnership Firms
[1]4

On the retirement of Hari from the firm of 'Hari, Ram and Sharma' the balance-sheet showed a debit balance of Rs 12,000 in the profit and loss account. For calculating the amount payable to Hari this the balance will be transferred

(a) to the credit of the capital accounts of Hari, Ram and Sharma equally
(b) to the debit of the capital accounts of Hari, Ram and Sharma equally
(c) to the debit of the capital accounts of Ram and Sharma equally
(d) to the credit of the capital accounts of Ram and Sharma equally

Concept: Retirement Or Death of a Partner - Adjustment of Accumulated Profits and Reserves
Chapter: [0.031] Accounting for Partnership Firms
[1]5

A. B, C and D were partners in a firm sharing profits in the ratio of 4: 3: 2: 1. On 1-1-2015 they admitted E as a new partner for 1/10 share in the profits. E brought Rs 10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at Rs 1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer.

Concept: Change in the Profit Sharing Ratio Among the Existing Partners
Chapter: [0.031] Accounting for Partnership Firms
[1]6

In the absence of partnership deed the profits of a firm are divided among the partners :

(a) In the ratio of capital

(b) Equally

(c) In the ratio of time devoted for the firm's business

(d) According to the managerial abilities of the partners

Concept: Meaning and Definitions of Partnership and Partnership Deed
Chapter: [0.031] Accounting for Partnership Firms
[3]7

State any three purposes other than 'issue of bonus shares' for which securities premium can be utilized.

Concept: Issue of Shares for Consideration Other than Cash
Chapter: [0.032] Accounting for Companies
[3]8

On 1-4-2013 Jay and Vijay, entered into the partnership for supplying laboratory equipment to
government schools situated in remote and backward areas. They contributed capitals of 80,000 and Rs 50,000 respectively and agreed to share the profits in the ratio 3: 2. The partnership deed provided that interest on capital shall be allowed at 9% per annum. During the year the firm earned a profit of Rs 7,800. Showing your calculations clearly, prepare Profit and Loss Appropriation Account of Jay and Vijay for the year ended 31-3-2014

Concept: Preparation of Profit and Loss Appropriation Account
Chapter: [0.031] Accounting for Partnership Firms
[3]9

Scooters India Ltd' is registered with an authorized capital of Rs 50,00,000, divided into 5,00,000 shares of Rs 10 each. The company issued 1, 00,000 shares for subscriptions to the public at par. The amount was payable as follows :

On application and allotment - Rs 3 per share
On 1st call - Rs 2 per share
On 2nd and final call - Rs 5 per share

The issue was fully subscribed. All calls were made and were duly received except 2nd and the final call on 1,000 shares held by Rohan. His shares were forfeited and afterwards re-issued at Rs 8 per share as fully paid up. Present 'Share Capital' in the Balance Sheet of the company as per Schedule VI of the Companies Act, 1956. Also, prepare Notes to accounts for the same.

Concept: Accounting for Share Capital
Chapter: [0.032] Accounting for Companies
[3]10

'Sangam Woolens Ltd.', Ludhiana, are the manufacturers and exporters of woollen garments. The company decided to distribute free of cost woollen garments to 10 villages of Lahaul and Spiti District of Himachal Pradesh. The company also decided to employ 50 young persons from this village in its newly established factory. The company issued 40,000 equity shares of Rs 10 each and 1,000 9% debentures of Rs 100 each to the vendors for the purchase of machinery of Rs 5,00,000. Pass necessary Journal Entries. Also, identify anyone value that the company wants to communicate to the society.

Concept: Accounting for Share Capital
Chapter: [0.032] Accounting for Companies
[4]11

Vikas, Gagan and Momita were partners in a firm sharing profits in the ratio of 2: 2: 1. The firm closes its books on 31st March every year. On 30th September 2014 Momita died. According to the provisions of partnership deed the legal representatives of a deceased partner are entitled to the following in the event of his/her death:

1) Capital as per the last Balance Sheet.

2) Interest on capital at 6% p.a. till the date of her death.

3) Her share of profit to the date of death calculated on the basis of average profits of last four years.

4) Her share of goodwill to be determined on the basis of three years purchase of the average
profits of last four years. The profits of last four years were:

 Years Profit (Rs) 2010 – 2011 30,000 2011 – 2012 50,000 2012 – 2013 40,000 2013 – 2014 60,000

The balance in Momita's capital account on 31-3-2014 was Rs 60,000 and she had withdrawn Rs 10,000 till the date of her death. Interest on her drawings was Rs 300. Prepare Momita's Capital Account to be presented to her executors.

Concept: Preparation of Deceased Partner's Capital Account, Executor's Account
Chapter: [0.031] Accounting for Partnership Firms
[4]12

Kumar, Gupta and Kavita were partners in the firm sharing profits and losses equally. The firm was engaged in the storage and distribution of canned juice and its godowns were located at three different places in the city. Each godown was being managed individually by Kumar, Gupta and Kavita. Because of increase in business activities at the godown managed by Gupta, he had devoted more time. Gupta demanded that his share in the profits of the firm be increased, to which Kumar and Kavita agreed. The new profit sharing ratio was agreed to be 1: 2: 1. For this purpose, the goodwill of the firm was valued at two years purchase of the average profits of last five years. The profits of the last five years were as follows :

 Years Profit Rs I 4,00,000 II 4,80,000 II 7,33,000 IV Loss 33,000 V 2,20,000

You are required to:

1) Calculate the goodwill of the firm

2) Pass necessary Journal Entry for the treatment of goodwill on the change in profit sharing ratio of Kumar, Gupta and Kavita.

Concept: Concept of Goodwill
Chapter: [0.013000000000000001] Reconstitution of a Partnership Firm – Admission of a Partner [0.013999999999999999] Reconstitution of a Partnership Firm – Retirement/Death of a Partner [0.031] Accounting for Partnership Firms
[6]13

Bharat Ltd. had an authorized capital of Rs 20,00,000 divided into 2,00,000 equity shares of Rs  10 each. The company issued 1,00,000 shares and the dividend paid per share was Rs 2 for the year ended 31-3-2008. The management of the company decided to export its products to the neighbouring countries Nepal, Bhutan, Sri Lanka and Bangladesh. To meet the requirement of additional funds the financial manager of the company put up the following three alternatives before its Board of Directors :

1) Issue 54,000 equity shares.

2) Obtain a loan from Import and Export Bank of India. The loan was available at 12% per annum interest.

3) To issue 9% Debentures at a discount of 10%.

After comparing the available alternatives the company decided on 1-4-2008 to issue 6,000 9% debentures of Rs 100 each at a discount of 10%. These debentures were redeemable in four installments starting from the end of the third year. The amount of debentures to be redeemed at the end of the third, fourth, fifth and sixth year was as follows:

 Years Profit (Rs) III 1,00,000 IV 1,00,000 V 2,00,000 VI 2,00,000

Prepare 9% Debentures Account for the year 2008-09 to 2013-14

Concept: Meaning of Redemption of Debentures
Chapter: [0.032] Accounting for Companies
[6]14

Bora, Singh and Ibrahim were partners in a firm sharing profits in the ratio of 5: 3: 1. On 2-3-2015 their firm was dissolved. The assets were realized and the liabilities were paid off. Given below are the Realisation Account, Partners' Capital Account and Bank Account of the firm. The accountant of the firm left a few amounts unposted in these accounts. You are required to complete these accounts by posting the correct amounts.

 Realisation Account Dr. Cr. Particular Amount Rs Particular Amount Rs To Stock  To Debtors To Plant and Machinery To Bank    Sundry Creditors   16,000    Bills Payable            3,400    Mortgage Loan      15,000  To Bank (Outstanding repairs) To Bank (Exp.) 10,000 25,000 40,000       34,400 400 620 By Provision of bad debts By Sundry Creditors By Bills Payables By Mortgage Loan By Bank – Assets realized       Stock                     6,700       Debtors                12,500       Plant & Machinery   36,000 By Bank – unrecorded unrecorded assets realized By ______________________ 5,000 16,600 3,400 15,000       55,200 6,220 ------ 1,10,420 1,10,420

 Capital Account Dr. Cr. Particulars Bora Rs Singh Rs Ibrahim Rs Particulars Bora Rs Singh Rs Ibrahim Rs - - - - - - - - By Balance b/d By General Reserve 22,000 2,500 18,000 1,500 10,000 500 24,500 19,500 10,500 24,500 19,500 10,500

 Bank Account Particular Amount Rs Particular Rs Amount Rs To Balance b/d To Realisation _______________ 19,500 55,200 ------- By Realisation (liabilities) By Realisation (Unrecorded liabilities) By __________ By __________ 34,400 400 80,920 80,920
Concept: Preparation of Deceased Partner's Capital Account, Executor's Account
Chapter: [0.031] Accounting for Partnership Firms
[6]15

On 1-4-2010 Sahil and Charu entered into a partnership for sharing profits in the ratio of 4: 3. They admitted Tanu as a new partner on 1-4-2012 for 1/5 th share which she acquired equally from Sahil and Charu. Sahil, Charu and Tanu earned profits at a higher rate than the normal rate of return for the year ended 31-3-2013. Therefore, they decided to expand their business. To meet the requirements of additional capital they admitted Puneet as a new partner on 1-4-2013 for 1/7 th share in profits which he acquired from Sahil and Charu in 7: 3 ratio.

Calculate:

1) New profit sharing ratio of Sahil, Charu and Tanu for the year 2012-13.

2) New profit sharing ratio of Sahil, Charu, Tanu and Puneet on Puneet's admission.

Concept: Admission of a Partner - Sacrifice Ratio and New Ratio
Chapter: [0.031] Accounting for Partnership Firms
[8]16 | Attempt Any One
[8]16.1

'Amrit Dhara Ltd.' invited applications for issuing 80,000 equity shares of Rs 10 each. The amount was payable as follows:

On application and allotment - Rs 2 per share
On the first call - Rs 4 per share
On the second and final call the balance

Applications for 1,00,000 shares were received. Shares were allotted on pro-rata basis to all the
applicants. Excess money received with applications was adjusted towards sums due on the first call. Manohar who had applied for 2,000 shares failed to pay the first call and his shares were immediately forfeited. Afterwards, a second and final call was made. Mahan who was allotted 2,400 shares failed to pay the second and final call. His shares were also forfeited. All the forfeited shares were re-issued at Rs 9 per share as fully paid up.

Pass necessary Journal Entries in the books of the company for the above transactions

Concept: Accounting Treatment of Forfeiture and Re-issue of Share
Chapter: [0.021] Accounting for Share Capital [0.032] Accounting for Companies
[8]16.2

'Sulabh Ltd.' invited applications for issuing 1,50,000 equity shares of Rs 10 each at a premium of  Rs 3 per share. The amount was payable as follow

On application - Rs 2 per share
On allotment - Rs 6 per share (including premium)
On first and final call - the balance

Applications for 2,00,000 shares were received and shares were allotted on pro-rata basis to all the applicants. Excess money received with applications was adjusted towards sums due on allotment. Suman who had applied for 2,000 shares failed to pay the allotment and call money. Raman failed to pay the first and final call on his 500 shares. Shares of both Suman and Raman were forfeited after the final call was made. The forfeited shares were re-issued for Rs 12 per share as fully paid up.

Pass necessary Journal Entries for the above transactions in the books of the company.

Concept: Accounting Treatment of Forfeiture and Re-issue of Share
Chapter: [0.021] Accounting for Share Capital [0.032] Accounting for Companies
[8]17 | Attempt Any One
[8]17.1

Charu and Harsha were partners in a firm sharing profits in the ratio of 3:2. On 1-4-2014 their Balance Sheet was as follows :

 Balance Sheet Liabilities Amount Rs Assets Amount Rs Creditors General Reserve Workmen Compensation Fund Investment Fluctuation Fund Provision for bad debts Capitals    Charu    30,000    Harsha   20,000 17,000 4,000 9,000 11,000 2,000     50,000 Cash Debtors Investments Plant Land and building 6,000 15,000 20,000 14,000 38,000 93,000 93,000

On the above date, Vaishali was admitted for 1/4th share in the profits of the firm on the following terms:

(a) Vaishali will bring Rs 20,000 for her capital and Rs 4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs 15,000.
(d) There was a liability of Rs 6,000 for workmen compensation.
(e) Capital accounts of Charu and Marsha are to be adjusted on the basis of Vaishali's capital by
opening current accounts.

Prepare Revaluation Account and Partners' Capital Accounts

Concept: Preparation of Revaluation Account and Balance Sheet
Chapter: [0.031] Accounting for Partnership Firms
[8]17.2

Amit, Balan and Chander were partners in a firm sharing profits in the proportion of 1/2, 1/3 and 1/6`respectively. Chander retired on 1-4-2014. The Balance Sheet of the firm on the date of Chander's retirement was as follows:

 Balance Sheet of Amit, Balan and Chander as on 1-4-2014 Liabilities Amount Rs Assets Amount Rs Sundry Creditors Provident Fund General Reserve Capitals     Amit        40,000     Balan       36,500    Chander    2,000 12,600 3,000 9,000       96,500 Bank Debtors            30,000 Less: Provision    1,000 Stock Investments Patents Machinery 4,100   29,000 25,000 10,000 5,000 48,000 1,21,100 1,21,100

It was agreed that:

(a) Goodwill will be valued at Rs 27,000.
(b) Depreciation of 10% was to be provided on machinery.
(c) Patents were to be reduced by 20%.
(d) Liability on account of Provident Fund was estimated at Rs 2,400.
(e) Chander took over investments for  Rs 15,800.
(f) Amit and Balan decided to adjust their capitals in a proportion of their profit sharing ratio by
opening current accounts.

Prepare Revaluation Account and Partners' Capital Accounts on Chander's retirement.

Concept: Preparation of Revaluation Account and Balance Sheet
Chapter: [0.031] Accounting for Partnership Firms
[1]18

Which of the following transactions will result in 'Flow of Cash’?

(a) An issue of equity shares of Rs 1, 00,000.
(b) Purchase of machinery of  Rs 1,75,000.
(c) Redemption of 9% debentures Rs  3,50,000.
(d) Cash deposited into bank Rs 15,000.

Concept: Concept of Cash Flow Statement
Chapter: [0.026000000000000002] Cash Flow Statement
[1]19

While preparing the Cash Flow Statement of Alka Ltd. 'dividend paid' was shown as an operating
activity by the accountant of the company. Was he correct in doing so? Give reason.

Concept: Concept of Cash Flow Statement
Chapter: [0.026000000000000002] Cash Flow Statement
[4]20

Under which major headings the following items will be presented in the Balance sheet of a company as per Schedule VI Part I of the Companies Act, 1956?

(2) Balances with banks

(3) Term loans from the bank

(4) Goods-in-transit

(5) Loans repayable on demand

(6) Computer software

(7) Unpaid dividends and

(8) Vehicles

Concept: Admission of a Partner - Preparation of Balance Sheet
Chapter: [0.031] Accounting for Partnership Firms
[4]21

The motto of Yash Ltd., an advertising company is 'Service with Dignity'. Its management and workforce is hard-working, honest and motivated. The net profit of the company doubled during the year ended 31-3-2014. Encouraged by its performance company decided to give one-month extra salary to all its employees. Following is the Comparative Statement of Profit and Loss of the company for the years ended 31st March 2013 and 2014.

 Yash LtdComparative Statement of Profit and Loss Particulars NoteNo. 2012-13 Rs 2013-14 Rs AbsoluteChange Rs %Change Revenue from operations Less Employee benefit expenses Profit before tax Tax Rate 25% Profit after tax 10,00,000 6,00,000 4,00,000 1,00,000 3,00,000 15,00,000 7,00,000 8,00,000 2,00,000 6,00,000 5,00,000 1,00,000 4,00,000 1,00,000 3,00,000 50 16.67 100 100 100

1) Calculate net Profit Ratio for the years ending 31st March, 2013 and 2014.

2) Identify any two values which Yash Ltd. is trying to propagate

Concept: Profitability Ratios - Net Profit Ratio
Chapter: [0.040999999999999995] Analysis of Financial Statements
[4]22

From the following information related to Naveen Ltd. calculate

(1) Return on Investment and

(2) Total Assets to Debt Ratio.

Information : Fixed Assets Rs 75,00,000; Current Assets Rs  40,00,000; Current Liabilities Rs  27,00,000; 12% Debentures Rs 80,00,000 and Net Profit before Interest, Tax and Dividend Rs 14,50,000.

Concept: Profitability Ratios - Return on Investment
Chapter: [0.040999999999999995] Analysis of Financial Statements
[6]23

Following is the Balance Sheets of Thermal Power Ltd. as at 31-3-2014

 Thermal Power LtdBalance Sheet as at 31-3-2014 Particulars NoteNo. 2013-2014 Rs 2012-2013 Rs I. Equity and Liabilities    1. Shareholder’s Funds       a. Share Capital       b. Reserve and Surplus    2. Non - Current Liabilities       a. Long-term borrowings    3. Current Liabilities       a. Trade Payables       b. Short-Term Provisions 1 12,00,000 3,00,000   2,40,000   1,79,000 50,000 11,00,000 2,00,000   1,70,000   2,04,000 77,000 Total 19,69,000 17,51,000 II. Assets    1. Non – Current Assets       a) Fixed Assets          (i) Tangible assets          (ii) Intangible        b) Non – Current Investments    2. Current Assets       a) Current Investments       b) Inventories       c) Trade Receivables       d)Cash and Cash 2 3 10,70,000 40,000     2,40,000 1,29,000 1,70,000 3,20,000 8,50,000 1,12,000     1,50,000 1,21,000 1,43,000 3,75,000 Total 19,69,000 17,51,000

Notes to Accounts

 Note No Particulars 31-3-2015 31-3-2014 1   2     3 Reserve and Surplus (Surplus i.e. Balance in Statement of Profit and Loss) Tangible Assets Machinery     Less: Accumulated Depreciation Intangible Assets Goodwill 3,00,000   12,70,000 (2,00,000)   40,000 2,00,000   10,00,000 (1,50,000)   1,12,000

During the year a piece of machinery, costing Rs 24,000 on which accumulated depreciation was Rs 16,000, was sold for Rs 6,000.

Prepare Cash Flow Statement

Concept: Concept of Cash Flow Statement
Chapter: [0.026000000000000002] Cash Flow Statement

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