# Accountancy 67/1/2 2018-2019 CBSE (Commerce) Class 12 Question Paper Solution

Accountancy [67/1/2]
Date & Time: 15th March 2019, 10:30 am
Duration: 2h30m
• This question paper contains two parts A and B.
• Part A is compulsory for all.
• Part B has two options: Analysis of Financial Statements and Computerized Accounting.
• Attempt only one option of Part B.
• All parts of a question should be attempted at one place.

SECTION - A
[1] 1
[1] 1.1

What is meant by 'Gaining Ratio' on the retirement of a partner?

Concept: Retirement and Death of a Partner - Gaining Ratio
Chapter: [0.013999999999999999] Reconstitution of a Partnership Firm – Retirement/Death of a Partner
OR
[1] 1.2

P, Q, and R were partners in a firm. On 31st March 2018 R retired. The amount payable to R ₹ 2,17,000 was transferred to his loan account. R agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. State the rate at which interest will be paid to R.

Concept: The Indian Partnership Act 1932
Chapter: [0.031] Accounting for Partnership Firms
[1] 2

Atul and Neera were partners in firm sharing profits in the ratio of 3: 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ₹ 2,00,000. Mitali brings her share of a goodwill premium of ₹ 20,000 in cash, which is entirely credited to Atul's Capital Account. Calculate the new profit sharing ratio.

Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio
Chapter: [0.013000000000000001] Reconstitution of a Partnership Firm – Admission of a Partner [0.013999999999999999] Reconstitution of a Partnership Firm – Retirement/Death of a Partner
[1] 3

Chhavi and Neha were partners in firm sharing profits and losses equally. Chhavi withdrew a fixed amount at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. At the end of the year, interest on Chhavi's drawings amounted to ₹ 900. Pass necessary journal entry for charging interest on drawings.

Concept: Distribution of Profit Among Partners
Chapter: [0.012] Accounting for Partnership : Basic Concepts
[1] 4
[1] 4.1

What is meant by 'Issued Capital'?

Concept: Maintenance of Capital Accounts of Partners
Chapter: [0.012] Accounting for Partnership : Basic Concepts
OR
[1] 4.2

What is meant by 'Employees Stock Option Plan'?

Concept: Employee Stock Option Plan (ESOP)
Chapter: [0.032] Accounting for Companies
[1] 5
[1] 5.1

How are specific donations treated while preparing final accounts of a 'Not-For-Profit Organisation'?

Concept: Accounting Records of "Not for Profit" Organisations
Chapter: [0.011000000000000001] Accounting for Not-for-Profit Organisation
OR
[1] 5.2

State the basis of accounting of preparing the 'Income and Expenditure Account' of a 'Not-For-Profit Organisation.

Concept: Preparation of Income and Expenditure Account
Chapter: [0.011000000000000001] Accounting for Not-for-Profit Organisation
[1] 6

State any two situations when a partnership firm can be compulsorily dissolved.

Concept: Dissolution of Partnership Firm
Chapter: [0.015] Dissolution of Partnership Firm [0.015] Dissolution of Partnership Firm [0.031] Accounting for Partnership Firms
[3] 7
[3] 7.1

Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of ₹ 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures. Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants. Pass the necessary journal entries for the above transactions in the books of Garvit Ltd.

Concept: Issue of Debentures
Chapter: [0.022000000000000002] Issue and Redemption of Debentures
OR
[3] 7.2

On 1st April 2015, P Ltd. Issued 6,000 12% Debentures of ₹ 100 each at par redeemable at a premium of 7%. The Debentures were to be redeemed at the end of the third year. Prepare Loss on the issue of 12% Debentures Account.

Concept: Writing off Discount/Loss on Issue of Debentures
Chapter: [0.022000000000000002] Issue and Redemption of Debentures
[3] 8

A firm earned an average profit of  ₹ 3,00,000 during the last few years. The normal rate of return of the industry is 15%. The assets of the business were ₹ 17,00,000 and its liabilities were ₹ 2,00,000. Calculate the goodwill of the firm by capitalisation of average profits.

Concept: Methods of Valuation of Goodwill
Chapter: [0.013000000000000001] Reconstitution of a Partnership Firm – Admission of a Partner
[3] 9

Present the following information for the year ended 31st March 2018 in the financial statements of a not-for-profit organisation.

 Particulars (₹) Opening balance of Match Fund 5,00,000 Sale of Match tickets 3,75,000 Donations for Match Fund received during the year 1,24,000 Match expenses 10,00,000
Concept: Preparation of Income and Expenditure Account
Chapter: [0.011000000000000001] Accounting for Not-for-Profit Organisation
[3] 10

Krishna Ltd. had outstanding 20,000, 9% debentures of ₹ 100 each on 1st April 2014. These debentures were redeemable at a premium of 10% in two equal installments starting from 31st March 2018. The company had a balance of ₹ 4,00,000 in Debenture Redemption Reserve on 31st March 2017. Pass necessary journal entries for the redemption of debentures in the books of Krishna Ltd. for the year ended 31st March 2018.

Concept: Redemption of Debentures
Chapter: [0.022000000000000002] Issue and Redemption of Debentures
[4] 11

Gaurav, Saurabh, and Vaibhav were partners in firm sharing profits and losses in the ratio of 2: 2: 1. They decided to dissolve the firm on 31st March 2018. After transferring Sundry assets (other than cash in hand and cash at Bank) and third-party liabilities to realisation account, the assets were realized and liabilities were paid off as follows:

(i) A machinery with a book value of ₹ 6,00,000 was taken over by Gaurav at 50% and stock worth ₹ 5,000 was taken over by a creditor of ₹ 9,000 in full settlement of his claim.

(ii) Land and building (book value ₹ 3,00,000) were sold for ₹ 4,00,000 through a broker who charged 2% commission.

(iii) The remaining creditors were paid ₹ 76,000 in full settlement of their claim and the remaining assets were taken over by Vaibhav for ₹ 17,000.

(iv) Bank loan of ₹ 3,00,000 was paid along with interest of ₹ 21,000.

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

Concept: Dissolution of Partnership Firm
Chapter: [0.015] Dissolution of Partnership Firm [0.015] Dissolution of Partnership Firm [0.031] Accounting for Partnership Firms
[4] 12

P, Q, and R were partners in firm sharing profits in the ratio of 1 : 1: 2. On 31st March 2018, their balance sheet showed a credit balance of ₹ 9,000 in the profit and loss account and a Workmen Compensation Fund of ₹ 64,000. From 1st April 2018, they decided to share profits in the ratio of 2: 2: 1. For this purpose, it was agreed that:
(a) Goodwill of the firm was valued at ₹ 4,00,000.
(b) A claim on account of workmen compensation of ₹ 30,000 were admitted.
Pass necessary journal entries on the reconstitution of the firm.

Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio
Chapter: [0.013000000000000001] Reconstitution of a Partnership Firm – Admission of a Partner [0.013999999999999999] Reconstitution of a Partnership Firm – Retirement/Death of a Partner
[6] 13
[6] 13.1

Sonu and Rajat started a partnership firm on April 1, 2017. They contributed ₹ 8,00,000 and ₹ 6,00,000 respectively as their capitals and decided to share profits and losses in the ratio of 3: 2.
The partnership deed provided that Sonu was to be paid a salary of ₹ 20,000 per month and Rajat a commission of 5% on turnover. It also provided that interest on capital be allowed at 8% p.a. Sonu withdrew ₹ 20,000 on 1st December 2017 and Rajat withdrew ₹ 5,000 at the end of each month. Interest on drawings was charged at 6% p.a. The net profit as per Profit and Loss Account for the year ended 31st March 2018 was ₹ 4,89,950. The turnover of the firm for the year ended 31st March 2018 amounted to ₹ 20,00,000. Pass necessary journal entries for the above transactions in the books of Sonu and Rajat.

Chapter: [0.012] Accounting for Partnership : Basic Concepts [0.031] Accounting for Partnership Firms
OR
[6] 13.2

Jay, Vijay, and Karan were partners of an architect firm sharing profits in the ratio of 2: 2: 1. Their partnership deed provided the following:
(i) A monthly salary of ₹ 15,000 each to Jay and Vijay.
(ii) Karan was guaranteed a profit of ₹ 5,00,000 and Jay guaranteed that he will earn an annual fee of ₹ 2,00,000. Any deficiency arising because of guarantee to Karan will be borne by Jay and Vijay in the ratio of 3: 2.
During the year ended 31st March 2018 Jay earned a fee of ₹ 1,75,000 and the profits of the firm amounted to ₹ 15,00,000. Showing your workings clearly prepare Profit and Loss Appropriation Account and the Capital Account of Jay, Vijay, and Karan for the year ended 31st March 2018.

Concept: Preparation of Profit and Loss Appropriation Account
Chapter: [0.031] Accounting for Partnership Firms
[6] 14

From the following Receipts and Payment Account and additional information, prepare Income and Expenditure Account and Balance Sheet of Sears Club, Noida as on March 31, 2018.

Receipts and Payment Account of Sears Club for the year ended 31-3-2018

 Receipts Amount (₹) Payments Amount (₹) To Balance b/d 20,000 By Stationery 23,400 To Subscriptions By 12% Investments 8,000 2016-17 - 40,000 By Electricity expenses 10,600 2017-18 - 94,000 By Expenses on lectures 30,000 2018-19 - 7,200 141,200 By Sports equipment 59,000 To Donations for building 40,000 By Books 40,000 To Interest on Investments 800 By Balance c/d 50,000 To Government Grant 17,400 To Sale of old furniture (Book value ₹ 4,000) 1,600 2,21,000 2,21,000

(i) The club has 200 members each paying an annual subscription of ₹ 1,000. ₹ 60,000 were in arrears for last year and 25 members paid in advance in the last year for the current year.

(ii) Stock of stationery on 1-4-2017 was ₹ 3,000 and on 31-3-2018 was ₹ 4,000.

Concept: Income and Expenditure Account Based on Trial Balance
Chapter: [0.011000000000000001] Accounting for Not-for-Profit Organisation
[6] 15

Giriija, Yatin, and Zubin were partners sharing profits in the ratio 5 : 3: 2. Zubin died on 1st August 2015. Amount due to Zubin's executor after all adjustments were ₹ 90,300. The executor was paid ₹ 10,300 in cash immediately and the balance in two equal annual installments with interest @ 6% p.a. starting from 31st March 2017. Accounts are closed on 31st March each year. Prepare Zubin's Executors Account until he is finally paid.

Concept: Maintenance of Capital Accounts of Partners
Chapter: [0.012] Accounting for Partnership : Basic Concepts
[8] 16
[8] 16.1

Akul, Bakul, and Chandan were partners in a firm sharing profits in the ratio of 2 : 2: 1. On 31st March 2018 their Balance Sheet was as follows:

Balance Sheet of Akul, Bakul and Chandan as on 31.3.2018

 Liabilities Amount (₹) Assets Amount (₹) Sundry Creditors 45,000 Cash at Bank 42,000 Employees Provident Fund 13,000 Debtors           60,000 General Reserve 20,000 Less: Provision for doubtful debts   2000 58,000 Capitals: Akul              1,60,000 Stock 80,000 Bakul            1,20,000 Furniture 90,000 Chandan         92,000 3,72,000 Plant and Machinery 1,80,000 4,50,000 4,50,000

Bakul retired on the above date and it was agreed that:
(i) Plant and Machinery were undervalued by 10%.
(ii) Provision for doubtful debts was to be increased to 15% on debtors.
(iii) Furniture was to be decreased to ₹ 87,000.
(iv) Goodwill of the firm was valued at ₹ 3,00,000 and Bakul's share was to be adjusted through the capital accounts of Akul and Chandan.
(v) Capital of the new firm was to be in the new profit sharing ratio of the continuing partners.
Prepare Revaluation account, Partners' Capital accounts, and the Balance Sheet of the reconstituted firm.

Concept: Preparation of Revaluation Account and Balance Sheet
Chapter: [0.031] Accounting for Partnership Firms
OR
[8] 16.2

Sanjana and Alok were partners in firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 their Balance Sheet was as follows:

Balance Sheet of Sanjana and Alok as on 31.3.2018

 Liabilities Amount (₹) Assets Amount (₹) Creditors 60,000 Cash 1,66,000 Work men's Compensation Fund 60,000 Debtors          - 1,46,000 Less: Provision for doubtful debts               - 2,000 1,44,000 Capitals: Stock 1,50,000 Sanjana - 5,00,000 Investments 2,60,000 Alok      - 4,00,000 9,00,000 Furniture 3,00,000 10,20,000 10,20,000

On 1st April 2018, they admitted Nidhi as a new partner for 1/4th share in the profits on the following terms:
(a) Goodwill of the firm was valued at ₹ 4,00,000 and Nidhi brought the necessary amount in cash for her share of goodwill premium, half of which was withdrawn by the old partners.
(b) Stock was to be increased by 20% and furniture was to be reduced to 90%.
(c) Investments were to be valued at ₹ 3,00,000. Alok took over investments at this value.
(d) Nidhi brought ₹ 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the new profit sharing ratio.
Prepare Revaluation Account, Partners Capital Accounts, and the Balance Sheet of the reconstituted firm on Nidhi's admission.

Concept: Accounting for Revaluation of Assets and Reassessment of Liabilities
Chapter: [0.013000000000000001] Reconstitution of a Partnership Firm – Admission of a Partner [0.031] Accounting for Partnership Firms
[8] 17
[8] 17.1

DF Ltd. invited applications for issuing 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
On Application : ₹ 3 per share (including premium ₹ 1)
On Allotment : ₹ 3 per share (including premium ₹ 1)
On First call : ₹ 3 per share
On Second and Final Call: Balance amount
Application for 70,000 shares was received. Allotment was made on the following basis.
Applications for 5,000 shares – Full
Applications for 50,000 shares – 90%
Balance of the applications was rejected. ₹ 1,11,000 were received on account of allotment. The amount of allotment due from the shareholders to whom shares were allotted on pro-rata basis was fully received. A few shareholders to whom shares were allotted in full, failed to pay the allotment money. ₹ 1,20,000 were received on the first call. Directors decided to forfeit those shares on which allotment and call money were due. Half of the forfeited shares were re-issued @ ₹ 8 per share fully paid up. Final call was not made.

Pass the necessary journal entries for the above transactions in the book of DF Ltd.

Concept: Accounting Treatment of Forfeiture and Re-issue of Share
Chapter: [0.021] Accounting for Share Capital [0.032] Accounting for Companies
OR
[8] 17.2

EF Ltd. invited applications for issuing 80,000 equity shares of  ₹ 50 each at a premium of 20%. The amount was payable as follows:
On Application: ₹ 20 per share (including premium ₹ 5)
On Allotment: ₹ 15 per share (including premium ₹ 5)
On First Call: ₹ 15 per share
On Second and Final call: Balance amount
Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants.
Seema, holding 4,000 shares failed to pay the allotment money. Afterward, the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj's shares were forfeited and subsequently reissued to Geeta for ₹ 60 per share, ₹ 50 per share paid up. Final call was not made. Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening a calls-in-arrears account.

Concept: Accounting Treatment of Forfeiture and Re-issue of Share
Chapter: [0.021] Accounting for Share Capital [0.032] Accounting for Companies
SECTION-B
[1] 18

What is meant by 'Cash Flows' ?

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

K Ltd., a manufacturing company obtained a loan of ₹ 6,00,000, advanced a loan of ₹ 1,00,000 and purchased machinery for ₹ 5,00,000. Calculate the amount of Cash Flow from financing and investing activities.

Concept: Cash Flow Analysis
Chapter: [0.040999999999999995] Analysis of Financial Statements
[4] 20

Prepare a comparative statement of Profit and Loss from the following information extracted from the statement of Profit and Loss for the year ended 31st March, 2017 and 2018.

 Particulars 2017-18 2016-17 Revenue from operations (₹) 12,00,000 (₹)10,00,000 Other income (% of Revenue from operations) 25% 25% Employee benefit expenses(% of Total Revenue) 40% 30% Tax Rate 40% 40%
Concept: Comparative Statements
Chapter: [0.024] Analysis of Financial Statements [0.040999999999999995] Analysis of Financial Statements
[4] 21
[4] 21.1

Explain briefly any four objectives of 'Analysis of Financial Statements'.

Concept: Objectives of Analysis of Financial Statements
Chapter: [0.024] Analysis of Financial Statements
OR
[4] 21.2

State under which major headings and sub-headings will the following items be presented in the Balance Sheet of a company as per Schedule-III, Part-I of the Companies Act, 2013.
(i) Prepaid Insurance
(ii) Investments in Debentures
(iii) Calls-in-arrears
(iv) Unpaid dividend
(v) Capital Reserve
(vi) Loose Tools
(vii) Capital work-in-progress
​(viii) Patents being developed by the company.

Concept: Statement of Profit and Loss and Balance Sheet in the Prescribed Form with Major Headings and Sub Headings
Chapter: [0.040999999999999995] Analysis of Financial Statements
[4] 22
[3] 22.1

Calculate Revenue from operations of BN Ltd. From the following information:

 Current assets ₹ 8,00,000. Quick ratio is 1.5: 1 Current ratio is 2: 1 Inventory turnover ratio is 6 times.

Goods were sold at a profit of 25% on cost.

Concept: Activity Ratios - Inventory Turnover Ratio
Chapter: [0.040999999999999995] Analysis of Financial Statements
[1] 22.2

The Operating ratio of a company is 60%. State whether 'Purchase of goods costing ₹ 20,000' will increase, decrease or not change the operating ratio.

Concept: Profitability Ratios - Operating Ratio
Chapter: [0.040999999999999995] Analysis of Financial Statements
OR
[3] 22.3

Calculate 'Total Assets to Debt ratio' from the following information:

 ₹ Equity Share Capital 4,00,000 Long Term Borrowings 1,80,000 Surplus i.e. Balance in statement of Profit and Loss 1,00,000 General Reserve 70,000 Current Liabilities 30,000 Long Term Provisions 1,20,000
Concept: Types of Ratios
Chapter: [0.025] Accounting Ratios
[1] 22.4

The Debt Equity ratio of a company is 1: 2. State whether 'Issue of bonus shares' will increase, decrease or not change the Debt Equity Ratio.

Concept: Types of Ratios
Chapter: [0.025] Accounting Ratios
[6] 23

From the following Balance Sheet of Kiero Ltd. and the additional information as on 31-3-2018, prepare a Cash Flow Statement:

Kiero Ltd.
Balance Sheet as at 31-03-2018

 Particulars Note No. 31-03-18 (₹) 31-03-17 (₹) I. Equity and Liabilities 1. Shareholders Funds (a) Share Capital 1 7,90,000 5,80,000 (b) Reserves and Surplus 4,60,000 1,20,000 2. Non-Current Liabilities Long term Borrowings 2 5,00,000 3,00,000 3.Current Liabilities (a) Short term borrowings 3 1,15,000 42,000 (b) Short term Provisions 4 1,18,000 46,000 Total 19,83,000 10,88,000 II. Assets 1. Non-Current Assets Fixed Assets (i) Tangible Assets 5 9,80,000 6,35,000 (ii) Intangible Assets 6 2,68,000 1,70,000 2. Current Assets (a) Current Investments 1,40,000 70,000 (b) Trade Receivables 4,40,000 1,50,000 (c) Cash and Cash Equivalents 1,55,000 63,000 Total 19,83,000 10,88,000

Notes to Accounts

 Note No. Particulars 31-03-18 (₹) 31-03-17 (₹) 1. Reserves and Surplus Surplus (Balance in Statement of Profit and Loss) 3,20,000 60,000 General Reserve 1,40,000 60,000 4,60,000 1,20,000 2. Long-term Borrowings 12% Debentures 5,00,000 3,00,000 5,00,000 3,00,000 3. Short-term Borrowings Bank Overdraft 1,15,000 42,000 1,15,000 42,000 4. Short-term Provisions Provision for Tax 1,18,000 46,000 1,18,000 46,000 5. Tangible Assets Plant and Machinery 11,00,000 7,50,000 Less:Accumulated Depreciation (1,20,000) (1,15,000) 9,80,000 6,35,000 6. Intangible Assets Goodwill 2,68,000 1,70,000 2,68,000 1,70,000

Additional Information: 12% debentures were issued on 1st September, 2017.

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

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## CBSE previous year question papers Class 12 Accountancy with solutions 2018 - 2019

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