Accountancy Outside Delhi Set 3 2024-2025 Commerce (English Medium) Class 12 Question Paper Solution

Akhil, Bajrang and Chinmay were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Dilawar was admitted as a new partner in the firm. Dilawar acquired his `1/10`th share from Akhil and `2/10`th from Bajrang. Dilwar was admitted for which of the following share in the profits of the firm?

`1/10`

`2/10`

`3/10`

`4/10`

Ekta, Faguni and Garima were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 1. Faguni was guaranteed ₹ 25,000 as her share of profit in the firm. Any deficiency arising on that account was to be met by Ekta. The firm earned a profit of ₹ 90,000 for the year ended 31^st March, 2024.

The profit credited to Faguni’s capital account was:

₹ 30,000

₹ 40,000

₹ 25,000

₹ 10,000

Suhas and Vilas were partners in a firm with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. They admitted Prabhas as a new partner for `1/5`^th share in future profits. Prabhas brought ₹ 2,00,000 as his capital. Prabhas’ share of goodwill will be:

₹ 1,00,000

₹ 10,00,000

₹ 9,00,000

₹ 20,000

Radhika, Mehar and Shubha were partners in a firm sharing profits and losses in the ratio of 9 : 8 : 7. If Radhika’s share of profit at the end of the year amounted to ₹ 5,40,000, Shubha’s share of profit will be:

₹ 5,40,000

₹ 4,80,000

₹ 60,000

₹ 4,20,000

Nandita and Prabha were partners in a firm. Nandita withdrew ₹ 3,00,000 during the year for personal use. The partnership deed provides for charging interest on drawings @ 10% p.a. Interest on Nandita’s drawings for the year ended 31st March, 2024 will be:

₹ 9,000

₹ 30,000

₹ 18,000

₹ 15,000

Kajal and Laura were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Maddy for `1/4`th share in future profits. Maddy brought ₹ 8,00,000 as his capital and ₹ 4,00,000 as his share of premium for goodwill. Kajal, Laura and Maddy decided to share profits in future in the ratio of 2 : 1 : 1. After all adjustments in respect of goodwill, revaluation of assets and liabilities etc. Kajal’s capital was ₹ 15,00,000 and Laura’s capital was ₹ 8,00,000. It was agreed that partners’ capitals should be in proportion to their new profit sharing ratio taking Maddy’s capital as base. The adjustment was made by bringing in or withdrawing the necessary cash as the case may be. The cash brought in by Kajal was:

₹ 1,00,000

₹ 8,00,000

₹ 16,00,000

₹ 12,00,000

Pulkit and Ravinder were partners in a firm sharing profits and losses in the ratio of 3 : 2. Sikander was admitted as a new partner for `1/5`th share in the profits of the firm. Pulkit, Ravinder and Sikander decided to share future profits in the ratio of 2 : 2 : 1. Sikander brought ₹ 5,00,000 as his capital and ₹ 10,00,000 as his share of premium for goodwill. The amount of premium for goodwill that will be credited to the old partners’ capital accounts will be:

Pulkit’s Capital Account ₹ 10,00,000.

Pulkit’s Capital Account ₹ 6,00,000 and Ravinder’s Capital Account ₹ 4,00,000.

Pulkit’s Capital Account ₹ 5,00,000 and Ravinder’s Capital Account ₹ 5,00,000.

Pulkit’s Capital Account ₹ 2,00,000.

Offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) is known as ______.

Private placement of shares

Sweat equity

Incorporation cost

Employee stock option plan

Ajay Ltd. forfeited 100 shares of ₹ 10 each for non-payment of first call of ₹ 1 per share and second and final call of ₹ 3 per share. The minimum price per share at which these shares can be reissued will be:

₹ 6

₹ 4

₹ 10

₹ 16

Assertion (A): The maximum number of partners in a partnership firm is 50.

Reason (R): By virtue of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm. The Central Government has prescribed the maximum number of partners in a firm to be 50.

Choose the correct option from the following:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Both Assertion (A) and Reason (R) are false.

Wayne, Shaan and Bryan were partners in a firm. Shaan had advanced a loan of ₹ 1,00,000 to the firm. On 31st March, 2024 the firm was dissolved. After transferring various assets (other than cash & bank) and outside liabilities to Realisation Account, Shaan took over furniture of book value of ₹ 90,000 in part settlement of his loan amount. For the payment of balance amount of Shaan’s loan Bank Account will be credited with:

₹ 1,00,000

₹ 90,000

₹ 1,90,000

₹ 10,000

The following journal entry appears in the books of Latvion Ltd.:

The discount on issue of debentures is ______.

15%

5%

10%

95%

Zeba Limited issued 15,000, 9% debentures of ₹ 100 each at 10% discount on 1^st April, 2023. It has a balance of ₹ 1,00,000 in Securities Premium Account. The ‘Discount on issue of Debentures’ of ₹ 1,50,000 will be written off:

₹ 1,00,000 out of Securities Premium Account and ₹ 50,000 out of Statement of Profit and Loss.

₹ 50,000 out of Securities Premium Account and ₹ 1,00,000 out of Statement of Profit and Loss.

₹ 1,50,000 out of Securities Premium Account.

₹ 1,50,000 out of Statement of Profit and Loss.

Anisha, Deepa and Charu were partners sharing profits and losses in the ratio of 5 : 3 : 2. On 31^st March, 2024, they decided to change their profit-sharing ratio to 2 : 3 : 5. Each partner’s gain or sacrifice due to change in profit-sharing ratio will be:

Anisha’s sacrifice `3/10`; Charu’s gain `3/10`

Anisha’s gain `3/10`; Charu’s sacrifice `3/10`

Anisha’s sacrifice `3/10`; Deepa’s gain `3/10`

Deepa’s gain `3/10`; Charu’s sacrifice `3/10`

Preet and Saral were partners sharing profits and losses in the ratio of 3 : 2. On 31^st March, 2024 they decided to change their profit sharing ratio to 1 : 1. On the date of reconstitution goodwill of the firm was valued at ₹ 1,00,000. The journal entry for treatment of goodwill on account of change in profit-sharing ratio will be: 

Ishan, Jatin and Kapil were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Jatin retired and his share was taken up by Ishan and Kapil in the ratio 1 : 1. The new profit-sharing ratio between Ishan and Kapil after Jatin’s retirement will be:

5 : 1

1 : 1

5 : 4

7 : 3

Sakshi, Kiara and Gunjan were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Kiara retired on 1-4-2023. Afterall adjustments the amount due to Kiara was ₹ 5,00,000. The payment was to be made in two yearly instalments of ₹ 2,50,000 each plus interest @ 10% per annum on the unpaid balance. The amount of first instalment paid on 31-03-2024 will be:

₹ 3,00,000

₹ 2,75,000

₹ 5,50,000

₹ 2,50,000

The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as ______.

Nominal capital 

Issued capital

Reserve capital

Subscribed capital

According to Securities and Exchange Board of India (SEBI), guidelines, minimum subscription of capital cannot be less than 90% of ______.

Authorised capital

Issued capital

Reserve capital

Subscribed capital

Debentures on which a company does not give any undertaking for the repayment of money borrowed are called ______.

Bearer Debentures 

Secured Debentures

Perpetual Debentures

Registered Debentures

If the amount of debentures issued is more than the amount of the net assets taken over by a company, the difference will be treated as ______.

Capital Reserve 

Goodwill

Purchase Consideration

General Reserve

Rambha and Urvashi were partners in a firm sharing profits and losses in the ratio of 13 : 12. From 1^st April, 2024, they decided to share future profits and losses in the ratio of 12 : 13. On this date, their balance sheet showed a debit balance of ₹ 2,50,000 in Advertising Suspense Account and a balance of ₹ 5,00,000 in Contingency Reserve. Partners decide to write off the balance of the Advertising Suspense Account but decided not to distribute Contingency Reserve.

Pass necessary journal entries for the above transactions on there constitution of the firm. Show your working clearly.

Luv and Kush were partners in a firm sharing profits and losses in the ratio of 5 : 4. On 1^st April. 2024, Rishi was admitted as a new partner for `2/9`th share in profits which he acquired equally from Luv and Kush. On the date of Rishi’s admission, the Balance Sheet of Luv and Kush showed debtors of ₹ 9,00,000 and provision for bad and doubtful debts of ₹ 90,000. Pass necessary journal entries for treatment of provision for bad and doubtful debts on the date of Rishi's admission in each of the following cases:

1. Bad debts amounted to ₹ 60,000.
2. Bad debts amounted to ₹ 90,000.
3. Bad debts amounted to ₹ 1,00,000.

Apoorv Ltd. acquired building worth ₹ 15,50,000, Machinery worth ₹ 11,40,000 and Furniture worth ₹ 1,10,000 from Dhruv Ltd. and took over its liabilities of ₹ 2,00,000 for a purchase consideration of ₹ 25,00,000. Apoorv Ltd. paid the purchase consideration by issuing 12% debentures of ₹ 100 each at a premium of 25%.

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

Ajanta Ltd. purchased machinery worth ₹ 36,00,000 from Sujata Ltd. Ajanta Ltd. paid half the amount to Sujata Ltd. through a bank draft and the balance by issuing 8% debentures of ₹ 100 each at a discount of 10%. Pass the necessary journal entries in the books of Ajanta Ltd. for the above transactions.

Aakash and Baadal entered into partnership on 1^st October, 2023 with the capitals of ₹ 80,00,000 and ₹ 60,00,000 respectively. They decided to share profits and losses equally. Partners were entitled to interest on capital @ 10% per annum as per the provisions of the partnership deed.

Baadal is given a guarantee that his share of profit, after charging interest on capital will not be less than ₹ 7,00,000 per annum.

Any deficiency arising on that account shall be met by Aakash. The profit of the firm for the year ended 31^st March, 2024 amounted to ₹ 13,00,000.

Prepare Profit and Loss Appropriation Account for the year ended 31^st March, 2024.

Parul and Rajul were partners in a firm, sharing profits and losses in the ratio of 5 : 3. The balance in their fixed capital accounts on 1^st April, 2023 were: Parul ₹ 6,00,000 and Rajul ₹ 8,00,000. The partnership deed provided for allowing interest on capital at 12% per annum. The net profit of the firm for the year ended 31^st March, 2024 was ₹ 1,26,000.

Prepare Profit and Loss Appropriation Account for the year ended 31^st March, 2024. Show your working clearly.

Swar Sangam Limited issued 3,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows:

On Application - ₹ 200 per debenture

On Allotment - Balance (including premium)

The debentures were fully subscribed and all amounts were duly received.

Pass the necessary journal entries for issue of debentures in the books of Swar Sargam Limited.

Simar, Tanvi and Umara were partners in a firm sharing profits and losses in the ratio of 5: 6 : 9. On 31st March, 2024 their Balance Sheet was as follows:

Umara died on 30^th June, 2024. The partnership deed provided for the following on the death of a partner:

1. Goodwill of the firm be valued at 3 years purchase of average profits for the last 5 years. The profit/loss for the previous four years were:
   

   2022-23: ₹ 3,10,000 (loss)	2021-22: ₹ 3,00,000 (profit)
   2020-21: ₹ 4,00,000 (profit)	2019-20: ₹ 2,50,000 (profit)

2. Umara’s share of profit or loss till the date of her death was to be calculated on the basis of profit or loss for the year ended 31^st March 2024.
   1. Calculate Goodwill of the firm.
   2. Pass the necessary journal entry for the treatment of goodwill on Umara’s death.
   3. Calculate Umara’s share in the profit or loss of the firm till the date of her death.
   4. Pass the necessary journal entry to record Umara’s share of profit or loss till the date of her death.

Pass necessary journal entries for the following transactions on the dissolution of the partnership firm of Preeti, Varsha and Kamala after the various assets (other than cash) and third party liabilities have been transferred to Realisation Account:

1. Preeti took over the debtors of book value of ₹ 90,000 at a discount of 20%.
2. Kamala took over her husband’s loan of ₹ 4,00,000.
3. There were 100 shares of ₹ 10 each in Star Ltd. acquired at a cost of ₹ 2,00,000 which had written off completely from the books. These shares were valued at ₹ 2,400 each and divided among the partners in their profit sharing ratio.
4. Sundry creditors amounting to ₹ 5,00,000 were settled a discount of 10%.
5. Land and Building of the book value of ₹ 40,00,000 was sold for ₹ 60,00,000 through a broker who charged 5% commission.
6. Varsha paid the dissolution expenses of ₹ 45,000 on behalf of the firm.

Bittu and Chintu were partners in a firm sharing profit and losses in the ratio of 4 : 3. Their Balance Sheet as at 31st March, 2024 was as follows:

On 1^st April, 2024, Diya was admitted in the firm for `1/7`th share in the profits on the following terms:

1. New profit sharing ratio between Bittu, Chintu and Diya will be 3 : 3 : 1.
2. Fixed Assets were found to be overvalued by ₹ 1,40,000.
3. Creditors were paid ₹ 4,20,000 in full settlement.
4. Diya brought proportionate capital and ₹ 5,60,000 as her share of goodwill premium by cheque.

Prepare Revaluation Account and Partner’s Capital Accounts.

Rupal, Shanu and Trisha were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. Their Balance Sheet as at 31^st March, 2024 was as follows:

Trisha retired from the firm on 1^st April, 2024 on the following terms:

1. Trisha’s share of profit was entirely taken by Shanu.
2. Fixed assets were found to be undervalued by ₹ 2,40,000.
3. Stock was revalued at ₹ 2,00,000.
4. Goodwill of the firm was valued at ₹ 8,00,000 on Trisha’s retirement.
5. The total capital of the new firm was fixed at ₹ 16,00,000 which was adjusted according to the new profit sharing ratio of the partners. For this necessary cash was paid off or brought in by the partners as the case may be.

Prepare Revaluation Account and Partners’ Capital Accounts.

Following is the extract of the Balance Sheet of Vikalp Ltd. as per Schedule-III, Part-I of Companies Act as at 31^st March, 2024 along with Notes to accounts:

‘Notes to accounts’ as at 31^st March, 2023:

‘Notes to accounts’ as at 31^st March, 2024:

Answer the following questions:

1. The total face value of equity shares issued during the year 2023-2024 was:
   1. ₹ 10,00,000
   2. ₹ 9,80,000
   3. ₹ 4,20,000
   4. ₹ 11,00,000
2. The number of shares on which the called up amount was not received were:
   1. 1,00,000
   2. 80,000
   3. 3,00,000
   4. 20,000
3. On 1st April, 2024 Vikalp Limited forfeited all the shares on which the called up amount was not received. On forfeiture, ‘Share Capital Account’ will be debited by:
   1. ₹ 1,60,000
   2. ₹ 40,000
   3. ₹ 2,00,000
   4. ₹ 2,40,000
4. On forfeiture, ‘Share Forfeiture Account’ will be credited with:
   1. ₹ 1,60,000
   2. ₹ 40,000
   3. ₹ 2,00,000
   4. ₹ 2,40,000
5. If all the forfeited shares are reissued at ₹ 8 per share fully paid up, the amount credited to ‘Capital Reserve A/c’ will be:
   1. ₹ 40,000
   2. ₹ 1,60,000
   3. ₹ 2,00,000
   4. ₹ 1,20,000
6. If the forfeited shares are reissued at the minimum permissible price, the amount credited to ‘Capital Reserve Account’ will be:
   1. ₹ 2,00,000
   2. ₹ 1,60,000
   3. ₹ 40,000
   4. NIL

Alexia Limited invited applications for issuing 1,00,000 equity shares of ₹ 10 each at premium of ₹ 10 per share.

The amount was payable as follows:

On application ₹ 9 per share (Including premium ₹ 6 per share)

On allotment ₹ 8 per share (Including premium ₹ 4 per share)

On first and final call ₹ 3 per share.

Applications were received for 1,50,000 equity shares and allotment was made to the applicants as follows:

Category A: Applicants for 90,000 shares were allotted 70,000 shares.

Category B: Applicants for 60,000 shares were allotted 30,000 shares.

Excess money received on application was adjusted towards allotment and first and final call.

Shekhar, who had applied for 1200 shares failed to pay the first and final call. Shekhar belonged to category B.

Pass necessary journal entries for the above transactions in the books of Alexia Limited. Open calls in arrears and calls in advance account, wherever necessary.

Pass the necessary journal entries for forfeiture and reissue of shares in the following cases:

1. Premier Ltd. forfeited 600 shares of ₹ 10 each issued at a premium of ₹ 3 per share (payable with allotment) for non-payment of allotment money of ₹ 7 per share including premium. The first and final call of ₹ 3 per share was not yet made. The forfeited shares were reissued at ₹ 13 per share fully paid up.
2. Risha Ltd. forfeited 1000 shares of ₹ 10 each, ₹ 8 per share called up issued at a premium of ₹ 2 per share to Atul, for non-payment of allotment money of ₹ 6 per share (including premium). Out of these, 800 shares were reissued at ₹ 7 per share, ₹ 8 paid up.

______ is not a tool of ‘Analysis of Financial Statements’.

Income Statement

Ratio Analysis

Comparative Statements

Cash Flow Statement

In ‘Common size income statement’ each item is expressed as a percentage of ______.

Total Income 

Total Expenses

Profit After Tax

Revenue from Operations

Short-term highly liquid investments qualify as cash equivalents if they are realisable into known amounts of cash from the date of acquisition within a period of ______.

6 months or less

9 months or less

12 months or less

3 months or less

Which of the following item is not included in cash and cash equivalents?

Trade Receivables

Demand deposits with bank

Short-term marketable securities

Cheques in hand

The Quick Ratio of a company is 1 : 1. Which of the following transactions will result in increase in Quick Ratio?

Cash received from debtors

Sold goods on credit

Purchased goods on credit

Purchased goods on cash

Statement - I: Snow Limited earned a profit of ₹ 2,00,000 after charging depreciation of ₹ 50,000 on machinery. So, operating profit before working capital changes would be ₹ 2,50,000.

Statement - II: Depreciation is added back to net profit as it does not result in any cash flow.

Choose the correct option from the following:

Only Statement - I is true. 

Only Statement - II is true.

Both the Statements are false. 

Both the Statements are true.

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule-III, Part-I of the Companies Act, 2013:

1. Outstanding Salaries
2. Trademarks
3. Loose tools

From the following information prepare a Comparative Statement of Profit and Loss for the year ended 31^st March, 2024:

From the following information, calculate Opening Trade Receivables and Closing Trade Receivables:

Trade Receivables Turnover Ratio - 4 times

Closing Trade Receivables were ₹ 20,000 more than that in the beginning.

Cost of Revenue from operations - ₹ 6,40,000.

Cash Revenue from operations `1/3`rd of Credit Revenue from Operations Gross Profit Ratio - 20%

From the following information, calculate opening and closing inventory:

Gross Profit Ratio - 25%

Revenue from operations - ₹ 8,00,000

Inventory turnover ratio - 4 times

Opening inventory was 2 times of the closing inventory.

On 31^st March, 2024 following is the Balance Sheet of Bhavik Limited:

Notes to Accounts:

Additional Information:

1. During the year a piece of machinery costing ₹ 8,00,000 accumulated depreciation there on ₹ 50,000 was sold for ₹ 6,50,000.
2. Debentures were redeemed on 31-03-2024.

Calculate:

1. Cash flows from Investing Activities
2. Cash flows from Financing Activities