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Question Paper Solutions - Accountancy 2017 - 2018-CBSE 12th-Class 12 CBSE (Central Board of Secondary Education)

Alternate Sets

   

Marks: 80
[1]1

Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of settlement of assets and liabilities.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Dissolution of a Partnership Firm
[1]2

Is ‘Reserve Capital’ a part of ‘unsubscribed capital’ or ‘Uncalled Capital’?

Chapter: [1.01] Accounting for Partnership Firms
Concept: Admission of a Partner - Adjustment of Capitals
[1]3

Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs 2 crores. After a year, they sold it for Rs 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer.

Chapter: [1.01] Fundamentals of Partnership
Concept: Division of Profit Among Partners
[1]4

Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3: 1. Chaman was admitted as a new partner for `1/6` th share in the profits. Chaman acquired `2/5` th of his share from Amit. How much share did Chaman acquire from Beena?

Chapter: [1.01] Accounting for Partnership Firms
Concept: Change in the Profit Sharing Ratio Among the Existing Partners
[1]5

Give the meaning of 'Debentures issued as Collateral Security'.

Chapter: [1.02] Accounting for Companies
Concept: Debentures as Collateral Security-concept
[1]6

Neetu, Meetu, and Teetu were partners in a firm. On 1st January 2018, Meetu retired. On Meetu's retirement, the goodwill of the firm was valued at Rs 4,20,000.

Pass necessary journal entry for the treatment of goodwill on Meetu's retirement.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Methods of Capital Accounts - Fixed and Fluctuating Capital Method
[3]7

NK Ltd., a truck manufacturing company, is registered with an authorised capital of Rs 1,00,00,000 divided into equity shares of Rs 100 each. The subscribed and paid up capital of the company is Rs 50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to train the specially-abled children of the area. It is planning to provide them employment in its various production units and industries in the neighbourhood area.

To meet the capital expenditure requirements of the project, the company offered 20,000 shares to the public for subscription. The shares were fully subscribed and paid.
Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also, identify any two values that the company wants to communicate.

Chapter: [2.01] Analysis of Financial Statements
Concept: Statement of Profit and Loss and Balance Sheet in the Prescribed Form with Major Headings and Sub Headings
[3]8

What is meant by a 'Share

Chapter: [1.02] Accounting for Companies
Concept: Theory on Shares

Equity Shares and Preference Shares.

Chapter: [2] Sources of Business Finance
Concept: Types of Shares - Preference Shares Equity Shares
[9]9

Jayant, Kartik and Leena were partners in a firm sharing profits and losses in the ratio of 5: 2 : 3. Kartik died and Jayant and Leena decided to continue the business. Their gaining ratio was 2 : 3. Calculate the new profit sharing ratio of Jayant and Leela.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Retirement and Death of a Partner - Effect of Retirement I Death of a Partner on Change in Profit Sharing Ratio
[3]10

Complete the following journal entries left blank in the books of VK Ltd.:

VK Ltd.
Journal
Date Particulars L.F.

Dr.

Rs

Cr.

Rs

2018
Feb 1

___________________             Dr.

        ___________________

(Purchased own 500, 9% debentures of Rs 100 each at Rs 97 each for immediate cancellation)

 

  ________

 

 

  ________

 

Feb 1

___________________             Dr.

       ___________________

       ___________________

(Cancelled own debentures)

 

  ________

 

 

 

 ________

 ________

______

___________________             Dr.

      ___________________

(______________________)

 

  ________

 

 

  ________

 

Chapter: [2.01] Analysis of Financial Statements
Concept: Concept of Financial Statements
[4]11

Banwari, Girdhari and Murari are partners in a firm sharing profits and losses in the ratio of 4: 5: 6. On 31st March 2014, Girdhari retired. On that date, the capitals of Banwari, Girdhari and Murari before the necessary adjustments stood at Rs 2,00,000, Rs 1,00,000 and Rs 50,000 respectively. On Girdhari's retirement, goodwill of the firm was valued at Rs 1,14,000. Revaluation of assets and re-assessment of liabilities resulted in a profit of Rs 6,000. General Reserve stood in the books of the firm at Rs 30,000.
The amount payable to Girdhari was transferred to his loan account. Banwari and Murari agreed to pay Girdhari two yearly instalments of Rs 75,000 each including interest @ 10% p.a. on the outstanding balance during the first two years and the balance including interest in the third year. The firm closes its books on 31st March every year.
Prepare Girdhari's loan account till it is finally paid showing the working notes clearly.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Retirement Or Death of a Partner - Adjustment of Capitals
[4]12

Asha and Aditi are partners in a firm sharing profits and losses in the ratio of 3: 2. They admit Raghav as a partner for `1/4`th share in the profits of the firm. Raghav brings Rs 6,00,000 as his capital and his share of goodwill in cash. Goodwill of the firm is to be valued at two years' purchase of average profits of the last four years.
The profits of the firm during the last four years are given below:

Year Profit Rs
2013-14 3,50,000
2014-15 4,75,000
2015-16 6,70,000
2016-17 7,45,000

The following additional information is given:

1) To cover management cost an annual charge of Rs 56,250 should be made for the purpose of valuation of goodwill.

2) The closing stock for the year ended 31.3.2017 was overvalued by Rs 15,000.

Pass necessary journal entries on Raghav's admission showing the working notes clearly.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Change in the Profit Sharing Ratio Among the Existing Partners - Gaining Ratio
[6]13

Chander and Damini were partners in a firm sharing profits and losses equally. On 31st March 2017 their Balance Sheet was as follows:

Balance Sheet of Chander and Damini

as on 31.3.2017

Liabilities

Amount

Rs 

Assets

Amount

Rs

Sundry Creditors

Capitals:

      Chander    2,50,000

      Damini      2,16,000

 

 

 

1,04,000

 

 

4,66,000

 

Cash at Bank

Bills Receivable

Debtors

Furniture

Land and Building

 

 

30,000

45,000

75,000

1,10,000

3,10,000

5,70,000 5,70,000
   

On 1.4.2017, they admitted Elina as a new partner for `1/3` rd share in the profits on the following conditions:

1) Elina will bring Rs 3,00,000 as her capital and Rs 50,000 as her share of goodwill premium, half of which will be withdrawn by Chander and Damini.

2) Debtors to the extent of Rs 5,000 were unrecorded.

3) Furniture will be reduced by 10% and 5% provision for bad and doubtful debts will be created on bills receivables and debtors.

4) Value of land and building will be appreciated by 20%.

5) There is a claim against the firm for damages, a liability to the extern of Rs 8,000 will be created for the same.

Prepare Revaluation Account and Partners Capital Accounts.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Preparation of Revaluation Account and Balance Sheet
[6]14

On 1st April 2014, KK Ltd. invited applications for issuing 5,000 10% debentures of Rs 1,000 each at a discount of 6%. These debentures were repayable at the end of the 3rd year at a premium of 10%. Applications for 6,000 debentures were received and the debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded.

The directors decided to transfer the minimum amount to Debenture Redemption Reserve on 31.3.2016. On 1.4.2016, the company invested the necessary amount in 9% bank fixed deposit as per the provisions of the Companies Act 2013. A tax was deducted at source by bank on interest @10% p.a.

Pass the necessary journal entries for issue and redemption of debentures. Ignore entries relating to writing off a loss on issue of debentures and interest paid on debentures.

Chapter: [1.02] Accounting for Companies
Concept: Meaning and Concept of Debentures
[6]15

Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2: 2: 1. On 31st March 2017 their Balance Sheet was as follows:

Balance Sheet of Pranav, Karan and Rahim
as on 31.3.2017
Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

General Reserve

Capitals

    Pranav    2,00,000

    Karan     2,00,000

    Rahim    1,00,000

 

 

3,00,000

1,50,000

 

 

 

5,00,000

Fixed Assets

Stock

Debtors

Bank

 

 

 

 

4,50,000

1,50,000

2,00,000

1,50,000

 

 

9,50,000 9,50,000
   

Karan died on 12.6.2017. According to the partnership deed, the legal representatives of the deceased partner were entitled to the following:

1) Balance in his Capital Account

2) Interest on Capital @12% p.a.

3) The share of goodwill. Goodwill of the firm on Karan's death was valued at Rs 60,000.

4) Share in the profits of the firm till the date of his death, calculated on the basis of last year’s profit. The profit of the firm for the year ended 31.3.2017 was Rs 5,00,000.

Prepare Karan's Capital Account to be presented to his representatives.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Retirement and Death of a Partner - Preparation of Balance Sheet
[8]16 | Attempt Any One
[8]16.1

Moli, Bhola and Raj were partners in the firm sharing profits and losses in the ratio of 3 : 3: 4. Their partnership deed provided for the following:

1) Interest on capital @ 5% p.a.

2) Interest on drawing @ 12% p.a

3) Interest on partners' loan @ 6% p. a.

4) Moli was allowed an annual salary of Rs 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement. Their fixed capitals were Moli: Rs 5,00,000; Bhola : Rs 8,00,000 and Raj : Rs 4,00,000. On 1st April 2016, Bhola extended a loan of  Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March 2017 before interest on Bhola's loan was Rs 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March 2017 and their Current Accounts assuming that Bhola withdrew Rs 5,000 at the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.

Chapter: [1.01] Accounting for Partnership Firms
Concept: Preparation of Profit and Loss Appropriation Account
[8]16.2

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2: 2: 1. On 31st March 2017 their Balance Sheet was as follows:

Balance Sheet of Chander and Damini
as on 31.3.2017
Liabilities

Amount

Rs

Assets

 

Amount

Rs

Capitals:

      Srijan       2,00,000

      Raman      1,50,000

Creditors

Bills Payable

Outstanding Salary

 

 

 

3,50,000

75,000

40,000

35,000

 

Capital: Manan

Plant

Investment

Stock

Debtors

Bank

Profit & Loss A/c

10,000

2,20,000

70,000

50,000

60,000

10,000

80,000

  5,00,000   5,00,000
   

On the above date, they decided to dissolve the firm.

1) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on the sale of assets (except cash) and was to bear all expenses of realisation.

2) Assets were realised as follows:

   Rs
Plant 85,000
Stock 33,000
Debtors 47,000

3) Investments were realised at 95% of the book value.

4) The firm had to pay Rs 7,500 for an outstanding repair bill not provided for earlier.

5) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for Rs 15,000.

6) Expenses of realisation amounting to Rs 3,000 were paid Srijan.

Prepare Realisation Account Partners' Capital Accounts and Bank Account.

Chapter: [1.03] Reconstitution of Partnership
Concept: Dissolution of a Partnership Firm - Preparation of Realization Account, and Other Related Accounts
[8]17 | Attempt Any One
[8]17.1

A Ltd. invited applications for issuing 1,00,000 shares of Rs 10 each at a premium of Rs 1 per share. The amount was payable as follows:

On Application: Rs 3 per share

On Allotment: Rs 3 per share (including premium)

On First Call: Rs 3 per share

On Second and Final Call: Balance amount

Applications for 1,60,000 shares were received. The allotment was made on the following basis:
(i) To applicants for 90,000 shares: 40,000 shares

(ii) To applicants for 50,000 shares: 40,000 shares

(iii) To applicants for 20,000 shares: full shares

Excess money paid on the application is to be adjusted against the amount due on allotment and calls. Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay allotment, first and second and final call money.

Another shareholder, Sudha, who applied for 1,800 shares and belonged to category (i), did not pay the first and second and final call money.

All the shares of Rishabh and Sudha were forfeited and were subsequently re-issued at Rs 7 per share fully paid. Pass the necessary journal entries in the books of A Ltd. Open Calls-in-Arrears Account and Calls-in-Advance Account wherever required

Chapter: [1.02] Accounting for Companies
Concept: Calls in Advance and Arrears
[8]17.2

X Ltd. invited applications for issuing 50,000 equity shares of Rs 10 each. The amount was payable as follows:

On Application: Rs 2 per share

On Allotment: Rs 2 per share

On Second and Final Call: Balance amount.

Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on a pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls if any. Gopal, who applied for 600 shares, paid his entire share money with the application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for Rs 20,000; Rs 4 per share paid up. The first call money and the second and final call money was called and duly received.

Pass necessary journal entries for the above transactions in the books of X Ltd. Open Calls-in-Advance Account and Calls-in-Arrears Account wherever necessary.

Chapter: [1.02] Accounting for Companies
Concept: Calls in Advance and Arrears
[1]18

State the objective of preparing ‘Cash Flow statement’.

Chapter: [4] Cash Flow Statement (Only for Non-financing Companies)
Concept: Concept of Cash Flow Statement
[1]19

'Interest received and paid' is considered as which type of activity by a finance company while preparing a Cash Flow Statement?

Chapter: [4] Cash Flow Statement (Only for Non-financing Companies)
Concept: Concept of Cash Flow Statement
[4]20

From the following information obtained from the books of Kundan Ltd., calculate the inventory turnover ratio for the years 2015-16 and 2016-17 :

  2015-16 (Rs) 2016-17(Rs)
Inventory on 31st March 7,00,000 17,00,000
Revenue from operations 50,00,000 75,00,000

(Gross profit is 25% on the cost of revenue from operations)

In the year 2015-16, inventory increased by Rs 2,00,000.

Chapter: [2.01] Analysis of Financial Statements
Concept: Activity Ratios - Inventory Turnover Ratio
[4]21

JW Ltd. was a company manufacturing geysers. As a part of its long-term goal for an expansion, the company decided to identify the opportunity in rural areas. The initial plan was rolled out for Bhiwani village in Haryana. Since the village did not have a regular supply of electricity, the company decided to manufacture solar geysers. The core team consisting of the Regional Manager, Accountant and the Marketing Manager was taken from the Head Office and the remaining employees were selected from the village and neighbourhood areas. At the time of preparation of financial statements, the accountant of the company fell sick and the company debuted a junior accountant temporarily from the village for two months. The Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-heads mentioned which were not as per Schedule III of the Companies Act, 2013.

Items Major Head/Sub-Head
Loose Tools Trade Receivables
Cheques in Hand Current Investments
Term Loan from Bank Other Long-term Liabilities
Computer Software Tangible Fixed Assets

Identify any two values that the company wants to communicate to the society. Also, present the above items under the correct major heads and sub-heads as per Schedule III of the Companies Act, 2013.

Chapter: [9] Analysis of Financial Statements
Concept: Concept of Financial Statement Analysis
[4]22

Prepare a common size Balance Sheet of KJ Ltd. from the following information:

Particular Note
No.

31-3-2017

Rs

31-3-2016

Rs

I. Equity and Liabilities

   1. Shareholders' Funds

   2. Non-current Liabilities

   3. Current Liabilities

Total

II. Assets

   1. Non- Current Assets

   2. Current Assets

Total

 

 

8,00,000

5,00,000

3,00,000

16,00,000

 

10,00,000

6,00,000

16,00,000

4,00,000

2,00,000

2,00,000

8,00,000

 

5,00,000

3,00,000

8,00,000

 

Chapter: [2.01] Analysis of Financial Statements
Concept: Statement of Profit and Loss and Balance Sheet in the Prescribed Form with Major Headings and Sub Headings
[6]23

From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement :

Balance Sheet of JY Ltd.
as at 31.3.2017
Particular Note No.

31-3-2017

Rs

31-3-2016

Rs

I. Equity and Liabilities

  1. Shareholders' Funds:

     (a) Share capital

     (b) Reserves and surplus

  2. Non-current Liabilities:

    Long term-borrowing

  3. Current Liabilities:

    (a) Short-term borrowings

    (b) Short-term provisions

 

 

 

1

 

2

 

3

4

 

 

5,00,000

1,00,000

 

2,50,000

 

1,50,000

2,00,000

 

 

5,00,000

(25,000)

 

1,50,000

 

1,00,000

1,25,000

Total   12,00,000 8,50,000

II. Assets

   1. Non- Current Assets:

     (a) Fixed Assets:

         (i) Tangible

   2. Current Assets:

    (a) Trade Receivable

    (b) Cash and Cash Equivalents

    (c) Short-term Loans and Advances

 

 

 

5

 

 

 

 

 

 

 

6,00,000

 

2,75,000

1,25,000

2,00,000

 

 

 

4,50,000

 

2,25,000

75,000

1,00,000

Total   12,00,000 8,50,000

 

Notes to Accounts

Note No Particulars

31-3-2017

Rs

31-3-2016

Rs

1

 

 

2

 

 

3

 

 

 

4

 

 

 

5

 

 

Reserve and Surplus

(Surplus i.e. Balance in Statement of Profit and Loss)

 

 

1,00,000

 

(25,000)

1,00,000 (25,000)

Long-term borrowings :

10 % Debentures

 

 

2,50,000

 

1,50,000

2,50,000 1,50,000

Short-term borrowings :

Bank Overdraft

 

 

1,50,000

 

1,00,000

1,50,000 1,00,000

Short-term provisions:

(i) Proposed Dividend

(ii) Provision for Tax

 

 

75,000

1,25,000

 

50,000

75,000

2,00,000 1,25,000

Tangible Assets:

Machinery

Accumulated Depreciation

 

 

7,37,500

(1,37,500)

 

5,25,000

(75,000)

6,00,000 4,50,000

Additional Information:

Rs 1,00,000, 10% Debentures were issued on 31-3-2017.

Chapter: [4] Cash Flow Statement (Only for Non-financing Companies)
Concept: Concept of Cash Flow Statement
S