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Arts (English Medium) Class 12 - CBSE Question Bank Solutions for Accountancy

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Following is the Balance Sheets of Solar Power Ltd as at 31.3.2014 :

Solar Power Ltd.
Balance Sheet
Particulars Note
No.

31-3-2014

Rs

31-3-2014

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

 

 

 

24,00,000

6,00,000

 

4,80,000

 

3,58,000

1,00,000

 

 

22,00,000

4,00,000

 

3,40,000

 

4,08,000

1,54,000

Total   39,38,000 35,02,000

II. Assets

1. Non – Current Assets

  a) Fixed Assets

    (i) Tangible assets

    (ii) Intangible

  b) Non – Current Investments

2. Current Assets

  a) Current Investment

  b) Inventories

  c) Trade Receivables

  d)Cash and Cash

 

 

 

21,40,000

80,000

 

 

 

4,80,000

2,58,000

3,40,000

6,40,000

 

 

17,00,000

2,24,000

 

 

 

3,00,000

2,42,000

2,86,000

7,50,000

Total   39,38,000 35,02,000

Notes to Accounts

Note
No
Particulars As On
31-3-2014
As On
31-3-2013

1

 

Reserve and Surplus

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

6,00,000

 

4,00,000

 

2

 

 

Tangible Assets

Machinery

   Less: Accumulated Depreciation

 

25,40,000

(4,00,000)

 

20,00,000

(3,00,000)

3

 

Intangible Assets

Goodwill

 

80,000

 

2,24,0000

Additional Information:-

During the year a piece of machinery, costing Rs 48,000 on which accumulated depreciation was Rs 32,000, was sold at Rs 12,000.

Prepare Cash Flow Statement.

[4.1] Analysis of Financial Statements
Chapter: [4.1] Analysis of Financial Statements
Concept: undefined >> undefined

Tata Ltd. issued 5,000, 10% Debentures of Rs 100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on debentures is payable half-yearly on 30th September and 31st March and tax deducted at source is 10%.
Pass the necessary journal entries related to the debenture interest for the half-yearly ending on 31st March 2013 and transfer of interest on debentures to Statement of Profit and Loss.

[2.2] Issue and Redemption of Debentures
Chapter: [2.2] Issue and Redemption of Debentures
Concept: undefined >> undefined

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Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3: 2. In spite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Prachi was deputed to realise the assets and pay the liabilities. She was aid Rs 1,000 as the commission for her services. The financial position of the firm was as follows:

Liabilities Rs Assets Rs

Creditors

Investment Fluctuation

Fund

Capitals

Prachi

Ritika

 

 

2,00,000

30,000

30,000

40,000

Furniture

Stock

Investments

Cash

Ishita's Capital

 

37,000

5,500

15,000

9,000

18,000

 

  84,500   84,500
[1.4] Dissolution of Partnership Firm
Chapter: [1.4] Dissolution of Partnership Firm
Concept: undefined >> undefined

State the difference between dissolution of partnership and dissolution of partnership firm.

[1.4] Dissolution of Partnership Firm
Chapter: [1.4] Dissolution of Partnership Firm
Concept: undefined >> undefined

Distinguish between firm’s debts and partner’s private debts.

[1.4] Dissolution of Partnership Firm
Chapter: [1.4] Dissolution of Partnership Firm
Concept: undefined >> undefined

Explain the process of dissolution of a partnership firm?

[1.4] Dissolution of Partnership Firm
Chapter: [1.4] Dissolution of Partnership Firm
Concept: undefined >> undefined

What is a Realisation Account?

[1.4] Dissolution of Partnership Firm
Chapter: [1.4] Dissolution of Partnership Firm
Concept: undefined >> undefined

Define Partnership Deed.

[1.1] Accounting for Partnership : Basic Concepts
Chapter: [1.1] Accounting for Partnership : Basic Concepts
Concept: undefined >> undefined

Define Partnership Deed.

[3.1] Accounting for Partnership Firms
Chapter: [3.1] Accounting for Partnership Firms
Concept: undefined >> undefined

In the absence of partnership deed, specify the rules relating to the following: 

(i) Sharing of profits and losses.

(ii) Interest on partner’s capital.

(iii) Interest on Partner’s drawings.

(iv) Interest on Partner’s loan

(v) Salary to a partner.

[3.1] Accounting for Partnership Firms
Chapter: [3.1] Accounting for Partnership Firms
Concept: undefined >> undefined

In the absence of partnership deed, specify the rules relating to the following: 

(i) Sharing of profits and losses.

(ii) Interest on partner’s capital.

(iii) Interest on Partner’s drawings.

(iv) Interest on Partner’s loan

(v) Salary to a partner.

[1.1] Accounting for Partnership : Basic Concepts
Chapter: [1.1] Accounting for Partnership : Basic Concepts
Concept: undefined >> undefined

Land and Building (book value) ₹ 1,60,000 sold for ₹ 3,00,000 through a broker who charged 2% commission on the deal. Journalise the transaction, at the time of dissolution of the firm.

[1.4] Dissolution of Partnership Firm
Chapter: [1.4] Dissolution of Partnership Firm
Concept: undefined >> undefined

Define Partnership Deed.

[1.1] Accounting for Partnership : Basic Concepts
Chapter: [1.1] Accounting for Partnership : Basic Concepts
Concept: undefined >> undefined

Define Partnership Deed.

[3.1] Accounting for Partnership Firms
Chapter: [3.1] Accounting for Partnership Firms
Concept: undefined >> undefined

In the absence of partnership deed, specify the rules relating to the following:
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.

[1.1] Accounting for Partnership : Basic Concepts
Chapter: [1.1] Accounting for Partnership : Basic Concepts
Concept: undefined >> undefined

In the absence of partnership deed, specify the rules relating to the following:
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.

[3.1] Accounting for Partnership Firms
Chapter: [3.1] Accounting for Partnership Firms
Concept: undefined >> undefined

Discuss the main provisions of the Indian Partnership Act, 1932 that are relevant to partnership accounts if there is no partnership deed.

[1.1] Accounting for Partnership : Basic Concepts
Chapter: [1.1] Accounting for Partnership : Basic Concepts
Concept: undefined >> undefined

Discuss the main provisions of the Indian Partnership Act, 1932 that are relevant to partnership accounts if there is no partnership deed.

[3.1] Accounting for Partnership Firms
Chapter: [3.1] Accounting for Partnership Firms
Concept: undefined >> undefined

Answer the following question:
State any two situations when a partnership firm can be compulsorily dissolved.

[1.4] Dissolution of Partnership Firm
Chapter: [1.4] Dissolution of Partnership Firm
Concept: undefined >> undefined

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:

  1. 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.
  2. Land and building (book value ₹ 3,00,000) were sold for ₹ 4,00,000 through a broker who charged 2% commission.
  3. 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.
  4. 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.

[1.4] Dissolution of Partnership Firm
Chapter: [1.4] Dissolution of Partnership Firm
Concept: undefined >> undefined
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