Page 1
Page 1 of 20
THIRD PRELIMINARY EXAMINATION
ACCOUNTANCY
MARKING SCHEME
CLASS XII
Time Allowed: 3 hours Maximum Marks: 80
General Instructions:
1. All questions are compulsory.
2. Please write question number before attempting a question.
3. Attempt all parts of a question at one place.
4. Use of calculators or any other calculating device not allowed.
5. Show clearly working notes wherever necessary.
PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1 P, Q and R are the partners sharing profits and losses in the ratio of 5:3:2. R retired and his
capital balance after adjustments regarding Reserves, Accumulated profits/ losses and
gain/loss on revaluation was ` 5,00,000. „R? was paid ` 6,00,000 in full settlement. Afterwards
„S? was admitted for 1/4
th
share. Calculate the amount of goodwill premium brought by „S?.
Sol: Goodwill share of C= ` 6,00,000 - ` 500,000 = ` 100,000
Firm’s Goodwill= ` 100,000x10/2= `5,00,000
D’s share in Goodwill= ` 5,00,000x1/4 = ` 1,00,000
1
2 A,B and C are partners sharing profit and loss in the ratio of 2:5:5 form l
st
Jan,2018,they de-
cided to share profit and loss in the ratio of 3:5:7. On that date General Reserve shown in
the books at `96, 000.
Pass journal entry.
1
Page 2
Page 1 of 20
THIRD PRELIMINARY EXAMINATION
ACCOUNTANCY
MARKING SCHEME
CLASS XII
Time Allowed: 3 hours Maximum Marks: 80
General Instructions:
1. All questions are compulsory.
2. Please write question number before attempting a question.
3. Attempt all parts of a question at one place.
4. Use of calculators or any other calculating device not allowed.
5. Show clearly working notes wherever necessary.
PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1 P, Q and R are the partners sharing profits and losses in the ratio of 5:3:2. R retired and his
capital balance after adjustments regarding Reserves, Accumulated profits/ losses and
gain/loss on revaluation was ` 5,00,000. „R? was paid ` 6,00,000 in full settlement. Afterwards
„S? was admitted for 1/4
th
share. Calculate the amount of goodwill premium brought by „S?.
Sol: Goodwill share of C= ` 6,00,000 - ` 500,000 = ` 100,000
Firm’s Goodwill= ` 100,000x10/2= `5,00,000
D’s share in Goodwill= ` 5,00,000x1/4 = ` 1,00,000
1
2 A,B and C are partners sharing profit and loss in the ratio of 2:5:5 form l
st
Jan,2018,they de-
cided to share profit and loss in the ratio of 3:5:7. On that date General Reserve shown in
the books at `96, 000.
Pass journal entry.
1
Page 2 of 20
Date Particulars L.F. Dr. (`) Cr. (`)
2018 General Reserve A/cDr. 96,000
Jan
1
To A’s Capital 16,000
To B’s Capital 40,000
To C’s Capital
(Adjustment of Goodwill due change in old
profit sharing ratio 2:5:5)
40,000
3 A, B and C were partners sharing profits in the ratio of 5:3:2. B retires on January 1, 2018
with A and C agreeing to share the profits in future in the ratio of 6:4. Find the gaining ratio.
Sol. Gaining Ratio = New Ratio – Old Ratio
A's Gaining Ratio = 6/10-5/10 = 1/10
C's Gaining Ratio = 4/10-2/10=2/10
Gaining Ratio = 1:2
1
4 How is dissolution of partnership different from dissolution of partnership firm?
Sol: In case of dissolution of partnership, the firm continue to do business but with a changed
agreement. In case of dissolution of partnership firm, the firm ceases to exist, the assets of the
firm are realised and its liabilities are discharged.
1
5 How much Debenture Redemption Reserve is required in case of fully convertible debentures
as per the provision of section 71 (4) of the companies act, 2013 read with Rule 18(7) of the
companies (share capital of debentures) Rules 2014.
Sol: NO DRR required.
1
6 ABC Ltd., in order to retain high caliber employees or to give them a belongingness,
company has offered a choice to the whole time directors, officers and employees, the right
to purchase or subscribe at a future date, the securities or equity shares offered by the
company at a pre-determined rate. State what type of plan ABC Ltd, has implemented here.
Sol: Employee Stock Option Scheme
1
7 State any three purposes for which securities premium can be utilized.
Sol:The amount received as securities premium can be used for following purposes (any three):
(a) In purchasing its own shares.
(b) Issuing fully paid bonus shares to the members.
(c) Writing off preliminary expenses of the company.
(d) Writing off the expenses of, or the commission paid, or discount allowed on any issue of se-
3
Page 3
Page 1 of 20
THIRD PRELIMINARY EXAMINATION
ACCOUNTANCY
MARKING SCHEME
CLASS XII
Time Allowed: 3 hours Maximum Marks: 80
General Instructions:
1. All questions are compulsory.
2. Please write question number before attempting a question.
3. Attempt all parts of a question at one place.
4. Use of calculators or any other calculating device not allowed.
5. Show clearly working notes wherever necessary.
PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1 P, Q and R are the partners sharing profits and losses in the ratio of 5:3:2. R retired and his
capital balance after adjustments regarding Reserves, Accumulated profits/ losses and
gain/loss on revaluation was ` 5,00,000. „R? was paid ` 6,00,000 in full settlement. Afterwards
„S? was admitted for 1/4
th
share. Calculate the amount of goodwill premium brought by „S?.
Sol: Goodwill share of C= ` 6,00,000 - ` 500,000 = ` 100,000
Firm’s Goodwill= ` 100,000x10/2= `5,00,000
D’s share in Goodwill= ` 5,00,000x1/4 = ` 1,00,000
1
2 A,B and C are partners sharing profit and loss in the ratio of 2:5:5 form l
st
Jan,2018,they de-
cided to share profit and loss in the ratio of 3:5:7. On that date General Reserve shown in
the books at `96, 000.
Pass journal entry.
1
Page 2 of 20
Date Particulars L.F. Dr. (`) Cr. (`)
2018 General Reserve A/cDr. 96,000
Jan
1
To A’s Capital 16,000
To B’s Capital 40,000
To C’s Capital
(Adjustment of Goodwill due change in old
profit sharing ratio 2:5:5)
40,000
3 A, B and C were partners sharing profits in the ratio of 5:3:2. B retires on January 1, 2018
with A and C agreeing to share the profits in future in the ratio of 6:4. Find the gaining ratio.
Sol. Gaining Ratio = New Ratio – Old Ratio
A's Gaining Ratio = 6/10-5/10 = 1/10
C's Gaining Ratio = 4/10-2/10=2/10
Gaining Ratio = 1:2
1
4 How is dissolution of partnership different from dissolution of partnership firm?
Sol: In case of dissolution of partnership, the firm continue to do business but with a changed
agreement. In case of dissolution of partnership firm, the firm ceases to exist, the assets of the
firm are realised and its liabilities are discharged.
1
5 How much Debenture Redemption Reserve is required in case of fully convertible debentures
as per the provision of section 71 (4) of the companies act, 2013 read with Rule 18(7) of the
companies (share capital of debentures) Rules 2014.
Sol: NO DRR required.
1
6 ABC Ltd., in order to retain high caliber employees or to give them a belongingness,
company has offered a choice to the whole time directors, officers and employees, the right
to purchase or subscribe at a future date, the securities or equity shares offered by the
company at a pre-determined rate. State what type of plan ABC Ltd, has implemented here.
Sol: Employee Stock Option Scheme
1
7 State any three purposes for which securities premium can be utilized.
Sol:The amount received as securities premium can be used for following purposes (any three):
(a) In purchasing its own shares.
(b) Issuing fully paid bonus shares to the members.
(c) Writing off preliminary expenses of the company.
(d) Writing off the expenses of, or the commission paid, or discount allowed on any issue of se-
3
Page 3 of 20
curities or debentures of the company.
(e) Providing for the premium payable on the redemption of any redeemable preferences shares
or any debentures of the company.
8
Saurabh, Viktram and Kanth were partner in the firm. Vikram retired on March31
st
, 2016. All
revaluation and goodwill adjustments were made and his claim came to be ` 3,20,000. The amount
has been transferred to Vikram's Loan a/c.The amount is paid in four equal installments plus interest
@12%.
Prepare Vikramloan a/c for first three years.
Vikram Loan a/c
Date Particulars (`) Date Particulars (`)
2017
Mar.31
By Bank a/c 118400 2016 Mar,31 By Vikram Capital
a/c
3,20,000
By Balancec/d 240000 2017 Mar,31 By Interest 38400
358400 358400
2018
Mar, 31
By Bank a/c 108800 2017 April ,1 By Balance b/d 240000
By Balancec/d 160000 2018 Mar, 31 By Interest 28800
268800 268800
2019
Mar, 31
By Bank a/c 99200 2018
April ,1
By Balance b/d 160000
2020
Mar, 31
By Balance c/d 80,000 2019
Mar, 31
By Interest 19200
179200 179200
2019
April ,1
By Balance b/d 80,000
3
9 Moon Ltd. was registered with an authorized capital of ` 5,00,000 divided into 50,000 equity
shares of ` 10 each. Since the economy was in robust shape, the company decided to offer
to the public for subscription 30,000 equity shares of ` 10 each at a premium of `. 20 per
share. Applications for 28,000 shares were received and allotment was made to all the
applicants. All calls were made and duly received except the final call of ` 2 per share on
200 shares. Show the „Share Capital? in the Balance Sheet of Star Ltd.as per the Companies
3
Page 4
Page 1 of 20
THIRD PRELIMINARY EXAMINATION
ACCOUNTANCY
MARKING SCHEME
CLASS XII
Time Allowed: 3 hours Maximum Marks: 80
General Instructions:
1. All questions are compulsory.
2. Please write question number before attempting a question.
3. Attempt all parts of a question at one place.
4. Use of calculators or any other calculating device not allowed.
5. Show clearly working notes wherever necessary.
PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1 P, Q and R are the partners sharing profits and losses in the ratio of 5:3:2. R retired and his
capital balance after adjustments regarding Reserves, Accumulated profits/ losses and
gain/loss on revaluation was ` 5,00,000. „R? was paid ` 6,00,000 in full settlement. Afterwards
„S? was admitted for 1/4
th
share. Calculate the amount of goodwill premium brought by „S?.
Sol: Goodwill share of C= ` 6,00,000 - ` 500,000 = ` 100,000
Firm’s Goodwill= ` 100,000x10/2= `5,00,000
D’s share in Goodwill= ` 5,00,000x1/4 = ` 1,00,000
1
2 A,B and C are partners sharing profit and loss in the ratio of 2:5:5 form l
st
Jan,2018,they de-
cided to share profit and loss in the ratio of 3:5:7. On that date General Reserve shown in
the books at `96, 000.
Pass journal entry.
1
Page 2 of 20
Date Particulars L.F. Dr. (`) Cr. (`)
2018 General Reserve A/cDr. 96,000
Jan
1
To A’s Capital 16,000
To B’s Capital 40,000
To C’s Capital
(Adjustment of Goodwill due change in old
profit sharing ratio 2:5:5)
40,000
3 A, B and C were partners sharing profits in the ratio of 5:3:2. B retires on January 1, 2018
with A and C agreeing to share the profits in future in the ratio of 6:4. Find the gaining ratio.
Sol. Gaining Ratio = New Ratio – Old Ratio
A's Gaining Ratio = 6/10-5/10 = 1/10
C's Gaining Ratio = 4/10-2/10=2/10
Gaining Ratio = 1:2
1
4 How is dissolution of partnership different from dissolution of partnership firm?
Sol: In case of dissolution of partnership, the firm continue to do business but with a changed
agreement. In case of dissolution of partnership firm, the firm ceases to exist, the assets of the
firm are realised and its liabilities are discharged.
1
5 How much Debenture Redemption Reserve is required in case of fully convertible debentures
as per the provision of section 71 (4) of the companies act, 2013 read with Rule 18(7) of the
companies (share capital of debentures) Rules 2014.
Sol: NO DRR required.
1
6 ABC Ltd., in order to retain high caliber employees or to give them a belongingness,
company has offered a choice to the whole time directors, officers and employees, the right
to purchase or subscribe at a future date, the securities or equity shares offered by the
company at a pre-determined rate. State what type of plan ABC Ltd, has implemented here.
Sol: Employee Stock Option Scheme
1
7 State any three purposes for which securities premium can be utilized.
Sol:The amount received as securities premium can be used for following purposes (any three):
(a) In purchasing its own shares.
(b) Issuing fully paid bonus shares to the members.
(c) Writing off preliminary expenses of the company.
(d) Writing off the expenses of, or the commission paid, or discount allowed on any issue of se-
3
Page 3 of 20
curities or debentures of the company.
(e) Providing for the premium payable on the redemption of any redeemable preferences shares
or any debentures of the company.
8
Saurabh, Viktram and Kanth were partner in the firm. Vikram retired on March31
st
, 2016. All
revaluation and goodwill adjustments were made and his claim came to be ` 3,20,000. The amount
has been transferred to Vikram's Loan a/c.The amount is paid in four equal installments plus interest
@12%.
Prepare Vikramloan a/c for first three years.
Vikram Loan a/c
Date Particulars (`) Date Particulars (`)
2017
Mar.31
By Bank a/c 118400 2016 Mar,31 By Vikram Capital
a/c
3,20,000
By Balancec/d 240000 2017 Mar,31 By Interest 38400
358400 358400
2018
Mar, 31
By Bank a/c 108800 2017 April ,1 By Balance b/d 240000
By Balancec/d 160000 2018 Mar, 31 By Interest 28800
268800 268800
2019
Mar, 31
By Bank a/c 99200 2018
April ,1
By Balance b/d 160000
2020
Mar, 31
By Balance c/d 80,000 2019
Mar, 31
By Interest 19200
179200 179200
2019
April ,1
By Balance b/d 80,000
3
9 Moon Ltd. was registered with an authorized capital of ` 5,00,000 divided into 50,000 equity
shares of ` 10 each. Since the economy was in robust shape, the company decided to offer
to the public for subscription 30,000 equity shares of ` 10 each at a premium of `. 20 per
share. Applications for 28,000 shares were received and allotment was made to all the
applicants. All calls were made and duly received except the final call of ` 2 per share on
200 shares. Show the „Share Capital? in the Balance Sheet of Star Ltd.as per the Companies
3
Page 4 of 20
Act 2013. Also prepare Notes to Accounts for the same.
Sol:
Balance sheet of Moon Ltd. as at
Particular Note No. `
Equity and Liabilities
(1) Shareholders funds
Share capital
1
2,79,600
Note No 1:
1. Share Capital
Authorised Share Capital
50,000 Shares of ` 10 each
Issued Share Capital
30,000 Shares of ` 10 each
Subscribed Share Capital
Subscribed and not fully paid
28,000 Shares of `10 each 2,80,000
Less:calls in arrears (400)
5,00,000
3,00,000
2,79,600
Page 5
Page 1 of 20
THIRD PRELIMINARY EXAMINATION
ACCOUNTANCY
MARKING SCHEME
CLASS XII
Time Allowed: 3 hours Maximum Marks: 80
General Instructions:
1. All questions are compulsory.
2. Please write question number before attempting a question.
3. Attempt all parts of a question at one place.
4. Use of calculators or any other calculating device not allowed.
5. Show clearly working notes wherever necessary.
PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1 P, Q and R are the partners sharing profits and losses in the ratio of 5:3:2. R retired and his
capital balance after adjustments regarding Reserves, Accumulated profits/ losses and
gain/loss on revaluation was ` 5,00,000. „R? was paid ` 6,00,000 in full settlement. Afterwards
„S? was admitted for 1/4
th
share. Calculate the amount of goodwill premium brought by „S?.
Sol: Goodwill share of C= ` 6,00,000 - ` 500,000 = ` 100,000
Firm’s Goodwill= ` 100,000x10/2= `5,00,000
D’s share in Goodwill= ` 5,00,000x1/4 = ` 1,00,000
1
2 A,B and C are partners sharing profit and loss in the ratio of 2:5:5 form l
st
Jan,2018,they de-
cided to share profit and loss in the ratio of 3:5:7. On that date General Reserve shown in
the books at `96, 000.
Pass journal entry.
1
Page 2 of 20
Date Particulars L.F. Dr. (`) Cr. (`)
2018 General Reserve A/cDr. 96,000
Jan
1
To A’s Capital 16,000
To B’s Capital 40,000
To C’s Capital
(Adjustment of Goodwill due change in old
profit sharing ratio 2:5:5)
40,000
3 A, B and C were partners sharing profits in the ratio of 5:3:2. B retires on January 1, 2018
with A and C agreeing to share the profits in future in the ratio of 6:4. Find the gaining ratio.
Sol. Gaining Ratio = New Ratio – Old Ratio
A's Gaining Ratio = 6/10-5/10 = 1/10
C's Gaining Ratio = 4/10-2/10=2/10
Gaining Ratio = 1:2
1
4 How is dissolution of partnership different from dissolution of partnership firm?
Sol: In case of dissolution of partnership, the firm continue to do business but with a changed
agreement. In case of dissolution of partnership firm, the firm ceases to exist, the assets of the
firm are realised and its liabilities are discharged.
1
5 How much Debenture Redemption Reserve is required in case of fully convertible debentures
as per the provision of section 71 (4) of the companies act, 2013 read with Rule 18(7) of the
companies (share capital of debentures) Rules 2014.
Sol: NO DRR required.
1
6 ABC Ltd., in order to retain high caliber employees or to give them a belongingness,
company has offered a choice to the whole time directors, officers and employees, the right
to purchase or subscribe at a future date, the securities or equity shares offered by the
company at a pre-determined rate. State what type of plan ABC Ltd, has implemented here.
Sol: Employee Stock Option Scheme
1
7 State any three purposes for which securities premium can be utilized.
Sol:The amount received as securities premium can be used for following purposes (any three):
(a) In purchasing its own shares.
(b) Issuing fully paid bonus shares to the members.
(c) Writing off preliminary expenses of the company.
(d) Writing off the expenses of, or the commission paid, or discount allowed on any issue of se-
3
Page 3 of 20
curities or debentures of the company.
(e) Providing for the premium payable on the redemption of any redeemable preferences shares
or any debentures of the company.
8
Saurabh, Viktram and Kanth were partner in the firm. Vikram retired on March31
st
, 2016. All
revaluation and goodwill adjustments were made and his claim came to be ` 3,20,000. The amount
has been transferred to Vikram's Loan a/c.The amount is paid in four equal installments plus interest
@12%.
Prepare Vikramloan a/c for first three years.
Vikram Loan a/c
Date Particulars (`) Date Particulars (`)
2017
Mar.31
By Bank a/c 118400 2016 Mar,31 By Vikram Capital
a/c
3,20,000
By Balancec/d 240000 2017 Mar,31 By Interest 38400
358400 358400
2018
Mar, 31
By Bank a/c 108800 2017 April ,1 By Balance b/d 240000
By Balancec/d 160000 2018 Mar, 31 By Interest 28800
268800 268800
2019
Mar, 31
By Bank a/c 99200 2018
April ,1
By Balance b/d 160000
2020
Mar, 31
By Balance c/d 80,000 2019
Mar, 31
By Interest 19200
179200 179200
2019
April ,1
By Balance b/d 80,000
3
9 Moon Ltd. was registered with an authorized capital of ` 5,00,000 divided into 50,000 equity
shares of ` 10 each. Since the economy was in robust shape, the company decided to offer
to the public for subscription 30,000 equity shares of ` 10 each at a premium of `. 20 per
share. Applications for 28,000 shares were received and allotment was made to all the
applicants. All calls were made and duly received except the final call of ` 2 per share on
200 shares. Show the „Share Capital? in the Balance Sheet of Star Ltd.as per the Companies
3
Page 4 of 20
Act 2013. Also prepare Notes to Accounts for the same.
Sol:
Balance sheet of Moon Ltd. as at
Particular Note No. `
Equity and Liabilities
(1) Shareholders funds
Share capital
1
2,79,600
Note No 1:
1. Share Capital
Authorised Share Capital
50,000 Shares of ` 10 each
Issued Share Capital
30,000 Shares of ` 10 each
Subscribed Share Capital
Subscribed and not fully paid
28,000 Shares of `10 each 2,80,000
Less:calls in arrears (400)
5,00,000
3,00,000
2,79,600
Page 5 of 20
10 Rise LTD had issued 40,000, 8% Debentures of ` 100 each. Redeemable on 31
st
March
2017. It was decided to invest 15% of the face value of debentures to be redeemed
towards debenture redemption investment on 30
th
April 2016. Investments were en-
cashed and Debentures were redeemed on due date. Record the journal entries for
redemption of debentures.
Sol:
Date Particulars L.F Debit Credit
30
th
April
2016
30
th
April
2017
31
st
March
2017
March31
st
31
st
march
31
st
march
Debenture Redemption investment A/c Dr
To Bank A/c
(Being investment made)
Bank A/c Dr
To Debenture redemption investment A/c
(Being investment encashed)
Surplus in statement of P/L A/C Dr
D.R.R A/c
(Being transfer of profits equal to 25%of the
nominal value of debenture issued)
8% Debenture A/c Dr
To Debenture holders A/c
(Being amount due for Redemption)
Debenture holders A/c Dr
To Bank A/c
(Being payment made to Debenture holders)
D.R.R A/c Dr
To General Reserve A/c
( Being Amount transferred to General Reserve)
6,00000
600000
10,00000
40,00000
40,00000
10,00000
600000
600000
10,00000
40,00000
40,00000
10,00000
3
11 What journal entries would be passed for the following transactions on the dissolution of a
firm, after various assets (other than cash) and third parties liabilities have been transferred
to Realization account?
i Partner “A” took over the stock worth `80, 000.
ii Firm paid `40, 000 as compensation to employees.
iii Sundry creditors amounted to `36, 000 which were settled at a discount of 15%.
iv There was an unrecorded bike of `40, 000 which was taken over by partner “B” at
4
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