CBSE Accountancy Past year paper Delhi (Set - 2) Solution - 2014, Class 12 | Additional Study Material for Commerce PDF Download

 Page 1


  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
CBSE 
Class XII Accountancy 
Delhi Board Paper_Set2–2014- Solution 
 
SECTION A 
1. Answer :  
As per the Section 78 of the Companies Act of 1956, states the use of the amount received as ‘Securities 
Premium’ one of which is issue of bonus shares to the members of the company. 
2. Answer : 
The heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm as it is the result 
of the combined efforts of all the partners. 
 
3. Answer : 
The maximum amount of discount that can be allowed at the time of reissue depends upon the 
following two circumstances: 
1. In case of the forfeited shares were originally issued at par or at premium, then these shares can 
be reissued with the maximum discount = amount forfeited on the re-issued share.  
2. In case of the forfeited shares were originally issued at discount, then these forfeited shares can 
be reissued with the maximum discount equal = amount forfeited on the re-issued share + the 
discount allowed at the time of original issue. 
 
4. Answer : 
A debenture is a written debt instrument issued in the form of a certificate containing provisions 
regarding the repayment of the principal sum after a fixed period of time and payment of interest at 
regular intervals. 
 
5. Answer : 
Basis of Difference Dissolution of Partnership Dissolution of Partnership Firm 
Closure of Books Books of accounts are not closed 
forever, as there is only change in the 
existing agreement between the 
partners. 
Books of accounts are closed. As the 
business is discontinued. 
 
6. Answer : 
Profit sharing ratio given as 1/2 ,  2/5 and 1/10 i.e. 5:4:1 after simplification. 
Now, as Z retires; by striking of Z's share the new profit sharing ratio between X and Y will be 5:4. 
 
7. Answer : 
When there is a change in the existing partnership agreement which causes the termination of the 
agreement and a new partnership agreement comes into form it is called as ‘Reconstitution of a 
partnership firm’. 
 
8. Answer : 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
2012      
Sept.30 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
 
Dr.  
12,000  
Page 2


  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
CBSE 
Class XII Accountancy 
Delhi Board Paper_Set2–2014- Solution 
 
SECTION A 
1. Answer :  
As per the Section 78 of the Companies Act of 1956, states the use of the amount received as ‘Securities 
Premium’ one of which is issue of bonus shares to the members of the company. 
2. Answer : 
The heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm as it is the result 
of the combined efforts of all the partners. 
 
3. Answer : 
The maximum amount of discount that can be allowed at the time of reissue depends upon the 
following two circumstances: 
1. In case of the forfeited shares were originally issued at par or at premium, then these shares can 
be reissued with the maximum discount = amount forfeited on the re-issued share.  
2. In case of the forfeited shares were originally issued at discount, then these forfeited shares can 
be reissued with the maximum discount equal = amount forfeited on the re-issued share + the 
discount allowed at the time of original issue. 
 
4. Answer : 
A debenture is a written debt instrument issued in the form of a certificate containing provisions 
regarding the repayment of the principal sum after a fixed period of time and payment of interest at 
regular intervals. 
 
5. Answer : 
Basis of Difference Dissolution of Partnership Dissolution of Partnership Firm 
Closure of Books Books of accounts are not closed 
forever, as there is only change in the 
existing agreement between the 
partners. 
Books of accounts are closed. As the 
business is discontinued. 
 
6. Answer : 
Profit sharing ratio given as 1/2 ,  2/5 and 1/10 i.e. 5:4:1 after simplification. 
Now, as Z retires; by striking of Z's share the new profit sharing ratio between X and Y will be 5:4. 
 
7. Answer : 
When there is a change in the existing partnership agreement which causes the termination of the 
agreement and a new partnership agreement comes into form it is called as ‘Reconstitution of a 
partnership firm’. 
 
8. Answer : 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
2012      
Sept.30 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
 
Dr.  
12,000  
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
 -------- To Income Tax Payable A/c (12,000 ×10%)    1,200 
 -------- To Debenture holders’ A/c    10,800 
 (Being amount of interest due for 6 month and tax deducted 
at source) 
  
  
      
Sept. 30 Debenture holders’ A/c Dr.  10,800  
 -------- To Bank A/c    10,800 
 (Being interest paid to the debenture holders)     
      
Sept.30 Income Tax Payable A/c Dr.  1,200  
 -------- To Bank  A/c    1,200 
 (Being payment of tax on interest on denatures)     
      
2013      
Mar.31 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
  
Dr.  
12,000  
 -------- To Income Tax Payable A/c (12,000 ×10%)    1,200 
 -------- To Debenture holders’ A/c    10,800 
 (Being amount of interest due for 6 month and tax deducted 
at source) 
  
  
      
Mar.31 Debenture holders’ A/c Dr.  10,800  
 -------- To Bank  A/c    10,800 
 (Being interest paid to the debenture holders)     
      
Mar.31 Income Tax Payable A/c Dr.  1,200  
 -------- To Bank  A/c    1,200 
 (Being payment of tax on interest on denatures)     
      
Mar.31 Statement of Profit  and Loss A/c Dr.  24,000  
 -------- To interest on debentures  A/c    24,000 
 (Being interest or debentures transferred to statement of 
profit and loss) 
  
  
      
 
9. Answer  
Aditi is entered into partnership for 1/6
th
 share in future profits and contributed capital `1,00,000. 
Calculating the firm's capital  
Firm's Capital = New Partners' Capital x Reciprocal of her share i.e.. = 1,00,000 × 6 = `6,00,000 
However, the total capital as at that date is `4,50,000 (i.e. 2,00,000 + 1,50,000 + 1,00,000) 
Difference of 1,50,000 is hidden goodwill. 
Aditi's share in goodwill = 1/6th of 1,50,000 = ` 25,000 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
      
 Cash A/c Dr.  1,25,000  
 -------- To Aditi’s Capital A/c    1,00,000 
 --------To Premium for Goodwill A/c    25,000 
 (Being capital and goodwill brought on Aditi’s admission)     
      
 Aditi’s Capital  A/c Dr.  25,000  
         To Saloni’s Capital A/c    17,500 
         To Shrishti’s Capital A/c    7,500 
 (Being goodwill distributed in sacrificing ratio of 7:3)     
 
 
Page 3


  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
CBSE 
Class XII Accountancy 
Delhi Board Paper_Set2–2014- Solution 
 
SECTION A 
1. Answer :  
As per the Section 78 of the Companies Act of 1956, states the use of the amount received as ‘Securities 
Premium’ one of which is issue of bonus shares to the members of the company. 
2. Answer : 
The heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm as it is the result 
of the combined efforts of all the partners. 
 
3. Answer : 
The maximum amount of discount that can be allowed at the time of reissue depends upon the 
following two circumstances: 
1. In case of the forfeited shares were originally issued at par or at premium, then these shares can 
be reissued with the maximum discount = amount forfeited on the re-issued share.  
2. In case of the forfeited shares were originally issued at discount, then these forfeited shares can 
be reissued with the maximum discount equal = amount forfeited on the re-issued share + the 
discount allowed at the time of original issue. 
 
4. Answer : 
A debenture is a written debt instrument issued in the form of a certificate containing provisions 
regarding the repayment of the principal sum after a fixed period of time and payment of interest at 
regular intervals. 
 
5. Answer : 
Basis of Difference Dissolution of Partnership Dissolution of Partnership Firm 
Closure of Books Books of accounts are not closed 
forever, as there is only change in the 
existing agreement between the 
partners. 
Books of accounts are closed. As the 
business is discontinued. 
 
6. Answer : 
Profit sharing ratio given as 1/2 ,  2/5 and 1/10 i.e. 5:4:1 after simplification. 
Now, as Z retires; by striking of Z's share the new profit sharing ratio between X and Y will be 5:4. 
 
7. Answer : 
When there is a change in the existing partnership agreement which causes the termination of the 
agreement and a new partnership agreement comes into form it is called as ‘Reconstitution of a 
partnership firm’. 
 
8. Answer : 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
2012      
Sept.30 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
 
Dr.  
12,000  
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
 -------- To Income Tax Payable A/c (12,000 ×10%)    1,200 
 -------- To Debenture holders’ A/c    10,800 
 (Being amount of interest due for 6 month and tax deducted 
at source) 
  
  
      
Sept. 30 Debenture holders’ A/c Dr.  10,800  
 -------- To Bank A/c    10,800 
 (Being interest paid to the debenture holders)     
      
Sept.30 Income Tax Payable A/c Dr.  1,200  
 -------- To Bank  A/c    1,200 
 (Being payment of tax on interest on denatures)     
      
2013      
Mar.31 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
  
Dr.  
12,000  
 -------- To Income Tax Payable A/c (12,000 ×10%)    1,200 
 -------- To Debenture holders’ A/c    10,800 
 (Being amount of interest due for 6 month and tax deducted 
at source) 
  
  
      
Mar.31 Debenture holders’ A/c Dr.  10,800  
 -------- To Bank  A/c    10,800 
 (Being interest paid to the debenture holders)     
      
Mar.31 Income Tax Payable A/c Dr.  1,200  
 -------- To Bank  A/c    1,200 
 (Being payment of tax on interest on denatures)     
      
Mar.31 Statement of Profit  and Loss A/c Dr.  24,000  
 -------- To interest on debentures  A/c    24,000 
 (Being interest or debentures transferred to statement of 
profit and loss) 
  
  
      
 
9. Answer  
Aditi is entered into partnership for 1/6
th
 share in future profits and contributed capital `1,00,000. 
Calculating the firm's capital  
Firm's Capital = New Partners' Capital x Reciprocal of her share i.e.. = 1,00,000 × 6 = `6,00,000 
However, the total capital as at that date is `4,50,000 (i.e. 2,00,000 + 1,50,000 + 1,00,000) 
Difference of 1,50,000 is hidden goodwill. 
Aditi's share in goodwill = 1/6th of 1,50,000 = ` 25,000 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
      
 Cash A/c Dr.  1,25,000  
 -------- To Aditi’s Capital A/c    1,00,000 
 --------To Premium for Goodwill A/c    25,000 
 (Being capital and goodwill brought on Aditi’s admission)     
      
 Aditi’s Capital  A/c Dr.  25,000  
         To Saloni’s Capital A/c    17,500 
         To Shrishti’s Capital A/c    7,500 
 (Being goodwill distributed in sacrificing ratio of 7:3)     
 
 
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
10. Answer : 
Pharma Ltd. 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
      
 12% Debenture  A/c Dr.  2,50,000  
 --------To Debenture holder A/c    2,35,000 
 --------To Discount on Issue of Debenture  A/c    15,000 
 (Being 2,500 12% debenture of `100 each issue at a 
discount of 6% due for redemption) 
  
  
      
 Debenture A/c Dr.  2,35,000  
 --------To Equity Share Capital A/c    1,88,000 
 --------To Securities premium A/c    47,000 
 (Being 1,880 equity share of `100 each issued at premium of 
25% debenture holders) 
  
  
Working Note: 
Amount Payable 2,35,000
Number of share to be issued = 1,880 share
Issue Price 125
??
  
Jain Ltd. 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
 12% Debenture  A/c Dr.  2,00,000  
 --------To Debenture holder A/c    2,00,000 
 (Being 2,000 12% debenture of `100 each due for 
redemption) 
  
  
      
 Debenture A/c   2,00,000  
 --------To Equity share capital A/c Dr.   1,60,000 
 --------To Securities Premium A/c    40,000 
 (Being 1,600 equity share of `100 each issued at premium of 
25% to  debenture holders) 
  
  
Amount Payable 2,00,000 2,50,000
Number of share to be issued = 1,600 share
Issue Price (100 25) 125
? ? ?
?
 
 
11. Answer : 
(a) 
 
Journal Entries 
Date  Particulars 
 
L.F.  
Debit 
` 
Credit  
` 
 
Machinery  A/c 
Dr. 
 
7,20,000 
 
 
--------To Kundan A/c 
   
7,20,000 
 
(Being machinery is purchased from Kundan Ltd. For `7,20,000) 
    
      
 
Kundan Ltd. A/c 
Dr. 
 
7,20,000 
 
 
Discount on Issue of Share A/c 
Dr. 
 
80,000 
 
 
--------To Equity Share capital A/c 
   
8,00,000 
 
(Being issue of 8,000 share at `100 each at a discount of `10 per 
share) 
     
Page 4


  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
CBSE 
Class XII Accountancy 
Delhi Board Paper_Set2–2014- Solution 
 
SECTION A 
1. Answer :  
As per the Section 78 of the Companies Act of 1956, states the use of the amount received as ‘Securities 
Premium’ one of which is issue of bonus shares to the members of the company. 
2. Answer : 
The heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm as it is the result 
of the combined efforts of all the partners. 
 
3. Answer : 
The maximum amount of discount that can be allowed at the time of reissue depends upon the 
following two circumstances: 
1. In case of the forfeited shares were originally issued at par or at premium, then these shares can 
be reissued with the maximum discount = amount forfeited on the re-issued share.  
2. In case of the forfeited shares were originally issued at discount, then these forfeited shares can 
be reissued with the maximum discount equal = amount forfeited on the re-issued share + the 
discount allowed at the time of original issue. 
 
4. Answer : 
A debenture is a written debt instrument issued in the form of a certificate containing provisions 
regarding the repayment of the principal sum after a fixed period of time and payment of interest at 
regular intervals. 
 
5. Answer : 
Basis of Difference Dissolution of Partnership Dissolution of Partnership Firm 
Closure of Books Books of accounts are not closed 
forever, as there is only change in the 
existing agreement between the 
partners. 
Books of accounts are closed. As the 
business is discontinued. 
 
6. Answer : 
Profit sharing ratio given as 1/2 ,  2/5 and 1/10 i.e. 5:4:1 after simplification. 
Now, as Z retires; by striking of Z's share the new profit sharing ratio between X and Y will be 5:4. 
 
7. Answer : 
When there is a change in the existing partnership agreement which causes the termination of the 
agreement and a new partnership agreement comes into form it is called as ‘Reconstitution of a 
partnership firm’. 
 
8. Answer : 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
2012      
Sept.30 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
 
Dr.  
12,000  
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
 -------- To Income Tax Payable A/c (12,000 ×10%)    1,200 
 -------- To Debenture holders’ A/c    10,800 
 (Being amount of interest due for 6 month and tax deducted 
at source) 
  
  
      
Sept. 30 Debenture holders’ A/c Dr.  10,800  
 -------- To Bank A/c    10,800 
 (Being interest paid to the debenture holders)     
      
Sept.30 Income Tax Payable A/c Dr.  1,200  
 -------- To Bank  A/c    1,200 
 (Being payment of tax on interest on denatures)     
      
2013      
Mar.31 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
  
Dr.  
12,000  
 -------- To Income Tax Payable A/c (12,000 ×10%)    1,200 
 -------- To Debenture holders’ A/c    10,800 
 (Being amount of interest due for 6 month and tax deducted 
at source) 
  
  
      
Mar.31 Debenture holders’ A/c Dr.  10,800  
 -------- To Bank  A/c    10,800 
 (Being interest paid to the debenture holders)     
      
Mar.31 Income Tax Payable A/c Dr.  1,200  
 -------- To Bank  A/c    1,200 
 (Being payment of tax on interest on denatures)     
      
Mar.31 Statement of Profit  and Loss A/c Dr.  24,000  
 -------- To interest on debentures  A/c    24,000 
 (Being interest or debentures transferred to statement of 
profit and loss) 
  
  
      
 
9. Answer  
Aditi is entered into partnership for 1/6
th
 share in future profits and contributed capital `1,00,000. 
Calculating the firm's capital  
Firm's Capital = New Partners' Capital x Reciprocal of her share i.e.. = 1,00,000 × 6 = `6,00,000 
However, the total capital as at that date is `4,50,000 (i.e. 2,00,000 + 1,50,000 + 1,00,000) 
Difference of 1,50,000 is hidden goodwill. 
Aditi's share in goodwill = 1/6th of 1,50,000 = ` 25,000 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
      
 Cash A/c Dr.  1,25,000  
 -------- To Aditi’s Capital A/c    1,00,000 
 --------To Premium for Goodwill A/c    25,000 
 (Being capital and goodwill brought on Aditi’s admission)     
      
 Aditi’s Capital  A/c Dr.  25,000  
         To Saloni’s Capital A/c    17,500 
         To Shrishti’s Capital A/c    7,500 
 (Being goodwill distributed in sacrificing ratio of 7:3)     
 
 
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
10. Answer : 
Pharma Ltd. 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
      
 12% Debenture  A/c Dr.  2,50,000  
 --------To Debenture holder A/c    2,35,000 
 --------To Discount on Issue of Debenture  A/c    15,000 
 (Being 2,500 12% debenture of `100 each issue at a 
discount of 6% due for redemption) 
  
  
      
 Debenture A/c Dr.  2,35,000  
 --------To Equity Share Capital A/c    1,88,000 
 --------To Securities premium A/c    47,000 
 (Being 1,880 equity share of `100 each issued at premium of 
25% debenture holders) 
  
  
Working Note: 
Amount Payable 2,35,000
Number of share to be issued = 1,880 share
Issue Price 125
??
  
Jain Ltd. 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
 12% Debenture  A/c Dr.  2,00,000  
 --------To Debenture holder A/c    2,00,000 
 (Being 2,000 12% debenture of `100 each due for 
redemption) 
  
  
      
 Debenture A/c   2,00,000  
 --------To Equity share capital A/c Dr.   1,60,000 
 --------To Securities Premium A/c    40,000 
 (Being 1,600 equity share of `100 each issued at premium of 
25% to  debenture holders) 
  
  
Amount Payable 2,00,000 2,50,000
Number of share to be issued = 1,600 share
Issue Price (100 25) 125
? ? ?
?
 
 
11. Answer : 
(a) 
 
Journal Entries 
Date  Particulars 
 
L.F.  
Debit 
` 
Credit  
` 
 
Machinery  A/c 
Dr. 
 
7,20,000 
 
 
--------To Kundan A/c 
   
7,20,000 
 
(Being machinery is purchased from Kundan Ltd. For `7,20,000) 
    
      
 
Kundan Ltd. A/c 
Dr. 
 
7,20,000 
 
 
Discount on Issue of Share A/c 
Dr. 
 
80,000 
 
 
--------To Equity Share capital A/c 
   
8,00,000 
 
(Being issue of 8,000 share at `100 each at a discount of `10 per 
share) 
     
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
Working Note: 
??
?
Calculation of Number of shares to be issued ( at discount of Rs 10)
Purchase price 7,20,000
No.of shares = 8,000 share
Issue Price 90(100 10)
  
(b) 
Journal Entries 
Date  Particulars 
 
L.F.  
Debit 
` 
Credit  
` 
 
Plant and Machinery A/c Dr. 
 
90,000 
 
 
Building A/c Dr. 
 
90,000 
 
 
Sundry Debtors A/c Dr. 
 
30,000 
 
 
Stock A/c Dr. 
 
50,000 
 
 
Cash A/c Dr. 
 
20,000 
 
 
--------To Creditors A/c 
   
20,000 
 
--------To Vikash Ltd.  A/c 
   
2,50,000 
 
--------To Capital Reserve  A/c (balancing Figure) 
   
10,000 
 
(Being purchase of business from Vikash ltd.) 
    
 
 
    
 
Vikas Ltd. A/c Dr. 
 
2,50,000 
 
 
--------To Equity Share Capital A/c 
   
2,20,000 
 
--------To Bank A/c 
   
30,000 
 
(Being issue of 22,000 share of `10 each and remaining payment 
is made through bank draft) 
    Working Note: 
Capital Reserve = Net Assets – Purchase Consideration 
= 2,60,000 – 2, 50,000 
=10,000 
 
12. Answer : 
(a) Value involved  in the above scenario: 
i. Social Welfare 
ii. Fulfilling Duties 
(b)  
Profit and Loss Appropriation Account 
For the year ended April 01,2012 
Dr.    Cr. 
Particulars  ` Particulars ` 
To Interest on capital A/c:   By Profit and Loss A/c 3,37,800 
----Satnam 25,500    
----Qureshi 
12,300 
37,800   
To Profit transferred to:     
----Satnam’s capital A/c 1,20,000    
----Qureshi’s Capital A/c  1,20,000    
----Juliee’s Capital A/c 60,000 3,00,000   
  3,37,800  3,37,800 
Working Capital: 
Calculation of Interest on Capital: 
Total Interest on Satnam’s capital =24,000+1,500= `25,500 
Total Interest on Qureshi’s Capital = 12,000+300 =`12,300 
 
Page 5


  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
CBSE 
Class XII Accountancy 
Delhi Board Paper_Set2–2014- Solution 
 
SECTION A 
1. Answer :  
As per the Section 78 of the Companies Act of 1956, states the use of the amount received as ‘Securities 
Premium’ one of which is issue of bonus shares to the members of the company. 
2. Answer : 
The heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm as it is the result 
of the combined efforts of all the partners. 
 
3. Answer : 
The maximum amount of discount that can be allowed at the time of reissue depends upon the 
following two circumstances: 
1. In case of the forfeited shares were originally issued at par or at premium, then these shares can 
be reissued with the maximum discount = amount forfeited on the re-issued share.  
2. In case of the forfeited shares were originally issued at discount, then these forfeited shares can 
be reissued with the maximum discount equal = amount forfeited on the re-issued share + the 
discount allowed at the time of original issue. 
 
4. Answer : 
A debenture is a written debt instrument issued in the form of a certificate containing provisions 
regarding the repayment of the principal sum after a fixed period of time and payment of interest at 
regular intervals. 
 
5. Answer : 
Basis of Difference Dissolution of Partnership Dissolution of Partnership Firm 
Closure of Books Books of accounts are not closed 
forever, as there is only change in the 
existing agreement between the 
partners. 
Books of accounts are closed. As the 
business is discontinued. 
 
6. Answer : 
Profit sharing ratio given as 1/2 ,  2/5 and 1/10 i.e. 5:4:1 after simplification. 
Now, as Z retires; by striking of Z's share the new profit sharing ratio between X and Y will be 5:4. 
 
7. Answer : 
When there is a change in the existing partnership agreement which causes the termination of the 
agreement and a new partnership agreement comes into form it is called as ‘Reconstitution of a 
partnership firm’. 
 
8. Answer : 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
2012      
Sept.30 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
 
Dr.  
12,000  
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
 -------- To Income Tax Payable A/c (12,000 ×10%)    1,200 
 -------- To Debenture holders’ A/c    10,800 
 (Being amount of interest due for 6 month and tax deducted 
at source) 
  
  
      
Sept. 30 Debenture holders’ A/c Dr.  10,800  
 -------- To Bank A/c    10,800 
 (Being interest paid to the debenture holders)     
      
Sept.30 Income Tax Payable A/c Dr.  1,200  
 -------- To Bank  A/c    1,200 
 (Being payment of tax on interest on denatures)     
      
2013      
Mar.31 
Debenture Interest A/c
??
??
??
??
12 6
2,00,000
100 12
  
Dr.  
12,000  
 -------- To Income Tax Payable A/c (12,000 ×10%)    1,200 
 -------- To Debenture holders’ A/c    10,800 
 (Being amount of interest due for 6 month and tax deducted 
at source) 
  
  
      
Mar.31 Debenture holders’ A/c Dr.  10,800  
 -------- To Bank  A/c    10,800 
 (Being interest paid to the debenture holders)     
      
Mar.31 Income Tax Payable A/c Dr.  1,200  
 -------- To Bank  A/c    1,200 
 (Being payment of tax on interest on denatures)     
      
Mar.31 Statement of Profit  and Loss A/c Dr.  24,000  
 -------- To interest on debentures  A/c    24,000 
 (Being interest or debentures transferred to statement of 
profit and loss) 
  
  
      
 
9. Answer  
Aditi is entered into partnership for 1/6
th
 share in future profits and contributed capital `1,00,000. 
Calculating the firm's capital  
Firm's Capital = New Partners' Capital x Reciprocal of her share i.e.. = 1,00,000 × 6 = `6,00,000 
However, the total capital as at that date is `4,50,000 (i.e. 2,00,000 + 1,50,000 + 1,00,000) 
Difference of 1,50,000 is hidden goodwill. 
Aditi's share in goodwill = 1/6th of 1,50,000 = ` 25,000 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
      
 Cash A/c Dr.  1,25,000  
 -------- To Aditi’s Capital A/c    1,00,000 
 --------To Premium for Goodwill A/c    25,000 
 (Being capital and goodwill brought on Aditi’s admission)     
      
 Aditi’s Capital  A/c Dr.  25,000  
         To Saloni’s Capital A/c    17,500 
         To Shrishti’s Capital A/c    7,500 
 (Being goodwill distributed in sacrificing ratio of 7:3)     
 
 
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
10. Answer : 
Pharma Ltd. 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
      
 12% Debenture  A/c Dr.  2,50,000  
 --------To Debenture holder A/c    2,35,000 
 --------To Discount on Issue of Debenture  A/c    15,000 
 (Being 2,500 12% debenture of `100 each issue at a 
discount of 6% due for redemption) 
  
  
      
 Debenture A/c Dr.  2,35,000  
 --------To Equity Share Capital A/c    1,88,000 
 --------To Securities premium A/c    47,000 
 (Being 1,880 equity share of `100 each issued at premium of 
25% debenture holders) 
  
  
Working Note: 
Amount Payable 2,35,000
Number of share to be issued = 1,880 share
Issue Price 125
??
  
Jain Ltd. 
Journal 
Date Particulars  L.F. 
Dr. 
` 
Cr. 
` 
 12% Debenture  A/c Dr.  2,00,000  
 --------To Debenture holder A/c    2,00,000 
 (Being 2,000 12% debenture of `100 each due for 
redemption) 
  
  
      
 Debenture A/c   2,00,000  
 --------To Equity share capital A/c Dr.   1,60,000 
 --------To Securities Premium A/c    40,000 
 (Being 1,600 equity share of `100 each issued at premium of 
25% to  debenture holders) 
  
  
Amount Payable 2,00,000 2,50,000
Number of share to be issued = 1,600 share
Issue Price (100 25) 125
? ? ?
?
 
 
11. Answer : 
(a) 
 
Journal Entries 
Date  Particulars 
 
L.F.  
Debit 
` 
Credit  
` 
 
Machinery  A/c 
Dr. 
 
7,20,000 
 
 
--------To Kundan A/c 
   
7,20,000 
 
(Being machinery is purchased from Kundan Ltd. For `7,20,000) 
    
      
 
Kundan Ltd. A/c 
Dr. 
 
7,20,000 
 
 
Discount on Issue of Share A/c 
Dr. 
 
80,000 
 
 
--------To Equity Share capital A/c 
   
8,00,000 
 
(Being issue of 8,000 share at `100 each at a discount of `10 per 
share) 
     
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
Working Note: 
??
?
Calculation of Number of shares to be issued ( at discount of Rs 10)
Purchase price 7,20,000
No.of shares = 8,000 share
Issue Price 90(100 10)
  
(b) 
Journal Entries 
Date  Particulars 
 
L.F.  
Debit 
` 
Credit  
` 
 
Plant and Machinery A/c Dr. 
 
90,000 
 
 
Building A/c Dr. 
 
90,000 
 
 
Sundry Debtors A/c Dr. 
 
30,000 
 
 
Stock A/c Dr. 
 
50,000 
 
 
Cash A/c Dr. 
 
20,000 
 
 
--------To Creditors A/c 
   
20,000 
 
--------To Vikash Ltd.  A/c 
   
2,50,000 
 
--------To Capital Reserve  A/c (balancing Figure) 
   
10,000 
 
(Being purchase of business from Vikash ltd.) 
    
 
 
    
 
Vikas Ltd. A/c Dr. 
 
2,50,000 
 
 
--------To Equity Share Capital A/c 
   
2,20,000 
 
--------To Bank A/c 
   
30,000 
 
(Being issue of 22,000 share of `10 each and remaining payment 
is made through bank draft) 
    Working Note: 
Capital Reserve = Net Assets – Purchase Consideration 
= 2,60,000 – 2, 50,000 
=10,000 
 
12. Answer : 
(a) Value involved  in the above scenario: 
i. Social Welfare 
ii. Fulfilling Duties 
(b)  
Profit and Loss Appropriation Account 
For the year ended April 01,2012 
Dr.    Cr. 
Particulars  ` Particulars ` 
To Interest on capital A/c:   By Profit and Loss A/c 3,37,800 
----Satnam 25,500    
----Qureshi 
12,300 
37,800   
To Profit transferred to:     
----Satnam’s capital A/c 1,20,000    
----Qureshi’s Capital A/c  1,20,000    
----Juliee’s Capital A/c 60,000 3,00,000   
  3,37,800  3,37,800 
Working Capital: 
Calculation of Interest on Capital: 
Total Interest on Satnam’s capital =24,000+1,500= `25,500 
Total Interest on Qureshi’s Capital = 12,000+300 =`12,300 
 
  
 
CBSE XII | Accountancy 
Delhi Board Paper_Set2 –2014 –Solution 
 
     
13. Answer : 
Virad’s Capital Account 
Dr.   Cr. 
Particulars  ` Particulars ` 
   By Balance b/d 3,00,000 
To Executor’s A/c  5,70,000 By Vishad’s Capital A/c 1,12,500 
   By Roma capital A/c 75,000 
   By Profit and Loss suspense A/c 37,500 
   By Reserve Fund A/c 30,000 
   By Interest on Capital A/c 15,000 
  5,70,000  5,70,000 
Calculation of Gaining Ratio of Vishad and Roma: 
               Virad: Vishad: Roma
Old Ratio =   5 : 3  :   2
New Ratio=       3  :   2
Gaining Ratio= New Ratio  Old Ratio
3 3 3
Vishad's Gain= 
5 10 10
2 2 2
Roma'sGain
5 10 10
Gaining Ratio= 3:2
?
??
? ? ?
  
 
WN1: Calculation of Virad’s Share of Goodwill: 
?
??
??
??
Goodwill of the firm = Average Profit Number of year's purchase
1
Goodwill of the firm = 1,50,000 2 3,75,000
2
5
share of Goodwill of Virad's = 3,75,000 1,87,500
10
3
Vishad Will give = 1,87,500 1,12,
5
?
500
Roma will give = 1,87,500 25= 75,000
  
? ? ?
Profit for the year =1,50,000
65
Virad'share of Profit = 1,50,000 37,500
12 10
Virad's Capital =3,00,000
Virad's C
 WN2: Calculation of Profit share of Virad :
WN3: Calculation Of Interest on Virad's capital :
? ? ?
??
65
Apital =3,00,000 15,000
12 10
5
Share of Reserve Fund =60,000 30,000
10
WN4 : Virad's share of Reserve fund :