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# CBSE Class 12 Accountancy Sample Paper (By CBSE) - 1 Commerce Notes | EduRev

## Commerce : CBSE Class 12 Accountancy Sample Paper (By CBSE) - 1 Commerce Notes | EduRev

The document CBSE Class 12 Accountancy Sample Paper (By CBSE) - 1 Commerce Notes | EduRev is a part of the Commerce Course Accountancy Class 12.
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CBSE Class 12 ACCOUNTANCY
Sample Paper (By CBSE)

General Instructions:

• This question paper contains two parts- A and B.
• Part A is compulsory for all.
• Part B has two options- ‘Analysis of Financial Statements’ and ‘Computerised Accounting’.
• Attempt any one option of Part B.
• All parts of a question should be attempted at one place.

Part A
(Accounting for Partnership Firms and Companies)

Q1. Six friends started a partnership business by investing Rs. 2,00,000 each. They decided to share profit equally. Name the terms by which they will be called individually and collectively. (1)
Ans: Individually:Partners Collectively: Firm

Q2. A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. B was guaranteed a profit of Rs. 2,00,000. During the year the firm earned a profit of Rs. 84,000. Calculate the net amount of Profit / Loss transferred to the capital accounts of A and C. (1)
Ans:
​ Net  Amount  of  Loss  transferred  to:
A’s  Capital  Account:  Rs.  87,000
C’s  Capital  Account:  Rs.  29,000

Q3. H, P and S were partners in a firm sharing profits in the ratio of 4 : 3 : 3. On August 1, 2017, P died. His 20 % share was acquired by H and remaining by S. Calculate the new profit sharing ratio. (1)
Ans:​
Ratio of H, P and S is 4 : 3 : 3
H’s Gain = 3/10 X 20 /100 = 3 /50
H’s new share = H’s old share + H’s Gain = 4/10 + 3/50 = 23/50
S’s Gain = 3/10 X 80 /100 = 12 /50
S’s new share = S’s old share + S’s Gain = 3/10 + 12/50 = 27/50
New Profit sharing Ratio of H and S is 23 : 27

Q4. How is dissolution of partnership different from dissolution of partnership firm? (1)
Ans:​
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.

Q5. Why are irredeemable debentures also known as perpetual debentures? (1)
Ans:
​Irredeemable debentures are called perpetual debentures because these are not repayable during the life span of the company.

Q6. Distinguish between shares and debentures on the basis of convertibility. (1) 7. K K Limited obtained a loan of Rs. 10,0,000 from State Bank of India @ 9 % interst. The company issued Rs. 15,000 9 % debentures in favour of State Bank of India as collateral security. Pass necessary Journal entries for the above transactions: (3)
Ans:
Shares can not be converted into debentures or any other security whereas the debentures can be converted into shares if the terms so provide.

Q7. K K Limited obtained a loan of Rs. 10,0,000 from State Bank of India @ 9 % interst. The company issued Rs. 15,000 9 % debentures in favour of State Bank of India as collateral security. Pass necessary Journal entries for the above transactions: (3)

(i) When company decided not to record the issue of 9 % Debentures as collateral security.

Ans:
K K
Limited Journal

 Date Particulars L F Dr. Amount (Rs.) Dr. Amount (Rs.) Bank Account Dr. To Bank Loan Account ( Obtained loan from State Bank of India @ 9%.) 10,00,000 10,00,000

(ii) When company decided to record the issue of 9 % Debentures as collateral security
Ans:
K K
Limited Journal

 Date Particulars L F Dr. Amount (Rs.) Dr. Amount (Rs.) Bank Account Dr. To Bank Loan Account ( Obtained loan from State Bank of India @ 9 %.) 10,00,000 10,00,000 Debenture Suspense Account Dr. To 9 % Debentures Account (Issued 9 % Debentures as collateral security in favour of State Bank of India) 15,00,000 15,00,000

Q8. P, Q and R were partners sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on March 31 every year. On June 30, 2017, R died. The following information is provided on R’s death: (3)

(i) Balance in his capital account in the beginning of the year was Rs. 6,50,000.
(ii) He withdrew Rs. 60,000 on May 15, 2017 for his personal use. On the date of death of a partner the partnership deed provided for the following:
(a) Interest on capital @ 10 % per annum.
(b) Interest on drawings @ 12 % per annum.
(c) His share in the profit of the firm till the date of death, to be calculated on the basis of the rate of Net Profit on Sales of the previous year, which was 25 %. The Sales of the firm till June 30, 2017 were Rs. 6,00,000.
Prepare R’s Capital Account on his death to be presented to his executors
Ans:
R’s  Capital  Account

 Date 2017 Particulars JF Amount (Rs) Date 2017 Particulars JF Amount (Rs) To Drawings A/C Apr 1 By Balance b/d Jun 30 To Interest on 60,000 Jun By Interest on 6,50,000 Jun 30 Drawings A/C 900 30 capital A/c 16,250 Jun 30 To R’s Executor’s 6,35,350 Jun By Profit & Loss 30,000 A/c 30 Suspense A/C 6,96,250 6,96,250

Q9. M M Limited is registered with an Authorised capital of Rs. 200 Crores divided into equity shares of Rs. 100 each. The Subscribed and Called up capital of the company is Rs. 10,00,00,000. The company decided to help the unemployed youth of the naxal affected areas of Andhra Pradesh, Chhattisgarh and Odisha by opening 100 ‘Skill Development Centres’. The company also decided to provide free medical services to the villagers of these states by starting mobile dispensaries. To meet the capital expenditure of these activities the company issued 1,00,000 equity shares. These shares were fully subscribed and paid. Present the share capital of the company in its Balance Sheet.
Also identify any two values that the company wants to propagate. (3)
Ans:

MM
Limited Balance  Sheet
As  at……….

 Particulars Note Number Current Year Rs. Previous Year Rs. Crores I. Equity and Liabilities 1. Shareholders’ Funds 1 11 10 a) Share Capital

Notes to  Accounts
Note  Number  1

 Particulars Current Years Rs. Crores Share Capital: Authorised Capital 2,00,00,000 Equity Shares of Rs. 100 each 200 Issued Capital 11,00,000 Equity shares of Rs. 100 each 11 Subscribed  Capital Subscribed  and  Fully  paid 11,00,000  Equity  shares  of  Rs.  100  each 11

Q10. V K Limited purchased machinery from Modern Equipment Manufacturers Limited. The company paid the vendors by issue of some equity shares and debentures and the balance through an acceptance in their favour payable after three months. The accountant of the company while Journalising the above mentioned transactions left some items blank. You are required to fill in the blanks. (3)​

VK Limited
Journal

 Date Particular LF DR. Amount (Rs.) DR. Amount (Rs.) Machinery Account Dr. To........................................................................ (Purchased machinery for Rs. 7,00,000 from Modern Equipment Manufacturers Limited ) Modern Equipment Manufacturers Ltd. A/C Dr. Loss on Issue of 9 % Debentures Account Dr. To....................................................................... To....................................................................... To Securities Premium Account To Premium on Redemption of Debentures A/C (Issued Rs. 1,00,000 9 % debentures at a discount of 10 % redeemable at a premium of 10 % and 50,000 equity shares of Rs. 10 each issued at a premium of 15 %) ............................................................. Dr. To............................................................. (............................................................................................... )

Ans:

 Date Particular LF DR. Amount Dr. Amount Machinery Account Dr. To Modern Equipment Manufacturers Limited (Purchased machinery for Rs. 7,00,000 from Modern Equipment Manufacturers Limited ) 70,000 70,000 Modern Equipment Manufacturers Ltd. A/C Dr. Loss on Issue of 9 % Debentures Account Dr. 6,65,000 To 9 % Debentures Account 20,000 1,00,000 To Equity Share Capital Account 5,00,000 To Securities Premium Account 75,000 To Premium on Redemption of Debentures A/C (Issued Rs. 1,00,000 9 % debentures at a discount of 10 % redeemable at a premium of 10 % and 50,000 equity shares of Rs. 10 each issued at a premium of 15 %) 10,000 Modern Equipment Manufacturers Ltd. A/C Dr. To Bills Payable Account (Acceptance given to Modern Equipment Manufacturers Limited) 35,000 35,000

Q11. E, F and G were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On September 30, 2017, their firm was dissolved. On the date of dissolution, the Balance Sheet of the firm was as follows: (4)
Balance Sheet
As at March 31, 2017

 Liabilities Rs. Assets Rs.
 G’s Capital 500 Capitals: Profit & Loss Account 10,000 E 1,30,000 F 1,00,000 2,30,000 Land & Building Furniture 1,00,000 45,000 50,000 Creditors 17,000 Machinery 90,000 Outstanding Expenses Debtors 36,500 Bank 5,000 2,92,000 2,92,000

F was appointed to undertake the process of dissolution for which he was allowed a remuneration of Rs. 5,000. F agreed to bear the dissolution expenses. Assets realized as follows:
(i) The Land & Building was sold through a property dealer at a price of 110% of the book value. A Commission of 1% on the selling price of Land & Building was paid to the property dealer.
(ii) Furniture was sold at 25% of book value.
(iii) Machinery was sold as scrap for Rs. 9,000. Creditors were payable on an average of 3 months from the date of dissolution. On discharging the Creditors on the date of dissolution, they allowed a discount of 5%.
Pass necessary Journal entries for dissolution in the books of the firm.

Ans:
Journal

 Date Particulars LF Dr. Amount(Rs.) Dr. Amount (Rs.) Realisation Account Dr. To Land & Building Account To Furniture Account To Machinery Account To Debtors Account (Individual Assets accounts closed by transferring their balances to Realisation Account) 2,76,500 1,00,000 50.000 90.000 36,500 Creditors Account Dr. Outstanding Expenses Account Dr. To Realisation Account (Individual External Liabilities Accounts closed by transferring their balances to Realisation Account) 45.000 17.000 62,000 Bank Account Dr. To Realisation Account ( Land & Building realized) 1,08,900 1,08,900 Bank Account Dr. To Realisation Account (Furniture realized) 12,500 12,500 Bank Account Dr. To Realisation Account ( Machinery Sold as scrap) 9,000 9,000 Realisation Account Dr. To Bank Account (Creditors paid at a discount of 5%) 42,750 42,750 Realisation Account Dr. To Bank Account 17,000
 (Paid outstanding Expenses) 17,000 Realisation Account Dr. To F’s Capital Account (Remuneration paid to F for undertaking dissolution process) 5,000 5,000 E’s Capital Account Dr. F’s Capital Account Dr. G’s Capital Account Dr. To Realisation Account ( Loss on Realisation transferred to partners’ Capital Accounts) 59,540 59,540 29,770 1,48,850 Bank Account Dr. To G’s Capital Account ( Final payment received from G) 30,270 30,270 E’s Capital Account Dr. F’s Capital Account Dr. To Bank Account ( Final payment made to E and F) 1,89,540 1,89,540 3,49,080

Q12. A, B & C were partners in a firm sharing profits & losses in the ratio of 3 : 2 : 1. On March 31, 2017, their Balance Sheet was as follows: (4)
Balance Sheet as
at March 31, 2017

 Liabilities Rs. Assets Rs. Capitals: A 50,000 B 40,000 1,20,000
 C 30,000 Reserve Fund Creditors Employees Provident Fund 18,000 27.000 50.000 Fixed Assets Current Assets 1,80,000 35,000 2,15,000 2,15,000

From April 1, 2017, they decided to share future profits equally. For this purpose the followings were agreed upon:
(i) Goodwill of the firm was valued at Rs. 3,00,000.
(ii) Fixed Assets will be depreciated by 10%.
(iii) After doing the above adjustments the capitals of the partners will be in proportion to their new profit sharing ratio. For this purpose Current Accounts will be opened. Pass necessary Journal entries for the above transactions in the books of the firm.
Ans:
​A, B and C Journal

 Date Particular LF DR. Amount (Rs.) Dr. Amount (Rs.) C’s Capital Account Dr. To A’s Capital Account (Treatment of goodwill due to change in profit sharing ratio) 50,000 50,000 Reserve Fund Account Dr. To A’s Capital Account To B’s Capital Account 18,000 9,000
 To C’s Capital Account (Reserve Fund transferred to partners’ capital accounts in their old profit sharing ratio) 6,000 3,000 Revaluation Account Dr. To Fixed Assets Account (Revaluation of fixed assets on change in profit sharing ratio) 18,000 18,000 A’s Capital Account Dr. B’s Capital Account Dr. C’s Capital Account Dr. To Revaluation Account (Loss on revaluation transferred to partners’ capital accounts) 9.000 6.000 3,000 18,000 A’s Capital Account Dr. To A’s Current Account (Adjustment of capital by opening of current account) 60,000 60,000 C’s Current Account Dr. To C’s Capital Account (Adjustment of capital by opening of current account) 60,000 60,000

Q13. L, M and N are partners in a firm sharing profits & losses in the ratio of 2 : 3 : 5. On April 1, 2016 their fixed capitals were Rs. 2,00,000, Rs. 3,00,000 and Rs. 4,00,000 respectively. Their partnership deed provided for the following: (6) (i) Interest on capital @ 9% per annum. (ii) Interest on Drawings @ 12% per annum. (iii) Interest on partners’ loan @ 12% per annum. On July 1, 2016, L brought Rs. 1,00,000 as additional capital and N withdrew Rs. 1,00,000 from his capital. During the year L, M and N withdrew Rs. 12,000, Rs. 18,000 and Rs. 24,000 respectively for their personal use. On January 1, 2017 the firm obtained a Loan of Rs. 1,50,000 from M. The Net profit of the firm for the year ended March 31, 2017 after charging interest on M’s Loan was Rs. 85,000. Prepare Profit & Loss Appropriation Account and Partners Capital Account.
Ans:
Profit  &  Loss  appropriation  Account For  the  year  ended  on  March  31,  2017

 Particulars Amount (Rs.) Particulars Amount (Rs.) To Interest on Capital: L’s Current Account 24,750 M’s Current Account 27,000 N’s Current Account 29,250 By Profit & Loss Account- Net Profit b/d By Interest on Partners’ Drawings 85,000
 To Profit transferred to 81,000 L’s Current Account 720 3,240 Partners’ Current Accounts L 1,448 M 2,172 N 3,620 7.240 88.240 M’s Current Account 1,080 N’s Current Account 1,440 88,240

Partner’s Capital Account

 Date Particulars L M N Date Particulars L M N 2016 Jull 2017 Mar 31 To Bank Account To Balance c/d 3,00,000 3,00,000 1,00,000 3,00,000 2016 Apr 1 Jul1 By Balance b/d By Bank Account 2,00,000 1,00,000 3,00,000 4,00,00 3,00,000 3,00,000 4,00,000 3,00,000 3,00,000 4,00,00

Q14. Pass necessary Journal entries in the books of P P Limited for the issue of debentures in the following cases: (6) (a) Issued 500 9% debentures of Rs. 100 each at a discount of 6% redeemable at a premium of 9%. (b) Issued Rs. 10,00,000 9% debentures of Rs. 100 each at a premium of Rs. 20 per debenture redeemable at a premium of Rs. 10 per debenture. (c) Issued 3,000 8% debentures of Rs. 100 each at a discount of Rs. 15,000 redeemable at a premium of 5%.
Ans:
​PP Limited
Journal

 Date Particulars LF Dr. Amount Rs. Dr. Amount (Rs.) (a) (i) Bank Account Dr. To 9% Debenture Application & Allotment A/C (Application money received for 500 9% Debentures ) 47,000 47,000 9% Debenture Application & Allotment A/C Dr. Loss on issue of Debentures Account Dr. 47,000
 (ii) To 9 % Debentures Account To Premium on redemption Account (Application money transferred to 9 % Debentures account and recorded loss on issue of debentures and premium on redemption) 7,500 50,000 4,500 (b)(i) Bank Account Dr. To 9% Debenture Application & Allotment A/C (Application money received for Rs. 10,00,000 9% Debentures ) 12,000 12,000 (ii) 9% Debenture Application & Allotment A/C Dr. Loss on issue of Debentures Account Dr. To 9 % Debentures Account To Securities Premium Account To Premium on redemption Account (Application money transferred to 9 % Debentures account and Securities Premium Reserve Account and recorded loss on issue of debentures and premium on redemption) 12,00,000 1,00,000 10,00,000 2,00,000 1,00,000 (c) (i) Bank Account Dr. To 8 % Debenture Application & Allotment A/C (Application money received for 3,000 8% Debentures ) 2,85,000 2,85,000 (ii) 8% Debenture Application & Allotment A/C Dr. Loss on issue of Debentures Account Dr. To 8 % Debentures Account To Premium on redemption Account (Application  money  transferred  to  8  % Debentures  account  and  recorded  loss  on issue  of  debentures  and  premium  on redemption) 2.85.000 30.000 3,00,000 15,000

Q15. On April 1, 2013, XY Limited issued Rs. 9,00,000 10% debentures at a discount of 9%. The debentures were to be redeemed in three equal annual instalments starting from March 31, 2015. (6) Prepare ‘Discount on Issue of Debenture Account’ for the first three years starting from April 1, 2013. Also show your workings clearly.
Ans:
​Discount  on  Issue  of  10%  Debentures  Account

 Date Particulars JF Amount (Rs) Date Particulars JF Amount (Rs) 2013 Apr 1 To 10 % Debentures A/C 81,000 2014 Mar 31 By Statement of Profit & Loss By Balance c/d 27.000 54.000 81,000 81,000 2014 Apr 1 2015 Apr 1 To Balance b/d To Balance b/d 54,000 2015 Mar 31 By Statement of Profit & Loss By Balance c/d 27,000 27,000 54,000 54,000 2015 Apr 1 To balance b/d 27,000 2016 Mar 31 By Statement of Profit & Loss By Balance c/d 18,000 9,000 27,000 27,000

Q16. ZX Limited invited applications for issuing 5,00,000 Equity shares of Rs. 10 each payable at a premium of Rs. 10 each payable with Final call. Amount per share was payable as follows: (8)

 Rs. On Application 2 On Allotment 3 On First Call 2 On Second & Final Balance Call

Applications for 8,00,000 shares were received. Applications for 50,000 shares were rejected and the application money was refunded. Allotment was made to the remaining applicants as follows:

 Category No. of shares Applied No. of Shares allotted I 2,00,000 1,50,000 II 5,50,000 3,35,000

Excess application money received with applications was adjusted towards sums due on allotment. Balance, if any was adjusted towards future calls. Govind, a shareholder belonging to category I, to whom 1,500 shares were allotted paid his entire share money with application. Manohar belonging to category II had applied for 11,000 shares failed to pay ‘Second & Final Call money’. Manohar’s shares were forfeited after the final call. The forfeited shares were reissued at Rs. 10 per share as Rs. 7 paid up. Assuming that the company maintains “Calls in Advance Account” and “Calls in Arrears Account”, pass necessary Journal entries for the above transactions in the books of ZX Limited. OR (a) AX Limited forfeited 6,000 shares of Rs. 10 each for non-payment of First call of Rs. 2 per share. The Final call of Rs. 3 per share was yet to be made. Of the forfeited shares 4,000 shares were reissued at Rs. 9 per share as fully paid up. Assuming that the company maintains ‘Calls in Advance Account’ and ‘Calls in Arrears Account’, prepare “Share Forfeited Account” in the books of AX Limited.

(b) BG Limited issued 2,00,000 equity shares of Rs. 20 each at a premium of Rs. 5 per share. The shares were allotted in the proportion of 5 : 4 of shares applied and allotted to all the applicants. Deepak, who had applied for 900 shares, failed to pay Allotment money of Rs. 7 per share (including premium) and on his failure to pay ‘First & Final Call’ of Rs. 2 per share, his shares were forfeited. 400 of the forfeited shares were reissued at Rs. 15 per share as fully paid up. Showing your working clearly, pass necessary Journal entries for the forfeiture and reissue of Deeapk’s shares in the books of BG Limited. The company maintains ‘Calls in Arrears’ Account’.

(c) ML Limited forfeited 1,200 shares of Rs. 10 each allotted to Ravi for Non-payment ‘Second & Final Call’ of Rs. 5 per share (including premium of Rs. 2 per share). The forfeited shares were reissued for Rs. 10,800 as fully paid up.

Pass necessary Journal entries for reissue of shares in the books of ML Limited.
Ans:
Revaluation  Account

 Particulars Amount (Rs.) Particulars Amount (Rs.) To Plant & Machinery To Profit transferred 20,000 to Partners’ Current By Provision for 750 Accounts Doubtful Debts A 35,375 By Land & Building 90,000 B 21,225 70,750 C 14,150 90,750 90,750

Partner’s Current  Accounts

 Date Particulars A B C Date Particulars A B C To C’s Current Account By Revaluation Account By A’s Current 35,375 21,225 14,150 38,250
 2017 To Profit & 38,250 22,950 48,200 2017 Account 22,950 Mar Loss A/C Mar By B’s 15,000 31 To C’s 1,20,500 72,300 42,150 31 Current 37,500 22,500 Capital Account 85,875 51,525 Account By General Reserve By Balance c/d 1,58,750 95,250 90,350 1,58,750 95,250 90,350

Partner’s  Capital  Accounts

 Date Particulars A B C Date Particulars A B C To Bank Account By Balance 2017 To C’s 35,500 2017 b/d Mar Loan Mar By C’s 5,00,000 3,00,000 2,00,00 2,06,650 31 Account 5,00,000 3,00,000 31 Current 42,150 To Balance Account c/d 5,00,000 3,00,000 2,42,150 5,00,000 3,00,000 2,42,15

Balance  Sheet As  at  March 31,  2017

 Liabilities Amount(Rs.) Assets Amount (Rs.) Capitals: A 5,00,000 B 3,00,000 C’s Loan Creditors Outstanding Salary 8,00,000 2,06,650 23.000 7.000 15.000 Bank Stock Debtors 15,000 Less: Provision for D. Debts 750 Plant & Machinery Land & Building A’s Current Account 21,000 9.000 14,250 1.08.000 6,90,000 85,875 51,525
 B’s Loan 10,51,650 B’s Current Account 10,51,650

OR
Journal

 Date Particular LF Dr. Amount (Rs.) Dr. Amount (Rs.) C’s Loan Account Dr. To C’s Capital Account (C’s Loan account transferred to his capital account) 1,30,000 1,30,000 Bank Account Dr. To Premium for Goodwill Account (New partner C brings in his share of goodwill) 17,500 17,500 Premium for Goodwill Account Dr. To P’s Capital Account To K’s Capital Account (Premium for Goodwill transferred to old partners’ capital accounts in their sacrificing ratio) 17,500 8,750 8,750 Revaluation Account Dr. To Plant & Machinery Account (Revaluation of Plant & Machinery on admission of new partner) 14,550 14,550 Land & Building Account Dr. To Revaluation Account (Revaluation of Land & Building on admission of new partner) 28,000 28,000 Revaluation Account Dr. To P’s Capital Account To K’s Capital Account 13,450 6,725 6,725
 (Profit on revaluation transferred to partners’ capital accounts) General Reserve Account Dr. To P’s Capital Account To K’s Capital Account (General Reserve transferred to partners’ capital account) 1,00,000 50,000 50,000 Profit & Loss Account Dr. To P’s Capital Account To K’s Capital Account (Profit & Loss account transferred to partners’ capital account) 45,000 22,500 22,500 P’s Capital Account Dr. K’s Capital Account Dr. To Bank Account (Cash paid to P for adjustment of his capital) 1.92.975 92.975 2,85,950

Part B Option I
(Analysis of Financial Statements)

Q18. Give any two examples of cash inflows from operating activities other than cash receipts from sale of goods & rendering of services. (1)
Ans:

​Any two of the followings: (i) Royalties (ii) Commission Received (iii) Any other revenue receipts.

Q19. P P Limited is Share Broker Company. G G Limited is engaged in manufacturing of packaged food. P P Limited purchased 5,000 equity shares of Rs. 100 each of Savita Limited. G G Limited also purchased 10,000 equity shares of Rs. 100 each of Savita Limited. For the purpose of preparing their respective Cash Flow Statements, under which category of activities the purchase of shares will be classified by P P Limited and G G Limited? (1)
Ans:

For P P Limited: Operating Activity ½
For G G Limited: Investing Activity ½

Q20. M K Limited is a computer hardware manufacturing company. While preparing its accounting records it takes into consideration the various accounting principles and maintains transparency. At the end of the accounting year, the company follows the ‘Companies Act and Rules, 2013’ for the preparation of its Financial Statements. It also prepares its Income Statement and Balance Sheet as per the format provided in Schedule III to the Act. Its Financial Statements depict its fair & true financial position. For the financial year ending March 31, 2017, the accountant of the company is not certain about the presentation of the following items under relevant Major Heads & Sub Heads, if any, in its Balance Sheet: (4)
(i) Securities Premium Reserve
(ii) Calls in Advance
(iii) Stores & Spares
(a) Advice the accountant of the company under which Major Heads and Sub Heads, if any, he should present the above items in the Balance Sheet of the company,
(b) List any two values that the company is observing in the maintenance of its accounting records and preparation of its financial statements.
Ans:

 S. No. Items Major Head Sub Head (i) Securities Premium Reserve Shareholders’ Funds Reserves & Surplus (ii) Calls in Advance Current Liabilities Other Current Liabilities (iii) Stores & Spares Current Assets Inventory

(b) Any two of the following values: Transparency, Honesty, Abiding the Law. (Or any other relevant value).

Q21. For the year ended March 31, 2017, Net Profit after tax of K X Limited was Rs. 6,00,000. The company has Rs. 40,00,000 12% Debentures of Rs. 100 each. Calculate Interest Coverage Ratio assuming 40 % tax rate. State its significance also. Will the Interest Coverage Ratio change if during the year 2017-18, the company decides to redeem debentures of Rs. 5,00,000 and expects to maintain the same rate of Net Profit and assume that the Tax rate will not change. (4)
Ans:

Interest Coverage Ratio= Net Profit before Interest and Tax/ Interest on Long Term
Debts
Net Profit after Tax = Rs. 6,00,000, Tax Rate = 40 % Net Profit before tax = 100/(100 – Tax) X Net Profit after tax = 100/ 60 X 6,00,000 = 10,00,000
Interest Coverage Ratio= Net Profit before Interest and Tax / Interest on Long Term Debts = 10,00,000 / 4,80,000 = 2.08 Times Significance of Interest Coverage Ratio: It reveals the number of times Interest on Long Term Debts is covered by the profits available. A higher ratio ensures safety of interest on Long Term Debts.
The Interest coverage ratio will improve if the company decides to redeem Rs. 5,00,000 debentures assuming that Net Profit after interest and the tax rate will be same. 1

Q22. Following is the Statement of Profit & Loss of X L Limited for the year ended March 31, 2017: (4)

Statement of Profit & Loss for the year ended March 31, 2017

 Particulars Notes to Accounts 2015-16 Amount (Rs.) 2016-17 Amount (Rs.) Revenue from Operations Expenses: (a) Employee Benefit Expenses: 10 % of Revenue from 50,00,000 80,00,000 Operations (b) Other Expenses 10,00,000 12,00,000 Tax Rate 40 %

Prepare Comparative Statement of Profit & Loss of X L Limited.
Ans:
​X  L  Limited Comparative  Statement  of  Profits  &  Loss For  the  year  ended  March  31,  2016  and  2017

 Particulars 2015-16 Amount (Rs.) 2016-17 Amount (Rs.) Absolute Change (Rs.) % age Change Revenue from Operations Expenses: (a) Employee Benefit 50,00,000 80,00,000 30,00,000 60 Expenses: 10 % of Revenue from 5,00,000 8,00,000 c c c d q CO 60 Operations (b) Other Expenses 10,00,000 12,00,000 2,00,000 20 Net Profit before Tax 35,00,000 60,00,000 25,00,000 71.43 Less: Tax 14,00,000 24,00,000 10,00,000 71.43 Net Profit after Tax 21,00,000 36,00,000 15,00,000 71.43

Q23. From the following Balance Sheet of Ajanta Limited as on March 31, 2017, prepare a Cash Flow Statement: (6)
Statement of Profit & Loss for the year ended March 31, 2017

 Particulars Note Number 31-3-2017 (Rs.) 31-3-2016 (Rs.) I. Equity and Liabilities (1) Shareholders’ Funds (a) Equity Share
 Capital (b) Reserves and Surplus Non- Current Liabilities Long-Term Borrowings- 9 % Debentures Current Liabilities Trade Payables Other Current Liabilities 10,00,000 2.40.000 3.20.000 1.80.000 1,80,000 10,00,000 1,20,000 2,40,000 2.40.000 1.60.000 Total 19,20,000 17,60,000 II. Assets (1) Non-Current Assets (a) Fixed Assets 13,40,000 12,00,000 Tangible Assets 2,40,000 1,60,000 (b) Non-Current Investments (2) Current Assets 1,20,000 1,60,000 (a) Inventories 1,60,000 1,60,000 (b) Trade Receivables 60,000 80,000 (c) Cash and Cash Equivalents Total 19,20,000 17,60,000

Note of Accounts

 Note Number Particulars 31-3-2017 (Rs.) 31-3-2016 (Rs.) Reserves and Surplus General Reserve 1,20,000 1,20,000 1.
 Balance in Statement of Profit & Loss 1,20,000 2,40,000 1,20,000 2. Trade Payables Creditors Bills Payable 1.40.000 40.000 1,20,000 1,20,000 1,80,000 2,40,000 3. Other Current Liabilities Outstanding Rent 1,80,000 1,60,000 1,80,000 1,60,000 4. Tangible Assets Plant & Machinery Accumulated Depreciation 14,90,000 (1,50,000) 13,00,000 (1,00,000) 13,40,000 12,00,000 5. Non-Current Investments Shares in XYZ Limited 2,40,000 1,60,000 2,40,000 1,60,000

(a) During the year 2016-17, a machinery costing Rs. 50,000 and accumulated depreciation thereon Rs. 15,000 was sold for Rs. 32,000.
(b) 9 % Debentures Rs. 80,000 were issued on April 1, 2016. 6

Ans:

Ajanta  Limited Cash  Flow  Statement for  the  year  ended  31st  March,  2014

 Particulars Amount (Rs.) I - CASH FLOW FROM OPERATING ACTIVITIES Surplus: Balance in the Statement of Profit & Loss Adjustment for Non- Cash and Non-Operating Items Depreciation 65,000 Loss on sale of Machinery 3,000 Interest on Debentures 28,800 Operating Profit before changes in working capital Add: Decrease in Current Assets and Increase in Current 1,20,000 Liabilities 96,800 Inventories 40,000 2,16,800 Outstanding Rent 20,000 80,000 2,16,800 Creditors 20,000 2,16,800 (2,88,000) Less: Increase in Current Assets and Decrease in Current (2,40,000) Liabilities

PART  –  B
Option-II
Computerised  Accounting

Q18. While navigating in the workbook, which of the following commands is used to move to the beginning of the Current row: (1)
a. [ctrl] + [home]
b. [page up]
c. [Home]
d. [ctrl] + [Back space]

Ans: (c)

Q19. Join line in the context of Access table means: (1) a. Graphical representation of tables between tables b. Lines bonding the data within table c. Line connecting two fields of a table d. Line connecting two records of a table
Ans:
(b)

Q20. Enumerate the basic requirements of computerized accounting system for a business organization. (4)
Ans:

​The computerized accounting is one the database-oriented applications wherein the transaction data is stored in well-organized database. The user operates on such database using the required interface and also takes the required reports by suitable transformations of stored data into information. Therefore, the fundamentals of computerized accounting include all the basic requirements of any database-oriented application in computers.
Accounting framework.
It is the application environment of the computerized accounting. A healthy accounting framework in terms of accounting principles, coding and grouping structure is a precondition
for any computerized accounting system.
Operating procedure.
A well-conceived and designed operating procedure blended with suitable operating environment of the enterprise is necessary to work with the computerized accounting system.

Q21. The generation of ledger accounts is not a necessary condition for making trial balance in a computerized accounting system. Explain. (4)​
Ans:
Internal manipulation of accounting records is much easier in computerized accounting due to the following: i. Defective logical sequence at the programming stage ii. Prone to hacking

Q22. Internal manipulation of accounting records is much easier in computerized accounting than in manual accounting. How? (4)
Ans:

Internal  manipulation  of  accounting  records  is  much  easier  in  computerized  accounting due  to  the  following: i.  Defective  logical  sequence  at  the  programming  stage ii.  Prone  to  hacking

Q23. Computerisation of accounting data on one hand stores voluminous data in a systematic and organized manner whereas on the other hand suffers from threats of vulnerability and manipulations. Discuss the security measures you would like to employ for securing the data from such threats. (6)
Ans:

Every  accounting  software  ensures  data  security,  safety  and  confidentiality.  Therefore every,  software  should  provide  for  the  following: Password  Security:  Password  is  a  mechanism,  which  enables  a  user  to  access  a  system including  data.  The  system  facilitates  defining  the  user  rights  according  to organization  policy.  Consequently,  a  person  in  an  organization  may  be  given  access  to a  particular  set  of  a  data  while  he  may  be  denied  access  to  another  set  of  data.
Data  Audit:  This  feature  enables  one  to  know  as  to  who  and  what  changes  have  been made  in  the  original  data  thereby  helping  and  fixing  the  responsibility  of  the  person who  has  manipulated  the  data  and  also  ensures  data  integrity.  Basically,  this  feature is  similar  to  Audit  Trial.
Data  Vault:  Software  provides  additional  security  through  data  encryption.

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## Accountancy Class 12

124 videos|152 docs|43 tests

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