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

Accountancy Class 12

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

  1. Non- Current

Liabilities

Long-Term

Borrowings- 9 %

Debentures

  1. Current Liabilities
  1. Trade Payables
  2. 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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