CBSE Sample Question Paper Accountancy (Part - 1) - 2017 - 18 Notes | Study Sample Papers for Class 12 Commerce - Class 12

Class 12: CBSE Sample Question Paper Accountancy (Part - 1) - 2017 - 18 Notes | Study Sample Papers for Class 12 Commerce - Class 12

The document CBSE Sample Question Paper Accountancy (Part - 1) - 2017 - 18 Notes | Study Sample Papers for Class 12 Commerce - Class 12 is a part of the Class 12 Course Sample Papers for Class 12 Commerce.
All you need of Class 12 at this link: Class 12

Part A

(Accounting for Partnership Firms and Companies)

1. 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

Solution: Individually: Partners                   ½

Collectively: Firm                                       ½

2. 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

Solution: Net Amount of Loss transferred to:

A’s Capital Account: Rs. 87,000                  ½ 

C’s Capital Account: Rs. 29,000                 ½ 

3. 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

Solution: 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                         ½

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                       ½ 

New Profit sharing Ratio of H and S is 23 : 27

4. How is dissolution of partnership different from dissolution of partnership firm?                  1

Solution: In case of dissolution of partnership, the firm continue to do business but with a changed agreement. In case of dissolution of partnership firm, the firm ceases to exist, the assets of the firm are realised and its liabilities are discharged.                              1

5. Why are irredeemable debentures also known as perpetual debentures?               1

Solution:  Irredeemable debentures are called perpetual debentures because these are not repayable during the life span of the company.              1

6. Distinguish between shares and debentures on the basis of convertibility.                    1

Solution: Shares cannot be converted into debentures or any other security whereas the debentures can be converted into shares or new debentures if the terms so provide.       1

7. K K Limited obtained a loan of Rs. 10,00,000 from State Bank of India @ 9 % interest. The company issued Rs. 15,00,000, 9 % debentures of Rs. 100/- each, in favour of State Bank of India as collateral security. Pass necessary Journal entries for the above transactions:

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

(ii) When company decided to record the issue of 9 % Debentures as collateral security.

Solution: (i)                K K Limited 

Journal

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

                                                                                                                                                                  1+1

8. 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: (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.3

Solution:

R’s Capital Account

Date

2017

Particulars

JF

Amount

(Rs)

Date

2017

Particulars

JF

Amount

(Rs)

Jun 30

Jun 30

Jun 30

To Drawings A/C

To Interest on Drawings A/C

To R's Executor's A/c

 

60,000

900

6,35,350

Apr 1

Jun 30

Jun 30

By Balance b/d

By Interest on Capital A/c By Profit & Loss Suspense A/C

 

6,50,000

16,250

30,000

6,96,250

6,96,250

½ X 6 = 3

Note: ½ mark may be deducted if the dates are not correctly recorded.

9. M M Limited is registered with an Authorised capital of Rs. 200 Crores divided into equity shares of Rs. 100 each. On 1st April 2016 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 further issued 1,00,000 equity shares during financial year 2016-17. 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

Solution:                    

M M Limited

Balance Sheet

as at ……………………………(Rs. In Crores)

Particulars

Note

Number

31-03-2017

Rs.

31-03-2016

Rs.

I. Equity and Liabilities

 

 

 

1. Shareholders' Funds

 

 

 

a) Share Capital

1

11

10

1

Notes to Accounts:

Note Number 1                                                         (Rs. In Crores)

 

Particulars

31-03-2017

Rs.

Share Capital:

Authorised Capital

2,00,00,000 Equity Shares of Rs. 100 each

Issued Capital

11,00,000 Equity shares of Rs. 100 each

Subscribed Capital

Subscribed and Fully paid

11,00,000 Equity shares of Rs. 100 each

Share Capital

200

11

11

11


1

Values: Generation of Employment opportunities in backward areas.

Providing Healthcare/Medical facilities in rural areas.   Or any other value                             1

10. 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

V K Limited

Journal

Date Particulars L F Dr. Amount (Rs.) Cr. 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  Reserve 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 ………………………………………………     ………………………


Solution: 

V K Limited

Journal

Date Particulars L F Dr. Amount (Rs.) Cr. Amount (Rs.)
  Machinery Account                                                  Dr.    7,00,000  
    To Modern Equipment Manufacturers Limited     7,00,000
  (Purchased machinery for Rs. 7,00,000 from Modern Equipment Manufacturers Limited )      
  Modern Equipment Manufacturers Ltd.  A/C           Dr.   6,65,000  
  Loss on Issue of 9 % Debentures Account            Dr.   20,000  
    To 9 % Debentures Account      1,00,000
    To Equity Share Capital Account     5,00,000
    To  Securities Premium  Reserve Account     75,000
    To  Premium on Redemption of Debentures A/C     10,000
  (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 %)      
  Modern Equipment Manufacturers Ltd.  A/C             Dr.         
    To Bills Payable Account   35,000  
  (Acceptance given to Modern Equipment Manufacturers Limited)     35,000

1 + 1 +1 = 3

11. E, F and G were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On March 31, 2017, their firm was dissolved. On the date of dissolution, the Balance Sheet of the firm was as follows:

Balance Sheet

as at March 31, 2017

Liabilities Rs. Assets Rs.
Capitals:   G’s Capital 500
E                                              1,30,000   Profit & Loss Account 10,000
F                                              1,00,000 2,30,000 Land & Building 1,00,000
Creditors 45,000 Furniture 50,000
Outstanding Expenses  17,000 Machinery 90,000
    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 for Rs. 1,08,900.

(ii) Furniture was sold at 25% of book value.

(iii) Machinery was sold as scrap for Rs. 9,000.

(iv) All the Debtors were realized at full value.

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.  4

Solution:

E, F and G 

Journal

Date Particulars L F Dr. Amount (Rs.) Cr. Amount (Rs.)
  Realisation Account                            Dr.   2,76,500  
    To Land & Building Account     1,00,000
    To Furniture Account     50,000
    To Machinery Account     90,000
    To Debtors Account     36,500
  (Individual Assets accounts closed by transferring their balances to Realisation Account)      
  Creditors Account                               Dr.   45,000  
  Outstanding Expenses Account          Dr.   17,000  
    To Realisation Account     62,000
  (Individual External Liabilities Accounts closed by transferring  their balances to Realisation Account)      
  Bank Account                                     Dr.   1,66,900  
    To Realisation Account      1,66,900
  (Assets realized and debtors collected)      
  Realisation Account                               Dr.   59,750  
    To Bank Account     59,750
  (Creditors paid at a discount of 5% and payment of outstanding expenses)      
  Realisation Account                             Dr.   5,000  
    To F’s Capital  Account     5,000
  (Remuneration paid to F for undertaking dissolution process)      
  E’s Capital Account                               Dr.   44,940  
  E’s Capital Account                               Dr.   44,940  
  G’s Capital Account                              Dr.   22,470  
    To Realisation Account      1,12,350
  (Loss on Realisation transferred to partners’  Capital Accounts)      
  E’s Capital Account                              Dr.   4,000  
  F’s Capital Account                              Dr.   4,000  
  G’s Capital Account                             Dr.   2,000  
    To Profit & Loss Account      10,000
  (Profit & Loss Account transferred to partners’  Capital Accounts)      
  Bank Account                                     Dr.   24,970  
    To G’s Capital Account     24,970
  (Final payment received from G)      
  E’s Capital Account                           Dr.   81,060  
  F’s Capital Account                           Dr.   56,060  
    To Bank Account      1,37,120
  (Final payment made to E and F)      


12. 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: 

Balance Sheet

as at March 31, 2017

Liabilities Rs. Assets Rs.
Capitals:   Fixed Assets 1,80,000
A                                              50,000   Current Assets 35,000
B                                                 40,000      
C                                                 30,000 1,20,000    
Reserve Fund   18,000    
Creditors 27,000    
Employees Provident Fund 50,000    
  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) 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.   4

Solution:

A, B and C 

Journal

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

4

13. 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:

(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.  6

Solution:

Profit & Loss Appropriation Account

for the year ended  March 31, 2017

Particulars Amount (Rs.) Particulars Amount (Rs.)
To Interest on Capital:   By Profit & Loss Account- Net Profit b/d 85,000
  L’s Current Account          24,750   By Interest on Partners’ Drawings  
  M’s Current Account        27,000     L’s Current Account                                    720  
  N’s Current Account         29,250     M’s Current Account                                1,080  
  81,000   N’s Current Account                               1,440  
To Profit transferred to Partners’ Current Accounts     3,240
   L                                         1,448      
  M                                         2,172       
  N                                         3,620      
  7,240     
  88,240   88,240


Partners’ Capital Account

Date Particulars L M N Date Particulars L M N
2016         2016         
Jul 1 To Bank Account     1,00,000 Apr 1 By Balance b/d 2,00,000 3,00,000 4,00,000
2017         Jul 1 By Bank Account 1,00,000    
Mar 31 To Balance c/d 3,00,000 3,00,000 3,00,000          
    3,00,000 3,00,000 4,00,000     3,00,000 3,00,000 4,00,000
The document CBSE Sample Question Paper Accountancy (Part - 1) - 2017 - 18 Notes | Study Sample Papers for Class 12 Commerce - Class 12 is a part of the Class 12 Course Sample Papers for Class 12 Commerce.
All you need of Class 12 at this link: Class 12

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