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

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

                                                                                                                                                                  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

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)

1

Notes to Accounts:

Note Number 1                                                         (Rs. In Crores)

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

Solution: 

V K Limited

Journal

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

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

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

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

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

Partners’ Capital Account