# CBSE Sample Question Paper Accountancy (Part - 2) - 2017 - 18 Notes | Study Sample Papers for Class 12 Commerce - Class 12

## Class 12: CBSE Sample Question Paper Accountancy (Part - 2) - 2017 - 18 Notes | Study Sample Papers for Class 12 Commerce - Class 12

The document CBSE Sample Question Paper Accountancy (Part - 2) - 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

14. Himanshu and Vikrant are partners in a firm and share profits equally. Their Balance Sheet as on March 31, 2017 is as follows:

Balance Sheet

as at March 31, 2017

 Liabilities Rs. Assets Rs. Capitals: Fixed Assets 3,60,000 Himanshu               2,00,000 Current Assets 40,000 Vikrant                  1,40,000 3,40,000 Creditors 60,000 4,00,000 4,00,000

During the year 2016-17, Himanshu’s Drawings were Rs. 30,000 and Vikrant’s Drawings were Rs. 40,000. During the year 2016-17 the firm earned profits ofRs. 1,00,000. While distributing profits for the year 2016-17, interest on capital @ 5 % per annum and interest on drawings @ 12 % per annum were ignored.

Showing your workings clearly, pass necessary rectifying entry.          6

Solution:

Statement of Opening Capital

 Particulars Himanshu Vikrant Closing Capital 2,00,000 1,40,000 Add: Drawings 30,000 40,000 2,30,000 1,80,000 Less: Profit already Distributed 50,000 50,000 Opening Capital 1,80,000 1,30,000

Himanshu        Vikrant               Total

 5 % Interest on Capital (Cr.) 9,000 6,500 15,500 12 % Interest on Drawings (Dr.) 1,800 2,400 4,200 Profit to be recovered (Dr.) 5,650 5,650 11,300 Total (Dr.) 7,450 8,050 15,500 Adjustment 1,550(Cr.)1,550 (Dr.)

Journal

 Date Particulars L F Dr. Amount (Rs.) Cr. Amount (Rs.) 2017  Apr 1 Vikrant’s Capital Account                 Dr. 1,550 To Himanshu’s Capital Account 1,550 (Adjustment of interest on Capital and interest on drawings for previous year)

15. 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. Prepare ‘Discount on Issue of Debenture Account’ for the first three years starting from April 1, 2013. Also show your workings clearly. 6

Solution:

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 27,000 By Balance c/d 54,000 81,000 81,000 2014 Apr 1 To Balance b/d 54,000 2015 Mar 31 By Statement of Profit & Loss 27,000 By Balance c/d 27,000 54,000 54,000 2015 Apr 1 To Balance b/d 27,000 2016 Mar 31 By Statement of Profit & Loss 18,000 By Balance c/d 9,000 27,000 27,000

1.5+1.5+1.5=4.5

Working Notes

1.5

 Year ended Debentures Outstanding Ratio Discount               amount written off 31 March 2013 9,00,000 3 3/9x 81000 = 27,000 31 March 2014 9,00,000 3 3/9x 81000 = 27,000 31 March 2015 6,00,000 2 2/9x 81000 = 18,000 31 March 2016 3,00,000 1 1/9x 81000 = 9,000

16. 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:

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

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 Number of Shares Applied Number of Shares Allotted I 2,00,000 1,50,000 II 5,50,000 3,50,000

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 allotment. Manohar belonging to category II, who 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 fully 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. 8

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. The Final call was made after Forfeited of these shares. 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 Forfeited and reissue of Deepak’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 of ‘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.

Solution:

Journal

OR

(a)                                                                Share Forfeited Account

 Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.) To Share Capital Account 4,000 By Share Capital A/C 30,000 To  Capital Reserve A/C 16,000 To Balance c/d 10,000 30,000 30,000

½ X 4 =2

(b)                                                             Journal

 Date Particulars L F Dr. Amount (Rs.) Cr. Amount (Rs.) Share Capital Account Dr. 14,400 Securities Premium Reserve Dr. 2,160 To Share Forfeited Account 12,960 To Calls in Arrears Account 3,600 ( 720 Shares forfeited ) Bank Account Dr. 6,000 Share Forfeited Account Dr. 2,000 To Share Capital Account 8,000 (400 Shares re-issued @ Rs. 15 each) Share Forfeited Account Dr. 5,200 To Capital Reserve Account 5,200 (Gain on re-issue of forfeited shares transferred to capital reserve account)

Working Notes:

(i) Since the Shares are allotted in the proportion of 5 : 4, therefore for 900 applied shares, shares allotted are 4/5 X 900 = 720 Shares.

(ii) Application Money Received on 900 Shares = 900 X 16 = 14,400
Amount adjusted on Application = 720 X 16  =11,520
Amount to be adjusted on Allotment  =  2,880

(iii) Allotment Money due on 720 Shares = 720 X 7 = 5,040
Allotment Money not received  = 2,160

(iv) Calls in Arrears:

Allotment Money  = 2,160
First & Final Call Money
= 1,440
3,600
(1 mark for each correct Journal Entry and 1 mark for Working Notes)

(c)                                Journal

 Date Particulars L F Dr. Amount (Rs.) Cr. Amount (Rs.) Bank Account                                    Dr. 10,800 Share Forfeited Account                    Dr. 1,200 To  Share Capital Account 12,000 (1,200 Shares re-issued for Rs. 10,800 as fully paid up) Share Forfeited Account                             Dr. 7,200 To Capital Reserve Account 7,200 (Gain on re-issue of forfeited shares transferred to capital reserve account)

1 X 2 = 2

17. A, B & C were partners in a firm sharing profits & losses in proportion to their fixed capitals. Their Balance Sheet as at March 31, 2017 was as follows:

Balance Sheet

as at March 31, 2017

 Liabilities Rs. Assets Rs. Capitals: Bank 21,000 A 5,00,000 Stock 9,000 B 3,00,000 Debtors                                                     15,000 C 2,00,000 10,00,000 Less: Provision for Doubtful Debts 1,500 13,500 General Reserve 75,000 A's Loan 35,500 Creditors 23,000 Plant & Machinery 2,00,000 Outstanding Salary 7,000 Land & Building 6,00,000 B's Loan 15,000 Profit & Loss Account (For the year ending 31st March 2017) 2,41,000 11,20,000 11,20,000

On the date of above Balance Sheet, C retired from the firm on the following terms:

(i) Goodwill of the firm will be valued at two years purchase of the Average Profits of last three years. The Profits for the year ended March 31, 2015 & March 31, 2016 were Rs. 4,00,000&Rs. 3,00,000 respectively.

(ii) Provision for Bad Debts will be maintained at 5% of the Debtors.

(iii) Land & Building will be appreciated by Rs. 90,000 and Plant & Machinery Will be reduced to Rs. 1,80,000.

(iv) A agreed to repay his Loan.

(v) The loan repaid by A was to be utilized to pay C. The balance of the amount payable to C was transferred to his Loan Account bearing interest @ 12% per annum.

Prepare Revaluation Account, Partners’ Capital Accounts, Partners’ Current Accounts and the Balance Sheet of the reconstituted firm.   8

OR

P & K were partners in a firm. On March 31, 2017 their Balance Sheet was as follows:

Balance Sheet

as at March 31, 2017

 Liabilities Rs. Assets Rs. Capitals: Bank 18,000 p                                        3,00,000 Stock 19,000
 K                                                  2,00,000 5,00,000 Debtors 22,000 General Reserve 1,00,000 Less: Provision for Doubtful Debts 1,500 20,500 Creditors 50,000 Unexpired Insurance 5,000 Outstanding Expenses 8,000 Shares in X Limited 65,000 C's Loan 1,20,000 Plant & Machinery 1,45,500 Profit & Loss Account (Profit for 2016-17) 55,000 Land & Building 5,60,000 8,33,000 8,33,000

On April 1, 2017, they decided to admit C as a new partner for 1/4th share in profits on the following terms:

(i) C’s Loan will be converted into his capital.

(ii) C will bring his share of goodwill premium by cheque. Goodwill of the firm will be calculated on the basis of Average Profits of previous three years. Profits for the year ended March 31, 2015 and March 31, 2016 were Rs. 55,000 and Rs. 1,00,000 respectively.

(iii) 10% depreciation will be charged on Plant & Machinery and Land & Building will be appreciated by 5%.

(iv) Capitals of P & K will be adjusted on the basis C’s capital. Adjustments be done through bank and in case required overdraft facility be availed.
Pass necessary Journal entries on C’s admission.  8

Solution:Revaluation Account

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

Partners’ Current Accounts

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

Partners' Capital Accounts

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

Balance Sheet

as at  March 31, 2017

 Liabilities Amount (Rs.) Assets Amount (Rs.) Capitals: Bank 21,000 A 5,00,000 Stock 9,000 B 3,00,000 Debtors 15,000 8,00,000 Less: Provision for D. Debts 750 14,250 C's Loan 2,06,650 Plant & Machinery 1,80,000 Creditors 23,000 Land & Building 6,90,000 Outstanding Salary 7,000 A's Current Account 85,875 B's Loan 15,000 B's Current Account 51,525 10,51,650 10,51,650

OR

Journal

 Date Particulars L F Dr. Amount (Rs.) Cr. Amount (Rs.) C’s Loan Account                                  Dr. 1,20,000 To C’s Capital Account 1,20,000 (C’s Loan account transferred to his capital account) Bank Account                                             Dr. 17,500 To Premium for Goodwill Account 17,500 (New partner C brings in his share of goodwill) Premium for Goodwill Account                  Dr. 17,500 To P’s Capital Account 8,750 To K’s Capital Account 8,750 (Premium for Goodwill transferred to old partners’ capital accounts in their sacrificing ratio) Revaluation Account                                      Dr. 14,550 To Plant & Machinery Account 14,550 (Revaluation of Plant & Machinery on admission of new partner) Land & Building Account                                Dr. 28,000 To Revaluation Account 28,000 (Revaluation of Land & Building on admission of new partner ) Revaluation Account                                     Dr. 13,450 To P’s Capital Account 6,725 To K’s Capital Account 6,725 (Profit on revaluation transferred to partners’ capital accounts) General Reserve Account                              Dr. 1,00,000 To P’s Capital Account 50,000 To K’s Capital Account 50,000 (General Reserve transferred to partners’ capital account) Profit & Loss Account                                     Dr. 55,000 To P’s Capital Account 27,500 To K’s Capital Account 27,500 (Profit & Loss account transferred to partners’ capital account) P’s Capital Account                                        Dr. 2,12,975 K’s Capital Account                                           Dr. 1,12,975 To Bank Account 3,25,950 (Cash paid to P and K for adjustment of capital)

8

The document CBSE Sample Question Paper Accountancy (Part - 2) - 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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