CBSE Sample Question Paper Accountancy (Part - 3) - 2017 - 18 Notes | Study Sample Papers for Class 12 Commerce - Class 12

Class 12: CBSE Sample Question Paper Accountancy (Part - 3) - 2017 - 18 Notes | Study Sample Papers for Class 12 Commerce - Class 12

The document CBSE Sample Question Paper Accountancy (Part - 3) - 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 B

Option I

(Analysis of Financial Statements)

18. Give any two examples of cash inflows from operating activities other than cash receipts from sale of goods & rendering of services.  1

Solution: Any two of the followings:  

(i) Royalties

(ii) Commission Received

(iii) Sale of Scrap

½ X 2 = 1

19. 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 ofactivities the purchase of shares will be classified by P P Limited and G G Limited? 1                        

Solution:   For P P Limited: Investing Activity            ½

For G G Limited: Investing Activity                            ½

20. 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, 2013 and Rules thereunder’ 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  true & fair 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:

(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.    4

Solution: (a) 

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

3

(b) Any two of the following values: Transparency, Honesty, Abiding the Law. (Or any other relevant value)      1

21. 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

Solution: Interest Coverage Ratio= Net Profit before Interest and Tax/ Interest on Long Term Debts

Net Profit after Tax = Rs. 6,00,000Tax Rate = 40 %

Net Profit before tax = 100/(100 – Tax) X Net Profit after tax

= 100/ 60 X 6,00,000 = 10,00,000

Net Profit before Interest & Tax = Net Profit before tax + Interest on Long Term Debts

= 10,00,000 + 4,80,000 = 14,80,000

Interest Coverage Ratio= Net Profit before Interest and Tax / Interest on Long Term Debts    1

= 14,80,000 / 4,80,000 = 3.08 Times                    1

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.       1 

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

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

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:

 

50,00,000

80,00,000

  1. Employee Benefit Expenses: 10 % of Revenue from Operations
  2. Other Expenses

 

10,00,000

12,00,000

Tax Rate 40 %

 

Prepare Comparative Statement of Profit & Loss of X L Limited.4

Solution:                                                                  X L Limited

Comparative Statement of Profit & 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

50,00,000

80,00,000

30,00,000

60

Expenses:

 

 

 

 

(a) Employee Benefit Expenses: 10 % of Revenue from

 

 

 

 

Operations

5,00,000

8,00,000

3,00,000

60

(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

(1 mark for each column)4

23. From the following Balance Sheet of Ajanta Limited as on March 31, 2017, prepare a Cash Flow Statement:

 

Particulars Note Number 31-3-2017
(Rs.)
31-3-2016
(Rs.)
I.Equity and Liabilities      
(1) Shareholders’ Funds      
(a) Equity Share Capita   10,00,000 10,00,000
(b) Reserves and Surplus 1 2,40,000 1,20,000
(2) Non- Current Liabilities      
Long-Term Borrowings- 9 % Debentures   3,20,000 2,40,000
(3) Current Liabilities      
(a) Trade Payables 2 1,80,000 2,40,000
(b) Other Current Liabilities 3 1,80,000 1,60,000
Total   19,20,000 17,60,000
II. Assets      
(1) Non-Current Assets      
(a) Fixed Assets      
Tangible Assets 4 13,40,000 12,00,000
(b) Non-Current Investments 5 2,40,000 1,60,000
(2) Current Assets      
(a) Inventories   1,20,000 1,60,000
(b) Trade Receivables   1,60,000 1,60,000
(c) Cash and Cash Equivalents   60,000 80,000
Total   19,20,000 17,60,000

 

Notes to Accounts

Note Number

Particulars

31-3-2017 (Rs.)

31-3-2016 Rs.)

1

Reserves and Surplus

General Reserve

1,20,000

1,20,000

 

Balance in Statement of Profit & Loss

1,20,000

 

 

 

2,40,000

1,20,000

2

Trade Payables

Creditors

1,40,000

1,20,000

 

Bills Payable

40,000

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

14,90,000

13,00,000

 

Accumulated Depreciation

(1,50,000)

(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

 

Additional Information: 

(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.          8

Solution:                                                        

Ajanta Limited

Cash Flow Statement

for the year ended 31st March, 2014

Particulars   Amount
I – CASH FLOW FROM OPERATING ACTIVITIES    
Surplus: Balance in the Statement of Profit & Loss     
Adjustment for Non- Cash and Non-Operating Items 1,20,000  
Depreciation                                                                                      65,000    
Loss on sale of Machinery                                                                3,000    
Interest on Debentures                                                                     28,800    
  96,800  
Operating Profit before changes in working capital 2,16,800  
Add: Decrease in Current Assets and Increase in Current Liabilities    
Inventories                                                                                 40,000    
Outstanding Rent                                                                     20,000    
Creditors                                                                                  20,000 80,000  
Less: Increase in Current Assets and Decrease in Current Liabilities Bills Payable (80,000)  
  2,16,800  
Cash Flow from Operating Activities   2,16,800
II- CASH FLOW FROM INVESTING ACTIVITIES        
Purchase of Machinery   (2,40,000)  
Sale of Machinery 32,000  
Purchase of Shares in XYZ Limited (80,000)  
  (2,88,000)  
Cash Flow from Investing Activities   (2,88,000)
III- CASH FLOW FROM FINANCING ACTIVITIES     80,000  
Issue of 9 % Debentures (28,800)  
  51,200  
Cash Flow from Financing Activities   51,200
Net Cash Flow    (20,000)
Add: Opening Balance of Cash and Cash Equivalents   80,000
Closing Balance of Cash and Cash Equivalents   60,000

2+1+1

Plant & Machinery Account

 

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

To Balance b/d

To Bank Account

13,00,000

2,40,000

By Bank Account

By Accumulated Depreciation Account

By Statement of Profit & Loss

By Balance c/d

32.000

  1.  3,000

14,90,000

15,40,000

15,40,000


1

Accumulated Depreciation Account

 

Particulars

Amount

(Rs.)

Particulars

Amount

(Rs.)

To Plant & Machinery Account

To Balance c/d



15,000

1,50,000

By Balance b/d

By Statement of Profit & Loss



1,00,000

65,000

1,65,000

1,65,000

1

The document CBSE Sample Question Paper Accountancy (Part - 3) - 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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