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

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) 

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

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

(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:

Notes to Accounts

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

2+1+1

Plant & Machinery Account

1

Accumulated Depreciation Account

1