Mock Test 2 for CBSE Examination - Accountancy Class 12 - Commerce PDF Download

Mock test -2

Time Allowed: 3 Hrs.                                                                                                 Max. Marks: 80

General Instructions:-

(i)         This question paper contains two parts A and B.

(ii)        All parts of the question should be attempted at one place.

PART A

Q.1.     In the absence of any agreement, the partners are entitled to share profits in the ratio of their capitals. True or false give reasons to support your answer?

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Q.2.     At what rate will be the Interest on deceased partners capital be provided for?

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Q.3.     Green Ltd. purchases business of Red Ltd. The amount payable by issuing 1,000 equity shares of Rs.10 each at par. 1,500, 15% debentures of Rs.100 each at 10% premium and Rs.10,000 by issuing cheque. Find the amount of purchase consideration was:

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Q.4.     If a fixed amount is withdrawn on the last day of every month of a calendar year, the interest on total amount of drawings will be calculated for _________ months?

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Q.5.     X who applied for 100 shares was allotted 80 shares. The amount demanded was Rs.2 on application, Rs.2 on allotment, Rs.2 as first call and Rs.3 or second call. X was able to pay only the amount of application. Find the amount of arrear on allotment? 

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Q.6.     Under which head does the capital reserve appears in the balance sheet  

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Q.7.     Ram and Shyam were partners in a firm. After crediting the profits of the year Rs.2,00,000 in their Capital Accounts, the balances of their capitals were: Ram Rs.4,00,000 and Shyam Rs.3,00,000. During the year Ram withdrew Rs.80,000 and Shyam Rs.1,00,000. It was found that interest on Capital and Drawings @ 10% p.a, as provided in the Partnership Deed had not been allowed and charged to the Partners’ Capital Accounts.

Pass the necessary adjustment entry.  

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Q.8.     April 2012, Z Ltd. had 1,000, 12% Debentures of Rs.100 each. On 1st October 2014, Z Ltd. purchased 300 Own Debentures at Rs.93 for investment purpose and sold the same @ Rs.99 after a few months, The company had sufficient Funds in Debenture Redemption Reserve. Record the necessary journal entries on the date of purchase and sale.

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Q.9.     Brown and Polson Ltd. decided to diversify its business by spreading knowledge and information about environmental protection by creating a protection theme. As an active corporate citizen of the global society, Brown and Polson Ltd. has a clear and firm philosophy about its social responsibilities: Through its various Corporate Social Responsibility (CSR) Campaigns, the company fulfills the needs of its employees and local communities. During 2013-14, the company decided to open a new unit in the remote area of Uttar Pradesh. It invited applications for 1,00,000 equity shares of Rs.10 each; the whole amount being payable alongwith application and allotment. For raising more funds, the company also issued 50,000; 9% debentures of Rs.10 each. The whole amount was paid alongwith application and allotment.   

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(a) Pass necessary journal entries.

(b) Identify the value involved in the above case.

Q.10.   Shankar and Shambhu are partners in a firm. On 01.04.2014, they decided to admit Narad as a partner with 1/4th share in the profits of the firm and on the same date Shambhu retired from the firm. Narad brings. 2,00,000 as his share of capital. Shankar and Narad decide to share future profits in the ratio of 3:1. On that date value of the total assets of the firm is Rs.5,40,000 and outside liabilities were Rs.1,00,000. Shankar and Narad decided to conduct collection drive in schools and colleges for food, clothes, books and blankets etc. for the flood victims of Assam.                                                                                                    

(a) Give the necessary journal entry to record goodwill at the time of Narad’s admission. Also show your workings clearly.

(b) Identify the value(s) involved.

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Q.11.   Creation Ltd. purchased a running business from M/s Gupta Brothers for a sum of Rs.15,00,000, payable as 12,000 shares of  Rs.10 each at a premium of 20% and balance in cash. The assets and liabilities consisted of the following:

You are required to pass the necessary Journal entries in the company’s books.

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Q 12. Copper Ltd. had an authorised capital of Rs.5,00,000 divided into equity shares of Rs.10 each. The company offered for subscription Rs.2,50,000 shares. The issue was fully subscribed. The amount payable on application was Rs.2 per share. Rs.4 per share were payable each on allotment and first and final call. A shareholder holding 250 shares failed to pay the allotment money. His shares were forfeited. The company did not make the final call.

Show how the ‘share capital’ will be shown in the company’s balance sheet. Also prepare Notes to Accounts for the same.  

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Q.13.   A and B are partners sharing profits and losses in the ratio of 3 : 1. Their capitals were: A— Rs.60,000; B— Rs.20,000. They decided to change the profit sharing ratio to 5 : 3 with effect from 1st January, 2014. The Goodwill of the firm is to be valued at 2 years’ purchase of 3 years’ average profits. They also decided that their capitals should be proportionate to their profit-sharing ratio. The profits of the firm for 2011, 2012 and 2013 were Rs.22,000; Rs.28,000 and Rs.34,000 respectively.

Pass the necessary Journal entries. Also show the Partners’ Capital Accounts.

Q.14.   Pass the necessary Journal entries for the following transactions on the dissolution of the firm of P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account:

            (i) Bank Loan Rs.12,000 was paid

            (ii) Stock worth Rs.16,000 was taken over by partner Q.

            (iii) Partner P paid a creditor Rs.4,000.

            (iv) An asset not appearing in the Books of Accounts realised Rs.1,200.

            (v) Expenses of realisation of Rs.2,000 were paid by partner Q.

            (vi) Profit on realisation Rs.36,000 was distributed between P and Q in 5 : 4 ratio.  

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Q.15.   X and Y were partners in a firm sharing profits in 5 3 ratio. They admitted Z as a new partner for 1/3rd share in the profits. Z was to contribute Rs.20,000 as his capital. The Balance Sheet of X and Y on 1.4.2014 the date of Z’s admission was as follows :

 Other terms agreed upon were:

            (i) Goodwill of the firm was valued at Rs.12,000.

            (ii) Land and Building were to be valued at Rs.35,000 and Plant and Machinery at Rs.25,000.

            (iii) The provision for doubtful debts was found to be in excess by Rs.400.

            (iv) A liability for Rs.1,000 included in sundry creditors was not likely to arise.

            (v) The capitals of the partners be adjusted on the basis of Z’s contribution of capital in the firm.

            (vi) Excess or shortfall, if any, to be transferred to current accounts.

Prepare Revaluation Account; Partners’ Capital Accounts and the Balance Sheet of the new firm.

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Q.16.   (a) Sure and Fast Ltd. invited applications for 1,00,000 Equity Shares of Rs.10 each, payable as Rs.2 on Application, Rs.3 on Allotment and the balance on First and Final call. Applications were received for 3,00,000 shares and the shares were allotted on a pro-rata basis. The excess application money was to be adjusted against allotment only. R, a shareholder, who had applied for 3,000 shares, failed to pay the call money and his shares were forfeited accordingly and re-issued at Rs.8 per share as fully paid.

Pass the necessary Journal entries.  

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(b)        Name the value which is duly considered in the process of allotment of shares. Also give the importance of such value from investors’ point of view.    

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Or

(a)        Seema Ltd. invited applications for issuing 2,00,000 Equity Shares of Rs.10 each at a premium of Rs.3 per share. The amount was payable as follows:

            on Application Rs.5 per share (including premium)

            on Allotment Rs.5 per share

            on First and Final call, the balance

            Applications for 2,60,000 shares were received. Applications for 20,000 shares were rejected. To the remaining applicants, shores were allotted on pro-rata basis. Excess money received on applications was adjusted with sum due on allotment. Call was made and was duly received except the First and Final call of Mr. Sudhir who applied for 2,400 shares. His shares were forfeited. The forfeited shares were reissued for Rs.28,000 fully paid-up.

Pass the necessary Journal entries for the above transactions in the books of the company.

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(b)        Which value has been affected by rejecting the applications of the applicants who had applied for 20,000 shares? Suggest a better alternative for the same.

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Q.17.   A, B and C are partners in a firm sharing profits and losses equally. The Balance Sheet of the firm as at 31st March, 2014 stood as follows:

C retires on this date subject to the following adjustments:

(a) Freehold property be valued at Rs.58,000.

(b) Investments be valued at Rs.4,700; and Stocks be valued at Rs.9,400.

(c) A Provision of 5% to be made for Doubtful Debts.

(d) Trademarks are valueless.

(e) An item of Rs.1,200 included in Creditors is not likely to be claimed.

(f) Goodwill be valued at one year’s purchase of the average profits of the past three years, viz., 2011- Rs.12,000; 2012- Rs.10,000 and 2013- Rs.9,500.

Pass the Journal entries, giving Capital Accounts and the Balance Sheet of the remaining partners.

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Or

On 31st March, 2014 the Balance Sheet of W and R who shared profits in 3 : 2 ratio was as follows:

 On this date B was admitted as a partner on the following conditions:

(i)         B will get 4/15th share of profits.

(ii)        B had to bring Rs.30,000 as his capital to which amount other partners’ capitals shall have to be adjusted.

(iii)       He would pay cash for his share of Goodwill which would be based on 2� years’ purchase of average profits of past 4 years.

(iv)       The assets would be revalued as under:

Sundry debtors at book value less 5% provision for bad debts. Stock at Rs.20,000, Plant and Machinery at Rs.40,000.

(v)        The profits of the firm for the years 2011, 2012 and 2013 were Rs.20,000; Rs.14,000 and Rs.17,000 respectively.

Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm.

PART B

Q.18.   Cash withdrawn from Bank would result in inflow , outflow or no flow of cash.

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Q.19.   Dividend received by a Finance Company is classified as which activity  

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Q.20.   a. How will you disclose the following items while preparing the Balance Sheet of a company?

            (i) Provision for tax; (ii) advance payment of tax

            b.     name all the items appearing in the balance sheet under the head of inventory

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Q.21.   (a) From the following information, determine Opening Inventory (Stock) and Closing Inventory (Stock) :

 Inventory (Stock) Turnover Ratio : 5 times;

 Total Revenue from Operations Rs.2,00,000;

Gross Profit Ratio 25% and Closing Stock (Inventory) is more by Rs.4,000 than the Opening Stock (Inventory).                                                                                                                                                

(b)        The current ratio of a company is 3 : 1. State, giving reasons, which of the following would improve, reduce or not change the ratio:

            (i) Redemption of debentures;

            (ii) Purchase of computer for cash Rs.35,000;

            (iii) Purchase of land by issuing debentures and

            (iv) Issue of shares for cash.

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Q.22.   Prepare Comparative income Statement from the following:

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Q.23.   Balance Sheets of Bright Ltd. as at 31.3.2013 and 31.3.2014, were as follows:

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Notes to Accounts :

ADDITIONAL iNFORMATION:

1.         Depreciation provided during the year 2013-2014; Rs.20,000.

2.         Divided paid during the year 2013-2014; Rs.20,000.

3.         During the year 2013-2014 machinery having book value Rs.50,000 was sold for Rs.40,000.