12th Accountancy Paper Solutions Set 1 : CBSE All India Previous Year 2008

General Instructions:
(i) This question paper contains three parts A, B and C.
(ii) Part A is compulsory for all candidates.
(iii) Candidates can attempt only one part of the remaining parts B and C.
(iv) All parts of the questions should be attempted at one place.
(v) Questions Nos. 1-5 and 17-19 carries 1 mark each. 
(vi) Questions Nos. 6-8 and 20 carries 3 marks each. 
(vii) Questions Nos. 9-11 and 27-22 carries 4 marks each. 
(viii) Questions Nos. 12-14 and 23 carries 6 marks each. 
(ix) Questions Nos. 15-16 carries 8 marks each.
Q1 :

Distinguish between Income and Expenditure Account and Receipt and Payment Account on the basis of nature of items recorded therein.


Answer :

In Income and Expenditure Account only items of revenue nature are recorded. On the other hand, items of both revenue as well as capital nature are recorded in the Receipt and Payment Account.

Q2 :

Ram and Mohan are partners in a firm without any partnership deed. Their capitals are Ram Rs 8,00,000 and Mohan Rs 6,00,000.

Ram is a active partner and looks after the business. Ram wants that profits should be shared in proportion of capitals state with reason whether his claim is valid or not


Answer :

Ram”™s claim is invalid. This is because in absence of a partnership deed or where the deed is silent, profits of a partnership firm are distributed equally among all the partners of the firm.

Q3 :

Define goodwill


Answer :

Goodwill is an intangible asset of a firm. It is the value of a firm”™s reputation and its good brand name in the market. A positive goodwill helps a firm to earn supernormal profits compared to its competitors that earns normal profits.

In the words of Lord Eldon, “Goodwill is nothing more than the probability, that the old customers will resort to the old place.”

Q4 :

State any two reason for the preparation of “Revaluation Account”™ on the admission of a partners.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q5 :

Given the meaning of “minimum subscription”™.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q6 :

Calculate the amount of sports material to be debited to the Income and Expenditure Account of Capital Sports Club for the year ended 31.3.2007 on the basis of the following information:

Particulars

1.4.2006

Rs

31.3.2007

Rs

Stock of Sports Material

7,500

6,400

Creditors for Sports Material

2,000

2,600

Amount paid for sports material during the year was Rs 19,000.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q7 :

Samta Ltd. forfeited 800 equity shares of Rs 100 each for the non-payment of first call of Rs 30 per share. The final call of Rs 20 per

share was not yet made. Out of the forfeited shares 400 were re-issued at the rate of Rs 105 per share fully paid up.

Pass necessary Journal entries in the books of Samta Ltd. for the above transaction.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q8 :

Deepak Ltd. purchased furniture Rs 2,20,000 from M/s Furniture Mart. 50% of the amount was paid to Furniture Mart by accepting a

bill of exchange and for the balance the company issued 9% debentures of Rs 100 each at a premium of 10% in favour of Furniture

Mart.

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


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q9 :

Kumar and Raja were partners in a firm sharing profits in the ratio of 7 : 3. Their fixed capitals were: Kumar Rs 9,00,000 and Raja Rs

4,00,000. The partnership deed provided for the following but the profit for the year was distributed without providing for:

(i) Interest on capital @ 9% per annum.

(ii) Kumar”™s salary Rs 50,000 per year and Raja”™s salary Rs 3,000 per month.

The profit for the year ended 31.3.2007 was Rs 2,78,000.

Pass the adjustment entry.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q10 :

P, Q and R were partners in a firm sharing profits in 2 : 2 : 1 ratio. The firm closes its books on 31 March every year. P died three

months after that last accounts were prepared. On the date the goodwill of the firm was valued at Rs 90,000. On the death of a partner

his share of profit in the year of death was to be calculated on the basis of the average profits of the last four years. The profits of last

four years were:

Year ended 31.3.2007 Rs 2,00,000

Year ended 31.3.2006 Rs 1,80,000

Year ended 31.3.2005 Rs 2,10,000

Year ended 31.3.2004 Rs 1,70,000 (Loss)

Pass the necessary journal entries for the treatment of goodwill and P”™s shares of profit on his death. Show clearly the calculation of

P”™s share of profit.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q11 :

Sagar Ltd. was registered with an authorized capital of Rs 1,00,00,000 dividend into 1,00,000 equity shares of Rs 100 each. The

company offered for public subscription 60,000 equity shares. Application for 56,000 shares were received and allotment was made to

all the applicants. All the calls were made and were duly received except the second and final call of Rs 20 per share on 700 shares.

Prepare the Balance Sheet of the company showing the different types of shares capital.

 


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q12 :

Following is the Receipt and Payment Account of Indian Sports Club for the year ended 31.12.2006:

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

10,000

Salary

15,000

Subscriptions

52,000

Billiards Table

20,000

Entrance Fees

5,000

Office Expenses

6,000

Tournament Fund

26,000

Tournament Expenses

31,000

Sale of old newspapers

1,000

Sports Equipment

40,000

Legacy

37,000

Balance c/d

19,000

 

1,31,000

 

1,31,000

 

 

 

 

Other Information:

On 31.12.2006 subscription outstanding was Rs 2,000 and on 31.12.2005 subscription outstanding was Rs 3,000. A salary outstanding

on 31.12.2006 was Rs 1,500.

On 1.1.2006 the club had building Rs 75,000, furniture Rs 18,000, 12% investment Rs 30,000 and sports equipment Rs 30,000.

Depreciation charged on those items including purchased was 10%.

Prepare Income and expenditure account of the Club for the year ended 31.12.2006 and ascertain the Capital Fund 31.12.2005.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q13 :

K and Y were partners in a firm sharing profits in 3 : 2 ratio. They admitted Z as a new partners for 1/3 rd share in the profits of the firm. Z acquired his share from K and Y in 2 : 3 ratio. Z brought Rs 80,000 for his capital and Rs 30,00 for his 1/3rd shares as premium. Calculate the new profit sharing ratio of K, Y and Z and pass necessary journal entries for the above transaction in the books of the firm.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q14 :

Pass the necessary journal entries in the books of Varun Ltd. for the following transaction:

(i) Issued 58,000, 9% debentures of Rs 1,000 each at premium of 10%.

(ii) Converted 350, 9% debentures of Rs 100 each into equity shares of Rs 10, each issued at a premium of 25%.

(iii) Redeemed 450, 9% debentures of Rs 100 each by draw of lots.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q15 :

R, S and T were partners in a firm sharing profits in 2 : 2 : 1 ratio. On 1.4.2004 their Balance Sheet was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Bank Loan

12,800

Cash

51,300

Sundry Creditors

25,000

Bills Receivable

10,800

Capitals:

 

Debtors

35,600

R

80,000

 

Stock

44,600

S

50,000

 

Furniture

7,000

T

40,000

1,70,000

Plant and Machinery

19,500

Profit and Loss A/c

9,000

Building

48,000

 

2,16,800

 

2,16,800

 

 

 

 

S retired from the firm on 1.4.2004 and his share was ascertained on the revaluation of assets as follows:

Stock Rs 40,000; Furniture Rs 6,000; Plant and Machinery Rs 18,000; Building Rs 40,000; Rs 1,700 were to be provided for doubtful

debts. The goodwill of the firm was valued at Rs 12,000.

S was to be paid Rs 18,080 in cash on retirement and the balance in three equal yearly instalments.

Prepare Revaluation Account, Partner”™s Capital Accounts, S”™s Loan Account and Balance Sheet on 1.4.2004.

OR

D and E were partners in a firm sharing profits in 3 : 1 ratio. On 1.4.2007 they admitted F as a new partner for 1/4th share in the firm which he acquired from D. Their Balance Sheet that date was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

54,000

Land and Building

50,000

Capitals

 

Machinery

60,000

D

1,00,000

 

Stock

15,000

E

70,000

1,70,000

Debtors

40,000

 

General Reserve

32,000

Less: Provision for bad debts

3,000

37,000

 

 

Investment

50,000

 

 

Cash

44,000

 

2,56,000

 

2,56,000

 

 

 

 

F will bring Rs 40,000 as his capital and the other terms agreed upon were:

(i) Goodwill of the firm was valued at Rs 24,000

(ii) Land and Building were valued at Rs 70,000

(iii) Provision for bad debts was found to be in excess by Rs 800

(iv) A liability, for Rs 2,000 included in sundry creditors was not likely to arises.

(v) The capital of the partners be adjusted on the basis of F”™s contribution of capital to the firm.

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

Prepare Revaluation Account, Partners”™ Capital Account and the Balance Sheet of the new firm.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q16 :

Janata Ltd. invited application for issuing 70,000 equity shares of Rs 10 each at a premium of Rs 2 per share. The amount was payable

as follows:

On application Rs 4 per share (including premium)

On allotment Rs 3 per share

On First and final call - Balance.

Application for 1,00,000 share were received. Applications for 10,000 shares were rejected. Shares were allotted to the remaining

applicants on pro-rata basis. Excess money received with applications were adjusted towards sums due in allotment. All calls were

made and were duly received except first and final call on 700 shares allotted to Kanwar. His shares were forfeited. The forfeited

shares were re-issued for Rs 77,000 fully paid up.

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

OR

Shubham Ltd. invited applications for the allotment of 80,000 equity shares of Rs 10 each at a discount of 10%. The amount was payable as follows:

On application Rs 2 per share

On allotment Rs 3 per share

On first and final - Balance

Applications for 1,10,000 shares were received. Application for 10,000 shares were rejected. Shares were allotted on pro-rata basis to the remaining applicants. Excess application money received on application was adjusted towards sums due on allotment. All calls were made and were duly received. Manoj who had applied for 2,000 shares failed to pay the allotment and first and final call. His shares were forfeited. The forfeited shares were re-issued for Rs 24,000 fully paid up.

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


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q17 :

The stock turnover ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change

because of increase in the value of closing stock by Rs 5,000.

 


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q18 :

State whether the payment of cash to creditors will result in inflow, outflow or no flow of cash.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q19 :

Dividend paid by a manufacturing company is classified under which kind of activity while preparing cash flow statement?


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q20 :

Show the major heading on the liabilities side of the Balance Sheet of a company as per schedule VI Part I of the companies Act,

1956.


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q21 :

From the following information prepare a Comparative Income Statement of Victor Ltd.

 

2006

Rs

2007

Rs

Sales

15,00,000

18,00,000

Cost of goods sold

11,00,000

14,00,000

Indirect Expenses

20% of Gross Profit

25% of Gross Profit

Income Tax

50%

50%

 


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q22 :

From the following information calculate any two of the following ratios:

(i) Net Profit Ratio

(ii) Debt-Equity Ratio

(iii) Quick Ratio

Information:

 

Rs

Paid up Capital

20,00,000

Capital Reserve

2,00,000

9% Debentures

8,00,000

Net Sales

14,00,000

Gross Profit

8,00,000

Indirect Expenses

2,00,000

Current Assets

4,00,000

Current Liabilities

3,00,000

Opening Stock

50,000

Closing Stock- 20% more than opening stock

 


Answer :

Please Register/Login to get access to all solutions Facebook Login
Q23 :

From the following Balance Sheet of Som Ltd. as on 31.3.2006 and 31.3.2007 prepare of Cash Flow Statement:

Liabilities

2006

Rs

2007

Rs

Assets

2006

Rs

2007

Rs

Equity Share Capital

2,00,000

5,00,000

Fixed Assets

3,00,000

4,50,000

Profit and Loss

1,25,000

25,000

Stock

1,00,000

1,50,000

10% Debentures

1,00,000

75,000

Debtors

75,000

1,25,000

8% Preference Share Capital

50,000

75,000

Bank

45,000

65,000

General Reserve

45,000

1,15,000

 

 

 

 

5,20,000

7,90,000

 

5,20,000

7,90,000

 

 

 

 

 

 

During the year a machine costing Rs 70,000 was sold for Rs 15,000. Dividend paid Rs 24,000.

 


Answer :

Please Register/Login to get access to all solutions Facebook Login

12th Accountancy Paper Solutions Set 2 : CBSE All India Previous Year 2013 will be available online in PDF book soon. The solutions are absolutely Free. Soon you will be able to download the solutions.