12th Accountancy Paper Solutions Set 1 : CBSE Delhi 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 :

Given two main sources of income of a “Not for Profit Organisation”™.


Answer :

The following are the two main sources of income of a “Not for Profit Organisation”™.

(i) Subscription

(ii) Membership Fees/admission fees/entrance fees.

Q2 :

A and B are partners in a firm without a partnership deed. A is an active partner and claims a salary of Rs 18,000 per month. State with reason whether the claims is valid or not?


Answer :

A”™s claim is invalid. This is because in absence of a partnership deed or where the deed is silent, no salary is allowed to any partners of a partnership firm.

Q3 :

Define gaining ratio.


Answer :

Gaining ratio is the ratio in which the remaining (or continuing) partners acquires the share of profit of outgoing partner.

Algebraically, Gaining Ratio = New Ratio Old Ratio

Q4 :

State any two occasions when reconstruction of a partnership firm takes place.


Answer :

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

Give the meaning of “Calls in Arrears”™.


Answer :

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

On the basis of the information given below calculate the amount of Stationery to be debited to the “Income and Expenditure Account”™

of Good Health Sports Club for the year ended 31st March 2007.

 

1.4.2006

Rs

31.3.2007

Rs

Stock of Stationery

8,000

6,000

Creditors for Stationery

9,000

11,000

Stationery purchased during the year ended 31.3.2007 was Rs 47,000.


Answer :

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

PS Ltd. forfeited 500 equity shares of Rs 100 each for the non-payment of first, call of Rs 30 per share. The final call of Rs 10 per shares was not yet made. The forfeited shares were re-issued for Rs 65,000 fully paid up. Pass necessary Journal entries in the books of the company.


Answer :

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

X Ltd. purchased machinery for Rs 5,50,000 from Y Ltd. Rs 55,000 were paid by X Ltd. in cash and the balance was paid by issue of

9% debentures of Rs 1,000 each at 10% premium redeemable after three years. Pass necessary journal entries in the book of the company.


Answer :

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

Ravi and Mohan were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed capitals were Ravi Rs 10,00,000 and

Mohan Rs 7,00,000. The partnership deed provided for the following:

(i) Interest on Capital @12% p.a.

(ii) Ravi”™s salary Rs 6,000 per months and Mohan”™s salary Rs 60,000 per year.

The profit for the year ended 31.3.2007 was Rs 5,04,000 which was distributed equally, without providing for the above. Pass an adjustment entry.


Answer :

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

A, B and C were partners in a firm sharing profits in 3 : 2 : 1 ratio. The firm closes its books on 31st March every year. B dies on

12.6.2007. On B”™s death the goodwill of the firm was valued at Rs 60,000. On B”™s death his share in the profits of the firm till the time of his death was to be calculated on the basis of previous year”™s profit which was Rs 1,50,000. Calculate B”™s share in the profit of the firm. Pass necessary journal entries for the treatment of goodwill and B”™s share of profit at the time of his death.


Answer :

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

S Ltd. was registered with an authorized capital of Rs 4,00,000 divided into 40,000 equity shares of Rs 10 each. The company offered to the public for subscription 30,000 equity shares. Applications for 28,000 equity shares were received and allotment was made to all the application. All calls were made and were duly received except the final call of Rs 2 per shares on 200 shares. Prepare the balance sheet of the company showing the different categories of shares capital.


Answer :

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

Following is the Receipt and Payment Account of Literacy Club for the year ended 31.3.2006:

Receipts

Amount

Rs

Payments

Amount

Rs

Balance b/d

19,550

Salary

3,000

Subscription:

 

Newspapers

2,050

2004-2005

1,200

 

Electricity bill

1,000

2005-2006

26,500

 

Fixed deposit (On 1.7.2005 @ 9% p.a.)

20,000

2006-2007

500

28,200

Books

10,600

Sale of old newspapers

1,250

Rent

6,800

Government Grants

10,000

Furniture

10,500

Sale of old furniture

 

Balance c/d

11,200

(Book value Rs 7,000)

5,700

 

 

Interest on fixed deposits

450

 

 

 

65,150

 

66,150

 

 

 

 

Additional Information:

(i) Subscription outstanding as on 31.3.2005 were Rs 2,000 and on 31.3.2006 Rs 2,500.

(ii) On 31.3.2006 salary outstanding was Rs 600 and rent outstanding was Rs 1,200.

(iii) The club owned furniture Rs 15,000 and books Rs 7,000 on 1.4.2005.

Prepare Income and Expenditure Account of the Club for the year ended 31.3.2006 and ascertain “ Capital Fund”™ on 31.3.2005.


Answer :

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

A and B were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted C as a new partner. A surrendered 1/3 rd

of his share in favour of C and B surrendered 1/4 th of his share in favour of C. C brought Rs 1,50,000 for his share of capital and Rs

58,000 for his share of goodwill. Calculate new profit sharing ratio of A, B and C, sacrificing ratio of A and B and pass necessary

journal entries for the above transaction of C”™s admission.


Answer :

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

Pass necessary journal entries for the following transaction

(i) Issued 60,000, 9% debentures of Rs 75 each at premium of Rs 25 per debentures.

(ii) Purchased 3,000, 9% own debentures of Rs 100 each at Rs 97 each for immediate cancellation.

(iii) Converted 1,800, 9% debentures of Rs 100 each into 12% debentures of Rs 100 each issued at a premium of 25%.


Answer :

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

X and Y were partners in a firm sharing profits in 5 : 3 ratio. They admitted Z as a new partner for 1/3 rd share in the profits. Z was to

contribute Rs 20,000 as his capital. The balance sheet of X and Y on 1.4.2007 the date of Z”™s admission was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

27,000

Land and Building

25,000

Capital:

 

Plant and Machinery

30,000

X

50,000

 

Stock

 

15,000

Y

35,000

85,000

Debtors

20,000

 

General Reserve

16,000

Less: Provision for doubtful debts

1,500

18,500

 

 

Investment

20,000

 

 

Cash

19,500

 

1,28,000

 

1,28,000

 

 

 

 

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 contributions 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.

OR

The Balance Sheet of A, B and C who were sharing profits and losses in the ratio of 1/2 , 1/3 and 1/6 respectively, was as follows on 1.4.2004:

Liabilities

Amount

Rs

Assets

Amount

Rs

Bills Payable

6,400

Cash

25,650

Sundry Creditors

12,500

Bills Receivables

5,400

Capitals:

 

Debtors

17,800

A

40,000

 

Stock

22,300

B

25,000

 

Furniture

3,500

C

20,000

 

Plant and Machinery

9,750

Profit and Loss A/c

4,500

Building

24,000

 

1,08,400

 

1,08,400

 

 

 

 

A retired from the business on 1.4.2004 and his share in the firm was to be ascertained on the revaluation of the assets as follows:

Stock Rs 20,000; Furniture Rs 3,000; Plant and Machinery Rs 9,000; Building Rs 20,000; Rs 850 was to be provided for doubtful

debts. The goodwill of the firm was valued at Rs 6,000.

A was to be paid Rs 11,500 in cash on retirement and the balance in three equal yearly installments with interest at 9% per annum.

Prepare Revaluation Account, Partner”™s Capital Accounts and A”™s Loan Accounts on the date of his retirement.


Answer :

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

X Ltd. invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 2 per shares. The amount was payable as

follows:

On application Rs 6(including premium) per share.

On allotment Rs 3 per share and the balance on first and final call. Application for 90,000 shares were received. Application for 5,000 shares were rejected and pro rata allotment was made to the remaining applications. Over payments received on application was adjusted towards sums due to allotment. All calls were made and were duly received except the allotment and final call on 1,600 shares allotted to Vijay. These shares were forfeited and the forfeited shares were re-issued for Rs 18,400 fully paid up.

Pass the necessary Journal entries in the books of the company.

 

OR

Y Ltd. invited application for issuing 10,000 equity shares of Rs 100 each at a discount of 6%. The amount was payable as follows:

On application Rs 20 per share

On allotment Rs 44 per share and the balance on first and final call

Applications for 13,000 shares were received. Application for 500 shares were rejected and pro-rata allotment was made to be

remaining applications. Over payment received with application were adjusted towards sums due on allotment. All calls were made

and were duly received except Kanwar who had applied for 250 shares failed to pay allotment and call money. His shares were

forfeited. The forfeited shares were re-issued at Rs 22,000 fully paid up.

Pass necessary journal entries in the books of the company.


Answer :

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

Quick ratio of a company is 1.5 : 1. State giving reason whether the ratio will improve decline or not change on payment of dividend by the company.

 


Answer :

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

State whether conversion of debentures into equity shares by a financing company 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 finance company is classified under which kind of activity while preparing cash flow statements.

 


Answer :

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

List the major heading on the assets 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 Statements:

Particulars

2006

Rs

2007

Rs

Sales

6,00,000

8,00,000

Cost of Goods Sold

4,50,000

4,80,000

Indirect Expenses

10% of Gross Profit

20% of Gross Profit

Income Tax

40%

40%

 

 


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) Gross Profit Ratio

(ii) Working Capital Turnover Ratio and

(iii) Proprietary Ratio

Information:

Paid up capital

Rs 8,00,000

Current assets

Rs 5,00,000

Credit Sales

Rs 3,00,000

Cash Sales

75% of Credit sales

9% Debentures

Rs 3,40,000

Current Liabilities

Rs 2,90,000 and

Cost of goods sold

Rs 6,80,000

 


Answer :

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

From the following Balance Sheet of X Ltd. as on 31.3.2006 and 31.3.2007 prepare a Cash Flow statement:

Liabilities

2006

Rs

2007

Rs

Assets

2006

Rs

2007

Rs

Equity Share

4,00,000

7,50,000

Fixed

5,00,000

7,00,000

Capital

 

 

Assets

 

 

Profit and Loss

1,70,000

1,20,000

Stock

2,10,000

2,50,000

10% Debentures

2,00,000

1,80,000

Debtors

1,40,000

1,90,000

8% Preference Share

60,000

1,00,000

Bank

50,000

60,000

General Reserve

70,000

50,000

 

 

 

 

9,00,000

9,00,000

 

9,00,000

9,00,000

 

 

 

 

 

 

Additional Information: During the year machine costing Rs 80,000 was sold for Rs 50,000. Dividend paid Rs 80,000.

 


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.