12th Accountancy Paper Solutions Set 1 : CBSE Delhi Previous Year 2010

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 :

State the basis of accounting on which a Receipts and Payments account is prepared in case of a not for profit organisation.


Answer :

Receipts and Payments Account is prepared on Cash Basis of Accounting. As per this basis, all receipts are debited and all payments are credited to Receipts and Payments Account.

Q2 :

What is meant by “Unlimited liability of a Partner”?


Answer :

“Unlimited liability of a Partner”™ implies that in case the assets of a partnership firm falls short to pay its outside liabilities, the personal property of the partners can be utilised in order to discharge its liabilities.

Q3 :

State the need for treatment of Goodwill on admission of a Partner.

 


Answer :

After the admission, the new partner gets a share in the firm's goodwill. This goodwill is earned by the old partners and is attributed to their efforts and hard work in the past (before the admission of the new partner). Therefore, at the time of admission, the new partner compensates the old partners to acquire his share of goodwill. Hence, the need for the treatment of the goodwill at the time of admission arises. 

Q4 :

What are Preliminary Expenses?


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Q5 :

How does the factor “location” affect the goodwill of a firm?


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Q6 :

From the following information, calculate the amount of subscription outstanding for the year 2008-09.

A Club has 250 members each paying an annual subscription of Rs 1,000. The Receipts and Payments account for the year showed a sum of Rs 2,65,000 received as subscription. The following additional information is provided.

Particulars

Amount Rs

Subscription Outstanding on 31st March, 2008

40,000

Subscription Received in advance on 31st March 2009

30,000

Subscription Received in advance on 31st March 2008

12,000

 


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Q7 :

S.S.S. Ltd., has a paid up share capital of Rs 60,00,000 and a balance of Rs 15,00,000 in the securities premium account. The company management do not want to carry over this balance. State the purpose for which this balance can be utilised.


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Q8 :

DN Ltd. issued 50,000 shares of Rs 10 each at a discount of 10% payable as Rs 2 per share on application, Rs 3 on allotment and Rs 2 each on first and final call. Applications were received for 70,000 shares. It was decided that (a) refuse allotment of the applicants for 10,000 shares (b) allot 20,000 shares to Mohan who had applied for similar number and (c) allot the remaining shares on pro-rata basis. Mohan failed to pay to allotment money and Sohan who belonged to category “C”™, and was allotted 3,000 shares paid both the calls with allotment. Calculate the amount received on allotment.


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Q9 :

A, B and C were partners. Their capitals were Rs 30,000; Rs 20,000 and Rs 10,000 respectively. According to the partnership deed they were entitled to an interest on capital at 5% p.a. In addition B was also entitled to draw a salary of Rs 500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year were Rs 30,000, distributed in the ratio of their capitals without providing for any of the above adjustment. The profits were to be shared in the ratio of 2 : 2 : 1.

Pass the necessary adjustment entry showing the workings clearly.

 


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Q10 :

A, B and C were partners sharing profits in the ratio of 6 : 4 : 5. Their capitals were A- Rs 1,00,000, B- Rs 80,000 and C- Rs 60,000.

On 1st April 2009, B retired from the firm and the new profit sharing ratio between A and C was decided as 11 : 4. On B”™s retirement the goodwill of the firm was valued at Rs 1,80,000. Showing your calculation clearly pass necessary journal entry for the treatment of goodwill on B”™s retirement.

 


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Q11 :

X Ltd., had Rs 8,00,000, 9% debentures due to be redeemed out of profits on 1st Oct., 2009 at a premium of 5%. The company had a

Debenture Redemption Reserve of Rs 4,14,000. Pass necessary journal entries at the time of redemption.

 


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Q12 :

From the following information of a not for profit organization, show the “sports material”™ items in the “Income and Expenditure

Account”™ for the year ending 31st March, 2009 and the Balance Sheets as on 31st March 2008 and 31st March, 2009.

Particulars

31-3-2008

Rs

31-3-2009

Rs

Stock of Sports Material

2,200

5,800

Creditors for sports material

7,800

9,200

Advance to suppliers for sports material

15,000

25,000

Payment to supplies for the sports material during the year was Rs 1,20,000, there were no cash purchase made.


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Q13 :

(a) X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. On April 1st 2009, X retires from the firm, Y and Z agree that the capital of the new firm shall be fixed at Rs 2,10,000 in the profit sharing ratio. The Capital Accounts of Y and Z after all adjustment on the date of retirement showed balances of Rs 1,45,000 and Rs 63,000 respectively. State the amount of actual cash to be brought in or to be paid to the partners.

 

(b) A, B and C are partners in a firm whose books are closed on March 31st each year. A died on 30th June 2009 and according to the agreement the share of profits of a deceased partner up to the date of the death is to be calculated on the basis of the average profits for the last five year. The net profit of the last 5 years have been: 2005 − Rs 14,000; 2006 − Rs 18,000; 2007 − Rs 16,000, 2008 − Rs 10,000 (loss) and 2009 − Rs 16,000. Calculate A”™s share of the profits upto the date of death and pass necessary journal entry.

 


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Q14 :

Suresh Ltd., on 1st April 2006 acquired assets of the value of Rs 6,00,000 and liabilities worth Rs 70,000 from P & Co., at an agreed value of Rs 5,50,000. Suresh Ltd. issued 12% Debentures of Rs 100 each at a premium of 10% in full satisfaction of purchase consideration. The Debentures were redeemable 3 years later at a premium of 5%. Pass entries to record the above including redemption of debentures.

 


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Q15 :

X Ltd. issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows:

Rs 3 on application

Rs 6 on allotment (including premium) and Rs 3 on call

Applications were received for 75,000 shares and a pro-rata allotment was made as follows:

To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All money due were received except the allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for Rs 7 per share fully paid up. Pass necessary Journal Entries for the above transaction.

 

OR

 

Janta Ltd., invited application for issuing 2,00,000 equity share 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 call-balance amount

The issue was undersubscribed to the extent of 20,000 shares. Shares were allotted to all the application. All calls were made and were dully received. “A”™ to whom 1,500 shares were allotted failed to pay allotment and call money and “B”™ to whom 1,200 share were allotted paid the full amount due at the time of allotment. The share on which allotment and call money was not received were forfeited. The forfeited shares were re-issued at Rs 8 per share fully paid up.

Pass necessary journal entries in the books of Janta Ltd., for the above transaction.

 


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Q16 :

A, B and C were partners sharing profits in the ratio of 3 : 1 : 1. Their Balance-Sheet as on March 31st 2009, the date on which they dissolve their firm, was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

 

Sundry Assets

17,000

A

27,500

 

Stock

7,800

B

10,000

 

Debtors

24,200

 

C

7,000

44,500

Less: Provision for doubtful debts

(1,200)

23,000

Loan

1,500

Bills Receivable

1,000

Creditors

6,000

Cash

3,200

 

52,000

 

52,000

 

 

 

 

It was agreed that:

(a) A to take over Bills Receivable at Rs 800, debtors amounting to Rs 20,000 at 17,200 and the creditors of Rs 6,000 were to be paid by him at this figure.

(b) B is to take over all stock for Rs 7,000 and some sundry assets at Rs 7,200 (being 10% less than the book value)

(c) C to take over remaining sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs 300.

(d) The expenses of realization were Rs 270

The remaining debtors were sold to a debt collecting agency at 50% of the book value. Prepare Realisation A/c, Partners Capital A/c and Cash A/c

OR

On 31st March, 2009 the Balance Sheet of Ram and Shyam, who were sharing profits in the ratio of 3 : 1 was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

2,800

Cash at bank

2,000

Employees”™ provident fund

1,200

Debtors

6,500

 

General Reserve

2,000

Less: Reserve for bad debts

(500)

6,000

Capitals

 

Stock

3,000

Ram

6,000

 

Investment

5,000

Shyam

4,000

10,000

 

 

 

16,000

 

16,000

 

 

 

 

They decided to admit, Mohan on April 1st 2008 for 1/5th share on the following terms:

(i) Mohan shall bring Rs 6,000 as his share of premium.

(ii) That unaccounted accrued income of Rs 100 be provided for.

(iii) The market value of investment was Rs 4,500.

(iv) A debtor whose dues of Rs 500 was written off as bad debts paid Rs 400 in full settlement.

(v) Mohan to brings in capital to the extent of 1/5th of the total capital of the new firm.

Prepare Revaluation A/c, Partners Capital A/c and the Balance Sheet of the new firm.


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Q17 :

State any one objective of Financial Statements Analysis.


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Q18 :

Under which type of activity will you classify “Issuing 9% Debentures”™ while preparing Cash Flow Statements?


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Q19 :

Declaration of Final dividend would result in inflow, outflow or no flow of cash. Give your answer with reason.


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Q20 :

From the following information provided prepare a comparative income statement for the period 2008 & 2009.

Particulars

2008

2009

Sales (Rs)

6,00,000

9,00,000

Gross Profit

40% on sales

50% on sales

Administrative expenses

20% of Gross profit

15% of Gross profit

Income tax

50%

50%

 


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Q21 :

(a) A business has a current ratio of 3 : 1 and quick ratio of 1.2 : 1. If the working capital is Rs 1,80,000, calculate the total Current Assets and Value of Stock.

(b) From the given information calculate the Stock Turnover Ratio. Sales Rs 2,00,000; G.P: 25% on cost; Stock at the beginning is 1/3 of the stock at the end which was 30% of sales.


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Q22 :

Assuming that the Debt-Equity ratio is 2. State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases (Any Four)

(a) Purchase of fixed assets on a credit of 2 months

(b) Purchase of fixed assets on a long term deferred payment basis.

(c) Issue of New shares for cash

(d) Issue of Bonus shares

(e) Sale of fixed asset at a loss of Rs 3,000


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Q23 :

From the following Balance Sheets, Prepare a Cash Flow Statements as per AS- 3(revised)

Liabilities

2008

Amount

Rs

2009

Amount

Rs

Assets

2008

Amount

Rs

2009

Amount

Rs

Share Capital

12,000

15,000

Furniture

5,000

8,000

P & L Account

5,000

6,000

Stock

6,000

4,000

Creditors

15,000

11,000

Debtors

10,000

8,000

 

 

 

Cash

11,000

12,000

 

32,000

32,000

 

32,000

32,000

 

 

 

 

 

 

A dividend of Rs 3,000 was paid during the year 2008-09


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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.