12th Accountancy Paper Solutions Set 1 : CBSE Delhi Previous Year 2011

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 :

What is the basis for preparing an Income and Expenditure Account in the case of Not-for-Profit Organisation.


Answer :

Income and Expenditure Account is prepared on Accrual Basis of Accounting. As per this basis, all incomes and expenses related to the current year (whether received/paid or not) of revenue nature are recorded in the Income and Expenditure Account.

Q2 :

Distinguish between Fixed and Fluctuating Capitals Accounts.

 


Answer :

Basis

Fixed Capital

Fluctuating Capital

Capital  Balance

Generally, the capital balance of the partner remains unchanged except in case where capital is withdrawn or additional capital is introduced.

Under this method, capital balance of the partners keeps on changing from year to year.

Number of Accounts

In this method, two separate accounts are maintained namely, Partners”™ Capital Account and Partners”™ Current Account.

In this method, only one account is maintained i.e. Partners”™ Capital Account.

 

Q3 :

State the two main rights that a newly admitted partner acquires in the firm.

 


Answer :

On the admission, the new partner acquires the following two rights.

  1. Right to share the future profits of the firm
  2. Right to share in the assets of the firm

Q4 :

How does the market situation affect the value of goodwill of a firm?

 


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Q5 :

Pass the necessary Journal entry when 10,000 debentures of Rs 100 each are issued as collateral security against a Bank loan of Rs 8,00,000

 


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Q6 :

From the following information of a club show the amounts of match expenses and match fund in the Financial Statement of the Club for the year ended on 31st March, 2009 and 31st March, 2010.

Details

Amount

Rs

Match expenses (Paid during the year 2009-2010)

30,000

Match Fund (as on 31-3-2009)

17,000

Donation for Match Fund (Received during the year 2009 – 2010)

9,000

Proceeds from the sale of match tickets (Received during the year 2009-2010)

3,000

 


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Q7 :

Y Ltd. purchased furniture costing Rs 1,35,000 from AB Ltd. The payment was made by issue of Equity Shares of Rs 10 each at a discount of Re 1 per share. Pass necessary Journal entries in the books of Y Ltd.

 


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Q8 :

X Ltd. redeemable 100, 6% Debentures of Rs 100 each by converting them into Equity Shares of Rs 100 each. The 6% Debentures were redeemable at 10% premium for which the Equity Shares were issued at 25% premium. Pass the necessary Journal entries for the redemption of above mentioned debentures in the books of X Ltd.

 


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Q9 :

A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. The following was the Balance Sheet of the firm as on 31 3-2010.

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

 

Sundry Assets

80,000

A

60,000

 

 

B

20,000

 

 

 

80,000

 

80,000

 

 

 

 

The profits Rs 30,000 for the year ended 31-3-2010 were divided between the partners without allowing interest on capital @ 12% p.a. and salary to A @ Rs 1,000 per month. During the year A withdrew Rs 10,000 and B Rs 20,000.

Pass the necessary adjustment journal entry and show your working clearly.


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Q10 :

A business has earned average profits of Rs 1,00,000 during the last few years and the normal rate of return in similar business is 10%.

Find out the value of Goodwill by

(i) Capitalisation of super profit method and

(ii) Super profit method if the goodwill is valued at 3 years purchase of super profit.

The assets of the business were Rs 10,00,000 and its external liabilities Rs 1,80,000.


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Q11 :

Pass the necessary Journal entries of the issues and redemption of Debentures in the following cases:

(i) 10,000, 10% Debentures of Rs 120 each issued at 5% premium, repayable at par.

(ii) 20,000, 9% Debentures of Rs 200 each issued at 20% premium, repayable at 30% premium.

 


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Q12 :

From the following items of Receipts and Payments Account of Young Ladies Club, prepare an Income and Expenditure Account for the year ended 31-3-2010.

Particulars

Amount Rs

Salaries paid

50,000

Lighting and Heating

5,000

Printing and Stationery (Including Rs 500 for the previous year)

3,500

Subscription received (Including Rs 2,000 received in advance

40,000

and Rs 5,000 for the previous year)

 

Net proceeds of Refreshment Room

45,000

Miscellaneous Expenses

16,000

Interest paid on Loan of half year

1,200

Rent and Rates (Including Rs 1,000 prepaid)

7,500

Locker rent received

4,500

Additional Information:

Subscriptions in arrears on 31-3-2010 were Rs 8,000 and half year”™s interest on loan was also outstanding.

 


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Q13 :

Pass the necessary Journal entries for the following transaction 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 assets not appearing in the books of accounts realized Rs 1,200.

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

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

 


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Q14 :

On 1st April, 2008 a company made an issue of Rs 2,00,000, 6% Debentures of Rs 100 each, repayable at a premium of 10%. The terms of issue provided for the redemption of 400 debentures every year starting from the end of 31-3-2010 either by purchase from the open market or by draw of lots at the company”™s option.

On 31-3-2010, the company purchased for cancellation 300 debentures at 95% and 100 debentures at 90%.

Pass the necessary Journal entries for the issue and redemption of debentures assuming that the company had already created the

Debentures Redemption Reserve A/c by the require amount.

 


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Q15 :

X Ltd. issued 40,000 Equity shares of Rs 10 each at a premium of Rs 2.50 per share.

The amount was payable as follows:

On Application- Rs 2 per share

On Allotment- Rs 4.50 per share (Including premium) and on call- 6 per share

Owing to heavy subscription the allotment was made on pro-rata basis as follows:

(a) Applicants for 20,000 shares were allotted 10,000 shares.

(b) Applicants for 56,000 shares were allotted 14,000 shares.

(c) Applicants for 48,000 shares were allotted 16,000 shares.

It was decided that excess amount received on applications would be utilized on allotment and the surplus would be refunded.

Ram to whom 1,000 shares were allotted, who belongs to category (a), failed to pay allotment money. His share were forfeited after the call.

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

 

OR

 

Given Journal entries to record the following transaction of forfeiture and re-issue of shares and open share forfeited account in the books of the respective companies.

(i) C Ltd. forfeited 1,000 shares of Rs 100 each issued at a discount of 8%. On these shares the first call of Rs 30 per share was not received and the final call of Rs 20 per share was yet to be called. These shares were subsequently re-issued at Rs 70 per share Rs 80 paid up.

(ii) L Ltd. forfeited 470 equity share of Rs 10 each issued at a premium of Rs 5 per share for non-payment of allotment money of Rs 8 per share (including share premium Rs 5 per share) and the first and final call of Rs 5 per share. Out of these 60 Equity share were subsequently re-issued at Rs 14 per share.

 


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Q16 :

M, N and O were partners in a firm sharing profit and losses equally. Their Balance Sheet on 31-12-2009 was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

 

Plant and Machinery

60,000

M

70,000

 

Stock

30,000

N

70,000

 

Sundry Debtors

95,000

O

70,000

2,10,000

Cash at Bank

40,000

General Reserve

30,000

Cash in Hand

35,000

Creditors

20,000

 

 

 

2,60,000

 

2,60,000

 

 

 

 

N died on 14th March, 2010. According to the Partnership Deed, executors of the deceased partner are entitled to:

(i) Balance of partners”™ capital account.

(ii) Interest on capital @ 5% p.a.

(iii) Share of goodwill calculated on the basis of twice the average of past three year”™s profits and

(iv) Share of profits from the closure of the last accounting year till the date of death on the basis of twice the average of three completed year”™s profit before death.

Profits for 2007, 2008 and 2009 were Rs 80,000, Rs 90,000, Rs 1,00,000 respectively. Show the working for deceased partners”™ share of goodwill and profits till the date of his death. Pass the necessary journal entries and prepare N”™s Capital Account to be rendered to his executors.

OR

On 31-3-2010 the Balance Sheet of W and R who shared profits in 3 : 2 ratio was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

20,000

Cash

5,000

Profit and Loss Account

15,000

Sundry Debtors

20,000

 

Capital Accounts:

 

Less: Provision

(700)

19,300

W

40,000

 

Stock

25,000

R

30,000

70,000

Plant and Machinery

35,000

 

 

Plants

20,700

 

1,05,000

 

1,05,000

 

 

 

 

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

(a) “B”™ will get 4/15th share profits.

(b) “B”™ had to bring Rs 30,000 as his capital to which amount other Partners capital shall have to be adjusted.

(c) He would pay cash for his share of goodwill which would be based on 2½ years purchase of average profits of past 4 years.

(d) The assets would be revalued as under:

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

(e) The profits of the firm for the years 2007, 2008 and 2009 were Rs 20,000; Rs 14,000 and Rs 17,000 respectively.

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

 


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Q17 :

What is meant by a “Common Size Statement”™?


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Q18 :

Give the meaning of “Cash Flow”™.


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Q19 :

State with reason whether deposit of cash into Bank will result into inflow, outflow or no flow of cash.


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Q20 :

List the items which are shown under the heading current liabilities and provisions as per Schedule VI Part-I of the Companies”™ Act,

1956.


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Q21 :

Prepare a Comparative Income Statements from the following information.

Particulars

2009

Rs

2010

Rs

Sales

10,00,000

12,50,000

Cost of goods sold

5,00,000

6,50,000

Carriage inwards

30,000

50,000

Operating expenses

50,000

60,000

Income tax

50%

50%


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Q22 :

On the basis of the following information, calculate:

(i) Debt-Equity Ratio and

(ii) Working Capital Turnover Ratio

Information

Particulars

Amount Rs

Net Sales

60,00,000

Cost of goods sold

45,00,000

Other current assets

11,00,000

Current liabilities

4,00,000

Paid up share capital

6,00,000

6% Debentures

3,00,000

9% Loan

1,00,000

Debentures Redemption Reserve

2,00,000

Closing Stock

1,00,000

 


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Q23 :

From the following Balance Sheet of Vijay Ltd. as on 31-3-2009 and 31-3-2010 prepare a Cash Flow Statement.

Liabilities

31-3-2009

Rs

31-3-2010

Rs

Assets

31-3-2009

Rs

31-3-2010

Rs

Share Capital

45,000

65,000

Fixed Assets

46,700

83,000

General Reserve

15,000

27,500

Stock

11,000

13,000

Profit and Loss Account

10,000

15,000

Debtors

18,000

19,500

Trade Creditors

8,700

11,000

Cash

2,000

2,500

 

 

 

Preliminary Expenses

1,000

500

 

78,700

1,18,500

 

78,700

1,18,500

 

 

 

 

 

 

Additional Information:

(i) Depreciation on Fixed assets for the year 2009-2010 was Rs 14,700

(ii) An interim dividend Rs 7,000 has been paid to the shareholders during the year.


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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.