12th Accountancy Paper Solutions Set 1 : CBSE Delhi Previous Year 2012

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 21-22 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 :

Name the financial statement prepared by a Not-For-Profit Organisation on accrual basis.


Answer :

Income and Expenditure Account is prepared by a Not-For-Profit Organisation on accrual basis.

Q2 :

State the provisions of Indian Partnership Act regarding the payment of remuneration to a partner for the services rendered.


Answer :

As per the Indian Partnership Act, in absence of any partnership deed, no salary or any kind of remuneration is allowed to the partners against their services.

Q3 :

For which share of Goodwill a partner is entitled at the time of his retirement?


Answer :

At the time of retirement of a partner, the retiring partner is entitled to share the goodwill as per his/her profit share in the business. This share of goodwill will be compensated by the remaining partners in the ratio in which they have purchased the share of the retiring partner.

Q4 :

State any two occasions on which a firm can be reconstituted.


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Q5 :

Give any one advantage for the redemption of debentures by purchase in the open market?


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Q6 :

From the following information, calculate the amount of income from subscriptions to be shown in the Income and Expenditure Account for the year ended 31-3-2011: 

Subscriptions received during the year 2010-2011

Rs

3,40,000

Subscriptions outstanding as on 31-3-2011

Rs

47,000

Subscriptions received in advance as on 31-3-2011

Rs

35,000

Subscriptions outstanding as on 1-4-2010

Rs

28,000

Subscriptions received in advance as on 1-4-2010

Rs

25,000

 


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Q7 :

Jain Ltd. purchased Building for Rs 10,00,000 from Gupta Ltd. 10% of the payable amount was paid by a cheque drawn in favour of Gupta Ltd. The balance was paid by issue of Equity Shares of Rs 10 each at a discount of 10%.

Pass necessary Journal Entries in the books of Jain Ltd. 


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Q8 :

Narain Laxmi Ltd. invited applications for issuing 7500, 12% Debentures of Rs100 each at a premium of Rs 35 per Debenture. The full amount was payable on application.

 

Applications were received for 10,000 Debentures. Applications for 2500 Debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants.

 

Pass necessary Journal Entries for the above transactions in the books of Narain Laxmi Ltd.

 


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Q9 :

Arun and Arora were partners in a firm sharing profits in the ratio of 5 : 3. Their fixed capitals on 1-4-2010 were: Arun Rs 60,000 and Arora Rs 80,000. They agreed to allow interest on capital @ 12% p.a. And to charge on drawings @ 15% p.a. The profit of the firm for the year ended 31-3 2011 before all above adjustments were Rs 12,600. The drawings made by Arun were Rs 2,000 and by Arora Rs 4,000 during the year. Prepare Profit and Loss Appropriation Account of Arun and Arora. Show your calculations clearly. The interest on capital will be allowed even if the firm incurs loss.  


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Q10 :

Arjun, Bhim and Nakul are partners sharing profits & losses in the ratio of 14 : 5 : 6 respectively.

Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill of the firm is valued at 2 years purchase of super profits based on average profits of last 3 years. The profits for the last 3 years are Rs 50,000, Rs 55,000 & Rs 60,000 respectively. The normal profits for the similar firm are Rs 30,000. Goodwill already appears in the books of the firm at Rs 75,000.

The profit for the first year after Bhim's retirement was Rs 1,00,000. Give the necessary Journal

Entries to adjust Goodwill and distribute profits showing your workings.


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Q11 :

Shakti Ltd. decided to redeem its 750, 12% Debentures of Rs 100 each. The company purchased 500 Debentures at Rs 94 per Debenture from the open market. The remaining debentures were redeemed out of profits. The company had already made a provision for Debenture Redemption Reserve in its books.

 

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

 


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Q12 :

Pass necessary Journal Entries for the following transactions in the books of Sudarshan Ltd.

(i) Redeemed 750, 12% Debentures of Rs 75 each by converting into Equity Shares of Rs 100 each. The Equity Shares were issued at a discount of 10%.

(ii) Converted 550, 12% Debentures of Rs 1,000 each into New 13% Debentures of Rs 100 each.

The New Debentures were issued at a premium of 10%.


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Q13 :

Verma and Sharma were partners sharing profits in the ratio of 3 : 1. On 31-3-2011 their Balance

Sheet was as follows:

Balance Sheet of Verma and Sharma

as on 31-3-2011

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

 

Land and Building

70,000

Verma

1,20,000

 

Machinery

60,000

Sharma

80,000

2,00,000

Debtors

80,000

Creditors

70,000

Bank

60,000

 

 

 

 

 

 

 

 

 

2,70,000

 

2,70,000

 

 

 

 

 

The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows:

(i) Creditors of Rs 50,000 took over Land and Building in full settlement of their claim.

(ii) Remaining Creditors were paid in cash.

(iii) Machinery was sold at a depreciation of 30%.

(iv) Debtors were collected at a cost of Rs 500.

(v) Expenses of realisation were Rs 1,700.

Pass necessary Journal Entries for dissolution of the firm.


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Q14 :

From the following “Receipt and Payments Account”™ of “Green Delhi Club”™ for the year ended

31-3-2011, prepare “Income and Expenditure Account”™.

Receipts and Payments Account of 'Green Delhi Club'

for the year ended 31-3-2011

Dr.

 

Cr.

Receipts

Amount

Rs

Payments

Amount

Rs

To Balance b/d

13,200

By Salary

(paid for 11 months)

2,200

To Subscriptions

 

25,500

By Rent

800

To Entrance Fee

 

2,000

By Electricity

3,500

To Donations (includes Rs 1,000 for Buildings)

3,000

By Takes

2,600

To Hall Rent

2,500

By Printing and Stationery

800

To Sale of Investments

(Book value Rs 4,000)

3,500

By Books

10,000

 

 

By 9% Fixed Deposits

(on 31-1-2011)

13,000

 

 

By Balance c/d

16,800

 

49,700

 

49,700

 

 

 

 

 


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Q15 :

“B”™ and “C”™ were partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as on 31-3-2011 was as follows:

Balance Sheet of B and C

as on 31-3-2011

 

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital:

 

 

Land and Building

80,000

“B”™

60,000

 

Machinery

20,000

“C”™

40,000

1,00,000

Furniture

10,000

 

 

 

Debtors

25,000

Provision for bad debts

1,000

Cash

16,000

Creditors

 

60,000

Profit and Loss Account

10,000

 

 

 

 

 

 

1,61,000

 

1,61,000

 

 

 

 

 

“D”™ was admitted to the partnership for 1/5th share in the profits on the following terms:

(i) The new profit sharing ratio was decided as 2:2:1.

(ii) D will bring Rs 30,000 as his capital and Rs 15,000 for his share of goodwill.

(iii) Half of goodwill amount was withdrawn by the partner who sacrificed his share of profit in favour of “D”™.

(iv) A provision of 5% for bad and doubtful debts was to be maintained.

(v) An item of Rs 500 included in Sundry Creditors was not likely to be paid.

(vi) An provision of Rs 800 was to be made for claims for damages against the firm.

After making the above adjustments the Capital Accounts of “B”™ and “C”™ were to be adjusted on the basis of D”™s Capital. Actual cash wash to be brought in or to be paid off as the case may be.

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

OR

'G', 'E' and 'F' were partners in a firm sharing profits in the ratio of 7 : 2 : 1. The Balance Sheet of the firm as on 31st March, 2011 was as follows:

Balance Sheet of 'G', 'E' and 'F'

as on 31st March, 2011

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

 

Goodwill

40,000

“G”™

70,000

 

Land & Buildings

60,000

“E”™

20,000

 

Machinery

40,000

“F”™

10,000

1,00,000

Stock

7,000

General Reserve

20,000

Debtors

12,000

Loan from “E”™

30,000

Cash

5,000

Creditors

14,000

 

 

 

1,64,000

 

1,64,000

 

 

 

 

 

“E”™ died on 24th August 2011. Partnership deed provides for the settlement of claims on the death of a partner of a partner in addition to his capital as under:

(i) The share of profit of deceased partner to be computed up to the date of death on the basis of average profits of the past three years which was Rs 80,000.

(ii) His share in profit/loss on revaluation of assets and re-assessment of liabilities which were as follows:

Land and Buildings were revalued at Rs 94,000, Machinery at Rs 38,000 and Stock at Rs 5,000. A provision of was to be created on debtors for bad and doubtful debts.

(iii) The net amount payable to 'E's executors was transferred to his Loan Account, to be paid later on.

Prepare Revaluation Account, Partner's Capital Accounts, E's Executor A/c and Balance Sheet of 'G' and 'F' who decided to continue the business keeping their capital balances in their new profit sharing ratio. Any surplus or deficit to be transferred to current accounts of the partners.


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Q16 :

Shyam Ltd. invited applications for issuing 80,000 Equity Shares of Rs 10 each at a premium of Rs 40 per share. The amount was payable as follows:  

On Application Rs 35 per share (including Rs 30 Premium)

On Allotment Rs 8 per share (including Rs 4 Premium)

On First and Final Call − Balance

Applications for 77,000 shares were received. Shares were allotted to all the applicants. Sundram to whom 7,000 shares were allotted failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Satyam the holder of 500 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 1,000 shares were re-issued at Rs 50 per share fully paid up. The re-issued shares included all the shares of Satyam.

Pass necessary Journal Entries for the above transactions in the books of Shyam Ltd.

OR

Jain Ltd. Invited applications for issuing 35,000 Equity Shares of Rs 10 each at a discount o

10%. The amount was payable as follows:

On Application Rs 5 per share.

On Allotment Rs 3 per share

On First and Final Call − Balance

Applications for 50,000 shares were received. Applications for 8,000 shares were rejected and the application money of these applicants was refunded. Shares were allotted on pro-rata basis to the remaining applicants and the excess money received with applications from these applicants was adjusted towards sums due on allotment. Jeevan who had applied for 600 shares failed to pay allotment and first and final call money. Naveen the holder of 400 shares failed to pay first and final call money. Shares of Jeevan and Naveen were forfeited. Of the forfeited 800 shares were re-issued at Rs 15 per share fully paid up. The re-issued shares included all the shares of Naveen.

Pass necessary Journal Entries for the above transactions in the books of Jain Ltd.


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Q17 :

State the significance of Analysis of Financial Statements to the “Lenders”™.


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Q18 :

State the purpose of preparing a “Cash Flow Statement”™.


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Q19 :

While preparing Cash Flow Statements what type of activity is, “Payments of Cash to acquire Debentures by an investment company?


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Q20 :

O.M. Ltd has a Current Ratio of 3.5 : 1 and Quick Ration of 2 : 1. If the excess of Current Assets over Quick Assets as represented by Stock is Rs 1,50,000, calculate Current Assets and Current Liabilities.


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Q21 :

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

(a) Debt-Equity Ratio

(b) Working Capital Turnover Ration and

(c) Return on Investment

Information: Equity Share capital Rs 50,000, General Reserve Rs 5,000; Profit and Loss

Account after tax and interest Rs 15,000; 9% Debenture Rs 20,000; Creditors Rs 15,000; Land and Building Rs 65,000; Equipments Rs 15,000; Debtors Rs 14,500 and Cash Rs 5,500. Discount on issue of shares Rs 5,000

Sales for the year ended 31-3-2011 was Rs 1,50,000. Tax rate 50%.


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Q22 :

Following is the Income statements of Raj Ltd. For the year ended 31-3-2011:

Particulars

Amount

Rs

Income:

 

Sales

2,00,000

Other Incomes

15,000

Total Income

2,15,000

 

 

Expenses:

 

Cost of goods sold

1,10,000

Operating expenses

5,000

Total Expenses

1,15,000

Tax

40,000

Prepare a common size Income Statements of Raj Ltd. for the year ended 31-3-2011.


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Q23 :

From the following Balance Sheets of Sonam Ltd as on 31-3-2012 and 31-3-2011.

Prepare a Cash Flow Statements:

Liabilities

31-3-2011

Rs

31-3-2011

Rs

Assets

31-3-2011

Rs

31-3-2011

Rs

Equity Shares Capital

Profit and Loss Account

Bank Loan

Proposed Dividend

Provision for tax

Creditors

1,00,000

 

25,000

 

50,000

20,000

 

10,000

15,000

 

1,50,000

 

50,000

 

25,000

15,000

 

17,500

11,250

Patents

Building

Investment

Debtors

Stock

Cash

 

 

 

 

12,500

1,50,000

-

50,000

2,500

5,000

11,250

1,50,000

18,750
63,750

3,750

21,250

 

 

2,20,000

2,68,750

 

2,20,000

2,68,750

 

 

 

 

 

Additional Information:

During the year a Building having book value Rs 50,000 was sold at a loss of Rs 2,000 and deprecation charged on Building was Rs 4,000


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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.