12th Accountancy Paper Solutions Set 2 : CBSE All India Previous Year 2015

General Instructions:
1) This question paper contains two parts A and B.
2) Part A is compulsory for all.
3) Part B has two options-Financial statement Analysis and Computerised Accounting.
4) Attempt only one option of Part B.
5) All parts of a question should be attempted at one place.

Section A
i. This section consists of 18 questions.
ii. All the questions are compulsory.
iii. Question Nos. 1 to 6 are very short-answer questions carrying 1 mark each.
iv. Question Nos. 7 to 10 carry 3 marks each.
v. Question Nos. 11 and 12 carry 4 marks each.
vi. Question Nos. 13 to 15 carry 6 marks each.
vii. Question Nos. 16 and 17 carry 8 marks each.

Section B
i. This section consists of 6 questions.
ii. All questions are compulsory
iii. Question Nos. 18 and 19 are very short-answer questions carrying 1 mark each.
iv. Question Nos. 20 to 22 carry 3 marks.
v. Question No. 23 carries 6 marks.

Q1 :

Nirman Ltd. issued 50,000 equity shares of Rs 10 each. The amount was payable as follows :

On application − Rs 3 per share
On allotment − Rs 2 per share
On first and final call − The balance

Applications for 45,000 shares were received and shares were allotted to all the applicants. Pooja, to whom 500 shares were allotted, paid her entire share money at the time of allotment, whereas Kundan did not pay the first and final call on his 300 shares. The amount received at the time of making first and final call was :
(i) Rs 2,25,000
(ii) Rs 2,20,000
(iii) Rs 2,21,000
(iv) Rs 2,19,500


Answer :

Calculation of amount received with first call

Hence, the correct answer is option (iii).

Q2 :

Give the meaning of forfeiture of shares.


Answer :

Cancellation of shares on non-payment of due calls is known as forfeiture of shares.

Q3 :

Anant, Gulab and Khushbu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. From 1.4.2014, they decided to share the profits equally. For this purpose the goodwill of the firm was valued at Rs 2,40,000.
Pass necessary journal entry for the treatment of goodwill on change in the profit sharing ratio of Anant, Gulab and Khushbu.


Answer :

 

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

 

 

 

 

 

 

 

Gulab”™s Capital A/c

Dr.

 

8,000

 

 

Khushbu”™s Capital A/c

Dr.

 

32,000

 

 

   To Anant”™s Capital A/c

 

 

 

40,000

 

(Gulab and Khushbu, being the gaining partners compensated Anant for his share of sacrifice)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Working Notes:

WN1 Calculation of Sacrificing Ratio

WN2 Adjustment of Goodwill


Gulab and Khushbu, being the gaining partner will pay Anant, a sacrificing partner in the ratio of their gain i.e. 1 : 4.

Q4 :

On the death of a partner, his share in the profits of the firm till the date of his death is transferred to the :
(i) Debit of Profit and Loss Account.
(ii) Credit of Profit and Loss Account.
(iii) Debit of Profit and Loss Suspense Account
(iv) Credit of Profit and Loss Suspense Account


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Q5 :

Geeta, Sunita and Anita were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 1.1.2015 they admitted Yogita as a new partner for 1/10th share in the profits. On Yogita's admission, the Profit and Loss Account of the firm was showing a debit balance of Rs 20,000 which was credited by the accountant of the firm to the capital accounts of Geeta, Sunita and Anita in their profit sharing ratio. Did the accountant give correct treatment ? Given reason in support of your answer.


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Q6 :

In the absence of Partnership Deed, interest on loan of a partner is allowed :
(i) at 8% per annum.
(ii) at 6% per annum.
(iii) no interest is allowed.
(iv) at 12% per annum.


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Q7 :

State any three purposes other than 'issue of bonus shares' for which securities premium can be utilized.


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Q8 :

On 1.4.2013, Brij and Nandan entered into partnership to construct toilets in government girls schools in the remote areas of Uttarakhand. They contributed capitals of Rs 10,00,000 and Rs 15,00,000 respectively. Their profit sharing ratio was 2 : 3 and interest allowed on capital as provided in the Partnership Deed was 12% per annum. During the year ended 31.3.2014, the firm earned a profit of Rs 2,00,000.
Prepare Profit and Loss Appropriation Account of Brij and Nandan for the year ended 31.3.2014


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Q9 :

'India Auto Ltd.' is registered with an authorised capital of Rs 7,00,00,000 divided into 7,00,000 shares of Rs 100 each. The company issued 50,000 shares to the vendor for building purchased and 2,00,000 shares were issued to the public. The amount was payable as follows :

On application and allotment – Rs 20 per share

On first call – Rs 50 per share

On second and final call – The balance

All calls were made and were duly received except on 100 shares held by Rajani, who failed to pay the second and final call. Her shares were forfeited.

Present the 'Share Capital' in the Balance Sheet of the company as per Schedule VI Part I of the Companies Act, 1956. Also prepare 'Notes to Accounts'.


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Q10 :

'Good Blankets Ltd.' are the manufacturers of woollen blankets. Blankets of the company are exported to many countries. The company decided to distribute blankets free of cost to five villages of Kashmir Valley destroyed by the recent floods. It also decided to employ 100 young persons from these villages in their newly established factory at Solan in Himachal Pradesh. To meet the requirements of funds for starting its new factory, the company issued 50,000 equity shares of Rs 10 each and 2,000 8% debentures of  Rs 100 each to the vendors of machinery purchased for Rs 7,00,000.
Pass necessary journal entries for the above transactions in the books of the company. Also identify any one value which the company wants to communicate to the society.


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Q11 :

The following is the Balance Sheet of A, B and C as on  31th March, 2014.
 

Liabilities

Amount

Rs

Assets

Amount

Rs

Sundry Creditors

4,500

Cash in hand

300

Reserve Fund

4,800

Cash at bank

7,500

Capitals Accounts :

 

Stock

9,000

A

15,000

 

Debtors

9,000

     B 7,500   Furniture 12,000

C

7,500

30,000

Tools

1,500

 

39,300

 

39,300

 

 

 

 

'C' died on 30th June,  2014. Under the terms of Partnership Deed, the executors of the deceased partner were entitled to :
(a) Amount standing to the credit of partner's capital account.
(b) Interest on capital @ 6% per annum.
(c) Share of goodwill on the basis of twice the average of past three years profits.
(d) Share of profit from the closing of last financial year to the date of death on the basis of last year's profit. The profits of the last three years were as follows :

Year Profit
Rs
2011 – 2012 9,000
2012 – 2013 10,500
2013 – 2014 12,000

The firm closes its books on 31th March every year. The partners shared profits in the ratio of their capitals.

Prepare C's Capital Account to be presented to his executors.


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Q12 :

Prem, Param and Priya were partners in a firm. Their fixed capitals were Prem Rs 2,00,000; Param Rs 3,00,000 and Priya Rs 5,00,000. They were sharing profits in the ratio of their capitals. The firm was engaged in the sale of ready-to-eat food packets at three different locations in the city, each being managed by Prem, Param and Priya. The outlet managed by Prem was doing more business than the outlets managed by Param and Priya. Prem requested Param and Priya for a higher share in the profits of the firm which Param and Priya accepted. It was decided that the new profit sharing ratio will be 2 : 1 : 2 and its effect will be introduced retrospectively for the last four years. The profits of the last four years were Rs 2,00,000; Rs 3,50,000; Rs 4,75,000 and Rs 5,25,000 respectively.
Showing your calculations clearly, pass a necessary adjustment entry to give effect to the new agreement between Prem, Param and Priya.


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Q13 :

'Ananya Ltd' had an authorized capital of Rs 10,00,00,000 divided into 10,00,000 equity shares of Rs 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for the year ended 31.3.2007 was Rs 30. The management decided to export its products to African countries. To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directors :
(i) Issue 47,500 equity shares at a premium of Rs 100 per share.
(ii) Obtain a long-term loan from bank which was available at 12% per annum.
(iii) Issue 9% debentures at a discount of 5%.
After evaluating these alternatives the company decided to issue 1,00,000, 9% debentures on 1.4.2008. The face value of each debenture was Rs 100. These debentures were redeemable in four instalments starting from the end of third year, which was as follows :

Year Amount
Rs
III 10,00,000
IV 20,00,000
V 30,00,000
VI 40,00,000

Prepare 9% debenture account from 1.4.2008 till all the debentures were redeemed.


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Q14 :

Mala, Neela and Kala were partners sharing profits in the ratio of 3 : 2 : 1. On 1.3.2015 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partners' Capital Accounts and Cash Account, but forgot to post few amounts in these accounts.
You are required to complete these below given accounts by posting correct amounts.
 

Realisation Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
To Sundry Assets :
 
By Provision for bad debts
1,000
Machinery
10,000
 
By Sundry Creditors
15,000
Stock
21,000
 
By Sheela’s Loan
13,000
Debtors
20,000
 
By Repairs and Renewals Reserve
1,200
Prepaid Insurance
400
 
By Cash – Assets sold :
 
Investments
3,000
54,400
Machinery
8,000
 
To Mala’s Capital A/c
13,000
Stock
14,000
 
             – Sheela’s Loan
 
Debtors
16,000
38,000
To Cash – Creditors paid
15,000
By Mala’s Capital Investments
2,000
To Cash – Dishonoured bill paid
5,000
 
 
To Cash Expenses
800
……………..
………….
 
88,200
 
88,200
 
 
 
 
 
Capital Accounts
Dr.
Cr.
Particulars
Mala
Rs
Neela
Rs
Kala
Rs
Particulars
Mala
Rs
Neela
Rs
Kala
Rs
………….
………….
………….
………….
………….
………….
………….
………….
………….
………….
 
 
………….
………….
 
 
To Cash
12,000
9,000
 
By Cash
 
 
1,000
 
23,000
15,000
3,000
 
23,000
15,000
3,000
 
Cash Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
To Balance b/d
2,800
By Realisation A/c
15,000
To Realisation A/c
38,000
                 – Creditors paid
 
                  – Sale of assets
 
 
 
To Kala’s Capital A/c
1,000
By Dishonoured bill
5,000
 
 
……………
………….
 
 
By Mala’s Capital A/c
12,000
 
 
By Neela’ s Capital A/c
9,000
 
41,800
 
41,800
 
 
 
 


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Q15 :

On 1.1.2008, Uday and Kaushal entered into partnership with fixed capitals of Rs 7,00,000 and Rs 3,00,000 respectively. They were doing good business and were interested in its expansion but could not do the same because of lack of capital. Therefore, to have more capital, they admitted Govind as a new partner on 1.1.2010. Govind brought Rs 10,00,000 as capital and the new profit sharing ratio decided was 3 : 2 : 5. On 1.1.2012, another new partner Hari was admitted with a capital of Rs 8,00,000 for 1/10th share in the profits, which he acquired equally from Uday, Kaushal and Govind. On 1.4.2014 Govind died and his share was taken over by Uday and Hari equally.
Calculate :
(i) The sacrificing ratio of Uday and Kaushal on Govind's admission.
(ii) New profit sharing ratio of Uday. Kaushal, Govind and Hari on Hari's admission.
(iii) New profit sharing ratio of Uday, Kaushal and Hari on Govind's death.


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Q16 :

'X Ltd.' invited applications for issuing 10,000 equity shares of Rs 100 each at a premium of Rs 100 per share. The amount was payable as follows:

                  On application and allotment − Rs 100 per share (including Rs 50 premium)

                  On first and final call − The balance

The issue was fully subscribed. A shareholder holding 500 shares paid the full share money with application. Another shareholder holding 200 shares failed to pay the first and final call money. His shares were forfeited. The forfeited shares were re-issued for Rs 19,000 as fully paid up.

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

OR

'Y Ltd.' invited applications for issuing 15,000 equity shares of Rs 10 each on which Rs 6 per share were called up, which were payable as follows:

              On application – Rs 2 per share

              On allotment – Rs 1 per share

              On first call  − Rs 3 per share

The issue was fully subscribed and the amount was received as follows :

              On 10,000 shares  – Rs 6 per share

              On 3,000 shares  – Rs 3 per share

              On 2,000 shares  – Rs 2 per share

The directors forfeited those shares on which less than Rs 6 per share were received. The forfeited shares were re-issued at Rs 9 per share, as Rs 6 per share paid up.

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


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Q17 :

Om, Ram and Shanti were partners in a firm sharing profits in the ration of 3 : 2 : 1. On 1st April, 2014 their Balance Sheet was as follows :
 

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital Accounts :

 

Land and Building

3,64,000

Om

3,58,000

 

Plant and Machinery

2,95,000

Ram

3,00,000

 

Furniture

2,33,000

Shanti

2,62,000

9,20,000

Bills Receivable

38,000

General Reserve

48,000

Sundry Debtors

90,000

Creditors

1,60,000

Stock

1,11,000

Bills Payable

90,000

Bank

87,000

 

12,18,000

 

12,18,000

 

 

 

 

On the above date Hanuman was admitted on the following terms:
(i) He will bring Rs 1,00,000 for his capital and will get 1/10th share in the profits.
(ii) He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was valued at Rs 3,00,000.
(iii) A liability of Rs 18,000 will be created against bills receivables discounted.
(iv) The value of stock and furniture will be reduced by 20%.
(v) The value of land and building will be increased by 10%.
(vi) Capital accounts of the partners will be adjusted on the basis of Hanuman's capital in their profit sharing ratio by opening current accounts.
Prepare Revaluation Account and Partner's Capital Accounts.

OR


Xavier, Yusuf and Zaman were partners in a firm sharing profits in the ratio of 4 : 3 : 2. On 1.4.2014 their Balance sheet was as follows :

Liabilities

Amount

Rs

Assets

Amount

Rs

Sundry Creditors

41,400

Cash at Bank

33,000

Capital Accounts :

 

Sundry Debtors

30,450

 

Xavier

1,20,000

 

 Less: Prov. for Bad Debts

1,050

29,400

Yusuf

90,000

 

Stock

48,000

Zaman

60,000

2,70,000

Plant and Machinery

51,000

 

 

Land and Building

1,50,000

 

3,11,400

 

3,11,400

 

 

 

 

Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1.4.2014, the terms of which were as follows:
(i) That land and building be appreciated by 10%
(ii) The provision for bad debts is no longer necessary.
(iii) That stock be appreciated by 20%
(iv) That goodwill of the firm be fixed at Rs 54,000. Yusuf share of the same be adjusted into Xavier's and Zamna's Capital Accounts, who are going to share future profits in the ratio of 2 : 1.
(v) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capitals of Xavier and Zaman will be in their profit sharing ratio.
Prepare Revaluation Account and Partner's Capital Accounts.


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Q18 :

Amongst the following, 'Payment of bonus to the employees' by an insurance company is which type of activity ?

(i) Operating activity.

(ii) Investing activity.

(iii) Financing activity.

(iv) Both operating and financing activity.


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Q19 :

While preparing Cash Flow Statement, the accountant of 'Rachana Ltd.', a financing company, included 'Interest received on loan' in financing activities. Was the correct in doing so ? Give reason.


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Q20 :

Under which major headings and sub-headings will the following items be shown in the Balance Sheet of a company as per Schedule VI Part I of the Companies Act, 1956 :

(i) Cheques in hand.

(ii) Stock of work-in-progress.

(iii) Copyrights.

(iv) Loose tools.

(v) Provision for bad debts.

(vi) Negative balance shown by the Statement of Profit and Loss.

(vii) Bonds.

(viii) Unpaid dividend.


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Q21 :

The Current Ratio of a company is 2.1 : 1.2. State with reasons which of the following transactions will increase, decrease or not change the ratio :
(i) Redeemed 9% debentures of Rs 1,00,000 at a premium of 10%.
(ii) Received from debtors Rs 17,000.
(iii) Issued Rs 2,00,000 equity shares to the vendors of machinery.
(iv) Accepted bills of exchange drawn by the creditors Rs 7,000.


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Q22 :

The motto of 'Pharma Ltd', a company engaged in the manufacturing of low-cost generic medicines, is 'Healthy India'. Its management and employees are hardworking, honest and motivated. The net profit of the company doubled during the year ended 31-3-2014. Encouraged by its performance, the company decided to pay bonus to all employees at double the rate than last year.
Following is the Comparative Statement of Profit and Loss of the company for the years ended 31-3-2013 and 31-3-2014.
 

Pharma Ltd.
Comparative Statement of Profit and Loss
Particulars Note
No.
2012 – 13
Rs
2013 – 14
Rs
Absolute
Charge
Rs
%
Change
Revenue from operations   20,00,000 30,00,000 10,00,000 50
Less : Employees benefit expenses   12,00,000 14,00,000 2,00,000 16-67
Profit before tax   8,00,000 16,00,000 8,00,000 100
Tax at 25% rate   2,00,000 4,00,000 2,00,000 100
Profit after tax   6,00,000 12,00,000 6,00,000 100


(i) Calculate Net Profit Ratio for the years ending 31st March, 2013 and 2014.
(ii) Identify any two values which 'Pharma Ltd'. is trying to propagate.


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Q23 :

Following is the Balance Sheets of Solar Power Ltd. as at 31.3.2014 :

Solar Power Ltd.
Balance Sheet
Particulars Note No. 31.3.2014 Rs 31.3.2013 Rs
I. Equity and Liabilities :
1. Shareholder's Funds :
     
(a) Share Capital
  24,00,000 22,00,000
(b) Reserves and Surplus
1 6,00,000 4,00,000
2. Non-Current Liabilities :
     
 Long Term-Borrowings
  4,80,000 3,40,000
3. Current Liabilities :
     
(a) Trade Payables
  3,58,000 4,08,000
(b) Short-Term Provisions
  1,00,000 1,54,000
Total   39,38,000 35,02,000
       
II. Assets :
1. Non-Current Assets :
     
(a) Fixed Assets :
     
(i) Tangible
2 21,40,000 17,00,000
(ii) Intangible
3 80,000 2,24,000
2. Current Assets :
     
(a) Current Investments
  4,80,000 3,00,000
(b) Inventories
  2,58,000 2,42,000
(c) Trade Receivables
  3,40,000 2,86,000
(d) Cash and Cash equivalents
  6,40,000 7,50,000
Total   39,38,000 35,02,000
       

Notes to Accounts

S. No. Particulars As on
31.3.2014
Rs
As on
31.3.2013
Rs
1. Reserves and Surplus    
  Surplus (balance in Statement of Profit and Loss) 6,00,000 4,00,000
2. Tangible Assets    
  Machinery 25,40,000 20,00,000
    Less : Accumulated Depreciation (4,00,000) (3,00,000)
3. Intangible Assets    
  Goodwill 80,000 2,24,000

Additional Information :

During the year a piece of machinery, costing Rs 48,000 on which accumulated depreciation was Rs 32,000, was sold for Rs 12,000.

Prepare Cash Flow Statement.


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