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Board Paper of Class 12-Commerce 2015 Accountancy Abroad(SET 3) - Solutions

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 17 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 4 marks.
v. Question No. 23 carries 6 marks.



  • Question 1

    'Samta Limited' invited applications for issuing 6,750 equity shares of Rs 10 each. The amount was payable as follows :


    On application − Rs 3 per share
    On allotment − Rs 5 per share
    On first and final call − Rs 2 per share


    The issue was fully subscribed. Subhash applied for 250 shares and paid his entire share money with application. Moti applied for 175 shares and paid allotment money also with application. The amount received with applications was :
    (a) Rs 16,750
    (b) Rs 16,000
    (c) Rs 19,250
    (d) Rs 22,875

    VIEW SOLUTION


  • Question 2
    Give the meaning of forfeiture of shares. VIEW SOLUTION


  • Question 3
    Deepak, Farukh and Lilly were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 28.2.2015 Farukh retired from the firm. On Farukh's retirement there was a balance of Rs 12,000 in Workmen's Compensation Reserve which was no more required. On Farukh's retirement this amount will be :

    (a) Debited to the Capital accounts of all the partners in their profit sharing ratio.
    (b) Credited to the Capital accounts of all the partners in their profit sharing ratio.
    (c) Credited to the Capital accounts of Deepak and Lilly in their profit sharing ratio.
    (d) Credited to the Capital account of Farukh. VIEW SOLUTION


  • Question 4

    Anurag and Bhawana entered into partnership on 1.4.2014. On 1.1.2015 they admitted Monika as a new partner for 310th share in the profits which she acquired equally from Anurag and Bhawana. The new profit sharing ratio of Anurag, Bhawana and Monika was 4 : 3 : 3. Calculate the profit sharing ratio of Anurag and Bhawana at the time of forming the partnership.

    VIEW SOLUTION


  • Question 5

    Kamal and Vimal were partners in a firm sharing profits in the ratio of 3 : 2. Ghosh was admitted as a new partner for 15th share in the profits.

    On Ghosh's admission the Balance Sheet of the firm showed a credit balance of Rs 10,000 in its Profit and Loss Account which was debited by the accountant of the firm in the accounts of Kamal and Vimal. Did the accountant give correct treatment to the balance of Profit and Loss Account? If 'yes' give the reason and if 'not' give the correct treatment.

    VIEW SOLUTION


  • Question 6
    In the absence of partnership agreement, interest on drawings of a partners is charged :

    (i) at 6% per annum.
    (ii) at 9% per annum.
    (iii) at 12% per annum.
    (iv) no interest is charged. VIEW SOLUTION


  • Question 7
    State any three conditions for the issue of shares at discount. VIEW SOLUTION


  • Question 8

    K and L were partners in a firm sharing profits in the ratio of 3 : 2. On 1.4.2014 their Balance Sheet was as follows :
     

    Liabilities
    Amount
    Rs
    Assets
    Amount
    Rs
    Capitals :
     
    Sundry Assets
    1,80,000
    K
    80,000
     
     
     
    L
    1,00,000
    1,80,000
     
     
     
    1,80,000
     
    1,80,000
     
     
     
     

    The profit for the year ended 31.3.2014, Rs 90,000 was divided between the partners without allowing interest on capital at 6% per annum and a salary to K at Rs 4,000 per quarter. During the year K withdrew Rs 20,000 and L withdrew Rs 27,000.
    Pass a single adjustment entry to rectify the error.

    VIEW SOLUTION


  • Question 9

    'Telecom Limited' is registered with an authorized capital of Rs 8,00,00,000 divided into 80,00,000 equity shares of Rs 10 each. The company issued 1,00,000 shares at a premium of Rs 2 per share. The amount was payable as follows :

          On application − Rs 3 per share
          On allotment − Rs 5 per share (including premium)
          On first and final call − The balance

    All calls were made and were duly received except the first and final call on 1,000 shares held by Asha.
    Present the 'Share Capital' in the Balance Sheet of the company as per Schedule VI Part I of the Companies Act, 1956.

    VIEW SOLUTION


  • Question 10

    'Panipat Blankets Limited' are the manufacturers and exporters of blankets. The company decided to distribute 1,000 blankets free of cost to five villages of Kashmir which had been damaged by the floods. It also decided to employ 100 young persons from these villages in their newly established factory at Ludhiana in Punjab. To meet the requirements of funds for its new factory, the company issued 1,00,000 equity shares of Rs 10 each and 2,000, 9% debentures of Rs 100 each to the vendors of machinery purchased for Rs 12,00,000.

    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.

    VIEW SOLUTION


  • Question 11

    Kavita, Ravita and Sunita were partners in a firm sharing profits in 2 : 1 : 2 ratio. On 31.3.2014 their Balance Sheet was as follows :
     

    Liabilities
    Amount
    Rs
    Assets
    Amount
    Rs
    Creditors
    83,000
    Cash
    45,000
    Bills Payable
    19,000
    Debtors
    34,000
    Capitals :
     
    Bills Receivable
    15,000
    Kavita
    1,40,000
     
    Furniture
    2,10,000
    Ravita
    1,80,000
     
    Machinery
    2,00,000
    Sunita
    90,000
    4,10,000
    Sunita’s Capital
    8,000
     
    5,12,000
     
    5,12,000
     
     
     
     

    On 31.9.2014, Sunita died. The partnership deed provided for the following to the executors of the deceased partner :

    (a) Her share in the goodwill of the firm, calculated on the basis of three years' purchase of the average profits of the last four years.The profits of the last four years were Rs 1,98,000; Rs 2,24,000; Rs 2,76,000 and Rs 3,27,000 respectively.

    (b) Her share in the profit of the firm till the date of her death, calculated on the basis of the average profits of the last four years.

    (c) Interest @ 6% per annum on the credit balance, if any, in her Capital account.

    (d) Interest on her loan @ 12% per annum.

    Prepare Sunita's Capital Account to be presented to her executors.

    VIEW SOLUTION


  • Question 12

    Jain, Gupta and Singh were partners in a firm. Their fixed capitals were : Jain Rs 4,00,000 ; Gupta Rs 6,00,000 and Singh Rs 10,00,000. They were sharing profits in the ratio of their capitals. The firm was engaged in the processing and distribution of flavoured milk. They partnership deed provided for interest on capital at 10% per annum. During the year ended 31st March 2014 the firm earned a profit of Rs 1,47,000.
    Showing your working notes clearly, prepare Profit and Loss Appropriation Account of the firm.

    VIEW SOLUTION


  • Question 13

    'Chennai Fibers Limited' was registered with an authorized capital of Rs 40,00,000 divided into 4,00,000 equity shares of Rs 10 each. The company had issued 1,00,000 shares and the dividend paid per share was Rs 3 for the year 2007 - 08. The management of the company decided to export its readymade apparels to European countries. To meet the requirement of additional funds, the finance manager put up before the Board of Directors the following three alternative proposals :
    (i) Issue of 1,54,000 equity shares at par.
    (ii) Obtain a loan of Rs 15,40,000 from a financial institution for a period of 5 years. The loan was available @ 12% per annum.
    (iii) Issue 16,000, 9% debentures of Rs 100 each at a discount of 10% redeemable in instalments at the end of third, fourth, fifth and sixth year as per details given below :

    Year Amount
    Rs
    III 2,00,000
    IV 3,00,000
    V 4,00,000
    VI 7,00,000

    After comparing the alternatives, the company decided in favour of the third alternative and issued debentures on 1.4.2008.
    Prepare 9% debentures account for the years 2008 - 09 to 2013 - 14.

    VIEW SOLUTION


  • Question 14

    Chopra, Shah and Patel were partners sharing profits in the ratio of 3 : 2 : 1. On 31.3.2014 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partner's Capital Accounts and Cash Account but forgot to post few amounts in these accounts.

    You are required to complete the below give accounts by posting correct amounts.
     

    Realisation Account

    Dr.

    Cr.

    Particulars

    Amount

    Rs.

    Particulars

    Amount

    Rs.

    To Plant and Machinery

    1,60,000

    By Sundry Creditors

    1,50,000

    To Stock

    1,50,000

    By Mrs. Chopra’s Loan

    1,30,000

    To Sundry Debtors

    2,00,000

    By Repairs and Renewals Reserve

    12,000

    To Prepaid Insurance

    4,000

    By Provision for Bad Debts

    10,000

    To Investments

    30,000

    By Cash A/c – (Assets sold) :

     

    To Chopra’s Capital A/c

     

    Plant

    1,00,000

     

    (Mrs. Chopra’s Loan)

    1,30,000

    Stock

    1,20,000

     

    To Cash A/c (Dishonoured Bill)

    50,000

    Debtors

    1,60,000

    3,80,000

    To Cash (Creditors)

    1,50,000

    By Chopra’s Capital A/c (Investments)

    20,000

    To Cash (Expenses)

    8,000

    …………

    ……….

     

    8,82,000

     

    8,82,000

     

     

     

     

     

    Partner’s Capital Accounts

    Dr.

    Cr.

    Particulars

    Chopra

    Rs

    Shah

    Rs

    Patel

    Rs

    Particulars

    Chopra

    Rs

    Shah

    Rs

    Patel

    Rs

    To Realisation

    20,000

     

     

    By bal. b/d

     

     

     

    (Investments)

     

     

     

     

     

     

     

    …….

    …….

    …….

    …….

    By Realisation

    1,30,000

     

     

     

     

     

     

    (Loan)

     

     

     

    …….

    …….

    …….

    …….

    …….

    …….

    …….

    …….

     

    2,30,000

    1,50,000

    30,000

     

    2,30,000

    1,50,000

    30,000

     

    Cash Account

    Dr.

    Cr.

    Particulars

    Amount

    Rs

    Particulars

    Amount

    Rs

    …….

    …….

    By Realisation A/c (Dishonoured Bill)

    50,000

    …….

    …….

    By Realisation (Sundry Creditors)

    1,50,000

    To Patel’s Capital A/c

    10,000

    …….

    …….

     

     

    By Chopra’s Capital A/c

    1,20,000

     

     

    By Shah’s Capital A/c

    90,000

     

    4,18,000

     

    4,18,000

     

     

     

     

    VIEW SOLUTION


  • Question 15

    On 1.4.2013 Mohan and Sohan entered into partnership for doing business of dry fruits. Mohan introduced Rs 1,00,000 as capital and Sohan introduced Rs 50,000. Since Sohan could introduce only Rs 50,000 it was further agreed that as and when there will be a need Sohan will introduce further capital. Sohan was also allowed to withdraw from his capital when the need for the capital was less. During the year ended 31.3.2014, Sohan introduced and withdrew the following amounts of capital :

    Date Capital Introduced Capital Withdrawn
    01.5.2013 10,000 ___
    30.6.2013 ___ 5,000
    30.9.2013 97,000 ___
    01.2.2014 ___ 87,000


    The partnership deed provided for interest on capital @ 6% per annum. Calculate interest on capitals of the partners.

    VIEW SOLUTION


  • Question 16

    Ratan Limited invited applications for issuing 12,000 equity shares of Rs 100 each at a premium of Rs 75 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

    Applications for 15,000 shares were received. Shares were allotted on pro-rata basis to all applicants. Excess money received with applications was adjusted towards sums due on first and final call. Govind  who had applied for 300 shares paid the full share money at the time of applying for shares. Girdhar, who had applied for 600 shares, failed to pay the first and final call money. His shares were forfeited. Out of the forfeited shares, 300 shares were re-issued at Rs 90 per share as fully paid-up.

    Pass necessary journal entries for the above transactions in the books of 'Ratan Limited'.
     
    OR

    'Kalyan Limited' invited applications for issuing 90,000 equity shares of Rs 10 each at a discount of 8%. The amount was payable as follows :
     
    On application – Rs per share
    On allotment – Rs 3 per share
    On first and final call – The balance

    Application for 87,000 shares were received. Shares were allotted to all the applicants. A shareholder, Shyam who had applied for 1,600 shares failed to pay the allotment money and his shares were immediately forfeited. Later on, the first and final call was made. Another shareholder Ram, to whom 1,500 shares were allotted failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 2,000 shares were re-issued at Rs 9 per share as fully paid-up. The re-issued shares included all the shares of Ram.

    Pass necessary journal entries for the above transactions in the books of 'Kalyan Limited'.
    VIEW SOLUTION


  • Question 17

    A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1.4.2014 their Balance Sheet was as follows :

    Liabilities Amount Rs Assets Amount
    Rs
    Creditors 25,200 Bank 8,200
    Provident Fund 3,000 Debtors 60,000  
    General Reserve 21,000   Less: Provision 2,000 58,000
    Capital Accounts :   Stock 50,000
       A 80,000   Investments 20,000
       B 73,000   Patents 10,000
       C 40,000 1,93,000 Machinery 96,000
      2,42,200   2,42,200
           

    On the above date C retired. It was agreed that :

    (i) Goodwill of the firm be valued at Rs 5,400.

    (ii) Depreciation of 10% was to be provided on machinery.

    (iii) Patents were to be reduced by 20%.

    (iv) Liability on account of Provident Fund was estimated at Rs 2,500.

    (v) C took over investments for Rs 31,700.

    (vi) A and B decided to adjust their capitals in proportion to their profit sharing ratio. For this purpose current accounts were opened.

    Prepare Revaluation Account and Partners' Capital Accounts on C's retirement.

    OR

    O, R and S were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1.4.2014 their Balance Sheet was as follows :

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Capital Accounts :

     

    R’s Current Account

    7,000

    O

    1,75,000

     

    Land and Building

    1,75,000

    R

    1,50,000

     

    Plant and Machinery

    67,500

    S

    1,25,000

    4,50,000

    Furniture

    80,000

    Current Accounts :

     

    Investment

    36,500

    O

    4,000

     

    Bills Receivable

    17,000

    S

    6,000

    10,000

    Sundry Debtors

    43,500

    General Reserve

    15,000

    Stock

    1,37,000

    Profit and Loss Accounts

    7,000

    Bank

    43,500

    Creditors

    80,000

     

     

    Bills Payable

    45,000

     

     

     

    6,07,000

     

    6,07,000

     

     

     

     


    On the above date, H was admitted on the following terms :
    (i) H will bring Rs 50,000 as his capital and will get 1/6th 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 90,000.
    (iii) The new profits sharing ratio will be 2 : 2 : 1 : 1.
    (iv) A liability of Rs 7,004 will be created against bills receivables discounted.
    (v) The value of stock, furniture and investments is reduced by 20% whereas the value of land and building and plant and machinery will be appreciated by 20% and 10% respectively.
    (vi) The Capital accounts of the partners will be adjusted on the basis of H's Capital through their current accounts.

    Prepare Revaluation Account and Partner's Current Accounts and Capital Accounts.

    VIEW SOLUTION


  • Question 18

    Which of the following transactions will result into flow of cash :

    (i) Deposited Rs 43,000 into bank.
    (ii) Withdrew cash from bank Rs 23,000.
    (iii) Sale of machinery of the book value of Rs 38,000 at a loss of Rs 3,000.
    (iv) Converted Rs 2,00,000, 9% debentures into equity shares.

    VIEW SOLUTION


  • Question 19
    While preparing 'Cash Flow Statement', the accountant of 'Jain Limited', a financing company, showed dividend received on investments as investing activity. Was he correct in doing so? Give reason. VIEW SOLUTION


  • Question 20

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

    (i) Loans provided re-payable on demand.
    (ii) Goodwill
    (iii) Copyright
    (iv) General Reserve
    (v) Cheques
    (vi) Loose tools
    (vii) Stock of finished goods
    (viii) 9% debentures re-payable after three years

    VIEW SOLUTION


  • Question 21

    The Current Ratio of a company is 2.5 : 1.5. State with reasons which of the following transactions will increase, decrease or not change the ratio :
    (i) Discounted a bills receivable of Rs 10,000 from bank, Bank charged discount of Rs 200.
    (ii) A bill receivable Rs 8,000 discounted with bank was dishonoured.
    (iii) Cash deposited into bank Rs 7,000.
    (iv) Paid cash Rs 5,000 to the creditors.

    VIEW SOLUTION


  • Question 22
    The motto of 'Nav Hind Pharma Limited', a company engaged in the manufacturing and distribution of Aurvedic 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 one month's extra salary to all its employees.

    Following is the Comparative Statement of Profit and Loss of the company for the years ended 31.3.2013 and 31.3.2014 :
     
    Nav Hind Pharma Limited
    Comparative Statement of Profit and Loss
    Particulars Note
    No.
    2012 − 13
    Rs
    2013 − 14
    Rs
    Absolute Change
    Rs
    %
    Change
    Revenue from operations   40,00,000 60,00,000 20,00,000 5.0
    Less : Employees benefit expenses   24,00,000 28,00,000 4,00,000 16.67
    Profit before tax   16,00,000 32,00,000 16,00,000 100
    Tax @ 50%   8,00,000 16,00,000 8,00,000 100
    Profit after tax   8,00,000 16,00,000 8,00,000 100

    (i) Calculate New Profit Ratio for the years ending 31.3.2013 and 31.3.2014.
    (ii) Identify any two value which 'Nav Hind Pharma Limited' is trying to communicate. VIEW SOLUTION


  • Question 23

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

    Wind Power Ltd.
    Balance Sheet as at 31.3.2014
    Particulars Note No. 2013–14 Rs 2012–13 Rs
    I. Equity and Liabilities :
    1. Shareholder's Funds :
         
    (a) Share Capital
      48,00,000 44,00,000
    (b) Reserves and Surplus
    1 12,00,000 8,00,000
    2. Non-Current Liabilities :
         
     Long-Term Borrowings
      9,60,000 6,80,000
    3. Current Liabilities :
         
    (a) Trade Payables
      7,16,000 8,16,000
    (b) Short-Term Provisions
      2,00,000 3,08,000
    Total   78,76,000 70,04,000
           
    II. Assets :
    1. Non-Current Assets :
         
    (a) Fixed Assets :
         
    (i) Tangible
    2 42,80,000 34,00,000
    (ii) Intangible
    3 1,60,000 4,80,000
    2. Current Assets :
         
    (a) Current Investments
      9,60,000 4,48,000
    (b) Inventories
      5,16,000 4,84,000
    (c) Trade Receivables
      6,80,000 5,72,000
    (d) Cash and Cash equivalents
      12,80,000 16,20,000
    Total   78,76,000 70,04,000
           

    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) 12,00,000 8,00,000
    2. Tangible Assets    
      Machinery 50,80,000 40,00,000
        Less : Accumulated Depreciation (8,00,000) (6,00,000)
    3. Intangible Assets    
      Goodwill 1,60,000 4,80,000

    Additional Information :

    During the year a piece of machinery, costing Rs 96,000 on which accumulated depreciation was Rs 64,000 was sold for Rs 24,000.

    Prepare Cash Flow Statement.

    VIEW SOLUTION
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