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Board Paper of Class 12-Commerce 2019 Accountancy Abroad(Set 3) - Solutions

General Instructions:

 (i) This question paper contains two parts A and B.

(ii) Part A is compulsory for all.

(iii) Part B has two options: Analysis of Financial Statements and Computerized Accounting.

(iv) Attempt only one option of Part B.

(v) All parts of a question should be attempted at one place.

  • Question 1
    A and B were partners in a firm sharing profits in the ratio of 3 : 2. C and D were admitted as new partners. A sacrificed 14th of his share in favour of C and B sacrificed 50% of his share in favour of D. Calculate the new profit sharing ratio of A, B, C and D. VIEW SOLUTION
  • Question 2
    Distinguish between 'Reconstitution of Partnership' and 'Dissolution of Partnership Firm' on the basis of 'Closure of books'.
     
    OR

    State the basis of calculating the amount of profit payable to the legal representative of a deceased partner in the year of death.
    VIEW SOLUTION
  • Question 3
    What is meant by 'Issue of Debentures as Collateral Security'?

    OR

    State the provision of the Companies Act, 2013 for the creation of Debenture Redemption Reserve.
    VIEW SOLUTION
  • Question 4
    Differentiate between 'Receipt and Payments Account' and 'Income and Expenditure Account' on the basis of 'Period'.
     
    OR

    What is meant by 'Life membership fees'?
    VIEW SOLUTION
  • Question 5
    Dev withdrew ₹ 10,000 on 15th day of every month. Interest on drawings was to be charged @ 12% per annum. Calculate interest on Dev's drawings. VIEW SOLUTION
  • Question 6
    State any two situation when a partnership firm may be compulsorily dissolved VIEW SOLUTION
  • Question 7
    What is meant by 'over-subscription' of shares ? With the help of an example, briefly explain the alternatives available for allotment of shares in case of over-subscription.
     
    OR

    What is meant by 'Forfeiture of shares' ? When does 'gain on forfeited shares' arise and when is it transferred to capital reserve ?
    VIEW SOLUTION
  • Question 8
    Devi, Dayal and Daya were partners in a firm sharing profits in the ratio of 2 : 1 : 2. On 31st March, 2018, they admitted Divya as a new partner for 15th share in the profits. Their new profit sharing ratio was 1 : 2 : 1 : 1. Divya brought ₹ 5,00,000 as her capital and ₹ 50,000 for her share of goodwill premium.
    Pass necessary journal entries for the above transactions in the books of the firm on Divya's admission. VIEW SOLUTION
  • Question 9
    From the follwing informaiton, calculate the amount of stationery consumed by 'shree Club' for the year ended 31st March, 2018.
     
    Particulars
    31.3.2017
    31.3.2018
    Balance of stationery 24,000
    29,500
    Creditors for stationery 2,09,000
    1,95,000

    During the year creditors were paid ₹ 3,00,000

    VIEW SOLUTION
  • Question 10
    On 1st April, 2018, R.J. Ltd issued ₹ 10,00,000, 9 % debentures of ₹ 100 each at a discount of 10%. These debentures were redeemable at a premium of 5% after four years.
    Pass necessary journal entries for the issue of debentures and prepare 9% Debentures Account. VIEW SOLUTION
  • Question 11
    J, K and L were partners in a firm sharing profits in the ratio of 4 : 5 : 1. On 31st March, 2018 their firm was dissolved. On this date the Balance Sheet showed a balance of ₹ 1,34,000 in debtors account and a balance of ₹ 14,000 in provision for bad debts account. Both the accounts were closed by transferring their balances to realisation account. ₹ 4,000 of the debtors became bad and nothing could be realised from them on dissolution. K agreed to look after the dissolution work for which he was allowed a remuneration of ₹ 16,000. K also agreed to bear dissolution expenses for which he was allowed a lumpsum payment of ₹ 4,000. Actual dissolution expenses were ₹ 6,500 and the same were paid from the firm's cash. Loss on dissolution amounted to ₹ 37,000.
    Pass necessary journal entries for the above transactions in the books of the firm on its dissolution VIEW SOLUTION
  • Question 12
    E, F and G were partners in a firm sharing profits in the ratio of 3 : 3 : 4. Their respective fixed capitals were E ₹ 3,00,000; F ₹ 4,00,000 and G ₹ 5,00,000. The partnership deed provided for allowing interest on capital @ 12% p.a. even if it results into a loss to the firm. The net profit of the firm for the year ended 31st March, 2018 was ₹ 2,10,000.
    Pass necessary journal entries for allowing interest on capital and division of profit/loss in the books of the firm. VIEW SOLUTION
  • Question 13
    Pass necessary rectifying journal entries for the following omissions committed while preparing Profit and Loss Appropriation Account. You are also required to show your workings clearly.
    (i) A, B and C were partners sharing profits and losses equally. Their fixed capitals were A ₹ 4,00,000; B ₹ 5,00,000 and C ₹ 6,00,000. The partnership deed provided that interest on partners' capital will be allowed @ 10% per annum. The same was omitted.
    (ii) P, Q and R were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their partnership deed provided that interest on partners' drawings will be charged @ 18% p.a. Interest on the partners' drawings was ₹ 1,000, ₹ 500 and ₹ 2,000 respectively.
    The same was omitted. VIEW SOLUTION
  • Question 14
    A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2018 was as follows:
         

    Balance Sheet of A, B and C as on 31st March, 2018

    Liabilities

    Amount

    (₹)

    Assets

    Amount

    (₹)

    Capitals :

     

    Cash at Bank

    3,00,000

     

     

    Sundry Debtors

    1,95,000

     

    A

    7,50,000

     

    Less: Provision for Bad Debts

    5,000

    1,90,000

    B

    3,00,000

     

     

     

    C

    2,50,000

    13,00,000

    Stock

    3,00,000

     

     

     

     

    Creditors

    2,00,000

    Fixed Assets

    7,10,000

     

    15,00,000

     

    15,00,000

     

     

     

     


    On the above date they dissolved the firm and following amounts were realised :
    Fixed Assets ₹ 6,75,000: Stock ₹ 3,39,000: Debtors ₹ 1,35,000; Creditors were paid ₹ 1,85,000 in full settlement of their claim. Expenses on Realisation amounted to ₹ 19,000. Pass the necessary journal entries on the dissolution of the firm.


    OR


    P, Q and R were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. On 31st March, 2018 their Balance Sheet was as follows:
    Balance Sheet of P, Q and R as at 31st March, 2018:

         

    Balance Sheet of P, Q and R as at 31st March, 2018

    Liabilities

    Amount

    Assets

    Amount

    Creditors :

    50,000

    Cash in Hand

    40,000

    General Reserve                   60,000 Cash at Bank 2,00,000
    Capital :      

    P

    2,00,000

     

    Stock

    50,000

    Q
    3,00,000   Debtors 60,000

    R

    3,00,000

    8,00,000

    Fixed Assets                           

    5,60,000

     

     

     

     

     

    9,10,000

     

    15,00,000

     

     

     

     


    On the above date the firm was reconstituted and it was decided that:
    (i) The new profit sharing ratio will be 2 : 2 : 1.
    (ii) Bad debts ₹ 6,000 were to be written off and a provision of ₹ 3,000 was to be made for bad and doubtful debts.
    (iii) The capital of the partners will be adjusted in the new firm in their profit sharing ratio. For this, partners' current accounts will be
    opened.
    Pass the necessary journal entries on the reconstitution of the firm. VIEW SOLUTION
  • Question 15
    From the following Receipts and Payments Account and additional information of Swachh Bharat Club, New Delhi for the year ended 31st March, 2018, prepare Income and Expenditure Account and Balance Sheet.
     
    Receipts and Payments Account of Swachh Bharat Club for the year ended 31st march, 2018

    Particulars

    Amount

    (₹)

    Particulars

    Amount

    (₹)

       

    By Campaign Expenses

    1,30,000

    To Balance b/d

     

    By Office rent

    40,000

    Cash

    20,000

     

    By Salary

    10,000

    Bank

    40,000

    60,000

    By Furniture hire rent

    12,000

       

    By Advertisement

    15,000

    To Subscriptions

    1,80,000

    By Fixed deposit

    2,00,000

    To Sale of old

     

    (On 1.8.2017 @12% p.a)

     

    furniture (book value ₹ 3,000)

    2,000

       

    To Life Membership fees

    30,000

    By Balance c/d

     

    To Government grants

    2,00,000

    Cash

    25,000

     
       

    Bank

    40,000

    65,000

     

    4,72,000

     

    4,72,000

           

    Additional Information:
    Assets on 1.4.2017 were : Books ₹ 50,000; Computers ₹ 75,000. Liabilities and Capital fund on 1.4.2017 were : Creditors ₹ 60,000; Capital fund ₹ 1,28,000. VIEW SOLUTION
  • Question 16
    S Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each. The shares were issued at a premium of ₹ 5. The amount was payable as follows:
     
    On Application and Allotment ₹ 8 per share (including premium ₹ 3)
    On the First and Final call Balance including premium
    Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis :
    (I) Applicants for 80,000 shares were allotted 60,000 shares, and
    (II) Applicants for 60,000 shares were allotted 40,000 shares.
    Excess amount received on application and allotment was to be adjusted against sums due on call. X, who belonged to the first category and was allotted 300 shares, failed to pay the first and final call money. Y, who belonged to the second category and was allotted 200 shares, also failed to pay the first and final call money. Their shares were forfeited. The forfeited shares were reissued @ ₹ 12 per share as fully paid-up.
    Pass necessary journal entries for the above transactions in the books of the company.

    OR

    Jain Ltd. invited applications for issuing 1,12,000 equity shares of ₹ 10 each at par. The amount per share was payable as follows :
     
    On Application ₹1
    On Allotment ₹2
    On First call ₹3
    On Second and Final call ₹4


    Applications for 1,00,000 shares were received. Shares were fully allotted to all the applicants. Ramesh failed to pay his allotment money which was ₹ 2,000. His shares were forfeited immediately. Suresh did not pay the first call on 500 shares applied by him. His shares were forfeited after the first call. The forfeited shares of Ramesh and Suresh were re-issued at ₹ 9 per share fully paid up. Afterwards the second and final call was made and was duly received.
    Pass necessary journal entries for the above transactions in the books of Jain Ltd.
     
    VIEW SOLUTION
  • Question 17
    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 at 31st March, 2018, was as follows:
         

    Balance Sheet of G, E and F as on 31st March, 2018

    Liabilities

    Amount

    Assets

    Amount

    Capitals :

     

    Cash

    90,000

    G
    1,40,000   Sundry Debtors 24,000

    E

    40,000

     

    Stock

    14,000

    F

    20,000

    2,00,000

    Machinery

    80,000

     

     

    Land and Building

    1,20,000

    Creditors

    28,000

     

     

    General Reserve 40,000    
    Loan from E 60,000    
           

     

    3,28,000

     

    3,28,000

     

     

     

     


    E retired on the above date. On E's retirement the following was agreed upon:
    (i) Land and Building were revalued at ₹ 1,88,000, Machinery at ₹ 76,000 and Stock at ₹ 10,000 and goodwill of the firm was valued at ₹ 90,000.
    (ii) A provision of 2.5% was to be created on debtors for doubtful debts.
    (iii) The net amount payable to E was transferred to his loan account to be paid later on.
    (iv) Total capital of the new firm was fixed at ₹ 2,40,000 which will be adjusted according to their new profit sharing ratio by opening current accounts.
    Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of reconstituted firm.
     

    OR
     
    A and B were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2018, was as follows:
    Balance Sheet of A and B
    as at 31st March, 2018
    Liabilities
    Amount
    (Rs)
    Assets
    Amount
    (Rs)
    Capital:
     
    Cash
    8,000
    A
    1,04,000
     
    Sundry Debtors
    37,600
     
    B
    52,000
    1,56,000
      Less: Provision for doubtful debts
    1,600
    36,000
    Creditors
    1,54,000
    Stock
    60,000
    Employees’ Provident Fund
    16,000
    Prepaid Insurance
    6,000
    Workmen Compensation Fund
    10,000
    Plant and Machinery
    76,000
    Contingency Reserve
    10,000
    Building
    1,40,000
     
     
    Furniture
    20,000
     
    3,46,000
     
    3,46,000
     
     
     
     

    C was admitted as a new partner and brought ₹ 64,000 as capital and ₹ 15,000 for his share of goodwill premium. The new profit sharing ratio was 5 : 3 : 2.
    On C's admission the following was agreed upon :
    (i) Stock was to be depreciated by 5%.
    (ii) Provision for doubtful debts was to be made at ₹ 2,000.
    (iii) Furniture was to be depreciated by 10%.
    (iv) Building was valued at ₹ 1,60,000.
    (v) Capitals of A and B were to be adjusted on the basis of C's capital by bringing or paying of cash as the case may be.
    Prepare Revaluation Account, Partners'  Capital Accounts and the Balance Sheet of reconstituted firm. VIEW SOLUTION
  • Question 18
    How is goodwill written off treated while calculating cash flow from operating activities ? VIEW SOLUTION
  • Question 19
    When does an investment qualify as cash equivalent ? VIEW SOLUTION
  • Question 20
    Under which major heads and sub-heads will the following items be placed in the Balance Sheet of the company as per of the company as per Schedule III, Part I of the Companies Act, 2013 ?
    (i) Cheques and Bank Drafts in Hand
    (ii) Loose tools
    (iii) Securities Premium Reserve
    (iv) Long-Term Investments with maturity period less than six months
    (v) Work-in-Progress
    (vi) Mining Rights
    (vii) Publishing titles
    (viii) Debtors
    OR

    Explain the importance of financial analysis for (i) labour unions, and (ii) creditors. VIEW SOLUTION
  • Question 21
    From the following information prepare a Comparative Income Statement of NY Ltd :
    Particulars 2016−17
    2017−18
    Revenue from operations 15,00,000 24,00,000
    Cost of materials consumed 8,00,000 12,00,000
    Employee benefit expenses 1,20,000 1,80,000
    Other expenses 80,000 60,000

    Tax Rate 50%. VIEW SOLUTION
  • Question 22
    The operating ratio of a company is 80%. State whether the following transactions will increase, decrease or not change the ratio :
    (i) Purchased goods on credit ₹ 20,000
    (ii) Paid wages ₹ 5,000
    (iii) Redeemed ₹ 8,000, 9% debentures
    (iv) Sold goods ₹ 50,000 for cash
     
    OR

    From the following information of Shiva Ltd., calculate total assets to debt ratio :
     
    Equity Share Capital
    ₹ 5,00,000
    9% Preference Share Capital
    ₹ 4,00,000
    Fixed Assets
    ₹ 12,00,000
    Non-Current Investments
    ₹ 1,50,000
    Reserves and Surplus
    ₹ 2,40,000
    Current Assets
    ₹ 1,90,000
    Current Liabilities
    ₹ 1,00,000
    VIEW SOLUTION
  • Question 23
    The following is the Balance Sheet of R.M. Ltd. as at 31st March, 2017. Prepare a Cash Flow Statement :
     
     

    R.M. Ltd.

    Balance Sheet as at 31st March, 2017

     

    Particulars

    Note No.

    31.03.17

    31.03.16

    I.  Equity and Liabilities :      
         1. Shareholder's Funds :      
     

    (a) Share Capital

     

    15,00,000

    10,00,000

     

    (b) Reserves and Surplus (Balance in Statement of Profit and Loss)

     

    7,50,000

    6,00,000

             
     

    2. Non-Current Liabilities :

         
     

    Long term Borrowings

    1

    1,00,000

    2,00,000

             
     

    3. Current Liabilities

         
     

    (a) Trade Payables

     

    1,00,000

    1,10,000

     

    (b) Short-term Provisions

    2

    95,000

    80,000

     

    Total

     

    25,45,000

    19,90,000

    II Assets :      
     

    1. Non-Current Assets

         
     

    (a) Fixed Assets :

         
     

    (i) Tangible Assets

    3

    10,10,000

    9,00,000

     

    (ii) Intangible Assets

    4

    2,80,000

    2,00,000

     
    (b) Non-Current Investment :
      5,00,000
     

    2. Current Assets :

         
     

    (a) Inventories

     

    1,80,000

    1,00,000

     

    (b) Trade Receivables

     

    2,00,000

    1,50,000

     

    (c) Cash and Cash Equivalents

    5

    3,75,000

    6,40,000

     

    Total

     

    25,45,000

    19,90,000

             
     
    Notes to Accounts

    Note No.

    Particulars

    31.03.17

    31.03.16

    1.

    Long-term Borrowings :    
      9% Debentures

    1,00,000

    2,00,000

       

    1,00,000

    2,00,000

           

    2.

    Short-term Provisions :    
      Provision for Tax

    95,000

    80,000

       

    95,000

    80,000

    3.

    Tangible Assets :    
      Plant and Machinery 12,10,000 11,40,000
      Accumulated Depreciation

    (2,00,000)

    (2,40,000)

       

    10,10,000

    9,00,000

    4.

    Intangible Assets :    
      Goodwill

    2,80,000

    2,00,000

       

    2,80,000

    2,00,000

    5.

    Cash and Cash Equivalents :    
      (i) Cash in Hand

    70,000

    3,50,000

      (ii) Bank Balance

    3,05,000

    2,90,000

       

    3,75,000

    6,40,000

           

    Additional Information:
    (1) During the year, a machine costing ₹ 80,000 on which accumulated depreciation was ₹ 50,000 was sold for ₹ 30,000.
    (ii) 9% Debentures were released on 31st March, 2017.

    VIEW SOLUTION
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