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Board Paper of Class 12-Commerce 2019 Accountancy Delhi(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
    How are specific donations treated while preparing final accounts of a 'Not-For-Profit Organisation'?

    OR

    State the basis of accounting of preparing 'Income and Expenditure Account' of a 'Not-For-Profit Organisation. VIEW SOLUTION
  • Question 2
    Chhavi and Neha were partners in a firm sharing profits and losses equally. Chhavi withdrew a fixed amount at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. At the end of the year, interest on Chhavi's drawings amounted to ₹ 900. Pass necessary journal entry for charging interest on drawings. VIEW SOLUTION
  • Question 3
    What is meant by 'Gaining Ratio' on retirement of a partner?

    OR

    P, Q and R were partners in a firm. On 31st March, 2018 R retired. The amount payable to R ₹ 2,17,000 was transferred to his loan account. R agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. State the rate at which interest will be paid to R. VIEW SOLUTION
  • Question 4
    What is meant by 'Issued Capital'?

    OR

    What is meant by 'Employees Stock Option Plan'? VIEW SOLUTION
  • Question 5
    Atul and Neera were partners in a firm sharing profits in the ratio of 3 : 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ₹ 2,00,000. Mitali brings her share of goodwill premium of ₹ 20,000 in cash, which is entirely credited to Atul's Capital Account. Calculate the new profit sharing ratio. VIEW SOLUTION
  • Question 6
    State any two contingencies that may result into dissolution of a partnership firm. VIEW SOLUTION
  • Question 7
    Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of ₹ 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures. Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants. Pass the necessary journal entries for the above transactions in the books of Garvit Ltd.

    OR

    On 1st April 2015, P Ltd. Issued 6,000 12% Debentures of ₹ 100 each at par redeemable at a premium of 7%. The Debentures were to be redeemed at the end of third year. Prepare Loss on issue of 12% Debentures Account. VIEW SOLUTION
  • Question 8
    L, M and N were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st April, 2018 they admitted S as a new partner in the firm for 1/5th share in the profits. On. S' admission the goodwill of the firm was valued at 3 years purchase of last five years average profits. The profits during the last five years were:
     
    Year ended 31st March Profit
    (₹)
    2014 4,00,000 
    2015 3,00,000 
    2016 2,00,000 
    2017 50,000 
    2018 (50,000) 

    Calculate the value of the goodwill of the firm. Pass necessary journal entry for the treatment of goodwill on S's admission.​ VIEW SOLUTION
  • Question 9
    From the following information calculate the amount of 'Sports Material' to be debited to Income and Expenditure Account of Young Football Club for the year ended 31st March, 2018.
         ₹
    Opening Stock of Sports Material 21,000 
    Closing Stock of Sports Material 24,000 
    Opening Creditors of Sports Material 23,500 
    Closing Creditors of Sports Material 27,000 

    During the year the creditors for sports material were paid ₹ 1,10,000. VIEW SOLUTION
  • Question 10
    On 1st April, 2013 Anushka Ltd. issued ₹ 70,00,000, 9% debentures of ₹ 100 each at par, redeemable at a premium of 5% on 31st march, 2018. The company created the necessary, minimum amount of debenture redemption reserve and purchased debenture redemption reserve investments. The debentures were redeemed on 31st March, 2018.
    Pass necessary journal entries for the redemption of debentures, in the books of the company. VIEW SOLUTION
  • Question 11
    Ravi Shankar and Madhur were partners in a firm sharing profits in the ratio of  7 : 2 : 1. On 31st March, 2018, the firm was dissolved, after transferring sundry assets (other than cash in hand and cash at bank) and third party liabilities in the realization account the following transactions took place.

    (i) Debtors amounting to ₹ 1,40,000 were handed over to a debt collection agency which charged 5% commission. The remaining debtors were ₹ 47,000, out of which debtors of ₹ 17,000 could not be recovered because the same became insovlent.

    (ii) Creditors amounting to ₹ 5,000 were paid ₹ 3,500 in full settlement of their claim and balance creditors were handed over stock of ₹ 90,000 in full settlement of their claim of ₹ 95,000.

    (iii) A bills receivable ₹ 2,000 discounted with the bank was dishonoured by its acceptor and the same had to be met by the firm.

    (iv) Profit on realisation amounted to ₹ 6,000.
     Pass necessary journal entries for the above transactions in the books of Ravi, Shankar and Madhur.
    VIEW SOLUTION
  • Question 12
    Aman, Bobby and Chandani were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. From 1st April, 2018 they decided to share profits equally. The revaluation of assets and re-assessment of liabilities resulted in a loss of ₹ 5,000. The goodwill of the firm on its reconstitution was valued at ₹ 1,20,000. The firm had a balance of ₹ 20,000 in General Reserve.
    Showing your workings clearly pass necessary journal entries on the reconstitution of the firm. VIEW SOLUTION
  • Question 13
    Giriija, Yatin and Zubin were partners sharing profits in the ratio 5 : 3 : 2. Zubin died on 1st August, 2015. Amount due to Zubin's executor after all adjustments was ₹ 90,300. The executor was paid ₹ 10,300 in cash immediately and the balance in two equal annual instalments with interest @ 6% p.a. starting from 31st March, 2017. Accounts are closed on 31st March each year.

    Prepare Zubin's Executors Account till he is finally paid. VIEW SOLUTION
  • Question 14
    Sonu and Rajat started a partnership firm on April l, 2017. They contributed ₹ 8,00,000 and ₹ 6,00,000 respectively as their capitals and decided to share profits
    and losses in the ratio of 3 : 2.
    The partnership deed provided that Sonu was to be paid a salary of ₹ 20,000 per month and Rajat a commission of 5% on turnover. It also provided that interest on capital be allowed @ 8% p.a. Sonu withdrew ₹ 20,000 on 1st December, 2017 and Rajat withdrew ₹ 5,000 at the end of each month. Interest on drawings was charged @ 6%
    p.a. The net profit as per Profit and Loss Account for the year ended 31st March, 2018 was ₹ 4,89,950. The turnover of the firm for the year ended 31st March, 2018
    amounted to ₹ 20,00,000. Pass necessary journal entries for the above transactions in the books of Sonu and Rajat.

    OR

    Jay, Vijay and Karan were partners of an architect firm sharing profits in the ratio of 2 : 2 : l. Their partnership deed provided the following:
    (i) A monthly salary of ₹ 15,000 each to Jay and Vijay.
    (ii) Karan was guaranteed a profit of ₹ 5,00,000 and Jay guaranteed that he will earn an annual fee of ₹ 2,00,000. Any deficiency arising because of guarantee to Karan will be borne by Jay and Vijay in the ratio of 3 : 2.
    During the year ended 31st March, 2018 Jay earned fee of ₹ 1,75,000 and the profits of the firm amounted to ₹ 15,00,000.
    Showing your workings clearly prepare Profit and Loss Appropriation Account and the Capital Account of Jay, Vijay and Karan for the year ended 31st March, 2018. VIEW SOLUTION
  • Question 15
    From the following Receipts and Payment Account and additional information, prepare Income and Expenditure Account and Balance Sheet of Sears Club, Noida as on March 31, 2018.

    Receipts and Payment Account of Sears Club for the year ended 31-3-2018

    Receipts

    Amount

    (₹)

    Payments

    Amount

    (₹)

    To Balance b/d
    20,000
    By Stationery 23,400
    To Subscriptions   By 12% Investments 8,000
    2016-17
    40,000   By Electricity expenses 10,600
    2017-18
    94,000   By Expenses on lectures 30,000
    2018-19
    7,200 1,41,200 By Sports equipment 59,000
     
      By Books 40,000
    To Donations for building
    40,000 By Balance c/d 50,000
    To Interest on Investments 800    
    To Government Grant 17,400    
    To Sale of old furniture      
    (Book value ₹ 4,000)
    1,600    

     

         

     

    2,21,000

     

    2,21,000

     

     

     

     


    Additional Information:
    (i) The club has 200 members each paying an annual subscription of ₹ 1,000. ₹ 60,000 were in arrears for last year and 25 members paid in advance in the last year for the current year.
    (ii) Stock of stationery on 1-4-2017 was ₹ 3,000 and on 31-3-2018 was ₹ 4,000. VIEW SOLUTION
  • Question 16
    DF Ltd. invited applications for issuing 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
    On Application : ₹ 3 per share (including premium ₹ 1)
    On Allotment : ₹ 3 per share (including premium ₹ 1)
    On First call : ₹ 3 per share
    On Second and Final Call : Balance amount
    Application for 70,000 shares were received. Allotment was made on the following basis.
    Applications for 5,000 shares – Full
    Applications for 50,000 shares – 90%
    Balance of the applications were rejected. ₹ 1,11,000 were received on account of allotment. The amount of allotment due from the shareholders to whom shares were allotted on prorata basis was fully received. A few shareholders to whom shares were allotted in full, failed to pay the allotment money. ₹ 1,20,000 were received on first call. Directors decided to forfeit those shares on which allotment and call money was due. Half of the forfeited shares were re-issued @ ₹ 8 per share fully paid up. Final call was not made.
    Pass the necessary journal entries for the above transactions in the book of DF Ltd.

    OR

    EF Ltd. invited applications for issuing 80,000 equity shares of  ₹ 50 each at a premium of 20%. The amount was payable as follows:
    On Application: ₹ 20 per share (including premium ₹ 5)    
    On Allotment: ₹ 15 per share (including premium ₹ 5)
    On First Call: ₹ 15 per share
    On Second and Final call: Balance amount
    Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants.
    Seema, holding 4,000 shares failed to pay the allotment money. Afterwards the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj's shares were forfeited and subsequently reissued to Geeta for ₹ 60 per share, ₹ 50 per share paid up. Final call was not made.
    Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening calls-in-arrears account. VIEW SOLUTION
  • Question 17
    Akul, Bakul and Chandan were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2018 their Balance Sheet was as follows:

    Balance Sheet of Akul, Bakul and Chandan

    as on 31.3.2018

    Liabilities

    Amount

    (₹)

    Assets

    Amount

    (₹)

    Sundry Creditors

    45,000

    Cash at Bank 42,000

    Employees Provident Fund        

    13,000

    Debtors 60,000  

    General Reserve

    20,000 Less: Provision for doubtful debts 2,000 58,000

    Capitals:

         
    Akul
    1,60,000

     

    Stock
    80,000
    Bakul
    1,20,000   Furniture 90,000
    Chandan
    92,000
    3,72,000
    Plant and Machinery
    1,80,000

     

    4,50,000

     

    4,50,000

     

     

     

     

    Bakul retired on the above date and it was agreed that:
    (i) Plant and Machinery was undervalued by 10%.
    (ii) Provision for doubtful debts was to be increased to 15% on debtors.
    (iii) Furniture was to be decreased to ₹ 87,000.
    (iv) Goodwill of the firm was valued at ₹ 3,00,000 and Bakul's share was to be adjusted through the capital accounts of Akul and Chandan.
    (v) Capital of the new firm was to be in the new profit sharing ratio of the continuing partners.

    Prepare Revaluation account, Partners' Capital accounts and the Balance Sheet of the reconstituted firm.

    OR
     
    Sanjana and Alok were partners in a firm sharing profits and losses in the ratio 3 : 2. On 31st March, 2018 their Balance Sheet was as follows:

    Balance Sheet of Sanjana and Alok
    as on 31.3.2018

    Liabilities

    Amount

    (₹)

    Assets

    Amount

    (₹)

    Creditors

    60,000 Cash 1,66,000

    Work men's Compensation Fund  

    60,000 Debtors 1,46,000  

     

      Less: Provision for doubtful debts 2,000 1,44,000

    Capitals:

      Stock 1,50,000
    Sanjana
    5,00,000  
    Investments
    2,60,000
    Alok
    4,00,000 9,00,000
    Furniture
    3,00,000

     

    10,20,000

     

    10,20,000

     

     

     

     

    On 1st April, 2018, they admitted Nidhi as a new partner for 1/4th share in the profits on the following terms:
    (a) Goodwill of the firm was valued at ₹ 4,00,000 and Nidhi brought the necessary amount in cash for her share of goodwill premium, half of which was withdrawn by the old partners.
    (b) Stock was to be increased by 20% and furniture was to be reduced to 90%.
    (c) Investments were to be valued at ₹ 3,00,000. Alok took over investments at this value.
    (d) Nidhi brought ₹ 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the new profit sharing ratio.

    Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm on Nidhi's admission.

    VIEW SOLUTION
  • Question 18
    How will 'commission received' be treated while preparing cash-flow-statement? VIEW SOLUTION
  • Question 19
    How is 'dividend paid' treated by a financial enterprise for the purpose of preparing cash flow statement? VIEW SOLUTION
  • Question 20
    Prepare a comparative statement of Profit and Loss from the information extracted from the statement of Profit and Loss for the year ended 31st March, 2017 and 2018.
    Particulars 2017-18 2016-17
    Revenue from operations
    15,00,000

    10,00,000
    Other income (% of Revenue from operations) 60% 50%
    Employee benefit expenses (% of total revenue) 40% 30%
    Tax-Rate 40% 40%
    VIEW SOLUTION
  • Question 21
    (a) Calculate Revenue from operations of BN Ltd. From the following information:
    Current assets ₹ 8,00,000.
    Quick ratio is 1.5 : 1
    Current ratio is 2 : 1.
    Inventory turnover ratio is 6 times.
    Goods were sold at a profit of 25% on cost.

    (b) The Operating ratio of a company is 60%. State whether 'Purchase of goods costing ₹ 20,000' will increase, decrease or not change the operating ratio.
                                                                                          OR

    (a) Calculate 'Total Assets to Debt ratio' from the following information:
     
    Equity Share Capital 4,00,000
    Long Term Borrowings 1,80,000
    Surplus i.e. Balance in statement of Profit and Loss 1,00,000
    General Reserve 70,000
    Current Liabilities 30,000
    Long Term Provisions 1,20,000

    (b) The Debt Equity ratio of a company is 1 : 2. State whether 'Issue of bonus shares' will increase, decrease or not change the Debt Equity Ratio. VIEW SOLUTION
  • Question 22
    Explain briefly any four objectives of 'Analysis of Financial Statements'.

    OR

    State under which major headings and sub-headings will the following items be presented in the Balance Sheet of a company as per Schedule-III, Part-I of the Companies Act, 2013.
    (i) Prepaid Insurance
    (ii) Investments in Debentures
    (iii) Calls-in-arrears
    (iv) Unpaid dividend
    (v) Capital Reserve
    (vi) Loose Tools
    (vii) Capital work-in-progress
    ​(viii) Patents being developed by the company. VIEW SOLUTION
  • Question 23
    From the following Balance Sheet of Kiero Ltd. and the additional information as on 31-3-2018, prepare a Cash Flow Statement:
     

    Kiero Ltd.

    Balance Sheet as at 31-03-2018

    Particulars

    Note No.

    31-03-18

    (₹)

    31-03-17

    (₹)

    I. Equity and Liabilities

    1. Shareholders Funds

         

    (a) Share Capital

     

    7,90,000

    5,80,000

    (b) Reserves and Surplus

    1

    4,60,000

    1,20,000

           

    2. Non-Current Liabilities

         

    Long term Borrowings

    2

    5,00,000

    3,00,000

           

    3. Current Liabilities

         

    (a) Short term borrowings

    3

    1,15,000

    42,000

    (b) Short term Provisions

    4

    1,18,000

    46,000

    Total

     

    19,83,000

    10,88,000

    II. Assets      

    1. Non-Current Assets

         

    Fixed Assets

         

    (i) Tangible Assets

    5

    9,80,000

    6,35,000

    (ii) Intangible Assets

    6

    2,68,000

    1,70,000

    2. Current Assets

         

    (a) Current Investments

     

    1,40,000

    70,000

    (b) Trade Receivables

     

    4,40,000

    1,50,000

    (c) Cash and Cash Equivalents

     

    1,55,000

    63,000

    Total

     

    19,83,000

    10,88,000

           
     
    Notes to Accounts

    Note No.

    Particulars

    31-03-18 (₹)

    31-03-17 (₹)

    1.

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

    3,20,000

    60,000

      General Reserve

    1,40,000

    60,000

       

    4,60,000

    1,20,000

           

    2.

    Long-term Borrowings    
      12% Debentures

    5,00,000

    3,00,000

       

    5,00,000

    3,00,000

    3.

    Short-term Borrowings    
      Bank Overdraft

    1,15,000

    42,000

       

    1,15,000

    42,000

    4.

    Short-term Provisions    
      Provision for Tax

    1,18,000

    46,000

       

    1,18,000

    46,000

    5.

    Tangible Assets    
      Plant and Machinery

    11,00,000

    7,50,000

      Less :Accumulated Depreciation

    (1,20,000)

    (1,15,000)

       

    9,80,000

    6,35,000

    6.

    Intangible Assets    
      Goodwill

    2,68,000

    1,70,000

       

    2,68,000

    1,70,000

           

    Additional Information:
    12% debentures were issued on 1st September, 2017.

    VIEW SOLUTION
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