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Board Paper of Class 12-Commerce 2020 Accountancy Delhi(Set 2) - Solutions

General Instructions:
Read the following instructions very carefully and strictly follow them : 
(i) This question paper comprises two · PARTS - A and B. There are 32 questions in the question paper. All questions are compulsory.
(ii) Part - A is compulsory for all candidates.
(iii) Part - B has two options i.e. (i) Analysis of Financial Statement and 
(ii) Computerized Accounting. You have to attempt only one of the given OPTIONS.
(iv) Heading of the option opted must be written on the Answer-Book before attempting the questions of that particular OPTION.
(v) Question number 1 to 13 and 23 to 29 are very short answer type questions carrying 1 mark each.
(vi) Question number 14 and 30 are short answer type-I questions carrying 3 marks each.
(vii) Question number 15 to 18 and 31 are short answer type-II questions carrying 4 marks each.
(viii) Question number 19 to 20 and 32 are also long answer type-I questions carrying 6 marks each.
(ix) Question number 21 and 22 are long answer type-II questions carrying 8 marks each.
(x) Answer should be brief and to the point. The answer of each part should be written at one place.
(xi) There is no overall choice. However, an internal choice has been provided in 2 questions of three marks, 2 questions of four marks, 1 question of six marks and 2 questions of  eight marks. You have to attempt only one of the choices in such questions.
(xii) However, separate instructions are given with each section and question, wherever necessary.


  • Question 1
    Which of the following does not result into reconstitution of a firm?
    (a) Dissolution of partnership firm.
    (b) Dissolution of partnership.
    (c) Change in profit-sharing-ratio of existing partners.
    (d) Death of partner. VIEW SOLUTION


  • Question 2
    No debenture redemption reserve is required for debentures issued by :
    (a) manufacturing companies
    (b) infrastructure companies
    (c) banking companies
    (d) trading companies VIEW SOLUTION




  • Question 4
    Harit and Leela are partners in a firm sharing profits and losses in the ratio of 2 : 3. Yash was admitted as a new partner for 1/5th share in the profits of the firm. Yash acquires his share from Leela. The new profit sharing ratio of Harit, Leela and Yash will be :
    (a) 2 : 3 : 5
    (b) 2 : 2 : 1
    (c) 5 : 3 : 2
    (d) 3 : 5 : 1 VIEW SOLUTION


  • Question 5
    Vanya Ltd. forfeited 20,000 equity shares of 100 each for non-payment of first and final call of  40 per share. The maximum amount of discount at which these shares can be re-issued will be :
    (a) 8,00,000
    (b) 12,00,000
    (c) 20,00,000
    (d) 20,000 VIEW SOLUTION


  • Question 6
    Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. The firm earned a profit of ₹ 30,000 during the year. Mohit's share in the profit will be :
    (a) ₹ 20,000
    (b) ₹ 10,000
    (c) ₹ 15,000
    (d) ₹ 18,000  VIEW SOLUTION


  • Question 7
    In case of retirement of a partner, profit or loss on revaluation of assets and re-assessment of liabilities is distributed among _________ partners in ___________ ratio. VIEW SOLUTION


  • Question 8
    ___________ means any offer of securities to a select group of persons by a company other than by way of public offer. VIEW SOLUTION


  • Question 9
    Madura Ltd. decided to redeem its 10,000, 10% debentures of ₹100 each at a premium of 8%. The minimum amount transferred to debenture redemption reserve will be :
    (a) ₹ 10,00,000
    (b) ₹ 10,80,000
    (c) ₹ 2,70,000
    (d) ₹ 2,50,000 VIEW SOLUTION


  • Question 10
    Jaipur Club has a prize fund of ₹ 6,00,000. It incurs expenses on prizes amounting to ₹ 5,20,000. The expenses should be
    (a) debited to income and expenditure account.
    (b) presented on the asset side of the balance sheet.
    (c) debited to income and expenditure account and presented on the asset side of the balance sheet.
    (d) deducted from the prize fund on the liability side of the balance sheet. VIEW SOLUTION


  • Question 11
    Disha and Abha were partners in a firm. Farad was admitted as a new partner for 1/5th share in the profits of the firm. Farad brought proportionate capital. Capitals of Disha and Abha after all adjustments were ₹ 64,000 and ₹ 46,000 respectively. Capital brought by Farad was :
    (a) ₹ 22,000
    (b) ₹ 27,500
    (c) ₹ 55,000
    (d) ₹ 28,000 VIEW SOLUTION


  • Question 12
    Which of the following is not a capital receipt?
    (a) Donations for tournament
    (b) Donations for building fund
    (c) Life membership fee 
    (d) Entrance fees VIEW SOLUTION


  • Question 13
    Give the meaning of 'Calls-in-Advance'. VIEW SOLUTION


  • Question 14
    Kabir and Farid are partners in a firm sharing profits in the ratio of 3:1 on 1-4-2019 they admitted Manik into partnership for 1/4th share in the profits of the firm. Manik brought his share of goodwill premium in cash. Goodwill of the firm was valued on the basis of 2 years purchase of last three years average profits. The profits of last three years were:
    2016-17 90,000
    2017-18 ₹ 1,30,000
    2018-19 ₹ 86,000
    During the year 2018-19 there was a loss of 20,000 due to fire which was not accounted for while calculating the profit.
    Calculate the value of goodwill and pass the necessary journal entries to the treatment of goodwill.

    OR

    Raka, Seema and Mahesh were partners sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2019, they mutually agreed to share profits and losses in the ratio of 2:2:1.
    On that date, there was a workmen's compensation fund of 90,000 in the books of the firm. It was agreed that:
    (i) Goodwill of the firm be valued at 70,000.
    (ii) Claim for workmen's compensation amounted to 40,000.
    (iii) Profit on revaluation of assets and re-assessment of liabilities amounted to 40,000.
    Pass necessary journal entries for the above transactions in the books of the firm. VIEW SOLUTION


  • Question 15
    How will the following items be treated while preparing the financial statements of a not-for-profit organization for the year ended 31st March, 2019?
     
      As at 31-3-2018
    (₹)
    As at 31-3-2019
    (₹)
    Creditors for medicines 33,000 67,000
    Stock of medicines 27,000 43,000
    During 2018-19, the payment made to the creditors was ₹ 4,25,000. VIEW SOLUTION


  • Question 16
    From the given Receipts and Payments Account and additional information of Shine Club for the year ended 31st March, 2019, prepare Income and Expenditure Account for the year ended 31st March, 2019.
     

    Receipts and Payments Account of Shine Club for the
    year ended 31st March, 2019

    Receipts

    Amount

    ()

    Payments

    Amount

    ()

    To balance b/d

    50,000

    By Furniture & equipments

    1,22,000

    To donations

    45,000

    By Salaries

    32,000

    To subscriptions :

     

    By balance c/d

    13,400

    2017-18

    1,600

     

     

     

    2018-19

    60,000

     

     

     

    2019-20

    5,000

    66,600

     

     

    To interest received

    5,800

     

     

     

    1,67,400

     

    1,67,400

     

     

     

     


    Additional Information :
    (i) Furniture and equipments were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on furniture and equipments.
    (ii) Subscriptions in arrears for the year 2018-19 were 2,000
    (iii) Outstanding salary 6,000. VIEW SOLUTION


  • Question 17
    Tripti, Atishay and Radhika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as on 31-3-2019 was as follows:
    Balance Sheet of Tripti, Atishay and Radhika as on 31st March, 2019.

    Liabilities

    Amount

    (₹)

    Assets

    Amount

    (₹)

    Capitals :
     
    Plant and Machinery 5,00,000
    Tripti
    3,00,000   Stock  1,10,000
    Atishay
     2,00,000   Sundry debtors 60,000
    Radhika
    1,00,000 6,00,000 Cash at bank  40,000
     
         
    General Reserve
    50,000    
    Sundry creditors
    60,000    

     

    7,10,000

     

    7,10,000

     

     

     

     


    Tripti died on 30th June, 2019. According to the partnership deed, the executors of the deceased partner are entitled to :
    (a) Balance in partner's capital account.
    (b) Salary @ ₹ 12,500 per quarter.
    (c) Share of goodwill calculated on the basis of twice the average of past three years' profits and share of profits from the closure of the last accounting year till the date of death on the basis of last year's profit. Profits for 2016-17, 2017-18 and 2018-19 were ₹ 1,00,000, ₹ 1,50,000 and ₹ 2,00,000 respectively.
    (d) Tripti withdrew ₹ 20,000 on 1st May, 2019 for her personal use. Prepare Tripti's Capital Account to be rendered to her executors. VIEW SOLUTION


  • Question 18
    Puneet and Akshara were partners in a firm sharing profits and losses in the ratio of 2:3. The following was the balance sheet of the firm as on 31st March, 2019.
     
    Balance sheet of Puneet and Akshara as on 31st March, 2019.

    Liabilities

    Amount

    (₹)

    Assets

    Amount

    (₹)

    Capitals:

     

    Sundry Assets

    2,00,000

    Puneet

    90,000

     

     

     

    Akshara

    1,10,000

    2,00,000

     

     

     

    2,00,000

     

    2,00,000

     

     

     

     


    The profits 40,000 for the year ended 31st March, 2019 were divided between the partners without allowing interest on capital @ 5% p.a. and commission to Akshara @ 1,000 per quarter.
    The drawings of the partners during the year were :
    Puneet 2,500 per month.
    Akshara 10,000 per quarter.
    Showing your workings clearly, pass necessary adjustment entry in the books of the firm. VIEW SOLUTION


  • Question 19
    Naina, Uday and Tara were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm was dissolved on 31-3-2019. After transfer of assets (other than cash) and external liabilities to Realization Account, the following transactions took place :
    (a) A typewriter completely written off from the books was sold for ₹ 4 ,000.
    (b) Loan of ₹ 30,000 advanced by Uday to the firm was paid back.
    (c) Tara was to get remuneration of ₹ 42,000 for completing the dissolution process and for bearing realization expenses.
    Actual realization expenses amounted to ₹ 51,000 and were paid by the firm.
    (d) Creditors of ₹ 23,000 took over all the investments at ₹ 12,000. Remaining amount was paid to them in cash.
    (e) Uday agreed to pay loan of Mrs. Uday ₹ 45,000.
    (f) Profit and Loss Account balance of ₹ 20,000 appeared on the asset side of the balance sheet.

    Pass necessary journal entries for the above transactions in the books of the firm. VIEW SOLUTION


  • Question 20
    (a) On 1st April, 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31st March, 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
    Pass the necessary journal entries for redemption of debentures.

    (b) Hero Ltd. purchased plant and machinery for ₹ 18,00,000 from Pearl Machines Ltd. payable ₹ 3,00,000 by drawing a promissory note and the balance by issue of 9% debentures of ₹ 100 each at a premium of 20%. 
    Pass the necessary journal entries in the books of Hero Ltd. for the above transactions.

    OR

    (a) BGP Ltd. invited applications for issuing 15,000, 11% debentures of ₹ 100 each at a premium of ₹ 50 per debenture. The full amount was payable on application. Applications were received for 25,000 debentures. Applications for 5,000 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on pro-rata basis.
    Pass the necessary journal entries for the above transactions in the books of BGP Ltd. 

    (b) Agam Ltd. issued 40,000 9% debentures of ₹ 100 each on April 1, 2018 at a discount of 10%, redeemable at a premium of 10%.
    Assuming that the interest was paid half yearly on September 30 and March 31 and the tax deducted at source was 10%, give journal entries relating to debenture interest for the half year ended March 31, 2019. VIEW SOLUTION


  • Question 21
    Achla and Bobby were partners in a firm sharing profits and losses in the ratio of 3:1. On 31st March, 2019, their balance sheet was as follows:

    Balance Sheet of Achla and Bobby as on 31st March, 2019

    Liabilities 

    Amount

    (₹)

    Assets

    Amount

    (₹)

    Creditors
    1,10,000
    Cash at bank 60,000
    General Reserve 40,000 Debtors 40,000
    Workmen's compensation reserve 50,000 Stock 45,000
    Capitals :   Furniture 1,55,000
    Achla
    4,00,000   Land & Building                    5,00,000
    Bobby
    2,00,000 6,00,000    
     
         

     

         

     

    8,00,000

     

    8,00,000

     

     

     

     


    On 1st April, 2019, they admitted Vihaan as a new partner for 1/5th share in the profits of the firm on the following terms:

    (a) Vihaan brought ₹ 1,00,000 as his capital and the capitals of Achla and Bobby were to be adjusted on the basis of Vihaan's capital ; any surplus or deficiency was to be adjusted by opening current accounts.
    (b) Goodwill of the firm was valued at ₹ 4,00,000. Vihaan brought the necessary amount in cash for his share of goodwill premium, half of which was withdrawn by the old partners.
    (c) Liability on account of workmen's compensation amounted to ₹ 80,000.
    (d) Achla took over stock at ₹ 35,000.
    (e) Land and building was to be appreciated by 20%.

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

    OR

    Gita, Radha and Garv were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31st March, 2019, their balance sheet was as follows: ​

    Balance Sheet of Gita, Radha & Garv as on 31st March, 2019 

    Liabilities 

    Amount

    (₹)

    Assets

    Amount

    (₹)

    Sundry Creditors
    60,000
    Cash 50,000
    General Reserve 40,000 Stock 80,000
    Capitals :   Debtors 40,000
    Gita
    3,00,000   Investments              30,000
    Radha
    2,00,000   Buildings 5,00,000
    Garv
    1,00,000 6,00,000    

     

         

     

    7,00,000

     

    7,00,000

     

     

     

     


    Radha retired on the above date and it was agreed that:
    (a) Goodwill of the firm be valued at ₹ 3,00,000 and Radha's share be adjusted through the capital accounts of Gita and Gary.
    (b) Stock was to be appreciated by 20%.
    (c) Buildings were found undervalued by ₹ 1,00,000.
    (d) Investments were sold for ₹ 34,000.
    (e) Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.

    Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm on Radha's retirement. VIEW SOLUTION


  • Question 22
    Premier Tools Ltd. invited applications for issuing 2,00,000 equity shares of 10 each at a premium of 2 per share. The amount was payable as follows:
    On application - 5 per share (including premium)
    On allotment - 3 per share
    On first & final call – Balance
    Applications were received for 2,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application were adjusted towards sums due on allotment.
    All calls were made and duly received except allotment and first and final call from Naveen who applied for 7,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for 48,000 as fully paid.
    Pass the necessary journal entries for the above transactions in the books of Premier Tools Ltd. Open calls-in-arrears account wherever required.

    OR

    Concept Stationary Ltd. invited applications for issuing 3,00,000 shares of 10 each at a premium of 3 per share. The amounts were payable as follows:
    On application and allotment – 7 per share.
    On first & final call – balance (including premium of 3)
    Applications were received for 4,00,000 shares & allotment was made as follows:
    (i) To applicants for 80,000 shares – 80,000 shares.
    (ii) To applicants for 40,000 shares – nil
    (iii) Balance of the applicants were allotted shares on pro-rata basis.
    Excess money received with applications was adjusted towards sums due on first and final call.
    Amit, who belonged to category (i) and was allotted 4,000 shares and Veni, who belonged to category (iii) and was allotted 4,400 shares failed to pay the first and final call money. Their shares were forfeited. The forfeited shares were re-issued at 7 per share fully paid-up.
    Pass necessary journal entries for the above transactions in the books of the company. VIEW SOLUTION


  • Question 23
    What is meant by 'Operating Activities'? VIEW SOLUTION


  • Question 24
    X Ltd. redeemed ₹ 1,00,000, 9% debentures at 10% premium. What will be the amount of 'Cash Flows from financing activities'? VIEW SOLUTION


  • Question 25
    The current ratio of a company is 2 : 1. State giving reason whether purchase of goods on credit will increase, decrease or not change the ratio. VIEW SOLUTION


  • Question 26
    Which of the following is not an activity ratio ?
    (a) Inventory turnover ratio
    (b) Interest coverage ratio
    (c) Working capital turnover ratio
    (d) Trade receivables turnover ratio VIEW SOLUTION


  • Question 27
    The Balance Sheet provides information about financial position of an enterprise :
    (a) over a period of time
    (b) during a period of time
    (c) for a period of time
    (d) at a point of time VIEW SOLUTION


  • Question 28
    State giving reason, whether issue of shares for consideration other than cash will result into inflow, outflow or no flow of cash. VIEW SOLUTION


  • Question 29
    'Prepaid Expenses' are presented in the Balance Sheet of a company under the sub-head ____________. VIEW SOLUTION


  • Question 30
    A company had a liquid ratio of 1.5:1 and a current ratio of 2:1. Its inventory turnover ratio was 6 times. It had total current assets of 2,00,000.
    Find out revenue from operations if the goods are sold at 25% profit on cost.

    OR

    Calculate the amount of opening trade receivables and closing trade receivables from the following information:
     
    Trade receivables turnover ratio 8 times
    Cost of revenue from operations 4,80,000

    The amount of credit revenue from operations is 2,00,000 more than cash revenue from operations. Gross profit ratio is 20%. Opening trade receivables are 1/4th of Closing trade receivables. VIEW SOLUTION


  • Question 31
    Prepare common size statement of profit and loss from the following information:
     

    Particulars

    Note No.

    2017-18

    2016-17

    Revenue from operations

     

    ₹ 16,00,000

    ₹ 8,00,000

    Cost of material consumed

     

     

     

    (% of revenue from operations)

     

    60%

    50%

    Operating expenses

     

    ₹ 80,000

    ₹ 40,000

    Income tax rate

     

    40%

    30%

    OR

    From the following Balance Sheets of Vinayak Ltd. as at 31st March, 2019, prepare a comparative Balance Sheet.
     

    Vinayak Ltd.

    Balance Sheet as at 31st March, 2019

     

    Particulars

    Note

    No.

    31-03-19

    (₹)

    31-03-18

    (₹)

     

    Equity and Liabilities

         

    (1)

    Shareholders Funds

         
     

    (a) Share capital

     

    21,00,000

    20,00,000

     

    (b) Reserves and Surplus

     

    2,30,000

    2,00,000

    (2)

    Non-current liabilities

         
     

    Long term borrowing

     

    5,60,000

    2,00,000

    (3)

    Current liabilities

     

     

     

     

    Trade payables

     

    2,80,000

    1,00,000

     

    Total

     

    31,70,000

    25,00,000

     

    Assets

         

    (1)

    Non-current Assets

         

     

    Fixed Assets

     

     

     

     

    (i) Tangible assets

     

    21,00,000

    20,00,000

     

    (ii) Intangible assets

     

    3,00,000

    2,00,000

    (2)

    Current Assets

         
     

    (a) Inventories

     

    5,60,000

    2,00,000

     

    (b) cash and cash equivalents

     

    2,10,000

    1,00,000

     

    Total

     

    31,70,000

    25,00,000

             
    VIEW SOLUTION


  • Question 32
    Cash flow from operating activities of Starline Ltd. for the year ended 31.03.2019 was ₹ 18,000. The Balance Sheet along with notes to accounts of Starline Ltd. as at 31-03-19 is given below :

    Starline limited​

    Balance Sheet as at 31st March, 2019

    Particulars

    Note No.

    31-03-19

    (₹)

    31-03-18

    (₹)

    I. Equity and Liabilities: ​

    1. Shareholders Funds

         

    (a) Share Capital

     

    18,00,000

    10,00,000

    (b) Reserves and Surplus

    1

    50,000

    40,000

           

    2. Non-Current Liabilities

         

    Long term Borrowings

    2

    1,00,000

    4,00,000

           

    3. Current Liabilities

         

    Short term Provisions

    3

    2,50,000

    3,60,000

    Total

     

    22,00,000

    18,00,000

    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

     

    22,00,000

    18,00,000

           
    ​  
    Notes to Accounts

     

    Particulars

    31-03-19
    (₹)

    31-03-18
    (₹)

    1.

    Reserves and Surplus 50,000 40,000
      Surplus (Balance in Statement of Profit and Loss)

    50,000

    40,000

           

    2.

    Long-term Borrowings    
      8% Debentures

    1,00,000

    4,00,000

       

    1,00,000

    4,00,000

    3.

    Short term provisions    
      Provision for tax

    2,50,000

    3,60,000

       

    2,50,000

    3,60,000

    4.

    Tangible Assets    
      Plant and Machinery

    15,20,000

    10,90,000

      Less :Accumulated Depreciation

    (1,20,000)

    (90,000)

       

    14,00,000

    10,00,000

    5.

    Intangible Assets    
      Goodwill

    1,80,000

    70,000

       

    1,80,000

    70,000

           

    You are given the following additional information :
    (a) A machinery of the book value of ₹ 40,000 (depreciation provided thereon ₹ 12,000) was sold at a loss of ₹ 6,000.

    (b) 8% debentures were redeemed on 1st July 2018.
    Prepare Cash Flow Statement.

    VIEW SOLUTION
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