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Board Paper of Class 12-Commerce 2020 Accountancy Delhi(Set 3) - 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
    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 2
    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 3
    What is meant by 'Subscribed Capital'? VIEW SOLUTION


  • Question 4
    Bishan and Sudha were partners in a firm sharing profits and losses in the ratio of 5 : 3. Alena was admitted as a new partner. It was decided that the new profit sharing ratio of Bishan, Sudha and Alena will be 10 : 6 : 5. The sacrificing ratio of Bishan and Sudha will be:
    (a) 5 : 3
    (b) 25 : 78
    (c) 6 : 5
    (d) 2 : 1 VIEW SOLUTION


  • Question 5
    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 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
    ___________ means any offer of securities to a select group of persons by a company other than by way of public offer. VIEW SOLUTION


  • Question 8
    On forfeiture of 100 shares of ₹ 50 each, ₹ 2,500 were credited to share forfeited account. These shares were re-issued at ₹ 25 per share fully paid up. The amount credited to 'Capital Reserve Account' will be:
    (a) ₹ 2,500
    (b) ₹ 5,000
    (c) No amount
    (d) ₹ 3,000 VIEW SOLUTION


  • Question 9
    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 10
    The business of a partnership firm may be carried on by all the partners or any one of them acting for all. One of the important implication of this statement is that every partner is entitled to participate in the conduct of the affairs of its business. State the second important implication of this statement. VIEW SOLUTION


  • Question 11
    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 12
    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 13
    For recording the issue of debentures as a collateral security by a journal entry _______ account is debited. 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 31-3-18
    (₹)  
    As at 31-3-19
    (₹)
    Creditors for stationery 78,000  50,000 
    Stock of stationery 62,000  41,000 
     
    During 2018-19, payment made to creditors was ₹ 1,80,000. 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
    Nikita, Mankrit and Pulkit were partners in a firm sharing profits and losses in the ratio 4 : 3 : 2. Their balance sheet as on 31st March, 2019 was as follows:
    Balance Sheet of Nikita, Mankrit and Pulkit as on 31st March 2019

    Liabilities

    Amount

    (₹)

    Assets

    Amount

    (₹)

    Capitals :
     
    Plant and Machinery 6,40,000
    Nikita
    4,00,000   Stock  2,30,000
         Mankrit  3,00,000   Sundry debtors 1,40,000
         Pulkit 2,00,000 9,00,000 Cash at bank  40,000
    General Reserve
    90,000    
    Creditors
    60,000    

     

    10,50,000

     

    10,50,000

     

     

     

     

    Mankrit died on 31st July, 2019. According to the partnership deed, the executors of the deceased partner are entitled to:
    (a) Balance of partner's capital account
    (b) Salary @ ₹ 6,000 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 calculated on the basis of average of three completed years' profits before death.
    Profits for 2016-17, 2017-18 and 2018-19 were ₹ 80,000, ₹ 90,000 and ₹ 1,00,000 respectively.
    (d) Mankrit withdrew ₹ 6,000 on 15th May, 2019.
    Prepare Mankrit'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
    Muskaan, Priya and Rohan were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 1. The firm was dissolved on 31-3-2019. After transfer of assets (other than cash) and external liabilities to realisation account, the following transactions took place:
    (a) Furniture of  ₹ 70,000 was sold for ₹ 74,000 by auction and  auctioneer's commission amounted to ₹ 3,000.
    (b) There was an unrecorded computer which was taken over by Priya for ₹ 7,000.
    (c) Creditors were paid ₹ 44,000 in full settlement of their account of ₹ 49,000.
    (d)  Rohan's sister's loan ₹ 20,000 was paid off by Muskaan.
    (e) Expenses on dissolution were ₹ 15,000 and paid by Rohan.
    (f) Loss on dissolution amounted to ₹ 24,000.
    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
    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 22
    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 23
    Short term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value are called __________. VIEW SOLUTION




  • Question 25
    Which of the following is a limitation of financial analysis?
    (a) It is just a study of reports of the company.
    (b) It judges the ability of the firm to repay its debts.
    (c) It identifies the reasons for change in financial position.
    (d) It ascertains the relative importance of different components of the financial position of the firm. VIEW SOLUTION


  • Question 26
    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 27
    Which of the following is not a tool of financial analysis ?
    (a) Comparative income statement
    (b) Comparative position statement
    (c) Statement of profit and loss
    (d) Cash flow statement VIEW SOLUTION


  • Question 28
    As per Schedule III, Part I of the Companies Act, 2013 'Unpaid divided' will be presented under which of the following head/sub-head, in the Βalance Sheet of a company:
    (a) Reserves and Surplus
    (b) Current Liabilities
    (c) Contingent Liabilities
    (d) Shareholders Funds VIEW SOLUTION


  • Question 29
    'Interest accrued on investments' will be presented in the Balance Sheet of a company under the sub-head ________. VIEW SOLUTION


  • Question 30
    The fixed assets of a company were 35,00,000. Its current assets were 4,30,000 and current liabilities were 3,30,000. During the year ended 31-03-2019 the company earned net profit before tax 18,00,000. The tax rate was 30%. Calculate return on investment.

    OR

    Inventory in the beginning ₹ 30,000
    Inventory at the end ₹ 50,000
    Net Purchases ₹ 5,00,000
    Wages ₹ 25,000
    Salaries ₹ 40,000
    Revenue from operations ₹ 8,00,000
    Carriage Inwards ₹ 5,000
    Returns Outwards ₹ 30,000

    Calculate Inventory Turnover Ratio. 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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