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Board Paper of Class 12-Commerce 2008 Accountancy All India(SET 1) - Solutions

General Instructions:
(i) This question paper contains three parts A, B and C.
(ii) Part A is compulsory for all candidates.
(iii) Candidates can attempt only one part of the remaining parts B and C.
(iv) All parts of the questions should be attempted at one place.
(v) Questions Nos. 1-5 and 17-19 carries 1 mark each. 
(vi) Questions Nos. 6-8 and 20 carries 3 marks each. 
(vii) Questions Nos. 9-11 and 21-22 carries 4 marks each. 
(viii) Questions Nos. 12-14 and 23 carries 6 marks each. 
(ix) Questions Nos. 15-16 carries 8 marks each.
  • Question 1

    Distinguish between Income and Expenditure Account and Receipt and Payment Account on the basis of nature of items recorded therein.

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  • Question 2

    Ram and Mohan are partners in a firm without any partnership deed. Their capitals are Ram Rs 8,00,000 and Mohan Rs 6,00,000.

    Ram is a active partner and looks after the business. Ram wants that profits should be shared in proportion of capitals state with reason whether his claim is valid or not

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  • Question 4

    State any two reason for the preparation of ‘Revaluation Account’ on the admission of a partners.

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  • Question 5

    Given the meaning of ‘minimum subscription’.

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  • Question 6

    Calculate the amount of sports material to be debited to the Income and Expenditure Account of Capital Sports Club for the year ended 31.3.2007 on the basis of the following information:

    Particulars

    1.4.2006

    Rs

    31.3.2007

    Rs

    Stock of Sports Material

    7,500

    6,400

    Creditors for Sports Material

    2,000

    2,600

    Amount paid for sports material during the year was Rs 19,000.

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  • Question 7

    Samta Ltd. forfeited 800 equity shares of Rs 100 each for the non-payment of first call of Rs 30 per share. The final call of Rs 20 per

    share was not yet made. Out of the forfeited shares 400 were re-issued at the rate of Rs 105 per share fully paid up.

    Pass necessary Journal entries in the books of Samta Ltd. for the above transaction.

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  • Question 8

    Deepak Ltd. purchased furniture Rs 2,20,000 from M/s Furniture Mart. 50% of the amount was paid to Furniture Mart by accepting a

    bill of exchange and for the balance the company issued 9% debentures of Rs 100 each at a premium of 10% in favour of Furniture

    Mart.

    Pass necessary Journal entries in the books of Deepak Ltd. for the above transactions.

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  • Question 9

    Kumar and Raja were partners in a firm sharing profits in the ratio of 7 : 3. Their fixed capitals were: Kumar Rs 9,00,000 and Raja Rs

    4,00,000. The partnership deed provided for the following but the profit for the year was distributed without providing for:

    (i) Interest on capital @ 9% per annum.

    (ii) Kumar’s salary Rs 50,000 per year and Raja’s salary Rs 3,000 per month.

    The profit for the year ended 31.3.2007 was Rs 2,78,000.

    Pass the adjustment entry.

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  • Question 10

    P, Q and R were partners in a firm sharing profits in 2 : 2 : 1 ratio. The firm closes its books on 31 March every year. P died three

    months after that last accounts were prepared. On the date the goodwill of the firm was valued at Rs 90,000. On the death of a partner

    his share of profit in the year of death was to be calculated on the basis of the average profits of the last four years. The profits of last

    four years were:

    Year ended 31.3.2007 Rs 2,00,000

    Year ended 31.3.2006 Rs 1,80,000

    Year ended 31.3.2005 Rs 2,10,000

    Year ended 31.3.2004 Rs 1,70,000 (Loss)

    Pass the necessary journal entries for the treatment of goodwill and P’s shares of profit on his death. Show clearly the calculation of

    P’s share of profit.

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  • Question 11

    Sagar Ltd. was registered with an authorized capital of Rs 1,00,00,000 dividend into 1,00,000 equity shares of Rs 100 each. The

    company offered for public subscription 60,000 equity shares. Application for 56,000 shares were received and allotment was made to

    all the applicants. All the calls were made and were duly received except the second and final call of Rs 20 per share on 700 shares.

    Prepare the Balance Sheet of the company showing the different types of shares capital.

     

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  • Question 12

    Following is the Receipt and Payment Account of Indian Sports Club for the year ended 31.12.2006:

    Receipts

    Amount

    Rs

    Payments

    Amount

    Rs

    Balance b/d

    10,000

    Salary

    15,000

    Subscriptions

    52,000

    Billiards Table

    20,000

    Entrance Fees

    5,000

    Office Expenses

    6,000

    Tournament Fund

    26,000

    Tournament Expenses

    31,000

    Sale of old newspapers

    1,000

    Sports Equipment

    40,000

    Legacy

    37,000

    Balance c/d

    19,000

     

    1,31,000

     

    1,31,000

     

     

     

     

    Other Information:

    On 31.12.2006 subscription outstanding was Rs 2,000 and on 31.12.2005 subscription outstanding was Rs 3,000. A salary outstanding

    on 31.12.2006 was Rs 1,500.

    On 1.1.2006 the club had building Rs 75,000, furniture Rs 18,000, 12% investment Rs 30,000 and sports equipment Rs 30,000.

    Depreciation charged on those items including purchased was 10%.

    Prepare Income and expenditure account of the Club for the year ended 31.12.2006 and ascertain the Capital Fund 31.12.2005.

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  • Question 13

    K and Y were partners in a firm sharing profits in 3 : 2 ratio. They admitted Z as a new partners for 1/3 rd share in the profits of the firm. Z acquired his share from K and Y in 2 : 3 ratio. Z brought Rs 80,000 for his capital and Rs 30,00 for his 1/3rd shares as premium. Calculate the new profit sharing ratio of K, Y and Z and pass necessary journal entries for the above transaction in the books of the firm.

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  • Question 14

    Pass the necessary journal entries in the books of Varun Ltd. for the following transaction:

    (i) Issued 58,000, 9% debentures of Rs 1,000 each at premium of 10%.

    (ii) Converted 350, 9% debentures of Rs 100 each into equity shares of Rs 10, each issued at a premium of 25%.

    (iii) Redeemed 450, 9% debentures of Rs 100 each by draw of lots.

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  • Question 15

    R, S and T were partners in a firm sharing profits in 2 : 2 : 1 ratio. On 1.4.2004 their Balance Sheet was as follows:

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Bank Loan

    12,800

    Cash

    51,300

    Sundry Creditors

    25,000

    Bills Receivable

    10,800

    Capitals:

     

    Debtors

    35,600

    R

    80,000

     

    Stock

    44,600

    S

    50,000

     

    Furniture

    7,000

    T

    40,000

    1,70,000

    Plant and Machinery

    19,500

    Profit and Loss A/c

    9,000

    Building

    48,000

     

    2,16,800

     

    2,16,800

     

     

     

     

    S retired from the firm on 1.4.2004 and his share was ascertained on the revaluation of assets as follows:

    Stock Rs 40,000; Furniture Rs 6,000; Plant and Machinery Rs 18,000; Building Rs 40,000; Rs 1,700 were to be provided for doubtful

    debts. The goodwill of the firm was valued at Rs 12,000.

    S was to be paid Rs 18,080 in cash on retirement and the balance in three equal yearly instalments.

    Prepare Revaluation Account, Partner’s Capital Accounts, S’s Loan Account and Balance Sheet on 1.4.2004.

    OR

    D and E were partners in a firm sharing profits in 3 : 1 ratio. On 1.4.2007 they admitted F as a new partner for 1/4th share in the firm which he acquired from D. Their Balance Sheet that date was as follows:

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Creditors

    54,000

    Land and Building

    50,000

    Capitals

     

    Machinery

    60,000

    D

    1,00,000

     

    Stock

    15,000

    E

    70,000

    1,70,000

    Debtors

    40,000

     

    General Reserve

    32,000

    Less: Provision for bad debts

    3,000

    37,000

     

     

    Investment

    50,000

     

     

    Cash

    44,000

     

    2,56,000

     

    2,56,000

     

     

     

     

    F will bring Rs 40,000 as his capital and the other terms agreed upon were:

    (i) Goodwill of the firm was valued at Rs 24,000

    (ii) Land and Building were valued at Rs 70,000

    (iii) Provision for bad debts was found to be in excess by Rs 800

    (iv) A liability, for Rs 2,000 included in sundry creditors was not likely to arises.

    (v) The capital of the partners be adjusted on the basis of F’s contribution of capital to the firm.

    (vi) Excess or shortfall, if any, to be transferred to current accounts.

    Prepare Revaluation Account, Partners’ Capital Account and the Balance Sheet of the new firm.

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  • Question 16

    Janata Ltd. invited application for issuing 70,000 equity shares of Rs 10 each at a premium of Rs 2 per share. The amount was payable

    as follows:

    On application Rs 4 per share (including premium)

    On allotment Rs 3 per share

    On First and final call - Balance.

    Application for 1,00,000 share were received. Applications for 10,000 shares were rejected. Shares were allotted to the remaining

    applicants on pro-rata basis. Excess money received with applications were adjusted towards sums due in allotment. All calls were

    made and were duly received except first and final call on 700 shares allotted to Kanwar. His shares were forfeited. The forfeited

    shares were re-issued for Rs 77,000 fully paid up.

    Pass necessary journal entries in the books of the company for the above transactions.

    OR

    Shubham Ltd. invited applications for the allotment of 80,000 equity shares of Rs 10 each at a discount of 10%. The amount was payable as follows:

    On application Rs 2 per share

    On allotment Rs 3 per share

    On first and final - Balance

    Applications for 1,10,000 shares were received. Application for 10,000 shares were rejected. Shares were allotted on pro-rata basis to the remaining applicants. Excess application money received on application was adjusted towards sums due on allotment. All calls were made and were duly received. Manoj who had applied for 2,000 shares failed to pay the allotment and first and final call. His shares were forfeited. The forfeited shares were re-issued for Rs 24,000 fully paid up.

    Pass necessary Journal entries in the books of the company for the above transaction.

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  • Question 17

    The stock turnover ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change

    because of increase in the value of closing stock by Rs 5,000.

     

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  • Question 18

    State whether the payment of cash to creditors will result in inflow, outflow or no flow of cash.

     

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  • Question 19

    Dividend paid by a manufacturing company is classified under which kind of activity while preparing cash flow statement?

     

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  • Question 20

    Show the major heading on the liabilities side of the Balance Sheet of a company as per schedule VI Part I of the companies Act,

    1956.

     

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  • Question 21

    From the following information prepare a Comparative Income Statement of Victor Ltd.

     

    2006

    Rs

    2007

    Rs

    Sales

    15,00,000

    18,00,000

    Cost of goods sold

    11,00,000

    14,00,000

    Indirect Expenses

    20% of Gross Profit

    25% of Gross Profit

    Income Tax

    50%

    50%

     

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  • Question 22

    From the following information calculate any two of the following ratios:

    (i) Net Profit Ratio

    (ii) Debt-Equity Ratio

    (iii) Quick Ratio

    Information:

     

    Rs

    Paid up Capital

    20,00,000

    Capital Reserve

    2,00,000

    9% Debentures

    8,00,000

    Net Sales

    14,00,000

    Gross Profit

    8,00,000

    Indirect Expenses

    2,00,000

    Current Assets

    4,00,000

    Current Liabilities

    3,00,000

    Opening Stock

    50,000

    Closing Stock- 20% more than opening stock

     

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  • Question 23

    From the following Balance Sheet of Som Ltd. as on 31.3.2006 and 31.3.2007 prepare of Cash Flow Statement:

    Liabilities

    2006

    Rs

    2007

    Rs

    Assets

    2006

    Rs

    2007

    Rs

    Equity Share Capital

    2,00,000

    5,00,000

    Fixed Assets

    3,00,000

    4,50,000

    Profit and Loss

    1,25,000

    25,000

    Stock

    1,00,000

    1,50,000

    10% Debentures

    1,00,000

    75,000

    Debtors

    75,000

    1,25,000

    8% Preference Share Capital

    50,000

    75,000

    Bank

    45,000

    65,000

    General Reserve

    45,000

    1,15,000

     

     

     

     

    5,20,000

    7,90,000

     

    5,20,000

    7,90,000

     

     

     

     

     

     

    During the year a machine costing Rs 70,000 was sold for Rs 15,000. Dividend paid Rs 24,000.

     

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