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Board Paper of Class 12-Commerce 2012 Accountancy All India(SET 2) - 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

    Name an item which is never shown on the ‘Payments’ side of ‘Receipts and Payments Account’, but is shown as an Expenses while preparing ‘Income and Expenditure Account’  

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  • Question 2

    A Partnership deed provides for the payments of interest on Capital but there was a loss instead of profit during the year 2010-2011. At what rate will the interest on capital be allowed?

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  • Question 3

    Give any one distinction between sacrificing ratio and gaining ratio.

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  • Question 4

    State any one purpose for admitting a new partner in a firm.

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  • Question 6

    From the following information, calculate the amount of subscription due to be shown in the

    ‘Income and Expenditure Account’ for the year ended 31.3.2011 if there are 1000 members and each paying Rs 300 p.a. as subscription.

    Subscription received during the year 2010 − 2011: Rs 3,00,000.

    Subscription received in advance as on 31.3.2011: Rs 36,800.

    Subscription outstanding as on 1.4.2010: Rs 32,000.

    Subscription received in advance as on 1.4.2010: Rs 25,000

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  • Question 7

    Sundram Ltd. Purchased Furniture for Rs 3,00,000 from Ravindram Ltd. Rs 1,00,000 were paid by drawing a Promissory Note in favour of Ravindram Ltd. The balance was paid by issue of

    Equity Shares of Rs 10 each at a premium of 25%.

    Pass necessary Journal entries in the book of Sundram Ltd.  

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  • Question 8

    Nav Lakshmi Ltd. Invited application for issuing 3,000, 12% Debentures of Rs 100 each at a premium of Rs 50 per Debentures. The full amount was payable on application.

    Applications were received for 4,000 debentures. Application for 1,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants.

    Pass necessary Journal entries for the above transaction in the books of Nav Lakshmi Ltd 

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  • Question 9

    Lalan and Balan were partners in a firm sharing profits in the ratio of 3 : 2. Their fixed capitals on 1.4.2010 were : Lalan Rs 1,00,000 and Balan Rs 2,00,000. They agreed to allow interest on capital @ 12% per annum and to charge on drawing @ 15% per annum. The firm earned a profit, before all above adjustments of Rs 30,000 of the year ended 31.3.2011. The drawing before

    Lalan and Balan during the year were Rs 3,000 and Rs 5,000 respectively. Showing your calculations, clearly prepare Profit and Loss Appropriation Account of Lalan and Balan. The interest on capital will be allowed even if the firm incurs a loss.  

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  • Question 10

    A, B, C and D are partners sharing profits in the ratio of 3 : 3 : 2 : 2 respectively. D retires and A, B and C decide to share the future profits in the ratio of 3 : 2 : 1. Goodwill of the firm is valued at Rs 6,00,000. Goodwill already appears in the book at Rs 4,50,000. The profits for the first year after D’s retirement amount to Rs 12,00,000. Give the necessary Journal entries to record Goodwill and to distribute the profits. Show your calculations clearly.  

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  • Question 11

    Sarvottam Ltd. Decided to redeem its 1250, 12% Debentures of Rs 100 each. It purchased 850 Debentures from the open market at Rs 96 per Debenture. The remaining Debenture were redeemed out of profit. The company has already made a provision for Debenture Redemption Reserve in its books.

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

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  • Question 12

    Pass necessary Journal entries for the following transaction in the books of Fortune Ltd:

    (i) Redeemed Rs 1,92,000, 12% Debenture by conversion into Equity Shares of Rs 100 each.

    The Equity Shares were issued at a discount 4%.

    (ii) Converted 2,400, 12% Debentures of Rs 100 each into New 13% Debentures of Rs 100 each.

    The new Debentures were issued at a premium 25%.

     

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  • Question 13

    Sudha and Joshi were partners in a firm sharing profits in the ration of 3 : 7. On 31.3.2011 their

    Balance Sheet was as follows:

    Balance Sheet of Sanjay and Sameer

     as on 31.3.2011

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Capitals

     

    Land and Building

    6,00,000

    Sudha:

    3,00,000

     

    Stock

    40,000

    Joshi:

    7,00,000

    10,00,000

    Debtors

    2,00,000

    Creditors

    2,77,000

    Bank

    60,000

    Profit and Loss Account

    1,23,000

    Machinery

    5,00,000

     

    14,00,000

     

    14,00,000

     

     

    The firm was dissolved on 1.4.2011 and the Assets and Liabilities were settled as follows:

    (i) Creditors accepted Debtors in full settlement of their claim.

    (ii) Land and Building was sold for Rs 7,00,000 and Machinery was taken over by Joshi by paying cash less than 30% of its books value.

    Pass necessary Journal entries for dissolution of the firm.

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  • Question 14

    From the following Receipts and Payments Account of Kolkata Sports Club for the year ended

    31.3.2011, prepare Income and Expenditure Account.

    Receipts and Payments Account of Kolkata Sports Club

    for the year ended 31.3.2011

    Dr.

     

     

    Cr.

    Receipts

    Amount

    Rs

    Payments

    Amount

    Rs

    To Balance b/d

    3,200

    By Salary

    1,800

    To Subscription

    22,500

    By Rent (paid on 30.9.2010 for 12 months)

    2,300

    To Entrance Fees (including Rs 1,000 as capital income)

    3,000

    By Electricity

    1,000

    To Donations

    750

    By Taxes

    2,200

    To Rent of hall

    1,750

    By Printing and Stationery

    400

    To Accrued interest for the year 2009 – 2010

    2,000

    By Sundry Expenses

    900

     

     

    By Books

    7,500

     

     

    By 9% Fixed Deposit (on 1.4.2010)

    15,200

     

     

    By Balance c/d

    1,900

     

    33,200

     

    33,200

     

     

     

     

     

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  • Question 15

    Atal and Madan were partners in a firm sharing profits in the ratio of 5 : 3. On 31.3.2011 they admitted Mehra as a new partner fro 1/5th share in the profits. The new profit sharing ratio was 5 : 3 : 2. On Mehra’s admission the Balance Sheet to the firm was as follows:

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Capitals:

     

    Land and Building

    1,50,000

    Atal:

    1,50,000

     

    Machinery

    40,000

    Madan:

    90,000

    2,40,000

    Patents

    5,000

    Provision for bad debts

    1,200

    Stock

    27,000

    Creditors

    20,000

    Debtors

    47,000

    Workmen compensation Fund

    32,000

    Cash

    4,200

     

     

    Profit and Loss Account

    20,000

     

    2,93,200

     

    2,93,200

     

     

    On Mehra’s admission it was agreed that

    (i) Mehra will bring Rs 40,000 as his capital and Rs 16,000 for his share of goodwill premium, half of which was withdraw by Atal and Madan;

    (ii) A provision of for bad and doubtful debts was to be created;

    (iii) Included in the sundry creditors was an item of Rs 2,500 which was not to be paid;

    (iv) A provision was to be made for an outstanding bill for electricity Rs 3,000;

    (v) A claim of Rs 325 for damage against the firm was likely to be admitted. Provision for the same was to be made.

    After the above adjustment, the capitals of Atal and Madan were to be adjusted on the basis of

    Mehra’s capital. Actual cash was to be brought in or to be paid off to Atal and Madan as the case may be.

    Prepare Revaluation Account, Capital Accounts of the partners and the Balance Sheet of the new firm.

    OR

    Khanna, Seth and Mehta were partners in a firm sharing profit in the ratio of 3 : 2 : 5. On 31.12.2010 the Balance Sheet of Khana, Seth and Mehta was as follows:

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Capitals:

     

    Goodwill

    3,00,000

    Khanna:

    3,00,000

     

    Land and Building

    5,00,000

    Seth:

    2,00,000

     

    Machinery

    1,70,000

    Mehta:

    5,00,000

    10,00,000

    Stock

    30,000

    General Reserve

    1,00,0000

    Debtors

    1,20,000

    Loan from Seth

    50,000

    Cash

    45,000

    Creditors

    75,000

    Profit and Loss Account

    60,000

     

    12,25,000

     

    12,25,00

     

     

    On 14th March 2011, Seth died.

    The partnership deed provides that on the death of a partner the executor of the deceased partners is entitled to:

    (i) Balance in Capital Account;

    (ii) Share in profits upto the date of death on the basis of last year’s profit;

    (iii) His share in profit/loss in revaluation of assets and re-assessment of liabilities which were as follows:

    (a) Land and Building was to be appreciated by Rs 1,20,000;

    (b) Machinery was to be depreciated to Rs 1,35,000 and stock to Rs 25,000;

    (c) A provision of for bad and doubtful debts was to created on debtors;

    (iv) The net amount payable to Seth’s executors was transferred to his loan account which was to be paid later.

    Prepare Revalution Account, Partners Capital Accounts, Seth’s Executors Account and the

    Balance Sheet of Khanna and Mehta who decided to continue the business keeping their capital balances in their new profit sharing ratio. Any surplus of deficit to be transferred the current account of the partners.

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  • Question 16

    R.K. Ltd. invited applications for issuing 70,000 Equity Shares of Rs 10 each at a premium of Rs 35 per share. The amount was payable as follows:

     

    On Application Rs 15 per share (including Rs 12 Premium)

    On Allotment Rs 10 per share (including Rs 8 Premium)

    On First and Final Call- Balance

    Applications for 65,000 shares were received and allotment was made to all the application. A shareholder, Ram who was allotted 2,000 shares were failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Sohan, who had 3000 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 4,000 shares were re-issued at Rs 50 per share fully paid up. The re-issued shares included all the shares of Ram.

    Pass necessary Journal Entries for the above transactions in the books of R.K. Ltd.

    OR

    Ashish Ltd. Invited applications for issuing 75,000 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 2 per share

    On First and Final Call − Balance

    Applications for 1,50,000 shares were received. Applications for 25,000 shares were rejected and the application money of these applicants was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Suman who had applied for 1250 shares failed to pay allotment and first and final call money. Dev did not pay the first and final call on his 100 shares. All these share were forfeited and later on 1000 of these share were re-issued at Rs 17 per shares fully paid up. The re-issued shares included all the shares of Suman.

    Pass necessary Journal Entries for the above transactions in the books of Ashish Ltd.

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  • Question 17

    State the significance of analysis of financial statements to ‘Top Management’.

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  • Question 18

    What is the object of preparing a Cash Flow Statement?

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  • Question 19

    While preparing Cash Flow Statements, What type of activity is ‘Payments of cash to aquire shares of another company by a trading company’.

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  • Question 20

    X Ltd. has a Current Ratio of 3 : 1 and Quick Ratio of 2 : 1. If the excess of Current Assets over

    Quick Assets as represented by Stock is Rs 40,000, calculate Current Assets and Current Liabilities.

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  • Question 21

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

    (a) Debt-Equity Ratio

    (b) Working Capital Turnover Ratio and

    (c) Return on Investment

     

    Information: Equity Share capital Rs 10,00,000, General Reserve Rs 1,00,000; Profit and Loss

    Account after tax and interest Rs 3,00,000; 12% Debenture Rs 4,00,000; Creditors Rs 3,00,000;

    Land and Building Rs 13,00,000; Furniture Rs 3,00,000; Debtors Rs 2,00,00 and Cash Rs

    1,10,000 and Preliminary expenses Rs 1,00,000

     

    Sales for the year ended 31-3-2011 was Rs 30,00,000. Tax Paid 50%.

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  • Question 22

    Following is the Income statements, prepare a Common Size Income Statements of Jayant Ltd. For the year ended 31-3-2011:

    Income Statement of Jayant Ltd.

    for the year ended 31.3.2011

    Particulars

    Amount

    Rs

    Income:

     

    Sales

    25,38,000

    Other Incomes

    38,000

    Total Income

    25,76,000

     

     

    Expenses:

     

    Cost of goods sold

    14,00,000

    Operating expenses

    5,00,000

    Total Expenses

    19,00,000

    Tax

    3,38,000

    Prepare a common size Income Statements of Raj Ltd. for the year ended 31-3-2011.

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  • Question 23

    From the following Balance Sheets of L.M.R. Ltd as on 31-3-2010 and 31-3-2011.

    Prepare a Cash Flow Statements:

    Balance Sheets of L.M.R. Ltd.

    as on 31.3.2010 and 31.3.2011

    Liabilities

    31-3-2010

    Rs

    31-3-2011

    Rs

    Assets

    31-3-2010

    Rs

    31-3-2011

    Rs

    Equity Shares Capital

    Profit and Loss Account

    Bank Loan

    Proposed Dividend

    Provision for tax

    Creditors

    2,50,000

     

    1,00,000

     

    50,000

    25,000

    15,000

    27,500

    3,50,000

     

    1,75,000

     

    25,000

    35,000

    25,000

    26,000

    Patents

    Equipment

    Investment

    Debtors

    Stock

    Bank

    Cash

    50,000

    2,50,000

    2,500

    40,000

    25,000

    1,00,000

    47,500

    2,50,000

    50,000
    60,000

    65,000

    1,50,000

    13,500

    4,67,500

    6,36,000

     

    4,67,500

    6,36,000

     

     

     

     

    Additional Information:

    During the year Equipment costing Rs50,000 was purchases. Loss on sale of Equipment amounted to Rs 6,000. Rs 9,000 deprecation was charged on Equipment.

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