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Board Paper of Class 12-Commerce 2014 Accountancy All India(SET 1) - Solutions

General Instructions:
1) This question paper contains two parts A and B.
2) Part A is compulsory for all.
3) Part B has two options-Financial statement Analysis and Computerised Accounting.
4) Attempt only one option of Part B.
5) All parts of a question should be attempted at one place.

Section A
i. This section consists of 18 questions.
ii. All the questions are compulsory.
iii. Question Nos. 1 to 7 are very short-answer questions carrying 1 mark each.
iv. Question Nos. 8 to 10 carry 3 marks each.
v. Question Nos. 11 to 14 carry 4 marks each.
vi. Question Nos. 15 and 16 carry 6 marks each.
vii. Question Nos. 17 and 18 carry 8 marks each.

Section B
i. This section consists of 7 questions.
ii. All questions are compulsory
iii. Question Nos. 19 to 21 are very short-answer questions carrying 1 mark each.
iv. Question No. 22 carries 3 marks.
v. Question Nos. 23 and 24 carry 4 marks.
vi. Question No. 25 carries 6 marks.

  • Question 1

    X, Y and Z were partners sharing profits in the ratio of 12,310 and 15. X retired from the firm. Calculate the gaining ratio of the remaining partners.

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  • Question 2

    State the rights acquired by a newly admitted partner.

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  • Question 3

    Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of Court's intervention.

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  • Question 4

    Give the meaning of 'Reconstitution of a partnership firm'.

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  • Question 5

    D Ltd. invited applications for issuing 10,00,000 equity shares of Rs 10 each. The public applied for 8,55,000 shares. Can the company proceed for the allotment of shares? Give reason in support of your answer.

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  • Question 6

    A Ltd. forfeited 100 equity shares of Rs 10 each issued at a premium of 20% for the non-payment of final call of Rs 5 including premium. State the maximum amount of discount at which these shares can be re-issued.

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  • Question 7

    What is meant by issue of debentures as collateral security ?

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  • Question 8

    Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were Rs 1,60,000 and Rs 1,00,000 respectively. They admitted Somesh on 1st April, 2013 as a new partner for 1/5 share in the future profits. Somesh brought Rs 1,20,000 as his capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transactions on Somesh's admission.

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  • Question 9

    Tata Ltd. issued 5,000, 10% Debentures of Rs 100 each on 1st April, 2012. The issue was fully subscribed. According to the terms of issue, interest on debentures is payable half-yearly on 30th September and 31st March and tax deducted at source is 10%.

    Pass the necessary journal entries related to the debenture interest for the half-yearly ending on 31st March, 2013 and transfer of interest on debentures to Statement of Profit and Loss.

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  • Question 10

    Pass necessary journal entries in the following cases :

    (i) Sunrise Ltd. converted 500, 9% debentures of Rs 100 each issued at a discount of 10% into equity shares of Rs 100 each issued at a premium of Rs 25%.

    (ii) Britannia Ltd. redeemed 3,000, 12% debentures of Rs 100 each which were issued at a discount of Rs 10 per debenture by converting them into equity shares of Rs 100 each Rs 90 paid up.

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  • Question 11

    Singh and Gupta decided to start a partnership firm to manufacture low cost jute bags as plastic bags were creating many environmental problems. They contributed capitals of Rs 1,00,000 and Rs 50,000 on 1st April, 2012 for this. Singh expressed his willingness to admit Shakti as a partner without capital, who is specially abled but a very creative and intelligent friend of his. Gupta agreed to this. The terms of partnership were as follows :
    (i) Singh, Gupta and Shakti will share profits in the ratio of 2 : 2 : 1.
    (ii) Interest on capital will be provided @ 6% p.a.
    Due to shortage of capital, Singh contributed Rs 25,000 on 30th September, 2012 and Gupta contributed Rs 10,000 on 1st January, 2013 as additional capital. The profit of the firm for the year ended 31st March 2013 was Rs 1,68,900.
    (a) Identify any two values which the firm wants to communicate to the society.
    (b) Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2013.

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  • Question 12

    Monika, Sonika and Mansha were partners in a firm sharing profits in the ratio of 2 : 2 : 1 respectively. On 31st March, 2013 their Balance Sheet was as under :

    Balance Sheet as on 31st March, 2013

    Liabilities

    Amount

    Rs

    Assets

    Amount

     Rs

    Capitals :

     

    Fixed Assets

    3,60,000

    Monika

    1,80,000

     

    Stock

    60,000

    Sonika

    1,50,000

     

    Debtors

    1,20,000

    Mansha

    90,000

    4,20,000

    Cash

    2,70,000

    Reserve Fund

    1,50,000

     

     

    Creditors

    2,40,000

     

     

     

    8,10,000

     

    8,10,000

     

     

     

     


    Sonika died on 30th June, 2013. It was agreed between her executors and the remaining partners that

    (a) Goodwill of the firm be valued at 3 years' purchase of average profits for the last four years. The average profits were Rs 2,00,000.

    (b) Interest on capital be provided at 12% p.a.

    (c) Her share in the profits upto the date of death will be calculated on the basis of average profits for the last four years.

    Prepare Sonika's Capital Account as on 30th June, 2013.

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  • Question 13

    On 1st April, 2012, Vishwas Ltd. was formed with an authorised capital of Rs 10,00,000 divided into 1,00,000 equity shares of Rs 10 each. The company issued prospectus inviting applications for 90,000 equity shares. The company received applications for 85,000 equity shares. During the first year, Rs 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the first call of Rs 2 per share. Shyam's shares were forfeited after the first call and later on 1,500 of the forfeited share were re-issued at Rs 6 per share, Rs 8 called up.

    Show the following:
    (a) Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956.
    (b) Also prepare 'Notes to Accounts' for the same.

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  • Question 14

    Pass necessary journal entries for the following transactions in the books of Gopal Ltd. :

    (i) Purchased furniture for Rs 2,50,000 from M/s Furniture Mart. The payment to M/s Furniture Mart was made by issuing equity shares of Rs 10 each at a premium of 25%.

    (ii) Purchased a running business from Aman Ltd, for a sum of Rs 15,00,000. The payment of Rs 12,00,000 was made by issue of fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following:
    Plant Rs 3,50,000; Stock Rs 4,50,000; Land and Building Rs 6,00,000; Sundry Creditors Rs 1,00,000.

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  • Question 15

    Seema, Tanuja and Tripti were partners in a firm trading in garments. They were sharing profits in the ratio of 5 : 3 : 2. Their capitals on 1st April, 2012 were Rs 3,00,000, Rs 4,00,000 and Rs 8,00,000 respectively. After the flood in Uttarakhand, all partners decided to help the flood victims personally.

    For this Seema withdrew Rs 20,000 from the firm of 15th September, 2012. Tanuja instead of withdrawing cash from the firm took garments amounting to Rs 24,000 from the firm and distributed those to the flood victims. On the other hand, Tripti withdrew Rs 2,00,000 from her capital on 1st January, 2013 and provided a mobile medical van in the flood affected area.

    The partnership deed provides for charging interest on drawings @ 6% p.a. After the final accounts were prepared it was discovered that interest on drawings had not been charged. Give the necessary adjusting journal entry and show the working notes clearly. Also state any two values which the partners wanted to communicate to the society.

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  • Question 16

    Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013 their Balance Sheet was as follows:

    Balance Sheet of Hanif and Jubed as on 31st March, 2013

    Liabilities

    Amount

    Rs

    Assets

    Amount

     Rs

    Creditors

    1,50,000

    Bank

    2,00,000

    Workman Compensation Fund

    3,00,000

    Debtors

    3,40,000

    General Reserve 75,000 Stock 1,50,000

    Hanif’s Current Account

    25,000

    Furniture

    4,60,000

    Capital’s :

     

    Machinery

    8,20,000

    Hanif

    10,00,000

     

    Jubed’s Current Account

    80,000

    Jubed

    5,00,000

    15,00,000

     

     

     

    20,50,000

     

    20,50,000

     

     

     

     

    On the above date the firm was dissolved.
    (i) Debtors were realised at a discount of 5%, 50% of the stock was taken over by Hanif at 10% less than the book value. Remaining stock was sold for Rs 65,000.
    (ii) Furniture was taken over by Jubed for Rs 1,35,000. Machinery was sold as scrap for Rs 74,000.
    (iii) Creditors were paid in full.
    (iv) Expenses on realisation Rs 8,000 were paid by Hanif.
    Prepare Realisation Account.

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  • Question 17

    X Ltd. invited applications for issuing 75,000 equity shares of Rs 10 each at a premium of Rs 5 per share. The amount was payable as follows:
    On applications and allotment − Rs 9 per share (including premium)
    On first and final call − the balance amount.

    Applications for 3,00,000 shares were received. Applications for 2,00,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was duly received except on 1,500 shares applied by Ravi. His shares were forfeited. The forfeited shares were re-issued at a discount of Rs 4 per share.

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

    OR


    Y Ltd. invited applications for issuing 80,000 equity shares of Rs 10 each at a discount of 10%. The amount was payable as follows:
    On applications and allotment − Rs 6 per share
    On first and final call − the balance amount.

    Application for 2,00,000 shares were received. Applications for 40,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. All money was received except on 1,600 shares applied by Rohan. His shares were forfeited. The forfeited shares were re-issued at the maximum discount permissible under the law.

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

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  • Question 18

    Shikhar and Rohit were partners in a firm sharing profits in the ratio of 7 : 3. On 1st April, 2013 they admitted Kavi as a new partner for 1/4 share in profits of the firm. Kavi brought Rs 4,30,000 as his capital and Rs 25,000 for his share of goodwill premium. The Balance Sheet of Shikhar and Rohit as on 1st April, 2013 was as follows :

    Balance Sheet of Shikhar and Rohit as on 1st April, 2013

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Capitals:

     

    Land and Building

    3,50,000

    Shikhar

    8,00,000

     

    Machinery

    4,50,000

    Rohit

    3,50,000

    11,50,000

    Debtors

    2,20,000

     

    General Reserve

    1,00,000

    Less: provision

    20,000

    2,00,000

    Workmen’s Compensation Fund

    1,00,000

    Stock

    3,50,000

    Creditors

    1,50,000

    Cash

    1,50,000

     

    15,00,000

     

    15,00,000

     

     

     

     


    It was agreed that
    (i) the value of Land and Building will be appreciated by 20%.
    (ii) the value of Machinery will be depreciated by 10%.
    (iii) the liabilities of Workmen's Compensation Fund was determined at Rs 50,000.
    (iv) capitals of Shikhar and Rohit will be adjusted on the basis of Kavi's capital and actual cash to be brought in or to be paid off as the case may be.

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

    OR


    L, M and N were partners in a firm sharing profits in the ratio of 2 : 1 : 1. On 1st April, 2013 their Balance Sheet was follows :

    Balance Sheet of L, M and N as on 1st April, 2013

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Capitals:

     

    Land

    8,00,000

    L

    6,00,000

     

    Building

    6,00,000

    M

    4,80,000

     

    Furniture

    2,40,000

    N

    4,80,000

    15,60,000

    Debtors

    4,00,000

     

    General Reserve

    4,40,000

    Less: provision

    20,000

    3,80,000

    Workmen’s Compensation Fund

    3,60,000

    Stock

    4,40,000

    Creditors

    2,40,000

    Cash

    1,40,000

     

    26,00,000

     

    26,00,000

     

     

     

     


    On the above date N retired.

    The following were agreed :
    (i) Goodwill of the firm was valued at Rs 6,00,000.
    (ii) Land was to be appreciated by 40% and Building was to be depreciated by Rs 1,00,000.
    (iii) Furniture was to be depreciated by Rs 30,000.
    (iv) The liabilities for Workmen's Compensation Fund was determined at Rs 1,60,000.
    (v) Amount payable to N was transferred to his loan account.
    (vi) Capitals of L and M were to be adjusted in their new profit sharing ratio and for this purpose current accounts of the partners will be opened.
    Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

     

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  • Question 19

    What is meant by 'Cash Flow Statement' ?

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  • Question 20

    Why is separate disclosure of cash flow from investing activities important while preparing Cash Flow Statement?

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  • Question 21

    State any one objective of financial statements analysis.

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  • Question 22

    Under which sub-headings will the following items be placed in the Balanced Sheet of a company as per revised Schedule VI Part I of the Companies Act, 1956:
    (i) Capital Reserves
    (ii) Bonds
    (iii) Loans repayable on demand
    (iv) Vehicles
    (v) Goodwill
    (vi) Loose tools

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  • Question 23

    From the following Statement of Profit and Loss of Fenox Ltd, for the year ended 31st March, 2013, prepare a Comparative Statement of Profit and Loss :

    Particulars Note
    No.
    2012-13
    Rs
    2011-12
    Rs
    Revenue from operations   8,00,000 6,00,000
    Other Incomes   1,00,000 50,000
    Expenses   5,00,000 4,00,000

    Rate of income tax was 40%.

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  • Question 24

    (a) The quick ratio of a company is 1.5 : 1. State with reason which of the following transactions would (i) increase: (ii) decrease or (iii) not change the ratio:
    (1) Paid rent Rs 3,000 in advance.
    (2) Trade receivables included a debtor Shri Ashok who paid his entire amount due Rs 9,700.

    (b) From the following information compute 'Proprietary Ratio':

            Rs
    Long Term Borrowings 2,00,000
    Long Term Provisions 1,00,000
    Current Liabilities 50,000
    Non-Current Assets 3,60,000
    Current Assets 90,000
    VIEW SOLUTION
  • Question 25

    Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Simco Ltd. as at 31-3-2013 and 31-3-2012 :

    Particulars

    Note

    No.

    31.3.2013

    Rs

    31.3.2012

    Rs

    I. Equity and Liabilities :

    (1) Shareholder's Funds :

     

     

     

    (a) Share Capital

     

    2,00,000

    1,50,000

    (b) Reserves & Surplus

     

    90,000

    75,000

    (2) Non-Current Liabilities :

     

     

     

     Long Term-Borrowings

     

    87,500

    87,500

    (3) Current Liabilities :

     

     

     

     Trade Payables

     

    10,000

    76,000

    Total

     

    3,87,500

    3,88,500

     

     

     

     

    II. Assets

    (1) Non-Current Assets :

     

     

     

    (a) Fixed Assets :

     

     

     

    (i) Tangible Assets

     

    1,87,500

    1,40,000

    (b) Non-Current Investments

     

    1,05,000

    1,02,500

    (2) Current Assets

     

     

     

    (a) Current-Investments (Marketable)

     

    12,500

    33,500

    (b) Inventories

     

    4,000

    5,500

    (c) Trade Receivables

     

    9,500

    23,000

    (d) Cash and Cash-Equivalents

     

    68,500

    84,000

    Total

     

    3,87,500

    3,88,500

     

     

     

     


    Notes to Accounts :
    Note − 1

    Particulars 2013
    Rs
    2012
    Rs
    Reserves and Surplus
    Surplus (Balance in Statement of Profit and Loss)
    90,000 75,000
    VIEW SOLUTION
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