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Board Paper of Class 12-Commerce 2014 Accountancy Delhi(SET 3) - 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 2
    Why heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm? VIEW SOLUTION


  • Question 3
    Distinguish between 'Dissolution of Partnership' and Dissolution of Partnership Firm' on the basis of closure of books. VIEW SOLUTION


  • Question 4

    X, Y and Z are partners sharing profits in the ratio of 12,25 and 110. Find the new ratio of remaining partners if Z retires.

    VIEW SOLUTION


  • Question 5
    Give any one purpose for which the amount received as 'Securities Premium' may be utilised. VIEW SOLUTION


  • Question 6
    What is meant by 'Reconstitution of a Partnership Firm' ? VIEW SOLUTION


  • Question 7
    What is the maximum amount of discount at which forfeited shares can be re-issued ? VIEW SOLUTION


  • Question 8

    Saloni and Shrishti were partners in a firm sharing profits in the ratio of 7 : 3. Their capitals were Rs 2,00,000 and Rs 1,50,000 respectively. They admitted Aditi on 1st April, 2013 as a new partner for 16thshare in future profits. Aditi brought Rs 1,00,000 as her capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transaction on Aditi's admission.

    VIEW SOLUTION


  • Question 9

    BG. Ltd. issued 2,000, 12% debentures of Rs 100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the half-yearly ending 31st March, 2013 and transfer of interest on debentures of the year to the Statement of Profit & Loss.

    VIEW SOLUTION


  • Question 10

    Pass necessary journal entries in the following cases :
    (i) Kay Ltd. converted 3,000, 12% debentures of Rs 100 each issued at a premium of 10% into equity shares of Rs 100 each issued at a premium of 25%.
    (ii) Jay Ltd. redeemed 1,500, 12% debentures of Rs 1,000 each issued at a discount of 10% by converting them into equity shares of Rs 50 each issued at par.

    VIEW SOLUTION


  • Question 11

    Virad, Vishad and Roma were partners in a firm sharing profits in the ratio of 5 : 3 : 2 respectively. On March 31, 2013, their Balance Sheet was as under:
     

    Balance Sheet of Virad, Vishad and Roma as on March 31, 2013

    Liabilities

    Amount

    Rs

    Assets

    Amount

     Rs

    Capitals :

     

    Buildings

    2,00,000

    Virad

    3,00,000

     

    Machinery

    3,00,000

    Vishad

    2,50,000

     

    Patents

    1,10,000

    Roma

    1,50,000

    7,00,000

    Stock

    1,00,000

    Reserve Fund

    60,000

    Debtors

    80,000

    Creditors

    1,10,000

    Cash

    80,000

     

    8,70,000

     

    8,70,000

     

     

     

     


    Virad died on October 1, 2013. It was agreed between his executors and the remaining partner's that:

    (a) Goodwill of the firm be valued at 212years purchase of average profits for the last three years. The average profits were Rs 1,50,000.
    (b) Interest on capital be provided at 10% p.a.
    (c) Profit for the year 2013−14 be taken as having accrued at the same rate as that of the previous year which was Rs 1,50,000.
    Prepare Virad's Capital Account to be presented to his Executors as on October 1, 2013.

    VIEW SOLUTION


  • Question 12

    Pass necessary journal entries for the following transactions in the books of Rajan Ltd :
    (a) Rajan Ltd. purchased machinery of Rs 7,20,000 from Kundan Ltd. The payment was made to Kundan Ltd. by issue of equity shares of Rs 100 each at 10% discount.

    (b) Rajan Ltd purchased a running business from Vikas Ltd. for a sum of Rs 2,50,000 payable as Rs 2,20,000 in fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following :
    Plant & Machinery Rs 90,000; Building Rs 90,000; Sundry Debtors Rs 30,000; Stock Rs 50,000; Cash Rs 20,000; Sundry Creditors Rs 20,000.

    VIEW SOLUTION


  • Question 13

    Satnam and Qureshi after doing their MBA decided to start a partnership firm to manufacture ISI marked electronic goods for economically weaker section of the society. Satnam also expressed his willingness to admit Juliee as partner without capital who is specially abled but a very creative and intelligent friend of him. Qureshi agreed to this. They formed a partnership on 1st April 2012 on the following terms :
    (i) Satnam will contribute Rs 4,00,000 and Qureshi will contribute Rs 2,00,000 as capitals.
    (ii) Satnam, Qureshi and Juliee will share profits in the ratio of 2 : 2 : 1.
    (iii) Interest on capital will be allowed @ 6% p.a.
    Due to shortage of capital Satnam contributed Rs 50,000 on 30th September, 2012 and Qureshi contributed Rs 20,000 on 1st January, 2013 as additional capitals. The profit of the firm for the year ended 31st March, 2013 was Rs 3,37,800.
    (a) Identify any two values which the firm wants to communicate to the society.
    (b) Prepare Profit & Loss Appropriation Account for the year ending 31st March, 2013.

    VIEW SOLUTION


  • Question 14

    On 1st April, 2012, Mayank Ltd. was formed with an authorised capital of Rs 25,00,000 divided into 50,000 equity shares of Rs 50 each. The company issued prospectus inviting applications for 45,000 shares. The issue price was payable as under :
    On Application: Rs 15
    On Allotment : Rs 20
    On Call : Balance amount
    The issue was fully subscribed and the company allotted shares to all the applicants. The company did not make the call during the year.
    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.

    VIEW SOLUTION


  • Question 15

    Amar, Karan and Varun were partners in a firm manufacturing garments. They were sharing profits in the ratio of 5 : 3 : 2. On 1st April, 2012 their capitals were Rs 3,00,000, Rs 4,00,000 and Rs 5,00,000 respectively. After the flood in Uttaranchal, all partners decide to personally help the flood victims. For this Amar withdrew Rs 30,000 from the firm on 1st September, 2012, Karan instead of withdrawing cash from the firm took garments amounting to Rs 36,000 from the firm and distributed to the flood victims. On the other hand, Varun withdrew Rs 1,50,000 from his capital on 1st January, 2013 and started a school to provide elementary education in the flood affected area.
    The partnership deep 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 that the partners wanted to communicate to the society.

    VIEW SOLUTION


  • Question 16

    Kumar and Gaurav were partners in a firm sharing profits in the ratio of their capitals. On 31-3-2013 their Balance Sheet was as follows:

    Balance Sheet of Kumar and Gaurav as on 31st Marck, 2013

    Liabilities

    Amount

    Rs

    Assets

    Amount

     Rs

    Creditors

    80,000

    Bank

    79,000

    Workman Compensation Fund

    25,000

    Debtors

    1,70,000

    Jayant’s Current Account

    24,000

    Stock

    34,000

    Capital’s :

     

    Machinery

    79,000

    Kumar

    1,50,000

     

    Gaurav’s Current Account

    17,000

    Gaurav

    1,00,000

    2,50,000

     

     

     

    3,79,000

     

    3,79,000

     

     

     

     

    On the above date the firm was dissolved:
    (i) Kumar took over 50% of stock at 10% less than its book value. The remaining stock was sold for Rs 10,000.
    (ii) Debtors were realized at a discount of 5%.
    (iii) An unrecorded asset was sold for Rs 9,000 and machinery was sold for Rs 18,000.
    (iv) Creditors were paid in full.
    (v) There was an outstanding bill for repairs for amounting to Rs 14,000 which was settled at Rs 12,000.
    Prepare Realisation Account.

    VIEW SOLUTION


  • Question 17

    Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2012 they admitted Nusrat as a partner in the firm. The Balance Sheet of Mohan and Mahesh on that date was as under :

    Balance Sheet of Mohan and Mahesh as on 1st April, 2012

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Creditors

    2,10,000

    Cash in hand

    1,40,000

    Workmen's Compensation Fund

    2,50,000

    Debtors

    1,60,000

    General Reserve

    1,60,000

    Stock

    1,20,000

    Capitals:

     

    Machinery

    1,00,000

    Mohan

    1,00,000

     

    Building

    2,80,000

    Mahesh

    80,000

    1,80,000

     

     

     

    8,00,000

     

    8,00,000

     

     

     

     


    It was agreed that:

    (i) The value of Building and Stock be appreciated to Rs 3,80,000 and Rs 1,60,000 respectively.
    (ii)The liabilities of workmen's compensation fund was determined at Rs 2,30,000.
    (iii) Nusrat brought in her share of goodwill Rs 1,00,000 in cash.
    (iv) Nusrat was to bring further cash as would make her capital equal to 20% of the combined capital of Mohan and Mahesh after above revaluation and adjustments are carried out.
    (v) The future profit sharing ratio will be Mohan 2th5, Mahesh 2th5, Nusrat 1th5.


    Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of the new firm. Also show clearly the calculation of Capital brough by Nusrat.
     

    OR


    Kushal Kumar and Kavita were partners in a firm sharing profits in the ratio of 3 : 1 : 1.
    On 1st April, 2012 their Balance Sheet was as follows :
     

    Balance Sheet of Kushal, Kumar and Kavita as on 1st April, 2012

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Creditors

    1,20,000

    Cash

    70,000

    Bills Payable

    1,80,000

    Debtors

    2,00,000

     

    General Reserve

    1,20,000

    Less: Provision

    10,000

    1,90,000

    Capitals:

     

    Stock

    2,20,000

    Kushal

    3,00,000

     

    Furniture

    1,20,000

    Kumar

    2,80,000

     

    Building

    3,00,000

    Kavita

    3,00,000

    8,80,000

    Land

    4,00,000

     

    13,00,000

     

    13,00,000

     

     

     

     


    On the above date Kavita retired and the following was agreed :

    (i) Goodwill of the firm was valued at Rs 40,000.
    (ii) Land was to be appreciated by 30% and building was to be depreciated by Rs 1,00,000.
    (iii) Value of furniture was to be reduced by Rs 20,000.
    (iv) Bad debts reserve is to be increased to Rs 15,000.
    (v) 10% of the amount payable to Kavita was paid in cash and the balance was transferred to her Loan Account.
    (vi) Capitals of Kushal and Kumar will be in proportion to their new profit sharing ratio. The surplus/deficit, if any in their Capital Accounts will be adjusted through Current Accounts.


    Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of Kushal and Kumar after Kavita's retirement.

    VIEW SOLUTION


  • Question 18

    XYZ Ltd. invited applications for 40,000 equity shares of Rs 100 each at a discount of 6%. The amount was payable as follows:
    On Application and Allotment − Rs 90 per share
    On First and Final call − the balance amount.
    Application for 60,000 shares were received. Applications for 10,000 shares were rejected and shares were allotted on pro-rata basis to remaining applicants. Excess application money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 50 share, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were re-issued at Rs 97 per share fully paid up.
    Pass necessary journal entries for the above transactions in the books of XYZ Ltd.
     

    OR


    AB Ltd. invited applications for issuing 75,000 equity shares of Rs 100 each at a premium of Rs 30 per share. The amount way payable as follows:
    On Application and Allotment − Rs 85 per share (including premium)
    On First and Final call − the balance Amount
    Applications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and share were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due to first and final call. The calls were made. A shareholder, who applied for 1,000 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at Rs 150 per share fully paid up.
    Pass necessary journal entries for the above transactions in the books of AB Ltd.

    VIEW SOLUTION


  • Question 19
    State the objective of preparing 'Cash Flow Statement'. VIEW SOLUTION


  • Question 20
    State any one limitation of 'Analysis of Financial Statements'. VIEW SOLUTION


  • Question 21
    What is meant by 'Cash Equivalents' while preparing Cash Flow Statement? VIEW SOLUTION


  • Question 22
    Under which major sub-headings the following items will be placed in the Balance Sheet of a company as per revised Schedule-VI, Part-I of the Companies Act, 1956:
    (i) Accrued Incomes
    (ii) Loose Tools
    (iii) Provision for employees benefits
    (iv) Unpaid dividend
    (v) Short-term loans
    (vi) Long-term loans. VIEW SOLUTION


  • Question 23

    From the following 'Statement of Profit & Loss' for the year ended 31st March, 2013, prepare a 'Comparative Statement of Profit & Loss' of Better Sales Ltd.

    Particulars Note No. 2012-2013
    Rs
    2011-2012
    Rs
    Revenue from operations
    Other Incomes
    Expenses
      7,00,000
      75,000
    4,50,000
    5,00,000
      1,00,000
    3,75,000

    Rate of income tax was 50%.

    VIEW SOLUTION


  • Question 24

    (a) From the following information, compute Debt-Equity Ratio:

      Rs
    Long term Borrowings 8,00,000
    Long term Provisions 4,00,000
    Current Liabilities 2,00,000
    Non-current-Assets 14,40,000
    Current-Assets 3,60,000

    (b) The Quick Ratio of Z Ltd. is 1 : 1. State with reason which of the following transactions would (i) increase; (ii) decrease or (iii) not change the ratio :
    (1) Included in the trade payables was a Bills payable of Rs 3,000 which was met on maturity.
    (2) Debentures of Rs 50,000 were converted into Equity shares.

    VIEW SOLUTION


  • Question 25

    Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Liva 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) Shareholders Funds

     

     

     

    (a) Share Capital

     

    2,10,000

    1,80,000

    (b) Reserves & Surplus

     

    1,32,000

    24,000

    (2) Non-current Liabilities

    1

     

     

    (a) Long term-borrowings

     

    1,50,000

    1,50,000

    (3) Current Liabilities

     

     

     

    (a) Trade Payables

     

    75,000

    27,000

    Total

     

    5,67,000

    3,81,000

     

     

     

     

    II. Assets

    (1) Non-current Assets

     

     

     

    (a) Fixed Assets

     

     

     

    (i) Tangible Assets

     

    2,94,000

    2,52,000

    (b) Non-current Investments

     

    48,000

    18,000

    (2) Current Assets

     

     

     

    (a) Current-Investments (marketable)

     

    54,000

    60,000

    (b) Inventories

     

    1,07,000

    24,000

    (c) Trade Receivables

     

    40,000

    17,500

    (d) Cash and Cash-equivalents

     

    24,000

    9,500

    Total

     

    5,67,000

    3,81,000

     

     

     

     


    Notes to Accounts :
    Note − 1

    Particulars 2013
    Rs
    2012
    Rs
    Reserves and Surplus
    Surplus (balance in statement of profit and loss)
    1,32,000 24,000
    VIEW SOLUTION
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