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Board Paper of Class 12-Commerce 2015 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 17 questions.
ii. All the questions are compulsory.
iii. Question Nos. 1 to 6 are very short-answer questions carrying 1 mark each.
iv. Question Nos. 7 to 10 carry 3 marks each.
v. Question Nos. 11 and 12 carry 4 marks each.
vi. Question Nos. 13 to 15 carry 6 marks each.
vii. Question Nos. 16 and 17 carry 8 marks each.

Section B
i. This section consists of 6 questions.
ii. All questions are compulsory
iii. Question Nos. 18 and 19 are very short-answer questions carrying 1 mark each.
iv. Question Nos. 20 to 22 carry 4 marks.
v. Question No. 23 carries 6 marks.



  • Question 1
    In the absence of Partnership Deed, interest on loan of a partner is allowed :
    (i) at 8% per annum.
    (ii) at 6% per annum.
    (iii) no interest is allowed.
    (iv) at 12% per annum. VIEW SOLUTION


  • Question 2

    Geeta, Sunita and Anita were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 1.1.2015 they admitted Yogita as a new partner for 1/10th share in the profits. On Yogita's admission, the Profit and Loss Account of the firm was showing a debit balance of Rs 20,000 which was credited by the accountant of the firm to the capital accounts of Geeta, Sunita and Anita in their profit sharing ratio. Did the accountant give correct treatment ? Given reason in support of your answer.

    VIEW SOLUTION


  • Question 3
    On the death of a partner, his share in the profits of the firm till the date of his death is transferred to the :
    (i) Debit of Profit and Loss Account.
    (ii) Credit of Profit and Loss Account.
    (iii) Debit of Profit and Loss Suspense Account
    (iv) Credit of Profit and Loss Suspense Account VIEW SOLUTION


  • Question 4

    Anant, Gulab and Khushbu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. From 1.4.2014, they decided to share the profits equally. For this purpose the goodwill of the firm was valued at Rs 2,40,000.
    Pass necessary journal entry for the treatment of goodwill on change in the profit sharing ratio of Anant, Gulab and Khushbu.

    VIEW SOLUTION


  • Question 5
    Give the meaning of forfeiture of shares. VIEW SOLUTION


  • Question 6

    Nirman Ltd. issued 50,000 equity shares of Rs 10 each. The amount was payable as follows :

    On application − Rs 3 per share
    On allotment − Rs 2 per share
    On first and final call − The balance

    Applications for 45,000 shares were received and shares were allotted to all the applicants. Pooja, to whom 500 shares were allotted, paid her entire share money at the time of allotment, whereas Kundan did not pay the first and final call on his 300 shares. The amount received at the time of making first and final call was :

    (i) Rs 2,25,000
    (ii) Rs 2,20,000
    (iii) Rs 2,21,000
    (iv) Rs 2,19,500
    VIEW SOLUTION


  • Question 7
    Guru Ltd. invited applications for issuing 5,00,000 equity shares of Rs 10 each at a premium of Rs 5 per share. Because of favourable market conditions the issue was over-subscribed and applications for 15,00,000 shares were received.
    Suggest the alternatives available to the Board of Directors for the allotment of shares. VIEW SOLUTION


  • Question 8

    On 1.4.2013, Brij and Nandan entered into partnership to construct toilets in government girls schools in the remote areas of Uttarakhand. They contributed capitals of Rs 10,00,000 and Rs 15,00,000 respectively. Their profit sharing ratio was 2 : 3 and interest allowed on capital as provided in the Partnership Deed was 12% per annum. During the year ended 31.3.2014, the firm earned a profit of Rs 2,00,000.
    Prepare Profit and Loss Appropriation Account of Brij and Nandan for the year ended 31.3.2014

    VIEW SOLUTION


  • Question 9

    'Suvidha Ltd.' is registered with an authorised capital of Rs 10,00,00,000 divided into 10,00,000 equity shares of Rs 100 each. The company issued 1,00,000 shares for public subscription. A shareholder holding 100 shares, failed to pay the final call of Rs 20 per share. His shares were forfeited. The forfeited shares were re-issued at Rs 90 per share as fully paid up.
    Present the 'Share Capital' in the Balance Sheet of the company as per Schedule VI Part I of the Companies Act, 1956, Also prepare 'Notes to Accounts'.

    VIEW SOLUTION


  • Question 10

    'Good Blankets Ltd.' are the manufacturers of woollen blankets. Blankets of the company are exported to many countries. The company decided to distribute blankets free of cost to five villages of Kashmir Valley destroyed by the recent floods. It also decided to employ 100 young persons from these villages in their newly established factory at Solan in Himachal Pradesh. To meet the requirements of funds for starting its new factory, the company issued 50,000 equity shares of Rs 10 each and 2,000 8% debentures of  Rs 100 each to the vendors of machinery purchased for Rs 7,00,000.
    Pass necessary journal entries for the above transactions in the books of the company. Also identify any one value which the company wants to communicate to the society.

    VIEW SOLUTION


  • Question 11

    Arun, Varun and Karan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. On 31.3.2014, their Balance Sheet was as follows :
     

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Creditors

    17,000

    Cash

    8,000

    Bills Payable

    12,000

    Debtors

    13,000

    Karan’s Loan

    28,000

    Bills Payable

    9,000

    Capitals :

     

    Furniture

    27,000

    Arun

    70,000

     

    Machinery

    1,25,000

    Varun

    68,000

    1,38,000

    Karan’s Capital

    13,000

     

    1,95,000

     

    1,95,000

     

     

     

     

    On 30.9.2014, Karan died. The partnership Deed provided for the following to the executors of the deceased partner :

    (a) His share in the goodwill of the firm calculated on the basis of three year's purchase of the average profits of the last four years. The profits of the last four years were Rs 1,90,000; Rs 1,70,000; Rs 1,80,000 and Rs 1,60,000 respectively.

    (b) His share in the profits of the firm till the date of his death calculated on the basis of the average profits of the last four years.

    (c) Interest @8% p.a. on the credit balance, if any, in his Capital Account.

    (d) Interest on his loan @12% p.a.

    Prepare Karan's Capital Account to be presented to his executors, assuming that his loan and interest on loan were transferred to his Capital Account.

    VIEW SOLUTION


  • Question 12

    Prem, Param and Priya were partners in a firm. Their fixed capitals were Prem Rs 2,00,000; Param Rs 3,00,000 and Priya Rs 5,00,000. They were sharing profits in the ratio of their capitals. The firm was engaged in the sale of ready-to-eat food packets at three different locations in the city, each being managed by Prem, Param and Priya. The outlet managed by Prem was doing more business than the outlets managed by Param and Priya. Prem requested Param and Priya for a higher share in the profits of the firm which Param and Priya accepted. It was decided that the new profit sharing ratio will be 2 : 1 : 2 and its effect will be introduced retrospectively for the last four years. The profits of the last four years were Rs 2,00,000; Rs 3,50,000; Rs 4,75,000 and Rs 5,25,000 respectively.
    Showing your calculations clearly, pass a necessary adjustment entry to give effect to the new agreement between Prem, Param and Priya.

    VIEW SOLUTION


  • Question 13

    On 1.1.2008, Uday and Kaushal entered into partnership with fixed capitals of Rs 7,00,000 and Rs 3,00,000 respectively. They were doing good business and were interested in its expansion but could not do the same because of lack of capital. Therefore, to have more capital, they admitted Govind as a new partner on 1.1.2010. Govind brought Rs 10,00,000 as capital and the new profit sharing ratio decided was 3 : 2 : 5. On 1.1.2012, another new partner Hari was admitted with a capital of Rs 8,00,000 for 1/10th share in the profits, which he acquired equally from Uday, Kaushal and Govind. On 1.4.2014 Govind died and his share was taken over by Uday and Hari equally.
    Calculate :
    (i) The sacrificing ratio of Uday and Kaushal on Govind's admission.
    (ii) New profit sharing ratio of Uday. Kaushal, Govind and Hari on Hari's admission.
    (iii) New profit sharing ratio of Uday, Kaushal and Hari on Govind's death.

    VIEW SOLUTION


  • Question 14

    'Ananya Ltd' had an authorized capital of Rs 10,00,00,000 divided into 10,00,000 equity shares of Rs 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for the year ended 31.3.2007 was Rs 30. The management decided to export its products to African countries. To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directors :
    (i) Issue 47,500 equity shares at a premium of Rs 100 per share.
    (ii) Obtain a long-term loan from bank which was available at 12% per annum.
    (iii) Issue 9% debentures at a discount of 5%.

    After evaluating these alternatives the company decided to issue 1,00,000, 9% debentures on 1.4.2008. The face value of each debenture was Rs 100. These debentures were redeemable in four instalments starting from the end of third year, which was as follows :

    Year Amount
    Rs
    III 10,00,000
    IV 20,00,000
    V 30,00,000
    VI 40,00,000

    Prepare 9% debenture account from 1.4.2008 till all the debentures were redeemed.

    VIEW SOLUTION


  • Question 15

    Mala, Neela and Kala were partners sharing profits in the ratio of 3 : 2 : 1. On 1.3.2015 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partners' Capital Accounts and Cash Account, but forgot to post few amounts in these accounts.

    You are required to complete these below given accounts by posting correct amounts.
     

    Realisation Account
    Dr.
    Cr.
    Particulars
    Amount
    Rs
    Particulars
    Amount
    Rs
    To Sundry Assets :
     
    By Provision for bad debts
    1,000
    Machinery
    10,000
     
    By Sundry Creditors
    15,000
    Stock
    21,000
     
    By Sheela’s Loan
    13,000
    Debtors
    20,000
     
    By Repairs and Renewals Reserve
    1,200
    Prepaid Insurance
    400
     
    By Cash – Assets sold :
     
    Investments
    3,000
    54,400
    Machinery
    8,000
     
    To Mala’s Capital A/c
    13,000
    Stock
    14,000
     
                 – Sheela’s Loan
     
    Debtors
    16,000
    38,000
    To Cash – Creditors paid
    15,000
    By Mala’s Capital Investments
    2,000
    To Cash – Dishonoured bill paid
    5,000
     
     
    To Cash Expenses
    800
    ……………..
    ………….
     
    88,200
     
    88,200
     
     
     
     

     

    Capital Accounts
    Dr.
    Cr.
    Particulars
    Mala
    Rs
    Neela
    Rs
    Kala
    Rs
    Particulars
    Mala
    Rs
    Neela
    Rs
    Kala
    Rs
    ………….
    ………….
    ………….
    ………….
    ………….
    ………….
    ………….
    ………….
    ………….
    ………….
     
     
    ………….
    ………….
     
     
    To Cash
    12,000
    9,000
     
    By Cash
     
     
    1,000
     
    23,000
    15,000
    3,000
     
    23,000
    15,000
    3,000

     

    Cash Account
    Dr.
    Cr.
    Particulars
    Amount
    Rs
    Particulars
    Amount
    Rs
    To Balance b/d
    2,800
    By Realisation A/c
    15,000
    To Realisation A/c
    38,000
                     – Creditors paid
     
                      – Sale of assets
     
     
     
    To Kala’s Capital A/c
    1,000
    By Dishonoured bill
    5,000
     
     
    ……………
    ………….
     
     
    By Mala’s Capital A/c
    12,000
     
     
    By Neela’ s Capital A/c
    9,000
     
    41,800
     
    41,800
     
     
     
     
    VIEW SOLUTION


  • Question 16

    'BMY Ltd.' invited applications for issuing 1,00,000 equity shares of Rs 10 each at a premium of Rs 10 per share. The amount was payable as follows :

    On application − Rs 10 per share (including Rs 5 premium)
    On allotment − The balance

    The issue was fully subscribed. A shareholder holding 300 shares paid the full share money with application. Another shareholder holding 200 shares failed to pay the allotment money. His shares were forfeited. Later on these shares were re-issued for Rs 4,000 as fully paid up.
    Pass necessary journal entries for the above transaction in the books of BMY Ltd.
     

    OR


    'Blur Star Ltd.' was registered with an authorized capital of Rs 2,00,000 divided into 20,000 shares of Rs 10 each. 6,000 of these shares were issued to the vendor for building purchased. 8,000 shares were issued to the public and Rs 5 per share were called up as follows :

    On application − Rs 2 per share
    On allotment − Rs 1 per share
    On first call − Balance of the called up amount

    The amounts received on these shares were as follows :

    On 6,000 shares − Full amount called
    On 1,250 shares − Rs 3 per share
    On 750 shares − Rs 2 per share

    The directors forfeited 750 shares on which Rs 2 per share were received.
    Pass necessary journal entries for the above transactions in the books of Blue Star Ltd.

    VIEW SOLUTION


  • Question 17

    Om, Ram and Shanti were partners in a firm sharing profits in the ration of 3 : 2 : 1. On 1st April, 2014 their Balance Sheet was as follows :
     

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Capital Accounts :

     

    Land and Building

    3,64,000

    Om

    3,58,000

     

    Plant and Machinery

    2,95,000

    Ram

    3,00,000

     

    Furniture

    2,33,000

    Shanti

    2,62,000

    9,20,000

    Bills Receivable

    38,000

    General Reserve

    48,000

    Sundry Debtors

    90,000

    Creditors

    1,60,000

    Stock

    1,11,000

    Bills Payable

    90,000

    Bank

    87,000

     

    12,18,000

     

    12,18,000

     

     

     

     

    On the above date Hanuman was admitted on the following terms:

    (i) He will bring Rs 1,00,000 for his capital and will get 1/10th share in the profits.
    (ii) He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was valued at Rs 3,00,000.
    (iii) A liability of Rs 18,000 will be created against bills receivables discounted.
    (iv) The value of stock and furniture will be reduced by 20%.
    (v) The value of land and building will be increased by 10%.
    (vi) Capital accounts of the partners will be adjusted on the basis of Hanuman's capital in their profit sharing ratio by opening current accounts.

    Prepare Revaluation Account and Partner's Capital Accounts.

    OR


    Xavier, Yusuf and Zaman were partners in a firm sharing profits in the ratio of 4 : 3 : 2. On 1.4.2014 their Balance sheet was as follows :

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Sundry Creditors

    41,400

    Cash at Bank

    33,000

    Capital Accounts :

     

    Sundry Debtors

    30,450

     

    Xavier

    1,20,000

     

     Less: Prov. for Bad Debts

    1,050

    29,400

    Yusuf

    90,000

     

    Stock

    48,000

    Zaman

    60,000

    2,70,000

    Plant and Machinery

    51,000

     

     

    Land and Building

    1,50,000

     

    3,11,400

     

    3,11,400

     

     

     

     

    Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1.4.2014, the terms of which were as follows:

    (i) That land and building be appreciated by 10%
    (ii) The provision for bad debts is no longer necessary.
    (iii) That stock be appreciated by 20%
    (iv) That goodwill of the firm be fixed at Rs 54,000. Yusuf share of the same be adjusted into Xavier's and Zamna's Capital Accounts, who are going to share future profits in the ratio of 2 : 1.
    (v) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capitals of Xavier and Zaman will be in their profit sharing ratio.

    Prepare Revaluation Account and Partner's Capital Accounts.

    VIEW SOLUTION


  • Question 18
    Which of the following transactions will result into flow of cash ?
    (i) Cash withdrawn from bank Rs 20,000.
    (ii) issued Rs 20,000, 9% debentures for the vendors of machinery.
    (iii) Received Rs 19,000 from debtors.
    (iv) Deposited cheques of Rs 10,000 into bank. VIEW SOLUTION


  • Question 19

    The accountant of Manav Ltd. while preparing Cash Flow Statement added depreciation provided on fixed assets to net profit for calculating cash flow from operating activities. Was he correct in doing so ? Give reason.

    VIEW SOLUTION


  • Question 20

    Under which major headings and sub-headings will the following items be shown in the Balance Sheet of a company as per schedule VI Part I of the Companies Act, 1956 :
    (i) Net loss as shown by Statement of Profit and Loss.
    (ii) Capital redemption reserve.
    (iii) Bonds.
    (iv) Loans repayable on demand.
    (v) Unpaid dividend.
    (vi) Buildings.
    (vii) Trademarks.
    (viii) Raw materials.

    VIEW SOLUTION


  • Question 21

    The Current Ratio of a company is 2.1 : 1.2. State with reasons which of the following transactions will increase, decrease or not change the ratio :
    (i) Redeemed 9% debentures of Rs 1,00,000 at a premium of 10%.
    (ii) Received from debtors Rs 17,000.
    (iii) Issued Rs 2,00,000 equity shares to the vendors of machinery.
    (iv) Accepted bills of exchange drawn by the creditors Rs 7,000.

    VIEW SOLUTION


  • Question 22

    The motto of 'Pharma Ltd', a company engaged in the manufacturing of low-cost generic medicines, is 'Healthy India'. Its management and employees are hardworking, honest and motivated. The net profit of the company doubled during the year ended 31-3-2014. Encouraged by its performance, the company decided to pay bonus to all employees at double the rate than last year.

    Following is the Comparative Statement of Profit and Loss of the company for the years ended 31-3-2013 and 31-3-2014.
     

    Pharma Ltd.
    Comparative Statement of Profit and Loss
    Particulars Note
    No.
    2012 – 13
    Rs
    2013 – 14
    Rs
    Absolute
    Charge
    Rs
    %
    Change
    Revenue from operations   20,00,000 30,00,000 10,00,000 50
    Less : Employees benefit expenses   12,00,000 14,00,000 2,00,000 16-67
    Profit before tax   8,00,000 16,00,000 8,00,000 100
    Tax at 25% rate   2,00,000 4,00,000 2,00,000 100
    Profit after tax   6,00,000 12,00,000 6,00,000 100


    (i) Calculate Net Profit Ratio for the years ending 31st March, 2013 and 2014.
    (ii) Identify any two values which 'Pharma Ltd'. is trying to propagate.

    VIEW SOLUTION


  • Question 23

    Following is the Balance Sheets of Solar Power Ltd. as at 31.3.2014 :

    Solar Power Ltd.
    Balance Sheet
    Particulars Note No. 31.3.2014 Rs 31.3.2013 Rs
    I. Equity and Liabilities :
    1. Shareholder's Funds :
         
    (a) Share Capital
      24,00,000 22,00,000
    (b) Reserves and Surplus
    1 6,00,000 4,00,000
    2. Non-Current Liabilities :
         
     Long Term-Borrowings
      4,80,000 3,40,000
    3. Current Liabilities :
         
    (a) Trade Payables
      3,58,000 4,08,000
    (b) Short-Term Provisions
      1,00,000 1,54,000
    Total   39,38,000 35,02,000
           
    II. Assets :
    1. Non-Current Assets :
         
    (a) Fixed Assets :
         
    (i) Tangible
    2 21,40,000 17,00,000
    (ii) Intangible
    3 80,000 2,24,000
    2. Current Assets :
         
    (a) Current Investments
      4,80,000 3,00,000
    (b) Inventories
      2,58,000 2,42,000
    (c) Trade Receivables
      3,40,000 2,86,000
    (d) Cash and Cash equivalents
      6,40,000 7,50,000
    Total   39,38,000 35,02,000
           

    Notes to Accounts

    S. No. Particulars As on
    31.3.2014
    Rs
    As on
    31.3.2013
    Rs
    1. Reserves and Surplus    
      Surplus (balance in Statement of Profit and Loss) 6,00,000 4,00,000
    2. Tangible Assets    
      Machinery 25,40,000 20,00,000
        Less : Accumulated Depreciation (4,00,000) (3,00,000)
    3. Intangible Assets    
      Goodwill 80,000 2,24,000

    Additional Information :

    During the year a piece of machinery, costing Rs 48,000 on which accumulated depreciation was Rs 32,000, was sold for Rs 12,000.

    Prepare Cash Flow Statement.

    VIEW SOLUTION
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