Select Board & Class

Login

Board Paper of Class 12-Commerce 2016 Accountancy Abroad(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-Option-I Analysis of Financial Statements and Option-II Computerized 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
    Distinguish between ‘Dissolution of partnership’ and ‘Dissolution of partnership firm’ on the basis of court’s intervention. VIEW SOLUTION


  • Question 2

    State the provisions of the Companies Act, 2013 for the creation of 'Debenture Redemption Reserve'.

    VIEW SOLUTION


  • Question 3
    On 15-1-2016 the first call of Rs 4 per share became due on 10,000 equity shares issued by New India Ltd. Aman a holder of 500 shares did not pay the first call money. Shanti a shareholder holding 600 shares paid the second and final call of Rs 3 per share along with the first call.
    Pass the necessary journal entry for the amount received by opening ‘Calls-in-arrears’ and ‘Calls-in-advance’ account in the books of the company. VIEW SOLUTION


  • Question 4
    A and B were partners in a firm sharing profits in the ratio of 4:5. During the year ended 31-3-2015 A withdrew Rs 19,000. Interest on A’s drawings was Rs 700.

    Pass necessary Journal entry for charging interest on A’s drawings assuming that the capitals of the partners were fixed. VIEW SOLUTION


  • Question 5
    Name the Act that provides for the maximum number of partners in a partnership firm.What is the maximum number of partners that a partnership firm can have?  VIEW SOLUTION


  • Question 6
    Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 5:3:2. They admitted Hari as a new partner for 15thshare in the profit which he acquired from Ram and Mohan in the ratio of 3:2. Calculate, the new profit sharing ratio of Ram, Mohan, Sohan and Hari. VIEW SOLUTION


  • Question 7
    Why should assets and liabilities be revalued on the reconstitution of a partnership firm? Explain briefly giving examples. VIEW SOLUTION


  • Question 8
    B’ Ltd. took over the assets of Rs 14,00,000 and liabilities of Rs 4,00,000 of C Ltd. for a purchase consideration of Rs 9,19,000. Rs 17,000 were paid by a bank draft in favour of C Ltd. and the balance was paid by issue of equity shares of Rs 10 each at a premium of 10% in favour of C Ltd.

    Pass necessary journal entries for the above transactions in the books of B Ltd. VIEW SOLUTION


  • Question 9
    To provide employment to the youth and to develop a backward area of Jharkhand which is near one of the coal mines, Thermal Power Energies Ltd. decided to set-up a Thermal Power Plant of 500 mega watt capacities. The company decided to issue 10,00,000 equity shares of Rs 10 each at a premium of 70% to finance the project.

    Applications for 17,00,000 shares were received. Applications for 5,00,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The whole of share money was payable on application.

    Pass necessary journal entries for the above transactions in the books of the company and identify any two values which the company wants to convey to the society. VIEW SOLUTION


  • Question 10
    TRK Ltd. issued 767,9% debentures of Rs 100 each on 1-1-2016. Pass necessary journal entries for the issue of debentures in the following situations:
    (a) When debentures were issued at a discount of 3% and were redeemable at a premium of 7%.
    (b) When debentures were issued at a premium of 4% and were redeemable at a premium of 9%. VIEW SOLUTION


  • Question 11
    E and F were partners in a firm sharing profits in the ratio of 7:3. On 1-4-2014 they admitted G as a new partner for 1/5th share in the profit with a guaranteed profit of Rs 60,000. The new profit sharing ratio between E and F will remain the same but they agreed to bear any deficiency on account of guarantee to G in the ratio of 3:7. The profit of the firm for the year ended 31-3-2015 was Rs 2,70,000.

    Prepare Profit and Loss Appropriation Account of E, F and G for the year ended 31-3-2015. VIEW SOLUTION


  • Question 12
    Geeta, Sita and Meeta were partners in a firm sharing profits in the ratio of 5:3:2. The firm closes its books on 31st March every year. On 30-6-2015 Geeta died. On that date her capital account showed a debit balance of Rs 5,000 and Goodwill of the firm was valued at Rs 3,70,000.
    There was a debit balance of Rs 12,000 in the profit and loss account. Geeta’s share of profit in the year of her death was to be calculated on the basis of the average profit of last 5 years which was Rs 80,000.

    Pass necessary journal entries in the books of the firm on Geeta’s death. VIEW SOLUTION


  • Question 13
     P and G were partners in a firm sharing profits in the ratio of 7:4. On 1-1-2016 their firm was dissolved. After transferring assets (other than cash) and outsiders liabilities to realization account you are given the following information:

    (a) Kumar, a creditor for Rs 3,90,000 accepted building at Rs 7,00,000 and paid the balance to the firm by cheque.
    (b) Karan, a second creditor for Rs 2,83,000 accepted machinery of the books value of Rs 3,00,000 at Rs 2,80,000 in full settlement of his claim.
    (c) Kishor, a third creditor for Rs 5,00,000 accepted investments of Rs 4,10,000 and a bank draft of Rs 89,000 in full settlement of his claim.
    (d) Loss on dissolution was Rs 2,200.

    Pass necessary journal entries for the above transactions in the books of the firm. VIEW SOLUTION


  • Question 14
    S, T and U were partners in a firm sharing profits and losses in the ratio of 4:3:3. On 31-3-2015 their Balance Sheet was as follows:

    Balance Sheet S, T and U

    as on 31-3-2015

    Liabilities

    Amount

    (Rs)

    Assets

    Amount

    (Rs)

    Creditors

    73,500

    Land

    2,70,000

    Bills Payable

    16,500

    Building                   

    1,35,000

    General reserve

    1,05,000

    Plant

    95,000

    Capitals:

     

    Stock

    37,500

    S

    2,50,000

     

    Debtor

    30,000

    T

    50,000

     

    Bank

    7,500

    U

    80,000

    3,80,000

     

     

     

    5,75,000

     

    5,75,000

     

     

     

     


    From 1-4-2015 they decided to share future profits equally. For this purpose it was decided that
    (i) Goodwill of the firm be valued at Rs 90,000.
    (ii) Land be revalued at Rs 3,00,000 and building by depreciated by 10%.
    (iii) Creditors Rs 7,500 were not likely to be claimed and hence be written-off.

    Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm. VIEW SOLUTION


  • Question 15
    On 1.4.2013 Kaka Ltd. had Rs 50,00,000, 9% debentures of Rs 100 each outstanding.
    (i) On 1-4-2014 the company purchased in the open market 25,000 of its own debentures of Rs 99 each and cancelled the same immediately.
    (ii) On 1-4-2015 the company redeemed at par debentures of Rs 10,00,000 by draw of lot.
    (iii) On 1-1-2016 the remaining debentures were purchased for Rs 14,99,000 and were cancelled immediately.

    Ignoring debenture redemption reserve and interest on debentures pass necessary journal entries for the above transactions in the books of the company. VIEW SOLUTION


  • Question 16

    JS Ltd. invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 6 per share. The amount was payable as follows:

    On application – Rs 4 per share (including premium Rs 1 per share)

    On Allotment – Rs 6 per share (including premium Rs 3 per share)

    On First and Final Call – Balance.

    Applications for 1,60,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Raman holding 400 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Veer who had applied for 1,200 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 500 shares were re-issued at Rs 8 per share fully paid-up. The re-issued shares included all the forfeited shares of Raman.

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

    OR

     

    BOOKS OF RS LTD.

    JOURNAL

    Date

    Particulars

    L.F.

    Debit

    Amount

    (Rs)

    Credit

    Amount

    (Rs)

    2015

     

     

     

     

     

    Jan. 10

    ……………..

    Dr.

     

    ……….

     

     

    To ……………………

     

     

     

    ……….

     

    (Application money received for 35,000 shares @ Rs 5 per share)

     

     

     

     

     

     

     

     

     

    Jan. 16

    ……………..

    Dr.

     

    ……….

     

     

    To ……………………

     

     

     

    ……….

     

    To ……………………

     

     

     

    ……….

     

    To ……………………

     

     

     

    ……….

     

    To ……………………

     

     

     

    ……….

     

    (Transfer of share application money to share capital a/c, securities premium a/c, refunded for 4,000 shares for rejected applications and balance to share allotment as shares were allotted on pro-rata basis)

     

     

     

     

     

     

     

     

     

    Jan. 31

    ……………..

    Dr.

     

    ……….

     

     

    To ……………………

     

     

     

    ……….

     

    (Amount due on allotment @ Rs 4 per share)

     

     

     

     

     

     

     

     

     

    Feb. 20

    ……………..

    Dr.

     

    ……….

     

     

    To ……………………

     

     

     

    ……….

     

    (Balance amount received on allotment)

     

     

     

     

     

     

     

     

     

    April  01

    ……………..

    Dr.

     

    ……….

     

     

    To ……………………

     

     

     

    ……….

     

    (First and final call money due)

     

     

     

     

     

     

     

     

     

    April 20

    ……………..

    Dr.

     

    ……….

     

     

    Calls-in-arrears A/c.

    Dr.

     

    ……….

     

     

    To ……………….

     

     

     

    ……….

     

    (Money received on first and final call except on 500 shares)

     

     

     

     

     

     

     

     

     

    Aug. 27

    ……………..

    Dr.

     

    ……….

     

     

    To ……………….

     

     

     

    ……….

     

    To ……………….

     

     

     

    ……….

     

    (Forfeited the shares on which first and final call money was not received)

     

     

     

     

     

     

     

     

     

    Oct. 3

    ……………..

    Dr.

     

    ……….

     

     

    ……………..

    Dr.

     

    ……….

     

     

    To ……………….

     

     

     

    ……….

     

    (Re-issued the forfeited shares @ 8 per share fully paid-up)

     

     

     

     

     

     

     

     

     

    …………

    …………..

    Dr.

     

    ……….

     

     

    To …………..

     

     

     

    ……….

     

    (.…………..…………..…………..)

     

     

     

     

     

     

     

     

     

    VIEW SOLUTION


  • Question 17
    P, Q and R were partners in a firm sharing profit in the ratio of 3:2:1. On 31-3-2015 their Balance Sheet was as follows :
     

    Balance Sheet of P, Q and R as on 31-3-2015

    Liabilities

    Amount

    (Rs)

    Assets

    Amount

    (Rs)

    Creditors

    2,52,000

    Bank

    51,000

    General Reserve

    63,000

    Debtors

    69,000

    Capitals:

     

    Stock

    3,30,000

      P

    1,80,000

     

    Investments

    90,000

      Q

    1,20,000

     

    Furniture

    30,000

      R

    60,000

    3,60,000

    Machinery

    1,05,000

     

    6,75,000

     

    6,75,000

     

     

     

     


    On the above date S was admitted as a new partner and it was decided that :


    (i) The new profit sharing ratio between P, Q, R and S will be 2:2:1:1.


    (ii) Goodwill of the firm was valued at Rs 2,70,000 and S will bring his share of goodwill premium in cash.


    (iii) The market value of investments was Rs 64,000.


    (iv) Machinery will be reduced to Rs 87,000.


    (v) A creditor of Rs 9,000 was not likely to claim the amount and hence to be written-off.


    (vi) S will bring proportionate capital so as to give him 1/6th share in the profits of the firm.


    Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of P, Q, R and S.
     

    OR


    A, B and C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31-3-2015 their Balance Sheet was as follows:
     

    Balance Sheet of A, B and C as on 31-3-2015

    Liabilities

    Amount

    (Rs)

    Assets

    Amount

    (Rs)

    Creditors

    63,000

    Land and Building

    1,86,000

    Investment

     

    Motor Vans

    60,000

    Fluctuation Fund

    30,000

    Investments

    57,000

    P & L Account

    1,20,000

    Machinery

    36,000

    Capitals:

     

    Stock

    45,000

      A

    1,50,000

     

    Debtors

    1,20,000

     

      B

    1,20,000

     

      Less: Provision

    9,000

    1,11,000

      C

    60,000

    3,30,000

    Cash

    48,000

     

    5,43,000

     

    5,43,000

     

     

     

     


    On the above date B retired and A and C agreed to continue the business on the following terms :


    (1) Goodwill of the firm was valued at Rs 1,53,000.


    (2) Provision for bad debts was to be reduced by Rs 3,000.


    (3) There was a claim of Rs 12,000 for workmen compensation.


    (4) B will be paid Rs 24,600 in cash and the balance will be transferred to his loan account which will be paid in four equal yearly instalments together with interest @ 10% p.a.


    (5) The new profit sharing ratio between A and C will be 3:2 and their capital will be in their new profit sharing ratio. The capital adjustments will be done by opening current accounts.


    Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of A and C.

    VIEW SOLUTION


  • Question 18
    L Ltd. had purchased a machinery on deferred payment basis. During the year ended 31-3-2015 the company paid an installment of Rs 4,00,000 which included interest of Rs 4,000. Under which activity or activities payment of installment will be classified while preparing Cash flow Statement. VIEW SOLUTION


  • Question 19
    'An enterprise may hold securities and loans for dealing or trading purposes in which case they are similar to inventory acquired specifically for resale.' Is the statement true? Cash flows from such activities will be classified under which type of activity while preparing 'Cash flow statement'. VIEW SOLUTION


  • Question 20
    (a) List any four items that are shown under the heading 'Non-current Assets' as per Schedule III of the Companies Act, 2013.

    (b) State any two limitations of financial statements analysis of a company. VIEW SOLUTION


  • Question 21
    (a) What is meant by 'Liquidity' of business?

    (b) From the following details obtained  from the financial statements of JN Ltd. calculate 'interest coverage ratio'.
    Net profit after tax Rs 2,00,000; 12% Long-Term Debt Rs 40,00,000; Rate of tax 40%. VIEW SOLUTION


  • Question 22
    Following is the statement of Profit and Loss of DD Ltd. for the year ended 31-3-2015:

     

    Particulars

    Note

    No.

    31-3-2015

    (Rs)

    31-3-2014

    (Rs)

    Revenue from operations

     

    75,00,000

    34,00,000

    Other Income

     

    1,50,000

    3,00,000

    Employee benefit

     

    Expenses – 60% of total revenue

     

    Other expenses – 10% of employee benefit expenses

     

     

     

    Tax Rate

     

    40%

    50%

     

    The motto of DD Ltd. is to produce and supply green energy in the rural areas of India. It has also taken up a project of constructing a road that will pass through five villages, so that these villages could be connected to the nearby town. It will use the local resources and employ local people for construction of the road.


    You are required to prepare a comparative statement of Profit and Loss of DD Ltd. from the given statement of Profit and Loss. Also identify any two values that the company wishes to convey to the society.

    VIEW SOLUTION


  • Question 23
    Following is the Balance Sheet of SN Ltd. as at 31-3-2015 :
     

    SN Ltd. Balance Sheet as at 31-3-2015

    Particulars

    Note No.

    31-03-2015

    (Rs)

    31-03-2014

    (Rs)

    I. Equity and Liabilities

    (1) Shareholders’ Funds :

     

     

     

    (a) Share Capital

     

    2,50,000

    2,00,000

    (b) Reserves and Surplus

    1

    1,00,000

    (25,000)

    (2) Non-current Liabilities :

     

       

    Long-term borrowings

    2

    2,25,000

    2,50,000

    (3) Current liabilities :

     

     

     

    (a) Short-term borrowings

    3

    75,000

    25,000

    (b) Short-term provisions

    4

    35,000

    45,000

    Total

     

    6,85,000

    4,95,000

    II. Assets

    (1) Non-current Assets :

     

     

     

    (a) Fixed Assets

     

     

     

    (i) Tangible

    5

    5,01,500

    3,60,000

    (ii) Intangible

    6

    10,000

    15,000

    (b) Non-current Investments

     

    50,000

    37,500

    (2) Current Assets :

     

     

     

    (a) Current Investments

     

    25,000

    30,000

    (b) Inventories

    7

    53,500

    22,500

    (c) Cash and Cash Equivalents

     

    45,000

    30,000

    Total

     

    6,85,000

    4,95,000

     

     

     

     

     

    Notes to Accounts
     

    Note

    No.

    Particulars

    31-03-2015

    (Rs)

    31-03-2014

    (Rs)

    1

    Reserves and Surplus

     

     

     

    (Surplus i.e. Balance in the statement of Profit and Loss)

    1,00,000

    (25,000)

     

     

    1,00,000

    (25,000)

     

     

     

     

    2.

    Long-term Borrowings :

     

     

     

    12% Debentures

    2,25,000

    2,50,000

     

     

    2,25,000

    2,50,000

     

     

     

     

    3.

    Short-term Borrowings :

     

     

     

    Bank Overdraft

    75,000

    25,000

     

     

    75,000

    25,000

     

     

     

     

    4.

    Short-term Provisions :

     

     

     

    Provision for tax

    35,000

    45,000

     

     

    35,000

    45,000

     

     

     

     

    5.

    Tangible Assets :

     

     

     

    Machinery

    6,01,500

    4,10,500

     

    Accumulated Depreciations

    (1,00,000)

    (50,500)

     

     

    5,01,500

    3,60,000

     

     

     

     

    6.

    Intangible Assets :

     

     

     

    Goodwill

    10,000

    15,000

     

     

    10,000

    15,000

     

     

     

     

    7.

    Inventories :

     

     

     

    Stock in trade

    53,500

    22,500

     

     

    53,500

    22,500

     

     

     

     


    Additional Information :


    (i) 12% Debentures were redeemed on 31-3-2015.


    (ii)  Tax Rs 35,000 was paid during the year.

     

    Prepare Cash Flow Statement.

    VIEW SOLUTION
More Board Paper Solutions for Class 12 Commerce Accountancy
What are you looking for?

Syllabus