Select Board & Class

Login

Board Paper of Class 12-Commerce 2017 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-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 'Fixed Capital Account' and 'Fluctuating Capital Account' on the basis of credit balance. VIEW SOLUTION


  • Question 2
    A and B were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted C as a new partner. The new profit sharing ratio between A, B and C was 3 : 2 : 3. A surrendered 15th of his share in favour of C. Calculate B's sacrifice. VIEW SOLUTION


  • Question 3
    P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were Rs 2,00,000 and Rs 3,00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital.
    Pass necessary adjustment entry to rectify the error. VIEW SOLUTION


  • Question 4
    X Ltd. invited applications for issuing 500, 12% debentures of Rs 100 each at a discount of 5%. These debentures were redeemable after three years at par. Applications for 600 debentures were received. Pro-rata allotment was made to all the applicants.
    Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable with application. VIEW SOLUTION


  • Question 5
    Z Ltd. forfeited 1,000 equity shares of Rs 10 each for the non-payment of the first call of Rs 2 per share. The final call of Rs 3 per share was yet to be made.
    Calculate the maximum amount of discount at which these shares can be reissued. VIEW SOLUTION


  • Question 6
    Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any two categories of individuals other than minors who cannot be admitted by them. VIEW SOLUTION


  • Question 7
    BPL Ltd. converted 500, 9% debentures of Rs 100 each issued at a discount of 6% into equity shares of Rs 100 each issued at a premium of Rs 25 per share. Discount on issue of 9% debentures has not yet been written off.
    Showing your working notes clearly, pass necessary journal entries for conversion of 9% debentures into equity shares. VIEW SOLUTION


  • Question 8
    Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of 3 : 2: 2: 1. On. 1.2.2017, Guru retired and the new profit sharing ratio decided between Kavi, Ravi and Kumar was 3: 1: 1. On Guru's retirement the goodwill of the firm was valued at Rs 3,60,000.
    Showing your working notes clearly, pass necessary journal entry in the books of the firm for the treatment of goodwill on Guru's retirement. VIEW SOLUTION


  • Question 9
    Disha Ltd. purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows:
    (i) By issuing 10,000, equity shares of Rs 10 each at a premium of 10%.
    (ii) By issuing 200, 9% debentures of Rs 100 each at a discount of 10%.
    (iii) Balance by accepting a bill of exchange of Rs 50,000 payable after one month.

    Pass necessary journal entries in the books of Disha Ltd. for the purchase of machinery and making payament to Nisha Ltd. VIEW SOLUTION


  • Question 10
    Ganesh Ltd. is registered with an authorised capital of Rs 10,00,00,000 divided into equity shares of Rs 10 each. Subscribed and fully paid up capital of the company was Rs 6,00,00,000. For providing employment to the local youth and for the development of the tribal areas of Arunachal Pradesh the company decided to set up a hydro power plant there. The company also decided to open skill development centres in Itanagar, Pasighat and Tawang. To meet its new financial requirements, the company decided to issue 1,00,000 equity shares of Rs 10 each and 1,00,000, 9% debentures of Rs 100 each. The debentures were redeemable after five years at par. The issue of shares and debentures was fully subscribed. A shareholder holding 2,000 shares failed to pay the final call of Rs 2 per share.
    Show the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also identify any two values that the company wishes to propagate. VIEW SOLUTION


  • Question 11
    Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3 : 5. Their fixed capitals were Rs 4,00,000 and Rs 6,00,000 respectively. On 1.1.2016, Tina was admitted as a new partner for 14th share in the profits. Tina acquired her share of profit from Neha. Tina brought Rs 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina's admisson considering that Tina did not bring her share of goodwill premium in cash. VIEW SOLUTION


  • Question 12
    Ashok, Babu and Chetan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. The firm closes its books on 31st March every year. On 31st December, 2016 Ashok died. The partnership deed provided that on the death of a partner his executors will be entitled to the following :

    (i) Balance in his capital account. On 1.4.2016,  there was a balance of Rs 90,000 in Ashok's Capital Account.

    (ii) Interest on capital @ 12% per annum.

    (iii) His share in the profits of the firm in the year of his death will be calculated on the basis of rate of net profit on sales of the previous year, which was 25%. The sales of the firm till 30st December, 2016 were Rs 4,00,000.

    (iv) His share in the goodwill of the firm. The goodwill of the firm on Ashok's detah was valued at Rs 4,50,000.

    The partnership deed also provided for the following deductions from the amount payable to the executor of the deceased partner:

    (i) His drawings in the year of his death. Ashok's drawings till 31.12.2016 were Rs 15,000.

    (ii) Interest on drawing @ 12% per annum which was calculated as Rs 1,500.

    The accountant of the firm prepared Ashok's Capital Account to be presented to the executor of Ashok but in a hurry he left in incomplete. Ashok's Capital Account as prepared by the firm's accountant is given below :  (4)
     
    Dr.
    Ashok’s Capital Account
    Cr.
    Date
    Particulars
    Amount
    (Rs)
    Date
    Particulars
    Amount
    (Rs)
    2016
     
     
    2016
     
     
    Dec 31
    ……………
    15,000
    April 1
    ……………
    90,000
    Dec 31
    ……………
    ……………
    Dec 31
    ……………
    8,100
    Dec 31
    ……………
    ……………
    Dec 31
    ……………
    40,000
     
     
     
    Dec 31
    ……………
    90,000
     
     
     
    Dec 31
    ……………
    90,000
     
     
    3,18,100
     
     
    3,18,100
     
     
     
     
     
     

     

    You are required to complete Ashok's Capital Account. VIEW SOLUTION


  • Question 13

    A, B, C and D were partners in a firm sharing profits in the ratio of 3 : 2 : 3 : 2. On 1.4.2016, their Balance Sheet was as follows:    (6)

    Balance Sheet of A, B, C and D

    as on 1.4.2016

    Liabilities

    Amount

    (Rs)

    Assets

    Amount

    (Rs)

    Capitals:

     

    Fixed Assets

    8,25,000

    A

    2,00,000

     

    Current Assets

    3,00,000

    B

    2,50,000

     

     

     

    C

    2,50,000

     

     

     

    D

    3,10,000 10,10,000

     

     

     

     

     

     

    Sundry Creditors

    90,000

     

     

    Workmen Compensation Reserve

    25,000

     

     

     

    11,25,000

     

    11,25,000

     

     

     

     

    From the above date partners decided to share the future profits in the ratio of 4 : 3 : 2 : 1. For this purpose the goodwill of the firm was valued at Rs 2,70,000. It was also considered that :

    (i) The claims against Workmen Compensation Reserve has been estimated at Rs 30,000 and fixed assets will be depreciated by Rs 25,000.

    (ii) Adjust the capitals of the partners according to the new profit sharing ratio by opening Current Accounts of the partners.

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

    VIEW SOLUTION


  • Question 14
    On 1.4.2015, J.K. Ltd. issued 8,000, 9% debentures of Rs 1,000 each at a discount of 6%, redeemable at a premium of 5% after three years. The company closes its books on 31st March every year. Interest on 9% debentures is payable on 30th  September and 31st March every year. The rate of tax deducted at source is 10%.

    Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31.3.2016.  (6) VIEW SOLUTION


  • Question 15
    Pass necessary journal entries on the dissolution of a partnership firm in the following cases :

    (i) Dissolution expenses were Rs 800.

    (ii) Dissolution expenses Rs 800 were paid by Prabhu, a partner.

    (iii) Geeta, a partner, was appointed to look after the dissolution work, for which she was allowed a remuneration of Rs 10,000. Geeta agreed to bear the dissolution expenses. Actual dissolution expenses Rs 9,500 were paid by Geeta.

    (iv) Janki, a partner, agreed to look after the dissolution work for a commission of Rs 5,000. Janki agreed to bear the dissolution expenses. Actual dissolution expenses Rs 5,500 were paid by Mohan, another partner, on behalf of Janki.

    (v) A partner, Kavita, agreed to look after the dissolution process for a commission of Rs 9,000. She also agreed to bear the dissolution expenses. Kavita took over furniture of Rs 9,000 for her commission. Furniture had already been transferred to realisation  account.

    (vi) A debtor, Ravinder, for Rs 19,000 agreed to pay the dissolution expenses which were Rs 18,000 in full settlement of his debt. VIEW SOLUTION


  • Question 16

    C and D are partners in a firm sharing profits in the ratio of 4 : 1. On 31.3.2016, their Balance Sheet was as follows :

    Balance Sheet of C and D

    as on 31.3.2016

    Liabilities

    Amount

    (Rs)

    Assets

    Amount

    (Rs)

    Sundry Creditors

    40,000

    Cash

    24,000

    Provision for Bad Debts

    4,000

    Debtors

    36,000

    Outstanding Salary

    6,000

    Stock

    40,000

    General Reserve

    10,000

    Furniture

    80,000

     

     

    Plant & Machinery

    80,000

    Capitals:

     

     

     

    C

    1,20,000

     

     

     

    D

    80,000

    2,00,000

     

     

     

    2,60,000

     

    2,60,000

     

     

     

     


    On the above date, E was admitted for 14th share in the profits on the following terms:

    (i) E will bring Rs 1,00,000 as his capital and Rs 20,000 for his share of goodwill premium, half of which will be withdrawn by C and D.
    (ii) Debtors Rs 2,000 will be written off as bad debts and a provision of 4% will be created on debtors for bad and doubtful debts.
    (iii) Stock will be reduced by Rs 2,000, furniture will be depreciated by 4,000 and 10%, depreciation will be charged on plant and machinery.
    (iv) Investments Rs 7,000 not shown in the Balance Sheet will be taken into account.
    (v) There was an an outstanding repairs bill of Rs 2,300 which will be recorded in the books.

    Pass necessary journal entries for the above transactions in the books of the firm on E’s admission.
     
    OR
     
    Sameer, Yasmin and Saloni were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 31.3.2016, their Balance Sheet was as follows:
     

    Balance Sheet of Sameer, Yasmin and Saloni

    as on 31.3.2016

    Liabilities

    Amount

    (Rs)

    Assets

    Amount

    (Rs)

    Creditors

    1,10,000

    Cash

    80,000

    General Reserve

    60,000

    Debtors

    90,000

     

    Capitals:

     

    Less: Provision

    10,000

    80,000

    Sameer

    3,00,000

     

    Stock

    1,00,000

    Yasmin

    2,50,000

     

    Machinery

    3,00,000

    Saloni

    1,50,000

    7,00,000

    Building

    2,00,000

     

     

    Patents

    60,000

     

     

    Profit & Loss A/c

    50,000

     

    8,70,000

     

    8,70,000

     

     

     

     

    On the above date, Sameer retired and it agreed that :

    (i) Debtors of Rs 4,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.

    (ii) An unrecorded creditor of Rs 20,000 will be recorded.

    (iii) Patents will be completely written off and 5% depreciation will be charged on stock, machinery and building.

    (iv) Yasmin and Saloni will share the future profits in the ratio of 3 : 2.

    (v) Goodwill of the firm on Sameer’s retirement was valued at Rs 5,40,000.

    Pass necessary journal entries for the above transactions in the books of the firm on Sameer’s retirement.

    VIEW SOLUTION


  • Question 17
    VXN Ltd. invited applications for issuing 50,000 equity shares of Rs 10 each at a premium of Rs 8 per share. The amount was payable as follows:
    On Application Rs 4 per share (including Rs 2 premium).
    On Allotment Rs 6 per share (including Rs 3 premium).
    On First Call Rs 5 per share (including Rs 1 premium).
    On Second and Final Call – Balance Amount.

    The issue was fully subscribed. Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal's shares were immediately forfeited after allotment. Afterwards, the first call was made. Krishna, a holder of 100 shares, failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call. Krishna's shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received. All the forfeited shares were reissued at Rs 9 per share fully paid up.
    Pass necessary Journal Entries for the above transactions in the books of the company.
     
    OR
     
    JJK Ltd. invited applications for issuing 50,000 equity shares of Rs 10 each at par. The amount was payable as follows:
    On Application : Rs 2 per share.
    On Allotment : Rs 4 per share.
    On First and Final Call : Balance Amount

    The issue was over-subscribed three times. Applications for 30% shares were rejected and money refunded. Allotment was made to the remaining applicants as follows:
     
    Category No. of Shares Applied No. of Shares Allotted
    I 80,000 40,000
    II 25,000 10,000

    Excess money paid by the applicants who were allotted shares was adjusted towards the sums due on allotment.
    Deepak, a shareholder belonging to Category I, who had applied for 1,000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju were reissued at Rs 11 per share fully paid up.

    Pass necessary Journal entries for the above transactions in the books of the company. VIEW SOLUTION


  • Question 18
    Normally, what should be the maturity period for a short term investment from the date of its acquisition to be qualified as cash equivalents? VIEW SOLUTION


  • Question 19
    State the primary objective of preparing a cash flow statement. VIEW SOLUTION


  • Question 20
    What is meant by 'Analysis of Financial Statements'? State any two objectives of such an analysis.       (4) VIEW SOLUTION


  • Question 21
    The proprietary ratio of M. Ltd. is 0.80 : 1.     (4)
    State with reasons whether the following transactions will increase, decrease or not change the proprietary ratio:
    (i) Obtained a loan from bank Rs 2,00,000 payable after five years.
    (ii) Purchased machinery for cash Rs 75,000.
    (iii) Redeemed 5% redeemable preference shares Rs 1,00,000.
    (iv) Issued equity shares to the vendors of machinery purchased for Rs 4,00,000. VIEW SOLUTION


  • Question 22
    Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organisations operate. These statements are the sources of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.

    From the above statement identify any two values that a company should observe while preparing its financial statements. Also, state under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013.    (4)
    (i) Capital Reserve
    (ii) Calls-in-Advance
    (iii) Loose Tools
    (iv) Bank Overdraft VIEW SOLUTION


  • Question 23
    From the following Balance Sheet of SRS Ltd. and the additional information as on 31.3.2016, prepare a Cash Flow Statement :

     

    Balance Sheet of SRS Ltd. as on 31.3.2016

    Particulars

    Note No.

    31.03.2016

    (Rs)

    31.03.2015

    (Rs)

    I. Equity and Liabilities :

    1. Shareholder's Funds :

         

    (a) Share Capital

     

    4,50,000

    3,50,000

    (b) Reserves and Surplus

    1

    1,25,000

    50,000

           

    2. Non-Current Liabilities :

         

    Long-term Borrowings

    2

    2,25,000

    1,75,000

           

    3. Current Liabilities :

         

    (a) Short-term Borrowings

    3

    75,000

    37,500

    (b) Short-term Provisions

    4

    1,00,000

    62,500

    Total

     

    9,75,000

    6,75,000

    II. Assets :

         

    1. Non-Current Assets :

         

    (a) Fixed Assets :

         

    (i) Tangible

    5

    7,32,500

    4,52,500

    (ii) Intangible

    6

    50,000

    75,000

           

    (b) Non-Current Investments

     

    75,000

    50,000

           

    2. Current Assets :

         

    (a) Current Investments

     

    20,000

    35,000

    (b) Inventories

    7

    61,000

    36,000

    (c) Cash and Cash Equivalents

     

    36,500

    26,500

    Total

     

    9,75,000

    6,75,000

           
     

    Notes to Accounts

    Note
    No.
    Particulars
    31.03.2016
    (Rs)
    31.03.2015
    (Rs)
    1.
    Reserves and Surplus
     
     
     
    (Surplus i.e., Balance in the Statement of Profit and Loss)
    1,25,000
    50,000
     
     
    1,25,000
    50,000
     
     
     
     
    2.
    Long-term Borrowings
     
     
     
    12% Debentures
    2,25,000
    1,75,000
     
     
    2,25,000
    1,75,000
     
     
     
     
    3.
    Short-term Borrowings
     
     
     
    Bank Overdraft
    75,000
    37,500
     
     
    75,000
    37,500
     
     
     
     
    4.
    Short-term Provisions
     
     
     
    Proposed Dividend
    1,00,000
    62,500
     
     
    1,00,000
    62,500
     
     
     
     
    5.
    Tangible Assets
     
     
     
    Machinery
    8,37,500
    5,22,500
     
    Accumulated Depreciation
    (1,05,000)
    (70,000)
     
     
    7,32,500
    4,52,500
     
     
     
     
    6.
    Intangible Assets
     
     
     
    Goodwill
    50,000
    75,000
     
     
    50,000
    75,000
     
     
     
     
    7.
    Inventories
     
     
     
    Stock in Trade
    61,000
    36,000
     
     
    61,000
    36,000
     
     
     
     

     

    Additional Information :

     

    (i) Rs 50,000, 12% debentures were issued on 31.3.2016.

     

    (ii)  During the year a piece of machinery costing Rs 40,000 on which accumulated depreciation was Rs 20,000, was sold at a loss of Rs 5,000.

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

Syllabus