Select Board & Class

# Board Paper of Class 12-Commerce 2017 Accountancy Delhi(SET 2) - 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
Gupta and Sharma were partners in a firm. They wanted to admit two more members in the firm. List the categories of individuals other than minors who cannot be admitted by them.   (1) VIEW SOLUTION

• Question 2
Y Ltd. forteited 100 equity shares of Rs 10 each for the non-payment of first call of Rs 2 per share. The final call of Rs 2 per share was yet to be made.

Calculate the maximum amount of discount at which these shares can be re-issued.  (1)
VIEW SOLUTION

• Question 3
A and B were partners in a firm sharing profits and losses in the ratio of 4 : 3. They admitted C as a new partner. The new profit sharing ratio between A, B and C was 3 : 2 : 2. A surrendered 1/4 of his share in favour of C. Calculate B's Sacrifice.   (1) VIEW SOLUTION

• Question 4
P and Q were partners in a firm sharing profits equally. Their fixed capitals were Rs 1,00,000 and Rs 50,000 respectively. The partnership deed provided for interest on capital at the rate of 10% 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.   (1) VIEW SOLUTION

• Question 5
X Ltd. invited applications for issuing 1000, 9% debentures of Rs 100 each at a discount of 6%. Applications for 1,200 debentures were received. Pro-rate allotment was made to all the applicants.

Pass necessary Journal Entries for the issue of debentures assuming that the whole amount was payable with applications.   (1)
VIEW SOLUTION

• Question 6
Does partnership firm has a separate legal entity? Give reason in support of your answer.   (1) VIEW SOLUTION

• Question 7
XXL Ltd. converted its 500, 9% debentures of Rs 100 each issued at a dsicount of 8% into equity shares of Rs 10 each issued at a premium of 25%. Discount on issue of debentures has not yet been written off.
Showing your workings clearly pass necessary Journal Entries on conversion of 9% debentures into equity shares.   (3) VIEW SOLUTION

• Question 8
A, B, C and D were partners in a firm sharing profits in 3 : 3 : 3: 1 ratio. On 31st January, 2017 D retired. A, B and C decided to share future profits in the ratio of 5 : 1 : 1. On D's retirement the goodwill of the firm was valued at Rs 4,90,000.
Showing your working notes clearly pass necessary Journal Entry for the treatment of goodwill in the books of the firm on D's retirement. VIEW SOLUTION

• Question 9
Akash Ltd. is registered with an authorized Capital of Rs 8,00,00,000 divided into equity shares of Rs 10 each. Subscribed and fully paid up share capital of the company was Rs 4,00,00,000. For providing employement to the local youth and for the development of the rural areas of the Jammu nad Kashmir State the company decided to set up a food processing unit in Anantnag district. The Company also decided to open skill development centres in Ladakh, Srinagar and Punch. To meet its new financial requirements the company decided to issue 1,00,000 equity shares of Rs 10 each and 10,000, 9% debentures of Rs 100 each. The debentures were redeemable after five years. The issue of equity shares and debentures was fully subscribed. A shareholder holding 1,000 shares failed to pay the final call of Rs 2 per share.

Present 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 10
Z Ltd. purchased machinery from K Ltd. Z Ltd. paid K Ltd as follows:
(i) By issuing 5,000 equity shares of Rs 10 each at a premium of 30%.
(ii) By issuing 1000, 8% Debentures of Rs 100 each at a discount of 10%.
(iii) Balance by giving a promissory note of Rs 48,000 payable after two months.

Pass necessary journal entries for the purchase of machinery and payment to K Ltd. in the books of Z Ltd. VIEW SOLUTION

• Question 11
Sandeep, Mandeep and Amandeep were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2016 Mandeep died. The partnership deed provided that on the death of a partner his executors will be entitled to the following :

(1) Balance in his capital account and interest @ 12% p.a. on capital. On 1-4-2016 the balance in Mandeep's Capital account was Rs 1,00,000.

(2) His share in the profits of the firm in the year of his death which 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 30th September, 2016 were Rs 9,00,000.

(3) His share on the goodwill of the firm. The goodwill of the firm on Mandee's detah was valued at Rs 1,50,000.

The partnership deed also provided that the following deductions will be made from the amount payable to the executor of the deceased partner:

(1) His drawing in the year of his death. Mandeep's drawings till 30th September, 2016 were Rs 4,000.

(2) Interest on drawing @ 6% per annum which calculated as Rs 120.

The accountant of the firm prepared Mandeep's Capital Account to be presented to the executor of Mandeep but in a hurry he left in incomplete. Mandeep's capital Account prepared by Accountant of the firm is shown below :

 Dr. Mandeep’s Capital Account Cr. Date Particulars Amount (Rs) Date Particulars Amount (Rs) 2016 2016 Sep. 30 …………… 4,000 April 1 …………… 1,00,000 Sep. 30 …………… – Sep. 30 …………… 6,000 Sep. 30 …………… – Sep. 30 …………… 90,000 Sep. 30 …………… 40,000 Sep. 30 …………… 20,000 2,56,000 2,56,000

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

• Question 12
Karan and Varun were partners in a firm sharing profits and losses in the ratio of 1 : 2. Their fixed capitals were Rs, 2,00,000 and Rs 3,00,000 respectively. On 1st April, 2016 Kishore was admitted as a new partner for $\frac{1}{4}\mathrm{th}$ share in the profits. Kishore brought Rs 2,00,000 for his capital which was to be kept fixed like the capitals of Karan and Varun. Kishore acquired his share of profit from Varun.

Calculate goodwill of the firm on Kishore's admission and the new profit sharing ratio of Karan, Varun and Kishore. Also, pass necessary Journal Entry for the treatment of Goodwill on Kishore's admission considering that Kishore did not bring his share of goodwill premium in Cash. VIEW SOLUTION

• Question 13

Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3: 2 :1. On 1-4-2016 their Balance Sheet was as follows:

 Balance Sheet of Ram, Mohan, Sohan and Hari as on 1.4.2016 Liabilities Amount (Rs) Assets Amount (Rs) Capitals: Fixed Assets 9,00,000 Ram 4,00,000 Current Assets 5,20,000 Mohan 4,50,000 Sohan 2,50,000 Hari 2,00,000 13,00,000 Workmen Compensation Reserve 1,20,000 14,20,000 14,20,000

From the above data the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purpose the goodwill of the firm was valued at Rs 1,80,000. The partners also agreed for the following:

(i) The claim for workmen compensation has been estimated at Rs 1,50,000.

(ii) Adjust the capitals of the partners according to new profit sharing ratio by opening partner’s current accounts.

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

VIEW SOLUTION

• Question 14
On 1-4-2015 V.V.L. Ltd issued 1000, 9% debentures of Rs 100 each at a discount of 6%, redeemable at a premium of 10% after three years.

Pass necessary journal entries for the issue of debentures and debentures interest for the year ended 31-3-2016, assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year. VIEW SOLUTION

• Question 15
Pass necessary Journal Entires on the dissolution of a partnership firm in the following cases :  (6)

(i) L, a partner, was appointed to look after the dissolution process for which he was given a remuneration of Rs 10,000.

(ii) Dissolution expenses Rs 8,000 were paid by the partner, M.

(iii) Dissolution expenses were Rs 5,000.

(iv) P, a partner, was appointed to look after the process of dissolution for which he was allowed a remuneration of Rs 7,000. P agreed to bear the dissolution expenses. Actual dissolution expenses Rs 4,000 were paid by P.

(v) N, a partner, was appointed to look after the process of dissolution for which he was allowed a remuneration of Rs 9,000. N agreed to bear the dissolution expenses. Actual dissolution expenses Rs 4,000 were paid by the firm.

(vi) Q a partner was appointed to look after the process of dissolution for which he was allowed a remuneration of Rs 18,000. Q agreed to take over stock worth Rs 18,000 as his remuneration. The stock had already been transferred to Realisation Account. VIEW SOLUTION

• Question 16
AXN Ltd. invited applications for issuing 1,00,000 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 Rs 2 premium).
On Allotment Rs 5 per share Including Rs 2 premium).
On First Call Rs 4 per share (including Rs 2 premium).
On Second and Final Call – Balance Amount.

The issue was fully subscribed.

Kumar the holder of 400 shares did not pay the allotment money and Ravi the holder of 1,000 shares paid his entire share money along with allotment money.
Kumar's shares were forfeited immediately after allotment. Afterwards first call was made. Gupta a holder of 300 shares failed to pay the first call money and Gopal a holder of 600 shares paid the second call money also along with first call. Gupta's shares were forfeited immediately after the first call. Second and final call was made afterwards. The whole amount due on second call was received.

All the forfeited shares were re-issued at Rs 9 per share fully paid up.
Pass necessary Journal Entries for the above transactions in the books of the company.

OR

XL Ltd. invited applications for issuing 1,00,000 equity shares of Rs 10 each at par. The amount was payable as follows:
On Application Rs 3 per share.
On Allotment Rs 4 per share.
On First and Final Call Rs 3 per share.

The issue was over-subscribed by three times. Applications for 20% shares were rejected and the money refunded. Allotment was made to the remaining applicants as follows:
 Category No. of Shares Applied No. of Shares Allotted I 1,60,000 80,000 II 80,000 20,000

Excess money received with applications was adjusted towards sums due on allotment and first and final call. All calls were made and were duly received except the final call by a shareholder belonging to Category I who has applied for 320 shares. His shares were forfeited. The forfeited shares were re-issued at Rs 15 per share fully up.

Pass necessary Journal entries for the above transactions in the book of XL Ltd. open calls in-arrears and calls in advance account whenever required. VIEW SOLUTION

• Question 17

W and R are partners in a firm sharing profits in the ratio of 3 : 2. Their Balance Sheet as on 31st March, 2016 was as follows

 Balance Sheet of W and R as on 31.3.2016 Liabilities Amount (Rs) Assets Amount (Rs) Sundry Creditors 20,000 Cash 12,000 Provision for Bad Debts 2,000 Debtors 18,000 Outstanding Salary 3,000 Stock 20,000 General Reserve 5,000 Furniture 40,000 Plant & Machinery 40,000 Capitals: W 60,000 R 40,000 1,00,000 1,30,000 1,30,000

On the above date C was admitted for $\frac{1}{6}\mathrm{th}$ share in the profits on the following terms:

(i) C will bring Rs 30,000 as his capital and Rs 10,000 for his share of goodwill premium, half of which will be withdrawn by W and R.

(ii) Debtors Rs 1,500 will be written off as bad debts and a provision of 5% will be created for bad and doubtful debts.

(iii) Outstanding salary will be paid off.

(iv) Stock will be depreciated by 10%, furniture by Rs 500 and Plant and Machinery by 8%.

(v) Investments Rs 2,500 not mentioned in the balance sheet were to be taken into account.

(vi) A creditor of Rs 2,100 not recorded in the books was to be taken into account. Pass necessary Journal Entries for the above transactions in the books of the firm on C’s admission.

OR

M, N and G were partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31-3-2016 their Balance Sheet was as under:

 Balance Sheet of M, N and G as on 31.3.2016 Liabilities Amount (Rs) Assets Amount (Rs) Creditors 55,000 Cash 40,000 General Reserve 30,000 Debtors 45,000 Capitals: Less Provision 5,000 40,000 M 1,50,000 Stock 50,000 N 1,25,000 Machinery 1,50,000 G 75,000 3,50,000 Patents 30,000 Building 1,00,000 Profit & Loss A/c 25,000 4,35,000 4,35,000

M retired on the above date and it was agreed that:

(i) Debtors of Rs 2,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.

(ii) Patents will be completely written off and stock, machinery and building will be depreciated by 5%.

(iii) An unrecorded creditor of Rs 10,000 will be taken into account.

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

(v) Goodwill of the firm on M’s retirement was valued at Rs 3,00,000.

Pass necessary Journal Entries for the above transactions in the books of the firm on M’s retirement.

VIEW SOLUTION

• Question 18
'Net decrease in working capital other than cash and cash eqivalents' will increase, decrease or not change cash flow from operating activities. Give reason in support of your answer. VIEW SOLUTION

• Question 19
'Payment and Receipt of interest and dividend' is classified as which type of activity while preparing cash flow statement? VIEW SOLUTION

• Question 20
State any four limitation of analysis of financial statements. VIEW SOLUTION

• Question 21
Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organizations 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.
General Reserves, short term loans and advances, Capital work in progress and desgin.
VIEW SOLUTION

• Question 22
The Quick Ratio of a company is 0.8 : 1. State with reason whether the following transactions will increase, decrease or not change the quick ratio :
(1) Purchase of loose tools Rs 2,000.
(3) Sale of goods on credit Rs 3,000.
(4) Honoured a bills payable Rs 5,000 on maturity. VIEW SOLUTION

• Question 23
Following is the Balance Sheet of R.S. Ltd. as at 31st March, 2016 :

 R.S. Ltd. Balance Sheet as at 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 9,00,000 7,00,000 (b) Reserves and Surplus 1 2,50,000 1,00,000 (2) Non-current Liabilities Long-term borrowings 2 4,50,000 3,50,000 (3) Current Liabilities (a) Short-term borrowings 3 1,50,000 75,000 (b) Short-term provisions 4 2,00,000 1,25,000 Total 19,50,000 13,50,000 II. Assets (1) Non-current Assets (a) Fixed Assets (i) Tangible 5 14,65,000 9,15,000 (ii) Intangible 6 1,00,000 1,50,000 (b) Non-current Investments 1,50,000 1,00,000 (2) Current Assets (a) Current Investments 40,000 70,000 (b) Inventories 7 1,22,000 72,000 (c) Cash and Cash Equivalents 73,000 43,000 Total 19,50,000 13,50,000

Notes to Accounts :

 Note No. Particulars 31-03-2016 (Rs) 31-03-2015 (Rs) (1) Reserves and Surplus (Surplus i.e. Balance in Statement of Profit and Loss) 2,50,000 1,00,000 2,50,000 1,00,000 (2) Long-term borrowings 12% Debentures 4,50,000 3,50,000 4,50,000 3,50,000 (3) Short-term borrowings Bank overdraft 1,50,000 75,000 1,50,000 75,000 (4) Short-term provisions Proposed Dividend 2,00,000 1,25,000 2,00,000 1,25,000 (5) Tangible Assets Machinery 16,75,000 10,55,000 Accumulated Depreciation (2,10,000) (1,40,000) 14,65,000 9,15,000 (6) Intangible Assets Goodwill 1,00,000 1,50,000 1,00,000 1,50,000 (7) Inventories Stock in trade 1,22,000 72,000 1,22,000 72,000

(1) Rs 1,00,000, 12% Debentures were issued on 31-3-2016.

(2)  During the year a piece of machinery costing Rs 80,000 on which accumulated depreciation was Rs 40,000 was sold at a loss of Rs 10,000.

Prepare a Cash Flow Statement.

VIEW SOLUTION
More Board Paper Solutions for Class 12 Commerce Accountancy

• ### Board Paper of Class 12-Commerce 2008 Accountancy All India(SET 1) - Solutions

Board Paper Solutions for Other Subjects

### Board Paper Solutions for Class 12 Commerce Applied Mathematics

What are you looking for?

Syllabus