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Board Paper of Class 12-Commerce 2017 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-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
    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 2
    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 3
    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 4
    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 5
    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 6
    Does partnership firm has a separate legal entity? Give reason in support of your answer.   (1) VIEW SOLUTION


  • Question 7
    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 8
    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 9
    Amar, Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 2 : 2 : 2 : 1. On 31st January, 2017 Sohan retired. On Sohan's retirement the goodwill of the firm was valued at Rs 70,000. The new profit sharing ratio between Amar, Ram and Mohan was agreed as 5 : 1 : 1.

    Showing your working notes clearly, pass necessary Journal Entry for the treatment of goodwill in the books of the firm on Sohan's retirement.  (3) VIEW SOLUTION


  • Question 10
    Jain Motors Ltd. converted its 200, 8% debentures of Rs 100 each issued at a discount of 6% into equity shares of Rs 10 each, issued at a premium of 25%. Discount on issue of 8% debentures has not yet been written off.

    Showing your working notes clearly pass necessary Journal Entries on conversion of 8% debentures into equity shares. VIEW SOLUTION


  • Question 11
    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 14th 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 12
    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 13

    P, Q, R and S were partners in a firm sharing profits in the ratio of 1 : 4 : 2 : 3. On 1-4-2016 their Balance Sheet was as follows:

    Balance Sheet of P, Q, R and S

    as on 1.4.2016

    Liabilities

    Amount

    (Rs)

    Assets

    Amount

    (Rs)

    Capitals:

     

    Fixed Assets

    12,70,000

    P

    2,00,000

     

    Current Assets

    5,30,000

    Q

    3,00,000

     

     

     

    R

    4,00,000

     

     

     

    S

    5,00,000

    14,00,000

     

     

     

     

     

     

    Sundry Creditor 2,30,000    

    Workmen

     

     

     

    Compensation Reserve

    1,70,000

     

     

     

    18,00,000

     

    18,00,000

     

     

     

     

    From the above data the partners decided to share the future profits equally. For this purpose the goodwill of the firm was valued at Rs 2,70,000.
    The partners also agreed for the following:

    (i) Claim against workmen compensation reserve was estimated at Rs 2,00,000.

    (ii) Capitals of the partners was to be adjusted according to the new profit sharing ratio by bringing or paying cash as the case may be.

    Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm.  (6)

    VIEW SOLUTION


  • Question 14
    On 1-4-2015 PVR Ltd. issued 750, 11% debentures of Rs 1,000 each at a discount of 5%, redeemable at a premium of 10% after three years. Interest on debentures is payable on 30th September and 31st March. PVR Ltd. closes its books on 31st March every year. The rate of tax deducted at source is 10%.

    Pass necessary Journal Entries for the issue of debentures and the payment of interest for the year ended 31st March, 2016. VIEW SOLUTION


  • Question 15
    Pass necessary Journal Entries on the dissolution of a firm in the following cases.
    (i) Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of Rs 12,000 and he had to bear the dissolution expenses. Dissolutions expenses Rs 11,000 were paid by Dharam.
    (ii) Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of Rs 15,000. Jay agreed to bear dissolution expenses. Actual dissolution expenses Rs 16,000 were paid by Vijay another partner on behalf of Jay.
    (iii) Deepa, a partner, was to look after the process of dissolution and for this work she was allowed a remuneration of Rs 7,000. Deepa agreed to bear dissolution expenses. Actual dissolution expenses Rs 6,000 were paid from the firm's bank account.
    (iv) Dev, a partner, agreed to do the work of dissolution for Rs 7,500. He took away stock of the same amount as his commission. The stock had already been transferred to realisation account.
    (v) Jeev, a partner, agreed to do the work of dissolution for which he was allowed a commission of Rs 10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Jeev were Rs 12,000. These expenses were paid by Jeev by drawing cash from the firm.
    (vi) A debtor of Rs 8,000 already transferred to realization account agreed to pay the realizations expenses of Rs 7,800 in full settlement of his account. VIEW SOLUTION


  • Question 16

    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 16th 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 17
    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 18
    'Cheques and drafts in hand' are not considered while preparing cash flow statement. Why? VIEW SOLUTION


  • Question 19
    State any two advantages of preparing cash flow statement. VIEW SOLUTION


  • Question 20
    State any two limitations and any two objectives of  'Analysis of Financial Statement'. VIEW SOLUTION


  • Question 21
    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.
    (2) Insurance premium paid in advance Rs 500.
    (3) Sale of goods on credit Rs 3,000.
    (4) Honoured a bills payable Rs 5,000 on maturity. VIEW SOLUTION


  • Question 22
    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 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

     

     

     

     

     

    Additional Information :

     

    (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
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