Board Paper of Class 12-Commerce 2012 Accountancy Delhi(SET 3) - Solutions
(i) This question paper contains three parts A, B and C.
(ii) Part A is compulsory for all candidates.
(iii) Candidates can attempt only one part of the remaining parts B and C.
(iv) All parts of the questions should be attempted at one place.
(v) Questions Nos. 1-5 and 17-19 carries 1 mark each.
(vi) Questions Nos. 6-8 and 20 carries 3 marks each.
(vii) Questions Nos. 9-11 and 21-22 carries 4 marks each.
(viii) Questions Nos. 12-14 and 23 carries 6 marks each.
(ix) Questions Nos. 15-16 carries 8 marks each.
- Question 1
For which share of Goodwill a partner is entitled at the time of his retirement?
- Question 2
Name the financial statement prepared by a Not-For-Profit Organisation on accrual basis.VIEW SOLUTION
- Question 3
Give any one advantage for the redemption of debentures by purchase in the open market?
- Question 4
State the provisions of Indian Partnership Act regarding the payment of remuneration to a partner for the services rendered.
- Question 5
State any two occasions on which a firm can be reconstituted.VIEW SOLUTION
- Question 6
Jain Ltd. purchased Building for Rs 10,00,000 from Gupta Ltd. 10% of the payable amount was paid by a cheque drawn in favour of Gupta Ltd. The balance was paid by issue of Equity Shares of Rs 10 each at a discount of 10%.
Pass necessary Journal Entries in the books of Jain Ltd.VIEW SOLUTION
- Question 7
Narain Laxmi Ltd. invited applications for issuing 7500, 12% Debentures of Rs100 each at a premium of Rs 35 per Debenture. The full amount was payable on application.
Applications were received for 10,000 Debentures. Applications for 2500 Debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants.
Pass necessary Journal Entries for the above transactions in the books of Narain Laxmi Ltd.VIEW SOLUTION
- Question 8
From the following information, calculate the amount of income from subscriptions to be shown in the Income and Expenditure Account for the year ended 31-3-2011:
Subscriptions received during the year 2010-2011
Subscriptions outstanding as on 31-3-2011
Subscriptions received in advance as on 31-3-2011
Subscriptions outstanding as on 1-4-2010
Subscriptions received in advance as on 1-4-2010
- Question 9
Arjun, Bhim and Nakul are partners sharing profits & losses in the ratio of 14 : 5 : 6 respectively.
Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill of the firm is valued at 2 years purchase of super profits based on average profits of last 3 years. The profits for the last 3 years are Rs 50,000, Rs 55,000 & Rs 60,000 respectively. The normal profits for the similar firm are Rs 30,000. Goodwill already appears in the books of the firm at Rs 75,000.
The profit for the first year after Bhim's retirement was Rs 1,00,000. Give the necessary Journal
Entries to adjust Goodwill and distribute profits showing your workings.VIEW SOLUTION
- Question 10
Shakti Ltd. decided to redeem its 750, 12% Debentures of Rs 100 each. The company purchased 500 Debentures at Rs 94 per Debenture from the open market. The remaining debentures were redeemed out of profits. The company had already made a provision for Debenture Redemption Reserve in its books.
Pass necessary Journal Entries in the books of the company for the above transactions.VIEW SOLUTION
- Question 11
Arun and Arora were partners in a firm sharing profits in the ratio of 5 : 3. Their fixed capitals on 1-4-2010 were: Arun Rs 60,000 and Arora Rs 80,000. They agreed to allow interest on capital @ 12% p.a. And to charge on drawings @ 15% p.a. The profit of the firm for the year ended 31-3 2011 before all above adjustments were Rs 12,600. The drawings made by Arun were Rs 2,000 and by Arora Rs 4,000 during the year. Prepare Profit and Loss Appropriation Account of Arun and Arora. Show your calculations clearly. The interest on capital will be allowed even if the firm incurs loss.VIEW SOLUTION
- Question 12
Pass necessary Journal Entries for the following transactions in the books of N.R. Ltd.
(i) Redeemed 1,200, 9% Debentures of Rs 175 each by converting into New 10% Debenture of
Rs 100 each issued at a premium of5%.
(ii) Redeemed 19,000, 6% Debentures of Rs 50 each by converting them into Equity shares of Rs 100 each. The Equity shares were issued at a discount of 5%.VIEW SOLUTION
- Question 13
A and B were partners sharing profits in the ratio of 3 : 2. On 31-3-2011 their Balance Sheet of the firm was as follows:
Balance Sheet of A and B
as on 31-3-2011
The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows:
(i) Building was taken over by the creditors as their full & final payment
(ii) Furniture was taken over by B for cash payment at 5% less than the book value.
(iii) Debtors were collected by a debt collection agency at a cost Rs 5,000
(iv) Stock realized Rs 70,500
(v) ‘B’ agreed to bear all realisation expenses. For this service B is paid Rs 500. Actual expenses on realization amounted to Rs 1,000
Pass necessary Journal Entries for dissolution of the firm.VIEW SOLUTION
- Question 14
From the following ‘Receipt and Payments Account’ of ‘New Club’ for the year ended 31-3 2011, prepare ‘Income and Expenditure Account’.
Receipts and Payments Account of 'New Club'
for the year ended 31-3-2011
To Balance b/d
(paid for 8 months)
To Entrance Fee
To Donations (includes Rs 1,000 for Buildings)
To Hall Rent
To Sale of Investments
(Book value Rs 16,000)
By 9% Fixed Deposits
By Balance c/d
From the above ‘Receipts and Payments Account’ prepare an ‘Income and Expenditure Account’ of ‘New Club’ for the year ended 31-3-2011.
- Question 15
‘B’ and ‘C’ were partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as on 31-3 2011 was as follows:
Balance Sheet of B and C
as on 31-3-2011
Land and Building
Provision for bad debts
Profit and Loss Account
‘D’ was admitted to the partnership for 1/5th share in the profits on the following terms:
(i) The new profit sharing ratio was decided as 2:2:1.
(ii) D will bring Rs 30,000 as his capital and Rs 15,000 for his share of goodwill.
(iii) Half of goodwill amount was withdrawn by the partner who sacrificed his share of profit in favour of ‘D’.
(iv) A provision of 5% for bad and doubtful debts was to be maintained.
(v) An item of Rs 500 included in Sundry Creditors was not likely to be paid.
(vi) An provision of Rs 800 was to be made for claims for damages against the firm.
After making the above adjustments the Capital Accounts of ‘B’ and ‘C’ were to be adjusted on the basis of D’s Capital. Actual cash wash to be brought in or to be paid off as the case may be.
Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm.
'G', 'E' and 'F' were partners in a firm sharing profits in the ratio of 7 : 2 : 1. The Balance Sheet of the firm as on 31st March, 2011 was as follows:
Balance Sheet of 'G', 'E' and 'F'
as on 31st March, 2011
Land & Buildings
Loan from ‘E’
‘E’ died on 24th August 2011. Partnership deed provides for the settlement of claims on the death of a partner of a partner in addition to his capital as under:
(i) The share of profit of deceased partner to be computed up to the date of death on the basis of average profits of the past three years which was Rs 80,000.
(ii) His share in profit/loss on revaluation of assets and re-assessment of liabilities which were as follows:
Land and Buildings were revalued at Rs 94,000, Machinery at Rs 38,000 and Stock at Rs 5,000.
A provision of was to be created on debtors for bad and doubtful debts.
(iii) The net amount payable to 'E's executors was transferred to his Loan Account, to be paid later on.
Prepare Revaluation Account, Partner's Capital Accounts, E's Executor A/c and Balance Sheet of 'G' and 'F' who decided to continue the business keeping their capital balances in their new profit sharing ratio.
Any surplus or deficit to be transferred to current accounts of the partners.VIEW SOLUTION
- Question 16
Shyam Ltd. invited applications for issuing 80,000 Equity Shares of Rs 10 each at a premium of Rs 40 per share. The amount was payable as follows:
On Application Rs 35 per share (including Rs 30 Premium)
On Allotment Rs 8 per share (including Rs 4 Premium)
On First and Final Call − Balance
Applications for 77,000 shares were received. Shares were allotted to all the applicants. Sundram to whom 7,000 shares were allotted failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Satyam the holder of 500 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 1,000 shares were re-issued at Rs 50 per share fully paid up. The re-issued shares included all the shares of Satyam.
Pass necessary Journal Entries for the above transactions in the books of Shyam Ltd.
Jain Ltd. Invited applications for issuing 35,000 Equity Shares of Rs 10 each at a discount of 10%. The amount was payable as follows:
On Application Rs 5 per share.
On Allotment Rs 3 per share
On First and Final Call − Balance
Applications for 50,000 shares were received. Applications for 8,000 shares were rejected and the application money of these applicants was refunded. Shares were allotted on pro-rata basis to the remaining applicants and the excess money received with applications from these applicants was adjusted towards sums due on allotment. Jeevan who had applied for 600 shares failed to pay allotment and first and final call money. Naveen the holder of 400 shares failed to pay first and final call money. Shares of Jeevan and Naveen were forfeited. Of the forfeited 800 shares were re-issued at Rs 15 per share fully paid up. The re-issued shares included all the shares of Naveen.
Pass necessary Journal Entries for the above transactions in the books of Jain Ltd.VIEW SOLUTION
- Question 17
State the purpose of preparing a ‘Cash Flow Statement’.VIEW SOLUTION
- Question 18
While preparing Cash Flow Statements what type of activity is, ‘Payments of Cash to acquire Debentures by an investment company?VIEW SOLUTION
- Question 19
State the significance of Analysis of Financial Statements to the ‘Lenders’.VIEW SOLUTION
- Question 20
O.M. Ltd has a Current Ratio of 3.5:1 and Quick Ratio of 2:1. If the excess of Current Assets over Quick Assets as represented by Stock is Rs 1,50,000, calculate Current Assets and Current Liabilities.VIEW SOLUTION
- Question 21
From the following information, calculate any two of the following ratios:
(a) Debt-Equity Ratio
(b) Working Capital Turnover Ratio and
(c) Return on Investment
Information: Equity Share capital Rs 50,000, General Reserve Rs 5,000; Profit and Loss
Account after tax and interest Rs 15,000; 9% Debenture Rs 20,000; Creditors Rs 15,000; Land and Building Rs 65,000; Equipments Rs 15,000; Debtors Rs 14,500 and Cash Rs 5,500. Discount on issue of shares Rs 5,000
Sales for the year ended 31-3-2011 was Rs 1,50,000. Tax rate 50%.VIEW SOLUTION
- Question 22
Following is the Income statements of Raj Ltd. For the year ended 31-3-2011:
Cost of goods sold
Prepare a common size Income Statements of Raj Ltd. for the year ended 31-3-2011.VIEW SOLUTION
- Question 23
From the following Balance Sheets of C.P. Ltd as on 31-3-2012 and 31-3-2011.
Prepare a Cash Flow Statements:
Profit and Loss Account
Provision for tax
During the year a Building having book value Rs 1,50,000 was sold at a loss of Rs 6,000 and deprecation charged on Building was Rs 16,000VIEW SOLUTION