Question

Paper 2014 Compt. Outside Delhi set 3

CBSE Class 12 ACCOUNTANCY

General Instruction:

(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 part B and C.

(iv) All parts of the questions should be attempted at one place.

PART – A

(Accounting for Partnership Firms and Companies)

1. What is meant by over-subscription? (1)

2. Give the meaning of a ‘Bond’. (1)

3. Identify a situation for the compulsory dissolution of a partnership firm. (1)

4. Name the accounts which are maintained for the partners when capitals of the partners
are fixed. (1)

5. List any two items that need adjustments in books of accounts of a firm at the time of
admission of a partner. (1)

6. What is meant by ‘paid up capital’? (1)

7. What is meant by sacrificing ratio? (1)

8. Mukesh and Ramesh are partners sharing profits and losses in the ratio of 2 : 1
respectively. They admit Rupesh as partner with 1/4 share in profits with guarantee that his
share of profit shall be at least Rs. 55,000. The net profit of the firm for the year ending 31st
March, 2013 was Rs. 1,60,000. Prepare Profit and Loss Appropriation Account. (3)

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9. P Ltd. redeemed 10,000, 8% debentures of Rs. 100 each which were issued at par, by
converting them into equity shares of Rs. 100 each issued at a premium of 25%.

Pass necessary journal entries in the books of P Ltd. (3)

10. Fena Ltd. issued Rs. 7,00,000 12% debentures of Rs. 100 each at a premium of 5%
redeemable at a premium of 20%. Pass necessary journal entries at the time of issue of
debentures. (3)

11. X Ltd. purchased a running business from G Ltd. for a sum of Rs. 18,00,000 payable by
issue of equity shares of Rs. 100 each at a premium of Rs. 20 per share. The assets and
liabilities consisted of the following:

Plant – Rs. 3,50,000: Land – Rs. 6,00,000

Stock – Rs. 4,50,000 and Creditors – Rs. 1,00,000

Pass necessary journal entries in the books of X Ltd. for the above transactions. (4)

12. Priya and Divya were partners in a firm sharing profits in the ratio of 7 : 3 respectively.
Their capitals were Rs. 1,60,000 and Rs. 1,00,000 respectively. They admitted Hina in the firm
on 1st January, 2013 as a new partner for 1/5 share in the future profits. Hina brought <
1,20,000 as her capital. Calculate the value of goodwill of the firm and record necessary
journal entries on Hina’s admission. (4)

13. (a) K, L and Z are partners sharing profits in the ratio of 4 : 3 : 2 respectively. L retired
and surrendered 1/9th of his share of profit to K and remaining in favour of Z. Calculate the
new profit sharing ratio of K and Z.( 4)

(b) Arun, Varun and Charan are partners sharing profits in the ratio of 1/2, 3/10 and 1/5
respectively. Varun retired from the firm and Arun and Charan decided to share future
profits in 3 : 2 ratio. Calculate gaining ratio of Arun and Charan.

14. B Ltd. was registered with an authorised capital of Rs. 20,00,000 divided into equity
shares of Rs. 10 each. The company invited applications for the issue of 1,00,000 shares.
Applications for 96,000 shares were received. All calls were made and were duly received
except the final call of Rs. 2 per share on 2,000 shares. All these shares were forfeited and
later on re-issued at Rs. 18,000 as fully paid. (4)

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(i) Show how ‘Share Capital’ will appear in the Balance Sheet of B Ltd. as per Schedule VI,
Part I of the Companies Act, 1956.

(ii) Also prepare ‘Notes to Accounts’ for the same.

15. Hot, Cold and Warm were partners. They were sharing profits in the ratio 3 : 2 : 1
respectively. They all decided that in the event of death of a partner the amount payable to
his legal representative will be donated for constructing community service centre in the
village. (6)

Due to ill health, Cold died on 30th June, 2013. The Balance Sheet of Hot, Cold and Warm on
31st March, 2013 was as follows:

On the date of Cold’s death i.e. on 30th June, 2013, the following was agreed upon:

(i) Goodwill is to be valued at two years purchase of average profit of last three completed
years which were : In first year Rs. 35,000; in second year Rs. 30,000 and in third year Rs.

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25,000.

(ii) Cold’s share of profit till the date of his death will be calculated on the basis of average
profits of last three years.

(iii) Land was undervalued by Rs. 5,000 and Investments were overvalued by Rs. 10,000.

(iv) Provision for doubtful debts will be created at 5% of debtors.

(v) Claim of workmen’s compensation was estimated at Rs. 8,000.

Prepare Cold’s capital account to be presented to his representatives and identify a value that
Hot, Cold and Warm wanted to communicate to the society.

16. A, B and C were partners. They started business in one of the remote tribal areas of
Orissa. They were interested in the development of the tribal community by providing good
education and health. (6)

On 31st March, 2013, after making adjustments for profits and drawings their capitals were A
– Rs. 4,00,000, B – Rs. 3,00,000 and C – Rs. 2,00,000. The drawings of the partners were A – Rs.
4,000 per month, B – Rs. 3,000 per month and C – Rs. 2,000 per month.

The profit of the firm for the year ended 31st March, 2013 was Rs. 6,00,000. Subsequently it
was found that the interest on capital @ 6% p.a due had been omitted.

Showing your working notes clearly, pass necessary adjustment entry for the above. Also
identify any two values highlighted in the above question.

17. W and R were partners in a firm sharing profits in the ratio of 3 : 2 respectively. On 31st
March, 2013, their Balance Sheet was as follows: (8)

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B was admitted as a new partner on the following conditions:

(i) B will get 4/15th share of profits.

(ii) B had to bring Rs. 15,000 as his capital.

(iii) B would pay cash for his share of goodwill based on years purchase of average

profit of last 4 years.

(iv) The profits of the firm for the years ending 31st March, 2010, 2011, 2012 and 2013 were
Rs. 10,000; Rs. 7,000; Rs. 8,500; and Rs. 7,500 respectively.

(v) Stock was valued at Rs. 10,000 and provision for doubtful debts was raised up to Rs. 500.

(vi) Plant was revalued at Rs. 20,000.

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Prepare Revaluation Account, Partners’ Capital A/cs and the Balance Sheet of the new firm.

OR

Kumar, Shyam and Ratan were partners in a firm sharing profits in the ratio of 5 : 3 : 2
respectively. They decided to dissolve the firm with effect from 01-04-2013. On that date the
Balance Sheet of the firm was as follows:

The dissolution resulted in the following:

(i) Plant of Rs. 40,000 was taken over by Kumar at an agreed value of Rs. 45,000 and
remaining plant realised Rs. 50,000.

(ii) Furniture realised Rs. 40,000.

(iii) Motor van was taken over by Shyam for Rs. 30,000.

(iv) Debtors realised Rs. 1,000 less.

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(v) Creditors for Rs. 20,000 were untraceable and the remaining creditors were paid in full.

(vi) Realisation expenses amounted to Rs. 5,000.

Prepare the Realisation Account, Capital Accounts of Partners and Bank Account of the firm.

18. Bhagwati Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 10 each. The
amounts were payable as follows: (8)

On application – Rs. 3 per share

On allotment – Rs. 5 per share

On first and final call – Rs. 2 per share

Applications were received for 3,00,000 shares and pro-rata allotment was made to all the
applicants. Money overpaid on application was adjusted towards allotment money. B, who
was allotted 3,000 shares, failed to pay the first and final call money. His shares were
forfeited. Out of the forfeited shares, 2,500 shares were reissued as fully paid up @ Rs. 8 per
share.

Pass necessary journal entries to record the above transactions in the books of Bhagwati Ltd.

OR

(a) A company forfeited 200 shares of Rs. 20 each, Rs. 15 per share called up on which Rs. 10
per share had been paid. Directors reissued all the forfeited shares to B as Rs. 15 per share
paid up for a payment of Rs. 10 each. Give journal entries in the books of the company for
forfeiture and reissue of shares.

(b) A Ltd. forfeited 100 equity shares of the face value of Rs. 10 each, for the non-payment of
first call of Rs. 2 per share. Rs. 6 per share had already been called and paid. These shares
were subsequently reissued as fully paid at the rate of Rs. 7 per share. Give journal entries in
the books of the company for forfeiture and reissue of shares.

Part B

(Financial Statement Analysis)

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19. Which item is assumed to be 100 while preparing common size Statement of Profit and
Loss? (1)

20. Dividend paid by a financial company is classified under which type of activity, while
preparing cash flow statement? (1)

21. What is meant by ‘Cash Flow Statement’? (1)

22. State under which major headings the following items will be presented in the Balance
Sheet of a company as per revised Schedule VI Part I of the Companies Act, 1956:( 3)

(i) Trade Marks

(ii) Capital Redemption Reserves

(iii) Income received in advance

(iv) Stores and Spares

(v) Office Equipments

(vi) Current Investments

23. From the following Calculate: (4)

(a) Operating Profit Ratio; and

(b) Working Capital Turnover Ratio.

Amount Rs.

(i) Revenue from operation 2,00,000

(ii) Gross Expenses 75,000

(iii) Office Expenses 15,000

(iv) Selling Expenses 26,000

(v) Interest on Debentures 5,000

(vi) Accidental Losses 12,000

(vii) Income form Rent 2,500

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 (viii) Commission Received 2,000

(ix) Current Assets 60,000

(x) Current Liabilities 10,000

24. On the basis of the following information extracted from the Statement of Profit and Loss
for the year ended 31st March, 2012 and 2013, prepare a Comparative Statement of Profit
and Loss: (4)

Particulars Note No. 31.03.2013 31.03.2012

Revenue from operations 10,00,000 8,00,000

Expenses 5,00,000 4,00,000

Other Income 50,000 10,000

Tax Rate 50% 50%

25. . Prepare a Cash Flow Statement from the following Balance Sheet: (4)

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Notes to Accounts

Note No. 1

Additional Information:

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(i) An old machinery having book value of Rs. 50,000 was sold for Rs. 60,000.

(ii) Depreciation provided on Machinery during the year was Rs. 30,000.

Part C

(Computerised Accounting)

19. What is represented by the 5th to 7th digits allotted to an account in codification? (1)

20. What is relational database? (1)

21. What are the components of Computerised Accounting System? (1)

22. Explain any two features of Computerised Accounting System. (3)

23. What is meant by ‘Data Audit’ and ‘Data Vault’? (4)

24. Explain Modules, Pages, Reports, and Queries as Database objects. (4)

25. (a) Name and explain the financial function of spreadsheet which calculates the periodic
payment for an annuity, assuming equal payments and a constant rate of interest. (4)

(b) Calculate the formula from the following information on Excel for computing Tax
Deductible:

Basic salary up to Rs. 20,000 at 30% and above it at 35%

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