1 P.T.O.
Series : SKS/1
Roll No.
Code No. 67/1/1Candidates must write the Code onthe title page of the answer-book.
Code number given on the right hand side of the question paper should be written on the title page ofthe answer-book by the candidate.
Please check that this question paper contains 25 questions.
Please write down the Serial Number of the questions before attempting it.
15 minutes time has been allotted to read this question paper. The question paper will be distributed at10.15 a.m. From 10.15 a.m. to 10.30 a.m., the student will read the question paper only and will notwrite any answer on the answer script during this period.
ACCOUNTANCY
[Time allowed : 3 hours] [Maximum marks : 80]
General Instructuions:
(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.
Studymate Solutions to CBSE Board Examination 2012-2013
STUDYmate Accountancy Class XII
2 P.T.O.
PART-A(Accounting for Partnership Firms and Companies)
1. When the partner capitals are fixed, where the drawings made by a partner will be recorded?
Ans. Partners Current Accounts
2. State the ratio in which the partners share profits or losses on revaluation of assets and
liabilities, when there is a change in profit sharing ratio amongst existing partners?
Ans. Old ratio
3. Name the account which is opened to credit the share of profit of the deceased partner, till the
time of his death to his Capital account.
Ans. Profit & Loss Suspense A/c
4. Give the journal entry to distribute ‘Workman Compensation Reserve’ of ` 60,000 at the time of
retirement of Sajjan, when there is no claim against it. The firm has three partners Rajat, Sajjan
and Kavita.
Ans. Journal
Date Particulars LF Debit (`) Credit (`)
Workman Compensation Reserve A/c Dr.
To Rajat’s Capital A/c
To Sajjan’s Capital A/cTo Kavita’s Capital A/c
(Being workman compensation reserve
distributed among partner in their profit ratio
(equal))
60,000
20,000
20,00020,000
5. What is meant by ‘Securities Premium’?
Ans. Securities Premium refers to the price charged by a company other and above the face value of
shares.
6. What rate of interest the company pays on calls - in advance if, it has not prepared its own
Articles of Association?
Ans. Since company has not prepared its articles Table A of companies Act, 1956 is applicable
according to which interest on calls in advance is payable at 6% p.a.
7. What is meant by issue of debentures as a collateral security?
Ans. Issue of debentures as collateral security refers to issue of debentures as secondary security over
and above the primary security.
Collateral security can be realized only when the principal security fails to meet the liability.
STUDYmate Accountancy Class XII
3 P.T.O.
8. Mona, Nisha and Priyanka are partners in a firm. They contributed ` 50,000 each as capital
three years ago. At that time Priyanka agreed to look after the business as Mona and Nisha were busy. The profits for the past three years were ` 15,000, ` 25,000 and ` 50,000 respectively.
While going through the books of accounts Mona noticed that the profit had been distributed in the ratio of 1 : 1 : 2. When she enquired from Priyanka about this, Priyanka answered that since
she looked after the business she should get more profit. Mona disagreed and it was decided to
distribute profit equally retrospectively for the last three years.
(a) You are required to make necessary corrections in the books of accounts of Mona, Nisha
and Priyanka by passing an adjustment entry.
(b) Identify the value which was not practiced by Priyanka while distributing profits.
Ans. (a) Journal
Date Particulars LF Debit (`) Credit (`)
Priyanka’s Capital A/c Dr.
To Mona’s Capital A/c
To Nisha’s Capital A/c
(Being adjustment made)
15,000
7,500
7,500
Partners Capital A/c’sDr. Cr.
Particular Mona Nisha Priyanka
Amount to be created to Partner’s Capital A/c
(–) Amount already credited to Partner’s Capital A/c
30,000
22,500
30,000
22,500
30,000
45,000
+7,500 (Cr.) +7,500 (Cr.) –15,000 (Dr.)
(b) Values: Integrity, Honesty
9. Pass the necessary journal entries for issue of 1,000, 7% Debentures of ` 100 each in the
following cases:
(a) Issued at 5% premium redeemable at a premium of 10%.
(b) Issued at a discount of 5% redeemable at par.
Ans. (a) Journal
Date Particulars LF Debit (`) Credit (`)
Bank A/c Dr.
To Debenture Application A/c(Being application money of ` 105 received on
1000 shares)
1,05,000
1,05,000
Debenture Application A/c Dr.
Loss on issue of Debenture A/c Dr.
To 7% Debenture A/c
To Premium on redemption of Debentures
To Securities Premium Reserve A/c
(Being 1000 debentures issued at 5% premium
redeemable at 10% premium)
1,05,000
10,000
1,00,000
10,000
5,000
STUDYmate Accountancy Class XII
4 P.T.O.
(b) Journal
Date Particulars LF Debit (`) Credit (`)
Bank A/c Dr.
To Debenture Application A/c
(Being application money received)
95,000
95,000
Debenture Application A/c Dr.
Discount on issue of Debentures A/c Dr.
To 7% Debenture A/c
(Being 1000 debenture issued at 5% discount
redeemable at par)
95,000
5,000
1,00,000
10. Taneja Constructions Ltd. has an outstanding balance of ` 5,00,000, 7% debentures of ` 100
each redeemable at a premium of 10%. According to the terms of redemption, the company redeemed 30% of the above debentures by converting them into shares of ` 50 each at a
premium of 20%. Record the entries for redemption of debentures in the books of Taneja
Constructions Ltd.
Ans. JournalDate Particulars LF Debit (`) Credit (`)
7% Debentures A/c Dr.
Premium on redemption of Debentures A/c Dr.To Debenture holders A/c
(Being debentures due for redemption)
1,50,000
15,0001,65,000
Debenture holders A/c Dr.
To Share Capital A/c
To Securities Premium Reserve A/c
(Being shares issued to debentures holders)
1,65,000
1,37,500
27,500
11. Abhay and Beena are partners in a firm. They admit Chetan as a partner with 1/4th share in the
profits of the firm. Chetan brings ` 2,00,000 as his share of capital. The value of the total assets
of the firm is ` 5,40,000 and outside liabilities are valued at ` 1,00,000 on that date. Give the
necessary entry to record goodwill at the time of Chetan’s admission. Also show your working
notes.
Ans. Combined Capital of Abhay & Beena= ` 5,40,000 – ` 1,00,000= ` 4,40,000
(A) Capital of the firm on the basis of Chetan’s Share
= ` 2,00,000 × 4
1= ` 8,00,000
(B) Actual Capital of Abhay, Beena & Chetan= ` 4,40,000 + ` 2,00,000= ` 6,40,000Goodwill = ` 8,00,000 – ` 6,40,000 = ` 1,60,000
Chetan’s Share of goodwill = ` 1,60,000 × 4
1= ` 40,000
STUDYmate Accountancy Class XII
5 P.T.O.
Journal
Date Particulars LF Debit (`) Credit (`)
Cash/Bank A/c Dr.
To Chetan’s Capital A/c
(Being Capital brought in by Chetan)
2,00,000
2,00,000
Chetan’s Capital/Current A/c Dr.
To Abhay’s Capital A/c
To Beena’s Capital A/c
(Being adjustment of goodwill)
40,000
20,000
20,000
12. Naresh, David and Aslam are partners sharing profits in the ratio of 5 : 3 : 7. On April 1st 2012,
Naresh gave a notice to retire from the firm. David and Aslam decided to share future profits in
the ratio of 2 : 3. The adjusted capital accounts of David and Aslam show a balance of ` 33,000 and ` 70,500 respectively. The total amount to be paid to Naresh is ` 90,500. This amount is to
be paid by David and Aslam in such a way that their capitals become proportionate to their new
profit sharing ratio. Pass necessary journal entries for the above transactions in the books of the
firm. Show your working clearly.
Ans. Total Capital of the new firm
= ` 33,000 + ` 70,500 + ` 90,500
= ` 1,94,000
David’s Share in capital = ` 1,94,000 × 2
5= ` 77,600
Aslam’s Share in Capital = ` 1,94,000 × 2
5= 1,16,400
Journal
Date Particulars LF Debit (`) Credit (`)
Cash A/c Dr.
To David’s Capital A/c
To Aslam’s Capital A/c
(Being Cash brought in by David & Aslam)
90,500
44,600
45,900
Naresh’s Capital A/c Dr.
To Cash A/c
(Being amount paid to Naresh)
90,500
90,500
13. Madhav Ltd. issued fully paid equity shares of ` 80 each at a discount of ` 5 per share for the
purchase of a running business from Gupta Bros. for a sum of ` 15,00,000.
The assets and liabilities consisted of the following:
Plant ` 5,00,000; Trucks ` 7,00,000; Stock ` 3,00,000; Machinery ` 6,00,000 and Sundry
Creditors ` 5,00,000.
You are required to pass necessary journal entries for the above transactions in the books of
Madhav Ltd.
STUDYmate Accountancy Class XII
6 P.T.O.
Ans. Journal
Date Particulars LF Debit (`) Credit (`)
Plant A/c Dr.
Trucks A/c Dr.
Stock A/c Dr.
Machinery A/c Dr.
To Sundry Creditors
To Gupta Bros.
To Capital Reserve(Being Assets & Liabilities acquired)
5,00,000
7,00,000
3,00,000
6,00,000
5,00,000
15,00,000
1,00,000
Gupta Bros. A/c Dr.
Discount on issue of Share’s A/c Dr.
To Share Capital A/c
(Being Shares issued)
15,00,000
1,00,000
16,00,000
Number of shares to be issued = 15,00,000
75= ` 20,000 Shares
14. The authorized capital of Suhani Ltd. is ` 45,00,000 divided into 30,000 shares of ` 150 each.
Out of these company issued 15,000 shares of ` 150 each at a premium of ` 10 per share. The
amount was payable as follows:
` 50 per share on application, ` 40 per share on allotment (including premium), ` 30 per share
on first call and balance on final call. Public applied for 14,000 shares. All the money was duly
received.
Prepare an extract of Balance Sheet of Suhani Ltd. as per Revised Schedule VI Part - I of the
Companies Act 1956 disclosing the above information. Also prepare ‘notes to accounts’ for the
same.
Ans. Balance Sheet of Suhani Ltd.
as on _____ as per Schedule VI Part-I
Particulars Note No. Amount (`)
I. Equity & Liabilities
(1) Shareholder’s Funds
(a) Share Capital(b) Reserves & Surplus
(c) Money received against share warrants
12
21,00,0001,40,000
Note 1.
Authorized Share Capital
30,000 Shares of ` 150 each 45,00,000
Issued Share Capital
15,000 Shares of ` 150 each 22,50,000
Subscribed Share Capital
14,000 Shares of ` 150 each 21,00,000
Called up & Paid up Share Capital
14,000 Shares of ` 150 each 21,00,000
STUDYmate Accountancy Class XII
7 P.T.O.
Note 2.
Reserves & Surplus
Securities Premium Reserve 1,40,000
15. Ali, Bimal and Deepak are partners in a firm. On 1st April, 2011 their capital accounts stood at `4,00,000, ` 3,00,000 and ` 2,00,000 respectively. They shared profits and losses in the
proportion of 5 : 3 : 2. Partners are entitled to interest on capital @ 10% per annum and salary to Bimal and Deepak @ ` 2,000 per month and ` 3,000 per quarter respectively as per the
provisions of the partnership deed.
Bimal’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of ` 50,000 p.a. Any deficiency arising on that account shall be met by Deepak. The
profits of the firm for the year ended 31st March, 2012 amounted to ` 2,00,000. Prepare Profit &
Loss Appropriation Account for the year ended on 31st March, 2012.
Ans. Profit & Loss Appropriation A/c
Dr. For the year ended 31.03.2012 Cr.
Particulars Amount (`) Particulars Amount (`)To Interest on capital
Ali 40,000
Bimal 30,000
Deepak 20,000
To Partner’s salaries
Bimal 24,000
Deepak 12,000
To Partner’s capital A/c
Ali
Bimal 22,000
(+) Def. from Deepak 2,000
Deepak 14,800
(–)Def. to Bimal 2,000
90,000
36,000
37,000
24,200
12,800
By Net Profit 2,00,000
2,00,000 2,00,000
16. The Balance Sheet of Sudha, Rahim and Kartik who were sharing profit in the ratio of 3 : 3 : 4 as
on 31st March, 2012 was as follows:
Liabilities Amount (`) Assets Amount (`)General Reserve
Bills Payable
Loan
Capitals:
Sudha 60,000
Rahim 50,000
Kartik 40,000
10,000
5,000
12,000
1,50,000
Cash
Stock
Investments
Land & Building
Sudha’s Loan
16,000
44,000
47,000
60,000
10,000
1,77,000 1,77,000
STUDYmate Accountancy Class XII
8 P.T.O.
Sudha died on June 30th 2012. The partnership deed provided for the following on the death of a
partner:
(a) Goodwill of the firm be valued at two years purchase of average profits for the last three
years.
(b) Sudha’s share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2012 amounted to ` 4,00,000 and that from 1st
April to 30th June 2012 to ` 1,50,000. The profit for the year ended 31st March, 2012 was
` 1,00,000.
(c) Interest on capital was to be provided @ 6% p.a.
(d) The average profits of the last three years were ` 42,000.
(e) According to Sudha’s will, the executors should donate her share to “Matri Chhaya - an
orphanage for girls”.
Prepare Sudha’s Capital Account to be rendered to her executor. Also identify the value being
highlighted in the question.
Ans. Dr. Sudha’s Capital A/c Cr.
ParticularAmount
(`)Particular
Amount (`)
To Sudha’s Executors A/c 1,10,350 By balance b/d
By Sudha’s Loan A/c
By General Reserve
By P & L Suspense A/c
By Interest on Capital
By Rahim’s Capital A/c
By Kartik’s Capital A/c
60,000
10,000
3,000
11,250
900
10,800
14,400
1,10,350 1,10,350
Calculation of Sudha’s Share in profits
Profit % = 1,00,000
1004,00,000
= 25%
Sudha’s Share = 25 3
1,50,000100 10
= ` 11,250
Valuation of Goodwill
Goodwill = ` 42,000 × 2 = ` 84,000
Sudha’s Share of goodwill = ` 84,000 × 3
10= ` 25,200
17. Moneyplus Company issued for public subscription 75,000 shares of the value of ` 10 each at a
discount of 10% payable as follows:
` 2 per share on application, ` 3 per share on allotment and ` 4 per share on call.
The company received applications for 1,50,000 shares. The allotment was done as under:
(a) Applicants of 15,000 shares were allotted 5,000 shares.
(b) Applicants of 70,000 shares were allotted 40,000 shares.
(c) Remaining applicants were allotted 30,000 shares.
STUDYmate Accountancy Class XII
9 P.T.O.
Money in excess to allotment was returned. Hari, a shareholder who had applied for 3,500
shares out of group B failed to pay allotment and call money. Rohan, a shareholder who was
allotted 3,000 shares paid the call money along with the allotment. Rohan also belonged to group
B.
Pass necessary journal entries to record the above transactions in the books of the company.
Show your working notes clearly.
OR
Record the journal entries for forfeiture and reissue of shares in the following cases:
(a) X Ltd. forfeited 20 shares of ` 10 each, ` 7 called up on which the shareholder had paid
application and allotment money of ` 5 per share. Out of these, 15 shares were re-issued to
Naresh as ` 7 per share paid up for ` 8 per share.
(b) Y Ltd. forfeited 90 shares of ` 10 each, ` 8 called up issued at a premium of ` 2 per share to
‘R’ for non-payment of allotment money of ` 5 per share (including premium). Out of these,
80 shares were re-issued to Sanjay as ` 8 called up for ` 10 per share.
(c) Z Ltd. forfeited 300 shares of ` 10 each issued at a discount of ` 1 per share for non-
payment of first and final call of ` 3 per share. Out of these 200 shares were reissued at
` 3 per share fully paid up.
Ans. Journal
Date Particulars LF Debit (`) Credit (`)
Bank A/c Dr.To Share Application A/c
(Being application money received)
3,00,0003,00,000
Share Application A/c Dr.
To Share Capital A/c
To Share Allotment A/c
To Bank A/c
(Being Share application money adjusted)
3,00,000
1,50,000
1,45,000
5,000
Share Allotment A/c Dr.
Discount on issue of Share A/c Dr.
To Share Capital A/c
(Being Being allotment money due)
2,25,000
75,000
3,00,000
Bank A/c Dr.
Calls in Arrears A/c Dr.
To Share Allotment A/c
To Calls in Advance A/c
(Being allotment money received)
78,200
3,000
80,000
1,200
Share First & Final Calls A/c Dr.
To Share Capital A/c
(Being share first & final call due)
3,00,000
3,00,000
Bank A/c Dr.
Calls in Advance A/c Dr.
To Share First & Final Call A/c
(Being Share Ist & Final Call money received)
2,90,800
1,200
2,92,000
STUDYmate Accountancy Class XII
10 P.T.O.
OR
JournalDate Particulars LF Debit (`) Credit (`)
(a) Share Capital A/c Dr.
To Calls in Arrears A/c
To Share Forfeiture A/c(Being 20 Shares forfeited)
140
40
100
Bank A/c Dr.
To Share Capital A/c
To Securities Premium Reserve A/c
(Being 15 Shares re-issued)
120
105
15
Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Being Amount of Share forfeiture transferred to
capital Reserve A/c)
75
75
(b) Share Capital A/c Dr.
Securities Premium Reserve A/c Dr.
To Share Allotment A/c
To Share Forfeiture A/c
(Being Shares forfeited)
720
180
450
450
Bank A/c Dr.
To Share Capital A/c
To Securities Premium Reserve A/c
(Being Shares re-issued)
800
640
160
Share Forfeiture A/c Dr.To Capital Reserve A/c
(Being Amount of Share forfeiture transferred to
capital Reserve A/c)
400400
(c) Share Capital A/c Dr.
To Discount on issue of Share A/c
To Share First & Final Call A/c
To Share Forfeiture A/c(Being Shares forfeited)
3,000
300
900
1,800
Bank A/c Dr.
Discount on issue of Share A/c Dr.
Share Forfeiture A/c Dr.
To Share Capital A/c
(Being Shares re-issued)
600
200
1,200
2,000
Share Forfeiture A/c Dr.
To Capital Reserve A/c
NIL
NIL
STUDYmate Accountancy Class XII
11 P.T.O.
18. Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1. Since
both of them are specially abled, sometimes they find it difficult to run the business on their
own. Gauri, a common friend decides to help them. Therefore, they admitted her into partnership
for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital. At the
time of Gauri’ s admission, the Balance Sheet of Sahaj and Nimish was as under:
Liabilities Amount (`) Assets Amount (`)Capitals:
Sahaj 1,20,000
Nimish 80,000
General Reserve
Creditors
Employee’s Provident Fund
2,00,000
30,000
30,000
40,000
Machinery
Furniture
Stock
Sundry Debtors
Cash
1,20,000
80,000
50,000
30,000
20,000
3,00,000 3,00,000
It was decided to :
(a) Reduce the value of stock by ` 5,000.
(b) Depreciate furniture by l0% and appreciate machinery by 5%.
(c) ` 3,000 of the debtors proved bad. A provision of 5% was to be created on Sundry Debtors
for doubtful debts.
(d) Goodwill of the firm was valued at ` 45,000.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted
firm. Identify the value being conveyed in the question.
OR
Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Inspite of repeated reminders by the authorities, they kept dumping hazardous material
into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March
2012. Prachi was deputed to realise the assets and pay the liabilities. She was paid ` 1,000 as
commission for her services. The financial position of the firm was as follows:
Liabilities Amount (`) Assets Amount (`)
Creditors
Investment Fluctuation Fund
Capitals:
Prachi
Ritika
10,000
4,500
40,000
30,000
Furniture
Stock
Investments
Cash
Ishita’s Capital
37,000
5,500
15,000
9,000
18,000
84,500 84,500
Following was agreed upon:
Prachi took over investments for ` 12,500. Stock and furniture realized ` 41,500.
There was old furniture which has been written off completely from the books. Ritika agreed to
take away the same at the price of ` 3,000. Compensation paid to the employees amounted to `8,000. This liability was not provided in the above Balance Sheet. Realization expenses
amounted to ` 1,000. Prepare Realisation Account, Partners’ Capital Accounts and Cash A/c to
close the books of the firm.
Also identify the value being conveyed in the question.
STUDYmate Accountancy Class XII
12 P.T.O.
Ans. Revaluation A/cDr. Cr.
Particular Amount (`) Particular Amount (`)To Stock A/c
To Furniture A/c
To Debtors
To Provision for Bad debts
5,000
8,000
3,000
1,350
By Machinery A/c
By Loss on Revaluation
Sahaj 7567
Nimish 3,783
6,000
11,3500
17,350 17,350
Partners Capital A/c’sDr. Cr.
Particular Sahaj Nimish Gauri Particular Sahaj Nimish GauriTo Revaluation A/cTo Bal. c/d
7,5671,42,433
3,78391,217
–77,883
By bal. b/dBy Gen. Reserve A/c
By Premium A/cBy Cash A/c
1,20,00020,000
10,000
80,00010,000
5,000
––
–77,883
1,50,000 95,000 77,883 1,50,000 95,000 77,883
Balance Sheetas on _______________
LiabilitiesAmount
(`)Assets
Amount (`)
Capital A/c’sSahaj 1,42,433Nimish 91,217Gauri 77,883
CreditorsEmployee’s Provident Fund
3,11,53330,00040,000
MachineryFurnitureStockDebtors 30,000(–) Bad Debts 3,000
27,000(–) Provision 1,350Cash
1,26,00072,00045,000
25,6501,12,883
3,81,533 3,81,533
Values: Equal opportunity and respect for disabled.
OR
Ans. Realization A/cDr. Cr.
Particular Amount (`) Particular Amount (`)To Sundry Assets
Furniture 37,000Stock 5,500Investments 15,000
To Cash A/cCreditors 10,000Compensation 8,000
To Prachi’s Capital A/c (Expense)
57,500
18,0001,000
By Sundry LiabilitiesCreditors 10,000InvestmentFluctuation Fund 4,500
By Prachi’s Capital A/c(Investment)By Cash (Stock & Furniture)By Ritika’s Capital A/cBy Loss on Realisation
Prachi 2,500Ritika 1,500Ishita 1,000
14,500
12,50041,5003,000
5,00076,500 76,500
STUDYmate Accountancy Class XII
13 P.T.O.
Dr. Partners Capital A/c’s Cr.Particular Prachi Ruchi Ishita Particular Prachi Ruchi Ishita
To Bal. b/d
To Realization A/c
To Realisation A/c
(loss)
To Cash A/c
12,500
2,500
26,000
3,000
1,500
25,500
18,000
1,000
By bal. b/d
By Realisation A/c
By Cash A/c
40,000
1,000
30,000
19,000
41,000 30,000 19,000 41,000 30,000 19,000
Cash A/c
LiabilitiesAmount
(`)Assets
Amount (`)
To Balance b/dTo Realisation A/c
To Ishita’s Capital A/c
9,00041,500
19,000
By Realisation A/cBy Prachi’s Capital A/c
By Ritika’s capital A/c
18,00026,000
25,500
69,500 69,500
Values: Safety, Pollution control, Commitment to community.
PART-B(Financial Statements Analysis)
19. Under which type of activity will you classify ‘Dividend received by a finance company’ while
preparing Cash Flow Statement?
Ans. Operating Activity
20. What is meant by ‘Cash from operating activities’ ?
Ans. Cash flow from operating activities implies cash inflow/outflow from principal revenue generating
activities of an enterprise.
21. State anyone objective of Financial Statements Analysis.
Ans. To measure the earning capacity
or To ascertain Profitability/Solveney
or To make comparative study with other firms.
22. Under what heads and sub-heads the following items will appear in the Balance Sheet of a
company as per revised Schedule VI, Part - I of Companies Act 1956.
(i) Premium on redemption of Debentures
(ii) Loose tools
(iii) Balances with banks
STUDYmate Accountancy Class XII
14 P.T.O.
Ans.
Items Heading Subheading
(i) Premium on redemption of
Debentures
Non Current Liabilities Other non-current liabilities
(ii) Loose Tools Current Assets Inventories
(iii) Balance with banks Current Assets Cash & Cash equivalents
23. (a) Compute ‘Working Capital Turnover Ratio’ from the following information:
Cash Sales ` 1,30,000; Credit Sales ` 3,80,000; Sales Returns ` 10,000; Liquid Assets
` 1,40,000; Current Liabilities ` 1,05,000 and Inventory ` 90,000.
(b) Calculate ‘Debt Equity Ratio’ from the following information:
Total Assets ` 3,50,000; Total Debt ` 2,50,000 and Current Liabilities ` 80,000.
Ans. (a) Working Capital turnover ratio
= Net Sales
Net Working Capital
Net Sales = (Cash Sales + Credit Sales) – Sales return
= ` 1,30,000 + ` 3,80,000 – ` 10,000
= ` 5,00,000
Current Assets = Liquid Assets + Inventory
= ` 1,40,000 + ` 90,000
= ` 2,30,000
Current liabilities = ` 1,05,000
Working Capital = Current Assets – Current Liabilities
= ` 2,30,000 – ` 1,05,000
= ` 1,25,000
Working Capital turnover ratio = 5,00,000
1,25,000= 4 times
(b) Debt equity ratio = Long term debts
Shareholders funds
Long term debts = Total debts – Current Liabilities
= ` 2,50,000 – ` 80,000
= ` 1,70,000
Shareholders funds = Total Assets – Total debts
= ` 3,50,000 – ` 2,50,000
= ` 1,00,000
Debts equity ratio = 1,70,000
1,00,000= 1.7
STUDYmate Accountancy Class XII
15 P.T.O.
24. From the following Statement of Profit and Loss of Suntrack Ltd., for the years ended 31st March
2011 and 2012, prepare a ‘Comparative Statement of Profit & Loss’.
Particulars Note No. 2011-12 (`) 2010-11 (`)
Revenue from operations
Other Income
Expenses
20,00,000
12,00,000
13,00,000
12,00,000
9,00,000
10,00,000
Ans. Comparative Profit & Loss A/c
(of Sinatreak Ltd. For year ended 31-3-11 & 31-3-12)
ParticularsNote No.
2011-12 (`)
2010-11 (`)
Absolute Charge (`)
% Charge
I. Revenue from operations
II. Add other Incomes
20,00,000
12,00,000
12,00,000
9,00,000
8,00,000
3,00,000
40%
25%
III. Total revenue (I + II)
IV. Less Expenses
32,00,000
13,00,000
21,00,000
10,00,000
11,00,000
3,00,000
34.37%
23.07%
Net Profit before tax (III – IV) 19,00,000 11,00,000 8,00,000 42.10%
25. Following is the Balance Sheet of Wisben Ltd. as on 31st March 2012:
Particulars Note No. 2012 (`) 2011 (`)
I. Equity & Liabilities :
(1) Shareholders Funds
(a) Share capital
(b) Reserves and Surplus (Profit & Loss
Balance)
(2) Non-Current Liabilities
Long term borrowings
(3) Current Liabilities
Trade Payables
7,00,000
2,00,000
3,00,000
30,000
6,00,000
1,10,000
2,00,000
25,000
Total 12,30,000 9,35,000
II. Assets:
(1) Non-Current Assets
(a) Fixed assets
Tangible Assets
(2) Current Assets
(a) Inventories
(b) Trade Receivables
(c) Cash and Cash equivalents
11,00,000
70,000
32,000
28,000
8,00,000
60,000
40,000
35,000
Total 12,30,000 9,35,000
STUDYmate Accountancy Class XII
16 P.T.O.
Adjustments :
During the year a piece of machinery of the book value of ` 80,000 was sold for ` 65,000.
Depreciation provided on tangible assets during the year amounted to ` 2,00,000.
Prepare a Cash Flow Statement.
Ans. Cash Flow statement (Indirect method)
of Wisben Ltd. As on 31-3-12 (as per AS-3 reserved)
Particulars Debits (`) Amount (`)
A. Cash Flows from operating Activities:
Profit before tax
Adjustments for :
Add : Depreciation on Machinery
Loss on sale of Machinery
90,000
2,00,000
15,000
Operating profit belong working capital changes
Changes in working capital:
Add: Decrease in trade receivables
Income in Trade Payables
Less: Increase in inventories
3,05,000
8,000
5,000
(10,000)
Net Cash from operating activities 3,08,000
B. Cash Flows from investing Activities:
Sales of Machinery (W.N. 1)
Purchase of Machinery (W.N. 1)
65,000
(5,80,000)
Net Cash used in investing Activities (5,15,000)
C. Cash flows from financing Activities:
Issue of Share Capital
Long term borrowings
1,00,000
1,00,000
Net Cash inflow from financing Activities 2,00,000
Net Cash inflow during the year
Add: Cash equivalents in beginning
(7,00)
35,000
Cash equivalents at end 28,000
Working Notes:
Dr. Fixed Assets A/c Cr.
Particulars ` Particulars `To Balance b/d
To Bank A/c
(Purchase of Assets)
(Balancing Figure)
8,00,000
5,80,000
By Depreciation A/c
By Bank A/c
By P & L A/c (Loss on sale)
By Balance c/d
2,00,000
65,000
15,000
11,00,000
13,80,000 13,80,000
STUDYmate Accountancy Class XII
17 P.T.O.
PART-C(Computerised Accounting)
19. State anyone advantage of ‘Computerized Accounting System’.
20. Name anyone DBMS software which processes the data in flexible manner.
21. What is meant by Relational Database?
22. Differentiate between generic and tailored software packages on any three bases.
23. Explain the method of ‘Codification’.
24. What is DBMS? Explain its two advantages.
25. Calculate the formula on Excel for computing the amount of (a) Dearness Allowance (b) Net
Salary (c) Tax Payable from the following information:
(a) For Dearness Allowance, Basic Salary upto ` 40,000 at 20% and at 25% above it.
(b) For Net Salary, adding Dearness Allowance to Basic Pay.
(c) For Tax payable at a uniform rate of 30%.
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STUDYmate Accountancy Class XII
18 P.T.O.
Studymate Solutions to CBSE Board Examination 2012-2013Series : SKS/1 Code No. 67/1/2
UNCOMMON QUESTION ONLY
8. Pass the necessary journal entries for the issue of debentures in the following cases: [3](a) ` 30,000, 12% debenture of ` 100 each issued at a discount of 5% redeemable at par.
(b) ` 60,000, 12% debenture of ` 100 each issued at a discount of 5% redeemable at ` 105.
Sol. (a) Journal
Date Particulars L.F. Debit (`) Credit (`)
Bank A/c Dr.
To Debenture Application A/c
(Being Application money received)
28,500
28,500
Debenture Application A/c Dr.
Discount on issue of Debentures A/c Dr.
To 12% Debentures A/c
(Being debentures issued at a discount of 5%)
28,500
1,500
30,000
(b)
Date Particulars L.F. Debit (`) Credit (`)
Bank A/c Dr.
To Debenture Application A/c
(Being Application money received)
57,000
57,000
Denture application Dr.
Loss on issue of Debentures A/c Dr.
To 12% Debentures A/c
To Premium on Redemption A/c
(Being debentures issued at a redeemable of
premium of 5%)
57,000
6,000
60,000
3,000
10. Dhara Construction Ltd. Had an outstanding balance of ` 7,50,000, 8% debentures of ` 150
each redeemable at a premium of 5%. According to the terms of redemption, the company
redeemed 25% of the above debentures by converting them into shares of ` 10 each at a premium of 50%. Record the entries for redemption of debentures in the books
of Dhara Construction Ltd. [3]
STUDYmate Accountancy Class XII
19 P.T.O.
Sol. (a) Journal of Dhara Constructions
Date Particulars L.F. Debit (`) Credit (`)
8% Debentures A/c Dr.
Premium on redemption A/c Dr.
To Debenture holders A/s
(Being debentures & premium on redemption
due to debenture holder)
1,87,500
9,375
1,96875
Debenture holders A/c Dr.
To Share Capital A/c
To Securities Premium reserve A/c
(Being 13,25 shares of ` 10 each issued at a
premium of ` 5 per share)
1,96,875
1,31,250
65,625
Working note No. 1
Numbers of Share =1,96,875
13,12515
share .
STUDYmate Accountancy Class XII
20 P.T.O.
Studymate Solutions to CBSE Board Examination 2012-2013
Series : SKS/1 Code No. 67/1/3UNCOMMON QUESTION ONLY
9. Pass the necessary journal entries for the issue of debentures in the following case:
(a) ` 40,000, 12% debentures of ` 100 each issued at a premium of 5% redeemable at par.
(b) ` 70,000, 12% debentures of ` 100 each issued at a premium of 5% redeemable at
` 110.
Sol. Journal
Date Particulars L.F. Debit (`) Credit (`)
(a) Bank A/c Dr.
To Debenture Application & Allotment A/c
(Being debenture application money received)
42,000
42,000
Debenture Application & Allotment A/c Dr.
To 12% Debentures A/c
To Securities Premium Reserve A/c
(Being debenture issued at premium,
redeemable at par.)
42,000
40,000
2,000
(b) Bank A/c Dr.
To Debenture Application & Allotment A/c
(Being Debenture application money received)
73,500
73,500
Debenture Application & Allotment A/c Dr.
Loss on issue of Debenture A/c Dr.
To 12% Debenture A/c
To Securities Premium Reserve A/c
To Premium on issue of Debenture A/c
(Being debentures redemption at premium &
redeemable at premium)
73,500
7,000
70,000
3,500
7,000
10. Forex Construction Ltd. Has an outstanding balance of ` 22,00,000, 9% debentures of ` 100
each redeemable at a premium of 15%. According to the terms of redemption, the company redeemed 40% of the above debentures by converting them into shares of ` 10 each at a
premium of 60%. Record the entries for redemption of debentures in the books of Forex
Construction Ltd.
STUDYmate Accountancy Class XII
21 P.T.O.
Sol. Journal
Date Particulars L.F. Debit (`) Credit (`)
9% Debenture A/c Dr.
Premium on Redemption of Debenture A/cDr.
To Debenture A/c
(Being amount due to debenture holders)
8,80,00
1,32,000
10,12,000
Debenture holder A/c Dr.
To Share Capital A/c
To Securities Premium A/c
(Being share issued)
10,12,000
6,32,500
3,79,500
No. of Shares to be issued
10,12,00063,250
16
``
`Shares.
15. Asgar, Chaman and Dholu are partners in a firm. Their capital accounts stood at
` 6,00,000; ` 5,00,000 and ` 4,00,000 respectively on 1st April, 2011. They shared profits and
losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ 7,000 per month and ` 10,000 per quarter respectively as
per the provision of the partnership deed.
Dholu’s share of profit (excluding interest on capital but including salary) is guaranteed at a
minimum of ` 1,10,000 p.a. Any deficiency arising on the account shall be met by Asgar. The
profits for the year ended 31st March, 2012 amounted to ` 4,24000. Prepare Profit and Loss
Appropriation Account for the year ended 31st March, 2012. [6]
Sol.
P & L Appropriation Account
Dr. for the year ended 31.03.2012 Cr.
Particulars Amount (`) Particulars Amount (`)To Int. on Capital
Asgar 48,000
Chaman 40,000
Dholu 32,000
To Partner’s salary
Chaman 84,000
Dholu 40,000
To Partner’s capital A/c
Asgar 78,222
(-) Def. to Dholu 11,333
Chaman
Dholu 58,667
(+) Def.from Asgar 11,333
1,20,000
1,24,000
66,889
39,111
70,000
By Net Profit 4,20,000
4,20,000 4,20,000
STUDYmate Accountancy Class XII
22 P.T.O.
16. The Balance Sheet of Sadhna, Mohit and Rohit who were sharing profits in the ratio of 1 : 2 : 3
as on 31st March 2012 was as follows: [6]
Liabilities Amount (`) Assets Amount (`)General Reserve
Bills Payable
Loan
Capital : Sadhna : 75,000
Mohit : 1,00,000
Rohit : 1,50,000
60,000
20,000
24,000
3,25,000
Cash
Stock
Investments
Land & Building
Rohit’s loan
36,000
85,000
58,000
2,20,000
30,000
4,29,000 4,29,000
Rohit died on September 1st , 2012. The partnership deed provided for the following on the death of partner:
(a) Goodwill of the firm be valued at two yeas purchase of average profits for the last three
years.
(b) Rohit’s share of profit or loss till the date of death was to be calculated on the basis of
sales. Sales for the year ended 31st Mach, 2012 amounted to ` 6,00,000 and that from
1st April to 1st September 2012 to 3,50,000. The profit for the year ended 31st March,
2012 was calculated as ` 1,50,000.
(c) Interest on capital was to be provided @ 8% p.a.
(d) The average profits of the last three years were ` 72,000.
(e) According to Rohit’s will, the executors should donate her share to ‘Matri Chaya-an
orphanage for girls’.
Prepare Rohit’s Capital Account to be rendered to her executor. Also identify the value being
highlighted in the question.
Ans. Dr. Rohit’s Capital Account Cr.
Particulars Amount Particulars Amount
To Rohit’s Executors A/c 3,30,750 By Bal. b/d
By Rohit’s Loan
By General Reserve
By Int. on Capital
By P & L Suspense A/c
By Sadhna’s Capital A/c
By Mohit’s Capital A/c
1,50,000
30,000
30,000
5,000
43,750
24,000
48,000
3,30,750 3,30,750
19. Under which type of activity will you classify ‘Refund of Income Tax received’ While preparing
the Cash Flow Statement? [1]
Sol. Operating Activity.
STUDYmate Accountancy Class XII
23 P.T.O.
20. State with reason whether ‘Purchase of fixed asset on long term deferred payment’ would result
in inflow, outflow or no flow of cash. [1]
Sol. No. flow of cash since both the aspects in this transaction are long term. (If in case any down
payment or installment is paid during the year there will be outflow to the extent of payment
made).
21. State one advantage of Financial Statements Analysis. [1]
Sol. Helpful in assessing the earning capacity
OR
Judging the managerial efficiency.
22. Under what heads and sub-heads the following items with appear in the Balance Sheet of a
company as per revised schedule VI Part-I of the Companies Act 1956.
(i) Mining Rights
(ii) Encashment of employees earned leave payable on retirement
(iii) Vehicles. [3]
Sol.
No. Items Headings Subheading
(i) Mining Rights Fixed Assets Intangible Assets
(ii) Encasement of employees
earned leave
Long term borrowings Long term provision
(iii) Vehicles Fixed Assets Tangible
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