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CBSEClass122017-18
AccountancySamplePaper-02
GeneralInstruction:-
1.Allquestionarecomplusory.
2.MarksareGivenalongwiththeirquestions.
PARTA(PartnershipandCompanyaccounts)
Q1whatarethenumberofmonthstakenforcalculationofinterestondrawingsifdrawings
arechargedattheendofeachquarter?(1)
Q2ABandCarepartnerswithnopartnershipdeed.Aadvances10,000asloantothefirm
anddemandsinterest@12%p.a.IsAcorrectgivereasons?(1)
Q3whatisthemaximumdiscountthatcanbeofferedincaseofreissueofshares.(1)
Q4Passjournalentryforreissueofshares-1000shareswerereissuedat70,80paidup.(1)
Q5calculateinterestondebentures-rs5,00,0007%debenturesissuedon1stapril2013.(1)
Q6ABCarepartnerssharingprofitsandlossesintheratioof3:2:1.Bretiresfromthefirm.
Calculategainingratioandnewratio.(1)
Q7Thisquestioncontainstwoparts–(3)
a)Gaurilimitedconverted45010%debenturesof100Eachatapremiumof10%by
convertingthemintoequitysharesof100eachissuedatapremiumof25%.Passjournal
entry.
b)SLtdtookaloanfromPNBof1,00,000byissuing10,000debenturesof12eachascollateral
security.Passjournalentryandshowitinthebalancesheet.
Q8Mltdissued2000sharesof10eachatapremiumof5payable–3onapplication5on
allotment(includingpremium)andbalanceonfirstandfinalcall.Preparethecashbookof
thecompany.(3)
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Q9RohitMohitandSohitarepartnerssharingprofitandlossesintheratioof2:1:1..Their
capitalson31stmarch2017are5,30,0006,40,000and7,90,000.Theirdrawingswererohit=
70,000mohit=60,000andsohit=10,000.Partnershipdeedprovidedtochargeintereston
capital@10%paandinterestondrawings@5%.Prepareprofitandlossappropriation
account.(3)
Q10Designsunlimitedisinagarmentbusiness.itdecidedtoinstall100toiletsinschool
underswachhbharat.ItpurchasedmaterialfromIndiantraderslimitedcosting225000.
Paymentwasmade5000throughchequeandremainingbyissuingequitysharesof10each
at10%premium.Passjournalentries.(3)
Q11ABandCarepartnerssharingprofitsintheratioofcapitals.Theircapitalswere50,000
25,000and25,000.Thefollowingomissionsweremade-
i)Interestoncapital@5%
ii)SalarytoC1000permonth
iii)Theprofitfortheyearwas33000whichwasdistributedequally.Passjournalentry.(4)
Q12PawanIqbalandRickarepartnerssharingprofitsintheratioof2:2:1.Fromapril2016
theydecidedtoshareprofitsintheratioof1:2:2.Onthatdatefollowingbalancesappeared–
profitandlossaccount(debitbalance)=40,000generalreserve=140,000deferredrevenue
expenditure=20,000.Passadjustingentry.(4)
Q13KSandRarepartnerssharingprofitsandlossesintheratioof3:2:1.on31stmarch2016
theirbalancesheetwasasfollows-(6)
Liabilities Amount Assets Amount
Creditors
Generalreserve
Capitals–
K-75000
S-70000
R-50000
72000
24000
195000
291000
Cashatbank
Investments
Patents
Stock
Debtors
Building
Machinery
70,000
50000
15000
25000
20000
75000
36000
291000
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Rdiedon31stmay2016
i)Goodwillofthefirmbevaluedat3yearspurchaseofaverageprofitsoflast5years,which
were2011-400002012-400002013-30,0002014–40,0002015-50,000
ii)Richashareofprofitstillthedateofdeathtobecalculatedonaverageprofitoflasttwo
years.
Preparerichacapitalaccount.
Q14followingisthebalancesheetofharshandsureshwhoshareprofitsintheratioof3:2(6)
Liabilities Amount Assets Amount
Creditors
Generalreserve
Capitals–
Harsh-5000
Suresh-4000
31500
1250
9000
Plantandmachinery
Stock
Debtors10,000
-provision(500)
Bank
Profitandlossaccount
21000
3000
9500
5750
2500
41750 41750
Thefirmwasdissolvedon31stmarch.Plantandmachineryrealized16000andstock2500.
9000werecollectedfromdebtors.Creditorswerepaid30,000.Preparerealizationaccount
partner’scapitalaccountandbankaccount.
Q15a)ABCarepartnerssharingprofitandlossesintheratioof5:3:2.Passjournalentries-
(3)
i)Thevalueoffixedassets=1,00,000.Fixedassetsareovervaluedby20%
ii)Makeprovisionforoutstandingexpenses=10,000
iii)Goodwillofthefirmwasvaluedat50,000.Thenewratiowas3:2.Cretiredfromthefirm.
(b)Altdpurchasedrs25000ofitsowndebenturesofrs100eachatrs90reedemedata
premiumof10%.Passjournalentriesforcancellation.(3)
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Q16radhalimitedissued40,000sharesofrs10eachatapremiumofrs2persharepayable–
4onapplication5onallotment(includingpremium)andoncall3pershare.applications
werereceivedfor60,000shares.allotmentwasmadeonproratabasistotheapplicantsof
48000shares.excessmoneywasadjustedtowardsallotment.Ctowhom1600shareswere
allottedfailedtopayallotmentandJtowhom2000shareswereallottedfailedtopaycall
money.theseshareswereforfeitedandreissuedatrs15fullypaidup.Passjournalentries.
(8)
Or
Q16fltdissued2,00,000sharesof20eachpayable4onapplication6onallotmentand
balanceonfirstandfinalcall.Applicationwerereceivedfor3,00,000sharesandprorata
allotmentwasmadetoallapplicants.moneyoverpaidonapplicationwasadjustedtowards
allotment.Sohanwhoappliedfor3000sharesfailedtopayallotmentandcallmoney.His
shareswereforfeited.Halfoftheseshareswerereissuedatrs18fullypaidup.Passjournal
entries.(8)
Q17AandDarepartnerssharingprofitsintheratioof3:2.Therebalancesheetwasas
follows–
Liabilities Amount Assets Amount
Creditors
Employeesprovidentfund
Workmencompensationfund
Capitals
A-26000
B-13000
38500
4000
2500
39000
86500
Cash
Stock
Prepaidexpenses
Debtors9400
-Provision(400)
Machinery
Building
Furniture
2000
15000
1500
9000
19000
35000
5000
86500
i)Risadmittedwithacapitalofrs16000andthenewratiois5:3:2
ii)Rbringsnecessaryamountofgoodwillincash
iii)Stockisdepreciatedat5%
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iv)Provisionfordoubtfuldebtstobemadeat500
v)Furnituredepreciatedby10%
vi)Buildingvaluedat40,000
vii)Capitalsofpartnerstobeadjustedonthebasisofnewpartner’scapitalmakingnecessary
adjustmentincash.
Preparenecessaryaccounts.(8)
Part–B(Analysisoffinancialstatements)
Q18underwhichtypeofactivitywillyouclassifypurchaseofinvestmentswhilepreparing
cashflowstatement.(1)
Q19cashflowfromoperatingactivities=23000
Cashflowfromfinancingactivity=15000
Netincreaseincashandcashequivalent–22000
Calculatecashflowfrominvestingactivity.(1)
Q20preparecomparativebalancesheet–(4)
Particulars 31stmarch2015 31stmarch2016
Equityandliability
Shareholderfund
a)Sharecapital
b)Reserveandsurplus
Noncurrentliabilities
Longtermborrowings
c)Currentliabilities
Assets
Noncurrentassets
a)Fixedassets
2,00,000
2,00,000
40,000
60,000
5,00,000
4,00,000
3,00,000
2,00,000
1,60,000
1,00,000
7,60,000
6,00,000
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Currentassets
1,00,000
500000
1,60,000
760,000
Q21drawthebalancesheetofacompanyasperscheduleIIIofcompaniesact2013.(4)
Q22fromthefollowinginformationcalculate–(4)
a.)Quickratio
b.)Returnoninvestment.
Sales=4,00,000openingstock50,000closingstock60,000currentassets2,00,000working
capital(60,000)netprofit=140000totalassets=6,00,000
Q23preparecashflowstatement–(6)
Particulars Noteno 2016 2017
Sharecapital
Reserveandsurplus
Noncurrentliabilities
Loan
Currentliabilities
Creditors
Provisionfortax
Assets
Fixedassets
Investments
Currentassets
Inventories
Cashandcashequivalent
225000
178000
-
84000
37500
524500
200000
25000
225000
74500
524500
225000
189000
135000
67000
5000
621000
160000
30000
332000
99000
621000
Notestoaccount
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Particulars 2016 2017
Reserveandsurplus
Generalreserve
Statementofprofitandloss
150000
28000
155000
34000
Adjustments-
a)Investmentscosting4000wassoldfor4250
b)Provisionfortaxmadewas4500
c)Dividendpaidduringtheyear20,000
d)Apartoffixedassetscosting5000wassoldfor6000andtheprofitwasincludedinprofit
andlossaccount.
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ClassXII
AccountancySamplePaper-02
[Solutions]
PartA
Ans.14.5
Ans.2Aisincorrectasintheabsenceofpartnershipdeedinterestonloanpayableis6%pa
Ans3theamountinshareforfeitedaccountisthemaximumdiscountthatcanbeofferedat
thetimeofreissueofshares.
Ans4
Particulars LF Debit Credit
Banka/c(1000*70)DR
Shareforfeiteda/cDR
Tosharecapitala/c(1000*80)
(being1000sharesreissued)
7000
1000
8000
8000
8000
Ans5interestondebentures=500000*7/100=35000
Ans6oldratio=3:2:1
Bretiressonewratio=3:1andgainingratio=3:1
Ans7a)
Particulars LF Debit Credit
10%debenturesa/c(450*100)dr
Premiumonredemptiona/cdr(450*10)
Todebentureholder
(beingdebenturesredeemedatapremiumof10%)
Debentureholdera/cdr
45000
4500
49500
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Toequitysharecapitala/c(396*100)
Tosecuritiespremiuma/c(396*25)
49500
39600
9900
Noofshares=49500/100+25=396
Q7b)journalentry
Particulars LF Debit Credit
Debenturesuspense/c(10,000*12)
To%debentures
(beingdebenturesissuedascollateralsecurity)
1,20,000
1,20,000
Balancesheetextract
Particulars Noteno Amount
Noncurrentliabilities
Longtermborrowings
1
1,00,000
Notestoaccount
Particulars Noteno Amount
Longtermborrowings
LoanfromPNB
%Debentures1,20,000
-debenturesuspense(120,000)
1
1,00,000
Ans8
Particulars Amount Particulars Amount
Toshareapplication
6000
10,000
30,000
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Toshareallotment
Tosharefirstandfinalcall
14000
30,000
Bybalc/d
30,000
Ans9profitandlossappropriationaccount
Particulars Amount Particulars Amount
Tointerestoncapital
Rohit60,000
Mohit70,000
Sohit80,000
Toprofit(transferredtopartnercapitalaccount)
Rohit250000
Mohit125000
Sohit125000
2,10,000
5,00,000
710,000
Bynetprofit
Byintondrawings
Rohit3500
Mohit3000
Sohit500
703000
7000
7,10,000
interestondrawings=
Rohit=70,000*5/100=3500
Mohit=60,000*5/100=3000
Sohit=10,000*5/100=500
Note–monthsarenottakenforinterestondrawingsasperannumisnotwrittenwiththe
percentage.
Forinterestoncapital
Calculationofopeningcapital
Particulars Rohit Mohit Sohit
Closingcapital
+drawings
530,000
70,000
6,00,000
6,40,000
60,000
7,00,000
790,000
+10,000
8,00,000
6,00,000*10/100=60,000
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7,00,000*10/100=70,000
800000*10/100=80,000
Ans10
Particulars Lf Debit Credit
Assetsa/cdr
ToIndiantradersltd
(beingmaterialtakenfromIndiantraders)
Indiantradersltddr
Tobanka/c
(beingamountpaidbycheque)
Indiantradersltddr
Tosharecapitala/c(20,000*10)
Tosecuritiespremium(20,000*1)
(beingsharesissuedtoIndiantraders)
2,25,000
5000
2,20,000
450,000
2,25,000
5000
2,00,000
20,000
450,000
Noofshares=2,20,000/10+1=20,000
Ans11
Particulars LF Debit Credit
A’scapitala/cdr
B’scapitala/cdr
ToC‘scapitala/c
(beingadjustingentrypassed)
500
5750
6250
Workingnote
Particulars A B C Firm
Interestoncapital
Salary
2500
1250
1250
12000
(5000)
(12000)
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Wrongprofit
Adjustingprofit
(11000)
8000
(500)
(11000)
4000
(5750)
(11000)
4000
6250
33000
(16000)
0
Ans12
Particulars LF Debit Credit
Rickcapitala/cdr
Topawancapitala/c
(beingadjustingentrypassed)
16000
16000
sacrificingratio=oldratio-newratio
2/5-1/5=1/5
2/5-2/5=0
1/5-2/5=-1/5
Generalreserve–profitandloss-deferredrevenueexpenditure
=140,000-40,000-20,000=80,000
80,000*1/5=16000
Ans13R’scapitalaccount
Particulars Amount Particulars Amount
ToR’sexecutorloana/c
75250
75250
Bybalb/d
Bygeneralreserve
ByK’scapitala/c
ByS’scapitala/c
Byprofitandlosssuspensea/c
50,000
4000
12000
8000
1250
75250
Q14realisationaccount
Particulars Amount Particulars Amount
21000Bycreditors
31500
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ToPlantandmachinery
ToStock
ToDebtors
Tobanka/c
3000
10,000
30,000
64000
Byprovisionfordoubtfuldebts
Bybank
Plantandmachinery16000
Stock2500
Debtors9000
Bylosstransferredtopartner
capitalaccount
Harsh2700
Suresh1800
500
27500
4500
64000
Partner’scapitalaccount
Particulars Harsh Suresh Particulars Harsh Suresh
Toloss
Toprofitandloss
account
Tobank
2700
1500
1550
5750
1800
1000
1700
4500
Bybalb/d
Bygeneral
reserve
5000
750
5750
4000
500
4500
Bankaccount
Particulars Amount Particulars Amount
Tobalb/d
Torealizationa/c
5750
27500
33250
Byrealization
Byharshcapitala/c
Bysureshcapitala/c
30,000
1550
1700
33250
Ans15a)
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Particulars LF DEBIT CREDIT
a)Revaluationa/cdr
Tofixedassets
(beingassetsdepreciated)
b)Revaluationa/cdr
Tooutstandingexpenses
(beingprovisioncreatedforoutstanding
expenses)
c)A‘scapitala/cdr
B’scapitala/cdr
ToC‘scapitala/c
(beingadjustmentforgoodwillmadefor
retiringpartner)
20,000
10,000
6000
4000
40,000
20,000
10,000
10,000
40,000
b.
Particulars Lf Debit Credit
Owndebenturesa/cdr(250*90)
Tobanka/c
(beingdebenturespurchasedfromopen
market)
%debenturesa/cdr
Premiumonredemptiona/cdr
Toowndebentures
Togainoncancellation
(beingdebenturescancelled)
Gainoncancellationa/cdr
Tocapitalreserve
22500
25000
2500
5000
22500
22500
5000
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(beinggainoncancellationtransferredto
capitalreserve)
55000
5000
55000
Ans16
Particulars Lf Debit Credit
Banka/cdr
Toshareapplicationa/c
(beingapplicationreceived)
Shareapplicationa/cdr
Tosharecapital
Toshareallotment
Tobanka/c
(beingapplicationdueandmoney
adjustedonallotment)
Shareallotmenta/cdr
Tosharecapitala/c
Tosecuritiespremiuma/c
(beingallotmentdue)
Banka/cdr(200000-32000-6720)
Toshareallotment/c
(beingallotmentreceived)
Sharefirstcalla/cdr
Tosharecapital
(beingfirstcalldue)
240000
240000
200000
161280
120000
240000
160000
32000
48000
120000
80000
161280
120000
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Banka/cdr(120000—10800)
Tosharefirstandfinalcalla/c
(beingmoneyreceivedonfirstcall)
ForC
Sharecapitala/cdr
Securitiespemiuma/cdr
Toshareallotment
Tosharefirstcalla/c
Toshareforfeited/c
(beingsharesforfeited)
ForJ
Sharecapitala/cdr
Tosharefirstcalla/c
Toshareforfeiteda/c
(beingsharesforfeited)
Banka/cdr
Tosharecapitala/c
Tosecuritiespremium
(beingsharesreissued)
Shareforfeiteda/cdr
Tocapitalreserve
(beingamounttransferredtocapital
reserve)
109200
16000
3200
20,000
54000
21680
109200
6720
4800
7680
6000
14000
36000
18000
21680
Or
Particulars Lf Debit Credit
12,00,000
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Banka/cdr
Toshareapplicationa/c
(beingapplicationreceived)
Shareapplicationa/cdr
Tosharecapital
Toshareallotment
(beingapplicationdueandmoney
adjustedonallotment)
Shareallotmenta/cdr
Tosharecapitala/c
(beingallotmentdue)
Banka/cdr(1200000-400,000-8000)
Toshareallotment/c
(beingallotmentreceived)
Sharefirstcalla/cdr
Tosharecapital
(beingfirstcalldue)
Banka/cdr(2000000—20,000)
Tosharefirstandfinalcalla/c
(beingmoneyreceivedonfirstcall)
ForC
Sharecapitala/cdr
Toshareallotment
Tosharefirstcalla/c
12,00,000
1200000
792,000
20,00,000
1980,000
40,000
12,00,000
800,000
4,00,000
1200000
792000
20,00,000
1980,000
8000
20,000
12,000
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Toshareforfeited/c
(beingsharesforfeited)
Banka/cdr
Shareforfeiteda/cdr
Tosharecapitala/c
(beingsharesreissued)
Shareforfeiteda/cdr
Tocapitalreserve
(beingamounttransferredtocapital
reserve)
18000
2000
4000
20,000
4000
Ans17Revaluationaccount
Particulars Amount Particulars Amount
Tostock
Toprovision
Tofurniture
Toprofit(transferredto
partner’scapitalaccount)
A-2190
B-1460
750
100
500
3650
5000
Bybuilding
5000
5000
PARTNER’SCAPITALACCOUNT
PARTICULARS A D R PARTICULARS A D R
32625 17895 16000 26000 13000
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Tobalc/d
32625
17895
16000
Bybalb/d
Byrevaluation
Bygeneral
reserve
Byworkmen
compensation
reserve
Bycash
Bypremiumfor
goodwill
2190
1500
1500
1435
32625
1460
1000
1000
1435
17895
16000
16000
Tobalc/d
40,000
40,000
24000
24000
16000
16000
Bybalb/d
Bycasha/c
32625
7375
40,000
18695
6105
24000
16000
16000
Casha/c
Particulars Amount Particulars Amount
Tobalb/d
ToR‘scapitala/c
Topremiumforgoodwill
ToA‘scapitala/c
ToD’scapitala/c
2000
16000
2870
7375
6105
34350
Bybalc/d
34350
34350
Balancesheet
Liabilities Amount Assets Amount
Creditors
Employeesprovidentfund
Capitals
A
D
R
38500
4000
40,000
24000
16000
Cash
Stock
Prepaidinsurance
Debtors
Machinery
34350
14250
1500
8900
19000
40000
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122500
Building
Furniture
4500
122500
Hiddengoodwill=totalcapital-adjustedcapital
=80,000-65650
=14350
Capitaladjustment=totalcapital=16000*10/2
=80,000
Divide80,000intheratioof5:3:2
Part–B
Ans18purchaseofinvestmentisconsideredasinvestingactivity.
Ans19–cashflowfrominvestingactivity=22000-23000-15000
=(16000)=cashusedininvestingactivity
Ans20
Particulars 2015 2016 Absolutechange Percentage
Equityandliability
Shareholderfund
a)Sharecapital
b)Reserveandsurplus
Noncurrentliabilities
Longtermborrowings
Currentliabilities
Assets
Noncurrentassets
2,00,000
2,00,000
40,000
60,000
5,00,000
400,000
300,000
2,00,000
1,60,000
1,00,000
7,60,000
1,00,000
0
120,000
40,000
2,60,000
50%
0
300%
66.67%
52%
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a)Fixedassets
Currentassets
1,00,000
5,00,000
6,00,000
1,60,000
7,60,000
2,00,000
60,000
2,60,000
50%
60%
52%
Ans21a)inventories
b)Tradereceivables
c)Cashandcashequivalent
d)Currentinvestments
Ans22quickassets=currentassets-closingstock
=2,00,000-60,000=140,000
Workingcapital=currentassets–currentliabilities
-60,000=2,00,000-cl
Currentliabilities=140,000
Quickratio=quickassets/currentliabilities
=140,000/140,000=1:1
Bcapitalemployed=totalassets-currentliabilities
=600,000-140,000
=4,60,000
Returnoninvestment=netprofitbeforetax/capitalemployed*100
=140,000/360,000*100=38.89%
Ans23CashflowstatementAS-3revised
Particulars Amount Amount
I)cashflowfromoperatingactivities
netprofitbeforetaxandextraordinaryitems
adjustmentfornonoperatingitems
adddepreciation35000
lessprofitonsaleofinvestment(250)
lessprofitonsaleoffixedassets(1000)
operatingprofitbeforeworkingcapitalchanges
workingcapitalchanges
35,500
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adddecreaseincurrentassetsandincreasein
currentliabilities
lessincreaseincurrentassetsanddecreasein
currentliabilities
inventories(107000)
creditors(17000)
cashusedinoperatingactivities
lesstaxpaid
netcashusedinoperatingactivities
II)cashflowfrominvestingactivity
addsaleoffixedassets
addsaleofinvestment
lesspurchaseofinvestment
cashflowfrominvestingactivity
III)Cashflowfromfinancingactivity
Issueofloan
Lessdividendpaid
Cashflowfromfinancingactivity
Netincreaseincashandcashequivalent
Addopeningcashandcashequivalent
=closingcashandcashequivalent
33750
69250
((124000)
(54750)
(37000)
6000
4250
(9000)
135000
(20,000)
(91750)
1250
115000
24500
78500
99000
investment
Particulars Amount Particulars AMOUNT
TOBALB/D
Toprofitandlossaccount
Tobank(purchase
25000
250
9000
34250
Bybank(sale)
Bybalc/d
4250
30,000
34250
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Fixedassets
Tobalb/d
Toprofitandlossaccount
2,00,000
1000
Bybank(sale)
Bydep
Bybalc/d
6000
35000
160,000
201000 201000
Provisionfortax
Particulars Amount Particulars Amount
Taxpaid
Tobalc/d
37000
5000
42000
Bytaxmade
Bybalb/d
4500
37500
42000
