251 TOPPER Sample Papers TOPPER SAMPLE PAPER 5 ACCOUNTANCY XII Time Allowed - 3 Hrs. Max. Marks - 80 General Instructions:- 1. This question paper contains two parts A & B only. 2. All parts of questions should be attempted at one place. 3. There is internal choice in some questions. Part – A Partnership and Company Accounts. Q 1. Give two examples of capital receipts which are directly added to capital fund. (1) Q 2. Write the formula for calculating interest on drawings when date of withdrawal is not specified. (1) Q 3. Average super profit of a firm for last 5 years is Rs.18,000.00 and normal rate of return in a similar type of business is 10%. What is the value of goodwill of the firm? (1) Q 4. What is meant by preferential allotment of shares? (1) Q 5. What is the treatment of accumulated profits and reserves at the time of admission of a partner? (1) Q 6. Calculate what amount of expenses will be posted to income and expenditure account account for year ended 31.12.2007 Expenses paid during the year 2007 32,300 Prepaid expenses on 01.01.2007 800 Prepaid expenses on 31.12.2007 1,000 Outstanding expenses on 01.01.2007 3,000 Outstanding expenses on 31.12.2007 1,200 (3) Q 7. Excel Ltd., issued 4,00,000, 9% debentures of Rs.50 each, payable on application. Pass journal entries at the time of following situations : (3) i) issued at par, redeemable at 10% premium ii) issued at 5% premium, redeemable at 10% premium Q 8. Mona Ltd. acquired assets of Rs.58 lakhs and took over creditors of Rs.5 lakhs from Ram Enterprises for a consideration of Rs.55 lakhs. Mona Ltd. paid Rs.10 lakhs by Bank draft and for balance it issued 8% debentures of Rs.100 each at premium of 25%. Record the necessary journal entries. (3) Q 9. M, P and A are partners in a firm having fixed capitals of Rs.80,000, 40,000 and 50,000 respectively sharing profits as 7:6:4. The rate of interest on capital was agreed at 10% per annum but was wrongly credited to them as 12%p.a. Give necessary entry to adjust the balances of partner’s capital accounts. (4) Q 10. Ram & Mohan were partners in a firm sharing profits in ratios of 4:1 on 1st April 2007 They admitted Sohan as a new partner for 1/3 rd share of profits in the firm. They fixed the new profit sharing ratio as 4:2:3. The profit and loss account on date of admission showed a balance of Rs.32,000(Dr.). the firm had a Reserve of Rs.1,00,000.
General Instructions:-1. This question paper contains two parts A & B only.2. All parts of questions should be attempted at one place.3. There is internal choice in some questions.
Part – A Partnership and Company Accounts.
Q 1. Give two examples of capital receipts which are directly added to capital fund. (1)
Q 2. Write the formula for calculating interest on drawings when date of withdrawal is not specified. (1)
Q 3. Average super profit of a firm for last 5 years is Rs.18,000.00 and normal rate of return in a similar type of business is 10%. What is the value of goodwill of the firm? (1)
Q 4. What is meant by preferential allotment of shares? (1)
Q 5. What is the treatment of accumulated profits and reserves at the time of admission of a partner? (1)
Q 6. Calculate what amount of expenses will be posted to income and expenditure account account for year ended 31.12.2007
Expenses paid during the year 2007 32,300
Prepaid expenses on 01.01.2007 800
Prepaid expenses on 31.12.2007 1,000
Outstanding expenses on 01.01.2007 3,000
Outstanding expenses on 31.12.2007 1,200 (3)
Q 7. Excel Ltd., issued 4,00,000, 9% debentures of Rs.50 each, payable on application. Pass journal entries at the time of following situations : (3)
i) issued at par, redeemable at 10% premium
ii) issued at 5% premium, redeemable at 10% premium
Q 8. Mona Ltd. acquired assets of Rs.58 lakhs and took over creditors of Rs.5 lakhs from Ram Enterprises for a consideration of Rs.55 lakhs. Mona Ltd. paid Rs.10 lakhs by Bank draft and for balance it issued 8% debentures of Rs.100 each at premium of 25%. Record the necessary journal entries. (3)
Q 9. M, P and A are partners in a firm having fixed capitals of Rs.80,000, 40,000 and 50,000 respectively sharing profits as 7:6:4. The rate of interest on capital was agreed at 10% per annum but was wrongly credited to them as 12%p.a. Give necessary entry to adjust the balances of partner’s capital accounts. (4)
Q 10. Ram & Mohan were partners in a firm sharing profits in ratios of 4:1 on 1st April 2007 They admitted Sohan as a new partner for 1/3rd share of profits in the firm. They fixed the new profit sharing ratio as 4:2:3. The profit and loss account on date of admission showed a balance of Rs.32,000(Dr.). the firm had a Reserve of Rs.1,00,000.
Sohan is to bring Rs.60,000 as premium for his share of goodwill. Show calculations clearly and pass necessary journal entries to record the above transactions. (4)
Q 11. Poonam Ltd. has a balance of Rs.55,00,000 in its profit and loss account. Instead of declaring a dividend, Poonam Ltd. decided to redeem its Rs.50,00,000, 8% debentures at a premium of 10%.
Pass necessary journal entries in books of company for redemption of debentures. (4)
Q 12. The following is receipts and payments accounts of City Club for year ended 31.12.2007.
Receipts Rs. Payment Rs.
To Balance (Jan. 1) 5,000 By affiliation fee to Pradesh Club 1,000
To subscription By furniture (July 1) 3,000
2006 500 By sports expenses 2,500
2007 15000 By sundry expenses 15,200
2008 1000 16,500 By Balance (Dec. 31) 14,000
To life membership fee 12,000
To sale of scrap 200
To interest on sports fund
investment 2,000
35,700 35,700
a) The Club has 1600 members each paying annual subscription of Rs.10. Subscription of Rs.450 are still in arrears for 2006.
b) On Jan 01,2007 the club had furniture of Rs.2,000, sports fund and 10% sports fund investment valued at Rs.30,000 each.
c) Provide depreciation on furniture at 20% p.a.
d) Capital fund on 01.01.2007 was Rs. 7,950.
Prepare Income and Expenditure account for year ended Dec.31,2007 and balance sheet of club as at that date. (6)
Q 13. You are given the Balance Sheet of Jassal, Jaipaul &Jyoti. Who are partners sharing profit in ratio of 2:2:1 as on 31 March 2007
Liabilities Rs. Assets Rs.
Creditors 40,000 Goodwill 30,000
Reserve Fund 25,000 Fixed Assets 60,000
Capitals : Stock 10,000
Jassal 30,000 S. Debtors 25,000
Jaipaul 25,000 Cash at bank 10,000
Jyoti 15,000 70,000
1,35,000 1,35,000
Jaipaul died on 15th June 2007. According to the deed, his legal representative were entitled to :
i) Balance in capital A/c & Interest on capital @ 12% p.a.
ii) Share in goodwill valued on the basis of thrice the average of past four years profits.
iii) Share in profits upto date of death on the basis of average profits of past four years profits.
Profits for the years ending on March 31 of 2004, 2005, 2006, 2007 respectively we Rs.15,000, Rs.17,000, Rs.19,000 & Rs.13,000.
Jaipaul’s legal representative was to be paid the amount due. Jassal and Jyoti continued as partners by taking over Jaipaul’s share equally.
Prepare Jaipaul’s capital A/c and his executor’s account, Rs.44,158 was paid immediately and balance if any was to be transferred to his loan A/c. (6)
Q 14. a) White Ltd. issued 8,00,000, 8 % debentures of Rs.100 each redeemable at a premium of 10%. According to terms of redemption, the company redeemed 25% of the above debentures by converting them into shares of Rs.50 each issued at a premium of 60%.
Pass journal entries regarding redemption of debentures.
b) X Ltd. forfeited 100 shares issued at 10% discount to Mahesh on which he had paid Rs.2 per share. Out of these 80 shares were reissued @ Rs.6 to Suresh, Rs.8 paid up.
Pass journal entries. (3+3)
Q 15. AB Ltd. invited application for 40,000 equity shares of Rs.10 each issued at a discount of 10%. The amount was payable as follows:-
On application- Rs.4, On allotment- Balance
The issue was undersubscribed to the extent of 15,000 shares. Mohan to whom 400 shares were allotted failed to pay the allotment money. His shares were forfeited and were reissued @ Rs.9.50 per share, fully paid up. Pass journal entries in the books of AB ltd, if call-in-arrears account is maintained. (8)
OR
X Ltd. invited application for issue of 10,00,000 equity shares of Rs.10 each payable as follows :
On application & allotment-Rs.3, On first call-Rs.4, On second & final call- Balance Application for 15,00,000 shares were received & pro-rata allotment was made to all the applicants. Excess application money was adjusted towards first call money only. When first call was made, a shareholder who had applied for 15,000 share did not pay first call money. His shares are forfeited. Second call was not made. Pass journal entries.
Q 16. A & B are partners in a firm sharing profits in ratio 3:2. Their balance sheet as at 31.12.2007
Stood as under :-
Liabilities Rs. Assets Rs.
Capital Accounts Machinery 33,000
A 35,000 Furniture 15,000
B 30,000 Investments 20,000
General Reserve 10,000 Stock 23,000
Bank loan 9,000 Debtors 19,000
Creditors 36,000 (-) Provision 2,000 17,000
Cash 12,000
1,20,000 1,20,000
On that date they admitted C into partnership for 1/4 share in profit on the following terms:
i) C brings capital proportionate to his share. He brings Rs.7,000 in cash as his share of Goodwill.
iv) An outstanding bill for repairs Rs.1000 will be brought in books.
v) Half of the investments were to be taken over by A and B in their profit sharing ratio at book value.
vi) Bank loan is paid off.
vii) Partners agreed to share future profits in ratio 3:3:2.
viii) Prepare revaluation account, partners capital accounts and balance sheet after admission of C into the partnership. (8)
OR
A, B and C are partners in a firm sharing profits in ratio of 3:2:1. Their balance sheet as at 31.12.2007 was as under :
Liabilities Rs. Assets Rs.
Creditors 30,000 Cash in hand 18,000
Bills payable 18,000 Debtors 25,000
Reserve fund 12,000 (-) Provision 3,000 22,000
Capital accounts : Stock 18,000
A 40,000 Furniture 30,000
B 40,000 Machinery 70,000
C 30,000 1,10,000 Goodwill 12,000
1,70,000 1,70,000
B retired on 1.1.08, on following terms :-
i) Provision for doubtful debts will be raised by Rs. 1,000.
ii) Stock will be depreciated by 10% and furniture by 5%.
iii) There is an outstanding claim for damages of Rs.1100 and it is to be provided for in the books.
iv) Creditors will be written back by 6,000.
v) Goodwill of firm will be valued at 24,000 which is not to be shown in books of new firm.
vi) B is paid in full with cash brought in by A and C in such a manner that their capitals are in proportion to their profit sharing ratio 3:2. Prepare Revaluation A/c, Partner’s Capital A/c’s and Balance Sheet of A and C. (8)
Part – B Analysis of Financial Statements
Q 17. Goods costing Rs.5,000 are sold for Rs.7,000 on credit. What will be the effect of this transaction on Debtors turnover ratio? (1)
Q 18. Debtors are at Rs.20,000, Rs.15,000 are written off and remaining debtors were collected after allowing a discount a discount of 2%. Is there any cash flow from this transaction? If yes, how much? (1)
Q 19. Receipt of interest on investment by a bank is classified under which kind of activity while preparing cash flow statement? (1)
Q 20. Give three examples of each secured loans and miscellaneous expenditure? (3)
Q 21. a) The current assets of a company are Rs.1,26,000.00 and current ratio is 3:2 and the inventories are Rs.2,000. Find out liquid ratio.
b) Inventory turnover ratio is 3 times, sales are Rs.1,80,000 opening stock is 2000 more than the closing stock. Calculate opening and closing stock when goods are sold at 20% profit on cost. (2+2)
Q 22. Prepare comparative income statement:
Particulars 2006 2007
Net Sales 4,12,000 3,20,000
Cost of goods sold 3,12,000 2,30,000
Gross profit 1,00,000 90,000
Administrative expenses 25,000 18,000
Profit before tax 75,000 72,000
Tax 40% 30,000 28,800 (4)
Q 23. Prepare cash flow statement as on March 31,2007:
Liabilities 2006 2007 Assets 2006 2007
Share Capital 80,000 1,60,000 Goodwill 30,000 20,000
General reserve 4,000 10,000 Building 40,000 90,000
Profit & Loss A/c 50,000 60,000 Machinery 49,000 98,000
Creditors 5,000 3,000 Cash in hand 20,000 30,000
Bills payable 15,000 25,000 Debtors 15,000 20,000
1,54,000 2,58,000 1,54,000 2,58,000 Depreciation provided during the year on Machinery was Rs.10,000. (6)
1. (a) Legacies
(b) Life Membership Fees (1/2 x 2)
2. Interest on drawings = Amount of drawings x Rate /100 x 6/12 (1)
3. Goodwill of the firm = 18,000 x 100/10 = 1,80,000 (1)
4. A preferential allotment is one in which entire allotment is made at a pre-determined price to the pre identified people who wish to take strategic stake in the company. (1)
5. Journal Entries
Date Particulars L.F. Rs.(Dr.) Rs.(Cr.)
Accumulated Profit/Reserves A/c Dr. To old partners(Being accumulated profit/reserves distributed among the old partners in old ratio)
6. Income & Expenditure A/c for the year ended 31.12.07
Expenditure Rs. Income Rs.
Expenses paid during the year 32,300Add: O/s (end) 1,200Add: Prepaid (Beg) 800Less O/s (Beg) (3,000) Less: Prepaid (End) (1,000) 30,300
(1/2 x 6)
7. (i) Journal Entries
Date Particulars L.F. Rs.(Dr.) Rs.(Cr.)
Bank A/c Dr. To Debenture application & allotment A/c(Being Debenture application money received)
2,00,00,0002,00,00,000
Debenture application & allotment A/c Dr.Loss on issue of debenture A/c Dr. To 9% Debentures A/c To Premium on Redemption A/c(Being application money transferred to Debenture A/c.)
2,00,00,00020,00,000
2,00,00,00020,00,000
(ii) Journal Entries
Date Particulars L.F. Rs.(Dr.) Rs.(Cr.)
Bank A/c Dr. To Debenture application & allotment A/c(Being Debenture application money received)
2,10,00,0002,10,00,000
Debenture application & allotment A/c Dr.Loss on issue of debenture A/c Dr. To 9% Debentures A/c To Securities Premium A/c To Premium on Redemption A/c(Being application money transferred to Debenture A/c.)
2,10,00,00020,00,000
2,00,00,00010,00,00020,00,000
( ½ + 1 + ½ + 1)
8. Journal Entries
Date Particulars L.F. Rs.(Dr.) Rs.(Cr.)
Assets A/c Dr.Goodwill A/c Dr. To Creditors A/c To Ram Enterprises (Being Mona Ltd. took over the assets & liabilities of Ram enterprises)
58,00,0002,00,000
5,00,00055,00,000
Ram Enterprises Dr. To Bank A/c(Being Mona Ltd. paid through bank draft)
Capital Fund 7,950Less: Deficit 350Life membership FeesSports Fund 30,000Add: Int. on S.F.I 2,000Add: Accrued int. 1,000Less: Sports Exp. (2,500)Advance Subscriptions
By balance b/dBy Reserve fundBy Jassal’s capital A/cBy Jyoti’s capital A/cBy P & L suspense A/c(16,000 x 2/5 x 2.5/12)By Interest on capital(25,000 x 12/100 x 2.5/12)
25,00010,0009,6009,600
1,333
625
56,158 56,158
Jaipaul’s Executor’s A/c
Particulars Rs. Particulars Rs.
To Bank A/c 44,158 By Jaipaul’s capital A/c 44,158
44,158 44,158
(6)
14. (a)
Date Particulars L.F. Rs.(Dr.) Rs.(Dr.)
8% Debentures A/c Dr.Premium on Redemption A/c Dr.To Debentures holders A/c (Being amt. due to Debentures holders on conversion)
2,00,00,00020,00,000
22,00,00,000
Debentures holders A/c Dr. To Equity share capital A/c To Securities premium A/c (Being issue of 1,10,00,000 equity shares at a premium of Rs.30)
(A) Cash flow from Operating ActivitiesNet profit before taxAdd: Non operating expenses Depreciation 10,000 Goodwill W/O 10,000Add: Increase in Bills payableLess: Increase in debtorsLess: Decrease in creditorsAdd: Increase in Bills payableOperating profit before taxLess: tax paidCash flow from Operating Activities
20,00010,000(5,000)(2,000)
16,000
23,000
39,000
------- 39,000
(B) Cash Flow from Investing ActivitiesPurchase of MachineryPurchase of BuildingsCash used in Investing Activities
(59,000)(50,000)
(1,09,000)
(C) Cash flow from Financing Activities Issue of share capital
Cash used in Financing Activities
80,000
80,000
Net increase in cash ( A+B+C)Add: Opening balance of cash & equivalentsClosing balance of cash & equivalents
