CBSE Sample Papers for Class 12 Accountancy Solved 2016 Set 1

Part A
(Accounting for Partnership Firms and Companies)

1.Who should compensate to whom in case of change in profit sharing ratio of existing partners?

3.How will you treat accumulated profits/losses at the time of dissolution of the firm?

4.Can securities premium be distributed as dividend?

6.Warren Ltd issued 2,00,000 shares of 1100 each payable as Rs 20 on application(on 1st May, 2012); Rs 30 on allotment (on 1st January, 2013); Rs 20 on first call (on 1st July, 2013) and the balance on final call (on 1st February, 2014). Rohan, a shareholder holding 20,000 shares did not pay the first call on due date. The second call was made and Rohan paid the first call amount alongwith the second call. All sums due were received. Calculate the amount received on 1st February

7.What do you mean by debentures issued as collateral security. Also give the accounting treatment of debentures issued as collateral security

8.X, Y and Z were partners sharing profits and losses in the ratio of 5 : 3 : 2. They decided to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st January, 2015. They decided to record the effect of the following, without affecting the book values.
(i)Profit and loss account Rs 30,000. (ii) Advertisement suspense account Rs 10,000. Pass the necessary adjusting entries.

9.Ajay Ltd forfeited the share of Mr A, who had applied for 200 shares of Rs 10 each at a premium of Rs 2 per share but was alloted only 100 shares on pro-rata basis. Mr A failed to pay allotment money of Rs 5 per share including premium and on subsequent failure to pay first and final call of Rs 5 per share, his share were forfeited. Out of these, 50 shares were re-issued at per share fully paid-up. Pass necessary journal entries regarding re-issue and forfeiture of shares.

10.Global Ltd purchased the business of Kuldeep Bros for Rs 1,80,000 payable in fully paid shares of Rs 100 each. What entries will be made in the books of Global Ltd, if such issue is (a) at par, (b) at a premium of 20%?

11.Kanu, Sunny and Richa were partners sharing profits in the ratio of 3 : 2 :1. On 31st March, 2015 their balance sheet stood as under

12.A and B were partners in a firm sharing profits in the ratio of 3 : 2. They admitted C as a new partner for share in the profits of the firm. The new profit sharing ratio will be 2 : 2 : 3. C brought X Rs 2,00,000 as his capital and X 50,000 as his share of goodwill, half of which was withdrawn by A and B from the firm.
(i)Which value is adhered by C by bringing goodwill in the firm?
(ii)Calculate sacrificing ratio and pass necessary journal entries.

Part B

(Financial Statements Analysis)

18.Cash receipts from sale of goods by a trading company will come under which activity while preparing cash flow statement?

19.Accountant of Solutions Ltd, a company engaged in the business of financing,has shown interest earned under investing activity, while preparing cash flow statement. Is the treatment correct?

20.(a) Under what major and sub headings will you classify the following items in the balance sheet of a company as per Schedule III Part I of the Companies Act, 2013.
(i) Computer software under development (ii) Sundry debtors
(iii) Bill discounted but not matured (iv) Loose tools
(v) Balance with Banks (vi) Calls-in-advance
(b) What is meant by common size statement?

22.

Answers

Part A

(Accounting for Partnership Firms and Companies)

1.Who should compensate to whom in case of change in profit sharing ratio of existing partners?
Ans. Unless otherwise agreed upon, the gaining partners should compensate the sacrificing partner.

2.X_r a partner in M/S XYZ & Co, has advanced a loan of Rs 1,00,000 to the firm.Rate of interest was not decided but X demands interest on loan @ 12% per annum at the year end. Is the demand of X justified?
Ans. No, as in the absence of any agreement, interest on loan is provided @ 6% per annum.

3.How will you treat accumulated profits/losses at the time of dissolution of the firm?
Ans. Accumulated profits/losses will be transferred to partner’s capital accounts in their profit sharing ratio.

4.Can securities premium be distributed as dividend?
Ans. No, as securities premium reserve can only be used for the purposes stated under Sections 52(2) of the Companies Act, 2013.

5.R Q and R were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1.At the time of admission of a partner, the goodwill of the firm was valued at Rs 6,00,000. The accountant of the firm passed the entry in the books of accounts and thereafter showed goodwill at Rs 6,00,000 as an asset in the balance sheet. Was he correct in doing so? Why?
Ans. No, the accountant’s decision is not correct because according to AS-26, goodwill should be recorded in the books only when consideration in money or money’s worth has been paid for it.

7.What do you mean by debentures issued as collateral security. Also give the accounting treatment of debentures issued as collateral security
Ans. When debentures are issued as secondary security against the loan in addition to primary or principal security, it is known as issue of debentures as collateral security.
Debentures issued as collateral security can be dealt in two ways
(i)First Method (Without passing journal entry)
In this method, no journal entry is passed in the books for issue of debentures as collateral security. However, the fact that debentures have been issued as collateral security is disclosed in balance sheet, by way of information below debentures, which are shown as long-term borrowings under non-current liabilities or as short-term borrowings under current liabilities.
(ii)Second Method (With journal entry)
Debentures issued as collateral security may be recorded in the books of accounts by passing the following journal entry
Debenture Suspense A/c ^Dr [This appears on assets side]
To X% Debentures A/c [This appears on liabilities side]
When the loan is paid, the above entry is cancelled by passing its reverse entry. In balance sheet, debentures issued as collateral security must be shown separately from other debentures.

8.X, Y and Z were partners sharing profits and losses in the ratio of 5 : 3 : 2. They decided to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st January, 2015. They decided to record the effect of the following, without affecting the book values.
(i)Profit and loss account Rs 30,000. (ii) Advertisement suspense account Rs 10,000. Pass the necessary adjusting entries.
Ans.

11.Kanu, Sunny and Richa were partners sharing profits in the ratio of 3 : 2 :1. On 31st March, 2015 their balance sheet stood as under

Ans.

12.A and B were partners in a firm sharing profits in the ratio of 3 : 2. They admitted C as a new partner for share in the profits of the firm. The new profit sharing ratio will be 2 : 2 : 3. C brought X Rs 2,00,000 as his capital and X 50,000 as his share of goodwill, half of which was withdrawn by A and B from the firm.
(i)Which value is adhered by C by bringing goodwill in the firm?
(ii)Calculate sacrificing ratio and pass necessary journal entries.
Ans.

Ans.

Part B

(Financial Statements Analysis)

18.Cash receipts from sale of goods by a trading company will come under which activity while preparing cash flow statement?
Ans. Operating activity.

19.Accountant of Solutions Ltd, a company engaged in the business of financing,has shown interest earned under investing activity, while preparing cash flow statement. Is the treatment correct?
Ans. No, It should be shown under operating activity. As the business of the company is financing, interest earned by the company is a regular business acitvity and therefore should be treated as an operating activity.

20.(a) Under what major and sub headings will you classify the following items in the balance sheet of a company as per Schedule III Part I of the Companies Act, 2013.
(i) Computer software under development (ii) Sundry debtors
(iii) Bill discounted but not matured (iv) Loose tools
(v) Balance with Banks (vi) Calls-in-advance
(b) What is meant by common size statement?
Ans.

(b) In common size statement, each item in the statement is stated as a percentage of the aggregate, of which that item is a part. Revenue from operations in the case of income statement and total assets in the case of balance sheet.