CBSE Sample Papers for Class 12 Accountancy Solved 2016 Set 3

Part A
(Accounting for Partnership Firms and Companies)

1.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.

2.What is reserve capital?

3.A and B entered into a partnership to float M/s ABC Enterprises, by writing a partnership deed. A has invested more capital than B and A spends more time in managing the business. A demands that he be given 75% of profit instead of 50% as agreed. Is the claim of A correct?

4.XYZ Ltd was formed with a capital of Rs 1,00,000 divided into shares of Rs 10 each. Out of these, 2,000 shares were issued to the vendors as fully paid as purchase consideration, 6,500 shares were offered to the public and of these 7,000 shares were applied for and allotted, the directors called Rs 6 per share and received the entire amount except a call of Rs 2 per share on 500 shares. What is the amount of issued capital?

5.A and B are partners with capitals of Rs 30,000 each. They admit C as a partner with l/4th share in the profits of the firm. C brings Rs 48,000 as his share of capital. The profit and loss account showed a credit balance of Rs 24,000 as on the date of admission of C. What would be the amount of goodwill?

8.X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. On 1st April, 2015, they decided to share the profits in the ratio of 2 : 2 : 1. On that date, following balances were appearing in the balance sheet.
Profit and loss (Cr)                                                           15,000
General reserve                                                                50,000
Deferred revenue expenditure                                         10,000
Pass necessary journal entries.

9.Laxmi Ltd was registered with a share capital of Rs 10,00,000 of ?100 each. Pass journal entries for the following
(i)The company purchased the assets of Shri Ram Ltd for Rs 3,00,000, payable ? 40,000 in cash and the balance in equity shares of Rs 100.
(ii)Identify the value shown by the company by issuing shares for consideration other than cash.

10.The Directors of a company forfeited 500 shares of Rs 10 each issued at a premium of Rs 3 per share, for the non-payment of the first call money of Rs 3 per share. The final call of Rs 2 per share has not yet been made. Half of the forfeited shares were re-issued at Rs 2,500 fully paid. Record the journal entries for the forfeiture and re-issue of shares.

11.Following is the balance sheet of Hari, Ram and Shyam as at 31st December, 2014.

Ram died on 31st March, 2015. Under the partnership agreement, the executor of Ram was entitled to
(i)Amount standing to the credit of his capital account.
(ii)Interest on capital, which amounted to Rs 62.50.
(iii)His share of goodwill Rs 3,500.
(iv)His share of profit from the closing of the last financial year to the date of death, which amounted to Rs 437.50.
The firm gave employment to Ram’s wife and arranged for his children’s education.
Draw up Ram’s account to be rendered to his executor. Identify the value conveyed in the question.

12.A, B, C and D are partners. Their capital accounts on 1st April, 2014 were Rs 30,000, Rs 50,000, Rs 80,000 and Rs 1,00,000 respectively. After the accounts for the year ended 31st March, 2015 have been prepared, it is discovered that interest @ 5% as provided in the partnership agreement has not been credited to partners’ capital account before distributing profits. So, it is decided to make adjusting entry at the beginning of the next year. Give the necessary journal entry along with working notes.

13.(i) Surender, Ramesh, Naresh and Mohan are partners in a firm sharing profits in 2:1:2 : 1 ratio. On the retirement of Naresh, the goodwill was valued at Rs 72,000. Surender, Ramesh and Mohan decided to share future profits equally. Pass the necessary journal entry for the treatment of goodwill without opening goodwill account.
(ii) A firm earned profits of Rs 1,60,000, Rs 2,00,000, Rs 2,40,000 and Rs 3,60,000 during 2011-12, 2012-13, 2013-14 and 2014-15, respectively. The firm has capital investment of Rs 10,00,000. A fair rate of return on investment is 15% per annum. Calculate goodwill of the firm based on 3 years’ purchase of average super profits of last four years.

14.(i) On 1st April, 2013 Shankar Ltd had made an issue of 2,000, 6% debentures of ? 100 each. The company during the year 2014-15 purchased for cancellation 500 of these debentures. The company paid Rs 95 per debenture for 400 debentures and Rs 98 per debenture for the rest. The expenses on purchase amounted to Rs 200. Pass journal entries in the books of the company.
(ii) Z Ltd issued 6,000, 10% debentures of Rs 100 each at a discount of 6% and redeemable at 4% premium after 5 years. Pass the necessary journal entries for the issue of debentures.

15.X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. Y decided to retire from the firm on 31st March 2015. From the following information, complete revaluation account, partners’ capital account and balance sheet.

16.Strongman Ltd company was registered with an authorised capital of f 2,00,000 omo per equity share. Out of these, 6,000 equity shares issued as fully paid to the vendor for the purchase of building, 8,000 equity shares were subscribed for by the public and during the first year Rs 5 per equity share were called-up, payable as Rs 2 on application, H on allotment, Rs 1 on first call and Rs 1 on second call. The amount received in respect of these shares were On 6,000 equity shares, the full amount has been paid; on 1,250 shares, per equity share; on 500 shares, Rs 3 per equity share and on 250 shares, Rs 2 per equity share.
The Directors forfeited 750 equity shares on which less than Rs 4 per equity share had been paid. Show the journal entries in the books of the company.
or
A company offered 10,000 shares of Rs 10 each payable as Rs 2 on application, Rs 3 on allotment, Rs 3 on first call and Rs 2 on the final call.
The public applied for 15,000 shares. The shares were allotted on a pro-rata basis to the applicants of 12,000 shares. All shareholders paid the allotment money except one shareholder who was allotted 200 shares. These shares were forfeited. The first call was made thereafter. The forfeited shares were re-issued @ Rs 9 per share, Rs 8 paid-up. The final call was not yet made.
You are required to prepare the cash book and pass the journal entries.

17.Sohan and Mohan are two partners sharing profits and losses in the ratio of 3 : 2.Their balance sheet as on 31st March, 2014 is as follows

Rohan is to be admitted as a partner with effect from 1st April, 2015 on the following terms:
(i)Rohan will bring in Rs 2,00,000 as capital and Rs 1,20,000 as premium for goodwill for l/5th share of profit.
(ii)Half premium withdrawn by old partners.
(iii)The assets will be revalued as, land and buildingRs 4,50,000; furniture Rs 1,20,000; stock Rs 1,50,000.
(iv)The claim of a creditor forRs 40,000 is settled at Rs 35,000.
(v)Capital of Sohan and Mohan adjusted in new profit sharing ratio on the basis of Rohan’s capital. Difference adjusted in cash account.
(vi)Bills payable paid off by raising bank loan.
You are required to show the revaluation account, partners’ capital account and the balance sheet of the new firm.
or
Nitish and Varan are partners in a firm sharing profits and losses in the ratio of 2:1. On 31st March, 2015, their balance sheet was as under :

On that date, the partners decided to dissolve the firm under the following arrangements
(i) Nitish promised to pay off Mrs Nitish’s loan and took investment at Rs 60,000.
(ii) Other assets were realised as follows
Debtors : full amount; Stock : Rs 50,000; Furniture : Rs 90,000; Patent and goodwill: 20% less; A part of building at Rs 80,000 (being 20% less than the book value) and remaining building 25% more than the book value.
(iii) Creditors and bills payable of the firm agreed to accept 10% less.
(iv) Expenses on realisation amounted to Rs 10,000.
You are required to close the books of the firm preparing realisation account, partners’ capital account and bank account.

Part B
(Financial Statements Analysis)

18.Amortisation of goodwill is which type of activity while preparing cash flow statement?

19.ABC Ltd made an operating profit of Rs 1,85,500 after charging depreciation of Rs 31,200. During that year, trade payables increased by Rs 26,600 and inventory increased by Rs 40,300. There was no change in trade receivables. Assuming that no other factors affected it, what would be the cash generated from operations?

20.Under which main heading and sub-heading will you classify the following items while preparing the balance sheet as per Schedule III of the companies Act, 2013.
(i) Securities premium reserve(ii) Stock of work-in-progress
(iii) Provision for tax(iv) Mortgage loan (v) Patents
(vi) Investments (vii) General reserve(viii) Bills receivable

22.Calculate the following ratios
(i) Liquid ratio (ii) Proprietary ratio
Information
Revenue from operations i.e., sales X 5,00,000; cost of revenue from operations i.e., cost of goods sold X2,40,000; selling expenses X 80,000; office expenses X 40,000; total current assets X 2,00,000; current liabilities X 1,00,000; closing inventory X20,000; fixed assets X 8,00,000; equity share capital Rs 3,00,000 and general reserve Rs 2,00,000.

Answers

Part A
(Accounting for Partnership Firms and Companies)

1.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 and loss suspense account.

2.What is reserve capital?
Ans. It is that portion of subscribed share capital, remaining uncalled, which shall not be capable of being called-up except in the event and for the purposes of the company being wound up.

6.A machine having a book value of 115,000 is given away to X, a firm’s creditor of Rs 22,000 at an agreed valuation of Rs 12,000 towards full and final payment of his dues at the time of dissolution. The accountant debited realisation account and credited cash account with Rs 10,000 respectively. Is the accountant correct in doing so?
Ans. No, the accountant is not correct. No journal entry shall be passed as the creditor has accepted payment towards full and final payment of his dues.

7. ABC Ltd invited applications for 10,000 shares of Rs 10 each. Applications were received for 15,000 shares. Name the kind of subscription. Give three alternatives for allotting shares in this form of subscription.
Ans. Oversubscription.
Three alternatives for allotting shares are
(i) Reject the excess applications received for 5,000 shares.
(ii)Pro-rata allotment in the ratio of 10:15.
(iii) Full allotment to some applicants, pro-rata to some applicants and reject the remaining applications.

8.X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. On 1st April, 2015, they decided to share the profits in the ratio of 2 : 2 : 1. On that date, following balances were appearing in the balance sheet.
Profit and loss (Cr)                                                           15,000
General reserve                                                                50,000
Deferred revenue expenditure                                         10,000
Pass necessary journal entries.
Ans.

9.Laxmi Ltd was registered with a share capital of Rs 10,00,000 of ?100 each. Pass journal entries for the following
(i)The company purchased the assets of Shri Ram Ltd for Rs 3,00,000, payable ? 40,000 in cash and the balance in equity shares of Rs 100.
(ii)Identify the value shown by the company by issuing shares for consideration other than cash.
Ans.

11.Following is the balance sheet of Hari, Ram and Shyam as at 31st December, 2014.

Ram died on 31st March, 2015. Under the partnership agreement, the executor of Ram was entitled to
(i)Amount standing to the credit of his capital account.
(ii)Interest on capital, which amounted to Rs 62.50.
(iii)His share of goodwill Rs 3,500.
(iv)His share of profit from the closing of the last financial year to the date of death, which amounted to Rs 437.50.
The firm gave employment to Ram’s wife and arranged for his children’s education.
Draw up Ram’s account to be rendered to his executor. Identify the value conveyed in the question.
Ans.

14.(i) On 1st April, 2013 Shankar Ltd had made an issue of 2,000, 6% debentures of ? 100 each. The company during the year 2014-15 purchased for cancellation 500 of these debentures. The company paid Rs 95 per debenture for 400 debentures and Rs 98 per debenture for the rest. The expenses on purchase amounted to Rs 200. Pass journal entries in the books of the company.
(ii) Z Ltd issued 6,000, 10% debentures of Rs 100 each at a discount of 6% and redeemable at 4% premium after 5 years. Pass the necessary journal entries for the issue of debentures.
Ans.

16.Strongman Ltd company was registered with an authorised capital of f 2,00,000 omo per equity share. Out of these, 6,000 equity shares issued as fully paid to the vendor for the purchase of building, 8,000 equity shares were subscribed for by the public and during the first year Rs 5 per equity share were called-up, payable as Rs 2 on application, H on allotment, Rs 1 on first call and Rs 1 on second call. The amount received in respect of these shares were On 6,000 equity shares, the full amount has been paid; on 1,250 shares, per equity share; on 500 shares, Rs 3 per equity share and on 250 shares, Rs 2 per equity share.
The Directors forfeited 750 equity shares on which less than Rs 4 per equity share had been paid. Show the journal entries in the books of the company.
or
A company offered 10,000 shares of Rs 10 each payable as Rs 2 on application, Rs 3 on allotment, Rs 3 on first call and Rs 2 on the final call.
The public applied for 15,000 shares. The shares were allotted on a pro-rata basis to the applicants of 12,000 shares. All shareholders paid the allotment money except one shareholder who was allotted 200 shares. These shares were forfeited. The first call was made thereafter. The forfeited shares were re-issued @ Rs 9 per share, Rs 8 paid-up. The final call was not yet made.
You are required to prepare the cash book and pass the journal entries.
Ans.

17.Sohan and Mohan are two partners sharing profits and losses in the ratio of 3 : 2.Their balance sheet as on 31st March, 2014 is as follows

Rohan is to be admitted as a partner with effect from 1st April, 2015 on the following terms:
(i)Rohan will bring in Rs 2,00,000 as capital and Rs 1,20,000 as premium for goodwill for l/5th share of profit.
(ii)Half premium withdrawn by old partners.
(iii)The assets will be revalued as, land and buildingRs 4,50,000; furniture Rs 1,20,000; stock Rs 1,50,000.
(iv)The claim of a creditor forRs 40,000 is settled at Rs 35,000.
(v)Capital of Sohan and Mohan adjusted in new profit sharing ratio on the basis of Rohan’s capital. Difference adjusted in cash account.
(vi)Bills payable paid off by raising bank loan.
You are required to show the revaluation account, partners’ capital account and the balance sheet of the new firm.
or
Nitish and Varan are partners in a firm sharing profits and losses in the ratio of 2:1. On 31st March, 2015, their balance sheet was as under :

On that date, the partners decided to dissolve the firm under the following arrangements
(i) Nitish promised to pay off Mrs Nitish’s loan and took investment at Rs 60,000.
(ii) Other assets were realised as follows
Debtors : full amount; Stock : Rs 50,000; Furniture : Rs 90,000; Patent and goodwill: 20% less; A part of building at Rs 80,000 (being 20% less than the book value) and remaining building 25% more than the book value.
(iii) Creditors and bills payable of the firm agreed to accept 10% less.
(iv) Expenses on realisation amounted to Rs 10,000.
You are required to close the books of the firm preparing realisation account, partners’ capital account and bank account.
Ans.

Part B
(Financial Statements Analysis)

18.Amortisation of goodwill is which type of activity while preparing cash flow statement?
Ans. Non-operating activity.

20.Under which main heading and sub-heading will you classify the following items while preparing the balance sheet as per Schedule III of the companies Act, 2013.
(i) Securities premium reserve(ii) Stock of work-in-progress
(iii) Provision for tax(iv) Mortgage loan (v) Patents
(vi) Investments (vii) General reserve(viii) Bills receivable
Ans.

Ans.

22.Calculate the following ratios
(i) Liquid ratio (ii) Proprietary ratio
Information
Revenue from operations i.e., sales X 5,00,000; cost of revenue from operations i.e., cost of goods sold X2,40,000; selling expenses X 80,000; office expenses X 40,000; total current assets X 2,00,000; current liabilities X 1,00,000; closing inventory X20,000; fixed assets X 8,00,000; equity share capital Rs 3,00,000 and general reserve Rs 2,00,000.
Ans.

Ans.

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