CBSE Sample Papers for Class 12 Accountancy Solved 2016 Set 8

Part A
(Accounting for Partnership Firms and Companies)

2.At the time of admission of a new partner, new profit sharing ratio is ascertained. The new or incoming partner acquires his share from old partners and as a result, profit share of old partners is reduced. What is the reduced part of the profit sharing ratio of old partners known?

3.The accountant of a firm has debited salary or commission paid to a partner to profit and loss appropriation account. Is the treatment correct?

4.Name the asset that is not transferred to the debit side of realisation account, but brings certain amount of cash against its disposal at the time of dissloution of the firm.

5.What is meant by pro-rata allotment of shares?

6.Paramount Ltd has allotted 20,000 shares to the applicants of 28,000 shares on pro-rata basis. The amount payable on application was Rs 2 per share. Vishnu applied for 840 shares. Calculate the number of shares allotted.

7.What is the nature of interest on debentures? Give journal entries (a) when interest is due (b) when the interest is paid (ignore tax).

8.A Ltd forfeited 180 shares of Rs 10 each, Rs 8 called-up, issued at a premium of Rs 2 per share to B for non-payment of allotment money of Rs 5 per share (including premium). Out of these, 160 shares were re-issued to Anmol as Rs 8 called up for Rs 10 per share fully paid-up.

9.Sohan and Mohan are in a partnership since 2015, sharing profits and losses in the ratio of 3 : 2. They admitted Rohan for 3/7 share. Complete the missing amounts.

10.A company issued 15,000 fully paid-up shares of Rs 100 each for the purchase of the following assets and liabilities from Rastogi Brothers Plant Rs 3,50,000; stock-in-trade Rs 4,50,000; land and building Rs 6,00,000; sundry creditors Rs 1,00,000. You are required to pass the necessary journal entries.

11.After completing MBBS, E suggested to her classmate F to form a partnership to run a hospital in the locality inhabited by low income group. After a long thought, he agreed to her proposal. Since, they did not have sufficient resources for implementing the proposal, they persuaded a rich friend N who contributed the required capital. All of them formed a partnership on the following terms
(i)E, F and N will contribute Rs 3,00,000; Rs 5,00,000 and Rs 10,00,000 respectively.
(ii)Interest on capital @ 5% per annum will be allowed.
The profits of the firm for the year ended 31st March, 2015 were Rs 9,00,000.
Prepare profit and loss appropriation account of the firm for the year ending 31st March, 2015. Identify the values which according to you motivated them to form the partnership.

12.Following is the balance sheet of P, Q and R as at 31st March, 2015

R died on 30th June, 2015. Under the terms of partnership deed, the executors of the deceased partner were entitled to
(i)Amount standing to the credit of the partner’s capital account.
(ii)Interest on capital @ 5% per annum.
(iii)Share of goodwill on the basis of twice the average of the past three years’ profits.
(iv)Share of profits from the closing of the last financial year to the date of death on the basis of the last year’s profits.
(v)R’s share of goodwill will be adjusted to the accounts of P and Q who will maintain a profit sharing ratio of 2 : 1 in the new firm. They decide not to raise any goodwill account.
Profits for the year ended 31st March, 2013, 2014 and 2015 were Rs 1,60,000; Rs 1,80,000, Rs 2,00,000 respectively. Profits were shared in the ratio of capitals.Draw up R’s capital account.

13.XYZ company decided to issue 4,00,000, 9% debentures on 1st April, 2009 at a discount of 5%. The face value of each debenture was Rs 100. These debentures were redeemable in four instalments starting from the end of third year, which was as follows

Prepare 9% debentures account from 1st April, 2009 till all the debentures were redeemed

14.Kanika, Sakshi and Arora are partners sharing profits and losses as 20%, 30% and 50%. Kanika decided to retire with the consent of other partners and sold her share to Sakshi. Goodwill was valued at two and a half year purchase of the average profits of three years. Profits of these three years were Rs 50,000, Rs 70,000 and Rs 60,000. Reserve fund stood in the balance sheet at Rs 30,000 at the time of retirement.
You are required to record necessary journal entries regarding above adjustment on Kanika’s retirement. Also prepare her capital account to find out the amount due to her when her capital balance in the balance sheet was Rs 1,00,000 before any of the above adjustment.]

15.(i) X, Y and Z are partners sharing profits in the ratio of 4 : 3 : 2. On 1st April, 2015 Y gave a notice to retire from the firm. X and Z decided to share future profits in the ratio of 1 : 1. The capital accounts of X and Z after all adjustments showed a balance of Rs 43,000 and Rs 80,500 respectively. The total amount to be paid to Y was Rs 95,500. This amount was to be paid by X and Z in such a way that their capitals become proportionate to their new profit sharing ratio. Pass necessary journal entries in the books of the firm for the above transactions. Show your working clearly.
(ii)L and M started partnership business on 1st April, 2014 with capitals of Rs 2,50,000 and Rs 1,50,000 respectively. On 1st October, 2014 they decided that their capitals should be Rs 2,00,000 each. The necessary adjustments in the capitals are made by introducing or withdrawing cash. Interest on capital is to be allowed @ 10% per annum. Calculate interest on capital as on 31st March, 2015.

16.The Orient Company offered for public subscription 20,000 equity shares of Rs 10 each at a premium of 10% payable as Rs 2 on application, Rs 4 on allotment (including premium), Rs 3 on first call and Rs 2 on second and final call. Applications for 26,000 shares were received. Applications for 4,000 shares were rejected. Pro-rata allotment was made to the remaining applicants. Both the calls were made and all the money was received except the final call on 500 shares which were forfeited. 300 of the forfeited shares were later on re-issued as fully paid up at Rs 9 per share. Give journal entries and prepare the balance sheet.
or
Arora Ltd issued a prospectus inviting applications for 20,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows
On application Rs 2, on allotment Rs 5 (including premium), on first call Rs 3, on second and final call Rs 2.
Applications were received for 30,000 shares and pro-rata allotment was made on the applications for 24,000 shares. Money overpaid on application was employed on account of sum due on allotment.
Sanchit, to whom 400 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Parth, the holder of 600 shares, failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 800 shares were sold to Siddharth credited as fully paid for Rs 9 per share, the whole of Sanchit’s shares being included. Show the journal entries.

17.Amit and Dushyant are partners sharing profits in the ratio of 3 : 2. Their balance sheet stood as under, at 31st December, 2015

Rita is admitted as a new partner introducing a capital of Rs 16,000. The new profit sharing ratio is decided as 5 : 3 : 2. Rita is unable to bring in any cash for goodwill. So, it is decided to calculate the amount of goodwill on the basis of Rita’s share in the profits and the capital contributed by her. Following revaluations are made
(i)Stock to be depreciated by 5%.
(ii) Provision for doubtful debts to be made at Rs 500.
(iii)Furniture to be depreciated by 10%.
(iv)Buildings are valued at Rs 40,000.
Show the necessary ledger accounts and the balance sheet of the new firm.
or
Following is the balance sheet of Harsh and Suresh who are partners in a firm sharing profits in the ratio of 3 : 2, as at 31st March, 2015

The firm was dissolved on 31st March, 2015. Plant and machinery realised Rs 16,000 and stock Rs 2,500, Rs 9,000 were collected from the debtors. Creditors were paid Rs 30,000 in settlement.
Prepare realisation account, capital accounts of Harsh and Suresh and bank account to close the books of the firm.

Part B
(Financial Statements Analysis)
18.Under which type of activity will you classify purchase of investment, while preparing cash flow statement?

19.The cash provided from operations was 23,000. The net increase in cash was 22,000. If the net cash inflow from financing activities was 15,000, then calculate the net cash flow from investing activities?

20.(a) Give the headings under which the following items will be shown in a companies balance sheet.
(i)Goodwill
(ii)Preliminary expenses
(iii)Proposed dividend
(iv)Subsidy reserve
(v)Provision for doubtful debts
(iv)Accrued incomes
(b) State any one objective of financial statement analysis.

21.The balance sheet of Riyansh Ltd as at 31st March, 2014 and 2015 are given below

Prepare common size balance sheet for Riyansh Ltd for 2014 and 2015

22.From the following balance sheet, calculate any two ratios
(i)Debt equity ratio
(ii)Proprietary ratio
(iii)Total assets to debt ratio

23.The net profit of a company after tax is Rs 4,00,000 as on 31st March, 2015 after considering the following

Calculate cash flow from operating activities.
Identify the value shown by the company in paying taxes

Answers

Part A
(Accounting for Partnership Firms and Companies)

1.D, E and F are partners sharing profits in the ratio of 4 : 3 : 2. E retired, his share was taken over equally by D and F. In which ratio will the profit or loss on revaluation of assets and liabilities on the retirement of E be transferred to the capital accounts of the partners?
Ans.The profit or loss on revaluation of assets and liabilities on the retirement of E will be transferred to the capital accounts of the partners in their old ratio i.e., 4:3:2

3.The accountant of a firm has debited salary or commission paid to a partner to profit and loss appropriation account. Is the treatment correct?
Ans.Yes, as salary and commission to partners are an appropriation of profits and not a charge.

4.Name the asset that is not transferred to the debit side of realisation account, but brings certain amount of cash against its disposal at the time of dissloution of the firm.
Ans.Unrecorded asset.

5.What is meant by pro-rata allotment of shares?
Ans.In the case of oversubscription, it is not possible to allot shares to all applicants. So applicants are allotted less number of shares than they have applied for. This type of allotment of shares is known as pro-rata allotment of shares.

7.What is the nature of interest on debentures? Give journal entries (a) when interest is due (b) when the interest is paid (ignore tax).
Ans.Interest on debentures is a charge against the profits and is payable irrespective of the fact whether there are profits or not.
When interest is due
Debenture Interest A/c Dr
To Debentureholders’ A/c
When interest is paid
Debentureholders’ A/c Dr
To Bank A/c

9.Sohan and Mohan are in a partnership since 2015, sharing profits and losses in the ratio of 3 : 2. They admitted Rohan for 3/7 share. Complete the missing amounts.

Ans.

11.After completing MBBS, E suggested to her classmate F to form a partnership to run a hospital in the locality inhabited by low income group. After a long thought, he agreed to her proposal. Since, they did not have sufficient resources for implementing the proposal, they persuaded a rich friend N who contributed the required capital. All of them formed a partnership on the following terms
(i)E, F and N will contribute Rs 3,00,000; Rs 5,00,000 and Rs 10,00,000 respectively.
(ii)Interest on capital @ 5% per annum will be allowed.
The profits of the firm for the year ended 31st March, 2015 were Rs 9,00,000.
Prepare profit and loss appropriation account of the firm for the year ending 31st March, 2015. Identify the values which according to you motivated them to form the partnership.
Ans.

12.Following is the balance sheet of P, Q and R as at 31st March, 2015

R died on 30th June, 2015. Under the terms of partnership deed, the executors of the deceased partner were entitled to
(i)Amount standing to the credit of the partner’s capital account.
(ii)Interest on capital @ 5% per annum.
(iii)Share of goodwill on the basis of twice the average of the past three years’ profits.
(iv)Share of profits from the closing of the last financial year to the date of death on the basis of the last year’s profits.
(v)R’s share of goodwill will be adjusted to the accounts of P and Q who will maintain a profit sharing ratio of 2 : 1 in the new firm. They decide not to raise any goodwill account.
Profits for the year ended 31st March, 2013, 2014 and 2015 were Rs 1,60,000; Rs 1,80,000, Rs 2,00,000 respectively. Profits were shared in the ratio of capitals.Draw up R’s capital account.
Ans.

13.XYZ company decided to issue 4,00,000, 9% debentures on 1st April, 2009 at a discount of 5%. The face value of each debenture was Rs 100. These debentures were redeemable in four instalments starting from the end of third year, which was as follows

Prepare 9% debentures account from 1st April, 2009 till all the debentures were redeemed.
Ans.

16.The Orient Company offered for public subscription 20,000 equity shares of Rs 10 each at a premium of 10% payable as Rs 2 on application, Rs 4 on allotment (including premium), Rs 3 on first call and Rs 2 on second and final call. Applications for 26,000 shares were received. Applications for 4,000 shares were rejected. Pro-rata allotment was made to the remaining applicants. Both the calls were made and all the money was received except the final call on 500 shares which were forfeited. 300 of the forfeited shares were later on re-issued as fully paid up at Rs 9 per share. Give journal entries and prepare the balance sheet.
or
Arora Ltd issued a prospectus inviting applications for 20,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows
On application Rs 2, on allotment Rs 5 (including premium), on first call Rs 3, on second and final call Rs 2.
Applications were received for 30,000 shares and pro-rata allotment was made on the applications for 24,000 shares. Money overpaid on application was employed on account of sum due on allotment.
Sanchit, to whom 400 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Parth, the holder of 600 shares, failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 800 shares were sold to Siddharth credited as fully paid for Rs 9 per share, the whole of Sanchit’s shares being included. Show the journal entries.
Ans.

17.Amit and Dushyant are partners sharing profits in the ratio of 3 : 2. Their balance sheet stood as under, at 31st December, 2015

Rita is admitted as a new partner introducing a capital of Rs 16,000. The new profit sharing ratio is decided as 5 : 3 : 2. Rita is unable to bring in any cash for goodwill. So, it is decided to calculate the amount of goodwill on the basis of Rita’s share in the profits and the capital contributed by her. Following revaluations are made
(i)Stock to be depreciated by 5%.
(ii) Provision for doubtful debts to be made at Rs 500.
(iii)Furniture to be depreciated by 10%.
(iv)Buildings are valued at Rs 40,000.
Show the necessary ledger accounts and the balance sheet of the new firm.
or
Following is the balance sheet of Harsh and Suresh who are partners in a firm sharing profits in the ratio of 3 : 2, as at 31st March, 2015

The firm was dissolved on 31st March, 2015. Plant and machinery realised Rs 16,000 and stock Rs 2,500, Rs 9,000 were collected from the debtors. Creditors were paid Rs 30,000 in settlement.
Prepare realisation account, capital accounts of Harsh and Suresh and bank account to close the books of the firm.
Ans.

Part B
(Financial Statements Analysis)

18.Under which type of activity will you classify purchase of investment, while preparing cash flow statement?
Ans.Investing activities.

20.(a) Give the headings under which the following items will be shown in a companies balance sheet.
(i)Goodwill
(ii)Preliminary expenses
(iii)Proposed dividend
(iv)Subsidy reserve
(v)Provision for doubtful debts
(iv)Accrued incomes
(b) State any one objective of financial statement analysis.
Ans.

21.The balance sheet of Riyansh Ltd as at 31st March, 2014 and 2015 are given below

Prepare common size balance sheet for Riyansh Ltd for 2014 and 2015
Ans.

22.From the following balance sheet, calculate any two ratios
(i)Debt equity ratio
(ii)Proprietary ratio
(iii)Total assets to debt ratio

Ans.

23.The net profit of a company after tax is Rs 4,00,000 as on 31st March, 2015 after considering the following

Calculate cash flow from operating activities.
Identify the value shown by the company in paying taxes
Ans.

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