Students can access the CBSE Sample Papers for Class 12 Accountancy with Solutions and marking scheme Term 2 Set 10 will help students in understanding the difficulty level of the exam.
CBSE Sample Papers for Class 12 Accountancy Standard Term 2 Set 10 with Solutions
Maximum Marks: 40
Time allowed: 2 Hours
General Instructions:
- This question paper comprises two Parts – A and B. There are 12 questions in the question paper. All questions are compulsory.
- Question nos. 1 to 3 and 10 are Short Answer Type I Questions carrying 2 marks each.
- Question nos. 4 to 6 and 11 are Short Answer Type II Questions carrying 3 marks each.
- Question nos. 7 to 9 and 12 are Long Answer Type Questions carrying 5 marks each.
- There is no overall choice. However, an internal choice has been provided in 3 questions of three marks and 1 question of five marks.
Part A
(Accounting for Not-for-Profit Organisations, Partnership Firms and Companies)
Short Answer (SA) Type I Questions (2 Marks)
Question 1.
Anurag, Aditya, and Tushar were partners in AJ Limited, which deals in bags, sharing profits in the ratio of 1:1:1. The firm closes its books on 31st March every year. On 1st June 2020, Tushar died due to Covid-19.
The partnership deed provided for the following on death of a partner
(i) Share of goodwill to be valued at one half of the net profit credited to deceased partner’s account during last four completed year. (Profits for the last four years were as under)
2019 = ₹ 80,000 2018 = ₹ 40,000 2017 = ₹ 80,000 2016 = ₹ 1,20,000
(ii) His share of profit from the closing of last financial year to the date of death which amounted to ₹ 2,200.
Your are required to pass journal entries for adjustment of Tushar’s goodwill and his share of profits till death.
Answer:
Working Note
Profit = 1,20,000 + 80,000 + 40,300 + 80,300 = ₹ 3,20,300
Tushar’s share in last four years’ profit = \(\frac{1}{3} \) x 3,20,300 = ₹ 1,36,567
Tushar’s share of goodwill = 1,36,567 x \(\frac{1}{2} \) = ₹ 53,333
2. State the accounting treatment for
(i) Unrecorded assets
(ii) Unrecorded liabilities
Answer:
Unrecorded assets and liabilities are not transferred to realisation account because they do not appear in the books.
Following accounting, procedure is followed
(i) Unrecorded Assets If amount is realised from sale of unrecorded assets, it is debited to cash/bank account and credited to realisation account, it being in the nature of gain. If unrecorded asset is taken by one of the partners, it is debited to concerned partner’s capital account and credited to realisation account.
(ii) Unrecorded Liabilities If unrecorded liability is paid, realisation account is debited and cash/bank account is credited with the amount paid, it being a loss. If a partner agrees to pay unrecorded liability, realisation account is debited and concerned partner’s capital account is credited. No entry is passed if unrecorded assets is given to discharge a recorded or unrecorded liability.
Question 3.
P, Q, and R are partners in a firm sharing profits in the ratio of 1:1 : 3 respectively. Their capital accounts showed the following balances on 31st March 2019 P – ₹ 1,00,000 ; Q – ₹ 1,50,000 and R – ₹ 2,00,000. Firm closes its accounts every year on 31st March. P retired on 31st March 2019.
The partnership deed provides for the following:
(i) The retiring partner’s share in the goodwill of the firm will be calculated on the basis of 2 years’ purchase of the average profit of last three years. The profits of the firm for the last three years were ₹ 80,000; ₹ 90,000 and ₹ 1,30,000 respectively.
(ii) His share in the reserve fund of the firm will be paid. The reserve fund of the firm was ₹ 80,000 at the time of P’s retirement. Prepare P’s capital account.
Answer:
Working Note
Firm’s goodwill = \(\left(\frac{80,000+90,000+1,30,000}{3}\right) \times 2\) = ₹ 2,00,000
P’s share of goodwill = 2 ,00,000 x \(\frac{1}{5}\) = ₹ 40,000 to be contributed by Q and R in gaining ratio, i.e. 1:3.
Short Answer (SA) Type II Questions (3 Marks)
Question 4.
X, Y, and Z are partners sharing profits in the ratio of 4 : 3 :1. Y retires, giving his share of profits to X and Z for ₹ 32,400; ₹ 14,400 being paid by X and ₹ 18,000 by Z. Profit for the year after Y’s retirement was ₹ 42,000. X and Z decide to share future profits and losses in the ratio of 2:1. You are required to give necessary journal entries to record the transfer of Y’s share to X and Z.
or
Pass the necessary journal entries for the following transactions on the dissolution of the firm of A, B, and C who were sharing profits in the ratio of 4:3:3.
(i) Bankers (Who granted loan of ₹ 7,000) accepted stock of ₹ 6,000 at a discount of 20% and the balance is cash.
(ii) Prepaid insurance of ₹ 5,000 and goodwill of ₹ 50,000 were appearing in balance sheet but no other additional information was given with regard to these two items. t
(iii) Workmen compensation reserve ₹ 30,000, workmen compensation paid ₹ 10,000.
Answer:
Question 5.
Jain Ltd. invited applications for 500, 9% debentures of ₹ 100 each at a discount of 6%. Application for 600 debentures were received. Pro-rata allotment was made to all the applicants. Pass necessary entries for issue of debentures and writing-off the discount.
Or ;
Prakash Ltd. invited applications for issuing 4,000,10% debentures of ₹ 100 each at a premium of ₹ 20 per debenture.
The full amount was payable on application. Applications were received for 5,000 debentures. Applications for 1,000 debentures was rejected and application money was refunded. Debentures were allotted to the remaining applicants. Pass necessary journal entries for the above transactions in the books of Prakash Ltd.
Answer:
Question 6.
A, B, and C are partners in a firm sharing profits in the proportion of 3:2:1. Their balance sheet as at 31st March 2020 stood as follows
B retired on 1st April 2020. He is entitled to
(i) Capital to his credit.
(ii) Share of general reserve.
(iii) Goodwill according to his share of profit to be calculated by taking twice the amount of profits of the last 3 years less 20%.
The profits for the previous 3 years were I – ₹ 4,920, II – ₹ 5,400, and III – ₹ 5,880.
Prepare partners’ capital account.
Answer:
Working Note:
Total profit for 3 years = (4,920 + 5,400 + 5,880) = ₹ 16,200
Finn’s goodwill = (16,200 x 2)-20%(16,200 x 2)=32,400 -6,480 =₹ 25,920
B’s share of goodwill =25,920 x \(\frac{2}{6}\) = ₹ 8,640 to be contributed by A and C in gaining ratio, i.e. 3:1.
Long Answer (LA) Type Questions (5 Marks)
Question 7.
Following is the receipts and payments account of Sai Club for the year ended 31st December 2019
Receipts and Payments Account
With the additional information given below, prepare the income and expenditure account for the year ended 31st December 2019 and the balance sheet as on that date
| Particular | 31st December 2018(₹) | 31st December 2O19(₹) |
| (i) Subscription Receivable | 1,000 | 600 |
| (ii) Subscription Received in Advance | 200 | 400 |
| (iii) Salary of Staff Outstanding | 1,000 | 2,000 |
| (iv) Canteen Expenses Prepaid | 1,000 | 1,500 |
| (v) Furniture at Book Value | 14,000 | – |
| (vi) Buildings | 15,000 | – |
| (vii) Fixed Deposit with Bank | 10,000 | 10,000 |
| (viii) Book Value of Furniture Sold during 2019 was ₹ 3,500 | ||
| (ix) Charge Depredation on Furniture at 10%p.a. on the Closing Balance |
Answer:
Question 8.
Following is the receipts and payments account of Happy Club for the year ended 31st
March 2020
Receipts and Payments Account
Additional Information
(i) Subscriptions outstanding as on 31st March 2019 were ₹ 4,000 and on 31st March 2020 ₹ 5,000.
(ii) On 31st March. 2020 salary outstanding was ₹ 1,200 and rent outstanding was 2,400
(iii) The club owned furniture ₹ 30,000 and books ₹ 14,000 on 1st April 2019.
Prepare income and expenditure account of the club for the year ended 31st March 2020 and ascertain capital fund on 31st March 2019. Also prepare a balance sheet as on 31 st March 2020.
Answer:
Note:
Subscription outstanding on 31st March 2020 is ₹ 5,000 which includes the subscription outstanding for the year, 2018-2019 ₹ 1,600 i.e., 4,000 -2,400 received during 2019-20. Hence, the subscription outstanding for 2019-20 is 3,400 (i.e., 5,000- 1,600). It should be noted that there ¡s a difference between subscription outstanding on 31st March 2020 and subscription outstanding for 2019-20 which indicates subscription outstanding only for 2019-20.
Question 9.
Pass the journal entries in the following cases
(i) Bhim Ltd. issued 20,000, 9% debentures of ₹ 50 each at a discount of 8% redeemable at par at any time after 9 years.
(ii) Bhim Ltd. purchased assets of ₹ 12,60,000 from Chinky Ltd. Bhim Ltd. paid this amount by issuing debentures of ₹ 100 each at a premium of 20%.
(iii) Bhim Ltd purchased assets of ₹ 8,40,000 and took over liabilities of ₹ 80,000 at an agreed value of ₹ 7,20,000. Bhim Ltd issued debentures of ₹ 100 each at par in full satisfaction of the purchase price.
Or
Pass journal entries in the following cases
(i) Prakash Ltd. secured a loan of ₹ 4,00,000 from Axis Bank issuing 3,000, 10% Debentures of 100 each as collateral security.
(ii) Prakash Ltd. also issued ₹ 2,00,000, 9% debentures of 100 each at premium of 5% redeemable at par
(iii) Prakash Ltd. also issued 35,000, 8% debentures of ₹ 100 each payable on application and redeemable at par at any time after 6 years.
Answer:
Working Note
Number of Debentures = \(\frac{\text { Amount Due to Vendor Company }}{\text { Issue Price Per Debenture }}=\frac{12,26,000}{100+20} \) = 10,500 Debentures
Number of Debentures Issued = \(\frac{7,20,000}{100}\) = 7,200 Debentures
Part B
(Analysis of Financial Statements)
Short Answer (SA) Type I Question (2 Marks)
Question 10.
What do you mean by comparative financial statements?
Answer:
Statements used to compare the items of income statement, i.e. statement of profit and loss and
balance sheet for ascertaining the trend of the performance and profitability of an enterprise are
known as comparative financial statements.
Short Answer (SA) Type II Question (3 Marks)
Question 11.
From the following information, prepare comparative statement of profit and loss for the year ended 31st March 2019 and 2018.
Or
From the following information which is taken from the books of Malakar Pvt. Ltd., prepare comparative statement of profit and loss for the year ended 31st March, 2019.
Answer:
Long Answer (LA) Type Question (5 Marks)
Question 12.
From the following information, prepare a cash flow statement for Ravi Ltd. Balance sheets of Ravi Ltd. as at 31st March, 2018 and 2019 are given below
Balance Sheet
as at 31st March, 2018 and 2019
Additional Information
(i) Debentures were issued on 1st April 2018.
(ii) During the year, a machine included in fixed assets costing ₹ 12,00,000 was purchased and another machine of the book value of ₹ 3,00,000 was sold at a loss of ₹ 20,000.
Answer:
