Students can access the CBSE Sample Papers for Class 12 Accountancy with Solutions and marking scheme Term 2 Set 7 will help students in understanding the difficulty level of the exam.
CBSE Sample Papers for Class 12 Accountancy Standard Term 2 Set 7 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. J 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.
V, W and X were carrying out a business as partners and sharing profits in the ratio of 2:1:1. Their balance sheet as at 31st December 2019 is as follows
Balance Sheet
as at 31st December 2019
V died due to Covid-19 on 31st December 2019. In this regard, following adjustments were agreed upon
(i) The value of buildings to be increased to ₹ 96,000.
(ii) The provision for bad and doubtful debts on debtors to be maintained at 3%.
(iii) Plant and machinery should be valued at 20% less.
You are required to prepare revaluation account.
Answer:
Question 2.
Why do firms revalue assets and reassess their liabilities on retirement or on the event of death of a partner?
Answer:
At the time of retirement of a partner, the assets and liabilities are revalued, so that the profit/loss on revaluation up to the date of retirement/death of a partner may be ascertained and adjusted in all partners’ capital accounts in their old profit sharing ratio because such profit or loss on revaluation relates to pre-retirement period.
Question 3.
From the following information, calculate the amount of subscriptions outstanding as at 31st March, 2020.
A club has 250 members each paying an annual subscription of ₹ 1,000. The receipts and payments account for the year showed a sum of ₹ 2,82,000 received as subscriptions.
The following additional information is provided
Answer:
Short Answer (SA) Type II Questions (3 Marks)
Question 4.
On 1st April 2020, Khushi Ltd. issued 50,000,10% debentures of ₹ 100 each at a discount of 10%. These debentures were redeemable at a premium of 5% after four years. Pass necessary journal entries for issue of debentures.
Or
Arihant and Company Ltd. issued 6,000,12% debentures of ₹ 100 each to its vendor Suraj and Sons. These debentures are issued @ 15% premium for the consideration of plant purchased. A cheque of ₹ 3,50,000 was also issued to that vendor. Pass the necessary journal entries of the above-given information.
Answer:
Working Notes
1. 12% Debentures account = 6,000 x 100 = ₹ 6,00,000
2. Securities Premium Reserve Account =6,000 x 15= ₹ 90,000
3. Payable to Suraj and Sons =6,00,000 + 90,000 + 3,50,000 = ₹ 10,40,000
Question 5.
Following is the balance sheet of Hari, Ram, and Shyam as at 31st December 2019.
Balance Sheet
as at 31st December 2019
Ram retires on 31st March 2020. Under the partnership agreement, he was entitled to the following amounts.
(i) Amount standing to the credit of his capital account.
(ii) Interest on capital, which amounted to ₹ 62.50.
(iii) His share of goodwill ₹ 3,500.
Draw up Ram’s account.
Or
What journal entries would be passed for the following transactions on the dissolution of a firm of partners Raju and Priya after various assets and third-party liabilities have been transferred to realisation account?
(i) Workmen compensation reserve stood at ₹ 6,000 and liability in respect of it was ascertained at ₹ 6,000.
(ii) There was no workmen compensation reserve and firm had to pay ₹ 1,500 as compensation to the workers.
(iii) Building (Book value ₹ 50,000) sold for ₹ 80,000 through a broker who charged 2% commission.
(iv) Investments (Book value ₹ 4,000) realised 150%.
Answer:
Working Notes:
1. Ram’s share of goodwill, i.e., ₹ 3,500 to be distributed between Hail and Shyam in 1 : 1 ratio i.e.,
Hari =3,500 x \(\frac{1}{2}\) = ₹ 1,750, Shyani = 3,500 x \(\frac{1}{2}\) =₹ 1,750
2. Reserve Fund =3200 x \(\frac{1}{3}\) = ₹ 1066.67.
Question 6.
Following is the receipts and payments account of Star Club for the year ending 31st March 2020.
Receipts and Payments Account
Additional Information
(i) On 1st April, 2019 the club had investments ₹ 64,000, machinery ₹ 4,800, books ₹ 8,000.
(ii) Salary outstanding 31st March, 2019 ₹ 416 and 31st March, 2020 ₹ 528.
Prepare income and expenditure account for the year ending 31st March, 2020.
Answer:
Long Answer (LA) Type Questions (5 Marks)
Question 7.
A, B and C were partners sharing profits in the ratio of 2: 2 :1. The balance sheet on 31st March 2020, when they dissolved the firm was as follows
Balance Sheet
as at 31st March 2020
It was agreed that
(i) B is to take over all stock for ₹ 17,000 and some sundry assets at ₹ 72,000 (being 10% less than the book value).
(ii) The expenses of realization were ₹ 2,700. The remaining debtors were sold to a debt collecting agency at 50% of the value.
(iii) A to take over furniture at ₹ 8,000 and debtors amounting to ₹ 1,20,000 at ₹ 1,17,200 and the creditors of ₹ 16,000 were to be paid by him at this figure.
(iv) C to take over remaining sundry assets at 80% of the book value and assume the responsibility of discharge of loan together with accrued interest of ₹ 2,300.
Prepare necessary accounts to close the books of the firm.
Answer:
Working Notes
1. Book value of the sundry assetstaken over by B =72000 x \(\frac{100}{90}\) = 80,000
Remaining sundry assets = 1,17,000-80,000 = ₹ 37,000
Sundry assets taken over by C = 37,000 x \(\frac{80}{100}\) = ₹ 29,600
2. Book value of the debtors taken over by A = ₹ 1,20,000
Remaining debtors =1,24,200 – 1,20,000 = ₹ 4,200
Debtors collected by agency = 4200 x \(\frac{50}{100}\) = ₹ 2,100
Question 8.
From the following receipts and payments account of Sonic Club and from the given additional information prepare income and expenditure account for the year ending 31st December 2020 and the balance sheet as on 31st December 2019 and 31st December 2020.
Receipts and Payments Account
Additional Information
(i) The club had received ₹ 10,000 for subscription in 2019 for 2020.
(ii) Salaries had been paid only for 11 months.
(iii) Stock of sports equipment on 31st December 2019 was ₹ 1,50,000 and on 31st December 2020 ₹ 3,25,000.
Answer:
Working Note
The value of investments has been calculated as below
If interest is 8, the value of investments =100
If interest, is 20,000, the value of investments = \(\frac{100}{8} \) x 20,000 = ₹ 2,50,000
Question 9.
ABC Ltd. purchased assets of the book value of 8,00,000 and took over the liabilities of ₹ 1,00,000 for XYZ Ltd.
It was agreed that the purchase consideration settled at ₹ 7,60,000, be paid by issuing debentures of ₹ 100 each.
What journal entries will be made in the following cases, if debentures are issued
(i) at par
(ii) at a discount of 10%
(iii) at a premium of 10%
It was agreed that any fraction of debentures be paid in cash.
Or
Pass the journal entries for issue of debentures in following cases
(i) Raghu Ltd. issued 35,000, 9% debentures of ₹ 100 each payable on application and redeemable at premium of 10% after 5 years.
(ii) Raghu Ltd. issued 3,000,10% debentures of ₹ 100 each issued at a premium of 10% and redeemable at a premium of 10%.
(iii) Raghu Ltd. issued 4,000,11% debentures of ₹ 100 each issued at a discount of 10% and redeemable at a premium of 10%.
Answer:
Working Notes
1. No. of debentures =\(\frac{7,60,000}{90}\) = 8,444.44
Taking 8,444 debentures only and rest take paid in cash.
2. No. of debentures = \(\frac{7,60,000}{110} \) = 6,909.090
Taking 6,909 debentures only and rest paid in cash.
Part B
(Analysis of Financial Statements)
Short Answer (SA) Type I Question (2 Marks)
Question 10.
State whether the following amounts to investing, operating or financing activity
(i) Sale of a fixed asset.
(ii) Receipts from the sale of goods and services.
Answer:
(i) Sale of fixed assets is investing activity. Investing activity relates to acquiring and selling of fixed assets.
(ii) Receipts from the sale of goods and services is an operating activity. Operating activities are the
primary activities of a business and involves manufacturing, distributing, selling, marketing etc.
Short Answer (SA) Type II Question (5 Marks)
Question 11.
Following is the balance sheet of Shri Ram Fabrics Ltd. who are engaged in the production and supply of green energy in the rural areas of India. Using the below information, prepare comparative balance sheet.
Or
From the following balance sheets of Drishti Ltd. prepare cash from operating activities for the year ended 31st March 2020.
Additional Information
(i) Debentures were issued on 31st March 2020.
(ii) Non-current investments were purchased on 31st March 2020.
(iii) Rate of interest on investments is 10% p.a.
Answer:
Long Answer (LA) Type Questions (5 Marks)
Question 12.
The summarised balance sheet of RK Ltd. as at 31st March 2019 and 2020 were as under Balance Sheet
as at 31st March 2019 and 2020
Additional Information
(i) Investments costing ₹ 4,000 were sold during the year 2019-20 for ₹ 4,250.
(ii) Provision for taxation made during the year was ₹ 4,500.
(iii) During the year, part of the fixed assets costing ₹ 5,000 was sold for ₹ 6,000 and the profit was induded in the statement of profit and loss.
(iv) Dividend paid during the year amounted to ₹ 20,000. You are required to prepare the cash flow statement.
Answer:
