Students can access the CBSE Sample Papers for Class 12 Accountancy with Solutions and marking scheme Term 2 Set 9 will help students in understanding the difficulty level of the exam.
CBSE Sample Papers for Class 12 Accountancy Standard Term 2 Set 9 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.
Mayankar Ltd. purchased the business of Sabhyata Ltd. consisting of sundry assets of ₹ 8,60,000 and creditors of ₹ 1,40,000. ₹ 1,20,000 was paid in cash and for the balance, 6% debentures were issued at par. Pass the necessary journal entries.
Answer:
Question 2.
What is meant by issue of debentures for consideration other than cash? How are these debentures disclosed in the balance sheet?
Answer:
When debentures are issued to vendors against purchase of assets or against purchase of business, it is termed as issue of debentures for consideration other than cash. In this case, consideration for issue
of debentures is not cash but the assets or business.
Disclosure in the Balance Sheet Debentures issued for consideration other than cash appear under the head ‘non-current liabilities’ and sub-head ‘long-term borrowings’ in the balance sheet.
Question 3.
Vidya Ltd. invited applications for issuing 3,000, 9% debentures of ₹ 100 each at a premium of ₹ 50 per debenture. The full amount was payable on application. Applications were received for 4,000 debentures. Applications for 1,000 debentures were rejected and application money was refunded.
Debentures were alloted to the remaining applicants. Pass necessary journal entries for the above transactions in the books of Vidya Ltd.
Answer:
Short Answer (SA) Type II Questions (3 Marks)
Question 4.
Meena, Teena and Reena were partners sharing profits and losses in the ratio of 2 : 2 :1. Reena died on 31st March, 2021. Profits and sales for the calendar year 2020 were ₹ 2,00,000 and ₹ 20,00,000 respectively. Sales during January to March, 2021 were ₹ 1,50,000. You are required to calculate share of profit of Reena upto the date of her death.
Answer:
Percentage of profits to sales for the year ended 31st March, 2021 = \(\frac{2,00,000}{20,00,000}\) = 10%
Profits upto the date of Death = 1,50,000 x 10% = ₹ 15,000
Reena’s share of profit =15,000 x \(\frac{1}{5}\) = ₹ 3,000
Question 5.
Khushi, Avni and Reeta are partners sharing profits and losses in the ratio of 5 : 3: 2 respectively. On 31st March, 2020 their balance sheet was as under
Balance Sheet
as at 31st March, 2020
Reeta retires on the above date. Goodwill of the firm valued at ₹ 2,50,000. Record the necessary journal entries on Reeta’s retirement, assuming that goodwill is to be adjusted through the partner’s capital accounts.
Or
Arif and Varun were partners in a firm sharing profits in the ratio of their capitals.
On 31st March 2021, their balance sheet was as follows
Balance Sheet
as at 31st March, 2021
On the above date, the firm was dissolved.
(i) Debtors were realised at a discount of 5%. 50% of the stock was taken over by Arif at 10% less than the book value. The remaining stock was sold for ₹ 65,000.
(ii) Furniture was taken over by Varun for ₹ 1,35,000. Machinery was sold as scrap for ₹ 74,000.
(iii) Creditors were paid in full.
(iv) Expenses on realisation ₹ 8,000 were paid by Arif.
Prepare realisation account.
Answer:
Working Notes
2. Recta’s share of goodwill = \(\frac{2}{10}\) x 2,50,000 = 50,000. Gaining Ratio = 5:3
Question 6.
VK Ltd. raised a loan of ₹ 80,000 from America Bank, for which the company placed with the bank ₹ 1,00,000, 9% debentures as collateral security. As per the terms, the bank is obliged and bound to immediately release the debentures, as soon as the loan is repaid.
How will you show the debentures in the balance sheet of the company assuming that the company has recorded the issue of debentures as collateral in the books? Also pass the journal entries.
Or
Mehak Ltd. issued 5,000,9% debentures of ₹ 100 each at par for cash which are redeemable at 10% premium. It also issued 3,000,10% debentures of ₹ 100 each at 10% premium for cash which are redeemable at 10% premium. Pass necessary journal entries.
Answer:
Long Answer (LA) Type Questions (5 Marks)
Question 7.
From the following receipts and payments account and additional information provided, prepare the income and expenditure account of Sardar Patel Education Society for the year ended 31st March 2020.
| Receipts | Amt (₹) | Payments | Amt (₹) |
| To Balance b/d | 75,000 | By Rent | 4,750 |
| To Interest on Investments | 2,500 | By Postage Expenses | 750 |
| To Subscriptions | 90,000 | By 10% Investment (1st July) | 25,000 |
| To Sale of Newspapers | 1,500 | By Payment to Creditors | 1,750 |
| To Sale of Computers | 7,500 | By Advertisement Expenses | 5,500 |
| To Donations | 37,500 | By Salaries | 1,72,500 |
| By Balance c/d | 3,750 | ||
| 2,14,000 | 2,14,000 |
Additional Information
(i) Subscriptions due on 31st March, 2019 and 31st March, 2020 were ₹ 1,750 and ₹ 3,100 respectively.
(ii) Subscriptions paid in advance as at 31st March, 2019 were ₹ 900 and on 31st March, 2020 were ₹ 750.
(iii) The book value of computers on 1st April, 2019 was ₹ 25,000 of which half the computers were sold during the year.
(iv) The book value of investments on 1st April, 2019 was ₹ 37,500 and the rate of interest was 10% per annum.
(v) Creditors on 31st March 2019 were ₹ 3,750.
(vi) Outstanding expenses for rent, postage and salaries for the current year were ₹ 450, ₹ 200 and ₹ 7,500 respectively.
Answer:
3. Creditors on 31st March, 2019 were ₹ 3,750 out of which ₹ 1,750 paid during the year. Remaining creditors are ₹ 2,000. Payment to creditors will not be recorded in current year income and expenditure account.
4. Donations have been treated as of revenue nature.
Question 8.
Following is the balance sheet of Harsh, Mahima, and Karan as at 31st March 2020.
Balance Sheet
as at 31st March 2020
On 31st March, 2020, Karan desired to retire from the firm and the remaining partners decided to carry on the business.
It was agreed to revalue the assets and re-assess the liabilities on that date, on the following basis
(i) Land and building be appreciated by 30%.
(ii) Machinery be depreciated by 30%.
(iii) There were bad debts of ₹ 35,000.
(iv) The claim on account of workmen compensation fund was estimated at ₹ 15,000.
(v) Goodwill of the firm was valued at ₹ 21,000 and Karan’s share of goodwill was adjusted against the capital accounts of the continuing partners Harsh and Mahima who have decided to share future profits in the ratio 3: 4 respectively.
(vi) Amount due to Karan be settled by paying ₹ 1,00,000 in cash and balance by transferring to his loan account which will be paid later on.
Prepare revaluation account, capital accounts of partners and balance sheet of the new firm after Karan’s retirement.
Or A, B and C are partners sharing profits in the ratio of 3:1 :1. On 31st March, 2021 they decided to dissolve their firm. On that date their balance sheet was as under
The assets were realized and the liabilities were paid as under
(i) A agreed to pay his brother’s loan.
(ii) Investments realised 20% less.
(iii) Creditors were paid at 10% less.
(iv) Building was auctioned for ₹ 3,55,000. Commission on auction was ₹ 5,000.
(v) 50% of the stock was taken over by B at market price which was 20% less than the book value and the remaining was sold at market price.
(vi) Dissolution expenses were ₹ 8,000. ₹ 3,000 were to be borne by the firm and the balance by C. The expenses were paid by him.
Prepare realization account, bank account, and partners’ capital accounts.
Answer:
Working Notes
1. Calculation of Gaining Ratio
Gaining R.atio = New Share – Old Share
Harsh = \(\frac{3}{7}-\frac{1}{3}=\frac{9-7}{21}=\frac{2}{21}\) , Mahima = \(\frac{4}{7}-\frac{1}{3}=\frac{12-7}{21}=\frac{5}{21}\)
Gaining Ratio =2 : 5
2. Karan’s Share in Goodwifi
Karan’s share of goodwill =21,000 x \(\frac{1}{3}\) =₹ 7,000
Karan’s share of goodwill i.e., ₹ 7,000 will be adjusted by Harsh and Mahima in gaining ratio,
i.e. 2 : 5.
Harsh=7000 x \(\frac{2}{7}\)= ₹ 2,000,Mahima =7,000 x \(\frac{5}{7}\) = ₹ 5,000
Question 9.
The following is the receipts and payments account of Queen’s Club for the year ended 31st March, 2020.
Receipts and Payments Account
Additional Information
(i) Subscriptions include ₹ 6,000 for 2018-19 and ₹ 9,000 for 2020-21.
(ii) Stock of stationery on 31st March 2019 and 2020 was ₹ 3,600 and ₹ 2,700 respectively.
(iii) Stock of sports material at the beginning and end of the year was ₹ 6,000 and ₹ 10,500 respectively.
(iv) Rent includes ₹ 2,000 paid for March, 2019. Rent for March, 2020 is outstanding.
(v) Telephone expenses include ₹ 1,500 as quarterly rent up to 31st May 2020.
(vi) The value of building as on 31st March 2019, was ₹ 4,00,000 and you are required to write-off depreciation at 10%.
(vii) The value of investments on 31st March 2019 was ₹ 5,00,000 and the club made similar additional investments during the year on 1st October 2019.
You are required to prepare the income and expenditure account of the club for the year ended 31st March 2020.
Answer:
Part B
(Analysis of Financial Statements)
Short Answer (SA) Type I Question (2 Marks)
Question 10.
State whether the following would result into inflow, outflow or no flow of cash.
(i) Sale of marketable securities at par.
(ii) Decrease in inventories by ₹ 4,000.
Answer:
(i) No flow of cash as marketable securities are cash equivalent.
(ii) Inventories are current assets so decrease in inventories will increase cash flow from operating activities.
Short Answer (SA) Type II Question (3 Marks)
Question 11.
Below is the statement of profit and loss for the year ended 2019 of XYZ Ltd. Prepare common size statement of profit and loss.
Or
From the following statement of profit and loss, prepare comparative income statement.
Statement of Profit and Loss
for the years ending 31st March 2019 and 2020
Answer:
Working Notes:
1. Percentage of Other Expenses = \(\frac{\text { Other Expenses }}{\text { Revenue from Operations }}\) x 100
15 = \(\frac{7,50,000 \times 100}{\text { Revenue from Operations }}\) Revenue from Operations = ₹ 50,00,000
2. Percentage of Other income = \(\frac{3,00,000}{50,00,000} \) x 100 = 6%
Long Answer (LA) Type Question (5 Marks)
Question 12.
From the following balance sheet of SS Ltd. prepare cash flow statement.
Balance Sheet
as at 31st March, 2019 and 2020
Additional Information
(i) Debenture interest paid ₹ 18,000.
(ii) Preference shares were issued at the end of the year.
Answer:
Notes:
1. It has been assumed that the tax provided during the previous accounting year ₹ 60,000 has
been paid during the current accounting year and the tax provided for 2019-20 is ₹ 84,000.
2. Bank overdraft’s treatment is a part of financing activities,
Working Note
Calculation of Net Profit before Tax and Extraordinary Activities
| Particulars | Amt(₹) |
| Net Profit (24,000- 20,000) | 4,000 |
| (+) Transfer to General Reserve | 10,000 |
| Provision for Taxation | 84,000 |
| Proposed Dividend of Previous Year | 1,00,000 |
| 1,98,000 |