1. (b) Interest on Drawings Rs.3,000 1 mark Working Note: 60,000 x 10/100 x 6/12
2. (b) 25,000 1 mark Working Note: Total Capital 2,00,000 x 4/1 = 8,00,000
Combined Capital = 2,00,000 + 3,00,000 + 2,00,000 = 7,00,000 Firm’s Goodwill = 8,00,000 – 7,00,000 = 1,00,000
His share = 1,00,000 x ¼ = 25,000
3. (d) Maintaining working capital of the company 1 mark 4. (c) Rs. 24,000 1 mark Working Note: 96,000 x 100/80 = 1,20,000 Total Purchase
Cash Purchase = 1,20,000 x 20/100 = 24,000 5. (c) Loan by Vinod Dr. 30,000
To Bank A/c 30,000 1 mark
Note: Vinod’s Capital Account is showing positive balance. Hence, his loan will be paid first before the payment of his capital.
6. (d) 7,400 1 mark Working Note: 9,47,500 – 22,500 = 9,25,000
9,25,000/125 = 7,400
7. (b) 20,000 1 mark Note: 5,00,000 x 4/100 = 20,000
Realisation expenses are paid and borne by him so no entry.
8. (a) Surinder’s Capital A/c Debit Rs.10,000 1 mark
9. Average Profit = 40,000 + 60,000 + 35,000 – 15,000 = 1,20,000/4 = 30,000 His share of profit = 30,000 – 20% = 24,000
24,000 x 2/5 = 9,600 1 mark 10. (c) Only Gainer Partners 1 mark 11. (a) 5:3 1 mark Note: old share + gain share
12. (b) 72,000 1 mark Note: 40,000 share of loss + 32,000 deficiency amount
13. (d) Interest on Drawings is not calculated in case of loss 1 mark
By Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSEBy Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSE 14.Opening balance of Match Fund ……….…… Rs.4,24,000 Add: Sale of Match Tickets ………..………Rs.4,73,000 Add: Donation for Match Fund ………..……….. Rs.1,00,000 Add: Deficiency on Match Fund ………Rs.3,000
Total Match Expenses 10,00,000 3 marks OR
Balance Sheet as at 31st March 2020 (Extract only)
Liabilities Amount Assets Amount
Capital Fund 8,00,000 Add: Transfer
From Building Fund 9,00,000 Building Fund 5,00,000 Add: Donation 4,00,000 Total 9,00,000 Less: Transfer to
Capital fund 9,00,000
17,00,000
Nil
Building 10,00,000
15. Vinod’s Capital A/c Dr. 30,000
To Kamlesh’s Capital A/c 30,000 Analytical Table
Particulars Vinod Kamlesh
Wrongly taken: Interest on capital
Profit 62,000
1,68,000 58,000
1,12,000 Total 2,30,000 1,70,000
Correct Distribution of Profit in 1:1 2,00,000 2,00,000
30,000 Dr. 30,000 Cr.
Working Note:
Total Closing Capital of Vinod and Kamlesh Add: Drawings
Less: Profit
15,00,000 1,00,000 (4,00,000) Total Capital at the beginning of the year 12,00,000 Interest on Capital = 10% of 12,00,000
Divisible Profit 4,00,000 – 1,20,000 = 2,80,000 2,80,000 was divided in 3:2 ratio
1,20,000 2,80,000
Calculation of opening capital and interest on capital (Detail explanation)
Particulars Vinod Kamlesh
Closing Capital Add: Drawings Less: Profit
8,00,000 50,000 (1,68,000)
7,00,000 50,000 (1,12,000)
Total 6,82,000 6,38,000
(Vinod 6,82,000 x 10/110)
Note: AK’s Commission 4,03,000 x 4/100 = 16,120
Partners’ Capital Account
By Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSEBy Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSE Share Forfeiture A/c Dr.(Being assets transferred to Realisation A/c)
Vinod’s Capital A/c Dr.
To Realisation A/c
(Being asset taken over by partner) Bank A/c Dr.
To Realisation A/c (Being assets sold) No Entry
Note: No entry for obsolete assets and assets handed over to creditors
3,00,000
Note: Total amount due to Vinod (interest on capital) = 15,000
Total amount due to Singh (Interest on capital 12,000 + Salary 18,000) = 30,000 But profit is only 30,000 (so it will be divided in the ratio of appropriations i.e. 15,000 : 30,000 OR 1:2
Partners’ Capital Account
Particulars Vinod Singh Particulars Vinod Singh
To Drawings
Expenditure Amount Income Amount
By Interest accrued on Defence Bonds By Subscription (Being debentures issued at discount, redeemable at premium)
By Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSEBy Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSE 30(Being interest transferred to Statement of P/L) (Being issue of 5000 Equity Shares) Fukrey Ltd. Dr.
To Bills Payable A/c
Particulars Vinod Kumar Yuvraj Particulars Vinod Kumar Yuvraj To Goodwill
By Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSEBy Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSE To AK’s Capital A/c(Being investment taken over by MK) MK’s Capital A/c Dr.
(Being allotment due) Bank A/c Dr.
To Sh. Allotment A/c (Being allotment received) Sh. First & Final Call A/c Dr.
To Sh. Capital A/c
To Securities Premium Reserve (Being call money due)
Bank A/c Dr.
To Sh. First & Final Call (Being call money due)
Sh. Capital A/c Dr.
Securities premium Reserve Dr.
To Sh. Forfeiture A/c To Sh. Allotment A/c To Sh. First & Final Call
(Being shares forfeited by the company) Bank A/c Dr.
To Sh. Capital A/c
To Securities Premium Reserve (Being reissued shares)
Sh. Forfeiture A/c Dr.
To Capital Reserve
(Being gain on reissue transferred to capital reserve 7,500/15,000 x 33,750)
7,83,750
18,00,000
17,10,000
1,50,000 15,000
82,500
16,875
7,83,750
15,00,000 3,00,000
17,10,000
33,750 41,250 90,000
75,000 7,500
16,875
OR Journal
Date Particulars L.F. Debit
(Amt.) Credit (Amt.) Bank A/c Dr.
To Sh. Application & Allot. A/c (Being Application money received) Sh. Application & Allot. A/c Dr.
To Sh. Capital A/c
To Securities premium Reserve To Sh. Calls in Advance A/c
(Being Application money adjusted) Sh. First Call A/c Dr.
60,00,000
60,00,000
40,00,000
60,00,000
30,00,000 10,00,000 20,00,000
By Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSEBy Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSE To Sh. Capital A/c(Being first call due) Bank A/c Dr.
Calls in Arrears A/c Dr.
Calls in Advance A/c Dr.
To Sh. First Call A/c (Being first call received)
Sh. Second & Final Call A/c Dr.
To Sh. Capital A/c (Being final call money due) Bank A/c Dr.
Calls in Arrears A/c Dr.
To Sh. Second & Final Call (Being call money due)
Sh. Capital A/c Dr.
To Sh. Forfeiture A/c To Sh. Calls-in Arrears A/c
(Being shares forfeited by the company) Bank A/c Dr.
Share Forfeiture A/c Dr.
To Sh. Capital A/c (Being reissued shares) Sh. Forfeiture A/c Dr.
To Capital Reserve
(Being gain on reissue transferred to capital reserve)
19,92,000 8,000 20,00,000
30,00,000
29,88,000 12,000
40,000
28,800 7,200
10,800
40,00,000
40,00,000
30,00,000
30,00,000
20,000 20,000
36,000
10,800
23. Financing Activities
24. (d) Capital work in progress 25. (d) Non-current Assets
26. No change in current ratio because no effect on current assets and current liabilities.
Only one current asset is converted into another current asset.
27. (d) Other Current Assets 28. (b) Outflow
29. (b) A Limitation
30. Total Assets to Debt ratio = Total Assets / Debt
= 7,50,000 + 19,50,000 = 27,00,000 Debt = Total Debt – Current Liabilities 19,50,000 - 4,50,000 = 15,00,000
Total Assets to Debt ratio = 27,00,000/ 15,00,000 = 1.8: 1 OR
Current Assets = 3,00,000 + 20,000 = 3,20,000 20,000 is added in current assets as increase in stock Current Liabilities = 1,40,000 + 20,000 = 1,60,000
20,000 is added in current liability as increase in creditors Current Ratio = Current Assets/Current Liabilities
= 3,20,000/1,60,000 = 2:1
Comparative Statement of Profit & Loss
Particulars Note
By Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSEBy Dr. Vinod Kumar Author of
: Ultimate Book of Accountancy 12th CBSE 32. Cash Flow StatementParticulars Details (Rs.) Amount (Rs.)
A. Cash Flow From Operating Activities Net Profit before Tax (see note)
Adjustment for Non-cash and Non-operating items:
Less: Gain on Sale
Add: Interest on Debentures Add: Interest on Bank loan Add: Patents amortised
Operating Profit before Working Capital Changes Less : Increase in Inventories
B. Cash Flow From Investing Activities Purchase of Plant & Machinery Non-current investment sold Non-current investment purchased Cash used in investing activities C. Cash Flow From Financing Activities Debentures
D. Net increase in cash & cash equivalents Add : Cash & Cash equivalents in the beginning E. Cash & Cash Equivalents at the end
Calculation of Profit = 2,00,000 + 60,000 loss + 1,20,000 Reserve + 18,000 Dividend + 1,00,000 Tax
To Bank A/c (Tax paid bal. fig.) To Bal. c/d
70,000 80,000
By Balance b/d
By Statement of P/L (Provision)
50,000 1,00,000
1,50,000 1,50,000