Sample Paper -1 By Dr. Vinod Kumar

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For CBSE Examination March 2021

ACCOUNTANCY

Class – XII

Time allowed: 3 hours Maximum Marks: 80 General Instructions:

1. This question paper contains Two parts A & B. 2. Both the parts are compulsory for all.

3. All parts of questions should be attempted at one place. 4. Marks are given at the end of each question.

Part – A

NPO, Partnership, Share Capital and Debentures

1. Vinod (a partner) gets commission on Sale Rs.7,000. This will be recorded in: (a) Profit and Loss Account (b) Profit and Loss Adjustment Account (c) Profit and Loss Suspense Account (d) Profit and Loss Appropriation Account

[1]

2. In case of admission of a partner, new partner compensates the existing partners. Old partner also compensates when:

(a) There is loss in the firm (b) He is a Sacrificing partner (c) He is a Gainer Partner (d) His Sacrificing/Gain share is Nil

[1]

3. Which of the following cannot be used by a company to write off its capital losses?

(a) Securities Premium Reserve (b) Balance i.e. Surplus in Statement of Profit & Loss (c) Capital Reserve (d) Reserve Capital

[1]

4. Subscription Received during the year by Vinod Welfare Society Rs.4,00,000 Subscription outstanding in the beginning ……… Rs.30,000 Subscription outstanding at the end of the year ……….Rs.50,000 Subscription Shown in Income and Expenditure Account ……Rs.4,40,000 Subscription received in advance in the beginning ………..Rs.40,000 Subscription received in advance at the end of the year ……..Rs.25,000

During the year some amount of subscription was written off by the organisation. Find out the amount written off during the year due to non-payment.

(a) 25,000 (b) 30,000 (c) 15,000 (d) 5,000

[1]

5. At the time of Dissolution of Partnership, A Bill of Exchange of Rs.11,000 under discount was dishonoured as the acceptor had become insolvent and hence the bill had to be met by the firm. Identify the correct entry in this case:

(a) B/R A/c Dr. To Realisation A/c

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(b) Realisation A/c Dr. To B/R (c) B/R A/c Dr. To Bank A/c (d) Realisation A/c Dr. To Bank A/c

6. A Ltd. Forfeited 100 shares of 100 each issued at a premium of 50% to be paid at time allotment on which first call of 30 per equity share was not received, final call of 20 are yet to be made. These shares were reissued at 70 per share at 80 paid up Calculate Gain on reissue:

(a) 4000 (b) 3000 (c) 5000 (d) 2000

[1]

7. Vinod (a partner), his loan of Rs.15,000 was settled in Rs.13,000 at the time of dissolution of partnership firm. What will be the impact on Realisation Account?

(a) Realisation A/c Debit by Rs.2,000 (b) Realisation A/c Credit by Rs.13,000

(c) Realisation A/c Credit by 13,000 and Debit by Rs.2,000 (d) Realisation A/c Credit by Rs.2,000.

[1]

8. Kamlesh and Ravina were partners sharing profits in the ratio of 5:3. They admit Monika as a new partner for 2/10 share in profits.

Balance Sheet

Liabilities Amount Assets Amount

Stock 56,000

Stock of was overvalued by 12%. What value of Stock will be shown in the Balance Sheet of reconstituted firm?

(a) 49,280 (b) 50,000 (c) 62,720 (d) 62,000

[1]

9. DK, AK and PK are partners sharing profits in the ratio of 5:3:2. DK died on 30th_September 2020. Calculate his share of profit till the date of his death when sales for previous year 31st March 2020 were Rs.2,00,000 and Profit for that year was Rs.20,000. Sales shows a growth of 20% and percentage of profit earning is reduced by 1%.

_________ Amount of profit was calculated for DK.

[1]

10. At the time of retirement/death of a partner his share of goodwill is debited to remaining partners in their:

(a) Old Ratio (b) Sacrificing Ratio (c) Gain Ratio (d) Ratio of their capitals

[1]

11. Nirmala, Mona and Ravina were sharing profits in the ratio of 5:3:2. Nirmala died on 31st

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amount of profit was calculated Rs.30,000. The percentage of profit on sale was:

(a) 5% (b) 10% (c) 15% (d) 20%

12. Vinod a partner, interest on his drawings was charged Rs.720 for average period of 6 months @ 12 p.a. His drawings during the year were:

(a) 7,200 (b) 14,400 (c) 14,000 (d) 12,000

[1]

13. Pick the odd one out:

(a) Interest on Partners’ Capital (b) Interest on Partners’ Drawings (c) Interest on Partner’s Loan (d) Commission to Partners

[1]

14. From the following information, find out the subscription in arrears for the current year. Subscription received by Vinod Welfare Society during 2019-20 ……….. 1,00,000

Subscription credited to Income and Expenditure A/c for the year ………1,20,000 Subscription in arrears in the beginning was ………....8,000 Subscription received in advance in the beginning was ……… 20,000 Subscription received in advance at the end of the year ………12,000 Subscription still in arrears for the previous year ………..…. 3,000 OR

Find the amount of stationery to be shown in Income and Expenditure Account of Vinod Welfare Society:

Particulars 2019 2020

Creditors for stationery

Stock of Stationery 15,000 70,000 60,000 2,00,000

Payment made to creditors during the year Rs.3,00,000. Stationery purchased in cash during the year was 25% of the total purchase of stationery.

[3]

15. Vinod, Kamal and Rohit are partners sharing profits in the ratio of 3:2:1. Their capitals on 1st April 2020 were: Rs.5,00,000; Rs.4,00,000 and Rs.3,50,000 respectively.

(i) Vinod withdrew Rs.2,500 in the beginning of every month for personal use. (ii) Kamal withdrew Rs.10,000 at the end of each Quarter for his personal use. (iii) Rohit withdrew Rs.22,500 during the year for his personal use.

After preparing accounts, it was found that interest on capital was calculated only 10% p.a. instead of 12% p.a. and interest on drawings 8% p.a. was not charged at all. It was decided to pass a single adjustment entry to correct the above. Give adjustment entry.

OR

Vinod, Mukesh and Shiv are partners sharing profits in the ratio of 3:2:1. Their capitals on 1st_{April 2019 were Rs.5,00,000; Rs.3,00,000 and Rs.2,00,000 respectively. As per the} partnership deed partners are entitled to 10% p.a. interest on capital. Shiv is guaranteed a minimum profit of Rs.45,000 p.a. deficiency (if any) will be borne by Vinod and Mukesh in the ratio of 3:2.

The firm incurred a loss of Rs.90,000 for the year ended 31st_{March 2020. Give necessary} entries giving effect to the minimum guaranteed profit to Shiv.

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16. Vinod Ltd. forfeited 5,000 shares of Rs.10 each, fully called-up, on which they had received only Rs.35,000. Out of the forfeited shares 125 were reissued for Rs.9 per share fully paid up. Fill the following missing figures:

Date Particulars L.F. Debit Credit

Share Capital A/c Dr. To Share Forfeiture A/c

To Calls in Arrears A/c

(Being 5,000 shares forfeited for non-payment of Rs.15,000)

Bank A/c Dr. Share Forfeiture A/c Dr. To Share Capital A/c

(Being 125 forfeited shares reissued)

Share Forfeiture A/c Dr. To Capital Reserve

(Being gain on reissue of shares)

? ? ? ? ? ? ? ? . [4]

17. Vinod and Mohit were partners in a firm sharing profits and losses equally. They dissolved their firm on 31st_{March 2020. On this date, the Balance Sheet of the firm, apart from} realizable assets and outside liabilities showed the following:

Vinod’s Capital ……… 1,00,000 Cr. Mohit’s Capital ……….50,000 Dr. Profit & Loss A/c ……….10,000 Dr. Vinod’s Loan to the firm ……….15,000 General Reserve ………7,000 On the dissolution of the firm:

(a) Vinod’s Loan was repaid by the firm along with interest of Rs.500.

(b) The Dissolution expenses of Rs.1,000 were paid by the firm on behalf of Vinod who had to bear these expenses.

(c) An unrecorded asset of Rs.2,000 was taken over by Mohit while Vinod discharged an unrecorded liability of Rs.3,000.

(d) The dissolution resulted in a loss of Rs.60,000 from the Realisation of assets and settlement of liabilities. You are required to prepare:

(i) Partners Capital Accounts (ii) Vinod’s Loan Account

[4]

18. (a) Sahil and Vinod are partners in a firm having no partnership deed. Sahil has advanced Rs.1,00,000 as loan to the firm. He claimed interest at the usual rate of 10% p.a. as charged by the bank to which Vinod does not agree. State giving reason, which of the two is correct in this case.

(b) Give the adjustment entry and closing entry for recording commission allowed to a partner Vinod, when firm follows the fixed capital method.

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year ended 31 March 2020 and the additional information, prepare Income and Expenditure Account and Balance Sheet of the Club.

Receipts Amount Payments Amount

To Balance b/d (Cash) To Subscription:

2018-19 75,000 2019-20 1,00,000 2020-21 25,000

To Income from Sports (matches) To Interest on 8% Govt. Securities To Profit from Entertainment To Rent of Hall 50,000 2,00,000 60,000 5,000 25,000 10,000 By Salaries By Stationery By Rates and Taxes By Telephone Charges By 8% Govt. Securities at par By Sundry Expenses

By Billiard Table By Furniture

By Courier Service Charges By Balance c/d (Cash) 80,000 4,500 1,500 1,000 25,000 38,000 1,00,000 70,000 3,000 27,000 3,50,000 3,50,000 Additional Information:

(i) There are 1000 members, each paying an annual subscription of Rs.125. Subscription in arrears in the beginning Rs.87,500 and 100 members paid subscription in advance for 2019-20.

(ii) Stock of stationery on March 31, 2019 was Rs.1,500 and on 31st_{March 2020 Rs.2,000.} (iii) On March 31, 2020 the Rates and Taxes were prepaid to the following January 31, the annual charges being Rs.1,500.

(iv) Value of 8% Government Securities on 31st_{March 2019 was Rs.75,000 which were} purchased at par on that date. Additional Government Securities worth Rs.25,000 were purchased on 31.3.2020.

[6]

21. Vinod and Ram are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet as on 31st_{March 2020 was as follows:}

Sundry Creditors Provision for bad debts Outstanding Salaries General Reserve 20,000 2,000 3,000 5,000 Cash in hand Debtors Stock Furniture 10,000 18,000 22,000 40,000 [8] 20. Give Entries in the following cases assuming that company writes off all its capital losses in

the year in which it occurs.

(i) Vinod Ltd. took over running business with assets of Rs.6,00,000 and liabilities of Rs.60,000 from Fukrey Ltd for the purchase consideration of Rs.5,50,000. It paid the purchase consideration by issuing 8% debentures of Rs.100 each at 10% premium.

(ii) Vinod Ltd. purchased land from King Ltd. for Rs.4,50,000. The consideration was paid by issuing 5% debentures at a discount of 10% (Face value Rs100).

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Workmen Compensation Reserve Capitals: Vinod

Ram

20,000 60,000 40,000

Plant and Machinery

Deferred Revenue Expenditure

40,000 20,000

1,50,000 1,50,000

On the above date, Divij was admitted for 1/6th_{share in profits in the following terms:} (i) Divij brings Rs.30,000 as his capital but could not bring anything for his share of goodwill. It was decided to open current account for the same.

(ii) A liability towards workmen compensation was Rs.25,000.

(iii) Debtors Rs.1,500 will be written off as bad and a provision of 5% will be created for bad and doubtful debts.

(iv) Stock was overvalued by 10%; Furniture after admission was Rs.50,325 and Plant and Machinery appreciated by Rs.10,000.

(v) Creditors of Rs.7,000 were paid in cash and a creditor of Rs.2,000 not recorded in the books was to be taken into account.

(vi) There is an unrecorded computer which was worth Rs.12,000. Prepare Revaluation Account and Partners Capital Account.

OR

X, Y and Z are partners sharing profits in the ratio of 2:2:1. The firm closed its books on 31st March every year. On the above date in 2020, Z retired. According to the provisions of partnership deed, retiring partner is entitled for the following in the event of his retirement: (i) Capital as per the last balance Sheet.

(ii) Interest on capital @ 6% per annum till the date of his retirement (it is due for full year) (iii) His share of goodwill to be determined on the basis of three years purchase of the average profits of last four years. The profits of last four years were:

Year 2016-17 2017-18 2018-19 2019-20

Profit 30,000 50,000 40,000 60,000

(iv) There was a balance of General Reserve Rs.20,000 in the Balance Sheet of the firm at the time of his retirement. Which will be retained in the business.

(vi) Amount due to Z was paid by giving a cheque.

The balance of Z’s Capital Account in the beginning of the year was Rs.60,000 and he took Rs.12,000 for his personal expenses during the year. Interest on his drawings is to be charged @10% p.a.

Prepare Z’s Capital Account.

22. Vinod Ltd. issued for public subscription 50,000 Equity Shares of Rs.10 each at a premium of 50% on face value payable as under:

On Application ………. Rs.5 each

On Allotment ………. Amount along with premium First & final call ……… Rs.3 per share

Applications were received for 75,000 shares. Allotment was made to all the applicants on pro-rata basis, excess money (if any) is to be adjusted on allotment only.

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Directors of the company decided to forfeit his shares after the call. Out of the forfeited shares 60% were reissued to Kamlesh as fully paid up at Rs.8 per share. Give journal entries without opening calls in arrears and calls in advance account.

OR

Vinod Ltd. invited application for 50,000 Equity Shares of Rs.10 each at a premium of 40%, payable as:

On Application ……… Rs.4 along with 50% Premium On Allotment ……….Rs.4 along with remaining premium On First & final Call ……….. Balance amount

Applications were received for 1,00,000 shares and Pro-rata allotment was made to the applicants in proportion of 3:2 after refunding Rs.1,50,000 to the applicants and a letter or regret. The excess money was adjusted towards allotment only.

Sonal, to whom 100 shares were allotted, did not pay allotment and call money. Shweta who applied for 75 shares, failed to pay the call money. All these shares were forfeited after the call. All forfeited Shares were reissued @ Rs.8 per share fully paid up. Give necessary entries.

Part – B

Financial Statement Analysis

23. Balance Sheet (Extract)

Note No. 2020 2019

Short Term Provisions

(Provision for Tax) 40,000 30,000

Additional Information: Tax paid during the year Rs.50,000.

How much amount of Tax will be added to the profit in operating activities? (a) 30,000 (b) 40,000

(c) 50,000 (d) 60,000

[1]

24. What will be the Current ratio of a company whose Net Working Capital is Rs.9,00,000 and

Current Liabilities Rs.3,00,000. [1]

25. Which of the following is not a part of Cash and Cash Equivalents? (a) Call Money (b) Marketable Securities

(c) Cheques in hand (d) Cash Credit

[1]

26. Which of the following is not added/deducted while calculating cash flow from Investing Activities?

(a) Purchase of Patents (b) Sale of Patents (c) Amortisation of Patents (d) Sale of Trademarks

[1]

27. Provision for doubtful debts is shown in Balance Sheet, liabilities side under current

liabilities and sub-heading ____________ [1]

28. Current Ratio of Vinod Ltd. is 3:1. Company has paid Rs.50,000 to the creditors. It will: (a) Increase the Current Ratio

(b) Decrease the Current Ratio

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(c) No Change in Current Ratio

29. If Quick Ratio of Vinod Ltd. is 2:1. Current Liabilities Rs.4,00,000 and Inventories Rs.2,00,000. Current Ratio will be:

(a) 1:1 (b) 2:1 (c) 3:1 (d) 2.5:1

[1]

30. Vinod Ltd. has a Current Ratio of 3.5:1 and Quick Ratio of 2:1. If the excess of Current Assets over Quick Assets as represented by Stock is Rs.1,50,000, calculate Current Assets and Current Liabilities.

OR Calculate Current Ratio from the following:

Shareholders’ Funds ……….Rs.60,000 Non-Current Assets ………..Rs.50,000 Total Assets ………..Rs.1,00,000 Non-current Liabilities ………..Rs.20,000

[3]

31. Prepare a Comparative Statement of Profit & Loss from the following details:

Particulars Note

No. 31.03.2020 31.03.2019

Revenue from operation 30,00,000 20,00,000 Other income (% of Revenue from operations) 15% 20% Expenses (% of Revenue from operations) 60% 50%

Tax 30% 30%

Show working clearly.

OR

Prepare a Comparative Statement of Profit & Loss from the following details:

No. 31.03.2020 31.03.2019

Revenue from operation 10,00,000 5,00,000 Purchase of Stock-in-Trade 6,50,000 2,00,000 Change in Inventories of Stock in Trade 60,000 50,000

Other Expenses 10% of Cost of

Revenue from Operations 20% of Cost of Revenue from Operations Tax 40% 30%

[4]

32. Vinod Ltd. reported a profit of Rs.90,000 for the year ended 31st_{March, 2020 after} considering the following:

Tax Provided during the year ……….. Rs.3,000 Amortization of Patents ………Rs.12,000 Profit on Sale of Land ……….Rs.5,000 Loss by Fire during the year ………. Rs.2,000 The Extract of Balance Sheet is given below:

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Marketable Securities 5,000 2,000 Proposed Dividend for year 2019 was Rs.10,000 and for 2020 was Rs.12,000. You are required to calculate Cash Flow from Operating Activities.

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Sample Paper 2 By Dr. Vinod Kumar

For CBSE Examination March 2021

ACCOUNTANCY

Class – XII

Part – A

NPO, Partnership, Share Capital and Debentures

1. One of the partners (Mr. Dev) in a partnership firm has withdrawn Rs 4,500 at the end of each quarter. Interest on his drawings is to be calculated at the rate of 6% per annum. Interest on his drawings will be:

(a) 810 (b) 400 (c) 405 (d) 304

[1]

2. Vinod and Sunita were partners sharing profits in the ratio of 3 : 2. They admitted Simran as a new partner for 3/10th share which she acquired 2/10th from Vinod and 1/10th from Sunita. The new profit sharing ratio of Vinod, Sunita and Simran will be________ .

[1]

3. When shares are issued and allotted to a selected group of persons privately and not to the public in general through public issue, it is known as __________

(a) Public Allotment (b) IPO

(c) Right issue (d) Private Placement of Shares

[1]

4. Which of the following is not a capital receipt? (a) Endowment Fund (b) Government Grants (c) Life-Membership Fee (d) Donations for Building

[1]

5. Mr. Surinder an old customer whose account for Rs.25,000 was written off as bad debt last year, paid 80% of the amount at the time of dissolution of firm. The correct entry to record this

transaction will be:

(a) Debtors A/c Dr. 20,000

To Bad Debts Recovered 20,000 (b) Bank A/c Dr. 20,000

To Bad Debts Recovered 20,000 (c) Bank A/c Dr. 20,000

To Realisation A/c 20,000

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(d) Realisation A/c Dr. 20,000

To Bad Debts Recovered 20,000

6. The Directors of Vinod Ltd. forfeited 70,000 Equity Shares of Rs.10 each, Rs.10 Called up, for non-payment of final call of Rs.1 per share. Half of the forfeited shares were reissued at Rs.20 per share fully paid up. On reissue of forfeited shares, the following amount will be transferred to the Capital Reserve Account:

(a) Rs.70,000 (b) Rs.1,40,000 (c) Rs.4,20,000 (d) Rs.3,15,000

[1]

7. At the time of dissolution of firm, creditors of Rs.38,000 were due, out of which 30,000 were due after 2 months and remaining were due after 2.5 months but they were paid immediately at a discount of 6% p.a.

The final amount paid to the creditors: (a) 34,200 (b) 37,600

(c) 38,000 (d) 37,500

[1]

8. Arvind and Vikram are partners sharing profits in the ratio of 2:1.

Stock 54,000

Stock was found overvalued to the extent of 20%. What amount of stock is to be shown in new balance sheet of firm at the time of reconstitution?

(a) 54,000 (b) 64,800 (c) 43,200 (d) 45,000

[1]

9. DK, AK and PK are partners in a firm sharing profits and losses in the ratio of 5:3:2. Their books are closed on March 31st every financial year.

DK died on 30th September 2020. His share of profit upto his death is to be calculated on the basis of sales till date of his death. Sales for the year ended March 31, 2020 was Rs.2,00,000 and profit for the same year was 10% on sales, sales shows a growth trend of 20% and percentage of profit earning is reduced by 1%.

The share of profit credited for deceased partner Rs………….

[1]

10. At the time of retirement of a partner, profit on revaluation will be credited to the capital accounts of :

(a) Continuing Partners in their old Profit Sharing Ratio (b) Continuing Partners in their new Profit Sharing Ratio (c) All Partners in their old Profit Sharing Ratio

(d) Only Retiring Partner

[1]

11. Which of the following account is not prepared at the time of retirement/death of a partner? (a) Profit and Loss Suspense Account

(b) Profit and Loss Adjustment Account (c) Profit and Loss Appropriation Account (d) Realisation Account

[1]

12. Vinod, Ravina and Latika are partners sharing profits in the ratio of 3:2:1. Latika is guaranteed by both the partners, a minimum profit of Rs.6,000 p.a. The firm incurred a loss of Rs.12,000 for the

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year ended 31st March 2020. How much amount of deficiency is borne by Vinod? (a) 4,800 (b) 8,000

(c) 5,000 (d) 5,400

[1]

14. How will the following items be treated while preparing the financial statements of a sports club?

Particulars Amount (Rs.)

Prize Fund 44,000

Interest on Prize fund Investments 6,000

Prizes awarded 46,000

Match expenses 64,000

Prize fund Investments 44,000

OR

From the following information of a charitable dispensary, calculate the amount of medicines consumed during the year that would appear in the Income & Expenditure account for the year ending 31st_March,2019:

Particulars Amount (Rs.)

Stock of Medicines on 01-04-2018 60,000

Creditors for medicines 01-04-2018 40,000

Stock of Medicines on 31-03-2019 10,000

Creditors for medicines 31-03-2019 25,000

Advance for medicines 31-03-2019 22,000

Credit purchase of medicines during the year 2,76,000

Cash purchase of medicines during the year 46,500

.

[3]

15. Jack, Vinod and Kapil were partners sharing profits in the ratio of 3:2:1. Their partnership deed provided the following:

(a) Jack get a monthly salary of Rs.5,000 per month. (b) Vinod get a lumpsum commission of Rs.30,000 p.a.

(c) Kapil was guaranteed of Rs.20,000. Any deficiency arising because of guarantee to Kapil will be borne by Jack and Vinod equally.

(d) Jack guaranteed the firm that he will earn an annual fees of Rs.1,00,000 for the firm. Jack earned fees of Rs.1,10,000 during the year.

The profit of the firm during 31st March 2020 was Rs.1,80,000 after considering the fees earned by Jack.

Give entries for the above transactions showing the distribution of profit among the partners. OR

Vinod, Vikram and Naveen are partners sharing profits in the ratio of 3:2:1.

(i) Vinod withdrew Rs.10,000 in the beginning of every month for his personal expenses. (ii) Vikram withdrew Rs.10,000 at the end of every month for his personal expenses. (iii) Naveen withdrew Rs.10,000 in the middle of every month for personal expenses.

[4] 13. Pick the odd one out; keeping in mind Partners’ Capital Account:

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It was found that interest on drawings was calculated only @6% p.a. instead of 10% p.a.

It was decided to pass single adjustment entry to rectify the above, assuming that partners capitals are fixed.

16. Vinod Ltd. issued 40,000 Equity Shares @ 10 each at a premium.:

Date Particulars L.F. Debit

(Amt.)

Credit (Amt.) Equity Share Capital A/c Dr.

Securities Premium Reserve A/c Dr. To Equity Share Second & Final Call A/c To Forfeited Shares A/c

(Being 2000 shares forfeited due to non-payment of second & final call of Rs.8 including premium of Rs.5) ? ? ? ? Bank A/c Dr. Forfeited Shares A/c Dr. To Equity Share Capital A/c

(Being reissued 1500 shares @ 8 per share fully paid)

? ?

?

Forfeited Shares A/c Dr. To Capital Reserve

(Being transferred to capital reserve)

?

? Complete the above table and fill the missing amounts

[4]

17. Pass necessary journal entries in the following cases on the dissolution of a partnership firm of partners A, B and C:

(i) Bank Loan of Rs.46,000 is paid off by the firm. (ii) B agreed to pay off his wife’s loan Rs.21,000.

(iii) There was an outstanding bill for repairs for Rs.5,000 which was paid off.

(iv) A Debtor whose debt of Rs.10,000 was written off as bad in the books earlier, now paid Rs.4,000 in full settlement.

[4]

18. Rohit and Ajay are partners. They do not have partnership agreement OR partnership deed. What is your suggestion to them in the following cases:

(i) Rohit wants to introduce his son Mohit into partnership business. Ajay objects to it.

(ii) Rohit spends more time in the business and Claims that he should get a salary of Rs.24,000 per month for his extra time.

(iii) Ajay has provided a capital of Rs.4,00,000 whereas Rohit has provided Rs.1,00,000 only as capital. Rohit however has provided Rs.2,00,000 as loan to the firm. What interest (if any) will be paid to Rohit.

(iv) Ajay wants that profit should be distributed in the ratio of their capitals by Rohit wants that profit should be distributed equally.

[4]

19. Given below is the Receipts and payments Account of Vinod Sports Club for the year ended 31.12.2008.

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Balance of Cash Balance of Bank Subscriptions

Life Membership Fee Tournament Fund Locker Rent

Sale of old sports material (costing 5,000)

Sale of old newspapers Legacy Entrance Fee 400 3,600 11,000 8,000 15,000 2,000 3,000 2,000 10,000 5,000 Salaries Billiard Table Office Expenses Stationery Tournament Expenses Furniture purchased

Sports equipment purchased FD on 1.1.2008 @ 12% p.a. Balance of Cash Balance of Bank 10,000 8,000 3,400 2,700 16,000 5,000 6,000 5,900 200 2,800 60,000 60,000 Additional information:

On 1.1.2008 subscriptions outstanding were Rs.800 and on 31 December 2008 Rs.900.

On 1.1.2008 the club had Building Rs.50,000; Furniture Rs.20,000 and Sports Equipment Rs.14,000. Charge depreciation @10% on these items (including purchases). Prepare Income and Expenditure Account.

20. (a) Vinod Limited purchased assets of Fukrey Limited for Rs.8,40,000 and took over the liabilities (creditors) of Rs.80,000 for an agreed purchase consideration of Rs.8,00,000. Vinod Limited issued 12% debentures of Rs.100 each at 25% premium for purchase consideration. Pass necessary Journal entries in the books of Vinod Limited.

OR

Pass necessary Journal entries for Issue of Debentures for the following:

(i) Issued Rs.4,00,000, 9% debentures of Rs.100 each at a premium of 8% redeemable at 10% premium.

(ii) Issued Rs.6,00,000, 9% debentures of Rs.100 each at par, repayable at a premium of 10%.

(iii) Issued Rs.10,00,000, 9% debentures of Rs.100 each at a premium of 5%, redeemable at par.

[6]

21. Vinod, Gaurav and Swami were partners in a firm sharing profits and losses in the ratio of 6:5:3. Their Balance Sheet as at 31st_{March, 2020 was as follows:}

Creditors General Reserve Capitals: Vinod Gaurav Swami 50,400 21,000 70,800 59,700 29,100 Bank Stock Machinery

Land and Building

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They agreed to admit Chirag into partnership and give him 1/8th_{share in the profits on the} following terms:

(i) Chirag will bring Rs.29,400 as his capital and Rs.28,140 as his share of goodwill premium. (ii) Prepare Partners’ capital account assuming that gain on revaluation was Rs.19,040. OR

Following is the Balance Sheet of Aruna, Karuna and Varuna as on 31st March 2020, who have agreed to share profits and losses in proportion of their capitals:

Capitals : Aruna 2,00,000 Karuna 3,00,000 Varuna 2,00,000 General Reserve

Workmen compensation fund Sundry Creditors

7,00,000 35,000 15,000 50,000

Land & Building Machinery Closing Stock Debtors 1,10,000 Less : Provision 10,000 Cash at Bank 2,00,000 3,00,000 1,00,000 1,00,000 1,00,000 8,00,000 8,00,000

On March 31st 2020, Aruna 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:

(a) Land and Building be appreciated by 30%. (b) Machinery be depreciated by 20%.

(c) There were Bad Debts of Rs.17,000.

(d) The claim on account of workmen compensation fund was estimated at Rs.8,000. (e) Goodwill of the firm was valued at Rs.1,40,000 and Aruna’s share of goodwill was

adjusted against the capital accounts of the continuing partners Karuna and Varuna who have decided to share future profits in the ratio of 4:3 respectively.

Prepare Revaluation Account and Give entry for adjustment of goodwill only.

22. Vinod Ltd. Issued 4000 Equity Shares @10 each at a premium of Rs.40 each payable as: On Application ……….. 25 each (including 50% premium)

On Allotment ……….. Rs.3 each

On First & Final Call ……… Balance with premium

Applications were received for 7,000 shares out of which 1,000 applications were rejected and prorate allotment was made to the remaining applicants. Excess money adjusted towards allotment.

Surinder one shareholder who applied for 900 shares did not pay first & final call and his shares were forfeited.

Anuj to whom 400 shares were allotted, did not pay first & final call and his shares were also forfeited.

700 shares were reissued (including 50% of Anuj’s shares) @ Rs.8 each fully paid up. Give necessary entries without opening calls in arrears/advance account.

OR

(16)

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following terms :

Payable on application Rs.5 per share Payable on allotment Rs.3 per share

Payable on first and final call Rs.2 per share

Applications for 5,00,000 shares were received. It was decided: (a) to refuse allotment to the applicants for 20,000 shares; (b) to allot in full to applicants for 80,000 shares;

(c) to allot the balance of the available shares’ pro-rata among the other applicants; and (d) to utilise excess application money in part as payment of allotment money.

One applicant, whom shares had been allotted on pro-rata basis, did not pay the amount due on allotment and on the call, and his 400 shares were forfeited. The shares were reissued @ Rs.9 per share. Show journal and Cash book to record the above.

PART-B

23. Balance Sheet (Extract)

Equity and Liabilities 31.3.20 31.3.19

Bank Overdraft 40,000 1,00,000

Additional Information:

Interest on Bank Overdraft is paid @5% p.a. on 31st_{March every year. Amount paid against} Bank Overdraft on 30th_{September 2020.}

How much amount (related to above information) will be shown in Financing Activity for Cash Flow Statement prepared on 31st_{March 2020?}

(a) 65,000 (b) 62,500 (c) 65,500 (d) 63,500

[1]

24. If Quick Ratio is 1.5 and Quick Assets are Rs.60,000. Find out the value of Current Liabilities. [1]

25. Stores and Spare Parts are presented in company’s balance sheet under: (a) Other Current Liabilities (b) Inventories

(c) Cash and Cash Equivalents (d) Fixed Tangible Assets

[1]

26. Which of the following is part of Operating Activities? (a) Rent received by a Manufacturing company

(b) Rent received by a Trading company (c) Rent received by a Finance company (d) Rent received by a Real Estate company

[1]

27. Claims against the company not acknowledged as debts is ______________ Liability of the firm. [1]

28. If ____________ Ratio is high, it is considered better for the lenders. (a) Gross Profit Ratio

(b) Proprietary Ratio (c) Current Ratio

(d) Interest Coverage Ratio

[1]

29. If Debt Equity Ratio of Vinod Ltd is 3:1. Long term Borrowings Rs.4,00,000 and Long-term Provisions are Rs. 2,00,000. Find out the value of Equity (Shareholders Funds).

(a) 2,00,000 (b) 4,00,000 (c) 6,00,000 (d) 1,50,000

(17)

30. Find out Debt to Equity Ratio from the following information: Equity Share Capital is equal to the 40% of Long-term borrowings Long term provisions are equal to 50% of Equity Share Capital Debit balance of Statement of Profit & Loss Rs.40,000

Long-term Borrowings are 2.5 times of General Reserve General Reserve is 80,000

OR

From the following information calculate Interest Coverage Ratio. Profit before Tax and Interest ……….. 4,40,0000 12% Debentures ………20,00,000 Tax Rate ………40%

[3]

31. Prepare a Comparative Balance Sheet from the following:

No. 31.03.2020 31.03.2019

1. 2. 3. 4

I. Equity and Liabilities 1. Shareholders’ Funds (a) Share capital

(b) Reserves and Surplus 2. Non-Current Liabilities

Long term borrowings (Debentures) 3. Current Liabilities Trade Payables 40,00,000 4,00,000 10,00,000 6,00,000 40,00,000 1,00,000 7,50,000 1,50,000 TOTAL 60,00,000 50,00,000 II. ASSETS (1) Non-Current Assets (a) Fixed Assets

(i) Tangible assets (ii) Intangible assets (2) CURRENT ASSETS (a) Inventories

(b) Cash and cash equivalents

40,00,000 10,00,000 6,00,000 4,00,000 35,00,000 10,00,000 4,00,000 1,00,000 TOTAL 60,00,000 50,00,000 Show your working clearly.

OR

From the following information, prepare a Comparative Statement of Profit and Loss:

Particulars 31st_{March 2020} ₃₁st_March

2019

Revenue from Operations 6,00,000 4,50,000

(18)

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Other Incomes (% of Revenue from Operations)

Expenses (% of Revenue from Operations) Tax Rate 20% 60% 40% 30% 50% 40% Tax Rate is same in both the years.

32. Prepare a Cash Flow Statement from the following information of Vinod Ltd.

Particulars Note No. 2020 2019

I Equity and Liabilities 1. Shareholders’ Funds

(a) Share Capital

(b) Reserves and Surplus

2. Non-current Liabilities

Long term Borrowings

3. Current Liabilities

(a) Short-term Borrowings (b) Short-term Provision

Total

II ASSETS

1. Non-current Assets (a) Fixed Assets:

(i) Tangible Assets (ii) Intangible Assets

(b) Non-Current Investment 2. Current Assets:

(a) Current Investment (b) Inventories

(c) Cash and Cash Equivalents

Total 1 2 3 4 5 6 7 8 25,00,000 10,00,000 22,50,000 7,50,000 3,50,000 20,00,000 (2,50,000) 25,00,000 2,50,000 4,50,000 68,50,000 49,50,000 50,15,000 1,00,000 5,00,000 2,50,000 5,35,000 4,50,000 36,00,000 1,50,000 3,75,000 3,00,000 2,25,000 3,00,000 68,50,000 49,50,000 Notes to Accounts Particulars 2020 2019

1 Reserves and Surplus

Surplus i.e. Balance in Statement of P/L 10,00,000 (2,50,000)

2. Long-term Borrowings

12% Debentures 22,50,000 25,00,000

3. Short-term Borrowings

Cash Credit 7,50,000 2,50,000

4. Short-term Provision

Provision for Tax 3,50,000 4,50,000

5. Tangible Assets

Machinery (cost)

Less: Accumulated Depreciation (10,00,000) 60,15,000 (5,05,000) 41,05,000 50,15,000 36,00,000

6. Intangible Assets

Trademarks 1,00,000 1,50,000

(19)

Stock-in-Trade 5,35,000 2,25,000

8. Cash & Cash Equivalents Cash in Hand

Marketable Securities 1,50,000 3,00,000 3,00,000 ----

Additional Information:

(i) Interest paid on Cash Credit Rs.10,000.

(20)

By Dr. Vinod Kumar Author of

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Sample Paper – 3 By Dr. Vinod Kumar

For CBSE Examination March 2021

ACCOUNTANCY

Class – XII

Part – A

NPO, Partnership, Share Capital and Debentures

1. Vinod (one partner) has withdrawn Rs.60,000 for his son’s marriage. As per the Partnership deed interest on drawings is charged @10% p.a. There was a net loss during the year ending 31st_{March 2020 Rs.40,000.}

What decision Accountant should take regarding interest on drawings? (a) Interest on Drawings Rs.6,000 (b) Interest on Drawings Rs.3,000 (c) Interest on Drawings Rs.4,000 (d) No interest on drawings due to loss

[1]

2. Vinod and Arvind are partners sharing profits equally. Their fixed capitals were Rs.2,00,000 and Rs.3,00,000 on 1 April 2019. On 1st_{April 2020 they admit Vikram for 1/4}th_{share in the} profits. Vikram brought Rs.2,00,000 for his capital which was to be kept fixed like the capitals of other partners. The Balance Sheet shows an amount of General Reserve Rs.40,000 and Profit & Loss A/c (Cr. Balance) Rs.20,000.

How much amount Vikram should bring for premium for Goodwill? (a) 1,00,000 (b) 25,000

(c) 10,000 (d) 50,000

[1]

3. The Balance of Securities Premium (received on issue of Equity Shares) cannot be used by a company for _____________

(a) Buy-back of its own shares

(b) Issuing fully paid bonus shares to the members (c) Payment of Premium on Redemption of Debentures (d) Maintaining working capital of the company

[1]

4. Vinod Welfare Society has provided the following information:

Credit purchase of stationery Rs.96,000. Stationery purchased in cash during the year was 20% of the total purchase of stationery. Creditors for stationery in the beginning were Rs.8,000 and at the end were Rs.24,000.

Cash purchase of stationery was: (a) Rs.22,400 (b) 19,200 (c) Rs. 24,000 (d) 16,000

(21)

of Rs.50,000. Vinod had also advanced a loan to the firm Rs.30,000.

From the following, identify the correct entry for the settlement of Vinod’s Loan: (a) Loan by Vinod A/c Dr. 30,000

To Vinod’s Capital A/c 30,000 (b) Vinod’s Capital A/c Dr. 50,000

To Loan by Vinod 30,000 To Realisation A/c 20,000 (c) Loan by Vinod Dr. 30,000

To Bank A/c 30,000 (d) Vinod’s Loan A/c Dr. 20,000

To Vinod’s Capital A/c 20,000

6. Vinod Ltd. purchased a running business of Anuj Ltd. for a purchase consideration of Rs.9,47,500. The purchase includes assets of Rs.12,00,000 and Liabilities of Rs.3,00,000. An amount of Rs.22,500 was paid by issuing a promissory note (payable after two months) in favor of Anuj Ltd. and the balance amount was paid by issue of Equity Shares of Rs.100 each at a premium of 25%.

Find out how many Equity Shares are to be issued: (a) 12,400 (b) 8,400

(c) 9,400 (d) 7,400

[1]

7. Vinod, a partner is to receive commission 4% of the value of net assets realized as remuneration for completing the dissolution work and was to bear realization expenses. Realisation expenses were Rs.30,000 paid by Vinod. The net assets realized Rs.5,00,000.

How much amount is to be credited to Vinod’s Capital Account? (a) 30,000 (b) 20,000

(c) 50,000 (d) 10,000

[1]

8. Vinod and Surinder are partners in a firm sharing profits and losses in the ratio of 2:1. On 1st April 2020, they decided to share profits and losses equally. On that date, their balance sheet showed a debit balance of Profit and Loss Account Rs.30,000.

How Surinder’s Capital Account will be affected by the change in profit sharing ratio? (a) Surinder’s Capital A/c Debit Rs.10,000

(b) Surinder’s Capital A/c Debit Rs.5,000 (c) Surinder’s Capital A/c Credit Rs.10,000 (d) Surinder’s Capital A/c Credit Rs.5,000

[1]

9. Modi, Shah and Pappu were partners sharing profits in 1:2:2. Pappu died on 1st_{April 2020. His} share of profit is to be calculated on the basis of average profits of last four years less 20%. The profits/losses of last four year were:

Year 31.3.2017 31.3.2018 31.3.2019 31.3.2020

Profit/loss 40,000 60,000 35,000 (15,000) loss

___________ amount of his share of profit was paid to the executor of Pappu on the above-mentioned date.

(22)

By Dr. Vinod Kumar Author of

Available at

10. On Retirement/Death of a partner, who will compensate?

(a) All Partners

(b) All Partners except outgoing partner (c) Only Gainer Partners

(d) Only Sacrificing Partners

[1]

11. KK, PP and MM are partners sharing profits in the ratio of 4:3:2. KK died and Gaining Ratio of PP and MM was calculated as 21/72 and 11/72.

What is the new Ratio of PP and MM? (a) 5:3 (b) 4:3

(c) 2:3 (d) 3:2

[1]

12. Arvind, Vinod and Vikram are partners sharing profits in the ratio of 3:2:1. Vikram is guaranteed a minimum profit of Rs.60,000. The firm incurred a loss of Rs.1,20,000 during the year. How much total amount is to be debited to Vinod’s Capital Account (including deficiency)?

(a) 40,000 (b) 72,000 (c) 32,000 (d) 64,000

[1]

13. Pick the wrong statement:

(a) Guaranteed amount will be paid to the partner whether there is profit or loss (b) Interest on Capital (appropriation) is not calculated in case of loss

(c) Temporary current account can be opened when capitals are fluctuating (d) Interest on Drawings is not calculated in case of loss

[1]

14. From the following information find out the Match Expenses made during the year: An Extract of Income and Expenditure Account

For the year ended 31st_{March 2020}

Expenditure Amount Income Amount

To Deficiency on Match Fund 3,000 Other information:

Opening balance of Match Fund ……….…… Rs.4,24,000 Sale of Match Tickets ………..………Rs.4,73,000 Donation for Match fund received during the year……….. Rs.1,00,000 OR

Present the following items in the Balance Sheet of Vinod Welfare Society as at 31st_March 2020:

Capital Fund on 1st_{April 2019 ……….. Rs.8,00,000} Building Fund on 1st_{April 2019 ………Rs.5,00,000} Donation Received for Building ………Rs.4,00,000

Expenditure on Construction of Building Rs.10,00,000. The construction work was completed at the end of financial year.

[3]

15. Vinod and Kamlesh are partners Their capitals at the year ending 31st_{March 2020 were} Rs.8,00,000 and Rs.7,00,000. Their Drawings during the year were Rs.50,000 each. Interest on capital was provided @10% per annum on opening capitals and profit was divided in the ratio of 3:2. The profit for the year was Rs.4,00,000.

It was found that there was no partnership deed and accountant was advised to rectify the errors by passing a single adjustment entry.

(23)

AK and TK started a partnership firm on 1st_{April 2019. AK brought in Plant and Machinery} valued at Rs.5,00,000 whereas TK brought in Furniture costing Rs.50,000 and Rs.7,00,000 in Cash.

Since the business needed more funds, TK gave a loan of Rs.2,00,000 to the firm on 30th_June 2019. Their Partnership Deed provided for:

(a) Interest on capital to be allowed @10% per annum (b) Interest on Drawings to be charged @6% per annum

(c) AK to be given a commission of 4% on the corrected net profit before charging commission. (d) TK to be given a salary of Rs.12,000 per annum.

TK withdrew Rs.5,000 at the end of every month and AK withdrew Rs.30,000 on 1st_August 2019.

The net profit of the firm, for the year 2019-20 after debiting TK’s salary of Rs.12,000 per annum but before considering any interest due to and due from the partners was Rs.4,00,000. You are required to prepare:

(i) Profit and Loss Appropriation Account (ii) Partners Capital Account

16. Complete this journal by filling missing figures:

Date Particulars L.F. Debit

(Amt.) Credit (Amt.) Share Capital A/c Dr.

To Share Forfeiture A/c To Calls in Arrears A/c

(Being 5,000 shares forfeited face value Rs.10 for non-payment of final call of Rs.15,000)

(Being 125 forfeited shares reissued @9 per share)

Share Forfeiture A/c Dr. To Capital Reserve

(Being Gain on reissue transferred)

? ? ? ? ? ? ? ? .. [4]

17. Give Entries for the following at the time of Dissolution of Firm:

The Book value of assets (other than cash and bank) transferred to realization account is Rs.3,00,000. Half of the assets are taken over by a partner Vinod at a discount of 20%. Out of the remaining assets 40% sold at a profit of 30% on cost. 5% of the balance being obsolete, realized nothing and remaining assets are handed over to a creditor in full settlement of his claim.

[4]

18. Vinod and Singh started a partnership business on 1st_{July 2019. They contributed Rs.5,00,000} and Rs.4,00,000 respectively. Profit sharing ratio was decided 3:2 and other terms of the partnership agreement are as given under:

(i) Interest on Capital is to be allowed @4% p.a. (ii) Singh is to get annual salary of Rs.24,000.

(24)

By Dr. Vinod Kumar Author of

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(iii) Vinod withdrew Rs.40,000 for personal use on 1st_{January 2020. Interest on drawings is to} be charged @6% p.a.

The profit for the year ended 31st_{March 2020, before making above appropriations was} Rs.29,400.

Prepare Profit and Loss Appropriation Account and Partners Capital Account for the year ended 31st_{March 2020.}

19. From the following Receipts and Payments Account of Vinod Welfare Club for the year

ended 31st_{March 2020 and the additional information, prepare Income and}

Expenditure Account and Balance Sheet of the Club.

To Balance b/d:

Cash in hand 19,000 Bank Balance 21,000 To Donation towards Sports Fund To Subscription

To Legacy (Specific)

To Interest on Sports Fund Investment To Sale of old newspapers

To Sale of Grass

To Sale of Drama Tickets To Life Membership Fee

40,000 50,000 2,00,000 1,00,000 4,000 2,000 4,000 30,000 70,000 By Salaries By Furniture By Billiard Table By Books By Sports Expenses By Drama Expenses By Rent By Defence Bonds 1.7.2019 By Stationery By Balance c/d: Cash in hand 5,000 Bank Balance 10,000 90,000 1,00,000 70,000 45,000 50,000 40,000 15,000 55,000 20,000 15,000 5,00,000 5,00,000 Additional Information:

(i) On 1st_{April 2019, Sports Fund was Rs.70,000 and 10% Sports Fund Investment Rs.70,000.} (ii) Information about Stationery:

1st_{April 2019} ₃₁st_{March 2020} Stock of Stationery

Creditors for Stationery

15,000 6,500

18,000 9,500

(iii) Interest accrued on Defence Bonds Rs.3,500.

[6]

20. On 1st_{April, 2019, Vinod Ltd. issued 8,000, 9% Debentures of Rs.1,000 each at a discount of} 6%, redeemable at a premium of 5% after three years. The company closes its books on 31st March every year. Interest on 9% Debentures is payable on 30th_{September and 31}st_March every year. The rate of tax deducted at source is 10%.

Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st_{March 2020.}

OR

Vinod Ltd. purchased machinery from Fukrey Ltd. and paid as follows: (i) By issuing 5,000 Equity Shares of Rs.10 each at a premium of 30%. (ii) By issuing 1,000, 8% Debentures of Rs.100 each at a discount of 10%.

(25)

Pass necessary journal entries for the purchase of machinery and payment made.

21. Vinod and Kumar are partners sharing profits and losses in the ratio of 3:2 respectively. On 31st_{March 2020 their Balance Sheet was as follows:}

Capital A/cs: Vinod 6,00,000 Kumar 3,00,000 Creditors Bills Payable General Reserve 9,00,000 2,00,000 1,00,000 50,000 Goodwill Machinery Building Stock Debtors Bank Balance 50,000 2,50,000 6,00,000 2,00,000 1,30,000 20,000 12,50,000 12,50,000

They admit Yuvraj as a partner with effect from 1st_{April 2020 for 1/3}rd_{share on the following} terms:

(i) Yuvraj bring in Rs.5,00,000 as his capital. His share of premium for goodwill to be

calculated on the basis of three years’ purchase of last five years average profits. The profits for the last five years were:

Year 2015-16 2016-17 2017-18 2018-19 2019-20

Profit 2,50,000 2,00,000 3,75,000 (1,25,000) 2,50,000

The profit of 2016-17 was calculated after charging Rs.50,000 abnormal loss of goods by fire. Yuvraj brings only 60% towards premium for goodwill and for remaining amount adjustment is to be made by opening his current account.

(ii) Building was overvalued by 20% and stock was undervalued by 20%. (iii) There is an unrecorded delivery Van worth Rs.70,000.

Prepare Revaluation Account and Partners Capital Account. OR

MK, AK and JK are partners in a firm, sharing profits and losses in the ratio of 3:1:1. Their Balance Sheet as at 31st_{March 2020 was as follows:}

Capital A/cs: MK 70,000 AK 50,000 JK 50,000 Trade Creditors General Reserve

Investment Fluctuation Reserve Provision for doubtful debts 1,70,000 15,000 6,000 9,000 5,000 Cash at Bank Sundry Debtors Investment (at cost) Plant & Machinery Goodwill 40,000 30,000 35,000 88,000 12,000 2,05,000 2,05,000

MK retired on 1st_{April, 2020 subject to the following adjustments:} (i) Goodwill of the firm to be valued at Rs.20,000

(26)

By Dr. Vinod Kumar Author of

Available at

(ii) Mohit to take over the investment at the market value Rs.40,000.

(iii) 25% of the General Reserve to be transferred to Provision for doubtful debts and the balance to be distributed amongst all the partners.

(iv) Creditors to be paid Rs.3,000 less.

(v) Investment Fluctuation Reserve not to be distributed. For this it was decided that the remaining partners would compensate the retiring partner through their capital accounts. (vi) MK to be paid Rs.20,000 immediately on retirement and the balance to be transferred to his loan account.

Pass journal entries on the date of MK’s retirement.

22. Vinod Fabrics Ltd. has authorised capital of Rs.50,00,000 divided into 5,00,000 Equity Shares of Rs.10 each. Company offered 3,00,000 shares of Rs.10 each at a premium of 20% per share. The amount was payable as follows:

On Application ……… Rs.2 per share along with 50% premium On Allotment ………Rs.3 per share

On First & Final Call ……….Balance with remaining premium

Applications for 3,50,000 shares were received. Applications for 25,000 shares were rejected and pro rata allotment was made to the remaining applicants. Over payments on application were adjusted towards sums due on allotment. All calls were made and duly received except allotment and final call on 15,000 shares allotted to Surinder. These shares were forfeited. Afterwards, half of the forfeited shares were reissued for Rs.82,500 as fully paid up.

Give entries in the books of Vinod Fabrics Ltd. without opening calls in arrears/advance account. OR

Vinod Ltd. Invited applications for issuing 10 Lakhs Equity Shares Face Value Rs.10 each at a premium of 10% payable as follows:

On Application and Allotment ……… 30% of face value along with premium On First Call ……….40% of face value

On Second and Final call ………. Balance

Applications were received 50% in excess and prorate allotment was made to all the applicants. Excess application money was adjusted on the sums due on calls.

Nidhi who had applied for 6,000 shares did not pay the first call and second & final call. Her shares were forfeited.

Out of the forfeited shares 90% were reissued at Rs.8 per share fully paid up. Give necessary journal entries by opening calls in advance/arrear account.

PART- B

[8]

23. Redemption of Debentures is shown by way of deduction under __________ activities while

preparing Cash Flow Statement. [1]

24. Which of the following items is not part of Inventories? (a) Loose Tools

(b) Stores and Spares (c) Work in progress

(d) Capital work in progress

(27)

(a) Contingent Assets (b) Contingent Liability (c) Other Current Assets (d) Non-current Assets

26. Purchase of goods for cash will increase the Current Ratio. Is this statement correct? Give reason in support of your answer.

[1]

27. Accrued Commission of Rs.60,000 will come under which heading while preparing Balance sheet of a company.

(a) Inventories (b) Trade Receivables (c) Other Non-current Assets (d) Other Current Assets

[1]

28. Purchase of Patents would result in: (a) Inflow

(b) Outflow

(c) No Flow of cash (d) None of the above

[1]

29. While doing Financial Statement Analysis, Historical Analysis of the financial statements is considered as:

(a) An Advantage (b) A Limitation

(c) Objective (d) Types of financial statement analysis

[1]

30. Calculate the ‘Total Assets to Debt ratio’ from the following information:

Current Assets Rs.11,00,000; Working Capital Rs.6,50,000; Shareholders’ Funds Rs.7,50,000 Total Debts Rs.19,50,000; Reserves and Surplus Rs.2,50,000.

OR

A company had Current Assets of Rs.3,00,000 and Current Liabilities Rs.1,40,000. Afterwards it purchased goods worth Rs.20,000 on credit. Calculate the current ratio after the purchase of goods.

[3]

31. Prepare a Comparative Statement of Profit & Loss from the following details:

No. 31.03.2020 31.03.2019

Revenue from operation 30,00,000 20,00,000

Other income (% of Revenue from operations) 15% 20%

Expenses (% of Revenue from operations) 60% 50%

Tax 30% 30%

OR

Prepare a Comparative Statement of Profit & Loss from the following details:

Particulars Note No. 31.03.2020 31.03.2019

Revenue from operation 10,00,000 5,00,000

Purchase of Stock-in-Trade 6,50,000 2,00,000

Change in Inventories of Stock in Trade 60,000 50,000

Other Expenses 10% of Cost of

Revenue from Operations 20% of Cost of Revenue from Operations Tax 40% 30%

(28)

By Dr. Vinod Kumar Author of

Available at

32. Following are the Balance Sheets of Vinod Limited for the year ended 31st_{March 2019 and 2020:}

Particulars 2020 2019

I. Equity and Liabilities

(1) Shareholders Funds:

(a) Share Capital 1 (b) Reserves & Surplus 2 (2) Non-current Liabilities:

Long term borrowings 3 (3) Current Liabilities:

(a) Short-term Borrowings 4 (b) Trade Payables

(c) Short-term Provision 5 Total

II. Assets

(1) Non-current Assets:

(a) Fixed Assets:

(i) Tangible Assets 6 (ii) Intangible Assets 7 (b) Non-current Investment

(2) Current Assets: (a) Current Investments (a) Inventories

(b) Trade Receivables

(c) Cash and Cash Equivalents Total 8,00,000 3,50,000 2,50,000 60,000 2,40,000 80,000 8,00,000 (40,000) 2,00,000 1,00,000 1,90,000 50,000 17,80,000 13,00,000 8,00,000 20,000 2,50,000 5,000 3,05,000 3,00,000 1,00,000 6,00,000 50,000 2,00,000 20,000 2,30,000 1,60,000 40,000 17,80,000 13,00,000 Notes to Accounts: Particulars 2020 2019 1. Share Capital Equity Share Capital

6% Preference Share Capital

5,00,000 3,00,000

5,00,000 3,00,000 8,00,000 8,00,000 2. Reserves and Surplus

Securities Premium Reserve General Reserve

Surplus i.e. Balance in Statement of P/L

10,000 1,40,000 2,00,000 20,000 (60,000) 3,50,000 (40,000) 3. Long-term Borrowings 8% Debentures 2,50,000 2,00,000 4. Short-term Borrowings 8% Bank Loan 60,000 1,00,000 5. Short-term Provisions

Provision for Tax 80,000 50,000

(29)

Plant and Machinery 8,00,000 6,00,000 7. Intangible Assets

Patents 20,000 50,000

Prepare a Cash Flow Statement after taking into account the following adjustment:

(a) At the end of the year Non-current investments were sold for Rs.1,50,000 (including 50% profit). (b) Income tax Rs.1,00,000 was provided

(c) Additional debentures were issued at premium on 1st_{April 2019.}

(d) Bank Loan was repaid on 1st_{October 2019.}

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(30)

By Dr. Vinod Kumar Author of

(1) (d) Profit and Loss Appropriation Account 1 Mark

Reason: Whether a partner get commission on sales OR Net profit, it comes

in Profit and Loss Appropriation Account. Because partner is allowed to take

commission only if there is some profit in the business. Commission on sale

is also treated as Appropriation for a partner.

(2) (c) He is a Gainer Partner 1 Mark

Reason: There is a rule, Gainer partner debit and sacrificing partner credit.

So if he is gainer, he will also compensate to the sacrificing partner.

(3) (d) Reserve Capital 1 Mark

(4) (d) 5,000 Subscription written off 1 Mark

Note: 4,40,000 + 30,000 + 25,000 – 4,00,000 – 50,000 – 40,000

(5) (d) Realisation A/c Dr. 1 Mark

To Bank A/c

(6) (a)

4000 1 Mark

(7) (d) Realisation A/c Credit by Rs.2,000 1 Mark

(8) (b) 50,000 1 Mark

Note: 56,000 x 12/112 = 6,000 (now 56,000 – 6,000)

(9) 5,400 1 Mark

Note: Expected Sale = 2,00,000 + 20% Growth = 2,40,000

(31)

His Share of profit = 2,40,000 x 9/100 x 5/10 x 6/12 = 5,400

(10) (c) Gain Ratio 1 Mark

(11) (d) 20% 1 Mark

Note: 30,000 x 10/5 = 60,000 Total profit for that period

60,000/3,00,000 x 100 = 20%

It means profit was calculated 20% on sales i.e. 3,00,000 x 20/100 = 60,000

Her share = 60,000 x 5/10 = 30,000

(12) (d) 12,000 1 Mark

(13) (c) Interest on Partner’s Loan 1 Mark

(14) Subscription Account 3 Marks

Particulars Amount Particulars Amount

To Subscription in Arrear To Income & Expenditure A/c To Advance Subscription 8,000 1,20,000 12,000 By Advance Subscription By Bank A/c By Subscription in Arrears For 2019 3,000 For 2020 17,000 20,000 1,00,000 20,000 1,40,000 1,40,000

OR

Creditors for Stationery Account

To Bank

To Bal. c/d 3,00,000 60,000 By Bal. b/d By Stationery A/c (Purchase. Bal. fig.)

15,000 3,45,000

3,60,000 3,60,000

(32)

By Dr. Vinod Kumar Author of

4,60,000 x 25/100 = 1,15,000

Now: Opening Stock 70,000 + credit purchase 3,45,000 + cash purchase

1,15,000 – Closing stock 2,00,000 = 3,30,000

Stationery to be debited to Income and Expenditure Account Rs.3,30,000

(15) Adjustment Table 4 Marks

Particulars

Vinod

Kamal

Rohit

Total

Profit

Should get 2% p.a. Interest

on capital

Less: Interest on Drawings

10,000

(1,300)

8,000

(1,200)

7,000

(900)

8,700

6,800

6,100

21,600

Profit 21,600 wrongly

distributed in 3:2:1

10,800

7,200

3,600

2,100 Dr. 400 Dr.

2,500

Cr.

Vinod’s Capital A/c Dr. 2,100

Kamal’s Capital A/c Dr. 400

To Rohit’s Capital A/c 2,500

OR

Vinod’s Capital A/c Dr. 45,000

Mukesh’s Capital A/c Dr. 30,000

Shiv’s Capital A/c Dr. 15,000

To Profit and Loss A/c 90,000

(Being loss distributed among the partners)

Vinod’s Capital A/c Dr. 36,000

Mukesh’s Capital A/c Dr. 24,000

To Shiv’s Capital A/c 60,000

(Being adjustment made for deficiency)

16. Journal

Share Capital A/c Dr.

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(Being 5,000 shares forfeited for non-payment of Rs.15,000)

(Being 125 forfeited shares reissued) Share Forfeiture A/c Dr. To Capital Reserve

(Being Gain on reissue of shares)

1,125 125 750 1,250 750

2+1+1

17

. Partners’ Capital Account

Particulars Vinod Mohit Particulars Vinod Mohit

To Balance b/d To Realisation A/c To P&L A/c To Realisation Loss To Bank (Exp.) To Bank A/c (Bal. Fig. paid)

5,000 30,000 1,000 70,500 50,000 2,000 5,000 30,000 By Balance b/d By Realisation A/c By Gen. Reserve By Bank A/c (Bal. fig.) 1,00,000 3,000 3,500 3,500 83,500 1,06,500 87,000 1,06,500 87,000

Vinod’s Loan Account

To Bank A/c 15,500 By Balance b/d

By Realisation A/c 15,000 500

15,500 15,500

3+1

18. (a) Vinod is correct because in the absence of partnership deed, interest

on loan cannot be more than 6% p.a. 2

(b) (i) Vinod’s Commission A/c Dr. 1

To Vinod’s Current A/c

(ii) Profit and Loss Appropriation A/c Dr. 1

To Vinod’s Commission A/c

(19)

Ans. Income and Expenditure Account 6

Expenditure Amount Income Amount

To Salaries

To Stationery Consumed To Rates and Taxes

80,000 4,000 1,500

By Subscription

By Income from sports matches By Interest 5,000+1,000

(34)

By Dr. Vinod Kumar Author of

1,000 38,000 3,000 98,500

By Profit from Entertainment

By Rent of Hall 25,000 10,000

2,26,000 2,26,000

Balance Sheet (Closing)

Advance subscription Capital Fund: Opening balance 2,02,750 Add: Surplus 98,500 25,000 3,01,250 Cash in hand Stock of Stationery Prepaid Rates and Taxes 8% Government Securities Interest Accrued Subscription Billiard Table Furniture 27,000 2,000 1,250 1,00,000 1,000 25,000 1,00,000 70,000 3,26,250 3,26,250

Balance Sheet (opening)

Advance Subscription

Capital Fund (Balancing Figure) 2,02,750 12,500 Cash in hand Stock of Stationery Prepaid Rates & Taxes 8% Government Securities Subscription 50,000 1,500 1,250 75,000 87,500 2,15,250 2,15,250

Calculation of Subscription in arrears at the end:

Subscription Account

To Subscription in Arrear (Opening) To Income & Expenditure A/c To Advance Subscription 87,500 1,25,000 25,000 By Advance Subscription By Bank By Subscription in Arrears at the end 12,500 2,00,000 25,000 2,37,500 2,37,500 (20) Journal 6

(i) Assets A/c Dr. Goodwill A/c Dr. To Liabilities A/c

To Fukrey Ltd.

(Being assets and liabilities acquired)

6,00,000 10,000 60,000 5,50,000 (1,500 – 1,250 + 1,250) To Telephone charges To Sundry Expense