Model Question Paper
Accountancy
BLUE PRINT
ACCOUNTANCY
S
No.
Typology Of Question
1
Remembering
Very
Short
Answer 1
mark
Ques No.
3,5,19
Short
Answer
I
3 Marks
Ques No.
7
2
Understanding
1,6
3
Application
4
High Order Thinking Skills
4,18
5
Evaluation
2
10
Total
8X1=8
4X3=12
8,9
Short
Answer
II
4 Marks
Ques No.
10
Long
Answer
I
6marks
Ques No.
23
Long
Answer
II
8Marks
Ques no.
11,21
13
16
20,22
14
15
5X4=20
4X6=24
17
2X8=16
Marks
%
16
20
24
30
20
25
16
20
4
5
80
100
(23 Question)
MODEL QUESTION PAPER-1
ACCOUNTANCY
CLASS-XII 2015
Max Marks 80
PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1.
End of existing agreement due to change in relationship of existing partner is called
(a) Revaluation of partnership.
(b) Reconstitution of partnership.
(c) Realization of partnership.
(d) None of the above.
(1)
2. Mr. A, Mr. B and Mr. C were partners in a firm sharing profits and losses in the ratio 1:1:1. At the time
of admission of a partner, the goodwill of the firm was valued at 60,000. The accountant of the firm
passed the entry in the books of accounts and thereafter showed goodwill at 60,000 as an asset in the
Balance Sheet. Was he correct in doing so? Why?
(1)
3. Mrs. X, Mrs. Y and Mrs. Z are partners. The firm had given a loan of 75,000 to Mrs. Y. They
decided to dissolve the firm. In the event of dissolution, the loan will be settled by:
(a) Transferring it to debit side of Realization account.
(b) Transferring it to credit side of Realization account.
(c) Transferring it to debit side of Mrs. Y’s capital
(d) Mrs. Y paying Mrs. X and Mrs. Z privately.
(1)
4. What is meant by Debenture issued as a collateral security? (1)
5. Tulsian Ltd. issued 50,000 shares of RS. 100 each payable RS.20 on application (on 1 st May 2012); RS.30
on allotment (on 1st January 2013); RS.20 on first call (on 1st July 2013) and the balance on final call (on 1 st
February 2014). Shankar, a shareholder holding 5,000 shares did not pay the first call on the due date. The
second call was made and Shankar paid the first call amount along with the second call. All sums due were
received.
Total amount received on 1st February was:
(a) RS.15,00,000
(b) RS.16,00,000
(c) RS.10,00,000
(d) RS.11,00,000
(1)
6. Sita and Geeta were partners sharing profits and losses in the ratio of 3:2. On April 1st 2013, they
decided to admit Rita for 1/5th share in the profits. They had a reserve of RS.50,000 which they wanted
to show in their new balance sheet. Rita agreed and the necessary adjustments were made in the books. On
October 1st 2013, Sita met with an accident and died. Geeta and Rita decided to admit Sita’s daughter Rekha in
theirRS.2,00,000 as capital. Calculate Sita share in the reserve on the date of her death.
(1)
7. State any three purposes for which securities premium can be utilized as per Co. Act, 2013 .
(3)
8. A and B were into the business of providing software solutions in India. They were sharing profits and losses in
the ratio 3:2. They admitted C for a 1/5 share in the firm. C, an alumni of IIT, Chennai would help them to expand
their business to various South African countries where he had been
working earlier. C is guaranteed a minimum profit of RS.2,00,000 for the year. Any share is to be borne by A and
B in the ratio 4:1. Losses for the year were 50000 Pass the necessary journal entries.
(3)
9. Raymonds Ltd. was registered with an authorized capital of RS.5,00,000 divided into 50,000 equity shares of
RS.10 each. Since the economy was in robust shape, the company decided to offer to the public for subscription
30,000 equity shares of RS.10 each at a premium of RS.20 per share. Applications for 28,000 shares were received
and allotment was made to all the applicants. All calls were made and duly
received except the final call of RS. 2 per share on 200 shares. Show the of Raymonds Ltd.as per Schedule VI
of the Companies Act 1956. Also prepare Notes to Accounts for the same.
(3)
10. Bata Ltd. had a prosperous shoe business. They were manufacturing shoes in India and exporting to Japan. Being
a socially aware organization, they wanted to pay back to the society. They decided to not only supply free shoes to
50 orphanages in various parts of the country but also give employment to children from those orphanages who
were above 18 years of age. In order to meet the fund requirements, they decided to raise 50,000 equity shares of
RS. 50 each and 40,000 9% debentures of RS.40 each. Pass the necessary journal entries for issue of shares and
debentures. Also identify one value
which the company wants to communicate to the society.
(3)
11. Following is the Balance Sheet of P, R and S who are sharing profits in the ratio 2:1:2 as
on 31st March 2013.
(4)
Liabilities
Amount(RS.) Assets
Amount(RS.)
Creditors
38,000 Building
2,40,000
Bills Payable
2,000 Stock
65,000
Capitals:
Debtors
30,000
P
1,94,000
Cash at bank
5,000
R
92,000
Profit and Loss Account
60,000
S
74,000
3,60,000
4,00,000
4,00,000
th
P died on 30 September 2013. She had withdrawn 44,000 from her capital on July 1, 2013. According to the
partnership agreement, she was entitled to interest on capital @8% p.a. Her share of profit till the date of death
was to be calculated on the basis of the average profits of the last three years. Goodwill was to be calculated on the
basis of three times the average profits of the last four years. The profits for the years ended 2009-10, 2010-11 and
2011-12 were RS.30,000, RS.70,000 and RS.80,000 respectively.
Prepare P’s account to be rendered to her executor.
12. K and L are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2:1 with capitals
RS.5,00,000 and RS.4,00,000 respectively. K withdrew the following amounts during
the year to pay the hostel expenses of her son.
RS.
1st April
5,000
st
1 June
4,500
1st Nov.
7,000
1st Dec.
2,500
L withdrew RS.7,500 on the first day of April, July, October and January to pay rent for the accommodation of his
family. He also paid RS.20,000 per month as rent for the office of partnership which
was in a nearby shopping complex.
Calculate interest on Drawings @6% p.a.
(4)
13. (a) A firm earned profits of RS.80,000, RS.1,00,000, RS.1,20,000 and RS.1,80,000 during 2010-11, 2011-12, 201213 and 2013-14 respectively. The firm has capital investment of RS.5,00,000. A fair rate of return on
investment is 15% p.a. Calculate goodwill of the profits of last four years.
(b) M and N are partners sharing profits and losses in the ratio of 7:3. M surrenders 2/10 th from his share and N
surrenders 1/10th from his share in favor of O, a new partner. Calculate new profit
sharing ratio and sacrificing ratio.
(6)
14. (a) Jyoti Company Ltd. has an equity share capital of RS.10,00,000. The company earns a return on investment of
15% on its capital. The company needed funds for diversification. The finance manager had the following options: (i)
Borrow RS.5,00,000 @15% p.a. from a bank payable in four equal quarterly installments starting from the end of the
fifth year (ii) Issue RS.5,00,000, 9% Debentures of Rs. 100 each redeemable at a premium of 10% after five years. To
increase the return to the shareholders, the company opted for option (ii). Pass the necessary journal entries for
issue of debentures.
(b) Walter Ltd. issued RS. 6,00,000 8% Debentures of RS. 100 each redeemable after 3 years either by draw of lots or
by purchase in the open market. At the end of three years, finding the market price of debentures at RS.95 per
debenture, it purchased all its debentures for immediate cancellation. Pass necessary journal entries for
cancellation of debentures assuming the company has sufficient balance in Debenture
Redemption Reserve.
(6)
15. Shashank and Sonu were partners in a firm sharing profits and losses in the ratio 4:3. They decided to
dissolve the firm on 1st May 2014. From the information given below, complete Realisation A/c, Partner’s
Capital Accounts and Bank A/c:
(6)
Dr.
Realisation A/c
Cr.
Liabilities
Amount(RS.)
Assets
Amount(RS.)
To sundry assets:
By Sundry liabilities:
-Machinery
5,60,000 -Creditors
40,000
-Stock
87,000 -Shashank’s wife
25,000
-Debtors
55,000
By Bank:
To Bank:
-Machinery
4,80,000
-Creditors
_ -Debtors
10,000
To Shashank’s Capital
-Shashank’s wife’
To Sonu’s Capital
-Realisation expenses
To profit transferred to:
Shashank’s capital 4000
Sonu’s Capital 3000
Dr.
Particulars
To Realisation A/c
To Bank A/c
Dr.
Particulars
To Balance b/d
To Realisation A/c
By Shashank’s Capital
34,000 -Stock
1,25,000
-typewriter
70,000
7,000 By Sonu’s Capital
-Debtors
7,000
7,90,000
Partner’s Capital AccountsCr.
Sonu(RS.
Shashank(RS.)
)
Particulars
_____
____ By
4,00,000
4,50,000 By
By
1,95,000
40,000
7,90,000
Shashank (RS.)
_____
_____
_____
Bank A/c
Amount(RS.)
Particulars
_______ By Realisation A/c
4,90,000 By Shashank’s Loan
By Shashank’s Capital
By Neha’s Capital
Sonu (RS.)
_____
_____
_____
Cr.
Amount(RS.)
______
4,000
4,00,000
_______
16. A and B are partners in a firm sharing profits and losses in the ratio 3:1. They admit C for a ¼ share on 31 st
March 2014 when their Balance Sheet was as follows:
Liabilities
Amount(RS.)
Assets
Amount(RS.)
Employees Provident Fund
17,000 Stock
15,000
Workmen’s Compensation
6,000 Debtors
50,000
Investment Fluctuation Reserve
4,100 Less provision for
Capitals: A
54,000 doubtful debts 2,000
48,000
B
35,000 Investments
7,000
Cash
6,100
Goodwill
40,000
1,16,100
1,16,100
The following adjustments were agreed upon:
(a) C brings in RS.16,000 as goodwill and proportionate capital.
(b) Bad debts amounted to RS.3,000.
(c) Market value of investment is RS.4,500.
(d) Liability on account of workmen’sRS.2,000. compensation
Prepare Revaluation A/c and Partner’s Capital A/cs.
OR
X, Y and Z are partners in a firm sharing profits in proportion of 1/2, 1/6 and 1/3 respectively. The Balance Sheet as
on April 1, 2014 was as follows:
Liabilities
Amount(RS. )
Assets
Amount(RS. )
Employees Provident Fund
12,000 Freehold Premises
40,000
Sundry Creditors
18,000 Machinery
30,000
General Reserve
12,000 Furniture
12,000
Capitals
Stock
22,000
X
30,000 Debtors
20,000
Y
30,000 Less provision for
Z
28,000 doubtful debts 1,000
19,000
Cash
7,000
1,30,000
1,30,000
Z retires from the business and the partners agree that:
(a) Machinery is to be depreciated by 10%.
(b) Provision for bad debts is to be increased to RS. 1,500.
(c) Furniture was taken over by Z for RS. 14,000.
(d) Goodwill is valued at RS. 21,000 on Z’s retirement.
(e) The continuing partners’ have decided to adjust after retirement of Z. Surplus or deficit if any, in their capital
accounts will be adjusted through their current accounts. Prepare Revaluation A/c and Partners’CapitalA/c’s.
(8)
17. Ganga Ltd. issued 50,000 shares of RS.10 each at a premium of RS.2 per share payable as RS.3 on application,
RS.4 on allotment (including premium), RS.2 on first call and the remaining on second call. Applications were
received for 75,000 shares and a pro-rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Soni who applied for 1,200 shares. All his shares
were forfeited. The forfeited shares were reissued for RS.9,600. Final call was not made. Pass necessary journal
entries.
OR
A Ltd. issued 30,000 shares of Rs. 10 each at a discount of Rs.1 per share payable as Rs.3 on application, Rs.2 on
allotment, Rs.2 on first Call and Rs.2 on second call.
Applications were received for 40,000 shares and a pro-rata allotment was made to all the applicants.
All money due were received except allotment and first call from Sanjeev who had applied for 2,000 shares. His
shares were forfeited after first call. Subsequently, the second call was duly made and duly received. Thereafter, the
forfeited shares were reissued for Rs 9 fully paid. Pass the necessary journal
Entries
(8)
PART B: ANALYSIS OF FINANCIAL STATEMENTS
18. Cash deposit with the bank with a maturity date after two months belongs to which of the following while
preparing cash flow statement:
(a) Investing activities
(b) Financing activities
(c) Cash and Cash equivalents
(d) Operating activities.
(1)
19. A Ltd is carrying on a Chit Fund Company. It invested Rs. 60,000 in shares and Rs. 30,000
in debentures of various companies during the year. It received Rs. 6,000 as dividend and interest. Find
out cash flows from investing activities.
(1)
20. (a) Name the sub
heads under the head current Liabilities in Equity and Liabilities part of
The Balance Sheet as per Schedule VI of the Companies Act 1956.
(b) State any two objectives of Financial Statements Analysis.
(4)
21. (a) From the following details, calculate Opening inventory: Closing inventory RS.60,000; Total Revenue
from operations RS.5,00,000 (including cash
revenue from operations RS.1,00,000); Total
purchases
RS.3,00,000 (including credit purchases RS.60,000). Goods are sold at a profit of 25% on cost.
(b) Current Assets of a company are RS.17,00,000. Its current ratio is 2.5 and liquid ratio is 0.95.
Calculate Current Liabilities and Inventory.
(4)
22. N Ltd. is into the business of back office operations. Honesty and hard work are the two pillars on which the
business has been built. It has a good turnover and profits. Encouraged by huge profits, it decided to give the
workers bonus equal to two months salary. Following is the Comparative Statement of Profit and Loss of N Ltd. for
the years ended 31st March 2013 and 2014.
(a) Calculate Net Profit ratio for the years ending 31st March 2013 and 2014.
(b) Identify any two values which N Ltd. wants to communicate to the society.
Particulars
Revenue from operations
Less Employee benefit expenses
Profit before tax
Tax rate 40%
Profit after tax
Note
No.
2012-13
(RS.)
20,00,000
8,00,000
12,00,000
4,80,000
7,20,000
2013-14
Absolute
Percentage
(RS.)
Change
change
30,00,000
10,00,000
50
10,00,000
2,00,000
25
20,00,000
8,00,000
66.67
8,00,000
3,20,000
66.67
12,00,000
4,80,000
66.67
(4)
23. Following are the Balance Sheets of PQR Ltd. as on 31st March 2014 and 2015:
Particulars
EQUITY AND LIABILITIES
(1) Shareholders Funds
(a) Share capital
(b) Reserves and Surplus
(2) Non Current Liabilities
Long term borrowings
(3) Current Liabilities
Trade Payables
Short term Provisions
Total
ASSETS
(1) Non Current Assets
(a) Fixed assets
(i) Tangible assets
(ii) Intangible Assets
Note No.
2014-15 (Rs.)
2013-14(Rs.)
14,00,000
5,00,000
10,00,000
4,00,000
5,00,000
1,40,000
2
1,00,000
80,000
25,80,000
60,000
60,000
16,60,000
3
4
16,00,000
1,40,000
9,00,000
2,00,000
1
(2) Current Assets
(a) Inventories
(b) Trade Receivables
(b) Cash and Cash Equivalents
Total
2,50,000
5,00,000
90,000
25,80,000
2,00,000
3,00,000
60,000
16,60,000
Notes to Accounts:
S.No.
1.
2.
3.
4.
Particulars
Reserves and Surplus
Surplus (i.e. balance in
Statement of Profit and Loss)
Short Term provisions
Provision for tax
Tangible assets
Machinery
Less Accumulated depreciation
Intangible Assets
Goodwill
As on 31.3.2015
(Rs. )
As on 31.3.2014
(Rs.)
5,00,000
4,00,000
80,000
60,000
17,60,000
(1,60,000)
10,00,000
(1,00,000)
1,40,000
2,00,000
Prepare a Cash Flow Statement after taking into account the following adjustment:
(i) Tax paid during the year amounted to RS. 70,000.
(6)
MODEL QUESTION PAPER-2
ACCOUNTANCY (055)
CLASS – XII C (2015-16)
Time Allowed – 3 Hrs.
Max. 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’
1.
Rita, Sita and Teena are partners in a firm and do not have a partnership agreement. Teena had
given a loan of Rs. 20,000 to the firm and expects an interest @ 10% for the loan. The other
partners do not agree to this. At what rate interest should be given to Teena:
(a) 5 %(b) 6% (c) 10 %
(d) Not to be given
(1)
2.
X, Y & Z are partners sharing profit and losses in the ratio of 3:2:1. Y retires and
the gaining ratio of X and Z is:
(a) 1: 1
(b) 2:1
(c) 3:1
(d) Can’t say
3.
4.
‘Escrow account’ is opened at the time of :
(a) Issue of shares (b) Admission of partners (c) Dissolution of firm
(d) Death of partner
6.
(1)
Securities Premium received at the time of issue of shares can be utilised by the company for:
(a)
(c)
5.
(1)
Issue of bonus shares (b)
To Write off preliminary expenses
To write off discount on issue of shares (d) all of the above
What rate of interest is to be paid for amount received as calls in advance ?
(a) 5 % p.a (b) 6 % pa. (c) 8 % p.a (d) 10 %p.a
A, B and C are partners in a firm. When the Accounts were closed on 31st March,
2012, it was found that Interest on Capital was allowed @ 4% instead of 6%p.a.
The capitals of partners were: A Rs.1,00,000 B Rs.80,000 C Rs.60,000
Give the necessary adjusting entry with proper workings.
(1)
(1)
(3)
7.
On 1st January, 2015 R Ltd has Rs. 50,000 as Debenture Redemption Reserve.The company has
to redeem its 12% Debentures at the end of 2015 worthRs.900000. Pass journal entries to
record the redemption of debentures.
(3)
8.
Pass necessary journal entries of ‘Issue of debentures’ for the following:
(i) S Ltd issued 150, 15% Debentures of Rs 100 each at a discount of 10%redeemable at a
premium of 10%.
(ii) J Ltd issued 600, 9% Debentures of Rs. 100 each at a premium ofRs 10 per Debenture,
redeemable at par.
(3)
9.
Anand and Sonu were childhood friends and colleagues in a company who werethinking of
starting something of their own someday. On 1st Jan, 2011 they thought of starting a stationery
depot for the financially backward children of their area. They also admitted Manoj a differently
abled educated youth who was unemployed as a partner of their firm without any capital
contribution. Sonu also approached Rohit Kaul from Jammu, who was also eager to start
something of this sort having lot of funds at his disposal, and persuaded him to join them.
The following terms were agreed upon:
i) Anand, Sonu and Rohit will contribute 30,000; 50,000 and 4,00,000 respectively as capital.
ii) Profit will be shared equally.
iii) Interest on capital will be allowed @ 5% p.a.
The Profits of the firm for the year ended 31st Dec 2014 were 50,000.
a) Identify any two values which according to you motivated them to start
the partnership firm.
(2)
b) Prepare Profit & Loss Appropriation Account of the firm for the year
ending 31st Dec 2014.
(2)
10.
R Ltd. purchased a running business from P Ltd for a sum of Rs.12,00,000 payable by issue of 5%
Debentures of Rs.10 each at a premium of Rs. 2 per debenture.
The Assets and liabilities were following:
Plant 4,00,000
Furniture 2,00,000
Building 4,00,000
Stock 3,00,000
Sundry Creditors 1,00,000
Record necessary Journal entries in the books of R Ltd.
(4)
11.
Janata Ltd. forfeited 1,500 shares of Rs. 10 each at a premium of Rs. 2 each due to non-payment
of First call of Rs. 3. The final call of Rs. 2 is not yet made. Out of these 900 shares were re-issued
at Rs. 6, Rs. 8 called up.
Fill the necessary amounts to complete the journal entries
(4)
Date
Particulars
1
Share Capital A/c Dr.
To Shares Forfeited A/c
To Calls in arrears A/c
(Being 1500 shares forfeited
Due to non-payment of First Call of Rs.3)
----
Bank A/c Dr.
To Shares Forfeited A/c Dr.
To Share Capital A/c
(Being Reissue of 900 shares @Rs6,
Rs.8 called up)
Shares Forfeited A/c Dr.
To Capital Reserve A/c
(Being balance in Forfeited Shares
Account transferred to Capital Reserve)
----
2
3
LF
Dr Amt
Cr Amt
---
-----
---------
12.
X, Y and Z were partners in a firm. Their capitals were Rs.1,00,000; Rs.2,00,000 and Rs.2,50,000.
Their agreement provided the following:
(i) The profit sharing ratio will be 1:2:2
(ii) X is being guaranteed a share of Profit Rs.50,000
(iii) Y will be allowed a salary of Rs.12,000 p.a.
(iv) Interest on capital will be allowed @ 12% p.a.
The interest on drawings were Rs.500, Rs.600, and Rs. 800 for X,Y and Z. The firmearned a profit
of Rs.2,88,900 during the year.
Prepare profit & loss appropriation account and show the workings.
(6)
13.
Archana, Bindu and Charu were partners sharing profits in the ratio of 3:2:1. Their Balance Sheet
as on 1st April 2014 was:
Liabilities
Amount
Assets
Amount
Creditors
20,000
Cash
20,000
General Reserve
Capitals:
Archana 1,00,000
Bindu
70,000
Charu
70,000
----------------
Total
30,000
Debtors
18,000
Stock
60,000
Furniture
52,000
Land & Building
1,40,000
2,40,000
2,90,000
2,90,000
Bindu Died on the above date and the executors were paid in the following manner:
a) Bindu’s Share of Goodwill was Rs. 6,000;
b) A provision for doubtful debts@ 5% was to be made on debtors;
c) Land & Building were to be depreciated by 5% and Stock was valued at
Rs. 61900.
d)Share of Profit is to be given on the basis of last years profit which is Rs. 6000.
e) Interest on capital is to be given @ 6% p.a.
Prepare Bindu’s capital a/c to be rendered to her executor.
(6)
14.
L, M and N were partners sharing profits and losses in the ratio of 5:3:2. On 31st Dec 2014 their
Balance Sheet was as under:
Liabilities
Capitals:
L 1,50,000
Amount
Assets
Property
Amount
1,20,000
M 1,25,000
N 75,000
------------Workmen’s
Compensation
Fund
3,50,000
30,000
Patents
30,000
Creditors
1,50,000
Machinery
1,50,000
Stock
1,90,000
Bank
40,000
Total
5,30,000
5,30,000
N retired on 31st March 2015 and it was agreed that:
(i)
Goodwill of the firm is to be valued at Rs.1,75,000.
(ii)
Machinery be valued at Rs.1,40,000; Patents at Rs.40,000 and Property at Rs.1,50,000
on this date.
(iii)
For the purpose of calculating N’s share in the profits of 2015, the profits should be taken
to have accrued on the same scale as in 2014, which was Rs.60,000.
Prepare N’s Capital Account and Revaluation Account.
(6)
15. Riya and Priya are partners, who share profit in the ratio of 3:2. Following is the
Balance sheet as on March 31, 2015.
Liabilities
Riya’s Capital 32500
Priya’s Capital 11500
----------Sundry Creditors
Amount
Reserve Fund
13,500
Total
44,000
48,000
Assets
Cash at Bank
Stock
Amount
40,500
7,500
Debtors 21,500
Less: PDD: 500
--------------
21,000
Fixed Assets
36,500
1,05,500
The firm was dissolved on March 31, 2015.
Close the books of the firm with the following:
a) Debtors realized at a discount of 10%
b) Stock realized at Rs. 7,000
c) Fixed assets realized at Rs. 40,000
d) Realisation expenses of Rs. 1,500 paid by Riya
e) Creditors were paid 10% less. Prepare necessary ledger accounts.
1,05,500
(8)
OR
A & B are partners sharing in the ratio 3:2 and their Balance Sheet is as follows:
Liabilities
Amount
Assets
Amount
Creditors
3600
Cash
1000
Bills Payable
2000
Debtors
3400
General Reserve
2400
Stock
2400
Machinery
4200
Building
20000
Capitals:
A 15 000
B
8 000
23 000
31000
31000
The other terms of agreement on C’s admission were as follows:
C will bring Rs. 10000 as Goodwill and Rs15000 as Capital.
a)
Building will be valued at Rs. 18500 and Machinery at Rs. 5000.
b)
A provision of 5% will be created on Debtors for Bad Debts.
c)
Capital Accounts of A and B will be adjusted as per C’s Capital. His profit
sharing ratio is ¼ in the new firm.
d)
Prepare Revaluation Account, Partner’s Capital Account and the Balance Sheet of new firm of
A,B& C.
(8)
16.
Creative Ltd issued Rs.10,00,000 divided into Rs.10 shares at a premium @ 20% per share,
payable as under:
On Application Rs.3 per share
On Allotment Rs.5 per share(including premium)
On First and Final Call Balance
Over payments on application were to be applied towards sums due on allotment. Where no
allotment was made, money was to be refunded in full.
The issue was oversubscribed to the extent of 1,20,000 shares. Applicants for 10,000 shares
were sent letters of regret. Shares were allotted in full to the remaining applicants.
All the money due was duly received except on 1000 shares held by Arun, who failed to pay the
allotment and calls money and his shares were forfeited.
(a)
Which value has been affected by rejecting the applications of the applicants who had
been sent letters of regret? Suggest a better alternative for the same.
(b)
Give Journal Entries to record the above transactions in the books of the company.
(8)
OR
R Ltd invited application for issuing 70,000 shares of Rs.10 each at par. The amount was payable
as follows:
On Application Rs.2 per share
On Allotment Rs.3 per share
On First & Final Call Rs.5 per share
Applications were received for 97,000 shares. Allotment was made on the following basis:
(i) To applicants for 45,000 shares – Full
(ii) To applicants for 50,000 shares – 50%
(iii) To applicants for 2,000 shares – nil.
All the money due were received in full except for 300 shares on which First & Final Call
money was in arrears.
(a)
(b)
Which value has been affected by the rejection of application of category (iii)
applicants? suggest a better alternative for the same.
Pass journal entries in the books of R ltd to record the above transactions.
(8)
PART ‘ B’
17.
X Ltd has a Current Ratio of 2:1. If the money is collected from debtors, will the ratio increase,
decrease or will not change?
(a) Increase
(b) decrease
(c) no change (d) can’t say
(1)
18.
Payment of dividend to shareholders is what type of activity?
(a) Financing activity (b) Investing activity (c) Operating activity (d) none
19.
Interest received by a Financing company will result in inflow, outflow or no flow.
(a) Inflow
20.
21.
(1)
(b) outflow
(c ) no flow
(d) can’t say
(1)
List the items which are shown under the heading, “Non-Current Assets” in the
Balance sheet of a company as per provisions of Schedule VI, of the Companies
Act 1956.
(3)
Prepare a Comparative Statement of Profit & Loss with the following information:
(4)
Revenue from operation
Cost of Material Consumed
Other Expenses
31st March, 2014
10 00 000
5 00 000
50 000
31st March, 2015
12 50 000
6 50 000
60 000
Interest on Investment @ Rs. 30 000 each year.
22.
23.
(a)
Find the value of Opening inventory when Closing inventory is 15,000
more than Opening inventory. Inventory Turnover Ratio is 6 times and cost of revenue
is 3,00,000.
(b)
A business has a current ratio of 4 : 1 and a Quick Ratio of 1.2 : 1. If the working capital is
Rs. 1 80 000, calculate the total current assets and Inventory.
(2 + 2=4)
From the following summarized balance sheet of a company, prepare a cash flow statement.
Particulars
I.
EQUITY AND LIABILITIES:
Shareholder’s Fund:
Share Capital
Reserve & Surplus
Current Liabilites:
Trade Payables
Total
II.
ASSETS:
NON- CURRENT ASSETS:
Fixed Assets
Current Assets:
Inventory
Trade Receivables
Cash & Cash Equivalents
Total
Notes to Accounts:
(1) Reserve & Surplus
General Reserve
Profit and Loss Balance
Note No.
1
31.3.2014
31.3.2015
31.3.2014
65 000
42 500
45 000
25 000
11 000
1 18 500
8 700
78 700
83 000
46 700
13 000
11 000
20 000
19 000
2 500
2 000
1 18 500
78 700
31.3.2015
27 500
15 000
15 000
10 000
--------42 500
Additional Information:
(i) Depreciation charged during the year amounted to Rs. 14 700.
(ii) An Interim Dividend paid during the year amounted to Rs. 7 000.
--------25 000
(6)
MODEL QUESTION PAPER-3
CLASSS:- XII COMM.
TIME ALLOWED:- 3 HOURS+ 15MINUTES
SUBJECT:- ACCOUNTANCY
MM- 80
General instructions:i. All questions are compulsory
ii. Attempt all parts of a question together.
1. Anant, Gulab and khushbu were partners in a firm sharing profits in the ratio of 5:3:2.
From 01.04.2014, they decided to share the profits equally. For this purpose the
goodwill f the firm was valued at Rs.2,40,000.
Pass necessary journal entry for the treatment of goodwill on change in the profit
sharing ratio of Anant, Gulab and Khushbu.
[1]
2. In the absence of partnership Deed, what is the rule relating to interest on partner’s
loan?
[1]
a. Interest @.10 %p.a
b. Interest @ 15%p.a
c. Interest @ 6% p.a.
d.Interest @ 16% p.a.
3. What are the circumstances in which the capital balances of the partners fluctuate,
when the capitals are fixed?
[1]
a. on admission
b. on retirement
c. on introducing new capital.
d. when capital becomes more than 5 lakh
4. The balance of Debenture Redemption reserve is finally transferred to :-[1]
a.Capital Reserve Account
b.Specific Reserve Account
c.General Reserve Account
d.None of these
5. Geeta, Sunita and Anita were partners in a firm sharing profits in the ration of 5:3:2.
On 1.1.2015 they admitted Yogita as a new partner for 1/10th share in the profits. On
Yogita’s admission, the Profit and loss A/c of the firm was showing a Debit balance of
Rs.20,000 which was credited by the accountant of the firm to the capital accounts of
Geeta, sinita and Anita in their profit sharing ratio. Did the accountant give correct
treatment? Give reason in support of your answer.
[1]
6. Give the meaning of forfeiture of shares.
[1]
7. What are the provisions regarding utilization of securities premium according to
Sec.78 of Co. Act 1956.
[3]
8. Capital invested in a firm is Rs.3,00,000. Normal rate of return is 10%. Average
profits of the firm are Rs.41,000 (after an abnormal loss of Rs.2,000). Calculate
goodwill at five times the super profit. [3]
9. On 1st April, 2012, Janta Ltd. Was formed with an authorized capital of Rs.50,00,000
divided into 10,000 equity shares of Rs.50 each. The company issued prospectus
inviting applications for 90,000 shares. The issue was payable as under:On Application: Rs.15
On Allotment: Rs.20 and on Call: Balance amount.
The issue was fully subscribed and the company allotted shares to all the applicants. The
company did not make the call during the year.
Show the following:
i.
Share capital in the Balance Sheet of the company as per revised Schedule- VI,
Part-I of the Companies Act, 1956.
ii.
Also prepare ‘ Notes to Accounts’ for the same.
[3]
10. Madan, Pradeep and Mohit are sharing profits and losses in the ratio of 5:3:2. They
decide to share future profits and losses in the ratio of 2:3:5 with effect from 1 st
April,2012. They also decide to record the effect of the following accumulated
profits and losses and reserves without affecting their book figures by passing a
single entry.
General reserve- Rs.12,000.
Profit and Loss A/c- Rs.48,000
Advertisement Suspense A/c- Rs.24,000
Pass the necessary single adjusting entry [3]
11. A, B and C are partners sharing profits in the ratio of 5:3:2. their Balance Sheet
as on march 31st, 2013 was as follows:
Liabilities
Creditors
Employees Provident
Fund
Capitals:
A- 1,00,000
B- 70,000
C- 50,000
Amount
20,000
26,000
2,20,000
2,66,000
C retired on the above date and it was agreed that:
i.
ii.
iii.
[4]
Assets
Cash
Debtors
Stock
Furniture
Building
Amount
16,000
16,000
80,000
34,000
1,20,000
2,66,000
C’s share of Goodwill was Rs.8,000;
5% provision for doubtful debts was to be made on debtors;
Sundry creditors were valued Rs.4,000 more than the book value.
Pass necessary journal entries for the above transactions on C’s retirement.
12. Prem, Param and Priya were partners in a firm. Their fixed capitals were Prem Rs.
2,00,000; Paaram Rs. 3,00,000 and Priya Rs.5,00,000. They were sharing profits in the
ratio of their capitals. The firm was engaged in the sale of ready- to eat food packets at
three different locations in the city, each being managed by Prem, Param and Priya.
The outlet managed by Param and Priya. Prem requested Param and Priya for a higher
share in the profits of the firm which Param and Priya accepted. It was decided that
the new profit sharing ratio will be 2:1:2 and its effect will be introduced
retrospectively for the last four years. The profits of the last four years were
Rs.2,00,000; Rs.3,50,000; Rs. 4,75,000 and 5,25,000 respectively. Showing your
calculations clearly, pass a necessary adjustment entry to give effect to the new
agreement between Prem, Param and Priya.
[4]
13. Pass necessary journal entries for the following transaction on the dissolution of the
firm:-:-[6]
i.
Sudha a partner agreed to pay off her husband’s loan Rs.19,000.
ii.
Sundry creditors of Rs.10,000 were paid at 5% discount.
iii.
Expenses of realisationRs.2,000 paid by partner Q.
iv.
Bank loan Rs.12,000 was paid.
v.
Profit on realization Rs.36,000 was distributed between P and Q in 5:4.
vi.
Firm had to pay outstanding salaries Rs.7,200, which were earlier not recorded.
14. Mona, Nisha and Priyanka are partners in a firm. They contributed Rs.50,000 each as
capital three years ago. At that time Priyanka agreed to look after the business as
Mona and Nisha were busy. The profits for the past three years were Rs.15,000,
Rs.25,000 and Rs.50,000 respectively. While going through the books of accounts,
Mona noticed that the profit had been distributed in the ratio of 1:1:2. When she
enquired from Priyanka about this, Priyanka answered that since she looked after
the business she should get more profit. Mona disagreed and it was decided to
distribute profit equally retrospectively for the last three years.
[6]
(a). You are required to make necessary corrections in the books of accounts of Mona,
Nisha and Priyanka by passing an adjustment entry.
(b). Identify the value which was not practiced by Priyanka while distributing profits.
15. Fill in the missing information in the following journal entries:- [6]
Journal of X Ltd.
DATE
PARTICULARS
L.F. AMT.(DR.) AMT.(CR.)
Own Deb. A/c……………….Dr.
-------To Bank A/c
----------(2,000 own debentures of Rs.100 each
puraachased at Rs…………..each for
immediate cancellation)
9% Deb. A/c…………Dr.
--------To …………………………A/c
1,88,000
To …………………………A/c
--------(cancellation of own Deb.)
……………………………A/c
Dr.
To …………………. Reserve A/c
( Profit on redemption transferred to
………… Reserve A/c)
------------
16. Record the journal entries for forfeiture and reissue in the following cases:
(a). X Ltd. Forfeited 60 shares of Rs.10 each, Rs.7 called up on which the shareholder had
paid application and allotment money of Rs.5 per share. Out of these, 45 shares were
re-issued to Naresh as Rs.7 paid up for Rs.8 per share.
(b). Y Ltd. Forfeited 300 shares of Rs.10 each, Rs.8 called up, issued at a premium of Rs.2
per share to ‘R’ for non-payment of allotment money of Rs.5 per share including
premium. Out of these, 210 shares were re-issued to Sanjay as Rs.8 called up for Rs.10
per share fully paid up.
(c). Z Ltd. Forfeited 900 shares of Rs.10 each issued at a premium of Rs.3 per share to R
for non-payment of first and final call of Rs.3 per share fully paid up. All the share were
reissued @ Rs. 3 per share fully paid-up.
(d). P Ltd forfeited 200 shares of Ravi of Rs.10 each Rs.8 called-up., on which he paid
application and allotment money of Rs.3 per share. Out of these, 100 shares were
reissued as fully paid-up for Rs. 8 per share.
[8]
Or
Sangita Ltd. Invited applications for issuing 60,000 shares of Rs.10 each at par. The
amount was payable as follows:
On Application Rs.2 per share
On allotment Rs.3 per share
On First and Final Call Rs.5 per share
Applications were received for 92,000shares . Allotment was made on the following
basis:
(i). To applicants for 40,000 shares – Full
(ii). To applicants for 50,000 shares – 40%.
(iii). To applicants for 2,000 shares – nil.
Rs.1,08,000 was realized on account of allotment (excluding the amount carried from
application money) and Rs.2,50,000 on account of call.
The directors decided to forfeit shares of applicants belonging to category (i) on which
allotment money was overdue. Give journal entries to record the above transactions in
the books of the company.
17. A,B and C are partners sharing profits and losses in the ratio 2:3:5. On 31 st March,
2011 their Balance Sheet was as follows:[8]
Liabilities
Amount
Assets
Amount
Cash
Bills Receivable
Furniture
Stock
Debtors
Investments
Machinery
Goodwill
18,000
Capitals:24,000
Sudha: 36,000
28,000
Rahim: 44,000
44,000
Kartik: 52,000
1,32,000
42,000
Creditors
64,000
32,000
Bills Payable
32,000
34,000
P & L A/C
14,000
20,000
2,42,000
2,42,000
They decided to admit ‘D’ their visually challenged and unemployed friend into
partnership. They admit D into partnership on the following terms.
i.
Furniture, Investments and Machinery are to be depreciated by 15%.
ii.
Stock is revalued at Rs.48,000.
iii.
Goodwill is to be valued at Rs.24,000.
iv.
Outstanding Rent amounted to Rs.1,800.
v.
Pre-paid Salaries Rs.800.
vi.
D will bring Rs.32,000 towards capital for 1/6th share and partners to readjust
their capital accounts on the basis of their profit-sharing ratio.
vii.
Adjustment of capitals will be made by cash.
Prepare Revaluation account, Partners’ Capital accounts after D’s admission.
Identify the values highlighted in the question.
Or
The Balance Sheet of Sudha, Rahim and Kartik who were sharing profits in the ratio of
3:3:4 as on 31st March,2012 was as follows:
Liabilities
Amount
Assets
Amount
General Reserve
10,000
Cash
16,000
Bills Payable
5,000
Stock
44,000
Loan
12,000
Investments
47,000
Capitals:Land & Building
60,000
Sudha: 60,000
Sudha’s Loan
10,000
Rahim: 50,000
Kartik: 40,000
1,50,000
1,77,000
1,77,000
Sudha died on June 30th 2012. The partnership deed provided for the following on the death of
a partner:
a. Goodwill of the firm be valued at two years purchase of average profits for the last
three years.
b. Sudha’s share of profit or loss till the date of her death was to be calculated on the basis
of sales. Sales for the year ended 31st March, 2012 amounted to Rs.4,00,000 and that
from 1st April to 30th June 2012 to 1,50,000. The profit for the year ended 31st March,
2012 was Rs.1,00,000.
c. Interest on capital was to be provided @ 6% p.a.
d. The average profits of the last three years were Rs.42,000.
e. According to Sudha’s will, the executors should donate her share to “Matri Chhaya- an
orphanage for girls”.
f. Prepare Sudha’s Capital Account to be rendered to her executor. Also identify the value
being highlighted in the question.
PART-B
(FINANCIAL STATEMENT ANALYSIS)
18. The prescribed form of the Balance Sheet for the companies has been given in the
schedule:[1]
a).Medium range, (b). VII, Part I, (c). VI, Part I, (d). None of t he above.
19. . Proposed dividend is a :(a). provision, (b). surplus,
(c). Non-current Liabilities(d). Long-term Loan.
[1]
20. Under which sub-headings will the following items be place in the Balance Sheet of a Co. as
per revised Schedule VI part I of the companies Act,1956:
[4]
i. Loose tools, ii. Bonds, iii. Loans repayable on demand, iv. Provision for warranties, v.
unclaimed dividend, vi. Capital Redemption Reserve, vii. Mining rights and viii.Proposed
dividend.
21. From the following statement of Profit and Loss of Green view Ltd. For the year ended 31st
March, 2013, prepare a Comparative Statement of Profit and Loss:
[4]
Particulars
Revenue from operations
Other incomes
Expenses
Rate of income tax was 40%
Note No.
2013-14
8,00,000
1,00,000
5,00,000
2012-13
6,00,000
50,000
4,00,000
22. (a). From the given information, calculate the inventory turnover ratio.
Revenue from Operations: Rs.2,00,000; GP: 25% on cost; Inventory at the beginning is 1/3 rd of
the inventory at the end which was 30% of revenue from operations
(b). A business has current ratio of 3:1 and a quick ratio of 1.2:1. If the working capital is
Rs.1,80,000, calculate the total current assets and value of Inventory.
[4]
23. Prepare a Cash flow Statement on the basis of the information given in the Balance Sheet of
Simco Ltd. As at 31.03.2014 and 31.03.2013.
[6]
Particulars
I.
EQUITY AND LIABILITIES
1. Shareholders’ Funds:
a. Share Capital
b. Reserves and Surplus
2. Non-Current Liabilities:
Long-term borrowings
3. Current Liabilities:
Trade Payables
TOTAL
II.
ASSETS:
1. Non-Current Assets:
a. Fixed Assets
Tangible Assets
b. Non-current Investments
2. Current assets;
a. Current Investments(Marketable)
b. Inventories
c. Trade receivables
d. Cash and Cash Equivalents
Note
No.
1
TOTAL
Notes to Accounts:-
31-03-2014
31-03-2013
2,00,000
90,000
1,50,000
75,000
87,500
87,500
10,000
3,88,500
76,000
3,88,500
1,87,500
1,05,500
1,40,000
1,02,500
12,500
4000
9,500
68,500
33,500
5,500
23,000
84,000
3,88,500
3,88,500
Note 1
Particulars
Reserves and Surplus
Surplus(Balance in Statement of Profit & Loss)
2014
2013
90,000
75,000
MODEL TEST PAPER-4
CLASS- XIITH
SUB-Accountancy
TIME- 3Hrs
M.M.- 80
Q1-
In the absence of partnership deed interest on capital is allowed at.
a) 8% p.a.
b) 6%p.a.
c)
12%p.a. d)
No interest
Q2- Somesh
and
Ramesh are partners in a firm with capitals of Rs. 3,00,000 and 4,00,000
respectively. They do not have a Partnership Deed. Ramesh wants to share the
profits in the ratio of capitals. State with reasons whether the claim is valid?
Q3-
In the event of death of a partner, the amount of General Reserve is transferred
to partners capital A/c in.
a) New profit sharing ratio,
b) Old profit sharing ratio
c) Capital ratio
d) Gaining ratio
Q4-
A, B and C are partners sharing profits in the ratio of 3:2:1 .on 1 st April, 2014 ,
they decided to share the profits equally. On that date, there was a credit
balance of Rs, 1,20,000 in their Profit and Loss Account and a balance of Rs
60,000 in the General Reserve. Pass Necessary Journal entry in the books of the
firm. The partners decided to distribute the profits and the General Reserve
before the change in profit sharing ratio.
Q5-
What is Reserve Capital?
Q6-
If a share of Rs 10 on which Rs 8 has been called-up only on the company being
wound upis called .
a) Rs. 10
Q7-
b) Rs. 8
c) Rs. 6
d) Rs. 2
If the loss on reissue of shares is less than the amount forfeited, the surplus is
transferred to .
a) Capital Reserve
b) An Asset
c) Revenue reserve
Q8-
Rakesh and Mahesh are partners in a firm. Mahesh suggests to Rakesh that the
firm should adopt two children from economically weaker sections of the society
and sponsor their education. Rakesh agrees to the suggestion. The firm identifies
a girl and a boy and undertakes their education cost. What value has been
fulfilled by them?
Q9-
As a Director of a company you had invited applications for 30,000 Equity Shares
oif Rs. 10 each at a premium of Rs. 2 each . The total application money
received @ Rs 2 per share was Rs 72,000. Name the kind of subscription. List
the three alternatives for allotting these shares.
Q10- X, Y and Z are partners in a firm sharing profits in 2:2:1 ration . The fixed
capitals of the partners were: X Rs 5,00,000; Y Rs . 5,00,000 and Z Rs 2,50,000 .
The Partnership Deep provides that interest on capital should be allowed @
10%p.a. and that Z should be allowed a salary of Rs 2,000 per month. The
profits of the firm for the year ended 31st March, 2014 after debiting Z’S salary
were Rs 4,00,000 . Prepare profit and Loss Appropriation Account.
Q11- A company issued 10,000 shares of the value of Rs, 10 each, payable Rs 3 on
application, Rs 3 on allotment and Rs.4 on the first and final call. All amounts are
duly received except the call money on 100 shares. These shares are
subsequently forfeited by Directors and are resold as fuly paid for Rs 500. Give
necessary journal entries for the transactions.
Q12- Tata Businesses Ltd. Has made a public issue of 10,00,000 Equity Shares of
Rs.10each. The issue is over-subscribed by 100 percent. The company decides to
reject applications for 5,00,000. Equity shares, allot 2,50,000 Equity shares to
applicants of 7,50,000 shares and make full allotment to the remaining
applicants. Has the company, in your opinion, not ignored any value?
Q13- P,Q and R were partners in a firm sharing profits in 2:2:1 ratio. The Partnership
Deed provided that on the death of a partner his executors will be entitled to the
following:
a)
b)
c)
d)
Interest on Capital@ 12% p.a.
Interest on Drawings @ 18% p.a.
Salary of Rs 12,000 p.a.
Share in the profit of the firm (up to the date of death) on the basis of previous
year’s profit. P died on 31st May, 2012. His capital was Rs 80,000. He had
withdrawn Rs 15,000 and interest on his drawings was calculated as Rs 1,200.
Profit of the firm for the previous year ended 31st March, 2012 was Rs.30,000.
Prepare P’s Capital A/c to be rendered to his executors.
Q14- A and B had been sharing profits andlosses equally. After dividing the profits for
the year 2013-14 Rs. 60,000, it was agreed that they would share profits and
losses from 1st April, 2013 in the ratio of 3:2. At that time it was also found that
while preparing accounts for 2013-14, interest on capital @5% p.a. was ignored.
The fixed capital of A and B were Rs. 1,00,000 and Rs. 80,000 respectively. Pass
a single adjustment entry to adjust the accounts of the partners.
Q15- Give journal entries in each of the following alternative cases assuming the face value of
a debenture being Rs. 100.
a) A
b) A
c) A
d) A
e) A
f) A
10%
10%
10%
10%
10%
10%
debenture
debenture
debenture
debenture
debenture
debenture
issued
issued
issued
issued
issued
issued
at
at
at
at
at
at
Rs. 100, repayable at Rs 100.
Rs. 95, repayable at Rs 100.
Rs. 105, repayable at Rs 100.
Rs. 100, repayable at Rs 105.
Rs. 95, repayable at Rs 105.
Rs. 105, repayable at Rs 110.
Q16- Mohan, Sohan and Rohan were partners in a firm sharing profits in the ratio of
2:2:1. On 28th February, 2004 their firm was dissolved. The Balance Sheet of the
firm at the date of dissolution was :
Liabilities
Rs.
Assets
Rs.
Creditors
80,000
Cash
7,000
Mohan’s Capital
75,000
Sundry Assets
1,30,000
Sohan’s Capital
5,000
Rohan’s Capital
23,000
1,60,000
1,60,000
Sundry Assets were taken over by Rohan for Rs. 65,000 and Mohan took over
the Creditors for Rs. 75,000 . Expenses of dissolution paid by Sohan were Rs.
5,000. Prepare Realisation Account, Partners Capital A/c and Cash A/c.
Q17- X, Y and Z are partners sharing profits and losses in the raio of 7:5 :4, Their
Balance Sheet as at 31st March, 2014 stood as:
Liabilities
Rs.
Capital A/c
X
2,10,000
Y
1,50,000
Z
1,20,000
Assets
Rs.
Sundry Assets
7,00,000
4,80,000
General Reserve
65,000
Profit & Loss A/c
25,000
Creditors
1,30,000
1,60,000
7,00,000
7,00,000
Q18- The Balance Sheet of a partnership firm of X and Y, who were sharing profits in
the ratio of 5:3 respectively, as at 31st March, 2012 was as follows:
Liabilities
Rs.
Assets
Rs.
Creditors
25,000
Cash at Bank
11,200
Gerneral Reserve
20,000
Bills Receivable
12,800
Capital A/c
Debtors
20,000
X
75,000
Stock
35,000
Y
60,000
1,35,000 Furniture
Machinery
21,000
30,000
Building
1,80,000
50,000
1,80,000
On the above date, Z was admitted on the following terms:
a) Z was to get 1/5th Share in the profits.
b) Z was to pay Rs 50,000 as capital and Rs 16,000 for his share of Goodwill.
c) Machinery was to be depreciated by 10% and Building was to be appreciated by
20%.
d) Stock was valued at 25% above cost. It was to be brought into the books of the
new firm at cost price.
e) There was a liability for repairs to Furniture amounted to Rs. 600 , the same
was to be recorded in the books.
f) Capital Accounts of the old partners were to be adjusted in the new profit
sharing ratio by opening the necessary current accounts. Prepare Revaluation
Account, capital account and the intial balance sheet of the new firm.
Q19- Messers Accountancy Publications Ltd. Issued 50,000 Equity shares of Rs. 10
each at a premium of 10% payab le as under: on application Rs.2 , on allotment
Rs. 5, on first Cal Rs 2, on final call Rs. 2 , The whole of the issue was called for
by the company and all the money was duly received except the allotment and
call money on 500 shares. These shares were, therefore. Forfeited and later on
reissued @ Rs. 9 per share as fully paid. Pass necessary journal entries to record
the above transactions.
PART-B
Q20
under what heads and sub-heads will you show the following items in the
Balance Sheet of a company as per Schedule-VI, Part-1 of Indian Companies Act,
1956?
a)
b)
c)
d)
Securities Premium Reserve
Balances with bank
Bills Receivable
Goodwill
Q21- From the following Statement of profit and loss of Earth Ltd. For the years ended
31st March 2015 and 2014, prepare common size statement of Profit and Loss.
Particulars
N.no. 31/3/15
31/3/14
i) Revenue from Operation
40,00,000
35,00,000
ii) Other income
2,00,000
1,00,000
iii) Total Revenue (I+II)
42,00,000 36,00,000
iv) Expenses:
Cost of Materials consumed
15,00,000
12,00,000
Changes in inventories of FG
2,00,000
1,00,000
5,00,000
4,00,000
3,00,000
2,10,000
25,00,000
19,10,000
17,00,000
16,90,000
and W.I.P.
Employees Benefit Expenses
Other Expenses
Total Expenses
v) Profit before tax (III-IV)
Additional information other expenses include provision for tax of Rs. 1,10,000
for the year ending 31st March 2014 and Rs. 1,50,000 for the year ending 31st
March, 2015.
Q22- From the details given below, calculate any two of the following rations; (a0
Current Ration (b) Quick Ratio (c) Working Capital turnover Ratio.
Information
Amt.
(Rs.)
Trade Receivables
4,00,000 Bills Payable
80,000
Inventory
1,60,000 Creditors
1,60,000
Marketable Securities
80,000
2,00,000
Cash
and
Equivalents
Information
Amt.
(Rs.)
Debentures
Cash 1,20,000 Expenses Payable
Prepaid Expenses
40,000
Revenue
Operations
1,60,000
from 20,00,000
Q23- Prepare a Cash Flow Statement from the following Balance Sheet:
Particulars
N.no. 31/3/13
31/3/12
i Equity and Liabilities
a)
Shareholder Funds
a) Share Capital
b) Reserves and Surplus
b)
1
6,00,000
5,00,000
4,00,000
2,00,000
2,80,000
1,80,000
Current Liabilities
a) Trade Payable
Total
Ii Assets
12,80,000 8,80,000
a)
Non –current Assets
a) Fixed Assets
Plant and Machinery
b)
5,00,000
3,00,000
a) Inventories
1,00,000
1,50,000
b) Trade Receivables
6,00,000
4,00,000
c) Cash & Cash Equi.
80,000
30,000
Current Assets
12,80,000 8,80,000
Notes to Accounts
Particulars
1
2013
2014
Reserves and Surplus
Surplus i.e. balance in the statement 4,00,000
of profit and loss.
2,00,000
Additional information:
1) An old machinery having book value of Rs. 50,000 was sold for 60,000.
2) Depreciation provided on Machinery during the year was Rs. 30,000.
MODEL QUESTION PAPER-5
Class:- XII Comm.
Subject- Accountancy
Time allowed – 3 Hours + (15 Minutes to read the question paper)
MM-80
General instructions:i.
ii.
iii.
This question paper contains three parts A and B.
Both parts are compulsory for all candidates.
All parts of the questions should be attempted at one place.
PART A
(PARTNERSHIP AND COMPANY)
Q1. What do you mean by partnership deed?
1
Q2. What preferential right a preference share holder get over equity share holder?
1
Q3. P ,Q and R are partners. Q retired from the firm and decided to transfer his claim to Nepal
earthquake relief fund. What value is fulfiied here?
1
Q4. Which type of company are exempted for creation of debebture redemption reserve(DRR):i)
Infrastructure company
ii)
Banking company
iii)
A private company
iv)
None of these
1
Q5. A company issued 200 shares @ Rs. 10 to Star furniture house for the purchase of furniture
worth Rs. 2,200. Pass journal entries.
1
Q6. Neha, nikita and nandini are partners in a firm which prepares toys by recycling unused
papers and plastics. Their profit sharing ratio is 5:3:2. Nikita lost his husband in a car accident
leaving her with a new born girl child. Neha and Nandini decided to share an guaranteed profit to
Nikita of Rs.10,000. Profit for the year ended 31st mar 2015 is Rs. 30,000.
i)
What amount of profit Neha and Nandini will get?
ii)
Identify the value mention in this question?
3
Q7. X and Y are partners in 4:1. They admitted Z for 1/5th share in profit. Z bring capital of
Rs.40,000 but could not bring any amount for his share of goodwill. The capital of X and Y are
Rs. 80,000 and 60,000 respectively.
Pass necessary journal entries .
3
Q8. Tom, Dick and Harry are partner in 5/10:3/10:2/10. After distribution of profit at the end of
the year they came to know that they had charged interest on drawing 10% p.a instead of 5% p.a.
now pass an adjustment entry to rectify it.
3
Q9. On 1st April, 2014, sugandha Ltd. Was formed with an authorized capital of Rs.50,00,000
divided into 10,000 equity shares of Rs.50 each. The company issued prospectus inviting
applications for 90,000 shares. The issue was payable as under:On Application: Rs.15
On Allotment: Rs.20
and on Call: Balance amount.
The issue was fully subscribed and the company allotted shares to all the applicants. The
company did not make the call during the year.
Show the following:
iii.
Share capital in the Balance Sheet of the company as per revised Schedule- VI,
Part-I of the Companies Act, 1956.
iv.
Also prepare ‘ Notes to Accounts’ for the same.
4
Q10. Maniram and Dhaniram are partners with capitals of Rs.15,00,000 and Rs. 10,00,000
respectively. They agree to share profits in the ratio of 3:2. Show how the following
transactions will be recorded in the capital accounts of the partners in case:
(i)
the capitals are fixed, and (ii) the capitals are fluctuating. The books are closed
on March 31, every year.
Particulars
Maniram
Dhaniram
(Rs.)
(Rs.)
Additional capital contributed
3,00,000
2.00,000
on July 1, 2005
Interest on capital
5%
5%
Drawings (during 2005)
30,000
20,000
Interest on drawings
1,800
1,200
Salary
20,000
Commission
10,000
7,000
Share in loss
60,000
40,000
for the year 2005
6
Q11. Pass necessary journal entries for the following transaction in the book of GH ltd:i)
ii)
iii)
issued 5,000 12% debenture of face value of Rs.100 each, redeemable at Rs. 110
issued 6,000 10% debenture @ Rs.95(face value Rs.100), redeemable at Rs.100
issued 3,000 9% debenture Rs.95 (face value Rs.100),redeemable at Rs. 110 4
Q12. A Banking company had 1,00,000 12% debentures @ Rs10 as on 31.12.2014. the company
decided to redeem the debentures in the following way:i)
ii)
50% of the debentures were redeemed out of profit.
50% of the debentures were redeemed by way of purchasing it from the open
market @92% of it face value.
Pass journal entries of redemption.
4
Q13. Amrinder, Mahinder and Joginder are partners in a firm. Mahinder retires from
the firm. On his date of retirement, Rs. 60,000 becomes due to him. Amrinder
and Joginder promise to pay him in instalments every year at the end of the
year. Prepare Mahinder’s Loan Account in the following cases:
1. When payment is made four yearly instalments plus interest @ 12% p.a.
on the unpaid balance.
2. When they agree to pay three yearly instalments of Rs. 20,000 including
interest @ 12% p.a on the outstanding balance during the first three years
and the balance including interest in the fourth year.
6
Q14..Iqbal and Kapoor are in partnership sharing profits and losses 3:2. They insure their lives jointly for
Rs. 75,000 at an annual premium of Rs. 3,400 to be debited to the business. Kapoor dies three months
after the date of the last Balance sheet. According to the partnership deed, the legal personal
representatives of Kapoor are entitled to the following payments
His capital as per the last Balance Sheet.
Interest on above capital at 3% p.a. to date of death.
His share of profits to date of death calculated on the basis of last year’s profits.
Profit on revaluation of fixed asset only.
His drawings are to bear interest at an average rate 2% on the amount irrespective of the period.
Assets revalued as
Items
S. Creditors
Land
Buildings
Debtors
Existing value
Revalued value
50,000
40,000
45,000
60,000
50,000
45,000
30,000
32,000
The net profits for the last three years, after charging insurance premium, were Rs. 20,000, Rs 25,000
and Rs. 30,000 respectively . Kapoor’s capital as per Balance Sheet was Rs 40,000 and his drawings to
the date of death were Rs. 5,000
Draw Kapoor’s account to be rendered to his representatives.
6
Q15.Value Added Ltd issued Rs. 10,00,000 new capital divided into Rs.100 shares at a premium of Rs.20
per share, payable as under:
On application
Rs.10 per share
On Allotment
Rs.40 per share (including premium Rs. 10 per share)
On first and final call
Balance
Over – payments on application were to be applied towards sums due on allotment and first and final
call. Where no allotment was made, money was to be refunded in full.
The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted
only 2,000 shares and applicants for 3,000 shares were sent letters \of regret. Shares were allotted in
full to the remaining applicants.
All the money due was duly received.
(a) Which value has been affected by rejecting the applications of the applications who had applied for
3000 shares? Suggest a better alternative for the same.
(b) Give journal entries to record the above transactions (including cash transactions) in the books of the
company.
Or
Prabhu Ltd invited applications for issuing 60,000 shares of Rs10 each at par. The amount was payable
as follows:
On Applications
Rs. 2 per share
On allotment
Rs. 3 per share
On first and final call
Rs. 5 per share
Applications were received for 92,000 shares. Allotment was made on the following basis:
I To applicants for 40,000 shares – full
II To applicants for 50,000 shares- 40%
III To applicants for 2,000 shares – Nil. Most of this category had applied for less than 5 shares each.
Rs.1,08,000 was realized on account of allotment (excluding the amount carried from application
money) and Rs. 2,50,000 on account of call.
The directors decided to forfeit shares of those applicants to whom full allotment was made and on
which allotment money was overdue.
(a) Which value has been affected by the rejection of application of category (III) applicants? Suggest a
better alternative for the same.
(b) Pass journal entries in the books of Prabhu Ltd to record the above transactions.
Q16.X and Y are partners as they share profits in the proportion of 3:1 their balance sheet
as at 31.03.12 as follows.
Liabilities
Capital Account
X
Y
Creditors
BALANCE SHEET
As at March 31st, 12
Rs Assets
Land
1,76,000 Building
1,45,200 Stock
91,600 Debtors
Bills Receivable
Cash
4,12,800
Rs
1,65,000
24,500
1,32,000
35,200
28,600
27,500
4,12,800
On the same date, Z is admitted into partnership for 1/5th share on the following terms
* Goodwill is to be valued at 3½ years purchase of average profits of last three years which
was Rs. 20,000 Rs. 17,000 Rs. 9,000 (Loss) respectively.
* Stock is fund to be overvalued by Rs. 2,000 Building is reduced and Land to be
appreciated by 10% each, a provision for Bad Debts @ 12% is to be created on Debtors
and a Provision of Discount of Creditors @ 4% is to be created.
* A liability to the extent of Rs. 1,500 should be created for a claim against the firm for
damages.
*An item of Rs. 1,000 included in Creditors is not likely to be claimed, and hence it should
be written off.
Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new
firm if Z is to contribute proportionate capital and goodwill. The capital of partners is to
be in profit sharing ratio by opening current Accounts.
Or
8
A and H are partners sharing profit and losses as 3:2. They decided
to dissolve the firm on December 31, 2014. Their balance sheet on the above
date was:
Balance Sheet of Ashu and Harish as on December 31, 2014
Liabilities
Amount
Assets
Amount
(Rs.)
(Rs.)
Capitals:
Building
80,000
A
1,08,000
Machinery
70,000
H
54,000
1,62,000
Furniture
14,000
Creditors
88,000
Stock
20,000
Bank overdraft
50,000
Investments
60,000
Debtors
48,000
Cash in hand
8,000
3,00,000
3,00,000
A is to take over the building at Rs. 95,000 and Machinery and Furniture is
take over by H at value of Rs. 80,000. A agreed to pay Creditor and
H agreed to meet Bank overdraft. Stock and Investments are taken by
both partner in profit sharing ratio. Debtors realised for Rs. 46,000, expenses
of realisation amounted to Rs. 3,000. Prepare necessary ledger account.
8
PART B
(ANALYSIS OF FINANCIAL STATEMENT)
Q17. ‘No profit no loss’ point is called:
(a) Fund Flow Point (b) Cash Flow Point (c) Trend Analysis
(d) Break Even Point
(1)
Q18. …………..ratio are a measure of the speed with which various accounts are converted into sales
or cash.
(a) Activity (b) Liquidity (c) Debt (d) Profitability.
(1)
Q19. An example of cash flow from operating activity is:
(a) Purchase of own debenture (b) Sale of fixed assets (c) Interest paid on term-deposits by a bank
(d)Issue of equity share capital
(1)
Q20.
Name the sub heading under which Assets shall be classified in company Balance sheet.
(3)
Q21..From the following information prepare comparative statements of profit and loss. (4)
Particulars
31-3-2015
31-03-2014
Revenue From operations 5,00,000
3,50,000
Other Incomes
20,000
50,000
Expenses
1,20,000
1,00,0000
Income Tax
40%
50%
Q22. Find the value of current liabilities and current assets, if current Ratio is 2.5:1 liquid Ratio is 1.2:1
and the value of inventory of the firm is Rs. 39,000.
(4)
Q23. Following are the Balance sheet of ABC Co. Ltd.:-
Particulars
Note
(6)
31.03.2015
31.03.2014
10,00,000
8,00,000
2,50,000
2,00,000
3. Current Liabilities
5,50,000
4,75,000
Total
18,00,000
14,75,000
No.
1. Equity and liabilities
1)Share holder funds:2. Non current liabilities
II. Assets :i) Non Current Assets
a) Fixed Assets
1
1) Intangible assets
2
12,50,000
11,00,000
a) inventory
1,50,000
2,00,000
b) Trade Receivables
2,50,000
1,50,000
c) Cash and cash equivalents
1,50,000
75,000
Total
18,00,000
14,75,000
2) Current Assets
Notes
1) Long term Borrowings
Loan from Bank
2) Tangible fixed Assets
Land and Building
Machinery
2,00,000
3,00,000
10,00,000
9,00,000
2,50,000
2,00,000
----------------------12,50,000
11,00,000
------------------------A Machine costing Rs 1,50,000 having Book Value of Rs 75,000 was sold for Rs
1,00,000 during the year interest paid on Loan from amounted to Rs. 30,000. Prepare cash
flow statements.
MODEL TEST PAPER-6
ACCOUNTANCY
CLASS-XII
TIME: 3 Hrs
Max Marks: 80
1. In the absence of partnership deed, the interest on loan provided to a partner is
(1)
a. 6%
b. 5%
c. 7%
d. 4%
2. X and Y are partners sharing profits in 2:1. Z is admitted for 1/3rd share. The new profit ratio will
be:
(1)
a. 2:1:1
b. 3:1:2
c. 4:2:3
d. 1:1:1
3.
4.
5.
6.
7.
Give any one difference between revaluation a/c and realization a/c.
(1)
The maximum amount of capital that a company is authorized to issue is called:
(1)
What do you mean by forfeiture of shares.
State any one purpose for which securities premium can be utilized.
(1)
A, B and C are partners sharing profits and losses in the ratio of 2:3:4. They decided to share
future profits in 4:3:2. They also decided to record the effect of the following without effecting
their book values:
(4)
General reserve: 40,000
P&L A/c (cr.) : 20,000
Advertisement suspense: 15,000
You are required to give the necessary journal entry.
8. P,Q and R are partners in a firm. The capital a/cs stood at Rs. 30,000, Rs 15,000 and Rs. 15,000
respectively on 1st April,2013.
(6)
As per the provisions of the deed,
i.
ii.
iii.
R was to be allowed a remuneration of Rs 3,000 p.a.
Interest @ 5% p.a. was to be provided on capital.
Profits to be divided in 2:2:1.
Ignoring the above terms, the net profit of Rs. 18,000 for the year ended 31st March 2014 was
divided among the partners equally.
Pass an adjustment entry.
9. R Ltd. took over assets of Rs 5,60,000 and creditors of Rs. 80,000 from S Ltd. R Ltd issued 8%
debentures of Rs. 20 each at a premium of Rs. 4 per share as purchase consideration to S Ltd.
Calculate the amount of purchase consideration, number of debentures issued by R Ltd and pass
the necessary journal entries in the books of R Ltd.
(4 marks)
st
10. S ltd was formed on 1 December, 2013 with a capital of Rs. 5,00,000 divided into shares of Rs
10 each. It offered 80% of the shares to the public.
The issue price was payable as follows:
30% of the face value per share was payable with application.
20% of the face value per share was payable with allotment.
Balance as and when required. The company did not call for the balance during the year.
All the shares offered by the company were subscribed for. The company did not receive the
allotment money on 3,000 shares.
You are required to:
i.
Show the share capital in the balance sheet of the company (prepared as per schedule
III of the companies act 2013) at the end of the financial year.
ii.
Prepare notes to accounts.
(4 marks)
11. Record the necessary journal entries for issue and reissue in the following cases:
(6 marks)
i.
V Ltd issued 10,000 9% debentures of Rs. 50 each at a discount of 8% redeemable at
par.
ii.
R ltd issued 50,000 8% debentures of Rs 100 each, payable on application and
redeemable at par.
12. A and B are partners with sharing ratio 3:1.
Balance Sheet
As at 31/12/2012
Liabilities
Amount
Assets
Amount
Creditors
2,00,000
Cash
30,000
Bills payable
40,000
Bank
50,000
General reserve
40,000
Debtor
60,000
P&L
20,000
Building
200,000
Outstanding expenses 20,000
Machine
100,000
Capital:A:1,00,000
2,00,000
Investment
40,000
B:1,00,000
5,20,000
Adjustments:
Patents
20,000
Goodwill
20,000
5,20,000
i.
ii.
iii.
iv.
v.
vi.
vii.
C comes for 1/5th share and brings capital Rs 80,000 and his share of goodwill Rs 20,000.
Building is to be increased by 20%.
Outstanding expenses value at Rs 25,000.
Make 5% provision for discount on creditors.
Make 10% provision for doubtful debts and 5% provision for discount.
Capitals of A and B adjusted in new ratio on the basis of C’s capital and difference adjusted
in current a/c.
Half premium withdrawn by old partners.
Prepare revaluation a/c, partners’ capital a/c and balance sheet.
OR
A, B and C are partners. They share profits in capital ratio.
Balance Sheet
As at 31/12/2012
Liabilities
Amount
Assets
Amount
Creditors
1,00,000
Cash in hand
40,000
Bank overdraft
50,000
Debtors 41,000
40,000
Less: Provision 1,000
Reserve
30,000
Land and building
2,00,000
Expense due
20,000
Machinery
20,000
Capital A/C: A1,00,000
40,000
B-40,000
C-20,000
3,00,000
300,000
Adjustments:
i.
B takes retirement.
ii.
New ratio of A and C 1:1.
iii.
Goodwill of the firm Rs. 60,000.
iv.
Make 5% provision for debtors.
v.
Building increased by 10%.
vi.
Make provision for claim for damage of Rs. 6000
vii.
Rs 10,000 paid to B in cash. Balance transferred to his loan a/c.
viii.
Capital of new firm Rs 200,000, difference adjusted through current accounts.
Prepare revaluation a/c, partners’ capital a/c and balance sheet.
13. Ashish and Neha were partners in a firm sharing profits in 4:3. They decided to dissolve the firm
on 1st May 2014. From the information given below, complete realization a/c, partners’ capital
a/c and bank a/c.
(6 marks)
Realisation A/c
Particulars
Amount
Particulars
Amount
To sundry assets
705000
By sundry liabilities:
65,000
Machine-560,000
Creditors-40,000
Stock-90,000
Ashish’s wife loan-
Debtors- 55,000
25,000
To bank (creditors)
By bank:
Machine-4,80,000
Debtors-10,000
4,90,000
To Ashish’s capital
a/c:
Ashish’s wife loan
34,000
By Ashish’s capital:
Stock-128,000
Typewriter-70,000
198,000
To Neha’s capital a/c:
Realisation expenses
7,000
By Neha’s capital a/c:
40,000
Debtors
To profits transferred
to:
Ashish’s cap a/c:
4,000
Neha’s cap a/c: 3,000
7,000
793,000
Particulars
To realization
To bank a/c
Ashish
400,000
793,000
Partners capital a/c
Neha
Particulars
By
450,000
By
By
Ashish
-
Neha
-
Bank a/c
Particulars
To balance b/d
To realization
Amount
490,000
Particulars
By realization
By ashish’s loan a/c
By ashish’s capital a/c
By neha’s capital a/c
Amount
4,000
4,00,000
-
14. S Ltd. Invited application for issuing 2,00,000 equity shares of Rs. 10 each. The amount was
payable as follows:
Application- Rs 3 per share
Allotment- Rs 5 per share
First and final call- Rs 2 per share
Applications for 3,00,000 shares were received and pro-rata allotment was made to all the
applicants.
Vivek who was allotted 3,000 shares failed to pay the allotment and call money. His shares were
forfeited. Out of the forfeited shares, 2500 shares were reissued as fully paid up @ Rs 8 per
share.
Pass the necessary journal entry to record the above transactions.
Or
Give journal entries for forfeiture and reissue of shares:
i.
A ltd forfeited 1000 shares of Rs. 10 each, Rs 7 called up, issued at premium of 20%(to be
paid at the time of allotment) for non payment for a first call of Rs 2 per share. Out of
these 600 shares were reissued as Rs 7 paid up for Rs. 4 per share.
ii.
B Ltd forfeited 1000 shares of Rs 10 each, Rs 7 called up, issued at a premium of 20% (to
be paid at the time of allotment) for non payment of allotment money pf Rs. 4 per share
(including premium) and first call of Rs 2 per share. Out of these, 600 shares were reissued as fully paid for Rs 8.50 per share.
"Part B"
19)
Quick ratio of a Company 1:5:1 State giving reason whether the Ratio will improve
decline or not change on payment of divided already declared by the company.
20)
(1)
State whether conversion of debentures into equity shares by a financing company will
result inflows, out flow or no flow of cash.
(1)
21) Interest Received by a finance company is classified under which kind of activity while
preparing a cash flow statement.
22)
(1)
Name the sub heading under which share holder funds shall be classified in company
Balance sheet.
23)
(3)
From the following information prepare a comparative statements of profit and loss. (4)
Particulars
31-3-2014
Revenue From operations 75,00,000
31-03-2013
60,00,000
Other Incomes
120000
150000
Expenses
50,60,000
44,00,000
Income Tax 40%
24)
Find the value of current liabilities and current assets, if current Ratio is 2.5:1 liquid
Ratio is 1.2:1 and the value of inventory of the firm is Rs. 78000.
25) Following are the Balance sheet of X Co. Ltd.:-
(4)
(6)
Particulars
Note
31.03.2012
31.03.2011
3,00,000
2,50,000
45000
80,000
3. Current Liabilities
42500
28000
Total
3,87,500
3,58,000
No.
1. Equity and liabilities
1)Share holder funds:2. Non currentlias
II. Assets :i) Non Current Assets
a) Fixed Assets
1) Jangible assets
2
2) Current Assets
a) inventory
b) Trade Receivables
c) Cash and cash
equivalents
Total
Notes
1)
Long term Borrowings
Loan from Bank
2) Tangible fixed Assets
Land and Building
Machinery
1
302500
2,70,000
25000
50000
10000
45000
35000
8000
387500
358000
45000
80000
220000
1,50,000
82500
1,20,000
----------------------302500
270000
------------------------A Machine costing Rs 40,000 having Book Value of Rs 25000 was sold for Rs 35000 during the
year interest paid on Loan from amounted to Rs. 8000. Prepare cash flow statements.
Model Question Paper
Business Studies
BLUE PRINT
BUSINESS STUDIES
S
No.
Typology Of Question
Remembering
Very
Short
Answer 1
mark
Ques No.
1,2
Short
Answer
I
3 Marks
Ques No.
9
Short
Answer
II
4 Marks
Ques No.
18
1
2
Understanding
3,4
12,13
14
3
Application
5,8
11
16
4
High Order Thinking Skills
6,7
10
15,19
5
Evaluation
Total
17
8X1=8
5X3=15
6X4=24
Long
Answer
I
5marks
Ques No.
21
20
ESSAY TYPE
Answer
II
6Marks
Ques no.
Marks
%
14
17
22
18
23
23
20
25
24
19
24
9
11
80
100
22
3X5=15
3X6=18
(25 Question)
Model Test paper-1
12th class-Business studies
Time:3hours
General Instructions:
Max. marks:90
i)Answer to question carrying 1 marks may be from one word to one
sentence.
ii)Answer to question carrying 3 marks ay be from 50-75 words.
iii)Answer to question carrying 4-5 marks may be about 150 words.
iv)Answer to question carrying 6 marks may be about 200 words.
v)Attempt all parts of a question together.
1) Identify the nature of management when it is said to be a systematized body of knowledge that
explain general truths.
1
2) What is economic environment
1
3) Increasing sales by 10% or earning profit of 20% is an important type of plan. Identify the type
of plan.
1
4) In controlling, why is actual performance compared with standards?
1
5) Write any 1 personal objective of management has to be taken care of while selecting a player
for a cricket team.
1
6) Why it is said that “controlling is an continuous activity”?
1
7) State any 1 “protective function” of securities and exchange board of India(SEBI) .
1
8) ‘Cost of debts ‘ is lower than the cost of ‘equity share capital‘ give reason why then a company
can not work even with the debt.
1
9) Give any 3 advantage of external sources of recruitment.
3
10)
How does Ganag Plank enable managers to communicate ? Draw a figure to clarify it.
11)Aman Ltd. Is manufacturing toys and has production ,sales , purchase
and finance
department. Which type of organization structure would you suggest to them. State any 2
advantages of this organization structure.
3
12)”Primary objective of financial management is to maximize shareholders’wealth”.Explain.3
13)”Securities and exchange board of India(SEBI) is the watchdog of stock market”. Justify it
14) Write any 4 difference between centralization and decentralization.
.
4
15)”Delegation of authority is based on the elementary principle of Division of work”.Justify it
example.
4
16) Explain ‘objectives’ and ‘policy’ as the type of plan using suitable example.
4
17) Rahim was working in an enterprise on daily wages. It was difficult for him to fulfill the basic
needs of his family. His daughter fell ill. He had no money for his daughter’s treatment . To
meet to expenses ofher treatment , he participated in a cylcle race and won the prize money.
The cycle company offer him a permanent pensionable job which he happily accepted.
4
a) By quoting the lines from above para identify the needs of Rahim that are satisfied by the offer
of cycle company.
b) Also explain needs of Rahim followed by above that are still to be Satisfied.
(2+2=4)
18) Expalin any 2 techniques of scientific management with example.
4
19) “ Various tools of communication are used by the marketers to promote Their products”.
Answer the following questions:a) Name and explain the most commonly used non-personal tool of Promotion which is paid for
by marketer.
b) Which tool of promotion will primarily be used for the following
i) To promote or protect a company’s image or its individual Products.
ii) An existing product made for mass usage by literate people.
(2+2=4)
20) In M/S Paramount Ltd., there is no restriction on follow of communication and each and every
employee free to approach every one for minor queries and problems. Although this follow of
communication isfast, but it has led to leakage of confidential information.
i) Which network of formal communication is used by the company?
ii) Mention a suitable network, which can be used by the company To protect the confidential
information?
(1+4=5)
21) What do you mean by advertisement? Explain any 3 feature of it in brief.
22) What is ment by packaging ? State any 3 functions of packaging.
(2+3=5)
(2+3=5)
23) Identify and explain different dimensions of Business Environment Which you see and find in
McDonald’s(Fast food chain).
6
24) A company X Ltd. Manufacturing cosmetics(FMCG) , which has enjoyed a prominent position
in business , has grown in size. Its business was very good till 1991.But after that , new liberalized
environment has seen entry of many MNC’s in this sector. With the result, the market share of X
decline. The company has followed a very centralized business model, directors and divisional
heads making even minor decisions. Before 1991 this business model has served the company
very well as consumers had no choice. But now company is under pressure to reform –
a) what organization structure change should the company bring about in order to retain its
market share?
b)How will the changes suggested by you to help the firm.
(3+3=6)
25)Distinguish between the concept ‘product’ and ‘production’ in marketing Keeping following as
the base :
a)means
b) main focus
c) ends d) starting point.
6
Model Paper-2 (2015-16)
Class XII
Business Studies
Time: 3 Hrs
MM: 80
1 Mr. Ashish is working as a Branch Manager of an insurance company in Chennai.
Mention the level of management at which he is working.
1
2 ‚There should be place for everything and everything should be in its own place.‛
Which principle of management is this and by whom it has been given?
1
3 A trainer is highly skilled in his field of weaving in a Thread Manufacturing
company. He has trained so many workers in the organization. Which point of
importance of organizing is highlighted by this statement?
1
4 Which element of the functions of management is the process of influencing?
Behaviour of subordinates to work willingly and enthusiastically for achieving desired
results?
1
5 Name the function of management which ensures that actual performance results are
in accordance with planned results.
1
6 A company has decided to open a new factory for its expansion plan. Name the type
of decision involved.
1
7 Which money market instrument is issued by Reserve Bank of India on behalf of
Government of India?
1
8 A company uses various sales promotion techniques like “Buy One, Get One Free”,
‚Free Gifts‛, ‚Lucky Draw‛ on regular basis to increase its sales. Identify the values
which are ignored by the company. (any two)
1
9 What do you mean by Method Study? Explain.
3
10 ‚To ensure that a plan has been implemented successfully and is working effectively,
a further step is required.‛ Identify this step and explain it.
3
11 Can an over burdened manager take help from his subordinates? How? Explain the
three important things which he should keep in mind while taking such help. 3
12 ‚Since every manger performs staffing function, there is no need for separate Human
Resource Department as it also performs the staffing function.‛ Do you agree with this
statement? Give any two reasons.
3
13 ‚During the period of economic down trend, a company assured its employees that
no employee would be retrenched because of economic down trend.‛ Name the type of
incentive that the company has offered to its employees and explain any two more
incentives of this type.
3
14 ‚Directing is the heart of management process.‛ Do you agree? Give any three
reasons in support of your answer.
4
15 A production manager of a company was given a standard soap. He was asked to
produce similar other soaps. What control process would he have followed?
4
16 Mr. Suresh is completely engaged in his Business of manufacturing Electronic goods
like Electric Cables, Iron, Geysers, Pumps etc. explain any two factors that will affect his
fixed capital requirements and working capital requirements.
4
17 What do you mean by Secondary Market? Explain functions of SEBI?
4
18 Your company has recently launched a wide range of washing machines. You do not
want to incur huge cost. What are different alternative distribution channels that you
can follow? How these would benefit the company?
4
19 Who is a ‘Consumer’ as per Consumer Protection Act? What are the responsibilities
given to any Consumer?
4
20 ‚Business environment is quite significant for Business Organisations.‛ Explain any
five reasons for this.
5
21 Which function of management helps in obtaining right people and putting them on
the right jobs? Explain any five points of importance of this function.
5
22 Explain any five factors which affect dividend decision.
5
23 ‘Management is regarded as an Art by some, science by others and inexact science
by many more. The truth seems to be somewhere in between.’ In the light of this
statement explain the exact nature of management.
6
24 Explain four types of barriers to effective communication. Also brief one type
(example) of each barrier.
6
25 ‚All organizations need marketing‛ Do you agree to this statement? If so, give
reasons in support of your answer along with relevant examples from business sector.
MODEL QUESTION PAPER-3
CLASS:-XII
SUBJECT:- B. STUDIES
TIME ALLOWED:- 3 HOURS +15 Minutes
MM-80
General instructions:1. Answers to questions carrying 1 mark may be from one word to one
sentence.
2. Answers to questions carrying 3 marks may be from 50 to 75 words.
3. Answers to questions carrying 4-5 marks may be about 120 words.
4. Answers to questions carrying 6 marks may be about 200 words.
5. Attempt all parts of a question together.
What is meant by principle?
[1]
Give the meaning of method as a type of plan.
[1]
What is meant by democratic style of leadership?
[1]
Name the training method in which a trainee works under the guidance of a
master worker.
[1]
5. What is deviation?
[1]
6. Name any two decisions taken by a financial manager.
[1]
7. How does ‘inflation’ affect working capital requirements of a company?
State.
[1]
8. Name any two consumer organizations.
[1]
9. Explain in brief any three limitations of planning.
[3]
10.Can accountability be delegated? Give reasons in support of your answer.[3]
11. How does planning facilitate control? Justify your answer with the help of
suitable example.
[3]
12.Explain any three functions performed by a supervisor that are vital to any
organization.
[3]
13.Explain the following Rights of consumers:[3]
i.
Right to seek redressal
ii.
Right to be heard
14.Explain any four measures to overcome the barriers of communication. [4]
1.
2.
3.
4.
15.Sahil Ltd. Is manufacturing shirts and has production, marketing, finance
and personnel departments n the organization. Name the type of
organizational structure Sahil Ltd. Is following. State any three advantages
of this organization structure.
[4]
16.Megha Ltd. was manufacturing water-heaters. In the first year of its
operations, the revenue earned by the company was just sufficient to meet its
costs. To increase the revenue, the company analysed the reasons of less
revenues. After analysis the company decided:
i.
To reduce the labour cost by shifting the manufacturing unit to a
backward area where labour was available at a very low rate.
ii.
To start manufacturing solar water-heaters and reduce the production
of electric water-heaters slowly. This will not only help in covering
the risks, but also help in meeting other objectives too.
a. Identify and explain the objectives of management discussed above.
b. State any two values which the company wanted to communicate to the
society.
[4]
17.The directors of a manufacturing company are thinking of issuing Rs.20 lacs
additional debentures for expansion of their production capacity. This will
lead to an increase in debt-equity ratio from 2:1 to 3:1.What are the risks
involved in it? What factors other than risk do you think the directors should
keep in view before taking the decision?
[4]
18.State any four development functions of SEBI.
[4]
19.Despite internal sources of recruitment being economical why do companies
not always use this source? State any four reasons.
[4]
20.How would you argue that the success of a business enterprise is
significantly influenced by its environment?
[5]
21.Explain any five factors which affect the determination of the price of a
product.
[5]
22.What is capital structure? Explain in brief any four factors affecting capital
structure.
[5]
23.What is controlling? Explain in brief the controlling process. [6]
24.Define management. “Success of an organization largely depends upon its
management.” Explain in brief any five reasons to justify the statement.[6]
25.Though advertising is one of the most frequently used media of promotion
of goods and services, yet it attracts lot of objections. Explain any four such
objections.
[6]
MODEL TEST PAPER-4
CLASS- XIITH
SUB- B.ST.
TIME- 3Hrs
M.M.- 80
Q1-
Why is recruitment considered a positive step?
Q2-
Name the lowest level of needs included in Maslow’s need hierarchy theory.
Q3-
Which market meats the need of short term financial requirement?
Q4-
Rajat a sales manager achieved his sales target one month in advance. This
achievement was displayed on the notice board and the CEO of the company
awarded a certificate for the best performance to firm. Name the incentive
provided to Rajat.
Q5-
A consumer is not satisfied at the Judgment of a state commission. What remedy
is open to him?
Q6-
Why does Management help people to adopt the environmental changes?
Q7-
What is job specification?
Q8-
You want to reach the maximum number of prospective consumers for your
product. Which element of promotion mix will you use for this?
Q9-
Financial market plays an important role in the allocation of scare resources in
economy by performing many important functions. “ Explain any three such
functions.
Q10- Explain the Feyol’s principle of scalar chain. Where do we find flexibility in this
principle?
Q11- Explain the meaning of policy as a type of plan with the help of a suitable
example.
Q12- A company has its registered office in Delhi, Manufacturing unit at Gurgaon and
marketing and sales department at Faridabad. The company manufactures the
consumer products. Which type of orgnisational structure should it adopt to
achieve this target?
Q13- A decision in financial management is basically concerned about how much fund
is to be raised and from which souce? Name the type of decision and also explain
two vital factors to be kept in mind while taking such decisions?
Q14- Stat any four features of a good brand name.
Q15- Explain any four factors that determine the capital structure of a company.
Q16- Distinguish between delegation and decentralization of authority on the basis of
concept, purpose, scope and number of persons envolved.
Q17- There is no need of human resource planning as so many people are available in
the market these days. Do you agree with this statement. Give reasons.
Q18- How can an organization overcome the barriers to effective communication?
Q19- One of the points of the importance of planning is that it focuses attention on
objectives. Is it in the interest of a business to line social values with these
objectives ? Explain with suitable examples.
Q20- A company wants to modify its existing product in the market due to decreasing
sales. You can imagine any product about which you are familiar. What steps
should each level of management take to give effect to this decision.
Q21- State any five changes in government policy that have made the business
environment more positive .
Q22- Kayco Ltd. Is manufacturing detergents. They decide to launch a new range of
herbal products. As they are in a hurry, they have tested products on animals
only. The necessary information is missing on the package. The management also
plans to launch a new factory in a tribal area where the required products are
easily available and the labour-men , women and children are available for work
at low wages in the absence of development opportunities and schools.
a) Which values do you find disturbing in the above para?
b) Will the decision to install a new unit in a tribal area help society?
Highlight the social values involved in this decision.
Q23- Explain the steps in the process of controlling.
Q24- A new setup automobile company having factory in Delhi is planning to determine
channels of distribution in India for its two model of cars. Which channels will you
recommend and why?
Q25- You are the finance manager of a company. The borad of directors have asked
you to determine the working capital requirement for the company. State the
factors that you would consider while determining the working capital for the
company.
Group E
MODEL TEST PAPER-5 (2015-16)
BUSINESS STUDIES
CLASS – XII
Time allowed 3 hours
Marks : Maximum 80
General Instructions:
(1)Answers to questions carrying 1 mark may be from one word to one sentence.
(2) Answer to questions carrying 3 marks may from 50 to 75 words.
(3) Answer to questions carrying 4-5 marks may be about 150 words.
(4) Answer to questions carrying 6 marks may be about 200 words.
(5) Attempt all parts of a question together.
1.Define Scientific Management.
(1)
2. State why is planning called a primary function of management.
(1)
3.“The principles of management do not provide readymade, straitjacket solutions to all
managerial problems”. Which nature of principles of management is highlighted here? (1)
4. What is meant by the ‘Estimating man-power requirements’ as a step in the process of
‘Staffing’?.
(1)
5. Give any one reason why management principles are required.
(1)
6. ‘Controlling is forward looking? How can this be ensured?
(1)
7. Just after declaration of Lok Sabha Elections 2014 results, the Bombay Stock Exchange’s price
index (Sensex) rose by 1500 points in just two days. Identify the environmental factor which
led to this rise.
(1)
8. How does informal organisation support the formal organisation?
(1)
9. State any three advantages that a functional structure offers to an organization.
(3)
10. ‘Choice of an appropriate channel of distribution is very important marketing decision which affects
the performance of an organization’. Explain any two factors on which the choice of an appropriate
channel depends.
(3)
11. Apurva Ltd. is a highly reputed company and many people wanted to join this company.
The employees of this organization are very happy and they discussed how they came in
contact with this organization. Aman said that he was introduced by the present Sales manager, Mr.
John. Benu said that he had applied through the newspaper and was appointed as H.R
Manager. Vaibhav said that he was neither related to any of the employee of the organization
nor there was any advertisement in the newspaper even then he was directly called from IIM
Ahmedabad from where he was about to complete his MBA.
a) The above discussion is indicating an important function of management. Name the
function of management
b) The management function identified in part (a) follows a particular process. Explain the
step of this process which is being discussed in the above para.
(1+2)
12. Radhika’s grandmother who was unwell, called her and gave her a gift packet. Radhika
opened the packet and saw many crumpled share certificates inside. Her grandmother told her
that they had been left behind by her late grandfather. As no trading is now done in physical form,
Radhika wants to know the process by adopting which she is in a position to deal with these
certificates.
a) Identify and state the process.
b) Also give two reasons to Radhika why dealing with shares in physical form had been
stopped.
(1+2)
13. The barriers to effective communication exist in all organizations. Explain any three measures to
overcome these barriers.
(3)
14. Define Business Environment. State any three of its features.
(4)
15. Mr. Ajay after completing MBA from USA comes to India to start a new business under the banner
Ecom Creations Ltd. He launches a new product in e-learning for Senior Secondary School students in
Commerce stream, which already has an established market in UK and USA but not in India. His business
starts flourishing in India. Now more Indian companies entered into the market with other subjects also.
Identify and quote the lines from above para which highlight the significance of understanding
business environment.
(4)
16. Rajeev, the owner of Pathways constructions decided to start a campaign to create
awareness among people for developing clean surroundings in their area. He formed a team of
10 members to list the different ways for cleaning the surroundings. One suggested to take the
help of local residents, another suggested that they may involve school going children in their
venture. One more suggestion was to take the help of unemployed youth. On evaluation of
different ways, it was decided to take the help of local residents. To achieve the desired goal
various activities were identified like
a) Purchase of necessary items like dustbins, garbage bags, brooms, etc.;
b) Collection of garbage;
c) Disposal of garbage, etc.
After identification of different activities the work was allocated to different members.
i. Identify the concepts of management involved in the above situation and quote the lines which
help in their identification.
ii. Also identify the values which the company wants to communicate to the society
(4)
17. Blue Heavens Ltd. purchased a new hi-tech machine from Germany for manufacturing high quality
auto components in a cost effective manner. But during the production process, the manager
observed that the quality of production was not as per standard. On investigation it was found that
there was lack of knowledge amongst the employees of using these hi-tech machines. So, frequent
visit of engineers was required from Germany. This resulted in high overhead charges.
(i) Suggest what can be done to develop the skills and abilities of employees for producing high quality
products by using these hi-tech machines. Also state how the employees or the organization will
benefit from your suggestion.
(4)
18. Explain any four functions of financial market.
(4)
19. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed
company, Zest, Ltd.. She went back to the shopkeeper from whom the pack was purchased who
directed her to call up the customer care centre. When all her efforts failed, she went to a
consumer activist group to seek help. The group decided to help Radha and take measures to
impose restrictions on the sale of the firm’s products of the particular batch and urge customers to
refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO
gives the responsibility of bringing back the lost image of the company to a Manager.
a) Identify the concept of Marketing Management which will help the Manager getting the firm
out of the above crisis.
b) Also explain the role of above identified concept by stating any two points.
(4)
20. A company is manufacturing washing machines. There is a well defined system of jobs with
a clear and definite authority, responsibility and accountability in the company. But people are
not allowed to interact beyond their officially defined roles. As a result the company is not able
to adapt to the changing business environment. The workforce is also not motivated due to lack of
social interaction. The company is facing problems of procedural delays and inadequate recognition
to creative talents.
(i) Suggest how the organization can overcome the problems faced by it.
(ii) Give any two benefits it will derive from your suggestion.
(5)
21. State the importance of directing function of management.
(5)
22. Explain any two of the following Fayol’s principal of management with examples:
(5)
(i) Equity
(ii) Espirit de corp
(iii) Remuneration of personnel
23. Explain the following functions of marketing:
(6)
(a) Gathering and analysing market information
(b) Product desiging and development
(c) Standardisation and grading
(d) Customer support services
24. It is necessary that goods and services must be made available to the customers at the right place, in
the right quantity and at right time.
(6)
a) Name and explain the concerned element of Marketing Mix given above.
b) Explain the components of this element
25. Microsoft Ltd. earned a net profit of Rs.50 crores. Ankit the finance manager of Microsoft Ltd.
wants to decide how to appropriate these profits. Identify the decision that Ankit will have to take and
also discuss any five factors which help him in taking this decision.
(6)
MODEL TEST PAPER-6
Sub: BST
Time : 3 Hours
All questions are Compulsory.
Q.1 Identify the nature of management when it is practiced as personal application of existing
knowledge to achieve desired results?
1
Q.2 Why is coordination is known as the essence of management? 1
Q.3 What is Internal Environment?1
Q.4 What function of management is known as “Management in action”? 1
Q.5 What is laissez fair leadership style? 1
Q.6 State any one advantage of critical point control and management by Exception? 1
Q.7 Name the concept which increase the return on equity shares with a change in the capital
structure of a company? 1
Q.8 What is meant by Primary market? 1
Q.9 Explain ‘Increasing Competition’ and more demanding Customers as impact of government
policy changes on Business and Industry? 3
Q.10 Explain the steps involved in the Process of planning? 3
.11 Direction is the least important function of management.Do you agree with the
statement?Give any two reasons in support of you answer? 3
Q.12 State any three features of advertising? 3
Q.13 Explain the 3-tier hedressal mechanism done under Consumer Protection Act 1986? 3
Q.14 In order to make greater sales & profits an organization is planning the fallowing:
a) To avoid the taxes payment
b) To enhance the motivation of the employees by producing then the training.
C) To increase the rate of remuneration.
Q.15 What do you mean by employee development? Why is it needed?
4
Q16. Distinguish between Autocratic and Democratic Leadership style?
4
Q17 Explain the factors affecting amended decision of the company?
4
Q18 Distinguish between primary and Secondary market?
4
Q.19 Define Marketing Min> Explain its Components?
4
Q20 Explain the technique of scientific management Which separates the planning & execution
work? 5
Q21 Explain the Components of promotion in market?
5
Q22 Explain the various money market investment?
5
Q23 A Company is producing cigarettes & is earning huge profits under the residential area
a) The Govt. or deed the company to relocate business to for flung area & increased the tax
ratio.
b) The next V year company had the loss because of secured competitors in the market.
c) Identify the dimension in detail of business environment that are discusses above
OR
Discuss the a) Time Study b) Motion Study c) faligul study d) Method Study
Q24. How is a functional Structure disparate from a Divisional Structure?
6
Or
Give the essential elements of delegation?
Q25. What is meant by motivation? Explain Mascow’s need hierarchy theory of motivation? 6
Or
Explain the steps in the process of staffing?