Kendriya Vidyalaya Sangathan
Kolkata Region
rd
3 Pre-board Exam 2016
Class: XII Comm.
Time Allowed: 3 Hours
Subject – Accountancy (055)
Full Marks : 80
General Instructions:
(1)
(2)
This question paper contains two parts A and B.
All parts of questions should be attempted at one place.
Part – A: Accounting for partnership firms and Companies
1. Alka, Barkha and Charu are partners in a firm having no partnership agreement. Alka,
Barkha and Charu contributed Rs. 2,00,000, Rs. 3,00,000 and Rs.1,00,000 respectively. Alka
and Barkha desire that the profits should be divided in the ratio of capital contribution.
Charu does not agree to this. Is Charu correct? Give reason.
1
2. Pawan and Jayshree are partners. Bindu is admitted for 1/4th share. What is the ratio in
which Pawan and Jayshree will sacrifice their share in favour of Bindu?
1
3. Name the account which is opened to credit the share of profit of the deceased partner, till the time of his
death to his capital account.
1
4. Why are Reserves and Surplus distributed at the time of reconstitution of the firm?
1
5. What do you mean by Collateral Security ?
1
6. What is the maximum amount of discount at which a forfeited share can be re-issued?
1
7. Akash Ltd had issued 10000, 9% debentures @ Rs.100 each on 1st April 2010, which were redeemable after
five years at a premium of 10%, so in last year company decided to complete all legal formalities and decided
to invest required amount in to 10% Govt securities and also decided to transfer required amount into
DRR.You are required to pass all journal entries for redemption.
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8.
3
P,Q and R are partners with Fixed capital balances of Rs.2,00,000,Rs.1,50,000 and Rs.1,00,000
respectively. According to partnership deed the partners are entitled for the following
i) Interest on capital @10% p.a.
ii) P and Q are entitled for a salary of Rs.2,000 each per month.
iii) Profits are to be shared in the ratio of 4:3:2.
iv) Q is entitled to get a guaranteed minimum profit of Rs.12,000 annually.
Profits for the year ended 31st Dec. 2007 were Rs.1,20,000 (before interest on capital and salary)
Show profit and loss appropriation account for the year 2007
1.9. A Ltd. Registered with a nominal capital of Rs. 10,00,000 divided in 1,00,000 equity shares of Rs. 10 each .
Out of these, 20,000 equity shares were issued to the vendor as fully paid as purchase consideration for a
building acquired. 65,000 equity shares were offered to the public and of these 60,000 equity shares were
applied for and allotted. The directors called Rs. 6 per share and received the entire amount except a call of Rs.
2 per share on 5,000 equity shares.How would you show the relevant items in the Balance Sheet of A Ltd.
10. R Ltd. purchased a running business from P Ltd for a sum of Rs.12,00,000 payable by issue
of equity shares of Rs.10 each at a premium of Rs. 2 per share.
The Assets and liabilities were following:
3
3
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.
11.
Ram, Mohan and Sohan were partners sharing profits and losses in the ratio of 5:3:2.On 31st
March, 2006 their Balance Sheet was as under
Liabilities
Rs.
Assets
Rs.
Capital
Leasehold
1,25,000
Ram
150000 Patents
30,000
Mohan
125000 Machinery
1,50,000
Sohan
75000 Stock
1,90,000
Workmen Compensation Fund
30000 Cash at Bank
40,000
Creditors
155000
535000
4
535000
Sohan died on 1st August, 2006. 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; Leasehold at
Rs.1, 50,000 on this date.
(iii) For the purpose of calculating Sohan’s share in the profits of 2006-07, the profits
should be taken to have accrued on the same scale as in 2005-06, which were Rs. 75,000. Pass
journal entries.
12.
Ram and Shyam were partners in a firm sharing profits in the ratio of 7:5. Their fixed capitals
were Rs.10,00,000 and Rs. 7,00,000 respectively. The partnership deed provided for
the following:
4
a. Interest on capital @12% p.a.
b. Ram’s salary Rs. 6000 per month and Shyam’s salary Rs.60000 per year.
c. Interest on drawing Ram Rs.350 and Shyam Rs 250.
The profit for the year ended 31.12.2010 was Rs. 5,03,400 which was distributed equally without
providing for the above. Pass necessary adjustment entry. Show your workings clearly.
13.
a) R and K are partners in a firm. Their capital are –
R – Rs 3,00,000
K- Rs 2,00,000
During the year ended 31st march 2010 the firm earned a profit Rs 1,50,000. Assuming that the normal
Rate of return is 20%, calculate the value of Goodwill of the firm1. By Capitalization method
2. By Super profit method if the goodwill is valued at 2 year purchase of super profit. (2+2)
3. b) Gaining Ratio Vs Sacrificing Ratio
2
6
14. Pass Journal Entries to record the Issue of Debentures
1) 5000 15% debenture of Rs.100 each issued at Discount of 5% and redeemable at premium at 5% after 5
years.
2) 10000 15% debenture of Rs.100 each issued at a premium of 10% and redeemable at par after 6 years.
3)
12000 13% debenture of Rs.50 each issued at a premium of 10% and redeemable at premium of 15%
after 6 years.
15. A, B and C were partners in a firm sharing profits in the ratio of 5:3:1, on 2-3-2015 their firm was dissolved.
The assets were realized and the liabilities were paid off. Given below are the Realization account, Partner’s
capital Account and Bank account of the firm. The accountant of the firm left a few amounts unposted in
these accounts. You are required to complete these accounts by posting the correct amounts.
Realisation Account
Particulars
To stock
To debtors
To plant and machinery
A/c
To Bank A/c:
Sundry creditors 16,000
Bills Payable
3,400
Mortgage Loan 15’000
To Bank A/c (outstanding
repairs)
To Bank A/c (Expenses)
Amount
20,000
15,000
30,000
34,400
400
620
Particulars
By Provision for Bad debts
By Sundry capital A/c
By Bills Payable A/c
By Mortgage Loan A/c
By Bank A/c- Assets realized:
Stock
6,700
Debtors
12,500
Plant & machinery 36,000
By Bank A/c- unrecorded asset
realized
By………………………….
Amount
5’000
6’000
3’400
15’000
55’200
6’220
………
……
1,00,420
1,00,420
Partner’s Capital A/c
Dr.
Particulars
To ………………
To ……………….
A
………
……….
24,500
B
…….
…….
19,500
Dr.
C
….....
……..
10,500
Bank A/c
Particulars
To balance b/d
To realization A/c (assets realized )
To ………………………
Amount
19,500
55,200
………
80’920
Particulars
By balance b/d
By general reserve
Cr.
A
22,000
2,500
24,500
B
18,000
1,500
19,500
C
10,000
500
10,500
Cr.
Particulars
By realization account (liabilities)
By realization A/c (unrecorded liabilities)
By ……………………….
By………………………….
By ……………………………
By…………………………..
Amount
34’000
400
………
………
……….
………..
80’920
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6
16. 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.
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17.
8
Rajat and Ravi are partners in a firm sharing profits and losses in the ratio of 7:3. Their
Balance Sheet as at 31st March, 2007 is as follows :
Liabilities
Creditors
Reserve
Capital Accounts
Rajat
1,00,000
Ravi
80,000
Rs.
60,000
10,000
1,80,000
2,50,000
Assets
Cash in hand
Cash at Bank
Debtors
Stock
Furniture
Rs.
36,000
90,000
44,000
50,000
30,000
2,50,000
On 1st April, 2007, they admit Rohan on the following terms :
(i)
Goodwill is valued at Rs. 40,000 and Rohan is to bring in the necessary
amount in cash as premium for goodwill and Rs. 60,000 as Capital for 1/4
share in profits.
(ii)
Stock is to be reduced by 40% and furniture is to be reduced to 40%.
(iii)
Capitals of the partners shall be proportionate to their Profit Sharing Ratio
takingRohan’s Capital as base. Adjustments of Capitals to be made by cash.
Prepare Revaluation Account, Partners’ Capital Accounts and Cash Account.
Or
The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2 as
at
March 31, 2007 :
Liabilities
Amount
Assets
Amount
Creditors
50,000
Cash at Bank
40,000
Employees’ Provident
Sundry Debtors
1,00,000
Fund
Stock
80,000
10,000
Profit & Loss A/c
Fixed Assets
60,000
85,000
Capital A/cs :
X 40,000
Y 62,000
Z 33,000
1,35,000
2,80,000
2,80,000
X retired on March 31, 2007 and Y and Z decided to share profits in future in the ratio of
2:3 respectively.
The other terms on retirement were as follows :
(i)
Goodwill of the firm is to be valued at Rs. 80,000.
(ii)
Fixed Assets are to be valued at Rs. 57,500
(iii)
Make a provision for doubtful debts at 5% on debtors
(iv)
A liability for claim, included in creditors for Rs. 10,000, is settled at Rs. 8000.
The amount to be paid to X by Y and Z in such a way that their Capitals are
proportionate to their profit sharing ratio and leave a balance of Rs. 15,000 in the Bank
Account.
Prepare Revaluation Account and Partners’ Capital Accounts.
Part – B: Financial Statement Analysis
18. How would you deal ‘Bank Overdraft’ while preparing the Cash Flow Statement?.
1
19. Payment of dividend to shareholders is what type of activity?
1
20. Under which main heads and sub-heads of equity and liabilities are the following items shown in the
companies balance sheet as per schedule III of the Companies Act 2013.
4
1.
2.
3.
4.
5.
6.
7.
8.
Debentures
Securities premium reserve
Forfeited share account
Bills payable
Sundry creditors
Public deposits
Capital reserve
Interest accrued
21.
Calculate any two of the following ratios from the following information
A) Operating ratio B) Stock turnover ratio
C) Quick ratio
Sales Rs. 25,00,000, Cost of revenue from operation Rs 19,00,000, Operating expenses Rs.
2,40,000 Profit before tax Rs. 2,70,000. Current assets Rs. 4,87,500. Current Liabilities Rs.
3,00,000.Fixed assets Rs. 2,62,500 . Opening stock Rs. 2,50,000. Closing stock Rs. 3,50,000.
22.
Prepare the Common Size Income Statement from the following information :
Particulars
Net Revenue
Costof revenuefrom operation
March 31, 2006
1,00,000
70% of revenue
8000
50%
Operating Exp
Tax Rate
23.
Equity & Liabilities
a. Long-term Borrowing
1
2
8,50,000
1,70,000
4,60,000
2,40,000
3
1,80,000
2,00,000
12,00,000
9,00,000
7,00,000
5,00,000
2,50,000
1,90,000
60,000
2,10,000
1,40,000
50,000
12,00,000
9,00,000
Total
Assets
1.
Non-Current Assets:
a. Fixed Asset
Tangible assets
1. Current Assets:
a. Inventory
b. Trade Receivables
c. Cash & Cash Equivalents
Total
Note: 1. Share Capital
Equity Share Capital
8% Preference share Capital
2. Reserve & Surplus
General Reserve
Balance of statement of profit & Loss
3. Long –term Borrowings-10% Debenture
31.03.2012
31.03.2011
7,50,000
1,00,000
8,50,000
4,00,000
60,000
4,60,000
50,000
1,20,000
1,70,000
1,80,000
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March 31, 2007
Rs. 1,00,000
74.8% of r e v e n u e
9,800
50%
1. Following are the comparative Balance Sheet of Uttam Ltd as on 31stmarch,2012 and 2011:
Particulars
Note
31.03.2012
31.03.2011
1. Shareholder’ Fund:
a. Share Capital
b. Reserve & Surplus
2. Non- Current Liabilities:
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70,000
1,70,000
2,40,000
2,00,000
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Additional Information:
I.
During the year Machine (Tangible Assets) costing
II.
Dividend paid 80,000
80,000 was sold for
50,000.
Required : Prepare a statement of Cash Flow Statement indicating Cash from Operating, Investing and
Financing activities.