Expected questions
Accountancy
XII
Ques1 X & Y enter into partnership on 1st April,2012 with capitals of rs.
60000 & 45000 respectively. As per partnership deed :
(i) X&Y are entitled a salary of rs. 400 per month& rs.600 per month
(ii) interest on capital is to be allowed @ 6%p.a.
(iii) the profit sharing ratio of X&Y will be 1:1
Profit earned during the year 2012-13 amounted to rs. 140000 Give journal entries & prepare the profit & loss a/c.
Ques2 X&Y were partners in a firm with a profit sharing ratio of 2:1.
During the year ended 31.12,2012 Y makes the drawings as under:
1.2.2012 36000
1.5.2012 25000
30.6.2012 18000
31.10.2012 32400
1.12.2012 16000
Partnershipdeed provide that partners are to be charged interest on drawings@ 10%p.a. Calculate the interest chargeable to Y by using product method.

Ques3 A,B&C have fixed capitals of rs. 50000&30000&40000.During the year ,the rate of interest was fixed at 9% but was wrongly credited to them 12%. Give necessary adjustment entry.
Ques4 X,Y&Z are partners. They admit A as a new partner and guarantee that his share of profit shall not be less than rs. 40000.
Profits to be shared as 4:3:3:2. Total profits for the year ending 31st march 2013 were rs. 192000. It was decided that accuses payable to A over his share will be borne by X,Y &Z in the ratio of 3:2:1. Prepare profit and loss appropriation a/c for the year ended on 31st march
2013.
Ques5 R&S earned an average profit of rs. 45000. Their capital employed in the firm is rs.80000. It is expected that the average rate of profit is 10% on the capital. Calculate the amount of goodwill, if goodwill is valued at 2 years' purchase of super profits.
Ques6 A firm earns rs. 8100 as its annual profits, the rate of normal profit being 10%. The assets of the firm ammounted to rs. 75000. The value of goodwill is rs. 22500. Find the value of outsiders' liabilities.
Ques7 L,M&N are partners sharing profits and losses in the ratio of
3:2:1. On 1st April,2013, they decided to share profits and losses equally in future profits. The goodwill of the firm is valued at rs. 72000.
Give necessary journal entry.
Ques8 L&M are partners sharing profits &losses in the ratio of 5:3.L surrenders 1/5 of his share and M surrenders 1/3 of his share in favour of N, a new partner. Calculate new profit sharing ratio and sacrificing ratio.

Ques9 A&B are in partnership sharing profits and losses equally on 31st march 2013,their balance sheet stood as follows:-
Balance sheet
Liabilities Assets
Bills payable 110000 Cash 70000
General reserve 150000 Debtors 470000
A's capital 300000 Stock 20000
B's 300000 600000 Fixtures 60000
Land 240000
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860000 860000
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On the same date, C was admitted into the firm subject to the following terms:
(a) C will be entitled to 1/3 share of the profits
(b) C will bring in rs. 320000 of which rs. 100000 will be treated as his share of goodwill
(c) rs. 20000 is to be provided for doubtful debts
(d) Fixtures is to be decreased by rs. 12000
(e) Stock is to be revalued at rs. 24000

(f) Capitals of old partners are to be re-adjusted on the basis of C's capital adjustment of capital will be made through cash
You are required to prepare the Balance sheet of the firm after the admission of C.
Ques10 X,Y are partners sharing profits and losses in the ratio of 1:3.
Their balancesheet as at 31.3.2013 was as under:
Balance sheet
Liabilities Assets
creditors 11000 cash 5000
capitals: stock 7000
X 15000 c0mputer 10000
Y 10000 25000 machinery 4000
furniture 10000
36000 36000 on 31.3.2013, Z is admitted into partnership for share in future profits, on the following terms:
(a) The value of machinery is to be increased by rs. 2500
(b) The value of computer is decreased by rs. 3000
(c) Goodwill is to be valued at rs. 30000 and Z brings necessary amount for his share of goodwill in cash
(d) Z is to bring in the capital to the extent of 1/6 of the total capital of the new firm after making all adjustments

Prepare all necessary accounts of the new firm.
Ques11 A,B,C&D are partners sharing profits in the ratio of 4:2:3:1. A retires and his share is acquired by C&D in the ratio 4:1. Calculate new profit sharing ratio and gaining ratio of the remaining partners.
Ques 12 A,B &C were sharing profits in the ratio of 2:1:2. B died on
31.3.2012. It is decided to give him share of profit on turnover basis taking into consideration sales figure of 2006. Sales for the year 2012 were rs. 2500000 and profits for the same period was rs. 250000.
However, sales for the year 2006-07 till 31.8.2011 were rs. 500000.
Ques13 L,M&N were partners in a firm, sharing profits and losses in the ratio of 2:1:3. M retired and the new profit sharing ratio between L&N was 2:1. On M's retirement, the goodwill of the firm was valued at rs.
30000. Pass necessary journal entry for the treatment of goodwill without opening goodwill account.
Ques14 The A,B&C as at 31.3.2013 stood as follows:-
Balance sheet
Liabilities Assets creditors 20000 cash 10000 bills payable 10000 debtors 30000 general reserve 6000 - provision 1600 28400 invt fluc reserve 2000 stock 4000
A's capital 50000 building 106000
B's capital 40000 investments 17600

C's capital 40000 goodwill 6000
C died on 30.6.2013 and the following adjustments were agreed upon
(a)investments be valued at 10% less than the book value
(b) all debtors were good
(c) stock be reduced to rs. 3400
(d) goodwill of the firm is valued as rs. 3600. It was decided not to show goodwill in balance sheet
(e) Executors of the deceased partner shall be paid rs. 6000 and balance to be kept in their loan a/c.
Prepare the revaluation a/c, capital a/c, executors' a/c and balance sheet.
Ques15 Following is the balance sheet of Teena & Meena as at 31st dec. 2012:-
Balance Sheet
Liabilities Assets creditors 60000 cash 26000 x's loan 10000 stock 10000 general reserve 22000 debtors 40000 prov. for bad debts 4000 plant 60000
Teena 20000
Meena 200000

On the date ,the firm was dissolved on the following terms:-
(i)Teena promised to pay X's loan & took over at rs. 8000
(ii) creditors payable after one month were paid 6% discount
(iii)debtors realised rs. 38000; plant rs. 69000
(iv) Meena took over an old fan completely written off from the books at rs. 600
(v) Expenses on realisation were rs. 2000
Prepare necessary a/cs
Ques16 R&S were partners sharing profits as 2:1. The firm was decided to be dissolved on 31st dec 2011. On that date capitals of R &S were rs
100000&50000. The amount owed by the firm to R was 24000 but the amount owing by S to firm was 18000. The creditors amounted to rs.
80000 & cash balance was rs. 10800. The assets other than amount owing by S to the firm realised rs. 220000. The cost of dissolution was rs. 900. Show memorandum balance sheet, realisation a/c, capital a/cs, cash a/c.
Ques17 X Ltd. purchased the assets of M/s Y industries for rs. 990000 payable in fully paid shares of rs. 100 each. What entries will be made in the books of X Ltd. if such issued is:-
(i) At par (ii) At premium of 10% (iii) At discount of 10%
Ques18 X Ltd. invited applications for 25000 shares of rs. 100 each at
10% premium. Applications were received for 45000 of which applications for 7500 shares were rejected & their money was refunded. Rest of the applicants were alloted shares on pro-rata basis

and their excess money was adjusted towards allotment. The money was called as follows: rs.30 on application,rs.30 on allotment(including premium),rs.30 on 1st call,rs. 20 on 2nd call. All the calls were made and payment received except A, a holder of 750 shares who had paid only the applications money and B, a holder of 1500 shares paid up to the 1st call money. Their shares were forfeited after the 2nd call. These share were re-issued at 10% discount. Pass necessary journal entries.
Ques19 X Ltd. forfeited 100 shres held by A for non payment of rs. 2 each on allotment and 1st call money. These shares were issued at a discount of rs. 1 per share originally. Final call of rs. 3 was not yet called up. Give journal entries for forfeiture and re-issue of shares in following cases:-
(i)If shares were re-issued for rs. 8 per share ,fully paid up
(ii)If shares were re-issued for 6 per share
(iii)If shares were re-issued for rs. fully paid up
(iv)If shares were re-issued for rs. 7 per share
(v)If shares were re-issued for rs. 5 per share,rs. 7 paid up
Ques20 A Ltd. invited applications for rs. 100000 divided into share of rs. each. These shares were issued at a premium of rs. 2 per share. All the money was called and paid except on 2000 shares on which allotment of rs. 4 (including premium) & rs. 3 on final call was not paid.
These shares were forfeited Of the forfeited shares, 1500 shares were re-issued at rs. 8 per share fully paid. Show the relevent items in the balance sheet of the company.

Ques21 A Ltd. had rs. 4000000 8% debentures. The same were to be redeemed at 4% premium on jan1 2013, out of profits. Show the journal entries at the time of redemption if, debentures redemption reserve has a balance of rs. 2800000.
Ques22 Sri Durga Ltd. issued 140,14% deb of rs.1000 each on jan.1,2011 at par, redeemable at a premium of 10% in four equal annual instalments by drawing of lots, out of profits from the end of
2012. For this purpose company has decided to transfer rs. 35000 to deb redemption reserve account from end of 2011. Give journal entries both at the time of issued and redemption of deb till all deb are redeemed.
Ques23 X Ltd. converts 1000, 18% deb of rs. 25 each at 120% by issuing
15% deb of rs. 10 each at premium of rs. 2 per share. Journalise.
Ques24 List the major heads under which the assets are presented in the balance sheet of a company as per schdule VI (revised) part1 of the company act 2013.
Ques25 From the following statement of profit & loss .Prepare a comparative statement of proffit & loss for the period 2011-2-12 and
2012-13.
particulars 2011-12 2012-13 revenue from operation 1260000 900000 employees benefit exps. 630000 540000 other exps. 15% of emp b. exps 20% of emp b. exps. income tax 50% 50%

Ques26 Prepare common size balance sheet of PQR Ltd. from the following information:-
Particulars 31.3.2012 31.3.2013
Equity & Liabilities share capital 500000 600000 reserve & surplus 100000 100000
Non-current Liabilities
Long term borrowings 120000 150000
Current Liabilities short term borrowings 270000 340000 total 990000 1190000
Ques27 Current ratio 2.5, Working capital rs.60000. Calculate the amount of current assets and current liabilities.
Ques28 Current Liabilities of a company are rs. 250000. Its current ratio is 2:1 and Liquid Ratio is 0.5:1. Calculate stock in trade.
Ques29 Credit revenue from operations rs. 300000, Trade receivables turnover ratio 5 times. Closing debtors are 3 times in comparison to opening trade receivables. Calculate opening and closing trade receivables.
Qques30 Average invevtory rs. 45000, inventory turnover ratio is 5 times, selling price is 125% of the cost. Calculate Gross Profit Ratio.

Ques31 On March 31st 2013 Ramesh &co. indicated a profit of rs.
250000,after considering the following:- depreciation on building 50000 depreciation on machinery 90000 amortization of goodwill 40000 gain on sale of machinery 20000
Particulars 31.3.2013 31.3.2012 trade receivables 90000 70000 inventories 138000 150000 cash & cash equivalents 36000 60000 trade payables 60000 64000
Ascertain the net cash (cash flow) from operating activities.
Ques32 The following balances appeared in Machinery Account and
Accumulated Depreciation Account in the books of Jai Bharat Ltd. :
Balances 31.3.2003 31.3.2004
Machinery account 3557970 5310900
Accumulated depreciation account 681590 951380
Additional Information:----
Machinery costing rs. 530000 on which accumulated depreciation was rs 200000,was sold for rs. 150000.
You are required to: --

(i) Compute the amount of machinery purchased, depreciation charged for the year and loss on sale of machinery.
(ii) How shall each of the items related to machinery be shown in the
Cash Flow Statement?
Ques33 From the following Balance sheet of Ganesh Ltd. Prepare a cash flow statement as per AS-3(Revised)
Particulars note no. 31.3.2013 31.3.2012
I. EQUITY AND LIABILITIES
share holders' funds
share capital 1 200000 140000
reserve and surplus 2 74000 50000
current liabilities
trade payable 3 38000 76000
total 312000 266000
II. ASSETS
Non-current assets
Fixed Assets
tangible assets 4 64000 48000
Current Assets
inventories 5 160000 160000
trade receivables 6 48000 44000

cash & cash equivalents 7 37000 4000
other current assets 8 3000 10000
total 312000 266000
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Notes to a/cs:-- 31.3.2013 31.3.2012
note no. 1: share capital:-
equity share capital 200000 100000
10%pref. share capital ____ 40000
200000 140000
note no. 2Reserves & surplus
profit & loss balance 72000 50000
note no. 3 Trade payables
creditors 38000 76000
note no. 4 Tangible assets
machinery 100000 80000
- accumulated depreciation 36000 32000
64000 48000
note no. 5 Inventories
stock 160000 160000
note no.6 Trade receivables

debtors 48000 44000
note no.7 Cash & cash equivalents
bank balance 37000 4000
note no.8 other current assets
prepaid expenses 3000 10000
Additional information:--
During the year 2012-13 a part of the machine costing rs. 20000
(accumulated depreciation thereon rs. 8000) was sold for rs. 10000.
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