HOLIDAY HOME WORK (Winter BREAK ON 23/12/2018 TO 01/01/2019)

FOR CLASS –XI COMM.

FOR ACCOUNTANCY CLASS –XI COMM(Ref book: TS GREWAL’S)PRACTICAL PROBLEMS

Financial statement-I Q. 25 to 29= 05Financial statement-II Q. 19 to 31= 13Single entry system Q.12 to 18= 07 Total Question 25

FOR BUSINESS STUDIES (REFBOOK: VK-POONAM GANDHI)CHAPTER 7 Sources of business financeUnderstanding, skill based: Q. 1 to 5Hots& Application based: Q. 1 to 6

Case study: Q. 1 to 6

CHAPTER 8 Small BusinessUnderstanding, skill based: Q. 1 to 8

Hots& Application based: Q. 1 to 3

Case study: Q. 1 to 5,9

FOR CLASS –XII COMM.

Solve following Previous year (2014 to 2017) cbse Board question paper of Delhi Region and Outside Delhi region of Accountancy and Business studies also solved sample paper of 2019 given by cbse.

ACCOUNTANCY

ACCOUNTANCY (055)

DELHI BOARD 2014 SET I

Que

PART A Marks

1 What is meant by 'Reconstitution of a partnership Firm ? 12 X, Y and Z are partners sharing profits in the ratio of 1/2, 2/5, and 1/10

. Find the new ratio of remaining partners if Z retires.1

3 Distinguish between 'Dissolution of partnership' and ,Dissolution of partnership Firm' on the basis of closure of books.

1

4 why heirs of a retiring / deceased partner are entitled to a share of goodwill of the firm ?

1

5 Give the meaning of 'Debenture'. 16 what is the maximum amount of discount at which forfeited shares can be re-

issued ?1

7 Give any one pupose for which the amount received as 'securities premium' may be utilised.

3

8 Saloni and Shrishti were partners in a firm sharing profits in the ratio of 7 : 3. Their capitals were 2,00,000rs and 1,50,000rs respectively. They admitted Aditi on 1st April,

3

2013 as a new partner for 1/6th share in future profits. Aditi brought 1,00,000rsas her capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transaction on Aditi's admission.

9 BG. Ltd. issued 2,000, 127o debentures of ( 100 each on 1st April2012. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31stMarch and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the half-yearly ending 31st March, 2013 and transfer of interest on debentures of the year to the Statement of Profit & Loss.

3

10 Pass necessary journal entries in the following cases :(i) Z Ltd redeemed 1500, 12% debentues of 100rseach issued at a discount of

6% by converting them into equity shares of 100rs each issued at a premium of 25rs per share.

(ii) (ii) X Ltd. converted 1,000, 12% debentures of 100rs each issued at a discount of 10rs per debenture into equity shares of 100rs each, 90rs paid up.

3

11 Satnam and Qureshi after doing their MBA decided to start a partnership firm to manufacture ISI marked electronic goods for economically weaker section of the society. Satnam also expressed his willingness to-admit Juliee as a partner without capital who is specially abled but a very creative and intelligent friend of him. Qureshi agreed to this. They formed a partnership on 1st April 2012 0n the following terms.(i) Satnam will contribute 4,00,000rsand qureshi will contribute 2,00,000rs as

capitals.(ii) Satnam, Qureshi and Juliee will share profits in the ratio of 2 : 2 : 1.(iii) Interest on capital will be allowed @ 6% p.a.Due to.shortage of capital Satnam contributed 50,000rs on 30th September, 2012 and Qureshi contributed 20,000rs on January, 2013 as additional capitals. The profit of the firm for the year ended 31st March 2013 was 3,37,800rs.(a) Identify any two values which the firms wants to communicate to the society.(b) Prepare profit & Loss appropriation account for the year ending 31st March 2013.

4

12 Virad, Vishad and Roma were partners in a firm sharing profits in the ratio of 5 : 3 : 2 respectively. On March 31,2013, their Balance Sheet was as under :

Balance sheet as on 31st March 2013Liabilities

Capitals:

rs Assets

Buildings

rs

2,00,000

Virad 3,00,000 Machinery 3,00,000

Vishad 2,50,000 Patents 1,10,000

Roma 1,50,000 7,00,000 Stock 1,00,000

ReserveFund 60,000 Debtors 80,000

Creditors 1,10,000 Cash 80,000

8,70,000 8,70,000

Virad died on October 1, 2013. It was agreed between his executors and the remaining partner's that : (a) Goodwill of the firm be valued at 2 ½ years purchase of average profits for the last three years. The average profits were 1,50,000rs.(b) Interest on capital be provided al l0% p.a.

4

(c) Profit for the year 2013-14 be taken as having accrued at the same rate as that of the previous year which was 1,50,000rs.Prepare Virad's Capital Account to be presented to his Executors as on October 1, 2013.

13 on 1st April, 2012 Vivek Ltd. was formed with an authorized capital of 1,00,00,000rs divided into 2,00,000 equity shares of 50rs each. The company issued prospectus inviting applications for 1,80,000shares. The issue price was payable as under: On Application : 15rsOn Allotment : 20rsOn Call : Balance amountThe 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 : (a) Share capital in the Balance Sheet of the company as per revised schedule-VI-Part-I of the Companies Act, 1956.(b) Also prepare 'Notes to Accounts’ for the same.

6

14 PassnecessaryjournalentriesforthefollowingtransactionsinthebooksofRajanLtd:

(a) RajanLtd.Purchased machinery of 7,20,000rsfromKundanLtd.Thepaymentwas made to KundanLtd. by issue of equityshares of 100rseach at 1 0 %discount.(b) RajanLtd.purchasedarunningbusinessfromVikasLtd.forasumof2,50,000rspayabale as2,20,000rsinfullypaidequitysharesof 10rseachandbalancebya bankdraft.Theassetsandliabilitiesconsistedofthefollowing:Plant &Machinery 90,000rs; Building 90,000rs; Sundry Debtors 30,000rs; Stock50,000rs;Cash20,000rs;SundryCreditors20,000rs.

6

15 Naveen, Seerat and Hina were partners in a firm manufacturing blankets. They were sharing profits in the ratio of 5 : 3 : 2. Their capitals on 1st April, 2012 were 2,00,000rs 3,00,000rs and 6,00,000rs respectively. After the floods in Uttaranchal, all partners decided to help the flood victims personally. For this Naveen withdrew 10,000rs from the firm on 1st September, 2012. Seerat instead of withdrawing cash from the firm took blankets amounting to 12,000rs from the firm and distributed to the flood victims. On the other hand, Hina withdrew 2,00,000rs from her capital on 1st January, 2013 and set up a centre to provide medical facilities in the flood affected area. The partnership deed provides for charging interest on drawings @ 6% p.a. After the Final Accounts were prepared, it was discovered that interest on drawings had not been charged. Give the necessary adjusting journal entry and show the working notes clearly. Also state any two values that the partners wanted to communicate to the society.

6

16 Shanti and Satya were partners in a firm sharing profits in the ratio of 4:1. On 31stMarch, 2013 their Balance Sheet was as follows :

Balance Sheet of Shanti and Satya as on 31st March, 2013 Liabilities Amount Assets Amount (rs) (rs)Creditors 45,000 Bank 55,000Workmen compensation Debtors 60,000Fund 40,000 Stock 85,000Satya’s Current a/c 65,000 Furniture 1,00,000Capital’s: Machinery 1,30,000 Shanti 2,00,000 Shanti’s current a/c 20,000Satya 1,00,000

8

4,50,000 4,50,000On the above date the firm was dissolved :(1) Shanti took over 40% of the stock at 10% less than its book value and the remaining stock was sold for 40,000rs. Furniture realized 80,000rs.(2) An unrecorded investment was sold for 20,000rs. Machinery was sold at a loss of 60,000rs.(3) Debtors realized 55,000rs.(4) There was an outstanding bill for repairs for which 19,000rs were paid.Prepare Realisation Account.

17 Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3:2. On l't April, 2012 they admitted Nusrat as a partner in the Firm. The Balance Sheet of Mohan and Mahesh on that Date was as under :

Balance Sheet of Mohan and Mahesh as on 1st April, 2012 Liabilities Amount Assets Amount (rs) (rs)Creditors 2,10,000 Cash in hand 1,40,000Workmen compensation Debtors 1,60,000Fund 2,50,000 Stock 1,20,000General reserve 1,60,000 Machinery 1,00,000Capital’s: Mohan 1,00,000 Building 2,80,000 Mahesh 80,000 1,80,0008,00,000 8,00,000It was agreed that :(i)The value of Building and Stock be appreciated to 3,80,000rs and 1,60,000rs respectively.(ii) The liabilities of workmen's compensation fund was determined at2,30,000rs. (iii) Nusrat brought in her share of goodwill 1,00,000rs in cash.(iv) Nusrat was to bring further cash as would make her capital equal to 20% of the combined capital of Mohan and Mahesh after above revaluation and adjustments are carried out.(v)The future profrt sharing ratio will be Mohan 2/5, Mahesh 2/5,Nusrat 1/5. Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of the new firm. Also show clearly the calculation of Capital brought by Nusrat.

ORKushal, Kumar and Kavita were partners in a firm sharing profits in the ratio of 3:1:1. On 1stApril, 2012 their Balance Sheet was as follows :

Balance Sheet of Kushal, Kumar and Kavita as on 1st April, 2012Liabilities Amount Assets Amount (rs) (rs)Creditors 1,20,000 Cash 70,000Bills payable 1,80,000 Debtors 2,00,000General reserve 1,20,000 Less: Provision 10,000 1,90,000Capital’s: Stock 2,20,000Kushal 3,00,000 Furniture 1,00,000Kumar 2,80,000 Building 2,80,000Kavita 3,00,000 8,80,000 Land 4,00,00013,00,000 13,00,000On the above date Kavita retired and the following was agreed :(i)Goodwill of the firm was valued at 40,000rs.

8

(ii) Land was to be appreciated, by 30% and building was to be depreciated by 1,00,000rs.(iii)Value of furniture was to be reduced by 20,000rs.(iv) Bad debts reserve is to be increased to 15,000rs.(v)10% of the amount payable to Kavita was paid in cash and the balance was transferred to her Loan Account.(vi) Capitals of Kushal and Kumar will be in proportion to their new profit sharing ratio. The surplus/deficit, if any in their capital Accounts will be adjusted through Current Accounts.Prepare Revaluation Account, partner’s capital Accounts and Balance Sheet of Kushal and Kumar after Kavita’sretirement.

18 XYZ Ltd. invited applications for 40,000 equity shares of 100rs each at a discount of 6%. The amount was payable as follows :On Application and Allotment – 90rs per shareOn First and Final call - the balance amount Application for 60,000 shares were received. Applications for 10'000 shares were rejected and shares were allotted on pro-rata basis to remaining applicants. Excess application money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 50 shares, failed to pay the first and final call money His shares were forfeited All the forfeited shares were re-issued at 97rs per share fully paid up.Pass necessary journal entries for the above transactions in the books of XYZ Ltd.

ORAB Ltd. invited applications for issuing 75'000 equity shares of 100rs each at a premium of 30rs per share. The amount was payable as follows :On Application and Allotment – 85rs per share (including premium)On First and Final call - the balance AmountApplications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and shares were allotted on pro-rata basis to the remaining applicants.Excess money received on application and allotment was adjusted towards sums due on first and final call. The calls were made' A shareholder' who applied for 1'000 shares failed to pay the first and final call money' His shares were forfeited' All the forfeited shares were reissued at 150rs per share fully paid upPass necessary journal entries for the above transactions in the books of AB Ltd.

PART B19 What is meant by 'Cash Equivalents' while preparing Cash Flow Statement? 120 State the objective of preparing 'Cash Flow Statement’. 421 State any one limitation of 'Analysis of Financial Statements'. 422 Underwhich majorsub-headings thefollowing itemswillbeplaced intheBalance

SheetofacompanyasperrevisedSchedule-VI,Part-IoftheCompaniesAct,1956:(i) AccruedIncomes(ii) LooseTools(iii) Provisionforemployeesbenefits(iv) Unpaid dividend(v) Short-termloans(vi) Long-termloans.

4

23 From the following statement of profit & Loss for the year ended 31st March,2013, prepare a ‘Comparative statement of profit&loss’ of goods Services Ltd. Particulars note no. 2012-13 2011-12

4

Revenuefromoperations 20,000,00015,00 000OtherIncomes 10,00,0004,00,000Expenses 21,00,00015,00,000

Rate of Income tax was 50%24 (a) From the following information, compute 'Debt-Equity Ratio' :

Long term Borrowings 2,00,000LongtermProvisions 1,00,000Current Liabilities 50,000Non-current Assets 3,60,000 Current Assets 90,000(b) The current ratio of X. Ltd is 2 : 1. State with reason which of the following transaction would (i) increase ; (ii) decrease or (iii) not change the ratio :(1) Included in the trade payables was a bills payable of 9,000rs which was met on marurity.(2) Company issued 1,00,000 equity shares of 10rs each to the Vendors of machinery purchased.

2+2=4

25 Prepare a cash Flow Statement on the basis of the information given in the Balance Sheets of Liva Ltd. as at 31-3-2013 and 31-3-2012:

6

ACCOUNTANCY (055)

DELHI BOARD 2015 SET I

Qu PART A Mar

e ks1 In the absence of partnership deed the profits of a firm are divided among the

partners : (a) In the ratio of capital (b) Equally (c) In the ratio of time devoted for the firm’s business (d) According to the managerial abilities of the partners

1

2 A, B, C and D were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On1-1-2015 they admitted E as a new partner for 1/10 share in the profits. E broughtrs 10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at rs 1,00,000 in the books. Was the accountant correct in doing so ? Give reason in support of your answer.

1

3 On the retirement of Hari from the firm of ‘Hari, Ram and Sharma’ the balance-sheet showed a debit balance of rs 12,000 in the profit and loss account. For calculating the amount payable to Hari this balance will be transferred (a) to the credit of the capital accounts of Hari, Ram and Sharma equally (b) to the debit of the capital accounts of Hari, Ram and Sharma equally (c) to the debit of the capital accounts of Ram and Sharma equally (d) to the credit of the capital accounts of Ram and Sharma equally

1

4 Kumar, Verma and Naresh were partners in a firm sharing profit & loss in the ratio of 3 : 2 : 2. On 23rd January, 2015 Verma died. Verma’s share of profit till the date of his death was calculated at rs 2,350.Pass necessary journal entry for the same in the books of the firm.

1

5 Give the meaning of forfeiture of shares. 16 Joy Ltd. issued 1,00,000 equity shares of rs 10 each. The amount was payable as follows

: On application – rs 3 per share. On allotment – rs 4 per share. On 1st and final call – balance Applications for 95,000 shares were received and shares were allotted to all the applicants. Sonam to whom 500 shares were allotted failed to pay allotment money and Gautam paid his entire amount due including the amount due on first and final call on the 750 shares allotted to him along with allotment. The amount received on allotment was (a) rs 3,80,000 (b) rs 3,78,000 (c) rs 3,80,250 (d) rs 4,00,250

1

7 State any three purposes other than ‘issue of bonus shares’ for which securities premium can be utilized.

3

8 On 1-4-2013 Jay and Vijay, entered into partnership for supplying laboratory equipments to government schools situated in remote and backward areas. They contributed capitals of rs 80,000 and rs 50,000 respectively and agreed to share the profits in the ratio of 3 : 2. The partnership deed provided that interest on capital shall be allowed at 9% per annum. During the year the firm earned a profit of rs 7,800. Showing your calculations clearly, prepare ‘Profit and Loss Appropriation Account’ of Jay and Vijay for the year ended 31-3-2014.

3

9 ‘Tractors India Ltd.’ is registered with an authorized capital of rs 10,00,000 divided into 1,00,000 equity shares of rs 10 each. The company issued 50,000 equity shares at a premium of rs 5 per share. rs 2 per share were payable with application, rs 8 per share including premium on allotment and the balance amount on first and final call. The issue was fully subscribed and all the amount due was received except the first and final

3

call money on 500 shares allotted to Balaram. Present the ‘Share Capital’ in the Balance Sheet of ‘Tractors India Ltd.’ as per Schedule VI Part I of the Companies Act, 1956. Also prepare Notes to Accounts for the same.

10 ‘Sangam Woollens Ltd.’, Ludhiana, are the manufacturers and exporters of woollen garments. The company decided to distribute free of cost woollen garments to 10 villages of Lahaul and Spiti District of Himachal Pradesh. The company also decided to employ 50 young persons from these villages in its newly established factory. The company issued 40,000 equity shares of rs 10 each and 1,000 9% debentures of rs 100 each to the vendors for the purchase of machinery of rs 5,00,000.Pass necessary Journal Entries. Also identify any one value that the company wants to communicate to the society.

3

11 Dev, Swati and Sanskar were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31-3-2014 their Balance Sheet was as follows :

LiabilitiesAmount

AssetsAmount

rs rs

Trade Payables 17,000 Building 1,04,000

Bank Loan 13,000 Inventory 16,000

Capitals : Trade Receivables 23,000

Dev 77,000 Cash 40,000

Swati 87,000 Profit & Loss A/c. 57,000

Sanskar 46,000 2,10,000

2,40,000 2,40,000

On 30th June, 2014 Dev died. According to partnership agreement Dev was entitled to interest on capital at 12% per annum. His share of profit till the date of his death was to be calculated on the basis of the average profits of last four years. The profits of the last four years were :

Years Profit

rs

2010-2011 2,04,000

2011-2012 1,80,000

2012-2013 90,000

2013-2014 (Loss) 57,000

On 1-4-2014, Dev withdrew rs 15,000 to pay for his medical bills.Prepare Dev’s account to be presented to his executors.

4

12 Kumar, Gupta and Kavita were partners in a firm sharing profits and losses equally.The firm was engaged in the storage and distribution of canned juice and its godowns

4

were located at three different places in the city. Each godown was being managed individually by Kumar, Gupta and Kavita. Because of increase in business activities at the godown managed by Gupta, he had to devote more time. Gupta demanded that his share in the profits of the firm be increased, to which Kumar and Kavita agreed. The new profit sharing ratio was agreed to be 1 : 2 : 1. For this purpose the goodwill of the firm was valued at two years purchase of the average profits of last five years. The profits of the last five years were as follows :

Year Profitrs

I 4,00,000

II 4,80,000

III 7,33,000

IV (Loss) 33,000

V 2,20,000

(i) Calculate the goodwill of the firm.

(ii) Pass necessary Journal Entry for the treatment of goodwill on change in profit sharing ratio of Kumar, Gupta and Kavita.

13 On 1-4-2010 Sahil and Charu entered into partnership for sharing profits in the ratio of 4 : 3. They admitted Tanu as a new partner on 1-4-2012 for 1/5 th share which she acquired equally from Sahil and Charu. Sahil, Charu and Tanu earned profits at a higher rate than the normal rate of return for the year ended 31-3-2013. Therefore, they decided to expand their business. To meet the requirements of additional capital they admitted Puneet as a new partner on 1-4-2013 for1/7 th share in profits which he acquired from Sahil and Charu in 7 : 3 ratio. Calculate : (i) New profit sharing ratio of Sahil, Charu and Tanu for the year 2012-13. (ii) New profit sharing ratio of Sahil, Charu, Tanu and Puneet on Puneet’s admission

6

14 Bharat Ltd. had an authorized capital of rs 20,00,000 divided into 2,00,000 equity shares of rs 10 each. The company issued 1,00,000 shares and the dividend paid per share was rs 2 for the year ended 31-3-2008. The management of the company decided to export its products to the neighbouring countries Nepal, Bhutan, Sri Lanka and Bangladesh. To meet the requirement of additional funds the financial manager of the company put up the following three alternatives before its Board of Directors : (i) Issue 54,000 equity shares. (ii) Obtain a loan from Import and Export Bank of India. The loan was available at 12% per annum interest. (iii) To issue 9% Debentures at a discount of 10%. After comparing the available alternatives the company decided on 1-4-2008 to issue 6,000 9% debentures of rs 100 each at a discount of 10%. These debentures were redeemable in four instalments starting from the end of third year. The amount of debentures to be redeemed at the end of third, fourth, fifth and sixth year was as follows :

Year Profit

rs

III 1,00,000

6

IV 1,00,000

V 2,00,000

VI 2,00,000

Prepare 9% Debentures Account for the years 2008-09 to 2013-14.

15 Bora, Singh and Ibrahim 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 Realisation Account, Partners’ Capital Accounts 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.

Dr. Realisation Account Cr.

Particulars

Amount

Particulars

Amount

rs rs

To Stock 10,000By Provision for bad debts 5,000

To Debtors 25,000By Sundry Creditors 16,600

To Plant and Machinery 40,000 By Bills Payable 3,400

To Bank :By Mortgage Loan 15,000

Sundry Creditors

16,000

By Bank – assets realized :

Bills Payable3,40

0 Stock6,70

0

Mortgage Loan

15,000 34,400 Debtors

12,500

To Bank (Outstanding repairs) 400

Plant & Machinery

36,000 55,200

To Bank (Exp.) 620By Bank-unrecorded assets

6

realized 6,220

By ________ –––

1,10,420

1,10,420

Dr.Capital Accounts Cr.

Particulars Bora Singh

Ibrahim

Particulars Bora

Singh

Ibrahim

rs rs rs rs rs rs

– – – –By Bal. b/d 22,000 18,000 10,000

– – – –

By General

2,500 1,500 500Reserve

24,500 19,50010,500 24,50019,50

010,50

0

Bank Account

Dr. Cr.

Particulars

Amount

Particulars

Amount

rs rs

To Bal. b/d 19,500 By Realisation (liabilities) 34,400

To Realisation

By Realisation (unrecorded 400

(assets realized) 55,200 liabilities )

_____________ _______ By _________

_______

By ______________

__

80,92080,92

0

16 Alfa Ltd. invited applications for issuing 75,000 equity shares of rs 10 each. Theamount was payable as follows : On application and allotment – rs 4 per share. On first call – rs 3 per share On second and final call – balance. Applications for 1,00,000 shares were received. Shares were allotted to all theapplicants on pro-rata basis and excess money received with applications wastransferred towards sums due on first call. Vibha who was allotted 750 shares failed to pay the first call. Her shares were immediately forfeited. Afterwards the second call was made. The amount due on second call was also received except on 1000 shares, applied by Monika. Her shares were also forfeited. All the forfeited shares were reissued to Mohit for rs 9,000 as fully paid up.Pass necessary journal entries in the books of Alfa Ltd. for the above transactions.

ORJeevanDhara Ltd. invited applications for issuing 1,20,000 equity shares of rs 10 each at a premium of rs 2 per share. The amount was payable as follows : On application – rs 2 per share. On allotment – rs 5 per share (including premium) On first and final call – balance.Applications for 1,50,000 shares were received. Shares were allotted to all theapplicants on pro-rata basis. Excess money received on applications was adjustedtowards sums due on allotment. All calls were made. Manu who had applied for 3,000 shares failed to pay the amount due on allotment and first and final call. Madhur who was allotted 2,400 shares failed to pay the first and final call. Shares of both Manu and Madhur were forfeited. The forfeited shares were re-issued at rs 9 per share as fully paid up.Pass necessary journal entries for the above transactions in the books of JeevanDhara Ltd.

8

17 Charu and Harsha were partners in a firm sharing profits in the ratio of 3 : 2. On

1-4-2014 their Balance Sheet was as follows :

Balance Sheet of Charu and Harsha as on 1-4-2014

LiabilitiesAmount

AssetsAmount

rs rs

Creditors 17,000 Cash 6,000

8

General Reserve 4,000 Debtors 15,000

Workmen Compensation Fund 9,000 Investments 20,000

Investment Fluctuation Fund 11,000 Plant 14,000

Provision for bad debts 2,000 Land and Building 38,000

Capitals :

Charu 30,000

Harsha 20,000 50,000

93,000 93,000

On the above date Vaishali was admitted for ¼th share in the profits of the firm on the following terms :

(a) Vaishali will bring rs 20,000 for her capital and rs 4,000 for her share of goodwill premium.

(b) All debtors were considered good.

(c) The market value of investments was rs 15,000.

(d) There was a liability of rs 6,000 for workmen compensation.

(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali’s capital by opening current accounts.

Prepare Revaluation Account and Partners’ Capital Accounts.

ORAmit, Balan and Chander were partners in a firm sharing profits in the proportion of1 1 1

,and

respectively. Chander retired on 1-4-2014. The Balance Sheet of the firm2 3 6

on the date of Chander’s retirement was as follows :

Balance Sheet of Amit, Balan and Chander as on 1-4-2014

Liabilitie Amount Asset Amount

s srs rs

Sundry Creditors 12,600 Bank 4,100

Provident Fund 3,000 Debtors 30,000

General Reserve 9,000 Less : Provision 1,000 29,000

Capitals : Stock 25,000

Amit 40,000 Investments 10,000

Balan 36,500 Patents 5,000

Chander 20,000 96,500 Machinery 48,000

1,21,100 1,21,100

It was agreed that :(a) Goodwill will be valued at rs 27,000.

(b) Depreciation of 10% was to be provided on machinery.

(c) Patents were to be reduced by 20%.(d) Liability on account of Provident Fund was estimated at rs 2,400.

(e) Chander took over investments for rs 15,800.

(f) Amit and Balan decided to adjust their capitals in proportion of their profit sharing ratio by opening current accounts.

Prepare Revaluation Account and Partners’ Capital Accounts on Chander’s retirement.

PART B18 Which of the following transactions will result into ‘Flow of Cash’ ?

(a) Deposited rs 10,000 into bank. (b) Withdrew cash from bank rs 14,500. (c) Sale of machinery of the book value of rs 74,000 at a loss of rs 9,000. (d) Converted rs 2,00,000 9% debentures into equity shares.

1

19 While preparing the ‘Cash Flow Statement’ the accountant of Gulfam Ltd., a financing company showed ‘Dividend received on Investments’ as ‘Investing Activity’. Was he correct in doing so ? Give reason.

1

20 Under which major headings the following items will be presented in the Balance Sheet of a company as per Schedule VI Part I of the Companies Act, 1956 ? (i) Loans provided repayable on demand (ii) Goodwill (iii) Copyrights (iv) Loose tools (v) Cheques (vi) General Reserve (vii) Stock of finished goods and

4

(viii) 9% Debentures repayable after three years21 From the following information related to Naveen Ltd. calculate (a) Return on

Investment and (b) Total Assets to Debt Ratio. Information : Fixed Assets rs 75,00,000; Current Assets rs 40,00,000; CurrentLiabilities rs 27,00,000; 12% Debentures rs 80,00,000 and Net Profit before Interest,Tax and Dividend rs 14,50,000.

4

22 The motto of Yash Ltd., an advertising company is ‘Service With Dignity’. Its management and work force is hard-working, honest and motivated. The net profit of the company doubled during the year ended 31-3-2014. Encouraged by its performance company decided to give one month extra salary to all its employees. Following is the Comparative Statement of Profit and Loss of the company for the years ended 31st

March 2013 and 2014.Yash Ltd.

Comparative Statements of Profit and Loss.

Note

2012-13

2013-14

Absolute

%

Particulars ChangeNo. rs rs Change

rs

Revenue from operations 10,00,000 15,00,000 5,00,000 50

Less Employees benefit expenses 6,00,000 7,00,000 1,00,000 16.67

Profit before tax 4,00,000 8,00,000 4,00,000 100

Tax Rate 25% 1,00,000 2,00,000 1,00,000 100

Profit after tax 3,00,000 6,00,000 3,00,000 100

(a) Calculate Net Profit Ratio for the years ending 31st March, 2013 and 2014.

(b) Identify any two values which Yash Ltd. is trying to propagate.

4

23 Following is the Balance Sheet of Thermal Power Ltd. as at 31-3-2014 :Thermal Power Ltd.

Balance Sheet as at 31-3-2014

ParticularsNote 2013-14 2012-13

No. rs rs

I. EQUITY AND LIABILITIES

6

(1) Shareholders Funds

(a) Share Capital 12,00,000 11,00,000

(b) Reserves and Surplus 1 3,00,000 2,00,000

(2) Non Current Liabilities

Long Term Borrowings 2,40,000 1,70,000

(3) Current Liabilities

(a) Trade Payables 1,79,000 2,04,000

(b) Short Term Provisions 50,000 77,000

Total 19,69,000 17,51,000

II. ASSETS

(1) Non-current Assets

(a) Fixed Assets

(i) Tangible 2 10,70,000 8,50,000

(ii) Intangible 3 40,000 1,12,000

(2) Current Assets

(a) Current Investments 2,40,000 1,50,000

(b) Inventories 1,29,000 1,21,000

(c) Trade Receivables 1,70,000 1,43,000

(d) Cash and Cash equivalents 3,20,000 3,75,000

Total 19,69,000 17,51,000

Notes to Accounts :

S. No. Particulars

2013-14 2012-13

rs rs

1. Reserves and Surplus

Surplus (balance in statement of

Profit and Loss) 3,00,000 2,00,000

2. Tangible Assets

Machinery 12,70,000 10,00,000

Less : Accumulated Depreciation (2,00,000) (1,50,000)

3. Intangible Assets

Goodwill 40,000 1,12,000

Additional information :

During the year a piece of machinery, costing rs 24,000 on which accumulated depreciation was rs 16,000, was sold for rs 6,000.

Prepare Cash Flow Statement.

ACCOUNTANCY (055)

DELHI BOARD 2016 SET I

Que

PART A Marks

1 What is the maximum number of partners that a partnership firm can have? Name the act that provides for the maximum number of partners in a partnership firm.

1

2 A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profit sharing ratio of A, B, C and D.

1

3 Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ on the basis of ‘Economic Relationship’.

1

4 State the provisions of the Companies Act, 2013 for the creation of ‘DebentureRedemption Reserve’.

1

5 On 1-1-2016 the first call of 3rs per share became due on 1,00,000 equity shares issued by Kamini Ltd. Karan a holder of 500 shares did not pay the first call money. Arjun a shareholder holding 1000 shares paid the second and final call of 5rs per share along with the first call. Pass the necessary journal entry for the amount received by opening ‘Calls-in arrears’ and ‘Calls-in-advance’ account in the books of the company.

1

6 Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3:2. During the year ended 31-3-2015 Nusrat had withdrawn 15,000rs. Interest on her drawings amounted to 300rs. Pass necessary journal entry for charging interest on drawings assuming that the capitals of the partners were fixed.

1

7 KTR Ltd., issued 365, 9% Debentures of 1,000rs each on 4-3-2016. Pass necessary journal entries for the issue of debentures in the following situations : (a) When debentures were issued at par redeemable at a premium of 10%. (b) When debentures were issued at 6% discount redeemable at 5% premium.

3

8 State any three circumstances other than (i) admission of a new partner; (ii) retirement of a partner and (iii) death of a partner, when need for valuation of goodwill of a firm may arise.

3

9 Sandesh Ltd. took over the assets of 7,00,000rs and liabilities of 2,00,000rs from Sanchar Ltd. for a purchase consideration of 4,59,500rs. 8,500rs were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of 10rs each at a premium of 10% in favour of Sanchar Ltd. Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.

3

10 To provide employment to the youth and to develop the Naxal affected backward areas of Chattisgarh. X Ltd. decided to set-up a power plant. For raising funds the

3

company decided to issue 7,50,000 equity shares of 10rs each at a premium of 50%. The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 50,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata basis. Pass necessary journal entries for the above transactions in the books of the company and identify any two values which X Ltd. wants to propagate.

11 P and Q were partners in a firm sharing profits in the ratio of 5:3. On 1-4-2014 they admitted R as a new partner for 1/8th share in the profits with a guaranteed profit of 75,000rs. The new profit sharing ratio between P and Q will remain the same but they agreed to bear any deficiency on account of guarantee to R in the ratio 3:2. The profit of the firm for the year ended 31-3-2015 was 4,00,000rs. Prepare Profit and Loss Appropriation Account of P, Q and R for the year ended31-3-2015.

4

12 Vikas, Vishal and Vaibhav were partners in a firm sharing profits in the ratio of 2:2:1. The firm closes its books on 31st March every year. On 31-12-2015 Vaibhav died. On that date his Capital account showed a credit balance of 3,80,000rs and Goodwill of the firm was valued at 1,20,000rs. There was a debit balance of 50,000rs in the profit and loss account. Vaibhav’s share of profit in the year of his death was to be calculated on the basis of the average profit of last five years. The average profit of last five years was 75,000rs. Pass necessary journal entries in the books of the firm on Vaibhav’s death.

4

13 L and M were partners in a firm sharing profits in the ratio of 2:3. On 28-2-2016 the firm was dissolved. After transferring assets (other than cash) and outsiders’ liabilities to realization account you are given the following information :(a) A creditor for 1,40,000rs accepted building valued at 1,80,000rs and paid to the firm 40,000rs.(b) A second creditor for 30,000rs accepted machinery valued at 28,000rs in full settlement of his claim. (c) A third creditor amounting to 70,000rs accepted 30,000rs in cash and investments of the book value of 45,000rs in full settlement of his claim.(d) Loss on dissolution was 4,000rs.Pass necessary journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque.

6

14 Ashok, Bhim and Chetan were partners in a firm sharing profits in the ratio of 3:2:1. Their Balance Sheet as on 31-3-2015 was as follows :

Balance Sheet of Ashok, Bhim and Chetan as on 31-3-2015Amount Amount

Liabilities Assets(rs) (rs)

Creditors 1,00,000 Land 1,00,000

Bills Payable 40,000 Building 1,00,000

General Reserve 60,000 Plant 2,00,000

Capitals : Stock 80,000

6

Ashok 2,00,000 Debtors 60,000

Bhim 1,00,000 Bank 10,000

Chetan 50,000 3,50,000

5,50,000 5,50,000

Ashok, Bhim and Chetan decided to share the future profits equally, w.e.f. April 1, 2015. For this it was agreed that :

(i) Goodwill of the firm be valued at 3,00,000rs.

(ii) Land be revalued at 1,60,000rs and building be depreciated by 6%.

(iii) Creditors of 12,000rs were not likely to be claimed and hence be written off.

Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm.

15 On 1-4-2013 JN Ltd. had 10,000, 9% Debentures of 100rs each outstanding. (i) On 1-4-2014 the company purchased in the open market 2000 of its own debentures for 101rs each and cancelled the same immediately. (ii) On 1-4-2015 the company redeemed at par debentures of 4,00,000rs by draw of a lot. (iii) On 28-2-2016 the remaining debentures were purchased for immediate cancellation for 3,97,000rs. Pass necessary journal entries for the above transactions in the books of the company ignoring debenture redemption reserve and interest on debentures

6

16 KS Ltd. invited applications for issuing 1,60,000 equity shares of 10rs each at a premium of 6rs per share. The amount was payable as follows : On Application 4rs per share (including premium 1rs per share) On Allotment 6rs per share (including premium 3rs per share) One First and Final Call – Balance. Applications for 3,20,000 shares were received. Applications for 80,000 share were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jain holding 800 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Gupta who had applied for 1200 shares failed to pay the final call. This shares were also forfeited. Out of the forfeited shares 1000 shares were re-issued at 8rs per share fully paid up. The re-issued shares included all the forfeited shares of Jain. Pass necessary journal entries for the above transactions in the books of KS Ltd.

ORGG Ltd. had issued 50,000 equity shares of 10rs each at a premium of 2rs per share payable with application money. The incomplete journal entries related to the issue are given below. You are required to complete these blanks.

Books of GG Ltd.

JOURNAL

L.

Debit Credit

Date Particulars Amount Amount

F.

(rs) (rs)

2015,

Jan. 10 …….. Dr. ……..

To …………. ……..

(Amount received on application for 70,000

shares @ rs 5 per share including premium)

8

″ 16 Equity Share Application A/c Dr. ……..

To ……..……..……..…….. ……..

To ……..……..……..…….. ……..

To ……..……..……..…….. ……..

To ……..……..……..…….. ……..

(Transfer of application money to share capital,

securities premium, money refunded for 8000

shares for rejected applications and balance

adjusted towards amount due on allotment as

shares were allotted on Pro-rata basis.

″ 31 ……..…….. Dr. ……..

To ……..…….. ……..

(Amount due on allotment @ rs 4 per share)

Feb. 20 ……..…….. Dr. ……..

To ……..…….. ……..

(Balance amount received on allotment)

April 01 ……..…….. Dr. ……..

To ……..…….. ……..

(First and final call money due)

″ 20 ……..…….. Dr. ……..

Calls-in-arrears A/c. Dr. 1,500

To ……..…….. ……..

(Money received on first and final call)

Aug. 27……..…….. Dr. ……..

To ……..……..

To ……..……..

(Forfeited the shares on which call money was

not received)

Oct. 3 ……..…….. Dr. ……..

……..…….. Dr. ……..

To ……..……..

(Re-issued the forfeited shares @ 8 per share

fully paid up)

…….. ……..…….. Dr. ……..

To ……..……..

(……..……..……..……..……..)

17 A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. On 31-3-2015 their Balance Sheet was as follows :

Balance Sheet of A, B and C as on 31-3-2015

LiabilitiesAmount

AssetsAmount

(rs) (rs)

Creditors 84,000 Bank 17,000

General Reserve 21,000 Debtors 23,000

Capitals : Stock 1,10,000

A 60,000 Investments 30,000

B 40,000 Furniture & Fittings 10,000

C 20,000 1,20,000 Machinery 35,000

2,25,000 2,25,000

On the above date D was admitted as a new partner and it was decided that :(i) The new profit sharing ratio between A, B, C and D will be 2:2:1:1.

(ii) Goodwill of the firm was valued at rs 90,000 and D brought his share of goodwill premium in cash.

(iii) The market value of investments was rs 24,000.

8

(iv) Machinery will be reduced to rs 29,000.

(v) A creditor of rs 3,000 was not likely to claim the amount and hence to be written-off.

(vi) D will bring proportionate capital so as to give him 1/6th share in the profits of the firm.Prepare Revaluation Account, Partner’s Capital Accounts and the

Balance Sheet of the reconstituted firm.OR

X, Y and Z were partners in a firm sharing profit’s in the ratio of 5:3:2. On 31-3-2015 their Balance Sheet was as follows :

Balance Sheet of X, Y and Z as on 31st March, 2015

LiabilitiesAmount

AssetsAmount

(rs) (rs)

Creditors 21,000 Land and Building 62,000

Investment Motor Vans 20,000

Fluctuation Fund 10,000 Investments 19,000

P & L Account 40,000 Machinery 12,000

Capitals : Stock 15,000

X 50,000 Debtors 40,000

Y 40,000 Less : Provision 3,000 37,000

Z 20,000 1,10,000 Cash 16,000

1,81,000 1,81,000

On the above date Y retired and X and Z agreed to continue the business on the following terms :

(1) Goodwill of the firm was valued at rs 51,000.

(2) There was a claim of rs 4,000 for Workmen’s Compensation.

(3) Provision for bad debts was to be reduced by rs 1,000.

(4) Y will be paid rs 8,200 in cash and the balance will be

transferred in his loan account which will be paid in four equal yearly instalments together with interest @ 10% p.a.

(5) The new profit sharing ratio between X and Z will be 3:2 and their capitals will be in their new profit sharing ratio. The capital

adjustments will be done by opening current accounts.Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm.

PART B18 ‘An enterprise may hold securities and loans for dealing or trading purposes in which

case they are similar to inventory acquired specifically for resale.’ Is the statementcorrect ? Cash flows from such activities will be classified under which type ofactivity while preparing Cash Flow Statement ?

1

19 Give the meaning of ‘Cash Equivalents’ for the purpose of preparing Cash FlowStatement.

1

20 (a) One of the objectives of ‘Financial Statements Analysis’ is to identify thereasons for change in the financial position of the enterprise. State two moreobjectives of this analysis.(b) Name any two items that are shown under the head ‘Other Current Liabilities’and any two items that are shown under the head ‘Other Current Assets’ in theBalance Sheet of a company as per Schedule III of the Companies Act, 2013.

2+2=4

21 (a) What is meant by solvency of business ?(b) From the following details obtained from the financial statements of Jeev Ltd., calculate interest coverage ratio : Net Profit after tax 1,20,000rs,12% Long-term Debt 20,00,000rs, Tax Rate 40%.

2+2=4

22 Following is the statement of Profit and Loss of Sun India Ltd. for the year ended 31st March, 2015 :

Following is the statement of Profit and Loss of Sun India Ltd. for the year ended 31st

March, 2015 :

ParticularsNote 31-3-2015 31-3-2014

No. (rs) (rs)

Revenue from operations 25,00,000 20,00,000

Other Income 1,00,000 5,00,000

Employee benefit-expenses 60% of total Revenue 50% of total Revenue

Other expenses 10% of employee 20% of employee

benefit expenses benefit expenses

Tax Rate 50% 40%

The motto of Sun India Ltd. is to produce and supply green energy in the rural areas of India. It has also taken up a project of constructing a road that will pass through five villages, so that these villages could be connected to the nearby town. It will use the local resources and employ local people for construction of the road. You are required to prepare a Comparative Statement of Profit and Loss of Sun India Ltd. from the given statement of Profit and Loss. Also identify any two values that the company wishes to convey to the society.

4

23 Following is the Balance Sheet of K.K. Ltd. as at 31-3-2015 :K.K. Ltd. Balance Sheet as at 31-3-2015

6

ParticularsNote 31-3-2015 31-3-2014

No. (rs) (rs)

I. Equity and Liabilities :

(1) Shareholders’ Funds :

(a) Share Capital 10,00,000 8,00,000

(b) Reserves and Surplus 1 4,00,000 (1,00,000)

(2) Non-current Liabilities :

Long-term borrowings 2 9,00,000 10,00,000

(3) Current Liabilities :

(a) Short-term borrowings 3 3,00,000 1,00,000

(b) Short-term provisions 4 1,40,000 1,80,000

Total : 27,40,000 19,80,000

II. Assets :

(1) Non-current Assets :

(a) Fixed Assets :

(i) Tangible 5 20,06,000 14,40,000

(ii) Intangible 6 40,000 60,000

(b) Non-current Investments 2,00,000 1,50,000

(2) Current Assets :

(a) Current Investments 1,00,000 1,20,000

(b) Inventories 7 2,14,000 90,000

(c) Cash and Cash Equivalents 1,80,000 1,20,000

Total : 27,40,000 19,80,000

Notes to Accounts :Note 31-3-2015 31-3-2014

No.Particulars

rsrs

( ) ( )

1 Reserves and Surplus

(Surplus i.e. Balance in Statement of(1,00,000)4,00,000

Profit and Loss)

4,00,000 (1,00,000)

2. Long-term borrowings :12% Debentures 9,00,000 10,00,000

9,00,000 10,00,000

3. Short-term borrowings :Bank Overdraft 3,00,000 1,00,000

3,00,000 1,00,000

4. Short-term provisions :Provision for tax 1,40,000 1,80,000

1,40,000 1,80,000

5. Tangible Assets :

Machinery 24,06,000 16,42,000

Accumulated Depreciations (4,00,000) (2,02,000)

20,06,000 14,40,000

6. Intangible Assets :

Goodwill 40,000 60,000

40,000 60,000

Inventories :7.

Stock in trade 2,14,000 90,000

2,14,000 90,000

Additional Information :(i) 12% Debentures were redeemed on 31-3-2015.(ii) Tax rs1,40,000 was paid during the year.Prepare Cash Flow Statement

ACCOUNTANCY (055)

DELHI BOARD 2017 SET I

Que

PART A Marks

1 Does partnership firm has a separate legal entity ? Give reason in support of youranswer.

1

2 A and B were partners in a firm sharing profits and losses in the ratio of 4:3. Theyadmitted C as a new partner. The new profit sharing ratio between A, B and C was3:2:2. A surrendered ¼ of his share in favour of C. Calculate B’s Sacrifice.

1

3 P and Q were partners in a firm sharing profits equally. Their fixed capitals were rs 1,00,000 and rs 50,000 respectively. The partnership deed provided for interest on capital at the rate of 10% per annum. For the year ended 31st march, 2016 the profits of the firm were distributed without providing interest on Capital. Pass necessary adjustment entry to rectify the error.

1

4 X Ltd. invited applications for issuing 1000, 9% debentures of rs 100 each at a discount of 6%. Applications for 1,200 debentures were received. Pro-rata allotment was made to all the applicants. Pass necessary Journal Entries for the issue of debentures assuming that the whole amount was payable with applications.

1

5 Y Ltd. forfeited 100 equity shares of rs 10 each for the non-payment of first call of rs 2 per share. The final call of rs 2 per share was yet to be made.Calculate the maximum amount of discount at which these shares can bere-issued.

1

6 Gupta and Sharma were partners in a firm. They wanted to admit two more members in the firm. List the categories of individuals other than minors who cannot be admitted by them.

1

7 Jain Motors Ltd. converted its 200, 8% debentures of rs 100 each issued at a discount of 6% into equity shares of rs 10 each, issued at a premium of 25%. Discount on issue of 8% debentures has not yet been written off.Showing your working notes clearly pass necessary Journal Entries on conversion of 8% debentures into equity shares.

3

8 Amar, Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 2 : 2 : 2 : 1. On 31st January, 2017 Sohan retired. On Sohan’s retirement the goodwill of the firm was valued at rs 70,000. The new profit sharing ratio between Amar, Ram and Mohan was agreed as 5 : 1 : 1. Showing your working notes clearly, pass necessary Journal Entry for thetreatment of goodwill in the books of the firm on Sohan’s retirement.

3

9 Z Ltd. purchased machinery from K Ltd. Z Ltd. paid K Ltd as follows : (i) By issuing 5,000 equity shares of rs 10 each at a premium of 30%. (ii) By issuing 1000, 8% Debentures of rs 100 each at a discount of 10%. (iii) Balance by giving a promissory note of rs 48,000 payable after two months. Pass necessary journal entries for the purchase of machinery and payment to K Ltd. in the books of Z Ltd.

3

10 Akash Ltd. is registered with an authorized Capital of rs 8,00,00,000 divided into equity shares of rs 10 each. Subscribed and fully paid up share capital of the company was rs 4,00,00,000. For providing employment to the local youth and for the development of the rural areas of the Jammu and Kashmir State the company decided to set up a food processing unit in Anantnag district. The Company also decided to open skill development centres in Ladakh, Srinagar and Punch. To meet its new financial requirements the company decided to issue 1,00,000 equity shares of rs 10 each and 10,000, 9% debentures of rs 100 each. The debentures were redeemable after five years. The issue of equity shares and debentures was fully subscribed. A shareholder holding 1,000 shares failed to pay the final call of rs 2 per share.Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also, identify any two values that the company wishes to propagate.

3

11 Karan and Varun were partners in a firm sharing profits and losses in the ratio of 1:2. Their fixed capitals were rs 2,00,000 and rs 3,00,000 respectively. On 1st April,2016 Kishore was admitted as a new partner for 1/4 th share in the profits. Kishore broughtrs 2,00,000 for his capital which was to be kept fixed like the capitals of Karan and Varun. Kishore acquired his share of profit from Varun.Calculate goodwill of the firm on Kishore’s admission and the new profit sharing ratio of Karan, Varun and Kishore. Also, pass necessary Journal Entry for the treatment of Goodwill on Kishore’s admission considering that Kishore did not bring his share of goodwill premium in Cash.

4

12 Sandeep, Mandeep and Amandeep were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2016 Mandeep died. The partnership deed provided that on the death of a partner his executors will be entitled to the following : (1) Balance in his capital account and interest @ 12% p.a. on capital. On 1-4-2016 the balance in Mandeep’s Capital Account was rs 1,00,000. (2) His share in the profits of the firm in the year of his death which will be calculated on the basis of rate of net profit on sales of the previous year which was 25%. The sales of the firm till 30th September, 2016 were rs 9,00,000. (3) His share in the goodwill of the firm. The goodwill of the firm on Mandeep’sdeath was valued at rs 1,50,000. The partnership deed also provided that the following deductions will be made from the amount payable to the executor of the deceased partner :(1) His drawings in the year of his death. Mandeep’s drawings till 30th September,2016 were rs 4,000.(2) Interest on drawings @ 6% per annum which was calculated as rs 120.

4

The accountant of the firm prepared Mandeep’s Capital Account to be presented to the executor of Mandeep but in a hurry he left it incomplete. Madeep’s capital Account prepared by Accountant of the firm is shown below :

Dr. Mandeep’s Capital Account Cr.

Date Particulars Amount Date Particulars Amount

rs rs

2016 2016

Sep. 30 …………… 4,000 April 1 …………… 1,00,000

" " …………… – Sep. 30 …………… 6,000

" " …………… – " " …………… 90,000

" " …………… 40,000

" " …………… 20,000

2,56,000 2,56,000

You are required to complete Mandeep’s Capital Account.13 S, T, U and V were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1.

On 1-4-2016 their Balance Sheet was as follows :Balance Sheet of S, T, U and V as on 1-4-2016Balance Sheet of S, T, U and V as on 1-4-2016

LiabilitiesAmount

AssetsAmount

rs rs

Capitals : Fixed Assets 4,40,000

S 2,00,000 Current Assets 2,00,000

T 1,50,000U 1,00,000

V 50,000 5,00,000

Sundry Creditors 80,000

Workmen

Compensation Reserve 60,000

6

6,40,000 6,40,000

From the above date partners decided to share the future profits in3 : 1 : 2 : 4 ratio. For this purpose the goodwill of the firm was valued at rs 90,000. The partners also agreed for the following :

(i) The claim for workmen compensation has been estimated at rs 70,000.

(ii) To adjust the capitals of the partners according to new profit sharing ratio by opening partners current accounts.

Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm.

14 On 1-4-2015 K.K. Ltd. issued 500, 9% Debentures of rs 500 each at a discount of 4%, redeemable at a premium of 5% after three years. Pass necessary Journal Entries for the issue of debentures and debenture interest for the year ended 31-3-2016 assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year.

6

15 Pass necessary Journal Entries on the dissolution of a partnership firm in the following cases :(i) L, a partner, was appointed to look after the dissolution process for which

he was given a remuneration of rs 10,000.(ii) Dissolution expenses rs 8,000 were paid by the partner, M.(iii) Dissolution expenses were rs 5,000.(iv) P, a partner, was appointed to look after the process of dissolution for

which he was allowed a remuneration of rs 7,000. P agreed to bear the dissolution expenses. Actual dissolution expenses rs 4,000 were paid by P.

(v) N, a partner, was appointed to look after the process of dissolution for which he was allowed a remuneration of rs 9,000. N agreed to bear the dissolution expenses. Actual dissolution expenses rs 4,000 were paid by the firm.

(vi) Q a partner was appointed to look after the process of dissolution for which he was allowed a remuneration of rs 18,000. Q agreed to take over stock worth rs 18,000 as his remuneration. The stock had already been transferred to Realisation Account.

6

16 W and R are partners in a firm sharing profits in the ratio of 3 : 2. Their Balance Sheet as on 31st March, 2016 was as follows :

Balance Sheet of W and R as on 31-3-2016

LiabilitiesAmount

AssetsAmount

rs rs

Sundry Creditors 20,000 Cash 12,000

Provision for Bad Debts 2,000 Debtors 18,000

Outstanding Salary 3,000 Stock 20,000

General Reserve 5,000 Furniture 40,000

Capitals : Plant & Machinery 40,000

8

W 60,000R 40,000 1,00,000

1,30,000 1,30,000

On the above date C was admitted for 1/6th share in the profits on the following terms :(i) C will bring rs 30,000 as his capital and rs 10,000 for his share of goodwill

premium, half of which will be withdrawn by W and R.(ii) Debtors rs 1,500 will be written off as bad debts and a provision of 5%

will be created for bad and doubtful debts.(iii) Outstanding salary will be paid off.(iv) Stock will be depreciated by 10%, furniture by rs 500 and Plant and

Machinery by 8%.(v) Investments rs 2,500 not mentioned in the balance sheet were to be

taken into account.(vi) A creditor of rs 2,100 not recorded in the books was to be taken into

account. Pass necessary Journal Entries for the above transactions in the books of the firm on C’s admission.

ORM, N and G were partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31-3-2016 their Balance Sheet was as under :

Balance Sheet of M, N and G as on 31-3-2016

LiabilitiesAmount

AssetsAmount

rs rs

Creditors 55,000 Cash 40,000

General Reserve 30,000 Debtors 45,000

Capitals : Less Provision 5,000 40,000

M 1,50,000 Stock 50,000

N 1,25,000 Machinery 1,50,000

G 75,000 3,50,000 Patents 30,000

Building 1,00,000

Profit & Loss A/c 25,000

4,35,000 4,35,000

M retired on the above date and it was agreed that :(i) Debtors of rs 2,000 will be written off as bad debts and a provision of 5%

on debtors for bad and doubtful debts will be maintained.(ii) Patents will be completely written off and stock, machinery and building

will be depreciated by 5%.(iii) An unrecorded creditor of rs10,000 will be taken into account.

(iv) N and G will share the future profits in the ratio of 2 : 3.(v) Goodwill of the firm on M’s retirement was valued at rs 3,00,000. Pass necessary Journal Entries for the above transactions in the books of the firm on M’s retirement.

17 AXN Ltd. invited applications for issuing 1,00,000 equity shares of rs 10 each at a premium of rs 6 per share. The amount was payable as follows : On Application rs 4 per share (including rs 2 premium). On Allotment rs 5 per share (including rs 2 premium). On First Call rs 4 per share (including rs 2 premium). On Second and Final Call – Balance Amount.The issue was fully subscribed. Kumar the holder of 400 shares did not pay the allotment money and Ravi the holder of 1,000 shares paid his entire share money along with allotment money. Kumar’s shares were forfeited immediately after allotment. Afterwards first call was made. Gupta a holder of 300 shares failed to pay the first call money and Gopal a holder of 600 shares paid the second call money also along with first call. Gupta’s shares were forfeited immediately after the first call. Second and final call was made afterwards. The whole amount due on second call was received. All the forfeited shares were re-issued at rs 9 per share fully paid up. Pass necessary Journal Entries for the above transactions in the books of the company.

ORXL Ltd. invited applications for issuing 1,00,000 equity shares of rs 10 each at par. The amount was payable as follows : On Application rs 3 per share. On Allotment rs 4 per share. On First and Final Call rs 3 per share.The issue was over-subscribed by three times. Applications for 20% shares wererejected and the money refunded. Allotment was made to the remaining applicants as follows :

Excess money received with applications was adjusted towards sums due onallotment and first and final call. All calls were made and were duly received except the final call by a shareholder belonging to Category I who has applied for 320 shares. His shares were forfeited. The forfeited shares were re-issued at rs 15 per share fully paid up. Pass necessary Journal entries for the above transactions in the book of XL Ltd. open calls in-arrears and calls in advance account whenever required.

8

PART B18 Short term investments are not considered while preparing cash flow statement.

Why ?1

19 Net increase in working capital other than cash and cash equivalents will increase,decrease or not change cash flow from operating activities. Give reason in support of your answer.

1

20 State the objectives of ‘Analysis of Financial Statements’. 4

Category No. of Shares Applied No. of Shares Allotted

I 1,60,000 80,000

II 80,000 20,000

21 The Quick ratio of a company is 0.8 : 1. State with reason whether the followingtransactions will increase, decrease or not change the quick ratio : (1) Purchase of loose tools rs 2,000. (2) Insurance premium paid in advance rs 500. (3) Sale of goods on credit rs 3,000. (4) Honoured a bills payable rs 5,000 on maturity.

4

22 Financial statements are prepared following the consistent accounting concepts,principles, procedures and also the legal environment in which the businessorganizations operate. These statements are the sources of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.From the above statement identify any two values that a company should observewhile preparing its financial statements. Also state under which major headings and sub-headings the following items will be presented in the balance sheet of a company as per Schedule III of the Companies Act 2013.General Reserves, short term loans and advances, Capital work in progress and design.

4

23 Following is the Balance Sheet of R.S. Ltd as at 31st March, 2016 :R.S. Ltd. Balance Sheet as at 31-3-2016

ParticularsNote

31-3-201631-3-2015

No. rs rs

I. Equity and Liabilities

(1) Shareholder’s Funds

(a) Share Capital 9,00,000 7,00,000

(b)Reserves and Surplus 1 2,50,000 1,00,000

(2) Non-current Liabilities

Long-term borrowings 2 4,50,000 3,50,000

(3) Current Liabilities

(a)Short-term borrowings 3 1,50,000 75,000

(b)Short-term provisions 4 2,00,000 1,25,000

6

Total 19,50,000 13,50,000

II. Assets

(1) Non-current Assets

(a) Fixed Assets

(i) Tangible 5 14,65,000 9,15,000

(ii) Intangible 6 1,00,000 1,50,000

(b) Non-current Investments 1,50,000 1,00,000

(2) Current Assets

(a) Current Investments 40,000 70,000

(b) Inventories 7 1,22,000 72,000

(c)Cash and Cash Equivalents 73,000 43,000

Total 19,50,000 13,50,000

Notes to Accounts :

Note 31-3-2016 31-3-2015

No.Particulars

rs rs

1. Reserves and Surplus (Surplus i.e. Balancein the Statement of Profit and Loss) 2,50,000 1,00,000

2,50,000 1,00,000

2.Long-term borrowings – 12% Debentures 4,50,000 3,50,000

4,50,000 3,50,000

3.Short-term borrowings – Bank

1,50,000 75,000

overdraft

1,50,000 75,000

4.Short-term provisions – Proposed Dividend 2,00,000 1,25,000

2,00,000 1,25,000

5. Tangible Assets

Machinery 16,75,000 10,55,000

Accumulated Depreciation (2,10,000) (1,40,000)

14,65,000 9,15,000

6. Intangible Assets

Goodwill 1,00,000 1,50,000

1,00,000 1,50,000

7. Inventories

Stock in trade 1,22,000 72,000

1,22,000 72,000

Additional Information :1) rs 1,00,000, 12% Debentures were issued on 31-3-2016.(2) During the year a piece of machinery costing rs 80,000, on which accumulated depreciation was rs 40,000, was sold at a loss of rs 10,000. Prepare a Cash Flow Statement.

ACCOUNTANCY (055)

OUTSIDE DELHI BOARD 2014 SET I

Qu PART A M

e1 X, Y and Z were partners sharing profits in the ratio of 1/2, 3/10, 1/5. X retired from

the firm. Calculate the gaining ratio of the remaining partners.1

2 State the rights acquired by a newly admitted partner. 13 Distinguish between ‘Dissolution of partnership’ and ‘Dissolution of partnership firm’

on the basis of Court’s intervention.1

4 Give the meaning of ‘Reconstitution of a partnership firm’. 15 D Ltd. invited applications for issuing 10,00,000 equity shares of 10rs each. The public

applied for 8,55,000 shares. Can the company proceed for the allotment of shares ? Give reason in support of your answer.

1

6 A Ltd. forfeited 100 equity shares of 10rs each issued at a premium of 20% for the non-payment of final call of 5rs including premium. State the maximum amount of discount at which these shares can be re-issued.

1

7 What is meant by issue of debentures as collateral security ? 18 Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 : 2. Their

capitals were 1,60,000rs and 1,00,000rs respectively. They admitted Somesh on 1st April, 2013 as a new partner for 1/5 share in the future profits. Somesh brought < 1,20,000 as his capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transactions on Somesh’sadmission.

3

9 Tata Ltd. issued 5,000, 10% Debentures of < 100 each on 1st April, 2012. The issue was fully subscribed. According to the terms of issue, interest on debentures is payable half-yearly on 30th September and 31st March and tax deducted at source is 10%.Pass the necessary journal entries related to the debenture interest for the half-yearly ending on 31st March, 2013 and transfer of interest on debentures to Statement of Profit and Loss.

3

10 Pass necessary journal entries in the following cases :(i) Sunrise Ltd. converted 500, 9% debentures of < 100 each issued at a discount

of 10% into equity shares of < 100 each issued at a premium of 25%.(ii) Britannia Ltd. redeemed 3,000, 12% debentures of < 100 each which were

issued at a discount of < 10 per debenture by converting them into equity shares of < 100 each, < 90 paid up.

3

11 Singh and Gupta decided to start a partnership firm to manufacture low cost jute bags as plastic bags were creating many environmental problems. They contributed capitals of < 1,00,000 and < 50,000 on 1st April, 2012 for this. Singh expressed his willingness to admit Shakti as a partner without capital, who is specially abled but a very creative and intelligent friend of his. Gupta agreed to this. The terms of partnership were as follows :

(i) Singh, Gupta and Shakti will share profits in the ratio of 2 : 2 : 1.(ii) Interest on capital will be provided @ 6% p.a.Due to shortage of capital, Singh contributed < 25,000 on 30th September, 2012 and Gupta contributed < 10,000 on 1st January, 2013 as additional capital. The profit of the firm for the year ended 31st March, 2013 was < 1,68,900.(a) Identify any two values which the firm wants to communicate to the society. (b) Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2013.

4

12 Monika, Sonika and Mansha were partners in a firm sharing profits in the ratio of 2 : 2 : 1 respectively. On 31st March, 2013 their Balance Sheet was as under :

Balance Sheet as on 31st March, 2013

Liabilities Amount Assets Amount

4

< <

Capitals : Fixed Assets 3,60,000

Monika 1,80,000 Stock 60,000

Sonika 1,50,000 Debtors 1,20,000

Mansha 90,000 4,20,000 Cash 2,70,000

Reserve Fund 1,50,000

Creditors 2,40,000

8,10,000 8,10,000

Sonika died on 30th June, 2013. It was agreed between her executors and the remaining partners that(a) Goodwill of the firm be valued at 3 years’ purchase of average profits for the last four years. The average profits were < 2,00,000.(b) Interest on capital be provided at 12% p.a.(c) Her share in the profits upto the date of death will be calculated on the basis of average profits for the last four years.Prepare Sonika’s Capital Account as on 30th June, 2013.

13 On 1st April, 2012, Vishwas Ltd. was formed with an authorised capital of < 10,00,000 divided into 1,00,000 equity shares of < 10 each. The company issued prospectus inviting applications for 90,000 equity shares. The company received applications for 85,000 equity shares. During the first year, < 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the first call of < 2 per share. Shyam’s shares were forfeited after the first call and later on 1,500 of the forfeited shares were re-issued at < 6 per share, < 8 called up.Show the following :(a) Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956.(b) Also prepare ‘Notes to Accounts’ for the same.

4

14 Pass necessary journal entries for the following transactions in the books of Gopal Ltd. :(i) Purchased furniture for < 2,50,000 from M/s Furniture Mart. The payment to M/s Furniture Mart was made by issuing equity shares of < 10 each at a premium of 25%.(ii) Purchased a running business from Aman Ltd. for a sum of < 15,00,000. The payment of < 12,00,000 was made by issue of fully paid equity shares of < 10 each and balance by a bank draft. The assets and liabilities consisted of the following : Plant < 3,50,000; Stock < 4,50,000; Land and Building < 6,00,000; Sundry Creditors < 1,00,000.

4

15 Seema, Tanuja and Tripti were partners in a firm trading in garments. They were sharing profits in the ratio of 5 : 3 : 2. Their capitals on 1st April, 2012 were < 3,00,000, < 4,00,000 and < 8,00,000 respectively. After the flood in Uttarakhand, all partners decided to help the flood victims personally. For this Seema withdrew < 20,000 from the firm on 15th September, 2012. Tanuja instead of withdrawing cash from the firm took garments amounting to < 24,000 from the firm and distributed those to the flood

6

victims. On the other hand, Tripti withdrew < 2,00,000 from her capital on 1st January, 2013 and provided a mobile medical van in the flood affected area. The partnership deed provides for charging interest on drawings @ 6% p.a. After the final accounts were prepared it was discovered that interest on drawings had not been charged. Give the necessary adjusting journal entry and show the working notes clearly. Also state any two values which the partners wanted to communicate to the society.

16 Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013 their Balance Sheet was as follows :

Balance Sheet of Hanif and Jubed as on 31st March, 2013

LiabilitiesAmount

AssetsAmount

< <

Creditors 1,50,000 Bank 2,00,000

Workmen’s Compensation Fund 3,00,000 Debtors 3,40,000

General Reserve 75,000 Stock 1,50,000

Hanif ’s Current Account 25,000 Furniture 4,60,000

Capitals : Machinery 8,20,000

Hanif 10,00,000Jubed’s Current

Account 80,000

Jubed 5,00,000 15,00,000

20,50,000 20,50,000

On the above date the firm was dissolved.(i) Debtors were realised at a discount of 5%. 50% of the stock was taken

over by Hanif at 10% less than the book value. Remaining stock was sold for < 65,000.

(ii) Furniture was taken over by Jubed for < 1,35,000. Machinery was sold as scrap for < 74,000.

(iii) Creditors were paid in full.(iv) Expenses on realisation < 8,000 were paid by Hanif.Prepare Realisation Account.

6

17 X Ltd. invited applications for issuing 75,000 equity shares of < 10 each at a premium of < 5 per share. The amount was payable as follows :On application and allotment – < 9 per share (including premium)On first and final call – the balance amount.

8

Applications for 3,00,000 shares were received. Applications for 2,00,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was duly received except on 1,500 shares applied by Ravi. His shares were forfeited. The forfeited shares were re-issued at a discount of < 4 per share.Pass necessary journal entries for the above transactions in the books of X Ltd.

ORY Ltd. invited applications for issuing 80,000 equity shares of < 10 each at a discount of 10%. The amount was payable as follows :On application and allotment – < 6 per shareOn first and final call – the balance amount.Applications for 2,00,000 shares were received. Applications for 40,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. All money was received except on 1,600 shares applied by Rohan. His shares were forfeited. The forfeited shares were re-issued at the maximum discount permissible under the law.Pass necessary journal entries for the above transactions in the books of Y Ltd.

18 Shikhar and Rohit were partners in a firm sharing profits in the ratio of 7 : 3. On 1st April, 2013 they admitted Kavi as a new partner for 1/4 share in profits of the firm. Kavibrought < 4,30,000 as his capital and < 25,000 for his share of goodwill premium. The Balance Sheet of Shikhar and Rohit as on 1st April, 2013 was as follows :

Balance Sheet of Shikhar and Rohit as on 1st April, 2013

LiabilitiesAmount

AssetsAmount

< <

Capitals : Land and Building 3,50,000

Shikhar 8,00,000 Machinery 4,50,000

Rohit 3,50,000 11,50,000Debtors 2,20,000

Less provision 20,000

2,00,000

General Reserve 1,00,000 Stock 3,50,000

Workmen’sCash 1,50,000

Compensation Fund 1,00,000

Creditors 1,50,000

15,00,000 15,00,000

It was agreed that

(i) the value of Land and Building will be appreciated by 20%.(ii) the value of Machinery will be depreciated by 10%.

8

(iii) the liabilities of Workmen’s Compensation Fund was determined at < 50,000.

(iv) capitals of Shikhar and Rohit will be adjusted on the basis of Kavi’s capital and actual cash to be brought in or to be paid off as the case may be.

Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm.

ORL, M and N were partners in a firm sharing profits in the ratio of 2 : 1 : 1. On 1st April, 2013 their Balance Sheet was as follows :

Balance Sheet of L, M and N as on 1st April, 2013

LiabilitiesAmount

AssetsAmount

< <

Capitals : Land 8,00,000

L 6,00,000 Building 6,00,000

M 4,80,000 Furniture 2,40,000

N 4,80,000 15,60,000Debtors 4,00,000

Less provision 20,000 3,80,000

General Reserve 4,40,000 Stock 4,40,000

Workmen’s

Cash 1,40,000Compensation Fund 3,60,000

Creditors 2,40,000

26,00,000 26,00,000

On the above date N retired. The following were agreed :(i) Goodwill of the firm was valued at < 6,00,000.(ii) Land was to be appreciated by 40% and Building was to be depreciated by <

1,00,000.(iii) Furniture was to be depreciated by < 30,000.(iv) The liabilities for Workmen’s Compensation Fund was determined at <

1,60,000.(v) Amount payable to N was transferred to his loan account.(vi) Capitals of L and M were to be adjusted in their new profit sharing ratio and for

this purpose current accounts of the partners will be opened.Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm.

PART B19 What is meant by ‘Cash Flow Statement’? 1

20 Why is separate disclosure of cash flow from investing activities important while preparing Cash Flow Statement?

1

21 State any one objective of financial statements analysis. 122 Under which sub-headings will the following items be placed in the Balance Sheet of a

company as per revised Schedule VI Part I of the Companies Act, 1956 :(i) Capital Reserves(ii) Bonds(iii) Loans repayable on demand(iv) Vehicles(v) Goodwill(vi) Loose tools

3

23 From the following Statement of Profit and Loss of Fenox Ltd. for the year ended 31st March, 2013, prepare a Comparative Statement of Profit and Loss :

ParticularsNote 2012 – 13 2011 – 12

No. < <

Revenue from operations 8,00,000 6,00,000

Other Incomes 1,00,000 50,000

Expenses 5,00,000 4,00,000

Rate of income tax was 40%.

4

24 (a) The quick ratio of a company is 1.5:1. State with reason which of the following transactions would (i) increase; (ii) decrease or (iii) not change the ratio :(1) Paid rent < 3,000 in advance.(2) Trade receivables included a debtor Shri Ashok who paid his entire amount due< 9,700.(b) From the following information compute ‘Proprietary Ratio’ :

<Long Term Borrowings 2,00,000

Long Term Provisions 1,00,000

Current Liabilities 50,000

Non-Current Assets 3,60,000

Current Assets 90,000

4

25 Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Simco Ltd. as at 31.3.2013 and 31.3.2012 :

Particulars Note 31.3.2013 31.3.2012

6

No. <

I – Equity and Liabilities :

5. Shareholder’s Funds :(a) Share Capital 2,00,000

(b) Reserves and Surplus 90,000

7. Non-Current Liabilities :

Long Term Borrowings 87,500

3. Current Liabilities :

Trade Payables 10,000

Total 3,87,500

II – Assets :

1. Non-Current Assets :

(a) Fixed Assets :

(i) Tangible Assets 1,87,500

(b) Non-Current Investments 1,05,500

2. Current Assets :

(a) Current Investments (Marketable) 12,500

(b) Inventories 4,000

(c) Trade Receivables 9,500

(d) Cash and Cash Equivalents 68,500

Total 3,87,500

Notes to Accounts Note 1

Particulars2013 2012

< <

Reserves and Surplus

90,000 75,000Surplus (Balance in Statement of Profit & Loss)

ACCOUNTANCY (055)

OUTESIDE DELHI BOARD 2015 SET I

Que

PART A Marks

1 In the absence of Partnership Deed, interest on loan of a partner is allowed :(i) at 8% per annum.(ii) at 6% per annum.(iii) no interest is allowed.(iv) at 12% per annum.

1

2 Geeta, Sunita and Anita were partners in a firm sharing profits in the ratio 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 Account of the firm was showing a debit balance of < 20,000 which was credited by the accountant of the firm to the capital accounts of Geeta, Sunita and Anita in their profit sharing ratio. Did the accountant give correct treatment ? Give reason in support of your answer.

1

3 On the death of a partner, his share in the profits of the firm till the date of his death is transferred to the :(i) Debit of Profit and Loss Account.(ii) Credit of Profit and Loss Account.(iii) Debit of Profit and Loss Suspense Account.(iv) Credit of Profit and Loss Suspense Account.

1

4 Anant, Gulab and Khushbu were partners in a firm sharing profits in the ratio of 5:3:2. From 1.4.2014, they decided to share the profits equally. For this purpose the goodwill of the firm was valued at < 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

5 Give the meaning of forfeiture of shares. 16 Nirman Ltd. issued 50,000 equity shares of < 10 each. The amount was payable as

follows :On application — < 3 per shareOn allotment — < 2 per shareOn first and final call — The balanceApplications for 45,000 shares were received and shares were allotted to all the applicants. Pooja, to whom 500 shares were allotted, paid her entire share money at the time of allotment, whereas Kundan did not pay the first and final call on his 300 shares. The amount received at the time of making first and final call was :

(i) < 2,25,000(ii) < 2,20,000(iii) < 2,21,000(iv) < 2,19,50

1

7 Guru Ltd. invited applications for issuing 5,00,000 equity shares of < 10 each at a premium of < 5 per share. Because of favourable market conditions the issue was over-subscribed and applications for 15,00,000 shares were received.Suggest the alternatives available to the Board of Directors for the allotment of shares.

3

8 On 1.4.2013, Brij and Nandan entered into partnership to construct toilets in government girls schools in the remote areas of Uttarakhand. They contributed capitals of < 10,00,000 and < 15,00,000 respectively. Their profit sharing ratio was 2 : 3 and interest allowed on capital as provided in the Partnership Deed was 12% per annum. During the year ended 31.3.2014, the firm earned a profit of< 2,00,000.Prepare Profit and Loss Appropriation Account of Brij and Nandan for the year ended 31.3.2014.

3

9 ‘Suvidha Ltd.’ is registered with an authorised capital of < 10,00,00,000 divided into 10,00,000 equity shares of < 100 each. The company issued 1,00,000 shares for public subscription. A shareholder holding 100 shares, failed to pay the final call of < 20 per share. His shares were forfeited. The forfeited shares were re-issued at < 90 per share as fully paid up.Present the ‘Share Capital’ in the Balance Sheet of the company as per Schedule VI Part I of the Companies Act, 1956. Also prepare ‘Notes to Accounts’.

3

10 ‘Good Blankets Ltd.’ are the manufacturers of woollen blankets. Blankets of the company are exported to many countries. The company decided to distribute blankets free of cost to five villages of Kashmir Valley destroyed by the recent floods. It also decided to employ 100 young persons from these villages in their newly established factory at Solan in Himachal Pradesh. To meet the requirements of funds for starting its new factory, the company issued 50,000 equity shares of < 10 each and 2,000 8% debentures of < 100 each to the vendors of machinery purchased for < 7,00,000.Pass necessary journal entries for the above transactions in the books of the company. Also identify any one value which the company wants to communicate to the society.

3

11 Arun, Varun and Karan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. On 31.3.2014, their Balance Sheet was as follows :

LiabilitiesAmount

AssetsAmount

< <

Creditors 17,000 Cash 8,000

Bills Payable 12,000 Debtors 13,000

Karan’s Loan 28,000 Bills Receivables 9,000

Capitals : Furniture 27,000

Arun 70,000 Machinery 1,25,000

Varun 68,000

1,38,000 Karan’s Capital 13,000

1,95,000 1,95,000

On 30.9.2014, Karan died. The Partnership Deed provided for the following to the executors of the deceased partner :

4

(a) His share in the goodwill of the firm calculated on the basis of three years’ purchase of the average profits of the last four years. The profits of the last four years were < 1,90,000; < 1,70,000; < 1,80,000 and < 1,60,000 respectively.(b) His share in the profits of the firm till the date of his death calculated on the basis of the average profits of the last four years.(c) Interest @ 8% p.a. on the credit balance, if any, in his Capital Account.(d) Interest on his loan @ 12% p.a.Prepare Karan’s Capital Account to be presented to his executors, assuming that his loan and interest on loan were transferred to his Capital Account.

12 Prem, Param and Priya were partners in a firm. Their fixed capitals were Prem< 2,00,000; Param< 3,00,000 and Priya< 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 Prem was doing more business than the outlets 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 < 2,00,000; < 3,50,000; < 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 On 1.1.2008, Uday and K§aushal entered into partnership with fixed capitals of < 7,00,000 and < 3,00,000 respectively. They were doing good business and were interested in its expansion but could not do the same because of lack of capital. Therefore, to have more capital, they admitted Govind as a new partner on 1.1.2010. Govind brought < 10,00,000 as capital and the new profit sharing ratio decided was 3 : 2 : 5. On 1.1.2012, another new partner Hari was admitted with a capital of < 8,00,000 for 1/10th share in the profits, which he acquired equally from Uday, Kaushal and Govind. On 1.4.2014 Govind died and his share was taken over by Uday and Hari equally.Calculate :

(i) The sacrificing ratio of Uday and Kaushal on Govind’s admission.(ii) New profit sharing ratio of Uday, Kaushal, Govind and Hari on Hari’s

admission.(iii) New profit sharing ratio of Uday, Kaushal and Hari on Govind’s death.

6

14 ‘Ananya Ltd.’ had an authorized capital of < 10,00,00,000 divided into 10,00,000 equity shares of < 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for the year ended 31.3.2007 was < 30. The management decided to export its products to African countries. To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directors :

(i) Issue 47,500 equity shares at a premium of < 100 per share.(ii) Obtain a long-term loan from bank which was available at 12% per

annum.(iii) Issue 9% debentures at a discount of 5%.

After evaluating these alternatives the company decided to issue 1,00,000, 9% debentures on 1.4.2008. The face value of each debenture was < 100. These debentures were redeemable in four instalments starting from the end of third year, which was as follows :

Year Amount<

6

III 10,00,000IV 20,00,000V 30,00,000VI 40,00,000

Prepare 9% debenture account from 1.4.2008 till all the debentures were redeemed.

15 Mala, Neela and Kala were partners sharing profits in the ratio of 3 : 2 : 1. On 1.3.2015 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partners’ Capital Accounts and Cash Account, but forgot to post few amounts in these accounts.You are required to complete these below given accounts by posting correct amounts.

Realisation Account

Dr. Cr.

ParticularsAmount

ParticularsAmount

< <

To Sundry Assets :

By Provision for bad1,000

debts

Machinery 10,000 By Sundry Creditors 15,000

Stock 21,000By Sheela’s Loan 13,000

Debtors 20,000By Repairs and

1,200Renewals Reserve

Prepaid Insurance 400 By Cash – Assets sold :

Investments 3,000

54,400 Machinery 8,000

To Mala’s Capital A/c13,000 Stock 14,000

– Sheela’s Loan

To Cash – Creditors paid 15,000

Debtors 16,000

38,000

By Mala’s Capital –

6

To Cash – Dishonoured bill 5,000 2,000

Investmentspaid

To Cash – Expenses

800 .......... ..........

88,200 88,200

Capital Accounts

Dr. Cr.

ParticularsMala Neela Kala

ParticularsMala Neela Kala

< < < < < <

.......... .......... .......... .......... .......... .......... .......... ..........

.......... .......... .......... ..........

To Cash 12,000 9,000 By Cash 1,000

23,000 15,000 3,000 23,000 15,000 3,000

Cash Account

Dr. Cr.

ParticularsAmount

ParticularsAmount

< <

To Balance b/d 2,800By Realisation A/c

15,000– Creditors paid

To Realisation A/c

38,000 By Dishonoured bill 5,000– Sale of assets

To Kala’s Capital A/c 1,000 .......... ..........

By Mala’s Capital A/c 12,000

By Neela’s Capital A/c 9,000

41,800 41,800

16 ‘BMY Ltd.’ invited applications for issuing 1,00,000 equity shares of < 10 each at a premium of < 10 per share. The amount was payable as follows :On application – < 10 per share (including < 5 premium) On allotment – The balanceThe issue was fully subscribed. A shareholder holding 300 shares paid the full share money with application. Another shareholder holding 200 shares failed to pay the allotment money. His shares were forfeited. Later on these shares were re-issued for < 4,000 as fully paid up. Pass necessary journal entries for the above transactions in the books of BMY Ltd.

8

17 Om, Ram and Shanti were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1st April, 2014 their Balance Sheet was as follows :

LiabilitiesAmount

AssetsAmount

< <

Capital Accounts :Land and Building 3,64,000

Om 3,58,000Plant and Machinery 2,95,000

Ram 3,00,000 Furniture 2,33,000

Shanti 2,62,000 9,20,000Bills Receivables 38,000

General Reserve 48,000 Sundry Debtors 90,000

Creditors 1,60,000 Stock 1,11,000

Bills Payable 90,000 Bank 87,000

12,18,000 12,18,000

On the above date Hanuman was admitted on the following terms :(i) He will bring < 1,00,000 for his capital and will get 1/10th share in the

8

profits.(ii) He will bring necessary cash for his share of goodwill premium. The

goodwill of the firm was valued at < 3,00,000.(iii) A liability of < 18,000 will be created against bills receivables

discounted(iv) The value of stock and furniture will be reduced by 20%.(v) The value of land and building will be increased by 10%.(vi) Capital accounts of the partners will be adjusted on the basis of

Hanuman’s capital in their profit sharing ratio by opening current accounts.

Prepare Revaluation Account and Partners’ Capital Accounts.OR

Xavier, Yusuf and Zaman were partners in a firm sharing profits in the ratio of 4:3:2. On 1.4.2014 their Balance Sheet was as follows :

LiabilitiesAmount

AssetsAmount

< <

Sundry Creditors 41,400 Cash at Bank 33,000

Capital Accounts :Sundry Debtors 30,450

Less : Provision for

Xavier 1,20,000Bad Debts 1,050

29,400

Yusuf 90,000Stock 48,000

Zaman 60,000 2,70,000

Plant and Machinery 51,000

Land and Building 1,50,000

3,11,400 3,11,400

Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1.4.2014, the terms of which were as follows :

(i) That land and building be appreciated by 10%.(ii) The provision for bad debts is no longer necessary.(iii) That stock be appreciated by 20%.(iv) That goodwill of the firm be fixed at < 54,000. Yusuf’s share of the

same be adjusted into Xavier’s and Zaman’s Capital Accounts, who are going to share future profits in the ratio of 2 : 1.

(v) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capitals of Xavier and Zaman will be in their profit sharing ratio.

Prepare Revaluation Account and Partners’ Capital Accounts.PART B

18 Which of the following transactions will result into flow of cash ?(i) Cash withdrawn from bank < 20,000.(ii) Issued < 20,000, 9% debentures for the vendors of machinery.(iii) Received < 19,000 from debtors.(iv) Deposited cheques of < 10,000 into bank.

1

19 The accountant of Manav Ltd. while preparing Cash Flow Statement added depreciation provided on fixed assets to net profit for calculating cash flow from operating activities. Was he correct in doing so ? Give reason.

1

20 Under which major headings and sub-headings will the following items be shown in the Balance Sheet of a company as per Schedule VI Part I of the Companies Act, 1956 :

(i) Net loss as shown by Statement of Profit and Loss.(ii) Capital redemption reserve.(iii) Bonds.(iv) Loans repayable on demand.(v) Unpaid dividend.(vi) Buildings.(vii) Trademarks.(viii) Raw materials.

4

21 The Current Ratio of a company is 2.1 : 1.2. State with reasons which of the following transactions will increase, decrease or not change the ratio :

(i) Redeemed 9% debentures of < 1,00,000 at a premium of 10%.(ii) Received from debtors < 17,000.(iii) Issued < 2,00,000 equity shares to the vendors of machinery.(iv) Accepted bills of exchange drawn by the creditors < 7,000.

4

22 The motto of ‘Pharma Ltd.’, a company engaged in the manufacturing of low-cost generic medicines, is ‘Healthy India’. Its management and employees are hardworking, honest and motivated. The net profit of the company doubled during the year ended 31.3.2014. Encouraged by its performance, the company decided to pay bonus to all employees at double the rate than last year.Following is the Comparative Statement of Profit and Loss of the company for the years ended 31.3.2013 and 31.3.2014.

Pharma Ltd.Comparative Statement of Profit and Loss

Note2012 – 13 2013 – 14

Absolute %

Particulars No. Change < Change< <

Revenue from

20,00,000 30,00,000 10,00,000 50

4

operations

Less : Employees

12,00,000 14,00,000 2,00,000 16.67benefit

expenses

Profit before tax 8,00,000 16,00,000 8,00,000 100

Tax at 25% rate 2,00,000 4,00,000 2,00,000 100

Profit after tax 6,00,000 12,00,000 6,00,000 100

(i) Calculate Net Profit Ratio for the years ending 31th March, 2013 and 2014.

(ii) Identify any two values which ‘Pharma Ltd.’ is trying to propagate.23 Following is the Balance Sheet of Solar Power Ltd. as at 31.3.2014 :

Solar Power Ltd.Balance Sheet

Particulars

Note 31.3.2014 31.3.2013

No. < <

I – Equity and Liabilities :

(iii) Shareholder’s Funds :(a) Share Capital 24,00,000 22,00,000

(b) Reserves and Surplus 1 6,00,000 4,00,000

2. Non-Current Liabilities :

Long-Term Borrowings 4,80,000 3,40,000

3. Current Liabilities :

(a) Trade Payables 3,58,000 4,08,000

(b) Short-Term Provisions 1,00,000 1,54,000

Total 39,38,000 35,02,000

6

II – Assets :1. Non-Current Assets :

(a) Fixed Assets :(i) Tangible 2 21,40,000 17,00,000

(ii) Intangible 3 80,000 2,24,000

2. Current Assets :

(a) Current Investments 4,80,000 3,00,000

(b) Inventories 2,58,000 2,42,000

(c) Trade Receivables 3,40,000 2,86,000

(d) Cash and Cash equivalents 6,40,000 7,50,000

Total 39,38,000 35,02,000

Notes to Accounts

As on As on

S.No. Particulars 31.3.2014 31.3.2013

< <

1. Reserves and Surplus

Surplus (balance in Statement of 6,00,000 4,00,000

Profit and Loss)

2. Tangible Assets25,40,000 20,00,000

Machinery(4,00,000) (3,00,000)

Less : Accumulated Depreciation

3. Intangible Assets80,000 2,24,000

Goodwill

Additional Information :During the year a piece of machinery costing < 48,000 on which accumulated depreciation was < 32,000 was sold for < 12,000.Prepare Cash Flow Statement.

ACCOUNTANCY (055)

OUTESIDE DELHI BOARD 2016 SET I

Que

PART A Marks

1 A group of 40 people wants to form a partnership firm. They want your advice regarding the maximum number of persons that can be there in a partnership firm and the name of the Act under whose provisions it is given.

1

2 P, Q and R were partners in a firm sharing profits in the ratio of

3:2:1. They admitted S as a new partner for 1/8th share in the

profits which he acquired 1/16th from P and 1/16th from Q.

Calculate new profit sharing ratio of P, Q, R and S.

1

3 On 28.2.2016 the first call of ` 2 per share became due on 50,000 equity shares alloted by Kumar Ltd. Komal a holder of 1000 shares did not pay the first call money. Kovil a holder of 750 shares paid the second and final call of ` 4 per share along with the first call.Pass the necessary journal entry for the amount received by opening calls - in - arrears and calls - in - advance account in the books of the company.

1

4 Distinguish between ‘Dissolution of partnership’ and ‘Dissolution of partnership firm’ on the basis of ‘Economic Relationship’.

1

5 State the provisions of Companies Act, 2013 for the creation of ‘Debenture Redemption Reserve’.

1

6 Tom and Harry were partners in a firm sharing profits in the ratio of 5:3. During the year ended 31.3.2015 Tom had withdrawn ` 40,000. Interest on his drawings amounted to ` 2,000.Pass necessary journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating.

1

7 On 2.3.2016 L and B Ltd. issued 635, 9% debentures of ` 500 each. Pass necessary journal entries for the issue of debentures in the following situations :

(a)When debentures were issued at 5% discount, redeemable at 10% premium.

(b)When debentures were issued at 12% premium, redeemable at 6% premium.

3

8 State any three circumstances other than (i) death of a partner, (ii) admission of a partner and (iii) retirement of a partner when need for valuation of goodwill of a firm may arise.

3

9 K Ltd. took over the assets of ` 15,00,000 and liabilities of ` 5,00,000 of P Ltd. for a purchase consideration of ` 13,68,500. ` 25,500 were paid by issuing a promissory note in favour of P Ltd. payable after two months and the balance was paid by issue of equity shares of ` 100 each at a premium of 25%.Pass necessary journal entries for the above transactions in the books of K Ltd.

3

10 To provide employment to the youth and to develop Baramula district of Jammu and Kashmir, Jyoti Power Ltd. decided to setup a power plant. For raising funds the company decided to issue 8,50,000 equity shares of ` 10 each at a premium of ` 3 per share. The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were alloted to the remaining applicants on pro - rata basis.Pass necessary journal entries for the above transactions in the books of the company and identify any two values which the company wants to propagate.

3

11 Vikas and Vivek were partners in a firm sharing profits in the ratio of 3 : 2.On 1.4.2014 they admitted Vandana as a new partner for 1/8th share in the profits with a guaranteed profit of ` 1,50,000. The new profit sharing ratio between Vivek and Vikas will remain the same but they decided to bear any deficiency on account of guarantee to Vandana in the ratio 2 : 3. The profit of the firm for the year ended 31.3.2015 was ` 9,00,000.Prepare Profit and Loss Appropriation Account of Vikas, Vivek and Vandana for the year ended 31.3.2015.

4

12 Manav, Nath and Narayan were partners in a firm sharing profits in the ratio of 1 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2015 Nath died. On that date his capital account showed a debit balance of ` 5,000. There was a debit balance of ` 30,000 in the profit and loss account. The goodwill of the firm was valued at ` 3,80,000. Nath’s share of profit in the year of his death was

4

to be calculated on the basis of average profit of last 5 years, which was ` 90,000.Pass necessary journal entries in the books of the firm on Nath’s death.

13 Lal and Pal were partners in a firm sharing profits in the ratio of 3:7. On 1.4.2015 their firm was dissolved. After transferring assets (other than cash) and outsider’s liabilities to realisation account, you are given the following information :

(a) A creditor of ` 3,60,000 accepted machinery valued at ` 5,00,000 and paid to the firm ` 1,40,000.

(b) A second creditor for ` 50,000 accepted stock at ` 45,000 in full settlement of his claim.

(c) A third creditor amounting to ` 90,000 accepted ` 45,000 in cash and investments worth ` 43,000 in full settlement of his claim.

(d) Loss on dissolution was ` 15,000.Pass necessary journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.

6

14 R, S and T were partners in a firm sharing profits in the ratio of 1 : 2 : 3. Their Balance Sheet as on 31.3.2015 was as follows :

Balance Sheet of R, S and T as on 31.3.2015

LiabilitiesAmount

AssetsAmount

C C

Creditors 50,000 Land 50,000

Bills Payable 20,000 Building 50,000

General Reserve 30,000 Plant 1,00,000

Capitals : Stock 40,000

R 1,00,000 Debtors 30,000

S 50,000 Bank 5,000

T 25,0001,75,000

2,75,000 2,75,000

6

R, S and T decided to share the profits equally with effect from 1.4.2015. For this it was agreed that :(a) Goodwill of the firm be valued at ` 1,50,000.(b) Land be revalued at ` 80,000 and building be depreciated by 6%.(c) Creditors of ` 6,000 were not likely to be claimed and hence be written off.Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the reconstituted firm.

15 On 1.4.2013 JJJ Ltd had ` 1,00,00,000, 10% Debentures of `100 each outstanding.(i)On 1.4.2014 the company purchased in the open market 30,000 of its own debentures for ` 99 each and cancelled the same immediately.(ii) On 28.2.2015 the company redeemed at par debentures of ` 50,00,000 by draw of a lot.(iii) On 31.1.2016 the remaining debentures were purchased for immediate cancellation for ` 19,99,000.Ignoring interest on debentures and debenture redemption reserve, pass necessary journal entries for the above transactions in the books of the company.

6

16 SK Ltd invited applications for issuing 3,20,000 equity shares of ` 10 each at a premium of ` 5 per share. The amount was payable as follows :On application - ` 3 per share (including premium ` 1 per share)On allotment - ` 5 per share (including premium ` 2 per share)On First and Final Call - Balance.

Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were alloted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jeevan holding 800 shares failed to pay the allotment money and his shares were immediately forfeited. Afterwards final call was made, Ganesh who had applied for 2,700 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 1,500 shares were re-issued at ` 8 per share fully paid up. The re-issued shares included all the forfeited shares of

8

Jeevan.

Pass necessary journal entries for the above transactions in the books of the company.

ORBBG Ltd. had issued 1,00,000 equity shares of ` 10 each at a premium of ` 3 per share payable with application money. While passing the journal entries related to the issue, some blanks are left. You are required to complete these blanks.

Books of BBG Ltd.Journal

Debit Credit

Date Particulars L.F. Amount Amount

C C

2015

Jan. 05 … …… Dr.

…………

To ……… … … … …

(Application money received for 1,40,000

shares @ C 6 per share including premium)

Jan. 17 Equity Share Application A/c … Dr.

…………

To ……… … … … …

To ……… … … … …

To ……… … … … …

To ……… … … … …

(Application money transferred to share capital account, securities premium account, refunded for 20,000 shares for rejected applications and balance adjusted towards money due on allotment as shares were alloted on pro - rata basis)

Jan. 17

… … … … … … … .… Dr.

…………

To ……… … … … …

(Allotment money due @ C 4 per share)

Feb. 20

… … … … … … … .… Dr.

…………

To ……… … … … …

(Balance allotment amount received)

Debit Credit

Date Particulars L.F. Amount Amount

C C

April 1 … … … … … … … .… Dr.…………

To ……… … … … …

(First and Final Call money due)

April 20 … … … … … … … .… Dr.

…………

Calls-in-arrears A/c… Dr.3,000

To ……… … … … …

(First and Final Call money received)

May 20 … … … … … … … .… Dr.

…………

To ……… … … … …

To ……… … … … …

(Forfeited the shares on which First and Final

Call was not received)

June 15 … … … … … … … .… Dr.

…………

… … … … … … … .… Dr.3,000

To ……… … … … …

(Forfeited shares re-issued)

… … … … … … … … … … … .… Dr.

…………

To ……… … … … …

(… … … … … … … … … … …… …… …… ………

…………………………… )

17 L, M and N were partners in a firm sharing profits in the ratio of 3:2:1.Their Balance Sheet on 31.3.2015 was as follows :

Balance Sheet of L, M and N as on 31.3.2015

LiabilitiesAmount

AssetsAmount

C C

Creditors 1,68,000 Bank 34,000

General Reserve 42,000 Debtors 46,000

Capitals : Stock 2,20,000

L 1,20,000 Investments 60,000

M 80,000 Furniture 20,000

N40,000

2,40,000 Machinery 70,000

4,50,000 4,50,000

On the above date O was admitted as a new partner and it was decided that :(i)The new profit sharing ratio between L, M, N and O will be 2:2:1:1.(ii)Goodwill of the firm was valued at ` 1,80,000 and O brought his share of goodwill premium in cash.(iii)The market value of investments was ` 36,000.(iv)Machinery will be reduced to ` 58,000.(v)A creditor of ` 6,000 was not likely to claim the amount and hence was to be written off.(vi)O will bring proportionate capital so as to give him 1/6 th share in the profits of the firm.Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the New Firm.

ORJ, H and K were partners in a firm sharing profits in the ratio of 5:3:2. On 31.3.2015 their Balance Sheet was as follows :

Balance Sheet of J, H and K as on 31.3.2015

LiabilitiesAmount

AssetsAmount

C C

8

Creditors 42,000 Land and Building 1,24,000

Investment - 20,000 Motor Vans 40,000

Fluctuation Fund

Profit and Loss 80,000 Investments 38,000

Account

Capitals : Machinery 24,000

Stock 30,000

J 1,00,000 Debtors 80,000

H 80,000 Less : Provision 6,000

K40,000

2,20,000 74,000

Cash32,000

3,62,000 3,62,000

On the above date H retired and J and K agreed to continue the business on the following terms :(i)Goodwill of the firm was valued at ` 1,02,000.(ii)There was a claim of ` 8,000 for workmen’s compensation.(iii)Provision for bad debts was to be reduced by ` 2,000.(iv)H will be paid ` 14,000 in cash and the balance will be transferred in his loan account which will be paid in four equal yearly instalments together with interest @ 10% p.a.(v)The new profit sharing ratio between J and K will be 3 : 2 and their capitals will be in their new profit sharing ratio. The capital adjustments will be done by opening current accounts.Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm.PART B

18 Give the meaning of ‘Cash Flow Statement’. 119 ‘An enterprise may hold securities and loans for dealing or

trading purpose in which case they are similar to inventory acquired specifically for resale’. Is the statement correct ? Cash Flows from such activities will be classified under

1

which type of activity while preparing Cash Flow Statement ?

20 (a)One of the objectives of ‘Financial Statement Analysis is to judge the ability of the firm to repay its debt and assessing the short term as well as the long term liquidity position of the firm.’ State two more objectives of this analysis.(b)List any two items that are presented under the head ‘other current liabilities’ and any two items that are presented under the head ‘other current assets’ as per schedule III of the Companies Act, 2013.

4

21 (a)What is meant by ‘Activity Ratios’ ?(b)From the following information calculate inventory turnover ratio; Revenue from operations ` 16,00,000; Average Inventory `2,20,000; Gross Loss Ratio 5%.

4

22 Following is the Statement of Profit and Loss of Moon India Ltd. for the year ended 31st March 2015.

ParticularsNote 31.3.2015 31.3.2014

No. C C

Revenue from

operations 50,00,000 40,00,000

Other Incomes2,00,000 10,00,000

Employee benefit 60% of total 50% of total

expenses Revenue Revenue

Other Expenses 10% of employee 20% of employee

benefit expenses benefit expenses

Tax Rate50% 40%

The motto of Moon India Ltd. is to produce and distribute green energy in the backward areas of India. It has also taken up a project of giving vocational training to the girls belonging to the backward areas of Rajasthan. You are required to prepare a comparative statement of Profit and Loss of Moon India Ltd. from the given statement of Profit and Loss and also identify any two values that the company wishes to convey to the society.

4

23 Following was the Balance Sheet of M.M. Ltd at on 6

31.3.2015.M.M. Ltd.

Balance Sheet as at 31.3.2015

ParticularsNote 31.3.2015 31.3.2014

No. C C

I. Equity and Liabilities

(1) Shareholder's Funds

(a) Share Capital5,00,000 4,00,000

(b) Reserves and Surplus1

2,00,000 (50,000)

(2) Non-Current Liabilities

Long- term borrowings 2 4,50,000 5,00,000

(3) Current Liabilities

(a) short-term borrowings3

1,50,000 50,000

(b) short-term provisions4

70,000 90,000

Total13,70,000 9,90,000

II. Assets

(1) Non-Current Assets

(a) Fixed Assets

(i) Tangible 5 10,03,000 7,20,000

(ii) Intangible 6 20,000 30,000

(b) Non-Current Investments 1,00,000 75,000

(2) Current Assets

(a) Current Investments 7 50,000 60,000

(b) Inventories1,07,000 45,000

(c) Cash and Cash Equivalents 90,000 60,000

Total13,70,000 9,90,000

Notes To AccountsNote

Particulars

31.3.2015 31.3.2014

No. C C

(1) Reserves and Surplus (Surplus

i.e. Balance in statement of Profit

and Loss)

2,00,000 (50,000)

2,00,000 (50,000)

(2) Long - term borrowings 12%

Debentures4,50,000 5,00,000

4,50,000 5,00,000

(3) Short - term borrowings

Bank overdraft1,50,000 50,000

1,50,000 50,000

(4) Short - term Provisions Provision

for tax70,000 90,000

70,000 90,000

(5) Tangible Assets

Machinery12,03,000 8,21,000

Accumulated Depreciation(2,00,000) (1,01,000)

10,03,000 7,20,000

(6) Intangible Assets

Goodwill 20,000 30,000

20,000 30,000

(7) Inventories

Stock in trade1,07,000 45,000

1,07,000 45,000

Additional Information :(i)12% Debentures were redeemed on 31.3.2015.(ii)Tax ` 70,000 was paid during the year Prepare Cash Flow Statement.

ACCOUNTANCY (055)

OUTESIDE DELHI BOARD 2017 SET I

Que

PART A Marks

1 Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance.

1

2 A and B were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted C as a new partner. The new profit sharing ratio between A, B and C was 3 : 2 : 3. A surrendered 1/5thof his share in favour of C. Calculate B’s sacrifice.

1

3 P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were < 2,00,000 and < 3,00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital. Pass necessary adjustment entry to rectify the error.

1

4 X Ltd. invited applications for issuing 500, 12% debentures of < 100 each at a discount of 5%. These debentures were redeemable after three years at par. Applications for 600 debentures were received. Pro-rata allotment was made to all the applicants.Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable with application.

1

5 Z Ltd. forfeited 1,000 equity shares of < 10 each for the non-payment of the first call of < 2 per share. The final call of < 3 per share was yet to be made.Calculate the maximum amount of discount at which these shares can be reissued.

1

6 Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any two categories of individuals other than minors who cannot be admitted by them.

1

7 BPL Ltd. converted 500, 9% debentures of < 100 each issued at a discount of 6% into equity shares of < 100 each issued at a premium of < 25 per share. Discount on issue of 9% debentures has not yet been written off. Showing your working notes clearly, pass necessary journal entries for conversion of 9% debentures into equity shares.

3

8 Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of 3 : 2 : 2 : 1. On 1.2.2017, Guru retired and the new profit sharing ratio decided

3

between Kavi, Ravi and Kumar was 3 : 1 : 1. On Guru’s retirement the goodwill of the firm was valued at < 3,60,000. Showing your working notes clearly, pass necessary journal entry in the books of the firm for the treatment of goodwill on Guru’s retirement.

9 Disha Ltd. purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows :(i) By issuing 10,000, equity shares of < 10 each at a premium of 10%.(ii) By issuing 200, 9% debentures of < 100 each at a discount of 10%.(iii) Balance by accepting a bill of exchange of < 50,000 payable after one

month.Pass necessary journal entries in the books of Disha Ltd. for the purchase of machinery and making payment to Nisha Ltd.

3

10 Ganesh Ltd. is registered with an authorised capital of < 10,00,00,000 divided into equity shares of < 10 each. Subscribed and fully paid up capital of the company was < 6,00,00,000. For providing employment to the local youth and for the development of the tribal areas of Arunachal Pradesh the company decided to set up a hydro power plant there. The company also decided to open skill development centres in Itanagar, Pasighat and Tawang. To meet its new financial requirements, the company decided to issue 1,00,000 equity shares of < 10 each and 1,00,000, 9% debentures of < 100 each. The debentures were redeemable after five years at par. The issue of shares and debentures was fully subscribed. A shareholder holding 2,000 shares failed to pay the final call of < 2 per share.Show the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also identify any two values that the company wishes to propagate.

3

11 Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were < 4,00,000 and < 6,00,000 respectively. On 1.1.2016, Tina was admitted as a new partner for 4 1 th share in the profits. Tina acquired her share of profit from Neha. Tina brought < 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina’s admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina’s admission considering that Tina did not bring her share of goodwill premium in cash.

4

12 Ashok, Babu and Chetan were partners in a firm sharing profits in the ratio of 4:3:3. The firm closes its books on 31st March every year. On 31st December, 2016 Ashok died. The partnership deed provided that on the death of a partner his executors will be entitled for the following :

(i) Balance in his capital account. On 1.4.2016, there was a balance of < 90,000 in Ashok’s Capital Account.

(ii) Interest on capital @ 12% per annum(iii) His share in the profits of the firm in the year of his death will be

calculated on the basis of rate of net profit on sales of the previous year, which was 25%. The sales of the firm till 31st December, 2016 were < 4,00,000.

(iv) His share in the goodwill of the firm. The goodwill of the firm on Ashok’s death was valued at < 4,50,000.

The partnership deed also provided for the following deductions from the amount payable to the executor of the deceased partner :(i) His drawings in the year of his death. Ashok’s drawings till 31.12.2016

were < 15,000.(ii) Interest on drawings @ 12% per annum which was calculated as <

4

1,500.The accountant of the firm prepared Ashok’s Capital Account to be presented to the executor of Ashok but in a hurry he left it incomplete. Ashok’s Capital Account as prepared by the firm’s accountant is given below :

Ashok’s Capital Account

Dr. Cr.

Date ParticularsAmount

Date ParticularsAmount

< <

2016 2016

Dec 31 .......... 15,000 April 1 .......... 90,000

Dec 31 .......... .......... Dec 31 .......... 8,100

Dec 31 .......... .......... Dec 31 .......... 40,000

Dec 31 .......... 90,000

Dec 31 .......... 90,000

3,18,100 3,18,100

You are required to complete Ashok’s Capital Account.

13 A, B, C and D were partners in a firm sharing profits in the ratio of 3 : 2 : 3 : 2. On 1.4.2016, their Balance Sheet was as follows :

Balance Sheet of A, B, C and D as on 1.4.2016

LiabilitiesAmount

AssetsAmount

< <

Capitals : Fixed Assets 8,25,000

A 2,00,000Current Assets 3,00,000

B 2,50,000

C 2,50,000

D 3,10,000

10,10,000

Sundry Creditors 90,000

Workmen Compensation

25,000

6

Reserve

11,25,000 11,25,000

From the above date the partners decided to share the future profits in the ratio of 4 : 3 : 2 : 1. For this purpose the goodwill of the firm was valued at < 2,70,000. It was also considered that :

(i) The claim against Workmen Compensation Reserve has been estimated at < 30,000 and fixed assets will be depreciated by < 25,000.

(ii) Adjust the capitals of the partners according to the new profit sharing ratio by opening Current Accounts of the partners.

(iii) Prepare Revaluation Account, Partners’ Capital Account and the Balance Sheet of the reconstituted firm.

14 On 1.4.2015, J.K. Ltd. issued 8,000, 9% debentures of < 1,000 each at a discount of 6%, redeemable at a premium of 5% after three years. The company closes its books on 31st March every year. Interest on 9% debentures is payable on 30th September and 31st March every year. The rate of tax deducted at source is 10%. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31.3.2016.

6

15 Pass necessary journal entries on the dissolution of a partnership firm in the following cases :

(i) Dissolution expenses were < 800.(ii) Dissolution expenses < 800 were paid by Prabhu, a partner.(iii) Geeta, a partner, was appointed to look after the dissolution work, for

which she was allowed a remuneration of < 10,000. Geeta agreed to bear the dissolution expenses. Actual dissolution expenses < 9,500 were paid by Geeta.

(iv) Janki, a partner, agreed to look after the dissolution work for a commission of < 5,000. Janki agreed to bear the dissolution expenses. Actual dissolution expenses < 5,500 were paid by Mohan, another partner, on behalf of Janki.

(v) A partner, Kavita, agreed to look after the dissolution process for a commission of < 9,000. She also agreed to bear the dissolution expenses. Kavita took over furniture of < 9,000 for her commission. Furniture had already been transferred to realisation account.

(vi) A debtor, Ravinder, for < 19,000 agreed to pay the dissolution expenses which were < 18,000 in full settlement of his debt.

6

16 C and D are partners in a firm sharing profits in the ratio of 4 : 1. On 31.3.2016, their Balance Sheet was as follows :

Balance Sheet of C and D as on 31.3.2016

LiabilitiesAmount

AssetsAmount

< <

Sundry Creditors 40,000 Cash 24,000

8

Provision for Bad Debts 4,000 Debtors 36,000

Outstanding Salary 6,000 Stock 40,000

General Reserve 10,000 Furniture 80,000

Capitals :Plant and

Machinery 80,000

C 1,20,000

D 80,000 2,00,000

2,60,000 2,60,000

On the above date, E was admitted for 1/4th share in the profits on the following terms :

(i) E will bring < 1,00,000 as his capital and < 20,000 for his share of goodwill premium, half of which will be withdrawn by C and D.

(ii) Debtors < 2,000 will be written off as bad debts and a provision of 4% will be created on debtors for bad and doubtful debts.

(iii) Stock will be reduced by < 2,000, furniture will be depreciated by < 4,000 and 10% depreciation will be charged on plant and machinery.

(iv) Investments of < 7,000 not shown in the Balance Sheet will be taken into account.

(v) There was an outstanding repairs bill of < 2,300 which will be recorded in the books.

Pass necessary journal entries for the above transactions in the books of the firm on E’s admission.

ORSameer, Yasmin and Saloni were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 31.3.2016, their Balance Sheet was as follows :

Balance Sheet of Sameer, Yasmin and Saloni as on 31.3.2016

LiabilitiesAmount

AssetsAmount

< <

Creditors 1,10,000 Cash 80,000

General Reserve 60,000 Debtors 90,000

Capitals :Less : Provision 10,000 80,000

Sameer 3,00,000 Stock 1,00,000

Yasmin 2,50,000 Machinery 3,00,000

Saloni 1,50,000 7,00,000 Building 2,00,000

Patents 60,000

Profit and Loss Account 50,000

8,70,000 8,70,000

On the above date, Sameer retired and it was agreed that :(i) Debtors of < 4,000 will be written off as bad debts and a provision of

5% on debtors for bad and doubtful debts will be maintained.(ii) An unrecorded creditor of < 20,000 will be recorded.(iii) Patents will be completely written off and 5% depreciation will be

charged on stock, machinery and building.(iv) Yasmin and Saloni will share future profits in the ratio of 3 : 2.(v) Goodwill of the firm on Sameer’s retirement was valued at < 5,40,000.Pass necessary journal entries for the above transactions in the books of the firm on Sameer’s retirement.

17 VXN Ltd. invited applications for issuing 50,000 equity shares of < 10 each at a premium of < 8 per share. The amount was payable as follows :On Application : < 4 per share (including < 2 premium) On Allotment : < 6 per share (including < 3 premium)On First Call : < 5 per share (including < 1 premium) On Second and Final Call : Balance AmountThe issue was fully subscribed. Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. Gopal’s shares were immediately forfeited after allotment. Afterwards, the first call was made. Krishna, a holder of 100 shares, failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call. Krishna’s shares were forfeited immediately after the first call. Second and final call was made afterwards and was duly received. All the forfeited shares were reissued at < 9 per share fully paid up. Pass necessary journal entries for the above transactions in the books of the company.

ORJJK Ltd. invited applications for issuing 50,000 equity shares of < 10 each at par. The amount was payable as follows :

CategoryNo. of Shares

AppliedNo. of Shares

Allotted

I 80,000 40,000

II 25,000 10,000

Excess money paid by the applicants who were allotted shares was adjusted towards the sums due on allotment.Deepak, a shareholder belonging to Category I, who had applied for 1,000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju were reissued at < 11 per share fully paid up.Pass necessary journal entries for the above transactions in the books of the

8

company.PART B

18 Normally, what should be the maturity period for a short-term investment from the date of its acquisition to be qualified as cash equivalents ?

1

19 State the primary objective of preparing a cash flow statement. 120 What is meant by ‘Analysis of Financial Statements’ ? State any two objectives of

such an analysis.4

21 The proprietary ratio of M. Ltd. is 0·80 : 1.State with reasons whether the following transactions will increase, decrease or not change the proprietary ratio :

(i) Obtained a loan from bank < 2,00,000 payable after five years.(ii) Purchased machinery for cash < 75,000.(iii) Redeemed 5% redeemable preference shares < 1,00,000.(iv) Issued equity shares to the vendors of machinery purchased for <

4,00,000.

4

22 Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organisations operate. These statements are the sources of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.From the above statement identify any two values that a company should observe while preparing its financial statements. Also, state under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013.

(i) Capital Reserve(ii) Calls-in-Advance(iii) Loose Tools(iv) Bank Overdraft

4

23 From the following Balance Sheet of SRS Ltd. and the additional information as on 31.3.2016, prepare a Cash Flow Statement :

Balance Sheet of SRS Ltd. as on 31.3.2016

Particulars

Note 31.3.2016 31.3.2015

No. < <

I – Equity and Liabilities :

1. Shareholder’s Funds :

(a) Share Capital 4,50,000 3,50,000

(b) Reserves and Surplus 1 1,25,000 50,000

3. Non-Current Liabilities :

Long-term Borrowings 2 2,25,000 1,75,000

4. Current Liabilities :

6

(a) Short-term Borrowings 3 75,000 37,500

(b) Short-term Provisions 4 1,00,000 62,500

Total 9,75,000 6,75,000

6. – Assets :

Non-Current Assets :

Fixed Assets :

(i) Tangible 5 7,32,500 4,52,500

(ii) Intangible 6 50,000 75,000

(b) Non-Current Investments 75,000 50,000

2. Current Assets :

(a) Current Investments 20,000 35,000

(b) Inventories 7 61,000 36,000

(c) Cash and Cash Equivalents 36,500 26,500

Total 9,75,000 6,75,000

Notes to AccountsNote

Particulars

31.3.2016 31.3.2015

No. < <

1. Reserves and Surplus

(Surplus i.e., Balance in the1,25,000 50,000Statement of Profit and

Loss)

1,25,000 50,000

2. Long-term Borrowings

12% Debentures 2,25,000 1,75,000

2,25,000 1,75,000

3. Short-term Borrowings

Bank Overdraft 75,000 37,500

75,000 37,500

4. Short-term Provisions

Proposed Dividend 1,00,000 62,500

1,00,000 62,500

5. Tangible Assets

Machinery 8,37,500 5,22,500

Accumulated Depreciation (1,05,000) (70,000)

7,32,500 4,52,500

6. Intangible Assets

Goodwill 50,000 75,000

50,000 75,000

7. Inventories

Stock in Trade 61,000 36,000

61,000 36,000

Additional Information :(i) < 50,000, 12% debentures were issued on 31.3.2016.(iii) During the year a piece of machinery costing < 40,000, on which

accumulated depreciation was < 20,000, was sold at a loss of < 5,000.

BUSINESS STUDIES:

BUSINESS STUDIES (054)

OUTSIDE DELHI BOARD 2014 SET I

Que

PART A Marks

1 What is meant by ‘Management of Work’ ? 12 What is determined by ‘Time-Study’ ? 13 What is included in ‘Legal Environment’ of Business ? State. 14 Give the meaning of ‘Method’ as a type of plan. 15 Give the meaning of ‘Responsibility’ as an element of delegation 16 Define ‘organizing’ as a function of management. 17 How are employees motivated to improve their performance when the

organization uses internal sources of recruitment ? State.1

8 ‘Providing for social security and welfare of employees’ is one of the specialised 1

activities performed by Human Resource Management. Mention any two other specialised activities of Human Resource Management.

9 What is meant by ‘Decoding’ as an element of communication ? 110 Give any two characteristics of ‘Organizational Climate’ that influence the

behaviour of individuals and act as a non-financial incentive.1

11 What is meant by ‘Financial Risk’ ? 112 State the objective of ‘Financial Management’. 113 Huma is working in a company on a permanent basis. As per the job agreement

she had to work for 8 hours a day and was free to work overtime. Huma worked overtime, due to which she fell ill and had to take leave from her work. No one showed concern and enquired about her health. She realised that she was fulfilling only some of her needs while some other needs still remained to be fulfilled.

(i) By quoting the lines from the above para, identify the needs of Huma which she is able to fulfil.

(ii) Also explain two other needs of Huma followed by the above needs, which still remained to be satisfied.

3

14 Explain any three functions performed by a supervisor that are vital to any organization.

3

15 ‘Stock Exchange not only contributes to the economic growth, but performs many other functions.’ Explain any three such functions.

3

16 ABC Crackers Ltd., a fire-cracker manufacturing company launched some new products on the eve of Diwali in the market, which attracted many buyers. To meet the increased demand the company employed people from nearby villages where there is a lot of unemployment. Because of the good behaviour of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumers as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.

(a) Identify and explain the product-related decision because of which consumers preferred the products of ABC Crackers Ltd.

(b) Also identify any two values which ABC Crackers Ltd. wanted to communicate to the society.

3

17 State any six reliefs available to a consumer under the Consumer Protection Act, 1986.

3

18 Explain the following Rights of Consumers :(i) Right to Consumer Education(ii) Right to Choose

3

19 Mega 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

20 Explain the concept of ‘Business Environment’ and any three features of it. 421 State any four advantages of external sources of recruitment. 422 Give the meaning of ‘Investment’ and ‘Financing’ decisions of financial

management.4

23 State any five features of planning. 524 Differentiate between ‘Capital Market’ and ‘Money Market’ on the basis of the

following :(i) Meaning(ii) Liquidity(iii) Safety(iv) Expected Return(v) Duration

5

25 What is meant by ‘Personal Selling’ ? Explain any three qualities of a good salesman.

5

26 Principles of Taylor and Fayol are mutually complementary. One believed that the management should share the gains with the workers, while the other suggested that employees compensation should depend on the earning capacity of the company and should give them a reasonable standard of living.Identify and explain the principles of Fayol and Taylor referred to in the above para.

5

27 Differentiate between formal and informal organization on the basis of the following :

(i) Meaning(ii) Origin(iii) Authority(iv) Behaviour(v) Flow of communication(vi) Nature

ORWith the help of any four points, explain the importance of ‘Decentralization’ in an organization.

6

28 Explain the relationship between planning and controlling.OR

Explain the various steps in the process of controlling.

6

29 Explain the following as factors affecting the requirements of working capital :(i) Nature of business(ii) Scale of operations(iii) Seasonal factors(iv) Production cycle

ORExplain the following as factors affecting the choice of capital structure :(i) Cash flow position(ii) Cost of equity(iii) Floatation costs(iv) Stock-market conditions

6

30 Explain the following functions of marketing :(i) Product designing and development(ii) Standardization and Grading(iii) Customer Support Services(iv) Pricing of products

OR

6

‘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.

BUSINESS STUDIES (054)

OUTSIDE DELHI BOARD 2015 SET I

Que

PART A Marks

1 What is meant by ‘Business Environment’ ? 12 Explain, how management helps in the development of society. 13 Give the meaning of ‘Objectives’ as a type of plan. 14 ‘Himalaya Ltd.’, is engaged in manufacturing of washing machines. The target of

the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure.Identify the type of organisation structure described above.

1

5 How does ‘cost of equity’ affect the choice of capital structure of a company ? Explain.

1

6 ‘Bharat Express’ specialises in Courier Services. Its ‘wide range of express package and parcel services’ help business firms to make sure that the goods are made available to the customers at the right place and at the right time.State with reason, whether the working capital requirements of ‘Bharat Express’ will be high or low.

1

7 ‘Maruti Vega Ltd.’ entered into the market with coloured television and have now introduced products like audio systems, air-conditioners washing machines, etc. The company is not only offering the products but also handling complaints and offering after-sales services.Identify the element of marketing-mix discussed here.

1

8 Himanshu purchased a new car from ‘Galaxy Motors’ for rs 25 lakhs. He was offered free insurance for the first year and three free servicing to be availed after the car had covered 5,000 km, 10,000 km and 15,000 km respectively. When Himanshu took the car for the first free servicing, he was told that the car was not new and first service had already been availed on this car. He felt cheated and filed a complaint in the State Commission. Being not satisfied with the decision of the State Commission, after two months he decided to file an appeal against it.Can Himanshu appeal against the decision of the State Commission ? Give reason in support of your answer.

1

9 What is meant by ‘Formal Organisation’ ? State its any two advantages. 310 How do the ‘Company-related factors’ affect the choice of channels of

distribution? Explain.3

11 ‘A.S. Ltd.’ is a large company engaged in assembly of air-conditioners. Recently the company had conducted the ‘Time’ and ‘Motion’ study and concluded that on an average a worker can assemble ten air-conditioners in a day. The target volume of the company in a day is assembling of 1,000 units of air-conditioners. The company is providing attractive allowances to reduce labour turnover and absenteeism. All the workers are happy. Even then the assembly of air-conditioners per day is 800 units only. To find out the reason the company

3

compared actual performance of each worker and observed through C.C.T.V. that some of the workers were busy in gossiping.

(a) Identify the function of management discussed above.(b) State those steps in the process of the function identified which are

discussed in the above paragraph.12 ‘The Stock Exchange performs many vital functions in today’s commercial world.’

Explain any three such functions.3

13 Jaideep recently joined as the Managing Director of ‘Tivori Ltd.’, an apparel designing company. He observed that the company had a number of experienced fashion designers on its payroll. They regularly offered useful suggestions which were neither appreciated nor rewarded by the company. Instead the company outsourced its services to some renowned fashion designers and paid them a good compensation for their services. Because of this the employees felt disheartened and stopped giving useful suggestions.

(a) Identify the communication barrier discussed above.(b) State the category of this communication barrier.(c) Explain any other communication barrier of the same category.

3

14 What is meant by ‘Management’ ? State any three objectives of management. 415 Explain any four points of importance of ‘consumer protection’ from the point of

view of business.4

16 Neeraj Gupta started a company ‘YoYo Ltd.’ with ten employees, to assemble economical computers for the Indian rural market. The company did very well in its initial years. As the product was good and marketed well, the demand went up. To increase production the company decided to recruit additional employees. Neeraj Gupta, who was earlier taking all decisions for the company, had to selectively disperse the authority. He believed that people are competent, capable and resourceful and can assume responsibility for effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range with different features.

(a) Identify the concept used by Neeraj Gupta through which he was able to steer his company to greater heights.

(b) Also explain any three points of importance of this concept.

4

17 The workers of ‘Gargya Ltd.’ are unable to work on new computerised machines imported by the company to fulfil the increased demand. Therefore, the workers are seeking extra guidance from the supervisor and the supervisor is overburdened with the frequent calls of workers.Suggest how the supervisor, by increasing the skills and knowledge of workers, can make them handle their work independently.Also state any three benefits that the workers will derive by the decision of the supervisor.

4

18 Beni, after completing her MBA, took up a job with a multinational company named ‘Fortio’. The company was paying good salary and perks to its employees. The wages were within the paying capacity of the company that provided the employees a reasonable standard of living. The company also had a good work-culture and the behaviour of superiors was very good towards their subordinates. Beni was very happy in this organisation, but due to long working hours she did not have time to cook her meal. She had to depend upon outside food, which was deteriorating her health.She observed that this problem was faced by many of her colleagues, not only in her company but also in many other companies. This was because of increase in the number of working women and non-availability of hygienic home-cooked

4

food. She identified this as a great opportunity and decided to give up her job to supply packaged home-cooked food to office goers at a reasonable price. At the end of the day she was also distributing the left-over food in the nearby night-shelters.

(a) State the dimension of business environment being discussed above.(b) State the principle of management being followed by ‘Fortio’.(c) Identify any two values being communicated by the company to the

society in the above case.19 ‘Mission Coach Ltd.’ is a large and creditworthy company manufacturing coaches

for Indian Railways. It now wants to export these coaches to other countries and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost, the company decides to tap the money market.

(a) Name and explain the money-market instrument the company can use for the above purpose.

(b) What is the duration for which the company can get funds through this instrument ?

(c) State any other purpose for which this instrument can be used.

4

20 Give the meaning of ‘organising’. State the steps in the process of organising. 521 Anjali had been working with ‘Tata Enterprises’ for the last ten years. She was

famous for her dedication towards the work. When the Manager senior to her retired, all her colleagues thought that now Anjali would be promoted. But to everyone’s surprise the vacant post was filled by an outsider ‘Miss Monika’. Anjali felt demoralised and her performance started declining. She would absent herself often and could not meet her targets.Miss Monika was a good leader who would not only instruct her subordinates, but also guide and inspire them. She noticed Anjali’s behaviour and felt that her performance could be improved. She started involving Anjali in decision-making issues related to the organisation and made her a part of a high-level joint management committee. Anjali was now punctual to office and her performance started improving.

(a) Identify the function of management being performed by Monika.(b) Name the element of the above function of management which helped

Monika to improve Anjali’s behaviour.(c) State any three features of the element identified in (b) above.

5

22 Mohit Gupta is working with ‘Yellow Security Services Ltd.’ He is also recruiting security guards for the company. The company provide security services in Delhi and Noida at short notice to various companies. The guards are recruited on temporary basis. The guards provided by this company are known for their honesty and punctuality. Mohit Gupta is well known in his village for providing employment to unskilled people.

(a) Name the source of recruitment used by ‘Yellow Security Services Ltd.’(b) State any one disadvantage of this source of recruitment.(c) Identify the need of ‘Security Guards’ which is being fulfilled by the

company as per Maslow’s need hierarchy.(d) Identify any two values communicated to the society in the above stated

case.

5

23 Explain the following principles of management :(a) Science, not rule-of-thumb.(b) Discipline.

6

24 ‘Abhishek Ltd.’ is manufacturing cotton clothes. It has been consistently earning good profits for many years. This year too, it has been able to generate enough profits. There is availability of enough cash in the company and good prospects for growth in future. It is a well managedoranisation and believes in quality, equal employment opportunities and good remuneration practices. It has many shareholders who prefer to receive a regular income from their investments.It has taken a loan of rs 50 lakhs from I.C.I.C.I. Bank and is bound by certain restrictions on the payment of dividend according to the terms of the loan agreement.The above discussion about the company leads to various factors which decide how much of the profits should be retained and how much has to be distributed by the company.Quoting the lines from the above discussion, identify and explain any four such factors.

6

25 Radhika was a student of Business Studies of Class XII. Her father was a farmer who grew different varities of rice and was well-versed about various aspects of rice cultivation. He was also selected by the government for a pilot-project on rice cultivation. As a project-work in Business Studies she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use internet to gather customers’ views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there were no pre-determined specifications in case of rice because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of ‘Malabari Organic Rice’ and classified it into three different varieties namely — Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation.Explain the three functions of marketing, with reference to the above paragraph.

6

BUSINESS STUDIES (054)

OUTSIDE DELHI BOARD 2016 SET I

Que

PART A Marks

1 ‘Is Management concerned only with doing the right task, completing activities and achieving goals without taking into consideration the cost benefit ?’ Give reason in support of your answer.

1

2 Give the meaning of ‘organising as a process’. 13 Name the type of organisational structure which promotes

flexibility and initiative.1

4 State the role of ‘route clerk’ in functional foremanship. 15 Name and state the aspect of financial management that

enables to foresee the fund requirements both in terms of ‘the quantum’ and ‘the timings’.

1

6 Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company with his son. His son was keen that the company may start manufacturing of

1

Mobile-phones with some unique features. Rizul Bhattacharya felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be required regularly in this business. Therefore he convinced his son to start a furniture business.Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile phones.

7 Name the function of marketing which is concerned with the cost and location of target market.

1

8 Suman bought a box of cheese of a reputed brand from a local shopkeeper. On opening the box she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company. Within a week the representative of the company visited Suman’s residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her.State the consumer right which Suman exercised.

1

9 Define ‘Planning’. Explain the first two steps in the process of planning.

3

10 Mr.Fernandes is the owner of Unibie Enterprises, carrying on the business of manufacturing electrical appliances. There is a lot of discontentment in the organisation and targets are not being met. He asked his son, Michel, who has recently completed his MBA, to find out the reason.Michel found that all decision making of the enterprise were in the hands of his father. Moreover, his father did not have confidence in the competency of the employees. Thus the employees were not happy.(a)Identify any two communication barriers because of which ‘Unibie Enterprise’ was not able to achieve its target.(b)State one more barrier each of the types identified in part (a) above.

3

11 Atul-The Assistant Manager, Vikas-The Marketing Head and Leena-The Human Resource Manager of ‘Montac Enterprises Ltd.’ decided to leave the company.The Chief Executive officer of the company called the Human Resource Manager, Leena and requested her to fill up the vacancies before leaving the organisation. Leena suggested that her subordinate Miss Rama

3

Wadhwa is very competent and trust worthy, if she could be moved up in the hierarchy, she would do the needful. The Chief Executive Officer agreed for the same. Miss Rama Wadhwa contacted ‘Smith Recruiters’ who advertised for the post of marketing head for ‘Montac Enterprises Ltd’. They were able to recruit a suitable candidate for the company. Atul’s vacancy was filled up by screening the database of unsolicited applications lying in the office.(a) Name the internal/external sources of recruitment used by ‘Montac Enterprises Ltd’. to fill up the above stated vacancies.(b) Also state any one merit of each of the above identified source of recruitment.

12 Mr.VikasMehra was the Chairman of ‘IBM Bank’. The Bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of ‘UK Bank’. Mr.VikasMehra knew that the share price of ‘IBM Bank’ would rise on this announcement. Being a part of the Bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and asked him to invest rs 4 crores in shares of his bank promising him the capital gains.As expected after the announcement, the share prices went up by 50% and the market price of Mukand’s shares was now rs 6 crores. Mukand earned a profit of rs 2 crores. He gave rs 1 crore to VikasMehra and kept rs 1 crore with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on VikasMehra.Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case.

3

13 What is meant by a ‘consumer’ as per the provisions of Consumer Protection Act, 1986 ?

3

14 What is meant by ‘Management’ ? Explain its any three features that establish it as an Art.

4

15 With change in the consumption habits of people, Neelesh, who was running a sweets shop shifted to chocolate business. On the eve of Diwali he offered

4

chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website chocolove.com for taking orders online. He got lot of orders online and earned huge profit by selling chocolates.Identify and explain the dimensions of business environment discussed in the above case.

16 ‘My Car Ltd.’ decided to set-up its new car manufacturing factory in the backward area of West Bengal where very less job opportunities were available. People of that area welcomed this effort of ‘My Car Ltd.’ The company also decided to provide facilities like school, hospital, market etc. in the factory premises so that the people are attracted to join the factory as workers.‘My Car Ltd.’ started earning huge profit. Another competeting company asked its production manager ‘Arvind’ to investigate the reasons of earning huge profits by ‘My Car Ltd.’Arvind found that in both the companies there was systematic co-ordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place only through the scalar chain, where as ‘My Car Ltd.’ was allowing flow of communication in all the directions as per the requirement which lead to faster spread of information as well as quick feed-back.

(a) Identify the type of organisation which permits the flow of communication in all the directions in ‘My Car Ltd.’.

(b) Also state an advantage of the type of organisation identified in part (a) above.

(c) State any two values which ‘My Car Ltd.’ wants to communicate to the society.

4

17 ‘A.S. Environs Ltd.’ is dealing in Environment-Consultancy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the team leader used to travel by air whereas his team travelled by road/train. It was not only time consuming but also at times forced the female team members to travel alone.As a result, the subordinates were not acting in a

4

desired manner to achieve organisational goals. The CEO of the company came to know about it. He called the team leader, discussed the matter with him and decided to change the travel policy of the company. It was decided that in future all the members including the leader would travel together and usefully utilise the travelling time in discussion about the presentation to be given to the clients. This made a positive impact and every member of the team started acting in a manner as desired by the team leader.State the features of the element of the function of management used by the CEO.

18 A company was marketing ‘Juicers’ which were very popular due to their quality and after-sale-services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits the company ignored the after sales, services. As a result its relations with the customers got spoiled and the image of the company in the public was damaged. Top management became concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the after sales services was its reason. Therefore the company took all possible measures to protect and promote its favourable image. As a result the goodwill of the company improved in the society.

Name and state the communication tool used by the marketer in the above case to improve its image.

Also explain role of the tool as identified in Part (a).

4

19 State the functions performed by financial market. 420 Two years ago Mayank obtained degree in food technology.

For some time he worked in a company manufacturing Bread and Biscuits. He was not happy in the company and decided to have his own Bread and Biscuits manufacturing unit. For this he decided the objectives and the targets and formulated action plan to achieve the same.One of his objective was to earn 50% profit on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as a Production-Manager who decided the exact manner in

5

which the production activities are to carried out. Harsh also prepared a statement showing the requirement of workers in the factory throughout the year. Mayank informed Harsh about his sales target for different products, areawise for the forth coming quarter. While working on the production table a penalty of rs 150 per day was announced for not wearing the helmet, gloves and apron by the workers.Quoting lines from the above para identify and explain the different types of plans discussed.

21 Prateek is working in a multi-national company in Noida. He was running temperature for the last many days. When his blood was tested, he was found positive for malaria. He was admitted in the hospital and a blood transfusion was advised by the doctors as his condition was very serious. One of his colleagues sent a text message to his superior ‘Mr. B. Chatterjee’. Mr. B. Chatterjee, immediately sent a text message to the employees of the organisation requesting them to donate blood for Prateek. When the General Manager came to know about it he ordered for fumigation in the company premises and for cleaning the surroundings.

2 From the above para quote lines that indicate formal and informal communication.

3 State any two features of informal communication.4 Identify any two values that are being

communicated to the society in the above case.

5

22 State the steps in the controlling process. 523 Describe any four characteristics of ‘co-ordination’. 624 Kay Ltd. is a company manufacturing textiles. It has a share

capital of rs60 lakhs. In the previous year its earning per share was rs 0.50. For diversification, the company requires additional capital of rs 40 lakhs. The company raised funds by issuing 10% Debentures for the same. During the year the company earned profit of rs 8 lakhs on capital employed. It paid tax @ 40%.

(a) State whether the shareholders gained or lost, in respect of earning per share on diversification. Show your calculations clearly.

(b) Also, state any three factors that favour the issue of debentures by the company as part of its capital structure.

6

25 Vasvi purchased a bottle of pickle from the local grocery shop. The information provided on the bottle was not

6

clear. She fell sick on consuming it. She filed a case in the District forum under Consumer Protection Act and got the relief.

(a) Identify the important aspect neglected by the marketer in the above case.

(b) Explain briefly the functions of the aspect identified in (a) above.

BUSINESS STUDIES (054)

OUTSIDE DELHI BOARD 2017 SET I

Que

PART A Marks

1 Give the meaning of ‘supervision’ as an element of directing. 12 Differentiate between ‘formal’ and ‘informal’ organisation on the basis of ‘flow of

communication’1

3 Why is ‘Aptitude Test’ conducted in the process of selection ? 14 Bhagwati Enterprises is a company engaged in the marketing of air-conditioners

of a famous brand. The company has a functional structure with four main functions-Purchase, Sales, Finance and Staffing. As the demand for the product grew, the company decided to recruit more employees.Identify the concept which will help the Human Resource Manager to find out the number and type of personnel available so that he could decide and recruit the required number of persons for each department.

1

5 Isha Machines was a renowned name for quality sewing machines since 1960. Mr. Suresh, the owner of Isha Machines, was worried as the production had declined during the last three months. He directed the Production Manager to find out the reason. The Production Manager ordered the different supervisors to prepare a performance report of the workers working under them.Identify the step taken by the Production Manager that is related to one of the functions of management.

1

6 What is meant by ‘Capital Structure’ ? 17 Sika Ltd., a reputed industrial machines manufacturer, needs Rupees twenty

crores as additional capital to expand the business. Mr. Amit Joshi, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The Finance Manager, Mr.Narinder Singh, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expensive.Name the method through which the company decided to raise additional capital.

1

8 Mansi took her niece, Ridhima, for shopping to ‘Mega Stores’ to buy her a bag for her birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost.Identify the technique of sales promotion used by the company.

1

9 Explain briefly ‘Unity of Direction’ and ‘Order’ as principles of general management.

3

10 State any three features of planning. 311 Explain briefly any three semantic barriers to communication. 312 Ramnath Ltd. is dealing in import of organic food items in bulk. The company sells 3

the items in smaller quantities in attractive packages. Performance of the company has been up to the expectations in the past. Keeping up with the latest packaging technology, the company decided to upgrade its machinery. For this, the Finance Manager of the company, Mr. Vikrant Dhull, estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis.Therefore, Mr. Vikrant Dhull began with the preparation of a sales forecast for the next four years. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources. For the remaining funds he is trying to find out alternative sources.Identify the financial concept discussed in the above paragraph. Also, state any two points of importance of the financial concept, so identified.

13 Hemant, Guddu and Toshita were friends from college days and presently they were doing different kinds of business. They regularly meet and discuss their business ideas, and exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques, social concerns, etc.In one of such meetings, Hemant drew the attention of Guddu and Toshita towards the exploitation of consumers. He told that most of the sellers were exploiting the consumers in various ways and were not paying attention towards the social, ethical and ecological aspects of marketing, whereas he was not doing so. Guddu told that they were under pressure to satisfy the consumers but stated that the consumerswould not buy or not buy enough unless they were adequately convinced and motivated for the same.Toshita stressed that a company cannot achieve its objectives without satisfying the needs of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind, because business is run by the resources made available by the society. She further stated that she herself was taking into consideration the needs of the customers.Identify the various types of thinking that guided Hemant, Guddu and Toshita in the marketing efforts of their business. Also, state one more feature each of the various types of thinking identified that is not given in the above paragraph

3

14 RishitoshMukerjee has recently joined AMV Ltd, a company manufacturing refrigerators. He found that his department was under-staffed and other departments were not cooperating with his department for smooth functioning of the organisation. Therefore, he ensured that his department has the required number of employees and its cooperation with other departments is improved.

(a) Identify the level at which RishitoshMukerjee was working.(b) Also, state three more functions required to be performed by

RishitoshMukerjee at this level.

4

15 Sanket, after completing his entrepreneurship course from U.S.A. returned to India and started a coffee shop ‘Fioma Coffee’ in a famous mall in Mumbai. The speciality of the coffee shop was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanket was keen to find out the reason. He appointed Riya, an MBA from a reputed management institute as a manager to find out the causes of the business not doing well.Riya, took a feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions which could be eliminated. She fixed a standard

4

time for processing the order. She also realised that there were many flavours whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a result, within a short period Riya was able to attract the customers.Identify and explain any two techniques of scientific management used by Riya to solve the problem.

16 Give the meaning of ‘Strategy’ and ‘Rule’ as types of plans. 417 Explain briefly ‘Casual Callers’ and ‘Labour Contractors’ as external sources of

recruitment.4

18 These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed the most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this, there is another market in which unsecured and short-term debt instruments are actively traded every day. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.

(a) Name the function being performed by the market in the above case.(b) Name the market segment other than the capital market segment in

which unsecured and short-term debt instruments are traded. Also, give any three points of difference between the two.

4

19 Avdhesh is the Managing Director of Delta Ltd. The company had established a good name for itself and had been doing well. It was known for timely completion of orders. The Production Manager, Ms.Priyanka was efficiently handling the processing of orders and had a team of ten motivated employees working under her. Everything was going on well. Unfortunately, Priyanka met with an accident. Avdhesh knew that in the absence of Priyanka, the company may not be able to meet the deadlines. He also knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had a meeting with his employees in which accurate and speedy processing of orders was planned. Everybody agreed to work as a team because the behaviour of Avdhesh was positive towards the employees of the organisation. Everyone put in extra time and efforts and the targets were met on time. Not only this, Avdhesh visited Priyanka and advised her to take adequate rest.

(a) Identify the leadership style of Avdhesh and draw a diagram depicting the style.

(b) Also, identify any two values highlighted by the behaviour of Avdhesh.

4

20 Nandrachal Networks and Technologies Ltd. is a leader in technology innovation in U.S.A. creating products and solutions for a connected world. It has a large Research and Development team which invented the first smart watch W-I, which besides showing the time would also monitor few health parameters like heart beat, blood pressure, etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of the fact that licensing requirements had been abolished. The company was also aware that there had been increased level of interaction and interdependence among the various nations of the world and India could be made a base for its international trade. It set up its office in Gujarat with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefitting the customers.

(a) In the above paragraph, two major concepts related to government policy

5

have been discussed. Identify and explain those concepts.(b) Also, explain briefly any three impacts of those concepts on Indian

business and industry.21 State any five points that highlight the importance of controlling. 522 ‘RO Youth Club’ organised a visit of its members to an Old Age Home to inculcate

the habit of social work among them. The visit revealed that the living conditions of the inmates of the Old Age Home were not hygienic. So, the RO Youth Club members decided to clean the premises. During their cleanliness drive, they realised that the Old Age Home also required pest control. But some of the inmates of the Old Age Home were reluctantfor it because they believed that the pest control may create health problems for them. RO Youth Club, therefore, decided to provide ethical, safe and odourless pest control. They showed to the inmates of the Old Age Home a pamphlet of the proposed pest control product which promised easy, inexpensive and long-lasting pest control. The inmates happily agreed and the pest control was carried out. The effect of the pest control started wearing off after a fortnight. RO Youth Club contacted the pest control company which kept on postponing their visit. After waiting for a month, RO Youth Club filed a case in the consumer court.The consumer court was satisfied about the genuineness of the complaint and issued necessary directions to the pest control company.

(a) State any six directions that might have been issued by the court.(b) Identify any two values that are being communicated by RO Youth Club to

the society.

5

23 Anoop Gaur started ‘Cat’s Eye’, a company for providing cyber security solutions to businesses. Its objective is to prevent, detect, respond to cyber attacks and protect critical data. He was a hardworking software engineer and an expert in cyber security. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.He was delighted when he was offered a big project by the Ministry of Science and Technology. While working on the project he found that the volume of work made it impractical for him to handle all the work by himself. Therefore, he decided to expand the team. The company maintained a close liaison with an engineering college in the State. During a campus placement, Aarav and Pranshi were appointed to work for the new project.He found the new employees capable, enthusiastic and trustworthy. Anoop Gaur was thus, able to focus on the objectives and with the help of Aarav and Pranshi, the project was completed on time. Not only this, Anoop Gaur was also able to extend his area of operations. On the other hand, Aarav and Pranshi also got opportunities to develop and exercise initiative.

(a) Identify and explain briefly the concept used by Anoop Gaur in the above case which helped him in focussing on the objectives.

(b) Also, explain any four points of importance of the concept identified in part (a).

6

24 Explain briefly any four factors that affect the working capital requirements of a company.

6

25 Medi Instruments Ltd. is a company dealing in the distribution of medical instruments. The company recently imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones.

6

In the meeting, Sanjay, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally to explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. Hitesh, another Zonal Head, added that since lot of money had been spent on the import of the machines, the company was short of funds to pay the additional staff, as suggested by Sanjay.Revansh, a newly appointed Zonal Head of South Zone, suggested that since the size of the order was not large, a detailed study of the factors determining the choice of channels of distribution was required before making the right choice.

(a) Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.

(b) Also, explain briefly the other considerations to be taken care of in each factor identified in part (a).

R M PATEL

PGT COMMERCE

KV 2 ARMY CANTT.BHUJ