CBSE Accountancy Solution

1 P.T.O.

Series : SKS/1

Roll No.

Code No. 67/1/1Candidates must write the Code onthe title page of the answer-book.

Code number given on the right hand side of the question paper should be written on the title page ofthe answer-book by the candidate.

Please check that this question paper contains 25 questions.

Please write down the Serial Number of the questions before attempting it.

15 minutes time has been allotted to read this question paper. The question paper will be distributed at10.15 a.m. From 10.15 a.m. to 10.30 a.m., the student will read the question paper only and will notwrite any answer on the answer script during this period.

ACCOUNTANCY

[Time allowed : 3 hours] [Maximum marks : 80]

General Instructuions:

(i) This question paper contains three parts A, B and C.

(ii) Part A is compulsory for all candidates.

(iii) Candidates can attempt only one part of the remaining parts B and C.

(iv) All parts of the questions should be attempted at one place.

Studymate Solutions to CBSE Board Examination 2012-2013

STUDYmate Accountancy Class XII

2 P.T.O.

PART-A(Accounting for Partnership Firms and Companies)

1. When the partner capitals are fixed, where the drawings made by a partner will be recorded?

Ans. Partners Current Accounts

2. State the ratio in which the partners share profits or losses on revaluation of assets and

liabilities, when there is a change in profit sharing ratio amongst existing partners?

Ans. Old ratio

3. Name the account which is opened to credit the share of profit of the deceased partner, till the

time of his death to his Capital account.

Ans. Profit & Loss Suspense A/c

4. Give the journal entry to distribute ‘Workman Compensation Reserve’ of ` 60,000 at the time of

retirement of Sajjan, when there is no claim against it. The firm has three partners Rajat, Sajjan

and Kavita.

Ans. Journal

Date Particulars LF Debit (`) Credit (`)

Workman Compensation Reserve A/c Dr.

To Rajat’s Capital A/c

To Sajjan’s Capital A/cTo Kavita’s Capital A/c

(Being workman compensation reserve

distributed among partner in their profit ratio

(equal))

60,000

20,000

20,00020,000

5. What is meant by ‘Securities Premium’?

Ans. Securities Premium refers to the price charged by a company other and above the face value of

shares.

6. What rate of interest the company pays on calls - in advance if, it has not prepared its own

Articles of Association?

Ans. Since company has not prepared its articles Table A of companies Act, 1956 is applicable

according to which interest on calls in advance is payable at 6% p.a.

7. What is meant by issue of debentures as a collateral security?

Ans. Issue of debentures as collateral security refers to issue of debentures as secondary security over

and above the primary security.

Collateral security can be realized only when the principal security fails to meet the liability.


3 P.T.O.

8. Mona, Nisha and Priyanka are partners in a firm. They contributed ` 50,000 each as capital

three years ago. At that time Priyanka agreed to look after the business as Mona and Nisha were busy. The profits for the past three years were ` 15,000, ` 25,000 and ` 50,000 respectively.

While going through the books of accounts Mona noticed that the profit had been distributed in the ratio of 1 : 1 : 2. When she enquired from Priyanka about this, Priyanka answered that since

she looked after the business she should get more profit. Mona disagreed and it was decided to

distribute profit equally retrospectively for the last three years.

(a) You are required to make necessary corrections in the books of accounts of Mona, Nisha

and Priyanka by passing an adjustment entry.

(b) Identify the value which was not practiced by Priyanka while distributing profits.

Ans. (a) Journal


Priyanka’s Capital A/c Dr.

To Mona’s Capital A/c

To Nisha’s Capital A/c

(Being adjustment made)

15,000

7,500

7,500

Partners Capital A/c’sDr. Cr.

Particular Mona Nisha Priyanka

Amount to be created to Partner’s Capital A/c

(–) Amount already credited to Partner’s Capital A/c

30,000

22,500

30,000

22,500

30,000

45,000

+7,500 (Cr.) +7,500 (Cr.) –15,000 (Dr.)

(b) Values: Integrity, Honesty

9. Pass the necessary journal entries for issue of 1,000, 7% Debentures of ` 100 each in the

following cases:

(a) Issued at 5% premium redeemable at a premium of 10%.

(b) Issued at a discount of 5% redeemable at par.

Ans. (a) Journal


Bank A/c Dr.

To Debenture Application A/c(Being application money of ` 105 received on

1000 shares)

1,05,000

1,05,000

Debenture Application A/c Dr.

Loss on issue of Debenture A/c Dr.

To 7% Debenture A/c

To Premium on redemption of Debentures

To Securities Premium Reserve A/c

(Being 1000 debentures issued at 5% premium

redeemable at 10% premium)

1,05,000

10,000

1,00,000

10,000

5,000


4 P.T.O.

(b) Journal


Bank A/c Dr.

To Debenture Application A/c

(Being application money received)

95,000

95,000


Discount on issue of Debentures A/c Dr.

To 7% Debenture A/c

(Being 1000 debenture issued at 5% discount

redeemable at par)

95,000

5,000

1,00,000

10. Taneja Constructions Ltd. has an outstanding balance of ` 5,00,000, 7% debentures of ` 100

each redeemable at a premium of 10%. According to the terms of redemption, the company redeemed 30% of the above debentures by converting them into shares of ` 50 each at a

premium of 20%. Record the entries for redemption of debentures in the books of Taneja

Constructions Ltd.

Ans. JournalDate Particulars LF Debit (`) Credit (`)

7% Debentures A/c Dr.

Premium on redemption of Debentures A/c Dr.To Debenture holders A/c

(Being debentures due for redemption)

1,50,000

15,0001,65,000

Debenture holders A/c Dr.

To Share Capital A/c


(Being shares issued to debentures holders)

1,65,000

1,37,500

27,500

11. Abhay and Beena are partners in a firm. They admit Chetan as a partner with 1/4th share in the

profits of the firm. Chetan brings ` 2,00,000 as his share of capital. The value of the total assets

of the firm is ` 5,40,000 and outside liabilities are valued at ` 1,00,000 on that date. Give the

necessary entry to record goodwill at the time of Chetan’s admission. Also show your working

notes.

Ans. Combined Capital of Abhay & Beena= ` 5,40,000 – ` 1,00,000= ` 4,40,000

(A) Capital of the firm on the basis of Chetan’s Share

= ` 2,00,000 × 4

1= ` 8,00,000

(B) Actual Capital of Abhay, Beena & Chetan= ` 4,40,000 + ` 2,00,000= ` 6,40,000Goodwill = ` 8,00,000 – ` 6,40,000 = ` 1,60,000

Chetan’s Share of goodwill = ` 1,60,000 × 4

1= ` 40,000


5 P.T.O.

Journal


Cash/Bank A/c Dr.

To Chetan’s Capital A/c

(Being Capital brought in by Chetan)

2,00,000

2,00,000

Chetan’s Capital/Current A/c Dr.

To Abhay’s Capital A/c

To Beena’s Capital A/c

(Being adjustment of goodwill)

40,000

20,000

20,000

12. Naresh, David and Aslam are partners sharing profits in the ratio of 5 : 3 : 7. On April 1st 2012,

Naresh gave a notice to retire from the firm. David and Aslam decided to share future profits in

the ratio of 2 : 3. The adjusted capital accounts of David and Aslam show a balance of ` 33,000 and ` 70,500 respectively. The total amount to be paid to Naresh is ` 90,500. This amount is to

be paid by David and Aslam in such a way that their capitals become proportionate to their new

profit sharing ratio. Pass necessary journal entries for the above transactions in the books of the

firm. Show your working clearly.

Ans. Total Capital of the new firm

= ` 33,000 + ` 70,500 + ` 90,500

= ` 1,94,000

David’s Share in capital = ` 1,94,000 × 2

5= ` 77,600

Aslam’s Share in Capital = ` 1,94,000 × 2

5= 1,16,400

Journal


Cash A/c Dr.

To David’s Capital A/c

To Aslam’s Capital A/c

(Being Cash brought in by David & Aslam)

90,500

44,600

45,900

Naresh’s Capital A/c Dr.

To Cash A/c

(Being amount paid to Naresh)

90,500

90,500

13. Madhav Ltd. issued fully paid equity shares of ` 80 each at a discount of ` 5 per share for the

purchase of a running business from Gupta Bros. for a sum of ` 15,00,000.

The assets and liabilities consisted of the following:

Plant ` 5,00,000; Trucks ` 7,00,000; Stock ` 3,00,000; Machinery ` 6,00,000 and Sundry

Creditors ` 5,00,000.

You are required to pass necessary journal entries for the above transactions in the books of

Madhav Ltd.


6 P.T.O.

Ans. Journal


Plant A/c Dr.

Trucks A/c Dr.

Stock A/c Dr.

Machinery A/c Dr.

To Sundry Creditors

To Gupta Bros.

To Capital Reserve(Being Assets & Liabilities acquired)

5,00,000

7,00,000

3,00,000

6,00,000

5,00,000

15,00,000

1,00,000

Gupta Bros. A/c Dr.

Discount on issue of Share’s A/c Dr.


(Being Shares issued)

15,00,000

1,00,000

16,00,000

Number of shares to be issued = 15,00,000

75= ` 20,000 Shares

14. The authorized capital of Suhani Ltd. is ` 45,00,000 divided into 30,000 shares of ` 150 each.

Out of these company issued 15,000 shares of ` 150 each at a premium of ` 10 per share. The

amount was payable as follows:

` 50 per share on application, ` 40 per share on allotment (including premium), ` 30 per share

on first call and balance on final call. Public applied for 14,000 shares. All the money was duly

received.

Prepare an extract of Balance Sheet of Suhani Ltd. as per Revised Schedule VI Part - I of the

Companies Act 1956 disclosing the above information. Also prepare ‘notes to accounts’ for the

same.

Ans. Balance Sheet of Suhani Ltd.

as on _____ as per Schedule VI Part-I

Particulars Note No. Amount (`)

I. Equity & Liabilities

(1) Shareholder’s Funds

(a) Share Capital(b) Reserves & Surplus

(c) Money received against share warrants

12

21,00,0001,40,000

Note 1.

Authorized Share Capital

30,000 Shares of ` 150 each 45,00,000

Issued Share Capital

15,000 Shares of ` 150 each 22,50,000

Subscribed Share Capital

14,000 Shares of ` 150 each 21,00,000

Called up & Paid up Share Capital

14,000 Shares of ` 150 each 21,00,000


7 P.T.O.

Note 2.

Reserves & Surplus

Securities Premium Reserve 1,40,000

15. Ali, Bimal and Deepak are partners in a firm. On 1st April, 2011 their capital accounts stood at `4,00,000, ` 3,00,000 and ` 2,00,000 respectively. They shared profits and losses in the

proportion of 5 : 3 : 2. Partners are entitled to interest on capital @ 10% per annum and salary to Bimal and Deepak @ ` 2,000 per month and ` 3,000 per quarter respectively as per the

provisions of the partnership deed.

Bimal’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of ` 50,000 p.a. Any deficiency arising on that account shall be met by Deepak. The

profits of the firm for the year ended 31st March, 2012 amounted to ` 2,00,000. Prepare Profit &

Loss Appropriation Account for the year ended on 31st March, 2012.

Ans. Profit & Loss Appropriation A/c

Dr. For the year ended 31.03.2012 Cr.

Particulars Amount (`) Particulars Amount (`)To Interest on capital

Ali 40,000

Bimal 30,000

Deepak 20,000

To Partner’s salaries

Bimal 24,000

Deepak 12,000

To Partner’s capital A/c

Ali

Bimal 22,000

(+) Def. from Deepak 2,000

Deepak 14,800

(–)Def. to Bimal 2,000

90,000

36,000

37,000

24,200

12,800

By Net Profit 2,00,000

2,00,000 2,00,000

16. The Balance Sheet of Sudha, Rahim and Kartik who were sharing profit in the ratio of 3 : 3 : 4 as

on 31st March, 2012 was as follows:

Liabilities Amount (`) Assets Amount (`)General Reserve

Bills Payable

Loan

Capitals:

Sudha 60,000

Rahim 50,000

Kartik 40,000

10,000

5,000

12,000

1,50,000

Cash

Stock

Investments

Land & Building

Sudha’s Loan

16,000

44,000

47,000

60,000

10,000

1,77,000 1,77,000


8 P.T.O.

Sudha died on June 30th 2012. The partnership deed provided for the following on the death of a

partner:

(a) Goodwill of the firm be valued at two years purchase of average profits for the last three

years.

(b) Sudha’s share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2012 amounted to ` 4,00,000 and that from 1st

April to 30th June 2012 to ` 1,50,000. The profit for the year ended 31st March, 2012 was

` 1,00,000.

(c) Interest on capital was to be provided @ 6% p.a.

(d) The average profits of the last three years were ` 42,000.

(e) According to Sudha’s will, the executors should donate her share to “Matri Chhaya - an

orphanage for girls”.

Prepare Sudha’s Capital Account to be rendered to her executor. Also identify the value being

highlighted in the question.

Ans. Dr. Sudha’s Capital A/c Cr.

ParticularAmount

(`)Particular

Amount (`)

To Sudha’s Executors A/c 1,10,350 By balance b/d

By Sudha’s Loan A/c

By General Reserve

By P & L Suspense A/c

By Interest on Capital

By Rahim’s Capital A/c

By Kartik’s Capital A/c

60,000

10,000

3,000

11,250

900

10,800

14,400

1,10,350 1,10,350

Calculation of Sudha’s Share in profits

Profit % = 1,00,000

1004,00,000

= 25%

Sudha’s Share = 25 3

1,50,000100 10

= ` 11,250

Valuation of Goodwill

Goodwill = ` 42,000 × 2 = ` 84,000

Sudha’s Share of goodwill = ` 84,000 × 3

10= ` 25,200

17. Moneyplus Company issued for public subscription 75,000 shares of the value of ` 10 each at a

discount of 10% payable as follows:

` 2 per share on application, ` 3 per share on allotment and ` 4 per share on call.

The company received applications for 1,50,000 shares. The allotment was done as under:

(a) Applicants of 15,000 shares were allotted 5,000 shares.

(b) Applicants of 70,000 shares were allotted 40,000 shares.

(c) Remaining applicants were allotted 30,000 shares.


9 P.T.O.

Money in excess to allotment was returned. Hari, a shareholder who had applied for 3,500

shares out of group B failed to pay allotment and call money. Rohan, a shareholder who was

allotted 3,000 shares paid the call money along with the allotment. Rohan also belonged to group

B.

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

Show your working notes clearly.

OR

Record the journal entries for forfeiture and reissue of shares in the following cases:

(a) X Ltd. forfeited 20 shares of ` 10 each, ` 7 called up on which the shareholder had paid

application and allotment money of ` 5 per share. Out of these, 15 shares were re-issued to

Naresh as ` 7 per share paid up for ` 8 per share.

(b) Y Ltd. forfeited 90 shares of ` 10 each, ` 8 called up issued at a premium of ` 2 per share to

‘R’ for non-payment of allotment money of ` 5 per share (including premium). Out of these,

80 shares were re-issued to Sanjay as ` 8 called up for ` 10 per share.

(c) Z Ltd. forfeited 300 shares of ` 10 each issued at a discount of ` 1 per share for non-

payment of first and final call of ` 3 per share. Out of these 200 shares were reissued at

` 3 per share fully paid up.

Ans. Journal


Bank A/c Dr.To Share Application A/c

(Being application money received)

3,00,0003,00,000

Share Application A/c Dr.


To Share Allotment A/c

To Bank A/c

(Being Share application money adjusted)

3,00,000

1,50,000

1,45,000

5,000

Share Allotment A/c Dr.

Discount on issue of Share A/c Dr.


(Being Being allotment money due)

2,25,000

75,000

3,00,000

Bank A/c Dr.

Calls in Arrears A/c Dr.


To Calls in Advance A/c

(Being allotment money received)

78,200

3,000

80,000

1,200

Share First & Final Calls A/c Dr.


(Being share first & final call due)

3,00,000

3,00,000

Bank A/c Dr.

Calls in Advance A/c Dr.

To Share First & Final Call A/c

(Being Share Ist & Final Call money received)

2,90,800

1,200

2,92,000


10 P.T.O.

OR

JournalDate Particulars LF Debit (`) Credit (`)

(a) Share Capital A/c Dr.

To Calls in Arrears A/c

To Share Forfeiture A/c(Being 20 Shares forfeited)

140

40

100

Bank A/c Dr.



(Being 15 Shares re-issued)

120

105

15

Share Forfeiture A/c Dr.

To Capital Reserve A/c

(Being Amount of Share forfeiture transferred to

capital Reserve A/c)

75

75

(b) Share Capital A/c Dr.

Securities Premium Reserve A/c Dr.


To Share Forfeiture A/c

(Being Shares forfeited)

720

180

450

450

Bank A/c Dr.



(Being Shares re-issued)

800

640

160

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

(Being Amount of Share forfeiture transferred to

capital Reserve A/c)

400400

(c) Share Capital A/c Dr.

To Discount on issue of Share A/c

To Share First & Final Call A/c

To Share Forfeiture A/c(Being Shares forfeited)

3,000

300

900

1,800

Bank A/c Dr.

Discount on issue of Share A/c Dr.



(Being Shares re-issued)

600

200

1,200

2,000


To Capital Reserve A/c

NIL

NIL


11 P.T.O.

18. Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1. Since

both of them are specially abled, sometimes they find it difficult to run the business on their

own. Gauri, a common friend decides to help them. Therefore, they admitted her into partnership

for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital. At the

time of Gauri’ s admission, the Balance Sheet of Sahaj and Nimish was as under:

Liabilities Amount (`) Assets Amount (`)Capitals:

Sahaj 1,20,000

Nimish 80,000

General Reserve

Creditors

Employee’s Provident Fund

2,00,000

30,000

30,000

40,000

Machinery

Furniture

Stock

Sundry Debtors

Cash

1,20,000

80,000

50,000

30,000

20,000

3,00,000 3,00,000

It was decided to :

(a) Reduce the value of stock by ` 5,000.

(b) Depreciate furniture by l0% and appreciate machinery by 5%.

(c) ` 3,000 of the debtors proved bad. A provision of 5% was to be created on Sundry Debtors

for doubtful debts.

(d) Goodwill of the firm was valued at ` 45,000.

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

firm. Identify the value being conveyed in the question.

OR

Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Inspite of repeated reminders by the authorities, they kept dumping hazardous material

into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March

2012. Prachi was deputed to realise the assets and pay the liabilities. She was paid ` 1,000 as

commission for her services. The financial position of the firm was as follows:

Liabilities Amount (`) Assets Amount (`)

Creditors

Investment Fluctuation Fund

Capitals:

Prachi

Ritika

10,000

4,500

40,000

30,000

Furniture

Stock

Investments

Cash

Ishita’s Capital

37,000

5,500

15,000

9,000

18,000

84,500 84,500

Following was agreed upon:

Prachi took over investments for ` 12,500. Stock and furniture realized ` 41,500.

There was old furniture which has been written off completely from the books. Ritika agreed to

take away the same at the price of ` 3,000. Compensation paid to the employees amounted to `8,000. This liability was not provided in the above Balance Sheet. Realization expenses

amounted to ` 1,000. Prepare Realisation Account, Partners’ Capital Accounts and Cash A/c to

close the books of the firm.

Also identify the value being conveyed in the question.


12 P.T.O.

Ans. Revaluation A/cDr. Cr.

Particular Amount (`) Particular Amount (`)To Stock A/c

To Furniture A/c

To Debtors

To Provision for Bad debts

5,000

8,000

3,000

1,350

By Machinery A/c

By Loss on Revaluation

Sahaj 7567

Nimish 3,783

6,000

11,3500

17,350 17,350

Partners Capital A/c’sDr. Cr.

Particular Sahaj Nimish Gauri Particular Sahaj Nimish GauriTo Revaluation A/cTo Bal. c/d

7,5671,42,433

3,78391,217

–77,883

By bal. b/dBy Gen. Reserve A/c

By Premium A/cBy Cash A/c

1,20,00020,000

10,000

80,00010,000

5,000

––

–77,883

1,50,000 95,000 77,883 1,50,000 95,000 77,883

Balance Sheetas on _______________

LiabilitiesAmount

(`)Assets

Amount (`)

Capital A/c’sSahaj 1,42,433Nimish 91,217Gauri 77,883

CreditorsEmployee’s Provident Fund

3,11,53330,00040,000

MachineryFurnitureStockDebtors 30,000(–) Bad Debts 3,000

27,000(–) Provision 1,350Cash

1,26,00072,00045,000

25,6501,12,883

3,81,533 3,81,533

Values: Equal opportunity and respect for disabled.

OR

Ans. Realization A/cDr. Cr.

Particular Amount (`) Particular Amount (`)To Sundry Assets

Furniture 37,000Stock 5,500Investments 15,000

To Cash A/cCreditors 10,000Compensation 8,000

To Prachi’s Capital A/c (Expense)

57,500

18,0001,000

By Sundry LiabilitiesCreditors 10,000InvestmentFluctuation Fund 4,500

By Prachi’s Capital A/c(Investment)By Cash (Stock & Furniture)By Ritika’s Capital A/cBy Loss on Realisation

Prachi 2,500Ritika 1,500Ishita 1,000

14,500

12,50041,5003,000

5,00076,500 76,500


13 P.T.O.

Dr. Partners Capital A/c’s Cr.Particular Prachi Ruchi Ishita Particular Prachi Ruchi Ishita

To Bal. b/d

To Realization A/c

To Realisation A/c

(loss)

To Cash A/c

12,500

2,500

26,000

3,000

1,500

25,500

18,000

1,000

By bal. b/d

By Realisation A/c

By Cash A/c

40,000

1,000

30,000

19,000

41,000 30,000 19,000 41,000 30,000 19,000

Cash A/c

LiabilitiesAmount

(`)Assets

Amount (`)

To Balance b/dTo Realisation A/c

To Ishita’s Capital A/c

9,00041,500

19,000

By Realisation A/cBy Prachi’s Capital A/c

By Ritika’s capital A/c

18,00026,000

25,500

69,500 69,500

Values: Safety, Pollution control, Commitment to community.

PART-B(Financial Statements Analysis)

19. Under which type of activity will you classify ‘Dividend received by a finance company’ while

preparing Cash Flow Statement?

Ans. Operating Activity

20. What is meant by ‘Cash from operating activities’ ?

Ans. Cash flow from operating activities implies cash inflow/outflow from principal revenue generating

activities of an enterprise.

21. State anyone objective of Financial Statements Analysis.

Ans. To measure the earning capacity

or To ascertain Profitability/Solveney

or To make comparative study with other firms.

22. Under what heads and sub-heads the following items will appear in the Balance Sheet of a

company as per revised Schedule VI, Part - I of Companies Act 1956.

(i) Premium on redemption of Debentures

(ii) Loose tools

(iii) Balances with banks


14 P.T.O.

Ans.

Items Heading Subheading

(i) Premium on redemption of

Debentures

Non Current Liabilities Other non-current liabilities

(ii) Loose Tools Current Assets Inventories

(iii) Balance with banks Current Assets Cash & Cash equivalents

23. (a) Compute ‘Working Capital Turnover Ratio’ from the following information:

Cash Sales ` 1,30,000; Credit Sales ` 3,80,000; Sales Returns ` 10,000; Liquid Assets

` 1,40,000; Current Liabilities ` 1,05,000 and Inventory ` 90,000.

(b) Calculate ‘Debt Equity Ratio’ from the following information:

Total Assets ` 3,50,000; Total Debt ` 2,50,000 and Current Liabilities ` 80,000.

Ans. (a) Working Capital turnover ratio

= Net Sales

Net Working Capital

Net Sales = (Cash Sales + Credit Sales) – Sales return

= ` 1,30,000 + ` 3,80,000 – ` 10,000

= ` 5,00,000

Current Assets = Liquid Assets + Inventory

= ` 1,40,000 + ` 90,000

= ` 2,30,000

Current liabilities = ` 1,05,000

Working Capital = Current Assets – Current Liabilities

= ` 2,30,000 – ` 1,05,000

= ` 1,25,000

Working Capital turnover ratio = 5,00,000

1,25,000= 4 times

(b) Debt equity ratio = Long term debts

Shareholders funds

Long term debts = Total debts – Current Liabilities

= ` 2,50,000 – ` 80,000

= ` 1,70,000

Shareholders funds = Total Assets – Total debts

= ` 3,50,000 – ` 2,50,000

= ` 1,00,000

Debts equity ratio = 1,70,000

1,00,000= 1.7


15 P.T.O.

24. From the following Statement of Profit and Loss of Suntrack Ltd., for the years ended 31st March

2011 and 2012, prepare a ‘Comparative Statement of Profit & Loss’.

Particulars Note No. 2011-12 (`) 2010-11 (`)

Revenue from operations

Other Income

Expenses

20,00,000

12,00,000

13,00,000

12,00,000

9,00,000

10,00,000

Ans. Comparative Profit & Loss A/c

(of Sinatreak Ltd. For year ended 31-3-11 & 31-3-12)

ParticularsNote No.

2011-12 (`)

2010-11 (`)

Absolute Charge (`)

% Charge

I. Revenue from operations

II. Add other Incomes

20,00,000

12,00,000

12,00,000

9,00,000

8,00,000

3,00,000

40%

25%

III. Total revenue (I + II)

IV. Less Expenses

32,00,000

13,00,000

21,00,000

10,00,000

11,00,000

3,00,000

34.37%

23.07%

Net Profit before tax (III – IV) 19,00,000 11,00,000 8,00,000 42.10%

25. Following is the Balance Sheet of Wisben Ltd. as on 31st March 2012:

Particulars Note No. 2012 (`) 2011 (`)

I. Equity & Liabilities :

(1) Shareholders Funds

(a) Share capital

(b) Reserves and Surplus (Profit & Loss

Balance)

(2) Non-Current Liabilities

Long term borrowings

(3) Current Liabilities

Trade Payables

7,00,000

2,00,000

3,00,000

30,000

6,00,000

1,10,000

2,00,000

25,000

Total 12,30,000 9,35,000

II. Assets:

(1) Non-Current Assets

(a) Fixed assets

Tangible Assets

(2) Current Assets

(a) Inventories

(b) Trade Receivables

(c) Cash and Cash equivalents

11,00,000

70,000

32,000

28,000

8,00,000

60,000

40,000

35,000

Total 12,30,000 9,35,000


16 P.T.O.

Adjustments :

During the year a piece of machinery of the book value of ` 80,000 was sold for ` 65,000.

Depreciation provided on tangible assets during the year amounted to ` 2,00,000.

Prepare a Cash Flow Statement.

Ans. Cash Flow statement (Indirect method)

of Wisben Ltd. As on 31-3-12 (as per AS-3 reserved)

Particulars Debits (`) Amount (`)

A. Cash Flows from operating Activities:

Profit before tax

Adjustments for :

Add : Depreciation on Machinery

Loss on sale of Machinery

90,000

2,00,000

15,000

Operating profit belong working capital changes

Changes in working capital:

Add: Decrease in trade receivables

Income in Trade Payables

Less: Increase in inventories

3,05,000

8,000

5,000

(10,000)

Net Cash from operating activities 3,08,000

B. Cash Flows from investing Activities:

Sales of Machinery (W.N. 1)

Purchase of Machinery (W.N. 1)

65,000

(5,80,000)

Net Cash used in investing Activities (5,15,000)

C. Cash flows from financing Activities:

Issue of Share Capital

Long term borrowings

1,00,000

1,00,000

Net Cash inflow from financing Activities 2,00,000

Net Cash inflow during the year

Add: Cash equivalents in beginning

(7,00)

35,000

Cash equivalents at end 28,000

Working Notes:

Dr. Fixed Assets A/c Cr.

Particulars ` Particulars `To Balance b/d

To Bank A/c

(Purchase of Assets)

(Balancing Figure)

8,00,000

5,80,000

By Depreciation A/c

By Bank A/c

By P & L A/c (Loss on sale)

By Balance c/d

2,00,000

65,000

15,000

11,00,000

13,80,000 13,80,000


17 P.T.O.

PART-C(Computerised Accounting)

19. State anyone advantage of ‘Computerized Accounting System’.

20. Name anyone DBMS software which processes the data in flexible manner.

21. What is meant by Relational Database?

22. Differentiate between generic and tailored software packages on any three bases.

23. Explain the method of ‘Codification’.

24. What is DBMS? Explain its two advantages.

25. Calculate the formula on Excel for computing the amount of (a) Dearness Allowance (b) Net

Salary (c) Tax Payable from the following information:

(a) For Dearness Allowance, Basic Salary upto ` 40,000 at 20% and at 25% above it.

(b) For Net Salary, adding Dearness Allowance to Basic Pay.

(c) For Tax payable at a uniform rate of 30%.

*****


18 P.T.O.

Studymate Solutions to CBSE Board Examination 2012-2013Series : SKS/1 Code No. 67/1/2

UNCOMMON QUESTION ONLY

8. Pass the necessary journal entries for the issue of debentures in the following cases: [3](a) ` 30,000, 12% debenture of ` 100 each issued at a discount of 5% redeemable at par.

(b) ` 60,000, 12% debenture of ` 100 each issued at a discount of 5% redeemable at ` 105.

Sol. (a) Journal

Date Particulars L.F. Debit (`) Credit (`)

Bank A/c Dr.


(Being Application money received)

28,500

28,500


Discount on issue of Debentures A/c Dr.

To 12% Debentures A/c

(Being debentures issued at a discount of 5%)

28,500

1,500

30,000

(b)


Bank A/c Dr.


(Being Application money received)

57,000

57,000

Denture application Dr.

Loss on issue of Debentures A/c Dr.


To Premium on Redemption A/c

(Being debentures issued at a redeemable of

premium of 5%)

57,000

6,000

60,000

3,000

10. Dhara Construction Ltd. Had an outstanding balance of ` 7,50,000, 8% debentures of ` 150

each redeemable at a premium of 5%. According to the terms of redemption, the company

redeemed 25% of the above debentures by converting them into shares of ` 10 each at a premium of 50%. Record the entries for redemption of debentures in the books

of Dhara Construction Ltd. [3]


19 P.T.O.

Sol. (a) Journal of Dhara Constructions


8% Debentures A/c Dr.

Premium on redemption A/c Dr.

To Debenture holders A/s

(Being debentures & premium on redemption

due to debenture holder)

1,87,500

9,375

1,96875

Debenture holders A/c Dr.


To Securities Premium reserve A/c

(Being 13,25 shares of ` 10 each issued at a

premium of ` 5 per share)

1,96,875

1,31,250

65,625

Working note No. 1

Numbers of Share =1,96,875

13,12515

share .


20 P.T.O.

Studymate Solutions to CBSE Board Examination 2012-2013

Series : SKS/1 Code No. 67/1/3UNCOMMON QUESTION ONLY

9. Pass the necessary journal entries for the issue of debentures in the following case:

(a) ` 40,000, 12% debentures of ` 100 each issued at a premium of 5% redeemable at par.

(b) ` 70,000, 12% debentures of ` 100 each issued at a premium of 5% redeemable at

` 110.

Sol. Journal


(a) Bank A/c Dr.

To Debenture Application & Allotment A/c

(Being debenture application money received)

42,000

42,000

Debenture Application & Allotment A/c Dr.



(Being debenture issued at premium,

redeemable at par.)

42,000

40,000

2,000

(b) Bank A/c Dr.

To Debenture Application & Allotment A/c

(Being Debenture application money received)

73,500

73,500

Debenture Application & Allotment A/c Dr.

Loss on issue of Debenture A/c Dr.

To 12% Debenture A/c


To Premium on issue of Debenture A/c

(Being debentures redemption at premium &

redeemable at premium)

73,500

7,000

70,000

3,500

7,000

10. Forex Construction Ltd. Has an outstanding balance of ` 22,00,000, 9% debentures of ` 100

each redeemable at a premium of 15%. According to the terms of redemption, the company redeemed 40% of the above debentures by converting them into shares of ` 10 each at a

premium of 60%. Record the entries for redemption of debentures in the books of Forex

Construction Ltd.


21 P.T.O.

Sol. Journal


9% Debenture A/c Dr.

Premium on Redemption of Debenture A/cDr.

To Debenture A/c

(Being amount due to debenture holders)

8,80,00

1,32,000

10,12,000

Debenture holder A/c Dr.


To Securities Premium A/c

(Being share issued)

10,12,000

6,32,500

3,79,500

No. of Shares to be issued

10,12,00063,250

16

``

`Shares.

15. Asgar, Chaman and Dholu are partners in a firm. Their capital accounts stood at

` 6,00,000; ` 5,00,000 and ` 4,00,000 respectively on 1st April, 2011. They shared profits and

losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ 7,000 per month and ` 10,000 per quarter respectively as

per the provision of the partnership deed.

Dholu’s share of profit (excluding interest on capital but including salary) is guaranteed at a

minimum of ` 1,10,000 p.a. Any deficiency arising on the account shall be met by Asgar. The

profits for the year ended 31st March, 2012 amounted to ` 4,24000. Prepare Profit and Loss

Appropriation Account for the year ended 31st March, 2012. [6]

Sol.

P & L Appropriation Account

Dr. for the year ended 31.03.2012 Cr.

Particulars Amount (`) Particulars Amount (`)To Int. on Capital

Asgar 48,000

Chaman 40,000

Dholu 32,000

To Partner’s salary

Chaman 84,000

Dholu 40,000

To Partner’s capital A/c

Asgar 78,222

(-) Def. to Dholu 11,333

Chaman

Dholu 58,667

(+) Def.from Asgar 11,333

1,20,000

1,24,000

66,889

39,111

70,000

By Net Profit 4,20,000

4,20,000 4,20,000


22 P.T.O.

16. The Balance Sheet of Sadhna, Mohit and Rohit who were sharing profits in the ratio of 1 : 2 : 3

as on 31st March 2012 was as follows: [6]

Liabilities Amount (`) Assets Amount (`)General Reserve

Bills Payable

Loan

Capital : Sadhna : 75,000

Mohit : 1,00,000

Rohit : 1,50,000

60,000

20,000

24,000

3,25,000

Cash

Stock

Investments

Land & Building

Rohit’s loan

36,000

85,000

58,000

2,20,000

30,000

4,29,000 4,29,000

Rohit died on September 1st , 2012. The partnership deed provided for the following on the death of partner:

(a) Goodwill of the firm be valued at two yeas purchase of average profits for the last three

years.

(b) Rohit’s share of profit or loss till the date of death was to be calculated on the basis of

sales. Sales for the year ended 31st Mach, 2012 amounted to ` 6,00,000 and that from

1st April to 1st September 2012 to 3,50,000. The profit for the year ended 31st March,

2012 was calculated as ` 1,50,000.

(c) Interest on capital was to be provided @ 8% p.a.

(d) The average profits of the last three years were ` 72,000.

(e) According to Rohit’s will, the executors should donate her share to ‘Matri Chaya-an

orphanage for girls’.

Prepare Rohit’s Capital Account to be rendered to her executor. Also identify the value being

highlighted in the question.

Ans. Dr. Rohit’s Capital Account Cr.

Particulars Amount Particulars Amount

To Rohit’s Executors A/c 3,30,750 By Bal. b/d

By Rohit’s Loan

By General Reserve

By Int. on Capital

By P & L Suspense A/c

By Sadhna’s Capital A/c

By Mohit’s Capital A/c

1,50,000

30,000

30,000

5,000

43,750

24,000

48,000

3,30,750 3,30,750

19. Under which type of activity will you classify ‘Refund of Income Tax received’ While preparing

the Cash Flow Statement? [1]

Sol. Operating Activity.


23 P.T.O.

20. State with reason whether ‘Purchase of fixed asset on long term deferred payment’ would result

in inflow, outflow or no flow of cash. [1]

Sol. No. flow of cash since both the aspects in this transaction are long term. (If in case any down

payment or installment is paid during the year there will be outflow to the extent of payment

made).

21. State one advantage of Financial Statements Analysis. [1]

Sol. Helpful in assessing the earning capacity

OR

Judging the managerial efficiency.

22. Under what heads and sub-heads the following items with appear in the Balance Sheet of a

company as per revised schedule VI Part-I of the Companies Act 1956.

(i) Mining Rights

(ii) Encashment of employees earned leave payable on retirement

(iii) Vehicles. [3]

Sol.

No. Items Headings Subheading

(i) Mining Rights Fixed Assets Intangible Assets

(ii) Encasement of employees

earned leave

Long term borrowings Long term provision

(iii) Vehicles Fixed Assets Tangible

*****

Documents

CBSE Accountancy Solution