ACCOUNTANCY

XII

KENDRIYA VIDYALAYA NEW CANTT. ALLAHABAD

CLASS: XII MM: 100SUBJECT: ACCOUNTANCY (055) MAX. TIME: 3 HOURS

General Instructions: 1. This question paper contains two sections A and B. 2. Both the parts are compulsory for all. 3. All parts of questions should be attempted at one place. 4. Marks are given at the end of each question. 5. 15 minutes time has been allotted to read this question paper. The students will read the question paper only and will not write any answer on the answer-book during this period.

1. Name the asset that is not transferred to the debit side of Realisation Account, but brings certain amount of cash against its disposal at the time of dissolution of the firm. (1)

2. A, B and C are partners in 3: 2: 1. C is guaranteed that his share of profit will not be less than Rs. 1, 40,000. Any deficiency will be borne by A and B in the ratio of 2:1. Firm’s profit was Rs 4, 80,000. Share of A will be:

(a) Rs. 2, 00,000 (b) Rs. 2, 20,000(c) Rs. 2, 40,000 (d) Rs. 2, 04,000 (1)

3. What is the minimum lock-in-period for shares allotted by a company under the Employee Stock Option Plan? (1)

4. In case of insufficient profits to pay the interest on partners’ capital, the available profit will be distributed in:

a) Ratio of Partners’ Capitalb) Profit Sharing Ratio of Partnersc) Equal Ratiod) Ratio of Interest on Capital (1)

5. Which of the following is not correct for the creation of Debenture Redemption Reserve?a) It should at least be equal to 25% of the debentures issued.b) It should be created before starting the redemption.c.) It is compulsory for privately placed debentures of (NBFC) Non-banking Financial Companies and other Financial Institution (e.g. LIC, UTI etc.).d) It is obligatory only for non-convertible debentures and non-convertible portion of partly convertible debentures. (1)

6. Sai, Sarthak and seema are partners. The firm had given a loan of 10,000 to Sarthak. They ₹decided to dissolve the firm. In the event of dissolution, How the loan will be settled ? (1)

7. Gullu Ltd. Issued 5,000 shares of 100 each payable 20 on application [on 01.05.2012]; 30 on₹ ₹ ₹ Allotment [01.01.2013; 20 on 1₹ st call [01.07.2013] and the balance on final [2nd call] [01.02.2014]. Shreyansh, a holder holding 500 shares did not pay the 1st call on the due date. The 2nd call was made and Shreyansh paid the 1st call amount along with the 2nd call.. All sums due were received. How

much the total amount received on 1st February . (1)

8. X, Y and Z are partners sharing profits in the ratio of 2:2:1.Y retires and his share is entirely taken by Z. Calculate the new ratio. (1)

9. R Sugars Ltd. purchased assets of Dhampur Sugars. Ltd. for Rs. 8, 40,000 and took over the liabilities (creditors) of Rs. 80, 000 for an agreed purchase consideration of Rs. 8, 00,000. R Sugars Ltd. issued 12% debentures of Rs.100 each at 25% premium for purchase consideration. Pass necessary Journal entries in the books of R Sugars Ltd. (3)

10. P and Q were partners in a firm sharing profits in 3:2 ratio. They admitted R and S as new partners. The new profit sharing ratio will be 2:2:1:1. P and Q brought Rs.2, 75,000 each for their respective capitals and also necessary amount of premium for goodwill in cash. Goodwill was valued at Rs.2, 40,000 for the firm. Calculate sacrificing ratio of P and Q and pass necessary Journal entries for the above transactions in the books of the firm. (3)

11. A and B were sharing profits in the ratio of 3 : 2. They decided to admit C into the partnership for 1/6th share of the future profits. Goodwill, valued at 4 times the average super profits of the firm, was Rs.18,000. The firm had Assets worth Rs.15,00,000 and Liabilities Rs.12,00,000. The normal earning capacity of such firms is expected to be 10% p.a. Find the Average Profits/Actual Profits earned by the firm during the last 4 years. (3)

12. State any three purposes for which securities premium reserve can be utilized. ( 3)

13. Fill in the missing figures in the following journal entries: (4)

Date Particulars L.F. Dr.(Rs.) Cr(Rs.)2013

April 1Bank A/c Dr. To 6% Debentures Appl.& Allotment A/c (Application money received on 2,000, 6% debentures of Rs 100 each)

…………….……………

April 1 6% Debentures Appl.& Allotment A/c Dr.……………………………………………………. Dr. To 6% Debenture A/c To ………………………………………………………. (Issue of 2,000, 6% debentures of Rs. 100 each at par, repayable at a premium of 10%)

…………… ……………

…………… ……………

2014April 30

…………………………………………………………. Dr. To Bank A/c(Investment made @ 15% of the face value of debentures to be redeemed)

…………..………….

2015March 31

Own Debenture A/c Dr. To …………………………………………..(Purchase of own debenture for cancellation)

…………………..

March 31 6% Debenture A/c Dr. To Own Debenture A/c To Profit on Cancellation of Debenture A/c (Cancellation of own debentures)

40,000……….. 2,500

March 31 Profit on Cancellation of Debenture A/c Dr.………………………………………………………. Dr. To ……………………………………………(Profit on cancellation of debenture transferred to ……………………….Reserve A/c)

………………

……….

14. Telco Ltd. forfeited 1,000 shares of Rs.10 each, issued at par, for the non-payment of the first call of Rs.2 per share. The final call of Rs.3 per share has not yet been made. Subsequently, 400 of these shares were reissued at Rs.5 per share, Rs.7 paid-up, and 600 reissued at Rs.7 per share fully paid. Journalise the transactions of forfeiture and reissue of shares. (4)

15. On 1st April, 2014, Ashok Ltd. was formed with an authorized capital of Rs. 1, 00, 00,000 divided into 2, 00,000 equity shares of Rs. 50 each. The company issued prospectus inviting applications for 1, 50,000 shares. The issue price was payable as Rs.15 on application, Rs. 20 on allotment and Balance on first and final call. The issue was fully subscribed and the company allotted shares to all the applicants. The company did not make the call during the year.

The company also issued 5,000 shares of Rs.50 each fully paid up to the vendor for purchase of office premises. Show the presentation of Share capital in the Balance Sheet of the company as per Schedule-VI (Revised). Also prepare ‘Notes to Accounts’. (4)

16. A is a partner in a firm. During the year ended 31st March,2014,A’s drawings were: Rs.1st June 10001st August 7501st October 1,2501st December 5001st February 500

Interest on drawings is charged @10% p.a. Calculate interest on drawings of A for the year

ended 31st March 2014. (4)

17. A and B share profits and losses in the ratio of 3:2.They have decided to dissolve the firm . Assets and external liabilities have been transferred to Realisation A/C. Pass the journal entries to effect the following:

(a) Bank loan of Rs. 12,000 is paid off.(b) A was to bear all expenses of realization for which he is given a commission of Rs.400.(c) Stock worth Rs. 1,600 was taken over by B at Rs. 1,200.(d) An unrecorded computer realized Rs. 7,000 (4)

18. Ram and Mohan are partners in a firm. They admitted Rakhi as a partner without capital for 1/3rd share in profits of the firm. She is blind by birth but having good management qualities. The new partnership agreement provides for the following:

(i) 10% of the trading profit will be donated to Prime Minister’s Relief Fund. (ii) 5% of the trading profit will be donated to the National Blind Relief Fund. (iii) Products will be sold at a discount of 15% on Maximum Retail price to the people living

below poverty line. (iv) New retail shops will be opened in the Naxal affected areas of the country. (v) New jobs of salespersons will be reserved for the girls belonging to Scheduled Castes and

Scheduled Tribes.

The trading profit of the firm for the year ended 31.3.2012 was Rs.10, 00,000. Identify any four values considered by Ram, Mohan and Rakhi while preparing the new partnership deed and prepare the ‘Profit & Loss Appropriation Account’ of Ram, Mohan and Rakhi for the year ended 31.3.2012. (6)

19. On 31st March, 2013, after the closing of books of accounts, the Capital Accounts of A, B and C stood at Rs.24,000; Rs.20,000 and Rs.12,000 respectively. The profit for the year Rs.36, 000 was

distributed equally. Subsequently, it was found that interest on capital @ 5% p.a. had been omitted. The profit sharing ratio was 2:2:1. The partners agreed to pass a single adjustment entry to adjust their capital accounts. After the flood in Uttarakhand, all partners decided to help the flood victims personally. State two values which the partners wanted to communicate to the society. (6)

20. On 31.12.2013, the Balance Sheet of X, Y and Z who were partners in a firm was as under:Liabilities Amount Assets Amount

Creditors Reserve Fund Capitals: X 15,000 Y 10,000 Z 10,000

25,00020,000

35,000

BuildingInvestments Debtors Bills Receivable Stock Cash

26,000 15,000

15,000 6,000

12,000 6,000

Total 80,000 Total 80,000

The partnership deed provides that the profits should be shared in the ratio of 2:1:1 and in the event of death of a partner, his executors will be entitled to be paid out: (i) The capital to his credit at the date of last Balance Sheet. (ii) His proportion of Reserve at the date of last Balance Sheet. (iii) His proportion of profits to the date of death based on the average profit of the last three

completed years plus 10%. (iv) By way of goodwill, his proportion of the total profits for the three preceding years. (v) The net profits for the last 3 years were: 2011 Rs.16,000; 2012 Rs.16,000; 2013Rs.15,400.

Z died on 1st April 2014. He had withdrawn Rs.5,000 to the date of his death. The investments were sold at par and Z’s executors were paid off. Prepare the Z’s Capital Accounts. (6)

21. (a) Calculate the value of goodwill at 2 year’s purchase of the average profits of the last 3 years. The profit for the first year was Rs. 50,000, for second year twice the profit of first year and for the third year one half times the profit of the second year. (b) A,B and C are partners sharing profits in the ratio of ½: 1/3: 1/6. C retires and A and B decide to share future profits equally. Calculate the gaining ratio. ( 3+3=6)

22. (a) A Ltd. purchased for cancellation Rs. 25000 of its 12% Debentures at Rs. 92 each. The brokerage being 1%. Journalise. Face value per Debenture is Rs.100.

(b) A Ltd. forfeited 1000 shares of Rs.10 each, Rs. 8 paid, for non-payment of final call of Rs.2 per share. Out of these, 400 shares were re-issued for Rs. 7 per share as fully paid. Journalise. ( 3+3=6)

23. Ashu limited invited applications for issuing 2, 00,000 Shares of Rs 10 each .The amount was payable as follows:-

On Application Rs 3 per shareOn allotment Rs 5 per shareOn first and final call Rs 2 per share

Applications were received for 3, 00,000 shares and pro- rata allotment was made to all the applicants. Sahib who was allotted 3,000 shares failed to pay the allotment and call money. His shares were forfeited.Out of the forfeited shares 2,500 shares were reissued as fully paid up @Rs. 8 per share.

Pass the Journal entries of forfeture to record the above transactions and prepare balance sheet 6

24. The balance sheet of P and J who share profits and losses in the ratio of 3: 2 on 31.3.2010 was as follow:

Liabilities Amount Assets AmountSundry Creditors Workmen’s Compensation Fund General Reserve Capitals : P 60,000 J 40,000

28,000

12,00020,000

1,00,000

Cash at BankDebtors 65,000 Less : Provision 5,000

Stock Investments Patents

10,000

60,00030,00050,00010,000

Total 1,60,000 Total 1,60,000

They decided to admit K on 1.4.2010 for 1/4th share on the following terms: (a) K shall bring Rs.20,000 as his share of premium of goodwill. (b) The unaccounted accrued income of Rs.1,000 be provided for. (c) The market value of investment was Rs.45,000. (d) A debtor whose dues of Rs.5,000 were written off as bad debts, paid Rs.4,000 in full settlement. (e) A claim of Rs.3,000 on account of workmen compensation to be provided for. (f) Patents are overvalued by Rs.2,000. (g) K to bring in capital equal to 1/4th of the total capital of the firm after all adjustments. Prepare Revaluation A/c, Partners Capital A/c of new firm. Also identify the values being highlighted in the question by creating workmen compensation fund by the partners and payment of bad debts by the debtors. (8)

25. Karan Limited invited applications for issuing 2,00,000 Equity shares of Rs.100 each at a premium of Rs.60 per share. The amount was payable as follows: On application Rs.30 per share (including premium Rs.10) On allotment Rs.70 per share (including premium Rs.50) On first and final call the balance amount. Applications for 1,90,000 shares were received. Shares were allotted to all the applicants and the Company received all money due on allotment except Sharma who had been allotted 1,000 shares,

and his shares were immediately forfeited. Afterwards first and final call was made. Verma did not pay the first and final call on his 2,000 allotted shares. His shares were also forfeited. 50% of the forfeited shares of both Sharma and Verma were reissued for Rs.90 per share fully paid up.

Pass necessary journal entries. (8)

26. Shreen, Jacob and Kanishka were partners sharing profits as 5: 3:2,respectively. On

March 31st , 2013 their Balance Sheet was as follows :Liabilities Amount Assets Amount

CreditorsProvident FundInvestment Fluctuation FundCapitals :Shreen 50,000Jacob 40,000Kanishka 25,000

28,00010,00010,000

1,15,000

CashDebtors 47,000Less : Provision D Debts 3,000StockInvestmentGoodwillProfit & Loss A/C

34,000

44,00015,00040,00020,00010,000

1,63,000 1,63,000

On this date, Jacob retired and Shreen and Kanishka agreed to continue on the following terms :(a) The goodwill of the firm was valued at Rs 51,000.(b) There was a claim for workmen’s compensation to the extent of Rs 6,000. (c) Investment were brought down to Rs 15,000.(d) Provision for bad debts was reduced by Rs 1,000.(e) Jacob was paid Rs 10,300 in cash and the balance was transferred to his loan account payable in two equal installments together with interest @ 12% p.a.Prepare Revaluation A/C, Partner’s capital Accounts and Jacob’s loan A/C till the loan is finally paid off.

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