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SECOND PRE-BOARD EXAMINATION(2015-2016)

CLASS: XII MAX MARKS: 80

SUBJECT: ACCOUNTANCY TIME ALLOWED: 3HOURS

General Instructions: i) All parts of the questions should be attempted at one place.

ii) Write down the question no. before attempting it.

iii) Marks will be deducted for not maintaining accounting formats.

iv) 15 Minutes extra time has been allotted to read this question paper.

v) Internal choice is provided only in 8 marks questions.

vi) This question paper contains three parts Part-A, Part-B and Part-C.

vii) Part – A is compulsory for all students. Students should attempt either Part-B or Part-C.

PART-A Partnership & company accounts Partnership & company accountsAccounting for Partnership Firms and

Companies

1. What are the methods of maintaining capital account of partners?

(a) Fixed capital method (b) Fluctuating capital method

(c) Both (a) and (b) (d) None of these 1

2. M and S are partners in a firm. State whether the claim is valid if the partnership agreement is

silent in the following matter M is an active partner . He wants a salary of Rs. 10,00,000 per year.

1

3. Piyush and Deepika are partners sharing profits in the ratio 7:3 . They admit

Seema as a new partner. The new Ratio being 5:3:2 .calculate sacrificing Ratio. 1

4. All the partners want to dissolve the firm. Vinod wants that his loan of

Rs. 20,000 must be paid off before the payment of capitals to the partners. But Amit wants that

capitals must be paid before the payment of vinod’s loan comment. 1

5. X,Y and Z are partners sharing profits in the ratio of 4:3:2. They agree

to calculate deceased partner’s share of profit for his life time during the current year

on the basis of last three years’ profit. Z dies on 31st march,2014. The profits for the year

2011,2012,2013 were Rs.30,000 : Rs. 33,000 and Rs.39000 respectively.

Calculate Z’s share of profit . 1

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6. A,B and c are partners , they share profit in the ratio of 4:3:2 . B retires. Goodwill was valued Rs.

10,800 . Up to now there has been no Goodwill Account in the books. In future A and C will share

profits and losses in the ratio of 5:3 . What journal entry will be passed regarding goodwill? 1

7. A, B and C entered in to partnership on 1st April, 2014 to share profits and losses in the ratio of

4:3:3. A, however, personally guaranteed that C’s share of profit after charging interest on Capital @ 5%

p.a. would not be less than 40,000 in any year. the Capital contributions were : A,Rs. 3,00,000 ; B, Rs.

2,00,000 and C, Rs. 1,50,000 . The profit for the year ended on 31st march, 2015 amounted to Rs. 1,

60,000. Show the Profit & Loss Appropriation Account. 3

8. X Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After the final accounts

have

been prepared , it was discovered that interest On drawings @ 5% p.a . had not been taken in to

consideration . The drawings of the partners were : X Rs.15,000; Y Rs. 12,600 ; z Rs. 12,000 .

show the adjustment statement and pass necessary journal entry. 3

9. X,Y and Z share profits and losses in the ratio of 5: 3 : 2 respectively. Y retires and X and Z decide

to share future profits and losses in the ratio of 3 : 5 at the time of Retirement of Z , stock (book

value Rs.60,000) is to be reduced by 40% and Furniture (book value Rs.50,000) is to be reduced to

40% Pass necessary Journal entries. 3

10. State any three purposes for which Securities Premium can be utilized 3

11. Mercury Ltd issued fully paid equity shares of Rs. 80 each at a discount Of Rs. 5 per share for the

Purchase of running business from Pluto Ltd for a sum of Rs. 30,00,000. The assets and liabilities

Consisted of the following

Furniture Rs. 10, 00,000

Motor car Rs. 14, 00,000

Stock Rs. 6, 00,000

Machinery Rs. 12, 00,000 and

Creditors Rs. 10, 00,000

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

Mercury Ltd. 4

12. Gopal Ltd. purchased 5,000 of its own 8% Debentures of Rs.1, 000 each at Rs. 987 per

Debenture. It also purchased another lot of 600 debentures of the same series at Rs. 986 per

Debenture. The debentures were purchased for the purpose of cancellation. Record necessary

Journal entries in the books of the company. 4

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13. Pass the necessary journal entries for the following transactions at the time of dissolution of the firm

i) Loan of Rs. 10,000 advanced by a partner to the firm was refunded.

ii) Mars, a partner, takes over an unrecorded asset at Rs. 3,000.

2

iii) Undistributed balance (debit) of Profit and loss account Rs.18, 000. The firm has three

Partners Mars, Jupiter and Saturn.

iv) A Partner, Sun agreed to pay a creditor of Rs. 15,000.

v) Realization expenses of Rs. 5,000 were to be borne by a partner.

vi) Dissolution expenses were Rs. 8,000 out of the said expenses, Rs.3, 000 were to

be borne by firm and the balance by a partner. 6

14. The balance sheet of R, O and N, who were sharing profit in the ratio of 3:3:4 as at

31st March 2015

Balance Sheet As at 31st March, 2015

Liabilities Amt (Rs.) Assets Amt (Rs.)

Reserve

Bills Payable

Loan

Capital A/cs

R 1,20,000

O 1,00,000

N 80,000

_________

20,000

10,000

24,000

3,00,000

Cash in Hand

Stock

Investments

Building

R’s Loan

32,000

88,000

94,000

1,20,000

20,000

3,54,000 3,54,000

R died on 30th

June, 2015. The Partnership deed provided for the following on the death of a partner

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

ii) R’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, 2015 amounted to Rs. 8, 00,000 and that from 1

st April to 30

th

June, 2015 to Rs. 3, 00,000 and the profit for the year ended 31st March 2015 Rs. 2, 00,000.

iii) Interest on Capital was to be provided 6% per annum.

iv) The average profits of the last three years were Rs. 84,000.

According to R’s will, the executors should donate her share to an Orphanage Prepare R’s capital

Account to be rendered to his executor. Also identify the value being highlighted in the question. 6

15. Alfa Ltd. Issued 10,000; 9% Debentures of Rs. 100 each. Pass necessary Journal entries for issue of

debentures in the following cases :

i) When debentures are issued at par and redeemable at par.

ii) When debentures are issued at par and are redeemable at premium of 10%.

iii) When debentures are issued at a premium of 25% to the vendors for the purchase of machinery

worth Rs. 1,25,000. 6

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16. A B Ltd. Invited applications for issuing 1,00,000 equity shares of Rs. 10 each . the amount was

payable as follows :

On Applications Rs. 3 per share ;

On Allotment Rs. 2 per share ; and

On First and final Call Rs. 5 per share.

Applications for 1,50,000 shares were received and pro-data allotment was made to all applicants

as follows :

Applicants for 80,000 shares were allotted 60,000 shares on pro-rata basis: and

Applicants for 70,000 shares were allotted 40,000 shares on pro-rata basis;

Sudha to whom 600 shares were allotted out of the group applying for 80,000 Shares failed to

Pay the allotment money. Her shares were forfeited immediately after allotment.

Asha who had applied for 1,400 shares out of the group applying for 70,000 shares failed to pay the

first and final call. Her shares were also forfeited. Out of the forfeited shares 1,000 were reissued @

Rs. 8 per share fully paid up. The Reissued shares included all the forfeited shares of sudha.

Pass necessary journal entries to record the above transactions. 8

OR

Paliwal Exports Ltd. With a share capital of Rs. 1,00,000 divided into 2,000 Shares of Rs. 50 each

offers the shares to the public as under : Rs. 15 per share payable

on application : Rs 10 per share Payable

on allotment : Rs . 15 per share payable

on 1st call ; and Rs. 10 per share payable

balance on 2nd

call.

Share –holder ‘A’ who holds 30 shares has paid only the application money.

Share –holder ‘B’ who holds 20 shares has paid only the application money On 20 shares and

allotment money on only 10 shares. He was not paid on any other calls.

Share –holder ‘C’ who holds 18 shares has paid application, allotment money.

Share –holder ‘D’ who holds 5 shares has paid application, allotment and First money.

Share –holder ‘E’ who holds 3 shares has paid application, allotment and First call money in full and

second call money on only 2 shares.

The company forfeits the shares of the above shareholders who have not paid the arrears.

Journalize the above transactions including entries relating to Bank in the books of Paliwal

Exports Ltd. 8

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17. A, B and C trading in partnership and sharing profits and losses in the proportion of 1/2, 1/3 and

1/6 respectively, desires to keep a working Partner when their balance sheet stood as follows:

Liabilities Amount Assets Amount

Creditors

Capital A/cs:

A 5,70,000

B 3,20,000

C 1,60,000

-------------

Rs.

50,000

10,50,000

Cash in hand

Debtors

Stock

Machinery

Land & Building

Rs.

8000

2,52,000

2,90,000

70,000

4,80,000

11,00,000

--------------------

11,00,000

-----------------

They agreed to take D in to partnership qnd give him a share of ten paise in the rupee, on the following

terms:

a) That D should bring in Rs. 30,000 as goodwill and Rs.1, 28,000 as his capital.

b) That machinery is depreciated at 12 %

c) That stock to be depreciated by 10%

d) That a reserve of 5 % be created for doubtful debts

e) That the value of land & building be brought upto Rs. 6, 20,000

f) That after making the above adjustments, the capital accounts of old partners

(Who continue to share in same proportions as before), be adjusted on the basis of the proportion

of D’s capital to his share in business ( i.e. , actual cash to be paid off or to be brought in by the old

Partners, as the case may be) show revaluation a/c, partners capital a/c balance sheet of the firm as

Newly constituted, cash account.

OR

A, B and C were in a partnership sharing profits in proportion to their capitals. Their balance sheet on

31-3-2014 was as follows.

Liabilities Amount Assets Amount

Creditors

Reserve

A Capital A/c

B Capital A/c

C Capital A/c

Rs.

15,600

6,000

90,000

60,000

30,000

Cash

Debtors 20,000

Less Provision 400

Stock

Machinery

Buildings

Rs.

16,000

19,600

18,000

48,000

1,00,000

2,01,600 2,01,600

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On the above date B Retired owing to ill health and the following adjustments were agreed upon :

a) Buildings be appreciated by 10% ;

b) Provision for doubtful debts be increased to 5% of debtors ;

c) Machinery be depreciated by 15 % ;

d) Goodwill of the firm be valued Rs. 36,000 & be adjusted in to the capital Accounts of A & C who will

share profits in future in the ratio of 3:1 ;

e) A provision be made for outstanding repairs bill of Rs.3,000 ;

f) Included in the value of creditors is Rs. 1800 for an outstanding legal claim , which is not likely to araise ;

g) out of insurance premium paid Rs. 2,000 is for the next year .The amount was debited to P & L A/c;

h) The partners decide to fix the capital of the new firm Rs. 1,20,000 in the profit sharing Ratios and

i) B to be paid Rs. 9,000 in cash and the balance to be transferred to his Loan Account. Prepare

Revaluation Account, Partner’s Capital Account & the Balance sheet of the new firm after B’s

Retirement. 8

PART –B

ANALYSIS OF FINANCIAL STATEMENTS

18. Mention the net amount of ‘source’ or ‘Use’ of cash when fixed asset (having book value of Rs. 15,000)

is sold at a loss of Rs. 5,000. 1

19. Why is Cash Flow Statement prepared? 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 III Part I of the Companies Act, 2013:

(i) Balance of the Statement of Profit and Loss.

(ii) Loan of Rs. 1, 00,000 payable after three years.

(iii) Short-term deposits payable on demand.

(iv) Loose Tools.

(v) Trade marks

(vi) Land

(vii) Cash at Bank.

(viii) Trade Payables. 4

21. (a) The ratio Current Assets (Rs.3,00,000) to Current Liabilities (Rs.2,00,000) is 1.5 : 1.

The accountant of the firm is interested in maintaining a Current Ratio of 2:1, by paying off a part of

The current liabilities. Compute the amount of current liabilities that should be paid, so that the

Current ratio at the level of 2:1 may be maintained.

(b) Total Debts of Rimzim Ltd. are Rs.3, 90,000, Long-Term Debts are Rs.3, 00,000 and working capital

is Rs.1, 80,000. Calculate current ratio. 4

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22. Prepare Comparative Statement of Profit and Loss from the following: 4

Particulars Note

No

31st March,2013

(Rs)

31st

March,2012

(Rs)

Reserve from Operations

Other Income (% of Revenue from Operations)

Expenses (% of Opening Revenue)

30,00,000

15%

60%

20,00,000

20%

50%

23. Balance Sheets of K S R Ltd. as at 31st March, 2014 and 31

st March, 2013 were:

Particulars 31st March,2014

(Rs.)

31st March,2013

(Rs.)

I. EQUITY AND LIABIITIES

1. Shareholder’s Funds

(a) Share Capital

(b) Reserves and Surplus : Surplus, i.e. Balance in

Statement of Profit and Loss

2. Current Liabilities

Short-term Provisions : Proposed Dividend

Total

10,00,000

2,50,000

50,000

13,00,000

7,00,000

1,50,000

40,000

8,90,000

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II. ASSETS

1. Non Current Assets

Fixed Assets (Tangible) : Plant and Machinery

2. Current Assets

(a) Inventories (Stock)

(b) Cash and Cash Equivalents

TOTAL

8,00,000

1,00,000

4,00,000

13,00,000

5,00,000

75,000

3,15,000

8,90,000

Additional Information:

1. Rs. 50,000 depreciation has been charged to Plant and Machinery during the year 2014.

2. A piece of Machinery costing Rs. 12,000 (book value Rs.5.000) was sold at 60% profit on book value.

Prepare Cash Flow Statement. 6

*************

PRE-BOARD EXAMINATION (2015-2016)

CLASS: XII MAX MARKS: 80

SUBJECT: ACCOUNTANCY TIME ALLOWED: 3HOURS

ANSWER KEY PART-A

Accounting for Partnership Firms and Companies

QN Expected Answer Marks

1 (c) Both (a) and (b) 1

2 If the partnership agreement is silent then M’s claim is not valid. 1

3 Old ratio-New ratio = Sacrificing Ratio 1:0 is the sacrificing ratio

1

4 According to the partnership Act,at the time of dissolution of a firm liabilities

must be paid in the following preference:

i) Outside liabilities

ii) Partner’s Loan and

iii) Partner’s Capital

Therefore , vinod is correct and his loan must be paid of first, i.e., before the

Repayment of capital.

1

5 Total profits of 3 years = Rs.30,000 + Rs.33,000 + Rs.39,000= Rs.1,02,000.

Therefore 3 month’s share (jan.1 to march 31, 2014 ) of profit = Rs.34,000 x 3/12=

Rs.8,500 So Z’s share of profits = Rs. 8,500 x 2/9= Rs.1,889.

1

6 A’s Capital Account Dr. Rs.1,950

B’s Capital Account Dr. Rs.1,650

To B’s Capital Account Rs.3,600

(For goodwill adjusted on B’s retirement by debiting remaining partner’s capital

Account in the ratio of their gain i.e., 13:11)

1

7 Profit & Loss Appropriation Account profit for the year ending on 31st march , 2015

Particulars Amount Particulars Amount

To Interest on Capital:

Rs.

A

15,000

B

10,000

C

7,500

----------

A( 51,000 -1,750)

49,250

B (1,27,500x3/10)

38,250

Rs.

32,500

1,27,500

By profit before

Appropriations

Rs.

1,60,000

1,60,000

1,60,000

3

C (38,250 + 1,750)

40,000

8 Statement Showing the Adjustment to be made

Particulars X Y Z

Amount which should have been

decided by way of interest on

drawings

Amount already debited by way of

profits now credited

Difference to be adjusted to

Partner’s

Current A/c

Rs.

750

(Dr.)

990

(Cr.)

Rs.

630

(Dr.)

660

(Cr.)

Rs.

600

(Dr.)

330

(Cr.)

240 (Cr.) 30 (Cr.) 270(Dr.)

Journal Entry

Date Particulars Dr. Cr.

Z’s Capital A/c

Dr.

To X’s Capital A/c

To Y’s Capital A/c

( Interest on capital omitted , now

adjusted)

Rs.

270

Rs.

240

30

1.1/2

+

1.1/2

=3

9 Journal

Date Particulars L.F

.

Dr. (Rs) Cr. (Rs)

Revaluation A/c .

Dr.

To Stock A/c (Rs. 60,000 X 40/100)

To Furniture A/c (Rs . 50,000 X 60%)

(Being the decrease in value of assets

recorded)

X’s Capital A/c

Dr.

Y’s Capital A/c

54,000

27,000

16,200

10,800

24,000

30,000

54,000

1 1/2+1

1/ 2 = 3

Dr.

Z’s Capital A/c

Dr.

To Revaluation A/c

(Being the Loss on Revaluation transferred

to partners

In their old ratio)

10 Utilization of Securities Premium

i) Issuing fully paid bonus shares to the members,

ii) Writing off preliminary expenses of the company

iii) Writing off the expenses or the commission paid or discount allowed

on any issue of shares or debentures of the company ,

iv) Providing for the premium payable on the redemption of redeemable

preference shares or of debentures , or

v) in purchasing its own shares (buy –back)

3

11

Date

Particulars

L

F

Amt (Dr.)

Amt (Cr.)

Furniture A/c Dr.

Motor Car A/c Dr.

Stock A/c Dr.

Machinery A/c Dr.

To Creditors A/c

To Pluto Ltd

To Capital Reserve A/c

(being assets and liabilities taken over and

excess of net assets over purchase

Consideration transferred to capital

reserve).

10,00,000

14,00,000

6,00,000

12,00,000

10,00,000

30,00,000

2,00,000

2+1=3

Pluto Ltd. Dr.

Discount on issue of Dr.

shares A/c (40,000 x5)

To Equity Share Capital A/c

(40,000 x8)

( Being 20,000 equity share @ 80 issued at

a discount of Rs. 5 )

30,00,000

2,00,000

32,00,000

12 In the books of Z Ltd.

Journal

Date Particulars (Dr.) (Rs.) (Cr.) (Rs.)

Own Debentures A/c Dr

To Bank A/c

(Being the purchase of 5000 own debentures

@987Each)

Own debentures A/c Dr

To Bank A/c

(Being purchase of 600 own debentures @Rs.986

8% Debentures A/c Dr

To Own Debentures A/c

To Gain (Profit) on Cancellation of Own Deben

Tures A/c

(Being the cancellation of 5,600 own debentures) of t

Gain (Profit) on Cancellation of Own Deben

Tures A/c Dr

To Capital reserve A/c

(Being the transfer of Gain (Profit) on redemption of

debentures to Capital reserve)

49,35,000

5,91,000

56,00,000

73,400

49,35,000

5,91,000

55,26,600

73,400

73,40 a0

1x4=4

13

Partner’ s Loan A/c

Dr.

To Bank A/c

( Being the partner ‘s loan discharged)

Rs.

10,000

3,000

6,000

6,000

6,000

15,000

3,000

5,000

Rs.

10,000

3,000

18,000

15,000

8,000

Mar’s Capital A/c Dr.

To Realization A/c

( Being the unrecorded asset taken away by Mars)

Mar’s capital A/c Dr.

Jupiter‘s Capital A/c Dr.

Saturn’s Capital A/c Dr.

To Profit and Loss A/c

( Being the debit balance of Profit and losses

account transferred to partner’s capital account )

Realization A/c Dr.

To Sun’s Capital A/c

(Being the creditor paid by sun to his capital account)

No entry is to be passed

Realization A/c Dr.

Partner’s Capital A/c Dr.

To Cash / Bank A/c

(Being dissolution expenses paid)

1x6=6

14 R’s Capital Account

Particulars

Amt (Rs.)

Assets

Amt (Rs.)

To R’s Loan A/c

To R’s Executor’s A/c

20,000

1,80,700

By Balance B/d

By General Reserve A/c

By O’s Capital A/c

By N’s Capital A/c

By Profit and Loss Suspense A/c (Profit)

By Interest on Capital

A/c

1,20,000

6,000

21,600

28,800

22,500

1,800

4+2=6

2,00,700 2,00,700

Values being highlighted

i) R showed responsibility and care towards under privileged sections of

the society

ii) R did his best by donating his property for the betterment of the society

and

Up liftment of poor. He sets a great example for the society to follow

Working Note

i) Calculation of R’s share of Goodwill

Average profit of last 3 years = Rs. 84,000

Goodwill of the Firm = Average Profits x Two year’s Purchase

= 84,000 x 2= Rs.1,68,000

R’s share of Good will = 1,68,000 x 3/10 = Rs. 50,400

O will contribute ( gaining ratio ) = 50,400 x 3/7 = Rs. 21,600

N will contribute ( gaining ratio ) = 50,400 x 4/7 = Rs. 28,800

ii) R share of profit from 1st April, 2015 to 30th June , 2015 ( 3 months )

sales for year ending on 31st March, 2015 = Rs. 8,00,000

Profit for year ending on 31st March , 2015 = Rs.2,00,000

Percentage of Profit on sales = 2,00,000 x 100/ 8,00,000 = 25 %

Sales from 1st April, 2015 to 30th June , 2015 = Rs. 3,00,000

Profit = 3,00,000 x 25/100= Rs. 75,000

Sudha’s share = 75,000 x 3/100 = Rs. 22,500

iii) Interest on capital = 1,20,000 x 6 /100 x 3 /12 = Rs. 1,800

Note : The balance in R’s capital account will be transferred to R’s Executor’s account

.

Donations to orphanage will be given through the executor’s account.

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

(i)

Bank A/c Dr

To Debentures Application and allotment A/c

10,00,000

10,00,000

1x6=6

CBSE Pre Board Set-II Solved QuestionPaper Class XII Accountancy

Publisher : Faculty Notes Author : Panel Of Experts

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