MAX.MARKS: 80 DURATION: 3 HOURS - Kopykitab

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1ST

PRE-BOARD EXAMINATION (2015-16)

Class: XII SUBJECT: ACCOUNTANCY

MAX.MARKS: 80 DURATION: 3 HOURS

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.

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PART –A ( (Accounting for Partnership Firms and Companies)

1. At the time of retirement of a partner, retiring partner‟s share of goodwill is adjusted in the ratio of

a) New Ratio

b) Old Ratio

c) Gaining Ratio

d) Sacrificing Ratio 1M

2.A,B and C are partners in a firm. They admitted D as new partner for 1/10 th share in this profits of the

firm.Calculate the new ratio of A, B, C and D. 1M

3.Suresh and Ganesh are partners in a firm sharing profits and losses in the ratio of 3:2. On 1st

January, 2015

Suresh advanced Rs.1,00,000 to the firm. Calculate and write a necessary journal entry for recording

interest on loan given by Suresh. The firm closes its books on 31st March, 2015. 1M

4.Nirman Ltd issued 50,000 equity shares of Rs.10 each. The amount was payable as follow:

On application Rs.3 per share

On allotment Rs.2 per share

On first and final call – the balance

2

Applications for 45,000 shares were received and shares were allotted to all the applicants. Pooja, to whom

500shares were allotted, paid her entire share money at the time of allotment. What is the rate of interest

allowed on calls-in advance as per Indian Companies Act, 2013?

a) 6%

b) 12%

c) 5%

d) 10% 1M

5.Kumar, Verma and Naresh were partners in a firm sharing profit and losses 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 in the books of the firm. 1M

6.What is Employee Stock Option Plan (ESOP)? 1M

7.Explain the provisions related to Creation of DRR and Debenture Redemption Investment as per Indian

Companies act 2013 and the companies‟ rules 2014. 3M

8.Sachin, Rahul and Dhoni are partners in a firm sharing profits and losses in the ratio of 3:2:1. Rahul‟s

share of profit is guaranteed as minimum of Rs.20,000. In case of any deficiency it will be borne by the

remainingpartners equally. The net profit for year ending 31st March, 2015 was Rs.45,000. Prepare Profit

andLossappropriationa/c. 3M

9.Janata Ltd. had an authorized capital of Rs.2,00,000 divided into equity shares of Rs.10 each. The

company offered for subscription of Rs.10,000 shares. The issue was fully subscribed. The amount was

payable on application Rs.2 per share, Rs.4 per share were payable each on allotment and call. A

shareholder holding 100 shares failed to pay the allotment money. His shares were forfeited. The company

didnotmakethefinal call. How the share capital will be presented in the company‟s balance sheet as per

ScheduleIII,PartIofthecompaniesact,2013.Also prepare Notes to Accounts for the same. 3M

10.Good Blankets Ltd is the manufacturers of woolen 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

destroyedby the recent floods. It also decided to employ 100 young persons from these villages in their

newlyestablished factory at Shimla, To meet the requirements of funds for starting its new factory, the

companyissued1,00,000 equity shares of Rs.10 each and for the balance 8% debentures of Rs.100 each at

atapremiumofRs.25eachto the Krishna Ltd, the vendors of machinery purchased for Rs.14,00,000.Pass

necessary journal entries for the above transactions in the books of the company. Also identify any one

valuewhich the company wants to communicate to the society. 3M

3

11.Singh, Sultan and David are partners in a firm sharing profits in the ratio of 2:2:1 respectively. Firm

closes its accounts on 31st March every year. Sultan died on 30

th September, 2015. There was a balance of

Rs.96,000 in Sultan‟s Capital Account in the beginning of the year. In the event of death of any partner,

thepartnership deed provides for the following:

i) Interest on capital will be calculated at the rate of 12% p.a.

ii) The executor of deceased partner shall be paid Rs.15,000 for his share of goodwill.

iii) His share of Reserve Fund which is Rs.10,000 shall be paid to his executor.

iv) His share of profit till the date of death will be calculated on the basis of sales. It is also specified

that the sales during the year 2014-15 were Rs.8,00,000. The sales from 1st April, 2015 to 30

th September,

2015 were Rs.1,50,000. The profit of the firm for the year ending 31st March, 2015 was Rs.1,00,000.

Prepare Sultan‟s Capital Account to be presented to his executors. 4M

12.Salman, Sharook and Ameer were partners in a firm. Their fixed capitals were Rs.2,00,000, Rs.3,00,000

and Rs.5,00,000 respectively. They were sharing profits in the ratio of their capitals. The firm was

engagedinthesale of ready-to-eat food packets at three different locations in the city , each being managed

byeachpartner.The outlet managed by Salman was doing more business than the outlets managed by other

twopartners.Salman requested for a higher share in the profits of the firm for which other two partners

agreed.Itwasdecidedthat the new profit sharing ratio will be 2:1:2 and its effect will be introduced

retrospectivelyforthelastfouryears. The profits of the last four years were Rs.1,00,000, Rs.1,20,000,

Rs.1,30,000andRs.1,50,000respectively.Atthe end of the day the left over unsold food packets are sent to

thenearbyoldagehomesandorphanagefreely.Showing your calculations clearly, pass a necessary adjustment

entrytogiveeffecttothenewagreemenamong the partners. Also identify any one value conveyed by the

partners. 4M

13.Aruna, Karuna and Varuna are partners in a firm sharing profits and losses in the ratio of their Capitals.

On 31st March, 2015 Aruna decided to retire from the firm and the remaining partners decided to carry on

the business. Revaluation a/c , Capital a/sc and Balance Sheet are prepared but forgot to post few items in

these accounts. You are required to complete these below given accounts/statement by relevant answers.

4

Revaluation A/c

Particulars Amount Rs. Particulars Amount Rs.

To Machinery a/c

To Debtors a/c

60,000

7,000

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

67,000

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

By Land and Buildings a/c

By Loss Transfereed to

Aruna------------------------

Karuna-----------------------

Varuna-----------------------

60,000

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

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

67,000

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

Partners‟ Capital accounts

Particulars Aruna Karuna Varuna Particulars Aruna Karuna Varuna

To Aurna‟s

Capital a/c

To Revaluation

a/c

To Bank a/c

To Aurna‟s

loan a/c

To Balance c/d

----------

50,000

2,00,000

-----------

2,52,000

20,000

----------

4,00,000

-----------

4,23,000

20,000

----------

3,00,000

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

3,22,000

By Balance b/c

By General

Reserve a/c

By Workmen

Compensation

Fund a/c

By Karuna‟s

Capital a/c

By Varuna‟s

Capital a/c

By Bank a/c

------

10,000

2,000

20,000

20,000

-----------

2,52,000

--------

15,000

3,000

1,05,000

-----------

4,23,000

---------

10,000

2,000

1,10,000

-----------

3,22,000

5

Balance Sheet

Liabilities Amount Rs. Assets Amount Rs.

Capitals:

Karuna

Varuna

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

Sundry Creditors

Liability for workmen

compensation

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

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

2,00,000

50,000

8,000

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

9,58,000

Land and Buildings

Machinery

Closing Stock

Sundry Debtors

Cash at Bank

2,60,000

2,40,000

1,00,000

93,000

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

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

9,58,000

6M

14.(a) A firm earned profits of Rs.80,000, Rs.1,00,000, Rs.1,20,000 and `1,80,000 during 2010-11, 2011-

12, 2012-13 and 2013-14 respectively. The firm has capital investment of Rs.5,00,000. A fair rate of return

on investment is 15% p.a. Calculate goodwill of the firm based on three years‟ purchase of average super

profits of last four years.

(b) Kabir and Farid are partners sharing profits and losses in the ratio of 7:3. Kabir surrenders

2/10th from his share and Farid surrenders 1/10th from his share in favor of Jyoti, a new partner. Calculate

new profit sharing ratio and sacrificing ratio. 6M

15. (a) Sunrise Company Ltd. has an equity share capital of Rs.10,00,000. The company earns a return on

investment of 15% on its capital. The company needed funds for diversification. The finance anager

had the following options:

(i) Borrow 5,00,000 @15% p.a. from a bank payable in four equal quarterly installments starting from the

end of the fifth year (ii) Issue Rs. 5,00,000, 9% Debentures of Rs. 100 each redeemable at a premium of

10% after five years. To increase the return to the shareholders, the company opted for option

Pass the necessary journal entries for issue of debentures.

(b) Walter Ltd. issued 6,00,000, 8% Debentures of Rs. 100 each redeemable after 3 years either by draw of

lots or by purchase in the open market. At the end of three years, finding the market price of debentures at

Rs.95 per debenture, it purchased all its debentures for immediate cancellation. Pass necessary journal

entries for cancellation of debentures assuming the company has sufficient balance in Debenture

RedemptionReserve. 6M

6

16.The Shakti Ltd. invited applications for issuing 50,000 shares of Rs.100 each at a premium of 10 per

share payable as follows:

Rs.50 per share on application

Rs.35 per share on allotment (including premium)

Balance on first and final call.

Applications for 82,500 shares were received. Applications for 20,000 shares were rejected and allotment

was made on pro-rata basis to the remaining applicants. Sahil who had applied for 1,250 shares failed to

pay the amount due on allotment and call. The company forfeited his shares. Later on, out of the forfeited

shares company re-issued 500 shares @105 per share as fully paid up.

Pass necessary journal entries in the books of the company.

OR

Record the journal entries for forfeiture and re-issue of shares in the following cases:

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

and allotment money of Rs.5 per share. Out of these, 15 shares were re-issued to Naresh at Rs.9 per share

as Rs.8 paid up.

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

non-payment of allotment money of Rs.5 per share (including premium). Out of these, 80 shares were re-

issued to Sanjay as Rs.8 called up for Rs.10 per share.

c) Z Ltd. forfeited 300 shares of Rs.10 each issued at a premium of Re.1 per share for non-payment of first

and final call of Rs.3 per share. Out of these 200 shares were re-issued at Rs. 13 per share as fully paid-up.

8M

7

17.Mr. Red and Mr .Green are partners in a firm sharing profits and losses in the ratio of 3:2 Mr. Red was

deputed to realize the assets and to pay the liabilities.He was paid Rs.1,000 as commission for his services.

The financial position of the firm on 31st March, 2015 was as follows:

Liabilities Amount

Rs.

Assets Amount Rs.

Creditors

Mrs.Red‟s loan

Mr.Green‟s loan

Workmen compensation fund

Capitals:

Mr.Red

Mr.Green

80,000

40,000

24,000

8,000

42,000

42,000

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

2,36,000

Buildings

Investments

Debtors

34,000

Less: Provision

4,000

Bills Receivable

Cash

Goodwill

1,20,000

30,600

30,000

37,400

14,000

4,000

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

2,36,000

Following was agreed upon:

i) Mr.Red agreed to pay off his wife‟s loan.

ii) Debtors realized Rs.24,000

iii) Mr. Green took away all investments at Rs.27,000

iv) Buildings Realised Rs.1,52,000

v) Creditors were payable after 2 months. They were paid immediately at 10% discount p.a.

vi) Bills Receivable were settled at a loss of Rs.1,400

vii) Realisation expenses amounted to Rs.2,500

vii) Goodwill not realized at all.

Prepare Realisation a/c, Partners‟ Capital A/Cs and Cash a/c.

OR

8

Om, Ram and Shanti were partners in a firm sharing profits in the ratio of 3:2:1. On 1st April, 2015 their

Balance Sheet was as follows:

Liabilities Amount

Rs.

Assets Amount

Rs.

Capital accounts:

Om

Ram

Shanti

Workmen Compensation

Fund

Creditors

Bills Payable

3,58,000

3,00,000

2,62,000

48,000

1,60,000

90,000

Land and Buildings

Plant and machinery

Furniture

Bills Receivables

Sundry Debtors

Stock

Bank

3,64,000

2,95,000

2,33,000

38,000

90,000

1,11,000

87,000

12,18,000 12,18,000

On the above date Hanuman was admitted on the following terms:

i)He will bring Rs.1,00,000 for his capital and will get 1/10th

share in the profits.

ii) He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was valued at

Rs.3,00,000

iii)The liability on account of workmen compensation is Rs.18,000 only.

iv)The value of stock and furniture will be reduced by 20%.

v)The value of land and building will be increased to Rs. 4,00,000

vi)Capital accounts of the partners will be adjusted on the basis of Hanuman‟s Capital in their profit

Shari ratio by bringing or paying cash as the case may be.Prepare Revaluation A/c , Partners‟ Capital

Accounts. 8M

PART – B

(Analysis of Financial Statements)

18. Name any two tools of analysis of financial satements 1

19. State any two limitations of ratio analysis 1

20 .List any two objectives of analyzing the financial statements . 1

9

21.State why share holders are interested in financial statements analysis. 1

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

ii) 17% 5 years debentures of Rs.2,00,000 due for redemption this year.

iii) Patents

iv) Computer Software

v) Securities Premium Reserve

vi) Employees Provident Fund

vii) Inventories

viii) Loans repayable on demand 4M

23. (a)Current Assets of a company are `17,00,000. Its current ratio is 2.5 and liquid ratio is 0.95.

Calculate Current Liabilities and Inventory.

b) Cost of Revenue from operations is Rs.2,40,000. Inventory turnover ratio is 4 times. Calculate the value

of opening inventory which is twice of closing inventory. 4M

24.The motto of Pharma Ltd. a company engaged in the manufacturing of low-cost generic medicines, is

Healthy India. Its management and employees are hard working , honest and motivated. The revenue

from operations of the company doubled during the year ended 31.3.2015. Encouraged by its

performance, the company decided to pay bonus to all employees at double the rate than last year.

From the following prepare a comparative statement of profit and loss for the year ending 31.3.2015. Also

identify any two values which the company is trying to propagate. 4

Particulars Note No 31-3-2015 31.3-2014

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

Other income 1,00,000 50,000

Employee benefit expenses 40% of revenue from operations

Rate of income-tax 30%

10

25. Compute “Working Capital Turnover Ratio” from the following information: 4M

a)Cash Sales Rs.1,30,000;Credit Sales Rs.3,80,000;Sales Returns Rs.10,000;Liquid Assets

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

b)Calculate „Debt Equity Ratio‟ from the following information:

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

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1

FIRST PRE-BOARD EXAMINATION (2015-16)

CLASS – 12 ACCOUNTANCY

MAX.MARKS: 80

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1. Gaining Ratio 1M

2. New Ratio of A, B, C and D is 3:3:3:1 1M

3. Interest on loan a/c Dr. To Suresh Loan a/c Rs.1,500 (rate of interest is 6%p,a) 1M

4. 12% 1M

5. P and L Suspense a/c Dr. To Verma’s Capital a/c Rs.2,350. 1M

6. ESOP: Employees of a company are given an Option to buy/subscribe the Shares of the company at

concessional rate with a lock-in-period of 3 years. 1M

7. Guidelines for Debenture Redemption Reserve now as 25% of the face value of the Debentures issued before redemption of debentures commences. Debenture Redemption Investment is to be made before 30th April @15% of debentures to be

redeemed up to 31st March of next year. 3M

8. Share of Profit after adjustment: Rahul’s deficiency is Rs. 5,000 .

Sachin Rs. 20,000

Rahul Rs. 20,000

Dhone Rs. 5,000 Each correct amount 1 mark each. 3M

9. Notes to Accounts: 2M Balance Sheet 1M

Authorised Capital Rs.2,00,000

Issued Capital Rs.1,00,000

Subscribed and Called –up Capital Rs.60,000

Paid-up Capital (9900x6) = 59,400+ SF Rs.200 Outer Column Rs.59,600. 3M

10. One Value – one mark: Sympathy, Focus on rural development.

a) Machinery a/c Dr. To Krishna Ltd. Rs.14,00,000

b) Krishna a/c Dr. 14,00,000, To Equity Share capital a/c Rs.10,00,000, To 8% Debentures a/c

Rs.3,20,000, To Securities Premium reserve a/c Rs.80,000

No. of debentures issued 13,00,000/125=10,400 (1+1/2+1 ½ ) 3M

11. Sultan’s Capital : Transfereed to Executors Rs.1,34,260. ( Balance b/d Rs.96,000+interest on capital

Rs.5,760+Gooweill Rs.10,000+5,000+Reserve Fund Rs.10,000+Share of Profit Rs.7,500)

Each correct amount ½ mark+ Profit calculation one mark. Rate of profit 12.5% 4M

2

12. Value: Sympathy towards the poor and avoiding wastage of food. One mark .

Sharook a/c Dr. Rs.50,000, Ameer a/c Dr. Rs.50,000 To Salman a/c Rs.1,00,000 one marks

Total profit Rs.5,00,000 in 2:3:5 Ratio 1,00,000, 1,50,000 and 2,50,000 one mark

Total profit Rs.5,00,000 in 2:1:2 Ratio 2,00,000, 1,00,000 and 2,00,000 one mark 4M

13. Retirement of a Partner: Fill in the blanks: Profit sharing ratio is 2:3:2 which should be know from the

Capital a/cs of partners.

Profit on Revaluation: Rs. 7,000 Aruna Rs.2,000, Karuna Rs.3,000 and Varuna Rs.2,000

Balance b/d 2,00,000, 3,00,000 and 2,00,000

Posting of Profit on revaluation 2,000,3,000 and 2,000 in capital a/cs.

In Balance Sheet: Karuna’s Capital Rs.4,00,000 and Varuna’s Capital Rs.3,00,000 Cash at Bank

Rs.2,65,000 ½ mark for each correct blank 6M

14. a) Average profit = 4,80,000/4=1,20,00

Normal profit = 5,00,000x15/100=75,000

Super profit = 1,20,000-75,000=45,000

Goodwill = 45,000x3=1,35,000 ½ mark for each correct amount.

b) Sacrificing Ratio 14:3 (7/10x2/10=14/100) (3/10x1/10=3/100)

New Profit sharing ratio 56:27:17 (7/10-14/100=56/100) (3/10-3/100=27/100)

(14/100+3/100=17/100) one mark each 6M

15. a) first entry one mark and second entry two marks = three marks

Date Particulars LF Debit Rs. Credit rs.

i

ii

Bank a/c Dr.

To Debenture application and allotment a/c

Debenture application and allotment a/c Dr.

Loss on issue of debentures a/c Dr.

To 9% Debentures a/c

To Premium on redemption of debentures a/c

5,00,00,000

5,00,00,000

50,00,000

5,00,00,000

5,00,00,000

50,00,000

b) one for each correct entry = three marks

i) own debentures a/c Dr. To Bank a/c 5,70,00,000

ii) 8% Debentures a/c Dr.6,00,00,000 To Own debentures a/c Rs.5,70,00,000 To Profit on cancellation

of debentures a/c Rs.30,00,000

iii) Profit on cancellation of debentures a/c Dr. To Profit and Loss a/c Rs.30,00,000

Note. DRR a/c can be closed by transferring to General Reserve a/c. 6M

3

16. i) Bank a/c Dr. To Equity share application a/c Rs.41,25,000

ii) Equity share application a/c Dr.41,25,000 To Equity share capital a/c Rs.25,00,000, To E.Share

allotment a/c Rs.6,25,000 To Bank a/c Rs.10,00,000

iii) Equity share allotment a/c Dr. Rs.17,50,000 To Equity share capital a/c Rs.12,0,000 To SPR

Rs.5,00,000

iv) Bank a/c Dr. To Equity share allotment a/c Rs.11,02,500

v) Equity share call a/c Dr. To Equity share capital a/c Rs. 12,50,000

vi) Bank a/c Dr. To Equity share capital a/c Rs.12,25,000

vii) Equity share capital a/c Dr. 100,000, SPR a/c Dr.10,000 To Shares forfeited a/c Rs.62,500, Equity

share allotment a/c Rs.22,500, To Equity share call a/c Rs.25,000

viii) Bank a/c Dr.Rs.52,500 To Equity share capital a/c Rs.50,000, To SPR a/c Rs.2,500

ix) Shares forfeited a/c Dr. To Capital Reserve a/c Rs.31,250.

No. of shares allotted to Sahil 1250x4/5=1,000 shares. Excess application money paid by Sahil

Rs.12,500 Net arreas of Sahil on allotment Rs.22,500, Arreas of Sahil on call Rs.25,000. Captital Gain

calucluation=62,500/1000x500=31,250.

Due entries ½ mark each remaining 1 mark each. Total eight marks.

OR

Choice Question:

a) Three marks

i) Share capital a/c Dr.Rs.140 To Shares forfeited a/c Rs.100, ToShare call a/c Rs.40

ii) Bank a/c Dr. Rs.135 To Share capital a/c Rs.120, To SPR Rs.15

iii) SF to CR Rs.75

b) Three marks

i) Share capital a/c Dr.Rs.720, SPR a/c Dr.Rs.180 To Shares forfeited a/c Rs.450, To Shares allotment

a/c Rs.450

ii) Bank a/c Dr.800To Share capital a/c Rs.640, To SPR a/c Rs.160

iii) SF a/c Dr. To CR a/c Rs.400.

c) Two marks

i) Share capital a/c Dr.3,000 To Shares forfeited a/c Rs.2,100, Share call a/c Rs.900

ii) Bank a/c Dr. Rs.2,600 To Share capital a/c Rs.2,000, To SPR a/c Rs.600

iii) SF a/c Dr. To Capital Reserve a/c Rs.1,400 (3+3+2) 8M

4

17. Realisation a/c – four marks

Capital a/cs 3 marks

Cash a/c 2 marks

Totals of Realisation a/c Rs.3,63,000

Profit on Realisation Rs.15,833 Red 9,500 and Green 6,333 in 3:2 Ratio.

Amount paid To Red Rs.96,300 and To Green Rs.24,533

Cash a/c Total Rs.2,26,000

Red’s Capital a/c Total Rs.96,300 Green’s Capital a/c Total Rs.51,533

Discount on creditors 80,000x10/100x2/12= 1,333

Realisation a/c

Debit side amounts Credit side amounts

1,20,000

30,600

34,000

37,400

40,000

40,000

78,667

2500

4,000

80,000

40,000

24,000

1,52,000

36,000

27,000

9,500

6,333

(Debit total

Rs.3,47,167)3,63,000

3,63,000

Cash a/c Dr. side: 14,000+2,12,000 =2,26,000

Cash a/c Cr. Side : 81,167+24,000+96,300+24,533=2,26,000

OR

Choice Question: Admission of a partner

Revalulation a/c two marks+ capital a/cs six marks

Loss on Revaluation a/c 32,800 (Om Rs.16,400+ Ram Rs.10,933 + Shanti Rs.5,467)

Total of Revaluation a/c Rs.68,800

Total capital of the new firm Rs.10,00,000

CBSE Pre Board Set-I Solved QuestionPaper Class XII Accountancy

Publisher : Faculty Notes Author : Panel Of Experts

Type the URL : http://www.kopykitab.com/product/9715

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