Paper : CBSE Class 12th Accountancy Exam Paper, 2004 (Outside Delhi: Set - 1)

PART A: PARTNERSHIP ANDCOMPANY ACCOUNT

Q. 1. Distinguish between fixed and fluctuating capital. 2

Q. 2. What is meant by reserve capital? 2

Q. 3. State the meaning of calls-in-advance. 2

Q. 4. What is meant by debenture? 2

Q. 5. A Ltd. took over assets of Rs. 10,00,000 and creditors of RS. 1,00000 from B Ltd. and issued 6% debentures of Rs. 100 each at a pr of 25% as purchase Consideration.
Pass necessary journal entries in the books of A Ltd. 3

Q. 6. A, B and Care partners in a firm with capitals of Rs. 40,000, Rs. 60,000 and Rs. 80,000 respectively. After the accounts of the firm for the year have been closed it is discovered that interest at the rate of 8% p.a. as provided in the partnership agreement has not been credited to the capital accounts of the partners before distribution of profits. It is decided to make an adjustment entry at the beginning of the next year.
Pass the necessary journal entry.

Q. 7. X and Y were partners in a firm in sharing profits in the ratio of 3 : 2. On 10.3.2004 they admitted Z as a new partner in the firm for 3/13 share in the profits. The new profit sharing ratio will be 5 : 5 : 3.Z contributed the following assets towards his capital and for his share of goodwill (premium):
Stock RS. 40,000; Debtors Rs. 60,000; Land Rs. 1,00,000 and Plant and Machinery Rs. 60,000. On the date of admission of Z the goodwill of the firm was valued at Rs. 5,20,000, which Is not appear in the books.
Pass necessary journal entries in the books of the firm on Z's admission. Show your calculations clearly. 4

Q. 8. L and M were partners in a firm sharing profits in the ratio of4:3. The firm was dissolved on 28.2.2004.
Pass necessary journal entries for the following transactions: 4
(i) Debtors Rs.20,000 were taken over by L for R. 18,000.
(ii) Creditors Rs. 15,000 were paid at a discount of 5%.
(iii) Expenses of dissolution Rs. 1,000 were paid by M.
(iv) Loss on realisation was Rs. 7,000

Q. 9. X Ltd. forfeited 750 shares of Rs. 100 each issued at a discount of 10% for the non-payment of the first call of Rs. 20 per share. The final call of Rs. 30 per share was not called. Out of the forfeited shares 500 shares were reissued as fully paid for Rs. 20,000.
Pass necessary journalentries. 4

Q. 10. A Ltd. issued 1,00,000 9% debentures of Rs. 100 each at a discount of 6%, redeemable Ma premium of 5% after 3 years payable as: Rs. 50 on application and Rs. 44 on allotment. Pass necessary journal entries for issue of debentures. 4

Q. 11. AH Ltd. issued Rs. 20,00,000; 9% debentures of Rs. 100 each at a discount of 10% redeemable after five years by converting them into equity shares of Rs. 10 each. Pass necessary journal entries for the issue and redemption of debentures. 4

Q. 12. X, V and Z were partners in a firm sharing profits in the ratio of 3:2: 1. The firm closes its accounts on 31st March every year. X died on 30-9-2004 . On that date credit balance in his capital account was Rs. 30,000. The firm had general reserve of Rs. 16,000 on that date. The partnership deed provided that on the death of a partner:

(a) Interest on capital at the rate of 10% per annum shall be allowed.
(b) Goodwill will be calculated on the basis of 3 years purchase of the four years average profits which were as follows:
Profits for the years ending 31st March 2003 ,2002,2001 and 2000 were Rs. 14,000, Rs. 16,000, Rs. 20,000 and Rs. 10,000 respectively.
(c) The deceased partner's share of profit upto the date of death will be calculated on the basis of last year's profits.
Prepare X's capital account to be shown to his executors.

Q. 13. Following is the Balance Sheet of Anju and Manju who are partners in a firm sharing profits in the ratio of 3 : 2, as at 31.3.2003:

The firm was dissolved on 31.3.2003. Plant and machinery realised Rs. 16,000 and stock Rs. 2,500. Rs. 9,000 were collected from the debtors. Creditors were paid Rs. 30,000 in settlement.
Prepare Realisation Account, Capital Accounts of Anju and Manju and Bank Account to close the books of the firm.

Q. 14. X Ltd. invited applications for the issue of 10,00,000 equity shares of Rs. 10 each payable as follows:

Applications for 15,00,000 shares were received and pro-rata allotment was made to al! the applicants. Excess application money was adjusted on the sums due on first call. When the first call was made one shareholder who had applied for 1 5,000 shares did not pay the first call money.
Pass necessary journal entries in the books of the company. 6

Q. 15. K, L and M were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31.3.2003 the Balance Sheet of the firm was as follows:

L retired from the firm on the following terms:
(a) The new profit sharing ratio between K and M will be 2 : 1.
(b) Goodwill of the firm is valued at Rs. 72,000, which is not to be shown in the books.
(c) Provision for bad debts is to be made at the rate of 10% on debtors.
(d) Creditors of Rs. 4,000 will not be claimed.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of K and M after L's retirement.
Or
A and B are partners in a firm sharing profits in the ratio of 2 :1. Their Balance Sheet as at 31.3.2003. was as follows:

On 1.4.2003 C is admitted to the firm for 1/4the share on. the following terms:
(a) He will bring in Rs. 1,50,000 as his capital and Rs. 60,000 for his share of goodwill.
(b) Land and Building is valued at Rs. 2,50,000 and stock at Rs. 1,85,000.
(c) Rs. 5,000 is provided for doubtful debts.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of A, B and C. 8

PART B - ANALYSIS OF FINANCIAL STATEMENTS

Q. 16. What is meant by a Cash Flow Statement? 2

Q. 17. State the meaning of 'Funds from Operations'. 2

Q. 18. State any three advantages of analysis of financial statements. 3

Q. 19. Prepare a common size Balance Sheet and comment on the financial position of X Ltd. and Y Ltd. The Balance Sheets of X Ltd. and Y Ltd. as at 31.3.2003 are given below: 3

Q. 20. Calculate any two of the following ratios from the given information:
(a) Gross Profit Ratio
(b) Stock Turnover Ratio
(c) Proprietary Ratio
Information:
Net Sales Rs. 4,00,000; Cost of goods sold Rs. 2,00,500; Administrative expenses Rs. 45,000; Selling expenses Rs. 57,000; Share capital Rs. 8,50,000; Reserves and Surplus Rs. 3,00,000;Long-term loans Rs. 8,20,000; Fixed assets (net) Rs. 4,62,000; Investments Rs. 2,42,500; Debtors Rs. 72,000; Opening stock Rs. 2,40,000; Closing stock Rs. 2,10,000 and Bank Balance Rs. 3,00,000. 4

Q. 21. Following are the Balance Sheets of R Ltd. as at 31st March, 2002 and 2003:

Additional Information:
Dividend Rs. 40,000 was paid during the year.
Prepare Schedule of Changes in Working Capital, compute Funds from Operations and prepare Statement of Changes in Financial Position. 6

Or

Monika Ltd. reported at net profit of Rs. 15,000 for the year ending on 31.3.2003 after taking the following into consideration: