(Paper) Accounts Class - XII Sample paper - 1997 (Set - 2) - SOLVED
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Accounts
Class - XII (CBSE)
Sample Paper- 1997- Set - 2
(Solved)
Q)
Give any three characteristics of partnership. (Marks
3)
Q)
A, B and C were partners in a firm sharing profits and losses in the ratio of 4
: 3 : 3. Their fixed capitals were Rs. 10,00,000, Rs. 2,00,000 and Rs. 3,00,0000
respectively. For the year 1996 interest on capital was credited to them @ 10%
instead of 9% p.a.. Showing your working notes clearly pass the necessary
adjusting journal entry.
Q)
X, Y and Z were partners in a firm sharing profits in 4 : 3 : 2 ratio. They had
a joint life policy of Rs. 1,80,000 on which the annual premium paid was
considered as an expense. On 1st January, 1996 X died. On that date there was a
debit balance of Rs. 45,000 in their profit and loss account. Pass the necessary
journal entries on X's death. (Marks 4)
Q)
L, M and O were partners in a firm sharing profits in 1 : 3 : 2 ratio. L retired
and the new profit sharing ratio between M and O was 1 : 2. On L's retirement
the goodwill of the firm was valued at Rs. 1,20,000. Pass necessary journal
entry for the treatment of goodwill without opening goodwill account on L's
retirement. (Marks 4)
Q) The following is the position of Current Assets and Current Liabilities of X Ltd.
| 1995 Rs. |
1996 Rs. |
|
| Debtors Creditors Bill Receivable Prepaid Expenses |
20,000 10,000 6,000 8,000 |
15,000 8,000 8,000 7,000 |
The company
incurred a loss of Rs. 50,000 during the year. Calculate cash from operations.
Q) "Comparison
with the help of ratios is not possible if different firms follow different
accounting policies." Comment. (Marks 4)
Q) A
company has a loan of Rs. 30,00,000 as part of its capital employed. Interest
payable on the loan is 12% and the ROI of the company is 25%. The rate of income
tax is 40%. What is the gain to the shareholders due to the loan raised by the
company? (Marks 5)
PART 'A' (Accounting III)
Q)
Give any three points of distinction between revaluation account and realisation
account. (Marks 3)
Ans) Revaluation and
Realisation account :
(i) Revaluation is prepared at the time of admission, retirement and death of a
partner. Realisation is prepared at the time of dissolution of the firm.
(ii) Revaluation is prepared record the effect of revaluation of assets and
liabilities. Realisation records the realisation of various assets and
liabilities.
(iii) As a result of revaluation, assets and liabilities are revalued and not
closed down. Whereas as a result of realisation, the assets and liabilities
accounts are closed.
Q)
Can forfeited shares be issued at a discount? If so, to what extent? (Marks 3)
Ans) The forfeited shares can be reissued at a
discount. However, the discount on the reissue of such shares cannot exceed the
amount earlier forfeited on such shares, i.e. amount received on re-issue plus
the amount already received on forfeited shares should not be less than the paid
up value of shares.
Q)
Ashoka Ltd. purchased machinery costing Rs. 1,35,000. It was agreed that the
purchase consideration be paid by issuing 12% debentures of Rs. 100 each. Assume
debentures have been issued (i) at par and (ii) at a discount of 10%. Give
necessary journal entries. (Marks 3)
Ans) Working Notes :
No. of debentures = 135000/90
= 1500
Ashoka
Ltd.
Journal
| Date | Particulars | LF | Amt (Dr) | Amt (Cr) |
(i) (ii) |
Machinery
A/c Dr To Vendors (Being machinery purchased) Vendors Dr To 12% Debentures (Being 1350, 12% Debentures of 100 each issued at par in lieu of purchase consideration) Vendors Dr Discount on Issue of Dbs Dr To 12% Debentures (Being 1500, 12% Debentures of 100 each issued at 10% discount to the vendors) |
135000 135000 135000 15000 |
135000 135000 150000 |
Q) X, Y and Z are partners in a firm sharing profits and losses in the ratio of
5 : 3 : 2. Their fixed capitals were Rs. 3,00,000, Rs. 2,00,000 and Rs. 1,00,000
respectively. For the year 1996 interest on capital was credited to them @ 10%
p.a. instead of 8% p.a.. Showing your working notes clearly, pass the necessary
adjusting journal entry. (Marks 4)
Ans) Working Notes
|
X
|
Y
|
Z
|
|
| Interest
wrongly credited (@10%) Interest to be credited (@8%) Excess Credit of interest |
30000 24000 6000 |
20000 16000 4000 |
10000 8000 2000 |
Thus, the profit will now
increase by 12000. Thus, this will be divided among the partners.
Adjustment table
|
X
|
Y
|
Z
|
|
| To be debited by |
6000
|
4000
|
2000
|
| To be credited by |
6000
|
3600
|
2400
|
| - |
400 (Dr)
|
400 (Cr)
|
Adjusting Journal
| Date | Particulars | LF | Amt (Dr) | Amt (cr) |
| Y's
Capital A/c Dr To Z's Capital A/c (Being excess interest charged now adjusted) |
400 | 400 |
Q) A, B and C were partners in a firm sharing profits in proportion of their
capitals which were Rs. 4,00,000, Rs. 3,00,000 and Rs. 2,00,000 respectively.
They had a joint life policy of Rs. 2,70,000 on which the annual premium paid
was considered as an expense. On 1.1.1996, B died. On that date there was a
debit balance of Rs. 90,000 in their Profit and Loss Account. Pass necessary
journal entries on B's death. (Marks 4)
Ans)
JOURNAL
| Date | Particulars | LF | Amt (Dr) | Amt (Cr) |
| Joint
Life Policy A/C ........................Dr. To A's Capital A/c To B's Capital A/c To C's Capital A/c (Being amount of joint life policy transferred to the capital accounts of partners in their profit sharing ratio) B's Capital A/c ................................Dr. To P/L A/C (Being the B's share of loss transferred to his capital A/c) B's Capital A/C ...............................Dr. To B's Executors' A/C (Being the total amount due to B transferred to his Executors' A/C) |
270000 30000 360000 |
120000 90000 60000 30000 360000 |
Q) X, Y
and Z were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Z
retired and the new profit sharing ratio between X and Y was 1 : 2. On Z's
retirement the goodwill of the firm was valued at Rs. 30,000. Pass necessary
journal entry for the treatment of goodwill on Z's retirement without opening
goodwill account.
They admitted C into partnership on this date. New profit sharing ratio is
agreed as 3 : 2 : 1. C brings proportionate capital after the following
adjustments :
(i) C brings Rs. 10,000 in cash as his share of Goodwill.
(ii) Provision for doubtful debts is to be reduced by Rs. 2,400.
(iii) There is an old typewriter valued at Rs. 2,600. It does not appear in the
books of the firm. It is now to be recorded.
(iv) Patents are valueless.
Prepare Revaluation A/c, Capital and the opening Balance Sheet of A, B and C.
OR
A, B and C were partners in a firm and shared profits in the ratio of 3 : 2 : 1. On 31.12.1996 their Balance Sheet was as follows :
|
Liabilities |
Rs. |
Assets |
Rs. | |
| Creditors Bills Payable Provident Fund Investment - Fluctuation Fund Commission Received in Advance Capitals: A 80,000 B 50,000 C 30,000 |
65,000 20,000 12,000 6,000 8,000 1,60,000 2,71,000 |
Cash Debtors Stock Investments Plant P and L A/c. |
22,500 52,300 36,000 15,000 91,200 54,000 2,71,000 |
On this date
the firm was dissolved. A was appointed to realise the assets. A was to receive
5% commission on the sale of assets (except cash) and was to bear all expenses
of realisation.
A realised the assets as follows :
Debtors Rs. 30,000, Stock Rs. 26,000, Investments 75% of book value, Plant Rs.
42,750. Expenses of realisation amounted to Rs. 4,100.
Commission received in advance was returned to the customers after deducting Rs.
3,000.
Firm had to pay Rs. 7,200 for outstanding salary not provided for earlier.
Compensation paid to employees amounted to Rs. 9,800. This liability was not
provided for in the above Balance Sheet. Rs. 25,000 had to be paid for Providend
Fund.
Prepare Realisation Account, Capital Accounts and Cash Account.
Ans) Working Notes:
X : Y : Z
Old Ratio = 3 : 2 : 1
New Ratio = X : Y
1 : 2
X's gain = 1/3 - 3/6 = -1/6
Y's gain = 2/3 - 1/3 = 1/3
Thus X has lost by 1/6 share
Goodwill = 30000
Y's gaining share = 1/3 x 30000 = 10000
X's sacrifice = 1/6 x 30000 = 5000
Z's sacrifice = 1/6 x 30000 = 5000
Thus,
Journal
| Y's
capital A/c Dr To X's Capital A/c To Z's Capital A/c (Being the goodwill adjustment made on Z's retirement wherein 4 gains) |
10000 | 5000 5000 |
||
Q) The following balances have been extracted from the books of Rama Ltd. on
31.12.1996 :
Share Capitals Rs. 10,00,000, Share Premium Rs. 1,00,000 12% Debentures Rs.
5,00,000 Creditors Rs. 2,00,000, proposed dividend Rs. 50,000, Profit and Loss
Account (Dr.) Rs. 50,000, Live Stock Rs. 9,00,000, Government Bonds Rs.
4,00,000, Work in progress Rs. 4,00,000 and Discount on issue of 12% Debentures
Rs. 1,00,000.
Prepare the Balance Sheet of the Company as per Schedule VI Par I of the
Companies Act 1956. (Marks 5)
Ans. )
Rama
Ltd.
Balance Sheet as on 31.12.96
| I)
Share Capital Authorised, Issue and subscribed Capital II) Reserves and Surplus: Share Premium III) Secured Loans 12% Debentures IV) Unsecured Loans V) Current Liabilities and provisions A) Current Liabilities: Creditors Proposed Dividend B) Provisions |
1000000 100000 500000 NIL 200000 50000 NIL |
I)
Fixed Assets: Livestock II) Investment Government Bonds III) Current Assets, Loans and Advances: A) Current Assets Work in progress B) Loans and Advances IV) Miscellaneous Expenditure Discount on issue of 12% Debentures V) P and L A/C |
900000 400000 400000 NIL 100000 50000 |
Q) A and B
were partners with profit sharing ratio of 2 : 1. The Balance Sheet of the firm
on 31.3.1996 was as follows:
| Liabilities |
Amount
Rs. |
Assets |
Amount
Rs. |
||
| Creditors Bills Payable Reserve Fund Capitals : A 40,000 B 30,000 |
20,000 1,17,000 |
Sundry
Debtors Less Provision Stock Building Patents Machinery |
40,000
3,600 |
36,400 20,000 25,000 2,000 33,600 1,17,000 |
They
admitted C into partnership on this date. The new profit sharing ration is
agreed as 3 : 2 : 1.
C brings in proportionate capital after the following adjustments:
i) C brings Rs. 10,000 in cash as his share of goodwill.
ii) Provision for doubtful debts is to be reduced by Rs. 2,400.
iii) There is an old typewriter valued at Rs. 2,600. It does not appear in the
books of the firm. It is now to be recorded.
iv) Patents are now valueless. Prepare Revaluation Account, Capital Accounts and
the opening
Balance Sheet of A, B and C. (Marks 12)
Ans.
|
Ans.
8) Working Notes |
|
...............C's
Capital A/c...............Dr.......................10000 |
.Dr....................................
..................REVALUATION
A/C...................................Cr
| Particulars. | ...Amount...... | ...Particulars | ..Amount |
| To
Patents A/c... To Profit transferred to A's Capital A/c B's capital A/c.. |
2000. .2000... 1000.. 5000. |
By
Provision for Doubtful debts By Unrecorded .assets (typewriter) |
2400 2600 5000 |
Dr.................................................PARTNERS'
CAPITAL A/C............................Cr
| Particulars | A | B | C | Particular | A | B | C |
| To
A's Capital A/c To balance C/d |
10000 60000 60000 |
10000 35000 35000 |
10000 19000 29000 |
By
Balance b/d By Reserve fund By revaluation (Profit) By C's Capital a/c By Cash A/c |
40000 8000 2000 10000 60000 |
30000 4000 1000 35000 |
29,000 29,000 |
.BALANCE SHEET OF A, B and C AS ON
| Liabilities |
Amount
|
Assets
|
Amount
|
|
| Creditors Bills Payable A's Capital B's Capital C's Capital* |
20000 15000 60000 35000 19000 1,49,000 |
Cash Sundry Debtors .................40000 Less : Prov for D. Debts 1200 Stock Buildings Machinery Typewriter |
29000
38,800 20,000 25,000 33,600 2,600 1,49,000 |
* Proportionate Capital of C
A's Capital (after adjustments) = 60000
B's Capital (after adjustments) = 35000
Let C's capital = x
... x = 1/6 x (95000 + x)
x = 95000/5 = 19000
Thus, total cash brought by C =
19000 (Capital)
10000 (Goodwill)
29000
OR
A, B and C
were partners in a firm and shared profits in the ratio of 3 : 2 : 1. On 31st
December, 1996 their Balance Sheet was as follows :
| Liabilities |
Amount |
Assets |
Amount |
|
| Creditors Bills Payable Provident Fund Investment Fluctuation Fund Commission Received in Advance Capitals : ..........A 80,000 ..........B 50,000 ..........C 30,000 |
65,000
20,000 12,000 6,000 8,000 1,60,000 2,71,000 |
Cash Debtors Stock Investments Plant Profit and Loss A/c |
22,500
52,300 36,000 15,000 91,200 54,000 2,71,000 |
On this date
the firm was dissolved. A was appointed to realise the assets. A was to received
commission on sale of assets (except cash) and was to bear all expenses of
realisation.
A realised the assets as follows :
Debtors Rs. 30,000, Stock Rs. 26,000, Investments 75% of books value, Plants Rs.
42,750. For realisation amounted to Rs. 4,100. Commission received in advance
was returned to the customer deducting Rs. 3,000. Firm had to pay Rs. 7,200 for
outstanding salary no provided Compensation paid to employees amounted to Rs.
9,800. This liability was not provided for the Balance Sheet Rs. 25,000 had to
be paid for Provident Fund.
Prepare Realisation Account, Capital Accounts and Cash Account.
Ans.
| Dr. |
Realisation
A/C
|
Cr. | ||
| Particulars | Amount | Particulars | Amount | |
| To
Debtors To Stock A/c To Investment A/c To Plant A/c To A's Capital A/c [Commission 5/100 x 110000] To Cash A/c |
52300 36000 15000 91200 5500 |
By
Creditors By B/P By Provident Fund By Investment flutuation fund By commission received in advance By Cash A/c |
65000 20000 12000 6000 8000 |
|
| -
Commission recd. in advance - Outstanding Salary - Compensation - Provident Fund To Cash A/c - Creditors - B / P |
332000 |
Debtors Stock Invest Plant By loss transferred to A's Capital A/c B's Capital A/c C's Capital A/c |
30000 26000 11250 42750 |
332000 |
| Dr. |
PARTNERS
CAPITAL ACCOUNT Cr.
|
Cr. | |||||
| Particulars | A | B | C | Particulars | A | B |
C |
| To
Realisation A/c (loss) To P/L A/c To Cash A/C* To Cash A/c |
55500 27000 4100 86600 |
37000 18000 55000 |
18500 9000 2500 30000 |
By
balance b/d By Realisation (Commission) By Cash A/c |
80000 5500 1100 86600 |
50000 5000 55000 |
30000 30000 |
* Actual expenses met by A are treated as his drawings.
|
CASH
ACCOUNT
|
||||
| To
balance b/d To Realisation A/c (Assets realised) To A's Capital A/c To B's Capital A/c |
22500
110000 1100 5000 138600 |
By
Realisation A/c By Realisation A/c (Liabilities net) By A's Capital A/c By C's Capital A/c |
47000
85000 4100 2500 138600 |
|
Q)
XY Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each.
The amount was payable as follows :
On application Rs. 3 per share
On allotment Rs. 4 per share
On first and final call Rs. 3 per share
Applications were received for 75,000 shares and pro-rata allotment was made as
follows :
Applicants for 40,000 shares were allotted 30,000 shares on pro-rata basis.
Applicants for 35,000 shares were allotted 20,000 shares on pro-rata basis.
Ramu to whom 1,200 shares were allotted out of the group applying for 40,000
shares failed to pay the allotment money. His shares were forfeited immediately
after allotment. Shamu who had applied for 700 shares out of the group applying
for 35,000 shares failed to pay the first and final call. His shares were also
forfeited. Out of the forfeited shares 1,000 shares were
re-issued @ Rs. 8 per share fully paid up. The re-issued shares included all the
forfeited shares of Shamu. Pass necessary journal entries to record the above
transactions. (Marks 12)
Ans. ) Working Notes :
50000 x 10 (3, 4, 3)
Applied for Allotted
40000 Pro-rata 30000
35000 Pro-rata 20000
75000 50000
Ramu was allotted = 1200 shares
He applied for = 1200 x 40000/30000 = 1600
Paid on application = 4800
Due on application = 3600
Surplus received = 1200
Due on allotment = 4800
Less: Already received = 1200
unpaid 3600
Total amount due on Allotment = 50000 x 4 = 200000
Less : Adjusted from application 75000
Less: Unpaid by Ramu 3600
Received on allotment 121400
Shamu was allotted = 700 x 20000/35000 = 400 shares
XY Ltd. JOURNAL
|
Date |
Particulars |
Lf |
Amount (Dr.) |
Amount (Cr.) |
|
Bank
A/C ..............................Dr |
225000 |
|
||
Working
Notes :
Calculation of amount to be transferred to capital reserve:
Share forfeited account balance of Shamu = 2800 (A)
on 400 shares
Share forfeited balance of Ramu's 1200 Shares = 4800
... On 600 Shares = 4800/1200 x 600
= 2400 (B)
Thus, total amount is share forfeited A/C = 5200 (A) + (B)
(for the shares re-issued)
Capital Reserve = 5200 - 2000
=
3200
OR
The Balance Sheet of Seema Ltd. disclosed, the following
information on 1.1.1995 :
15% Debentures Rs. 15,00,000
Debenture Redemption Fund Rs. 11,60,000
15% Debenture Redemption Fund Investment Rs. 11,60,000
The annual contribution to the Debenture Redemption Fund was Rs. 1,30,000 for
the year 1995 and 1996. The debentures were redeemable on 31st December, 1996.
On 31st December, 1996 the investments were sold for Rs. 13,80,000 and the
debentures were redeemed.
Prepare Debenture Account, Debenture Redemption Fund Account and Debenture
Redemption Fund Investment Account for the year 1995 and 1996.
Ans.
Dr......................................... 15% Debentures Account..........................................Cr.
|
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
|
31.12.93 |
To
balance C/d |
1500000 |
1.1.96 |
By
Balance b/d |
1500000 |
Dr.............................Debenture Redemption Fund Account..............................Cr.
|
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
|
31.12.95 |
To
Balance C/d |
1464000 |
1.1.95 |
By
balance b/d |
1160000 |
Dr...............................Db. Redemption Fund Investment A/C.........................Cr.
|
Date |
Particulars |
Amount |
Date |
Particulars |
Amount |
|
1.1.95 |
To balance
b/d |
1160000 |
31.12.95 |
By balance
C/d |
1464000 |