(Paper) Accounts Class - XII Sample paper - 2000 (Set - 3) - SOLVED
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Accounts
Class - XII
Sample Paper - 2000 (Part - 3)
(Solved)
PART 'A'
(Accounting III)
Ans1) Profit and Loss Appropriation Account is prepared to show how the net profit have been distributed among the partners. The account is credited with net profit or debited with net loss to begin with and further credited with Interest on drawings and debited with interest on capital salary etc. The final profit/loss is distributed in the agreed profit sharing ratio.
Q2)
What are the alternatives available to a company for the allotment of debentures
when there is over- subscription of debentures? (Marks 3)
Ans2) When there is over-subscription of debentures;
(i) The company may not allot any debenture to some applicant i.e. their
application money is refunded.
(ii) If the applicants have been allotted less number of debentures than they
applied for, the excess application money is adjusted towards allotment and
subsequent calls.
Q3) A and B were partners
sharing profits in the ratio of 3 : 2. They admitted X and Y as new partners. A
surrendered 1/3rd of his share in favour of X and B surrendered 1/4th of his
share in favour of Y. Calculate the new profit sharing ratio of A, B, X
and Y. (Marks 3)
Ans3) A's sacrifice = 1/3 x 3/5 = 3/15
B's sacrifice = 1/4 x 2/5 = 2/20
A's new share = 3/5 - 3/15 = 6/15
(Old share - sacrifice)
B's new share = 2/5 - 2/20 = 6/20
... New Profit sharing ratio :
A : B : X : Y
6/15 : 6/20 : 3/15 : 2/20
= 4 : 3 : 2 : 1
(X's share is equal to A's sacrifice)
(Y's share is equal to B's sacrifice)
Q4) A and B were partners in firm sharing profits and losses equally. Their firm was dissolved on 15th March 1999, which resulted in a loss of Rs. 30,000.On that date the capital account of A showed a credit balance of Rs. 20,000 and that of B a credit balance of Rs. 30,000. The cash account had a balance of Rs. 20,000. You are required to pass the necessary journal entries for the (i) transfer of loss to the capital accounts of the partners and (ii) making final payment to the partners. (Marks 4)
Ans4)
JOURNAL
| Date | Particulars | Lf | Dr. Amount | Cr. Amount |
| 15/3/99 | A's Capital A/c
...................Dr. B's Capital A/c................... Dr To Realisation A/c (Being the dissolution loss transferred to the partners in their profit sharing ratio) A's Capital A/c ...................Dr B's Capital A/c ...................Dr To Cash (Being the final payment made to partners) |
15000 15000 5000 15000 |
30000 20000 |
Working Notes:
| Dr | Capital A/C | Cr. | |||
To Realisation (loss) To Cash (bf) |
A 15000 5000 20000 |
B 15000 15000 30000 |
By balance b/d | A 20000 20000 |
B 30000 30000 |
Q5) M and J are partners in a firm sharing profits in the ratio
of 3 : 2. They admitted R as a new partner. The new profit sharing ratio between
M, J and R will be 5 : 3 : 2. R brought Rs. 25,000 for his share of goodwill
premium. Pass the necessary journal entries for the treatment of goodwill?
(Marks 3)
Ans5) Working Notes :
M : J
Old Ratio = 3 : 2
M : J : R
New Ratio = 5 : 3 : 2
M's sacrifice = 3/5 - 5/10 = 1/10
J's sacrifice = 2/5 - 3/10 = 1/10
... Sacrificing Ratio = M : J
1 : 1
JOURNAL
| Date | Particulars | LF | Amt Dr | Amt Cr |
| Cash A/c...................
Dr To R's Capital A/c (Being cash brought in by R for his goodwill) R's capital A/c............ Dr To M's Capital A/c To J's Capital A/c (Being cash brought by R for goodwill divided in old partners in their sacrificing ratio i.e. 1 : 1) |
25000 25000 |
25000 12500 12500 |
Q6)
Suvidha Ltd.
purchased machinery worth Rs. 1,98,000 from Suppliers Ltd. The payment was made
by issue of 12% debentures of Rs. 100 each. Pass necessary journal entries for
the purchase of machinery and issue of debentures when :
(i) Debentures are issued at par.
(ii) Debentures are issued at 10% discount.
(iii) Debentures are issued at 10% premium. (Marks 4)
Ans6) Working Notes :
Machinery's cost = 198000
(i) When debentures issued at par :
No. of debentures = 198000/100
= 1980
(ii) When debentures issued at 10% discount :
No. of debentures issued = 198000/90
= 2200
(iii) When debentures at 10% premium :
No. of debentures issued = 198000/110
= 1800
Journal
| Date |
Particulars
|
LF |
Amt Dr
|
Amt Cr
|
| Machinery
A/c...................
Dr To Suppliers Ltd. (Being machinery purchased from suppliers Ltd.) (i) Suppliers Ltd. To 12% Debentures (Being amount settled with suppliers Ltd. by issuing 1980 debentures of 100 each at par) (ii) Suppliers Ltd. ...................Dr Discount on Issue of Debentures Dr To 12% Debentures (Being amount settled with suppliers Ltd. by issuing 2200 debentures of 100 each at 10% discount) (iii) Suppliers Ltd. ...................Dr To 12% Debentures To Premium on Issue of Debentures (Being amount settled with suppliers Ltd. by issuing 1800 debentures of 100 each at 10% premium) |
198000 198000 198000 22000 198000 |
198000 198000 220000 180000 18000 |
Q7) X
Limited has an authorised capital of Rs. 10,00,000 divided into Equity Shares of Rs. 10 each. The company invited applications for 50,000 shares. Applications
for 40,000 shares were received . All calls were made and were duly received
except the final call of Rs. 2 per share on 1000 shares. 500 of the shares on
which the final call was not received were forfeited. Show how Share Capital
will appear in the Balance Sheet of the company as per Schedule VI Part - I of the
Companies Act. 1956? (Marks 5)
Ans7)
Balance
Sheet of X Ltd.
as on............
|
Liabilities
|
Amt.
|
Assets | Amt. |
|
Share Capital :
Authorised : 100000 Equity shares of Rs. 10 each Issued : 50000 equity shares of Rs. 10 each Subscribed and called up : 40,000 Equity shares of Rs 10 each fully called up Paid up: 39500 equity shares of 10 each fully called up 3,95,000 Less: calls-in arrears 1,000 Share forfeited |
|
Q8) AB
Ltd. invited applications for 1,00,000 12%. Preference Shares of Rs. 100 each issued at a discount of 10%. The amount was payable as follows :
On Application Rs.
20
On Allotment Rs. 30
On First and Final Call - balance
Applications for 1,50,000 shares were received. Applications for 30,000 shares
were rejected and pro-rata allotment was made to the remaining applicants. All
calls were made and were duly received except the first and final call on 1000
shares held by Kumar. His shares were forfeited. Out of the forfeited shares 750
shares were re-issued at Rs. 120 per share fully paid up.
Pass necessary journal entries in the books of AB Ltd.
Ans. 8) Working Notes :
100000 x 100 at 90 (20, 30, 40)
Applied for Allotted
30000
Nil
120000
100000
150000
100000
Journal
| Date | Particulars | LF | Amt. Dr | Amt. Cr |
|
Bank
A/c ...................Dr
To 12% Preference share Application A/c (Being application money received on 1,50,000 shares @ 20/share) 12% Preference Share Application A/c To 12% Preference Share Capital A/c To Bank To 12% Preference Share Allotment A/c (Being the application money adjusted and the surplus transferred to share allotment Account) 12% Preference Share Allotment A/c .....Dr Discount on Issue of shares ...................Dr To 12% Preference Share Capital (Being the allotment due on 1,00,000 Share @ 30/share and discount debited) Bank A/c ...................Dr To 12% Preference Share Allotment A/c (Being the amount received on share allotment) 12% Preference Share first Call.............. Dr To 12% Preference Share Capital A/c (Being amount due on first call on 1,00,000 shares @ 40/Share) Bank A/c ...................Dr To 12% Pref. Share Capital A/c (Being amount of first call received on 99000 shares) 12% Pref. Share Capital A/c................... Dr To Share forfeited A/c To Discount on Issue of Shares To 12% Pref. Share first call (Being 1000 shares forfeited for non-payment of first call) Bank A/c ...................Dr To 12% Pref. Share Capital A/c To Share Premium A/c (Being 750 shares re-issued at 120 per share fully paid up) Share forfeited A/c ...................Dr To Capital Reserve (Being the balance of Share forfeited account transferred to capital reserve) |
30,00,000 |
|
OR
Q The following balances appeared in the books of Madhu Ltd. as on 1st April 1997:
| 12%
Debentures Debenture Redemption Fund Debenture Redemption Fund Investments |
Rs.
1,50,000 |
The Debenture
Redemption Fund Investments were represented by Rs. 1,30,000 9% government securities.
The annual instalment added to the fund was Rs. 20,600. On 31st March 1998 the
bank balance before the receipt of interest on investments was Rs. 40,000. On
that date all the investments were sold at 84% and the debentures were duly
redeemed.
Prepare Debentures Accounts, Debenture Redemption Fund Account, Debenture
Redemption Fund Investment Account and Bank Account for 1997-98. The company closes its
books on 31st March every year. (Marks 11)
Ans. Dr Debenture Redemption fund A/c Cr
| Date | Particulars | Amt. | Date | Particulars | Amt. |
| 31/3/98 31/3 |
To Debenture
Redemption fund Investment A/C (Loss on sale) To General Reserve (Transfer) |
|
1/4/97 31/3/98 31/3/98 |
By balance b/d
By Bank A/c (Interest on Debenture Redemption fund Investment) By P/L Appropriation A/c |
1,25,000 |
12% Debentures A/C
| 31/3/98 | To Bank A/C |
1,50,000 |
1/4/97 | By Balance b/d |
1,50,000 |
Debenture Redemption Fund Investment A/c
| 1/4/97 |
To balance b/d
(Save Value 1,30,000) |
1,25,000 |
31/3 31/3 |
By Bank
(84% of 1,30,000) By Debenture Redemption fund A/c (Loss on sale) |
|
Bank A/C
| 31/3 31/3 31/3 |
To balance b/d
To Debenture Redemption fund A/c (Interest) To Debenture Redemption fund Investment A/c |
40,000 |
31/3 | By
Debentures A/c By balance c/d |
1,50,000 |
Q9) A, B and C were partners sharing profits in the proportions of 1/2, 1/3 and 1/6 respectively. The Balance Sheet of the firm on 31st March 1998 was as follows:
|
Liabilities
|
Amt. (Rs.)
|
Assets
|
Amount (Rs.)
|
| Sundry
Creditors Provident Fund Reserve Fund Capitals: A B C |
12,600
3,000 9,000 40,000 36,500 20,000 1,21,100 |
Cash
at Bank Debtors Rs. 30,000 Less Provision Rs. 1,000 Stock Investments Patents Plant and Machinery |
4,100
29,000 25,000 10,000 5,000 48,000 1,21,100 |
(i) Goodwill of the firm was valued at Rs. 27,000, but it was not to remain in the books of the new firm.
(ii) Value of the patents was to be reduced by 20% and that of Plant and Machinery by 10%.
(iii) Provision for doubtful debts was to be raised to 6%.
(iv) C took over the Investments at a value of Rs. 15,800.
(v) Liability on account of Provident Fund was only Rs. 2,500.
Show the necessary journal entries for the treatment of goodwill, prepare revaluation account, Capital accounts of the partners and the Balance Sheet of A and B after C's retirement. (Marks 14)
Ans 9)
Journal
| Date |
Particulars
|
LF |
Amt. Dr
|
Amt. Cr
|
|
Goodwill A/c Dr
To A's Capital A/c. To B's Capital A/c To C's Capital A/c (Being goodwill raised and divided amongst old partners in their old profit sharing ratio) A's Capital A/c ...................Dr B's Capital A/c ...................Dr To Goodwill (Being goodwill written off between remaining partners in their new ratio) |
27000 |
|
Dr..........................................................Revaluation A/c......................................Cr.
|
To Patents A/c
To Plant and Machinery A/c To debtors |
1000 |
By Investment A/c
By Provident Fund By loss transferred To A's Capital A/c B's Capital A/c C's Capital A/c |
5800 |
Dr........................Partners' Capital A/c....................................... Cr.
|
Particulars
|
A | B | C |
Particulars
|
A
|
B
|
C
|
| To
Revaluation A/c (Loss) To Goodwill A/c To Investment To C's Loan A/c To Balance c/d |
150 16200 41650 _____ |
100 10800 37600 _____ |
50 15800 10150 _____ _____ |
By
balance b/d By Reserve Fund By Goodwill A/c |
40000 4500 13500 _____ _____ |
36500 3000 9000 _____ _____ |
20000 1500 4500 _____ _____ |
Balance Sheet of A and B as on ...
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
|
Sundry Creditors
Provident Fund Capitals: A B ....C's loan |
12600 |
Cash at bank
Debtors 30000 Less: Provision 1800 Stock Patents Plant and Machinery |
4100 |
OR
Q 9 Following is the Balance Sheet of Hari, Ram and Shyam as
on 31st December 1994.
|
Liabilities
|
Amount (Rs.)
|
Assets
|
Amount (Rs.)
|
|
|
Sundry creditors
Reserve fund Capital Accounts: Hari Ram Shyam |
3,000
3,200 10,000
5,000
5,000 |
Tools
Furniture Stock Debtors Cash at Bank Cash in Hand |
1,000
8,000 6,000 6,000 5,000 200 |
|
|
26,200 |
26,200 |
|||
(a) Amount standing to the credit of his Capital Account.
(b) Interest on capital which amounted to Rs. 62.50.
(c) His share of goodwill Rs. 3,500.
(d) His share of profit from the closing of the last financial year to the date of death which amounted to Rs. 437.50.
Ram's executor was paid Rs. 1,800 on 1st April 1995 and the balance in four equal yearly instalments starting from 31/3/1996 with interest @ 6% p.a.
Pass the necessary Journal entries and draw up Ram's Account to be rendered to his executor and Ram's Executor's account till it is finally paid.
Ans. 9
Journal
| Date |
Particulars
|
LF |
Amt.
|
Amt. |
|
Reserve Fund
To Ram's Capital A/c (Being Ram's share of reserve fund transferred to his capital A/c) Interest on Capital To Ram's Capital A/c (Being his interest on capital transferred to his capital A/c) Goodwill A/c Dr To Ram's Capital A/c (Being Ram's share of goodwill transferred to his capital A/c) P/L suspense A/C Dr To Ram's Capital A/c (Being Ram's share of profit to his date of death transferred to his capital A/c) Ram's Capital A/c Dr To Ram's Executor's A/c (Being the balance of Ram's Capital A/c transferred to his Executors A/c) |
1067 |
|
RAM'S CAPITAL A/C
| Date | Particulars | Amt. | Date | Particulars | Amt. |
| 31/3/95 | To Ram's Executors A/c |
10067 |
31/3/95 31/3 31/3 31/3 31/3 |
By
balance b/d By Interest on Capital By Goodwill By Reserve Fund By P/L Suspense A/c |
5000 |
RAM'S EXECUTORS A/C
| 31/3/95 1/4/95 31/3/96 31/3/97 31/3/97 31/3/98 31/3/98 31/3/99 |
To balance C/d
To bank A/c To bank (2067+ 496) To balance c/d To bank A/c (2067+ 372) To balance c/d To bank A/c (2067 + 248) To balance c/d To bank A/c |
10067 |
31/3/95
1/4/95 31/3/96 1/4/96 31/3/97 1/4/97 31/3/98 1/4/98 31/3/99 |
By Ram's Capital A/c
By balance b/d By Interest A/c (6% on 8267) By balance b/d By Interest A/c (6% on 6200) By balance b/d By Interest A/c (6% on 4133) By balance b/d By Interest (6% on 2066) |
10067 |