1. business and industrial

CTA’s Sample Paper No. 4
Class – XII
Accountancy
Courtesy: Mr. Pramod Dalmia (Member Advisory Board)
Time allowed: 3 hours
Maximum Marks:80
1
What purpose is served by calculating gaining ratio on retirement of a partner?
2
A sleeping partner has contributed 75% of the total capital of the firm, in absence 1
of a deed, what share of profit is he/she is entitled to have?
3
Why is it necessary to distribute accumulated reserves and surplus at the time of 1
admission of a new partner?
4
Z Ltd wants to issue its shares at premium of 20%. Can it do so even if its articles 1
are silent? Also state the stage, when any company can demand the amount of
premium.
5
Why discount on issue of shares account is credited at the time of forfeiture of 1
shares which were originally issued at discount?
6
On 1st April, 2013 KLM Ltd. issued 12% Debentures of `10,00,000. On 1st October, 1
2013 it further placed 10% Debentures of `6,00,000 as collateral security against
the bank loan of `4,00,000. What amount of interest on debentures will the
company have to pay on 31st March, 2014?
7
Mr. G and Mr. H are equal partners in a firm. Mrs. G has given loan of `60,000 to 1
the firm. Firm has also taken loan from Mr. H for `40,000. Firm was dissolved and
its assets realized `80,000. Giving reason, state the order in which payment of
loans should be made by the firm, assuming that there are no other liabilities.
8
Leena, Meena and Seema are partners sharing profits and losses in the ratio of 3
5:3:2. They decide to share future profits in the ratio of 2:1:2. On the date of
change, Workmen Compensation Fund appears at `20,000. There is a workmen
claim of `12,000. You are required to give journal entries in each of the following
cases, if partners decide to maintain workmen compensation fund in the new firm
at –
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a)
`8,000
b)
`20,000
c)
`25,000
1
3
A company purchased a running business from M/s. Raja Brothers for a sum of
`1,50,000; payable as –
`95,000 in 10% debentures of `100 each issued at discount of 5% and
redeemable at 10% premium and the balance amount in cash.
The assets and liabilities consisted of the following:
Plant and machinery ` 40,000; Building ` 40,000; Sundry Debtors ` 30,000; Stock
` 50,000; Cash ` 20,000 and Sundry Creditors ` 20,000
You are required to pass the necessary journal entries in the company’s
books.
10
Veena Ltd., issued for public subscription 50,000 equity shares of `10 each. 3
Applications were received for 1,00,000 shares. Company allotted in full to its
employees. It also gave preferential allotment of 75% of the shares applied to the
applicants from underprivileged section. All others were allotted on pro-rata basis.
Which value was followed or not followed by the company in allotment of shares?
11
X and Y share profits and losses in the ratio of 4:3. W and Z, are admitted in the 4
firm as new partners. Z being son of Y, thus Y gifted his half share to him and X
1
surrenders his half share to W. Goodwill of the firm on the date of admission was
valued at `2,10,000. W and Z bring `2,00,000 and `3,00,000 as capital
respectively and the necessary amount of goodwill share. The profits of the first
year of the new firm amounted to `4,90,000. Give journal entries at the time of
admission and for distribution of profits a year after.
12
On 1st April, an existing firm had total assets of `2,50,000 including cash of 4
`10,000, profit & loss account `15,000. The liabilities included partner’s loan to
the firm `25,000 and creditors `30,000. The actual profit of the firm amounted to
`80,000. Partners have decided to raise the salary of manager by `1,000 p.m. and
also to take a godown for business purpose from a partner on a monthly rent of
`2,000. The normal rate of return in similar type of business is 10%. Calculate
goodwill of the firm on the basis of –
a) Super profit at 3 years’ purchase and
b) Capitalization method.
13
PQR Ltd has an authorized capital of `100,00,000 divided into equity shares of 4
`10 each. Company offered `50,00,000 equity shares to the public for
subscription at 20% premium payable as under:
On application `2,
On allotment (with premium) `5
On first call `3
On second and final call `2
Applications were oversubscribed by 1,00,000 shares. All the shareholders were
allotted on pro-rata basis. Company did not make the second and final call. All
money due were received except allotment money and first call on 4500 shares
held by ‘X’ and first call on 1,000 shares held by ‘Y’. Company forfeited shares of
‘X’ and re-issued half of them as fully paid to ‘S’ for `20,000.
Calculate the amount of capital that will appear as ‘Subscribed but not fully paid’
in the Balance Sheet of the company as per Revised Schedule VI.
14
DN Ltd., issued 50,000 shares of `10 each at a discount of 10% payable as `2 per 4
share on application (1.4.2013), `3 on allotment (30.04.2013) and `2 each on first
(01.10.2013) and final call (31.12.2013)
Applications were received for 70,000 shares. It was decided:
(i) to refuse allotment to the applicants for 10,000 shares.
(ii) to allot 20,000 shares to Maya who has applied for similar number and
(iii)to allot the remaining shares on pro-rata basis.
Maya failed to pay the allotment money and first call, she paid the dues with
second call. Another shareholder Sonam who belonged to category iii) and was
allotted 3,000 shares paid both the calls with allotment.
You are required to calculate the –
a) amount received on allotment and
b) interest as per ‘Table A’ of the Companies Act.
15
On 31st March, 2013 after the close of the accounts, the capital accounts of X and 6
Y stood in the books of the firm at `2,40,000 and `3,00,000 respectively. On 1 st
May, 2012, X introduced an additional capital of `60,000. On 1 st October 2012, X
withdrew `1,20,000 from his capital. Partnership deed provided that:
a)
Partner’s be allowed interest on capital is allowed @6% p.a.
b)
Interest on Y’s loan of `2,00,000 be provided @9% p.a.
c)
Interest on drawings be charged from the partners @ 12% p.a.
d)
Profits and losses be divided among the partners in the ratio of 2:3.
Subsequently, it was found that profits for the year ended 31 st March, 2013
amounted to `1,20,000 was divided among the partners in the ratio of 3:2,
2
without above adjustments given in the deed. During the year partners’
drawings had been: X `60,000 and Y `30,000. Give adjustment entry in the
books of the firm.
16
Pass the necessary journal entries on the dissolution of firm of X, Y and Z, 6
assuming that all outside liabilities and realizable assets have been transferred to
Realisation Account.
a) ‘X’ was to receive 2% of the value of assets realized as remuneration for
completing the dissolution work and was to bear realization expenses.
Realisation expenses were `1,000 paid by X. The assets (including cash
and bank `3,000) realized `1,53,000.
b) P, a creditor to whom `20,000 were due, took over Patents having a book
value of `30,000 at 80%. Balance was settled in cash.
c) Loan from ‘Z’ of `22,000 appears on the liabilities side of balance sheet of
the firm and the Z’s capital account showed a debit balance of `2,000.
17
Garima Ltd. issued 20,000 equity shares of `10 each at a premium of `4 per 8
share, payable as under:
`3 on application on 1st May, 2013 (including premium `1)
`4 on allotment on 1st June, 2013 (including premium `1)
`3.50 on 1st call on 1st August, 2013 (including premium `1)
`3,50 on 2nd call on 1st October, 2013 (including premium `1)
All the shares were duly applied and allotted and the money was received on due
dates with the exception of the following:
(i) ‘A’ who had applied for 300 shares, paid the entire amount on application.
(ii) ‘B’ who was allotted 400 shares, paid the entire amount on allotment.
(iii) ‘C’ a holder of 200 shares paid second call money along with first call.
(iv) ‘D’ another shareholder holding 400 shares paid first call along with second
call money.
(v) ‘E’ a holder of 200 shares failed to pay allotment and first call in time, he paid
the dues alongwith second call money.
(vi) ‘F’ a holder of 100 shares did not pay allotment and calls in time.
Journalise the transactions.
OR
a)
Gopal applied for 2,000 shares of `10 each at a premium of `2.50 per
share. But he was allotted only 1,000 shares. After having paid `3 per share
on application, he did not pay allotment money of `4.50 per share (including
premium) and on his subsequent failure to pay the first call of `2 per share,
his shares were forfeited. Half of his shares were re-issued at the rate of `8
per share credited as fully paid. Pass journal entries to record the forfeiture
and re-issue of shares assuming that the company follows the practice of
adjusting the excess application money towards the other sums due on
shares.
b)
Zebra Ltd offered its `10 equity shares at a premium of `4, payable as `4
on application, `4 on allotment, `3 on first call and the balance on second and
final call. All the installments included premium of `1 each. Company forfeited
200 shares of Mr. Y who had applied for 240 shares. Out of these 100 shares
were re-issued to Mrs.K credited as fully paid for `9 per share. Pass journal
entries to record the forfeiture and re-issue of shares assuming that Zebra Ltd
follows the practice of adjusting excess application money towards the other
3
sums due on shares.
18
(4+4)
Murari and Vora are partners in a firm with capitals of `1,20,000 and `1,60,000 8
respectively. On 1.4.2013 they admitted Yadav as a partner for one-fourth share
in profits on his payment of `2,00,000 as his capital and `90,000 for his onefourth share of goodwill.
On that date the creditors of Murari and Vohra were `60,000 and Bank Overdraft
was `15,000. Their assets apart from cash included Stock `10,000; Debtors
`40,000; Plant and Machinery `80,000; Land and Building `2,00,000. It was
agreed that stock should be depreciated by `2,000; Plant and Machinery by 20%,
`5,000 should be written off as bad debts and Land & Building should be
appreciated by 25%.
Prepare Revaluation Account, Capital Accounts of Murari, Vohra and Yadav and
the Balance sheet of the new firm.
OR
On 31 March, 2011, the balance Sheet of P, Q and R who were partners in a firm,
Was as under:
st
Liabilities
`
2,10,000
Sundry Creditors
40,000
Employees Provident Fund
Employees Compensation
80,000
Reserve
Contingency Reserve
1,20,000
Capitals
P: 1,50,000
Q: 1,00,000
R : 1,00,000
3,50,000
8,00,000
Assets
Buildings
Investments
Debtors
Bills Receivables
Stock
Cash
`
2,60,000
1,50,000
1,50,000
60,000
1,20,000
60,000
8,00,000
The partnership deed provides that the profit be shared in the ratio of
2:1:1 and that in the event of death of any partner, his executers will be entitled
to be paid out:
(a) The capital to his credit at the date of last balance sheet:
(b) His proportion of reserve at the date of last Balance Sheet ;
(c) His proportion of profits to the date of death based on the average profits of
the last three completed years, plus 10% and
(d) By way of goodwill, his proportion of the total profits for the three preceding
years .
(e) The net profit for the three years ending 31st March were:
2009
`1,60,000
2010
`1,60,000
2011
`1,54,000
st
R died on 1 of July, 2011. He had withdrawn `50,000 to the date of this death.
The investments were sold at par and R’s executors were paid off.
4
Prepare partners capital accounts, R’s Executor’s Account and Balance Sheet of
the surviving partners P and Q
Part B: Analysis of Financial Statements
19
State one objective of calculating Activity Ratios.
1
20
List any two objectives of preparing cash flow statement.
1
21
Give an example of an investing activity which results in inflow of cash and cash
equivalent, in case of all types of companies.
1
22
How will you disclose the following items while preparing the Balance Sheet of a
company, as per the Revised Schedule VI of the Companies Act.?
a) Interest accrued and due on borrowings
b) Provident Fund payable
c) Mastheads and Publishing Titles
3
23
24
a) A company has debt equity ratio of 3:1. The company redeems its `8,00,000 4
10% Debentures by converting, half of them into equity shares and the
remaining half in cash. What effect will it have on the ratio?
b) A company had a liquid ratio of 1.5 and current ratio of 2 and inventory
turnover ratio 6 times. It had total current assets of `8,00,000. Find out
annual sales if goods are sold at 25% profit on cost.
(1+3)
From the following information, prepare Comparative Balance Sheets of X Ltd.:
Particulars
31.03.2013 `
31.03.2012 `
12,00,000
6,00,000
--
1,00,000
1,20,000
1,00,000
Current Assets
15,20,000
8,00,000
Share Capital
10,00,000
10,00,000
Trade Payables
12,70,000
9,00,000
Tangible Assets
22,30,000
20,00,000
4,00,000
5,00,000
Reserves and Surplus
Goodwill
Investments
Long Term Borrowings
25
4
From the following information, calculate Cash from Operating Activities.
Particulars
Note
No.
31.3.2013
`
6
31.3.2012
I. EQUITY AND LIABILITIES
(1) Shareholders’ Funds
(a) Share Capital
1
7,00,000
7,50,000
(b) Reserves & Surplus
2
3,60,000
20,000
2,50,000
1,50,000
50,000
50,000
(2) Non Current Liabilities
Long Term Borrowing (8% Debentures)
(3) Current Liabilities
(a) Short Term Borrowings (8% Loan)
5
(b) Trade Payables
1,05,000
1,00,000
15,000
10,000
14,80,000
10,80,000
8,60,000
6,20,000
15,000
20,000
1,25,000
1,00,000
5,000
15,000
(b) Inventories
3,00,000
1,40,000
(c) Trade Receivables
1,00,000
1,60,000
75,000
25,000
14,80,000
10,80,000
(c) Other Current Liabilities (Bank OD)
Total
II. ASSETS
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets (Goodwill)
(b) Non – Current Investments
(2) Current Assets
(a) Current Investments
(d) Cash and Cash Equivalents
Total
Notes to Accounts:
1: Share Capital
31.03.2013
31.03.2012
Equity Shares of `10 each
5,00,000
4,50,000
5% Preference Shares of `100 each
2,00,000
3,00,000
7,00,000
7,50,000
1,50,000
1,20,000
10,000
--
2,00,000
(1,00,000)
3,60,000
20,000
2: Reserves and Surplus
General Reserve
Securities Premium Reserve
Balance in Statement of Profit and Loss
Additional Information:
A piece of machinery costing `60,000 on which depreciation charged was `20,000
was sold for `20,000. Depreciation provided on fixed assets `60,000. Preference
shares were redeemed at a premium of 5% on 31st March, 2013. Additional
Debentures were issued at par on 1st Oct., 2012. Dividend on equity shares @8%
was paid on opening balance. Income tax `5,000 has been paid in advance during
the year.
6