1. hobbies and interests
2. inventors and patents

SAMPLE PAPER-I - IV
SAMPLE PAPER-I
ACCOUNTANCY
CLASS XII
Q1. What is the nature of Receipts & Payments Account? (1 Mark)
Q2. A and B are partners sharing profits in the ratio of 2:1. C is admitted for 1/4th share. Calculate new and
sacrificing ratio. (1 Mark)
Q3. Name the two items that would appear in credit side of Partner’s Capital account when capitals are
fixed. (1 Mark)
Q4. How is provision for doubtful debt treated at the time of dissolution of firm? (1 Mark)
Q5. State any two purposes for which Securities Premium A/c can be utilized. (1 Mark)
Q6. How will you deal with the Donation while preparing the final accounts for the year ending on 31/3/08
in each of the following cases: (3 Mark)
(a) During the year 2007-08, donation received Rs.50,000 and it is treated as capital item as per the policy
of the club.
(b) During the year 2007-08, donation received Rs.50,000 and 60% of the donation is to be capitalized as
per the policy of the club.
Q7. 500 shares of Rs.100 each issued at a discount of 10% were forfeited for non-payment of allotment
money of Rs.50 per share. The first and final call of Rs.10 per share on these shares was not made. The
forfeited shares were reissued at Rs.80 per share fully paid up. Journalise.(3 Mark)
Q8. A company redeemed its Rs.2,00,000 debentures at 10% premium out of profits. The company has
sufficient profits for the purpose. Pass necessary journal entries.(3 Mark)
Q9. A, B and C are partners sharing profits and losses in the ratio 5:3:2. Their capital on 1/1/09 were
Rs.1,00,000, Rs.80,000 and Rs.60,000 respectively. They withdrew Rs.500 each on first day of every
month. According to their partnership agreement they are allowed interest on capital @ 5% and charged
interest on drawings @ 6% per year. The profits for the year 2009 as per Profit and Loss A/c amounted to
Rs.1,50,000 out of which Rs.10,000 were transferred to General Reserve. A and B were entitled to a salary
of Rs.2,500 and Rs.2,000 per year and C is entitled to a commission of 5% on net divisible profit after
charging such commission. Prepare Profit and Loss Appropriation A/c and show your workings clearly.
(4 Mark)
Q10. P, Q and R were sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio
of 2:3:5 with effect from 1/4/2009. They decided to record the effect of the following without affecting the
book value of Profit & Loss A/c (Cr.) Rs.24,000 and Advertisement Suspense A/c Rs.12,000. Pass the
necessary adjusting entry. (4 Mark)
Q11. XYZ Ltd. purchased sundry assets worth Rs.3,81,000 and assumed liabilities of Rs.81,000 from ABC
Ltd. The purchase consideration was agreed at Rs.2,80,000. The amount was to be paid by 8%debentures
of Rs.100 each at a premium of 25%. Give necessary journal entries. (4 Mark)
Q12. X Ltd. Issued 2,00,000 shares of Rs.10 each payable as Rs.2.50 on application (on 1/1/09),
Rs.2.50.on allotment ( on 1/4/09), Rs.3 on first call ( on 1/7/09) and Rs.2 on second & final call (on
1/10/03). All the shares were subscribed and all the sums were duly received. Amit, a shareholder, who had
1,000 shares paid the amount of first and second calls with the allotment.Whereas Sumit, another
shareholder, paid the amount of first call with the second call. Company adopted Table A for interest on calls
in arrears and calls in advance. Pass necessary journal entries. (6 Mark)
Q13. From the following Receipts & Payments A/c of a club and adjustments prepare Income &
Expenditure A/c and Balance Sheet as on 31/12/09: (6 Mark)
Receipts
Rs.
To balance b/d
1,90,000 By salaries
To Subscriptions
6,60,000 By sports equipment 4,00,000
To interest on investments @8%p.a. for full year 40,000
Assets
By balance c/d
8,90,000
Rs.
3,30,000
1,60,000
8,90,000
Additional information:

The club had received Rs.20,000 for subscription in 2008 for the year 2009.

Salaries had been paid for 11 months only.

Stock of sport equipment on 31/12/08 was Rs.3,00,000 and on 31/12/09 Rs.6,50,000.
Q14. X and Y are two partners sharing profits & losses equally. Give the journal entries at the
time of dissolution in the following cases: (6 Mark)

Deferred revenue advertising expenses appeared at Rs.30,000.

Realisation expenses paid by the firm amounted to Rs.1,500 and partners have agreed to bear the
realization expenses.

Profit and Loss A/c was appearing on the asset side of balance sheet at Rs.40,000.
Q15. A and B are partners of a firm. They admit C for 1/3rd share. Their Balance Sheet as on 31/03/09 was
as under: (8)
Liabilities
Amount Assets
Amount
Creditors
20,000
Goodwill
12,000
Employees Provident Fund 8,000
Buildings
40,000
Bills Payable
6,000
Machinery
28,000
General Reserve
12,000
Furniture
6,000
Capitals: A
60,000
Stock
26,000
B
40,000
Book Debts 22,000
Cash
1,46,000
12,000
1,46,000
On C’s admission it was agreed:

C should bring Rs.1,00,000 as capital and Rs.5,000 as his share of goodwill.

Goodwill appearing in the books should be written off.

Provision for loss on stock and provision for bad debts is to be made at 10% and 5% respectively.

The value of building is to be taken at Rs.50,000.
Total capitals of the firm has been fixed at Rs.3,00,000 and Partners Capital A/cs are to be adjusted in the
profit sharing ratio. Any excess is to be transferred to current a/cs and deficit is to be brought in cash.
OR
The Balance Sheet of X,Y and Z who shared profits in the ratio of 4:3:2 as on 31/03/200 was as
follows:
Liabilities
Amount Assets
Amount
Creditors
7,700
Cash at Bank
6,300
General Reserve 1,800
Debtors 6,000
Capitals:
Less: Provision 300 5,700
X
19,000
Stock
7,000
Y
14,000
Plant & Machinery
10,500
Z
12,000
Buildings
25,000
54,500
54,500
Y retired on the above date and it was agreed that:

Stock to be depreciated by 5% and building be appreciated by 5%.

A provision of Rs.320 be made for legal charges.

Goodwill of the firm is valued at Rs.14,400 but no goodwill account is to be raised.

X and Z to share future profits in the ratio 5:3.

Y to be paid Rs.5,000 in cash and balance to be transferred to his loan account.
X and Z to maintain their capitals in the new profit sharing ratio and to bring in or withdraw cash for the
purpose. Capital of the new firm be fixed at Rs.28,000. Prepare ledger accounts and balance sheet of the
firm after Y’s retirement.
Q16. X Ltd. was registered with a nominal capital of Rs.2,00,000 divided into 2,000 equity shares of Rs.100
each. 1,000 shares were issued as fully paid to the vendors for purchase of fixed assets. The remaining
1,000 shares were offered for public subscription at a premium of Rs.5 per share payable as Rs10 per share
on application, Rs.25 per share (including premium) on allotment, Rs.40 per share on first call and Rs.30
per share on final call. Applications were received for 900 shares which were duly allotted. At the time of the
first call, a shareholder who held 100 shares failed to the first call money and his shares were forfeited.
These shares were reissued at Rs.60 per share, Rs.70 paid up. Final call was not made. Pass necessary
journal entries. (8 Mark)
OR
Abhishek Ltd. invited applications for 50,000 shares of Rs.10 each at a discount of Rs.2 per share
payable as Rs.2 on application, Rs.3 on allotment, Rs.2 on first call and Rs.1 on final call.
Applications were received for 70,000 shares. Allotment was made as under:
To applicants of 10,000 shares - in full
To applicants of 20,000 shares - 15,000 shares
To applicants of 40,000 shares - 25,000 shares
The shares were fully called and paid up except amounts on allotment, first and final call not paid by those
who applied for 2,000 shares out of group applying for 20,000 shares. These shares were forfeited and
1,200 of these shares were reissued @ Rs.7 per shares. Journalise.
PART B
(ANALYSIS OF FINANCIAL STATEMENTS)
Q17. Name two parties who may be interested in analysis of financial statements. (1 Mark)
Q18. How will you treat increase in share capital while preparing cash flow statement as per AS-3 (revised).
(1 Mark)
Q19. What are the two major inflow and outflows of cash from investing activities? (1 Mark)
Q20. Under what heading will you classify the following items in the balance sheet of a
Company? (3 Mark)
(i) Advances to suppliers
(ii) Goodwill
(iii) Deposit with Custom Authorities
(iv)Debenture Suspense A/c
(v) Acceptances
(vi) Provision for Provident Fund
Q21. From the Balance Sheets as on 31st March 2008 and 2009, prepare the Comparative
Balance Sheet: (4 Mark)
Liabilities
2008(Rs.) 2009(Rs.) Assets
2008(Rs.) 2009(Rs.)
Current Liabilities 4,00,000
7,00,000
Current Assets 8,00,000
Reserves
5,00,000
3,50,000
Fixed Assets
12% Loan
7,00,000
11,00,000
Share Capital
8,00,000
15,50,000
24,00,000 37,00,000
14,00,000
16,00,000 23,00,000
24,00,000 37,00,000
Q22. Total sales of a company is Rs.8,00,000 and cash sales is Rs.70,000. Average collection period is 25
days, calculate the amount of debtors that will appear in the Balance Sheet. (4)
Q23. From the following Balance Sheets of X Ltd, prepare Cash Flow Statement:(6 Mark)
Liabilities
31/3/06 (Rs.) 31/3/07 (Rs.) Assets
31/3/06 (Rs.) 31/3/07 (Rs.)
Equity Share Capital
2,00,000
6,10,000
3,50,000
Fixed Assets (Net)
8,60,000
15% Pref. Share Capital 2,00,000
1,50,000
Investments (long term)
30,000
50,000
12% Debentures
1,25,000
2,00,000
Investments (Short term) 5,000
8,000
Reserves
1,10,000
2,50,000
Debtors
80,000
61,000
Bank Overdraft
10,000
12,000
Bank
5,000
2,000
Current Liabilities
83,000
15,000
Cash
1,000
8,000
Tax Provisions
11,000
18,000
Discount on Shares
8,000
6,000
7,39,000
9,95,000
7,39,000
9,95,000
Additional information:

Preference Shares were redeemed on 31/3/07 at premium of 10%.

Dividend at 12% was paid to Equity shares for the year 2006.

Depreciation provision stood at Rs.1,00,000 and Rs.1,50,000 on 31/03/06 and 31/03/07.
SAMPLE PAPER-II
ACCOUNTANCY
Part A: Accounting for Not-For Profit Organizations, Partnership Firms &
Companies
Q.1. How is life membership fees are treated in the accounts of a non-profit organization? (1 Marks)
Q.2. If the capital accounts of partners are fixed, where will you post the following items: (1
Marks)
(a) Interest on capital
(b) Additional capital
Q.3. What is meant by minimum subscription? (1 Marks)
Q.4. State the types of debentures from security point of view. (1 Marks)
Q.5. What is meant by calls in arrears? (1 Marks)
Q.7. You, the director of a company have invited applications for 20,000 equity shares of Rs 10 each.
Applications were received for 28,000 shares. Name the kind of subscription. Give three alternatives for
allotting these shares. (3)
Q.8. Victory Ltd issued 20,000 equity shares of Rs 100 each at par on 1st April 2007. The
amountwas payable as under: On Application & Allotment Rs 50 per share On 1st April 2007; On
1st & Final call Rs 50 On 30th June 2007. (3 Marks)
All the shares were duly subscribed and paid for except Mohan to whom 1000 shares were allotted failed to
pay the final call on its due date which he paid on 1st September 07. Give necessary journal entries
assuming that the company follows ‘Table A’ of Companies Act,
1956.
Q.9. A Ltd issued 5,000, 9% Debentures of Rs 100 each at par and also raised a loan of Rs 3,00,000 from
bank collaterally secured by Rs 4,00,000, 9% debentures. How will you show the Debentures in the Balance
Sheet of the company assuming that the company has recorded the issue of Debentures as collateral
security in its books? (3 Marks)
Q.10. Shiv and Shanker were partners in a firm sharing profits in the ratio of 3:2. Their fixed
capitals were Rs 1,70,000 and Rs 2,10,000 respectively. The partnership deed provides for the
following; (4 Marks)
(a) Interest on capital @ 12% p.a.
(b) Interest on drawings @ 18% p.a. Shiv drew Rs 12,000 on 30.06.06 and Shanker drew Rs 18,000 pm
30.09.06. The profit for the year ended 31st March 2007 was Rs 97,000, which was distributed among the
partners without providing for the above adjustments. Pass adjustment entry.
Q.11. A, B & C were partners in the ratio of 2:2:1. The books are closed on 31st March each year.
B died on 1st June 2006. As per the terms of deed deceased partner’s share in current accounting
year was to be calculated on the basis of average profit of last four years preceding the death of
partner. The profits and losses were as under: (4 Marks)
2001-02
Rs 30,000 Profit
2002-03
Rs 20,000 Profit
2003-04
Rs 60,000 Profit
2004-05
Rs 40,000 Profit
2005-06
Rs 10,000 Profit
Goodwill of the firm was to be twice the profits amount credited to deceased partner’s account in last five
years. You are required to calculate deceased partner’s share in current year’s profit & goodwill & pass
necessary journal entries to record this.
Q.12. X Ltd has a balance of Rs 5,00,000 in the profit and loss Account. The company decides to forego the
payment of dividend and instead utilizes the profits to repay 12% Debentures of Rs 3,50,000 on June 30th
2008 at a premium of 10%. Debentures interest is payable annually on 31st March. The company also has a
balance of Rs 2,00,000 in the Debenture Redemption Reserve Account. Journalize the above transactions in
the books of X Ltd. (6 Marks)
Q.13. From the following information prepare Income and Expenditure Account for the year
ended 31st March 2007 and Balance Sheet of Mehta Club as at 31st March 2007.
Receipts
Rs.
Payments
Rs.
By Furniture
To Balance b/d
2,750 By Salaries
To Interest on Investments 2,875 By Miscellaneous Expenses
To Donations
21,250 By Telephone Charges
To Subscriptions
35,000 By Fax Machine
To Rent Received
15,000 By Investments
To Sale of old Newspapers
375 By Printing & Stationery
By Balance c/d
3,750
18,125
18,125
16,125
7,500
18,750
500
12,250
77,250
77,250
Additional Information:
Subscriptions received included Rs. 750 for 2007-08. The amount of Subscriptions
Outstanding on 31.032007 was Rs. 625; Salaries during 2006-07 unpaid were Rs. 875 and
Rent receivable was Rs. 250, 60% of the Donations were to be capitalized. Capital Fund as at
31st March 2006 was Rs. 12,750 and club also had investments of Rs. 10,000.
Q.14. A & B were partners in the ratio of 3:2. Due to heavy losses they decided to dissolve their
business. Give journal entries for each of the following transactions: (Assume that assets other
than cash & Bank and External liabilities have been transferred to Realization Account) (6 Marks)
(a) Furniture of the book value Rs 40,000 was realized at 85%.
(b) Stock appeared in the books at Rs 30,000,1/2 of which was taken over by B at 5% discount.
(c) The remaining stock was accepted by Bank against their loan of Rs 18,000.
(d) B agreed to pay off his wife’s loan of Rs 3,000 and took away unrecorded investments of Rs 2,000 at an
agreed valuation of Rs 1,800.
(e) The general reserve appeared in the books at 7,200
(f) The loss on realization amounted to Rs 4,500.
Q15. (a) FAST Ltd forfeited 100 shares of Rs 10 each (Rs 8 called up) for non-payment of allotment of Rs 2
per share & first call of Rs 3 per share. These shares were issued at 5% discount. Of these 75 shares were
reissued at Rs 6 per share.
(b) FAST Career Ltd forfeited 100 shares of Rs 10 each (Rs 8 called up) for non payment of allotment of Rs
2 per share & first call of Rs 3 per share. These shares were issued at 5% discount. Of these 75 shares were
reissued at Rs 6 per share as fully paid up.
(C) FAST Academic Research Center forfeited 100 shares of Rs 10 each (Rs 9 called up) for non-payment of
allotment of Rs 2 per share & first call of Rs 2 per share. These shares were issued at 10% discount. Of
these 80 shares were reissued at Rs 6 per share as Rs 8 paid up. (8 Marks)
Part B: Analysis of Financial Statements
Q.17. State any two objectives of preparing cash flow statement. (1 Marks)
Q.18. The Debt equity ratio of a company is 2:3.State which of the following would
increase/decrease/not change the
existing ratio: (1 Marks)
(a) Issue of equity shares for cash Rs 1,00,000
(b) Payment to creditors Rs 54,500 in full settlement of Rs 60,000.
Q.19. Calculate the amount of Tax paid from the following information; (1 Marks)
Provision for taxation at the end of the year Rs 31,000
Provision for taxation at the beginning of the year Rs 15,000
Income tax provision created during the year was Rs 43,000.
Q.20. What is a contingent liability explain with suitable example. (3 Marks)
Q.21. Prepare a comparative position statement with the help of following information; (4 Marks)
Particulars
Amounts 2007(Rs) Amounts 2008 (Rs)
Fixed Assets
2,00,000
3,00,000
Equity share capital 1,00,000
1,00,000
Debentures
80,000
50,000
Investments
20,000
20,000
Working Capital
80,000
1,80,000
Reserves & Surplus 1,20,000
3,50,000
Q.22. A firm had current assets of RS 3,00,000. It then paid a current liability of RS 60,000. After this
payment the
current ratio was 2:1. Determine the size of current liabilities and working capital after and before the
payment was
made.(4 Marks)
Q.23. Prepare a Cash Flow Statement from the following information: (6 Marks)
LIABILITIES
AMOUNTS AMOUNTS
ASSETS
2008
2007
AMOUNTS AMOUNTS
2008
2007
Equity Share capital
4,00,000
2,00,000
Building
4,50,000
Pref. Share capital
60,000
80,000
Machinery (NET) 30,000
50,000
15% Debentures
80,000
1,20,000
5% Investments
20,000
50,000
P&L Account
1,10,000
20,000
Sundry Debtors
20,000
60,000
Income Tax Provision 80,000
30,000
Bills Receivables 20,000
10,000
Bills Payable
30,000
10,000
Cash in hand
10,000
General Reserve
40,000
90,000
Misc. Expenditure
10,000
A/c
2,50,000
3,00,000
70,000
PART – A: Not for Profit Organizations, Partnership Firms and Company
Accounts
Q.1.How is sale of an old asset treated in case of not for profit organization? (1 Marks)
Q.2.If a partnership deed is absent, how are the profits and losses of the firm are divided among the
partners? (1 Marks)
Q.3.What is meant by reconstitution of a partnership firm? (1 Marks)
Q.4.Name the methods for calculating deceased partners share of profits. (1 Marks)
Q.5.What is meant by simple or naked debentures? (1 Marks)
Q.6.From the following extracts of Receipt Payment Account and additional information Compute
the amount of income from subscription and show as how they would appear in the income and
expenditure account for the year ending 31st March 2007 and the balance sheet as on that date.
(3 Marks)
RECEIPT AND PAYMENT ACCOUNT
FOR THE YEAR ENDING 31ST MARCH 2007
Receipts
Amount(Rs.) Payments Amount(Rs.)
Subscriptions:
2005-06 =7,000
2006-07=30,000
2007-08= 5,000 42,000
Additional information:
(1) Subscription outstanding on 31st March 2006 was Rs.8,5000
(2) Total subscription outstanding as on 31st March 2007 18,500
(3) Subscription received in advance as on 31st March 2006 Rs.4,000
Q.7. Ashish ltd. Purchased a machinery from Heera Traders valuing Rs. 4,00,000 at 10% Trade discount in
consideration they paid half the amount through Bank draft and remaining half by issue of Equity share of
Rs. 10 each at 10% discount. Pass necessary Journal entries in the books of Asheesh Ltd. (3 Marks)
Q.8. Can A company reissue shares at a discount? If Yes, to what extent? (3 Marks)
Q.9. Pinki,Dipti and Kuku are partners sharing profits and losses in the ratio of 5:4:1.Kaku is given a
guarantee that his share of profits in any given year should not be less than Rs.5,000.Defficiency ,if any,
would be borne by Pinky and Dipti equally. Profit for the year amounted to Rs.4, 00,000.Record necessary
journal entries in the books of the firm showing distribution of profit.
Q.10. Sadhu, pratap and sneha are partners sharing in a firm sharing profits in the ratio of 3:3:2.They
decided to share profits equally with effect from 1st April 2003.On the date the profit and loss account
showed the credit balance of Rs.29, 000.Instead of closing the Profit and Loss account it was decided to
record and adjustment entry reflecting the change in the profit sharing ratio.You are required to record the
necessary journal entries to give effect to the same.
Q.11. A company forfeited 1,300 shares of Rs.10 each issued at a discount of 10% on which application
money of Rs.3 per share was paid and balance remain unpaid .These shares were reissued at Rs.9 per share
as fully paid up. Pass journal entries on forfeiture and reissue of share.
Q.12. (a)P Ltd. Issued 10,000 debentures of Rs.100 each at a discount of 10 % on the condition that the
same will be redeemed at a premium of 10% after two years Pass necessary journal entries for the issue
and redemption of these debentures after expiry of two years.
(b)500 12%Debentures of Rs.100 each were converted into 15% Debentures of Rs.100 each issued at a
discount of 20%.Pass necessary journal entries.
Q13. The following is the Receipts and Payments account of the City club for the year ended 31st
December, 2006
Receipts
Rs.
Payments
To Bal. b/d
To Subscriptions
By Affiliation fee
2005 500
st
By Furniture (July 1 )
2006 15,000
16,500 By sports expenses
2007 1000
12,000 By sundry expenses
To Life membership fee
200
By balance c/d
To sale of scraps
To interest on sports fund investment
2000
35700
Rs.
1,000
3,000
2500
15200
14000
35700
The club has 1600 members each paying an annual subscription of Rs. 10. Subscriptions of Rs. 450 are still
in arrears for 2006. Life membership fees are to be transferred to capital fund. Sports expenses are to be
met out of the sports fund. On January 2006 the club assets and liabilities includes furniture Rs. 2000,
sports fund and 10% sports fund investment at Rs 30000 each. Provide depreciation on furniture @ 20 %
p.a. and prepare income and expenditure account for the year ended 31st December 2006 and a Balance
Sheet as on that date.
Q.14. A, B and C are partners sharing profits in the ratio of 5:3:2. The total capital of the firm was
Rs. 400000 held by them in their profit sharing ratio. B died on 1st July 2006 and he is entitled to
receive the following items:
I. A salary of Rs. 8000 p.m.
II. His share of goodwill which is to be valued at two years purchase of average profit of last three years
III. His share of profits up to the date of death which is to be calculated on the basis of average profit of
last two years.
IV. Interest on capital is allowed @ 5% p.a. but no interest on drawings is to be charged. Amount
withdrawn by him up to the date of death is Rs. 15000. the profit for the last three years were as follows:
2007 – Rs. 425000; 2006 – Rs 325000; 2005 - Rs. 300000.A and C shares future profits in the ratio of 3:2.
Accounting year ends on December, 31st every year. Prepare B’s capital account.
Q.15. KBC Ltd. was floated with a capital consisting of 20000 equity shares of Rs. 100 each. It
offered 10000 shares of Rs. 100 each at a discount of 5% payable as follows: Rs 30 on
application; Rs 35 on allotment; Rs. 30 on first and final call.
Applications were received for 20000 shares. The allotment was made as follows:- Applications for 15000
shares were allotted 10000 shares remaining applications were refused allotment. Money over paid on
application was utilized towards some due on allotment. All the money due on shares was duly received.
Pass necessary journal entries.
OR
Z Ltd invited applications for issuing 40000 equity shares of Rs. 10 each at a premium of Rs.2 per share the
amount was payable as follows:
On application Rs 6 (including Premium) and the balance on allotment. Applications for 50000 shares were
received pro – rata allotment was made to all the applicants. Excess money received on application was
adjusted towards sums due on allotment. A share holder to whom 8000 shares were allotted failed to pay
the allotment money and his shares were forfeited. Later on the forfeited shares were reissued for Rs.
70000 as fully paid up. Pass necessary journal entries in the books of Z ltd. 8
Q.16. A and B are partners in a firm sharing profits in the ratio of 2:1. C is admitted into the firm
with 1/4th share in profit he will bring Rs. 30000 as his capital. Capital of A and B are to be
adjusted in their new profit sharing ratio. The balance sheet of A and B as on 31st March 2008
was as follows:-
Balance Sheet
Liabilities
Amount Assets
Creditors
Bills Payable
General Reserve
Capital Accounts:
A 50000
B 32000
8000
4000
6000
82000
Amount
Cash in Hand
Cash at Bank
Sundry Debtors
Stock in Hand
Furniture
Machinery
Building
100000
2000
10000
8000
10000
5000
25000
40000
100000
Other terms of agreement are as follows:-

C will bring in Rs. 12000 as his share of goodwill.

Building was valued at Rs. 45000 and machinery at Rs. 23000.

A provision for bad debts is to be created @ 6% on debtors.

The capital accounts of A and B are to be adjusted by opening current account. Prepare revaluation
account, Partners capital account and a new Balance Sheet after admission.
PART – B: Analysis of Financial Statements
Q.17. What is the impact of cash collected from debtors on quick ratio of 1:1.
Q.18. How are the various activities classified according to accounting standard 3 (revised) while preparing
the cash flow statement.
Q.19. What is meant by non cash items under cash flow statement?
Q.20. Briefly explain why the creditors and employees are interested in analysis of financial statements.
Q.21. The Profit and loss account of Himani and company for the year ended 31st March 2007 and
2008 are as follows:
Himani & Company
Profit and Loss Account
Particulars
2007
2008
Net Sales
Cost of goods Sold
Gross Profit
Operating Expenses
Net Profit
Income Tax 50% on Net Profit
422300
371000
51300
22700
28600
50%
402000
369000
33000
19900
13100
50%
Compare the percentage changes from 2007 to 2008.
Q.22. calculates any two of the following ratios on the basis of information given below:
1. Liquid Ratio
2. Proprietor Ratio
3. Operating Ratio
Sales Rs. 3,40,000;
Cost of Goods Sold Rs 1,20,000
Selling Expenses Rs. 80,000
Administrative Expenses Rs 40,000
Current assets Rs 1,50,000
Current Liabilities Rs 1,05,000
Closing stock Rs 10,000
Fixed Assets Rs 2,80,000
Equity Share Capital Rs. 2,75,000
General Reserve Rs 2,00,000
Q.23 The Balance Sheet of Lemon limited are presented below :
Balance Sheet of Lemon Limited
As at 31 Dec 2006 And 07
Particulars
Fixed Assets
Less: Accumulated Depreciation
Stock in hand
Accounts receivable
Cash in Hand
Total
Equity Share Capital
Reserve and surplus
10% Debentures
Debenture Redemption premium
Accounts payable
Outstanding Expenses
Total
2006 (Rs. 2007 (Rs)
7,80,000
(3,00,000)
78,000
85,000
47,000
6,90,000
3,00,000
1,18,000
2,00,000
20,000
38,000
14,000
9,75,000
(2,40,000)
93,000
1,02,000
95,000
10,25,000
5,00,000
3,74,000
1,00,000
10,000,
32,000,
9,000
6,90,000
10,25,000
Additional information:
Cash Dividend paid 45,000
The equipment purchased for cash Rs 4,00,000
Old piece of machinery was sold for Rs 45,000 at a loss of Rs 20.000
Equity Share Capital was issued for cash at par
Debenture were redeemed at a premium of 10 %
Calculate Cash Flow from operating, Investing and Financing activities.
SAMPLE PAPER-III
ACCOUNTANCY
PART-A : Accounting for Not for profit Organisation, Partnership and Company
Q.1. How do you treat amount received from individual as per will in the final Accounts of Not For Profit
Organisation. (1 Marks)
Q.2. A partners becomes insolvent,what will be the faith of the firm? (1 Marks)
Q.3.A and B are partners with capital of Rs 200000 and Rs150000.As per the deed they are entitled for
interest on capital @ 10%.During the year the firm made a profit of Rs 10000 before appropriation. What is
the amount of interest to be allowed to the partners? (1 Marks)
Q.4.What is the utility of Debenture Redemption Reserve? (1 Marks)
Q.5. If a partner wants to retire and balance sheet shows a debit balance of Profit and loss Account of Rs
12000,how it should be treated? (1 Marks)
Q.6. Show the following items in the final Account of Not For Profit Organisation. (3 Marks)
Particulars 31/3/07 31/3/08
Outstanding Locker Rent 2650 3720
Advance Rent Received 900 1300
Locker Rent Received during the year 2007-08 is Rs 9000
Q.7. Sony Ltd reissued 1200 shares out of 2000 forfeited shares at Rs 8 as Rs 9 paid up. These shares were
forfeited for non payment of Final call of Rs 2 .Pass Journal entries to Reissue the shares and calculate the
amount to be transfer to the capital Reserve. (3 Marks)
Q.8. JK Ltd Purchased machine worth Rs 320000 from Amrit Ltd. Payment was made as Rs 50000 cash and
remaining amount by issue of equity shared of the face value of Rs 100 each fully paid at an issue price of
Rs 90 each. Pass journal entries in the books of JK Ltd for the above transaction. (3 Marks)
Q.9. A and B are the partners sharing profits in the ratio of 7:5. They agree to admit C their manager, into
partnership who is to get 1/6th share in the business which he acquires 1/24th from A and 1/8th from B.C
brings in Rs 10000 for his share of capital and required cash for Goodwill. On C ‘s admission goodwill of the
firm was valued at Rs 18000.The profit for thr first year after C’s admission was Rs 30000.Give journal
entries in connection to C’s admission and distribution of the profit among partners. (4 Marks)
Q.10. Rolic Ltd redeemed 1000, 15% debentures of Rs 100 each by converting them into 12% Preference
shares of Rs 50 each at 25% premium and 500 15% debentures were purchasing from open market at Rs
97 for immediate cancellation. Pass Journal entries. (4 Marks)
Q.11. M, N and O are partners in a firm having fixed capital of Rs. 1,50,000; Rs. 75,000 and Rs. 60,000
respectively sharing 5 : 3 : 2. The rate of interest on capital was agreed at 10% per annum but was wrongly
credited to them as 12% p.a. Give the necessary adjustment entry to adjust then balances of partner’s
capital account (4 Marks)
Q.12. Delta Ltd issued Rs 2000000, 8% debentures on 1st April 2008 of the face value Rs 100 at Rs 98
redeemable after 5 years at Rs 104.Iterest paid on these debentures on 30th September and 31st March
every year. Income tax deducted is 20%of the amount of interest. Pass journal entries in the books of the
company for 2008-09 (6 Marks)
Q.14. From the following Balance Sheet of Shilpa & Richa as on 31.12.2008 (6 Marks)
LIABILITIES
Rs
ASSETS Rs
Creditor
Shilpa’s Capital
Richa’s Capital
Provision for Bad Debts
General Reserve
X loan
30000
10000
10000
2000
11000
5000
Stock
Plant
Debtors
Cash
5000
30000
20000
13000
TOTAL
68000 TOTAL
68000
On that day the firm was dissolved on the following terms:
(a) Shilpa promise to pay X loan and took over stock in trade at Rs 4000
(b) Creditors payable after one month were paid immediately at 6% discount p.a
(c) Debtors realized Rs19000, Plant realized Rs34500
(d) Richa took over an old fan completely written off from the books at Rs300
(e) Expenses on realization were Rs1000
Prepare realization account, partners’ capital account & cash account
Q.15. Weston Ld issued 40000 equity shares of Rs 20 each for public subscription at a premium
of Rs 10 payable as follows (8 Marks)
On Application Rs 10 (Including Premium Rs 5)
Balance on Allotment after 30days
Share were oversubscribe to the extend of 30%.The company decided to refuse 4000 shares and money
refunded. The Remaining applicants were allotted the shares on pro rata bases. All the applicants paid their
due on allotment except Mr Rakesh failed to pay his allotment money on his 500 shares. His shares were
later forfeited.
Pass journal entries in the book of the Company.
OR
Leo Ltd. Invited application for issuing 50000 equity shares of Rs 10 each at a discount of Re 1 per share
payable as follows:
On Application Rs 3
On Allotment Rs 4 (including premium)
On First and Final call Rs 2
Application were received for 75000 shares and pro rata was made as follows:
Applicant for 40000 shares were allotted 30000 shares on prorata basis.
Applicant for 35000 shares were allotted 20000 shares on prorata basis.
M to whom 1500 shares were allotted out of the group applying for 40000 shares failed to pay allotment and
P to whom 600 shares were allotted under the group applying for 35000 shares paid his entire due on
allotment. However M paid his due along with his Call money.
Pass journal entries in the books of the company for the above transactions
Q.16.The Balance Sheet of Ram & Shyam who share profits & losses in the ratio 3:1as on
31.12.2008. (8 Marks)
LIABILITIES
Rs
ASSETS
Rs
Goodwill
10000
Creditor
Land and building
16000
Ram’s Capital
Stock
14000
Shyam’s Capital
Bills Receivable
Workmen’s compensation reserve
Debtors 6500
15000
General Reserve
Less:Provision 500
12000
Bank
21000
15000
10000
5000
TOTAL
67000
67000 TOTAL
6000
10000
Anil was admitted on 1.1.2009 for 1/5th share on the following terms :
(a) Unaccounted accrued incomes of Rs 100 be accounted for;
(b) The market value of Land & Building be taken as Rs 20,000
(c) Claim as account for Workmen’s Compensation is estimated at Rs 20,000
(d) X an old customer whose account was written off as Bad, has paid Rs 200in full settlement of his dues.
(e) Anil shall bring Rs 10000 for his share of goodwill & proportionate share of his capital to the extend of
1/5th share of profit.
Prepare revaluation a/c, partners’ capital account and Balance Sheet after Anil’s admission
OR
A,B&C are partners in a firm sharing profit in the ratio of 5:3:2.On 31stMarch,2003 their Balance Sheet was
as under :
Liabilities Assets
Creditors 11000 Building 20000
Reserves 6000 Machinery 30000
A’s capital 30000 Stock 10000 B’s capital 25000 Patents 11000 C’s capital 15000 70000 Debtors 8000 Cash
8000
Total 87,000 Total 87,000
A died on 30th June 2003. It was agreed between his executors and the remaining partners that:
(a) Goodwill to be valued at 2.5 years purchase of the average profits of previous 4 years less 20% which
were 2000:Rs 13000 , 2001 : Rs 12000 ,2002 :Rs20000 ,2003 :Rs 15000.
(b) Patents be valued at Rs 8000;Machinery at Rs 28000;and Building at Rs 25000
(c) Profit for the year 2003-2004 be taken as having accrued at the same rate as that of the previous year .
(d) Interest on capital be provided at 10% p.a.
(e) Half of the amount due to A to be paid immediately to the executor and the balance transferred to
executor loan a/c which is payable in two equal instalment with interest of 8% p.a.
Prepare A’s capital a/c , A’s executor a/c and A’s executor a/c Loan Account till loan is paid.
PART-B :ANALYSIS OF FINANCIAL STATEMENT
Q.17. How will you classify Loans given by Tata Finance Company in its Cash Flow Statement. (1 Marks)
Q.18. Give two example of significant non cash transaction. (1 Marks)
Q.19. The market Price of shares of HCCL was Rs 36 per share. If its Price Earning Ratio is 8 times ,
Calculate the EPS of the company. (1 Marks)
Q.20. Explain the advantages of Analysis of Financial Statement. (3 Marks)
Q.21. Prepare the Common Size Income Statement from the following information. (4 Marks)
Particular
31st March 2006 31st March 2007
Gross Sales
Sales Return
Cost of Goods Sold
Operating Expenses
Income Tax Rate
106000
6000
70% of Sales
8000
50%
110000
10000
74.8% of sales
9800
50%
Q.22. a)Cash sale of a company are 1/3rd oft the credit sales. Stock Turnover Ratio is 5 times.
Closing stock is Rs 8000 more than the opening Stock and Closing debtors are 2/3rd of opening
debtors. Closing Debtors are Rs 4000 and Opening Stock was Rs 60000.Gross Profit is 20% of
Sales. Calculate Debtors Turn over Ratio.
b) Calculate Debt Equity ratio from the following information: (4 Marks)
Total Assets Rs 1500000
Current Liabilities Rs 600000
Total Debts Rs 1200000
Q.1. What are the features of Receipts and Payments Account? (1 Marks)
Q.2. What is meant by Guarantee of profit to a partner? (1 Marks)
Q.3. Mention any two provisions of the Partnership Act, in the Absence of Partnership deed?(1 Marks)
Q.4. Why is P & L appropriation A/c prepared by partnership firm? (1 Marks)
Q.5. What do you mean by limited liability? (1 Marks)
Q.6. From the following informations calculate the amount of subscriptions for the year 2008-09.
(3 Marks)
Rs.
subscriptions received during the year
90000
subscriptions outstanding 31 March 2008
20000
subscriptions outstanding 31 March 2009
20000
subscriptions received in advance on 31 March 2008
20000
subscriptions received in advance on 31 March 2009
20000
subscription of Rs. 5000 are still in arrears for the year 2007-08.
Q.7. X limited forfeited 100 shares of Rs. 10 each, Rs. 6 called up, issued at a discount of 10% to Mahesh
on which he had paid Rs. 2 per share. Out of these 80 shares were reissued at Rs. 6/- per share to Suresh.
Rs. 8 paid up. (3 Marks)
Q.8. B Ltd. issued 2,00,000 shares of rs. 10 each payable as follows :
Rs. 2.50 on Application (on 1 Jan)
Rs. 2.50 on Allotment (on 1 April)
Rs. 3.00 on First Call (on 1 July)
Rs. 2.00 on Second & Final Call (on 1 Oct)
All the shares were subscribed and all the sums were duly received. Shareholder, Aditya who had 1,000
shares paid the amount of first and second calls with the allotment. Interest was paid to Mr. Aditya on 1 Oct
2009. 3
Q.9. A & B started a partnership business on 1 January, 2008. Their capital contributions were
Rs. 2,00,000 and Rs. 1,50,000 respectively. The partnership deed provided inter alias that :
(a) Interest on capitals at 10% p.a.
(b) A to get a salary of Rs. 2,000 p.m. and B Rs. 3,000 p.m.
(c) Profits are to shared in the ratio of 3:2.
The profits for the year ended 31 Dec, 2008 before making above appropriations were Rs. 2,16,000.
Interest on drawings amounted to Rs. 2,200 for A and Rs. 2,500 for B. 3
Q.10. (2 x 2)= 4
(A) A & B are partners with capitals of Rs. 18,000 and Rs. 16,000 respectively. They admit C as a partner
with 1/5 share in the profits of the firm. C brings Rs. 16,000 as his share of capital. Give Journal entries to
record goodwill.
(B) A, B & C are partners sharing profit and losses in the ratio of 6 :5 :3. They admit D into the firm. The
new partner gets 3/7th share, equally from all the three partners. Calculate new and sacrificing ratio.
Q.11. Journalise the following transactions assuming that the face value of each debenture is Rs.
100.
(i) 150 debentures issued at Rs. 95 each, repayable at Rs. 100.
(ii) 100 debentures issued at Rs. 95 each, repayable at Rs. 105.
(iii) 80 debentures issued at Rs. 100 each, repayable at Rs. 105.
(iv) 120 debentures issued at Rs. 105 each, repayable at Rs. 100. 4
Q.12. From the following Receipts and Payments account of a club and from the information,
prepare an Income and Expenditure account for the year ended 31st December, 2004 and the
Balance Sheet as on that date:
Receipts and Payments Account for the year ended 31st Dec., 2008
Receipts
To Balance b/d 350
To Subscriptions:
2007 250
2008 1000
2009 200 1450
To Rent received from
the use of hall 700
To Profit from
entertainment 400
To Sales of
newspapers 100
Amount
Payments Amount
By Salaries 1400
By General Expenses 300
By Electric Charges 200
By Books 500
By Newspaper 400
By Balance c/d 200
3000
3000
(a) The club has 50 members each paying an annual subscription of Rs. 25, subscriptions outstanding on
31st December, 2007 were Rs. 300.
(b) On 31st December, 2008 salaries outstanding amounted to Rs. 100. Salaries paid in 2008 included Rs.
300 for the year 2007.
(c) On 1-1-2008 the Club owned building valued at Rs. 10000, furniture Rs. 1000 and books Rs. 1,000.
(d) Provide depreciation on Furniture at 10 per cent. 6
Q.14. (3 x 2 =6 Marks)
(a) X Finance Ltd. has issued 10000 12% debentures in 2000, each Rs. 100, interest payable on June 30
and December 31, every year till the date of redemption. It redeemed 1000 debenture by paying back the
money on 31st Dec., 2003. On the same date it also converted 2000 debentures into 19,800 equity shares
of Rs. 10/- issued at par. Give journal entries for recording these transactions on December 31, 2003, in the
books of X Finance Ltd.
(b) A Company issued debentures of the face value of Rs. 100000 at a discount of 6% on 1st January, 2005.
These debentures are redeemable by annual drawings of Rs. 20000 made on 31st December, each year.
The directors decided to write off discount based on the debentures outstanding each year. Calculate the
amount of discount to be written off in each year. Give journal entries.
Q.15. A & B are partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance (8
Marks)
Sheet was as follows on 1st January, 2002.
BALANCE SHEET
Liabilities
Amount
Sundry Creditors 15000
Capital Accounts :
A 30000
B 25000 55000
General Reserve 40000
Plant 30000
Patents 10000
Stock 20000
Debtors 18000
Cash 32000
Assets Amount
110000
110000
C is admitted as a partner on the above date on the following terms:
(i) He will pay Rs. 10000 as goodwill for one-fourth share in the profits of the firm.
(ii) The assets are to be valued as under :
Plant at Rs. 32000;
Stock at Rs. 18000;
Debtors at book figure less a provision of 5 percent for Bad Debts.
(iii) It was found that the creditors included a sum of Rs. 1400 which was not to be paid but it was also
found that there was a liability for compensation to workers amounting to Rs. 2000.
(iv) C was to introduce Rs. 20000 as capital and the capital of other partners were to be adjusted in the new
profits sharing ratio. For this purpose, current accounts were to be opened.
Prepare Revaluation Account, Capital Accounts of all partners. Bank Account and the Balance Sheet of the
firm.
Q.16. A company issued for public subscription 75,000 equity shares of Rs. 10 each at a premium
of Rs. 2 per share payable as under : (8 Marks)
On application Rs. 2 per share, on allotment Rs. 5 per share (including Premium) on Ist call Rs. 2 per share
and on second call Rs. 3 per share.
Applications were received for 112500 shares. Shares were allotted to the applicants for 90000 shares, the
remaining applications being rejected. Money over paid on application was utilised towards sum due on
allotment.
A, to whom 3000 shares were alloted failed to pay the allotment money and two calls and B to whom 3750
shares were allotted failed to pay two calls. All these shares were forfeited after the final call. 5000 shares
including all shares of A were reissued as fully paid shares for Rs. 7.50 per share. 8
Give journal entries to record the above transactions in the books of the company.
OR
Rama Ltd. issued 90000 equity shares of Rs. 10 each at a discount of Re. 1 per share (to be
adjusted on allotment) payable as follows :
Rs. 3 per share on application
Rs. 2 per share on allotment
Rs. 4 per share on 1st call
The subscription list was closed on 1st January, 2008 by which date applications for 120000 shares were
received. Allotment was made as follows :
List I. Applicants of 15000 shares were allotted in full.
List II. Applicants 45000 shares were allotted 30000 shares on pro-rata basis.
List III. Applicants 60000 shares were allotted 45000 shares on pro-rata basis.
All the shareholders paid the amount due on allotment and call except A (who was allotted 3000 shares
under List II) and B (who applied for 6000 shares under List III). They did not pay any money due on
allotment and 1st call. Their shares were forfeited and reissued at Rs. 6 per share fully paid.
Pass the necessary journal entries to record the above transactions.
PART – B
Q.17. Name the statement prepared to ascertain short term financial position of the business.(1 Marks)
Q.18. What is the ideal proprietary ratio? (1 Marks)
Q.19. Name two items shown under the heading Reserve and Surplus. (1 Marks)
Q.20. What do you mean by Accounting ratios? Give any three limitations of ratio analysis? (2 Marks)
Q.21. Prepare a Comparative Income Statement with the help of the following information : (4 Marks)
particulars
2006
2007
Sales
2000000
3000000
Gross Profit
40%
30%
Indirect Expenses
50% of G.P.
40% of G.P.
Income Tax
50%
50%
Q.22. Balance Sheet of A Limited is given below : (6 Marks)
BALANCE SHEET
Liabilities
Amount
Assets Amount
Paid up Equity :
Share Capital 400000
15% debentures 200000
P/L A/c (for the current
year after taxes) 300000
General Reserve 300000
Current Liabilities 580000
Building 600000
Machinery 120000
Debtors 650000
Stock 350000
Bank 60000
1780000
1780000
Additional Information :
Net Sales for the current year is Rs. 5760000.
Compute the following :
(i) Net profit ratio
(ii) Current ratio
(iii) Fixed assets turnover ratio
(iv) Debt equity ratio.
SAMPLE PAPER-IV
ACCOUNTANCY
Q.1. A & B ARE PARTNERS. A WITHDRAWS RS 800 AT BEIGINING OF EVERY MONTH FOR EIGHT MONTH
ENDING & B WITHDRAWS RS 800 AT THE END OF EVERY MONTH FOR NINE MONTHS ENDING AT 2003.
CALCULATE INTEREST ON DRAWINGS @ 12% P.A. (2 Marks)
Q.2. WRITE A NOTE ON MINIMUM SUBSCRIPITON? (2 Marks)
Q.3. LIST THE SOURCES OF REDEMPTION OF DEBENTURE? (2 Marks)
Q.4. LIST THE VAPIOUS METHODS BY WHICH WE CAN ISSUE DEBENTURE? (2 Marks)
Q.5. AMAR KARAN & SARAN WERE PARTNERS SHARING PROFITS IN THE RATIO OF 2:2:1.COMMISSION OF
RS 1,500 WAS PAYABLE TO AMAR BUT WAS OMITED. PROFITS OF RS 4,80,000 WERE DISTRIBUTED AMONG
THE PARTNERS WITHOUT PROVIDING FOR COMMISSION TO AMAR.PASS NECESSARY ADJUSTMENT ENTRY
FOR RECTIFICATION. (3 Marks)
Q.6. THE PROMISING COMPANY LTD. TOOK OVER ASSETS OF RS 3,50,000 & LIABILITES OF RS 30,000 OF
X LTD. FOR A PURCHASE CONSIDERATION OF RS 3,30,000. THE PROMISING COMPANY LTD. PAID THE
PURCHASE CONSIDERATIO N BY ISSUING 12% DEBENTURE OF RS 100 EACH AT 10 % PREMIUM. GIVE
JOURNAL ENTRIES IN THE BOOKS OF PROMISING LTD. (2 Marks)
Q.7. A & B ARE PARTNERS SHARING PROFITS IN THE RATIO OF 5:3. THEY ADMIT C IN THE FIRM FOR
3/10TH SHARE IN PROFIT WHICH HE TAKES 2/10TH FROM A & 1/10TH FROM B. C BRINGS RS 30,000 AS
PREMIUM IN CASH OUT OF HIS SHARE OF RS 7,800. GOODWILL A/C DOES NOT APPEAR IN THE BOOKS OF
A & B. GIVE NECESSARY JOURNAL ENTRIES IN THE BOOKS OF THE FIRM. (4 Marks)
Q.8. PASS THE JOURNAL ENTRIES FOR THE FOLLOWING AT THE TIME OF DISSOLUTION OF THE FIRM :
- SALE OF ASSETS RS 50,000
-> PAYEMENT OF LIABILITES RS 10,000
- A COMMISION OF 5% ALLOWED TO MR X A PARTNER ON SALE OF ASSETS. (4 Marks)
Q.9.WHAT IS MEANT BY ISSUE OF SHARES AT DISCOUNT ? EXPLAIN THE PROVISION OF SECTION 79 OF
THE COMPANIES ACT REGARDING ISSUE OF SHARES AT DISCOUNT. (4 Marks)
Q.10. JOURNALISE THE BELOW TRANSATION ASSUMING THAT THE DEBENTURE WERE CONVERTED AT THE
OPTION OF THE DEBENTUREHOLDERS BEFORE THE DATE OF REDEMPTION
X LTD. REDEEMED 5,000, 12% DEBENTURE OF RS 100 EACH WHICH WERE ISSUED AT 94 BY CONVERTING
THEM INTO EQUITY SHARES OF RS 100 EACH AT 25% PREMIUM.
X LTD. REDEEMED 2,000 14% DEBENTURE OF RS 100 EACH WHICH WERE ISSUED AT A DISCOUNT OF 5%
BY CONVERTING THEM INTO EQUITY SHARES OF RS 10 EACH ISSUED AY DISCOUNT OF 5 %. (4 Marks)
Q.11. P LTD. ISSUED RS 4,00,000 10% DEBENTURE OF RS 100 EACH AT PAR , REDEEMABLE AT 5%
PREMIUM AT THE OPTION OF DEBENTUREHOLDERS. ONE DEBENTURES HOLDING 200 DEBENTURE
EXERCISED HIS OPTION. PASS JOURNAL ENTRIES TO RECORD THE ISSUE & CONVERSION OF
DEBENTURES. (4 Marks)
Q.12. SONAM LTD. ISSUED20,000 SHARES OF RS 10 EACH AT A DISCOUNT OF RS 1 PER SHARE
PAYABLE AS FOLLOWS:
RS 2.50 PER SHARE ON APPLICATION
RS 4.00 PER SHARE ON ALLOTMENT
RS 2.50 PER SHARE ON 1ST & FINAL CALL.
SUBSCRIPITON LIST WAS CLOSED ON 1ST JANUARY,1994 BY WHICH DATE APPLICATION FOR
45,000 SHARES HAD BEEN RECEIVED. ALLOTMENT WAS MADE AS FOLLOWS:
LIST A --APPLICANTS FOR 5,000 SHARES WERE ALLOTED IN FULL.
LIST B - APPLICANTS FOR 10,000 SHARES WERE ALLOTED 5,000 SHARES ON PRO-RATA BASIS.
LIST C -APPLICANTS FOR 30,000 SHARES WERE ALLOTED 10,000 SHARES ON PRO-RATA BASIS.
APPLICATION MONEY IN EXCESS OF THAT REQUIRED ON ALLOTMENT COULD BE UTILIZED FOR CALLS.
ALL THE SHAREHOLDERS PAID THE AMOUNTS DUE ON ALLOTMENT & CALLS EXCEPT Y (WHO WAS
ALLOTTED 400 SHARES UNDER LIST B ) & Z (WHO WAS ALLOTED 200 SHARES UNDER LIST C ). BOTH OF
THESE SHAREHOLDERS PAID ONLY THE APPLICATION MONEY.
THEIR SHARES WERE DULY FORFEITED & WERE RE – ISSUED AT RS 7 PER SHARE FULLY PAID. PASS THE
NECESSARY JOURNAL ENTRIES. (6 Marks)
Q.13. THE BALANCE SHEET OF J,K & L WHO WERE SHARING PROFITS IN 5:3:2,IS GIVEN BELOW
AS ON 31ST/MARCH/2003:
LIABILITES
RS
ASSETS
RS
SUNDRY CREDITORS 78,600
LAND
1,85,000
J’S CAPITAL
5,78,800
BUILDINGS
2,87,000
K’S CAPITAL
3,47,800
PLANT&MACHINERY 3,86,000
L’S CAPITAL
2,37,900
STOCK
1,85,000
DEBTORS
92,100
CASH
1,08,000
12,43,100
12,43,100
L RETIRES ON THE ABOVE DATE & THE FOLLOWING ADJUSTMENTS IN THE VALUE OF ASSETS &
LIABILITES WERE AGREED UPON:
- LAND WAS UNDER VALUED BY RS 1,20,000;PLANT & MACHINERY OVERVALUED BY RS 35,000.
- PROVISION FOR DOUBTFUL DEBT WAS REQUIRED FOR RS 6,000.
- GOODWILL WAS VALUED AT RS 3,00,000 & WAS TO BE ADJUSTED AGAINST THE CAPITAL OF REMAINING
PARTNERS.
- L WAS PAID RS 75,000 IMMEDIATELY & THE BALANCE AMOUNT WAS TO BE TRANSFERRED TO HIS LOAN
A/C. PREPARE CASH A/C; REVALUTION A/C; CAPITAL A/C & BALANCE SHEET OF THE RECONSTITUTED FIRM
ON THE ABOVE DATE. (6 Marks)
OR
A, B&C WERE PARTNERS WHOSE BALANCE SHEET AS ON 31ST/DEC/1987 WAS AS BELOW:
LIABILITES
RS
ASSETS
RS
CREDITORS
7,096
CASH AT BANK 6,496
GENERAL RESERVE 3,000
DEBTORS
9,000
CAPITAL:
A’S-8,000
B’S-6,000
C’S-4,000
STOCK
10,600
FURNITURE
2,000
18,000
28,096
28,096
B RETIRED ON THAT DATE & FOLLOWING ADJUSTMENT WERE DONE:
- TO REDUCE STOCK & FURNITURE BY 5% & 10%.
- TO PROVIDE DOUBTFUL DEBTS 5% ON DEBTORS.
- RENT OUTSTANDING WAS RS 260;GOODWILL WAS VALUED AT RS 4,200.
A & C DECIDED TO SHARE PROFITS&LOSSES IN 5:3;NOT TO SHOW GOODWILL IN THE BOOKS;READJUST
THEIR CAPITALIN THE PROFIT SHARING RATIO;BRING IN SUFFICIENT CASH TO PAY OFF “B” IMMEDITELY &
TO LEAVE A BALANCE OF RS 1,000 IN THE BANK. PREPARE NECCESARY A/C’S. (6 Marks)
Q.14. A & B ARE PARTNERS OF 3:2 AS ON 1ST/JAN/1999.THEIR BALANCE SHEET AS FOLLOWS:
LIABILITES
RS
ASSETS
RS
SUNDRY CREDITORS
51,000
GOODWILL
15,000
WORKMEN’S COMPENSATION FUND
CAPITAL:-A---1,00,000
B--- 1,20,000
4,000
PROFIT & LOSSA/C 15,000
PLANT
75,000
PATENTS
8,000
STOCK
80,000
DEBTORS
62,000
CASH
20,000
2,20,000
2,75,000
2,75,000
ON THIS DATE THEY AGREED TO ADMIT C ON FOLLOWING TERMS:
- C WILL GET 3/10TH SHARE WHICH HE SHALL ACCQUIRE 1/5TH FROM A & 1/10TH FROM B.HE WILL BRING
IN RS 60,000 AS HIS CAPITAL.
- GOODWILL OF THE FIRM WAS RS 40,000 & PARTNERS DECIDE TO WRITE OFF GOODWILL FROM THE
BOOKS OF NEW FIRM.
- PLANT IS VALUED AT RS 60,000 & STOCK AT RS 70,000.
- CLAIM ON A/C OF WORKMEN’S COMPENSATION FUND IS RS 6,000.
- PATENTS SHOULD BE WRITTEN OFF.
- INVESTMENTS OF RS 5,000 WHICH DIDN’T APPEAR IN THE BOOKS SHOULD BE DULY RECORDED.
- B IS TO WITHDRAW RS 20,000 IN CASH. GIVE JOURNAL;REVALUATION A/C & PARTNERS CAPITAL A/C OF
NEW FIRM. (8 Marks)
OR
A , B & C WERE CARRYING ON BUSINESS WITH THE FOLLOWING ASSETS WITH EFFECT FROM 1/1/1980.
FURNITURE RS 18,000, MACHINE RS 72,000 ; CASH RS 10,000; DEBTORS RS 20,000. THEIR RATIO IS
5:3:2.CAPITAL IS ALSO SHARED IN SAME RATIO. B DIED ON 31/6/1980. HIS SON CLAIMED HIS FATHER‘S
INTEREST IN THE FIRM
THE FOLLOWING WAS THE SETTLEMENT:
ALLOW HIS CAPITAL TO HIS CREDITON THE DATE OF DEATH.
GIVE 5% P.A. INTEREST ON HIS CAPITAL .
HE HAD BEEN DRAWING @ RS 600 PER MONTH WHICH HE WITHDRAWS AT THE BEGINNING OF EACH
MONTH. HE BE ALLOWED TO RETURN THESE DRAWINGS AS A PART OF HIS SHARE OF PFOFIT.
INTEREST @ 6% P.A. BE CHARGED ON HIS DRAWINGS.
THEY HAD SEPARATE LIFE POLICES FOR WHICH THE PREMIUM HAD BEEN PAID OUT OF PROFIT & LOSS A/C
OF THE FIRM: A RS 50,000; B RS 60,000; C RS 30,000. THE SURRENDER VALUE OF A’S POLICY WAS 50%
WHEREAS OF C’S POLICY IT WAS 40%.
GOODWILL WAS EVALUATED TWICE THE AVERAGE OF PROFITS WHICH WERE RS 3,600.PREPARE B’S
PERSONAL A/C.
Q.15. A,B & C ARE PARTNERS OF 3:2:1.ON 31ST/DEC/2003 THEIR BALANCE SHEET WAS AS
FOLLOWS:
LIABILITES
RS
ASSETS
RS
CREDITORS
65,000
CASH
22,500
BILL PAYABLE
20,000
DEBTORS
52,300
PROVIDENT FUND
12,000
STOCK
36,000
INVESTMENT
15,000
PLANT
91,200
INVESTMENT FLUCTUATION FUND
6,000
COMMISSION RECEIVED IN ADVANCE
8,000
CAPITAL A/C’S:
A---80,000
B---50,000
C---30,000
PROFIT & LOSS A/C 54,000
1,60,000
2,71,000
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) & WAS TO BEAR ALL EXPENSES OF
REALISATION
A REALISED THE ASSETS AS FOLLOWS:
DEBTORS-RS 30,000;STOCK-RS 26,000;INVESTMENT 75% OF BOOK VALUE;PLANT-RS 42,750.EXPENCES
ON REALISATION AMOUNTED TO RS 4,100.COMMISSION RECEIVED IN ADVANCE WERE RETURNED TO THE
CUSTOMERS AFTER DEDUCTING RS 3,000.FIRM HAD TO PAY RS 7,200 FOR OUTSTANDING SALARY NOT
PROVIDED FOR CASH.COMPENSATION PAID TO EMPLOYEES AMOUNTED TO RS 9,800.THE LIABILITY
WASN’T PROVIDED FOR IN THE ABOVE BALANCE SHEET. RS 25,000 HAD TO BE PAID FOR PROVIDENT
FUND.PREPARE REALISATION;CAPITAL & CASH A/C’S. (6 Marks)
PART B
(ANALYSIS OF FINANCIAL STATEMENTS)
WHO ARE VARIOUS ACTIVIES CLLASIFIED ACCOPRDING TO AS-3 (REVISED) WHILE PREPARING
THE CASH FLOW STATEMENT.
Q.16. FOR CALCUTING CASH FROM OPERATING ACTIVIES, FROM THE GIVEN FIGURE OF NET
PROFIT EARNED DURING A YEAR , HOW WOULD YOU DEAL WITH THE FOLLOWING:
(a) DECERASE IN STOCK
(b) INCREASE IN DEBTORS
(c) IN CREDITORS
(d) REDEMPITION OF DEBENTURES (2 Marks)
Q.17. NAME THE MAJOR HEADINGS UNDER WHICH THE LIABILITES & THE ASSETS SIDES OF A
COMPANY’S BALANCE SHEET IS ORGANISED & PRESENTED. (3 Marks)
Q.18. CALCUATE THE TREND PERCENTAGE FROM THE FOLLOWING INFORMATRION TAKING YEAR
ENDING 1996 AS THE BASE YEAR (3 Marks)
CURRENT ASSETS
1996
1997
1998
1999
STOCK
1,00,000 1,25,000 1,40,000 1,50,000
DEBTORS
50,000
60,000
75,000
1,00,000
CASH AT BANK
10,000
15,000
25,000
20,000
40,000
30,000
60,000
50,000
OTHER CURRENT ASSETS
2,00,000 2,30,000 3,00,000 3,20,000
Q.19. X LTD. HAS A CURRENT RATIO OF 4.5:1 & QUICK RATIO OF 3:1. IF ITS INVENTORY IS RS
36,000, FIND OUT ITS TOTAL CURRENT ASSETS, & TOTAL CURRENT LIABILITES & QUICK ASSETS.
TOTAL DEBT RS 9,00,000. CAPITAL EMPLOYED RS 12,00,000; CURRENT LIABILITES RS 1,00,000;
CALCULATE THE DEBT-EQUITY RATIO. (2 Marks)
Q.20. FILL IN THE BLANKS: (6 Marks)
PARTICULARE
1 2
3
4
5
6
Cash flow from financing activity
3 (3) ?
6
9
2
Cash & cash equivalent at the beginning
5 ?
1
?
?
(2)
Cash flow from operating activity
1 1
(1) (2) ?
?
Cash & cash equivalent at the end
? 1
?
2
5
(3)
Cash flow from investing activites
2 (2) 2
?
(6) 3
Net increase /decrease in cash & cash equivalent ? ?
(2) nil 6
OR
?
FROM THE FOLLOWING PARTICULARS OF BHARAT LTD. , CALCULATE CASH FLOWS FROM
INVESTING ACTIVIES: (6 Marks)
LIABILITES 2001 2002 ASSETS
2001
2002
GOODWILL
1,00,000
3,00,000
PATENTS
2,80,000
1,60,000
PLANT & MACHINERY
10,20,000 12,40,000
10% LONG-TERM INVESTMENTS 60,000
1,60,000
SHARE OF X LTD.
1,00,000
1,00,000
INVESTMENT IN LAND
1,00,000
1,00,000
ADDITIONAL INFORMATION:
PATENTS WERE WRITTEN OFF TO THE EXTENT OF RS 40,000 & SOME PATENTS WERE SOLD AT A PROFIT
OF RS 20,000
A MACHINE COSTING RS 1,40,000(DEPERATION PROVIDED THEREON RS 60,000) WAS SOLD FOR RS
50,000. DEPERATION CHARGED DURING THE YEAR WAS RS 1,40,000.
ON 31ST/DEC/2002 10% INVESTMENT WERE PURCHASED FOR RS 1,80,000 & SOME INVESTMENTS WERE
SOLD AT A PROFIT OF RS 20,000. INTEREST ON INVESTMENTS WAS RECEIVED ON 31ST/DEC/2002.
X LTD PAID DIVIDENT @ 10% ON ITS SHARE.
A PLOT OF LAND WAS PURCHASED OUT OF SURPLUS FUND FOR INVESTMENT PURPOSES & LET OUT FOR
COMMERCIAL USE
& RENT RECEIVED RS 30,000