COMMERCE TEACHERS’ ASSOCIATION ACCOUNTANCY SAMPLE PAPER Class – XII Time – 3 Hours. General Instructions: 1. 2. 3. 4. Maximum Marks – 80 This Question paper contains two parts PART A and Part B. Marks are indicated against each question. Use of calculator is prohibited . Attempt all the questions , all questions are compulsory. PART-A (60marks) 1. Distinguish between fixed and fluctuating Capital account of partners. (1) 2. State the occasion when the partnership can be reconstituted. (1) 3. Distinguish between a debenture and a share. (2) 4. Saxena Ltd, converted its 1,00,000, 9% debentures issued at premium of 10% into 8% preference share of Rs. 100 each issued at premium of 25%. Pass necessary journal entries on the redemption of debentures. (4) 5. Modi and Shivraj are partners in a firm sharing profits and losses in the ratio of 7:3 According to the partnership deed, Modi was to be paid salary of Rs. 5000 per month and Shivraj was to get a Commission of Rs. 40,000. They get 5% p.a. interest on Capital. Their capitals were Rs.8,00,000 and Rs.6,00,000 respectively. The firm earned a profit of Rs. 4,50,000 for the year ended 31.3.2014. Prepare Profit and Loss Appropriation Account of Modi and Shivraj. (4) 6. Sudesh Suryavanshi Limited invited applications for issuing 10,000 Equity Share of Rs. 10 each at a premium of Rs. 3 per share. The whole amount was payable on application. The issue was oversubscribed by 3,000 shares and allotment was made on pro-rata basis. Pass necessary journal entries in the books of the company. (3) 7. Dinesh Madan Ltd purchased land costing Rs 6,00,000 from Sashikala Ltd Rs. 60,000 were paid through bank and the balance by issuing equity shares of Rs. 100 each at a discount of 10%. Pass the necessary journal entries from making the payment through bank and by issue of equity share. (4) 8. Mention any two purposes for which the securities premium can be utilized. 9. A firm earned net profits during the last three years as follows: Year : 2012 2013 2014 Profit (Rs.) : 22,000 38,000 30,000 The capital investment of the firm is Rs.70,000. A fair return on the capital having regard to the risk involved is 10%. Calculate the value of goodwill on the basis of three year’s purchase of the super profits for the last 3 years. (3) (2) 10. On 1.4.2013 Kejriwal Ltd issued 500000 8% Debenture of Rs. 100 each at a discount of 6% redeemable at premium of 10% after four years. Record the necessary journal entries for the issue of debentures in the books of the company. (3) 11. Briefly explain any two points of the need for the revaluation of assets and liabilities on the reconstitution of partnership firm? (2) 12. Monitor and Keyboard were partners in a firm sharing profits in the ratio of 1:4. Their Balance Sheet on 30-09-2013 was as follows: Liabilities Rs. Assets Rs. Bank loan 26,000 Building 1,00,000 Creditors 90,000 Plant 1,40,000 Outstanding Expenses 4,000 Stock 50,000 Capital Accounts Debtors 45,000 Monitor 1,40,000 Cash 3,45,000 Keyboard 4,20,000 5,60,000 6,80,000 6,80,000 On the above date firm was dissolved. Stock was taken over by Monitor at the discount of 10% . Keyboard took over debtors for Rs. 40000. Plant was sold for Rs.1,30,000 and building realized Rs. 80,000. Keyboard agreed to pay the creditors and Monitor agreed to pay outstanding expenses. Expenses on realization amounted to Rs. 7500. There was an unrecorded Typewriter which now fetched Rs.20,000. Prepare Realization Account, Cash Account and Capital Account to close the books of the firm. (8) OR C, B and A were partners in a firm sharing profits in the ratio of 5:3:2. On 31st March, 2014 their Balance sheet was as under: Liabilities Reserves Creditors C’s capital 60000 B’s capital 50000 A’s capital 30000 Bank Loan Rs. 8,000 12,000 1,40,000 10,000 1,70,000 Assets Buildings Machinery Stock Patents Debtors Cash Rs. 40000 30000 10000 11000 28,000 51,000 1,70,000 C died on 1st October, 2014. It was agreed between his executors and the remaining Partners that: a) Goodwill to be valued at 2½ year purchase of the average profit of the previous four years, which were : 2010-11: Rs.13, 000; 2011-12: Rs.12,000; 2012-13: Rs.20,000 and 2013-14: Rs.15,000. b) Machinery be valued at Rs.28000 ; Patents at Rs.8000; and buildings at Rs.45,000. c) Profit for the year be taken as having accrued at the same rate as that of previous year. d) Interest on capital be provided at 5 % p.a. e) Half of the amount to C to be paid immediately to the executor and the balance transferred to his loan A/c. Prepare C’s capital A/c as on 1st October, 2014. (8) 13. (1) (2) Pass necessary journal entries in the books of CTA Ltd. For the following transactions: 500 equity shares of Rs.100 each issued at a discount of 10% were forfeited for the non-payment of final call of Rs. 30 per share .The forfeited shares were reissued for Rs.35,000 fully paid up. 5,000 equity shares of Rs.10 each were forfeited for the non- payment of the allotment money of Rs. 4 per share. The first and final call of Rs. 2 per share was not paid . The forfeited shares were reissued for Rs. 59000 fully paid up. (6) 14. Salt and Sweet were partners in a firm sharing profits in the ratio of 3:1 They admitted Sour as a new partner on 1.1.2014 for 1/3 share. It was decided that Salt, Sweet and Sour will share future profits equally. Sour brought Rs. 50000 in each and machinery worth 70000 for his share of profits as premium for goodwill. Showing your calculation clearly, pass necessary journal entries in the books of the firm. (3) 15. Explain any 2 factors affecting Goodwill. 16. (2) Shivani Nagrath Ltd. issued for public subscription 50,000 equity shares of the value of Rs.10 each at the discount of 10% payable as follows.Rs.2 on application, Rs.3 on allotment, Rs. 2 on first call, Rs. 2 on final call. The company received application for 1,25,000 shares . The allotment was done as follows. A. Applicants of 25,000 shares were refunded the application money. B. Applicants of 60,000 shares were allotted 30,000 shares C. Remaining applicants were allotted 20,000 shares The excess application money to be adjusted allotment and call if any. Jyotsna, A share holder who had applied for 3000 shares (Group B) failed to pay the allotment money and both calls. Arti a shareholder (Group C) who was allotted 1500 paid the calls money long with allotment money. Pass journal entry to record the above. What value do you find affected? Suggest any two alternatives to allot the shares. (8) 17. Anna Ltd. Forfeited 1,200 shares of Rs. 10 each fully called up, on which the holder has paid only the application money of Rs. 2 per share. Out of these, 700 shares were reissued at Rs. 12 per share, fully paid up. (3) 18. Give one point of difference between capital reserve and reserve capital. (1) Part-B (20 marks) 19. State whether the following transactions will result into inflow, outflow or no flow on funds? (i) Purchased Building of Rs. 1,00,000 and issued equity shares of the same amount to the vendor. 20. (ii) Redeemed of Debentures Rs. 2,00,000 (2) Name any two parties interested in the analysis of financial statements of a company. (1) 21. On the basis of the information given below calculate any two of the following ratio: (2) (i) Debts-Equity Ratio (ii) Gross Profit Ratio (iii) Working Capital Turnover Ratio Information: Net Sale Rs. 100,000; Cost of goods sold Rs.35,000, Current Liabilities Rs. 37,500, Loan Rs. 48,000; Current Assets 75,000; Equity share capital Rs. 60,000 and Debentures Rs. 52,000. 22. What is meant by Cash flow from financing activities? 23. Write the headings and sub headings of Assets side according to revised schedule VI companies act. (3) 24. From the following information, Savita Shangari ltd prepare a comparative income statement: Particulars Sales Cost of goods sold Indirect expenses Wages & Salaries paid Income tax 2013(Rs.) 4,00,000 2,00,000 50,000 2,000 30% (1) 2014(Rs) 6,00,000 3,00,000 1,00,000 4,000 40% 25 From the following particulars of Kiran Agrawal ltd, prepare Cash Flow statement (6) Liabilities 2014 2013 Assets 2014 2013 Equity share capital 80000 70000 Fixed Assets 80000 82000 12% pref. Share capital 20000 10000 Less:- Accumulated General reserve 4000 4000 Depreciation 30000 22000 Profit and loss A/C 2400 2000 50000 60000 15% debentures 14000 12000 Debtors 52000 47000 Creditors 26000 31000 Stock 70000 60000 Provision for taxation 8400 6000 Prepaid expenses 1000 600 Proposed dividend 11600 10000 Cash 7000 2400 Bank overdraft 13600 25000 Total 180000 170000 Total 180000 170000 Additional Information: a) Tax provided during the year Rs 9400 (4) b) Fixed assets sold for Rs. 25000, their cost Rs.20000 and accumulated depreciation till date of sale on them Rs. 6000 c) Dividend paid during the year Rs.12,000.