Mkgm Accounts Question Papers Model
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Transcript of Mkgm Accounts Question Papers Model
PAPER – 03 leave a response
Part A
Total: 80
Q 1 to 6 carry 1 mark each.
Q 1. Classify the following items as “Capital Receipt” or “Revenue Receipt”
a) Special Donations b) Sale of “Old Newspaper”
c) Sale proceeds of fixed assets d) Subscription
Q 2. Explain the term “Surplus”?
Q 3. When do we show current account of partners on the asset side?
Q 4. Calculate interest on drawings of Mr. Malik @ 10% p.a. for the year ended 31st
March 2008 if he withdraws Rs.6,000 in the beginning of each quarter.
Q 5. A firm earned net profits during the last three years as follows:
Year : I II III
Profit (Rs.) : 18,000 20,000 22,000
The capital investment of the firm is Rs.60,000. 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.
Q 6. A company purchased assets of the book value of 99,000 from another firm. It was agreed that the
purchase consideration be paid by issuing 11% debentures of Rs.100 each at par.
Q 7 to 10 carry 3 marks each.
Q 7. Mohan, Vijay and Anil are partners, the balances of their capital accounts being Rs.30,000, Rs.25,000
and Rs.20,000 respectively. In arriving at these figures, the profit for the year ended March 31, 2007,
Rs.24,000 had already been credited to partners in the proportion in their profit share and ratio.
Drawings : Mohan – 5,000
Vijay – 4,000
Anil – 3,000
Subsequently following omission noticed:
a) Interest on capital at 10% p.a.
b) Interest on drawings:
Mohan – Rs.250
Vijay – Rs.250
Anil – Rs.150
Make necessary corrections through Journal entry.
Q 8. What adjustments are required at the time of change in profit sharing ratio?
Q 9. Ram and Kabir invested Rs.3,00,000 & 1,50,000 respectively. A new partner Prabhu contributes
Rs.2,00,000 for 1/5th share in profits. Old partners Ram and Kabir were sharing profits and losses in the
ratio 3:2. At the time of admission of Prabhu loss of revaluation calculated as Rs.7,000.
Calculate the amount for premium and goodwill brought in by Prabhu.
Q 10. A, B and C are partners sharing profits in the ratio of 1:2:3, C retires and his capital, after making
adjustments for reserves and profit on revaluation stands at Rs.1,20,000. A and B agreed to pay him
Rs.1,50,000 in full settlement of his claim. Record necessary Journal entry for the treatment of goodwill if the
new profit sharing ratio is decided at 1:3.
4 marks questions.
Q 11. The following was the balance sheet of Anurag and Bhawna, who were sharing profits in the ratio of
2/3 and 1/3 on 31st December 2008:
Creditors 65,900 Cash 1,200
Capitals: Sundry Debtors 9,700
Anurag : 30,000 Stock 20,000
Bhawna : 20,000 Plant & Machinery 35,000
Building 50,000
1,15,900 1,15,900
They agreed to admit Monika into partnership on the following terms:
a) Monika was to be given 1/3 share in profits and was to bring Rs.15,000 as capital & Rs.6,000 as premium
of goodwill.
b) Value of stock and Plant & Machinery were to be reduced by 10%.
c) Provision of 5% was to be created for Doubtful debts.
d) Buildings were to be appreciated by 20%.
e) Investment worth Rs.1,400 (not mentioned in Balance Sheet) were to be taken into account.
f) Amount of premium was to be withdrawn by the old partners.
Prepare Revaluation account, Partners Capital Account & Balance Sheet for new form.
Q 12. Y Ltd. Issued 10,000 shares of Rs.10 each at par amounts were due as follows:
Rs.2.50 on Applicatiion, Rs.2.50 on Allotment, Rs.3.00 on First Call & Rs.2.00 on Final Call. A, holding 200
shares did not pay the amount due on allotment & first call and his shares were forfeited. Final call was
made after the forfeiture, B holding 500 shares failed to pay the amount due on final call and his shares
were also forfeited.
Give Journal entries.
Q 13. Pass Journal entries:
i) C Ltd. forfeited 600 shares of Rs.10 each fully called up for non-payment of allotment money
of Rs.3 per share, first call of Rs.2 per share and final call of Rs.2 per share. 400 of these shares were re-
issued at Rs.9 per share fully paid up.
ii) D Ltd. forfeited 800 shares of Rs.10 each fully called up. On with the holder was
paid only the application money of Rs.3 per share. Out of these, 500 shares were re-
issued at Rs.11 per share fully paid up.
Q 14. Journalize
a) A debenture issued at Rs.95, repayable at Rs.100
b) A debenture issued at Rs.95, repayable at Rs.110
c) A debenture issued at Rs.100, repayable at Rs.110
d) A debenture issued at Rs.106, repayable at Rs.100
6 marks questions.
Q 15. Explain the meaning of debentures and bond. Also write any three types of debentures.
Q 16. Mahesh, Baldev and Davinder were in partnership sharing profits and losses equally. Devender died
on the 30th of June 2008. The balance sheet on 31.3.2008 stood as follows:
Liabilities Rs. Assets Rs.
Creditors 12,900 Cash 5,000
General Reserve 6,000 Debtors 10,000
Capital Account Stock 10,000
Mahesh : 30,000 Investment 5,000
Baldev : 20,000 Freehold Property 40,000
Davinder : 20,000 Goodwill 18,900
88,900 88,900
Additional information:
1) On the date of death, freehold property is valued at Rs.58,000, Investment at Rs.4,700 & Stock at
Rs.9,400.
2) Goodwill valued at one year’s purchase of average profit of the past 5 years.
3) Devender’s share of profit to the date of his death is to be calculated on average profits of preceding three
years:
Profits for Rs.
2003 – 04 11,500
2004 – 05 14,000
2005 – 06 9,000
2006 – 07 8,000
2007 – 08 10,000
Prepare capital account of Devender.
Q 17. A company issued for public subscription on 40,000 equity shares of Rs.10 each at a premium of Rs.2
per share payable as under:
On Application Rs.2 per share
On Allotment Rs.5 per share (Including Premium)
On I Call Rs.2 per share
On II Call Rs.3 per share
Applications were received for 60,000 shares, allotment was made pro rata to the applicants for 48,000
shares. The remaining applications being refused. Money overpaid on application was utilized towards sum
due on allotment. Girdhari to whom 1,600 shares were allotted failed to pay the allotment money and
Krishna to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently
forfeited after second call was made. All forfeited shares were re-issued as fully paid at Rs.8 per share.
Give Journal entries.
8 marks question.
Q 18. The “Receipts and Payments Account” of “Delhi Football Club” for the year ending 31st March 2008
was as under:
Receipt Rs. Payment Rs.
Balance B/d (01/04/2007) 48,000 Purchase of Balls 80,000
Subscription 2,46,000 Tournament Fees 10,000
Interest 2,000 Affiliation Fees 2,000
Sale of Furniture 10,000 Rent of Playground 5,000
Donations for Club 60,000 Refreshment Expenses 4,000
Travelling Expenses 30,000
Investment 1,00,000
Salaries 12,000
Miscellaneous Exp 8,000
Bal C/d (31/03/2008) 1,15,000
3,66,000 3,66,000
Prepare clubs “Income & Expenditure Account” for the year ending 31st March 2008 and
“Balance Sheet” as on the date after taking the following information into account:
i) Subscription received include Rs.10,000 for the year 2006-07 and Rs.8,000 for the year 2008-09 and
Rs.16,000 are still outstanding as Subscriptions for the year 2007-08.
ii) The book value of furniture sold was Rs.14,000.
iii) Interest earned but not paid amounted to Rs.500.
iv) Rent of playground due but not paid for the current year amounted to Rs.6,000,
Rs.1,000 was paid for the year 2006-07
v) Salary outstanding for the year 2007-08 was Rs.5,000.
vi) Stock of balls on 31st Match 2008 was Rs.4,000.
Part B
Q 19. What are the major heads which appear at the Asset side of the Balance Sheet?
Q 20. Define Profit and Loss Account / Income Statement.
Q 21. From the following balance sheets, prepare a comparative balance sheet of D Ltd:
Liabilities Rs. (2000) Rs.(2001) Assets Rs. (2000) Rs.(2001)
Equity Share Capital 7,50,000 9,00,000 Fixed Assets 12,45,000 11,55,000
General Reserves 1,50,000 2,25,000 Current Assets 6,15,000 7,95,000
12% Debentures 2,70,000 1,80,000 Preliminary Exp 45,000 30,000
Unsecured Loans 1,80,000 1,20,000
Current Liabilities 3,75,000 4,20,000
Profit & Loss A/c 1,80,000 1,35,000
19,05,000 19,80,000 19,05,000 19,80,000
Q 22. The following Ledger balances were extracted from the books of Varun Ltd. as on 31sr March 2002.
Calculate Stock Turnover Ratio, Operating Ratio, Gross Profit Ratio:
Particulars Rs.
Opening Stock 28,000
Closing Stock 22,000
Purchases 46,000
Sales 90,000
Sales Returns 10,000
Carriage Inwards 4,000
Office Expenses 4,000
Selling & Distribution Expenses 2,000
Capital Employed 2,00,000
Q 23. From the following information, prepare the Cash Flow Statement for the year ended 31st March
2007:
Particulars Rs.
Opening Cash Balance 10,000
Closing Cash Balance 12,000
Decrease in Debtors 5,000
Increase in Creditors 7,000
Sale of Fixed Assets 20,000
Redemption of Debentures 50,000
Net Profit for the Year 20,000
Marking Scheme
Sol. 1. Capital Receipts : Special Donations, Sale Proceeds of Fixed Assets ½
Revenue Receipts : Sale of Old News Paper, Subscriptions ½
Sol. 2. Excess of income over expenditure is called surplus 1
Sol. 3. If it has debit balance 1
1
Sol. 4. Rs.1,500
1
Sol. 5. Average Profits = Rs. 20,000
Normal Profits = Rs. 6,000 ½
Super Profit = Rs. 14,000
Goodwill = Rs. 42,000 ½
Sol. 6.a) Asset 99,000
To Vendor 99,000
b) Vendor 99,000
To 11% Debentures A/c 99,000
(990 Debentures of Rs.100) 1
Sol. 7. Anil A/c Dr 550
To Mohan 550
3
Sol. 8.
i) Adjustment of Goodwill
ii) Adjustments of Profit/Losses from the re-valuation and assessment
iii)Adjustments of the accumulated profits 3 3
Sol. 9. Total capital value of firm on the basis of new partners contribution= 2,00,000 X 5/1 =Rs.10,00,000 ½
Actual capital of the firm= (Ram + Kabir)’s capital of the adjustment of revaluation +
Prabhu’s Capital
{3,00,000 + 1,50,000 – 7,000} + 2,00,000 = Rs.6,43,000
Hidden Goodwill = 10,00,000 – 6,43,000 = Rs.3,57,000 ½
Prabhu’s Share = 3,57,000 X 1/5 = Rs.71,400
3
Sol. 10. A gain 1/4 – 1/6 = 1/12 (1:5)
B gain 3/4 – 2/6 = 5/12 1
Amount agreed to be paid in the full settlement 1,50,000
(-) C’s Capital 1,20,000
(After all adjustments)
Rs.30,000 Hidden Goodwill
A’s Capital A/c Dr
B’s Capital A/c Dr
To C’s Capital A/c 3
Sol. 11. Profit of revaluation – 5,415
Capital Account:
Anurag – 33,610
Bhavna – 21,805
Monika – 15,000
Balance Sheet Total = Rs.1,36,315 4
Sol. 12.
1) For recording application money
2) For Allotment
3) For I Call
4) Forfeiture
5) Final Call
6) Forfeiture
Sol. 13.
(i) a) Share Capital Dr 6,000
To Share Allotment A/c 1,800
To Share First Call A/c 1,200
To Share Final Call A/c 1,200
To Share Forfeiture A/c 1,800
b) Bank A/c Dr 3,600
Share Forfeiture A/c Dr 400
To Share Capital 4,000
c) Share Forfeiture A/c Dr 800
To Capital Reserve 800
(ii) a) Share Capital A/c Dr 8,000
To Calls Unpaid 5,600
To Share Forfeiture 2,400
b) Bank A/c Dr 5,500
To Share Capital 5,000
To Sec Premium 500
c) Share Forfeiture A/c Dr 1,500
To Capital Reserve 1,500
Sol. 16. Profits on rev. 17,100
Devinder’s Capital 25,650 6
Sol. 17. Capital Reserve: 6,640 6
Sol. 18. Surplus – 85,500
Opening Capital Fund – 71,000
Balance Sheet Total – 2,35,500 8
Sol. 19. For any four correct major heads 1
Sol. 21. Change in % Fixed Assets 7.23%
Current Assets 29.27%
P/E 33.33%
Share Capital 20.00%
G.R. 50.00%
Debentures 33.33%
Loans 33.33%
Current Liabilities 12.00%
P&L A/c 25.00%
Total 3.93%
Sol. 22. STR = 2.24 Time 2
OR = 77.5% 2
GP = 30% 2
Sol. 23. Net cash flow from operating activities 32,000 2
Net cash flow from investing activities 20,000 2
Net cash flow used in financing activities 50,000 2
Net income in cash —-
(+) Opening Balance —- 2
—- End of document —-
PAPER – 04 leave a response
SAMPLE QUESTION PAPER-IV
ACCOUNTANCY
Time : 3 hrs Max Marks: 80
General Instructions:
(i)This question paper contains parts A & B
(ii) Part A & part B should be attempted at the place
PART A
Partnership and company Accounts
1. Give any one difference between Cash book and Receipts and Payment
account (1)
2. Amit and Sumit are partners in a firm without having partnership deed what should be done in the
following case
(i) Amit wants to introduce his son Raju into the business. Sumit objects it
(ii) Amit spends more time then Sumit in business the wants a salary of Rs 3000 per month for
extra time be denotes (1)
3. What do you mean by ‘Goodwill’? (1)
4. In which ratio goodwill will be treated at the of retirement of a partner?
(1)
5. What do you understand by preferential allotment?
(1)
6. Ramananda Orphanage Society receipts and payment account shows that it received Rs 3,50,000 as
subscription in the year ending 31st Dec 2007.Account shows that Rs 21,000 were outstanding at the
beginning of the year out of which only Rs15,000 were received during the year. Subscriptions in advance
were Rs 2000 Rs 5000 respectively at the beginning and end of the year 2007 . Subscriptions in arrear at
the end of year of 2007 were Rs 23,000 Show how would you deal with these in income and expenditure
account and balance sheet as at 31st December 2007
(3)
7. 20,000 shares of Rs. 10 each were issued for public subscription at a premium of 10% . Full amount was
payable on application. Application were received for 30,000 shares and the board decided to allot the
shares on a pro-rata basis Pass followed entries
(3)
8. Journalise
A ltd Company issued 2000, 12%debentures of Rs 100 each at a discount of 10% redeemable at par
after 5 years.
(a) If they were converted into 14% debentures of Rs 100 each issued at a premium of 25% before maturity.
(b) If they were converted into 14% debenture of Rs 100 each issued at a discount of 20% before maturity.
(3)
9. A man , Babu and Chaman were in partnership with there fixed Capitals of Rs 48,000 ; Rs 40,000 and
Rs.32,000 respectively. It was agreed that they will set interest on capital @ 8% p.a. the profit sharing ratio
were
2001 — 1:1:1
2002 — 2:2:1
2003 — 4:3:1 and
2004 — 3:2:1
It was found that interest on capital was omitted for these four years.
You are required to make an adjusting entry for the above omission.
(4)
10. A , B and C were partners in a firm sharing profits in the ratio of 3:2:1
The Balance Sheet as on 31-3-2003 was as follows
Liabilities Rs Assets Rs
CreditorsReserve
A’s Capital
B’s Capital
C’s Capital
4000 6000
24000
12000
8000
BuildingsPlant &Machinery
Stocks
Debtors
Cash at Bank
2000016000
5100
6000
6900
54000 54000
A died on 30-9-2003 ,under the partnership agreement ,the executors of a deceased partner were entitled
to
(a) Amount standing to the Credit of partners Capital account.
(b) Interest on Capital @ 12 % p.a.
(c) Share of goodwill on the basis of four years purchase of last three years average profit.
(d) Share of profit from the closing of the last financial year to the date of death on the basis of last years
profit profit for the year 2001,2002 and 2003 were Rs 8000, Rs 12,000 and Rs7000 respectively.
Prepare A’s Account
(4)
11. Chandra Ltd was registered with Capital of Rs 3,00,000 shares of RS 100 each. It issued 2000 shares
payable Rs 20 per share on application , Rs 30 on application, Rs 20 on first call and the balance as and
when required.
All the money due on application and allotments was duly received except first call of Rs 20 per share
on 100 shares. But a shareholder holding 200 shares paid them in full.
Show the Balance Sheet
12. Given below is the Receipts and Payments Account of a club for the year ending
31stDecember,1995
Receipts Amount Payments Account
To Balance b/dTo Subscriptions Rs
1994 40
1995 2050
1996 60
To Donations
To Sale of Drama Tickets
To Sale of Waste Paper
Rs1025
2150
540
950
45
By Salaries
By Expenses
By Drama Expenses
By Newspaper
By Municipal Taxes
By Charity
By Investments
By Electric Charges
Rs600
75
450
150
40
350
2000
145
By Balance c/d 900
4710 4710
Prepare the Club Income and Expenditure Account for the year ended 31st December ,1995 and its Balance
Sheet as on that date after taking the following informations into account:
(i) There are 500 members each paying an annual subscription of Rs 5; 50 being in arrears for
1994 at the beginning of this year
(ii) Municipal Taxes amounting Rs 40 per annum have been paid upto 31st March ,1996 and Rs.50
for salaries is outstanding
(iii) Building stood in the books at Rs 5,000
(iv) 6% interest has accrued on investments for five months
P, Q and R were partners in the ratio of 5:3:2 Their Balance Sheet was as follows:
Balance Sheet
LiabilitiesCapitals:
P – 8,64,000
Q – 4,98,000
R – 4,14,000
Reserve Fund
Sundry Creditors
AmountRs
17,76,000
2,16,000
1,68,000
AssetsBuildings
Hand
Machinery
Furniture
Stock
Debtors
Cash in hand
AmountRs
4,56,000
4,80,000
5,58,000
92,400
2,22,000
2,06,400
1,45,200
21,60,000 21,60,000
Q. retires
(1) Stock was valued at Rs 2,06,400
(2) Furniture were valued at Rs 96,000
(3)Rs 12,000 was made provision for doubtful debts.
(4) Goodwill of the firm is valued at Rs 2,40,000
(5) Q was paid Rs 48,000 immediately and the balance was transferred to his Loan account.
(6) Future profit sharing ratio was decided as 3:2
you are required to prepare revaluation a/c partners capital a/c and Balance Sheet of the new firm.
(8)
13. A and B were partners in the ratio of 7:5 C was admitted for 1/6th share . The new ratio was decided as
13:7:4 respectively C brings Rs 2,00,000 as his share of capital but was not able to bring any cash for his
share of goodwill. The firms goodwill at the time of c’s admission was valued at Rs 1,92,000 Pass
necessary journal entries.
1. Pass necessary journal entries.
(i) On 1st January 2002 , a limited Company issued 12% debentures of Rs 4,00,000 at a discount
of 10 % repayable at the end of 4 years (Pass only issue journal entry)
(ii) Mohan ltd , purchased assets of Sohan ltd, for Rs 4,20,000 and also took over the liabilities of
Rs 40,000 at an agreed value of Rs 3,60,000 Mohan ltd issued 11 % debentures of Rs 100 each at 20 %
discount in full satisfactions. Pass necessary journal entries in the books of Mohan ltd.
(iii) Meena ltd took a loan of Rs 4,20,000 from the Bank and issued 500 ,10 % debentures of Rs
1000 each as a collateral security. Prepare Balance sheet of the company.
6
1. X and Y sharing profits in the ratio of 3:2 had the following Balance Sheet as on March 31,2008
Liabilities Rs. Assets Rs.
CreditorsGeneral reserve
Capital A/c
X 54000
Y 36000
15,00012,000
90,000
CashDebtors 20000
Less: Provision for Doubtful 800
Debts Patents
Investments
Machinery
Goodwill
5,0001,92,00
14,800
8,000
72,000
10,000
1,29,000
Current A/c
X 10000
12,000
Y 2000
1,29,000
On April 1, 2008 , they decided to admit Z on the following terms:
(i) A provided of 5% is to be created on debtors.
(ii) Accrued income of Rs.1500 does not appear in the books and Rs 5000 are outstanding for
salaries.
(iii) The present market value of investments is Rs 6000 x takes over the investments at this value.
(iv) The new profit sharing ratio of partners will be 4:3:2
(v) Z will bring in Rs 20,000 as his capital
(vi) Z is to pay in cash an amount equal to his share in the firm’s goodwill valued at twise the
average profits of the last 3 years which were 25,000; Rs 26,000and 30,000 respectively.
(vii) Half the amount of goodwill is withdrawn by the old partners.
You are required to pass the journal entries . Prepare the Revolutions Account , the Partners Capital
accounts, the current Accounts and the opening Balance Sheet of the new firm.
(or)
1. Krishna ltd issued Rs 15,00,000 new capital divided into Rs 100 shares at a premium of Rs 20 per
share payable as follows: Rs 10 per share on application Rs 40 per share and Rs 10 premium
allotment and Rs 50 per share and 10 premium on final payment.
Over payments on application were to be applied towards sums due on allotment and over
payments on application exceeding sums due an allotment were to be returned where no allotment was
made money was to be returned in full. The shares were over subscribed to the extent of 19500 shares.
Applicants for 18,000 shares were allotted only 1500 shares and applicants for 3000 shares were sent
letters of regret and application deposit were returned to them. All the money due on allotment and final call
was duly received . Make the journal entries & show the companies Balance Sheet.
(or)
Ram Ltd. Issued 100000 shares of Rs. 10 each, payable 3 on application, 4 on allotment, 2 on first call & the
balance on final call. Rita the holder of 200 shares failed to pay allotment & first call money & her shares
were forfeited. After this forfeiture, the final call was made & Anju the holder of 2000 shares failed to pay the
final call & her shares were forfeited.
Pass the necessary journal entries & show Balance Sheet also.
8
II
PART B
ANALYSIS OF FINANCIAL STATEMENT
17.Assuming that the current ratio is 2:1 , state giving reason whether the ratio will improve, decline (or) will
have no change in cash a bill receivable is dishonoured.
1
18. State whether cash deposited in bank will result inflow , outflow(or) no flow of cash.
1
19. Interest received by a finance company is classified under which kind of activity while preparing a cash
flow statement.
1
20. Give the heading under which the following will be shown in a company Balance Sheet as per Schedule
VI.
Part I
(i) 10% debentures
(ii) Preliminary expenses
(iii) Goodwill
(iv) Securities premium
(v) Bills payable
(vi) Discount an issue of debentures
3
1. Prepare a Comparative Income statement with the help of the following information;
Particulars 2006 2007
Rs Rs
Sales 20,000 30,00,000
Gross profit 40 % 30 %
Indirect expenses 50% of GP 40% of GP
Income Tax 50 % 50 %
1. Profit before tax-Rs 20,00,000
Tax rate-40 %
Proposed dividence-Rs.5,00,000
Capital:
(a) Equity shares 25000 shares of Rs 100 each- Rs 25,00,000
(b) 10 % preference shares-Rs 10,00,000 f rom the above calculate for equity shares.
(i) Earning per share
(ii) Divident per share
(iii) Price earning ratio
1. From the following Balance Sheet of ABC ltd , find act cash from oprating activities only
Liabilities 31.3.06 31.3.07 Assets 31.3.06(Rs)
31.3.07(Rs)
Share capitalGeneral reserve
Profit&loss a/c
10% debenture
Sundry creditors
Positon for depreciation as
machinery
3000010000
-
21000
8500
9000
3500015000
7000
25000
12000
13000
GoodwillMachinery
10% investment
Stock
Cash and bank
Discount
On debentures
Profit & cash a/c
1000041000
3000
6000
12000
500
6000
800054000
8000
24500
13000
-
-
78500 107500 78500 107500
Additional Information:
1) Debentures were issued on 31.3.2007
2) Investments were made on 31.3.2007
PAPER – 04 MARKING KEY leave a response
SAMPLE QUESTION PAPER – IV
MARKING KEY
ACCOUNTANCY Max Marks :
80
1 Any one difference 1
2(1) Amit can not introduced his son.
(2) Amit can not claim Salary as per partnership deed.
3 Meaning of goodwill 1
4 Joining Ratio . 1
5. Meaning of preferencial allotment 1
6. Amount to be shown in Income and Expenditure account Rs 3,55,000 3
½ a mark for each Add & Less and a 1 mark for the right answer.Shown
In Income & Expenditure a/c and Balance Sheet.
Cr(Rs) Cr(Rs)
7. (1) Bank a/c or 3,30,000
To share application and allotment a/c 3,30,000
Share application & allotment a/c 3,30,000
To Share Capital 2,00,000
To securities premium 20,000
To Bank 1,10,000
(1+2)=3 marks
8.Each entry 1 mark
(a) For premium ( debentures+ premium)
Rs.1,60,000 Rs 40,000
(b) For discount ( debentures(-) discount )
Rs 2,50,000 Rs 50,000
9. Aman’s current a/c Or 1280
Batries current a/c Or 1040
To Chaman’s current a/c 2320
(3 marks for correct working + 1 mark for journal entry)
10. To as executes a/ c 48190 1 Mark
By balance b/d 24000 ½ mark
G.R 3000 ½ mark
Interest on Capital 1440 ½ mark
By C’s Capital a/c 12000 ½ mark
By C’s Capital a/c 6000 ½ mark By
suspense a/c 1750 ½ mark
1. Balance Sheet
LiabilitiesShare Capital
Authorised 3000shares of Rs 100 each
Issued and subscribed 2000 shares of Rs 100
each
Called up and paid up2000
Shares of rs 100 each
Rs 70 called up 1,40,000
Less ; arrear 2000
3,00,000
2,00,000
1,38,000
6000
AssetsCurrent Assets
Cash at Bank
Rs1,44,000
Calls in advance
1,44,000 1,44,000
Authorised share capital-1/2 mark
Other each - 1 mark
Credit in advance - ½ mark
1. Surplus – Rs 2235
Capital fund- Rs 6075
Total of closing B/S- Rs 8420
13. A’s Sacrifice= 7/12-13/24=1/24 ½ mark
B’s Sacrifice= 3/24 ½ mark
C,s Share of goodwill= Rs 32000 1 mark
Each entry 1 ½ mark
6 mark
14. (i) Each entry 1 mark =2 marks
(ii) Capital Reserve- Rs 20,000
Each journal entry 1 ½ mark – 2 marks
(iii) Preparation of Balance Sheet – 1 mark
(2+3+1)=6
1. Revolution a/c loss transferred to
X’s current a/c 3/5th – 3420
Y’s current a/c 2/5th – 2280
Capital a/c closing ( 54,000 , 36,0000 and 20,000)
(or) Rs
Revolution a/c loss P – 12,000
Q – 7200
R – 4800 24000
Capital a/c (closing b/s) P- 9,36,000
Qs loan 5,79,600
R 4,04,400
Balance Sheet total = 20,88,000
1. Share allotment money receives Rs 6,75,000
Each entry – ½ mark
Application money transfer – 1mark
Balance sheet – 1 mark
(or)
200 shares – to shares forfeited a/c – Rs 600
2000 shares – to shares forfeited – Rs 18,000
Each journal entry – 1/2 mark & balance sheet -2
17. No change – because are current asset will be replaced by another current asset
debtors. ½ mark
18. Neither inflow (or) cash inflow of cash.
19. Opreting activity.
20. 10 % debentures = secured loan
Preliminary expenses= miscellaneous expenditure
Goodwill = Fixed Assets
Reserve & surplus= Reserve & Surplus
21.
Particulars Percentage Change
SalesCen: Cost of sales
G.P.
50%75%
12.50%
Cen: Indirect expenditure
Net profit before tax(b)
Cen: Income Tax
N.P. after Tax
(-)10%
35%
35%
35%
22.
(i) EPS = Rs 44 Rs 11,00,000
—————–
25000
(ii) DPS= Rs 20 Rs 5,00,000
—————-
25000
(iii) Price Earning Ratio = 5 times 220
——————-
44
23. Cash flow from operating Rs
Activity 11,800
( interest on investment)=(300)
Interest on debentures 2100
PAPER – 05 leave a response
Sample Paper V
Accountancy – XII
Max Time – 3 hours Max. Marks – 80
PART – A
1. Why depreciation on Fixed Assets is not recorded in Receipt and Payments Account? (1)
2. Ravi, a partner, in the Firm has advanced a loan of Rs. 1,00,000 to the firm and has demand an interest
@ 9% p.a. The Partnership deed is silent on the matter. How will you deal with it?
(1)
3. Distinguish between firm’s guarantee and Personal guarantee. (1)
4. What is hidden good will? (1)
5. State the ratio on which profit or loss on revaluation will be shared by the partners when a partner
retires. (1)
6. Show the following information in financial statements of a ‘Non-for-Profit’ Organization:
Details
Match Expenses 8,00,000
Match fund 4,00,000
Donation for Match Found 2,40,000
Sale of Match Tickets 3,60,000 (3)
7. L, M and N are partners in a firm sharing profits and losses in the ratio of 2:3:5. Their Fixed capitals were.
Rs. 15,00,000, Rs. 30,00,000 and Rs. 60,00,000 respectively. For the year 2007 interest on capital was
credited to them @ 12% instead of 10%. Pass the necessary adjustment entry. (3)
8. JCM Ltd. Invited applications for issuing 20,000 equiry shares of Rs. 20 each at a discount of 10%. The
whole amount was payable on application. The issue was fully subscribed Pass necessary Journal
Entries. (3)
9. E and F were partners in a Firm, sharing profits in the ratio of 3:1. They admitted G as a new partner on
1.3.2007 for 1/3rd share. It was decided that E, F and G will share future profits equally. G brought Rs.
50,000 in cash and machinery worth Rs. 70,000 for his share of profit as premium for goodwill. Showing
your calculations clearly, pass necessary journal entries in the books of the firm. (4)
10. D Ltd. Forfeited 800 shares of Rs. 10 each fully called up, on which the holder has paid only the
application money of Rs. 3 per share. Out of these, 500 shares were re-issued at Rs. 11 per share, fully paid
up. (4)
11.X Ltd. Purchased assets of Y Ltd. As under:
Plant and Machinery of Rs. 20,00,000 at Rs. 18,00,000; Land and Building of Rs. 30,00,000 at Rs.
42,00,000 For purchase consideration of Rs. 55,00,000 and paid Rs. 10,00,000 in cash and remaining by
issue of 8% debenture of Rs. 100 each at a premium of 20%. Record necessary Journal entries in the books
of X Ltd. (4)
12. Extract of Receipts and Payment account for the year ended March 31, 2006 are given below:
Receipts
2004-05 3,000
2005-06 96,000
2006-07 2,500
Subscriptions Outstanding as on March 31, 2005 Rs. 5,000
Total Subscriptions Outstanding as on March 31, 2006 Rs. 12,000
Subscriptions received in Advance as on March 31, 2005 Rs. 2,800
Calculate the amount of subscription to be shown on the income side of Income and Expenditure A/c and
show the relevant data in the balance sheet on 31st March 2005 and 2006.
13. Bakul and Gokul were partners in a firm sharing profits and losses in the Ratio of 2:1 with capitals of Rs.
40,000 and Rs. 30,000 respectivley. They decide to admit Nakul into partnership on conditions that he would
bring in Rs. 20,000 as his capital and Rs. 6,000 for his share of Goodwill for 1/4th share of profit. Half of the
amount of goodwill was withdrawn by the existing partners. The capital of the partners in the New Firm were
to be arranged in profit sharing ratio on the basis of Nakul’s capital and excess or deficit capital to be
adjusted in cash. Show the capital Accounts of the Partners. (6)
14. Surya Ltd. Was formed with a nominal share capital of Rs. 20,00,000 divided into 20,000 shares of Rs.
100 each. Out of these 3,000 shares were issued to the vendors as fully paid up as purchase consideration
for a building acquired. The company offers 13,000 shares to the public payable Rs. 30 per share on
Application, Rs. 30 per shares on allotment and the balance on first and final call applications were received
for 12,000 shares. All money payable on allotment was duly received, except on 100 shars held by X. First
and final call was not made by the company. (6)
How would you show the relevant items in the Balance sheet of Surya Ltd?
15. A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1 on April, 2007, D is
admitted into the firm with 1/4th share in the profits, which he gets 1/8th from A and 1/8th from B. Other terms
of Agreement are as under:
(i) D will introduce Rs. 60,000 as his capital and Pay Rs. 18,000 as his share of goodwill.
(ii) 20% of the reserve is to remain as a provision against bad and doubtful debts.
(iii) A liability to the extent of Rs. 1000 is created in respect of a claim for damages against the firm.
(iv) An item of Rs. 4000 included in sundry creditors in not likely to be claimed.
(v) Stock is to be reduced by 30% and patents to be written off in full.
(vi) A is to pay off the Bank overdraft.
After making the above adjustment the capital accounts of old partners be adjusted on the Basis of D’s
capital to his share in the business, i.e., actual cash to be paid off to, or brought in by the old partners, as the
case may be.
Their balance sheet as on 31st March, 2007 is as follow:
Liabilities Amount Assets Amount
Creditors 36,000 Cash 14,000
Bank Overdraft 20,000 Debtors 50,000
Reserve 15,000 Less: Prov. 2,500 47,500
Capital Accounts: Stock 60,000
A. 60,000 Patents 6,000
B. 60,000 Fixed Assets 98,500
C. 50,000 170,000 Goodwill 15,000
241,000 241,000
Prepare Revaluation A/c, Capital Accounts and the balance sheet of the new firm. (8)
(Or)
On 31st December 2007, the Balance Sheet of P, Q and R who were partners in a firm, is under:
Liabilities Amount Assets Amount
Creditors 25,000 Building 26,000
Reserve Fund 20,000 Investment 15,000
Capital: P 15,000
Q 10,000
R 10,000
35,000
DebtorsB/R
Stock
Cash
15,0006,000
12,000
6,000
The partnership Deed provides that the profits he shard in the ratio of 2:1:1 and in the event of death of any
partner, his executors will be entitles to be paid out:
(a) The capital to his credit at the date of last Balance Sheet.
(b) His proportion of Reserve at the last Balance Sheet.
(c) His proportion of profits to the date of death on the average profits of the last thre completed years,
plus 10% and
(d) By way of Goodwill, his proportion of the total profits for the three preceding years.
(e) The net profits for the last three years were:
2005 Rs. 16,000
2006 Rs. 16,000
2007 Rs. 15,400
R died on 1st April, 2004. He had withdrawn Rs. 5,000 to the date of his death. The investments were sold at
par and R’s executors were paid off.
Prepare Partner’s Capital Accounts, R’s Executor’s account and Balance Sheet of the surviving partners P
and Q.
16. AB Ltd. Invited applications for 1,00,00 equity shares of Rs. 10 each, payable as Rs. 2 on application,
Rs. 3 on allotment and the balance on first and final call. Applications were received for 3,00,000 shares and
the shares were allotted on pro-rata basis. The excess application money was to be adjusted against
allotment money only. M, a shareholder, who had applied for 3,000 shares, failed to pay the call money and
his shares were accordingly forfeited and reissued at Rs. 8 per share as fully paid. (8)
(Or)
A company redeemed 1,000, 15% debentures of Rs. 100 each by converting them into 12% preference
shares of Rs. 100 each at 25% premium and 500, 15% debentures of Rs. 100 each by purchasing from
market for immediate cancellation at Rs. 95 a debenture. Give journal entires.
Part – B
17. Which are the final accounts of a company? (1)
18. What is meant by cash equivalents? (1)
19. Mention any one limitation of cash flow statement. (1)
20. From the following information, calculate Average collection period:
Opening Debtors : Rs. 37,000
Closing Debtors : Rs. 43,000
Sales : Rs. 6,00,000
Cash Sales : Rs. 80,000 (3)
21. Opening Stock Rs. 29,000; closing stock Rs. 31,000; Sales Rs. 3,20,000; Gross Profit Ratio = 25% on
sales.
Calculate (i) Stock turnover Ratio (ii) Purchases (4)
22. Prepare comparative Balance Sheet of XY Ltd. (4)
Liabilities 2006 2007 Assets 2006 2007
Share Capital 30,000 36,000 Fixed Assets 60,000 75,000
Reserve & Surplus
12,000 15,000 Current Assets14,000 13,500
Loans 17,000 25,500
Current Liabilities
15,000 12,000
74,000 88,500 74,000 88,500
23. From the following balance Sheets, Prepare Cash Flow Statement:
Liabilities 2006 2007 Assets 2006 2007
Equity Capital 3,00,000 3,00,000 Goodwill 36,000 36,000
General Reserve
52,000 54,000 Land 1,20,000 108,000
Profit & Loss A/c
38,000 39,000 Building 1,11,000 108,000
Creditors 27,600 18,600 Stock 90,000 70,200
Prof. For Tax 48,000 54,000 Debtors 60,000 66,600
Prof. for D. 1,200 1,800 Bank 19,800 45,600
Debts
Short Term Investment
30,000 33,000
4,66,800 4,67,400 4,66,800 4,67,400
Additional Information:
(a) A piece of land has been sold for Rs. 12,000.
(b) Depreciation of Rs. 21,000 had been chared to building.
(c) An Interim Dividend paid during the year Rs. 15,000. (6)
Adjustment for working capital
Increase in provision for Bad Debts 600
Decrease in stock 19800
Increase in debtors 6600
Income tax paid 48000
Decrease in creditors 9000 49800
Cash Flow from Investing Activities
Sale of land 12000
Purchase of Building 18000 60000
Cash flow from financing activities
Dividend paid 15000 15000
Net Cash Inflow 28800
Add: op. cash & cash equivalent 49800
Closing cash & cash equivalent 78600
3 Marks for Op. Activities 1 Marks for format
1 marks for investing Activities
1 Mark for financing Activities
Building A/c
To Bal B/D 1,11,000 By Dep. A/c 21000
To cash A/c 18,000 By Balance C/D 108000
129000 129000
PAPER – 05 SOLUTION leave a response
Solution Sample Paper -V
Marking Scheme of Accountancy
1. Because depreciation is non-cash expenditure [1]
2. Ravi is entitled to interest @6% p.a. [1]
3. Firm’s guarantee : This is given by the firms i.e. by all the partners of the firm. The deficiency
arising from guarantee is borne by all the partners.
Personal guarantee: This guarantee is given by some particulars partners. The deficiency arising if
any will be borne by the guaranteeing partners only. [1]
4. Hidden goodwill is the excess of desired total capital of the firm over the actual combined capital of
all partners.
5. Old profit sharing ratio (including retiring partners).
1. Balance Sheet
Liabilities
Amount Assets Amount
Math Fund 4,00,000Add: Donation 2,40,000 —-à1 mark
6,40,000
Add: Sales of match tickets 3,60,000 —– 1 mark
10,00,000
2,00,000
Less : Match Exps. 8,00,000 —- 1 mark
7.
Table Showing Adjustment
L M N Total
Interest already credited @12 %
180000 360000 720000 1260000
Interest that should be credited @ 10%
150000 300000 600000 1050000
Partners over credited with
30000 60000 120000 210000
Profit on adjustment for interest (in their
PSR) 2:3:5
42000 63000 105000 210000
+ 12000 + 3000 -15000 -
Adjustment Entry :
C’s current A/C Dr. 15000
To A’s current A/c 12000
To B’s current A/c 3000 (3 marks)
(Interest Excessive charged now rectified)
8.
Bank A/c Dr. 360000
To equity share application & all A/C 360000 (1.5 marks)
Equity share application & All A/C Dr. 360000
Shares discount A/C Dr. 40000
To Equity shares capital A/C 400000 (1.5 marks)
9.
Cash A/C Dr. 50000
Machinery A/C Dr. 70000
To premium for goodwill A/C 120000 (2 marks)
Premium for goodwill A/C Dr. 120000
F’s Capital A/C Dr. 30000
To E’s capital A/C 150000 (2 marks)
Working note:
Old ratio of E and F = 3:1
New ratio of E, F & G = 1:1:1
Sacrifice or Gain:
E= 3 - 1 = 9 - 4 = 5 (Sac.)
4 3 12 12
F= 1 - 1 = 3 - 4 = 1 (Sac.)
4 3 12 12
Since F is gaining equal to ½ in the profits, therefore, he will also have to compensate E proportionately.
Firm’s goodwill on the basis of g’s share in Profit
=120000 x 3 = Rs. 360000
1
10.
Share capital A/C 8000
To Calls in Arrears A/C 5600
To Share Forfeited A/C (800×3) 2400 (2 marks)
Bank A/C Dr. (500 x 11) 5500
Share Forfeited A/C Dr. (500 x 3) 1500
To share Capital A/C (500 x10) 5000
To. Sec. Premium A/C (500 x 1) 500
To Capital Reserve A/C 1500 (2 marks)
11.
Plant and Machinery A/C Dr. 1800000
Land and building A/C Dr. 4200000
To Capital Reserve A/C 500000
To Y Ltd. 5500000 (2 marks)
Y ltd. A/C Dr. 55,00,000
To Bank A/C 10,00,000
To 8 % Debentures A/C 37,50,000
To security premium A/C 7,50,000 (2 marks)
Working Note :
No. of Debenture issued = 4500000 = 37500 Debenture’s
120
1. Income and Expenditure A/C. For the ending March 31, 2006.
Expenditure Amount Income Amount
By Subscription 96,000
Add: O/S For (2005-06) 10,000
1,06,000
Add: Advance for 2005-06 2,800
108800
(3 marks)
(Balance Sheet as on 31 st march , 2005)
Liabilities Amount Assets Amount
Sub. Recd. In Advance
2,800
Subs. O/S
5,000
(1.5 marks)
Balance Sheets as on st March, 2005
Liabilities Amount Assets Amount
Sub. Recd. In advance
2,500
SubscriptionO/S: For 2004-05 2,000
2005-06 10,00012,000
(1.5marks )
13. Capital Accounts
Pariculars
Bank
Gokul
Nakul
Paticulars
Bakul
Gokul
Nakul
To cash A/c
2000
1000
-
By balance bd
20000
30000
-
To balance
42000
31000
20000
By cash bd
-
-
20000
By prem forGoodwill
4000
2000
-
44000
32000
20000
44000
32000
20000
To cash A/c
2000
11000
-
By balance
42000
31000
20000
To balance c/d
40000
20000
42000 31000 20000 42000 31000 20000
2 marks for each partners ‘s cap . a/c [2 X3]
14. BALANCE SHEET FO SURYA Ltd .
Liabilities
Amount
Assets
Amount
Share capital
Authorised Capital
20000 share s @ Rs -100 each
Issued capital
16000 share od Rs each
Subscribed capital
3000 share @ Rs 100 each (paid for
Consideration other than cash )
12000 share @ Rs 100 each Rs 60
2000000
1600000
300000
Fixed assets
Building
Current assets
Cash at bank
300000
717000
P.S. Called up 720000
Less CIA (100 x 30) 3000
717000
1017000 1017000
1 Mark of each entry. (1 x 6)
15. Revaluation A/C [2]
To claim for DamagesTo Stock A/C
To patents A/C
100018000
6000
By CreditorsBy A’s Cap. 10500
B’s Cap. 7000
C’s Cap. 3500
400021000
25000 25000
Capital A/c s [4]
To RevaluationTo Goodwill A/c
To balance C/d.
105007500
77000
70005000
61000
35002500
46000
--
60000
By balance B/dBy Reserve
By Bank C/d
By Cash
By Premium
600006000
29000
9000
600004000
-
9000
500002000
-
-
--
-
60000
-
95000 73000 52000 60000 95000 73000 52000 60000
To Cash A/cTo Balance C/d
-90000
1100050000
600040000
-60000
By Balance B/dBy Cash
7700013000
61000-
46000-
60000-
90000 61000 46000 60000 90000 61000 46000 60000
Balance Sheet
Sundry CreditorsClaim for Damage
320001000
CashDebtors 50000
88000
Capital A/c sA 90000
B 50000
C 40000
D 60000
240000
(-) prov. 5500Stock
Fixed Assets
4450042000
98500
273000 273000
16.
Bank A/c Dr. 600000
To Eq. Shares application A/c 600000
Eq. shares Application A/c 600000
To Eq. Shares Capital A/c 20000
To Eq. Shares Allotment A/c 300000
To bank A/c 100000
Equity shares allotment A/c 300000
To Share Capital A/c 300000
Bank A/c Dr. -
To Eq. Share Allotment A/c -
Eq, Share first & final call A/c Dr. 500000
To Eq. Shares capital A/c 500000
Bank A/c Dr. 495000
To Eq. Share Fist & Final Call A/c 495000
Eq. Share Capital A/c Dr. 10000
To Eq. Share First & Final Call A/c 5000
To Share Forfeited A/c 5000
Balance Sheet 1 ½ Marks
1. These are short term highly liquid investment that are readily convertible into known amount of
cash and which are subject to an insignificant risk of changes in value i.e. –Bank overdraft, cash
credit, marketable see. Treasury bills, comm.,. papers etc. (1 marks)
2. Ignore accounting concept of Accrual basis 1 marks
3. Average collection Period = Average Deb x 365 1 ½ marks
Credit Sales during the year
= (37000 + 43000)/2 x 365 = 28 DAYS 1 ½ Marks
( 6,00,000 – 80,000)
1. (i) Calculation of stock turnover ratio :
Cost of sales = Sales – CP
= 320000 – (320000 * 25/100)
= 240000
Av. Stock = (29000 + 31000 )/ 2 = 30000
STR = COS /AS = 240000/30000
= 8 times 2 Marks
(ii) Calculation of purchases.
Purchases 32000 31000 29000 80000
242000 2 Marks
22. Comparative Balance Sheet
Particulars 2006 2007 Absolute Charges
% Change
Fixed A
60000
75000
15000
25
Working Capital :
Current Assets
14000
13500
500
3.57
Less: Current Liabilities
15000
12000
30000
20.00
B
1000
1500
2500
250
Total Assets / Cap. Employed 59000 76500 17500 29.67
Less : Loans
17000
25500
8500
50
Shareholder’s fund
42000
51000
9000
21.43
Represented by
Share Capital
30000
36000
6000
20.00
Reserve and Surplus
12000
15000
3000
25.00
42000
51000
9000
21.43
2 Marks
2 marks
23. Cash Flow Statement
As per AS – 3
Cash flow from operating Activities
Profit HF to B/s (39000 – 38000)
1000
Add: General Reserve
2000
Interim Dividend paid
15000
Prov. For Tax
54000
Depreciation 21000
PAPER 01 leave a response
Accountancy XII
Sample Paper I
Time 3 hrs M.M-80
Part A
Q1. List any two contents of a partner ship deed? (1)
Q2. Why should a new partner contribute towards Goodwill on his admission? (1)
Q3. Give two circumstances in which sacrificing ratio may be applied. (1)
Q4. Can a company issue a share having face value of Rs 10 at Rs 8 (1)
Q5. Give two examples of ‘Capital receipts’. (1)
Q6. Show how would you deal with the following items in the final accounts of a club:
Debit credit
Prize fund
Prize fund Investments 1,20,000 1,20,000
Income from Prize fund Investments 12000
Prizes awarded 9000
Q7. Raghav limited purchased a running business from Krishna traders for a sum of Rs. 15,00,000
payble Rs 3,00,000 by cheque and for the balance issued 9% debentures of Rs. 100 each at
par. (3)
The assets and Liabilities consisted of the following:
Rs
Plant and Machinery 400000
Buildings 600000
Stock 500000
Sundry Debtors 300000
Sundry Creditors 200000
Record necessary journal entries in the books of Raghav Limited.
Q8. A,B and C are partners sharing profits and losses in the ratio of 1 : 2: 3. They have omitted interest
on capital @ 8% p.a. for two years ended 31st March, 2008. Their fixed capitals were Rs. 400000, Rs
600000 and Rs 800000 respectively. Pass the necessary adjusting
entry. (3)
Q9. A and B are partners in a firm sharing profits in the ratio of 7:5. On April 1,2004 they admit C as a
new partner for (1/6)th share. The new ratio will be 13:7:4. C contributed the following assets towards his
capital and for his share of Goodwill.
Stock Rs. 60000; debtors RS 80000; Land 20000; Plant and Machinery Rs 120000. On the date of
admission of C, the Goodwill of the firm was valued at Rs 750000. Record necessary journal entries in the
books of the firm on C’s admission and prepare C’s capital account.
Q10. X and Y are partners in a firm sharing profits in 3:2 ratio. They admitted Z as a new partner and the
new profit- sharing ratio will be 2:1:1.
Z brought Rs 10000 for the share of Goodwill. Goodwill appeared in the books of X and Y.at Rs. 5000.
Pass the necessary Journal entries in the books of the new firm for the above
transactions. (4)
Q11. CMC Ltd. Invited applications for issuing 100000 equity shares of Rs. 10 each at a premium of Rs 3
per share. The whole amount was payable on application. The issue was over subscribed by 30000 shares
and allotment was made on pro-rata basis. Pass journal
entries. (4)
Q12. X Ltd. Made on issue of 2000. 15% debentures of Rs. 100 each of these, debentures of the face
value of Rs. 50000 are to be redeemed annually commencing from 1996, either by drawings at par or by
purchase in the open market at the company’s option.
During 1996, the company purchased for cancellation of Rs 40000 debentures at Rs 95 and Rs 10000
debentures of Rs. 98. The expenses of purchases amounted to Rs. 500
Make necessary journal entries to be passed 1996.
Q13. From the following receipts and payments Account of Sonic club and from the given additional
information prepare the expenditure on account of salaries for the year ending 31st December,2006 and
show the salaries item in the income and expenditure Account and the balance sheet as on 31stDecember,
2006.
AN EXTRACT OF RECEIPTS AND PAYMENTS ACCOUNT
For the year ending 31st December, 2006
Receipts Rs Payments Rs
By salaries:2005
2006
2007
20000
280000
18000
Additional Information Rs.
(i) Salaries outstanding on 31st Dec,2005 25000
(ii) Salaries outstanding on 31st Dec,2006 45000
(iii) Salaries paid in advance on 31st Dec,2005 10000 (6)
Q14. A,B and C were partners in a firm sharing profits in the ratio of 5:3:2. On 31st March, 2003 their Balance sheet was as under:
Liabilities Rs Assets Rs
CreditorsReserves
A’s capital 30000
110006000
70000
BuildingsMachinery
Stock
2000030000
10000
B’s capital 25000
C’s capital 150000
87000 Patents
Debtors
Cash
11000
8000
8000
87000
A died on 1st October, 2003. It was agreed between his executors and the remaining
Partners that:
a) Goodwill to be valued at 2and a half years purchase of the average profit of the previous four years,
which were :
2000:Rs.13, 000; 2001:Rs.12000; 2002:Rs.20, 000 and 2003:Rs.15, 000.
b) Patents be valued at Rs.8000 ; Machinery at Rs.28000; and buildings at Rs.25000.
c) Profit for the year 2003 to 2004 be taken as having accrued at the same rate as that of previous year.
d) Interest on capital be provided at ten percent p.a.
e) Half of the amount to A to be paid immediately to the executor and the balance transferred to his loan
A/c.
Prepare A’s capital A/c as on 1st October, 2003.
(6 marks)
Q.15)Y Ltd.issued 10000 shares of Rs. 10 each at par.Amounts were due as follows :
Rs. 2.50 on application, Rs. 2.50 on allotment;
Rs. 3 on first call and Rs. 2 on final call.
A, holding 200 shares did not pay the amount due on allotment and first call;and his shares were forfeited .
Final call was made after the forfeiture.B,holding 500shares failed to pay the amount due
on final call and his shares were also forfeited. Show the in the Journal of the company. Also prepare the
balance sheet.
(8 marks)
Or
Pass necessary journal enteries in the books of Roman Ltd. For the following transactions:
(1) 400 equity shares of Rs.100 each issued at a discount of 10% were forfeited for the non-payment of
final call of Rs. 20 per share .The forfeited shares wre reissuied for Rs.38000 fully paid up.
(2) 300 equity shares of Rs.100 each were forfeited for the non- payment of the allotment money of Rs. 40
per share.The first and final call of Rs. 20 per share was not paid . The forfeited shares were reissued for
Rs. 29000 fully paid up.
(8 marks)
Q16) X&Y share profits in the ratio of 3:1.Their balance sheet as on 31st December,1996,was as under :
Liabilities Rs. Assets Rs.
Outstanding ExpensesSundry Creditors
Capital Accounts:
X
Y
500036000
68000
31000
140000
CashSundry Debtors 24000
Less provision 800
Stock
Fixed Assets
Goodwill
D & L A/c
780023200
5000
80000
8000
16000
140000
Z is admitted into partenership on the following terms:-
(i) Fixed assets are to be depreciated by 20 % .
(ii)Provision for doubtful debts should remain at 5% on debtors.
(iii)The new profit sharing ratio will be 5:3:2.
(iv)Z will pay Rs. 20,000 as capital and the capitals of old partner will be adjusted on the basis of new
partners capital and his share in the business, actual cash to be brought in oo withdrawn by old partners, as
the case may be .
(v)Goodwill of the form is valued at Rs. 20000. Prepare capital Accounts and the balance sheet of the new
firm. (8 marks)
OR
P,Q and R sharing profits and losses equally with effect from 1st April,2008. Following is an extract of their
Balancs sheet as at 31st March,2007:
Liabilities Rs Assets Rs
Investment fluctuation 30000 Investments(At last) 500000
Reserve
Show the accounting treatment under the following alternative cases:-
Case(i) If there is no other information
Case(ii) If the market value of Investment is: Rs 500000
Case(iii) If the market value of investment is Rs. 488000.
(8 marks)
PART B
Q17 State the two advantage of financial statement analysis. (1)
Q18. Give two examples of non-cash transactions. (1)
Q19 define cash equivalents. (1)
1. The following figures use extracted from the trial balance of x Ltd:
Share capital: 10,000 Equity share of Rs.10 each fully paid.
Securities premium Rs.10,000
12% Debentures Rs.50,000
Fixed Deposits Rs.25,000
Creditors Rs. 5,000
You are required to draw up the liability side of the Balance sheet according requirement of the
companies Act. (3)
1. Prepare a comman size Balance sheet of x Ltd.& Y Ltd as on 31st March 2007; The Balance sheet
of Kewal Ltd. As on 31st ,2006 and 31st Decmber ,2006 were as follows:
(4)
Liabilities X Ltd(Rs) Y Ltd(Rs) Assets X Ltd (Rs) Y Ltd.(Rs)
Share capital
Reserves
9,00,000
4,00,000
12,00,000
3,50,000
Fixed Asset
Current Asset
10,00,000
5,00,000
16,00,000
2,00,000
Current liabilities
S
2,00,000 2,50,000
15,00,000 18,00,000 15,00,000 18,00,000
1. calculate Debtors turnover ratio : (4)
(in Rs)
Opening Debtors 30,000
Received from Debtors 2,10,000
Closing Debtors 45,000
Sales return 15,000
1. The following balance appeared in the balance sheet of P.K.Ltd. (6)
31.03.06(Rs)
31.03.07(Rs)
Plant and Machinery 48,00,000 65,40,000
Accumulated Depreciates 14,05,000 22,10,000
Proposed Divided 80,000 90,000
Additional Information :
(i)Plant and Machinery costing Rs 12,80,000 accumulated depreciation there on Rs 5,30,000 was sold at a
loss of Rs 2,60,000.
(ii) Dividend provided during the year Rs 95,000.
You are required to compute :
(a) The amount of plant and Machinery purchased, sold and depreciation charged for the year.
(b) Dividend paid during the year.
(c) How each of the item related to plant & machinery and dividend will be recorded in the cash flow
statement.
PAPER 01 – SOLUTION leave a response
CLASS XII
Accountancy Sample paper I solution
Part A
Ans.1 Two contents of a partnership deed are following:-
(1) Interest on capitals :- Whether interest is to be allowed on capitals. If so, the rate of interest.
(2) Drawings:- How much amount the partners are entitled to withdraw for personal use.
Ans.2 Since a new partner gets his share of profits from old partner’s, he must compensate
the old partners for the share sacrificed by them. The amount of compensation given by the new partner is
known as good will.
Ans.3 Two circumstances in which sacrificing ratio may be applied are following:-
(1) At the time of admission of a new partner.
(2) At the time of change in profit sharing ratio of existing partner.
Ans.4 No, a company can not issue a share having face value of Rs.10 at Rs.8 because under section 79 of
the Companies Act, 1956, the rate of discount must not exceed 10% of the value of the share.
Ans.5 Following are the examples of capital receipts :-
(1) Life Membership Fees .
(2)Donation for building.
Ans.6
Liabilities Amt(Rs.) Assets Amt(Rs.)
Prize fund 1,20,000Income from prize (+) 12,000
Fund investments
1,32,000
Price awarded (-) 9,000
1,23,000
Prize fund investments 1,20,000
Ans.7 Books of Raghav Limited
JOURNAL
Date Particulars L.F Dr. Rs. Cr. Rs.
Plant & Machinery A/C Dr.Building A/C Dr.
Stock A/C Dr.
Sundry Creditor A/C Dr.
To Sundry creditor A/C
To Krishna Traders A/C
To Capital Reserve A/C
(Purchase of assets & liabilities )
Krishna Traders A/C Dr.
To Bank A/C
(Payment made through cheque )
Krishna Traders A/C Dr.
To 9% Debentures A/C
(Balance of Rs 1200000 discharged by issue of 12000
debentures of Rs. 100 each at par)
4,00,0006,00,000
5,00,000
3,00,000
3,00.000
12,00,000
2,00,000
15,00,000
1,00,000
3,00,000
12,00,000
Ans 8.
C’s current A/C Dr 16000
To A’s current A/C 16000
Ans 9.
JOURNAL
Date Particular AmtDr (Rs.)
AmtRs (Cr.)
2004April 1.)
Stock A/C DrDebators A/C Dr
Land A/C Dr
Plant and Machinery A/C Dr
To c’s capital A/C
To Premium goodwill A/C (Assets
contributed by c on his admission as his capital
and his share of goodwill premium)
6000080000
200000
120000
335000
125000
April 2.) Premium for goodwill A/C Dr To A’s capital A/C
To B’s capital A/C
(Goodwill premium transferred to the capital
A/C of A and B in sacrificing ratio 1:3)
125000 31250
93750
C’s Capital Accounts
Date Particular Amt. (Rs.) Date Particular Amt(Rs)
2004April 1)
To balance c/d335000335000
2004April 1
By Sunday Assets A/C
335000335000
Working Note:-
(i) C’s share of goodwill = 750000 x 1/6 = Rs. 125000
(ii) Calculation of sacrificing Ratio =
A=
B=
Thus sacrificing Ratio= 1:3
Ans 10 Journal
Date Particulars Dr(Rs.) Cr. (Rs.)
X’s Capital A/C DrY’s Capital A/C Dr
To Goodwill A/C
(Goodwill already appearing in the books, now
written off in old ratio)
Bank A/C Dr
To premium for Goodwill A/C
(The amount of Goodwill/Premium brought in cash
by Z)
Premium for Goodwill A/C Dr.
To X’s Capital A/C
To Y’s capital A/C
(The amount of Goodwill/ Premium transferred to old
Partner’s in sacrificing ratio)
30002000
10000
10000
5000
10000
4000
6000
Working Note:-
Calculation of sacrificing Ratio = Old Ratio – New Ratio
X’s sacrificed =
Y’s sacrificed =
Ans 11.)
CMC Ltd.
Journal
Date Particular Dr(Rs) Cr(Rs.)
Bank A/CTo equity share Application A/C
(Application money received on 130000 shares @ Rs
13 per share)
Equity share Application A/C Dr
To equity share Capital A/C (100000 x Rs 10)
To securities Premium A/C
(100000 x Rs 3)
To Bank A/C (30000 shares x Rs 13.)
(Application money adjusted)
16900001690000
1690000
1000000
300000
390000
Ans 12
JOURNAL
DateParticularsDr (Rs) Cr (Rs)
1996Dec 31
Dec31
Dec 31
Own Debentures A/c Dr To Bank A/c
(purchase of own debentures 400 @ 95 and 100 @ 98 plus
Rs 500 expenses for purchase)
15% Debentures A/c Dr
To own debentures
To profit on redemption of debentures A/c
(Cancellation of own debentures)
Profit on Redemption of debentures A/c Dr
4830050000
1700
48300
48300
1700
1700
To capital reserve A/c
(Transfer of profit on redemption to capital Reserve A/c)
Working Note:-
(i) Amount paid for the purchase of debentures:- Rs.
400 debentures x Rs. 95 per debentures 38000
100 debentures x Rs. 98 per debentures 9,800
47800
Add Expenses 500
Total payment 48300
Ans 13
Income and expenditure A/c
For the year ended 31st Dec 2006
Expenditure Amt Income Amt(Rs)
To salaries 280000Add Salaries paid in Advance on
31.12.2005 10000/290000
Add outstanding for 2006
40000
3,30,000
Balance Sheet
As on 31st December, 2005
Liabilities Amt(rs) Assets Amt(rs)
Outstanding salaries 25000 Prepaid salaries 10000
Balance Sheet
As on 31st December, 2006
Liabilities Amt(rs) Assets Amt(rs)
Outstanding salaries :-For 2005
(25000-20000) 5000
For 2006
(45000-5000) 40000
45000
Prepaid salaries 10000
Ans 14
(i) Valuation of Goodwill :-
Total profit = 13000 + 12000 + 20000 + 15000 = Rs 60000
Average profit = 60000/4 = Rs. 15000
Hence Goodwill at 21/2 years purchased = 15000 x 21/2
Rs. 37500
A’s share of Goodwill = 37500 x 5/10= 18,750
It will be adjusted into the capital Accounts of B & C in the gaining ratio of 3:2
(ii) Share of profit payble to A (upto the date of death) :-
15000 x 6/12 x 5/10 = Rs. 3,750
(iii) Revaluation Account
Particulars Amt(Rs) Particulars Amt(Rs)
To patents A/cTo machinery A/c
30002000
5000
By building A/c 50005000
There is neither profit nor loss due to revaluation of assets.
A’s Capital Account
Date Particular Amt Date Particular Amt
57000
By balance b/dBy reserves (6000 x 5/10)
By B’s capital A/c
(Goodwill)=(18750 x 3/5)
By C’s capital A/c
Goodwill)=(18750 x 2/5)
By p/l Suspense A/c (Share of
profit)
By Int on capital (30000 x 10/100
x 6/12)
300003000
11250
7500
3750
1500
57000
Ans 15
Cash Book
Particular Amt Particulars Amt(Rs)
To share application A/c
To share allotment A/c
To share first call A/c
To share final call A/c
(Rs. 19600-Rs 1000)
2500024500
29400
18600
97500
By balance c/d 9750097500
JOURNAL
Particular Amt(Rs) Amt(Rs)
Share application A/c Dr To share capital A/c
(Application money transferred to share capital A/c)
Share allotment A/c Dr
To share capital A/c
(Amount due on allotment)
Share capital A/c Dr
To share allotment A/c
To share first call A/c
To share forfeiture A/c
(200 shares forfeiture for non-payment of Allotment and first call)
Share final call A/c Dr
To share capital A/c
(final call due on 9800 shares @ Rs 2 per share)
Share capital A/c Dr
To share final call A/c
To share forfeiture A/c
(500 shares forfeited for non payment of final call)
2500025000
1600
19600
5000
25000
25000
500
600
500
19600
1000
4000
Balance sheet
Liabilities Amt(Rs) Assets Amt(Rs)
Issued share capital: 10000 shares of Rs. 10 each
Subscribed and paid up capital:-
9300 shares of Rs. 10 each
93000
100000
97500
97500
Current Assets:-Cash at Bank
97500
97500
Add : Share Forfieture A/c
4,500
Ans 16
Capital Accounts
Particulars X Y Z particulars X Y Z
To P & L A/cTo revaluation
To Goodwill
To X’s capital A/c
To cash
To Bal c/d
1200012300
6000
2700
40000
73000
40004100
2000
1000
24000
35100
4000
16000
20000
BY Bal c/dBy Y’s capital A/c
By z’s capital A/c
By cash
By cash
680001000
4000
73000
310004100
35100
20000
20000
Balance Sheet
Liabilities Amt(Rs) Assets Amt(Rs)
Outstanding expensesSundry creditors
Capital Accounts:
X 40000
Y 24000
Z 16000
500036000
80000
121000
CashSundry Debtors 24000
Less: Provision 1200
Stock
Fixed Assets
2920022800
5000
64000
121000
Working Note:-
(i) Calculation of sacrificing and gaining ratio:-
(ii) Old ratio of X & Y =
New ratio of X,Y & Z=
X = (sacrifice)
Y = (gain)
Z= (gain)
(2) After adjustment for goodwill, z’s capital is reduced by Rs. 4000 to Rs. 16000. The profit sharing ratio
is 5:3:2. Therefore, based on z’s capital, the total capital of the new firm will be;
16000 x 10/2=Rs. 80000
\ X’s capital in the new firm= 80000 x 5/10= Rs. 40000
Y’s capital in the new firm = 80000 x 3/10= Rs. 24,000
Z’s capital in the new firm = 80000 x 2/10= Rs. 16000
Hence, X will be returned Rs. 42,700 – Rs. 40000=Rs. 2,700
Y will bring in Rs. 24000 – Rs. 19000 = Rs. 4,100
(3) Cash balance = Rs. 7,800 + Rs. 20,000- Rs. 2,700 + Rs 4,100
= Rs. 29,200
OR
JOURNAL
Date Particulars Dr. Cr.
2008April 1)
Case (i)
Investment fluctuation reserve A/C Dr.
To P’s Capital A/C
To Q’s Capital A/C
To R’s capital A/C
(Transfer of excess Investment Fluctuation Reserve to
Partner’s Capital accounts in their old profit sharing ratio )
Case II
Investment fluctuation reserve A/C Dr.
To P’s Capital A/C
30000
30000
30000
15000
10000
5000
15000
10000
5000
12000
9000
6000
3000
To Q’s Capital A/C
To R’s capital A/C
(Transfer of excess Investment Fluctuation Reserve to
Partner’s Capital accounts in their old profit sharing ratio )
Case III
Investment fluctuation reserve A/C Dr.
To Investment A/C (500000-488000)
To P’s Capital A/C
To Q’s Capital A/C
To R’s capital A/C
(Transfer of excess Investment Fluctuation Reserve to
Partner’s Capital accounts in their old profit sharing ratio )
PART – B
A.17 Two advantages of financial statement analysis are following:-
1. Help judging the earning capacity or profitability of the business
2. Measuring short term and long tern financial position of the company.
A.18 Two examples non-cash transaction:-
1. Description charged
2. Good will write of.
A.19 Cash Equivalents: – Cash equivalents are shorts term highly liquidly investments that carry in
significant risk of change in value.
A.20 Balance sheet of X Ltd.
Liabilities Amt. Assets Amt (Rs)
1) Share capital 1,00,000
Authorised capital
10,000% share @ 10-
Issued capital 10,000 shares @ 10/-
Subscribed capital 10,000 @ 10/-
1,00,000
1,00,000
2) Reserve and surplus Security Premium
10,000
3) Secured Loans 12% debentures
50,000
4) Unsecured Loans Fixed deposit
25,000
5) Current liabilities Current liabilities
creditors
5,000
A.21
Particulars 2006 2007 Absolute change
Percentage change
Fixed assets 10,00,000 16,00,000 6,00,000 60
Currents assets 5,00,000 2,00,000 (3,00,000) (60)
15,00,000 18,00,000 3,00,000 20
Share capital 9,00,000 12,00,000 3,00,000 33.33
Reserves Surplus 4,00,000 3,50,000 (50,000) (2.5)
Currents liabilities
2,00,000 2,50,000 50,000 25
15,00,000 18,00,000 3,00,000 20
Ans 22.
Calculation of Debtors turnover Ratio:-
Gross Credit Sales = Cash received from Debtors + Sales Returns + Closing Debtors – Opening Debtors.
=Rs 210000 + Rs. 15000 + Rs. 45000 – Rs. 30000
= Rs. 240000
Net Credit Sales = Gross credit sales – Sales Returns
= Rs. 240000 – Rs. 15000 = Rs. 225000
Average Debators = (opening Debators + Closing Debators) % 2
= (30000 + 45000) % 2
= Rs. 37500
Debators Turnover Ratio =
= 6 times
Ans 23
(i) Plant and Machinery purchased = Rs 3020000
Plant and Machinery sold= Rs 490000
And depreciation charged during the year = Rs. 1335000
(ii) Dividend paid during the year = Rs. 85000
ANSWER KEY DELHI SET leave a response
Q. SET No
MARKING SCHEME-2007-08ACCOUNTANCY
DELHI-67/1/1-2-3
EXPECTED ANSWERS / VALUE POINTS
67/1/1 67/1/2 67/1/3
PART A(Not for profit organisations, partnership firms and company accounts)
1
- 4 Q. Give two main sources of income of a not for profit organisation.
Ans. Two main sources of income of a not for profit organisation are: (any two)
(a) Subscriptions
(b) Membership fees/ admission fees/ entrance fees
(c) Donations
2
- 5 Q. A and B are partners………………..valid or not.
Ans. A’s claim is not valid as in the absence of a partnership deed, no salary is allowed to any partner.
3 - 3 Q. Define gaining ratio.
Ans. Gaining ratio is the ratio in which the remaining/ continuing partners acquire the share of the outgoing partner.
4
- 2 Q. State any two ……………………takes place.
Ans. Occasions when reconstitution of a partnership firm takes place are: (Any two)
(a) Admission of a partner.
(b) Retirement of a partner
(c) Death of a partner.
(d) Change in the profit sharing ratio amongst existing partners.
5 - - Q. Give the meaning of ‘Calls in arrears’.
Ans. If a shareholder makes a default in sending the call amount due on allotment or on any calls, the amount not so sent is called calls in arrears/ It is the
unpaid amount on calls due.
Note: Only an entry without any explanation shall not be accepted.
6 - 8 Q. On the basis …………………………31st March 2007.
Ans. Calculation of Stationery debited to Income and Expenditure A/c :
Rs.
opening stock of stationery 8,000
+Stationery purchased during the year 47,000
– closing stock of stationery 6,000
49,000
Alternate solution:
Dr. Stock of stationery A/c Cr.
Particulars Amt(Rs.) Particulars
Balance b/dCreditors-(Purchases)
8,00047,000
Income & Expenditure A/c –stationery consumed
Balance c/d
55,000
7
- 6 Q. PS Ltd. forfeited……………………company.
Ans. Journal of PS Ltd.
Date Particulars F Dr. (Rs.) Cr.(Rs.)
Share capital A/c Dr. Share Forfeited A/c
Share first call A/c
(500 share forfeited due to non-payment of first
call)
45,000 30,000
15,000
Bank A/c Dr. Share Capital A/c
Securities Premium A/c
(500 shares reissued fully paid)
65,000 50,000
15,000
Share Forfeited A/c Dr. Capital Reserve A/c
(Share Forfeited transferred to capital reserve)
30,000 30,000
8
- 7 Q. X Ltd. purchased …………………company.
Ans. Journal of X Ltd.
Date Particulars F Dr. (Rs.) Cr.(Rs.)
Machinery A/c Dr. Y Ltd. A/c
(Machinery purchased from Y Ltd.)
5,50,000 5,50,000
Y Ltd A/c Dr. Cash A/c
55,000 55,000
(Payment paid through cash)
Y Ltd. A/c Dr. 9% Debentures A/c
Securities Premium A/c
(Issue of debentures at 10% premium)
4,95,000 4,50,000
45,000
9
Q. Ravi and Mohan ………………………..adjustment entry.
Ans. Journal
Date Particulars F Dr. (Rs.) Cr.(Rs.)
Mohan’s current A/c Dr. Ravi’s current A/c
(wrong distribution of profit and omission of
interest on capital and salary, now adjusted)
38,000 38,000
Note: No marks should be given for the journal entry if the examinee has written capital accounts instead of current accounts.
Working notes:
Partners Cr. interest oncapital
Cr. salary Dr. profits Cr. profits Net Effect
Dr.
RaviMohan
1,20,00084,000
72,00060,000
2,52,0002,52,000
98,00070,000
-38,000
2,04,000 1,32,000 5,04,000 1,68,000 38,000
10 11 9 Q. A, B and C were partners ………………time of his death.Ans. B’s share of profit = 1,50,000 x 2/6 x 73/365 = 90,000
Or
B’s share of profit = 1,50,000 x 2/6 x 2.4/12 = 90,000
Journal
Date Particulars F Dr. (Rs.) Cr.(Rs.)
Profit and loss suspense A/c Dr. B’s Capital A/c
(B’s share of profit credited to his capital A/c)
10,000 10,000
A’s Capital A/c Dr.C’s Capital A/c Dr.
B’s Capital A/c
(B’s share of goodwill credited to his capital A/c
in the gaining ratio)
15,0005,000
20,000
Note: If the goodwill entry is wrong but the goodwill is calculated correctly, 1 mark should be given.
11 10 10 Q. S Ltd was registered……………….share capital.
Ans. Balance Sheet of S Ltd. as on ……
Liabilities Amount(Rs.)
Assets
SHARE CAPITALAuthorised Capital
40,000 equity shares of Rs.10 each
Issued Capital
30,000 equity shares of Rs.10 each
Subscribed capital
28,000 equity shares of Rs.10 each, fully called up 2,80,000
Less calls in arrears 400
4,00,000
========
3,00,000
========
2,79,600
2,79,600
OR
. Balance Sheet of S Ltd. as on ……
Liabilities Amount(Rs.)
Assets Amount(Rs.)
SHARE CAPITALAuthorised Capital
40,000 equity shares of Rs.10 each
Issued Capital
30,000 equity shares of Rs.10 each
Subscribed capital
28,000 equity shares of Rs.10 each
Called up and paid up Capital
28,000 equity shares of Rs.10 each, fully called up
2,80,000
4,00,000
========
3,00,000
========
2,80,000
========
2,79,600
Less calls in arrears 400
2,79,600
Note: If the Issued Capital is taken as Rs.2,80,000, full credit is to be given.
12 13 - Q. Following is the ………………..as on 31. 3.2005.Ans. Balance Sheet of A, B and C as on 31.3.2005
Liabilities Amount(Rs.) Assets Amount(Rs.)
Capital fund 43,550 CashSubscriptions
outstanding
Furniture
Books
19,5502,000
15,000
7,000
43,550 43,550
Dr. Income and Expenditure A/c for the year ended 31st March 2006 Cr.
Expenditure Amount(Rs.)
Income
Loss on sale of furnitureSalary 3,000
(+)outstanding 600
Newspapers
Electricity bill
Rent 6,800
(+)outstanding 1,200
Surplus
1,300
3,600
2,050
1,000
8,000
24,850
Subscriptions 26,500+ o/s for 05-06 1,700
Sale of old newspapers
Government grants
Interest on fixed deposit
450
(+)outstanding 900
40,800
Note : If an examinee has capitalized Government Grants by giving a note, full credit is to be given and the Surplus would then be Rs.14,850.
13 Q. A and B were partners……………….on C’s admission.
Ans. A sacrifices = 5/8 x 1/3 = 5/24
B sacrifices = 3/8 x ¼ = 3/32
Sacrificing ratio = 20 : 9
A’s new share = 5/8 – 5/24 = 40/96
B’s new share= 3/8 – 3/32 =27/96
C’s new share = 5/24 + 3/32 = 29/96
New ratio = 40 : 27 : 29
Journal
Date Particulars F Dr. (Rs.)
Cash A/c Dr. C’s Capital a/c
Premium A/c
(Cash brought in by C as his share of capital and goodwill)
2,08,000
Premium A/c Dr. A’s Capital A/c
B’s Capital A/c
(C’s share of goodwill credited to A and B in the sacrificing ratio)
58,000
14 12 - Q. Pass the necessary ……………….…………of 25%.Ans. Journal
Date Particulars F Dr. (Rs.)
(a)Bank A/c Dr.
Debenture Application and
allotment A/c
(Debenture application money received)
60,00,000
Debenture Application and 60,00,000
allotment A/c Dr.
7% Debentures a/c
Securities premium a/c
(Debentures issued at a premium)
(b)Own Debentures A/c Dr.
Bank A/c
(Purchase of 3,000 own debentures @Rs.97)
2,91,000
9% Debentures A/c Dr. Own Debentures A/c
Profit on cancellation of
debentures A/c
(Cancellation of 3,000 own debentures)
3,00,000
Profit on cancellation of debentures Dr. Capital reserve A/c
(Gain on cancellation transferred to capital reserve)
9,000
(c) 9% Debentures A/c Dr.
Debentureholders A/c
(Amount due to the Debentureholders)
1,80,000
Debentureholders A/c Dr. 12% Debentures A/c
Securities premium A/c
(Issue of shares at a premium of 25%)
1,80,000
15 Q. X and Y are partners………………….of the new firm.
Ans. Revaluation A/c
Particulars Amount(Rs.) Particulars
Plant & MachineryProfit transferred to
X capital 4,000
Y capital 2,400
5,0006,400
Land and buildingProvision for doubtful debts
Creditors
11,400
Dr. Capital accounts Cr.
Particulars X Y Z Particulars X Y Z
Balance c/d 66,50044,90020,000Bal b/dG Reserve
Cash A/c
Revaluation A/c
Z’s current A/c
50,00010,000
-
4,000
2,500
35,0006,000
-
2,400
1,500
--
20,000
66,50044,90020,000 66,50044,90020,000
Current a/c –transferBalance c/d
41,50025,000
29,90015,000
-20000
Balance b/d 66,50044,90020,000
66,50044,90020,000 66,50044,90020,000
Balance Sheet of X, Y and Z as on 1.4.2007
Liabilities Amount(Rs.)
Assets
Capitals:X 25,000
60,000
Land and buildingPlant and Machinery
Y 15,000
Z 20,000
Current A/c
X 41,500
Y 29,900
Creditors
71,400
26,000
Investment
Stock
Debtors 20,000
Less provision 1,100
Cash
Z’s current A/c
1,57,400
Note: if an examinee has calculated the adjusted capitals as:
X Rs.20,000; Y Rs.12,000 and Z Rs.16,000 and the total of the Balance Sheet is Rs.1,53,400, only ½ mark is to be deducted.
OR
Dr. Revaluation a/c Cr.
Particulars Amt(Rs.) Particulars Amt(Rs.)
StockFurniture
Plant and Machinery
Building
Provision for doubtful debts
2,300500
750
4,000
850
Loss transferred to capitals:A 4,200
B 2,800
C 1,400
8,400
8,400 8,400
Dr. Capital Accounts Cr.
Particulars A(Rs.) B(Rs.) C(Rs.) Particulars A(Rs.) B(Rs.) C(Rs.)
Reval –lossA’s capital
4,200-
2,8002,000
1,4001,000
Balance b/dP & L A/c
40,0002,250
25,0001,500
20,000750
Cash A/c
A’s loan
Balance c/d
11,500
29,550
-
-
-
21,700
-
-
18,350
B’capital
C’capital
2,000
1,000
-
-
-
-
45,25026,50020,750 45,250 26,50020,750
Dr. A’s loan A/c Cr.
Particulars Amt(Rs.) Particulars
A’s Capital A/c
16 Q. X Ltd. invited applications ……………………fully paid.
Ans. Journal
Date Particulars
Bank A/c Dr Share application A/c
(amount received on application)
Share Application A/c Dr. Share Capital A/c
Securities premium A/c
Share allotment A/c
Bank A/c
(Application money adjusted)
Share allotment A/c Dr. Share capital A/c
(Amount due on allotment)
Bank A/c Dr. Share Allotment A/c
(The amount received on allotment)
OR
Bank A/c Dr.
Calls in arrears A/c
Share allotment A/c
(The amount received on allotment)
Share first and final call A/c Dr. Share Capital A/c
(The amount due on first and final call)
Bank A/c Dr. Share first and final call a/c
(The amount received on first and final call)
OR
Bank A/c Dr.
Calls-in-arrears A/c Dr.
Share first and final call
(The amount received on first and final call
Share Capital A/c Dr.
Share Forfeited A/c
Share allotment A/c
Share first call A/c
(1,600 shares forfeited)
OR
Share Capital A/c Dr.
Share Forfeited A/c
Calls in arrears A/c
(1,600 shares forfeited)
Bank a/c Dr. Share Capital a/c
Securities Premium A/c
(1,600 shares re-issued)
Share Forfeited a/c Dr. Capital reserve a/c
(Balance in share Forfeited transferred to capital reserve)
OR
Q. Y Ltd. invited applications………………..books of the company.
Ans. Journal
Date Particulars
Bank A/c Dr Share application A/c
(amount received on application)
Share Application A/c Dr.
Share Capital A/c
Share allotment A/c
Bank A/c
(Application money adjusted)
Share allotment A/c Dr. Discount on issue of shares A/c
Share capital A/c
(Amount due on allotment)
Bank A/c Dr. Share Allotment A/c
(The amount received on allotment)
OR
Bank A/c Dr.
Calls in arrears A/c
Share allotment A/c
(Amount received on allotment)
Share first and final call A/c Dr. Share Capital A/c
(Amount due on first and final call)
Bank A/c Dr. Share first and final call a/c
(Amount received on first and final call)
OR
Bank A/c Dr.
Calls-in-arrears A/c Dr.
Share first and final call
(Amount received on first and final call
Share Capital A/c Dr. Share Forfeited A/c
Share allotment A/c
Share first call A/c
Discount on issue of shares A/c
(200 shares forfeited)
OR
Share Capital A/c Dr.
Share Forfeited A/c
Calls in arrears A/c
Discount on issue of shares A/c
(200 shares forfeited)
Bank a/c Dr. Share Capital a/c
Securities Premium A/c
(200 shares re-issued)
Share Forfeited a/c Dr. Capital reserve a/c
(Balance in share Forfeited transferred to capital reserve)
Part B
(Analysis of Financial Statements)
17 18 19 Q. Quick ratio of a company…………….by the company.Ans. Ratio will increase as both the current assets and current liabilities will decrease.
18 19 17 Q. State whether…………………………no flow of cash.Ans. No Flow.
19 17 18 Q. Dividend paid by ………………….cash flow statement.Ans. Financing activity
20 20 20 Q. List the major ……………………Companies Act 1956.
Ans. Major headings on the asset side are:
Fixed Assets Investments Current Assets, loans and advances
(a) Current assets
(b) Loans and advances
Miscellaneous Expenditure
Profit and Loss A/c (Dr. balance)
21 22 21 Q. From the following…………………………Statement.Ans. Comparative Income Statement
For the years ended on 31.12.06 & 31.12.07
Particulars 2006(Rs.)
2007(Rs.)
AbsoluteIncrease/
Percentageincrease/
decrease decrease
SalesLess: cost of goods sold
6,00,0004,50,000
8,00,0004,80,000
2,00,00030,000
33.36.6
Gross profitLess: Indirect expenses
1,50,00015,000
3,20,00064,000
1,70,00049,000
113.3326.6
Net profit before taxLess :tax
1,35,00054,000
2,56,0001,02,500
1,21,00048,400
89.689.6
Net profit after tax 81,000 1,53,600 72,600 89.6
22 21 - Q. From the following……………….ratio.
Ans. Any two ratios
(a) Credit sales = Rs. 3,00,000
Cash sales = 75% of credit sales =3/4 x 3,00,000=2,25,000
Total Sales = Cash sales + Credit Sales
= 2,25,000 + 3,00,000
= 5,25,000
Gross Profit = Net Sales – Cost of goods sold
= 5,25,000 – 6,80,000
= – 1,55,000
Hence, Gross Loss = 1,55,000
Gross Loss Ratio = Gross Loss/ Net Sales x 100
= (1,55,000/5,25,000) x 100
= 29.52%
OR Gross Profit Ratio = Gross profit x 100
Net Sales
= – 1,55,000 x 100
5,25,000
= - 29.52%
(b) Working Capital = Current Assets – Current Liabilities
= 5,00,000 – 2,90,000 = 2,10,000
Working Capital turnover ratio = Net Sales/ Working Capital
= 5,25,000
2,10,000
= 2.5 times
OR
Working Capital turnover ratio = Cost of goods sold/ Working Capital
= 6,80,000
2,10,000
= 3.24 times
(c) Proprietary ratio = Proprietors funds/ Total assets
= 8,00,000/ 14,30,000
= 80 : 143 or 55.94%
Calculation of proprietors funds:
Liabilities Amount(Rs.)
Assets Amount(Rs.)
Paid up capital9% debentures
Current Liabilities
8,00,0003,40,000
2,90,000
Current AssetsFixed Assets (bal fig)
5,00,0009,30,000
14,30,000 14,30,000
23
- - Q. From the following ……………..Cash Flow Statement.
Ans.
Calculation of NP before tax
Net loss (50,000)
Add dividend 80,000
Less transfer from reserve (20,000)
Net profit before tax 10,000
Cash Flow Statement for the year ended 31st March 2007
Particulars (Rs.)
Cash flows from operating activitiesNet profit before tax
20,000
Add interest on debentures
Add loss on sale of machinery
Operating profit before Working Capital changes
Less:
Increase in Debtors
Increase in Stock
Cash used in operating activities
Cash flows from investing activities
Purchase of fixed assets
Sale of machinery
Cash used in investing activities
Cash flows from financing activities
Issue of equity shares
Issue of preference shares
Redemption of Debentures
Dividend paid
Interest paid on Debentures
Cash generated from financing activities
Net increase in cash and Cash Equivalents
Add opening balance of Cash and Cash equivalents
Closing balance of Cash and Cash equivalents
30,000
(40,000)
(50,000)
(2,80,000)
50,000
3,50,000
40,000
(20,000)
(80,000)
(20,000)
Working Notes:
Dr. Fixed assets A/c Cr.
Particulars Amt(Rs.) Particulars
Balance b/dBank -purchase
5,00,0002,80,000
Bank-saleLoss on sale
Balance c/d
7,80,000
Note 1: Full credit to be given to an examinee if he/she has taken preference dividend separately. The answers would be:
Net Profit before tax = Rs.14,800
Cash used in operating activities = Rs.(25,200)
Cash used in investing activities = Rs.(2,30,000)
Cash generated from financing activities = Rs.2,65,200
Note 2: In case, interest on debentures and dividend on preference shares has been calculated on the closing balances, no marks should be deducted.
Q. SET No. ADDITIONAL QUESTIONS OF SET II67/1/2
EXPECTED ANSWERS / VALUE POINTS
DISTRI-BUTION
OF
MARKS
67/1/1 67/1/2 67/1/3
PART A(Not for profit organisations, Partnership firms and Company accounts)
- 1 Q. State any two…….organisation.
Ans. (Any two)
(a) Motive is providing service.
(b) Main sources of income are: Subscriptions from members, donations, grants etc.
(c) They have a separate entity of their own.
(d) They are in the form of charitable societies, trusts, clubs etc.
½ x 2
=
1 mark
- 2 Q. Suresh and Ramesh ………valid.
Ans. No, Ramesh’s claim is not valid as in the absence of a partnership deed, profit are to be
shared equally.
½ + ½=
1 mark
- 3 Q. What is ‘sacrificing ratio’?
Ans. Sacrificing ratio is the ratio in which the existing partners sacrifice their share in favour of
the incoming partner.
1 mark
- 4 Q. State any ……………..acquires in the firm.
Ans. Right acquired by a newly admitted partner: (Any one)
(a) Right to share in the assets of the firm.
(b) Right to share in the profits of the firm.
1 mark
- 5 Q. Give the meaning of ‘calls in advance’.
Ans. Calls-in-Advance means the amount received by a company from its shareholders in excess
of the amount due from them.
Note: Only an entry without any explanation shall not be accepted.
1 mark
- 6 Q. On the basis of the …………..for the year ended 31.3.2007Ans. Stationery debited to Income and Expenditure A/c
Rs.
Opening stock of stationery 1,75,750
+ Stationery purchased during the year 60,80,700
– closing stock of stationery 1,44,650
Rs. 61,11,800
½ mark
1 mark
1 mark
½ mark for
the answer
=
(1/2 + 1+ 1+
Alternative solution:
Dr. Stock of stationery A/c Cr.
Particulars Amt(Rs.) Particulars Amt(Rs.)
Balance b/dCreditors (Purchases)
1,75,75060,80,700
Income & expenditure A/c ( stationery consumed)Balance c/d
61,11,800
1,44,650
62,56,450 62,56,450
½ =
3 marks)
OR
1 mark for
opening
balance +
1 mark for
closing
balance +
½ mark for
purchases +
½ mark for
the answer
=(1+ 1+ ½ +
½ =3
marks)
- 7 Q. Poonam Ltd…………………reissue of shares.
Ans. Journal of Poonam Ltd.
Date Particulars F Dr. (Rs.) Cr.(Rs.)
8%Preference Share capital A/cDr. Share Forfeited A/c
Preference Share first call A/c
Discount on issue of shares A/c
32,00032,000
20,000
8,000
4,000
(400 share forfeited due to non-payment of first
call)
Or
8%Preference Share capital A/cDr.
Share Forfeited A/c
Calls in arrears A/c
Discount on issue of shares A/c
(400 share forfeited due to non-payment of first
call)
20,000
8,000
4,000
Bank A/c Dr. 8% Preference Share Capital A/c
Securities Premium A/c
(400 shares reissued fully paid)
44,000 40,000
4,000
Share Forfeited A/c Dr. Capital Reserve A/c
(Share Forfeited transferred to capital reserve)
20,000 20,000
1 x 3
=
3 marks
- 8 Q. Y Ltd. purchased …………………books of Y Ltd.
Ans. Journal of Y Ltd.
Date Particulars F Dr. (Rs.) Cr.(Rs.)
Machinery A/c Dr. Z Ltd. A/c
(Machinery purchased from Y Ltd.)
55,000 55,000
Z Ltd A/c Dr. Bills Payable A/c
(Bills payable accepted)
5,500 5,500
Z Ltd. A/c Dr. 9% Debentures A/c
(Issue of debentures at par)
49,500 49,500
1 x 3
=
3 marks
- 9 Q. R and S were partners ………………adjusting entry for the same.Ans. Journal
Date Particulars LF Dr. (Rs.) Cr.(Rs.)
R’s current A/c Dr. S’s current A/c
(Interest on drawings omitted, now adjusted)
264 264
Note: No marks should be given for the journal entry if the examinee has written capital
accounts instead of current accounts.
Working notes:
Partners Dr. interest
Cr. profits
Net Effect
Dr. Cr.
1 mark
for
the
journal
entry
+
3 marks
for correct
ondrawings
RS
660-
396264
264-
-264
660 660 264 264
working
in any
form
=(1+3 =
4 marks)
11 10 Same as Q 11 Set 1 4 marks
10 11 Same as Q 10 Set 1 4 marks
14 12 Same as Q 14 Set 1 6 marks
12 13 Same as Q 12 Set 1 6 marks
13 14 Same as Q 13 Set 1 6 marks
16 15 Same as Q 16 Set 1 8 marks
15 16 Same as Q 15 Set 1 8 marks
Part B(Analysis of Financial Statements)
19 17 Same as Q 19 Set 1 1 mark
17 18 Same as Q 17 Set 1 1 mark
18 19 Same as Q 18 Set 1 1 mark
20 20 Same as Q 20 Set 1 3 marks
22 21 Same as Q 22 Set 1 4 marks
21 22 Same as Q 21 Set 1 4 marks
- 23 Q. From the following ……………..Cash Flow Statement.Ans.
Calculation of Net Profit before tax Net
Profit 75,000
Add dividend 20,000
Less transfer from reserve (10,000)
Net profit before tax 85,000
1 mark
Cash Flow Statement for the year ended 31st March 2007
Particulars Amount(Rs.)
Amount(Rs.)
Cash flows from operating activitiesNet profit before tax
Add interest on debentures
Add loss on sale of machinery
Operating profit before Working Capital changes
Less:
Increase in Debtors
Increase in Stock
Cash generated from operating activities
Cash flows from investing activities
Purchase of fixed assets
Sale of machinery
Cash used in investing activities
Cash flows from financing activities
Issue of equity shares
Issue of preference shares
Redemption of Debentures
Dividend paid
Interest paid on Debentures
Cash generated from financing activities
Net increase in cash and Cash Equivalents
Add opening balance of Cash and Cash equivalents
10,000
35,000
85,000
45,000
(25,000)
(20,000)
1,30,000(45,000)
(1,50,000)
15,000
85,000
75,000
20,000
(10,000)
(20,000)
(10,000)
(1,35,000)
55,0005,000
25,000
30,000
1 mark
1 marks
2 marks
Closing balance of Cash and Cash equivalents
Working Notes:
Dr. Fixed assets A/c Cr.
Particulars Amt(Rs.) Particulars Amt(Rs.)
Balance b/dBank -purchase
2,50,0001,50,000
Bank-saleLoss on sale
Balance c/d
15,00035,000
3,50,000
4,00,000 4,00,000
Note 1: Full credit to be given to an examinee if he/she has taken preference dividend
separately. The answers would be:
Net Profit before tax = Rs.87,400
Cash generated from operating activities = Rs.87,400
Cash used in investing activities = Rs.(1,35,000)
Cash generated from financing activities = Rs.52,600
Note 2: In case, interest on debentures and dividend on preference shares has been calculated on
the closing balances, no marks should be deducted.
½ mark
½ mark
=
(1+ 1+ 1+ 2
+ ½ + ½
=
6 marks)
Q. SET No. ADDITIONAL QUESTIONS OF SET III67/1/3
EXPECTED ANSWERS / VALUE POINTS
DISTRI-BUTION
OF MARKS
67/1/1 67/1/2 67/1/3
PART A(Not for profit organisations, Partnership firms and Company accounts)
3 1 Same as Q 3 Set 1 1 mark
4 2 Same as Q 4 Set 1 1 mark
5 3 Same as Q 5 Set 1 1 mark
1 4 Same as Q 1 Set 1 1 mark
2 5 Same as Q 2 Set 1 1 mark
7 6 Same as Q 7 Set 1 3 marks
8 7 Same as Q 8 Set 1 3 marks
6 8 Same as Q 6 Set 1 3 marks
10 9 Same as Q 10 Set 1 4 marks
11 10 Same as Q 11 Set 1 4 marks
9 11 Same as Q 9 Set 1 4 marks
- 12 Q. B and C were partners …………..books of the firm.
Ans. Old ratio = 4:3
B sacrifices = 3/7 x ¼ = 3/28
C sacrifices = 4/7 x ¼ = 4/28
B’s new share = 4/7 – 3/28 = 13/28
C’s new share = 3/7 – 4/28 = 8/28
New ratio = 13 : 8 : 7
Journal
Date Particulars F Dr. (Rs.) Cr.(Rs.)
Cash A/c Dr. D’s Capital a/c
Premium A/c
(Cash brought in by D as his share of capital and
goodwill)
2,22,000 1,80,000
42,000
Premium A/c Dr. B’s Capital A/c
C’s Capital A/c
(C’s share of goodwill credited to A and B in the
sacrificing ratio)
42,000 18,000
24,000
½ mark
½ mark
1 mark
1 mark
= (½ + ½ + 1
+ 1=
3 marks)
+
1 ½ marks
for each
correct
entry
1 ½ x 2 =
3 marks
=
(3 + 3 = 6
marks)
- 13 Q. Pass the necessary ……………….…………of 25%.
Ans. Journal
Date Particulars F Dr. (Rs.) Cr.(Rs.)
(a) 9% Debentures A/c Dr.
Debentureholders A/c
(Amount due to Debentureholders)
80,000
80,000
Debentureholders A/c Dr. Equity Share Capital A/c
Securities premium A/c
(Issue of shares at a premium of 25%)
80,000 64,000
16,000
(b)Bank A/c
Dr.
Debenture Application
and allotment A/c
(Debenture application money received)
20,72,70,000
20,72,70,000
Debenture Application and allotment A/c Dr.
20,72,70,000 19,74,00,000
9% Debentures a/c
Securities premium a/c
(Debentures issued at a premium)
98,70,000
(c)9% Debentures A/c Dr.
Premium on redemption
A/cDr.
Debentureholders A/c
(Amount due to Debentureholders)
1,50,000
37,500
1,87,500
Debentureholders A/c Dr. Bank A/c
(Paid to Debentureholders )
1,87,500 1,87,500
1 x 6
= 6 marks
- 14 Q. Following is the ………………..as on 31. 3.2005.Ans. Balance Sheet of A, B and C as on 31.3.2005
Liabilities Amount(Rs.) Assets Amount(Rs.)
Capital fund —- CashSubscriptions
outstanding
Furniture
Books
39,100—-
30,000
14,000
—– —–
Income and Expenditure A/c for the year ended 31st March 2006
2 marks for
placing
the
indicated
items
Expenditure Amount(Rs.)
Income Amount(Rs.)
Salary 6,000(+)outstanding 1,200
Newspapers
Electricity bill
Rent 13,600
(+)outstanding 2,400
7,200
4,100
2,000
16,000
SubscriptionsSale of old newspapers
Government grants
Profit on sale of furniture
Interest on fixed deposit
900
(+)outstanding 1,800
——-2,500
20,000
3,400
2,700
Note 1: Any amount for subscriptions or capital fund is to be ignored.
Note 2: Surplus/ deficit is to be ignored.
+
½ mark for
each item
indicated
in
the Income
and
Expenditure
A/c
1/2 x 8 = 4
Marks
2 + 4
=
6 marks
15 15 Same as Q 15 Set 1 8 marks
16 16 Same as Q 16 Set 1 8 marks
Part B
(Analysis of Financial Statements)
18 17 Same as Q 18 Set 1 1 mark
19 18 Same as Q 19 Set 1 1 mark
17 19 Same as Q 17 Set 1 1 mark
20 20 Same as Q 20 Set 1 3 marks
21 21 Same as Q 21 Set 1 4 marks
22 22 Same as Q 22 Set 1 4 marks
- 23 Q. From the following ……………..Cash Flow Statement.
Ans.
Calculation of NP before tax
Net profit 1,50,000
Add dividend 30,000
Add transfer to reserve 90,000
Net profit before tax 2,70,000
1 mark
Cash Flow Statement for the year ended 31st March 2007
Cash flows from operating activitiesNet profit before tax
Add interest on debentures
Add loss on sale of machinery
Operating profit before Working Capital changes
Less:
Increase in Debtors
Increase in Stock
Cash generated from operating activities
Cash flows from investing activities
Purchase of fixed assets
Sale of machinery
Cash used in investing activities
Cash flows from financing activities
Issue of equity shares
Issue of preference shares
Redemption of Debentures
Dividend paid
Interest paid on Debentures
Cash generated from financing activities
Net increase in Cash and Cash Equivalents
Add opening balance of Cash and Cash Equivalents
Closing balance of Cash and Cash Equivalents
15,000
20,000
2,70,000
35,000
(70,000)
(70,000)
3,05,000(1,40,000)
(2,60,000)
40,000
1,65,000
1,00,000
40,000
(30,000)
(30,000)
(15,000)
(2,20,000)
65,00010,000
40,000
60,000
Working Notes:
1 mark
1 marks
2 marks
½ mark
Dr. Fixed assets A/c Cr.
Particulars Amt(Rs.) Particulars Amt(Rs.)
Balance b/dBank -purchase
3,00,0002,60,000
Bank-saleLoss on sale
Balance c/d
40,00020,000
5,00,000
5,60,000 5,60,000
Note 1: Full credit to be given to an examinee if he/she has taken preference dividend
separately. The answers would be:
Net Profit before tax = Rs.2,73,200
Cash generated from operating activities = Rs.1,68,200
Cash used in investing activities = Rs.(2,20,000)
Cash generated from financing activities = Rs.61,800
Note 2: In case, interest on debentures and dividend on preference shares has been calculated on
the closing balances, no marks should be deducted.
½ mark
=
(1+ 1+ 1+ 2
+ ½ + ½
=
6 marks)
Part –C
Computerised Accounting(Delhi 67/1/1-2-3)
24 24 24 List Any …………………………….Computerised Accounting System.Ans: The basic requirements of a Computerised accounting System are: a) Operating Environment; b)
Front end interface; c) back end interface; d) Data processing & e) Reporting system
2 marks
25 - - Explain…………………….. (Data Definition language) Ans:The commands which are used to create and maintain a database is called Data Definition language
(DDL). They represent the CREATE, ALTER & DROP
2 marks
26 26 26 Differentiate between Database & File? Database is a collection of information available to many users. Files are used for storing, accessing &
manipulating data
2 marks
27 27 27 Compare the …………………………… Manual Accounting system.
Difference Manual Computerised
Recording Books of original entry Database
Classification By posting in Ledger Report form (any desired format)
Summarising Thro trial balance & B/Sheet
Reports generated
Errors Error prone More accurate
3 marks
28 - - Q. What are the advantages of DBMS? The advantages of DBMS: (a) Sharing of data; (b) Inconsistency is controlled; (c) Data redundancy is
reduced (d) Secured data is reduced (d) Secured data
4 marks
29 29 29 Q. Write the ………………………………..nearest Rupee.
Asset Opening values Depreciation Written down value
Plant & machinery4,12,000 =Round(B2*0.10,0) =SUM(B2-C2)
Computers 6,15,000 =Round(B3*0.30,0) =SUM(B3-C3)
Furniture & fittings
81,000 =Round(B4*0.15,0) =SUM(B4-C4)
Motor vehicles 3,08,000 =Round(B5*0.25,0) =SUM(B5-C5)
(4+3) 7 mark
Additional Questions of 67/1/2
24
24 - List Any …………………………….Computerised Accounting System
-
25 - Q. Explain the concept of D C L. (Data Control language) Ans :The commands which are used to control the data stored in a database is called Data control
language (DCL). They represent the GRANT, REVOKE etc
2 marks
26
26 26 Differentiate between Database & File?
27
27 27 Compare the …………………………… Manual Accounting system.
28 Q. Differentiate between Physical & Logical Data Independence? Ans hysical data independence means that the Physical structure of the data may be changed without
changing the logical structure, and Logical data independence means change at the logical level without
changing the Application programme
4 marks
29
29 29 Q. Write the ………………………………..nearest Rupee.
Additional Questions of 67/1/3
24 - 24
List Any …………………………….Computerised Accounting System
- - 25 Explain the concept of D M L. (Data Manipulation language) Ans :The commands which are used to manipulate the data in a database are called Data manipulation
language (DML). They represent the SELECT, DELETE & UPDATE
2 marks
26 - 26
Differentiate between Database & File?
27 - 27
Compare the …………………………… Manual Accounting system.
- -
28
Q. 21 What are the disadvantages of DBMS? Ans ;Lack of Flexibility, Cost, no back up in systems, Expensive hardware & soft ware, centralised
control & security breach
29 - 29 Q. Write the ………………………………..nearest Rupee.
