Accountancy

                                               Class XII

                                        

PART A

Q:1 XYZ Ltd issued shares of Rs 10 each as under:

On Application Rs 5 

      Allotment Rs 5 (including Rs 3 premium)

      First Call Rs 3.

An applicant who had applied for 1,500 shares was allotted only 1,000 shares and his shares were forfeited after allotment for non payment of allotment money.

What  is the amount by which share forfeited account will be credited in the entry of forfeiture?     (1)

Q:2 What is the nature of Share Capital account?   (1)

Q:3 A, B and C  were partners sharing profits and losses in the ratio of 5:3:2. Now they want to change their ratio to 2:3:5.

Revaluation profit at the time of change in profit sharing ratio amounted to Rs 18,000.

Give the treatment of revaluation profit when assets and liabilities are to be recorded at old values in the books of accounts.      (1)

Q:4 What journal entry will you pass at the time of Dissolution of Firm when a partner takes away stock for Rs 10,000 for cash.      (1)

Q:5 A Ltd purchased assets worth Rs 5,60,000. Instead of paying cash, it issued debentures of Rs 100 each for Rs 70 Rs 80 paid up. What is the number of debentures issued and the amount of discount given?  (1) 

Q:6 The amount of TDS on 10% debentures is Rs 10,000. The rate at which TDS is deducted is 10%. What is the amount of debentures on which interest is calculated?  (1)

Q:7 A and B were partners sharing profits and losses in the ratio of 3:2. C is admitted as a new partner. They decided that the new profit sharing ratio be so made such that the ratio between A and B should be 5:3 and that between B and C should be 4:1.

Calculate the new profit sharing ratio and the sacrificing ratio.    (3)

Q:8 A, B and C were partners sharing profits and losses in the ratio of 5:3:2. The capitals of the partners as on 1-4-2015 were Rs 60,000 each.

It was found after closing of accounts for the year ended 31-3-2016 that interest on capital @ 10 % per annum was to be treated as a charge against profit but it was by mistake treated as an appropriation of profit.

Net profit during the year was Rs 12,000.

Pass an adjustment entry to rectify the above error. Show working notes clearly.       (3)

Q:9 2,000 Equity shares of Rs 10 each were issued to X Limited from whom assets of Rs 25,000 were acquired.

Pass Journal entries.             (3)

Q:10 BTW is earning a profit of Rs 1,00,000 per annum. The rate of return that is expected to be earned by other tikki vendors is 10% of their capital employed.

i)             Calculate the amount of capital that the other tikki vendors have to employ in order to earn the profit as that of BTW.

ii)            If the capital employed by BTW is Rs 7,00,000. Calculate the Goodwill of BTW.       (3)

Q:11 Following is the extract of the Balance Sheet of a firm which has two partners A and B sharing profits equally.

Liabilities	Rs	Assets	Rs
Capitals		Drawings
A                    10,00,000		A                   20,000
B                       8,00,000	18,00,000	B                    40,000	60,000
P&L Appropriation A/c	1,00,000

On 1-07-2015, A introduced Rs 50,000 as additional capital and B withdrew Rs 1,00,000 from his capital. Profit during the year was Rs 1,50,000. Drawings made by B during the year was Rs 50,000.

Calculate interest on capital @ 10% per annum.    (4)

Q:12 The Directors of super star Ld invited applications for 2,00,000 Equity shares of Rs 10 each to be issued at 20% premium. The money payable on shares is: on application Rs 5, on allotment Rs 4 (including premium of Rs 2), first call Rs 2 and final call Rs 1.

Applications were received for 2,40,000 shares and allotment was made as under :

i)             to applicants for 1,00,000 shares-  in full

ii)            to applicants for 80,000 shares – 60,000 shares.

iii)           To applicants for 60,000 shares- 40,000 shares.

Applicants of 1,000 shares falling in category (i) and applicants of 1,200 shares falling in category (ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in category (iii) failed to pay first and final call and these shares were forfeited after the final call.

1,300 shares (1,000 of category (i) and 300 of category (ii) ) were reissued at Rs 8 per share as fully paid.

Calculate the balances of:

i)             Cash 

ii)            Security Premium Reserve

iii)           Share Capital

iv)           Capital Reserve

after forfeiture and reissue of the shares.    (6)

Q:13 On 31-03-2016, W Ltd had the following balances in the books :

9% Debentures    = Rs 6,00,000

Debenture Redemption reserve = Rs 50,000

On that date, the company decided to redeem Rs 6,00,000 debentures, 40% out of profits and rest out of capital.

Pass necessary journal entries in the books of the company.    (4) 

Q:14 Babul and Vinay were partners. The Partnership Deed provided for:

(i)         Profit to be divided as Babul ½, Vinay 1/3, and 1/6 to be transferred to reserves.

(ii)        The accounts are closed on 31^st March each year.

(iii)       In the event of death of a partner the executors will be entitled to the following:

                        (a)       Capital to the credit on the date of death.

                        (b)       Interest on Capital @ 12% p.a.

                        (c )      Proportion of profit to the date of death based on the average profits

                                    credited for the last three years.

                        (d)       Share of goodwill based on three years purchase of the average profits

                                    of the preceding three years.    

                        (e)       The profits for three preceding years were Rs. 48,000, Rs. 42000 and

                                    Rs. 45,000.

                        (f)        Capital account of Babul and Vinay were Rs. 90,000 and Rs.60,000.

                        (g)       Salary to Vinay Rs. 1,000 per month.

Prepare Vinay Account to be presented to his executors, as he died on 30^th April.

According to Vinay’s will his executor should donate 50% of his share to “ An old age             home.”  Identify the value being highlighted in this case.                                                             6 

 (6)

Q:15 Pass the necessary journal entries at the time of Dissolution of firm assuming that the transfer entries from the Balance Sheet to the Realisation A/c have already been passed.

i)             X, a partner had provided a loan to the firm of Rs 10,000 which is now settled at Rs 8,000.

ii)            Investment given in the Balance Sheet was Rs 1,00,000.

At the time of dissolution, the value of investment is estimated at Rs 92,000.

iii)           Creditors (Rs 10,000) took over office equipment of Rs 8,000 in full settlement.

iv)           Debtors were worth Rs 10,000. At the time of dissolution bad debts amounted to Rs 4,000. Discount allowed to remaining debtors 10%.

v)            Y a partner agrees to pay the bank loan Rs 80,000. The bank agrees to waive off 25% of the loan amount.

vi)           Loan from Z (partner) was Rs 50,000and balance in his capital account (debit) was Rs 60,000.         (6)

Q:16 A and B are partners in a firm. Their Balance Sheet as at 31^st March, 2016 was :

Liabilities	Rs	Assets	Rs
Provision for doubtful debts	4,000	Cash	10,000
Workmen Compensation Reserve	5,600	Sundry Debtors	80,000
Outstanding Expenses	3,000	Stock	20,000
Creditors	30,000	Machinery	38,600
Capital A/c A	50,000	Profit & Loss A/c	4,000
B	60,000
	1,52,600		1,52,600

On 1^st April, 2016, they admitted C as a new partner on the following conditions:

i)             C brings in Rs 40,000 as his share of capital but he is unable to bring any amount for his share of goodwill.

ii)            The new ratio between A, B and C will be 3:2:1.

iii)           Claim on account of workmen compensation is Rs 7,000.

iv)           To write off bad debt amounting to Rs 6,000.

v)            Creditors are to be paid Rs 2,000 more.

vi)           A contingent liability of Rs 4,000 not included in the Balance Sheet is now determined at Rs 2,000.

vii)          Rs 1,800 out of outstanding expenses of Rs 3,000 was actually not outstanding but were paid by A.

viii)        Goodwill is valued at 1-1/2 years purchase of the average profit of last three years, less Rs 12,000. The profits of last three years amounted to Rs 10,000; Rs 20,000 and Rs 30,000 respectively.

Pass necessary journal entries, prepare Capital Accounts and the Balance Sheet.          (8)

                                    OR

A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their Balance Sheet as at 31^st March, 2016 was :

Liabilities	Rs	Assets	Rs
		Bank	10,000
		Sundry Debtors	30,000
Bill Payable	10,000	Stock	20,000
Creditors	30,000	Machinery	40,000
Capital A/c A                           60,000		Land & Building	50,000
B                            60,000		Furniture	30,000
C                            40,000	1,60,000	Bill Receivable	20,000
	2,00,000		2,00,000

D is admitted as a new partner on 1^st April, 2016 for 1/4^th share and is to pay Rs 50,000 as capital which he pays by means of Debtors Rs 16,000; Stock Rs 14,000; and remaining amount through his goodwill. Following are the adjustments required on D’s admission.

i) Rs 1,200 paid for installation of machinery stands debited to Profit & Loss A/c as installation expense.

ii) Expenses debited in P & L A/c includes a sum of Rs 2,000 paid for B’s personal expenses.

iii) A bill of exchange for Rs 4,000 which was previously endorsed to the creditor, was dishonoured with noting charges of Rs 200 on 31-03-2016 but no entry has been passed for that.

v) A provision for doubtful debts @5% is to be created against debtors.

vi) Expenses of Revaluation paid amounted to Rs 2,100.

Prepare necessary Ledger Accounts and Balance Sheet after D’s admission.                                         (8)

Q:17 Y Ltd was registered with a capital of Rs 5,00,000 divided into 20,000 shares of Rs 25 each, payable as Rs 2.5 per share on application, Rs 7.5 per share on allotment and the balance in two equal calls of Rs 7.5 per share each. The company offered to the public for subscription 10,000 shares but applications were received for 10,500 chares. A applied for 400 shares, paid Rs 1,000 on application but was allotted only 200 shares. B applied for 800 shares, paid the full amount Rs 20,000 of his share money on application but was allotted only 500 shares and the surplus money was returned to him. C applied for 1,000 shares, paid his application and allotment money in order, paid Rs 2,000 on first call but did not pay for the second call at all.

              As C was the only defaulter, all the shares of C were forfeited and subsequently half of the forfeited shares were reissued at Rs 18, Rs 20 paid up.

Journalise the above transactions.      (8)  

                                           OR

: XYZ Ltd was registered with a capital of Rs 10,00,000 divided into 40,000 shares of Rs 25 each, payable as Rs 2.5 per share on application, Rs 7.5 per share on allotment and the balance in two equal calls of Rs 7.5 per share each. The company offered to the public for subscription 20,000 shares but applications were received for 21,000 shares. A applied for 800 shares, paid Rs 2,000 on application but was allotted only 400 shares. B applied for 1,600 shares, paid the full amount Rs 40,000 of his share money on application but was allotted only 1,000 shares and the surplus money was returned to him. C applied for 2,000 shares, paid his application and allotment money in order, paid Rs 4,000 on first call but did not pay for the second call at all.

             C was the only defaulter, half of the shares of C were forfeited and subsequently the forfeited shares were reissued at Rs 18, Rs 20 paid up.

Journalise the above transactions and prepare the Balance Sheet.       (8) 

Part  B

Q:18 From the following information calculate the total amount of dividend paid by the company during the year ended 31-03-2016.

Particulars                                           31-03-2015              31-03-2016

Equity Share Capital                            1,00,000                  1,50,000

10 % Preference Share Capital            2,00,000                  1,00,000

Equity dividend was paid @ 8% for the year ended 31-03-2016.

Equity shares were issued on 31-03-2016 whereas preference shares were redeemed on 31-03-2015.       (1)

Q:19 Which type of activity is Interest paid on debentures under cash flow statement?    (1)

Q:20 Find out the missing values from the following extract of the comparative Balance Sheet.

Particulars                           2015             2016           Change    Percentage

Machinery                          ______       _______         (5,000)        (10%)  (1)

Q:21 State under which head and subhead will the following be shown in the Balance Sheet as on 31-03-2016 as per Schedule 3 of the companies Act, 2013:

i)             Interest accrued but not due on debentures.

ii)            Goodwill.

iii)           1,000 forfeited shares of Rs 10 each are reissued for Rs 6, Rs 8 paid up.

iv)           Premium payable on redemption of Preference shares.                                                                             (4)

Q: 22 a)

Firm A:

Cost of Revenue from operations = 6,00,000, it is 80% of Revenue from operations.

2015                2016

Debtors                                           1,00,000     80,000

Provision for doubtful

Debts                                                  10,000       8,000

Firm B

Debtors as on 31-03-2016 = 1,20 000

Debtors as on 31-03-2015 =    80,000

Cash received from debtors = 80,000

Sales return                             = 14,000

i)             Calculate Debtor’s turnover ratio of firm A and B.

ii)            Which out of the two firms is better in terms of Debtor’s turnover ratio and why?                                                      (4)

b) Calculate Debt Equity Ratio from the following information:

Debentures = 22,00,000

Share Capital= 10,00,000

Reserves        = 1,00,000

Bonus shares worth Rs 50,000were issued to the existing shareholders.                                                                                        (2)

Q23	From the following information prepare cash flow statement                                       BALANCE SHEETS as at 31.03.15 and 31.03.16
	Particulars	Note	31.03.15	31.03.16
	EQUITY AND LIABILITIES		Rs.	Rs.
	(1)  Share holder’s fund
	(a)  Share Capital	1	1,00,000	80,000
	(b)  Reserves and Surplus	2	16,800	12,000
	(2)  Non –Current Liabilities(15% Debentures)		34,000	22,000
	(3)  Current liabilities
	Trade Payables		33,600	49,000
	Short Term Provisions (Dividends)		11,600	10,000
	Total		1,96,000	1,73,000
	ASSETS
	(1)  Non Current Assets
	Tangible fixed assets		49,000	55,000
	Patents		1,000	5,000
	Non-current investment		20,000	10,000
	(2)  Current Assets
	Current investment		5,000	2,000
	Inventories		69,000	50,600
	Trade receivables		50,000	50,000
	Cash &Cash Equivalents		2,000	400
	Total		1,96,000	1,73,000
	Notes to Accounts:		31.03.14	31.03.15
	1.    Share Capital
	Equity Share Capital		80,000	55,000
	12%  Preference Shares		20,000	25,000
	2.    Reserves and Surplus
	General Reserve		3,000	4,000
	Profit and Loss A/c		11,800	8,000
	Securities Premium Reserve		2,000	Nil
	Additional information :  During the year a machine costing Rs.20,000 (depreciation provided thereon Rs.6,000) was sold for Rs.10,000. Depreciation charged during the year was Rs.10,000.  An interim dividend paid   Rs.9,000. Tax paid Rs.9,400.                                            (6)