Commerce

Sunday, 13 May 2018

Accountancy Assignment

Class 11

Chapter: 1,2 and 4

Q:1 Which stakeholder group would be most interested in :

i) VAT and other tax liabilities of the firm.

ii) Potential for pay awards and bonus details.

iii) The ethical and environmental activities of the firm.

iv) Whether the firm has a long term future.

v) Profitability and share performance.

vi) The ability of the firm to carry on providing a service or producing a product.

Q:2 Which qualitative feature of accounting is reflected in the following cases:

i) Unnecessary and irrelevant information is not included in financial statements.

ii) Facilitates intra firm and inter firm comparisons.

iii) Information is clearly presented.

iv) Free from errors and bias.

Q:3 Book keeping has a wider scope as compared to Accounting. Defend or refute.

Q:4 Which qualitative characteristic of accounting information is reflected when accounting information is clearly represented?

Q;5 Accounting information should be verifiable and free from personal bias. Name the qualitative characteristic of accounting information denoted by this statement.

Q:6 Classify the following as Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure:

i) Preliminary expenses

ii) Purchase of furniture

iii) Payment of salary

iv) Underwriting commission

v) Installation of machinery

vi) Purchase of goods and services

Q: 7 Classify the following as Current and Non Current Assets

i) Bank balance

ii) Trademarks

iii) Goodwill

iv) Bill Receivable

v) Land and Building

vi) Debtors

Q:8 During the Accounting period 2014-15, the total sales of a firm were Rs 7,00,000, out of which cash sales were Rs 4,50,000. The total expenses for the year were Rs 5,00,000, out of which Rs 2,10,000 are still outstanding. Determine income of the firm for 2014-15 as per :

i) Cash basis of accounting

ii) Accrual basis of accounting

Q:9 Mr Sunrise started a business for buying and selling stationery with Rs 5,00,000 as an initial investment. Of which, he paid Rs 1,00,000 for furniture, Rs 2,00,000 for buying stationery. He employed a sales person and clerk. At the end of the month paid Rs 5,000 as their salaries. Out of the stationery bought, he sold some stationery for Rs 1,50,000 for cash and some other stationery for Rs 1,00,000 on credit basis to Mr Ravi . Subsequently, he bought stationery item of Rs 1,50,000 from Mr Peace. In the first week of the next month there was a fire accident and he lost Rs 30,000 worth of stationery. A part of the furniture, which cost Rs 40,000 was sold for Rs 45,000.

From the above, answer the following:

i) What is the amount of capital with which the business is started?

ii) What are the fixed assets?

iii) What is the value of goods purchased?

iv) Who is the creditor and state the amount payable to him.

v) What are the expenses?

vi) What is the gain he earned?

vii) What is the loss he incurred?

viii) Who is the debtor and what is the amount receivable from him?

ix) What is the total amount of expenses and losses incurred?

x) Determine if the following are assets , liabilities, revenues, expenses or none of these: sales, debtors, creditors, salary to manager, discount to debtor, drawings by the owner.

countancy Class XII
Chapter Admission of a Partner

Q:1 Why should a new partner contribute for goodwill?

Q:2 A, B and C are in partnership sharing profits and losses in the ratio of 5:4:1 resp. Two new partners D and E are admitted. Profits are now to be shared in the ratio of 3:4:2:2:1 resp. D is to pay Rs 30,000 for his share of goodwill but E has insufficient cash to pay for goodwill. Both the new partners introduced Rs 40,000 each as their capital. Pass necessary journal entries.

Q:3 A & B are partners in a firm. They admit C as a partner with 1/4^th share in the profits of the firm. C brings Rs 2,00,000 as his share of capital. Value of Assets is Rs 5,40,000 and outside liabilities are valued at Rs 1,00,000 on that date. Give journal entries.

Q:4 Balance Sheet of X, and Y who share profits and losses in the ratio of 3:2 as at 31-3-2015 was:

Liabilities	Rs	Assets	Rs
Creditors Reserve P& L A/c X’s Capital Y’s Capital	1,00,000 60,000 25,000 48,000 32,000	Bank Debtors Stock Furniture Plant & Machinery Advertisement Expenditure	10,000 50,000 70,000 20,000 1,00,000 15,000

2,65,000 2,65,000

They admit Z as a partner from 1^st April, 2015 with 1/5^th share in the profits of the firm. Z brings in Rs 50,000 as his capital. Give Journal entry for adjustment of goodwill.

Q:5 A, B and C were partners in a firm sharing profits and losses in the ratio of 3:1:1. On 1^st April, 2015, their Balance Sheet stood as:

Liabilities	Rs	Assets	Rs
Creditors General Reserve P& L A/c A’s Capital B’s Capital C’s Capital Invt Fluctuation Reserve Workmen Compensation Reserve Employees Provident Fund	1,00,000 25,000 35,000 1,00,000 30,000 20,000 20,000 23,000 30,000	Current Assets Machinery Investment( market value Rs 28,000) Furniture Land & Building Advertisement Expenditure	1,18,000 50,000 30,000 10,000 1,50,000 25,000

3,83,000 3,83,000

========= =========

They admitted D into partnership for 1/5^th share of profits on the above date. A claim on account of workmen compensation is estimated at Rs 13,000 only.

Q:6 A is admitted as a partner in ABC & Co, a partnership firm of B & C. The firm has reserves of Rs 75,000 and accumulated profits of Rs 1,00,000. At the time of admission, accountant distributed the reserves and accumulated profits to B and C in their profit sharing ratio. B was of the opinion that they should not be distributed because

i) There is no legal requirement

ii) Even if they are not distributed then also they will remain in the business and can be distributed whenever required at the time of retirement/death of the partner.

Do you agree? Give reasons.

Q:7 Murari and Vohra were partners in a firm with capitals of Rs 1,20,000 and Rs 1,60,000 resp. On 1^st April,2015 they admitted Yadav as a partner for 1/4^th share of goodwill.

On that date the creditors of the firm were Rs 60,000 and Bank overdraft was Rs 15,000. Their assets apart from cash included stock Rs 10,000; debtors Rs 40,000; Plant Rs 80,000; Land & Building Rs 2,00,000. It was agreed that stock should be depreciated by Rs 2,000; Plant by 20%, Rs 5,000 should be written as bad debt and land & building be appreciated by 25%.

Prepare Revaluation A/c, Capital A/cs and the Balance Sheet of the new firm.

Q: 8 Balance Sheet had Investment Fluctuation reserve of Rs 20,000. New partner is admitted. Value of investments is Rs 60,000 against its book value of Rs 80,000. What amount of Investment Fluctuation Reserve will be distributed among partners.

Q:9 A and B are partners in a firm. Their Balance Sheet as at 31^st March, 2015 was:

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

1,52,600 1,52,600

====== ==========

On 1^st April, 2015, 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 goodwill.

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

iii) Claim on account of workmen compensation is Rs 3,000.

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

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

vi) Rs 2,000 be provided for an unforeseen liability.

vii) Outstanding expenses be brought down to Rs 1,200.

viii) Goodwill is valued at 1-1/2years purchase of average profits of last three years, less Rs 12,000. The profits of last three years were Rs 10,000; 20,000; 30,000 resp.

Prepare Revaluation A/c, Capital A/c and the new Balance Sheet.

Q:10 X and Y are partners in a firm sharing profits in the ratio of 3:2. The remaining capitals of X and Y after adjustments are Rs 80,000 and 60,000 resp. They admit Z as a partner on his contribution of Rs 35,000 as capital for 1/5^th share to be acquired equally from both X and Y. The Capitals of the old partners are to be adjusted on the basis of the proportion of Z’s capital to his share in the business. Calculate the amount of actual cash to be paid off or brought in bt the old partners for the purpose.

Q:11 A and B are partners in a firm sharing profits in the ratio of 3:1 . they admitted K as a new partner for 3/8^th share . The new ratio will be 3:2:3. K brought rs 2,00,000 for his capital and Rs 50,000 for his share of goodwill. Their Balance Sheet as at 31^st March, 2015 was:

Liabilities	Rs	Assets	Rs
Creditors Outstanding expenses A’s Capital B’s Capital	60,000 20,000 4,00,000 1,00,000	Cash Machinery Debtors Stock Furniture	90,000 2,10,000 80,000 1,50,000 50,000

5,80,000 5,80,000

On 1^st April, 2015, they admitted C as a new partner on the following conditions:

i) Stock to be valued at Rs 2,00,000.

ii) Machinery will be depreciated by 12% and furniture by Rs 2,000.

iii) A provision of 5% for bad and doubtful debts will be made on debtors.

iv) The Capitals Accounts of all the partners were adjusted in the New ratio after admission. For surplus or deficiency, the Current Accounts were to be opened.

Prepare Revaluation Account, partner’s Capital A/c and the Balance Sheets.

Q:12 Why is there a need to revalue assets and liabilities at the time of admission of a partner?

Q:13 The Capitals of A and B were Rs 1,00,000 and Rs 2,00,000. A new partner, C is admitted for 1/5^th share. At that time Reserves existed in the books at Rs 40,000 and Revaluation profit was Rs 30,000. C brought Rs 10,000 for his share of goodwill premium. C has to bring in proportionate capital. Calculate C’s Capital.

Q:14 The Capitals of A and B were Rs 1,00,000 and Rs 2,00,000. A new partner, C is admitted for 1/5^th share. At that time Reserves existed in the books at Rs 40,000 and Revaluation profit was Rs 30,000. C is unable to bring his share of goodwill premium of Rs 10,000.

Calculate the total amount C will bring to become a partner and pass necessary entries.

Q:15 The Capitals of A and B were Rs 4,00,000 and Rs 2,00,000. A new partner, C is admitted for 1/5^th share. At that time Reserves existed in the books at Rs 40,000 and Revaluation loss was Rs 30,000. C brought Rs 1,80,000 for capital but is unable to bring his share of goodwill premium of Rs 10,000.

Pass necessary journal entries at the C’s admission if capitals of the partners is to be adjusted on the basis of C’s proportionate capital contribution.

Q:16 Capitals of A, B and C as on 31-3-2015 were 36,000;44,000 and 52,000 resp. Goodwill appeared in the Balance Sheet at Rs 20,000 and P&L A/c credit balance was Rs 14,000. Revaluation loss amounted to Rs 11,100. D brings in Rs 36,000 towards 1/6^th share and partners to readjust their capital accounts on the basis of their profit sharing ratio. D is not in a position to bring in any amount for his share of goodwill. The adjustment of excess or deficit capital is to be made through Current accounts.

Pass the entry/entries regarding adjustment of capitals.

Accountancy Class 12

Chapter: 1 and 2

Fundamentals of Partnership and Goodwill

Q1 Vinod, Shubh and Gaurav were partners sharing profits in the ratio of 1:1:1. Their fixed capitals were Rs.2,00,000 each. Manager of the firm will be paid 10% commission after charging such commission. Vinod has advanced Rs.1,00,000 to the firm as loan on 1 July, 2012. Partnership deed is silent on interest on loan to the partner. A guaranteed amount of Rs.30,000 will be paid to Gaurav whether there is profit or loss incurred by the firm. Profit on 31st December, 2012 was Rs.25,000. Show the distribution of profit or loss to the partners

Q2 Vinod and Kumar are partners sharing profits and losses in the ratio of 3:2. Their capitals were Rs.1,00,000 and Rs.50,000 respectively. Rate of Interest on capital is 10% p.a. Show the distribution of profit when: Case 1: Partnership deed is silent as to interest on capital and profit for the year is Rs.30,000. Case 2: Partnership deed provides for interest on capital but there is loss Rs.20,000. Case 3: Partnership deed provides for interest on capital and profit for the year is Rs.20,000. Case 4: Partnership deed provides for interest on capital and profit for the year is Rs.9,000. Case 5: Interest on capital is a charge and profit for the year is Rs.9,000. Case 6: Interest on capital is a charge and loss for the year is Rs.5,000

Q3 A, B, C and D are partners sharing profits and losses in the ratio of 4:3:3:2. Their fixed capitals on 31.3.2010 were Rs.30,000; Rs.45,000; 60,000 and 45,000 respectively. After preparing the final accounts for the year ended 31.3.2011. it was discovered that interest on capital @12% p.a. was not allowed and interest on drawings amounting to Rs.1,000; 1,250; 750 and 500 respectively was not charged. Give necessary adjustment entry.

Q4. PK, MK and NK shared profits in the ratio of 3:2:1. The profits of the last three years were Rs.2,80,000, Rs.1,68,000 and Rs.2,12,000 respectively. These profits were by mistake, shared equally for all the three years. It is now decided to correct the error. Give entry

A partnership firm earned net profits during the last three years as follows: Years Profit

2007-08 38,000

2008-09 44,000

2009-10 50,000

The Capital Employed in the firm throughout the above mentioned period has been Rs.80,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital. The remuneration of all the partners during this period is estimated to be Rs.20,000 per annum. Calculate the value of goodwill on the basis of (i) Two years purchase of super profits earned on average basis during the above mentioned three years and (ii) Capitalization method.

Q.5 A, B and C were partners in a firm having capitals of Rs. 60,000, Rs. 60,000 and Rs. 80,000 respectively. Their current account balances were A- Rs. 10,000, B- Rs. 5000 and C- Rs. 2000 (Dr.). According to the partnership deed the partners were entitled to an interest on capital @ 5% p.a. C being the working partner was also entitled to a salary of Rs. 6,000 p. a. The profits were to be divided as follows:

(i) The first Rs. 20,000 in proportion to their capitals.

(ii) Next Rs. 30,000 in the ratio of 5:3:2.

(iii) Remaining profits to be shared equally.

During the year the firm made a profit of Rs. 1,56,000 before charging any of the above items.

Prepare the profit and loss appropriate on A/C.

Q.6 A and B are partners sharing profits in proportion of 3:2 with capitals of Rs. 40,000 and Rs. 30,000 respectively. Interest on capital is agreed at 5 % p.a. B is to be allowed an annual salary of Rs. 3000 which has not been withdrawn. During 2001 the profits for the year prior to calculation of interest on capital but after charging B’s salary amounted to Rs. 12,000. A provision of 5% of this amount is to be made in respect of commission to the manager.

Prepare profit and loss appropriation account showing the allocation of profits.

Business Studies Class XII

Test ch-11 (Marketing management)

M.M. : 36 Time 1 hour 10 min

1. 'Glow and Shine Ltd.' is a famous beauty brand offering organic beauty products for men and women. The company uses plant-based materials for its products and is the No. 1 beauty brand in the country. It not only satisfies its customers but also believes in overall protection of the planet. Identify the marketing management philosophy being followed by 'Glow and Shine Ltd.' (1)

2. From customer’s pint of view, product is bundle of utilities. “In light of this statement, explain three types of utilities or benefits offered by product.(3)

3. Simone, a budding entrepreneur wishes to operate a business of Flowers. Since they are perishable in nature, she plans to open a flower shop so that she can directly sell them to the customers. Being a small ventures, the number of consumers is also less. So she decides that the direct channel of distribution is better. Her friend, Ankit is a manufacturers of Gift. Items. He is confused regarding the level of channel he should follow. Can you guide him regarding the problem? Give points for support of yours answer. (3)

4. Nisha, a school bag manufacturer decided to improve the product for profit maximisation and thus added a water bottle holder to the existing design.

Identify the marketing management philosophy adopted by Nisha, and

Explain the philosophy on the basis of Main Focus and Means and Ends (3)

5. In 2002 Cadbury, the confectionary giant came up with an advertisement to promote its brand Temptations. The newspaper ad featured map of India showing Jammu and Kashmir shaded over. Written in bold across the shaded area was the message 'too good to share'. Discuss the objection to advertising highlighted through this case. Critically analyse any three other objections to advertising. State the value ignored by Cadbury while issuing such an advertisement.(4)

6. As a project work in Business Studies subject, the Commerce students of “Knowledge School’ though of setting up a recycling plant to recycle all the waste papers from the school and prepare registers and exercise books to be used by the school students. They approached their principal who not only appreciated the idea of the students but also give her consent for the same. The school also decided to donate 50% of the revenue generated from the sale of registers and exercise books to a nearby blind school.

(a) State the product related decisions which the children have to take.

(b) Suggest any two factors the children should keep in mind while choosing the right name for their exercise books and registers.

7. Vasvi was a student of Commerce in class XII. Her father was a farmer, who grew different varieties of wheat and was well versed about various aspects of wheat cultivation. He was also selected by the government for a pilot-project on wheat cultivation. As a project she decided to study the feasibility of marketing good quality wheat at reasonable price. Her father suggested to her to use internet to gather customers' views and opinions. She found that there was a huge demand for organic-packed wheat. She knew that there were no pre-determined specifications in case of wheat, because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of 'Mahan-organic-wheat' and classified it into three different varieties namely Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation. Explain the three functions of marketing, with reference to the above paragraph. (5)

8. One of the element of marketing mix is related to revenues of business .Name it and explain factors affecting that element.(6)

9. Various tools of communication are used by the marketers to promote their products”. Answer the following questions:

a) Why do companies use all tools at the same time?

b) Name and explain the most commonly used non-personal tool of promotion which is paid for by the marketer.

c) Which tool of promotion will primarily be used for the following:

(i) To get good corporate image without being paid for.

(ii) An existing product meant for mass usage by literate people.

(iii) To introduce new product to a particular class of people through door to door visits.(6)