CBSE Sample paper class XII Accountancy 2008 1

Sample Paper – 2008

Class – XII

Subject – Accountancy

MM 80 TIME 3HRS

PART A

1. State any two items that appears in the debit Side of partner’s capital Account when the capital is Fixed. 1

2. How is Donations dealt while preparing the financial statement of a not –for-profit organization? 1

3. What is Reserve Capital? 1

4. Raja and Rama are partners in affirm sharing profit and loss in the ratio of 5:3.Rani is admitted for 1/5 share in the profit which he acquires in the ratio of 3:2. Ascertain the sacrificing ratio of the old partners. 1

5. Why are assets and liabilities revalued at the time of retirement of a partner. 1

6. Milky Ltd purchased Assets of Silky Ltd for RS 320000.A sum of Rs 130000 was paid in cash and Rs 170000 equity shares were issued towards the full settlement of the balance. Pass journal entries in the books of Purchasing Company. 3

7. Show how will you deal with the following items in respect of a Social Club for the year ending on 31^st March 2006 3

Tournament Fund Balance as on 31^st march 2005 Rs72000

Grant towards tournament received during the year Rs 20000

Expenditure incurred during the year on conducting tournament Rs 45000

Tournament fund investment Rs 30000

Interest received on the tournament fund investment Rs 3000

8. Tata Ltd issued 8000 12% debentures of Rs 100 each at 8% discount. The debentures are redeemable by drawing at lot as follows

1^st Year nil; 2nd Year Rs 400000:3^rd year Nil :4^th year Rs 400000.

Calculate the discount to be written. 3

9. A and B carried on business in partnership since 2004 sharing profit and loss in the ratio of 2:1. They admitted C on 1^st April 2007 for 1/6^th share. The actual value of goodwill, however, on that date was Rs 36000.C contributed the following assets towards payment of his capital and goodwill.

Cash Rs 4000

Furniture Rs 10000

Stock Rs 12000

Pass necessary journal entries to give effect to the above. Also, give the new profit sharing

Ratio. 4

10. Dinesh and Suraj are partners sharing profit and loss in the ratio of 3:2 with capital of Rs 400000 and Rs 300000 respectively. Interest on capital agreed at 6%p.a.Suraj is allowed a salary of Rs 3000 per month. During 2006 profit prior to Interest and salary amounts to Rs 232000.Manager is to be allowed a commission of 10% of the profit.

Prepare an account showing the allocation of the profit. 4

11. Rolta Ltd forfeited 500 equity shares of Rs 10 each issued at a premium of 10%{payable on allotment} for non payment of first call of Rs 2 and Final call of Rs 3 per share on 31^st march 2004.300 forfeited shares were reissued as fully paid of Rs 8 per share and balance shares were reissued at Rs 11 per share. Journalise. 4

12. a) A company issued 12% debentures of Rs 100 each for Rs 80000 at a discount of 3% redeemable after 4 Years at a premium of !0%. Pass necessary journal entries for the issue of debentures.

b) At the commencement of 2006 ,a company has outstanding 20000, 13% debentures of Rs

100 each. As per the term of redemption of 5000 debentures are to be redeemed in 2006

either by purchase from open market or drawing at lot. Directors decides to purchase 1500

own debentures at Rs 95 and 2500 debentures at Rs 98 for immediate cancellation.Asuming

that sufficient amount was available in Debenture Redemption Reserve Pass journal entries

for redemption of debentures. (2+4)

13. P,Q and R were partners in a firm sharing profit and loss in the ratio 3:2:1.Their particulars as on 31^st March 2006 was as follows 6

Capital = P- 20000,Q-30000 R- 15000.

Reserve Rs 36000

Goodwill –Rs 30000

Drawing P-Rs 6000;Q-Rs 4000 and R Rs 3000

On 1^st July 2006 Q died . As per the terms of deed Executors of deceased partners entitled

for the following

a) Interest on capital @10% till the date of death.

b) His share of goodwill.

c) Share of profit till the date as per the profit average profit of last 3 years.

Profit for last 3 years was as 2004- Rs 20000, 2005 –Rs 32000 and 2006 Rs 38000.

Q’s Executors were paid RS 8000 immediately and remaining amount was transferred to his executors loan Account.

14. From the following information, Receipt and Payment Account of Jain Society prepare Income and Expenditure Account for the year ending 31^st march 2004 and Balance Sheet as on that date. 6

Receipt	Amount	Payment	Amount
To balance b/d To Subscription To sale of Investment To Sale of old furniture (Book value Rs 400) To Donation	12600 16000 3600 300 2500	By Salaries By Rent By Stationery By Defense Bond By Furniture purchased By balance c/d	4100 1200 500 6000 800 14400
	35000		35000

Additional information

a) Subscription of Rs 2400 is outstanding and Advance for 2005 Rs 1200 as on 31^st

march 2004.

b) Donation received during the year is for construction of Temple

c) Furniture and investment as on 1^st April 2003 was Rs 2000 and Rs 14000 respectively.

15. . Geeta Ltd issued 10,000 shares of Rs 50 each payable Rs 10 on application ,Rs 15 on allotment Rs 25 on first call and final call. In all 16,000 application were received, out of these application for ,4000 shares were rejected and allotment was made to the rest on pro rata basis. Every share holder paid the money as and when due , except Sohan who was allotted 4000 shares and who did not paid allotment money. His shares were forfeited after allotment .Final call was made after the forfeiture Forfeited shares were reissued for Rs.35 per share as Rs.40 paid up .Give Journal Entries and prepare cash bo

OR

K limited has been registered with an authorized capital of Rs. 2,00,000 divided into 2,000 shares of Rs. 100 each of which 1,000 shares were offered for public subscription at a premium of Rs.5 share, payable as under

On application 10

On allotment 25 (including premium)

On first, call 40

On final, call balance

Applications were received for 1,800 shares, of which applications for 300 shares

were rejected outright, the rest of applications were allotted 1,000 shares on pro-rata

basis. Excess Application money was transferred to allotment,

All the monies were duly received except from Sundar, holder of 100 shares, who

failed to pay allotment and first call money. His shares were later forfeited and reissued

to Shyam at Rs.60 per share, Rs 70 paid up. Final call has not been made. Pass

necessary Cash Book and Journal entries in the books of K limited.

16. A and B are partners sharing Profit and loss in the ratio of 5:3. On March 31^st 2004 their Balance Sheet was as follows:

Liabilities	Amounts.	Assets	Amount
Capital A 36000 B 44000 Creditors Bills Payable General Reserve	80000 64000 22000 14000	Cash Bills Receivable Stock Debtors Machinery Investment	18000 14000 44000 42000 42000 20000
	180000		180000

They decided to admit C into the partnership on the following terms

i. Machinery is to be depreciated by 10%

ii. Stock is revalued at Rs 60000

iii. Investments are taken over by B at Rs 18000

iv. Outstanding rent is Rs 1000

v. C is to bring Rs 6000 as Goodwill and sufficient capital for a 2/5^th share in the total capital of the firm.

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

OR

Following is the balance Sheet X , Y, and Z as on 31^st March 2004 Who were sharing profit and loss in the ratio of their Capitals. 8

Liabilities	Rs	Assets	Rs
Creditors Bills Payable Provision for doubtful debt General Reserve Capital Account X Y Z	40,000 12000 6000 24000 80,000 80,000 40,000	Cash Debtors Stock Furniture Machinery	36000 50000 36000 60,000 100,000
	282000		282000

Y retires on the above date on the following terms:

i. Provision for doubtful debts raised to Rs 8000

1. Outstanding claim for damages of Rs 2200 is to be provided.
2. Creditors be reduced by Rs 12000
3. Goodwill of the firm is valued at Rs 40000.

After the retirement of Y the entire capital of the firm was fixed at Rs 180000 and partners decided to maintain it in their new profit sharing ratio of 3:2.

Prepare Revaluation A/c, Capital A/c and balance sheet of X and Y.

PART B (ANALYSIS OF FINANCIAL STATEMENT)

17. State with reason whether the operating ratio of a company will increase ,decrease or not change due to sale of payment of wages. 1

18. How do we treat payment of interest and dividend while preparing cash flow statement.1

19. State the purpose of preparing cash flow Statement 1

20. Discuss the advantages of Analysis of financial Statement . 3

21. Prepare a Comparative Income Statement from the following 3

Gross Sales Sales Return Cost of goods sold Operating Expanses Income Tax	2000	2001
	120200 20200 40% of net sales 15000 50%	135800 5800 50% of net sale 14000 50%

22. a) Current Ratio of a company is 4:3, working capital is Rs 80000.Calculate the amount of current assets and current liabilities.

b) Calculate Proprietary Ratio from the following (2+2)

Closing Stock 9% Preference Shares Security Premium General Reserve Other Current Assets Current Liabilities Fixed Assets Operating Expenses

60000 400000 30000 10000 110000 180000 350000 25000

23. From the following balance sheet of S ltd, prepare the Cash flow statement 6

Liabilities	2004	2003	Assets	2004	2003
Capital Profit &loss A/c Creditors Loan	200000 20000 50000 40000	160000 30000 40000 30000	Land & Building Plant &Machinery Stock Debtors Cash	150000 80000 20000 50000 10000	100000 60000 30000 60000 10000
	310000	260000		310000	260000

Additional Information

Depreciation provided during the year on plant amounted to Rs 10000.A machinery costing Rs 8000 (accumulated depreciation Rs 1200)sold for Rs 7000.

Dividend paid during the year was Rs 12000

Depreciation on building amounted to Rs 15000.