CBSE Sample paper class XII Accountancy 2008 3


Sample Paper - 2008
Class – XII
Subject – Accountancy

PART A

PARTNERSHIP AND COMPANY ACCOUNTS

1. Mention one point causing difference between cash book and Receipts and Payment A/c. (1)

2. List any two items appearing on the credit side of a partner's current account. (1)

3. Kanchan and Karuna are partners. Their capitals are Rs. 50000 and Rs. 80000 respectively. If Praffula enters as a partner with capital Rs. 30000; calculate new ratio for sharing profit & losses of the firm. (1)

4. Shani, Ravi and Som are partners of a firm. Their capitals on 1-1-90 were Rs. 40000, Rs. 30000 and Rs. 80000 respectively. After profit of 1990 was distributed, it was found that they omitted to charge interest on capital at 8% p.a. Give journal entry for rectifying the mistake. (1)

5. Which term is required to be used in place of debenture premium as per the Companies (Amendment) Act, 1999? (1)

6. These were 400 members of Jamnagar Gymkhana each paying RS. 100 as annual subscription. During the year 1995, total amount received was Rs. 35,500. Subscription received in advance during 1994 was Rs. 2500 and outstanding subscription for 1994 was Rs. 1200.

Show the details of subscription in the Income and Expenditure A/c for the year 1995. (3)

7. On Jan 1st 1998; Arnold Ltd. issued 8% debentures of Rs.500,000 at a discount of 15%. The debentures are to be paid off in 5 equal annual installments starting from the end of 1st year. Show discount on debenture account for the period. (3)

8. On 1st January 2006, Adinath Ltd. purchased a Machine for Rs.108000 from Divya Manufacturing, for which they issued equity shares at a discount of 10% to the vendor. Pass necessary journal entries. (3)

9. On April 1st, 1998 an existing firm had assets of Rs. 75,000/- including cash of Rs. 5,000/-. The partner's capital account showed a balance of Rs. 60,000/- and reserve constituted the rest. If the normal rate of return is 20% and the goodwill of the firm is valued at Rs. 24,000/- at 4 year purchase of super profits, find the average profits of the firm. (4)

10. A, B and C are partners sharing profits in the ratio of 5 : 4 : 1. C is given a guarantee that his share of profits in any given year would be Rs. 5000/-. Deficiency, if any, would be borne by A and B equally. The profits for the year 1998 amounted to Rs. 40000/-. Pass necessary entries in the books of the firm. (4)

11. Rosita Ltd. purchased assets from Rowan and Co. for Rs. 350000. A sum of Rs. 75000 was paid by means of a bank-draft and for the balance due Rosita Ltd. issued Equity shares of Rs. 10 each at a premium of 10%. Journalize the above transactions in the books of the company. (4)

12. Janata Rayons Ltd. issued 1000 debentures of Rs. 100 each at a discount of 10 %. The amount was payable as follows:

Rs. 25 on application

Rs. 35 on allotment, and

Rs. 30 on first and final call

In all applications for 1200 debentures were received. Applications for 600 debentures were accepted in full. One applicant who had applied for 500 debentures was allotted 400 debentures and the rest of the applications were rejected. All the amount due were received in time. Give journal entries in the books of the company.

(6)

13. The following is the Receipts and Payments Account of Super Time Club for the year ended 31st December, 1992: (6)

Receipts and Payments Account

Receipts

Rs.

Payments

Rs.

To cash in hand

10,000

By Bank overdraft

( 1.1.1992)

14,000

“ Subscriptions:

1991 1,200

1992 64,800

1993 600

66,600

“ Investments

13,600

“ Entrance Fees

2,680

“ Furniture

5,960

“ Proceeds from drama

8,160

“ Salaries

20,400

“ Interest from securities

2,000

“ Printing and Stationery

3,560

Sale proceeds from old

furniture( cost Rs.320)

400

“ Postage and telegrams

4,400

“ Cost of drama

7,000

“ Sundry expenses

5,600

“ Balance:

Cash in hand

3,320

Cash at bank

12,000

89,840

89,840

You are required to compile the Income and Expenditure Account for the year ended 31st December, 1992 and the Balance Sheet as on that date taking into account the following information:

(1) On 1st January, 1992, the club premises stood at Rs. 1,00,000; investments at Rs. 24,000 ; and furniture at RS. 12,000.

(2) The club had 720 members each paying and annual subscription of Rs. 100.

(3) Salaries for December, 1992 amounting to Rs. 1,600 are outstanding.

(4) Half of the entrance fees are to be capitalized.

(5) Stock of stationary on 31st December, 1991 was Rs. 360 and on 31st December, 1992 was Rs.400.

14. The financial position of A, B and C sharing profits and losses in the ratio 2:2:1, as on 31st December 2002 is shown below.

Balance Sheet

(as on 31st December, 2001)

Liabilities

Amount

Assets

Amount

Capital A

25,000

Machinery

22,600

Capital B

25,000

Buildings

24,500

Capital C

15,000

Premises

14,500

Provident fund

8,250

Tools

6,200

Mrs. A's Loan

11,000

Office Equipment

10,400

Creditors

4,250

Cash at Bank

7,800

Petty Cash

2,500

88,500

88,500

A died on 31st March, 2002. The following arrangements have been made for settlement of his account with the legal representatives.

Machinery revalued at 10% less and buildings appreciated by 20%. Office equipment have been sold to B for Rs.9,500. The firm earned a profit of Rs.21,000 during the year 2001. A's share of current year's profit is calculated on the assumption that the same profit will be earned uniformly during the year 2002 as well. There was a Joint Life Policy for Rs.40,000, with 25% surrender value. Insurance company paid Rs.45,000 in settlement with bonus. Rs.9,000 from Mr.A’s capital account is transferred to Mrs. A's loan amount to raise it to Rs.20,000. The balance amount in the capital account is settled immediately.

Pass necessary journal entries, prepare ledger accounts and the revised balance sheet of the firm. (6)

15. X Ltd. invited application for 100000 shares of Rs. 10 each at a discount of 6% payable as follows:

On applications Rs. 2.50

On allotment Rs. 2.40

On first and Final Call Rs. 4.50

The applications received were for 90000 shares and all of these were accepted. All money due was received except the first at call on 1000 shares were forfeited. Of these 500 shares were reissued at Rs. 9 as fully paid.

Pass necessary entries in the Cash Book and in the journal of the company. Also show how these transactions would appear in the balance sheet of the company. (8)

OR

15. A company issued for public subscription 150000 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 1st call Rs. 2 per share and on 2nd Call Rs. 3 per share.

Applications were received for 225000 shares. Shares were allotted to the applicants for 180000 shares, the remaining applications being rejected. Money over paid on application was utilized towards sum due on allotment.

A, to whom 6000 shares were allotted failed to pay the allotment money and two calls. B on allottee of 7500 shares did not pay two calls. All these shares were forfeited after the final call, 10000 shares including all shares of A were reissued as fully paid shares for Rs. 7.50 per share excluding premium.

Give journal entries to record the above transactions in the books of the company. (8)

16. Pravin, Pankaj and Paresh are partners sharing profits & losses in the ratio of 3:2:1. On 31-3-05 their Balance sheet was as follows: (8)

Liabilities

Rs.

Assets

Rs.

Capital accounts

Machinery

17200

Pravin

20000

Furniture

8000

Pankaj

15000

Stock

10000

Paresh

10000

Debtors 11000

Creditors

8000

Less: BDR 500

10500

Profit & Loss a/c

1200

Cash

8500

54200

54200

They agree to admit Pradip into partnership as from 1-4-05 on the following terms:

(1) Pradip is to be given 1/6th share, which he acquires 1/8th from Pravin and 1/24th from Paresh.

(2) Pradip is to bring Rs. 12000 by way of his capital and Rs. 8000 by way of his goodwill which is to be retained in the business.

(3) Machinery is to be valued at Rs. 19400 and stock is to be depreciated by 10%.

(4) Create a reserve for doubtful debts at 5% on debtors and reserve for discount on creditors at 2 ½ %.

(5) Taking Pradip’s capital as base, all other Partners’ capital accounts are to be kept in their new profit sharing ratio. The necessary adjustments are to be made in cash for that purpose.

Journalise the above transactions and prepare Balance sheet of the new firm.

OR

16. Amit, Tiku and Trupti are partners sharing profits and losses in ratio of 3:2:1. The balance sheet of their firm as on 31-3-2005 is as under: (8)

Liabilities

Rs.

Assets

Rs.

Capital:

Debtors 20000

Less: BDR 1000

19000

Amit

50000

Bills receivables

8000

Tiku

30000

Stock

20000

Trupti

20000

Plant & machinery

30000

Creditors

10000

Motor car

15000

Bills payable

6200

Cash

25000

Outstanding expenses

800

117000

117000

Trupti retires on that date on following terms:

(1) Outstanding expenses in the Balance sheet indicates unpaid rent at a rate of Rs. 400 per month. But, it was discovered during the investigation of accounts that in fact three months’ rent was unpaid. Moreover, it was also revealed that no adjustment was made for prepaid insurance of Rs. 500.

(2) The goodwill of the firm was fixed at Rs. 24000 and Trupti’s share of the same be adjusted into the accounts of Amit and Tiku who are going to share in future in the ratio of 2:3.

(3) Stock to be depreciated by 10% while plant & machinery to be appreciated by 10%.

(4) A provision of 3% to be made for discount reserve on debtors and creditors.

(5) Motor car to be valued at Rs. 13000.

(6) The entire capital of the firm newly constituted be fixed at Rs. 60000 between Amit and Tiku in their new profit sharing ratio (necessary cash to be paid off or to be brought in by the partners as the case may be).

(7) Amount due to Trupti on retirement is to be retained in the firm as her loan.

You are to prepare P&L adjustment a/c, capital accounts of partners and Balance sheet of the new firm

PART B

ANALYSIS OF FINANCIAL STATEMENTS

17. State any one reason for declining in Gross Profit ratio. (1)

18. State the reasons whether the following would result in an inflow, outflow or no flow of funds. (1)

(a) Repaid loan on mortgage.

(b) Debentures converted as preference shares;

19. What are the two major cash inflow from financing activities. (1)

20. Briefly explain the techniques of analyzing these statements. (3)

21. Prepare a comparative income statement with the help of the following information: (4)

Particulars 2004 2005

Sales Rs. 1000000 Rs. 1500000

G.P. 40% 30%

Direct expenses 50% of GP 40% of GP

Income tax 50% 50%

22. The following information is provided to you :

Share Capital

Rs. 80,000/-

General Reserve

Rs. 40,000/-

15% loan

Rs. 5,00,000/-

Sales for the year

Rs. 1,00,000/-

Tax paid during the year

Rs. 20,000/-

Profit after interest & Tax

Rs. 40,000/-

From the above information, calculate any four of the following ratios :
(a) Debt Equity Ratio
(b) Capital Turnover Ratio
(c) Interest coverage ratio
(d) Return on Investment
(e) Debt to total funds ratio (4)

23. From the following Balance Sheet prepare Cash flow statement:

Balance Sheet

Liabilities

1998
Rs.

1997
Rs.

Assets

1998
Rs.

1997
Rs.

Share Capital
Debentures
Current Liabilities
General Reserve
P and L Account

4,50,000
3,50,000
1,50,000
2,10,000
70,000
12,30,000

4,00,000
2,40,000
1,20,000
2,00,000
9,60,000

Fixed Assets
Investments
Current Assets
Discount on shares
P and L Account

7,20,000
1,30,000
3,75,000
5,000

12,30,000

6,10,000
50,000
2,40,000
10,000
50,000
9,60,000

Additional information :
(a) Depreciation charged on Fixed assets was Rs. 60,000/-.
(b) A machine of book value of Rs. 40,000/- was sold for Rs. 25,000/-. (6)

 

iCBSE India