Sample Paper – 2008
Class- XII
Subject - Accountancy
| TEST PAPER |
1. List any four factors that help in the creation of goodwill of a partnership firm. (2)
2. Give the meaning of ‘Authorised Capital’. (2)
3. What is meant by ‘Preferential Allotment of Shares’ (2)
4. Give any two points of distinction between a share and a debenture. (2)
5. Janata Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 100 each at a
discount of 5%. The amount was payable as follows :
On Application Rs. 30
On Allotment Rs. 40
Balance on First and Final Call
Applications for 1,30,000 shares were received. Applications for 10,000 shares were
rejected and pro-rata allotment was made to the remaining applicants. Overpayments
received on applications were adjusted towards sums due on allotment. Vinod, to whom
500 shares were allotted, failed to pay allotment and first and final call. His shares
were forfeited. The forfeited shares were re-issued for Rs. 55,000 fully paid up.
Pass necessary journal entries in the books of Janata Ltd., showing the workings (6)
clearly.
6. A, B and C were partners in a firm sharing profits in proportion of their capitals. On 31.3.2006
their Balance Sheet was as follows :
Balance Sheet of A, B and C as on 31.3.2006
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors Reserve Capitals: A 40,000 B 60,000 C 1,00,000 | 16,000 12,000 2,00,000 | Building Machinery Stock Debtors Cash | 1,40,000 60,000 8,000 12,000 8,000 |
2,28,000 2,28,000
B died on 30.6.2006. Under the partnership agreement the executors of a deceased
partner were entitled to :
(i) Amount standing to the credit of partner’s capital account.
(ii) Interest on capital at 12% per annum.
(iii) Share of goodwill. The goodwill of the firm on B’s death was valued at Rs. 2,40,000.
(iv) Share of profit from the closing of last financial year to the date of death on the
basis of last year’s profit. Profit for the year ended 31.3.2006 was Rs. 15,000.
Prepare B’s Capital Account to be rendered to his executors (8)
7. X and Y were partners in a firm sharing profits in 3 : 1 ratio. They admitted Z as a new
partner for 1/4 share in the profits. Z was to bring Rs. 20,000 as his capital and the
capitals of X and Y were to be adjusted on the basis of Z’s capital in the profit sharing
ratio. The Balance Sheet of X and Y on 31.3.2006 was as follows :
Balance Sheet of X and Y on 31.3.2006
| Liabilities | Amount | Assets | Amount |
| Creditors Bills Payable General Reserve Capitals: X 25,000 Y 10,000 | 18,000 10,000 12,000 35,000 | Cash Debtors Stock Machinery Building | 5,000 17,000 12,000 21,000 20,000 |
| | 75,000 | | 75,000 |
Other terms of agreement on Z’s admission were as follows :
(i) Z will bring Rs. 6,000 for his share of goodwill.
(ii) Building will be valued at Rs. 25,000 and machinery at Rs. 19,000.
(iii) A provision at 5% on debtors will be created for bad debts.
(iv) Capital Accounts of X and Y were adjusted by opening Current Accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of X, Y
and Z.
Vijay, Vivek and Vinay were partners in a firm sharing profits in 2 : 2 : 1 ratio. On
31.3.2006 Vivek retired from the firm. Qn the date of Vivek’s retirement the Balance
Sheet of the firm was as follows :
Balance Sheet of Vijay, Vivek and Vinay as on 31.3.2006
| Liabilities | Amount | Assets | Amount |
| Creditors Bills Payable Outstanding Rent Provision for legal claims Capitals: Vijay 92,000 Vivek 60,000 Vinay 40,000 | 54,000 24,000 4,400 12,000 1,92,000 | Bank Debtors 12,000 Less: prov. For doubtful debts 800 Stock Furniture Premises | 55,200 11,200 18,000 8,000 1,94,000 |
| | 2,86,400 | | 2,86,400 |
On Vivek’s retirement it was agreed that :
(i) Premises will be appreciated by 5% and furniture will be appreciated by Rs. 2,000.
Stock will be depreciated by 10%.
(ii) Provision for bad debts was to be made at 5% on debtors and provision for legal
damages to be made for Rs. 14,400.
(iii) Goodwill of the firm was valued at Rs. 48,000.
(iv) Rs. 50,000 from Vivek’s Capital Account will be transferred to his loan account and
the balance will be paid by cheque.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of Vijay
and Vinay after Vivek’s retirement. ( 8)
PART B
(Analysis of Financial Statements)
8 Give the meaning of ‘Cash Flow Statement’.
9. A Ltd., engaged in the business of retailing of two wheelers, invested Rs. 50,00,000 in the shares of a manufacturing company. State with reason whether the dividend received on this investment will be cash flow from operating activities or investing activities.
10 The Profit and Loss Accounts of Himani & Co. for the years ended
2006 are as follows :
Himani & Co.
Profit and Loss Accounts for the years ended
| Particulars | 2005 Rs | 2006 Rs. |
| Net sales Cost of goods sold Gross Profit Operating Expenses Net Profit Income Tax 50% of Net Profit | 4,22,300 3,71,000 51,300 22,700 28,600 14,300 | 4,02,000 3,69,000 33,000 19,900 13,100 6,550 |
Compute percentage changes from 2005 to 2006.
11. Explain briefly any three limitations of analysis of financial statements. (3)
12. The following are the summarised Profit and Loss Account and the Balance Sheet of
Ashoka Ltd. as on 31.3.2006 :
| Liabilities | Amount | Assets | Amount |
| Opening Stock Purchases Direct Expenses Gross profit Total Salary Loss on sale of Machinery Net Profit | 20,000 1,25,000 15,000 70,000 2,30,000 16,000 4,000 50,000 70,000 | Sales Closing Stock Gross Profit | 2,20,000 10,000 2,30,000 70,000 70,000 |
Ashoka Ltd.
Balance Sheet as on 31.3.2006
| Liabilities | Amount | Assets | Amount |
| Equity Share Capital Profit & Loss A/c Creditors Outstanding Expenses | 1,50,000 50,000 75,000 25,000 | Land Stock Debtors Cash | 2,00,000 10,000 50,000 40,000 |
| | 3,00,000 | | 3,00,000 |
Calculate any two of the following ratios on the basis of the information given in the
above mentioned financial statements : 4
(i) Gross Profit Ratio
(ii) Stock Turnover Ratio
(iii) Proprietary Ratio (8)
13.Seema Ltd. had a profit of Rs. 20,00,000 for the year ended 31.3.2006 after considering
the following :
Depreciation on building Rs. 55,000
Depreciation on plant and machinery Rs. 37,000
Goodwill written off Rs. 14,000
Loss on sale of plant and machinery Rs. 8,000
Following was the position of the Current Assets and Current Liabilities of the
company as on
| Particulars | 31.3.2005 | 31.3.2006 |
| Stock Debtors Cash Creditors Outstanding Expenses Bills Payable | 65,000 40,000 47,000 94,000 5,000 49,000 | 69,000 25,000 74,000 103,000 3,000 58,000 |
Calculate Cash Flow from Operating Activities.
OR
With the help of Profit and Loss Account for the year ended 31.3.2006 and Balance
Sheets as on 31.3.2005 and 31.3.2006 of Poonam Ltd., calculate ‘Cash Flows from
Operating Activities’. 6
Profit and Loss Account of Poonam Ltd. for the year ended 31.3.2006
| Liabilities | Amount | Assets | Amount |
| Depreciation Salary Rent Commission Other Expenses Net Profit Total Proposed Diviends Retained Profit | 12,000 40,000 70,000 30,000 78,000 2,20,000 4,50,000 50,000 1,70,000 | Gross Profit Total Net Profit | 4,50,000 4,50,000 2,20,000 |
| Total | 2,20,000 | Total | 2,20,000 |
Balance Sheets of Poonam Ltd. as on 31.3.2005 and 31.3.2006
| Liabilites | 2005 | 2006 | Assets | 2005 | 2006 |
| Share Capital Reserves Loans Proposed Div. Creditors Bills Payable | 1,02,000 2,00,000 1,80,000 20,000 80,000 70,000 | 1,39,000 3,70,000 1,05,000 70,000 65,000 95,000 | Plant Patents Stock Debtors Cash | 4,00,000 - 1,17,000 95,000 40,000 | 4,70,000 75,000 1,57,000 87,000 55,000 |
| Total | 6,52,000 | 8,44,000 | Total | 6,52,000 | 8,44,000 |
