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MODEL TEST PAPERSUBJECT ; ACCOUNTANCY (CLASS XII)SET – IROLL NO _________TIME ALLOWED – 3 HRS.MAX MARKS : 80Day & Date of Examination :Name and Signature of Candidate :Name and Signature of Invigilator :General Instructions :Please check that this question paper contains printed ___ pagesPlease write down the serial number of the question before attempting it.15 minutes time has been allotted to read this question paper. The question paper will be distributed at 08:45 a.m. From 08:45 a.m. to 09:00 a.m. the students will read the question paper only and will not write any answer script during this period.Please check that this question paper contains 25 questions.All questions are compulsory.Marks are indicated against each question.Avoid overwriting and cutting.Give calculations or working notes wherever required.PART – A(ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES)What is meant by partnership and state any two essential elements of partnership.(1)State the two main rights that a newly admitted partner acquires in the firm.(1)When is the “Partner’s Executor’s A/c” is prepared ?(1)State any two factors which influence the valuation of goodwill of a partnership firm.(1)What are Preliminary Expenses ?(1)State any two purposes for which securities premium can be utilized.(1)Which companies are exempted from creating Debenture Redemption Reserve (DRR) by SEBI ?(1)A, B and C are partners in a firm having fixed capital of Rs. 80,000, Rs. 40,000 and Rs. 50,000 respectively sharing profits as 7 : 6 : 4. The rate of interest on capital was agreed at 10% p.a. but was wrongly credited to them @ 12% p.a. Give the necessary adjustment entry to adjust the balance of partners capital a/c.(3)Give the journal entries in each of the following cases at the time of issue of debentures.A debenture issued at Rs. 110, repayable at Rs. 100A debenture issued at Rs. 100, repayable at Rs. 105A debenture issued at Rs. 105, repayable at Rs. 105(3)Mohit Ltd. Has 10,000 , 12% debentures of Rs. 100 each due for redemption on 31st March 2011. Assuming that debentures are to be redeemed out of profit fully and DRR has a balance of Rs. 3,60,000 on that date, record necessary journal entries at the time of redemption of debentures.(3)A, B and C were partners sharing profits in the ration of 5 : 3 : 2. Their Balance Sheet as on 1st April 2012 was as follows :Balance Sheet of A, B and C as on 1st April 2012LiabilitiesAmount (Rs.)AssetsAmount (Rs.)CreditorsEmployees Provident fundCapital :A Rs. 1,00,000B Rs. 70,000C Rs. 50,00020,00026,0002,20,000CashDebtorsStockFurnitureBuilding16,00016,00080,00034,0001,20,0002,66,0002,66,000C retires on the above date and it was agreed that :C’s share of goodwill was Rs. 8,0005% provision for doubtful debts was to be made on debtorsCreditors were valued Rs. 4,000 more than book value.Pass the necessary journal entries for the above transactions on C’s retirement.(4)On 1st April 2012, an existing firm had assets of Rs. 75,000 including cash of Rs. 5,000 the partners capital a/cs showed a balance of Rs. 60,000 and the reserve constituted the rest . If the normal rate of return is 10% and goodwill of the firm is to be valued at Rs. 24,000 @ 4 years purchase of super profit, find the average profits of the firm.(4)X Ltd. Purchased machinery for Rs. 5,00,000 from Y Ltd. Rs. 1,25,000 was paid by issuing a crossed cheque, and Rs. 1,25,000 by accepting a bill of exchange drawn by Y Ltd. Payable after 3 months. The balance was paid by issue of equity shares of Rs. 10 each at a premium of 25 %. Pass the necessary journal entries.(4)(a) Distinguish between reserve capital and capital reserve. (Any two)(b) What is meant by Private placement and Under-subscription of shares ?(4) P, Q and R are partners with capitals of Rs. 40,000 , Rs. 30,000 and Rs. 20,000 respectively. The partnership deed provided the following :R to get salary Rs. 2,000 p.a.Q to get commission Rs. 1,500P’s loan Rs. 20,000 @ 6% p.a.Drawings of partners were : P : Rs. 5,000 ; Q : Rs. 4,000 and R : Rs. 3,000Profit sharing ration 2 : 1 : 1The profits for the year ended 31st December 2008 without taking the above facts amounted to Rs. 12,700.Prepare Profit & Loss Appropriation A/c and Partners’ capital a/c.(6)A, B and C are partners in a trading firm, the firm has a fixed total capital of Rs. 60,000 held equally by all partners. Under the partnership deed, the partners were entitled to :A and B to a salary of Rs. 1,800 and Rs. 1,600 per month respectively.In the event of death of a partner, goodwill was to be valued at 2 years’ purchase of the averae profit of the last 3 years.Profit upto the date of death based on the profits of previous year.Partners were to be charged interest on drawings @ 5% p.a. and allowed interest on capital @ 6% p.a.B died on 1st Jan 2011, his drawings to the dte of death were Rs. 2,000 and the interest thereon was Rs. 60, the profits for the three years ended 31st March 2008, 2009 and 2010 were Rs. 21,200 ; Rs. 3,200 (Dr.) and Rs. 9,000 respectively. Prepare B’s Capital A/c to calculate the amount to be paid to his executors.(6)Aamir and Anuj, belonging to two different religions and states of a country were close friends, formed a partnership. Their profit sharing ratio is 3 : 2Their balance sheet as at 31st March 2013 was under :LiabilitiesAmount (Rs.)AssetsAmount (Rs.)CreditorsEmployees Provident fundGeneral ReserveWorkmen Compensation ReserveCapital A/c :Aamir : 15,000Anuj : 10,00010,0008,00030,00015,00025,000Debtors 22,000Less: Provision 1,000Land & BuildingPlant & MachineryStockBankAdvertisement Expenss21,00018,00012,00011,00021,0005,00088,00088,000They admit Zeenat, a different abled girl as a third partner for 1/6th share in the profit on the following terms :Value of land and building be increased by Rs. 3,000Stock is undervalued by Rs. 2,500Provision for doubtful debts by increased by Rs. 1,500The liability of workmen compensation reserve was determined to be Rs. 20,000Zeenat brought her share of goodwill Rs. 10,000 in cash. Goodwill amount withdrawn by partners.Zeenat was to bring in further cash of Rs. 15,000 as her capitalPrepare revaluation a/c, partners’ capital a/c and Balance sheet of new firm.Identify any two values which according to you motivated them to form a partnership firm.ORFollowing is the Balance Sheet of X and Y, who share profits and losses in the ratio of 4 : 1, as at 31st March 2009 LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Sundry CreditorsBank OverdraftX’s Brother’s LoanY’s LoanInvestment Fluctuation FundCapital A/c :Aamir : 50,000Anuj : 40,0008,0006,0008,0003,0005,00090,000BankDebtors 17,000Less: Provision 2,000StockInvestmentBuildingGoodwillProfit & Loss20,00015,00015,00025,00025,00010,00010,0001,20,0001,20,000The firm was dissolved on the above date and the following arrangements were decided upon :X agreed to pay off his brother’s loanDebtors of Rs. 5,000 proved badOther assets realized – investment 20% less, and goodwill at 60%.One of the creditors for Rs. 5,000 were paid only Rs. 3,000.Building was auctioned for Rs. 30,000 and the auctioner’s commission amounted to Rs. 1,000 Y took over part of stock at Rs. 4,000 (being 20% less than book value), balance stock realized 50%.Realisation expenses amounted Rs. 2,000A motor bike (which was brought out of the firm’s money) was not shown in the books of the firm. It is now sold for Rs. 10,000.During the course of dissolution it was noticed by partners that the firm had taken goods worth R. 12,500 on credit from Mr. Mohit in the year 2007 but both the parties (i.e., the firm and Mr. Mohit) have forgotten the same to record in their respective books. Instead of charging interest amount due from the firm, Mr. Mohit himself agreed to accept Rs. 10,000 in full settlement of claim.Prepare realization a/c, partners’ capital a/c and Bank a/cIdentify the values which according to you motivated the firm to settle liability.Identify the values which according to you motivated Mr. Mohit to accept Rs. 10,000 instead of Rs. 12,500Dinesh Ltd. Invite applications for issuing 10,000 equity shares of Rs. 10 each. The amount was payable as follows :On application -Re. 1On allotment-Rs. 2On first call-Rs. 3On second & final call-BalanceThe issue was fully subscribed. Ram to who 100 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment. Shyam, to whom 150 shares were allotted, failed to pay the first call, his shares were also forfeited after the first call. Afterwards, the second & final call was made. Mohan to whom 50 shares were allotted failed to pay second & final call. His shares were also forfeited. All the forfeited shares were re-issued at Rs. 9/- per share fully paid up. Pass the necessary journal entries in the books of Dinesh Ltd.ORPoonam Ltd. Forfeited 400, 8% preference shares of R. 100 each, issued at discount of 10% for the non payment of first call of Rs. 20 per share has not yet been made. The forfeited shares were re-issued at Rs. 44,000 fully paid. Pass the necessary journal entries for the forfeiture and issue of shares.X Ltd. Forfeited 150 shares of Rs. 20 each issued at premium of Rs. 5 per share for the non payment of second and final call of Rs. 7 per share. 100 of these shares were re-issued @ Rs. 21 per share fully paid. Journalise the above transactions regarding the forfeiture and re-issue.M Ltd. Forfeited 2000 shares of Rs. 10 each (fully called up) for the non-payment of allotment money of Rs. 6 per share including Rs. 2 as premium. Of these, 1,500 shares were re-issued to A @ Rs. 9 per share fully paid. Journalise the above transactions in the books of M Ltd.PART –B(ANALYSIS OF FINANCIAL STATEMENTS)Give two areas of interest for investors while analyzing the financial statements.(1)State any two objectives of preparing ‘Cash Flow Statement’(1)Give one transaction which may result into outflow of cash and one which may result into no flow of cash.(1)Give the major headings and sub-headings under which the following items will be shown in a company’s Balance Sheet as per revised Schedule VI, Part I of the Companies Act 1956 :Trade payableLoose toolsGross Fixed AssetsProvision for tax8% DebenturesStatement of Profit & LossFrom the following statement of Profit & Loss of Goldstar Ltd. For the year ended 31st March 2013 and 2014, prepare comparative Statement of Profit and Loss :(4)Particulars31st March 2014 (Rs.)31st March 2013 (Rs.)Revenue from operationsPurchase of Stock in TradeChange in inventories of stock in tradeEmployees benefit expensesOther incomes20,00,0008,00,00025,0003,00,0002,00,00016,00,0006,40,00015,0002,00,0003,00,000(a) Current ratio of ABC Ltd. Is 5 : 1 and liquid ratio is 3 : 1, inventories are Rs. 2,00,000. Find current liabilities.Cost of revenue from operations Rs. 2,40,000, inventories Turnover ratio 8 times. Find out the value of opening inventories if, opening inventories is Rs. 10,000 less than the closing inventories.The Balance Sheet of Kewal Ltd. as at 31st March 2006 and 31st March 2007 were :Particulars31st March 2007 (Rs.)31st March 2006 (Rs.)I.EQUITY AND LIABILITIES 1. Shareholders’ funds (a) Share Capital (b) Reserves & Surplus : Balance Statement of Profit & Loss 2. Currrent Liabilities : Short term liabilities : Proposed dividend10,00,0002,50,00050,0007,00,0001,50,00040,000TOTAL13,00,0008,90,000II.ASSETS 1.Non Current Assets Fixed Assets (Tangible) Plant & Machinery 2.Current Assets (a) Inventories (Stock) (b) Cash8,00,0001,00,0004,00,0005,00,00075,0003,15,00013,00,0008,90,000Additional Information :Rs. 50,000 deprciation has been charged to plant and machinery during the year 2007A piece of machinery costing Rs. 12,000 (Book value Rs. 5,000) was sold at 60% profit on book value.Prepare Cash Flow Statement.(6)MODEL TEST PAPERSUBJECT ; ACCOUNTANCY (CLASS XII)SET – IIROLL NO _________TIME ALLOWED – 3 HRS.MAX MARKS : 80Day & Date of Examination :Name and Signature of Candidate :Name and Signature of Invigilator :General Instructions :Please check that this question paper contains printed ___ pagesPlease write down the serial number of the question before attempting it.15 minutes time has been allotted to read this question paper. The question paper will be distributed at 08:45 a.m. From 08:45 a.m. to 09:00 a.m. the students will read the question paper only and will not write any answer script during this period.Please check that this question paper contains 25 questions.All questions are compulsory.Marks are indicated against each question.Avoid overwriting and cutting.Give calculations or working notes wherever required.PART – A(ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES)What is a Partnership Deed ? State any two contents of a Partnership Deed.(1)What is meant by goodwill and its nature ?(1)Give any two circumstances in which gaining ratio may apply?(1)State any two occasions on which a partnership firm may be constituted.(1)What is meant by ‘Minimum Subscription’?(1)What is meant by forfeiture of shares ?.(1)What do you mean by debenture issued as collateral security?(1)A,B anc C are partners in a firm. On 1.4.2005, their capitals stood at Rs. 50,000, Rs. 25,000 and Rs. 25,000 respectively. As per the provisions of the partnership deed :C was entitled for a salary of Rs. 5000 p.a.Partners were entitled to interest on capital @ 5% p.a.Profits were to be shared in the ratio of partners’ Capitals.The net profit for the year ended 2005-06 of Rs. 33,000 was distributed equally without providing above terms.Pass the adjustment entry in journal in rectify the above error.(3)X Ld. Secured a loan of Rs. 8,00,000 from the Bank of Baroda by issuing 10,000 9% debenture of Rs. 100 each as a collateral security. How will you show the issue of such debenture in the Balance Sheet ?(3)Thandak refrigerators Ltd. had an outstanding balance of Rs. 5,00,000 , 6% Debentures of Rs. 100 each redeemable at a premium of 10%. According to the terms of redemption, the company redeemed 10% of these debentures by converting them into 8% preference shares of Rs. 100 each issued at a premium of 10%. Calculate the number of shares to be issued on conversion and record the journal entries for the redemption.(3)Pass the necessary journal entries for the following transactions on dissolution of the firm of A & B after the various assets (other than cash) and outside liabilities have been transferred to realization a/c : C’s share of goodwill was Rs. 8,000Stock of Rs. 7,400 was taken over by A for Rs. 7,000B agreed to pay his wife’s loan Rs. 70,000A liability not appearing in the books settled at Rs. 3,700Loss on dissolution of Rs. 4,500 was divided between A & B in their profit sharing ratio 4 : 5(4)Arti and Bharti are partners in a firm sharing profits in the ratio of 3 : 2. They admitted Sarthi as a new parner and the new profit sharing ratio will be 2 : 1 : 1. Sarthi brought in Rs. 10,000 for her share of goodwill. Goodwill already appeared in the books of Arti & Bharti at Rs. 5,000. Goodwill amount withdrawn by partners. Pass the necessary journal entries.(4) 24 x 7 Marketing Ltd was authorized capital of Rs. 10,00,000 divided into 1,00,000 equity shares of Rs. 10 each. It has existing subscribed capital of 20,000 equity shares of Rs. 10 each and it further issued 50,000 equity shares to public for subscription on 1st Feb 2013 payable Rs. 5 along with the application Rs. 3 on allotment and balance on first & final call. All the shares were applied for and issued by the company. The company received allotment money on all the shares except on 2000 equity shares. Out of these 2000 equity shares first & final call on 1000 shares on which both allotment and calls were not paid were forfeited after giving due notice to the defaulting shareholders. Show shareholders in Balance Sheet of the Company at 31st March 2014.(4)Exe Ltd purchased assets of the book value of Rs. 4,00,000 and took over the liabilities of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000 be paid by issuing shares of Rs. 100 each.What journal entries will be made in the following cases : At a discount of 10% ; andAt a premium of 10%. It was agreed any fraction of shares be paid in cash(4) P & Q are partners sharing profit in the ratio 3 : 2 with a capital of Rs. 50,000 and Rs. 30,000 respetively. As per partnership deed, partners agreed that :Q be allowed salary of Rs. 5,000 p.a.Interest on capital is agreed @ 6% p.a.During 2007, profit of the year prior to calculation of interest on capital but after charging salary amounted Rs. 15,000. A provision of 5% of profit be made for manager’s commission. Prepare Profit & Loss Appropriation a/c and Partners’ Capital A/c.(6)On 31st Dec 2003, the Balance Sheet of P, Q and R who were partners in a firm was as under :LiabilitiesAmount (Rs.)AssetsAmount (Rs.)S. CreditorsReserve fundCapital A/c :P : 15,000Q : 10,000R : 10,00025,00020,00035,000Buildings InvestmentsDebtorsBill ReceivableStockCash26,00015,00015,0006,00012,0006,00080,00080,000The partnership deed provides that the profit should be shared in the ratio of 2 : 1 : 1 and in the event of death of a partners, his executors will be entitled to be paid out :The capital to his credit at the date of Balance SheetHis proportion of reserve at the date of last Balance Sheet His proportion of profits to the date of death based on average profit of the last three completed years, plus 10%.By way of goodwill, his proportion of total profits for the three preceding years.The new profits for the last three years were : 2001 – Rs. 16,000 ; 2002 – Rs. 16,000 ; 2003 – Rs. 15,400R died on 1st April 2004. He had withdrawn Rs. 5,000 to the date of his death. The investments were sold at par and R’s executors were paid off.Prepare R’s capital a/c and R’s Executor’s a/c.(6)A and B are partners in a firm sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st Dec 2004 stood as :LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital a/c :A : 35,000B : 30,000General ReserveBills PayableBank LoanCreditors65,00010,0005,0009,00036,000MachineryFurnitureInvestmentStockPatentsDebtors 19,000Less Provision 2,000CashProfit and Loss33,00015,00020,00023,0003,00017,00012,0002,0001,25,0001,25,000On that date they admit C into partnership for 1/4th share in the profit on the following terms :C brings capital proportionate to his share. He brings Rs. 7,000 in cash as his share of goodwill.Debtors are all good.An outstanding bill for repair Rs. 1000 will be brought in the books.Half of the investment were to be taken over by A and B in the respective profit sharing ratio at book value.Patents are valueless.Partners agreed to share future profit in the ratio 3 : 3 : 2.Prepare revaluation a/c, partners capital a/c and Balance Sheet after admission of C into firmORJyoti, Ruchi and Yogesh were sharing profits and losses in proportion to their capitals. Their Balance Sheet as at 31st March 2012 was : LiabilitiesAmount (Rs.)AssetsAmount (Rs.)S. CreditorsCapital A/c :Jyoti : 80,000Ruchi : 60,000Yogesh 40,00021,6001,80,000BuildingMachineryStock Debtors 20,000Less Provision 400BankCash1,00,0048,00018,00019,6008,0008,0002,01,0002,01,000Ruchi decided to retire due to old age. They agreed to the following adjustment in the books of account to decide Ruchi’s share :Building to be appreciated by 20%The provision for doubtful debts to be increased by 5% on debtors.Out of total insurance premium paid Rs. 3000 to be treated as prepaid insurance. This amount was earlier debited to the profit & loss a/c.Machinery to be depreciated by 20%.Goodwill of the entire firm to be valued at Rs. 72,000. Ruchi’s share to be adjusted in the accounts of Jyoti and YogeshJyoti and Yogesh also decided that the total capital of the firm after Ruchi’s retirement be Rs. 1,80,000 in their profit sharing ratio i.e., actual cash to be brought in or paid to a partner as the case may be.You are required to prepare the :Revaluation a/cPartners’ Capital a/cBalance Sheet of Jyoti and YogeshPetromax Ltd. issued 50,000 shres of Rs. 10 each at a premium of Rs. 2 per share payable as Rs. 3 on application, Rs. 5 on allotment (including premium and the balance in equal instalments over two calls. Applications were received for 92,000 shares and the allotment was done as under :Applicants of 40,000 shares – allotted 30,000 sharesApplicants of 40,000 shares – allotted 20,000 sharesApplicants of 12,000 shares – allotted nilSuresh, who had applied for 2,000 shares (category A) did not pay any money other than application money.Chander, who was allotted 800 shares (category B) paid the call money due along with allotment.All other allottees paid their dues as per schedule.Pass the necessary journal entriesWhich value has been affected by the rejection of applications of category ‘C’. Suggest an alternative.(8)ORAB Ltd. invited applications for 40,000 equity shares of Rs. 10 each at a discount of 10%. The amount was payable as follows :On application - Rs. 4 per shareOn allotment - Balance after discountApplications were received for 60,000 shares. Applications for 12,000 shares were rejected and pro-rata allotment was made to remaining applicants. Excess money received on application was adjusted towards sums due on allotment. Mohan, to whom 400 shares were allotted failed to pay the allotment money. His shares were forfeited. The forfeited shares were re-issued @ Rs. 8 per share fully paid up,Pass the necessary journal entriesWhich value has been affected by rejection of applications. Suggest an alternative for the same.PART –B(ANALYSIS OF FINANCIAL STATEMENTS)‘Analysis of Financial Statements ignores price level changes’. Comment(1)What will be the result in inflow, outflow or no flow of cash from the following transactions.Cash deposited into bankDepreciation charged on plant and machinery.(1)What is meant by a ‘Cash Flow Statement’ ?(1)List any two items each of the Balance Sheet of a company under the head ‘Reserves & Surplus’ , ‘Current Liabilities’ and ‘Current Assets’.(3) Prepare Comparative Statement of Profit and Loss from the following information(4)Particulars31st March 2014 (Rs.)31st March 2013 (Rs.)Revenue from operations (% of other income)Other incomeCost of material consumed (% of operating revenue)Other expenses ( % of material cost)Tax rate300%Rs. 1,00,00050%10%30%200%Rs. 2,00,00060%20%30%From the following information, calculate any two of the following ratios :(4)Gross Profit ratio(2) Working capital turnover ratio(3) Proprietary ratioInformation :Paid up Capital Rs. 8,00,000Current AssetsRs. 5,00,000Credit salesRs. 3,00,000Cash Sales 75% of credit sales9% DebenturesRs. 3,40,000Current LiabilitiesRs. 2,90,000Cost of goods sold (cost of revenue from operations) Rs. 6,80,000The following Balances appeared in Machinery a/c and accumulated depreciation a/c in the books of Jai Bharti Ltd. :Balances as at →31st March 2003 (Rs.)31st March 2004 (Rs.)Machinery a/cAccumulated Depreciation a/c17,78,9853,40,79526,55,4504,75,690Additional Information :Machinery costing Rs. 2,65,000 on which accumulated depreciation was Rs. 1,00,000 was sold for Rs. 75,000. You are required to :Compute the amount of machinery purchased. Depreciation charged for the year ended and loss on sale of machinery.How shall each of the items related to machinery be shown in ‘Cash Flow Statement ?(6)MODEL TEST PAPERSUBJECT ; ACCOUNTANCY (CLASS XII)SET – IROLL NO _________TIME ALLOWED – 3 HRS.MAX MARKS : 80Day & Date of Examination :Name and Signature of Candidate :Name and Signature of Invigilator :General Instructions :Please check that this question paper contains printed ___ pagesPlease write down the serial number of the question before attempting it.15 minutes time has been allotted to read this question paper. The question paper will be distributed at 08:45 a.m. From 08:45 a.m. to 09:00 a.m. the students will read the question paper only and will not write any answer script during this period.Please check that this question paper contains 25 questions.All questions are compulsory.Marks are indicated against each question.Avoid overwriting and cutting.Give calculations or working notes wherever required.PART – A(ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES)Give two circumstances in which the fixed capitals of partners may change ?(1)A & B share profit & loss in the ratio of 4 : 3. They admit C with 3/7th share which he gets 2/7th from A and 1/7th from B. What is the new profit sharing ratio ?(1)State any two items of deduction that may have to be made from the amount payable to a retiring partner ?(1)Name any two items which are credited to the account of deceased partner while calculating the amount due to his legal representatives excluding opening balance of capital account.(1)Give any two alternatives available to a company for the allotment of shares in case of over subscription.(1)State any two conditions for the issue of shares at discount as per section 79 of the companies Act.(3)What is meant by Secured Debentures ?(3)A, B and C are partners in a firm sharing profit in the ratio of 2 : 2 : 1. C is guaranteed a minimum amount of Rs. 10,000 as his share of profit every year. Deficiency if any, on that account shall be borne by B. The profit for two years ended 31st March 2003 and 31st March 2004 were Rs. 50,000 and Rs. 40,000 respectively. Prepare the profit and loss appropriation account for the two years.(3)SSS Ltd. issued 25,000 , 10% debentures of Rs. 100 each. Give the journal entries in the following case when : (3)The debenture were issued at a premium of 20%.The debenture were issued as a collateral security to bank against a loan of Rs. 20,00,000.The debenture were issued to a supplier of a machinery costing Rs. 28,00,000 as his full and final payment.Exe Ltd. issued 4,000 , 10% debentures of Rs. 100 each which are repayable at par after 5 years. However, company gave an offer to debenture holders to get their debentures converted into equity shares after 2 years.Pass the necessary journal entries at the time of redemption of debentures.Identify two values involved in this decision of the company.(3)A, B and C were partners in a firm sharing profits equally. On 1.4.2012 B died. On that date, goodwill of the firm was valued at Rs. 90,000. There was a balance of Rs, 2,70,000 in General Reserve. As executors of B were not financially strong enough. So A proposes that the executors of B shall be given ? share of general reserve and remaining portion shall be distributed between A and C in new ratio which is equal. C accepted to it.Identify the two values which according to you motivated them to introduce such special clauses in the Partnership deed.Pass necessary journal entries on B’s death.(4)A and B are partners with capitals of Rs. 1,60,000 and Rs. 1,20,000 respectively. They admit C as a partner on 1st Jan 2012 for 1/4th share in profits of the firm. C brings in Rs. 1,60,000 as his share of capital. Give the journal entries of C’s admission regarding goodwill.(4)Akash Ltd. issued 1,00,000 shares of Rs. 10 each payable as follows – Rs. 2 on application payable on 1st March 2006 ; Rs. 3 on allotment payable on 1st May 2006 ; Rs. 2 on first call payable on 1st Aug 2006 and Rs. 3 on second & final call on 1st Dec 2006. All these shares were subscribed for the amount duly received. Akriti, who had 8000 shares paid the amount on both the calls along with allotment. Suniti, who had 4000 shares, paid the amount to second and final call with the first call. Calculate the amount of interest on Calls-in-advance payable to Akriti and Suniti. Pass the necessary journal entries.(4)(a) 20,000 shares of Rs. 10 were issued for public subscription at a premium of 10%. Full amount was payable on application. Applications were received for 30,000 shares and the Board decided to allot the share on pro-rata basis. Pass the necessary journal entries.(b ) Distinguish between shares and debentures (Any two points)(4)(a) In a partnership, partners are charged interest on drawings @ 15% p.a. during the year ended 31st March 2012. A partner drew as follows :(6)1st MayRs. 20001st AugRs. 500030th Sept. Rs. 200031st JanRs. 600031st MarRs. 2000What is the interest chargeable to the partner ?Also pass necessary journal entries.A, B and C started business on 1st April 2011 with capitals of Rs. 1,00,000 ; Rs. 80,000 and Rs. 60,000 respectively sharing profits & losses in the ratio of 4 : 3 : 3. For the year ended 31st March 2012, the firm suffered a loss of Rs. 50,000. Each of the partners withdrew Rs. 10,000 during the year. On 31st March 2012, The firm was dissolved. The creditors of the firm stood at Rs. 24,000 on that date and cash in hand was Rs. 4000. The assets realized Rs. 3,00,000 and creditors were paid Rs. 23,500 in full settlement of their claims. Prepare the realization a/c, partners capital a/c and Cash a/c. Also show your workings.(6)A, B and C are partners sharing profit and losses in the ratio of 2 : 3 : 5. On 31st March 2012, their balance sheet was :(8)LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital a/c :A : 36,000B : 44,000C : 52,000CreditorsB/PProfit & Loss A/c1,32,00064,00032,00014,000CashB/RFurnitureStockDebtorsInvestmentsMachineryGoodwill24,00044,00028,00018,00042,00032,00034,00020,0002,42,0002,42,000They admit D into partnership from 1st April 2012 on the following terms :Stock is undervalued by 10%Furniture, investments, machinery to be depreciated by 15%Prepaid salaries Rs. 800Outstanding rent amounted to Rs. 1800D brings in Rs. 32,000 as his capital and Rs. 6000 for goodwill in cash for 1/6th share in profit.Capital of the partners shall be proportionate to their profit sharing ratio taking D’s capital as base.Adjustment of capital to be made in cash.Prepare revaluation a/c, partners capital a/c and Balance Sheet.ORR, M and L are partners in a firm sharing profits in the ratio of 5 : 3 : 2. Partner R died on 20th Feb 2011. The balance sheet of the firm on that date was as follows :LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital a/c :R : 12,000M : 16,000L : 10,000Loan from RGeneral ReserveCreditors38,0007,00020,00019,000MachineryFurnitureStockDebtorsCashProfit & Loss A/c41,0006,0009,00015,0003,00010,00084,000According to the partnership deed, on the death of a partner, the executor of the deceased partner will be entitled to :Balance in capital A/cHis share in profit & loss on revaluation of assets & liabilities which were as follows :Machinery is revalued at Rs. 45,000 and furniture at Rs. 7,000A provision of 10% was to be created for doubtful debts.There was an unearned income of Rs. 500 and accrued income of Rs. 500.The net amount payable to R was transferred to R’s executor’s loan a/c which was to be paid later. Prepare revaluation a/c, Partner’s capital a/c, R’s Executor’s a/c, Balance Sheet of L and M who decided to continue the business keeping their capital balances in their new profit sharing ratio. Any surplus or deficit was to be transferred to partner’s current a/c.Arti Ltd. invited applications for issuing 80,000 shares of Rs. 10 each at a premium of Rs. 4 per share. The amount was payable as follows :(8)On application Rs. 5 per shareOn allotmentRs. 9 per share (including premium)Applications were received for 1,40,000 shares. Allotment was made on following basis :To applicants of 80,000 shares- 60,000 sharesTo applicants of 60,000 shares- 20,000 sharesMoney overpaid on applications was utilized towards sums due on allotmentRajiv belonging to category (1) who applied for 1,200 shares failed to pay his dues and his shares were forfeited. Pass the necessary journal entries.ORJain Ltd. invited applications for issuing 75,000 equity shares of Rs. 200 each at a discount of 5%. The amount was payable as follows :On application Rs. 80On allotmentRs. 60On First & final callBalanceApplications for 70,000 shares were received. Allotment was made to all the applicants and the company received all the money due on allotment except from Ravi to whom 900 shares were allotment and his shares were immediately forfeited. Vishesh, the holder of 700 shares failed to pay first and final call, his shares were also forfeited. All the forfeited shares of Ravi and 350 shares of Vishesh were reissued for Rs. 195 per share fully paid up. Pass the journal entries.PART – B(ANALYSIS OF FINANCIAL STATEMENTS)The current ratio of a company is 2 : 1. State with reason whether the sale of goods Rs. 11000 (cost Rs. 10,000) would improve, reduce or not change the ratio.(1)Give one limitation of Cash Flow Statement.(1)What are two major inflow and outflows of cash from financing activities.(1)Give the format of the balance sheet of a company main headings only, as per the requirement of schedule VI of the Companies Act, 1956.(3)From the following Balance Sheet of Sanyog Ltd, prepare Common Size Balance Sheet :(4)ParticularsNote No.31st March 2013 (Rs.)31st March 2012 (Rs.)I.EQUITY AND LIABILITIES 1. Shareholders’ funds (a) Share Capital (b) Reserves & Surplus 2. Non Current Liabilities Long term borrowings 2. Currrent Liabilities : Trade payables40,00,0007,50,00013,50,0003,00,00030,00,00010,00,0009,00,0002,00,000TOTAL64,00,00051,00,000II.ASSETS 1.Non Current Assets (a) Fixed Assets (1) Tangible Assets (2) Intangible Assets 2.Current Assets (a) Inventories (b) Cash & Cash equivalents40,00,00013,00,0008,00,0003,00,00032,00,00011,00,0006,00,0002,00,000TOTAL64,00,00051,00,000(a) Calculate the Debt to Equity ratio from the following :S.No.ItemsAmount (Rs.)1Long Term Borrowings2,00,0002Long term Provisions1,00,0003Current liabilities50,0004Non-current liabilities3,00,0005Current Assets40,000Calculate the current assets from the following information :Stock turnover ratio : 4 timesStock at the end is Rs. 20,000 more than stock in the beginningSales Rs. 3,00,000Gross profit ratio 25%Current liabilities Rs. 40,000Quick ratio 0.75(4)From the following Balance Sheet of X Ltd., prepare cash flow statement :ParticularsNote No.31st March 2013 (Rs.)31st March 2012 (Rs.)I.EQUITY AND LIABILITIES 1. Shareholders’ funds (a) Share Capital (b) Reserves & Surplus : Surplus i.e., balance in statement of Profit & Loss 2. Currrent Liabilities : (a)Trade payables (b) Other current liabilities16,30,0003,08,0002,80,00014,0005,60,0001,82,0001,82,00028,000TOTAL12,32,0009,52,000II.ASSETS 1.Non Current Assets Fixed Assets : Plant and Machinery 2.Current Assets (a) Inventories (b) Cash & Cash equivalents (c ) Trade receivables3,92,0001,26,00084,0006,30,0002,80,0001,82,00070,0004,20,000TOTAL12.320009,52,000Notes to accounts Share CapitalParticulars31st March 2013(Rs.)31st March 2012 (Rs.)Share CapitalEquity Share Capital8% Preference Share Capital4,30,0002,00,0003,60,0002,00,0006,30,0005,60,000Additional Information :An old machinery having book value of Rs. 42,000 was sold off Rs. 56,000Depreciation provided on machinery during the year was 28,000Dividend paid during the year Rs. 56,000(6) ................
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