Select Board & Class

# Board Paper of Class 12-Commerce 2017 Accountancy Abroad(SET 1) - Solutions

General Instructions:

1) This question paper contains two parts A and B.

2) Part A is compulsory for all.

3) Part B has two options-Option-I Analysis of Financial Statements and Option-II Computerized Accounting.

4) Attempt only one option of Part B.

5) All parts of a question should be attempted at one place.

Section A

(i) This section consists of 17 questions.​

(ii) All the questions are compulsory.​

(iii) Question Nos. 1 to 6 are very short-answer questions carrying 1 mark each.​

(iv) Question Nos. 7 to 10 carry 3 marks each.​

(v) Question Nos. 11 and 12 carry 4 marks each.​

(vi) Question Nos. 13 to 15 carry 6 marks each.​

(vii) Question Nos. 16 and 17 carry 8 marks each.​

Section B

(i) This section consists of 6 questions.​

(ii) All questions are compulsory​

(iii) Question Nos. 18 and 19 are very short-answer questions carrying 1 mark each.​

(iv) Question Nos. 20 to 22 carry 4 marks.​

(v) Question No. 23 carries 6 marks.​

• Question 1
State the two situations in which interest on partner's capital is generally provided.  (1) VIEW SOLUTION

• Question 2
Reena and Raman are partners in a firm sharing profits in the ratio of 4 : 3. They admitted Roma as a new partner. The new profit sharing ratio between Reena, Raman and Roma was 3: 2: 2. Raman surrendered $\frac{1}{3}\mathrm{rd}$ of his share in favour of Roma. Calculate Reena's sacrifice.   (1) VIEW SOLUTION

• Question 3
Suman and Sudha were partners in  a firm sharing profits equally. Their fixed capitals were Rs 50,000 and Rs 25,000 respectively. The partnership deed provided interest on capital at the rate of 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital.
Pass necessary adjustment entry to rectify the error.  (1) VIEW SOLUTION

• Question 4
Y Ltd. invited applications for issuing 2000, 9% debentures of Rs 100 each at a discount of 10%. The whole amount was payable at the time of application. Applications for 2400 debentures were received and pro-rata allotment was made to all the applicants.
Pass necessary journal entries for the issue of debentures.  (1) VIEW SOLUTION

• Question 5
Z Ltd. forfeited 1000 equity shares of Rs 10 each for the non-payment of the final call of Rs 2 per share. Calculate the maximum amount of discount at which these shares can be reissued.   (1) VIEW SOLUTION

• Question 6
List the categories of individuals other than the minors who cannot become the members of a partnership firm.   (1) VIEW SOLUTION

• Question 7
Raj Motors Ltd. converted its 400, 12% debentures of Rs 100 each issued at a discount of 6% into equity shares of Rs 10 each issued at a premium of 25%. Discount on issue of 12% debentures had not yet been written off.

Showing your working notes clearly, pass necessary journal entries for the above transactions in the books of Raj Motors Ltd.   (3) VIEW SOLUTION

• Question 8
P, Q, R and S were partners in a firm sharing profits in the ratio of 5 : 3 : 1 : 1. On 1st January, 2017, S retired from the firm. On S's retirement the goodwill of the firm was valued at Rs 4,20,000. The new profit sharing ratio between P, Q and R will be 4 : 3 : 3.
Showing your working notes clearly, pass necessary journal entry for the treatment of goodwill in the books of the firm on S's retirement.    (3) VIEW SOLUTION

• Question 9
C India Ltd. purchased machinery from B India Ltd. Payment to B India Ltd. was made as follows:
(i) By issuing 10,000 equity shares of Rs 10 each at a premium of 20%.
(ii) By issuing 1000, 9% debentures of Rs 100 each at a discount of 5%.
(iii) Balance by giving a bank draft of Rs 37,000.

Pass necessary journal entries in the books of C India Ltd. for the purchase of machinery and payment to B India Ltd.   (3) VIEW SOLUTION

• Question 10
Gagan Ltd. is registered with an authorised capital of Rs 15,00,00,000 divided into 1,50,00,000 equity shares of Rs 10 each. Subscribed and fully paid up share capital of the company was Rs 5,00,00,000. For providing employment to the local youth and for the development of rural areas of Jharkhand State, the company decided to set up a food processing unit in Hazaribagh. The company also decided to set up skill development centres at Ranchi, Hazaribagh and Ramgarh. To meet its new financial requirements the company decidded to issue 2,00,000 equity shares of Rs 10 each and 2000, 12% debentures of Rs 1,000 each. The issue of shares and debentures was fully subscribed. A shareholder holding 500 shares failed to pay the final call of Rs 3 per share.

Show the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also, identify any two values that the company wants to propagate.    (3) VIEW SOLUTION

• Question 11
Pankaj and Naresh were partners in a firm sharing profits in the ratio of 3 : 2. Their fixed capitals were Rs 5,00,000 and Rs 3,00,000 respectively. On 1.1.2017, Saurabh was admitted as a new partner for $\frac{1}{5}\mathrm{th}$ share in the profits. Saurabh acquired his share of profit from Pankaj. Saurabh brought Rs 3,00,000 as his capital which was to be kept fixed like the capitals of Pankaj and Naresh.
Calculate the goodwill of the firm on Saurabh's admission and the new profit sharing ratio of Pankaj, Naresh and Saurabh. Also, pass necessary journal entry for the treatment of goodwill.   (4) VIEW SOLUTION

• Question 12
X, Y and Z were partners in a firm sharing profits in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. On 30.9.2016, Z died. The partnership deed provided that on the death of a partner his executors will be entitled to the following :    (4)

(i) Balance in his capital account and interest @ 12% per annum. On 1.4.2016 balance in Z's Capital account was Rs 80,000.

(ii) His share in the profits of the firm in the year of his death, which will be calculated on the basis of rate of net profit on sales of the previous year which was 25%. The sales of the firm till 30.9.2016 were Rs 4,00,000.

(iii) His share on the goodwill of the firm. The goodwill of the firm on Z's death was valued at Rs 3,00,000.

The partnership deed also provided that the following deductions will be made from the amount payable to the executor of the deceased partner:

(i) His drawing in the year of his death. Z has withdrawn Rs 30,000 till 30.9.2016.

(ii) Interest on drawing @ 12% per annum which was calculated as Rs 2,000.

The accountant of the firm prepared Z's Capital Account to be presented to his executor but in a hurry did not complete it. Z's Capital Account as prepared by the firm's accountant is presented below :
 Dr. Z’s Capital Account Cr. Date Particulars Amount (Rs) Date Particulars Amount (Rs) 2016 2016 Sep. 30 …………… 30,000 April 1 …………… 80,000 Sep. 30 …………… 2,000 Sep. 30 …………… 4,800 Sep. 30 …………… ……... Sep. 30 …………… 20,000 Sep. 30 …………… ……... Sep. 30 …………… ……... 1,64,800 1,64,800

You are required to complete Z's Capital Account. VIEW SOLUTION

• Question 13

Manu, Hary, Ali and Reshma were partners in a firm sharing profits in the ratio of 2 : 2 : 1 : 5. On 1.4.2016 their Balance Sheet was as follows:    (6)

 Balance Sheet of Manu, Hary, Ali and Reshma as on 1.4.2016 Liabilities Amount (Rs) Assets Amount (Rs) Capitals: Fixed Assets 8,00,000 Manu 2,00,000 Current Assets 2,40,000 Hary 2,50,000 Ali 1,50,000 Reshma 3,50,000 9,50,000 Sundry Creditors 45,000 Workmen Compensation Reserve 45,000 10,40,000 10,40,000

From the above date partners decided to share future profits equally. For this purpose the goodwill of the firm was valued at Rs 40,000. The partners also agreed for the following:

(i) Claims against Workmen Compensation Reserve was estimated at Rs 50,000. Fixed assets were to be depreciated by 10%.

(ii) Capitals of the partners were to be adjusted according  to the new profit sharing ratio, for this necessary cash will be brought or paid.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

VIEW SOLUTION

• Question 14
On 1.4.2015 PPR Ltd. issued 1500, 10% debentures of Rs 100 each at a discount of 3%, redeemable at a premium of 8% after three years. The company closes its books on 31st March every year. Interest on 10% debentures is payable on 30th September and 31st March. Rate of tax deducted at source is 10%.

Pass necessary journal entries for the issue of 10% debentures and interest for the year ended 31.3.2016.   (6) VIEW SOLUTION

• Question 15
Pass necessary journal entries on the dissolution of a firm in the following cases :  (6)

(i) Dissolution expenses were Rs 700.

(ii) Dissolution expenses Rs 1,100 were paid by partner 'A'.

(iii) Partner 'B' agreed to do the work of dissolution for a commission of Rs 2,000. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 2,100 were paid by B.

(iv) Partner 'C' was appointed to look after the dissolution work for a remuneration of Rs 10,000. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 9,800 were paid from the firm's bank account.

(v) Partner 'D' was appointed to look after the dissolution work for a remuneration of Rs 15,000. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 13,000 were paid by partner 'E' on behalf of partner 'D'.

(vi) Partner 'F' was appointed to look after the process of dissolution for a remuneration of Rs 9,000. He also agreed to pay the dissolution expenses. 'F' took away furniture of Rs 9,000 as his remuneration. Furniture had already been transferred to realisation account. VIEW SOLUTION

• Question 16

A and Z are partners in a firm sharing profits in the ratio of 7 : 3. Their Balance Sheet as on 31.3.2016 was as follows was as follows:    (8)  Balance Sheet of A and Z as on 31.3.2016 Liabilities Amount (Rs) Assets Amount (Rs) Sundry Creditors 60,000 Cash 36,000 Provision for Bad Debts 6,000 Debtors 54,000 Outstanding Wages 9,000 Stock 60,000 General Reserve 15,000 Furniture 1,20,000 Plant & Machinery 120,000 Capitals: A 1,20,000 Z 1,80,000 3,00,000 3,90,000 3,90,000

On the above date B was admitted for $\frac{1}{4}\mathrm{th}$ share in the profits on the following terms:
(i) B will bring Rs 90,000 as his capital and Rs 30,000 as his share of goodwill premium, half of which will be withdrawn by A and Z.
(ii) Debtors Rs 4,500 will be written off and a provision of 5% will be created on debtors for bad and doubtful debts.
(iii) Outstanding wages will be paid off.
(iv) Stock will be depreciated by 10%, furniture by Rs 1,500 and Machinery by 8%.
(v) Investments of 7,500 not shown in the Balance Sheet will be reccorded.
(vi) A creditor of Rs 6,300 not recorded in the books was to be taken into account.

Pass necessary journal entries for the above transactions in the books of the firm on B’s admission.
OR
N, S and G were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. On 31.3.2016 their Balance Sheet was as under:  Balance Sheet of N, S and G as on 31.3.2016 Liabilities Amount (Rs) Assets Amount (Rs) Creditors 1,65,000 Cash 1,20,000 General Reserve 90,000 Debtors 1,35,000 Capitals: Less Provision 15,000 1,20,000 N 2,25,000 Stock 1,50,000 S 3,75,000 Machinery 4,50,000 G 4,50,000 10,50,000 Patents 90,000 Building 3,00,000 Profit & Loss Account 75,000 13,05,000 13,05,000

G retired on the above date and it was agreed that:
(i) Debtors of Rs 6,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.
(ii) Patents will be completely written off and stock, machinery and building will be depreciated by 5%.
(iii) An unrecorded creditor of Rs 30,000 will be taken into account.
(iv) N and S will share the future profits in the ratio of 2 : 3 ratio.
(v) Goodwill of the firm on G’s retirement was valued at Rs 90,000.
Pass necessary journal entries for the above transactions in the books of the firm on G’s retirement. VIEW SOLUTION

• Question 17
BBG Ltd. invited applications for issuing 2,00,000 equity shares of Rs 10 each at a premium of Rs 10 per share. The amount was payable as follows:    (8)

On Application − Rs 4 per share (including Rs 2 premium)
On Allotment − Rs 5 per share (including Rs 2 premium)
On First call − Rs 5 per share (including Rs 3 premium)
On Second and final call − Balance amount

The issue was fully subscribed. Raghu, a shareholder holding 1000 shares, failed to pay the allotment money and Rahim, another shareholder holding 1500 shares, paid his entire share money along with allotment. Raghu's shares were forfeited immediately after allotment. Afterwards, the first call was made Deenanath, a shareholder holding 500 shares, failed to pay the first call money and Dayal, a shareholder holding 600 shares, paid his second call money along with the first call. Deenanath's shares were forfeited immediately after the first call. Later on the second call was made which was duly received.

Pass necessary journal entries for the above transactions in the books of BBG Ltd.

OR

Joy Ltd. invited applications for issuing 20,000 equity shares of Rs 10 each at par. The amount was payable as follows:

On Application − Rs 3 per share
On Allotment − Rs 4 per share
On First and find call − Balance amount

The issue was oversubscribed by three times. Applications for 20% shares were rejected and the money was refunded. Allotment was made to the remaining applicants as ffollows:
 Category No. of Shares Applied No. of Shares Allotted I 30,000 15,000 II 18,000 5,000

Excess money received with applications was adjusted towards sums due on allotment. Money in excess to sums due on allotment was adjusted towards sums due on first and final call and any money in excess to sums due on first and final call was refunded. Kavi, a shareholder who had applied for 600 shares, failed to pay the remaining allotment money and his shares were immediately forfeited. Kavi belonged to Category I.

Afterwards the first and final call was made. Gupta, who had applied for 400 shares, failed to pay the first and final call. Gupta also belonged to Category I.

Shares of Gupta were also forfeited after the first and final call. The forfeited shares were reissued at Rs 12 per share fully paid up.

Pass necessary journal entries for the above transactions in the books of Joy Ltd. VIEW SOLUTION

• Question 18
What is meant by 'Cash Flow from Investing Activities'?  (1) VIEW SOLUTION

• Question 19
J.K. Ltd. purchased machinery on deferred payment basis. During the year ended 31.3.2016 the company paid in instalment of Rs 4,00,000 which included interest of Rs 40,000. While preparing cash flow statement, under which type of activities will this payment be classified? Also, mention the amount involved in each activity.  (1) VIEW SOLUTION

• Question 20
What is meant by 'Analysis of financial statements'? State any two objectives of this analysis.   (4) VIEW SOLUTION

• Question 21
State with reason whether the following transactions will increase, decrease or not change the 'Return on Investment':     (4)

(i) Purchase of machinery worth Rs 2,00,000 by issue of equity shares.
(ii) Charging depreciation of Rs 5,000 on machinery.
(iii) Redemption of debentures in cash Rs 70,000.
(iv) Converting Rs 50,000, 9% debentures into equity shares. VIEW SOLUTION

• Question 22
Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organisations operate. These statements are the source of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions.

From the above statement identify any two values that a company should observe while preparing its financial statements. Also, state under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:    (4)

(i) Calls-in-arrears
(iii) Gain on reissue of forfeited equity shares
(iv) Trade payables to be settled beyond 12 months from the date of Balance Sheet VIEW SOLUTION

• Question 23
Following is the Balance Sheet of J.M. Ltd. as at 31.3.2016:       (6)

 J.M. Ltd. Balance Sheet as at 31.3.2016 Particulars Note No. 31.03.2016 (Rs) 31.03.2015 (Rs) I. Equity and Liabilities : (1) Shareholder's Funds: (a) Share Capital 2,25,000 1,75,000 (b) Reserves and Surplus 1 62,500 25,000 (2) Non-current Liabilities: Long-Term Borrowings 2 1,12,500 87,500 (3) Current Liabilities: (a) Short-term Borrowings 3 37,500 18,750 (b) Short-term Provisions 4 50,000 31,250 Total 4,87,500 3,37,500 II. Assets: (1) Non-current Assets: (a) Fixed Assets: (i) Tangible 5 3,66,250 2,28,750 (ii) Intangible 6 25,000 37,500 (b) Non-current Investments 37,500 25,000 (2) Current Assets: (a) Current Investments 10,000 17,500 (b) Inventories 7 30,500 18,000 (c) Cash and Cash Equivalents 18,250 10,750 Total 4,87,500 3,37,500

Notes to Accounts :
 Note No. Particulars 31.03.2016 (Rs) 31.03.2015 (Rs) (1) Reserves and Surplus (Surplus i.e. Balance in the Statement of Profit and Loss) 62,500 25,000 62,500 25,000 (2) Long-term Borrowings 12% Debentures 1,12,500 87,500 1,12,500 87,500 (3) Short-term Borrowings Bank overdraft 37,500 18,750 37,500 18,750 (4) Short-term Provisions Proposed Dividend 50,000 31,250 50,000 31,250 (5) Tangible Assets Machinery 4,18,750 2,63,750 Accumulated Depreciation (52,500) (35,000) 3,66,250 2,28,750 (6) Intangible Assets Goodwill 25,000 37,500 25,000 37,500 (7) Inventories Stock in Trade 30,500 18,000 30,500 18,000

(1) Rs 25,000, 12% Debentures were issued on 31.3.2016.

(2)  During the year a piece of machinery costing Rs 20,000 on which accumulated depreciation was Rs 10,000 was sold at a loss of Rs 2,500.

Prepare a Cash Flow Statement.
VIEW SOLUTION
More Board Paper Solutions for Class 12 Commerce Accountancy

• ### Board Paper of Class 12-Commerce 2008 Accountancy All India(SET 1) - Solutions

Board Paper Solutions for Other Subjects

### Board Paper Solutions for Class 12 Commerce Economics

What are you looking for?

Syllabus