CBSE Class 12 Accountancy Sample Paper 2018
CBSE Class 12 Accountancy Sample Paper 2018
CBSE Class 12 Accountancy Sample Paper 2018
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ACCOUNTANCY
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QUESTION PAPER
ACCOUNTANCY (055)
CLASS-XII
Time allowed –3 hours Maximum Marks 80
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-Financial statements Analysis and Computerized Accounting.
4) Attempt only one option of Part B.
5) All parts of a question should be attempted at one place.
Q-1. A and B are partners sharing profit and losses in the ratio of 2:3. C is admitted for 1/5 share in
the profits of the firm. If C gets it wholly from A, Calculate the new profit sharing ratio after
C’s admission. (1)
Q-2. A,B and C are partners sharing profit and loss in the ratio of 2:5:5 form lstJan,2015,they
decided to share profit and loss in the ratio of 3:5:7. On that date General Reserve shown in
the books at Rs.48, 000. Pass journal entry. (1)
Q-3. On the dissolution of a firm, there was an unrecorded asset of Rs.2,000 which was taken over
by a Creditor at Rs.2,500. What entry will be passed? (1)
Q-4. Give distinction between Issued Capital and Subscribed Capital. (1)
Q-5. Angel Ltd., in order to retain high caliber employees or to give them a belongingness,
company has offered a choice to the whole time directors, officers and employees, the right to
purchase or subscribe at a future date, the securities or equity shares offered by the company
at a pre-determined rate. State what type of plan Angle Ltd, has implemented here. (1)
Q-6. X and Y are partners sharing profits in the ratio of 4: 3. Z is admitted for l/7th share and he
brings in Rs. 1,40,000 as his goodwill out of which Rs. 80,000 is credited to X and remaining
amount to Y. In which ratio X and Y are sacrificing in favour of Z? (1)
Q-7. You are required to complete the following incomplete journal entries related to forfeiture of
shares originally issued at premium (3)
JOURNAL
Particulars Dr. (Rs.) Cr. (Rs.)
Share capital A/c Dr. 500
................................................ 250
To............................................ ...............
To............................................ ...............
(Being 50 shares of Rs. 10 each forfeited for non-payment of
allotment money of Rs. 9 per share including Rs. 5of
Securities premium per share)
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Q-8. State any three purposes for which Securities Premium amount can be used by a Company as
per Companies Act 2013. (3)
Q-9. Sundaram Ltd. Purchased Furniture for Rs. 3,00,000 from Ravindran Ltd. Rs. 1,00,000 was
paid by drawing a Promissory note in favour of Ravindran Ltd. The balance was paid by issue
of9%Debentures of Rs. 10 each at a premium of 25%. Pass necessary Journal entries in the
books of Sundaram Ltd. (3)
Q-10. A, B and C are partners sharing profit in the ratio of 5:4:1. C is given a guarantee that his share
of profits in any given year would be Rs. 5,000. Deficiency, if any, would be borne by A and B
equally. The profits for the year 2014-15 amounted to Rs. 40,000. Pass necessary entries in
the books of the firm. (3)
Q-ll. A and B are partners sharing profits & losses equally. They admit C into partnership, C paid
only Rs. 60,000 for premium out of his share of premium of Rs. 1,08,000 for l/4th share in
profit. Goodwill account appears in the books at Rs. 3, 00,000. All the partners have decided
that goodwill should not appear in the new firm's books. Half of the premium is withdrawn by
the partners. Give the necessary journal entries. (4)
Q-12. On 01.01.2012 a public ltd. Company issued 25,000, 10% Debentures Rs. 100 each at par,
which were repayable at a premium of 10%. 30.09.2015, on the date of maturity the company
decided to redeem the above mentioned 10% Debentures as per the terms of issue, out of
profits. The profit and loss account show a credit balance of Rs. 30,00,000 on this date, the
offer was accepted by all the debenture-holders and all the debentures were redeem, if the
Company follows the Companies Act. (4)
Q-13. The partners of a firm distributed the profits for the year ended 31st March 2003, Rs-90,000
in the ratio of 3:2:1 without providing for the following adjustments:
(1) A & B were entitled to a salary of Rs.l, 500 each per annum.
(2) B was entitled to a commission of Rs. 4,500.
(3) B & C had guaranteed a minimum profit of Rs. 35,000 p.a. to A.
(4) Profits were to be shared in the ratio of 3 : 3 : 2.
Pass necessary journal entries for the above adjustments in the books of the firms. (6)
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Q-14. Meghnath limited took a loan of Rs. l,20,000from a bank and deposited 1,400, 8% debentures
of Rs. 100 each as collateral security along with primary security worth Rs 2 lakh. Company
again took a loan of Rs. 80,000 after two months from a bank and deposited 1,000, 8%
debentures of Rs. 100 each as collateral security. Record necessary journal entries. How will
you show the issue of debentures and bank loan in the balance sheet of the company. (6)
Q-15. Sudha and Shiva are running a chemical business nearby Jaipur city. Under a notification
issued by the Government of India the type of business they are running has been included in
pollute products and as per the Pollution Control Act they decided to close the existing
business and start School for the poor and backward students. So they decided to close down
their business.
(a) State the values followed by Sudha and Shiva
(b) Pass the necessary journal entries for the following transactions on the dissolution of the
firm of Sudha and Shiva assuming the various assets (other than cash) and outside
liabilities have been transferred to realization account. (1X6=6)
(1) Sudha agreed to pay off her husband's loanRs. 19,000
(2) A debtor whose debt of Rs. 9,000 was written off in the books paid Rs. 7,500 in full
settlement.
(3) Sunder creditors Rs. 10,000 were paid at 9% discount.
(4) Loss on realization Rs. 9,400 was divided between Sudha and Shiva in 3:2 ratio.
Q-16. (A) Khanna, Seth & Mehta were partners in a firm sharing profits in the ratio of 3:2:5. On 31-
03-2010 the balance sheet of Khanna, Seth and Mehta was as follows:
On 14thJune, 2011, Seth died. The partnership deed provided that on the death of a partner the
executor of the deceased partner is entitled to:
(1) Balance in capital account;
(2) Share in profit up to the date of death on the basis of last year's profit;
(3) His share in profits/losses on revaluation of assets and re-assessment of liabilities which
were as follows :
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Owing to heavy subscription, the allotment was made on pro rata basis as follows:
(a) Applications for 20,000 shares were allotted 10,000 shares.
(b) Applications for 56,000 shares were allotted 14,000 shares.
(c) Applications for 48,000 shares were allotted 16,000 shares.
It was decided that excess amount received on applications would be utilised on allotment
and the surplus would be refunded.
Ram, to whom 1,000 shares were allotted, who belongs to category (a), failed to pay
allotment money. His shares were forfeited after the call.
1- Which value has been affected by rejecting the applications of the applicants who have
applied for 3,000 shares?
2- Suggest a better alternative for the same.
3- Pass the necessary journal entries in books of X Ltd. (8)
OR
Q-17. Vaibhav Ltd. issued Rs.5,00,000 new capital divided into Rs. 50 per share at a premium of
Rs. 10, payable as under:
On application Rs. 5 per share
On allotment Rs. 20 per share (including premium of Rs. 5 per share)
On first Stfinal call Rs. 35 per share (including premium of Rs. 5 per share)
Over payments on applications were to be utilised towards sums due on allotment and first
&fin?il call. Where no allotment was made money was to be refund in full.
The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares
were allotted only 2,000 shares and applicant for 3,000 shares were sent letters of regrets.
Shares were allotted in full to the reaming applicants. All the money due was duly received.
1- Which value has been affected by rejecting the applications of the applicants who have
applied for 3,000 shares?
2- Suggest a better alternative for the same.
3- Give journal entries to record the above transactions (including cash transaction) in the
books of the company. (8)
PART-B (ANALYSIS OF FINANCIAL STATEMENTS)
Q-18. At the time of preparation of Cash Flow Statement, What will be the treatment of goodwill in
the following cases:
(i) If it is increasing, (ii) If it is decreasing. (1)
Q-19. Interest received by State Bank of India Ltd for Rs. 1, 00,00,000 on Loan to Reliance India
Ltd., is what type of activity? (1)
Q-20. State the respective heads and sub-heads of the following items which will appear in the
Balance Sheet of a company: (4)
(1) General Reserve
(2) Government and Trust Securities.
(3) Capital Reserve
(4) Public Deposits
(5) Authorised Capital
(6) Mortgage Loan
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Q.22. From the given information calculate the inventory turnover ratio: Revenue from operations
Rs. 2,00,000; Gross profit 25% on cost. Opening inventory was l/3rd of the value of closing
inventory. Closing inventory was 30% of revenue from operations. (4)
Q-23. The Balance Sheet of Raksha Ltd. As on 31-03-2014 and 31-03-2015 were as follows:
Balance Sheet
Particulars Note No. Amount Amount
31-03-15 31-03-14
(I) EQUITY AND LIABILITIES
1. Shareholder’s Fund
Equity Share Capital 10,00,000 7,00,000
Reserves and Surplus 1 2,50,000 1,50,000
2. Current Liabilities
Short-term Provisions 2 50,000 40,000
Total 13,00,000 8,90,000
(II) ASSETS
1. Non Current Assets
Fixed Assets
Tangible Assets 3 8,00,000 5,00,000
2. Current Assets
(a) Inventory 1,00,000 75,000
(b) Cash and Cash Equivalents 4 4,00,000 3,15,000
Total 13,00,000 8,90,000
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Notes to Accounts :-
Note No. Particulars Amount Amount
31-03-15 31-03-14
1. Reserves and Surplus
Profit and Loss Balance 2,50,000 1,50,000
2. Short Term Provisions
Proposed Dividends 50,000 40,000
3. Tangible Assets
Plant and Machinery 8,00,000 5,00,000
5. Cash and Cash Equivalents
Cash 4,00,000 3,15,000
ADDITIONAL INFORMATION:
(a) Rs. 50,000 depreciation has been charged to plant and machinery during the year 2014-15,
(b) A piece of machinery costing Rs. 12,000 (book value Rs. 5,000) was sold @ 60% profit on
book value.
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Ans.8: Following are the Purposes for which Securities Premium amount can be used by a
Company: (1 x 3 =3 marks any three points)
(a) To issue fully paid-up Bonus shares to the existing shareholders.
(b) To write off preliminary expenses of the Company.
(c) To write off the share issue expenses, Underwriting Commission or
discount/expenses of Shares/debentures.
(d) To pay premium on the redemption of preference shares or debentures of the
company.
(e) Buy-back of Equity shares and other securities as per section 68.
Ans.9: Journal of Sundaram Ltd. (1x2 = 2 marks for entries)
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Ans. 13: Adjustment Table (4 mark for calculation and 2 marks for entry)
Particulars A B C Total
1. Partners Salaries 1,500 1,500 (3,000)
2. Partner's Commission (45,000) 4,500
3. Profit Wrongly Distributed in 3:2:1 (4,500) (30,000) (15,000) 90,000
Total (43,5000) (24,000) (15,000) 82,500
Guaranteed Profit to A 35,000 (35,000)
Distribution of Profit Rs. 47,500 in 3 : 2 28,500 19,000 (47,500)
Net Effect (8,500) 4,500 4,000 –
Adjustment Entry:
A's capital A/c Dr. 8,500
To B's Capital A/c 4,500
To C's Capital A/c 4,000
(Being adjustment entry passed)
Note: Profit to A = 82,500 x 3/8 = 30937.5 or Rs. 30,938 which is less than Guaranteed profit
hence he should be given Rs. 35,000. Remaining profit is distributed between B and C in 3:
2.
Ans.14: (1 mark for each entry and 2 mark for balance sheet)
JOURNAL OF MEGNATH LTD.
Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)
When Bank A/c Dr. 1,20,000
loan To Bank loan A/c 1,20,000
is (Being loan obtained from bank secured by
taken primary security* worth Rs. 2,00,000 &Rs.
1,40,000, 8% debentures as collateral security)
Debenture suspense A/c Dr. 1,40,000
// To 8% Debentures A/c 1,40,000
(Being issue of Rs. 1,40,000 debentures as
collateral security to secure a loan of rs.
1,20,000 from the bank )
Bank A/c Dr. 80,000
// To Bank Loan A/c 80,000
(Being loan obtained from bank secured by
Rs. 1,00,000, 8% debentures as collateral security)
Debenture suspense A/c Dr. 1,00,000
// To 8% Debentures A/c 1,00,000
(Being issue of Rs. 1,00,000 debentures as
collateral security to secure a loan of Rs. 80,000
from the bank)
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OR
Ans,16 (2 marks for Revaluation A/c, 3 marks for Partners Capital A/c and 3 marks for
Balance Sheet
Dr. Revaluation Account Cr.
Particular Amount Particular Amount
To piant& Machinery A/c 5,000 By Land & Building A/c 10,000
To profit transferred to: By Provision for Doubtful Debtors 400
X’s capital A/c 4,000 By creditors A/c 1,000
Y’s capital A/c 2,400 6,400
11,400 11,400
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Ans.17: (1 Mark for Value, 1 for alternative and 3 marks first three entries, 2 marks for 4th to 5th
entries and 1 mark for last entries.)
1. Va!ue of equity has been affected by rejecting the applications of the retail investors
from getting shares of the company.
2. The better alternative could have been to allot the shares proportionately to all the
applicants so that such applicants may not be demotivated from investing in the capital of
company in future.
Journal of Vaibhav Ltd.
Date Particulars L.F. Dr. (Rs.) Cr. (Rs.)
Bank A/c Dr. 1,15,000 1,15,000
To Share Application A/C
(being application money received on 23,000 shares
@ 5 per share)
Share Application A/c Dr. 1,15,000
To Share Capital A/c 50,000
To Share Allotment A/c 40,000
To calls-in-advance A/c 10,000
To Bank A/c 15,000
(Being application money adjusted and balance
refunded)
Share Allotment A/c Dr. 2,00,000
To Share Capital A/c 1,50,000
To Securities Premium Reserve A/c 50,000
(Being allotment due)
Bank A/c Dr. 1,60,000
To Share Allotment A/c 1,60,000
(Being allotment money received)
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Working Note:-
1. Total amount received on application = Rs.5x23,000 = Rs.l,15,000
2. Pro-rata category=applied (12,000): allotted (2,000) =6:1
Money received on applications =12,000xRs. = Rs.60,000
Money required on applications=2,000xRs.5 = Rsl0,000
Excess money received on application Rs 50,000
Money required on allotment =2,000xRs.20 = Rs.40,000
So, entire amount due on allotment is already received. Excess of Rs 10,000 is transferred to call
In advanced,
(PART- B ANALYSIS OF FINANCIAL STATEMENTS)
Ans.18: l/2x 2= 1 mark
(i) Will be shown as Cash outflow under Investing activities as it shows Purchase of goodwill.
(ii) Will be added to net profit (before tax) while calculating cash flow from Operating
activities (goodwill written off).
Ans.19: Operating Activity 1 mark
Ans.20: 1/4x8 = 4marks
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Ans. 23 :
Cash Flow Statement for the year Ended on 31-03-2015
A) Cash Flow from Operating Activities:
Net Profit before Tax and Extra ordinary Items
Net Profit 1,00,000
Add: Proposed Dividends 50,000
Depreciation on Machinery 50,000
2,00,000
Less: Profit on Sale of Machinery (3,000) (3,000)
Operating Profit before working capital changes 1,97,000
Less: Increase in Current Liabilities
Inventory (25,000) (25,000)
Net Cash (inflow) form Operating Activities 1,72,000
B) Cash Flow From Investing Activities
Cash Received from Sale Of Machinery 8,000
Cash paid for Purchase of Machinery (3,55,000)
Net Cash Outflow from Investing Activities (3,47,000)
C) Cash Flow From Financing Activities
Cash received from Issue of Shares 3,00,000
Dividend Paid (40,000)
Net Cash (Inflow) from Financing Activities (2,60,000)
Net Cash Flow (A + B + C) 85,000
Add: Opening Cash and Cash Equivalent 3,15,000
Closing Cash and Cash Equivalent 4,00,000
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