DELHI PUBLIC SCHOOL JODHPUR

Term Exam – II (2019–20)

Class - XII
Subject – Accountancy
Time : 2 Hours M.M. : 50
General Instructions :–
i) Please check that this question paper contains 04 printed pages and 20 questions.
ii ) Please write down the serial number of the question before attempting.
iii ) All parts of question should be attempted at one place.
iv ) All questions are compulsory.

1. The two basic measures of operational efficiency of a company are – [1]

(a) Net Profit Ratio and Operating Ratio
(b) Current Ratio and Debt Equity Ratio
(c) Operating Profit Ratio and Gross Profit Ratio
(d) Inventory Turnover Ratio and Working Capital Turnover Ratio
2. At what rate interest on calls in arrear can be charged by a company according to Table ‘F’ of [1]
Schedule I of the Companies Act, 2013?
3. If the Trade receivable turnover ratio is divided into 12 months or 365 days, it becomes a [1]
measure of …………………
4. Whether the following statement is True or False. [1]
‘Interest received by a construction company will be an operating activity in cash flow
statement.’
5. X Ltd forfeited 20,000 shares of ` 10 which were issued to Mohit at a premium of 20%, who [1]
failed to pay First Call money ` 2 (including premium of ` 1) and Final Call of ` 3. If 15,000
shares were reissued then minimum reissuing price of these shares will be:
(a) ` 1,50,000 (b) ` 60,000 (c) ` 90,000 (d) None of these
6. What will be the effect on current ratio if a bills receivable is dishonoured on maturity? [1]
7. X Ltd forfeited 5,000 shares of ` 10 which were issued to Mohit at a premium of 20% who [1]
failed to pay First Call money ` 3. Final Call of ` 3 (including premium of ` 1) yet to be
made. 4,000 shares were reissued at ` 7 as ` 9 paid up. Calculate the amount which is
transferred to Capital Reserve?
8. While preparing Cash Flow Statement, match the following activities – [1]
I. Issue of Share by a financing Company a. Financing activity
II. Purchase of Debenture by an Investing company b. Operating activity
9. What do you mean by ‘Cash Equivalent’? [1]
10. Which of the following is not a characteristic of Bearer Debentures? [1]
(a) these are treated as negotiable instruments
(b) transfer of these requires a deed of transfer
(c) these are transferable by mere delivery
(d) the interest on these is paid to the holder
11. Operating ratio of a company is 80%. State giving reason whether the ratio will improve, [1]
decline or not change on purchase of goods.
12. ……………. Statements are the examples of Horizontal Analysis. [1]
13. State the heading in which the following items will be classified for the preparation of a [3]
Company’s Balance Sheet :
(i) Unclaimed dividend (ii) Forfeited Share Account
(iii) Government Securities (iv) Security Deposit with Government department
(v) Loose Tools (vi) Patents

(1) P.T.O.
14. From the following calculate Proprietary Ratio:- [3]
Share Capital ` 8,00,000, Reserve and Surplus ` 4,50,000, Long term Loan ` 5,50,000 Current
Liabilities ` 2,00,000, Closing Stock ` 50,000.
OR
Calculate the amount of Current Assets on the basis of following information:
Current Ratio – 3.5:1, Quick Ratio 1.5:1, Stock ` 50,000
15. Garima Ltd. was formed with an nominal capital of ` 8,00,00,000 divided into 60,00,000 [4]
equity shares of ` 10 each and 20,000, 9% preference shares of ` 100 each. The company
issued prospectus inviting application for 2,00,000 equity shares. The company received
application for 3,00,000 equity shares and pro-rata allotment was made. All the money
received on due dates except Vipul, holding 8,000 shares did not pay first call of ` 3 per share.
Final call of ` 2 per share yet to be called. Vipul’s shares were forfeited and later on 5,000 of
the forfeited shares were reissued @ ` 7 per share as fully paid up.
Show the following:
a) Share Capital in the Balance Sheet of the Company as per revised Schedule VI Part I
of the Companies Act, 2013.
b) Also Prepare ‘Notes to the Accounts’ for the same.
st
16. On 1 April 2017, Keshav Ltd. invited applications for issuing 10,000, 12% Debentures of [4]
` 100 each at a discount of 6%. These debentures were repayable at the end of 4th year at a
premium of 10%. Applications for 15,000 debentures were received and the debentures were
allotted on pro-rata basis to all the applicants. Tax was deducted at source by company on
interest @ 10%. Interest on debentures is payable half yearly on 30th September and 31st
March and company has balance in Securities Premium Reserve of ` 70,000.
Pass the necessary journal entries including writing off Discount/Loss on issue of debenture
during 2017-18.
17. From the following Statement of Profit and Loss of Star Ltd., for the years ended 31st March [4]
2017-18 and 2018-19, prepare a comparative Statement of Profit or Loss.
Particulars 2017-18(`) 2018-19(`)
Revenue from Operations 16,00,000 20,00,000
Employee Benefits Expenses 8,00,000 10,00,000
Other expenses 2,00,000 1,00,000
Tax Rate 40% 40%
OR
From the following Balance Sheets, prepare Common Size Balance Sheet: –
Balance Sheets as on 31st March, 2017 and 31st March, 2018
Particulars 31st March, 2018 31st March, 2017
Equity & Liabilities
Share holders’ Funds
Share Capital 40,00,000 20,00,000
Equity Share Capital
Reserve & Surplus 16,00,000 10,00,000
General Reserve
Non Current Liabilities
Long Term Borrowings 20,00,000 15,00,000
10% Debentures
Current Liabilities 4,00,000 5,00,000
Trade Payable
Total 80,00,000 50,00,000
Assets
Norn Current Assets
Fixed Assets (Tangible) 60,00,000 30,00,000
Current Asset
Trade Receivable 20,00,000 20,00,000
Total 80,00,000 50,00,000
(2) P.T.O.
18. (i) Mehta Ltd took over the following Assets and Liabilities of Jain Ltd. [6]
Building—10,00,000; Book debts —6,00,000;Stock---- 3,50,000;Payables—-2,00,000;
at an agreed consideration of ` 20,00,000, which was discharged as follows:-
40% by a Bank draft, 50% by issue of 9% Debentures of `100 each at a premium of
25% and the balance by a bill of exchange.
Give the journal entries in the books of Mehta Ltd.
(ii) X ltd. took a loan of ` 30,00,000 from Bank and issued 7% Debentures of ` 10,00,000
as collateral security. How will these items be shown in the Balance Sheet when issue
of debentures is recorded in the books of company?
OR
st
On 1 April 2014 L & T Ltd issued 9%debentures of ₹ 5,00,000 which are to be redeemed at a
premium of 20% in two instalments of ₹ 3,00,000 and ₹ 2,00,000 on December 31 2018 and
March 31st 2020 respectively. Pass necessary journal entries for issue and redemption of
debentures including creation of debentures redemption reserve and debentures redemption
reserve investment.
19. Prepare the Statement showing Cash Flow from Investing and Financing Activities on the [6]
basis of the information given in the Balance Sheets of GS Sharma Ltd. as at 31st March 2018
and 31st March 2019:
Particulars Note No 31.3.2019 (`) 31.3.2018 (`)
I. EQUITY AND LIABILITIES:
(1) Shareholder's Funds:
a) Share Capital 2,00,000 1,60,000
b) Reserves and Surplus 1 70,000 50,000
(2) Non- Current Liabilities:
Long Term Borrowings 2 60,000 1,00,000
(3) Current Liabilities
a) Trade Payables 3 1,60,000 60,000
b) Other Current Liabilities 4 20,000 10,000
TOTAL 5,10,000 3,80,000
II. ASSETS:
(1) Non-Current Assets
a) Fixed Assets
(i) Tangible Assets 5 2,10,000 1,50,000
(ii) Intangible Assets 6 2,000 10,000
b) Long Term Loans and Advances 1,30,000 1,00,000
(2) Current Assets
a) Inventories 90,000 60,000
b) Trade Receivables 60,000 40,000
c) Cash and Cash Equivalents 18,000 20,000
TOTAL 5,10,000 3,80,000
Notes to Accounts –
Particulars 31.3.2019 (`) 31.3.2018(`)
1. Reserves and Surplus
Securities Premium Reserve 70,000 50,000
2. Long Term Borrowings
12 % Debentures 60,000 1,00,000
3. Trade Payables
Creditors 60,000 40,000
Bills Payable 1,00,000 20,000
4. Other Current Liabilities
Outstanding Expenses 20,000 10,000
5. Tangible Fixed Assets
Machine 2,10,000 1,50,000
6. Intangible Fixed Assets
Goodwill 2,000 10,000

(3) P.T.O.
 Additional Information:
1. A Machine costing `40,000 was sold at a profit of `4,000.
2. Rent received during the year 2018-19 ` 20,000.
3. Debentures were redeemed at a premium of 20%.
20. Prateek Ltd invited applications for issuing 40,000 equity shares of ₹ 100 each at a premium [8]
of ₹ 20. The amount was payable as follows:
On Application – ₹ 30
On allotment – ₹ 30 (including a premium of ₹ 20)
On 1st call – ₹ 30
On Final Call Balance
Applications of 60,000 shares were received. Allotment was made on pro rata basis to all
applicants. Excess money received on application was adjusted on sums due on allotment.
Archi, who was allotted 1,600 shares, failed to pay allotment money and Somya who applied
of 6,000 shares did not pay first call money. These shares were forfeited immediately after
first call. 2,000 of these shares (including all shares of Archi were issued to Taha for ₹ 95 per
share as 80 paid up.
Pass necessary journal entries in books of Prateek Ltd. by opening call in arrear, call in
advance account, if final call has not been made.
OR
a. X Ltd. forfeited 100 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had paid
application and allotment money of ₹ 5 per share. Out of these, 80 shares were re-issued
to Y for ₹7 per share at ₹ 8 paid up. Record the journal entries for forfeiture and reissue of
shares by opening call in arrear, call in advance account.
b. L ltd forfeited Mr M’s shares who has applied for 1,200 shares and was allotted 800
shares failed to pay allotment money of ₹ 4 per share including premium of ₹ 2 on which
he had paid application money of ₹ 2 only. Pass necessary journal entries for forfeiture of
shares by opening call in arrear, call in advance account.
c. Crown Ltd forfeited 500 shares of ₹ 10 each, for non- payment of final call money of ₹ 3
per share. Out of these 200 shares were reissued to Taj at₹ 8 per share. Record the journal
entries for forfeiture and reissue of shares assuming that the company maintains call in
arrear, call in advance account.

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(4) P.T.O.