CBSE Class 12 Accountancy Sample Paper – 1

NCERT & CBSE Class 12 Accountancy Sample Paper

SAMPLE PAPER -1

SUBJECT: ACCOUNTANCY

            MAX MARKS: 80

GENERAL INSTRUCTIONS:

1. There are 23 questions in the paper.
2. The paper is divided into 2 parts: A & B. Attempt each part separately & in sequence.
3. Kindly support your answers with proper formats & working notes.
4. Use of calculator is not permitted.

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PART-A

ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES

1. State the ratio in which the partners share profits or losses on revaluation of assets and liabilities, when there is a change in the profit sharing ratio amongst existing partners?
2. New ratio       b. Old ratio
3. Gaining ratio d. Sacrificing ratio 1
4. Raghav Ltd. has a nominal capital of 50,00,000. Securities Premium Reserve shows a balance of 1,00,000. The company decided to use this amount for the purpose of issuing fully paid bonus shares to the shareholders. Identify any two values which according to you motivated the directors to follow the above option. 1
5. Differentiate between Revaluation A/c and Realisation A/c on the basis of purpose for which these accounts are prepared. 1
6. A partnership deed provides for the payment of interest on capital but there was a loss instead of profits during the year 2012-13. At what rate the interest on capital be allowed?
7. 6% p.a. b. 5% p.a.
8. No interest to be provided d. As provided in the partnership deed 1
9. Which of the following is true in relation to Goodwill:
10. It is a current asset b. It is a fictitious asset
11. It is a tangible asset d. It is a intangible asset                                 1
12. K Ltd. purchased its own 100, 8% debentures of 100 each at 95per debenture for the purpose of redemption. Pass the necessary journal entries. 3
13. S Ltd. purchased furniture for 3,00,000 from R Ltd.  1,00,000 were paid by issuing 9% debentures in favour of R Ltd. The balance was paid by issue of Equity shares of  10 each at a premium of 25%. Pass necessary journal entries in the books of S Ltd.                                                               3
14. W and B are partners sharing profits and losses in the ratio of 3:2. W being a non working partner, contributed 12,00,000 as his capital. B being a working partner, agreed to work for the firm. Partnership deed provided for interest on capital @5% and salary to working partner @ 3,000 per month. The net profit before providing for interest on capital and partner’s salary for the year ended 31^st December 2013 was 48,000.

Prepare Profit and Loss Appropriation account.                                                                       3

9. P, Q and R are partners sharing profits and losses in the ratio of 5:3:2. From 1^st April, 2006, they decided to share profits and losses in equal proportion. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at 3 years’ purchase of average of five years’ profits. The profits and losses of the preceding five years are:

Year             Profits/(losses)

2001-02        60,000

2002-03        1,50,000

2003-04       1,70,000

2004-05        1,90,000

2005-06        (70,000)

Give the necessary journal entry to record the above change.                                                              4

10. Show the share capital in the balance sheet of the company as per revised schedule VI Part I of the Indian Companies Act, 1956 as at 31^st March 2013 and prepare notes to accounts regarding share capital using imaginary figures. 4

 

11. L, M and N were partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as at 31^st March, 2014, was as follows:

 

Liabilities		Assets
Sundry creditors Reserves Capital A/c: L M N	20,000 9,000   50,000 30,000 20,000	Cash Debtors Stock Machinery Investments	8,000 22,000 20,000 67,000 12,000
	1,29,000		1,29,000

 

N died on 1 July 2014 and according to the partnership deed, his executor is entitled to the following:

1. The capital to his credit at the time of his death along with interest thereon @ 8% p.a.
2. His share of reserves and profit. The profit will be calculated on the basis of sales. The total sales from 1^st April 2014- 1^st July 2014 were calculated as 2,40,000. The rate of profit on an average is 10% of sales.
3. Goodwill of the firm is valued at 2,00,000.

Show the capital A/c of N to be rendered to his executor.                                            4

 

12. X Ltd. issued 40,00,000, 8% Debentures of  100 each on 1^st April 2007. The terms of issue stated that the debentures were to be redeemed at a premium of 5% on 30^th June 2009. The company decided to transfer out of profit 10,00,000 to Debenture Redemption Reserve on 31^st March 2008 and  10,00,000 on 31 March 2009. Pass the necessary journal entries at the time of issue and redemption of debentures (ignore interest).                                                                                                      6

 

13. A,B and C are partners in a firm sharing profits in the ratio 2:3:1. C retired on 1^st April 2013. At the time of his retirement:
14. Goodwill of the firm was valued at 36,000
15. The balance sheet of the firm showed:
16. A general reserve of 1,20,000
17. A debit balance of 48,000 in the profit and loss A/c.

• Unrecorded investment 96,000 which was sold for the same price and divided between the partners

Record the necessary journal entries for the above adjustments to be made in the books of the   firm on the date of C’s retirement.                                                                                                   6

14. A, B and C are equal partners. They formed a partnership firm of making handmade sheet by recycling the waste material. A being the working partner, distributed the profit of 75,000 for the year in the ratio 2:1:1, after allowing a salary of 25,000 to himself for the year. Since there was no partnership deed, B and C objected to it. Settle the dispute among the partners through a single adjustment entry.

Which values are highlighted in the question?                                                                          6

 

15. R and S are partners sharing profits in the ratio of 3:2. They admitted T as a new partner for 1/4^th T brought 1,96,000 as his share of capital. On 31^st March 2014, the date on which T was admitted, the balance sheet of R and S was as follows:

Liabilities		Assets
Capital A/c: R S Sundry creditors General Reserves Investment fluctuation fund	4,16,500 3,92,000 1,96,000 35,000 14,000	Building Plant and Machinery Debtors                             1,47,000 Less: Provision for doubtful debts                                    24,500                                                                                                                                                                                                                                          Investments ( MV 66,500) Cash	3,43,000 2,45,000     1,22,500 73,500 2,69,500
	10,53,500		10,53,500

Additional information:

1. Plant and machinery will be valued at 2,94,000.
2. All debtors are good.
3. Goodwill of the firm is valued at 2,94,000
4. T will bring his share of goodwill in cash.
5. New profit sharing ratio will be 2:1:1.
6. Liability of 34,300 included in sundry creditors is not likely to arise.
7. Capitals of old partners will be adjusted on the basis of new partner’s share of capital. Any deficiency or excess will be made good by bringing in/ withdrawing cash by the concerned partner as the case may be.

Prepare necessary accounts and Balance sheet after T’s admission.

Or

A, B and C were partners sharing profits and losses in the ratio of 3:1:1. The Balance Sheet of the firm as on 31^st January 2007 was as follows:

 

Liabilities		Assets
Capital A/c: A B C Sundry creditors Loan	27,500 10,000 7,000 6,000 1,500	Sundry Assets Debtors                          24,200 Less: Provision for doubtful debts                                 1,200 Stock Furniture Cash	17,000     23,000 7,800 1,000 3,200
	52,000		52,000

It was agreed that the firm be dissolved and:

1. A to take over furniture at 800 and debtors amounting to 20,000 at 17,200 and the creditors of  6,000 were to be paid by him at this figure.
2. B is to take over all stock at 7,000 and some sundry assets at  7,200( being 10% less than the book value)
3. C to take over remaining sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of
4. The expenses of realization were The remaining debtors were bad and not recoverable.

Prepare necessary accounts to close the books of the firm.                                                          8

16. S Ltd. invited applications for 2,00,000 equity shares of 100 each at a premium of  10 per share payable as

40 on application (including premium)

30 on allotment

and the balance on first and final call.

Applications were received for 3,00,000 shares. Applications for 40,000 shares were rejected and pro-rata allotment was made to the remaining applicants.

One shareholder holding 2,000 shares, failed to pay allotment and call money. His  shares were forfeited. The forfeited shares were reissued @ 90 per share fully paid up.

Pass necessary journal entries in the books of S Ltd.

Or

J Ltd. invited applications for issuing 75,000 equity shares of 200 each at a discount of 5%. The amount was payable as follows:

On Application               80 per share

On Allotment                  60 per share

On first and final call      the balance amount

Applications for 70,000 shares were received. Allotment was made to all the applicants and the company received all money due on allotment except A, to whom 900 shares were allotted and his shares were immediately forfeited. After the first and final call was made, H the holder of 700 shares, failed to pay the first and final call. His shares were also forfeited. All the forfeited shares of A and 350 shares of H were reissued for 195 per share fully paid up. Pass the necessary journal entries in the books of J Ltd.

8

PART B

FINANCIAL STATEMENT ANALYSIS

17. State with reason whether ‘purchase of fixed assets on long term deferred payment’ would result in inflow, outflow of no flow of cash. 1

 

18. Current Ratio of a company is 3:1. State whether the ratio will improve, decline or not change on the payment of interest by the company. 1

 

19. An example of an activity which is classified as financing activity in case of all enterprises while preparing cash flow statement is
20. Payment of salaries and wages to employees b. Purchase of Goodwill
21. Payment of Dividend on shares  d. Payment of interest on Borrowing          1

 

20. Under what heads and subheads the following items will appear in the Balance Sheet of a company as per revised Schedule VI Part I of Companies Act, 1956:

 

1. Prepaid insurance
2. Building under construction
3. Proposed dividend 3

 

21. Prepare comparative statement of Profit and Loss from the following information: 4

Particulars	31.3.2014	31.3.2013
Revenue from operations Other incomes Cost of material consumed   Other expenses   Tax rate	37,50,000 4,50,000 60% of revenue from operations 10% of revenue from operations 50%	25,00,000 5,00,000 50% of revenue from operations 10% of revenue from operations 50%

 

22. Gross profit ratio of the company was 25%. Its cash sales were 3,00,000 and credit sales were 90% of the total sales. Assume that the indirect expenses were 30,000. Calculate the net profit ratio. 4

 

23. Following are the balances of accounts of Great Ltd.:

 

Balances of Accounts	31.03.2013	31.03.2012
I.        EQUITY AND LIABILITIES Share capital Reserves Profit and loss (surplus) Debentures Proposed dividend Provision for taxation Trade payables Total equity and liabilities   II.     ASSETS Plant and machinery Land and building Non-current investment Inventory Trade receivables Cash in hand/bank Total assets	10,00,000 2,00,000 1,00,000 2,00,000 2,00,000 1,00,000 7,00,000 25,00,000     7,00,000 6,00,000 1,00,000 4,00,000 5,00,000 2,00,000 25,00,000	8,00,000 1,50,000 60,000 — 1,00,000 70,000 8,20,000 20,00,000     5,00,000 4,00,000 — 2,00,000 7,00,000 2,00,000 20,00,000

Additional information:

1. Depreciation @ 25% was charged on the opening value of plant and machinery.
2. During the year, one old machine costing 50,000 (written down value 20,000) was sold for 35,000.

Prepare cash flow statement as per Accounting Standard-3 from the above information.       6

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