ULTIMATE BOOK OF ACCOUNTANCY CLASS 12th CBSE

Ultimate Sample paper 4

Answer Key
1. Amount paid ………………………………….2,00,000
Add: Creditors at the end ……………………80,000
Add: Cash purchases ……………………….1,30,000
Less: Sale of Sports Material ……………….(35,000)
Net Purchases made during the year 3,75,000
Less: Sports Material Consumed 3,10,000
Stock at the end 65,000

2. Firm’s Debts and Private Debts

Basis Firm’s Debts Private Debts

Who is For Firm’s Debts, all partners are Firm is not liable, only
Liable liable jointly and severally concerned partner is liable
for his personal debts.

Use of Firm’s property will be used first to Net free property of the
Property pay the firm’s debts partner will be used for the
firm’s debts

3. Vinod’s Gain = 2/3 – 2/5 = 4/15

Satish’s Sacrifice 1/3 – 2/5 = 1/15 Sacrifice
Revaluation Gain = 1,00,000 + 17,000 – 7,000 – 20,000 = 90,000

Date Particulars L.F. Debit (Rs.) Credit (Rs.)

31.3.2021 Vinod’s Capital A/c Dr. 24,000
To Anil’s Capital A/c 18,000
To Satish’s Capital A/c 6,000

4. 52,000 – 10,000 Life Membership Fees + 4,000 + 18,500 – 8,500 – 5,000 = 51,000
OR
Balance Sheet (Extract)
Liabilities Amount Assets Amount
Prize Fund: 10% Prize Fund Investment 5,00,000
Opening Balance 5,00,000 Interest Accrued on Prize Fund 15,000
Add: Donation 1,00,000 Investment
Add: Interest Received 35,000
Add: Accrued Interest 15,000
Less: Prize Awarded (3,50,000) 3,00,000
ULTIMATE BOOK OF ACCOUNTANCY CLASS 12th CBSE

5. Entry

Date Particulars L.F. Debit (Rs.) Credit (Rs.)

30 June X’s Capital A/c Dr. 12,000
2021 Y’s Capital A/c Dr. 3,000
To Z’s Capital A/c 15,000
Average Profit = 3,00,000 + 1,80,000 – 30,000 loss in current year = 4,50,000
= 4,50,000/ 3 = 1,50,000
= 1,50,000 + 20% = 1,80,000
= Estimated Profit for 3 months = 1,80,000 x 3/12 = 45,000
= Z’s Share of profit = 45,000 x 1/3 = 15,000
Gain Share of X and Y = 4:1

6. (i) Issue of Debentures as collateral security means issuing debentures as an

additional security that may be offered against the loan in addition to the principal
security.
(ii) Requirement of loan = 12,50,000 – 5,30,000 (5,00,000 + 30,000) = 7,20,000
(iii) Debentures to be issued as collateral security = 10,800
i.e.,7,20,000 x 1.5 = 10,80,000
OR
Journal

Date Particulars L.F. Debit Credit

30 Interest on Debentures A/c Dr. 30,000
Sept To Debentureholders A/c 30,000
2021 (Being interest due 5,00,000 x 12/100 x 6/12 )

Debenture holders A/c Dr. 30,000

To Bank A/c 30,000
(Being interest paid)

31 Interest on Debentures A/c Dr. 30,000

March To Debentureholders A/c 30,000
2022 (Being interest due 5,00,000 x 12/100 x 6/12 )

Debenture holders A/c Dr. 30,000

To Bank A/c 30,000
(Being interest paid)

Statement of Profit and Loss Dr. 60,000

To Interest on Debentures 60,000
 ULTIMATE BOOK OF ACCOUNTANCY CLASS 12th CBSE

7. Entries
(i) Bank Dr. 80,000 and Credit Realisation A/c 80,000
(ii) Cash/Bank A/c Dr. 4,000 and Realisation A/c Cr. 4,000
(iii) Realisation A/c Dr. 39,500 and Bank A/c Cr. 39,500
(iv) Realisation A/c Dr. 5,000 and Bank A/c Cr. 5,000
(v) Realisation A/c Dr. 69,000 and Bank A/c Cr. 69,000
OR
Revaluation Account

Particulars Amount Particulars Amount

To Provision for doubtful debts A/c 2,000 By Creditors A/c 12,000
To Claim for Damages due
Distribution of Gain: 2,200
To A’s Capital A/c
To B’s Capital A/c 3,900
To C’s Capital A/c 2,600
1,300
12,000 12,000

Partners’ Capital Account

Particulars A B C Particulars A B C
To Goodwill 10,500 7,000 3,500 By Bal. b/d 80,000 80,000 60,000
To B’s Cap. A/c 11,250 3,750 By Gen. Res. 12,000 8,000 4,000
To B’s Loan A/c 98,600 -- By Rev. A/c 3,900 2,600 1,300
To Bal. c/d 74,150 -- 58,050 By A’s Cap. A/c 11,250
By B’s Cap. A/c 3,750
95,900 1,05,600 65,300 95,900 1,05,600 65,300

8. (i) Goodwill Rs. 10,00,000

(ii) Purchase Consideration 57,00,000
(iii) Debentures A/c 40,00,000 and Securities Premium Rs. 10,00,000

9. Income and Expenditure Account

Particulars Amount Particulars Amount

To Salaries 3,000 + 600 3,600 By Subscription 28,200
To Newspapers 2,050 By Sale of old Newspapers 1,250
To Electricity Bill 1,000 By Donation 10,000
To Rent 6,800 + 1,200 8,000 By Interest on FD 1,350
To Loss on Sale of Furniture 1,300 450 + 900
To Surplus 24,850
40,800 40,800
 ULTIMATE BOOK OF ACCOUNTANCY CLASS 12th CBSE

Balance Sheet (Opening)

Liabilities Amount Assets Amount

Capital Fund (Bal. Fig.) 43,550 Cash 19,550
Subscription in Arrears 2,000
Furniture 15,000
Books 7,000
43,550 43,550

Balance Sheet (Closing)

Liabilities Amount Assets Amount

Salaries outstanding 600 Cash 11,200
Rent outstanding 1,200 Subscription in Arrears 2,500
Subscription (Advance) 500 Fixed Deposits 20,000
Capital Fund 43,550 + 24,850 68,400 Accrued interest 900
Books 17,600
Furniture 18,500
70,700 70,700

10. No flow of Cash in both cases

11. Comparative Statement of Profit and Loss
Particulars Note 31st 31st Absolute %
No. March March Change Change
2021 2022
Revenue from Operations 5,00,000 10,00,000 5,00,000 100%
Expenses:
(a) Cost of Material Consumed 3,00,000 7,50,000 4,50,000 150%
(b) Other Expenses 30,000 90,000 60,000 200%
Total Expenses 3,30,000 8,40,000 5,10,000 154.5%
(iii) Profit before Tax (I-II) 1,70,000 1,60,000 (10,000) (5.88%)
(iv) Tax 51,000 64,000 13,000 25.49%
(v) Profit after Tax (iii-iv) 1,19,000 96,000 (23,000) (19.33%)

OR
Common Size Statement of Profit and Loss
Particulars Note 31st 31st % %
No. March March Change Change
2021 2022 2021 2022
(i) Revenue from Operations 20,00,000 30,00,000 100% 100%
(ii) Add: Other Income 4,00,000 3,60,000 20% 12%
(iii) Total Revenue 24,00,000 33,60,000 120% 112%
Less: Expenses 10,00,000 12,00,000 50% 40%
(iv) Profit before Tax 14,00,000 21,60,000 70% 72%
(v) Tax 5,60,000 10,80,000 28% 36%
(vi) Profit after Tax (iii-iv) 8,40,000 10,80,000 42% 36%
ULTIMATE BOOK OF ACCOUNTANCY CLASS 12th CBSE

12. Cash Flow Statement

Particular Detail Amount

A: Cash flow from operating Activities
cash outflow (used) inoperating activities (Given) (18,000)

B.: Cash flow from investing activities

Purchase of Patents (1,10,000)
Purchase of Plant and Machinery (4,82,000)
Sale of Plant and Machinery 34,000
Cash Outflow (used) in Investing activities (5,58,000)

C: Cash flow from financing Activities

Issue of Share Capital 8,00,000
Redemption of Debentures (3,00,000)
Interest paid on Debentures (14,000)
Cash Inflow from financing activities 4,86,000
D: Net decrease in cash & Cash equivalent (A+B+C) (90,000)
Cash & Cash equivalent in the beginning 4,20,000
Current investment 1,90,000 + Cash & Cash Equivalents 2,30,000
Cash & Cash equivalent in the End 3,30,000
Current Investment + Cash & Cash Equivalents at the end