MARKING SCHEME, SET-3

CLASS- 12, Accountancy

MM:80 Time: 3 Hrs.

Part A - Accounting for Partnership Firms and Companies

1. P/L Suspense A/C Dr. 2,350 1
To Verma’s capital A/C 2,350
2 A 1
3 (a) 300 1
4 (d) OR (a) Revaluation Account 1
5 (c ) 1
6 (b) OR (d) 1
7 (a) Statement of Profit and Loss Account 1
8 (b) OR ₹ 2,02,000 1
9 (b) Mining Right is an asset for long term so it is an Intangible Asset 1
10 (c) 1
11 (b) 1
12 (c) Share Capital 1
13 (b) 1
14 (d) 1
15 (a) Opening capital ₹ (8, 00,000) + Salary ₹ (30,000) + Int. On Capital ₹ (40,000) + 1
Profit ₹ (65,000)
= ₹ 9,35000
Profit = ₹ 3,45,000 - ₹ 60,000 - ₹ 90,000 = ₹ 1,95,000 divide into 2:1 i.e.
₹ 1,95,000/3= ₹ 65,000
OR
(a) One–third of ₹ (70,000 - 25,000) = ₹ 45,000/3 = ₹ 15,000.
16 ( c) ₹ 56,000 1
17 Arjun’s Capital A/c Dr 10,000 3
To Bhim’s Capital A/c 10,000
Arjun;s capital A/Cc Dr. 42,000
Bhim’s Capital A/c Dr. 15,000
Nakul’s Capital A/c Dr. 18,000
To Goodwill A/c 75,000
P/L Appropriation A/C Dr. 1,00,000
To Arjun;s capital A/c 76,000
To Nakul’s Capital A/C c 24,000

1
 Value of Goodwill:
Average profits = ₹ (50,000+55,000+60,000)/3 = ₹ 55,000
Normal profit = ₹ 30,000
Super profit = ₹ 55,000 - ₹ 30,000 = ₹ 25,000
Goodwill = ₹ 25,000 x 2 = ₹ 50,000
Bhim’s share = ₹ 50,000 x 5/25 = ₹10,000
18 3
A’s Capital A/c Dr. 6,400
B’s Capital A/c Dr. 2,000
To C’s Current A/c 8,400

ADJUSTMENT TABLE
A’s Capital B’s Capital C’s Capital Firm
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Salary 8,000 8,000 16,000
Commission 12,000 8,000 8,000
Profit credited 60,000 60,000 30,000 15,00,000
earlier
Net profit after 45,600 50,000 30,400 1,26,000
adjustment
Net Balance 6,400 2,000 8,400
Dr. Dr. Cr.

Or
A’s Capital A/c Dr. 11,200
To B’s Capital A/c 11,200

ADJUSTMENT TABLE
A’s Capital B’s Capital Firm
Dr Cr Dr Cr Dr Cr
Salary 50,000 36,000 86,000
Interest on capital 90,000 40,000 1,30,000
Profit credited earlier 1,94,600 83,400 278000
Net profit after 43,400 18,600 62,000
adjustment
Net Balance 11,200 Dr. 11,200 Cr.
19 1X3=3
Computers A/c Dr. 3,00,000
Software A/c Dr. 5,00,000
To C. Ltd 8,00,000
C Ltd Dr. 8,00,000
Discount on issue of debentures A/c Dr. 80,000
To Bank 80,000
To 7% Debentures A/c 8,00,000
Securities Premium Reserve A/c Dr. 40,000
Capital Reserve A/c Dr. 25,000
Statement of Profit and Loss A/c Dr. 15,000
To Discount on issue of Debentures 80,000

2
 7,20,000/90 = 8,000 Debentures
OR
Sundry Assets A/c Dr. 15,00,000
Goodwill A/c Dr. 3,68,500
To Sundry Liabilities 5,00,000
To Pvt. Ltd 13,68,500
Pvt. Ltd Dr. 13,68,500
To Bills Payable 25,500
To Equity Share Capital 10,74,400
To Securities Premium Reserve Account 2,68,600

(13,68,500,-,25,500)/125 = 10,744 shares.

20 Date Particulars Dr Amount(₹) Cr Amount(₹) 3
2018 Maanika’s capital A/c Dr. 2,40,000
March,31 Bhavi’s Capital A/c Dr. 1,60,000
To Komal’s Capital A/c 4,00,000
(Being the deficiency of komal meet by Maanika and Bhavi)
Profit and Loss Appropriation A/c
To Profit and Loss A/c 22,00,000 By Loss trf to
Maanika’s capital 12,00,000
Bhavi’s capital 8,00,000
Komal’s capital 2,00,000

21 Bank A/c Dr. 2,10,000

To Debenture Application & Allotment A/c 2,10,000 3+1
Debenture Application & Allotment A/c Dr. 2,10,000
To Security Premium Reserve A/c 10,000
To Debentures A/c 2,00,000
Bank A/c Dr. 2,10,000
To Debenture Application & Allotment A/c 2,10,000
Debenture Application & Allotment A/c Dr. 2,10,000
Loss on Issue of Debentures A/ Dr. 20,000
To12% Debentures A/c 2,00,000
To Premium on Redemption of Debentures A/c 20,000
To Security Premium Reserve A/c 10,000

B)
Bank A/c Dr. 6,00,000
To Bank Loan A/c 6,00,000
Debenture Suspense A/c Dr. 5,00,000
To Debenture A/c 5,00,000

3
22 4
(i) Bank A/c Dr. 88,000
To Realisation A/c 88,000
(ii) Realisation A/c Dr. 50,000
To Bank A/c 50,000
(iii) Q’s loan A/c Dr 18,000
To Bank A/c 17,000
To Realisation A/c 1,000
(iv) P’s capital A/c Dr. 6,000
Q’s capital A/c Dr. 6,000
R’s capital A/c Dr. 3,000
To Realisation A/c 15,000

23 Bank A/c Dr. 10,00,0 6

To Equity Share Application & Allotment 00 10,00,000
A/c
(Being application and allotment money
received with premium)
Equity Share Application and Allotment A/c 10,00,0
Dr. 00 4,00,000
To Equity Share Capital A/c 1,00,000
To Calls-in-Advance A/c 4,00,000
To Securities Premium Reserve A/c 1,00,000
To Bank A/c
(Being application and allotment money
transferred to share capital)
Equity Share First and Final Call A/c Dr. 8,00,00
To Equity Share Capital A/c 0 4,00,000
To Securities Premium Reserve A/c 4,00,000
(Being call money due with premium)
Bank A/c Dr. 6,86,00
Calls-in-Advance A/c Dr. 0
To Equity Share First and Final Call A/c 1,00,00 7,86,000
0

Bank A/c Dr. 6,86,00

Calls in Arrears A/c Dr. 0
Calls-in-Advance A/c Dr. 14,000
To Equity Share First and Final Call A/c 1,00,00 8,00,000
(Being call money received) 0
Equity Share Capital A/c Dr. 16,000
Securities Premium Reserve A/c Dr. 8,000
To Share Forfeiture A/c 10,000
To Equity Share First and Final Call A/c 14,000
(Being 1600 shares forfeited)
4
 Date Particulars Debit (₹) Credit(₹)
(i) Share capital A/C Dr. 20,000
To Calls-in- arrears A/C 2,000
To Share forfeited A/C 18,000
(Being 200 shares forfeited) (1 Mk)
(ii) Bank A/C Dr. 8,000
Share forfeited A/C Dr. 2,000
To Share Capital A/C 10000
(Being 100 shares being re-issued @ ₹ 80 as fully (1Mk)
paid)
(iii) Share forfeited A/C Dr. 7,000
To Capital Reserve A/C 7,000
(Being gain on forfeiture and reissue trf. to capital (1 Mk)
reserve)

Bank A/c 14,400

Share Forfeited A/c 1,600
To Equity Share Capital A/c 16,000
(Being shares reissued)
Share Forfeited A/c 8,400
To Capital Reserve A/c 8,400
(Being balance of share forfeited transferred to
capital reserve A/c)
Or
Date Particulars Debit ₹ Credit ₹
(i) Share Capital A/c Dr 8,000
To Calls-in- arrears A/c 5,000
To Share forfeited A/c 3,000
(Being the forfeiture of 1000 shares of ₹ 10 each , ₹ 8 (1 Mk)
Called up, on which allotment money of ₹ 2 and First
Call of ₹ 3 has not been received)
(ii) Bank A/Cc Dr 11,000
To Share Capital A/c 10,000
To Securities Premium Reserve A/c 1,000
(Being reissue of 1,000 forfeited shares fully paid up (1 Mk)
at Rs11 per share)
(iii) Share forfeited A/c Dr 3,000
To Capital Reserve A/c 3,000
(Being gain on forfeiture and reissue of shares (1 Mk)
transferred to Capital reserve Account)
(3+3)

5
24 2+3=6
Journal Entries OR
1 Land and Building A/c Dr. 22,000 2+2+2=
Provision for Doubtful debts A/c Dr. 7,000 6
Creditor’s A/c Dr. 9,800
To Revaluation 38,800
2 Revaluation A/c Dr. 14,000
To Plant and Machinery A/c 14,000
3 Revaluation A/c Dr. 24,800
To A’s Capital A/c 14,880
To B’s capital A/c 9,920
4 General reserve A/c Dr. 10,000
Investment fluctuation fund A/c Dr. 2,000
To A’s Capital A/c 7,200
To B’s Capital A/c 4,800
5 Investment fluctuation fund Dr. 2,000
To Investment 2,000
6 Cash /Bank A/c Dr. 70,000
To C’s Capital A/c 56,000
To Premium for goodwill 14,000
7 Premium for goodwill A/c Dr. 14,000
To A’s Capital A/c 8,400
To B’s Capital A/c 5,600

OR
Revaluation A/c
To Patents 1,000 By Provident fund 600
To Plant & Machinery 4,800 By Investments 5,800
To Profit on Revaluation:
A’s capital - 300
B’s capital - 200
C’s capital - 100 600
6,400 6,400

A’s Capital A/c

Particulars A B C Particulars A B C
To InvestmentA/c 15,800 By Balance b/d 40,000 36,500 20,000
To C’s Capital 2,700 1,800 By Reserve A/c 4,500 3,000 1,500
To C’s Loan A/c 10,300 By Revaluation A/c 300 200 100
To bal. c/d 42,100 37,900 By A’s Capital A/c 2,700
By B’s Capital A/c 1,800
44,800 39,700 26,100 44,800 39,700 26,100

6
25 1X6 =
VINAY’S CAPITAL A/C 6 One
Particulars Rs. Particulars Rs. mark
To Drawing A/c 18,000 By Balance b/d 2,50,000 for
To Vinay’s 4,96,750 By Loan by Vinay A/c 50,000 each
Executors’ A/c- By Interest on Loan by Vinay a/c 2,250 credit
Transfer By General Reserve A/c 6,250 side of
Vijay
(Balancing Figure) By Profit and Loss Suspense A/c – Profit 18,750
capital
By Vijay’s Capital A/c (Goodwill) 1,60,714 a/c
By Vivek’s Capital A/c (Goodwill) 25,786
5,14,750 5,14,750
*Loan by Vinay account ₹ (50,000) and Interest on Loan by Vinay Account ₹ (2,250) may be
transferred to Vinay’s Executor’s Account directly.
VINAY’S EXECUTOR’S A/C
Particulars Rs. Particulars Rs.
To Balance c/d 4,96,750 By Vinay’s Capital A/c 4,96,750

26 (a) Total payment to vendor ₹ 2,52,000

1.5 mark for entry and 1.5 mark for calculation.
(b) 1.5 mark for each entry.

Part B – Analysis of Financial Statements

27 (b) ₹ 78,000 1
OR
(b ) Operating ratio and operating profit ratio.
28 (b) 1
29 (d ) Contingent liability 1
OR
(C) Outflow ₹ 58,000.
30 (c) ₹ 4,80,000 1
31 0.5X6
Heading Sub-heading =3
Bank Overdraft Current Liabilities Short term Borrowing
Net Loss as shown by Shareholders Fund Reserve & Surplus as
Profit & Loss Statement negative item
Bonds Non-Current Liability Long term Borrowings
Trademark Non –Current Assets Fixed Assets -Intangible
Raw Materials Current Assets Inventories
Forfeited Shares Shareholders fund Share Capital ( Add to
Account subscribed Capital

32 (a) Increase: COGS increases and Average stock decreases. 0.5

(b) Decrease: COGS will decrease and Average stock will increase. X6= 3
(c) Decrease: COGS will remain unchanged and Average stock will increase.
(d) (e.) & (f) Increase: COGS will remain unchanged and Average stock will decrease.

7
33 Net Assets Turnover ratio = Revenue from Operations/Capital Employed 4
= ₹ 3,60,00,000/1,20,00,000 = 3 times
OR

Interest Coverage Ratio =

Net Profit before Interest and Tax/Fixed Interest Charges
Net Profit after tax = ₹ 1,20,000
Tax rate = 40% 1.5 marks
Net Profit before tax = ₹ 1,20,000 ×100/60 = ₹ 2,00,000

Interest on 12% long-term debt i.e.,

12/100× ₹ 20,00,000 = ₹ 2,40,000
Profit before Interest and Tax = ₹ 2,00,000 + ₹ 2,40,000 = ₹ 4,40,000 1.5 marks
Interest Coverage Ratio = ₹ 4,40,000 / 2,40,000
= 1.833 times
3+3
34 Cash Flow Statement

Particulars Amount (₹) Amount (₹)

I. Cash flow from operating activities:
Net profit before tax (4,00,000-2,00,000) 2,00,000
Adjustment for non cash and non operating items:
Depreciation 30,000
Profit on sale of machinery (10,000) 20,000
2,20,000
Operating profit before working capital changes
Change in current assets and current liabilities:
Decrease in inventories 50,000
Increase in trade receivable (2,00,000)
Increase in trade payables 1,00,000 (50,000)
1,70,000
Net cash inflow from operating activities

II. Cash flow from investing activities:

60,000
Sale of plant
(2,80,000)
Purchase of plant
(2,20,000)
Net cash used in investing activities

III. Cash flow from financing activities:

Issue of share capital 1,00,000
Net cash inflow from financing activities 1,00,000

IV.Net increase in cash and cash equivalents 50,000

30,000
V. Opening cash and cash equivalents
VI. Closing cash and cash equivalents 80,000

8
Working Note:

Plant and Machinery Account

Particulars Amount Particulars Amount
To Balance b/d 3,00,000 By Bank A/c(Sale) 60,000
To Statement of P/L(Profit) 10,000 By Depreciation A/c 30,000
To Bank A/c(Purchase) 2,80,000 By Balance c/d 5,00,000

5,90,000 5,90,000

Cash used in Operating Activities 2 Marks

Cash used in Investing Activities 2 Marks
Cash from Financing Activities 2 Marks

*********************************************