ACCOUNTANCY CLASS-XII

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.

PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES

Q1. A, B and C are partners sharing profits and losses in the ratio of 5:3:2. C retired and his capital (1)
balance after adjustments regarding reserves, accumulated profits/ losses and gain/loss on revaluation
was `2,50,000. C was paid `3,00,000 in full settlement. Afterwards D was admitted for 1/4th share.
Calculate the amount of goodwill premium brought by D.

Sol: Goodwill share of C= `3,00,000-`2,50,000= `50,000

Firm’s Goodwill = 50,000x10/2= `2,50,000
D’s share in Goodwill= `2,50,000x1/4= `62,500
Q2. A and B were partners in a firm. They admitted C as a new partner for 20% share in the profits. After (1)
all adjustments regarding general reserve, goodwill, gain or loss on revaluation, the balances in capital
accounts of A and B were `3,85,000 and `4,15,000 respectively. C brought proportionate capital so as
to give him 20% share in the profits. Calculate the amount of capital to be brought by C.

Sol: Combined capital of A and B = `3,85,000+`4,15,000= `8,00,000

C’s share=1/5th of total capital
Remaining share= 1-1/5 =4/5
4/5= `8,00,000
C’s capital= `8,00,000x5/4x1/5= `2,00,000

Q3. A and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is `2,50,000. (1)

The total interest on partner’s drawing is `4,000. A’s salary is `4,000 per quarter and B’s salary is
`40,000 per annum. Calculate the net profit/loss earned during this year.

Sol. Net Profit during the year=Divisible profits + Salary to partners – Interest on Drawings
= 2,50,000+16,000+40,000-4000= `3,02,000

Q4. ABC Ltd. purchased for cancellation its own 5,000, 9% Debentures of `100 each for `95 per debenture. (1)

Brokerage charges `15,000 were incurred. Calculate the amount to be transferred to capital reserve.

Amount paid for 5,000 Debentures=4,75,000+15,000= `4,90,000

The nominal value of debentures to be redeemed/cancelled= `5,00,000
Amount of profit on redemption to be transferred to capital reserve= `5,00,000--`4,90,000= `10,000
Q5. When can shares held by a shareholder be forfeited? (1)

Answer: Shares held by a shareholder can be forfeited for the non-payment of call money due.
Q6. A partnership firm has 50 members. All the partners have agreed to admit Ram and Mohan as new (1)
partners. Can Ram and Mohan be admitted? Give reason in support of your answer.

Answer: No, Ram and Mohan can’t be admitted as partners.

Reason--- As per the Companies Miscellaneous Rules, 2014 the Maximum number of partners in a
partnership firm can be 50.

Q7. Explain with an imaginary example how issue of debenture as collateral security is shown in the (3)
balance sheet of a company when it is recorded in the books of accounts.

A Ltd. obtained Loan of 1,00,000 from Indian Bank and issued 1200, 10% Debentures of `100 each
as Collateral security. The company recorded the issue of debentures as collateral security by opening
‘Debenture Suspense Account.’ Present the issue of debentures in the Balance Sheet of the company.

Treatment:

An extract of Balance sheet of A Ltd.

as at -----------------------

Particulars Note No.

EQUITY AND LIABILITIES
Non-current liabilities
Long Term Borrowings 1 1,00,000

Notes to Accounts:

Note Particulars `
No
1 Long Term Borrowings
Loan from Indian Bank 1,00,000

1200, 10% Debentures of 100 each issued as Collateral Security

1,20,000
Less: Debenture Suspense Account (1,20,000) --------------

1,00,000/-
Q8. Rekha, Sunita and Teena are partners in a firm sharing profits in the ratio of 3:2:1. Samiksha joins the (3)
firm. Rekha surrenders 1/4th of her share; Sunita surrenders 1/3rd of her share and Teena
surrenders1/5th of her share in favour of Samiksha. Find the new Profit sharing ratio.

Rekha surrenders for Samiksha = 1/4 x 3/6 = 3/24

Sunita surrenders for Samiksha = 1/3 x 2/6 = 2/18
Teena surrenders for Samiksha = 1/5 x 1/6 = 1/30
New share of Rekha = 3/6 – 3/24=9/24
New share of Sunita = 2/6-2/18=4/18
New share of Teena = 1/6-1/30=4/30

Share of Samiksha = 3/24+2/18+1/30=97/360

New Ratio :- 9/24:4/18:4/30:97/360

135 : 80 : 48 : 97

Q9. King Ltd took over assets of 25,00,000 and liabilities of 6,00,000 of Queen Ltd. King Ltd paid the (3)
purchase consideration by issuing 10,000 equity shares of 100each at a premium of 10% and
11,00,000 by a Bank Draft.

Calculate Purchase consideration and pass necessary Journal entries in the books of King Ltd.

Solution:
 Calculation of Purchase Consideration:
Nominal Value of Shares issued = 10000 x 100 = 10,00,000
Securities premium Reserve = 1,00,000
Bank draft = 11,00,000
Purchase consideration = 22,00,000

KING LTD.
JOURNAL
S.No. Particulars L.F Debit Credit
`
i. Sundry Assets A/c-----------------------------------Dr 25,00,000
Goodwill A/c (b/f) --------------------------------- Dr 3,00,000
To Sundry Liabilities A/c 6,00,000
To Queen Ltd. 22,00,000
(Being the purchase of assets and liabilities of
Queen Ltd.)
ii. Queen Ltd. -----------------------------------------Dr 22,00,000
To Equity Share Capital A/c 10,00,000
To Securities Premium Reserve A/c 1,00,000
To Bank A/c 11,00,000
(Being 10,000 Equity shares of ` 100 each issued at
a premium of 10% and 11,00,000/- paid by Bank
draft)
Q10 ABC Ltd was a cloth manufacturing company located in Delhi. Being a socially aware organization (3)
they wanted to set up a manufacturing plant in a backward area of Kashmir to provide employment to
the local people. On July 17, 2014 a flood had hit the entire state of Jammu & Kashmir causing
massive destruction and loss. The company wanted to help the people, so they decided to raise funds
through issue of 50,000 Equity shares of 50 each to set up the plant in the rural area of Kashmir.
Pass necessary Journal entries for the issue of shares and identify any two values that the company
wanted to communicate to the society.

ABC LTD.
JOURNAL
S.No. Particulars L.F Debit Credit

(i) Bank A/c -------------------------------------------- Dr. 25,00,000

To Equity Share Application & Allotment A/c 25,00,000
(Being the amount of application money received
on 50,000 shares @ Rs.50 per share.)
(ii) Equity Share Application & Allotment A/c ---- Dr. 25,00,000
To Equity Share Capital A/c 25,00,000
(Being the amount transferred to Share Capital A/c)

Values which the Company wants to communicate to the Society:

(i) Discharge of Social Responsibility.
(ii) Generation of employment opportunities.
(iii) Helping the needy people
(iv) Sympathy for poor.

Q11 A,B,C and D were partners sharing profits in the ratio of 1:2:3:4. D retired and his share was acquired (4)
by A and B equally. Goodwill was valued at 3 years’ purchase of average profit of last 4 years, which
was 40,000. General Reserve showed a balance of 1,30,000 and D’s Capital in the Balance Sheet
was 3,00,000 at the time of D’s retirement.
You are required to record necessary Journal entries in the books of the firm and prepare D’s capital
account on his retirement.
 JOURNAL
Date PARTICULARS L.F DEBIT CREDIT

(i) A’s Capital A/c _________________________Dr. 24,000

B’s Capital A/c _________________________ Dr. 24,000
To D’s Capital A/c 48,000
(Treatment of goodwill on retirement of D)

(ii) General Reserve _________________________ Dr. 1,30,000

To A’s Capital A/c 13,000
To B’s Capital A/c 26,000
To C’s Capital A/c 39,000
To D’s Capital A/c 52,000
(General Reserve distributed)

Dr. D’s Capital Account Cr.

PARTICULARS PARTICULARS
To D’s Loan A/c 4,00,000 By Balance b/d 3,00,000
By A’s Capital A/c 24,000
By B’s Capital A/c 24,000
By General Reserve 52,000
4,00,000 4,00,000
Q12 Kavita, Meenakshi and Gauri are partners doing a paper business in Ludhiana. After the accounts of (4)
partnership have been drawn up and closed, it was discovered that for the years ending 31 st March
2013 and 2014, interest on capital has been allowed to partners @ 6% p.a. although there is no
provision for interest on capital in the partnership deed. Their fixed capitals were 2,00,000;
1,60,000 and 1,20,000 respectively. During the last two years they had shared the profits as under:
Year Ratio
31 March 2013 3:2:1
31 March 2014 5:3:2

You are required to give necessary adjusting entry on April 1, 2014.

Table Showing Adjustment

Kavita Meenakshi Gauri Total

Interest on Capital (2012-13) Dr. 12,000 9,600 7,200 28,800

Interest on Capital (2013-14) Dr. 12,000 9,600 7,200 28,800

Total Dr. 24,000 14,400 57,600

19,200
Profit to be credited (2012-13) Cr. 14,400 9,600 4,800 28,800
Profit to be credited (2013-14) Cr. 14,400 8,640 5,760 28,800

Total Cr. 28,800 18,240 10,560 57,600

Adjustment 4,800 960 3,840
Cr. Dr. Dr.

JOURNAL

DATE PARTICULARS L.F DEBIT CREDIT

2014 Meenakshi’s Current A/c _______________Dr. 960

APR 1 Gauri’s Current A/c ___________________Dr. 3,840
To Kavita’s Current A/c 4,800
(Adjustment for interest on capital for the year
2012-13 and 2013-14)

Q13 On 31st March 2015 the Balance Sheet of Punit, Rahul and Seema was as follows (6)

Balance Sheet of Punit, Rahul and Seema

as at March 31, 2015
Liabilities Assets
Capitals: Buildings 40,000
Punit 60,000 Machinery 60,000
Rahul 50,000 Patents 12,000
Seema 30,000 1,40,000 Stock 20,000
Cash 42,000
Reserves 20,000
Creditors 14,000

1,74,000 1,74,000

They were sharing profit and loss in the ratio 5:3:2.

Seema died on October 1, 2015. It was agreed between her executors and the remaining partners that:
(i) Goodwill be valued at 2 years’ purchase of the average profits of the previous five years,
which were: 2010-11: 30,000; 2011-12: 26,000; 2012-13: 24,000; 2013-14: 30,000
 and 2014-15: 40,000
(ii) Patents be valued at 16,000; Machinery at 56,000; Buildings at 60,000
(iii) Profit for the year 2015-16 be taken as having been accrued at the same rate as that in the
previous year.
(iv) Interest on capital be provided at 10% p.a.
(v) A sum of 15,500 was paid to her executors immediately.

Prepare Revaluation Account, Seema’s Capital Account and Seema’s executors Account.

Dr. Revaluation Account Cr.

Particulars LF Particulars LF
To Machinery 4,000 By Patents 4,000
To Profit Distributed: By Buildings 20,000
Punit 10,000
Rahul 6,000
Seema4,000 20,000
24,000 24,000

Dr. Seema’s Capital Account Cr.

Date Particulars LF Date Particulars LF
2015 2015
Oct 1 To Seema’s Executor’s A/c 55,500 Apr1 By Balance b\d 30,000
Oct1 By Reserves 4,000
Oct1 By Punit’s Capital 7,500
Oct1 By Rahul’s Capital 4,500
Oct1 By Revaluation A/c 4,000
Oct1 By P & L Suspense 4,000
Oct1 By Int. on Capital 1,500

55,500 55,500

Dr. Seema’s Executor’s Account Cr.

Date Particulars LF Date Particulars LF
2015 2015
Oct 1 To Bank A/c 15,500 Oct 1 By Seema’s Capital 55,500
Oct 1 To Seema’s A/c
Executor’s Loan A/c 40,000
55,500 55,500

Working Note:
Average Profit= (30,000+26,000+24,000+30,000+40,000)/5= 30,000
Goodwill= 30,000X2= 60,000
Seema’s share of Profit for 6 months=40,000X6/12X2/12= 4,000
Interest on Seema’s Capital = 30,000 X 10/100 X6/12 = 1,500
Q14 Ruchi Ltd issued 42,000, 7% Debentures of 100 each on 1st April, 2011, redeemable at a premium of (6)
8% on 31st March 2015. The company decided to create required Debenture Redemption Reserve on
31st March 2014. The company invested the funds as required by law in a fixed deposit with State
Bank of India on 1st April, 2014 earning interest @ 10% per annum. Tax was deducted at source by
the bank on interest @ 10% per annum.
Pass necessary Journal Entries regarding issue and redemption of debentures.

Sol. RUCHI LTD.

JOURNAL
ISSUE OF DEBENTURES

Date Particulars L.F. Debit Credit

` `
 2011
April 1 Bank A/c ---------------------------------Dr. 42,00,000
To Debenture Application & Allotment A/c 42,00,000
(Being the Application and allotment money
received on issue of Debentures
April 1 Debenture Application & Allotment A/c -----Dr. 42,00,000
Loss on Issue of Debenture A/c ----------------Dr. 3,36,000
To 7% debenture A/c 42,00,000
To Premium on Redemption of Debenture A/c 3,36,000
(Being allotment of Debentures redeemable at 8%
premium)

REDEMPTION OF DEBENTURES:

Date Particulars L.F. Debit Credit

2014
Mar 31 Surplus i.e. balance in Statement of Profit & Loss Dr. 10,50,000
To Debenture redemption Reserve A/c 10,50,000
(Being the profits transferred to Debenture
Redemption Reserve)
2014
April 1 Debenture Redemption Investment A/c ------------Dr. 6,30,000
To Bank A/c 6,30,000
(Being the Investment made as fixed deposit as per
Companies Act, 2013 earning Interest @ 10%)
2015
Mar 31 Bank A/c ---------------------------------------------- Dr. 6,86,700
TDS collected A/c ----------------------------------- Dr,. 6,300
To Debenture Redemption Investment A/c 6,30,000
To Interest Earned A/c 63,000
(Being the fixed deposit encashed on Redemption and
interest received @ 10% p.a.)
Mar 31
7% Debenture A/c ----------------------------------- Dr. 42,00,000
Premium on Redemption of Debenture A/c ------ Dr. 3,36,000
To Debentureholder’s A/c 45,36,000
(Being amount due to Debenture holders)
Mar 31 Debenture holder’s A/c ----------------------------- Dr. 45,36,000
To Bank A/c 45,36,000
(Being the amount due paid on redemption)
Mar 31 Debenture Redemption Reserve A/c ---------------Dr. 10,50,000
To General Reserve A/c 10,50,000
(Being Debenture Redemption Reserve transferred to
General Reserve)
Q15 Hema and Garima were partners in a firm sharing profits in the ration of 3:2. On March 31, 2015,
their Balance Sheet was as follows:
Balance Sheet of Hema and Garima (6)
as at March 31, 2015
Liabilities Assets
Creditors 36,000 Bank 40,000
Garima’s Husband’s Loan 60,000 Debtors 76,000
Hema’s Loan 40,000 Stock 2,00,000
Capitals: Furniture 20,000
Hema 2,00,000 Leasehold 1,00,000
Garima1,00,000 3,00,000 Premises
4,36,000 4,36,000
On the above date the firm was dissolved. The various assets were realized and liabilities were settled
as under:
(i) Garima agreed to pay her husband’s loan.
(ii) Leasehold Premises realized 1,50,000 and Debtors 2,000 less.
(iii) Half the creditors agreed to accept furniture of the firm as full settlement of their claim
and remaining half agreed to accept 5% less.
(iv) 50% Stock was taken over by Hema on cash payment of 90,00 and remaining stock
was sold for 94,000.
(v) Realisation expenses of 10,000 were paid by Garima on behalf of firm.
(vi) Pass necessary journal entries for the dissolution of the firm.

Sol: Journal
Date Particulars Dr.(` ) Cr.( `)
1 Realisation A/c Dr. 3,96,000
To Debtors A/c 76,000
To Stock A/c 2,00,000
To Furniture A/c 20,000
To Leasehold Premises A/c 1,00,000
(Being Assets transferred to Realisation A/c)
2. Creditors A/c Dr. 36,000
Garima’s Husband’s Loan A/c Dr. 60,000
To Realisation A/c 96,000
(Being third party liabilities transferred to Realisation A/c)
3 Bank A/c Dr. 4,08,000
To Realisation A/c 4,08,000
(Being Assets realized)
4 Realisation A/c Dr. 17,100
To Bank A/c 17,100
(Being creditors paid)
5 Realisation A/c Dr. 70,000
To Garima’s Capital A/c 70,000
(Being realization expenses and Garima’s husband loan
paid off by Garima)
6 Realisation A/c Dr. 20,900
To Hema’s Capital A/c 12,540
To Garima’s Capital A/c 8,360
(Being profit on realization distributed among partners)
7 Hema’s Loan A/c Dr. 40,000
To Bank A/c 40,000
(Being Hema’s loan paid)
8 Hema’s Capital A/c Dr. 2,12,540
Garima’s Captial A/c Dr. 1,78,360
To Bank A/c 3,90,900
(Being amount paid to partners at final settlement of
accounts)
Q16 P and Q were partners in a firm sharing profits in 3:2 ratio. R was admitted as a new partner for 1/4 th (8)
share in the profits on April 1, 2015. The Balance Sheet of the firm on March 31,2015 was as follows:

Balance Sheet of P and Q

as at March 31, 2015
Liabilities Assets
Creditors 20,000 Cash 20,000
General Reserve 16,000 Debtors 18,000
Capitals: Stock 20,000
P 96,000 Furniture 12,000
Q 68,000 1,64,000 Machinery 40,000
Buildings 90,000
2,00,000 2,00,000

The term of agreement on R’s admission were as follows:

a) R brought in cash 60,000 for his capital and 30,000 for his share of goodwill.
b) Building was valued at 1,00,000 and Machinery at 36,000.
c) The capital accounts of P and Q were to be adjusted in the new profit-sharing ratio.
Necessary cash was to be brought in or paid off to them as the case may be.
Prepare Revaluation Account, Partner’s Capital Account and the Balance Sheet of P, Q and R.

OR

Khushboo, Leela and Meena were partners in a firm sharing profits in the ratio of 5:3:2. Their
Balance Sheet on March 31,2015 was as follows:

Balance Sheet of Khushboo, Leela and Meena

As at March 31, 2015
Liabilities Assets
Creditors 70,000 Bank 44,000
Capitals: Debtors 24,000
Khushboo 90,000 Stock 60,000
Leela 56,000 Buildings 1,40,000
Meena 60,000 2,06,000 Profit & Loss A/c 8,000
2,76,000 2,76,000

On April 1,2015 Leela retired on the following terms:

i. Building was to be depreciated by 10,000.
ii. A Provision of 5% was to be made on Debtors for doubtful debts.
iii. Salary outstanding was 4,800
iv. Goodwill of the firm was valued at 1,40,000.
v. Leela was to be paid 20,800 through cheque and the balance was to be paid in two
equal quarterly installments (starting from June 30,2015) along with interest @ 10% p.a.
Prepare Revaluation Account, Leela’s Capital Account and her Loan Account till it is finally paid.
Solution:

Dr. Revaluation Account Cr.

Particulars LF Particulars LF
To Machinery 4,000 By Buildings 10,000
To Profit Distributed:
P 3,600
Q 2,400 6,000
10,000 10,000

Dr. Partners’ Capital Account Cr.

Particulars P Q R Particulars P Q R
 To Cash A/c 19,200 16,800 By Balance b/d 96,000 68,000
By General
To Balance Reserve 9,600 6,400
c/d 1,08,000 72,000 60,000 By Cash A/c 60,000
By Premium for
Goodwill 18,000 12,000
By Revaluation
A/c 3,600 2,400
1,27,200 88,800 60,000 1,27,200 88,800 60,000

Balance Sheet of P,Q and R

as at April 1, 2015
Liabilities Assets
Creditors 20,000 Building 1,00,000
Capital: Machinery 36,000
P 1,08,000 Cash
Q 72,000 (20,000+60,000+30,000-19,200-16,800) 74,000
R 60,000 2,40,000 Debtors 18,000
Stock 20,000
Furniture 12,000
2,60,000 2,60,000

OR

Dr. Revaluation Account Cr.

Particulars LF Particulars LF
To Buildings 10,000 By Loss Distributed:
To Prov. for Doubtful Khushboo 8,000
Debts 1,200 Leela 4,800
To Salary Outstanding 4,800 Meena 3,200 16,000
16,000 16,000

Dr. Leela’s Capital Account Cr.

Particulars LF Particulars LF
To Profit & Loss A/c 2,400 By Balance b/d 56,000
To Revaluation A/c 4,800 By Khushboo’s Capital 30,000
To Bank A/c 20,800 By Meena’s Capital 12,000
To Leela’s Loan A/c 70,000
98,000 98,000

Dr. Leela’s Loan Account Cr.

Date Particulars LF Date Particulars LF
2015 2015
June30 To Bank A/c 36,750 Apr 1 By Leela’s Capital 70,000
Sep 30 To Bank A/c 35,875 June 30 By Interest 1,750
Sep 30 By Interest 875
72,625 72,625
Q17. Surya Ltd with a Registered capital of 10,00,000 Equity Shares of 10 each, issued 1,00,000 Equity (8)
Shares payable 3 on Application, 2 on Allotment, 3 on First Call and 2 on Second and Final call.
The amount due on Allotment was duly received except from Mr. X holding 6,000 shares. His shares
were immediately forfeited. On the first call being made, Mr. Y holding 5,000 Equity shares paid the
entire balance on his holding. Second call was not made.
Pass the necessary Journal Entries to record the transactions and show how the Share Capital will be
presented in the Balance Sheet of the Company. Also prepare notes to accounts.
OR
a) Nidhi Ltd. Issued 2,000 Shares of 100 each. All the money was received except on 200
shares on which only `90 per share were received. These shares were forfeited and out of
the forfeited shares 100 shares were reissued at 80 each as fully paid up. Pass necessary
Journal entries for the above transactions and prepare the Forfeited Share Account.

b) Complete the following Journal Entries:

Date Particulars L.F Debit Credit
i. -----------------------------……………………Dr ---------------
To------------------------------
To------------------------------
(Being the forfeiture of 1000 shares of 10 each, 8
called up, on which allotment money of 2 and
First Call of 3has not been received.)
ii. -----------------------------……………………Dr ---------------
To------------------------------
To------------------------------
(Being reissue of 1000 forfeited shares fully paid up
at 11 per share)
iii. -----------------------------……………………Dr ---------------
To------------------------------
(Being gain on the reissue of shares transferred to
capital reserve Account)

Sol.
Surya Limited

Journal
Date Particulars L.F Debit Credit

i BankA/c Dr. 3,00,000

To Equity Share Application A/c 3,00,000
(Being the application money received on 1,00,000
shares @ 3 per share received)
ii Equity Share Application A/c 3,00,000
To Equity Share Capital A/c 3,00,000
(Being the application money transferred to Share
Capital A/c)
iii Equity Share Allotment A/c Dr. 2,00,000
To Equity Share Capital A/c 2,00,000
(Being Allotment made due on 1,00,000 Equity
Shares @ 2 per share)
iv. Bank A/c Dr. 1,88,000
Calls in Arrears A/c 12,000
To Equity Share Allotment A/c 2,00,000
(Being the Allotment money received except for
6,000 shares)
v. Equity Share Capital A/c Dr. 30,000
To Share Forfeited A/c 18,000
To Calls in Arrears A/c 12,000
(Being 6,000 shares forfeited for non-payment of
allotment money)
 vi Equity Share First Call A/c Dr. 2,82,000
To Equity Share Capital A/c 2,82,000
(Being First Call made due on 94,000 Equity Shares
@ 3 per share)
vii Bank A./c Dr. 2,92,000
To Equity Share First Call A./c 2,82,000
To Calls in Advance A/c 10,000
(Being the First Call money received on 94,000
Equity Shares @ 3 per share and 2 per share on
5,000 shares received in Advance)

Balance Sheet of Surya Ltd.

as at----------------
Particulars Note No
I EQUITY AND LIABILITIES
1. Shareholder’s Funds 1 7,70,000
Share Capital

Notes to Accounts:

Note No
1 Share Capital
Authorised Share Capital
10,00,000 Equity Shares of 10 each. 1,00,000,000

Issued Share Capital

1,00,000 Equity Shares of 10 each 10,00,000

Subscribed Share capital

Subscribed but not fully paid-up
94,000 equity shares of 10 each, 8 Called up 7,52,000
Add: Share Forfeited Account 18,000 7,70,000

OR
a)

Date Particulars L.F Debit Credit

i Share Capital A/c Dr. 20,000

To Forfeited Share A/c 18,000
To Calls in Arrears A/c 2,000
(Being 200 shares forfeited for non-
payment of call money of 10 per share)
ii Bank A/c Dr. 8,000
Forfeited Share A/c Dr. 2,000
To Share Capital A/c 10,000
(Being 100 shares re-issued for 80 per
share as fully paid up)
iii. Forfeited Share A/c Dr. 7,000
To Capital Reserve 7,000
(Being Allotment made due on 1,00,000
Equity Shares 2 per share)
Forfeited Share Account
Particulars Particulars
To Share Capital A/c (100X20) 2,000 By Share Capital A/c (200X90) 18,000
To Capital Reserve (100X70)
To Balance c/d 7,000
 9,000
18,000 18,000

b)JOURNAL
Date Particulars L.F Debit Credit

I Share Capital A/c Dr 8,000

To Forfeited Share A/c 3,000
To Share Allotment A/c 2,000
To share First Call A/c 3,000
(Being the forfeiture of 1000 shares, `8
called up, on which allotment money of 2
and First Call of 3 has not been received.)
II Bank A/c Dr 11,000
To Share Capital A/c 10,000
To securities Premium Reserve A/c 1,000
(Being reissue of 1000 forfeited shares fully
paid up at 11 per share)
III Share Forfeited A/c Dr 3,000
To Capital Reserve A/c 3,000
(Being gain on the reissue of shares
transferred to capital reserve Account)

PART – B
Option-I
ANAYSIS OF FINANCIAL STATEMENTS

Q18. The patents of X ltd. increased from 3,00,000 in 2013-14 to 3,50,000 in 2014-15.What will be its (1)
treatment while preparing Cash Flow Statement for the year ended 31st March 2015?

Sol. It will be taken as purchase of Patents of 50,000 and will be shown under Cash from Investing
Activities as an outflow of cash.
Q19. Kartik Mutuals, a mutual fund company, provides you the following information: (1)
31st March 2013 31 st March 2014
Proposed Dividend 20,000 15,000

Additional Information:
Equity Share Capital raised during the year 3,00,000
10% bank loan repaid was 1,00,000
Dividend received during the year was 20,000
Find out the cash flow from financing activities.

Sol.
Proceeds from Equity share capital: 3,00,000
Repayment of Bank Loan: (1,00,000)
---------------
2,00,000
Dividend Paid:(20,000)
--------------
1,80,000
 -----------------
Note: Dividend received during the year 20,000 will be shown in the Investing Activities.
Q20. Mudra Ltd. Is in the process of preparing its Balance Sheet as per Schedule III, Part I of the (4)
Companies Act, 2013 and provides its true and fair view of the financial position.
a) Under which head and sub-head will the company show ‘Stores and Spares’ in its Balance
Sheet?
b) What is the accounting treatment of ‘Stores and Spares’ when the Company will calculate its
Inventory Turnover Ratio?
c) The management of Mudra Ltd. wants to analyse its Financial Statements. State any two
objectives of such analysis.
d) Identify the value being followed by Mudra Ltd.

Sol.
a) Head: Current Assets Sub head ; Inventories
b) While calculating Inventory Turnover Ratio it is not included in Inventories
c) Objectives – Assessing the ability of the enterprise to meet its short term and long term
commitments, Assessing the earning capacity of the enterprise
d) Values: Transparency, Honesty, Abiding by law

Q21. a) X Ltd. has a current ratio 3.5:1 and quick ratio of 2:1. If excess of current assets over quick (4)
assets represented by Inventory is 24,000, calculate current assets and current liabilities.
b) From the following information, calculate Inventory Turnover Ratio.
Revenue from Operations: 4,00,000, Average Inventory : 55,000, The rate of Gross Loss
on Revenue from Operations was 10%.
Sol.
a) Current Ratio = 3.5:1
Quick Ratio = 2:1
Let Current Liabilities = x

Current Assets = 3.5x And

Quick Assets = 2x

Inventory = Current Assets – Quick Assets

24,000 = 3.5x – 2x
24,000 = 1.5x

x = Rs.16,000

Current Assets = 3.5x = 3.5 x 16,000 = 56,000

Verification : Current Ratio = Current Assets : Current Liabilities

= 56,000 : 16,000
=3.5:1

Quick Ratio = Quick Assets : Current Liabilities

= 32,000 : 16,000
=2:1

b) Revenue from Operations = 4,00,000

Gross Loss = 10% of 4,00,000 = 40,000

Cost of Revenue from Operations = Revenue from Operations + Gross Loss

= `4,00,000 + `40,000
 = 4,40,000

Inventory Turnover Ratio = Cost of Goods Sold/ Average Inventory

= 4,40,000 / 55,000
= 8 times.
Q22. From the following Statement of profit and loss of the Sakhi Ltd for the years ended 31 st March 2016, (4)
prepare Comparative Statement of Profit & Loss.

STATEMENT OF PROFIT & LOSS

for the years ended 31st March, 2016
Particulars 2014-15 2015-16

Revenue from operations 25,00,000 40,00,000

Expenses:
(a) Employee benefit expenses were 5% of Revenue
from operations
(b) Other expenses 5,90,000 6,80,000
Rate of Tax 35%

Sol. STATEMENT OF PROFIT & LOSS

For the years ended 31st March 2015 & 2016
Particulars 2014-15 2015-16 Absolute %age Change
Change (in `)
Revenue from operations 25,00,000 40,00,000 15,00,000 60
Expenses:
(a) Employee benefit
Expenses 1,25,000 2,00,000 75,000 60
(b) Other expenses 5,90,000 6,80,000 90,000 15.25
Total expenses
7,15,000 8,80,000 1,65,000 23.08

17,85,000 31,20,000 13,35,000 74.79

Profit before tax

Less: Taxes @35% 6,24,750 10,92,000 4,67,250 74.79

Profit after tax 11,60,250 20,28,000 8,67,750 74.79

Q23. Following is the Balance Sheets of Akash Ltd. as at 31-3-2014. (6)

Akash Ltd.
Balance Sheet
PARTICULARS NOTE NO. 2013-14 2012-13

I EQUITY & LIABILITIES

(1) Shareholders’ Funds
(a) Share Capital 15,00,000 14,00,000
(b) Reserves & Surplus 1 2,50,000 1,10,000
(2) Non-Current Liabilities
(a) Long Term Borrowings 2,00,000 1,25,000
(3) Current Liabilities
(a) Short term borrowings 2 12,000 10,000
(b) Trade Payable 15,000 83,000
(c) Short term provisions 3 18,000 11,000
TOTAL 19,95,000 17,39,000
 II (1) Non-Current Assets
(a) Fixed Assets
(i) Tangible assets 4 18,60,000 16,10,000
(ii) Intangible assets 5 50,000 30,000
(2) Current Assets
(a) Current Investments 8,000 5,000
(b) Inventories 37,000 59,000
(c) Trade Receivables 26,000 23,000
(d) Cash & Cash Equivalents 14,000 12,000
TOTAL 19,95,000 17,39,000

Notes to Accounts:-
Note No PARTICULARS 2013-14 2012-13

1 Reserves and Surplus:- 2,50,000 1,10,000

Surplus (balance in Statement of Profit and Loss)

2 Short Term Borrowings 12,000 10,000

Bank overdraft
3 Short term provisions 18,000 11,000
Provision for Tax
4 Tangible Assets
Machinery 20,00,000 17,00,000
Accumulated Depreciation (1,40,000) (90,000)
5 Intangible Assets
Patents 50,000 30,000

Additional Information:
(i) Tax paid during the year amounted to 16,000.
(ii) Machine with a net book value of 10,000 (Accumulated Depreciation 40,000) was
sold for 2,000.

Prepare Cash Flow Statement.

Cash Flow Statement
For the year ended 31st March, 2014
Particulars
I – CASH FLOW FROM OPERATING ACTIVITIES
Surplus: Balance in the Statement of Profit & Loss (closing) 2,50,000
Less: Surplus: Balance in the Statement of Profit & Loss 1,10,000
(beginning)
1,40,000
Add: Provision for Tax 23,000
Net Profit before Tax and Extraordinary Items 1,63,000
Add: Non-Cash and Non-operating Expenses:
Depreciation 90,000
Loss on Sale of Machine 8,000 98,000
2,61,000
Add: Decrease in Current Assets & Increase in Current Liabilities -
Inventories 22,000 22,000
 2,83,000
Less: Increase in Current Assets & Decrease in Current Liabilities
Trade Receivables 3,000
Trade Payables 68,000 71,000
Cash generated from Operating Activities 2,12,000
Less: Income Tax paid (16,000)
Cash Flow From Operating Activities 1,96,000

II – CASH FLOW FROM INVESTING ACTVITIES

Sale Of Machinery 2,000
Purchase of Machinery (3,50,000)
Purchase of Patents (20,000)
Cash Used in Investing Activities (3,68,000)

III – CASH FLOW FROM FINANCING ACTIVITIES

Proceeds form Issue of Share Capital 1,00,000
Proceeds from Long term Borrowings 75,000
Increase in Bank Overdraft 2,000
Cash Flow From Financing Activities 1,77,000

IV – NET INCREASE IN CASH & CASH EQUIVALENTS 5,000

(I+II+III)
V – CASH & CASH EQUIVALENTS IN THE BEGINNING
OF THE YEAR
Current Investments 5,000
Cash & Cash Equivalents 12,000 17,000
VI – CASH & CASH EQUIVALENTS AT THE END OF 22,000
THE YEAR
Current Investments 8,000
Cash & Cash Equivalents 14,000

WORKING NOTES:
Dr. Machinery Account Cr.
PARTICULARS PARTICULARS
To Balance b/d 17,00,000 By Bank A/c (Sale) 2,000
To Bank A/c (purchase) By Loss on Sale of Machinery A/c
3,50,000 By Depreciation A/c 8,000
By Balance c/d 40,000
20,00,000
20,50,000 20,50,000

Dr. Accumulated Depreciation Account Cr.

PARTICULARS PARTICULARS
 To Machinery A/c 40,000 By Balance b/d 90,000
(sold Asset) By Statement of Profit & Loss
To Balance c/d 90,000
1,40,000
1,80,000 1,80,000

Dr. Provision for Tax Account Cr.

PARTICULARS PARTICULARS
To Bank A/c (Tax paid) 16,000 By Balance b/d 11,000
To Balance c\/d By Statement of profit & Loss
18,000 23,000
34,000 34,000

PART – B
Option-II
Computerised Accounting

18. While navigating in the workbook, which of the following commands is used to move to the beginning (1)
of the Current row:
a. [ctrl] + [home]
b. [page up]
c. [Home]
d. [ctrl] + [Back space]

Sol: (c)
19. Join line in the context of Access table means: (1)
a. Graphical representation of tables between tables
b. Lines bonding the data within table
c. Line connecting two fields of a table
d. Line connecting two records of a table

Sol: (b)
20. Enumerate the basic requirements of computerized accounting system for a business organization. (4)

Sol: The computerized accounting is one the database-oriented applications wherein the transaction
data is stored in well-organized database. The user operates on such database using the required
interface and also takes the required reports by suitable transformations of stored data into
information. Therefore, the fundamentals of computerized accounting include all the basic
requirements of any database-oriented application in computers.

Accounting framework…………………………………………… [2]

It is the application environment of the computerized accounting. A healthy accounting framework in
terms of accounting principles, coding and grouping structure is a pre-condition for any computerized
accounting system.

Operating procedure…………………………………………........ [2]

A well-conceived and designed operating procedure blended with suitable operating environment of
the enterprise is necessary to work with the computerized accounting system.

21. The generation of ledger accounts is not a necessary condition for making trial balance in a (4)
computerized accounting system. Explain.

Sol: In computerized accounting system, every day business transactions are recorded with the help of
computer software. Logical scheme is applied for codification of account and transaction. Every
account and transaction is assigned a unique code. The grouping of accounts is done from the first
stage. [Briefly explaining what is account groups and hierarchy of ledger.] The hierarchy of ledger
accounts is maintained and the data is transferred into Ledger accounts automatically by the computer.
In order to produce ledger accounts the stored transaction data is processed to appear as classified so
 that same is presented in the form of report. The preparation of financial statements is independent of
producing the trial balance.

22. Internal manipulation of accounting records is much easier in computerized accounting than in manual (4)
accounting. How?

Sol: Internal manipulation of accounting records is much easier in computerized accounting due to the
following:
i. Defective logical sequence at the programming stage
ii. Prone to hacking
23. Computerisation of accounting data on one hand stores voluminous data in a systematic and organized (6)
manner whereas on the other hand suffers from threats of vulnerability and manipulations. Discuss the
security measures you would like to employ for securing the data from such threats.

Sol: Every accounting software ensures data security, safety and confidentiality. Therefore every,
software should provide for the following:
 Password Security: Password is a mechanism, which enables a user to access a system
including data. The system facilitates defining the user rights according to organization
policy. Consequently, a person in an organization may be given access to a particular set of a
data while he may be denied access to another set of data.
 Data Audit: This feature enables one to know as to who and what changes have been made in
the original data thereby helping and fixing the responsibility of the person who has
manipulated the data and also ensures data integrity. Basically, this feature is similar to
Audit Trial.
 Data Vault: Software provides additional security through data encryption
- -

- -
 ACCOUNTANCY (055)

CLASS-XII (2016-17)

BLUE PRINT

S.No. Typology of Questions 1 mark 3 marks 4 marks 6 marks 8 marks Total

Question Question Question Question Question
1 Remembering 4,5,18 8 11 13 - 6

2 Understanding 1,3 - 12,20 15 16 6

3 Application - 7,9 21,22 23 - 5

4 HOTS 2,19 - - 14 17 4

5 Evaluation 6 10 2

Total 1(8) 3(4) 4(5) 6(4) 8(2) 80(23)