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Do you want 100% Marks with less
effort Prepare the Following YSA Paper for YOU.?
Class – XII
Accountancy
Maximum Marks: 80 Time allowed : 3 hrs.
General Instructions:
(i) This question paper contains three parts A, B and C
(ii) Part A is compulsory for all
candidates.
(iii) Candidates can attempt only one
part of the remaining Part B and C.
(iv) All parts of a question should be
attempted at one place.
PART-A
PARTNERSHIP AND COMPANY ACCOUNTS
NOTE: All theoretical questions of this paper are fully
solved and practical questions are unsolved.
Q.1. Amit and Sonu are
partners sharing profits equally. Amit withdrew Rs. 1,000
p.m. regularly on the first day of every month for personal
expenses. If interest on drawings is to be charged @ 5%
p.a., calculate the interest on the drawings of Amit. 2
Ans. Rs. 325
Q.2. State the provision of
Section 78 of Companies Act 1956, regarding the uses of
Security Premium Amount. 2
Ans. Provisions of Section 78 of
Companies Act 1956 regarding the uses of Security Premium :
(a) In paying up unissued securities of
the company to be issued to members of the company as fully
paid bonus securities.
(b) To write off Preliminary expenses of
the Company.
(c) To write off the expenses of or
commission paid or discount allowed on any of the securities
of the company.
(d) To pay premium on the redemption of
preference shares or debentures of the company.
Q.3. How is Share Capital
shown in the Company’s Balance Sheet as per Section 211
Schedule VI part I of Company’s Act 1956? 2
Ans.
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Liabilities
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Amount
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Share Capital:
- Authorised Capital
- Issued Capital
- Subscribed Capital
and Called up Capital
Less: Calls unpaid
Add: Forfeited Shares
(Amount originally paid up)
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Q.4. Excel Ltd. issued 4,00,000 9% Debentures of
Rs. 50 each, payable on application, Pass journal entries at
the time of following situations.
(i) Issued at par redeemable at 10%
Premium 2
(ii) Issued at 5% discount, redeemable
at 10% premium
Q.5. What is Partnership? List any three main
characteristics of Partnership. 3
Ans. Meaning of Partnership :
The relation between persons who have
agreed to share the profit of a business carried on by all
or any one of them acting for all.
Characteristics (any three):
1. Two or more persons
2. Agreement between the Partners
3. Business
4. Sharing of Profits
5. Business carried on by all or any one
of them acting for all
Q.6. What is meant by debentures? Name any four
types of debentures. 3
Ans. Meaning of Debentures :
Debenture is an instrument of debt owed
by a Company. As an acknowledgement of debt, such
instruments are issued under the seal of a Company and duly
signed by authorised signatory.
Types of Debentures (any four)
(i) Secured;
(ii) Unsecured;
(iii) Redeemable;
(iv) Perpetual;
(v) Convertible;
(vi) Non-convertible;
(vii) Zero coupon rate;
(viii) Specific rate;
Q.7. What is meant by
revaluation of assets and reassessment of liabilities on the
reconstitution of the firm? What purpose does it serve at
the time of reconstitution of partnership? 4
Ans. At the time of reconstitution of a
Firm the present value of the Assets maybe different from
their book value and the same condition may be with the
liabilities. Hence a revaluation of Assets and reassessment
of Liabilities becomes necessary to adjust the profit or
loss on revaluation in the Capital Accounts of the old
Partners in their old profit sharing ratio.
The main purpose of revaluing assets and
re-assessing the liabilities is that a partner who gains on
account of such a change should compensate the other
partner(s) who are expecting loss in their profit share in
future.
Q.8. Ram and Shyam share the
profits equally. They decided to dissolve their firm. Their
liabilities were : Ram’s Capital Rs. 25,000; Shyam’s
Capital Rs. 30,000; Creditors Rs. 12,500; Bills payable
Rs.7,500; Assets of the firm realized Rs.1,00,000. Prepare a
Realization Account. 4
Ans. Sundry Assets Rs. 75,000; Profit on
Realisation Rs. 25,000
Q.9. J.M.D.Ltd. Issued 2 Lakh 5% Debenture of Rs.
100 each at a discount of 6% on
April 1, 1999
redeemable as under :
80,000 debenture on
March 31, 2001
,
40,000 debenture on
March 31, 2002
, and remaining debenture on
March 31, 2003
.
Ascertain out the amount of discount to
be written off in each of the years still the debenture are
paid. Also prepare discount on issue of debenture account. 4
Q.10. Ganeshan Ltd. has 800 lakhs 10% debenture
of Rs. 100 each due for redemption n
March 31, 2003
. Assume that Debenture Redemption Reserve has a balance of
Rs. 3,40,00,00,000 on that date. Record necessary entries at
the time of redemption of debenture.
Q.11. Swati Detergents Ltd. issued 90,00,000, 6%
debenture of Rs. 100 each redeemable after 4 years by
converting them into equity shares of Rs. 10 each. Record
journal entries for issue and redemption of debenture.
Ignore entries for payment of interest. 4
Q.12. A and B are partners sharing profits as
2:1. Following is their Balance Sheet as on
December 31, 2001
:
Balance Sheet of A and B as on
Dec 31, 2001
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Liabilities
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Amount
(Rs.)
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Assets
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Amount
(Rs.)
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Creditors
A's Capital 18,000
B's Capital 17,000
Reserve
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10,000
35,000
6,000
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Cash in Hand and at
Bank
Debtors
Stock
Land and Building
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1,000
10,000
20,000
20,000
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Total
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51,000
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Total
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51,000
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On
January 1, 2002
, C is admitted into partnership for 1/4th share on the
following terms :
a. That he should bring in Rs. 15,000 as
his capital and Rs. 6,000 as premium for his share of
goodwill
b. That land and building be revalued at
Rs. 25,000 and stock at Rs. 18,500
c. That Rs. 500 be provided for doubtful
debts
d. That after the above adjustments, the
capital of the old partners be adjusted on the basis of the
new partner's capital, having regard to profit sharing
ratio. Excess or shortage will be adjusted through actual
cash.
Record necessary journal entries and
prepare Capital Accounts and new Balance Sheet of the
partners. 6
Ans. Profit on Revaluation : Rs. 3,000
Balance of Capital Account : A : Rs.
30,000. B : Rs. 15,000
A will bring Rs. 2,000, B will withdraw
Rs. 7,000
Total of Balance Sheet = Rs. 70,000
Q.13. The Balance Sheet of
Bora, Singh and Ibrahim sharing profits in the ratio of
3:2:1, respectively stood as follows on
June 30, 2002
.
Balance Sheet of Bora, Singh and Ibrahim
as at
June 30, 2002
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Liabilities
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Amount
(Rs.)
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Assets
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Amount
(Rs.)
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Creditors
Joint Life Policy Reserve
Reserve Fund
Bora Rs.30,000
Singh Rs.20,000
Ibrahim Rs.10,000
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50,400
10,000
12,000
60,000
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Cash
Stock
Debtors
Investment
Furniture
Buildings
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3,700
20,100
62,600
16,000
6,500
23,500
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Total
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1,32,400
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Total
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1,32,400
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The firm was dissolved as on that date.
For the purpose of dissolution, the investment were valued
at Rs.18,000 and stock at Rs. 17,500. Bora agreed to take
over Investment and Singh to take over stock. Ibrahim took
over the furniture at book value. Debtors and Buildings
realized Rs. 57,000 and Rs. 25,000 respectively. Expenses of
realization amounted to Rs. 450.
In addition, one bill for Rs. 500 under
discount was dishonoured and had to be taken up by the firm.
Prepare the necessary ledger accounts to
close the books of the firm. 6
Ans. Loss on Realization : Rs. 5,650.
OR
Pass necessary Journal entries for the following
transactions, at the time of dissolution of the firm:
1. Realisation Expenses Rs.
3000 paid.
2. Realisation Expenses paid
Rs. 2000, Mr. ‘X’ one of the partners has to bear these
expenses.
3. ‘Y’, one of the
partners, took over a machine for Rs. 20,000.
4. ‘Z’ one of the
partners agreed to take over the creditor of Rs. 30,000 for
Rs. 20,000.
5. ‘A’ one of the
partners has given loan to the firm of Rs. 10,000. It was
paid back to him at the time of dissolution.
6. Profit and Loss Account
balance of Rs. 50,000 appeared on the assets side of the
Balance Sheet.
Q.14. Kalinga Steel Tubes Limited issued a
prospectus inviting applications for 2,00,000 Equity shares
of Rs. 10 each at a premium of Rs. 2.50 per share payable as
follows :
With Application Rs. 2.50
On Allotment (including premium) Rs. 5
On First Call Rs. 2.50
On Second Call Rs. 2.50
Applications were received for 3,00,000
shares and allotment was made on pro-rata basis. Money
overpaid on applications was adjusted to the amount due on
allotment.
Kanta, to whom 400 shares were allotted,
failed to pay the allotment money and the first call, her
shares were forfeited after the first call.
Shameem, to whom 600 shares were
allotted, failed to pay the two calls and hence his shares
were forfeited.
Of the shares forfeited, 800 shares were
reissued to Mary credited as fully paid for Rs. 9 per share,
the whole of Kanta's shares being included.
Record journal entries in the books of
the Company to record the above transactions relating to
share capital and present the relevant items in the Balance
Sheet. 6
Ans. Capital Reserve Rs. 2,700.
Q.15. The Balance Sheet of A, B and C who were
sharing profits in the ratio of 5:3:2, is given below as at
March 32, 2003:
Balance Sheet of A, B and C as at
March 31, 2003
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Liabilities
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Amount
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Assets
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Amount
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Capitals:
A 7,20,000
B 4,15,000
C 3,45,000
Reserve Fund
Sundry Creditors
Outstanding Expenses
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14,80,000
1,80,000
1,24,000
16,000
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Land
Buildings
Plant and Machinery
Furniture and Fittings
Stock
Sundry Debtors
Cash in Hand
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4,00,000
3,80,000
4,65,000
77,000
1,85,000
1,72,000
1,21,000
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18,00,000
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18,00,000
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B retires on the above date and the
following adjustments are agreed upon his retirement:
(a) Stock was valued at Rs.
1,72,000.
(b) Furniture and fittings
were under valued by Rs. 3000.
(c) An amount of Rs. 10, 000
due from Mr. D. was doubtful and a provission for the same
was required.
(d) Goodwill of the firm was
valued at Rs. 2,00,000 but it was decided not to show
goodwill in the books of accounts.
(e) B was paid Rs. 40,000
immediately on retirement and the balance was transferred to
his loan Account.
(f) A & C were to share
future profits in the ratio of 3:2.
Prepare Revaluation Account, Capital
Account and Balance Sheet of the reconstituted firm. 8
OR
P, Q and R were Partners sharing profits
in the ratio of 3:1:1. The balance sheet of the firm is
given below as at
March 31, 2002
.
Balance Sheet of P, Q and R as at
March 31, 2002
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Liabilities
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Amount
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Assets
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Amount
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Capitals:
P 6,03,300
Q 4,12,800
R 2,01,900
General Reserve
S. Creditors
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12,18,000
10,000
62,000
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Land
Buildings
Plant and Machinery
Furniture and Fittings
Stock
Sundry Debtors
Cash at Bank
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2,80,000
3,40,000
2,48,000
48,000
1,09,000
1,32,000
1,33,000
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12,90,000
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12,90,000
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Partnership deed provides for the
settlement of claim on death of a partner in addition to his
capital as under:
(i) The share of profit of deceased
partner to be computed on the basis of average profits of
the past three years for the period from the last balance
sheet to date of death of the partner.
(ii) His share in profit / loss on
revaluation of assets and reassessment of liabilities.
(iii) His share of Goodwill valued on
the basis of two years purchase of last three average
profits.
Q died on June 1, and the following
information is provided:
(a) Profits for the last
three years were:
Rs. 80,000, Rs. 1,30,000 and Rs.
1,50,000
(b) The assets were revealed as Land Rs.
3,80,000 Plant and Machinery Rs. 1,80,000.
(c) Q withdrew Rs. 10,000 during the
current financial year.
(d) Rs. 1, 00,000 was paid immediately
on Q’s death to his executors and the balance amount was
to be paid later.
Pass the Journal entries to give effect
to the transactions relating to death of Q in the books of
the firm.
PART B
ANALYSIS OF FINANCIAL STATEMENTS
Q.16. What are two major
inflow and two major outflows of cash from investing
activities? 2
Ans. Inflows of cash from Investing
Activities (any 2 of the following)
(i)
Sale
of fixed assets.
(ii)
Sale
of investments
(iii) Repayment of advances and loans
made to third parties
Outflows of Cash from Investing
Activites (any 2 of the following)
(i) Purchase of fixed Assets
(ii) Purchase of Investments
(iii) Advances and Loans made to third
parties.
Q.17. Mutual Fund Company
receives a dividend of Rs. 25 lakhs on its investments in
other Company’s shares. Why is it a cash inflow from
operating activities for this Company? 2
Ans. The Mutual Fund Company is a
Finance Company. The Dividend received by it on the shares
held in other companies is its revenue income. Therefore the
dividend received by this company is cash inflow from
operating activities.
Q.18. What is meant by
financial analysis? Mention only two tools used for
financial analysis. 3
Ans. Financial Analysis is a Systematic
process of the critical examination of the financial
information contained in the financial statements in order
to understand and make decisions regarding the operations of
the firm.
The tools used for financial analysis
are as follows : (any two)
a) Comparative statements
b) Common-size statements
c) Trend Analysis
d) Ratio Analysis
e) Cash flow Analysis
Q.19. The Current Assets of
a company are Rs. 1,26,000 and the current Ratio is 3:2 and
the inventories are Rs. 2000. Find out the Liquid Ratio. 3
Q.20. Inventory Turnover
Ratio is 3 times. Sales are Rs. 1,80,000, Opening Stock is
Rs. 2000 more than the closing stock. Calculate the opening
and closing stock when goods are sold at 20% profit on cost.
4
Q.21. The net profit of a
company before tax is Rs. 12,50,000 as on
March 31, 2003
, after considering the following:
Depreciation on Fixed Assets Rs. 25,000
Goodwill written off Rs. 15,000
Loss on sale of Machine Rs. 12,000
The current assets and current
liabilities of the company in the beginning and at the end
of the year were as follows :
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March 31, 2002
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March 31, 2003
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Bills Receivables
Bills Payables
Debtors
Stock in hand
Outstanding Expenses
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25,000
10,000
30,000
18,000
8,000
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15,500
12,500
38,800
14,000
7,000
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Calculate Cash flow from operating
activities. 6
OR
Q.22. Prepare Cash Flow Statement of Rose Ltd.
from the following information for the year ended
March 31, 2004
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Particulars
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March 31, 2003
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March 31, 2004
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Investments
Fixed Assets (at Cost)
Equity Share Capital
Long Term Loan
Cash
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1,80,000
2,10,000
10,00,000
8,00,000
64,000
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2,40,000
4,00,000
14,00,000
4,50,000
44,000
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Additional Information
i. Cash Flows from operating
Activities after tax and extraordinary items Rs. 3,80,000/-
ii. Depreciation on Fixed
Assets Rs. 85,000/-
iii. Interest received Rs.
45,000/-
iv. Dividend paid during the
year Rs. 1,60,000/-
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