CBSE Accountancy Solution

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  • Thanks for providing the paper. If you want English sample papers of Class 10 Punjab a look on CBSE Solved Sample Papers for Class 12 Accountancy this will sure help you to guide about the type of question asked in the Exam.
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  • 1. Studymate Solutions to CBSE Board Examination 2012-2013 Series : SKS/1 Code No. 67/1/1 Candidates must write the Code onRoll No. the title page of the answer-book.  Code number given on the right hand side of the question paper should be written on the title page of the answer-book by the candidate.  Please check that this question paper contains 25 questions.  Please write down the Serial Number of the questions before attempting it.  15 minutes time has been allotted to read this question paper. The question paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the student will read the question paper only and will not write any answer on the answer script during this period. ACCOUNTANCY[Time allowed : 3 hours] [Maximum marks : 80]General Instructuions:(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 parts B and C.(iv) All parts of the questions should be attempted at one place. 1 P.T.O.
  • 2. STUDYmate Accountancy Class XII PART-A (Accounting for Partnership Firms and Companies)1. When the partner capitals are fixed, where the drawings made by a partner will be recorded?Ans. Partners Current Accounts2. State the ratio in which the partners share profits or losses on revaluation of assets and liabilities, when there is a change in profit sharing ratio amongst existing partners?Ans. Old ratio3. Name the account which is opened to credit the share of profit of the deceased partner, till the time of his death to his Capital account.Ans. Profit & Loss Suspense A/c4. Give the journal entry to distribute ‘Workman Compensation Reserve’ of ` 60,000 at the time of retirement of Sajjan, when there is no claim against it. The firm has three partners Rajat, Sajjan and Kavita.Ans. Journal Date Particulars LF Debit (`) Credit (`) Workman Compensation Reserve A/c Dr. 60,000 To Rajat’s Capital A/c 20,000 To Sajjan’s Capital A/c 20,000 To Kavita’s Capital A/c 20,000 (Being workman compensation reserve distributed among partner in their profit ratio (equal))5. What is meant by ‘Securities Premium’?Ans. Securities Premium refers to the price charged by a company other and above the face value of shares.6. What rate of interest the company pays on calls - in advance if, it has not prepared its own Articles of Association?Ans. Since company has not prepared its articles Table A of companies Act, 1956 is applicable according to which interest on calls in advance is payable at 6% p.a.7. What is meant by issue of debentures as a collateral security?Ans. Issue of debentures as collateral security refers to issue of debentures as secondary security over and above the primary security. Collateral security can be realized only when the principal security fails to meet the liability. 2 P.T.O.
  • 3. STUDYmate Accountancy Class XII8. Mona, Nisha and Priyanka are partners in a firm. They contributed ` 50,000 each as capital three years ago. At that time Priyanka agreed to look after the business as Mona and Nisha were busy. The profits for the past three years were ` 15,000, ` 25,000 and ` 50,000 respectively. While going through the books of accounts Mona noticed that the profit had been distributed in the ratio of 1 : 1 : 2. When she enquired from Priyanka about this, Priyanka answered that since she looked after the business she should get more profit. Mona disagreed and it was decided to distribute profit equally retrospectively for the last three years. (a) You are required to make necessary corrections in the books of accounts of Mona, Nisha and Priyanka by passing an adjustment entry. (b) Identify the value which was not practiced by Priyanka while distributing profits.Ans. (a) Journal Date Particulars LF Debit (`) Credit (`) Priyanka’s Capital A/c Dr. 15,000 To Mona’s Capital A/c 7,500 To Nisha’s Capital A/c 7,500 (Being adjustment made) Partners Capital A/c’s Dr. Cr. Particular Mona Nisha Priyanka Amount to be created to Partner’s Capital A/c 30,000 30,000 30,000 (–) Amount already credited to Partner’s Capital A/c 22,500 22,500 45,000 +7,500 (Cr.) +7,500 (Cr.) –15,000 (Dr.) (b) Values: Integrity, Honesty9. Pass the necessary journal entries for issue of 1,000, 7% Debentures of ` 100 each in the following cases: (a) Issued at 5% premium redeemable at a premium of 10%. (b) Issued at a discount of 5% redeemable at par.Ans. (a) Journal Date Particulars LF Debit (`) Credit (`) Bank A/c Dr. 1,05,000 To Debenture Application A/c 1,05,000 (Being application money of ` 105 received on 1000 shares) Debenture Application A/c Dr. 1,05,000 Loss on issue of Debenture A/c Dr. 10,000 To 7% Debenture A/c 1,00,000 To Premium on redemption of Debentures 10,000 To Securities Premium Reserve A/c 5,000 (Being 1000 debentures issued at 5% premium redeemable at 10% premium) 3 P.T.O.
  • 4. STUDYmate Accountancy Class XII (b) Journal Date Particulars LF Debit (`) Credit (`) Bank A/c Dr. 95,000 To Debenture Application A/c 95,000 (Being application money received) Debenture Application A/c Dr. 95,000 Discount on issue of Debentures A/c Dr. 5,000 To 7% Debenture A/c 1,00,000 (Being 1000 debenture issued at 5% discount redeemable at par)10. Taneja Constructions Ltd. has an outstanding balance of ` 5,00,000, 7% debentures of ` 100 each redeemable at a premium of 10%. According to the terms of redemption, the company redeemed 30% of the above debentures by converting them into shares of ` 50 each at a premium of 20%. Record the entries for redemption of debentures in the books of Taneja Constructions Ltd.Ans. Journal Date Particulars LF Debit (`) Credit (`) 7% Debentures A/c Dr. 1,50,000 Premium on redemption of Debentures A/c Dr. 15,000 To Debenture holders A/c 1,65,000 (Being debentures due for redemption) Debenture holders A/c Dr. 1,65,000 To Share Capital A/c 1,37,500 To Securities Premium Reserve A/c 27,500 (Being shares issued to debentures holders)11. Abhay and Beena are partners in a firm. They admit Chetan as a partner with 1/4th share in the profits of the firm. Chetan brings ` 2,00,000 as his share of capital. The value of the total assets of the firm is ` 5,40,000 and outside liabilities are valued at ` 1,00,000 on that date. Give the necessary entry to record goodwill at the time of Chetan’s admission. Also show your working notes.Ans. Combined Capital of Abhay & Beena = ` 5,40,000 – ` 1,00,000 = ` 4,40,000 (A) Capital of the firm on the basis of Chetan’s Share 4 = ` 2,00,000 × = ` 8,00,000 1 (B) Actual Capital of Abhay, Beena & Chetan = ` 4,40,000 + ` 2,00,000 = ` 6,40,000 Goodwill = ` 8,00,000 – ` 6,40,000 = ` 1,60,000 4 Chetan’s Share of goodwill = ` 1,60,000 × = ` 40,000 1 4 P.T.O.
  • 5. STUDYmate Accountancy Class XII Journal Date Particulars LF Debit (`) Credit (`) Cash/Bank A/c Dr. 2,00,000 To Chetan’s Capital A/c 2,00,000 (Being Capital brought in by Chetan) Chetan’s Capital/Current A/c Dr. 40,000 To Abhay’s Capital A/c 20,000 To Beena’s Capital A/c 20,000 (Being adjustment of goodwill)12. Naresh, David and Aslam are partners sharing profits in the ratio of 5 : 3 : 7. On April 1st 2012, Naresh gave a notice to retire from the firm. David and Aslam decided to share future profits in the ratio of 2 : 3. The adjusted capital accounts of David and Aslam show a balance of ` 33,000 and ` 70,500 respectively. The total amount to be paid to Naresh is ` 90,500. This amount is to be paid by David and Aslam in such a way that their capitals become proportionate to their new profit sharing ratio. Pass necessary journal entries for the above transactions in the books of the firm. Show your working clearly.Ans. Total Capital of the new firm = ` 33,000 + ` 70,500 + ` 90,500 = ` 1,94,000 2 David’s Share in capital = ` 1,94,000 × = ` 77,600 5 2 Aslam’s Share in Capital = ` 1,94,000 × = 1,16,400 5 Journal Date Particulars LF Debit (`) Credit (`) Cash A/c Dr. 90,500 To David’s Capital A/c 44,600 To Aslam’s Capital A/c 45,900 (Being Cash brought in by David & Aslam) Naresh’s Capital A/c Dr. 90,500 To Cash A/c 90,500 (Being amount paid to Naresh)13. Madhav Ltd. issued fully paid equity shares of ` 80 each at a discount of ` 5 per share for the purchase of a running business from Gupta Bros. for a sum of ` 15,00,000. The assets and liabilities consisted of the following: Plant ` 5,00,000; Trucks ` 7,00,000; Stock ` 3,00,000; Machinery ` 6,00,000 and Sundry Creditors ` 5,00,000. You are required to pass necessary journal entries for the above transactions in the books of Madhav Ltd. 5 P.T.O.
  • 6. STUDYmate Accountancy Class XIIAns. Journal Date Particulars LF Debit (`) Credit (`) Plant A/c Dr. 5,00,000 Trucks A/c Dr. 7,00,000 Stock A/c Dr. 3,00,000 Machinery A/c Dr. 6,00,000 To Sundry Creditors 5,00,000 To Gupta Bros. 15,00,000 To Capital Reserve 1,00,000 (Being Assets & Liabilities acquired) Gupta Bros. A/c Dr. 15,00,000 Discount on issue of Share’s A/c Dr. 1,00,000 To Share Capital A/c 16,00,000 (Being Shares issued) 15,00,000 Number of shares to be issued = = ` 20,000 Shares 7514. The authorized capital of Suhani Ltd. is ` 45,00,000 divided into 30,000 shares of ` 150 each. Out of these company issued 15,000 shares of ` 150 each at a premium of ` 10 per share. The amount was payable as follows: ` 50 per share on application, ` 40 per share on allotment (including premium), ` 30 per share on first call and balance on final call. Public applied for 14,000 shares. All the money was duly received. Prepare an extract of Balance Sheet of Suhani Ltd. as per Revised Schedule VI Part - I of the Companies Act 1956 disclosing the above information. Also prepare ‘notes to accounts’ for the same.Ans. Balance Sheet of Suhani Ltd. as on _____ as per Schedule VI Part-I Particulars Note No. Amount (`) I. Equity & Liabilities (1) Shareholder’s Funds (a) Share Capital 1 21,00,000 (b) Reserves & Surplus 2 1,40,000 (c) Money received against share warrants Note 1. Authorized Share Capital 30,000 Shares of ` 150 each 45,00,000 Issued Share Capital 15,000 Shares of ` 150 each 22,50,000 Subscribed Share Capital 14,000 Shares of ` 150 each 21,00,000 Called up & Paid up Share Capital 14,000 Shares of ` 150 each 21,00,000 6 P.T.O.
  • 7. STUDYmate Accountancy Class XII Note 2. Reserves & Surplus Securities Premium Reserve 1,40,00015. Ali, Bimal and Deepak are partners in a firm. On 1st April, 2011 their capital accounts stood at ` 4,00,000, ` 3,00,000 and ` 2,00,000 respectively. They shared profits and losses in the proportion of 5 : 3 : 2. Partners are entitled to interest on capital @ 10% per annum and salary to Bimal and Deepak @ ` 2,000 per month and ` 3,000 per quarter respectively as per the provisions of the partnership deed. Bimal’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of ` 50,000 p.a. Any deficiency arising on that account shall be met by Deepak. The profits of the firm for the year ended 31st March, 2012 amounted to ` 2,00,000. Prepare Profit & Loss Appropriation Account for the year ended on 31st March, 2012.Ans. Profit & Loss Appropriation A/c Dr. For the year ended 31.03.2012 Cr. Particulars Amount (`) Particulars Amount (`) To Interest on capital By Net Profit 2,00,000 Ali 40,000 Bimal 30,000 Deepak 20,000 90,000 To Partner’s salaries Bimal 24,000 Deepak 12,000 36,000 To Partner’s capital A/c Ali 37,000 Bimal 22,000 (+) Def. from Deepak 2,000 24,200 Deepak 14,800 (–)Def. to Bimal 2,000 12,800 2,00,000 2,00,00016. The Balance Sheet of Sudha, Rahim and Kartik who were sharing profit in the ratio of 3 : 3 : 4 as on 31st March, 2012 was as follows: Liabilities Amount (`) Assets Amount (`) General Reserve 10,000 Cash 16,000 Bills Payable 5,000 Stock 44,000 Loan 12,000 Investments 47,000 Capitals: Land & Building 60,000 Sudha 60,000 Sudha’s Loan 10,000 Rahim 50,000 Kartik 40,000 1,50,000 1,77,000 1,77,000 7 P.T.O.
  • 8. STUDYmate Accountancy Class XII Sudha died on June 30th 2012. The partnership deed provided for the following on the death of a partner: (a) Goodwill of the firm be valued at two years purchase of average profits for the last three years. (b) Sudha’s share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2012 amounted to ` 4,00,000 and that from 1st April to 30th June 2012 to ` 1,50,000. The profit for the year ended 31st March, 2012 was ` 1,00,000. (c) Interest on capital was to be provided @ 6% p.a. (d) The average profits of the last three years were ` 42,000. (e) According to Sudha’s will, the executors should donate her share to “Matri Chhaya - an orphanage for girls”. Prepare Sudha’s Capital Account to be rendered to her executor. Also identify the value being highlighted in the question.Ans. Dr. Sudha’s Capital A/c Cr. Amount Amount Particular Particular (`) (`) To Sudha’s Executors A/c 1,10,350 By balance b/d 60,000 By Sudha’s Loan A/c 10,000 By General Reserve 3,000 By P & L Suspense A/c 11,250 By Interest on Capital 900 By Rahim’s Capital A/c 10,800 By Kartik’s Capital A/c 14,400 1,10,350 1,10,350 Calculation of Sudha’s Share in profits 1,00,000 Profit % =  100 = 25% 4,00,000 25 3 Sudha’s Share = 1,50,000   = ` 11,250 100 10 Valuation of Goodwill Goodwill = ` 42,000 × 2 = ` 84,000 3 Sudha’s Share of goodwill = ` 84,000 × = ` 25,200 1017. Moneyplus Company issued for public subscription 75,000 shares of the value of ` 10 each at a discount of 10% payable as follows: ` 2 per share on application, ` 3 per share on allotment and ` 4 per share on call. The company received applications for 1,50,000 shares. The allotment was done as under: (a) Applicants of 15,000 shares were allotted 5,000 shares. (b) Applicants of 70,000 shares were allotted 40,000 shares. (c) Remaining applicants were allotted 30,000 shares. 8 P.T.O.
  • 9. STUDYmate Accountancy Class XII Money in excess to allotment was returned. Hari, a shareholder who had applied for 3,500 shares out of group B failed to pay allotment and call money. Rohan, a shareholder who was allotted 3,000 shares paid the call money along with the allotment. Rohan also belonged to group B. Pass necessary journal entries to record the above transactions in the books of the company. Show your working notes clearly. OR Record the journal entries for forfeiture and reissue of shares in the following cases: (a) X Ltd. forfeited 20 shares of ` 10 each, ` 7 called up on which the shareholder had paid application and allotment money of ` 5 per share. Out of these, 15 shares were re-issued to Naresh as ` 7 per share paid up for ` 8 per share. (b) Y Ltd. forfeited 90 shares of ` 10 each, ` 8 called up issued at a premium of ` 2 per share to ‘R’ for non-payment of allotment money of ` 5 per share (including premium). Out of these, 80 shares were re-issued to Sanjay as ` 8 called up for ` 10 per share. (c) Z Ltd. forfeited 300 shares of ` 10 each issued at a discount of ` 1 per share for non- payment of first and final call of ` 3 per share. Out of these 200 shares were reissued at ` 3 per share fully paid up.Ans. Journal Date Particulars LF Debit (`) Credit (`) Bank A/c Dr. 3,00,000 To Share Application A/c 3,00,000 (Being application money received) Share Application A/c Dr. 3,00,000 To Share Capital A/c 1,50,000 To Share Allotment A/c 1,45,000 To Bank A/c 5,000 (Being Share application money adjusted) Share Allotment A/c Dr. 2,25,000 Discount on issue of Share A/c Dr. 75,000 To Share Capital A/c 3,00,000 (Being Being allotment money due) Bank A/c Dr. 78,200 Calls in Arrears A/c Dr. 3,000 To Share Allotment A/c 80,000 To Calls in Advance A/c 1,200 (Being allotment money received) Share First & Final Calls A/c Dr. 3,00,000 To Share Capital A/c 3,00,000 (Being share first & final call due) Bank A/c Dr. 2,90,800 Calls in Advance A/c Dr. 1,200 To Share First & Final Call A/c 2,92,000 (Being Share Ist & Final Call money received) 9 P.T.O.
  • 10. STUDYmate Accountancy Class XII OR Journal Date Particulars LF Debit (`) Credit (`) (a) Share Capital A/c Dr. 140 To Calls in Arrears A/c 40 To Share Forfeiture A/c 100 (Being 20 Shares forfeited) Bank A/c Dr. 120 To Share Capital A/c 105 To Securities Premium Reserve A/c 15 (Being 15 Shares re-issued) Share Forfeiture A/c Dr. 75 To Capital Reserve A/c 75 (Being Amount of Share forfeiture transferred to capital Reserve A/c) (b) Share Capital A/c Dr. 720 Securities Premium Reserve A/c Dr. 180 To Share Allotment A/c 450 To Share Forfeiture A/c 450 (Being Shares forfeited) Bank A/c Dr. 800 To Share Capital A/c 640 To Securities Premium Reserve A/c 160 (Being Shares re-issued) Share Forfeiture A/c Dr. 400 To Capital Reserve A/c 400 (Being Amount of Share forfeiture transferred to capital Reserve A/c) (c) Share Capital A/c Dr. 3,000 To Discount on issue of Share A/c 300 To Share First & Final Call A/c 900 To Share Forfeiture A/c 1,800 (Being Shares forfeited) Bank A/c Dr. 600 Discount on issue of Share A/c Dr. 200 Share Forfeiture A/c Dr. 1,200 To Share Capital A/c 2,000 (Being Shares re-issued) Share Forfeiture A/c Dr. NIL To Capital Reserve A/c NIL 10 P.T.O.
  • 11. STUDYmate Accountancy Class XII18. Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1. Since both of them are specially abled, sometimes they find it difficult to run the business on their own. Gauri, a common friend decides to help them. Therefore, they admitted her into partnership for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital. At the time of Gauri’ s admission, the Balance Sheet of Sahaj and Nimish was as under: Liabilities Amount (`) Assets Amount (`) Capitals: Machinery 1,20,000 Sahaj 1,20,000 Furniture 80,000 Nimish 80,000 2,00,000 Stock 50,000 General Reserve 30,000 Sundry Debtors 30,000 Creditors 30,000 Cash 20,000 Employee’s Provident Fund 40,000 3,00,000 3,00,000 It was decided to : (a) Reduce the value of stock by ` 5,000. (b) Depreciate furniture by l0% and appreciate machinery by 5%. (c) ` 3,000 of the debtors proved bad. A provision of 5% was to be created on Sundry Debtors for doubtful debts. (d) Goodwill of the firm was valued at ` 45,000. Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm. Identify the value being conveyed in the question. OR Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Inspite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Prachi was deputed to realise the assets and pay the liabilities. She was paid ` 1,000 as commission for her services. The financial position of the firm was as follows: Liabilities Amount (`) Assets Amount (`) Creditors 10,000 Furniture 37,000 Investment Fluctuation Fund 4,500 Stock 5,500 Capitals: Investments 15,000 Prachi 40,000 Cash 9,000 Ritika 30,000 Ishita’s Capital 18,000 84,500 84,500 Following was agreed upon: Prachi took over investments for ` 12,500. Stock and furniture realized ` 41,500. There was old furniture which has been written off completely from the books. Ritika agreed to take away the same at the price of ` 3,000. Compensation paid to the employees amounted to ` 8,000. This liability was not provided in the above Balance Sheet. Realization expenses amounted to ` 1,000. Prepare Realisation Account, Partners’ Capital Accounts and Cash A/c to close the books of the firm. Also identify the value being conveyed in the question. 11 P.T.O.
  • 12. STUDYmate Accountancy Class XIIAns. Revaluation A/c Dr. Cr. Particular Amount (`) Particular Amount (`) To Stock A/c 5,000 By Machinery A/c 6,000 To Furniture A/c 8,000 By Loss on Revaluation To Debtors 3,000 Sahaj 7567 To Provision for Bad debts 1,350 Nimish 3,783 11,3500 17,350 17,350 Partners Capital A/c’s Dr. Cr. Particular Sahaj Nimish Gauri Particular Sahaj Nimish Gauri To Revaluation A/c 7,567 3,783 – By bal. b/d 1,20,000 80,000 – To Bal. c/d 1,42,433 91,217 77,883 By Gen. Reserve A/c 20,000 10,000 – By Premium A/c 10,000 5,000 – By Cash A/c 77,883 1,50,000 95,000 77,883 1,50,000 95,000 77,883 Balance Sheet as on _______________ Amount Amount Liabilities Assets (`) (`) Capital A/c’s Machinery 1,26,000 Sahaj 1,42,433 Furniture 72,000 Nimish 91,217 Stock 45,000 Gauri 77,883 3,11,533 Debtors 30,000 Creditors 30,000 (–) Bad Debts 3,000 Employee’s Provident Fund 40,000 27,000 (–) Provision 1,350 25,650 Cash 1,12,883 3,81,533 3,81,533 Values: Equal opportunity and respect for disabled. ORAns. Realization A/c Dr. Cr. Particular Amount (`) Particular Amount (`) To Sundry Assets By Sundry Liabilities Furniture 37,000 Creditors 10,000 Stock 5,500 Investment Investments 15,000 57,500 Fluctuation Fund 4,500 14,500 To Cash A/c By Prachi’s Capital A/c Creditors 10,000 (Investment) 12,500 Compensation 8,000 18,000 By Cash (Stock & Furniture) 41,500 To Prachi’s Capital A/c (Expense) 1,000 By Ritika’s Capital A/c 3,000 By Loss on Realisation Prachi 2,500 Ritika 1,500 Ishita 1,000 5,000 76,500 76,500 12 P.T.O.
  • 13. STUDYmate Accountancy Class XII Dr. Partners Capital A/c’s Cr. Particular Prachi Ruchi Ishita Particular Prachi Ruchi Ishita To Bal. b/d 18,000 By bal. b/d 40,000 30,000 To Realization A/c 12,500 3,000 By Realisation A/c 1,000 To Realisation A/c By Cash A/c 19,000 (loss) 2,500 1,500 To Cash A/c 26,000 25,500 1,000 41,000 30,000 19,000 41,000 30,000 19,000 Cash A/c Amount Amount Liabilities Assets (`) (`) To Balance b/d 9,000 By Realisation A/c 18,000 To Realisation A/c 41,500 By Prachi’s Capital A/c 26,000 To Ishita’s Capital A/c 19,000 By Ritika’s capital A/c 25,500 69,500 69,500 Values: Safety, Pollution control, Commitment to community. PART-B (Financial Statements Analysis)19. Under which type of activity will you classify ‘Dividend received by a finance company’ while preparing Cash Flow Statement?Ans. Operating Activity20. What is meant by ‘Cash from operating activities’ ?Ans. Cash flow from operating activities implies cash inflow/outflow from principal revenue generating activities of an enterprise.21. State anyone objective of Financial Statements Analysis.Ans. To measure the earning capacity or To ascertain Profitability/Solveney or To make comparative study with other firms.22. Under what heads and sub-heads the following items will appear in the Balance Sheet of a company as per revised Schedule VI, Part - I of Companies Act 1956. (i) Premium on redemption of Debentures (ii) Loose tools (iii) Balances with banks 13 P.T.O.
  • 14. STUDYmate Accountancy Class XIIAns. Items Heading Subheading (i) Premium on redemption of Non Current Liabilities Other non-current liabilities Debentures (ii) Loose Tools Current Assets Inventories (iii) Balance with banks Current Assets Cash & Cash equivalents23. (a) Compute ‘Working Capital Turnover Ratio’ from the following information: Cash Sales ` 1,30,000; Credit Sales ` 3,80,000; Sales Returns ` 10,000; Liquid Assets ` 1,40,000; Current Liabilities ` 1,05,000 and Inventory ` 90,000. (b) Calculate ‘Debt Equity Ratio’ from the following information: Total Assets ` 3,50,000; Total Debt ` 2,50,000 and Current Liabilities ` 80,000.Ans. (a) Working Capital turnover ratio Net Sales = Net Working Capital Net Sales = (Cash Sales + Credit Sales) – Sales return = ` 1,30,000 + ` 3,80,000 – ` 10,000 = ` 5,00,000 Current Assets = Liquid Assets + Inventory = ` 1,40,000 + ` 90,000 = ` 2,30,000 Current liabilities = ` 1,05,000 Working Capital = Current Assets – Current Liabilities = ` 2,30,000 – ` 1,05,000 = ` 1,25,000 5,00,000 Working Capital turnover ratio = = 4 times 1,25,000 Long term debts (b) Debt equity ratio = Shareholders funds Long term debts = Total debts – Current Liabilities = ` 2,50,000 – ` 80,000 = ` 1,70,000 Shareholders funds = Total Assets – Total debts = ` 3,50,000 – ` 2,50,000 = ` 1,00,000 1,70,000 Debts equity ratio = = 1.7 1,00,000 14 P.T.O.
  • 15. STUDYmate Accountancy Class XII24. From the following Statement of Profit and Loss of Suntrack Ltd., for the years ended 31st March 2011 and 2012, prepare a ‘Comparative Statement of Profit & Loss’. Particulars Note No. 2011-12 (`) 2010-11 (`) Revenue from operations 20,00,000 12,00,000 Other Income 12,00,000 9,00,000 Expenses 13,00,000 10,00,000Ans. Comparative Profit & Loss A/c (of Sinatreak Ltd. For year ended 31-3-11 & 31-3-12) Note 2011-12 2010-11 Absolute % Particulars No. (`) (`) Charge (`) Charge I. Revenue from operations 20,00,000 12,00,000 8,00,000 40% II. Add other Incomes 12,00,000 9,00,000 3,00,000 25% III. Total revenue (I + II) 32,00,000 21,00,000 11,00,000 34.37% IV. Less Expenses 13,00,000 10,00,000 3,00,000 23.07% Net Profit before tax (III – IV) 19,00,000 11,00,000 8,00,000 42.10%25. Following is the Balance Sheet of Wisben Ltd. as on 31st March 2012: Particulars Note No. 2012 (`) 2011 (`) I. Equity & Liabilities : (1) Shareholders Funds (a) Share capital 7,00,000 6,00,000 (b) Reserves and Surplus (Profit & Loss Balance) 2,00,000 1,10,000 (2) Non-Current Liabilities Long term borrowings 3,00,000 2,00,000 (3) Current Liabilities Trade Payables 30,000 25,000 Total 12,30,000 9,35,000 II. Assets: (1) Non-Current Assets (a) Fixed assets Tangible Assets 11,00,000 8,00,000 (2) Current Assets (a) Inventories 70,000 60,000 (b) Trade Receivables 32,000 40,000 (c) Cash and Cash equivalents 28,000 35,000 Total 12,30,000 9,35,000 15 P.T.O.
  • 16. STUDYmate Accountancy Class XII Adjustments : During the year a piece of machinery of the book value of ` 80,000 was sold for ` 65,000. Depreciation provided on tangible assets during the year amounted to ` 2,00,000. Prepare a Cash Flow Statement.Ans. Cash Flow statement (Indirect method) of Wisben Ltd. As on 31-3-12 (as per AS-3 reserved) Particulars Debits (`) Amount (`) A. Cash Flows from operating Activities: Profit before tax 90,000 Adjustments for : Add : Depreciation on Machinery 2,00,000 Loss on sale of Machinery 15,000 Operating profit belong working capital changes 3,05,000 Changes in working capital: Add: Decrease in trade receivables 8,000 Income in Trade Payables 5,000 Less: Increase in inventories (10,000) Net Cash from operating activities 3,08,000 B. Cash Flows from investing Activities: Sales of Machinery (W.N. 1) 65,000 Purchase of Machinery (W.N. 1) (5,80,000) Net Cash used in investing Activities (5,15,000) C. Cash flows from financing Activities: Issue of Share Capital 1,00,000 Long term borrowings 1,00,000 Net Cash inflow from financing Activities 2,00,000 Net Cash inflow during the year (7,00) Add: Cash equivalents in beginning 35,000 Cash equivalents at end 28,000 Working Notes: Dr. Fixed Assets A/c Cr. Particulars ` Particulars ` To Balance b/d 8,00,000 By Depreciation A/c 2,00,000 To Bank A/c By Bank A/c 65,000 (Purchase of Assets) 5,80,000 By P & L A/c (Loss on sale) 15,000 (Balancing Figure) By Balance c/d 11,00,000 13,80,000 13,80,000 16 P.T.O.
  • 17. STUDYmate Accountancy Class XII PART-C (Computerised Accounting)19. State anyone advantage of ‘Computerized Accounting System’.20. Name anyone DBMS software which processes the data in flexible manner.21. What is meant by Relational Database?22. Differentiate between generic and tailored software packages on any three bases.23. Explain the method of ‘Codification’.24. What is DBMS? Explain its two advantages.25. Calculate the formula on Excel for computing the amount of (a) Dearness Allowance (b) Net Salary (c) Tax Payable from the following information: (a) For Dearness Allowance, Basic Salary upto ` 40,000 at 20% and at 25% above it. (b) For Net Salary, adding Dearness Allowance to Basic Pay. (c) For Tax payable at a uniform rate of 30%. ***** 17 P.T.O.
  • 18. STUDYmate Accountancy Class XII Studymate Solutions to CBSE Board Examination 2012-2013Series : SKS/1 Code No. 67/1/2 UNCOMMON QUESTION ONLY8. Pass the necessary journal entries for the issue of debentures in the following cases: [3] (a) ` 30,000, 12% debenture of ` 100 each issued at a discount of 5% redeemable at par. (b) ` 60,000, 12% debenture of ` 100 each issued at a discount of 5% redeemable at ` 105.Sol. (a) Journal Date Particulars L.F. Debit (`) Credit (`) Bank A/c Dr. 28,500 To Debenture Application A/c 28,500 (Being Application money received) Debenture Application A/c Dr. 28,500 Discount on issue of Debentures A/c Dr. 1,500 To 12% Debentures A/c 30,000 (Being debentures issued at a discount of 5%) (b) Date Particulars L.F. Debit (`) Credit (`) Bank A/c Dr. 57,000 To Debenture Application A/c 57,000 (Being Application money received) Denture application Dr. 57,000 Loss on issue of Debentures A/c Dr. 6,000 To 12% Debentures A/c 60,000 To Premium on Redemption A/c 3,000 (Being debentures issued at a redeemable of premium of 5%)10. Dhara Construction Ltd. Had an outstanding balance of ` 7,50,000, 8% debentures of ` 150 each redeemable at a premium of 5%. According to the terms of redemption, the company redeemed 25% of the above debentures by converting them into shares of ` 10 each at a premium of 50%. Record the entries for redemption of debentures in the books of Dhara Construction Ltd. [3] 18 P.T.O.
  • 19. STUDYmate Accountancy Class XIISol. (a) Journal of Dhara Constructions Date Particulars L.F. Debit (`) Credit (`) 8% Debentures A/c Dr. 1,87,500 Premium on redemption A/c Dr. 9,375 To Debenture holders A/s 1,96875 (Being debentures & premium on redemption due to debenture holder) Debenture holders A/c Dr. 1,96,875 To Share Capital A/c 1,31,250 To Securities Premium reserve A/c 65,625 (Being 13,25 shares of ` 10 each issued at a premium of ` 5 per share) Working note No. 1 1,96,875 Numbers of Share =  13,125 share . 15 19 P.T.O.
  • 20. STUDYmate Accountancy Class XII Studymate Solutions to CBSE Board Examination 2012-2013Series : SKS/1 Code No. 67/1/3 UNCOMMON QUESTION ONLY9. Pass the necessary journal entries for the issue of debentures in the following case: (a) ` 40,000, 12% debentures of ` 100 each issued at a premium of 5% redeemable at par. (b) ` 70,000, 12% debentures of ` 100 each issued at a premium of 5% redeemable at ` 110.Sol. Journal Date Particulars L.F. Debit (`) Credit (`) (a) Bank A/c Dr. 42,000 To Debenture Application & Allotment A/c 42,000 (Being debenture application money received) Debenture Application & Allotment A/c Dr. 42,000 To 12% Debentures A/c 40,000 To Securities Premium Reserve A/c 2,000 (Being debenture issued at premium, redeemable at par.) (b) Bank A/c Dr. 73,500 To Debenture Application & Allotment A/c 73,500 (Being Debenture application money received) Debenture Application & Allotment A/c Dr. 73,500 Loss on issue of Debenture A/c Dr. 7,000 To 12% Debenture A/c 70,000 To Securities Premium Reserve A/c 3,500 To Premium on issue of Debenture A/c 7,000 (Being debentures redemption at premium & redeemable at premium)10. Forex Construction Ltd. Has an outstanding balance of ` 22,00,000, 9% debentures of ` 100 each redeemable at a premium of 15%. According to the terms of redemption, the company redeemed 40% of the above debentures by converting them into shares of ` 10 each at a premium of 60%. Record the entries for redemption of debentures in the books of Forex Construction Ltd. 20 P.T.O.
  • 21. STUDYmate Accountancy Class XIISol. Journal Date Particulars L.F. Debit (`) Credit (`) 9% Debenture A/c Dr. 8,80,00 Premium on Redemption of Debenture A/cDr. 1,32,000 To Debenture A/c 10,12,000 (Being amount due to debenture holders) Debenture holder A/c Dr. 10,12,000 To Share Capital A/c 6,32,500 To Securities Premium A/c 3,79,500 (Being share issued) No. of Shares to be issued `10,12,000  `63,250 Shares. `1615. Asgar, Chaman and Dholu are partners in a firm. Their capital accounts stood at ` 6,00,000; ` 5,00,000 and ` 4,00,000 respectively on 1st April, 2011. They shared profits and losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ 7,000 per month and ` 10,000 per quarter respectively as per the provision of the partnership deed. Dholu’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of ` 1,10,000 p.a. Any deficiency arising on the account shall be met by Asgar. The profits for the year ended 31st March, 2012 amounted to ` 4,24000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2012. [6]Sol. P & L Appropriation Account Dr. for the year ended 31.03.2012 Cr. Particulars Amount (`) Particulars Amount (`) To Int. on Capital By Net Profit 4,20,000 Asgar 48,000 Chaman 40,000 Dholu 32,000 1,20,000 To Partner’s salary Chaman 84,000 Dholu 40,000 1,24,000 To Partner’s capital A/c Asgar 78,222 (-) Def. to Dholu 11,333 66,889 Chaman 39,111 Dholu 58,667 (+) Def.from Asgar 11,333 70,000 4,20,000 4,20,000 21 P.T.O.
  • 22. STUDYmate Accountancy Class XII16. The Balance Sheet of Sadhna, Mohit and Rohit who were sharing profits in the ratio of 1 : 2 : 3 as on 31st March 2012 was as follows: [6] Liabilities Amount (`) Assets Amount (`) General Reserve 60,000 Cash 36,000 Bills Payable 20,000 Stock 85,000 Loan 24,000 Investments 58,000 Capital : Sadhna : 75,000 Land & Building 2,20,000 Mohit : 1,00,000 Rohit’s loan 30,000 Rohit : 1,50,000 3,25,000 4,29,000 4,29,000 Rohit died on September 1st , 2012. The partnership deed provided for the following on the death of partner: (a) Goodwill of the firm be valued at two yeas purchase of average profits for the last three years. (b) Rohit’s share of profit or loss till the date of death was to be calculated on the basis of sales. Sales for the year ended 31st Mach, 2012 amounted to ` 6,00,000 and that from 1st April to 1st September 2012 to 3,50,000. The profit for the year ended 31st March, 2012 was calculated as ` 1,50,000. (c) Interest on capital was to be provided @ 8% p.a. (d) The average profits of the last three years were ` 72,000. (e) According to Rohit’s will, the executors should donate her share to ‘Matri Chaya-an orphanage for girls’. Prepare Rohit’s Capital Account to be rendered to her executor. Also identify the value being highlighted in the question.Ans. Dr. Rohit’s Capital Account Cr. Particulars Amount Particulars Amount To Rohit’s Executors A/c 3,30,750 By Bal. b/d 1,50,000 By Rohit’s Loan 30,000 By General Reserve 30,000 By Int. on Capital 5,000 By P & L Suspense A/c 43,750 By Sadhna’s Capital A/c 24,000 By Mohit’s Capital A/c 48,000 3,30,750 3,30,75019. Under which type of activity will you classify ‘Refund of Income Tax received’ While preparing the Cash Flow Statement? [1]Sol. Operating Activity. 22 P.T.O.
  • 23. STUDYmate Accountancy Class XII20. State with reason whether ‘Purchase of fixed asset on long term deferred payment’ would result in inflow, outflow or no flow of cash. [1]Sol. No. flow of cash since both the aspects in this transaction are long term. (If in case any down payment or installment is paid during the year there will be outflow to the extent of payment made).21. State one advantage of Financial Statements Analysis. [1]Sol. Helpful in assessing the earning capacity OR Judging the managerial efficiency.22. Under what heads and sub-heads the following items with appear in the Balance Sheet of a company as per revised schedule VI Part-I of the Companies Act 1956. (i) Mining Rights (ii) Encashment of employees earned leave payable on retirement (iii) Vehicles. [3]Sol. No. Items Headings Subheading (i) Mining Rights Fixed Assets Intangible Assets (ii) Encasement of employees Long term borrowings Long term provision earned leave (iii) Vehicles Fixed Assets Tangible ***** 23 P.T.O.