SAMPLE PAPER- 9 (unsolved)

ACCOUNTANCY
Class XII
Time allowed: 3 hours

Maximum Marks: 80

General Instructions:
1. This question paper contains Two parts A& B.
2. Both the parts are compulsory for all.
3. All parts of questions should be attempted at one place.
4. Marks are given at the end of each question.

Question Paper Designed by : Dr. Vinod Kumar

Book recommended by author : ULTIMATE BOOK OF ACCOUNTANCY
Publisher : Vishvas Publications (09216629576, 09256657505)
Dr. Vinod Kumar is Author of Ultimate Book of Accountancy and a great name in the field of accountancy

Part A
Partnership, Share Capital and Debentures
1. Why is it necessary to have partnership deed?
(a) To settle the dispute among the partners
(b) To share the profits equally
(c) To admit the new partner
(d) To retire a partner from the firm

(1)

2. State any two circumstances in which sacrificing ratio may be applied.

(a) When there is change in existing ratio and when new partner is admitted
(b) When new partner is admitted and when there is no goodwill given in old B/s
(c) When a partner retires and when calculating profit for a deceased partner
(d) Only in case of admission of a partner

(1)

3. A and B are partners in a firm having no partnership deed. X desires that Y should not participate in the
conduct of firms business but Y does not agree to this.
State giving reason who is correct in this case.
(1)
(Hint: Y is correct, as per section 12 (a) of Indian Partnership Act, 1932 every partner is entitled to
participate in the conduct of firms business when there is no partnership deed)
4. Debenture Account is a _____
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Temporary Account

(1)

5. How will you show amount of calls in arrear and calls in advance in Balance Sheet?

(1)

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6. Kavita and Simran are partners sharing profits and losses in the ratio of 1 : 1. Kavita is a non-working partner ,
and contributes Rs.60,000 as his capital. Simran is a working partner and agreed to work (overtime) for the firm.
The partnership deed provides for interest on capital @10% p.a. and Salary to every working partner @ Rs.3,000
p.a. The profit of the firm before charging anything was Rs.6,000. Prepare P/L Appropriation A/c. (3)

(Hint: Kavita Rs.4,000 and Simran Rs.2,000)

7. X Ltd. purchased its own debentures of Rs.100 each of the face value of Rs.20,000 from the open
market for cancellation at Rs.92. Record necessary journal entries.
(3)
8. X Limited decided to redeem Rs.25,000, 12% Debentures. It purchased Rs.20,000 debentures in the
open market at Rs.98.50 each, the expenses being Rs.100 and redeemed the balance of Rs.5,000
debentures by draw of lots. Journalise.
(3)
9. A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. On 31st December 2006 their
Balance Sheet was as follows:
Amount
Liabilities
Amount Assets
Creditors
Bills Payable
Provident Fund
Investment Fluctuation Fund
Advance Commission
Capitals :
A
80,000
B
50,000
C
30,000

65,000
20,000
12,000
6,000
8,000

1,60,000
2,71,000

Cash
Debtors
Stock
Investment
Plant
Profit & Loss A/c

22,500
52,300
36,000
15,000
91,200
54,000

2,71,000

On this date the firm was dissolved. A was appointed to realise the assets. A was to receive
5% commission on the sale of assets (except cash) and was to bear all expenses of realisation.
A realised assets as follows:
Debtors Rs.30,000; Stock Rs.26,000; Investment 75% of book value; Plant Rs.42,750. Expenses of
realisation were Rs.4,100.
Commission received in advance was returned to the customers after deducting Rs.3,000. Firm had to pay
Rs.7,200 for outstanding salary not provided for earlier. Compensation paid to employees amounted to
Rs.9,800. This liability was not provided for in the above balance sheet Rs.2,500 and to be paid for
provident fund.
Prepare Realisation A/c, Partners Capital A/cs and Cash A/c.
(6)
(Hint: Realisation Loss Rs.1,11,000; Final payment to C Rs.2,500 ; Cash brought by A Rs.1,100 and B
Rs.5,000; Cash A/c Total Rs.1,38,600)

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10. Smith and Steve are partners in a firm. The partnership agreement provided that interest on drawings
was to be charged @ 6 % per annum. Smith had withdrawn the following amounts during the year ended
31 December 2010:
1 January 2010
Rs.30,000
31 March 2010
Rs.20,000
30 June 2010
Rs.40,000
30 September
Rs.15,000
31 October 2010
Rs.25,000
Calculate interest on Smiths Drawings.
(4)
( Hint : Interest on Smiths Drawings Rs.4,225)
11. Akhil, Nikhil and Sunil are partners sharing profits and losses equally. Their Balance Sheet as on 31st
December 1992 was as follows:
Liabilities
Amount Assets
Amount
Creditors
General Reserve
Capitals :
Akhil
19,500
Nikhil
12,000
Sunil
8,000

4,000 Buildings
4,500 Plant and Machinery
Stock
Sundry Debtors
Cash at Bank
39,500
48,000

20,000
8,000
3,500
8,000
8,500
48,,000

Sunil died on 1st May 1993. Their partnership deed provided that the executor of a deceased partner was
entitled to:
(i) Balance of partners capital account and his share of General Reserve.
(ii) Share of goodwill calculated on the basis of three times the average profits of the last four years.
(iii) Share of profit from the closure of the last accounting year till the date of death on the basis of the
profit of the preceding completed year before death.
(iv) Interest on capital @6% per annum.
Rs.5,000 was to be paid to the deceased partners executor immediately and the balance to be kept in his
loan account.
Profit and losses for the preceding years were:
1989 Rs.8,000 (Profit); 1990 Rs.10,000 (Loss); 1991 Rs.12,000 (Profit); 1992 Rs.18,000 (Profit). Pass
necessary journal entries and prepare Sunils Capital A/c and Sunils Executors A/c.
(6)
(Hint: Amount due to Sunils Executors A/c Rs.18,660)
12. Vinod Limited is registered with an authorised capital of Rs.2,00,000 divided into 20,000 Equity
Shares of Rs.10 each. The company offered 16,000 shares for subscription to the public, out of which
15,000 shares were subscribed for Rs.6 per share were called and received except a call of Rs.2 per share
on 200 shares. Show the share capital of the company in Balance Sheet as per the Revised Schedule VI of
the Companies Act, 1956.
(4)
13. J.P. Limited purchased Building costing Rs.70,00,000 from M/s Construction Limited. The Company
paid Rs.20,50,000 by cheque and for the balance issued equity shares of Rs.100 each in favour of M/s
Construction Limited. Pass necessary journal entries in the books of J.P. Limited for the purchase of
building and making payment if shares were issued
(a) at 10% discount and (b) at a premium of 25%.
(4)
(Hint: Discount Rs.5,50,000; Premium Rs.4,50,000)

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14. (a) X, Y and Z are partners in a firm. Their capital accounts stood at Rs.15,000; Rs.7,500 and
Rs.7,500 respectively on January 1, 1996:
(i) Z was to be allowed a remuneration of Rs.1,500 per annum
(ii) Interest at 5% per annum was to be provided on capital
(iii) Profits were to be divided in the ratio of 2:2:1.
Ignoring the above terms, the net profit of Rs.9,000 for the year ended 1996 was divided among the
partner equally. Pass an adjustment entry to rectify the error. Show your working clearly.
(Hint: Dr. Y Rs.225; Cr. X Rs.150; Cr. Z Rs.75)
(b) A and B are partners in a firm. A is to get a commission of 10% of Net Profit before charging any
commission. B is to get a commission of 10% on Net Profit after charging all commissions. Net profit
before charging any commission was Rs.55,000. Find out the commission of A and B. Show your working
clearly.
(6)

15. Mobile Limited was registered with an authorized capital of Rs.10,00,000 divided in Rs.10 per equity
share, of these 30,000 equity shares issued as fully paid to the vendor for the purchase of building. 40,000
Equity shares were subscribed for by the public and during the first year Rs. 5 per equity share were
called up, payable Rs. 2 on application, Rs. 1 on allotment, Rs. 1 on first call and Rs. 1 on second call. The
amounts received in respect of these shares were:
On 30,000 equity shares the full amount called.
On 6,250 shares Rs. 4 per equity share.
On 2,500 shares Rs. 3 per equity share.
On 1,250 shares Rs. 2 per equity share.
The directors forfeited 3,750 equity shares on which less than Rs.4 per equity share had been paid. Give
Journal entries to record the above.
(8)
(Hint : Share Forfeiture Account Rs.10,000)
OR
Fukrey Limited invited applications for 10,000 Equity Shares of Rs.10 each for public subscription. The
amount was payable as follows:
On Application Rs.1; On Allotment Rs.2; On First Call Rs.3; Second Call Rs.4.
All amounts payable on applications, allotment and calls have been duly received with following
exceptions:
A who hold 100 shares failed to pay the money on allotment and calls.
B to whom 50 shares have been allotted failed to pay the money on first & final call.
C who holds 30 shares, has not paid the amounts due on final call.
The share of A , B and C were forfeited.
Pass journal entries.
(Hint : Share Forfeiture Account Rs.430)
16. PK and SK were partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet on 31.3.2001
was as follows:
Liabilities
Amount Assets
Amount
Bank overdraft
20,000 Cash
8,000
30,000 Debtors
30,000
Creditors

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Provision for bad debts

General reserve
VKs Loan
Capitals :
PK
1,00,000
SK
1,80000

1,000 Bills Receivable

15,000 Stock
20,000 Building
Land

40,000
50,000
90,000
1,48,000

2,80,000
3,66,000
3,66,000
On 1.4.2001 they admitted VK as new partner on the following conditions:
(a) VK will get 1/8th share in the profits of the firm.
(b) VKs loan will be converted into his capital.
(c) The goodwill of the firm was valued at Rs.80,000 and VK brought his share of goodwill as premium in
cash.
(d) Provision for bad debts was to be made equal to 5% of the debtors.
(e) Stock was to be depreciated by 5% and Land was to be appreciated by 10%.
Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet.
(8)
(Hint: Revaluation Profit Rs.11,800; Balance Sheet Rs.3,88,300)
OR
E, F and G were partners in a firm sharing profits in the ratio of 3:1:1. On 31.3.2004, their Balance Sheet
was as follows:
Liabilities
Amount Assets
Amount
Creditors
90,000 Bank
31,000
30,000 Debtors
Bills Payable
70,000
68,000
Capitals :
Less: Provision 2,000
E
1,50,000
Stock
80,000
F
1,00,000
Building
2,70,000
G
99,000
3,49,000 Goodwill
20,000
4,69,000
4,69,000
On the above date F retired on the following terms:
(a) Building was to be appreciated by 10%.
(b) 10% provision for doubtful debts was to be made on sundry debtors.
(c) Creditors Rs.10,000 will not be claimed.
(d) There was an outstanding bill for repairs of Rs.2,000.
(e) Goodwill of the firm was valued at Rs.75,000.
(f) F was to be paid Rs.20,000 in cash and balance was to be transferred to his loan account.
Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet.
(Hint: Revaluation Profit Rs.30,000; Balance Sheet Rs.4,51,000)

Part B
Financial Statement Analysis
18. What do you mean by financial analysis?

(1)

19. Assuming that the Current Ratio is 2:1, state giving reason whether the ratio will improve, decline or
will have no change in case a Bill Receivable is dishonoured.
(1)

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(Hint: No change)
20. Where will you record Dividend Received and Interest received on Investment by a manufacturing
company while preparing Cash Flow Statement?
(1)
(Hint: Investing Activity).
21. Give major heads and sub heads under which following items will be disclosed in the Balance Sheet as per
Revised Schedule VI of the Companies Act, 1956:
(a) Work in progress
(b) Interest Accrued on Investments
(c) Stores and Spare Parts

(3)

(d) Trademarks
(e) Office Equipment
(f) General Reseve

22. . Prepare Common Size Balance Sheet from the following:

Particulars

Note
No.

I. EQUITY AND LIABILITIES

(1) Shareholders Funds
(a) Share capital
(b) Reserve and Surplus
(2) Non-current Liabilities
(a)Long term borrowings
(3) Current Liabilities
Trade payables : Creditors

(4)
31st March
2013

30,00,000
4,00,000
10,00,000

Total
II. Assets
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
(2) Current Assets
(a) Inventories
(b) Trade receivables

6,00,000
50,00,000

30,00,000
6,00,000
10,00,000
4,00,000
Total

50,00,000

23. (a) Calculate Stock Turnover Ratio from the following information:

(4)

Sales Rs.2,00,000; Gross Profit 25%; Opening Stock was 1/4th of the value of closing stock.
Closing Stock was 40% of sales.
(b) A business has current ratio of 4 : 1 and a quick ratio of 1.2:1. If the working capital is Rs.1,80,000, calculate the
total current assets and stock.
(Ans. (a) Stock Turnover Ratio 3 Times (b) Current Assets Rs.2,40,000 and Stock Rs.1,68,000)

24. From the following information prepare Cash Flow Statement:

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(6)

Particulars

Note
No.

I. Equity and Liabilities

1. Shareholders Funds
(a) Share Capital
(b) Reserves and Surplus
General Reserve
Statement of Profit & Loss
2. Non-current Liabilities
Long-term Borrowings : Mortgage Loan
3. Current Liabilities
(a) Trade Payables (Creditors)
(b) Short Term Provision : Tax Provision
Total
II Assets
1. Non-current Assets
(a) Fixed Assets:
(i) Tangible Assets : Machinery
(b) Non-current Investments
2. Current Assets
(a) Inventories
(b) Trade Receivables (Debtors)
(b) Cash and Cash Equivalents
Total

31st March
2013 (Rs.)

31st March
2014 (Rs.)

9,00,000

9,00,000

6,00,000
1,12,000

6,20,000
1,36,000

---

5,40,000

3,36,000
1,50,000
20,98,000

2,68,000
20,000
24,84,000

8,00,000
1,00,000

6,40,000
1,20,000

4,80,000
4,20,000
2,98,000
20,98,000

4,20,000
9,10,000
3,94,000
24,84,000

Additional Information:
(a) Investments costing Rs.16,000 were sold during the year 2013-14 for Rs.17,000.
(b) Provision for Tax made during the year Rs.18,000.
(c) Dividend paid during the year Rs.80,000.
(d) During the year a part of fixed assets costing Rs.20,000 sold for Rs.24,000. The profit was included in the
Statement of Profit & Loss.

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