SAMPLE PAPER- 3 (solved)

ACCOUNTANCY
Class XII

Solution
1. Yes it can be done only if partners have agreed that one or more of them shall not be liable for
losses.
2. The main purpose of debiting capital account is to reduce his capital for the asset taken over by
him.
3. (i) Efficiency of Management (ii) Quality of Goods or Products
4. Securities Premium cannot be used as working capital. According to Section 77 A and 78 of the
Companies Act, 1956, Securities Premium can be utilised only for the specific purposes mentioned
under these sections.
5. It is a charge against the profits because it will be paid whether there is profit or loss.
6. Journal
Sundry Assets A/c Dr.
Goodwill A/c (Bal. Fig)
To Liabilities A/c
To Fukrey Limited

8,40,000
40,000

Fukrey Limited
To 12% Debentures A/c
To Securities premium

8,00,000

80,000
8,00,000

6,40,000
1,60,000

No. of debentures issued = 8,00,000/125 = 6,400

7. Journal
Bank A/c Dr.
To Cs Capital A/c
To Ds Capital A/c
To Premium for goodwill

6,30,000

Premium for goodwill Dr.

To As Capital A/c
To Bs Capital A/c

80,000

2,75,000
2,75,000
80,000

64,000
16,000

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

8. Journal
2014
March 31

Statement of Profit and Loss Dr.

To Debenture Redemption Reserve

2,00,000

8% Debentures A/c Dr.

To Debenture holders A/c

80,00,000

Debenture holders A/c Dr

To Bank

80,00,000

Debenture Redemption Reserve

To General Reserve

40,00,000

2,00,000

80,00,000

80,00,000

40,00,000

9. Journal
Share Capital A/c Dr.
To Share Forfeiture A/c
To Share 1st Call A/c
To Discount on issue of shares

7,000

Bank A/c Dr.

Discount on issue of shares
Share Forfeiture A/c
To Share Capital

2,000
400
400

Bank A/c Dr.

Discount on issue of shares
Share Forfeiture A/c
To Share Capital

4,200
600
1,200

Share Forfeiture A/c Dr.

To Capital Reserve

2,400

2,800

6,000

2,400

10. Profit & Loss Appropriation Account

Particulars
Amount
To Interest on capital:
DKs Current A/c
EKs Current A/c
FKs Current A/c
To Salary:
FKs Current A/c
To Profit transferred to:
DKs Current A/c
EKs Current A/c
FKs Current A/c

4,000
2,000
1,000

1,00,000
1,40,000
1,60,000

Particulars
By Profit b/d
By Interest on drawings:
DKs Current A/c
EKs Current A/c

Amount
7,00,000
8,800
9,000

2,40,000
19,450
27,230
31,120
7,17,800

7,17,800

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

11. Revaluation Account

Particulars
To Provision for doubtful debts
To Stock
To Furniture
To Provision for out.damages
To Profit transferred to:
A
B
C

Amount

Particulars

1,000
1,800
1,500
1,100

Amount

By Sundry creditors

6,000

300
200
100
6,000

6,000

Partners Capital Account

Particulars
To Goodwill
To Bs Capital
To Balance c/d

To balance c/d

A
6,000
2,400
37,900

B
4,000
-48,200

C
2,000
5,600
24,500

46,300

52,200

32,100

66,360
66,360

48,200
48,200

44,240
44,240

Particulars
By Balance b/d
By As Capital
By Cs Capital
By Revaluation A/c
By General reserve
By Balance b/d
By Cash (bal.fig)

A
40,000
--300
6,000
46,300
37,900
28,460
66,360

B
40,000
2,400
5,600
200
4,000
52,200
48,200
-48,200

Balance Sheet
Liabilities
Capitals:

Amount
A
B

Creditors
Provision for out. damages

Assets

66,360
44,240
40,000
1,100

Amount

Plant & Machinery

Furniture
Stock
Debtors less provision
Cash

1,51,700

68,000
28,500
16,200
21,000
18,000
1,51,700

12. Balance Sheet

(Extract only)
Particulars
Equity and Liabilities

I. Equity and Liabilities

1. Shareholders Funds
(a) Share Capital
(b) Reserves & Surplus

Note No.

1
2

2012-13

2011-12

11,77,000
6,000
11,83,000

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

C
30,000
--100
2,000
32,100
24,500
19,740
44,240

Notes to Accounts:
1. SHARE CAPITAL
Authorised Capital
1.00.000 equity shares of Rs.10 each
50,000 9% preference shares of Rs.10 each
Issued capital
90,000 equity shares of Rs.10 each
50,000 9% preference shares of Rs.10 each
Subscribed Capital
Subscribed and fully paid
50,000, 9% preference shares of Rs.10 each
Subscribed but not fully paid
84,500 equity shares of Rs.10 each Rs.8 called up
Less Calls in arrears

10,00,000
5,00,000
9,00,000
5,00,000

5,00,000
6,76,000
(2,000)

Add shares forfeited

3,000
11,77,000

2. RESERVES AND SURPLUS

Capital Reserve

13. Bs Capital Account

Particulars
To Drawings
To Interest on Drawings
To Bs Executors A/c (Bal. fig)

6,000
11,83,000

Amount
2,000
60
41,490

Particulars
By Balance b/d
By Salary
By As Capital
By Cs Capital
By P/L Suspense
By Interest on capital

43,550

14. Realisation Account

Particulars
To Sundry Assets:
Goodwill
10,000
Building
25,000
Investment
25,000
Stock
15,000
Debtors
17,000
To Xs Capital A/c (loan)
To Bank A/c (liabilities paid)
Creditors
6,000
Bank overdraft 6,000
To Bank A/c (Commission)
To Bank A/c (Exp.)

6,74,000

Amount

92,000
8,000

12,000
1,000
2,000

1,15,000

Amount
20,000
14,400
3,000
3,000
2,250
900
43,550

Particulars
By Investment F. Fund
By Provision for D. Debts
By Creditors
By Bank Overdraft
By Xs Brothers Loan
By Bank A/c (Assets realized):
Goodwill
6,000
Building
30,000
Investment
20,000
Stock
5,000
Debtors
12,000
By Ys Capital A/c (stock)
By Loss transferred to:
X
Y

Amount
5,000
2,000
8,000
6,000
8,000

73,000
4,000
7,200
1,800
1,15,000

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

Partners Capital Account

Particulars
To P/L A/c
To Realisation A/c
To Realisation A/c
To Bank A/c (payment)

X
8,000
-7,200
42,800

Y
2,000
4,000
1,800
32,200

58,000

40,000

Particulars
By Balance b/d
By Realisation A/c

X
50,000
8,000

Y
40,000
--

58,000

40,000

Bank Account
Particulars

Amount

To Balance b/d
To Realisation A/c

20,000
73,000

Particulars

Amount

By Realisation A/c (Liab.)

By Realisation (Comm.)
By Realisation (Exp.)
By Ys Loan A/c
By Xs Capital A/c
By Ys Capital A/c

93,000

15. Revaluation Account

Particulars
To Machinery A/c
To Provision for doubtful debts
To Profit transferred to:
X
Y

Amount
2,000
850

Particulars

12,000
1,000
2,000
3,000
42,800
32,200
93,000

Amount

By Building A/c

5,000

1,613
537
5,000

5,000

Partners Capital Account

Particulars
To Balance c/d

X
40,113

Y
15,037

Z
20,000

To Ys current A/c
To Bal. c/d

40,113
-45,000
45,000

15,037
37
15,000
15,037

20,000
-20,000
20,000

Particulars
By Balance b/d
By Revaluation A/c
By Gen Reserve
By Cash
By Premium
By Balance b/d
By Xs current A/c

X
25,000
1,613
9,000
-4,500
40.113
40,113
4,887
45,000

Y
10,000
537
3,000
-1,500
15,037
15,037
-15,037

Balance Sheet
Liabilities

Amount

Capitals: X 45,000
Y 15,000
Z 20,000
Creditors
Bills Payable
Ys Current A/c

80,000
18,000
10,000
37
1,08,037

Assets
Building
Machinery
Stock
Debtors less provision
Cash
Xs Current A/c

Amount
25,000
19,000
12,000
16,150
31,000
4,887
1,08,037

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

Z
---20,000
-20,000
20,000
-20,000

16. Journal
Date

Particulars
Bank A/c Dr.

L.F

Debit
1,50,000

To Share Application A/c

Share Application A/c Dr.

Credit

1,50,000

1,50,000

To Share Capital

90,000

To Share Allotment

30,000

To Bank A/c

30,000

Share Allotment A/c Dr.

60,000

Discount on issue of shares

30,000

To Share capital

Bank A/c Dr.

90,000

28,800

To Share Allotment A/c

Share final call A/c

28,800

1,20,000

To Share Capital A/c

Bank A/c Dr.

1,20,000

1,15,200

To Share Final call

Share Capital A/c Dr.

1,15,200

12,000

To Share Allotment

1,200

To Share Final call

4,800

To Discount on issue of shares

1,200

To Share Forfeiture

4,800

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

Bank A/c

8,000

To Share Capital

8,000

Share Forfeiture

3,200

To Capital Reserve

3,200

17. Depreciation is a non-cash expense. Therefore, there is no flow of cash.

18. Operating Activity
19. Financial statements are concerned with the monetary aspect only, the qualitative aspect like
quality of goods, efficiency of management and workers etc. are ignored while carrying out the
analysis of financial statements.
20. Major Head and Sub-head
Particulars

Major Headings

(i) Tax Reserve

(ii) Interest on calls in advance
(iii) Stores and spares
(iv) Premium on Redemption of debentures
(v) Loose Tools
(vi) Bank Balance

Shareholders funds
Current Liabilities
Current Assets
Non-current Liabilities
Current Assets
Current Assets

21. Comparative Statement of Profit & Loss

Particulars
Note 31-3-2010 31-3-2009
No.
Revenue from operations
Other income
Less: Expenses:
Cost of Material consumed
Other Expenses
Total Expenses
Total Revenue
Less : Tax
Profit after tax

Sub-headings
Reserves & Surplus
Other current liabilities
Inventories
Other long term liabilities
Inventories
Cash & Cash Equivalents

Absolute
change

% change

36,00,000

20,00,000

16,00,000

80%

12,00,000
2,40,000
14,40,000
21,60,000
10,80,000
10,80,000

10,00,000
1,00,000
11,00,000
9,00,000
4,50,000
4,50,000

2,00,000
1,40,000
3,40,000
12,60,000
6,30,000
6,30,000

20%
140%
30.90%
140%
140%
140%

22. Return on investment (ROI) = EBIT/Capital Employed

Earning after interest and tax = 3,00,000 + 50,000 interest + 2,00,000 tax = 5,50,000
Now ROI is = 5,50,000/40,00,000 x 100 = 13.75%
Debt Equity Ratio = Debt/Equity i.e. 5,00,000/35,00,000 = 1:7
Debt = 10% Debentures Rs.5,00,000
Equity = Capital Employed Debt i.e. 40,00,000 5,00,000 = 35,00,000

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks

23. Cash Flow Statement

(A) Cash Flow from Operating Activities
Net Loss during the year

(50,000)

Add: Interest on Borrowings

Depreciation
Operating Profit/loss before working capital changes
Add: Increase in Trade Payables
Less : Increase in Inventories
Less: Increase in Trade Receivables
Cash used in Operating Activities

36,000
1,20,000
1,06,000
10,000
(1,00,000)
(80,000)
(64,000)

(B) Cash Flow from Investing Activities

Purchased of fixed assets
Cash used in investing activities

(4,20,000)

(C) Cash Flow from Financing Activities

Proceeds from issue of share capital
Interest paid on debentures
Long term borrowings (raised)
Cash flow from financing activities

4,00,000
(36,000)
90,000

(4,20,000)

4,54,000

(D) Net increase/decrease in cash and cash equivalents (A+B+C)

Add: Cash & Cash Equivalents in the beginning of the year
Cash and Cash Equivalents at the end of the period

(30,000)
3,70,000
3,40,000

Fixed Assets Account

Particulars

Amount

To Balance b/d
To Cash (Purchase)

9,00,000
4,20,000
13,20,000

Particulars
By P/L A/c (Dep.)
By Balance c/d

Amount
1,20,000
12,00,000
13,20,000

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Portal for CBSE Notes, Test Papers, Sample Papers, Tips and Tricks