Accountancy for class XII Full Question Paper

7/27/2019 Accountancy for class XII Full Question Paper

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PART A: PARTNERSHIP AND COMPANY ACCOUNTS

Q. 1. Define partnership. What are the essential characteristics of a partnership

Q. 2. L and M are partners in a firm sharing profits and losses in the ratio of 7 : 3. They admit N on 3/7 share, which

he takes 2/7 from L and 1/7 from M. Calculate the new profit sharing ratio.

Q. 3. XYZ Ltd. offers new shares of Rs. 100 each at 10% premium to the existing shareholders in the ratio of two

shares for every five shares held. The market price of share Is Rs. 124. Calculate the value of right.

Q. 4. What is zero Coupon Bond?

Q. 5.A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2.

They admit C into partnership for 1/5th share. C brings Rs. 30,000 as capital and Rs. 10,000 as good will. At the tune

of admission of C goodwill appears in the Balance Sheet of A and B at Rs. 3,000. New profit sharing ratio of the

partners shall he 5 : 3 : 2. Pass necessary entries.

Q. 6. Sachin, Kapil and Rashmi have been sharing profits in the ratio of 3 : 2 : 1 respectively. Rashmi wants that she

should share the profits equally with Sachin and Kapil. She further wants that change in profit sharing ratio should b

retrospectively for the last three years. Other partners have no objection to this. The profits for the last three years

were Rs. 60,000, Rs. 47,000 and Rs. 55,000.

Record the adjustment by means of Journal entry. Give working.

Q. 7. A Limited Company has Issued Rs. 1,00,000 9 % Debentures at a discount of 6%. These debentures are to be

redeemed equally spread over 5 annual instalments. Show Discount on Issue of Debentures A/c for five years.

Q. 8. State the conditions under which the shares can be issued at a discount by a limited company.

Q. 9. On April 1, 2001 -X Ltd. raised a loan of Rs. 50 crores @ 12% p.a. payable half-yearly on September 30 and

March 31 repayable after 3 years and offered its land and building at Mumbai as primary security. 12% of the

company for Rs. 30 crores were also pledged as collateral security. The company started facing the financial distress

towards the end of the year 2002 and could not pay interest on loan w.e.f. October 2,2002 onwards. The company

was not in a position to repay the loan on due date. The Lender took over the possession of land and building In

Mumbai at Rs. 48 crores and invoked his right vested in collateral security on 30th June, 2004 after duly following

legal process.

Required: Record Journal entries to give effect to above transactions.

Q. 10. The following balances appeared in the books of a company on 1st January,

12% Debentures 4,00,000

12% Debentures Sinking Fund 3,00,000

12% Debentures Sinking Fund investment 3,00,000

(represented by 10% Rs. 4,00,000 secured

bonds of Govt. of India)

Rs.

4,00,000

3,00,000

3,00,000


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Annual contribution to the Sinking Fund was Ra. 60,000 made on 31st December each year. On 31st December,

2000, balance at Bank was Rs. 3,00,000 after receipt of interest on Debenture Sinking Fund Investment. The

company sold the investment at a loss of 18% and the Debentures were paid off. You are required to prepare the

following accounts for the year 2000:

(i) Debentures Account

(ii) Debentures Sinking Fund Account(iii) Debentures Slaking Fund Investment Account

(iv) Sank Account

Q. 11. A and B are partners sharing profit in the ratio of 3 : 2 with capitals of Rs. 50,000 and Rs. 30,000 respectively.

Interest on capital is agreed @ 6% p.a. B is to be allowed an annual salary of Rs. 2,500. During 2004 the profits of

the year prior to calculation of interest on capital but after charing Bs salary amounted to Rs. 12,500. A provision of

5% of the profit is to be made In respect of managers commission. Prepare an account showing the allocation of

profits and partners capital accounts.

Q. 12.The following is the Balance Sheet as on 31st December, 2002 of A and B, who share profits and

losses in the ratio of 3 : 2 :

Liabilities Rs. Assets Rs.

Capital Accounts:

A

B

General Reserve

Workmen's

Compensation Fund

Creditors

10,000

10,000

15,000

5,000

10,000

50,000

Plant & Machinery

Land and Buildings

Debtors 12,000

Less: Provision

For doubtful debts 1,000

Stock

Cash

10,000

8,000

11,000

12,000

9,000

50,000

On 1st January, 2003, they agreed to admit C into partnership on the following terms:

(i) Provision of doubtful debts would be increased by Rs. 2,000.

(ii) The value of Land and building would be increased to Rs. 18,000.

(iii) The value of stock would be increased by Rs. 4,000.

(iv) The liability against Workmens Compensation Fund is determined at Rs. 2,000.

(v) C brought in as his share of goodwill Rs. 10,000 in cash.

(vi) C would bring further cash as would make his capital equal to 20% of the total capital of the new firm after the

above revaluation and adjustments are carried out.

Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet of the firm after Cs admission.

Q. 13. A, B and Care partners sharing profits and loss in the ratio of 3 : 2 : 1 On 31st December, 2004, their Balance

sheet stood as under:

Lianilities Rs. Assets Rs.

A's Capital A/c

B's Capital A/c

16,000

12,000

Fixed Assets

Joint Life policy

40,000

6,000


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C's Capital A/c

A's Current A/c

B's Current A/c

C's Current A/c

Reserve

Profit and Loss A/cOpening Balance 6,000

Profit for the year 14,000

Creditors

10,000

4,000

3,000

1,000

24,000

20,000

30,000

1,20,000

Current Assets

Advertisement Expenditure

68,000

6,000

_______

1,20,000

B died on 31.3.2005. His account has to be settled and paid. For the year 2005, proportionate profits on 2004 basis

are to be taken into account. For 2004 a bad debt of Rs. 2,000 has to be adjusted. Goodwill has to be calculated at

three time of the four years average profits. A policy is taken on the joint life of partners for Rs. 35,000 and the

annual premium of Rs. 2,000 has to be paid on February 1 every year. The profits for 2003 Rs. 16,000, 2002 Rs.

20,000 and 2001 Rs. 12,000. Goodwill account need not be kept in the accounts

Required: Calculate the amount payable to Bs heirs.Or

The Balance Sheet of Ram, Han and Mohan who were sharing, profits as 2 : 3 : 2 respectively stood as follows on

31st March, 2004:


Capital Accounts:

Ram

Hari

Mohan

Sundry Creditors

10,00,000

15,00,000

10,00,000

5,00,000

40,00,000

L and & Buildings

Machinery

Closing Stock

Sundry Debtors

Cash and Bank Balances

10,00,000

17,00,000

5,00,000

6,00,000

2,00,000

40,00,000

On 31st March, 2004 Han desired to retire from the firm and the remaining partners decided to carry on. It

was agreed to revalue the Assets and Liabilities on that date on the following basis:

(a) L and & Buildings be appreciated by 30%.

(b) Machinery be depreciated by 20%.

(c) Closing Stock to be valued at Rs. 4,50,000.

(d) Provision for doubtful debts be made at 5%.

(e) Old credit balances of Sundry Creditors Rs. 5,00,000 be written back.

(f) Joint Life Policy of the partners surrendered and cash obtained Rs. 3,50,000.

(g)Goodwill of the entire firm be valued at Rs. 6,30,000 and Hans share of the Goodwill be adjusted in the accounts

of Ram and Mohan who share the future profits & losses in the ratio of 3 : 2.

(h) The total capital of the firm is to be the same as before retirement. Individual capitals be in their profit sharing

ratio.

(i)Amount due to Hail is to be settled on the following basis 50% on retirement and the balance 50% with in one year.

Prepare Revaluation Account, Capital Accounts of Partners, Cash Accounts and Balance Sheet as 1.4 of M/s Ram &

Mohan.


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Q. 14.(a) ABC Ltd. forfeited 150 Equity Shares of Rs. 10 each issued at a premium of Rs. 5 per share, for non-

payment of allotment money of Rs. 8 per share (including premium of 5 per share), the first call of Rs. 2 per share

and the final call of Rs. 3 per share. Out of these 100 equity shares were reissued at Rs. 14 per share. Give journal

entries in the books of the company to record the forfeiture and reissue of shares.

(b) V.K. Ltd. forfeited 10 shares of Rs. 10 each (Rs. 6 called up) issued at a discount of 10% to Y on which he had

paid the application money of Rs. 2 per share. Out of these, 8 shares were reissued to Z at Rs. 6 per share, Rs. 8called up.

Give journal entries to record forfeiture and reissue of shares in the books of the company.

Q. 15. The following is the Balance Sheet of A and B on 31 December, 2004:


Sundry Creditors

Bills Payable

Mrs. A's Loan

Mrs. B's Loan

General Reserve

Salaries Outstanding

A's Capital

B's Capital

30,000

8,000

5,000

10,000

10,000

1,000

10,000

10,000

_________

84,000

Cash in hand

Cash at Bank

Stock-in-Trade

Investment

Debtors 20,000

Less: Provision

for Doubtful

Debts 2.000

Plant

Building

Goodwill

Profit & Loss A/c

500

8,000

5,000

10,000

18,000

20,000

15,000

4,000

3.5000

84,000

The firm was dissolved on 31st December, 2004 on the following terms:

(a)A promised to pay off Mrs. As loan and took away stock-in-trade at Rs. 4,000.

(b) B tool away half the investment at 10% discount.

(c) Debtors realized Rs. 19,000.

(d) Creditors and Bills Payable were due, on an average basis, on month after 31st December, but they were paid

immediately on 31st December, at a discount of 6% per annum.

(e) Plant realized Rs. 25,000, Building Rs. 40,000, Goodwill Rs. 6,000 and remaining investments at Rs. 4,500.

(f) There was an old typewriter in the firm which had been written off completely from the books of the firm. It was

now estimated to realize Rs 300. It was taken away by B at this estimated price.

(g) Realization expenses were Rs. 1000.

You are required to give necessary ledger accounts to close the books of the firm.

PART B: ANALYSIS OF FINANCIALS STATEMENTS

Q. 16. Differentiate between a Funds Flow Statement and Balance Sheet.

Q. 17. Explain meaning and significance of the following:

(a) Debt-Equity Ratio (b) Debtors Turnover Ratio

Q. 18. The following balances appear in the books of Roop Publications Ltd:


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Rs.

Goodwill

Plant and Machinery

Building

Cash at hand

Stock in tradeStock Capital: 1,000 Equity shares

of Rs. 100 each issued at par

Rs. 80 per share called up and paid up

8% Debentures

Preliminary Expenses

Creditors

Dividends payable

20,000

1,60,000

1,45,000

10,000

70,000

80,000

2,50,000

5,000

55,000

25,000

Showing the above items under the major heads in accordance with Section 211 and Part I of Schedule VI of the

Companies Act 1956, prepare a Balance Sheet of the company.

Q. 19. From the following summarized Balance Sheets as at 31st December pre pare a comparative Balance Sheet

of X Ltd. as at that date:

Liabilities 1995

Rs.

1996

Rs.

Assets 1995

Rs.

1996

Rs.

Equity Share Capital

Preference share

Capital

Reserves and Surplus

Secured Loans

Unsecured LoansCurrent Liabilities

Provision for Taxation

60,00,000

15,00,000

15,00,000

30,00,000

15,00,00012,00,000

3,00,000

1,50,00,000

60,00,000

15,00,000

18,00,000

27,00,000

18,00,00013,20,000

3,30,000

1,54,50,000

Fixed Assets

Investments

C. Assets

90,00,000

15,00,000

45,00,000

________

1,50,00,000

1,08,00,000

15,00,000

31,50,000

________

1,54,50,000

Or

Discuss the purpose of financial statement analysis.

Q. 20. From the following information, calculate Stock Turnover Ratio, Operating Ratio and Capital Turnover Ratio:

Rs.

Opening Stock

Closing Stock

Purchases

Sales

Sales Returns

Carriage Inwards

Office Expenses

Selling and Distribution Expenses

28,000

22,000

46,000

90,000

10,000

4,000

4,000

2,000


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Capital Employed 2,00,000

Q. 21.Calculate cash Flows from operating activities from the following information:

Particulars 2003 Rs. 2004 Rs.

DebtorsPrepaid Expenses

Accrued Income

Income Received in Advance

Creditors

Bills payable

Outstanding Expenses

42,0002,000

1,500

800

26,000

13,000

8,000

46,0002,700

1,200

1,000

28,000

11,000

6,000

Profit made during 2004 amounted to Rs. 1,00,000 after taking into account the following adjustments:

Rs.

(i) Profit on Sale of Investment(ii) Loss on Sale of Machine

(iii) Goodwill Amortized

(iv) Depreciation Charged

2,000900

3,000

2,900

Or

From the following Balance Sheets of DJA Co. LTD., prepare Funds Flow statements and Statement of Changes in

Working Capital:

Liabilities 31-3-03

Rs.

31-3-04

Rs.

Assets 31-3-03

Rs.

31-3-04

Rs.

Share Capital

Debentures

General Reserve

Profit & Loss A/c

Income Tax Payable

Sundry Creditors

Bills Payable

60,000

30,000

20,000

12,000

18,000

15,000

2,000

_______

1,57,000

70,000

50,000

30,000

14,000

26,000

22,000

3,000

_______

2,15,000

Goodwill

Machinery

Investments

Cash at Bank

Sundry Debtors

Stock in Trade

Discount on Issue Of

Debentures

20,000

82,000

6,000

24,000

16,000

8,000

1.000

1,57,000

16,000

1.08,000

16,000

26,000

38,000

11,000

_______

2,15,000

(a) During the year investment costing Rs. 6,000 was sold for Rs. 5,600.

(b) Depreciation pro on machinery was Rs. 10,000

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PART A: PARTNERSHIP AND COMPANY ACCOUNTS

Q. 1. In the absence of a partnership deed, how are mutual relations of partners governed?


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Q. 2. Rand S are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit T as a new partner R

surrenders 1/5th share of his profit in favour of T and S surrenders 2/5th of his share in favour of T. Calculate their

new profit sharing ratio.

Q. 3. A and B are partners sharing profit and losses in the ratio of 3 : 2. They admit C into the partnership for share

lit profits. C brings Rs. 30,000 as capital and Rs. 10,000 as goodwill New profit sharing ratio of the partners shall be 3: 3 : 2. Pass necessary journal entries.

Q. 4. On 1st Jan., 2004, ABC Ltd. had 1,000, 12% Debentures of Rs. 100 each. Interest on debentures is payable

half yearly on 30th June and on 31st December. On 1st May, 2004, the company purchased 300 own Debentures at

Rs. 93 Ex-interest for the Investment purpose and sold the same @ Rs. 99 cum-interest after six months.

Record the necessary Journal entries on date of purchase and sale.

Q. 5.Anu, Beena, Ceema, Deeps share profits in the ratio of 5 : 3 : 2 : 2 and their capitals are Rs. 5,000, Rs. 6,500,

Rs. 6,000 and Rs. 6500 respectively. On 31 December, 2002, after closing the books it is found that interest on

capital @ 5% p.a. was omitted. Instead of altering the signed accounts, it was decided to pass a. single: adjustment

entry at the beginning of the next the necessary journal entry.

Q. 6. What do you mean by Issuing shares at premium? State the provisions of Sec. 78 of the Companies Act, 1956

regarding the utilization of Share (Securities) Premium Account.

Q. 7. X Ltd. issued debentures amounting to Rs. 10,00,000 at a discount of 6%, repayable by annual drawings of Rs.

2,00,000 each year, beginning With the end of first year The directors decided to write off discount based on

debentures outstanding at the end of each year Calculate the amount of discount to be written off each year. Prepare

Discount on Issue of Debentures Account also for each year.

Q. 8. Disha Ltd. had 2,000, 12% Debentures of Rs. 50 each on December 2002 redeemable at a premium of 10%.

They are to be converted into equity shares of Rs. 10 each issued.

Case (i) at par

Case (ii) at a premium of Rs. 15 i.e., at Rs. 25

Case (iii) at a discount of Rs. 2 i.e., at Rs. 8

Q. 9. Give any four points of distinction between a Share and a Debenture.

Q. 10. X, Y and Z were partners in a firm sharing profits in the ratio of 4 : 3 : 3. They had a Joint Life Policy of Rs.

1,00,000. The annual pr paid was Rs. 1,000 and was considered as an asset. Y died on 15.3.2003. On that date the

surrender value of the Policy was Rs. 15,000. Pass necessary journal entries on Ys death related to Joint Life Policy

transactions.

Q. 11. The Balance Sheet of Seem Ltd. disclosed the following information of 1 January, 2000:

Rs.

16% Debentures

Debenture Redemption Fund

15% Debenture Redemption Fund Investments

10,00,000

8,00,000

8,00,000


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The annual contribution to the Debenture Redemption Fund was Rs. 80,000 for the year 2000. The debentures were

redeemable on 31st December, 2000. On 31st December, 2000 the investments were sold for Rs. 8,20,000 and the

debentures were redeemed. The bank balance on 31st December, 2000 prior of interest from Debenture Redemption

Fund Investments was Rs. 90,000.

Prepare Debenture Account, Bank Account, Debenture Redemption Fund Account and Debenture Redemption Fund

Investments Account for the year 2000.

Q. 12. A and B are partners in a firm sharing profits and losses in the ratio of 3:

2. They admit C Into partnership of 1/5th share in profit on 31st December, 1996. On that date their Balance Sheet

stood as under:

Liabilities: Rs. Assets Rs.

Capital Accounts:

A

B

General Reserves

Sundry Creditors

60,000

50,000

10,000

50,000

_________

1,70,000

Good will

Plant & Machinery

Furniture

Investments

Stock

Sundry Debtors

Cash in hand

5,000

65,000

15,000

20,000

20,000

30,000

15,000

1,70,000

C was admitted on the following terms:

(i) C is to bring capital Rs. 40,000 and goodwill Rs. 15,000.

(ii) Partners agreed to share the future profit in the ratio of 5 : 3 : 2.

(iii) Investments will be appreciated by 20% and furniture depreciated by 10%.

(iv) One customer who owed the firm Rs. 2,000 become insolvent and nothing could be realized from him.

(v) Creditors will be written back by Rs. 2,000.

(vi) Outstanding bills for repairs Rs. 1,000 will be provided for.

(vii) Interest accrued on investments Rs. 2,000.

(viii) Capital of the partners shall be in proportion to their profit sharing ratio. For this, adjustment be made through

cash.

Prepare Revaluation Account, Capital Accounts and Balance Sheet of the new firm.

Q. 13.(a) XYZ Ltd. forfeited 200 equity shares of Rs. 10 each issued at a premium of Rs. 5 per share, held by Shyam

for non-payment of allotment money of Rs. 8 per share (including share premium Rs. 5 per share), first call of Rs. 2

per share and final call of Rs. 3 per share. Out of these, 125 equity shares were reissued to Bhajanlal at Rs. 9 per

share as fully paid. .Journalise. 5

(b) VT Ltd. forfeited 20 shares of Rs. 10 each (Rs. 7 called up), issued at a discount of 10% to Meena on which she

had paid Rs. 2 per share. Out of these, 18 shares were reissued to Neeta as Rs. 8 called up for Rs. 6 per share. Give

journal entries to record forfeiture and reissue of shares.

Q. 14. A, B and C are partners sharing profits of 2 : 1 : 1. They closed their books on 31st December each year. A

died on 28th February, 2001 when their Balance Sheet was as follows:


Creditors 3,790 Cash 20,000


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Joint Life Policy Reserve

Profit for Two Months

(Before interest & Salaries)

Capitals:

A 10,000

B 6,000C 5,000

3,600

3,110

21,000

31,500

Sundry Debtors

Loan to A

Joint Life policy

3,900

4,000

3,600

______

31,500

Accounting to the partnership deed:

(a) Interest on capital is allowed @ 6% per annum A and B are entitled to salaries at Rs. 300 and Rs. 250 per month.

(b) In the event of death of a partner Goodwill was to be valued at 2 years purchase of the average net profits of 3

completed years preceding death. The net profits for the year 1998, 1999 and 2000 was Rs. 5,500. Rs. 4,800 and Rs.

6,500 respectively.

Firm had taken a Joint Life Policy (with profit policy) of Rs. 10,000. The insurance company admitted a claim of Rs.

12,600 including bonus. As share was paid to his executors. B and C continued the firm. Prepare Profit and Loss

Appropriation Account, Partners Capital Accounts and Balance Sheet of B and C.Or

X,Y,Z were partners in a firm whose Balance Sheet as on 31st Dec., 2002 was as under:

Balance Sheet

as at 31.12.2002


Creditors

General Reserve

X's Capital

Y's Capital

Z's Capital

18,240

7,500

20,000

14,500

10,000

70,240

Cash

Debtors

Stock

Furniture

16,240

22,500

26,500

5,000

_________

70,240

Y retired on that date in this connection it was derided to make the following adjustments:

(a) To reduce Stock and Furniture by 5% and 10% respectively.

(b) To provide for Doubtful Debts at 5% on Debtors.

(c) A long dispute with the Creditors was settled and firm has to pay R 9,050. In anticipation Rs. 6,000 have already

been Included In sundry creditors for this purpose.

(d) Goodwill was valued at Rs. 12,000.

(e) To share profits and losses in 5:3 respectively.

(f) Y should be paid off and the satire sum payable to Y shall be brought In by X and Z in such a way that their

capitals should be in their new profit sharing ratio.

Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet after Ys retirement.

Q. 15. A, B and C who shared profits in the ratio of 3 : 2 : 1 agreed upon the

Dissolution of their partnership on 31st December, 1998, on which date their Balance Sheet was as under:


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Capital Accounts:

A

B

Mrs. A's loan

Creditors

Joint Life policy Fund

Investment Fluctuation

Fund

50,000

10,000

8,000

20,500

14,000

6,000

_______

1,0,500

Machinery

Cash

Investments

Joint Life Policy

Debtors

Cash at Bank

C's Capital A/c

40,000

8,000

20,000

14,000

9,000

6,000

11,500

_______

1,08,500

Following transactions took place:

(i) The joint life policy was surrendered for Rs. 15,000.

(ii)The Investments were taken over by A for Rs. 11,500. He also agreed to discharge his wifes loan.

(iii) B took over the stock at Rs. 7,500 and Debtors amounting to Rs. 5,000 for Rs. 4,000.

(iv) Machinery realized Rs. 50,000 and the remaining Debtors realized 50% of the book value.

(v) The expenses of realization amounted to Rs. 1,000.

(vi) Investments worth Rs. 3,000 were not recorded in the books and realised at the same price.

Prepare necessary ledger accounts to close the books of the firm.

PART B: ANALYSIS OF FINANCIAL STATEMENTS

Q. 16. Mention the advantage of Funds Flow Statement.

Q. 17. Explain the meaning and significance of the following ratios:

(a) Current Ratio (b) Stock Turnover Ratio

Q. 18. Under which of the major heads will the following items be shown, while preparing the Balance Sheet of a

company, as per provisions of companies Act, 1956, as contained in Schedule VI?

Rs.


Discount on issue of Debentures

10% Debentures

Stock-in-trade

Cash at Bank

Bills Receivable

Goodwill

Loose Tools

Horses and Carts

Motor Truck

Provision for Taxation

Bank Overdraft

1,40,000

10,000

1,90,000

40,000

35,000

12,000

20,000

12,000

22,000

75,000

6,000

30,000

Q. 19. From the following information prepare a comparative Balance Sheet of Deep Ltd. as on 31st December:


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Particulars 31-12-1995 Rs. 31-12-1996 Rs.

Equity Share Capital

Fixed Assets

Reserves and Surpluses

Investments

Long Term LoansCurrent Assets

Current Liabilities

25,00,000

30,00,000

5,00,000

5,00,000

15,00,00015,00,000

5,00,000

25,00,000

36,00,000

6,00,000

5,00,000

15,00,00010,50,000

5,50,000

Q. 20. The current ratio of a company is 2 : 1. State giving reasons which of the following would improve, reduce, or

not change the ratio:

(a) repayment of a current liability

(b) purchasing goods on cash

(c) sale of office equipment for Rs. 4,000 (Book Value Rs. 5,000)

(d) sale of goods Rs. 11,000 (cost Rs. 10,000)

(e) payment of dividend

OrExplain any four limitations of financial statement analysis.

Q. 21. Calculate net-cash flows from operating activities from the following in formation:

Rs.

Profits made during 1996

Transfer to General Reserve

Depreciation provided

Profit on sale of furniture

Loss on sale of machine

Preliminary expenses written off

50,000

10,000

20,000

5,000

10,000

10,000

Additional Information:

1995 Rs. 1996 Rs.

Debtors

Bills Receivable

Stock

Prepaid Expenses

Creditors

Bills Payable

Outstanding Expenses

10,000

7,000

15,000

2,000

20,000

15,000

3,000

15,000

5,000

18,000

3,000

18,000

25,000

4,000

Or

Prepare Funds Flows Statement and Schedule of Changes in Working Capital from the following Balance Sheets:

Liabilities 1995

Rs.

1996

Rs.

Assets 1995

Rs.

1996

Rs.


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Share Capital

Share Premium

General Reserve

Profit & Loss A/c

16% Debentures

Proposed DividendProvision for Tax

Creditors

Bills Payable

1,00,000

50,000

45,000

70,000

30,00015,000

25,000

15,000

3,50,000

1,50,000

10,000

70,000

65,000

50,000

40,00020,000

20,000

27,000

4,52,000

Fixed Assets

Sundry Debtors

Cash

Bank

Stock

B/RGood will

1,80,000

20,000

10,000

15,000

75,000

20,00030,000

________

3,50,000

2,70,000

30,000

5,000

17,000

80,000

30,00020,000

________

4,52,000


(a) Depreciation on Fixed Assets Rs. 20,000.

(b) Fixed Assets of the value of Rs. 10,000 sold for Rs. 15,000.



Q. 1. List any four contents of a 'Partnership Deed'. 2

Q. 2. Distinguish between 'Reserve Capital' & 'Capital Reserve'. 2

Q. 3. What is meant by 'Private Placement of shares'? 2

Q. 4. State the meaning of "Debentures issued as Collateral Security". 2

Q. 5. The partners of a firm distributed the profits for the year ended 31 2003, Rs. 90,000 In the ratio of 3 : 2 : 1

without providing for the following adjustments:

(a) A & B were entitled to a salary of Rs. 1,500 each per annum.

(b) B was entitled to a commission of Rs.4,500.

(c) B & C had guaranteed .g minimum profit of Rs. 35,000 p.a. to A

(d) Profits were to be sbared in the ratio of 3 : 3 : 2.

Pass necessary journal entry for the above adjustments in the books of the firm. 3

Q. 6. Pass necessary journal entries in the books of the Company in following cases for redemption of 1,000 12%

Debentures of Rs. 10 each issued at par:

(a) Debentures redeemed at par by conversion into 12% Pref. Shares of Rs. 100 each.

(b) Debentures redeemed at a premium of 10% by conversion into Equity shares issued at par.

(c) Debentures redeemed at a premium of 10% by conversion into Equity shares issued at a premium of 25%. 3


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Q. 7. (a) R & T are partners in a firm sharing profits in the ratio of 3 : 2. S joins the firm. R surrenders 1/4th of his

share and T 1/5th of his share in favour of S. Find the new profit sharing ratio.

(b) P, Q & R are equal partners in a firm. Goodwill has been valued at Rs. 36,000; On R's retirement from the firm P

and Q agree to share profits in the ratio of 3 : 2. Pass necessary journal entry for treatment of R's share of

Goodwill. 2+2 =4

Q. 8.A & B were partners in a firm from 1-4-2001 with capitals of Ra. 60,000 and Rs. 40,000 respectively. They

shared profits and losses in the ratio of 3 : 2. They carried on business for 2 years. In the first year they made a profit

of Rs. 50,000 and in the 2nd year ending 31 st March, 2003 , they incurred a loss of Rs. 20,000. As the business was

no longer profitable they decided to wind up. Creditors on that date were Rs. 20,000. The partners withdrew Rs.

8,000 each per year for their personal expenses. The assets realised Rs. 1,00,000. The expenses on realisation was

Rs. 3 , 000. Prepare Realization Account and show your workings clearly. 4

Q. 9. Rohit Ltd. purchased assets from Rohan & Co., for Rs. 3,50,000. A sum of Rs. 75,000 was paid by the means

of a bank draft and for the balance due Rohit Ltd. issued Equity shares of Rs. 10 each at a premium of 10%.

Journalise the above transactions in the books of the Company. 4

Q. 10. P Ltd. Issued 6,000 12% Debentures of Ra. 100 each at a discount of 6 % to be redeemed as follows

1st year: NIL; 2nd year: NIL; 3rd year : Rs. 4,00,000 ; 4th year Rs. 2,00,000. Show the Discount on Issue of

Debentures Account for the period of 4 years in the books 01 the Company. 4

Q. 11. The following balances stood as on 31-3-2003 in the books of a Company

12 % Debentures Rs. 10,00,000Debenture Redemption Fund Rs. 10,00,360Debenture Redemption Fund Investments represented by:

Rs. 4,00,000 9 % Loan Rs. 3,80,000

Rs, 7,00,000 8 % Govt. Paper

Rs. 6,20,360

On the above date, the investments were sold as follows: 9 % Loan at par, and 8 % Govt. Paper at 90 % of nominal

value. The Debentures were also redeemed accordingly. Show the necessary ledger accounts. 4

Q. 12.A, B & C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31" March, 2003 their Balance Sheet

was as under:


CreditorsRreserve

Capital Accounts:A's Capital 30,000

B's Capital 25,000

C's Capital 15,000

11,000

6,000

70,000

______

87,000

Buiding

MachineryStock

Patents

Debtors

Cash

20,000

30,00010,000

11,000

8,000

_8,000

87,000

A died on 1st October, 2003 . It was agreed between his executors and the remaining partners that:


14/35

(a) Goodwill to be valued at 2% years purchase of tie average profits of the previous four years which were.

2000 : Rs. 13,000; 2001: Rs. 12,000 : 2002 : Rs. 20,000 & 2003 : Rs. 15,000.

(b) Patents be valued at Rs. 8,000; Machinery at Rs 28,000; and Buildings at Rs. 25,000.

(c) Profit for the year 2003-04 be taken as having accrued at the same rate as that of the previous year.

(d) Interest on Capital be provided at 10 % p.a.

(e) Half of the amount due to A to be paid immediately to the executor and the balance transferred to his (Executor)Loan A/c.

Prepare A's Capital A/c and A's Executor's A/c as on 1st October, 2003. 6

Q. 13.AB Ltd. invited applications for 1,00,000 Equity shares of Ra. 10 each, payable as Rs. 2 on application, Rs. 3

on allotment and the balance on first and final call. Applications were received for 3,00,000 shares and the shares

were allotted on a pro rate basis. The excess application money was to be adjusted against allotment only. M, a

shareholder, who had applied for 3,000 shares, failed to pay the call money and his shares were accordingly forfeited

and reissued at Rs. 8 per share as fully paid.

Pass necessary journal entries. 6

Q. 14.A, B and C are partners in a firm sharing profits in the ratio of 2: 1: 1. Their Balance Sheet as on 31" March,

2003 was as under: 6


Creditors

A's Capital

B's Capital

C's Capital

50,000

80,000

80,000

60,000

_______

2,70,000

Goodwill

Land & Buildings

Plant & Machinery

Motor Car

Debtors

Cash

30,000

80,000

56,000

54,000

48,000

_2,000

2,70,000

The firm was dissolved on that date. The assets realised : Goodwill Rs. 20,000; Land & Buildings Ra. 1,00,000; Plant

& Machinery R 50,000; Motor Car Rs. 28,000 and Debtors 50 % of the book value Realisation Expenses were Rs.

2,000. Prepare Realisation Account, Capital Accounts of Partners and Cash Account to close the books of the firm.

Or

Pass necessary Journal Entries for the following transactions at the time of dissolution of the firm.

(a) Loan of Rs. 10,000 advanced by a partner to the firm was refunded.

(b) X, a partner takes over an unrecorded asset (Typewriter) at Rs. 300.

(c) Undistributed Balance (Debit) of P & L A/c Rs. 30,000. The firm has three partners X, Y& Z.

(d) The assets of the firm realised Rs. 1,25,000.

(e) Y who undertakes to carry out the dissolution proceedings is paid Rs. 2,000 for the same.

(f) Creditors paid Ra. 28,000 in full settlement of their account of Rs. 30,000.

Q. 15. The Balance Sheet of A, B & C who are partners in a firm sharing profits according to their capitals as on 31st

March, 2003 was as under.8


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Creditors

A's Capital

B's Capital

C's Capital

General Reserve

21,000

80,000

40,000

40,000

20,00

________

2,01,000

Buildings

Machinery

Stock

Debtors 20,000

Less: provision

for Bad Debts 1,000

Cash at Bank

1,00,000

50,000

18,000

19,000

14,000

2,01,000

On that date B decided to retire from the firm and was paid for his share in the firm subject to the following:

(a) Buildings to be appreciated by 20%.

(b) Provision for Bad Debts to be increased to 15 % on Debtors.

(c) Machinery to be depreciated by 20%.

(d) Goodwill of the firm is valued at Rs. 72,000 and the retiring partner's share is adjusted through the Capital

Accounts of remaining partners.

(e) The Capital of the new firm be fixed at Rs. 1,20,000.

Prepare Revaluation Account, Capital Accounts of the partners and the Balance Sheet after retirement of B.

Or

Usha and Asha are partners in a firm sharing profits in the ratio of 3 : 2. TheIr Balance Sheet on 31st March, 2003

was as follows:


CreditorsRreserve

Capital Accounts:

A's Capital 30,000

B's Capital 25,000

C's Capital 15,000

27,000

18,000

5,000

40,000

35,000

__________ 2,01,000

Cash

Debtors 48,000

Less: Provision 4,800

For bad debts

Stock

Patents

Building

24,000

43,000

30,000

7,400

20,400

_________ 1,25,000

Neelam is admitted into the partnership giving her 1/5th share in the profits. Neelam to bring in Rs. 30,000 as her

Capital and her share of Goodwill in Cash subject to the following terms:

(a) Goodwill of the firm to be valued at Rs. 50,000.(b) Stock to be reduced by 10 % and Provision for Bad Debts be reduced by Rs. 2,400.

(c) Patents are valueless.

(d) There was a claim against the firm for damages amounting to Rs. 2,000. The claim has now been accepted.

Prepare Revaluation Account Partners' Capital Accounts and the Balance Sheet of the new firm.

PART B : ANALYSIS OF FINANCIAL STATEMENTS


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Q. 16. How are the various activities classified according to AS-3 (Revised) while preparing the Cash Flow

Statement? 2

Q. 17. Give two examples each of Non-current assets & Non-current liabilIties. 2

Q. 18. Give the format of the Balance Sheet of a Company (main headings only), as per the requirements ofSchedule VI of the Companies Act 1956. 3

Q. 19. Rs. 2,00,000 is the cost of goods sold, inventory turnover 8 times; Stock at the beginning is 1.5 times more

than the stock at the end. Calculate the values of Opening & Closing Stocks. 3

Q. 20. (a) The ratio of Current Assets (Rs. 6,00,000) to Current Liabilities (Rs. 4,00,000) is 1 : 5 : 1. The accountant of

the firm is Interested in maintaining a Current Ratio of 21 by paying off a part of the Current Liabilities Compute the

amount of Current Liabilities that should be paid, so that the Current Ratio at the level of 2 : 1 may be maintained.

(b) Compute the Gross Profit Ratio from the following information:

Sales = Rs. 4,00,000 and gross profit % on cost 2+2=4

Q. 21. From the following Information of a. Public Company as at 31st March, prepare a Funds Flow Statement

showing full working of your calculations:

Liabilities 2003 Rs. 2004 Rs. Assets 2003 Rs 2004 Rs.

Equity Share Cap.

10% pref. share Capital

12% Debentures

Profit & Loss A/C

General Reserve

Current Liabilities

4,00,000

2,00,000

1,00,000

2,00,000

1,50,000

70,000

_________

11,20,000

4,50,000

3,00,000

2,00,000

1,20,000

1,10,000

________

11,80,000

Fixed Assets

Investment

Current Assets

Profit & Loss A/C

Good will

Preliminary Exp.

7,10,000

1,25,000

2,70,000

10,000

5,000

________

1,74,800

6,20,000

80,000

3,40,,000

1,00,000

15,000

25,000

_________

11,80.000

The Depreciation provided during the year was Rs. 1,35,000.

Or

X Ltd. made a profit of Rs. 1,00,000 after charging Depreciation of Rs. 20,000 on assets and a transfer to General

Reserve of Rs. 30,000 The goodwill written off was Rs. 7,000 and the gain on sale of Machinery was Rs. 3,000. The

other information available to you (changes in the value of Current Assets & Current Liabilities) is as follows:

At the end of the year Debtors showed an increase of Rs. 6,000, Creditors an increase of Ps 10,000, Prepaid

Expenses an Increase of Rs. 200; Bills Receivable a Decrease of Rs. 3000; Bills Payable a Decrease of Rs. 4,000

and Outstanding Expenses a Decrease of Rs. 2,000. Ascertain the cash flow from the operating activitIes. 6



PART A - ACCOUNTING


17/35

Q. 1. List any two circumstances under which the fixed capital of partners may change.2

Q. 2. Distinguish between 'Over Subscription' and 'Under Subscription'. 2

Q. 3. What is meant by forfeiture of shares? 2

Q. 4. State the meaning of 'Non Convertible Debentures' 2

Q. 5. The partners of a firm distributed the profits for the year ended 31st March, 2003 , Rs. 1,40,000 in the ratio of 2 :

2 : 1 without providing for the following adjustments:

(a) A and B were entitled to a salary of Rs. 1,500 per quarter.

(b) C was entitled to a commission of Rs. 8,000.

(c) A and C had guaranteed a minimum profit of Rs. 50,000 p.a. to B.

(d) Profits were to be shared in the ratio of 3 : 3 : 2.

Pass necessary journal entry for the above adjustments in the books of the firm. 3

Q. 6. Pass necessary journal entries in the books of the company in the following cases for redemption of 2,000 12%

Debentures of Rs. 10 each issued at par: 3

(a) Debentures redeemed at par by conversion into 10% preference shares of Rs.50 each.

(b) Debentures redeemed at a premium of 5% by conversion into equity shares issued t par.

Q. 7. (a) A and B are partners ins firm sharing profits in the ratio of 5 : 3. C joins the firm. A surrenders 1/4th of his

share a B 1/5 th of his share in favour of C. Find the new profit sharing ratio.

(b) M, N and 0 who are partners in a firm share profits in the ratio of 3 : 2 : 1. Goodwill has been valued at Rs. 60,000.

On N's retirement M and O agree to share profits equally.

Pass necessary journal catty toe treatment of N's share of goodwill. 2+2=4

Q. 8.A, B and C were partners in a firm sharing profits in the ratio of 4:3:3. On 1.403 they decided to dissolve the

firm. On that date A's capital was Rs 1,25,000, B's capital was Rs. 45,000 and C's capital was Rs. 15,000 (Dr.). The

creditors amounted to Rs. 23,150 and cash in hand was Rs. 4,520.The assets realised Rs. 1,44,910 and the

expenses of dissolution were Rs. 1,860. Prepare Realization Account and show your working clearly. 4

Q. 9. Ram & Co. purchased machinery from Mona & Co. for Ps. 4,00,000. A sum of Rs. 1,75,000 was paid by the

means of a bank draft and for the balance due Ram & Co. issued equity shares of P.s. 10 each at a discount of 10%.

Journalise the above transactions in the books of the company. 4

Q. 10. Maneesh Ltd. issued 10,000 12% debentures of Rs. 100 each at a discount of 6% to be redeemed a follows:

1st Year: Nil; 2nd Year : Rs. 5,00,000; 3rd Year : NIl; 4th Year: Rs. 5,00,000.

Show the Discount on issue of Debentures Account for the period of 4 years. 4

Q. 11. The following balances stood as on 31.3.03 in the books of a company:

8% Debentures Rs. 20,00,000Debentures Redemption Fund Rs. 20,00,360Debentures Redemption Fund Investments represented by:Rs. 6,00,000 9% Loan Rs. 5,40,000Rs. 15,00,000 8% Government Paper Rs. 14,60,360


18/35

On the above date, the Investments were sold as follows:

8% Government Paper at 90% of nominal value, and 9% loan at par, The Debentures were also redeemed

accordingly.

Show the necessary ledger accounts. 4

PART B - ANALYSIS OF FINANCIAL STATEMENTS

Q. 17. Give any two examples each of Current Asset and Current Liabilities. 2

Q. 19. Rs. 2,40,000 is the Cost of goods sold, Inventory turnovers times; Stock at the beginning is 1.5 times more

than the Stock at the end. Calculate the values of Opening and Closing Stock. 3

Q. 20. (a) The ratio of Current Asset (Rs. 3,00,000) to Current Liabilities (Rs. 2,00,000) is 1.5 : 1. The accountant of

the firm is interested in maintaining a Current Ratio of 2 : 1, by paying off a part of the Current Liabilities. Compute the

amount of Current Liabilities that should be paid, so that the Current Ratio at the level of 2 : 1, may be maintained.

(b) Compute the Gross Profit Ratio from the following Information:

Sales Rs. 6,00,000; Gross Profit 25% on cost. 2+2

Q. 21. From the following Information of a company as at 31st March, 2003 , prepare a Funds Flow Statement

showing full working of your calculations: 6

Liabilities 2003 Rs. 2002 Rs. Assets 2003 Rs 2002 Rs.

Equity Share Cap.

10% pref. share Capital

12% Debentures

Profit & Loss A/C

General Reserve

Current Liabilities

4,00,000

2,00,000

1,00,000

2,00,000

1,50,000

70,000_________

11,20,000

4,50,000

3,00,000

2,00,000

1,20,000

1,10,000________

11,80,000

Fixed Assets

Investment

Current Assets

Profit & Loss A/C

Good will

Preliminary Exp.

7,10,000

1,25,000

2,70,000

10,000

5,000________

11,20,800

6,20,000

80,000

3,40,,000

1,00,000

15,000

25,000_________

11,80.000

The Depreciation provided during the year was Rs. 1,25,000.

Or

X Ltd. made a profit of Rs. 1,20,000 after charging depreciation of 20,000 on assets and a transfer to General

Reserve of Rs. 30,000. The goodwill written off was Rs. 7,000 and the gain on sale of machinery was Rs. 3,000. The

other information available to you is (changes in the value of Current Assets and Current Liabilities) at the end of the

year:

Debtors showed an increase of Rs. 6,000; Creditors an increase of Rs. 10,000; Prepaid Expenses an increase of Rs.

200; Bills Receivable a decrease of Rs. 3,000; Bills Payable a decrease of Rs. 4,000 and Outstanding Expenses a

decrease of Rs. 2,000.

Ascertain the cash flow from the operating activities.




19/35

PART A - PARTNERSHIP AND COMPANY ACCOUNT

Q. 1. What is meant by partnership' 2

Q. 2. What is meant Reserve capital? 2

Q. 3. State any two purposes for which balance to the credit of security premium account can be used. 2

Q. 4. On 15.2.2004 'A' LTD invited applications for issue of 1,00,000 9% debentures of Rs. 100 each at a discount of

6%, redeemable at par after 3 years. The full amount was payable on application and the debentures were Issued on

15.3.2004. Pass the journal entries for the above transactions. 2

Q. 5. X Ltd. purchased assets of Y ltd. as under:

Plant and Machinery Rs. 8,00,000Land and Building Rs. 72,00,000

The purchase consideration was Rs. 80,00,000. Rs. 20,00,000 were paid through bank and the remaining by issue of

6% debentures of Rs. 100 each at a premium of 20%.

Pass necessary journal entries in the books of X Ltd. 3

Q. 6.A and B are partners us firm sharing profits in the ratio of 2; 1. On 1-4-2002 they decide to admit C for 1/5 share

in profits with a guaranteed amount of Rs. 25,000 per annum A undertook to meet the liability arising out of the

guaranteed amount to C The firm earned a profit of Es. 75,000 for the year ended March 31,2003.

Perpare Profit and Loss Appropriation Account. 3

Q. 7. X and Y are partners in a firm sharing profits in the ratio of 5:3. On March 1, 2004 they admitted Z as a new

partner. The new profit sharing ratio will be 4 : 3 : 2. Z brought in Rs. 1,00,000 in cash as his share of capital but

could not bring any amount for goodwill in cash. The firm's goodwill on Vs admission was valued at Rs. 1,80,000. Atthe time of Z's admission goodwill existed hi the books of the firm at Rs. 2,40,000.

Pass necessary journal entries in the books of the firm on Vs admission. Show your workings clearly. 4

Q. 8. P and Q are partners in a firm sharing profits in the ratio of 3 : 2. On 1-1-2004 their capital balances stood at Rs.

15,000 and Rs. 20,000 respectively. The books also showed a P & L (Dr balance) of Rs. 30,000. The firm had taken

a Joint Life Policy in the names of the partners for Rs. 3,00,000. The annual permium of Rs. 15,000 was payable on

15th February each year. The surrender value of the policy on 1. 1.2004 was Rs. 90,000. The firm was dissolved on

1.1.2004 and the Joint Life Policy surrendered. The insurance company paid Rs. 1,00,000 including bonus.

Show the capital accounts of the partners, giving effect to the above. 4

Q. 9. W Ltd. Is registered with an authorised capital of Rs. 10,00,000 divided into 1,00,000 equity shares of Rs. 10

each. The company offered 80,000 shares for subscription to the public, out of which 75,000 shares were subscribed

for Rs. 6 per share were called and received except a call of Rs. 2 per share on 1000 shares Show the share capital

of the company in Its Balance Sheets as per the provisions of Schedule VI Part I of the Companies Act 1956. 4

Q. 10. On 1. 3.2003 G Ltd. had Rs. 8,00,000 9% debentures due for redemption. The company had a balance of Rs.

3,40,000 in its Debenture Redemption Reserve Account.

Pass necessary journal entries for redemption of debentures. 4


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Q. 11. On 1.4. 1999 A Ltd. issued2000 7% debentures of Rs. 100 each at a discount of 10% redeemable at par after

4 years by converting them into equity shares of Rs. 100 each issued at a permium of 25%.

Pass necessary journal entries for the issue and redemption of debentures. 4

Q. 12.A, B and C were partners In a firm sharing profits in the ratio of 3 : 2 : 1. The Balance Sheet as on 31.3.2003

was as follows:


Creditors

Reserves

A's Capital

B's Capital

C's Capital

4.000

6,000

24,000

12,000

_8,000

54,000

Building

Plant and machinery

Stock

Debtors

Cash at bank

20,000

16,000

5,100

6,000

_6,9000

54,000

A died on 30.9.2003. Under the partnership agreement the executors of a deceased partner were entitled to:

(a) Amount standing to the credit of partner's capital account.

(b) Interest on capital at 12% per annum.

(c) Share of goodwill ofl the basis of four years purchase of last three years average profit.

(d) Share of profit from the closing of the last financial year to the date of death on the basis of last year's profit.

Profits for the year 2001,2002 and 2003 Were Rs. 8,000, Rs. 12,000 and Rs. 7,000 respectively.

Prepare A's Capital account to be rendered to his executors. 6

Q. 13. Mohan, Sohan and Rohan were partners in a firm sharing profits in the ratio of 2 : 2: 1. On 28.2.2004 their firm

was dissolved. The Balance Sheet of the firm on the date of dissolution was as following:


Creditors

Mohan's Capital

Sohan's Capital

80,000

75,000

5,000

_______

1,60,000

Cash

Sundry Assets

Rohan's Capital

7,000

1,30,000

23,000

_______

54,000

Sundry Assets were taken over by Rohan for Rs. 65,000 and Mohan too over the Creditors for Rs. 75,000. Expenses

of dissolution paid by Sohan were Rs. 5,000. Prepare Realisation Account, Partner's Capital Accounts and Cash

Account. 6

Q. 14. (a) X Ltd. forfeited 1,000 Equity shares of Rs. 10 each Issued at a premium of Rs. 3 per share for the non-

payment of final call of Rs. 6 (Including premium) per share, The forfeited shares were re-Issued as fully paid up for

Rs. 7 per share.

Pass necessary Journal entries in the books of the company. 2

(b) V Ltd. forfeited 80 Equity shares of Rs. 10 each issued at a discount of 10% for the non-payment of first and final

call of Rs. 3 per share. The forfeited shares were re-issued at Rs.12 per share as fully paid up.

Pass necessary journal entries in the books of the company. 3

(c) Z Ltd. Issued Equity shares of Rs. 100 each at a permium of Rs. 10 per share for the purchase of furniture of Rs.


21/35

99,000.

Pass necessary Journal entry for issue of shares. 1

Q. 15.A and B are partners in a firm sharing profits in the ratio of 2 : 1. C is admitted into the firm with 1/4th share in

profits. He will bring Rs. 30,000 as his capital. The Balance Sheet of A and B as on 31.3.2002 was as under:


Creditors

Bills Reserve

General Reserve

A's Capital

B's Capital

8,000

4,000

6,000

52,000

30,000

_________

1,00,000

Cash

Debtors

Stock

Furniture

Machinery

Building

12,000

8,000

10,000

5,000

25,000

_40,000

1,00,000

Other terms of the agreement are as under:

(a) C will bring in Rs. 12,000 as his share of goodwill.

(b) Building was valued at Rs. 45,000 and Machinery at Rs. 23,000.

(c) A provision for bad debts is to be created @6% on debtors.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the new firm. 8

Or

X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2: 1. Their Balance Sheet on 31.3.2003 was as

follows:


Creditors

Reserve

X's Capital

Y's Capital

Z's Capital

49,000

18,500

82,000

60,000

75,000

2,85,000

Cash

Debtors

Stock

Building

Patents

8,000

19,000

42,000

2,07,000

9,000

2,85,000

Y retired on 31.3.2003 on the following terms:

(i) Goodwill of the firm was valued at Rs. 70,000, and was not to appear in the books.

(ii) Bad debts amounting to Rs. 2,000 were to be written off.

(iii) Patents were considered as valueless.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of X and Z after V's retirement.


Q. 16. What is meant by 'Funds'? 2

Q. 17. State any two objectives of preparing a 'Cash Flow Statement'. 2


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Q. 18. State any three limitations of Analysis of Financial Statements. 3

Q. 19. Prepare a common size Balance Sheet and comment of the financial position of A Ltd. and B Ltd. The Balance

Sheets of A Ltd. and B Ltd. as at3I .3.2003 are given below: 3

Liabilities A Ltd. Rs. A Ltd. Rs. Assets A Ltd. Rs. A Ltd. Rs.

Share Capital


Current Liabilities

6,00,000

3,00,000

1,00,000

10,00,000

8,00,000

2,50,000

1,50,000

12,00,000

Fixed Assets

Current Assets

4,00,000

6,00,000

________

10,00,000

7,00,000

5,00,000

________

12,00,000

Q. 20. Calculate any two of the following ratios from the given information: 4

(a) Operating ratio

(b) Stock turnover ratio

(c) Proprietary ratio

Information:

Net sales Rs. 3,75,000; Cost of Goods sold Rs. 1, 08,500;. Administrative expenses Rs. 42,000; Selling expenses

Rs. 47,500; Share capital Rs. 8,00,000; Reserves Rs. 3,50,000; Long term loans Rs. 8,20,000; Fixed assets (Net)

Rs. 4,62,000; investments Rs. 2,42,500;

Q.21. Following are the Balance Sheets of Z Ltd. as at 31st March, 2002 and 2003:

Liabilities 2002 Rs. 2003 Rs. Assets 2002 Rs. 2002 Rs.

Equity Share Cap.

Reserves

8% Debentures

Accounts Payable

Outstanding Expe-

Provisions

10,00,000

8.10,000

4,00,000

3,20,000

20,000

20,000

_________

25,70,000

15,00,000

10,15,000

6,00,000

2,90,000

65,000

30,000

_________

35,00,000

Land

Building

Accumulated

Depreciation

Inventory

Accounts Receivable

Cash


9,00,000

16,50,000

(4,00,000)

2,10,000

1,70,000

25,000

15,000

25,70,000

11,00,000

26,00,000

(7,00,000)

2,15,000

1,85,000

90,000

10,000

35,00,000


Dividend Rs. 30,000 was - during the year.

Prepare Schedule of Changes in Working Capital, compute Funds from Operations and prepare Statement of

Changes in Financial Position. 6

Or

On March 31st, 2003 Ramesh and Co. indicated a profit of Rs. 1,25,000, after considering the following:

Rs.Depreciation on buildingsDepreciation on plant and machinery

Amortization of goodwillGain on sale of machinery

25,000

45,000

20,000


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10,000

The current assets and current liabilities at the beginning and the end of the year are:

1-4-2002

Rs.

31-2-2003

Rs.Accounts ReceivableStock on handCash in hand

Accounts payableExpenses payableBank overdraft

35,00075,00018,00030,00010,00060,000

45,00069,00030,00032,0005,000

35,000

Ascertain the net cash (cash flow) from operating activities.



PART A: PARTNERSHIP ANDCOMPANY ACCOUNT

Q. 1. Distinguish between fixed and fluctuating capital. 2

Q. 2. What is meant by reserve capital? 2

Q. 3. State the meaning of calls-in-advance. 2

Q. 4. What is meant by debenture? 2

Q. 5.A Ltd. took over assets of Rs. 10,00,000 and creditors of RS. 1,00000 from B Ltd. and issued 6% debentures of

Rs. 100 each at a pr of 25% as purchase Consideration.

Pass necessary journal entries in the books of A Ltd. 3

Q. 6.A, B and Care partners in a firm with capitals of Rs. 40,000, Rs. 60,000 and Rs. 80,000 respectively. After the

accounts of the firm for the year have been closed it is discovered that interest at the rate of 8% p.a. as provided in

the partnership agreement has not been credited to the capital accounts of the partners before distribution of profits.

It is decided to make an adjustment entry at the beginning of the next year.

Pass the necessary journal entry.

Q. 7. X and Y were partners in a firm in sharing profits in the ratio of 3 : 2. On 10.3.2004 they admitted Z as a new

partner in the firm for 3/13 share in the profits. The new profit sharing ratio will be 5 : 5 : 3.Z contributed the following

assets towards his capital and for his share of goodwill (premium):

Stock RS. 40,000; Debtors Rs. 60,000; Land Rs. 1,00,000 and Plant and Machinery Rs. 60,000. On the date of

admission of Z the goodwill of the firm was valued at Rs. 5,20,000, which Is not appear in the books.

Pass necessary journal entries in the books of the firm on Z's admission. Show your calculations clearly. 4

Q. 8. L and M were partners in a firm sharing profits in the ratio of4:3. The firm was dissolved on 28.2.2004.

Pass necessary journal entries for the following transactions: 4

(i) Debtors Rs.20,000 were taken over by L for R. 18,000.


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(ii) Creditors Rs. 15,000 were paid at a discount of 5%.

(iii) Expenses of dissolution Rs. 1,000 were paid by M.

(iv) Loss on realisation was Rs. 7,000

Q. 9. X Ltd. forfeited 750 shares of Rs. 100 each issued at a discount of 10% for the non-payment of the first call of

Rs. 20 per share. The final call of Rs. 30 per share was not called. Out of the forfeited shares 500 shares werereissued as fully paid for Rs. 20,000.

Pass necessary journalentries. 4

Q. 10.A Ltd. issued 1,00,000 9% debentures of Rs. 100 each at a discount of 6%, redeemable Ma premium of 5%

after 3 years payable as: Rs. 50 on application and Rs. 44 on allotment. Pass necessary journal entries for issue of

debentures. 4

Q. 11.AH Ltd. issued Rs. 20,00,000; 9% debentures of Rs. 100 each at a discount of 10% redeemable after five

years by converting them into equity shares of Rs. 10 each. Pass necessary journal entries for the issue and

redemption of debentures. 4

Q. 12. X, V and Z were partners in a firm sharing profits in the ratio of 3:2: 1. The firm closes its accounts on 31st

March every year. X died on 30-9-2004 . On that date credit balance in his capital account was Rs. 30,000. The firm

had general reserve of Rs. 16,000 on that date. The partnership deed provided that on the death of a partner:

(a) Interest on capital at the rate of 10% per annum shall be allowed.

(b) Goodwill will be calculated on the basis of 3 years purchase of the four years average profits which were as

follows:

Profits for the years ending 31st March 2003 ,2002,2001 and 2000 were Rs. 14,000, Rs. 16,000, Rs. 20,000 and Rs.

10,000 respectively.

(c) The deceased partner's share of profit upto the date of death will be calculated on the basis of last year's profits.

Prepare X's capital account to be shown to his executors.

Q. 13. Following is the Balance Sheet of Anju and Manju who are partners in a firm sharing profits in the ratio of 3 : 2,

as at 31.3.2003:


Creditors

General reserve

Anju's Capital

Manju's Capital

31,500

1,250

5,000

4,000

_________

41,750

Plant and machinery

Stock

Debtors 10,000

Less: Provision for _500

bad debts

Bank

Profit and loss account

21,000

3,000

9,500

5,750

2,50041,750

The firm was dissolved on 31.3.2003. Plant and machinery realised Rs. 16,000 and stock Rs. 2,500. Rs. 9,000 were

collected from the debtors. Creditors were paid Rs. 30,000 in settlement.

Prepare Realisation Account, Capital Accounts of Anju and Manju and Bank Account to close the books of the firm.

Q. 14. X Ltd. invited applications for the issue of 10,00,000 equity shares of Rs. 10 each payable as follows:


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On application and allotment Rs. 3 per shareOn 1st call Rs. 4 per shareOn second and final call Rs. 3 per share

Applications for 15,00,000 shares were received and pro-rata allotment was made to al! the applicants. Excess

application money was adjusted on the sums due on first call. When the first call was made one shareholder who had

applied for 1 5,000 shares did not pay the first call money.Pass necessary journal entries in the books of the company. 6

Q. 15. K, L and M were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31.3.2003 the Balance Sheet of

the firm was as follows:

Liabilities Amount Rs. Assets Amount Rs.

Creditors

K's Capital

L's capital

M's capital

30,000

40,000

36,000

32.000

________

1,38,000

Bank

Debtors 16,000

Less: provision for

bad debts 2,000

Building

Profit and Loss Account

20,000

14,000

1,00,400

3,600

1.38.000

L retired from the firm on the following terms:

(a) The new profit sharing ratio between K and M will be 2 : 1.

(b) Goodwill of the firm is valued at Rs. 72,000, which is not to be shown in the books.

(c) Provision for bad debts is to be made at the rate of 10% on debtors.

(d) Creditors of Rs. 4,000 will not be claimed.

Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of K and M after L's retirement.

Or

A and B are partners in a firm sharing profits in the ratio of 2 :1. Their Balance Sheet as at 31.3.2003. was as follows:


Bank

Creditors

A's capital

B's capital

60,00

1,00,000

1,80,000

1,70,000

5,10,000

Cash

Debtors

Stock

Land and building

10,000

1,00,000

2,00,000

2,00,000

5,10,000

On 1.4.2003 C is admitted to the firm for 1/4the share on. the following terms:

(a) He will bring in Rs. 1,50,000 as his capital and Rs. 60,000 for his share of goodwill.

(b) Land and Building is valued at Rs. 2,50,000 and stock at Rs. 1,85,000.

(c) Rs. 5,000 is provided for doubtful debts.

Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of A, B and C. 8


Q. 16. What is meant by a Cash Flow Statement? 2


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Q. 17. State the meaning of 'Funds from Operations'. 2

Q. 18. State any three advantages of analysis of financial statements. 3

Q. 19. Prepare a common size Balance Sheet and comment on the financial position of X Ltd. and Y Ltd. The

Balance Sheets of X Ltd. and Y Ltd. as at 31.3.2003 are given below: 3

Liabilities X Ltd.

Rs.

Y Ltd.

Rs. .

Assets X Ltd.

Rs.

Y Ltd.

Rs.

Share and capital

Reserves and surplus

Current liabilities

9,00,000

4,00,000

2,00,000

15,00,000

12,00,000

3,50,000

2,50,000

18,00,000

Fixed Assets

Current Assets

10,00,000

5,00,000

________

15,00,000

16,00,000

2,00,000

18,00,000

18,00,000

Q. 20. Calculate any two of the following ratios from the given information:

(a) Gross Profit Ratio

(b) Stock Turnover Ratio

(c) Proprietary Ratio

Information:

Net Sales Rs. 4,00,000; Cost of goods sold Rs. 2,00,500; Administrative expenses Rs. 45,000; Selling expenses Rs.

57,000; Share capital Rs. 8,50,000; Reserves and Surplus Rs. 3,00,000;Long-term loans Rs. 8,20,000; Fixed assets

(net) Rs. 4,62,000; Investments Rs. 2,42,500; Debtors Rs. 72,000; Opening stock Rs. 2,40,000; Closing stock Rs.

2,10,000 and Bank Balance Rs. 3,00,000. 4

Q. 21. Following are the Balance Sheets of R Ltd. as at 31st March, 2002 and 2003:

Liabilities2002

Rs.

2003

Rs. .Assets

2002

Rs.

2003

Rs.

Equity share capital

Reserves

8% debentures

accounts payable

outstanding expenses

provision for taxation

5,00,000

4,05,000

2,50,000

1,60,000

10,000

10,000

________

13,35,000

7,50,000

5,07,500

3,00,000

1,45,000

32,500

15,000

_______

17,50,000

Land

Building

Accumulated

Depreciation

Inventory

Accounts receivable

Cash

Pre. Expenses

4,50,000

8,25,000

(2,00,000)

1,05,000

1,35,000

12,500

_7,500

13,35,000

5,40,000

13,00,000

(3,50,000

1,07,500

1,42,500

5,000

_5,000

17,50,000


Dividend Rs. 40,000 was paid during the year.



Or


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Monika Ltd. reported at net profit of Rs. 15,000 for the year ending on 31.3.2003 after taking the following into

consideration:

Rs.

Depreciation on plant and machinery

Depreciation on land and buildingsAmortisation of goodwill

Loss on sale of machinery

15,000

45,00020,000

5,000



PART A - PARTNERSHIP AND COMPANY ACCOUNT

Q. 1. What is meant by partnership' 2

Q. 2. What is meant Reserve capital? 2

Q. 3. State any two purposes for which balance to the credit of security premium account can be used. 2

Q. 4. On 15.2.2004 'A' LTD invited applications for issue of 1,00,000 9% debentures of Rs. 100 each at a discount of

6%, redeemable at par after 3 years. The full amount was payable on application and the debentures were Issued on

15.3.2004. Pass the journal entries for the above transactions. 2

Q. 5. X Ltd. purchased assets of Y ltd. as under:

Plant and Machinery Rs. 8,00,000Land and Building Rs. 72,00,000

The purchase consideration was Rs. 80,00,000. Rs. 20,00,000 were paid through bank and the remaining by issue of

6% debentures of Rs. 100 each at a premium of 20%.

Pass necessary journal entries in the books of X Ltd. 3

Q. 6.A and B are partners us firm sharing profits in the ratio of 2; 1. On 1-4-2002 they decide to admit C for 1/5 share

in profits with a guaranteed amount of Rs. 25,000 per annum A undertook to meet the liability arising out of the

guaranteed amount to C The firm earned a profit of Es. 75,000 for the year ended March 31,2003.

Perpare Profit and Loss Appropriation Account. 3

Q. 7. X and Y are partners in a firm sharing profits in the ratio of 5:3. On March 1, 2004 they admitted Z as a new

partner. The new profit sharing ratio will be 4 : 3 : 2. Z brought in Rs. 1,00,000 in cash as his share of capital but

could not bring any amount for goodwill in cash. The firm's goodwill on Vs admission was valued at Rs. 1,80,000. Atthe time of Z's admission goodwill existed hi the books of the firm at Rs. 2,40,000.

Pass necessary journal entries in the books of the firm on Vs admission. Show your workings clearly. 4

Q. 8. P and Q are partners in a firm sharing profits in the ratio of 3 : 2. On 1-1-2004 their capital balances stood at Rs.

15,000 and Rs. 20,000 respectively. The books also showed a P & L (Dr balance) of Rs. 30,000. The firm had taken

a Joint Life Policy in the names of the partners for Rs. 3,00,000. The annual permium of Rs. 15,000 was payable on

15th February each year. The surrender value of the policy on 1. 1.2004 was Rs. 90,000. The firm was dissolved on


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1.1.2004 and the Joint Life Policy surrendered. The insurance company paid Rs. 1,00,000 including bonus.

Show the capital accounts of the partners, giving effect to the above. 4

Q. 9. W Ltd. Is registered with an authorised capital of Rs. 10,00,000 divided into 1,00,000 equity shares of Rs. 10

each. The company offered 80,000 shares for subscription to the public, out of which 75,000 shares were subscribed

for Rs. 6 per share were called and received except a call of Rs. 2 per share on 1000 shares Show the share capitalof the company in Its Balance Sheets as per the provisions of Schedule VI Part I of the Companies Act 1956. 4

Q. 10. On 1. 3.2003 G Ltd. had Rs. 8,00,000 9% debentures due for redemption. The company had a balance of Rs.

3,40,000 in its Debenture Redemption Reserve Account.

Pass necessary journal entries for redemption of debentures. 4

Q. 11. On 1.4. 1999 A Ltd. issued2000 7% debentures of Rs. 100 each at a discount of 10% redeemable at par after

4 years by converting them into equity shares of Rs. 100 each issued at a permium of 25%.

Pass necessary journal entries for the issue and redemption of debentures. 4

Q. 12.A, B and C were partners In a firm sharing profits in the ratio of 3 : 2 : 1. The Balance Sheet as on 31.3.2003

was as follows:


Creditors

Reserves

A's Capital

B's Capital

C's Capital

4.000

6,000

24,000

12,000

_8,000

54,000

Building

Plant and machinery

Stock

Debtors

Cash at bank

20,000

16,000

5,100

6,000

_6,9000

54,000

A died on 30.9.2003. Under the partnership agreement the executors of a deceased partner were entitled to:

(a) Amount standing to the credit of partner's capital account.

(b) Interest on capital at 12% per annum.

(c) Share of goodwill ofl the basis of four years purchase of last three years average profit.

(d) Share of profit from the closing of the last financial year to the date of death on the basis of last year's profit.

Profits for the year 2001,2002 and 2003 Were Rs. 8,000, Rs. 12,000 and Rs. 7,000 respectively.

Prepare A's Capital account to be rendered to his executors. 6

Q. 13. Mohan, Sohan and Rohan were partners in a firm sharing profits in the ratio of 2 : 2: 1. On 28.2.2004 their firm

was dissolved. The Balance Sheet of the firm on the date of dissolution was as following:


Creditors

Mohan's Capital

Sohan's Capital

80,000

75,000

5,000

_______

1,60,000

Cash

Sundry Assets

Rohan's Capital

7,000

1,30,000

23,000

_______

54,000


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Sundry Assets were taken over by Rohan for Rs. 65,000 and Mohan too over the Creditors for Rs. 75,000. Expenses

of dissolution paid by Sohan were Rs. 5,000. Prepare Realisation Account, Partner's Capital Accounts and Cash

Account. 6

Q. 14. (a) X Ltd. forfeited 1,000 Equity shares of Rs. 10 each Issued at a premium of Rs. 3 per share for the non-

payment of final call of Rs. 6 (Including premium) per share, The forfeited shares were re-Issued as fully paid up forRs. 7 per share.

Pass necessary Journal entries in the books of the company. 2

(b) V Ltd. forfeited 80 Equity shares of Rs. 10 each issued at a discount of 10% for the non-payment of first and final

call of Rs. 3 per share. The forfeited shares were re-issued at Rs.12 per share as fully paid up.


(c) Z Ltd. Issued Equity shares of Rs. 100 each at a permium of Rs. 10 per share for the purchase of furniture of Rs.

99,000.

Pass necessary Journal entry for issue of shares. 1

Q. 15.A and B are partners in a firm sharing profits in the ratio of 2 : 1. C is admitted into the firm with 1/4th share in

profits. He will bring Rs. 30,000 as his capital. The Balance Sheet of A and B as on 31.3.2002 was as under:


Creditors

Bills Reserve

General Reserve

A's Capital

B's Capital

8,000

4,000

6,000

52,000

30,000

_________

1,00,000

Cash

Debtors

Stock

Furniture

Machinery

Building

12,000

8,000

10,000

5,000

25,000

_40,000

1,00,000

Other terms of the agreement are as under:

(a) C will bring in Rs. 12,000 as his share of goodwill.

(b) Building was valued at Rs. 45,000 and Machinery at Rs. 23,000.

(c) A provision for bad debts is to be created @6% on debtors.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the new firm. 8

Or

X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2: 1. Their Balance Sheet on 31.3.2003 was as

follows:


Creditors

Reserve

X's Capital

Y's Capital

Z's Capital

49,000

18,500

82,000

60,000

75,000

2,85,000

Cash

Debtors

Stock

Building

Patents

8,000

19,000

42,000

2,07,000

9,000

2,85,000


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Y retired on 31.3.2003 on the following terms:

(i) Goodwill of the firm was valued at Rs. 70,000, and was not to appear in the books.

(ii) Bad debts amounting to Rs. 2,000 were to be written off.

(iii) Patents were considered as valueless.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of X and Z after V's retirement.


Q. 16. What is meant by 'Funds'? 2

Q. 17. State any two objectives of preparing a 'Cash Flow Statement'. 2

Q. 18. State any three limitations of Analysis of Financial Statements. 3

Q. 19. Prepare a common size Balance Sheet and comment of the financial position of A Ltd. and B Ltd. The Balance

Sheets of A Ltd. and B Ltd. as at3I .3.2003 are given below: 3

Liabilities A Ltd. Rs. A Ltd. Rs. Assets A Ltd. Rs. A Ltd. Rs.

Share Capital


Current Liabilities

6,00,000

3,00,000

1,00,000

10,00,000

8,00,000

2,50,000

1,50,000

12,00,000

Fixed Assets

Current Assets

4,00,000

6,00,000

________

10,00,000

7,00,000

5,00,000

________

12,00,000

Q. 20. Calculate any two of the following ratios from the given information: 4

(a) Operating ratio

(b) Stock turnover ratio

(c) Proprietary ratio

Information:

Net sales Rs. 3,75,000; Cost of Goods sold Rs. 1, 08,500;. Administrative expenses Rs. 42,000; Selling expenses

Rs. 47,500; Share capital Rs. 8,00,000; Reserves Rs. 3,50,000; Long term loans Rs. 8,20,000; Fixed assets (Net)

Rs. 4,62,000; investments Rs. 2,42,500;

Q.21. Following are the Balance Sheets of Z Ltd. as at 31st March, 2002 and 2003:

Liabilities 2002 Rs. 2003 Rs. Assets 2002 Rs. 2002 Rs.

Equity Share Cap.

Reserves

8% DebenturesAccounts Payable

Outstanding Expe-

Provisions

10,00,000

8.10,000

4,00,0003,20,000

20,000

20,000

_________

25,70,000

15,00,000

10,15,000

6,00,0002,90,000

65,000

30,000

_________

35,00,000

Land

Building

AccumulatedDepreciation

Inventory

Accounts Receivable

Cash


9,00,000

16,50,000

(4,00,000)

2,10,000

1,70,000

25,000

15,000

25,70,000

11,00,000

26,00,000

(7,00,000)

2,15,000

1,85,000

90,000

10,000

35,00,000


31/35


Dividend Rs. 30,000 was - during the year.



OrOn March 31st, 2003 Ramesh and Co. indicated a profit of Rs. 1,25,000, after considering the following:

Rs.

Depreciation on buildingsDepreciation on plant and machinery

Amortization of goodwillGain on sale of machinery

25,000

45,000

20,000

10,000

The current assets and current liabilities at the beginning and the end of the year are:

1-4-2002

Rs.

31-2-2003

Rs.

Accounts ReceivableStock on handCash in hand

Accounts payableExpenses payableBank overdraft

35,00075,00018,00030,00010,00060,000

45,00069,00030,00032,0005,000

35,000

Ascertain the net cash (cash flow) from operating activities.



PART A: PARTNERSHIP ANDCOMPANY ACCOUNT

Q. 1. Distinguish between fixed and fluctuating capital. 2

Q. 2. What is meant by reserve capital? 2

Q. 3. State the meaning of calls-in-advance. 2

Q. 4. What is meant by debenture? 2

Q. 5.A Ltd. took over assets of Rs. 10,00,000 and creditors of RS. 1,00000 from B Ltd. and issued 6% debentures of

Rs. 100 each at a pr of 25% as purchase Consideration.

Pass necessary journal entries in the books of A Ltd. 3

Q. 6.A, B and Care partners in a firm with capitals of Rs. 40,000, Rs. 60,000 and Rs. 80,000 respectively. After the

accounts of the firm for the year have been closed it is discovered that interest at the rate of 8% p.a. as provided in

the partnership agreement has not been credited to the capital accounts of the partners before distribution of profits.


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It is decided to make an adjustment entry at the beginning of the next year.

Pass the necessary journal entry.

Q. 7. X and Y were partners in a firm in sharing profits in the ratio of 3 : 2. On 10.3.2004 they admitted Z as a new

partner in the firm for 3/13 share in the profits. The new profit sharing ratio will be 5 : 5 : 3.Z contributed the following

assets towards his capital and for his share of goodwill (premium):Stock RS. 40,000; Debtors Rs. 60,000; Land Rs. 1,00,000 and Plant and Machinery Rs. 60,000. On the date of

admission of Z the goodwill of the firm was valued at Rs. 5,20,000, which Is not appear in the books.

Pass necessary journal entries in the books of the firm on Z's admission. Show your calculations clearly. 4

Q. 8. L and M were partners in a firm sharing profits in the ratio of4:3. The firm was dissolved on 28.2.2004.

Pass necessary journal entries for the following transactions: 4

(i) Debtors Rs.20,000 were taken over by L for R. 18,000.

(ii) Creditors Rs. 15,000 were paid at a discount of 5%.

(iii) Expenses of dissolution Rs. 1,000 were paid by M.

(iv) Loss on realisation was Rs. 7,000

Q. 9. X Ltd. forfeited 750 shares of Rs. 100 each issued at a discount of 10% for the non-payment of the first call of

Rs. 20 per share. The final call of Rs. 30 per share was not called. Out of the forfeited shares 500 shares were

reissued as fully paid for Rs. 20,000.

Pass necessary journalentries. 4

Q. 10.A Ltd. issued 1,00,000 9% debentures of Rs. 100 each at a discount of 6%, redeemable Ma premium of 5%

after 3 years payable as: Rs. 50 on application and Rs. 44 on allotment. Pass necessary journal entries for issue of

debentures. 4

Q. 11.AH Ltd. issued Rs. 20,00,000; 9% debentures of Rs. 100 each at a discount of 10% redeemable after five

years by converting them into equity shares of Rs. 10 each. Pass necessary journal entries for the issue and

redemption of debentures. 4

Q. 12. X, V and Z were partners in a firm sharing profits in the ratio of 3:2: 1. The firm closes its accounts on 31st

March every year. X died on 30-9-2004 . On that date credit balance in his capital account was Rs. 30,000. The firm

had general reserve of Rs. 16,000 on that date. The partnership deed provided that on the death of a partner:

(a) Interest on capital at the rate of 10% per annum shall be allowed.

(b) Goodwill will be calculated on the basis of 3 years purchase of the four years average profits which were as

follows:

Profits for the years ending 31st March 2003 ,2002,2001 and 2000 were Rs. 14,000, Rs. 16,000, Rs. 20,000 and Rs.

10,000 respectively.

(c) The deceased partner's share of profit upto the date of death will be calculated on the basis of last year's profits.

Prepare X's capital account to be shown to his executors.

Q. 13. Following is the Balance Sheet of Anju and Manju who are partners in a firm sharing profits in the ratio of 3 : 2,

as at 31.3.2003:



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Creditors

General reserve

Anju's Capital

Manju's Capital

31,500

1,250

5,000

4,000

_________

41,750

Plant and machinery

Stock

Debtors 10,000

Less: Provision for _500

bad debts

BankProfit and loss account

21,000

3,000

9,500

5,7502,500

41,750

The firm was dissolved on 31.3.2003. Plant and machinery realised Rs. 16,000 and stock Rs. 2,500. Rs. 9,000 were

collected from the debtors. Creditors were paid Rs. 30,000 in settlement.

Prepare Realisation Account, Capital Accounts of Anju and Manju and Bank Account to close the books of the firm.

Q. 14. X Ltd. invited applications for the issue of 10,00,000 equity shares of Rs. 10 each payable as follows:

On application and allotment Rs. 3 per share

On 1st call

Rs. 4 per shareOn second and final call Rs. 3 per share

Applications for 15,00,000 shares were received and pro-rata allotment was made to al! the applicants. Excess

application money was adjusted on the sums due on first call. When the first call was made one shareholder who had

applied for 1 5,000 shares did not pay the first call money.


Q. 15. K, L and M were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31.3.2003 the Balance Sheet of

the firm was as follows:


Credi

Documents

Accountancy for class XII Full Question Paper