TOPPER SAMPLE PAPER 2 - K.Ramasamy's blog for ... SAMPLE PAPER 2 ACCOUNTANCY XII Time Allowed - 3 Hrs. Max. Marks - 80 General Instructions:-1. This question paper contains two parts

208 209Accounts–XII TOPPER Sample Papers208 209Accounts–XII TOPPER Sample Papers

TOPPER SAMPLE PAPER 2

ACCOUNTANCY XII

Time Allowed - 3 Hrs. Max. Marks - 80

General Instructions:-1. This question paper contains two parts A & B only.2. All parts of questions should be attempted at one place.3. There is internal choice in some questions.

Part – A

(Accounting for not for profit organization, partnership firms and companies)

Q 1. How would you account for ‘subscription received in advance’ in the books of non-trading organization? 1

Q 2. State one difference between Fixed Capital Account and Fluctuating Capital Account of partners. 1

Q 3. A and B are partners in a firm with capitals of Rs.60,000 and Rs.1,20,000 respectively. They decide to admit C into the partnership for 1/4th share in the future profits. C is to bring in a sum of Rs.70,000 as his capital. Calculate the amount of Goodwill. 1

Q 4. M, N and O are partners sharing profits in the ratio of 5:3:2. O retires and the new profit sharing ratio between M and N is 5:3. State the gaining ratio. 1

Q 5. What are Convertible Debentures? 1

Q 6. Calculate the amount to be debited to Income & Expenditure account under the heading Sports items for the year 2006-2007 in respect of Cosmos Club: 3

Sports items on 1-4-2006 Rs.24,000

Sports items on 31-3-2007 Rs.11,100

Paid for Sports items during the year Rs.63,200

Creditors for supplies of Sports items on 31-3-2007 Rs.14,800

Q 7. Shobha Ltd. bought the business of Pratibha Ltd. on 1-4-2007 consisting of Sundry Assets of Rs.11,20,000 and Creditors Rs.2,00,000 for a purchase consideration of Rs.10,00,000.

Rs.2,00,000 was paid in cash on 3-4-2007 and for the balance 6% Debentures were issued at a premium of 25% on 5-4-2007. Pass necessary journal entries in the books of Shobha Ltd. for the above mentioned transactions. 3

Q 8. On 1-4-2005 Plast Ltd. had made an issue of 3,000, 6% Debentures of Rs.100 each. The company during the year 2006-07 purchased for cancellation 600 of these debentures. The company paid Rs.92 per debenture for 500 debentures and Rs.96 per Debenture for the rest.The expenses on purchase amounted to Rs.600. Pass journal entries in the books of the company for the year 2006-07. 3

Q 9. A, B and C were partners in a firm. They had no partnership deed. They had been in business for 4 years and their P & L for this period was: year ending March 2004 Rs.39,000, March 2005 Rs.54,000, March 2006 Rs.18,000(Loss) and March 2007 Rs.75,000. During the year 2007-08, they agreed to share profits and losses in the ratio 2:2:1 with retrospective effect from the year 2003-04. It was also decided that an interest(charge) of 5% p.a. was to be


provided on capital(fixed). Their capitals were Rs.80,000, Rs.60,000 respectively. Pass a single adjustment entry to adjust the capital accounts of the Partners. 4

Q 10. (a) What is a Revaluation Account?

(b) Why are assets revalued at the time of admission of a partner? 2+2=4

Q 11. Ramesh & Co. forfeited 1,000 shares of Rs.10 each issued at a discount of Rs.1 per share for the non-payment of the first call of Rs.3 per share. The final call of Rs.2 per share not yet been made. 400 of these shares are reissued at Rs.6 per share Rs.8 paid up, and 400 shares reissued at Rs.7 per share fully paid up. Pass journal entries in the books of Ramesh & Co. to record the forfeiture and reissue of shares. 4

Q 12. Prepare an Income & Expenditure Account from the following particulars of Young Achievers Club: 6

Receipts & Payment Account

Receipts Amount(Rs.)

Payments Amount(Rs.)

Balance b/d(1/4/2004) 35,500 Salaries 42,500

Subscription Postages 1,950

2003-2004 4,500 Rent 11,000

2004-2005 70,000 Printing & Stationery 20,000

2005-2006 4,800 79,300 Sports Material 9,500

Donation(Swimming Pool) 1,50,000 Miscellaneous Expenses 2,400

Entrance Fees 3,100 Furniture(1/10/2004) 30,000

Sale of Old magazines 950 10% Investments(1/7/04) 75,000

Balance c/d 76,500

2,68,850 2,68,850

Additional Information:

(a) There are 250 members each paying an annual subscription of Rs.300

(b) Rs.1,500 is still in arrears for the year 2003-2004 for subscription.

(c) Value of sports material at the beginning and at the end of year was Rs.6,000 and Rs.1,500 respectively.

(d) Depreciation to be provided @ 10% p.a. on Furniture.

Q 13. Pass necessary entries for redemption of debentures in the following cases: 6

20,000 12% debentures of Rs.50 each were issued at par to be redeemed as follows:

(a) Redeemable at a premium of 10% by conversion into equity shares issued at par.

(b) Redeemable at a premium of 10% by conversion into equity shares issued at a premium of 25%.

(c) Redeemable at a premium of 8% by conversion into 8% preference shares issued at a discount of 10%.

Q 14. Indu and Hema were partners. The partnership Deed provided for: 6

(a) Profits to be divided as Indu 1/2, Hema 1/3 and 1/6th to be transferred to Reserves.

(b) The accounts are closed on march 31st each year.

(c) In the event of death of a partner the executors will be entitled to:


1. Capital to the credit on the date of death.

2. Interest on capital at 12% p.a.

3. Proportion of profit to the date of death based on the average profits credited for the last 3 years.

4. Share of goodwill based on three years purchase of the average profits of the

preceding 3 years.

Thefollowinginformationisprovidedtoyou:

Indu’s Capital : Rs.1,20,000, Hema’s Capital Rs.80,000, Reserves Rs.30,000, Cash Rs.1,10,000, Investments Rs.70,000

Prepare Indu’s Capital Account to be presented to her executors who died on April 30th , 2007. The profits for the three preceding years were Rs.84,000, Rs.90,000 and Rs.99,000.

Q 15. Prakash Engineering Company issued for public subscription 40,000 equity shares of Rs.10 each at a premium of Rs.2 per share, payable as under:-

On Application Rs.2 per share

On Allotment Rs.5 per share (including premium)

On First Call Rs.2 per share

On Final Call Rs.3 per share

Applications were received for 75,000 Equity shares. The shares were allotted pro-rata to the applicants of 60,000 shares only, the remaining applications being rejected. Money overpaid on applications was utilized towards the sum due on allotment.

‘Ashok’ to whom 3,000 shares were allotted failed to pay the allotment money and the two calls. ‘Baneet’ who applied for 3,000 shares paid the calls money along with the allotment money. Pass journal entries to record the above transactions.

OR

Moneywell Company issued for public subscription 50,000 equity shares of the value of Rs.10 each at a discount of 10%, payable as follows:

Rs.2 on application

Rs.3 on allotment

Rs.2 on the first call

Rs.2 on the final call

The company received applications for 1,25,000 shares. The allotment was done as follows:

(a) Applicants of 15,000 shares were refunded the application money.

(b) Applicant of 60,000 shares were allotted 30,000 shares.

(c) The remaining applicants were allotted 20,000 shares.

Excess of application money received was adjusted against allotment and calls, if any.

Mohan, a shareholder, who had applied for 3,000 shares (group b) failed to pay the allotment money and both the calls. Ramesh, a shareholder (group c) who was allotted 1,500 shares, paid the calls money along with the allotment money. Pass necessary journal entries to record the above transactions. 8

Q 16. A and B are partners sharing profits in the ratio of 4:3. Their Balance Sheet on March 31st 2007 was as under:-


Liabilities Amount(Rs.)

Assets Amount(Rs.)

Sundry Creditors 25,000 Cash 1,800

Bills Payable 5,000 Bank 13,000

Capitals : A : 80,000 B : 60,000 1,40,000

Debtors 30,500Less: Prov. For Bad & DoubtfulDebts 300 30,200

Stock 25,000

Plant 40,000

Buildings 60,000

1,70,000 1,70,000

They agreed to admit C into partnership with effect from April 1st 2007 on the following terms:-

(a) C to bring capital equal to 1/8th of the total capital of the new firm after all adjustments.

(b) Buildings to be appreciated by Rs.7,000 and Plant depreciated by Rs.3,500.

(c) The provision for doubtful debts on debtors to be raised to Rs.650.

(d) The goodwill of the firm to be valued at Rs.28,000 and C to bring his share of premium in cash. Prepare Revaluation Account, Partners’ Capital Account and the Balance Sheet on C’s admission.

The Balance Sheet of A, B and C on 31-3-2007 was as follows:-

Liabilities Amount(Rs.)

Assets

Creditors 50,000 P & L Account 30,000

A’s capital 80,000 Land & Buildings 80,000

B’s capital 80,000 Plant & Machinery 56,000

C’s capital 60,000 Motor Car 54,000

Debtors 48,000

Cash 2,000

2,70,000 2,70,000

ThefollowingtermswereagreeduponforA’sretirement:

(a) Goodwill to be valued at Rs.42,000 and not to be shown in the books after A’s retirement.

(b) Land and Buildings to be appreciated by Rs.20,000.

(c) Plant and Machinery to be reduced to Rs.46,000.

(d) Provision for doubtful debts to be created at 5% on debtors.

(e) Create a provision of Rs.1,400 for discount on creditors.

(f) The sum payable to A to be brought in by B and C in such a manner that their capitals are in proportion to the profit sharing ratio.

Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet to give effect to the above. 8


PART – B(Analysis of Financial Statements)

Q 17. Why is the shareholders interested in analyzing financial statements? 1

Q 18. When is interest received considered as financing activity? 1

Q 19. Quick ratio of a company is 1.5 : 1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company. 1

Q 20. Prepare a common size statement from the following for the year ended 31st March, 2007: 3

Sales Rs.15,00,000

Cost of Goods sold Rs.8,00,000

Operating Expenses Rs.2,10,000

Interest on investments Rs.60,000

Taxes payable @ 50%

Q 21. The following information is provided to you:

Stock Turnover Ratio: 8 times, Average stock: Rs.1,80,000, Gross Profit Ratio: 33⅓%, Closing Stock :Rs.10,000 in excess of Opening Stock.

Based on the above information calculate any two (a) Sales, (b) Cost of goods sold and (c) Closing Stock. 4

Q 22. (a) Calculate Return on Investment from the following information :-

Net profit after tax : Rs.6,50,000; 12.5% Convertible Debentures : Rs.8,00,000; Income Tax :50%; Fixed Assets at cost : Rs.24,60,000; Depreciation Reserve : Rs.4,60,000; Current Assets : Rs.15,00,000; Current Liabilities : Rs.7,00,000.

(b) Profit before Interest and Tax (PBIT) :Rs.3,00,000; 10% Pref. Shares of Rs.100 each: Rs.3,00,000; 20,000 Equity Shares of Rs.10 each; Rate of Tax @ 50%. Calculate Earning per share (EPS). 2+2=4

Q 23. Calculate Cash Flow from operating activities with the following information of X Ltd. 6

1st April,2006(Rs.)

31st march, 2007(Rs.)

P & L Account 50,000 30,000

Bills Receivable 26,000 17,000

Rent Payable 1,600 4,000

Prepaid Insurance 2m800 2,400

Stock 22,000 39,000

Creditors 20,000 10,000

XLtd.hadprovidedforthefollowingitemswhilearrivingattheprofitfortheyear:-

(a) Depreciation on Fixed Assets Rs.24,000.

(b) Writing off preliminary Expenses Rs.6,000.

(c) Loss on sale of furniture Rs.2,000.

(d) Profit on sale of Machinery Rs.4,000.


1. Subscription received in advance is treated as a liability and shown in Balance Sheet (1)

2. When the capitals are fixed, each partner has two accounts, namely capital account and a current account. When the capitals are fluctuating, each partner has only one account, namely capital account. (1)

3. C’s capital = 70,000

C’s share = ¼

Capital of the firm = 70,000 x 4/1 = 2,80,000

A’s capital = 60,000

B’s capital = 1,20,000

C’s capital = 70,000

Total capital of A, B & C = 2,50,000

Goodwill of the firm = 2,80,000 – 2,50,000 = 30,000 (1)

4. Calculation of gaining ratio

Particulars M N O

New ratioOld ratio

5/85/10

3/83/10 2/10

Difference 5/40 3/40

Gaining ratio = 5:3 (1)

5. Debentures which are convertible into equity shares or other securities at a stated rate of exchange either at the option of debenture holders or at the option of company after a specified period. (1)

6. Income & Expenditure A/c

Expenditure Rs. Income Rs.

To amount paid for Sports items 63,200 Add: opening stock 24,000Less: closing stock (11,100)Add: closing creditors 14,800 90,900

(3)

7. Journal Entries

Date Particulars L.F. Rs.(Dr.) Rs.(Cr.)

1.04.07 Assets A/c Dr.Goodwill A/c Dr. To Creditors A/c To Pratibha Ltd. (Being Shobha ltd. took over the assets & liabilities of Pratibha ltd.)

11,20,00080,000

2,00,00010,00,000

3.04.07 Pratibha Ltd. Dr. To Cash A/c (Being some amount paid in cash)

2,00,0002,00,000


5.04.07 Pratibha Ltd. Dr. To 6% Debentures A/c To Securities Premium A/c(Being 6% debentures issued to Pratibha Ltd.at premium)

8,00,0006,40,0001,60,000

(1x3)

8. Journal Entries


Own Debentures A/c Dr. To bank A/c (being 600 own debentures purchased from open market for immediate cancellation)

56,20056,200

6% Debentures A/c Dr. To Own Debentures A/c To profit on cancellation(being debentures cancelled )

60,00056,2003,800

Profit on cancellation A/c Dr. To Capital Reserve A/c (being profit on cancellation transferred to capital reserve A/c )

3,8003,800

(1 x3)

9. Total profit for last 4 years = 39,000+54,000 – 18,000+75,000 = 1,50,000

Interest on capital ( for 4 years)

A= 80,000 x 5/100 x 4 = 16,000

B= 60,000 x 5/100 x 4 = 12,000

C= 60,000 x 5/100 x 4 = 12,000

Profit & Loss Appropriation A/c

Particulars Rs. Particulars Rs.

To interest on capitalA- 16,000B- 12,000C- 12,000

To profit transferred to current A/cA- 44,000B- 44,000C- 22,000

40,000

1,10,000

By Net profit 1,50,000

1,50,000 1,50,000

Amount to be credited to A = 16,000+44,000 = 60,000

Amount to be credited to B = 12,000+44,000 = 56,000

Amount to be credited to C = 12,000+22,000 = 34,000

A B C Total

Amt. to be creditedAmt. already credited

60,00050,000

56,00050,000

34,00050,000

1,50,0001,50,000


Difference 10,000 (cr.) 6,000 (cr.) 16,000 (dr.) ---

Journal Entry


C’s current A/c Dr. To A’s current A/c To B’s current A/c

16,00010,0006,000

(2+1+1)

10. (a) It is prepared to find out the profit or loss on revaluation of assets & liabilities at the time of reconstitution of firm. Profit or loss shown by revaluation account is divided between the old partners in old profit sharing ratio.

(b) Assets & liabilities are revalued because the entire profit or loss due to their revaluation is divided amongst the old partners in their old profit sharing ratio. The new partner should not share such profit or loss because it belongs to the period prior to his admission. (2+2)

11. Journal Entries


Share Capital A/c Dr. To Share Forfeited A/c To Calls in Arrears A/c To Share Discount A/c (being shares forfeited)

8,0004,0003,0001,000

Bank A/c Dr.Share Forfeited A/c Dr.Share Discount A/c Dr.To Share Capital A/c (being 400 shares reissued)

2,400 400 400

3,200

Bank A/c Dr.Share Forfeited A/c Dr.Share Discount A/c Dr.To Share Capital A/c (being 400 shares reissued)

2,800800400

4,000

Share Forfeited A/c Dr. To Capital Reserve A/c (being balance of shares forfeited A/c transferred to capital reserve A/c )

2,0002,000

(1x4)

12. Income & Expenditure A/c

For the year ending 31.03.08


To salaries To PostageTo rentTo Printing & StationeryTo Sports material used(9,500+6,000-1,500)To Miscellaneous expensesTo Depreciation on Furniture

42,5001,950

11,00020,000

14,0002,4001,500

By Subscription 70,000Add: O/s (end) 5,000By Entrance feesBy Sale of old magazinesBy interest on investment( for 9 months)By Deficit

75,0003,100

9505,625

8,675


93,350 93,350

(1/2 x 12)

13. (a) Journal Entries

Date Particulars L.F. Rs.(Dr.) Rs.(Dr.)

12% Debentures A/c Premium on redemption of Deb. Dr.To Debentures holders A/c (Being amt. due to Debentures holders on conversion)

10,00,0001,00,000

11,00,000

Debentures holders A/c Dr. To Equity share capital A/c (Being issue of equity shares at par)

11,00,00011,00,000

(b) Journal Entries



10,00,0001,00,000

11,00,000

Debentures holders A/c Dr. To Equity share capital A/c To Securities premium A/c (Being issue of 8,800 equity shares at a premium of 25%)

11,00,0008,80,0002,20,000

(c) Journal Entries



10,00,000 80,000

10,80,000

Debentures holders A/c Dr.Discount on issue of shares Dr. To 8% Preference share capital A/c (Being issue of 12,000 preference shares at a discount of 10%)

10,80,000 1,20,000

12,00,000

(1 x 6)

14. Indu’s Capital A/c


To Indu’s executor A/c 3,06,640 By balance b/dBy reservesBy Hema’s capital A/cBy Interest on capital A/cBy P & L suspense A/c

1,20,00018,000

1,63,8001,200

3,640

3,06,640 3,06,640


Calculation of P&L suspense = Average profit of last 3 years x 3/5 x 1/12

= 91,000 x 3/5 x 1/12 = 3,640 (1 x6)

15. Journal Entries


Bank A/c Dr. To Share application A/c(Being share application money received on 75,000 shares)

1,50,0001,50,000

Share Application A/c Dr. To Share Capital To Share Allotment To Bank(Being application money transferred)

1,50,00080,00040,00030,000

Share Allotment A/c Dr. To share capital A/c To Securities premium A/c (Being allotment due on 40,000 shares @ Rs3 at a premium of Rs.2)

2,00,0001,20,000

80,000

Bank A/c Dr.Calls in arrears A/c Dr. To share allotment A/c To calls in advance A/c (Being allotment money received)

1,58,00012,000

1,60,00010,000

Share First call A/c Dr. To share capital A/c (Being share first call due)

80,00080,000

Bank A/c Dr.Calls in arrears A/c Dr.Calls in advance A/c Dr. To Share First call A/c(Being call money received )

70,0006,0004,000

80,000

Share Final call A/c Dr. To share capital A/c (Being share final call due)

1,20,0001,20,000

Bank A/c Dr.Calls in arrears A/c Dr.Calls in advance A/c Dr. To Share Final call A/c(Being call money received )

1,05,0009,0006,000

1,20,000

(1 x8 =8)

OR


Journal Entries


Bank A/c Dr. To Share application A/c(Being share application money received on 1,25,000 shares)

2,50,0002,50,000

Share Application A/c Dr. To Share Capital To Share Allotment To Bank(Being application money transferred)

2,50,0001,00,0001,20,000

30,000

Share Allotment A/c Dr.Discount on shares A/c Dr. To share capital A/c (Being allotment due on 50,000 shares )

1,50,00050,000

2,00,000

Bank A/c Dr.Calls in arrears A/c Dr. To share allotment A/c To calls in advance A/c (Being allotment money received)

34,5001,500

30,0006,000

Share First call A/c Dr. To share capital A/c (Being share first call due)

1,00,0001,00,000

Bank A/c Dr.Calls in arrears A/c Dr.Calls in advance A/c Dr. To Share First call A/c(Being call money received )

94,0003,0003,000

1,00,000

Share Final call A/c Dr. To share capital A/c (Being share final call due)

1,00,0001,00,000

Bank A/c Dr.Calls in arrears A/c Dr.Calls in advance A/c Dr. To Share Final call A/c(Being call money received )

94,0003,0003,000

1,00,000

(1 x 8)

16. Revaluation A/c


To PlantTo P/D/DTo ProfitA: 1,800B: 1,350

3,500350

3,150

By Buildings 7,000

7,000 7,000


Partners’ Capital A/c

Particulars A B C Particulars A B C

To balance c/d 83,800 62,850 20,950 By balance b/dBy cash A/c By premium A/c By Revaluation profit

80,000

2,000

1,800

60,000

1,500

1,350

20,950

83,800 62,850 20,950 83,800 62,850 20,950

Balance Sheet

As on 1st April 2008

Liabilities Rs. Assets Rs.

CreditorsBills PayableA’s capital B’s capital C’s capital

25,0005,000

83,80062,85020,950

Cash(1800+20950+3500)BankDebtors 30,500Less: Provision for doubtful debts 650Stock PlantBuilding

26,25013,000

29,85025,00036,50067,000

1,97,600 1,97,600

Working Notes:

1. C’s capital = (A’s capital + B’s capital) x 8/7 x1/8

= (83,800+62,850) x 1/7 = Rs.20,950 (2+3+3)

OR

Revaluation A/c


To Provision for doubtful debtsTo Plant & MachineryTo profit transferred to A – 3,000 B – 3,000 C – 3,000

2,40010,000

9,000

By Land & BuildingsBy Provision for discount on creditors

20,0001,400

21,400 21,400

Partners’ Capital A/c

Particulars A B C Particulars A B C

To A’s capitalTo P & L A/cTo CashTo balance c/d

10,00087,000

7,00010,000

99,500

7,00010,000

99,500

By balance b/d By revaluation ProfitBy B’s capital By C’s capital By cash

80,000

3,0007,0007,000

80,000

3,000

33,500

60,000

3,000

53,500


97,000 1,16,500 1,16,500 97,000 1,16,500 1,16,500

Balance Sheet

As on 31.03. 2008

Liabilities Rs. Assets Rs.

Creditors 50,000Less: Provision for discount on creditors 1,400B’s capital C’s capital

48,60099,50099,500

Cash Debtors 48,000Less: P/D/D 2,400 Land & BuildingPlant & MachineryMotor car

2,000

45,6001,00,000

46,00054,000

2,47,600 2,47,600

New capital of B = (87000+66000+46000) x ½ = 1,99,000 x ½ = 99,500

New capital of C = (87000+66000+46000) x ½ = 1,99,000 x ½ = 99,500 (2+4+2)

PART – B

17. Shareholders of the business are interested in the longevity of the business enterprise and therefore, they want to know the earning capacity of the business and its prospects for future growth & prosperity. (1)

18. Interest received on calls in arrears by a company is considered as financing. (1)

19. Quick ratio will improve as both the liquid assets and current liabilities will decrease by the same amount. (1)

20. Common size Income Statement

Particulars 31.03.07 % on sales

SalesLess: Cost of goods sold

15,00,0008,00,000

10053.3

Gross profitLess: Operating expenses

7,00,0002,10,000

46.714

Operating ProfitAdd: Interest on investment

4,90,00060,000

32.74

Net profit before taxLess: Tax payable

5,50,0002,75,000

36.718.3

Net profit after tax 2,75,000 18.3

(1+2)

21. Stock Turnover Ratio = Cost of goods sold / Average stock = Cost of goods sold / 1,80,000

Cost of goods sold = 180,000 x 8 = 14,40,000

Gross profit ratio = 33 1/3 %

Gross profit = 14,40,000 x ¼ = 3,60,000

Sales = Cost of goods sold + Gross profit

Sales = 14,40,000 + 3,60,000 = 18,00,000

Average stock = opening stock + closing stock / 2

1,80,000 = x + x + 10,000 /2


1,80,000 = x + 5,000

x = 1,75,000

Opening stock = 1,75,000

Closing stock = 1,85,000 (4)

22. (a) Return on Investment = Net profit before int., tax & pref. dividend/Capital employed

Net profit before int., tax & pref. dividend = Net profit after tax +tax + interest

= 6,50,000 +6,50,000 +1,00,000

= 14,00,000

Capital employed = Net fixed assets + Investment + Working capital

= (24,60,000 – 4,60,000) + (15,00,000 – 7,00,000)

= 20,00,000 + 8,00,000 = 28,00,000

Return on Investment = 14,00,000 / 28,00,000 x 100

= 50%

(b) Earning per share = Net profit after int., tax & pref. dividend/ No. of equity shares

Net profit after int., tax & pref. dividend = Net profit before int., tax & pref. dividend – interest - tax – Preference dividend

= 3,00,000 – 1,50,000 – 30,000 =1,20,000

No of equity shares = 20,000

Earning per share = 1,20,000 / 20,000 = Rs.6 (2+2)

23. Cash Flow from Operating Activities

Particulars Amount

Net loss during the yearAdd: Depreciation on fixed assets Preliminary expenses w/o Loss on sale of FurnitureLess: Profit on sale of MachineryOperating profit before changes in working capitalAdd: Bills receivable Rent payable Prepaid insuranceLess: Stock Creditors

(20,000)24,0006,0002,000

(4,000)8,0009,0002,400

400(17,000)(10,000)

Cash used in Operating Activities (7,200)

(1/2 x 12 = 6)

Documents

TOPPER SAMPLE PAPER 2 - K.Ramasamy's blog for ... SAMPLE PAPER 2 ACCOUNTANCY XII Time Allowed - 3 Hrs. Max. Marks - 80 General Instructions:-1. This question paper contains two parts