These Sample papers are part of CBSE Sample Papers for Class 12 Accountancy. Here we have given CBSE Sample Papers for Class 12 Accountancy Paper 4
CBSE Sample Papers for Class 12 Accountancy Paper 4
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Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 4 of Solved CBSE Sample Papers for Class 12 Accountancy is given below with free PDF download solutions.
Time: 3 Hours
Maximum Marks: 80
(i) Please check that this paper contains 23 questions.
(ii) The paper contains two parts A and B.
(iii) Part A is compulsory for all.
(iv) Part B has two options—Option-1 Analysis of Financial Statements and Option-II Computerized Accounting.
(v) Attempt only one option of Part B.
(vi) All parts of a question should be attempted at one place.
PART – A
Partnership Firms and Company Accounts
When the partners’ capitals are fixed, where the drawings made by a partner will be recorded?
State the ratio in which the partners share profits or losses on revalution of assets and liabilities, when there is a change in profit sharing ratio amongst existing partners?
Name the account which is opened to credit the share of profit of the deceased patner, till the time of his death to his capital account.
Give the journal entry to distribute workmen compensation reserve of Rs 60,000 at the time of retirement of Sajjan, when there is no claim against it The firm has three partners- Rajat, Sajjan and Kavita.
What is meant by securities Premium?
What is meant by issue of debentures as a collateral security?
X, Y and Z were sharing profits and losses in the ratio of 5 : 3 : 2. They decided to share future profits and losses in the ratio of 2:3:5 with effect from 1-4-2010. They decided to record the effect of the following, without affecting their book values:
(i) Profit and loss account Rs 24,000
(ii) Advertisement suspense account Rs 12,000
Pass the necessary adjusting entry.
Mohit Ltd. took over assets of Rs 8,40,000 and liabilities of Rs 80,000 of Ram Ltd. at agreed value of Rs 7,20,000. Mohit Ltd. Paid to Ram Ltd. by issuing of 9% debentures of Rs 100 each at a premium of 20%.
Pass the necessary journal entries to record the above transactions in the books of Mohit Ltd.
Rise Ltd. had issued 40,000, 8% debentures of Rs 100 each redeemable on 31st March 2015. It was decided to invest 15% of the face value of debentures to be redeemed towards debenture redemption investment on 30th April 2014. Investments were encashed and debentures were redeemed on due date. Record necessary journal entries for redemption of debentures.
A and B were partners in a firm sharing profits in 4 :3 ratio. They admitted C into partnership who has won a gold medal in world chess championship for 20% share in the profits. C acquired his share of profits in the ratio of 1:2 from A and B.
You are required to:
(i) Identify the value in admitting C into partnership.
(ii) Calculate the new profit sharing ratio of the partners.
A, B, C and D are partners sharing profits in the ratio of 3:3:2:2 respectively. D retires and A, B and C decide to share the future profits in the ratio of 3 : 2:1. Goodwill of the firm is valued at Rs 6,00,000. Goodwill already appears in the books at Rs 4,50,000. The profit for the 1st year after D’s retirement amount to Rs 12,00,000. Give the necessary journal entries to record goodwill and to distribute the profits. Show your calculations clearly.
Kavita Ltd. issued 2000,7% debentures of Rs 500 each at a discount of 6% on April, 2013 redeemable after 6 years. On 1st October 2016, the debentures were redeemed by conversion into equity shares of Rs 100 each at a premium of Rs 25 per share at the option of debenture holders. Record necessary entries for issue and redemption of debentures.
(a) Green Valley Ltd. offered 5,00,000 shares to public for subscription. Applications were received for 7,50,000 shares and pro-rata allotment was made to the applicants of 6,00,000 shares. Arushi applied for 4,800 shares and Navya was alloted 3,000 shares.
From the above information, calculate:
(i) How many applications have been rejected altogether?
(ii) What is the prorata ratio?
(iii) How many shares were allotted to Arushi?
(iv) How many shares were applied by Navya?
(b) Which value has been affected by rejecting the 150000 applications. Suggest a better alternative for the same.
Ravi and Mohan were partners in a firm sharing profits in the ratio of 7 : 5. Their respective fixed capitals were Ravi Rs 10,00,000 and Mohan Rs 7,00,000. The partnership provided for the following:
(i) Interest on capital @ 12% P.a
(ii) Ravi’s salary Rs 6,000 per month and Mohan’s salary Rs 60,000 per year.
The profit for the year ended 31-3-2012 was Rs 5,04,000 which was distributed equally, without providing for the above. Pass an adjustment entry.
Priya and Riya were partners in a firm sharing profits equally. In spite of repeated reminders by the authorities, they kept evading the taxes. The Court ordered for the dissolution of their partnership firm on 31st March 2015. Priya was deputed to realise the assets and to pay the liabilities. She was paid Rs 1,000 as commission for her services. They were having Rs 8,000 in Profit and loss A/c on the date of dissolution. From the information given below, complete realisation A/c, partners’ capital A/c and cash A/c
Dinesh Ltd. invited applications for issuing 10,000 euity shares of Rs 10 each. The amount was payable as follows:
On application Rs 1
On allotment Rs 2
On first call Rs 3
On second and final call-balance.
The issue was fully subscribed. Ram to whom 100 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after allotment. Shyam to whom 150 shares were allotted, Failed to pay the first call. His shares were also forfeited after the first call. Afterwards, the second and final call was made. Mohan to whom 50 shares were alloted failed to pay the second and final call. His shares were also forfeited. All the forfeited shares were re-issued at Rs 9 per share fully paid up. Pass necessary journal entries in the books of Dinesh Ltd.
Som Ltd. invited applications for issuing 60,000 equity shares of Rs 100 each at a premium of Rs 50 per share. The amount was payable as follows:
On application Rs 75 per share (including premium Rs 25) on allotment Rs 50 per share (including premium Rs 25) on first and final call – the balance amount. Applications for 55,000 shares were received. Allotment was made to all the applicants and the company received all money due on allotment except K, who was allotted 500 shares and his shares were immediately forfeited afterwards the first and final call was made. L to whom 300 shares were allotted failed to pay the first and final call. His shares were also forfeited. 300 shares of K and 200 shares of L were re-issued for Rs 75,000 fully paid up.
Pass necessary journal entries in the books of Som Ltd. for the above transactions.
On 31st march 2012, the balance sheet of Ram and Shyam who were sharing profits in the ratio of 3 :1 was as follows:
They decided to admit, Mohan on April 1st 2012 for 1/5th share on the following terms:
(i) Mohan shall bring Rs 6,000 as his share of premium.
(ii) That unaccounted accrued income of Rs 100 be provided for.
(iii) The market value of investments was Rs 4,500
(iv) A debtor whose dues of Rs 500 was written off as bad debts paid Rs 400 in full settlement.
(v) Mohan to bring in capital to the extent of 1/5th of the total capital of the new firm. Prepare revaluation A/c, partners’ capital A/c and the balance sheet of the new firm.
A, B and C were partners sharing profits in the ratio of 3:1:1. Their balance as on March 312011, the date on which they dissolve their firm, was as follows:
It was agreed that:
(a) A to take over bills receivables at Rs 800, debtors amounting to Rs 20,000 at Rs 17,200 and the creditors of Rs 6,000 were to be paid by him at this figure.
(b) B is to take over all stock for Rs 7,000 and some sundry assets at Rs 7,200 (being 10% less than the book value).
(c) C to take over remaining Sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs 300.
(d) The expenses of realisation were Rs 270. The remaining debtors were sold to a debt collecting agency at 50% of the book value. Prepare realisation A/c, partners capital A/c and cash A/c.
‘Analysis of Financial Statements’
Sale of marketable securities at par would result in inflow, outflow or No flow of cash.
Where will a manufacturing company record dividend received while preparing cash flow statement?
Give major heading and sub heading under which following items will be shown in a company’s balance sheet as per schedule III, part I of the companies Act 2013:
(a) Preliminary expenses,
(c) Long term investments,
(d) Securities premium reserve,
(e) Unclaimed dividend,
(f) Encashment of employees earned leave payable on retirement,
(g) Provision for doubtful debts,
(h) Interest on calls in arrears.
From the following information, calculate the working capital turnover ratio.
Cost of revenue from operations Rs 5,00,000 Gross profit ratio 20%
Fixed assets Rs 5,00,000
Capital employed Rs 7,50,000
(a) What is the meaning and purpose of analysis of financial statements?
(b) Name any two tools of analysis of financial statements.
Following is the balance sheet of Aran Ltd. as on 31st March 2015 and 2014.
Prepare cash flow statement after taking into account the following adjustments: Tax paid during the year amounted to Rs 98,000.
Drawing (except permanent drawings) are recorded on the debit side of the partners’ current accounts when there partners capitals are fixed.
Partners share profits or losses in the old profit sharing ratio, in the event of revaluation of assets and liabilities.
Profit and loss suspense account is opened to credit the share of profit of the deceased partner, till the time of his/her death to his/her capital account.
In case of no claim against workmen compensation Reserve, the following, entry needs to be passed:
Securities premium is the excess amount, charged by a company for issuing securities (Shares, debentures etc.) over its face value.
Issue of debentures as a collateral security means securing underlying asset or loan taken,by issuing debentures as additional or secondary security over and above the prime or principal security.
Books of Rise Ltd.
Note: Interest on investment is not calculated because rate of interest is not given.
(i) Value involved in admitting C is promoting sports culture in the country.
(ii) C acquired his share of profit (20% or ) from A and B in the ratio of 1 : 2, this means
Books of Kavita Ltd.
(a) (i) Application for 1,50,000 shares have been rejected altogether since allotment was made to the applicants of 6,00,000 shares.
(ii) Pro rata ratio = No of shares allotted : No. of shares applied = 5,00,000 : 6,00,000 = 5:6
(iii) No. of shares allotted to Arushi = 4,800 x = 4000 shares
(iv) No. of shares applied by Navya = 3,000 x = = 3600 shares
(b) (i) Value of equality has been affected by rejecting the 1,50,000 applications.
(ii) Better alternative – Pro-rata allotment to all applicants so that the rejected applicants may not be demotivated from applying for shares in future.
Sale of marketable securities at par would result no flow of cash.
Dividend and interest received by a manufacturing company will be recorded under investing activities.
Working capital = Capital employed – Fixed assets = 7,50,000 – 5,00,000 = 2,50,000
Calculation of revenue from operations:
When sales is = 100, Gross profit is = 20
Cost is 100 – 20 = 80
(a) Analysis of financial statements is a systematic process of identifying the financial strengths and weaknesses of the firm by establishing relationship between the items of the balance sheet and income statement.
Objectives of financial statements analysis are:
(i) Measure the short term solvency of the enterprise.
(ii) Measure the long term solvency of the enterprise.
(iii) Measure the operating efficiency and profitability of the enterprise.
(iv) Compare intra-firm position in the industry.
(b) The tools of analysis of financial statements are:
(i) Common size statement
(ii) Ratio analysis
(iii) Cash flow statement.
Cash Flow Statement
for the year ended March 31, 2015.
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