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 7
CBSE Sample Papers for Class 12 Accountancy Paper 7
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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 7 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
A, B and C are partners decided that no interest on drawings is to be charged to any partner. But, after one year, ‘C’ wants that interest on drawings should be charged to every partner. State how C can do this?
State the liability of partners in case of dissolution of a firm.
When a liability is to be discharged by a partner, why is his capital account credited?
In case of dissolution of a firm, which items on the liabilities side are to be paid last?
State the steps other than rejecting applications that a company can take in case of over subscription.
What is meant by capital reserve?
Sharma and Verma were partners in a firm sharing profits in the ratio of 4 :1. Their capitals on 1-4-2012 were : Sharma Rs 5,00,000 and Verma Rs 1,00,000. The partnership deed provided that Sharma will get a commission of 10% on the net profit after allowing a salary of Rs 5,000 per month to Verma. The profit of the firm for the year ended 31st march was Rs 2,80,000. Prepare profit and loss appropriation account of Sharma and Verma for the year ended 31st March.
Raghav Ltd. purchased a running business from Krishna Ltd. for a sum of Rs 15,00,000, payable Rs 3,00,000 by cheque and for the balance issued 9% debentures of Rs 100 each at par.
The assets and liabilities consisted of the following:
Plant and machinery Rs 4,00,000
Buildings Rs 6,00,000
Stock Rs 5,00,000
Sundry debtors Rs 3,00,000
Sundry creditors Rs 2,00,000
Record necessary journal entries in the books of Raghav Ltd.
G. Ltd. had a balance of Rs 22,00,000 in its statement of profit and loss. Instead of declaring a dividend, it decided to redeem its Rs 20,00,000,9% debentures at a premium of 10% out of profits on 31st March, 2015. The company invested the required amount in fixed deposit in a bank on 30th April, 2014 earning Interest @ 6% P.a Tax was deducted on interest earned @ 10% P.a by the bank. Pass the necessary journal entries in the books of the company for the redemption of debentures.
Shauiya Ltd. offered 4,00,000 shares to public for subscription. Applications were received for 7,00,000 shares and prorata allotment was made to the applicants. Sakshi applied for 3,500 shares and Vandana was alloted 1,600 shares.
On the basis of above information, calculate:
(i) How many applications have been rejected altogether?
(ii) What is pro-rata ratio?
(iii) How many shares were alloted to Sakshi?
(iv) How many share were applied by Vandana?
P, Q and R are partners sharing profits and losses in the ratio 5:3:2. From 1st Januaiy 2006, they dedded to share profits and losses in equal proportion. The partnership deed provides that in the event of any change in ratio, the goodwill should be valued at three year’s purchase of the average of the five year’s profit The profit and loss of proceeding five years are:
Profits 2001 – Rs 60,000 2002 Rs 1,50,000; 2003 – Rs 1,70,000;
2004 – Rs 190,000
Loss: 2005 – Rs 70,000
Give necessary journal entry to record the change.
A and B are partners sharing profit in ratio of 5 : 3, they admit C into firm for 3/10th profit which he takes 2/10th from A and 1/10th from B and brings a part of his share of premium for goodwill in cash. Goodwill account does not appear in books of A and B. Fill the missing information in following journals entries and compute the new ratio of A, B and C.
(a) Vishwakarma Ltd. issued 15,000 Preference shares of Rs 100 each at a premium of 50%. Payments were to be made as — Rs 25 on application; Rs 35 on allotment (including premium) and Rs 45 on first and final call.
The applications for 14,000 shares were received and all are accepted. All the money was duly received except the first and final call on 600 shares.
Show the share capital in the balance sheet of the company, also prepare notes to accounts for the same.
(b) Ratan steel Ltd. decided that 5% jobs in the company will be reserved for the children of company’s employees. State the value involved in such decision.
X and Y are partners sharing profits and losses in the ratio of 3:2. They agree to take Z into partnership for 1/9 share. For this purpose, goodwill is to be valued at two years’ purchase of the average profit of last four years which were as follows,
Year ending on 31March 2009 50,000 (Profit)
Year ending on 31March 2010 120,000 (Profit)
Year ending on 31March 2011 180,000 (Profit)
Year ending on 31March 2012 70,000 (loss)
On 1 april, 2011 a motor bike costing Rs 50000 was purchased and debited to travelling expense account on which depreciation is charged @ 20%. Calculate the value of goodwill.
Babul and Vinay were partners. The partnership deed provides for
(a) Profit to be divided as 1/2 vinay -1/3 Babul and 1/6 to be transfer as reserve.
(b) The accounts are closed on 31 March each year.
(c) In the event of death of a partner, the executors will be entitled to the following:
(i) Capital to the credit on date of death.
(ii) Interest on capital 12% pa.
(iii) Proportion of profit to the date of death based on average profit credited for last 3 years.
(iv) Share of goodwill on the date of death based on average profit credited for the last 3 years.
The following information is provided to you:
Babul’s capital Rs 90,000; Vinay’s capital Rs 60,000; Reserves 30,000, cash Rs 1,10,000, Investment Rs 70,000.
Prepare Vinay’s A/c to be presented to his executors; as he died on April 30th 2007. The profits for the three preceeding years were Rs 48,000, Rs 42,000 and Rs 45,000.
Bhamashah Company Limited made an issue of 1,00,000 equity shares of Rs 10 each at a premium of 20% payable as follows:
On application Rs 2.50 per share
On allotment Rs 4.50 per share
On first and final call – balance.
Applications were received for 2,00,000 equity shares and directors made pro rata allotment Ramu, who had applied for 800 shares did not pay allotment and final call money with result his shares were forfeited. Later on, 80% of forfeited shares were reissued Rs 8 per share fully paid up.
Pass necessary journal entries for the above mentioned transactions to the books of the company.
X Ltd. issued 40,000 equity shares of Rs 10 each at a premium of Rs 2.50 per share. The amount was payable as follows:
On application — Rs 2 per share
On allotment — Rs 4.50 per share (including premium)
and on call — 6 per share.
Owing to heavy subscription, the allotment was made on prorata basis.
(a) Applicants for 20,000 shares were alloted 10,000 shares.
(b) Applicants for 56,000 shares were alloted 14,000 shares.
(c) Applicants for 48,000 shares were alloted 16,000 shares.
It was decided that excess amount received on applications would be utilized on allotment and the surplus will be refunded.
Ram, to whom 1,000 shares were allotted, who belong to category (a) failed to pay allotment money. His shares were forfeited after final call. Pass necessary journal entries in the books of X Ltd. for above transactions.
X, Y and Z were partners sharing profit in the ratio of 2:2:1. The balance sheet on 31 March 2010, when they dissolved the firm was as follows.
It was agreed that:
(i) X to take over furniture at Rs 8,000 and debtors Rs 1,20,000 and the creditors of Rs 16,000 were to be paid by him at figure.
(ii) Y to take all stock Rs 17,000 and Sundry assets at Rs 72,000 (being 10% less than the book value).
(iii) Z to take over remaining assets at 80% of book value and assume responsibility of discharge of loan together with accrued interest of Rs 2,300.
(iv) The expenses of realisation were 27,000. The remaining debtors were sold to a debt collecting agency at 50% of the value. Prepare necessary accounts to close books of firm.
S and K were partners in a firm sharing profit as S – 75% and K – 25%. On 1 April 2008, their position was.
R is now joins the partnership. He agrees to pay partners Rs 20000 by way of goodwill and introduces 1/2 of combined capital of two existing partners after depreciation plant stock at 20% and 10% respectively and raising a provision of 10% against sundry debtors. The new partner is allowed 1/4th profit of firm.
You are required to record the transaction in the books of firm and give the new balance sheet of the new firm.
‘Analysis of Financial Statements’
A mutual fund company received a dividend of Rs 20 lakhs on its investments in another company’s share, where will it appear in cash flow statement?
Mention the net amount of source or use when discount of Rs 2,000 is received on making payment to a creditor of Rs 27,000.
List any four items which are included under the head reserves and surplus of the company’s balance sheet, as per schedule III to companies Act 2013.
From the following information, prepare comparative balance sheet of SMC Ltd.
Inventory turnover ratio: 4 times, inventory at the end was Rs 20,000 more than inventory , in the beginning. Revenue from operations – Rs 3,00,000, Gross profit ratio – 25%. Current liabilities – Rs 40,000, Quick ratio – 0.75 :1. Calculate current ratio.
X Ltd. made a profit of Rs 1,00,000 after charging depredation of Rs 20,000 on assets and transfer to general reserve of Rs 3,000. The goodwill amortised was Rs 7,000 and gain on sale of machinery was Rs 3,000. The other information available to you (changes in value of current assets and current liabilities) is as follows.
At the end of year, Debtor 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 operating activities.
C can do this only if A and B, both agree to his proposal.
(The liabilities of partners are to pay the external debts from realised amount and to give public notice in general).
This liability actually belongs to the firm but if a partner pays it, then he is entitled to receive it from the firm, therefore, his capital account is credited.
Capital accounts or capital of partners are paid at last.
Excess money to be adjusted in allotment and calls.
Reserve created out of capital profits, not generally available for dividend distribution, e.g. profit prior to incorporation.
Profit and Loss Appropriation A/c
Books of G. Ltd.
(i) Number of applications rejected altogether since Pro-rata allotment was made to all the applicants.
(ii) Pro rata ratio = No. of shares allotted: No. of shares applied
4,0, 000: 7,00,000 = 4:7
It mans that 4 shares will be allotted to an applicant who has applied for 7 shares.
(iii) No. of shares allotted to Sakshi = 3,500 x = 2,000 shares.
Calculation of new profit sharing ratio:
(a) Extract of balance sheet of Vishwakarma Ltd.
Calculation of average profit:
(i) Cost of motor bike was wrongly debited to travelling expense account. After rectification, the loss of 2012 will be reduced by Rs 50,000.
(ii) Depreciation on motor bike Rs 10,000 (20% of 50,000) was not charged to profit and loss account of 2012 which will increase the loss of 2012 by Rs 10,000.
Hence, the final loss will be Rs 70,000 – 50,000 + 10,000 = 30,000
Dr. Vinay’s Capital A/c Cr.
In the books of Bhamashah Ltd.
It will be shown under cash inflow from operating activities. The reason being that a mutual fund company is a finance company and it has been received dividend from its primary revenue generating activities.
Use Rs 25,000.
(i) Capital reserve,
(ii) Capital redemption reserve,
(iii) Security premium reserve,
(iv) Debenture redemption reserve,
(v) Revaluation reserve,
(vi) Surplus i.e. balance in statement of profit and loss.
Comparative balance sheet
as at 31st March 2014 and 2015
Calculation of net cash flow from operating activities
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