Visitors Online: 77 | Thursday 18th April 2019
REGISTRATION
Online Fashion Store

CBSE Papers

CBSE Guess > Papers > Question Papers > Class XII > 2003 > Accountancy > Delhi Set-I

ACCOUNTANCY — 2003(Set I—Delhi)


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

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 B’s salary amounted to Rs. 12,500. A provision of 5% of the profit is to be made In respect of manager’s 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 Workmen’s 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, Partner’s Capital Accounts and Balance Sheet of the firm after C’s 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
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/c
Opening Balance    6,000
Profit for the year   14,000
Creditors

16,000
12,000
10,000
4,000
3,000
1,000
24,000


20,000
30,000
1,20,000

Fixed Assets
Joint Life policy
Current Assets
Advertisement Expenditure

40,000
6,000
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 year’s 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 B’s 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:

Liabilities
Rs.
Assets
Rs.

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 Han’s 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.

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. 8 called 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:

Liabilities

Rs.
Assets
Rs.

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. A’s 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:

 
Rs.

Goodwill
Plant and Machinery
Building
Cash at hand
Stock in trade
Stock 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 Loans
Current Liabilities
Provision for Taxation

60,00,000

15,00,000
15,00,000
30,00,000
15,00,000
12,00,000
3,00,000
1,50,00,000

60,00,000

15,00,000
18,00,000
27,00,000
18,00,000
13,20,000
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
Capital Employed

28,000
22,000
46,000
90,000
10,000
4,000
4,000
2,000
2,00,000

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

Particulars
2003 Rs.
2004 Rs.

Debtors
Prepaid Expenses
Accrued Income
Income Received in Advance
Creditors
Bills payable
Outstanding Expenses

42,000
2,000
1,500
800
26,000
13,000
8,000
46,000
2,700
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
2,000
900
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

Accountancy 2003 Question Papers Class XII