Manish Papneja Memorial Public School, Ismailabad(KKR) II Pre- Board Examination, January 2013 Class XII Subject - Accountancy

Time: 3 hrs. M.M:80 General Instructions: (i) This question paper contains two parts A & b (ii) All Parts of Questions should be attempted at one place. PART-A 1. Why are assets and liabilities revalued on the admission of a new partner? 1 2. State the provision of Indian Partnership Act, 1932 relating to the Interest on Capital and Interest on Partners Loan, in the absence of any provision in the partnership deed. 1 3. State one difference between the average profit and super profit. 1 4. Samit and Shalini are partner in a firm sharing profits in 5:3 ratio. They admit Surbhi into the firm and the new profit sharing ratio has agreed at 4:2:1. Calculate the sacrificing ratio. 1 5. State two provision of the Companies Act, 1956 for the issue of shares at a discount. 1 6. What is meant by Reserve Capital? 1 7. State the meaning of Debentures issued as a Collateral Security. 1 8. Anu and Priti are partners in a firm sharing profits in the ratio of 2:1 . On 01.04.2011 they decide to admit Kapil for 1/5 share in profits with a guaranteed amount of Rs.50,000 per annum. Anu undertook to meet the liability arising out of guaranteed amount to Kapil. The firm earned a profit Rs. 1,50,000 for the year ended March 31, 2012. Prepare Profit and Loss Appropriation Account. 3 9. Rajesh Ltd. Forfeited 300 shares of 10 each (Rs. 8 called up) issued at a premium of Rs. 2 per share to Mr. Varun, on which he had paid application money of Rs . 5 per share , for non-payment of allotment money of Rs. 5 per share (including premium).Out of these, 210 shares were issued to Mr. Sahil as Rs. 8 called up for Rs. 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares. 3 10. Journalise the following transactions: 3 (i) Ben Ltd. Issued 1,800, 12 % Debentures of Rs 1,000 at Rs 980 per debenture repayable (ii) Tom Ltd. Issured 1,800, 12% Debentures of Rs.1,000 each at per repayable at Rs. 1,050 each (iii) Jery Ltd. Issured 1,800, 12% Debentures of Rs.1,000 each at Rs. 1,050 each repayable Rs.1,000 each. 11. Pradeep and Ashish formed a partnership firm for manufacturing some chemicals. They decided to launch a new range of herbal product. As they are in a hurry, they have tested products on animals only. The necessary information is missing on the package, They also plans to launch a new factory in a tribal area where the required products are easily available and the labour-men, women and children are available for work at low wages in the absence of development opportunities and school. For this they need more capital. Pardeep therefore persuaded a rich friend of his ahmed, who hailed from west Bengal to be a partner and contribute the required capital. (i) Capital Contribution of Partners: Pardeep Rs. 15,00,000 Ashish Rs.25,00,000 Ahmed Rs. 35,00,000 (ii) Profit will be shored in the equal ratio. (iii) Interest on capital will be allowed at 5% p.a. The profit of the firm for the year ended 31st March 2012 were Rs. 30,00,000. (a) Which value do you find disturbing in above case? (b) Prepare profit and loss Appropriation Account of the firm for the year ending 31st March, 2012 6 st 12. X,Y and Z are partners in a firm in the ratio of 3:2:1. On 1 april,2012 they decided to share profits in future in 1:1:1 and loss on revaluation of assets and liabilities was Rs.66,850. It was decided that

adjustment should be made without making altering the figures of assest and liabilities in the Balnce Sheet. Make adjustment by a single journal entry. 4 13. Trivani Ltd. Has an outstanding liability of 12% Rs 1,000 debentures amounting to Rs. 10,00,000 redeemable at the option of the company by drawing par, or by purchase In the open market. It has a credit balance of Rs 3,50,000 in the profit and loss appropriation Account. It decides to redeem Rs.2,50,000 debentures by the purchase of Rs 2,00,000 debentures in the open market at Rs 990 each and draw Rs 50,000 debentures. You are required to give the journal entries in the books of company. 4 14. Aakriti Ltd. Was formed with a nominal share capital of Rs 1,00,000 divided into 1,00,000 shares of Rs 100 each. The company offers 65,000 shares to the public payable as follow: On Application Rs 30 per share On Allotment Rs 30 per share On First and final call Balance Applications were received for 60,000 shares. All money payable on allotment was duly received, expect on 5000 shares held by shaffi. First and final call was not made by the Aakrti Ltd. Show Ltd. As per revised schedule VI of the companies Act. 1956. Also prepare notes to accounts for the same. 4 st 15. The partners of a firm distributed the profits for the year ended 31 march 2012 Rs. 4,80,000 equally without providing for the following adjustments: (i) Arun and Ajit were entitled to a salary of Rs 24,000 per annum each. (ii) Yogi was entitled to a commission of Rs 32,000 (iii) Arun and Ajit guaranteed a minimum profit to Yogi of Rs 1,60,000 p.a. (iv) Profit were to be shared in the ratio of 3:2:1. Give necessary journal entries for the above adjustments in the books of the firm. 4 st 16. M/s ABC &Co. was a partnership firm. The firm was dissolved on the expiry of fixed term on 31 march 2012. A,B and C share profits and losses in the ratio of 4:3:3. The Balance Sheet of M/s ABC & Co. As on 31st March 2012 Liabilities Amount Assets Amount Capital Accounts A 3,00,000 Land and Buiding 3,00,000 B 2,00,000 Plant and Machinery 2,00,000 CB 1,00,000 6,00,000 Stock Rs Current Account Debetors 70,000 A 10,000 Less : Provision 5,000 65,000 18% Bank Loan 50,000 Cash 75,000 Partners Loan Rs Current Account Rs. A 50,000 B 10,000 B 20,000 70,000 C 5,000 15,000 Sundry Creaditors 70,000 Bills Payable 10,000 Outstanding Salaries 10,000 8,20,000 8,20,000__ 18% Bank loan was secured against Plant and Machinery, which the bank took over and sold for Rs 1,20,000. Balance of Assets (Other than cash) realized Rs. 8,00,000 Realisation expenses were Rs 5,000. Show necessary journal Entries on dissolution of the firm. 6 17. A company offered 1,00,000 shares of Rs. 10 each Payable as Rs. 3 on application, Rs 2.50 on allotment Rs 2.50 on 1st call and Rs 2 on the Final call.

The Public applied for Rs. 1,52,000 shares. The shares were allotted on Pro-rate basis to the application of 1,50,000 shares. All shareholders paid the allotment money excepting our shareholder who was allotted 200 shares. These shares were foreited, the first call was made thereafter. The Forfeited shares were re-issued @ Rs 9 Per share Rs 8 paid up. The Final call was not yet made. Pass necessary Journal entries. Or Soni Computer Ltd. Was formed for the purpose of purchasing Kapil Ltd. With a nominal capital of Rs. 40,00,000 divided into 40,000 shares of Rs. 100 each. 20,000 shares were issued to the vendors against their assets. The balance 20,000 shares were offered to public at a premium of Rs. 5 per share. Amounts payable were: On application 10 On allotment (including premium) 25 On first call 40 On final call 30 Application were received for 28,000 shares. 8,000 application were rejected . All money was received except first call money on 4,000 shares. These shares were forfeited. These shares reissued at Rs. 60 per share Rs. 60 per shares Rs. 70 paid. Final call was not made. Pass journal entries in the books of soni Computers Ltd. To record the above transactions. 8 st 18. On 31 March 2012 the balance sheet of M/s friends sharing profit and losses in the ratio of 6:5:3 stood as follows Liabilities Amount Assets Amount Rs Sundry creatitors 37,800 Cash 3,780 Bills Payable 12,600 Sundry Debtors 52,920 General Reserve 21,000 Stock 58,800 Capital Accounts Rs Furniture 14,700 Satish 70,800 Land & Building 90,300 Satya 59,700 Goodwill 10,500 Sonu 29,100 1,59,600 2,31,000 2,31,000 They agree to admit Shankar into partnership giving him 1/8th shares, on april 1st 2012. On the following terms: (i) Furniture be depreciated by Rs 1,840. (ii) Stock shall be valued 10% less than the balance sheet value. (iii) Provision of Rs. 2640 be made for outstanding repair bill. (iv) The value of Land and building having appreciated be brought upto Rs 1,19,700. (v) Goodwill is valued at Rs 35,840. (vi) Shankar should bring in cash Rs. 29,400 as his capital. After making the above adjustments the capital accounts of the old partners be adjusted on the basis of proportion of shankars capital to his share in the business by bringing in or taking in or taking our cash. You rae required to prepare revaluation Account, Capital Accounts of Partners and balance sheet as april 1,2012 after shankers admission. 8 PART-B 19. Assuming that Debt-equit ratio is 1:2. Sate giving reason whether the ratio will improve, decline or will have no change in case redemption of debenture. 1 20. Which of the following is not an operating activity: (i) Cash paid to supplies of raw materials.

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23.

24.

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(ii) Cash payment of wages to employees. (iii) Cash paid to purchase of machinery. (iv) Repair of office furniture 1 Dividend paid by a trading company is classified under which kind of activity while preparing cash flow statement? 1 Which of the following items of the balance sheet come under the heading current Liabilities and Provision? 3 (i) Goodwill (ii) Unclaimed Dividends (iii) Vehicles (iv) Proposed Dividends (v) Securities Premium Account (vi) Provision Dividends From the following Balance sheet of sun Ltd. As on 31st March 2011 and 2012, prepare a common size balance sheet. Particulars Note No. 2010-11 2011-12 EQUTTY AND LIABILITIES (1) Shareholders Funds (a) Share capital 30,00,000 40,00,000 (b) Reserves and Surplus 4,00,000 6,00,000 (2) Non Current Liabilities (a) Long Term Borrowing 10,00,000 12,00,000 (3) Current Liabilities (a) Short Term Borrowing 6,00,000 2,00,000 Total 50,00,000 60,00,000 ASSETS (1) Non Current Assets (a) Fixed assets (i) Tangible assets 30,00,000 40,00,000 (ii) Intangible Assets 6,00,000 2,00,000 (2) Current Assets (a) Inventories 10,00,000 12,00,000 (b) Cash and cash equivalents 4,00,000 6,00,000 Total 50,00,000 60,00,000 Following is the Balance sheet of X Ltd. As on 31st March 2012. Liabilities Amount Assets Amount Bills Payable 10,00,000 Cash 1,00,000 Creditors 15,00,000 Bills Receivable 4,00,000 10% Long-term Loan 10,00,000 Debtors 20,00,000 Profit & Loss A/c 5,00,000 Stock 9,00,000 Reserves 5,00,000 Investment 1,00,000 Share Capital 10,00,000 Fixed Assets (Net) 20,00,000 55,00,000 55,00,000 The existing liquid ratio stands at 1:1. A liability of Rs 4,00,000 under dispute has been paid immediately as per high court order. Show as on 31st March 2012. 4 st Following are the Balance Sheets of Mittal Ltd. As on 31 March 2011 and 2012.Show the effect of this order on liquid ratio and current ratio as on 31st March 2012. 6 Particulars Note No.2010-11 2011-12 (1) Shareholders funds (a) Share Capital 10,00,000 14,00,000 (b) Reserves and Surplus 1 4,00,000 5,00,000

(2) Non Current Liabilities Long term borrowing (3) Current Liabilities Short Term Provisions Total ASSETS (1) Non Current Assets (a) Fixed Assets (i) Tangible Assets (ii) Intangible Assets (2) Current Assets (a) Inventories (b) TRADE Receivables (c) Cash and Cash equivalents Total

2 3

2,00,000 60,000 16,60,000

6,00,000 80,000 25,80,000

4 5

9,00,000 2,00,000 2,00,000 3,00,000 60,000 16,60,000

16,00,000 1,40,000 2,50,000 5,00,000 90,000________ 25,80,000