LATEST CURRICULUM, MARKS ALLOTTED, FORMS OF QUESTIONS, ACTUAL QUESTIONS, COMMENTS, IMPLCATIONS FOR CURRICULUM TRANSACTION ETC By SHRUTI

BODH AGARWAL(Vice President, CTA)

ABSTRACT
y As per the latest curriculum and subsequent

notifications based on the feedback received CBSE has included DISSOLUTION OF PARTNERSHIP FIRM in the curriculum this time apart from the topics listed last year. Consequently there has been a change in the CBSE sample papers issued. Accordingly they are being analyzed from the point of view of students and teachers for better performance of the students.

INTRODUCTION
This analysis is according to the units in the curriculum. First the curriculum of that unit is specified, and then the marks allotted to the total unit are given, then the form of questions followed by actual questions. Comments on group of questions are given. Lastly overall comments for the subject are also given.

MAJOR CHANGES IN SYLLABUS

Vide circular no 25/2009 dated 14/7/2009 CBSE has clarified that the following portions have been deleted from the curriculum:1. Issue of debentures at a discount 2. Writing off discount on issue of debentures. 3. Sinking funds as one of the methods of Redemption of Debentures.

UNIT 1 NOT FOR PROFIT ORGANISATIONS(CURRICULUM)

1. Meaning and features of not for profit organizations. 2. Meaning and features of fund based accounting. 3. Receipts and payments Account 4. Preparation of Income and Expenditure Account and Balance Sheet from Receipt and Payment Account with additional information. Marks allotted= 10 Form of questions asked= 1+3+6

UNIT 1 (NPO)(1 MARK QS)

y 1 mark question is usually non numerical based on some fact like meaning/example of NPO, any item in Income & expenditure account & fund based accounting or any other theoretical question from this unit. It can be easily attempted by the student with full credit. The actual questions are:1. Not-for-profit organizations have some distinguishing features from that of profit organizations. State any one of them. (1)

2. Name the account which shows the classified summary of transactions of a Cash Book in a not-for-profit organization. (1)

UNIT-1 NPO(3 MARKS QS)

3 mark question is usually based on calculation of amount to be credited to Income & expenditure account or amount to appear in balance sheet in respect of funds etc. The students should be clear that in respect of Income & Expenditure account the amount that will pertain to current year will only appear. So the adjustments in respect of amounts prepaid, unpaid or received in advance or not received should be properly adjusted. In respect of questions pertaining to fund balances that would appear in balance sheet appropriate adjustments for opening and closing balances should be made. The actual questions are:-

NPO 3 MARKS QUESTION

I. Show the following information in the Balance Sheet of the Cosmos Club as on 31st March, 2007: 1. Tournament Fund Rs. 1,50,000(cr.) 2. Tournament Fund Investment Rs. 1,50,000 (Dr.) 3. Income from Tournament fund Investment Rs.18000 4. Tournament Expenses Rs. 12,000 Additional Information Interest accrued on tournament fund Investment= Rs.6,000 (3 marks)

NPO 3 MARKS QU NO 2
On the basis of following information, calculate the amount of stationery to be shown in Income and Expenditure Account for the year ended 31st March, 2007. (3) Stock of stationery on 1.4.2006 = Rs.50,000 Stock of stationery on 31.3.2007= Rs.40,000 Amount paid for stationery during the year= Rs. 2,00,000 Creditors for stationery on 1.4.2006= Rs. 20,000 Creditors for stationery on 31.3.2007= Rs. 10,000

NPO 6 MARKS QUESTIONS

6 marks question if a full fledged question based on preparation of income & expenditure account and balance sheet from the receipt and payment account and accompanying details. Usually an opening balance sheet is also to be prepared. Special practice should be given in calculating the amount of subscription, opening balances of assets, items requiring adjustments in respect of prepaid, unpaid, not received or received in advance amounts.

NPO 6 MARKS QUESTIONS

From the following Receipts and Payments Account of Sonic Club and from the given additional information; prepare Income and Expenditure Account for the year ending 31st December, 2006 and the Balance Sheet as on that date : Receipts= op. balance (Rs. 1,90,000)+ Subscriptions(Rs. 6,60,000)+ Interest on Investments@ 8% p.a. for full year (Rs.40,000)= Rs. 8,90,000. Payments= Salaries (Rs. 3,30,000)+ Sports Equipment(Rs. 4,00,000)+ Cl. Balance(Rs.1,60,000)= Rs. 8,90,000

Additional Information(6 marks question)

(a) The club had received Rs. 20,000 for subscription in 2005 for 2006. (b) Salaries had been paid only for 11 months (c) Stock of Sports Equipment on 31st December, 2005 was Rs. 3,00,000 and on 31st December, 2006 Rs. 6,50,000. (6)

NPO (6 MARKS QUESTION NO.2)

From the following extract of Receipts and Payments Account of Sonic club and the given additional information, show the Salaries items in the Income and Expenditure Account for the year ending 31st Dec. 2006 and the Balance Sheet as on 31st December, 2005 and 31st December, 2006. (6) An Extract of Receipts and Payments Account for the year ending 31st December, 2006 Payments for salaries= for 2005(Rs. 20,000)+for 2006(Rs. 2,80,000)+ for 2007(Rs. 18,000)

Additional information for prev. question

Rs. a) Salaries outstanding on 31.12.2005 25,000 b) Salaries outstanding on 31.12.2006 45,000 c) Salaries paid in advance on 31.12.2005 10,000

UNIT 2- ACCOUNTING FOR PARTNERSHIP FIRMS(CURR)

CURRICULUM 1. Nature of Partnership firm, Partnership Deedmeaning, importance. 2. Partners' Capital Accounts : Fixed vs. Fluctuating Capital, Division of Profit among partners. 3. Profit and Loss Appropriation Account including past adjustments Marks allotted= 5 Form of questions:- 1+4

UNIT 2- PARTNERSHIP ACCOUNTING (1 MARK QS)

1 mark question is usually based on five points in the Indian partnership act, 1932 regarding accounting provisions applicable in case of non existence of partnership deed. This is numerical but the concept is theoretical. Otherwise it can ask any other question based on the syllabus. Usually full credit can be scored.

UNIT 2(PARTNERSHIP ACC)(ACTUAL 1 MARK QS)

(a) Alka, Barkha and Charu are partners in a firm having no partnership agreement. Alka, Barkha and Charu contributed Rs. 2,00,000, Rs. 3,00,000 and Rs.1,00,000 respectively. Alka and Barkha desire that the profits should be divided in the ratio of capital contribution. Charu does not agree to this. Is Charu correct? Give reasoning. (1) (b) List two items that may appear on the Credit side of a partner s fixed capital account. (1)

UNIT 2 PARTNERSHIP ACCOUNTS(4 MARK QS)

4 mark question is usually based on division of profit among partners, profit and loss appropriation account including past adjustments. The level of this question is average. So adequate practice is to be given to students in these areas. Adjustments regarding interest on drawings, interest on capital, salary payable to partner &/or multiple profit sharing ratios should be included in this practice.

UNIT 2 PARTNERSHIP ACC(4 MARKS ACTUAL QS)(SP1)

A, B and C are partners in a firm. They have omitted interest on capital @ 10% p.a. for three years ended 31st March, 2007. Their fixed capitals on which interest was to be calculated throughout were: A Rs. 1,00,000; B Rs. 80,000; C Rs. 70,000 (4)
y Give the necessary adjusting journal entry with

working notes.

UNIT2 PARTNERSHIP ACC(4 MARK QUES)(SP 2)

X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After the final accounts have been prepared, it was discovered that interest on drawings @ 5% p.a. had not been taken into consideration. The drawings of the Partners were : X Rs. 15,000; Y Rs. 12,600; Z Rs. 12,000. Give the necessary adjusting journal entry. (4)

UNIT 3 RECONSTITUTION OF PARTNERSHIP FIRM( CURRICUL)

1. Changes in Profit Sharing Ratio among the existing partners-Sacrificing Ratio and Gaining Ratio. 2. Accounting for Revaluation of Assets and Liabilities and distribution of reserves (Accumulated Profits) 3. Goodwill: Nature, Factors affecting and methods of valuation: Average profit, Super profit and Capitalization methods.

UNIT 3 RECONSTITUTION OF PARTNERSHIP( CURR- CONT)

4.Admission of a Partner: Effect of Admission of Partner, Change in Profit Sharing Ratio, Accounting Treatment for Goodwill (as per AS 10), Revaluation of Assets and Liabilities, Adjustment of Capitals. 5. Retirement/Death of a Partner: Change in Profit Sharing ratio, accounting treatment of Goodwill, Revaluation of Assets and Liabilities, Adjustment of Capitals. 6. Dissolution of a partnership firm. Marks allotted= 20 Form of questions= 1+1+4+6+8

UNIT 3 RECONSTITUTION OF PARTNERSHIP(1 MARK QS)

One question of 1 mark requires a student to calculate new profit sharing ratio, gaining ratio or sacrificing ratio (any one of the three). If asked as a theory question it can ask application if any of the ratios mentioned above. The level of this question is easy. So full credit is expected from the child. The actual questions are:(a)Give the formula for calculating gaining share of a partner in a partnership firm. (1) (b) Give two circumstances in which sacrificing ratio may be applied. (1)

UNIT 3 RECONS. OF PART.(1MARK QS)(CONT)

One question of 1 mark can ask journal entry of goodwill on admission or retirement of a partner. It can also be a theoretical question based on goodwill or ratio calculation. The level is easy and full credit is expected of the student. The actual question is: 1. Pawan and Jayshree are partners. Bindu is admitted for 1/4th share. What is the ratio in which Pawan and Jayshree will sacrifice their share in favour of Bindu? (1) 2. Name any two factors affecting goodwill of a partnership firm. ( 1)

UNIT 3 RECONSTITUTION OF PARTNERSHIP(4 MARKS QS)

The 4 marks question can be based on adjustment of goodwill & other reserves as per accounting standard 10, calculation of goodwill with entry, theoretical question on goodwill and methods to calculate the same. The level can be difficult, average or easy based on overall blue print of the question paper. Therefore good will concept, methods of calculation, adjustment as per accounting standard 10 and journal entries should be given conceptual clarity and good practice.

UNIT 3 RECONSTITUTION OF PARTNERSHIP(4 MARKS QS)

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 1.4.2007. 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 y Pass the necessary adjusting entry. (4)

UNIT 3 RECONSTITUTITON OF PARTNESHIP(4 MARKS QS CON)

P, Q and R are partners sharing profits and losses in the ratio of 5:3:2. From 1st January, 2006, they decide to share profits and losses in equal proportion. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years purchase of the average of five years profits. The profits and losses of the preceding five years are: Profits : 2001 - Rs. 60,000 2002 Rs. 1,50,000 2003 - Rs. 1,70,000 2004 - Rs. 1,90,000. Loss : 2005 - Rs. 70,000. Give the necessary journal entry to record the above change. (4)

UNIT 3 RECONSTITUTION OF PARTNERSHIP( 6 MARKS QUES.)

The 6 marks question is usually from death of a partner or dissolution of the partnership firm. The question can involve calculation of amount payable to deceased partner s executor after computing amount payable in respect to share of profit, goodwill, interest on capital, interest on drawing, any part of accumulated profit/loss &/or profit or loss on revaluation etc. The students can be expected to prepare deceased partner s capital account and account to be rendered to the executor s. The level of the question is usually average.

UNIT 3 RECONSTITUTION OF P ARTNERSHIP( 6 M QUES. CONT)

Revaluation account can also be asked. Now dissolution of the firm can also be a 6 mark question. In the question on dissolution the memorandum balance sheet along with all the related accounts like Realization account, Capital Accounts of the Partners and Cash/Bank Account can also be asked. Journal entries can also be asked.

UNIT 3 RECONST. OF PART.(6 MARK ACTUAL QUES(SP 1))

Ram, Mohan and Sohan were partners sharing profits and losses in the ratio of 5:3:2. On 31st March, 2006 their Balance Sheet was as under :LIABILITIES Capitals(Rs.) Ram 1,50,000 Mohan 1,25,000 Sohan 75,000 W.Comp.Res. Creditors 3,50,000 30,000 1,55,000 5,35,000 5,35,000 AMT. (Rs.) ASSETS Leasehold Patents Machinery Stock Cash at Bank AMT.(Rs.) 1,25,000 30,000 1,50,000 1,90,000 40,000

UNIT 3 RECONST. OF PART.(6 MARK QUES(SP 1 CONT)

Sohan died on 1st August, 2006. It was agreed that : (i) Goodwill of the firm is to be valued at Rs. 1,75,000. (ii) Machinery be valued at Rs. 1,40,000; Patents at Rs. 40,000; Leasehold at Rs. 1,50,000 on this date. (iii) For the purpose of calculating Sohan s share in the profits of 2006-07, the profits should be taken to have accrued on the same scale as in 2005-06, which were Rs. 75,000. y Prepare Sohan s Capital Account and Revaluation Account. (6)

UNIT 3 RECONST. OF PART.(6 MARK. QUES(SP 2)

A and B Share profits and losses in the ratio of 3:2. They have decided to dissolve the firm. Assets and external liabilities have been transferred to Realization A/c. Pass the journal entries to effect the following : a)Bank Loan of Rs. 12,000 is paid off. b) A was to bear all expenses of realization for which he is given a commission of Rs. 400/- c) Deferred Advertisement Expenditure A/c appeared in the books at Rs. 28,000. d) Stock worth Rs. 1,600 was taken over by B at Rs. 1,200. e) An unrecorded computer realized Rs. 7000. f) There was an outstanding bill for repairs for Rs. 2000, which was paid off. (6)

UNIT 3 RECONSTITUTION OF PARTNERSHIP(8 MARKS QUES)

The 8 mark question is a choice between full fledged questions on admission or retirement of a partner or Dissolution of the Firm (ANY TWO AS PER THE BLUE PRINT OF THE PAPER). The question usually involves preparation of revaluation account, Realization account partners capital accounts, memorandum balance sheet and balance sheet/cash account(in case of dissolution). It can also ask the student to give journal entries. The level of the question is usually average. The child requires practice in all aspects of all these 3 chapters. Appropriate practice in capital adjustment should also be given.

UNIT 3 RECONSTITUTIONOF PART. (8 M QUES(SP 1 ))(OP 1)

L and M share profits of a business in the ratio of 5:3. They admit N into the firm for a fourth share in the profits to be contributed equally by L&M. On the date of admission, the Balance Sheet of L&M is as follows : Liabilities= L s Capital(Rs. 30,000)+ M s Capital(Rs. 20,000)+ Reserve Fund (Rs. 4,000)+ Bank Loan (Rs. 12,000) + Creditors (Rs. 2,000)= Rs. 68,000 Assets = Machinery (Rs. 26,000)+ Furniture (Rs. 18,000)+ Stock (Rs. 10,000)+ Debtors (Rs. 8,000)+Cash( Rs.6,000)= Rs 68,000

UNIT 3 RECONSTITUTIONOF PART. (8 M QUES(SP 1, OP 1, C)

Terms of N s admission were as follows : (i) N will bring Rs. 25,000 as his capital. (ii) Goodwill of the firm is to be valued at 4 years purchase of the average super profits of the last three years. Average profits of the last three years are Rs. 20,000; while the normal profits that can be earned on the capital employed are Rs. 12,000. (iii) Furniture is to be revalued at Rs. 24,000 and the value of stock to be reduced by 20%. Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the firm after admission of N. (8)

UNIT 3 RECONT. OF PART.(8 M QUES, SP1 OP 2)

Following is the Balance Sheet of X and Y, who share profits and losses in the ratio of 4:1, as at 31st March, 2009 : Liabilities= Sundry Creditors( Rs. 8,000)+ Bank Overdraft (Rs.6,000)+ X s Brother Loan(Rs. 8,000)+ Y s Loan(Rs. 3,000)+Investment F.F.(Rs. 5,000)+ Cap. X(Rs.50,000)+Cap. Y (Rs.40,000)= Rs. 1,20,000 Assets= Bank (Rs.20,000)+(Drs. 17,000Prov.2,000=15,000)+ Stock(Rs.15,000)+Investment(Rs.25,000)+Bldg.(Rs.25,0 00)+G/W(Rs.10,000)+P/L A/c(Rs.10,000)= Rs. 1,20,000

UNIT 3 RECONST. OF PART.(8 M QUES. SP 1 OP 2 CONT)

The firm was dissolved on the above date and the following arrangements were decided upon : (i) X agreed to pay off his brother s Loan(ii) Debtors of Rs. 5,000 proved bad(iii) Other assets realized Investments 20% less; and goodwill at 60% (iv) One of the creditors for Rs. 5,000 was paid only Rs. 3,000. (v) Buildings were auctioned for Rs. 30,000 and the auctioneer s commission amounted to Rs. 1,000. (vi) Y took over part of stock at Rs. 4,000 (being 20% less that the book value). Balance stock realized 50%. (vii) Realization expenses amounted to Rs. 2,000.Prepare Realization, Bank and Partners Capital A/c(8)

UNIT 3 RECONST. OF PART.(8 M QUES. SP 2 OP 1)

Rajat and Ravi are partners in a firm sharing profits and losses in the ratio of 7:3. Their Balance Sheet as at 31st March, 2007 is as follows: Liabilities= Creditors (Rs. 60,000)+ Reserve(Rs.10,000)+Cap. Rajat(Rs.1,00,000)+ Cap. Ravi.(Rs. 80,000)= Rs. 2,50,000 Assets= Cash in hand(Rs.36,000)+ Cash at Bank(Rs.90,000)+ Debtors (Rs. 44,000)+Stock (Rs. 50,000)+ Furniture(Rs. 30,000)= Rs. 2,50,000

UNIT 3 RECONT. OF PART.(8 M QUES. SP2 OP1 (CONT)

On 1st April, 2007, they admit Rohan on the following terms : (i) Goodwill is valued at Rs. 40,000 and Rohan is to bring in the necessary amount in cash as premium for goodwill and Rs. 60,000 as Capital for 1/4 share in profits. (ii) Stock is to be reduced by 40% and furniture is to be reduced to 40%.(iii) Capitals of the partners shall be proportionate to their Profit Sharing Ratio taking Rohan s Capital as base. Adjustments of Capitals to be made by cash. Prepare Revaluation Account, Partners Capital Accounts and Cash Account. (8)

UNIT 3 RECONST. OF PART.(8 M QUES. SP 2 OP 2)

The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2 as at March 31, 2007 : Liabilities= Creditors (Rs. 50,000)+ Emp. P.F.(Rs. 10,000)+ P/L A/c (Rs. 85,000)+X s Cap.(Rs.40,000)+Y s Cap.(Rs.62,000)+Z s Cap.(Rs.33,000)= Rs. 2,80,000 Assets= Cash at Bank(Rs.40,000)+ Sundry Drs.(Rs.1,00,000)+ Stock(Rs.80,000)+ Fixed Assets(Rs. 60,000)= Rs. 2,80,000 X retired on March 31, 2007 and Y and Z decided to share profits in future in the ratio of 2:3 respectively.

UNIT 3 RECONT. OF PART.(8 M QUES. OP 2 CONT.)

The other terms on retirement were as follows : (i )Goodwill of the firm is to be valued at Rs. 80,000.(ii) Fixed Assets are to be valued at Rs. 57,500(iii) Make a provision for doubtful debts at 5% on debtors(iv) A liability for claim, included in creditors for Rs. 10,000, is settled at Rs. 8000. The amount to be paid to X by Y and Z in such a way that their Capitals are proportionate to their profit sharing ratio and leave a balance of Rs. 15,000 in the Bank Account. Prepare Profit and Loss Adjustment Account and Partners Capital Accounts. (8)

UNIT 4- ACC. FOR SHARES AND DEBENTURES( CURRICULUM)

1. Share Capital: Meaning and Types. 2.Accounting for share capital: Issue and Allotment of Equity and Preference Shares; public subscription of shares : over subscription and under subscription; issue at par, premium and at discount; calls in advance, calls in arrears, issue of shares for consideration other than cash. Meaning of Private placement of shares and employee stock option plan. 3. Forfeiture of shares : accounting treatment, re-issue of forfeited shares. 4.Presentation of Share Capital in company s Balance Sheet.

UNIT 4 ACC FOR SHARES AND DEB.(CURR) (CONT)

5. Issue of debentures at par and at Premium ; Issue of debentures as collateral security; issue of debentures for Consideration other than cash. 6. Redemption of debentures; sources : out of profits debenture redemption reserve ; out of capital-methods : lump sum payment, draw by lots, purchase in the open market and conversion (excluding cum-interest and ex-interest). Marks allotted to unit 4= 25 Form of questions asked= 1+3+3+4+6+8

UNIT 4 ACC. FOR SHARES AND DEB. ( I MARK QS.)

1 mark question is usually theoretical asking for any concept like forfeiture of shares(sec78), issue of shares at a discount(sec. 79) or any other aspect of this unit can be asked. The student should be able to get full credit. The actual questions in the two sample papers are as under:(a) What is meant by Convertible debentures ? (1) (b) What is the nature of Interest on Debentures? (1)

UNIT 4 ACC. FOR SH. AND DEB.(3 MARKS QUES.)

One 3 mark question is from issue / redemption of debentures. Methods of redemption should be thoroughly practiced. The difficulty level is easy or average. The actual questions are:State the exceptions to the creation of Debenture Redemption Reserve as per SEBI Guidelines. (3)

UNIT 4 ACC. FOR SH. & DEB.(3 MARKS QUES. CONT)

Shubh Limited has the following balances appearing in its Balance Sheet : Rs. Securities Premium 22,00,000 9% Debentures 120,00,000 Underwriting Commission 10,00,000 The company decided to redeem its 9% Debentures at a premium of 10%. You are required to suggest the ways in which the company can utilize the securities premium amount. (3)

UNIT 4 ACC. FOR SH.& DEB.(4 MARKS QUES.)

One 4 marks question again involves forfeiture/reissue of shares or redemption of debentures. Usually students find problem in these areas. So good conceptual understanding and practice is required. The actual questions are as under:(a) Vinod Ltd. decided to redeem Rs. 50,000, 10% debentures. It purchased Rs. 40,000 debentures in the open market at Rs. 97.50 each. The expenses being Rs. 200 and redeemed the balance of Rs. 10,000 debentures by draw of lots. Journalize. (4)

UNIT 4 ACC. FOR SH. & DEB.(4 MARKS QUES. CONT.)

A company took a loan of Rs. 5,00,000 from State Bank of India and issued 10% debentures of Rs. 8,00,000 of Rs. 100 each as a collateral security. Explain how will you deal with issue of debentures in the books of company. (4)

UNIT 4 ACC. FOR SH. & DEB.(6 MARKS QUES.)

A 6 marks question from redemption of debentures consists of various methods usually redemption by conversion or purchase in the open market. Various cases in these methods should be practiced.

UNIT 4 ACC. FOR SH. & DEB.(6 MKS QUES(SP1 (3 MKS. PT1)
Raghav Limited purchased a running business from Krishna Traders 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 y Record necessary journal entries in the books of Raghav Limited.

UNIT 4 ACC. FOR SH.& DEB. (6 M QUES.SP1 3MKS.CONT)

On 1st January, 2004, Rhythm Limited issued 1,000 10% debentures of Rs. 500 each at par. Debentures are redeemable after 7 years. However, the company gave an option to deb. holders to get their debentures converted into eq. shares of Rs. 100 each at a premium of Rs. 25 per share anytime after the expiry of one year. Shivansh, holder of 200 deb., informed on Jan. 1, 2006 that he wanted to exercise the option of conv. of deb. into equity shares. The company accepted his request and converted deb. into equity shares. Pass necessary journal entries to record the issue of deb. on Jan. 1,2004 and conv. of deb. on Jan. 1, 2006.(3+3=6)

UNIT 4 ACC. FOR SH.& DEB.(6 M QUES. SP2)

a) Alpha Ltd. has 5,000 8% Debentures of Rs. 100 each due for redemption on March 31, 2007. Assume that Debenture Redemption Reserve has a balance of Rs. 1,90,000 on that date. Record the necessary entries at the time of redemption of debentures. (b) What journal entries should be made for the issue of debentures in the following cases: (i) X Limited issued 30,000 12% Debentures of Rs. 100 each at par, redeemable at a premium of 5%. (ii) Y Limited issued 50,000 12% Debentures of Rs 100 each at a premium of 5%, redeemable at par. (3+3=6)

UNIT 4 ACC.FOR SH.& DEB.(8 M QUES.)

The 8 marks question consists of full fledged question on issue, forfeiture and reissue of shares. This usually consists of oversubscription of shares and/or issue on premium. The student should be given good conceptual understanding of calculation of amount received on allotment, amount transferred from application to allotment, refund of application money for non allotment and amount transferred to capital reserve. It has a choice also.

UNIT 4 ACC. FOR SH. & DEB.(8 MKS. QUES.)(SP 1 OP 1)

Srijan Limited issued Rs. 10,00,000 new capital divided into Rs. 100 shares at a premium of Rs. 20 per share, payable as under : On Application Rs. 10 per share; On Allotment Rs. 40 per share (including premium of Rs. 10 per share); On First and Final Call Balance. Overpayments on application were to be applied towards sums due on allotment and first and final call. Where no allotment was made, money was to be refunded in full.

UNIT 4 ACC. FOR SH. & DEB.(8 MKS. QUES.)(SP 1 OP 1)(CONT)

The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 2,000 shares and applicants for 3,000 shares were sent letters of regret and application money was returned to them. All the money due was duly received. Give Journal Entries to record the above transactions (including cash transactions) in the books of the company. (8)

UNIT 4 ACC. FOR SH. & DEB.(8 MKS. QUES.)(SP 1 OP2)

Sangita Limited invited application for issuing 60,000 shares of Rs. 10 each at par. The amount was payable as follows : On Application Rs. 2 per share; On Allotment Rs. 3 per share; On First and Final Call Rs. 5 per share; Applications were received for 92,000 shares. Allotment was made on the following basis : (i) To applicants for 40,000 shares Full ;(ii) To applicants for 50,000 shares - 40%; (iii) To applicants for 2,000 Shares Nil

UNIT 4 ACC. FOR SH. & DEB.(8 MKS. QUES.)(SP 1 OP2)(CONT)

Rs. 1,08,000 was realized on account of allotment (excluding the amount carried from application money) and Rs. 2,50,000 on account of call. The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue. y Pass journal entries in the books of Sangita Limited to record the above transactions. (8)

UNIT 4 ACC. FOR SH.& DEB. (8 MKS QUES. SP 2 OP 1)

Metallic Ltd. invited applications for 40,000 equity shares of Rs. 50 each issued at a premium of Rs. 10 per share. The amount was payable as follows : On application and allotment Rs. 20 per share. Balance (including premium)- on first and final call. Applications for 70,000 shares were received Applications for 20,000 shares were rejected and prorata allotment was made to the remaining applicants. First and final call was made and duly received except on 400 shares allotted to Nitesh and his shares were forfeited. Journalise the above transactions. (8)

UNIT 4 ACC. FOR SH.& DEB.(8 MKS. QUES.SP 2 OP 2)

Arti Limited invited applications for issuing 80,000 shares of Rs. 10 each at a premium of Rs. 4 per share. The amount was payable as follows On Application - Rs. 5 per share On Allotment - Rs. 9 per share (Including Premium) Applications were received for 1,40,000 shares.

UNIT 4 ACC. FOR SH.& DEB.(8 MKS. QUES.SP 2 OP 2)(CONT)

Allotment was made on the following basis : (i) To applicants for 80,000 shares - 60,000 shares (ii) To applicants for 60,000 shares - 20,000 shares Money overpaid on applications was utilized towards sum due on allotment. Rajiv, belonging to category (i),/had applied for 1,200 Shares failed to pay his dues and his shares were forfeited. y Pass journal entries in the books of Arti Limited to record the above transactions. (8)

UNIT 5 ANALYSIS OF FINANCIAL STATEMENTS(CURR)

1. Financial Statements of a Company: preparation of simple balance sheet of a company inthe prescribed form with major headings only. 2. Financial Statement Analysis: meaning, significance, limitations, 3.Tools for Financial Statement Analysis: Comparative Statements, Common Size Statements, 4.Accounting Ratios: meaning and objectives, types of ratios:

UNIT 5 ANALYSIS OF FINANCIAL STATEMENTS(CURR CONT.)

Liquidity Ratios: Current Ratio, Liquid Ratio Solvency Ratios: Debt to Equity, Total Assets to Debt, Proprietary Ratio Activity Ratios: Inventory Turnover, Debtors Turnover, Payables Turnover, Working Capital Turnover, Fixed Assets Turnover Profitability Ratio: Gross Profit, Operating, Net Profit, Return on Investment, Earning Per Share, Dividend per Share, Price Earnings Ratio Marks allotted= 12 Form of questions= 1+3+4+4

UNIT 5 ANALYSIS OF FIN. STAT.(1 MARK QS)

The one mark question is usually a theoretical question asked on any aspect of meaning, advantages, limitations and stakeholder s interest in financial statements. It can be easily answered by the students with some working knowledge of the topic. Application of ratios analysis is also covered in this.

UNIT 5 ANALY. OF FIN. STAT.(1 MARK QS.CONT.)

(a) X Ltd. has a Debt Equity Ratio at 3 : 1. According to the management it should be maintained at 1:1. What are the two choices to do so? (1) (b) Assuming that the Debt - Equity Ratio is 1:2, state giving reason, whether the ratio will improve, decline or will have no change in case equity shares are issued for cash. (1)

UNIT 5 ANALY. OF FIN. STAT.(3 MARKS QS.)

y The 3 mark question usually consists of preparation of

common size statement or comparative income statement. It can also be a theoretical question on balance sheet of schedule VI. Appropriate practice can be given to students.

UNIT 5 ANALY. OF FIN.STAT.(3 MARK QS.)

(a) Show the major headings into which the liabilities side of a Company s Balance Sheet is organized and presented as per Schedule VI Part I of the Companies Act, 1956. (3) (b) Show the major headings into which the assets side of company s Balance Sheet is organized and presented as per Schedule VI Part I of the Companies Act, 1956. (3)

UNIT 5 ANAY. OF FIN. STAT.(4 MARKS QUES.)

One 4 marks question is for preparation of comparative income statement or common size statement . The children can score full marks if they know the format and simple calculation. Some difficult questions based on missing figures can also be asked. Appropriate practice is required.

UNIT 5 ANAY. OF FIN. STAT.(4 MARKS QUES.)(CONT)

Prepare a Comparative Income Statement with the help of the following information : (4) Particulars 2006 2007 Sales Rs. 20,00,000 Rs. 30,00,000 Gross Profit 40% 30% Indirect Expenses 50% of G.P. 40% of G.P. Income Tax 50% 50%

UNIT 5 ANAY. OF FIN. STAT.(4 MARKS QUES.)(CONT)(SP 2)

Prepare the Common Size Income Statement from the following information : (4) Particulars 31/3/2006 31/3/2007 Net Sales Rs. 1,00,000 Rs. 1,00,000 Cost of G.S. 70% of Sales 74.8% of Sales Operating Exp. Rs 8,000 Rs. 9,800 Income Tax rate 50% 50%

UNIT 5 ANAY. OF FIN. STAT.(4 MARKS QUES.)

One 4 marks question is from ratio- analysis. The children can score full marks if they know the formula etc. Some difficult questions based on missing figures can also be asked. Appropriate practice is required.

UNIT 5 ANAY. OF FIN. STAT.(4 MARKS QUES.)(ratio analy.)

Following is the Balance Sheet of X Ltd. as on 31st March, 2008 : Liabilities= B/P(Rs. 10,00,000)+ Creditors(Rs.15,00,000)+10%L.T.Loan(Rs.10,00,000)+P /L A/c (Rs.5,00,000)+ Res.(Rs. 5,00,000)+ Share Capital(Rs. 10,00,000)= Rs. 55,00,000. Assets=Cash(Rs.1,00,000)+B/R(Rs.4,00,000)+Drs.(Rs.20, 00,000)+Stock(Rs.9,00,000)+Invest.(Rs.1,00,000)+Fixe d Assets(net)(Rs.20,00,000)= Rs.55,00,000 The existing liquid ratio stands at 1:1. A liability of Rs. 4,00,000 under dispute has to be paid immediately as per High Court Order. Show the effect of this order on Liquid Ratio and Current Ratio as on 31st March 08.(4)

UNIT 5 ANAY. OF FIN. STAT.(4 MARKS QUES.)(ratio analy.)SP2

A company s Stock Turnover is 5 times. Stock at the end is Rs. 20,000 more than that at the beginning. Sales are Rs. 8,00,000. Rate of Gross Profit on cost 1/4; Current Liabilities Rs. 2,40,000. Acid Test Ratio 0.75. Calculate Current Ratio. (4)

UNIT 6 CASH FLOW STATEMENT(CURR)

Cash Flow Statement: Meaning and objectives, preparation, adjustments related to depreciation, dividend and tax, sale and purchase of non-current assets (as per revised standard issued by ICAI) Marks allotted= 8 Forms of questions asked= 1+1+6

UNIT 6 CASH FLOW STATEMENT(1 MARK QS)

The two one mark questions usually consist of asking some easy theoretical questions like definitions, meaning or examples. Applied aspects can also be covered. Sound theoretical and practical foundations will easily help the students to score marks in these 2 questions. Some types of questions that can be asked include identifying the three types of activities i.e. Operating, financing and investing activities. It can also cover short questions on calculation of source/application of cash.

UNIT 6 CASH FLOW STATEMENT(1 MARK QS)

a) State whether cash deposited in bank will result in inflow, outflow or no flow of cash. (1) (b) Interest received by a finance company is classified under which kind of activity while preparing a cash flow statement ? (1) (c ) Mention the net amount of Source or Use of cash when a fixed asset (having book value of Rs. 15,000) is sold at a loss of Rs. 5,000. (1) d) Dividend paid by a trading company is classified under which kind of activity while preparing cash flow statement. (1)

UNIT 6 CASH FLOW STATEMENT(6 MARK QS)

The 6 marks question can be a fully fledged question based on preparation of cash flow statement with adjustments regarding sale of asset, depreciation or taxation etc. It can also consist of calculating any one of the type of cash flow due to operating, investing or financing activities. The children can get good marks in this with adequate practice.

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OVERALL COMMENTS
The sample papers in accountancy 2009 has changed weight age to some topics due to introduction of new topic Dissolution of Partnership firm. Also the level of the questions has gone up slightly with application based questions being asked in more numbers and marks. So the teachers of accountancy have to work more hard to ensure good result. This can only happen if they can create a real interest in the children for the subject by using innovative methods and also keep themselves updated.