Accountancy Delhi (set 3) 2019-2020 Commerce (English Medium) Class 12 Question Paper Solution

Fill in the blanks:
In case of retirement of a partner, profit or loss on revaluation of assets and re-assessment of liabilities is distributed among _________ partners in ___________ ratio.

Choose the appropriate alternative from the given options:

Vanya Ltd. forfeited 20,000 equity shares of ₹ 100 each for non-payment of first and final call of ₹ 40 per share. The maximum amount of discount at which these shares can be re-issued will be:

₹ 8,00,000

₹ 12,00,000

₹ 20,00,000

₹ 20,000

What is meant by 'Subscribed Capital'?

Choose the appropriate alternative from the given options:
Bishan and Sudha were partners in firm sharing profits and losses in the ratio of 5 : 3. Alena was admitted as a new partner. It was decided that the new profit sharing ratio of Bishan, Sudha, and Alena will be 10: 6: 5. The sacrificing ratio of Bishan and Sudha will be:

5 : 3

25: 78

6: 5

2: 1

Choose the appropriate alternative from the given options:
Which of the following is not a capital receipt?

Donations for tournament

Donations for building fund

Life membership fee 

Entrance fees

Choose the appropriate alternative from the given options:

Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. The firm earned a profit of ₹ 30,000 during the year. Mohit's share in the profit will be:

₹ 20,000

₹ 10,000

₹ 15,000

₹ 18,000 

Fill in the blank.
___________ means any offer of securities to a select group of persons by a company other than by way of the public offer.

Choose the appropriate alternative from the given options:
On the forfeiture of 100 shares of ₹ 50 each, ₹ 2,500 were credited to share forfeited account. These shares were re-issued at ₹ 25 per share fully paid up. The amount credited to 'Capital Reserve Account' will be:

₹ 2,500

₹ 5,000

No amount

₹ 3,000

Choose the appropriate alternative from the given options:
Disha and Abha were partners in a firm. Farad was admitted as a new partner for 1/5^th share in the profits of the firm. Farad brought proportionate capital. Capitals of Disha and Abha after all adjustments were ₹ 64,000 and ₹ 46,000 respectively. Capital brought by Farad was:

₹ 22,000

₹ 27,500

₹ 55,000

₹ 28,000

Answer the following question:
The business of a partnership firm may be carried on by all the partners or any one of them acting for all. One of the important implication of this statement is that every partner is entitled to participate in the conduct of the affairs of its business. State the second important implication of this statement.

Choose the appropriate alternative from the given options:

Jaipur Club has a prize fund of ₹ 6,00,000. It incurs expenses on prizes amounting to ₹ 5,20,000. The expenses should be

debited to income and expenditure account.

presented on the asset side of the balance sheet.

debited to income and expenditure account and presented on the asset side of the balance sheet.

deducted from the prize fund on the liability side of the balance sheet.

Choose the appropriate alternative from the given options:
No debenture redemption reserve is required for debentures issued by :

manufacturing companies

infrastructure companies

banking companies

trading companies

Fill in the blank.
For recording the issue of debentures as collateral security by a journal entry _______ account is debited.

Kabir and Farid are partners in firm sharing profits in the ratio of 3: 1 on 1-4-2019 they admitted Manik into partnership for 1/4^th share in the profits of the firm. Manik brought his share of goodwill premium in cash. Goodwill of the firm was valued on the basis of 2 years purchase of the last three years' average profits. The profits of last three years were:

During the year 2018-19, there was a loss of ₹ 20,000 due to fire which was not accounted for while calculating the profit. Calculate the value of goodwill and pass the necessary journal entries to the treatment of goodwill.

Raka, Seema, and Mahesh were partners sharing profits and losses in the ratio of 5: 3: 2. With effect from 1^st April, 2019, they mutually agreed to share profits and losses in the ratio of 2: 2: 1.
On that date, there was a workmen's compensation fund of ₹ 90,000 in the books of the firm. It was agreed that:
(i) Goodwill of the firm be valued at ₹ 70,000.
(ii) Claim for workmen's compensation amounted to ₹ 40,000.
(iii) Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 40,000.
Pass necessary journal entries for the above transactions in the books of the firm.

How will the following items be treated while preparing the financial statements of a not-for-profit-organization for the year ended 31^st March, 2019.

During 2018-19, payment made to creditors was ₹ 1,80,000.

From the given Receipts and Payments Account and additional information of Shine Club for the year ended 31^st March 2019, prepare Income and Expenditure Account for the year ended 31^st March 2019.

Receipts and Payments Account of Shine Club for the year ended 31^st March, 2019

Additional Information :
(i) Furniture and equipments were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on furniture and equipments.
(ii) Subscriptions in arrears for the year 2018-19 were ₹ 2,000
(iii) Outstanding salary ₹ 6,000.

Nikita, Mankrit, and Pulkit were partners in firm sharing profits and losses in the ratio 4 : 3: 2. Their balance sheet as on 31st March 2019 was as follows:

Balance Sheet of Nikita, Mankrit, and Pulkit as on 31^st March 2019 

Mankrit died on 31^st July 2019. According to the partnership deed, the executors of the deceased partner are entitled to:
(a) Balance of partner's capital account
(b) Salary @ ₹ 6,000 per quarter.
(c) Share of goodwill calculated on the basis of twice the average of past three years' profits and share of profits from the closure of the last accounting year till the date of death calculated on the basis of the average of three completed years' profits before death.
Profits for 2016-17, 2017-18 and 2018-19 were ₹ 80,000, ₹ 90,000 and ₹ 1,00,000 respectively.
(d) Mankrit withdrew ₹ 6,000 on 15^th May, 2019.

Prepare Mankrit's capital account to be rendered to her executors.

Puneet and Akshara were partners in a firm sharing profits and losses in the ratio of 2: 3. The following was the balance sheet of the firm as on 31st March 2019.

Balance sheet of Puneet and Akshara as on 31^st March 2019

The profits 40,000 for the year ended 31^st March 2019 were divided between the partners without allowing interest on capital @ 5% p.a. and commission to Akshara @ ₹ 1,000 per quarter.
The drawings of the partners during the year were :
Puneet ₹ 2,500 per month.
Akshara ₹ 10,000 per quarter.
Showing your workings clearly, pass necessary adjustment entry in the books of the firm.

Muskaan, Priya and Rohan were partners in a firm sharing profits and losses in the ratio of 2 : 3: 1. The firm was dissolved on 31-3-2019. After transfer of assets (other than cash) and external liabilities to realisation account, the following transactions took place:
(a) Furniture of  ₹ 70,000 was sold for ₹ 74,000 by auction and  auctioneer's commission amounted to ₹ 3,000.
(b) There was an unrecorded computer which was taken over by Priya for ₹ 7,000.
(c) Creditors were paid ₹ 44,000 in full settlement of their account of ₹ 49,000.
(d)  Rohan's sister's loan ₹ 20,000 was paid off by Muskaan.
(e) Expenses on dissolution were ₹ 15,000 and paid by Rohan.
(f) Loss on dissolution amounted to ₹ 24,000.

Pass necessary journal entries for the above transactions in the books of the firm.

On 1^st April 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31^st March 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
Pass the necessary journal entries for the redemption of debentures.

Hero Ltd. purchased plant and machinery for ₹ 18,00,000 from Pearl Machines Ltd. payable ₹ 3,00,000 by drawing a promissory note and the balance by the issue of 9% debentures of ₹ 100 each at a premium of 20%.
Pass the necessary journal entries in the books of Hero Ltd. for the above transactions.

BGP Ltd. invited applications for issuing 15,000, 11% debentures of ₹ 100 each at a premium of ₹ 50 per debenture. The full amount was payable on application. Applications were received for 25,000 debentures. Applications for 5,000 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on a pro-rata basis.
Pass the necessary journal entries for the above transactions in the books of BGP Ltd.

Agam Ltd. issued 40,000 9% debentures of ₹ 100 each on April 1, 2018, at a discount of 10%, redeemable at a premium of 10%. Assuming that the interest was paid half-yearly on September 30 and March 31 and the tax deducted at source was 10%, give journal entries relating to debenture interest for the half-year ended March 31, 2019.

Premier Tools Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
On application - ₹ 5 per share (including premium)
On allotment - ₹ 3 per share
On first & final call – Balance

Applications were received for 2,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application were adjusted towards sums due on allotment.

All calls were made and duly received except allotment and first and final call from Naveen who applied for 7,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for ₹ 48,000 as fully paid.

Pass the necessary journal entries for the above transactions in the books of Premier Tools Ltd. Open calls-in-arrears account wherever required.

Concept Stationary Ltd. invited applications for issuing 3,00,000 shares of ₹ 10 each at a premium of ₹ 3 per share. The amounts were payable as follows:
On application and allotment – ₹ 7 per share.
On first & final call – balance (including a premium of ₹ 3)
Applications were received for 4,00,000 shares & allotment was made as follows:
(i) To applicants for 80,000 shares – 80,000 shares.
(ii) To applicants for 40,000 shares – nil
(iii) The balance of the applicants were allotted shares on a pro-rata basis.

Excess money received with applications was adjusted towards sums due on the first and final call.
Amit, who belonged to category (i) and was allotted 4,000 shares and Veni, who belonged to category (iii) and was allotted 4,400 shares failed to pay the first and final call money. Their shares were forfeited. The forfeited shares were re-issued at ₹ 7 per share fully paid-up.

Pass necessary journal entries for the above transactions in the books of the company.

Achla and Bobby were partners in a firm sharing profits and losses in the ratio of 3: 1. On 31^st March 2019, their balance sheet was as follows:

Balance Sheet of Achla and Bobby as on 31^st March 2019

On 1^st April 2019, they admitted Vihaan as a new partner for 1/5^th share in the profits of the firm on the following terms:
(a) Vihaan brought ₹ 1,00,000 as his capital and the capitals of Achla and Bobby were to be adjusted on the basis of Vihaan's capital; any surplus or deficiency was to be adjusted by opening current accounts.
(b) Goodwill of the firm was valued at ₹ 4,00,000. Vihaan brought the necessary amount in cash for his share of goodwill premium, half of which was withdrawn by the old partners.
(c) Liability on account of workmen's compensation amounted to ₹ 80,000.
(d) Achla took overstock at ₹ 35,000.
(e) Land and building was to be appreciated by 20%.

Prepare Revaluation Account, Partner's Capital Accounts, and the Balance Sheet of the reconstituted firm on Vihaan's admission.

Gita, Radha, and Garv were partners in firm sharing profits and losses in the ratio of 3: 5: 2. On 31^st March 2019, their balance sheet was as follows: ​

Balance Sheet of Gita, Radha & Garv as on 31^st March 2019 

Radha retired on the above date and it was agreed that:
(a) Goodwill of the firm be valued at ₹ 3,00,000 and Radha's share be adjusted through the capital accounts of Gita and Gary.
(b) Stock was to be appreciated by 20%.
(c) Buildings were found undervalued by ₹ 1,00,000.
(d) Investments were sold for ₹ 34,000.
(e) Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.

Prepare Revaluation Account, Partner's Capital Accounts, and the Balance Sheet of the reconstituted firm on Radha's retirement.

Fill in the blank.
Short term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value are called __________.

What is meant by 'Cash Flows' ?

Choose the appropriate alternative from the given options:
Which of the following is a limitation of financial analysis?

It is just a study of reports of the company.

It judges the ability of the firm to repay its debts.

It identifies the reasons for change in financial position.

It ascertains the relative importance of different components of the financial position of the firm.

Answer the following question:
State giving reason, whether the issue of shares for consideration other than cash will result into inflow, outflow or no flow of cash.

Which of the following is not a tool of financial analysis?

Comparative income statement

Comparative position statement

Statement of profit and loss

Cash flow statement

Ratio Analysis

Comparative Statement

Choose the appropriate alternative from the given options:
As per Schedule III, Part I of the Companies Act, 2013 'calls-in-arrears' will be presented under which of the following head/sub-head, in the Balance Sheet of a company?

Reserves and Surplus

Current Liabilities

Contingent Liabilities

Shareholders Funds

Fill in the blank.
'Interest accrued on investments' will be presented in the Balance Sheet of a company under the sub-head ________.

The fixed assets of a company were ₹ 35,00,000. Its current assets were ₹ 4,30,000 and current liabilities were ₹ 3,30,000. During the year ended 31-03-2019, the company earned net profit before tax ₹ 18,00,000. The tax rate was 30%. Calculate return on investment.

Calculate Inventory Turnover Ratio

Prepare common size statement of profit and loss from the following information:

From the following Balance Sheets of Vinayak Ltd. as at 31^st March, 2019, prepare a comparative Balance Sheet.

Vinayak Ltd. 
Balance Sheet as at 31^st March, 2019  

Cash flow from operating activities of Starline Ltd. for the year ended 31.03.2019 was ₹ 18,000. The Balance Sheet along with notes to accounts of Starline Ltd. as at 31-03-19 is given below :

Starline limited​ 
Balance Sheet as at 31st March, 2019 

Notes to Accounts 

You are given the following additional information :

(a) A machinery of the book value of ₹ 40,000 (depreciation provided thereon ₹ 12,000) was sold at a loss of ₹ 6,000.

(b) 8% debentures were redeemed on 1^st July 2018.

Prepare Cash Flow Statement.