Accountancy Delhi Set - 2 2023-2024 Commerce (English Medium) Class 12 Question Paper Solution

Assertion (A): In partnership firm, the private assets of the partners can also be used to pay off the firm's debts.

Reason (R): The liability of the partners for acts of the firm is limited.

Choose the correct option from the following:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is false, but Reason (R) is true.

Assertion (A) is true, but Reason (R) is false.

Kewal Ltd. purchased sundry assets from Ganpati Ltd. for ₹ 28,60,000. The amount was paid by issuing fully paid shares of ₹ 100 each issued at a premium of 10%. The number of shares issued to Ganpati Ltd. were ______.

₹ 28,000

₹ 31,778

₹ 28,600

₹ 26,000

Aditi, Sukriti and Niti were partners sharing profits in the ratio of 2 : 2 : 1. Sukriti died on 30^th June 2023. Net profit for the year ended 31^st March, 2023 was ₹ 4,50,000. If the deceased partner's share of profit is to be calculated on the basis of the previous year's profit, the amount of profit credited to Sukriti's Capital Account will be ______.

₹ 90,000

₹ 45,000

₹ 1,80,000

₹ 1,12,500

Pawan, a partner, was appointed to look after the process of dissolution of firm for which he was allowed a remuneration of ₹ 75,000. Pawan agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 60,000 were paid by Pawan. Pawan's Capital Account will be credited by:

₹ 75,000

₹ 60,000

₹ 15,000

₹ 10,000

Sarita Ltd. forfeited 100 shares of ₹ 10 each, ₹ 8 called up issued at a premium of ₹ 2 per share to Ramesh for nonpayment of allotment money of ₹ 5 per share (including premium). The first and final call of ₹ 2 per share was not made. Out of these 70 shares were reissued to Ashok as ₹ 8 called up for ₹ 10 per share. The gain on reissue will be ______.

₹ 500

₹ 400

₹ 350

₹ 300

Ridhima and Kavita were partners, sharing profits and losses in the ratio of 3 : 2. Their fixed capitals were ₹ 1,50,000 and ₹ 2,00,000, respectively. The partnership deed provides for interest on capital @ 8% p.a. The net profit of the firm for the year ended 31^st March, 2023, amounted to ₹ 21,000. The amount of interest on capital credited to the capital accounts of Ridhima and Kavita will be ______.

₹ 12,000 and ₹ 16,000 respectively.

₹ 10,500 and ₹ 10,500 respectively.

₹ 9,000 and ₹ 12,000 respectively.

₹ 16,000 and ₹ 5,000 respectively.

Ruchika and Harshita were partners in a firm. Ruchika had withdrawn ₹ 9,000 at the end of each quarter throughout the year. The interest to be charged on Ruchika's drawings at 6% p.a. will be ______.

₹ 540

₹ 2,160

₹ 1,080

₹ 810

On dissolution of a partnership firm, if realisation expenses are paid by the firm on behalf of a partner, then such expenses are debited to which of the following account:

Realisation Account

Partner's Capital Account

Partner's Loan Account

Bank Account

Isha and Manish were partners in a firm sharing profits and losses in the ratio of 3 : 2. With effect from 1^st April, 2023, they agreed to share profits equally. On this date the goodwill of the firm was valued at ₹ 3,00,000. The necessary journal entry for the treatment of goodwill without opening Goodwill Account will be:

Aarav Ltd. issued 10,000, 9% debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%. Loss on issue of debentures account will be debited by ______.

₹ 10,00,000

₹ 1,00,000

₹ 1,50,000

₹ 1,05,000

Dove Ltd. issued 8,000 11% debentures of 100 each at a premium of 5%. The total amount of interest on Debentures for one year will be ______.

₹ 80,000

₹ 92,400

₹ 88,000

₹ 880

Kriti, Hina and Nidhi were partners, sharing profits in the ratio of 3 : 2 : 1. Nidhi retired. On the date of her retirement, Workmen Compensation Fund stood in the Balance Sheet at ₹ 1,50,000. Workmen Compensation Claim was ₹ 1,20,000. How much amount of Workmen Compensation Fund will be credited to Nidhi's Capital Account?

₹ 30,000

₹ 10,000

₹ 5,000

₹ 15,000

Rohit, Udit and Mohit were partners in a firm, sharing profits in the ratio of 3 : 2 : 1. Mohit retired. The balance in his capital account after making the necessary adjustments on account of reserves and revaluation of assets and liabilities was ₹ 1,80,000. Rohit and Udit agreed to pay him ₹ 2,00,000 in full settlement of his claim. Mohit's share of goodwill in the firm was ______.

₹ 1,80,000

₹ 2,00,000

₹ 40,000

₹ 20,000

Assertion (A): Securities Premium cannot be utilized for writing off loss on sale of a fixed asset.

Reason (R): Securities Premium can be applied only for the purposes mentioned in the Companies Act, 2013.

Choose the correct option from the following:

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct reason of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct reason of Assertion (A).

Both Assertion (A) and Reason (R) are false.

Assertion (A) is false, but Reason (R) is true.

Mahi, Ruhi and Ginni are partners in a firm, sharing profits and losses in the ratio of 6 : 4 : 1. Mahi guaranteed a profit of ₹ 50,000 to Ginni. Net profit for the year ending 31^st March, 2023 was ₹ 1,10,000. Mahi's share in the profit of the firm after giving a guaranteed amount to Ginni will be ______.

₹ 20,000

₹ 60,000

₹ 40,000

₹ 10,000

Read the following hypothetical situation and answer the question:

Opening capital of Keshav was ______.

₹ 35,000

₹ 39,000

₹ 43,000

₹ 52,000

Read the following hypothetical situation and answer the question:

Amount of interest to be charged on Hitesh's drawings will be ______.

₹ 225

₹ 4,500

₹ 300

₹ 7,200

A partnership firm has 45 partners. It wants to admit 7 more partners into partnership. Only ______ more partners can be admitted in the partnership firm according to the Companies Act, 2013.

1

6

5

3

A, B and C were partners in a firm sharing profits and losses in the ratio of `1/2:1/3:1/4`. D was admitted in the firm for `1/6"th"` share. C would retain his original share. The new profit sharing ratio will be ______.

12 : 8 : 5 : 5

21 : 14 : 18 : 12

21 : 14 : 15 : 10

2 : 2 : 1 : 1

If all the forfeited shares are reissued, the balance, if any, left in the Forfeited Shares Account is transferred to ______.

General Reserve Account

Securities Premium Account

Capital Reserve Account

Statement of Profit and Loss

Raghav Ltd. forfeited 100 shares of ₹ 10 each issued at a premium of 20% for non-payment of first call of ₹ 3 per share and final call of ₹ 1 per share. The minimum price per share at which these shares can be reissued will be ______.

₹ 4

₹ 6

₹ 8

₹ 10

Asha, Nisha and Hiten were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their fixed capitals were ₹ 2,00,000, ₹ 1,50,000 and ₹ 1,00,000 respectively. The partnership deed provided for interest on capital @ 10% p.a. For the year ended 31^st March, 2023, profits of the firm were distributed without providing interest on capital. Pass the necessary adjusting Journal entry to rectify the error. 

Chavi Ltd. purchased machinery from Neo Ltd. It was agreed that the purchase consideration will be paid by issuing 10,000 equity shares of ₹ 10 each at a premium of 10% and a bank draft of ₹ 50,000.

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

On 1^st October, 2022, Ninza Ltd. issued 4,000, 8% Debentures of ₹ 100 each at a discount of 10%. The company had a balance of ₹ 50,000 in the Securities Premium Account on the same date.

Pass necessary journal entries for issue of debentures and to write off a discount on issue of debentures.

Mahesh, Ramesh and Naresh were partners in a firm sharing profits in the ratio of 5 : 3 : 2. From 1^st April 2023, they decided to share profits equally. On that date, there was a balance of ₹ 3,60,000 in General Reserve and a debit balance of ₹ 1,80,000 in the Profit and Loss Account. Pass single adjustment Journal entry for the above on account of change in the profit sharing ratio.

Ravi, Guru, Mani and Sonu were partners in a firm sharing profits in the ratio of 2 : 2 : 2 : 1. On 31^st January, 2023, Sonu retired. On Sonu's retirement, the Goodwill of the firm was valued at ₹ 1,40,000. The new profit sharing ratio among Ravi, Guru and Mani was agreed as 5 : 1 : 1. Showing your workings clearly, pass necessary Journal entry for the treatment of Goodwill in the books of the firm on Sonu's retirement without opening goodwill account.

A business earned an average profit of ₹ 4,00,000 during the last few years. The normal rate of profit in the similar type of business is 10%. The value of assets and liabilities of the business were ₹ 20,00,000 and ₹ 5,00,000 respectively. Calculate the value of goodwill of the firm by Super Profits Method if it is valued at 2 years purchase of super profit. 

Madhav, Raghav and Purav were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31^st March, 2023 was as follows:

Purav died on 30^th September, 2023. According to Partnership deed, his legal representatives are entitled to the following:

1. Balance in his Capital Account.
2. Share of profit upto the date of death to be calculated on the basis of last year's profit.
3. Share of goodwill calculated on the basis of three years' purchase of average profits of the last four years.
4. Interest on capital @ 12% p.a.

Purav's share of profit was ₹ 3,000 and the average profit of last four years were ₹ 50,000. Purav's drawings upto the date of death were ₹ 10,000.

Prepare Purav's Capital Account to be rendered to his legal representatives.

On 1^st April 2023, Khyati Ltd. was formed with an authorised capital of ₹ 20,00,000 divided into 2,00,000 equity shares of ₹ 10 each. The company invited applications for issuing 1,80,000 equity shares. The company received applications for 1,70,000 equity shares. During the first year, ₹ 8 per share were called and a final call of ₹ 2 per share has not been made yet. Siya holding 2,000 shares and Piya holding 4,000 shares did not pay the first call of ₹ 2 per share. All the shares of Siya and Piya were forfeited after the first call.

Present the share capital in the Balance Sheet of Khyati Ltd. as per Schedule III, Part I of Companies Act, 2013 and also prepare 'Notes to Accounts' for the same.

Murari Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount per share was payable as follows: ₹ 5 on application and ₹ 9 (including premium) on allotment.

Applications were received for 1,40,000 shares and allotment was made on a pro-rata basis to all the applicants. Money overpaid on application was utilised towards sums due on allotment.

The allotment money was duly received except from Sameer, who had applied for 1,400 shares. His shares were forfeited.

Pass the necessary journal entries in the books of Murari Ltd. to record the above transactions. Open calls-in-arrears account wherever required.

Kavya Ltd. invited applications for issuing 30,000 shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:

On application and allotment ₹ 7 per share

On first and final call, ₹ 5 per share (including ₹ 2 premium)

Applications were received for 33,000 shares. Applications for 3,000 shares were rejected and money returned to the applicants. Applications for 30,000 shares were accepted in full.

The application and allotment money was duly received. The first and final call was made and money received except from a shareholder holding 500 shares. His shares were forfeited. All these shares were re-issued to Kartik as fully paid for ₹ 8 per share.

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

Arnav, Bhavi and Chavi were in partnership, sharing profits and losses in the ratio of 3 : 2 : 1. On 31st March, 2023, their Balance Sheet was as follows:

Chavi retired on the above date. It was agreed that:

1. Plant and Machinery be valued at ₹ 4,30,000.
2. The existing Provision for Bad Debts was to be increased by 50%.
3. Chavi's share of Goodwill was valued at ₹ 80,000 and the same was to be treated without opening a Goodwill account.
4. The total amount to be paid to Chavi was brought in by Arnav and Bhavi in such a way as to make their capitals in proportion to their new profit-sharing ratio.

Prepare Revaluation Account and Partners' Capital Accounts.

Divya and Ekta were partners in a firm sharing profits in the ratio of 3 : 1. On 31^st March, 2023 they admitted Sona as a new partner for 1/4^th share in the profits of the firm. Their Balance Sheet on that date was as follows: 

Sona will bring ₹ 4,00,000 as her capital and her share of goodwill in cash. It was agreed that:

1. Goodwill of the firm was valued at ₹ 2,40,000.
2. Land & Building were valued at ₹ 7,12,000.
3. Provision for doubtful debts was found to be in excess by ₹ 8,000.
4. A liability for ₹ 20,000 included in creditors was not likely to arise.
5. The capitals of Divya and Ekta will be adjusted on the basis of Sona's capital by opening current accounts.

Prepare Revaluation Account and Partners' Capital Accounts.

Pass the necessary journal entries for the following transactions on the dissolution of the firm of Abhay and Mansi after various assets (other than cash) and third party liabilities have been transferred to Realisation Account:

1. Abhay took over stock worth ₹ 67,000 at ₹ 56,000.
2. There was an old computer which had been written off completely from the books. It was estimated to realise ₹ 4,000. It was taken away by Mansi at the estimated price less 10%.
3. Unrecorded liabilities of ₹ 7,500 were settled at ₹ 5,000.
4. Realisation expenses amounting to ₹ 8,000 were paid by Abhay.
5. Investment, whose face value was ₹ 15,000, was realized at 40%.
6. Profit on realisation ₹ 24,000 was to be distributed between Abhay and Mansi in their profit sharing ratio which was 2 : 1.

Pass journal entries relating to issue of debentures in the books of Star Ltd. in each of the following cases:

1. Issued 50,000, 9% Debentures of ₹ 100 each at a discount of 10%, redeemable at par.
2. Issued 6,000, 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%.
3. Issued 4,000, 10% Debentures of ₹ 100 each at par, redeemable at a premium of 5%.

Which of the following transactions will result in the flow of cash?

Cash was withdrawn from bank Rs 71,000.

An issue of 9% debentures of  Rs 1,00,000 to the vendors of machinery.

Received from debtors Rs 74,000.

Redeemed 10% debentures by converting the same into equity shares.

Shyam Sunder Ltd. is a financing company. Under which of the following activity will the amount of 'Interest paid on loan' be shown:

Investing activity

Financing activity

Both Financing and Operating Activity

Operating activity

Tax paid during the year ended 31^st March, 2023 was ₹ 15,000. While calculating Net Profit before Tax and Extra ordinary items, the amount of provision for tax to be added is ______.

₹ 30,000

₹ 25,000

₹ 10,000

₹ 15,000

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

Total Assets − ₹ 3,00,000

Non-current Assets − ₹ 2,60,000

Non-current Liabilities − ₹ 80,000

Shareholders Funds − ₹ 2,00,000

Current ratio calculated on the basis of the above information will be:

0.5 : 1

2 : 1

1.5 : 1

1 : 1

When Current Ratio is 4 : 1, Current Assets are ₹ 60,000 and Quick Ratio is 2.5 : 1, the amount of 'Inventory' will be ______.

₹ 22,500

₹ 37,500

₹ 15,000

₹ 25,000

Under which major heads and sub-heads will the following items be placed in the balance sheet of the company as per Schedule III, Part I of the Companies Act, 2013: 

1. Computer Software
2. Unclaimed dividend
3. Loose tools

Calculate current ratio from the following information:

From the following Statement of Profit and Loss of Shikha Ltd., prepare Comparative Statement of Profit and Loss for the year ended 31^st March, 2023.

Rate of Tax is 50%.

From the following information, prepare a Common Size Statement of Profit and Loss of A Ltd. and B Ltd. for the year ended 31^st March, 2023:

From the following Balance Sheet of Yogita Ltd., calculate 'Cash flows from Investing Activities' and 'Cash flows from Financing Activities'. Show your working properly.

Notes to Accounts:

Additional Information:

1. ₹ 50,000 was charged as depreciation on Plant and Machinery. A machinery costing ₹ 60,000 (Book value ₹ 45,000) was sold for ₹ 42,000.
2. Bank loan was repaid on 1^st April, 2022.