Accountancy Outside Delhi Set 3 2022-2023 Commerce (English Medium) Class 12 Question Paper Solution

Ram and Mohan were partners with fixed capitals of  ₹ 3,00,000 and ₹ 2,00,000 respectively. As per their partnership deed, interest on capital was allowed @ 10% p.a. Net profit for the year ended 31st March, 2022 was ₹ 30,000. The amount of interest on capital was credited to each partner's current account for the year ended 31st March, 2022 was:

Ram ₹ 30,000 and Mohan ₹ 20,000

Ram ₹ 20,000 and Mohan ₹ 10,000

Ram ₹ 18,000 and Mohan  ₹ 12,000

Ram ₹  30,000 and Mohan Nil

Anu, Bindu and Siya were partners in a firm sharing profits and losses in the ratio of 2:2:1. Siya was guaranteed that her share of profit will not be less than ₹ 50,000. Then firm's profit for the year ended 31^st March, 2022 was ₹ 2,00,000. The amount of deficiency to be borne by Anu was: 

₹ 10,000

₹ 2,500

₹ 75,000

₹ 5,000

Rohit and Mohit were partners sharing profits and losses in the ratio of 2:1. Their capital accounts as on 31.3.2021 had a credit balance of ₹ 1,09,000 and ₹ 66,000 respectively. They admitted Sahil as a new partner on 1^st April, 2021 for 1/5^th share in profits. Sahil brought ₹ 25,000 as his share of goodwill premium. He agreed to contribute capital in new profit-sharing ratio. The amount of capital brought by Sahil was:

₹ 40,000

₹ 32,000

₹ 12,50,000

₹ 50,000

Radhe Ltd. forfeited 500 shares of ₹ 10 each fully called up for non-payment of final call of ₹ 3 per share. 300 of these shares were reissued at ₹ 8 per share as fully paid-up. The amount credited to Capital Reserve Account was:

₹ 1,500

₹ 2,100

₹ 3,200

₹ 1,800

A Company forfeited 1,000 shares of ₹ 10 each, ₹ 7 called up for non-payment of first call of ₹ 2 per share. All these shares were reissued at ₹ 5 per share ₹ 7 paid-up. The amount transferred to Capital Reserve Account was:

₹ 2,000

₹ 3,000

₹ 4,000

₹ 5,000

Rita and Usha were partners in a firm sharing profits and losses in the ratio of 3:5, During the year Usha ‘withdrew ₹ 15,000 at the end of each month. Interest on drawings is to be charged @ 8% p.a. The average period for the calculation of interest on drawings will be ______.

4½ months

6 months

6½ months

5½ months

On the reconstitution of a firm, the value of the land was appreciated by ₹ 2,00,000 and plant and machinery reduced to ₹ 7,00,000 from ₹ 10,00,000. Gain or loss on revaluation will be ______.

Gain ₹ 1,00,000

Loss ₹ 1,00,000

Loss ₹ 5,00,000

Gain ₹ 5,00,000

Total assets of a partnership firm, which was dissolved were ₹ 30,00,000 and its total liabilities were ₹ 6,00,000. Assets were realised at 80% and liabilities were settled at 5% less. If dissolution expenses were ₹ 30,000 the profit or loss on dissolution was ______.

Profit ₹ 18,00,000

Loss ₹ 6,00,000

Profit ₹ 6,00,000

Loss ₹ 18,00,000

Offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) is known as ______.

Private placement of shares

Sweat equity

Incorporation cost

Employee stock option plan

A partnership firm has four partners. How many additional partners can be admitted into the business as per the provisions of the Companies Act, 2013?

50

46

100

96

Amit and Sumit were partners in a firm with fixed capitals of ₹ 6,00,000 and ₹ 4,00,000 respectively. Kavi was admitted as a new partner for 1/5^th share in the profit of the firm. Kavi brought ₹ 40,000 as his share of goodwill premium and ₹ 3,00,000 as his capital. The amount of Goodwill premium credited to Sumit will be ______.

₹ 20,000

₹ 24,000

₹ 16,000

₹ 40,000

Gopal, Krishna and Govind were partners sharing profits and losses in the ratio of 5:4:3. Krishna retired on 1^st  April 2022. Gopal and Govind purchased his share of profit by giving him ₹ 1,20,000. ₹ 80,000 was paid by Gopal and ₹ 40,000 by Govind. Gaining ratio is ______.

1 : 2

5 : 3

1 : 1

2 : 1

At the time of forfeiture, the share Capital Account is debited with ______

Market Value of Shares

Paid-up Value of Shares

Called-up Value of Shares

Nominal Value of Shares

Uncalled amount on shares

Unpaid amount on shares

Elite Ltd. issued 20,000, 9% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium. On issue of these debentures, 'Loss on Issue of debentures account' was debited with ₹ 4,00,000. The premium on redemption of debentures is ______.

₹ 4,00,000

₹ 2,00,000

₹ 6,00,000

₹ 10,00,000

Net Assets minus Capital Reserve is ______.

Purchase consideration

Goodwill

Total assets

Liquid assets

When a company issues shares at a premium, the company can collect securities premium along with the following :

Application money

Allotment money

Call money

Any of the above

On admission of a new partner, the old partners share the gain or loss on revaluation of assets and reassessment of liabilities in which of the following ratio :

Equally

In old profit sharing ratio

In new profit sharing ratio

In sacrificing ratio

Asha and Nisha were partners in a firm sharing profits and losses in the ratio 3:1. Charu was admitted as a new partner for 1/4^th share in the profits of the firm which she acquired equally from Asha and Nisha. The new profit sharing ratio of Asha, Nisha and Charu will be ______.

3 : 1 : 4

1 : 1 : 2

5 : 1 : 2

1 : 2 : 1

How much amount of net profit will be transferred to Profit and Loss Appropriation A/c?

₹ 7,06,750

₹ 7,02,250

₹ 7,00,000

₹ 7,13,000

What will the amount of interest on drawings of the partners?

Rudra ₹ 2,250; Dev ₹ 4,500 and Shiv ₹ 2,100

Rudra ₹ 9,000; Dev ₹ 9,000 and Shiv ₹ 4,200

Rudra ₹ 4,500; Dev ₹ 4,500 and Shiv ₹ 2,100

Rudra ₹ 24,000; Dev ₹ 12,000 and Shiv ₹ 16,800

Assertion (A): Under the fluctuating capital method, the balance in the capital account fluctuates from time to time.

Reason (R): Under the fluctuating capital method, all the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings etc, are recorded directly in the capital accounts of the partners.

(A) is correct but (R) is wrong

Both (A) and (R) are correct but (R) is not the correct explanation of (A).

Both (A) and (R) are incorrect.

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

Sinco Ltd. purchased assets of the book value of ₹ 1,98,000 from Dixon Ltd. It was agreed that the purchase consideration be paid by issuing 10% debentures of 100 each.

Record the necessary journal entries in the books of Sinco Ltd. assuming that the debentures have been issued:

1. At a discount of 10%.
2. At a premium of 10%.

On 1.4.2021 Y Ltd. invited applications for issuing 10,000, 9% debentures of ₹ 100 each at a discount of 6%. The entire amount was payable with application. Application for 12,000, 9% debentures were received. 9% debentures were allotted on pro-rata basis to all the applications. Excess money received with applications was refunded.
On 31.3.2022 the company decided to write off discount on issue of debentures according to the provisions of the Companies Act, 2013. On that date the company had ₹ 10,000 in its securities premium reserve account.

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

Mohan, Sohan and Suresh were partners in a firm sharing profits in the ratio of 2:2:1. Suresh was guaranteed a profit of ₹ 70,000. Any deficiency on account of guarantee to Suresh was to be borne by Mohan and Sohan in 3:2 ratio. The profit of the firm for the year ended 31.3.2022 amounted to ₹ 2,00,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ended 31.3.2022. 

A and B were partners in a firm sharing profits equally. Their capitals were : A ₹ 1,20,000 and B ₹ 80,000. The annual rate of interest is 20%. The profits of the firm for the last three years were ₹ 34,000; ₹ 38,000 and ₹ 30,000. They admitted C as a new partner. On C's admission the goodwill of the firm was valued at 2 years purchase of the super profits.

Calculate the value of goodwill of the firm on C's admission. 

Vibha, Sudha and Ashish were partners in a firm sharing profits in the ratio 2:3:1. Sudha retired and the balance in her capital account after making necessary adjustments on account of reserves, revaluation of assets and re-assessment of liabilities was ₹ 85,000. Vibha and Ashish agreed to pay Sudha ₹ 1,15,000 in full settlement of her claim. Record the necessary journal entry for goodwill on Sudha's retirement.

Mita, Geeta and Mohit were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1^st April 2022, they mutually agreed to share profits and losses in the ratio of 2:2:1. It was agreed that:

1. Goodwill of the firm was valued at ₹ 1,40,000.
2. Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 1,20,000.

Pass necessary journal entries for the above transactions in the books of the firm. Show your working notes clearly. 

Saraswati Ltd. has an authorised capital of ₹ 10,00,000 divided into equity shares of ₹ 10 each. Subscribed and fully paid-up share capital of the company was ₹ 4,00,000. To meet its new financial requirements, the company issued 20,000 equity shares of ₹ 10 each which were payable as follows : ₹ 3 on application; ₹ 3 on allotment, ₹ 2 on first call and ₹ 2 on second and final call. The issue was fully subscribed. The allotment money was payable on 1^st May 2021, first call money on 1^st August 2021 and final call on 1^st October 2021. X whom 1,000 shares were allotted, did not pay the allotment and call money; Y an allotee of 600 shares, did not pay the two calls; and Z whom 400 shares were allotted, did not pay the final call. Present the share capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare Notes to Accounts for the same.

P, Q and R were partners in a firm sharing profits and losses in the ratio of 2:1:2. Their balance sheet on 31^st March, 2022 was as follow:

On 30^th June, 2022, Q died. The partnership deed provided that on the death of a partner his executors will be entitled for the following:

1. Balance in his capital account.
2. Interest on capital @ 6% p.a.
3. His share in the profits of the firm till the date of his death calculated on the basis of last year's profit.
4. His share in the goodwill of the firm calculated on the basis of the three years purchase of the average profits of last four years.

Profits for 2018-19 were ₹ 3,00,000, for 2019-20 were ₹ 4,00,000 and for  2020-21 were ₹ 1,00,000.

On 1.6.2022 Q withdrew ₹ 50,000 for meeting his medical expenses.

Prepare Q's Capital account on his death to be presented to his executors. 

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tanay and Mehak after various assets (other than cash) and external liabilities have been transferred to Realisation Account:

1. Creditors of ₹ 60,000 accepted stock valued at ₹ 59,000 in full settlement of their claim.
2. Tanay agreed to pay off his wife's loan of ₹ 12,000.
3. The firm had a debit balance of ₹ 18,000 in the profit and loss account on the date of dissolution. 
4. An unrecorded liability of ₹ 20,000 was paid by partner, Mehak, at a discount of 10%.
5. Tanay's loan of ₹ 4,000 was paid through a cheque.
6. Expenses on dissolution amounted to ₹ 11,000 which were paid by Mehak. 

Pass necessary journal entries for the issue of debentures in the following cases:

1. Issued 5,000, 9% debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after 5 years.
2. Issued 30,000, 12% debentures of ₹ 100 each at a premium of 5% and redeemable at par after 5 years.
3. Issued 8,750, 12% debentures of ₹100 each at par, redeemable at par after 5 years.

Ganga Ltd. invited applications for issuing 10,000 equity shares of ₹ 10 each. The amount per share was payable as follows: ₹ 2 on application, ₹ 3 on allotment, ₹ 3 on first call and ₹ 2 on second and final call.

Applications were received for 15,000 shares. The applications for 3,000 shares were rejected and application money refunded. The shares were allotted on pro-rata basis to the applicants of 12,000 shares, Excess money received with applications was adjusted towards sums due on allotment. All shareholders paid the allotment money except one shareholder who was allotted 200 shares. These shares were forfeited. The first call was made thereafter and duly received. The second and final call was not yet made.

Pass Journal entries for the above transactions in the books of Ganga Ltd. Open Calls-in-Asrears Account wherever required.

Mukund Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each at 10% premium. The amount per share was payable as follows: ₹ 3 on application, ₹ 3 (including premium) on allotment and balance amount on first and final call. Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis to all the applicants. The excess money received on application was adjusted towards sums due on allotment only. Application money in excess to sums due on allotment was refunded. A shareholder who had applied for 6,000 shares, could not pay the call money and his shares were forfeited.

Pass necessary Journal entries for the above transactions in the books of Mukund Ltd.

Madhav and Girdhari were partners in a firm sharing profits and losses in the ratio of 3:1. Their balance sheet as at 31^st March; 2022 was as follows :

On 1^st April, 2022, they admitted Jyoti into partnership for 1/4^th share in the profits of the firm. Jyoti brought ₹ 1,86,000 as her capital and ₹ 40,000 as her of goodwill premium in cash. The following terms were agreed upon: 

1. Stock was found undervalued by ₹ 23,000.
2. 20% of the investments were taken over by Girdhari at book value.
3. Claim on account of workmen's compensation amounted to ₹ 70,000, which was to be paid later.
4. Creditor included a sum of ₹ 27,000 which was not likely to be claimed. 

Prepare Revaluation A/c and Partners' Capital Accounts on Jyoti's admission.

Radhika, Ridhima and Rupanshi were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31^st March, 2022, their balance sheet was as follows :

Ridhima retired on the above date and it was agreed that:

1. Goodwill of the firm be valued at ₹ 3,00,000.
2. Building was valued at ₹ 6,20,000.
3. 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 and Partners' Capital Accounts on Ridhima's retirement.

Which of the following is a tool of Analysis of Financial Statements?

Statement of Profit & Loss

Ratio Analysis

Balance Sheet

Notes to Accounts 

______ ratios are calculated to determine the ability of the business to service its debt in the long run.

Profitability

Solvency

Liquidity

Turnover

The 'Inventory Turnover Ratio' from the following information will be:

6 times

5 times

7.2 times

3 times

Interest of ₹3,000 received in cash on loans and advances will result in :

cash inflow from operating activities.

cash inflow from investing activities.

cash inflow from financing activities.

no change in cash or cash equivalents.

In case of a financial enterprise whose main business is lending and borrowing, ‘interest paid' and ‘interest received’ are classified as ______.

Operating activities

Investing activities

Financing activities

Cash equivalents

Which of the following transactions will not result in flow of cash:

Cash withdrawn from the bank ₹7,000

Issue of shares ₹20,00,000

Purchase of investments ₹60,000

Payment of wages ₹11,000

Under which major heads and sub-heads will the following items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?

1. Income received in advance
2. Computer Software
3. Balance of forfeited shares account

It is a technique which involves regrouping of data by application of arithmetical relationships. Identify the technique and state any two limitations of the technique identified.

Calculate Revenue from operations of BN Ltd. From the following information:

Goods were sold at a profit of 25% on cost.

The Operating ratio of a company is 60%. State whether 'Purchase of goods costing ₹ 20,000' will increase, decrease or not change the operating ratio.

The debt equity ratio of M Ltd. is 2:1. State with reasons whether the following transaction will increase, decrease or not change the debt equity ratio :

1. Obtained a loan from ICICI Bank ₹1,00,000 payable after 5 years.
2. Purchased machinery for cash ₹1,50,000.
3. Redeemed 9% debentures ₹1,00,000.
4. Issued equity shares for purchase of machinery of ₹5,00,000 to the vendors.

Read the following hypothetical text and answer the given question on the basis of the same.

Sujata started a small enterprise under the 'Skill India Scheme'. As the business grew, the revenue started increasing and she decided to form 'Sujata Ltd.' to achieve her objectives with 10 other like minded persons. The financial position of the company is given in its Balance Sheet as at 31.3.2022:

Additional Information:

Depreciation of ₹1,00,000 was charged on Tangible Assets during the year.

On the basis of the above information prepare the 'Cash Flow Statement' of Sujata Ltd.