Accountancy 2009-2010 Commerce (English Medium) Class 12 Question Paper Solution

Name any two financial statements prepared by a not-for-profit organisation. 

What is meant by Partnership deed?

Why are ‘Reserve and Surplus’ distributed at the time of reconstitution of the firm?

How does the factor ‘Efficiency of Management’ affect the goodwill of a firm? 

What is meant by ‘Capital Reserve’?

From the following information calculate the amount of subscription outstanding for the year 2008-09.

A Club has 200 members each paying an annual subscription of Rs 1,000. The Receipts and Payments account for the year showed a sum of Rs 2,05,000 received as subscription.

The following additional information is provided: 

X Ltd. obtained a loan of Rs. 4,00,000 from IDBI Bank. The company issued 5,000, 9% Debentures of Rs. 100 each as collateral security for the same. Show how these items will be presented in the Balance Sheet of the company.

DN Ltd. issued 50,000 shares of Rs 10 each at a discount of 10% payable as Rs 2 per share on application Rs 3 on allotment and Rs 2 each on first and final call. Applications were received for 70,000 shares. It was decided that

(a) Refuse allotment to the applicants of 10,000 shares,

(b) Allot 10,000 shares to Mohan who had applied for a similar number, and

(c) Allot the remaining share on a pro-rata basis.

Mohan failed to pay the allotment money and Sohan who belonged to category (c) and was allotted 3,000 shares, paid both the calls with allotment, Calculate the amount received on allotment.

A, B and C were partners in a firm. Their capitals were A Rs 30,000, B Rs 20,000 and C Rs 10,000 respectively. According to the partnership deed they were entitled to an interest in capital @ 5% p.a. In addition B was also entitled to draw a salary of Rs 500 per month. C was entitled to a commission of 5% on the profit after charging the interest on capital, but before charging the salary payable to B. The net profits for the year were Rs 30,000 distributed in the ratio of their capitals without providing for any of the above adjustment. The profits were to be shared in the ratio 2 : 1: 2.

Pass the necessary adjustment entry showing the working clearly.

A, B and C were partners in a firm sharing profits in the ratio of 6 : 5 : 4. Their capitals were A, Rs 1,00,000, B Rs 80,000 and C Rs 60,000 respectively. On 1^st April 2009 ‘C’ retired from the firm and the new profit sharing ratio between A and B was decided as 11 : 4. On C’s retirement the goodwill of the firm was valued at Rs 90,000. Showing your calculation clearly, pass necessary journal entry for the treatment of goodwill on C’s retirement. 

X Ltd. had Rs 10,00,00 9% debentures due to be redeemed out of profits on 1^st October 2009 at a premium of 5%. The company had a

Debentures Redemption Reserve of Rs 4,14,000. Pass necessary journal entries at the time of redemption.

From the following information of a not-for-profit organization show the ‘Sports Material’ item in the Income and Expenditure A/c for the year ending on 31^st March 2009 and Balance Sheet as on 31^st March 2008 and 31^st March 2009. 

Payment to supplies for the Sports Material during the year was Rs 1,00,000. There were no cash purchases made.

X, Y and Z are partners in a firm sharing profits in the ratio 3 : 2 : 1. On April 1^st 2009, Y retires from the firm X and Z agree that the capital of the new firm shall be fixed at Rs 2,10,000 in the profit sharing ratio. The capital accounts of X and Z after all adjustment on the date of retirement showed balances of Rs 1,45,000 and Rs 63,000 respectively. State the amount of actual cash to be brought in or to be paid off to the partners.

 A, B and C are partners in a firm whose books are closed on March 31^st each year. B died on 30^th June 2009 and according to the agreement, the share of profits of a deceased partner up to the date of death is to be calculated on the basis of the average profit for the last five year. The net profits for the last 5 years have been: 2005 , Rs 14,000; 2006 , Rs 18,000; 2007, Rs 16,000; 2008, Rs 10,000 (loss) and 2009, Rs 16,000. Calculate B’s share of the profits upto the date of death and pass necessary journal entry.

Devi Ltd., on 1^st April 2006 acquired assets of the value of Rs 6,00,000 and liabilities worth Rs 70,000 from P & Co., at an agreed value of Rs 5,50,000. Devi Ltd. issued 12% Debentures of Rs 100 each at a premium of 10% in full satisfaction of purchase consideration. The Debentures were redeemable 3 years later at a premium of 5%. Pass entries to record the above including redemption of debentures.

X Ltd., issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows:

Rs 3 on application

Rs 6 on allotment (including premium) and Rs 3 on call

Applications were received for 75,000 shares and a pro-rata allotment was made as follows:

To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All money due were received except the allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for Rs 7 per share fully paid up. Pass necessary Journal Entries for the above transaction.

Janta Ltd., invited application for issuing 2,00,000 equity share of Rs 10 each at a discount of 10%. The amount was payable as follows:

On Application Rs 2 per share

On Allotment Rs 3 per share

On First and final call-balance amount

The issue was undersubscribed to the extent of 20,000 shares. Shares were allotted to all the application. All calls were made and were dully received. ‘A’ to whom 1,500 shares were allotted failed to pay allotment and call money and ‘B’ to whom 1,200 share were allotted paid the full amount due at the time of allotment. The share on which allotment and call money was not received were forfeited. The forfeited shares were re-issued at Rs 8 per share fully paid up.

Pass necessary journal entries in the books of Janta Ltd., for the above transaction.

A, B and C were partners sharing profits in the ratio of 3 : 1 : 1. Their Balance-Sheet as on March 31^st 2009, the date on which they dissolve their firm, was as follows:  

It was agreed that:

(a) A to take over Bills Receivable at Rs 800, debtors amounting to Rs 20,000 at 17,200 and the creditors of Rs 6,000 were to be paid by him at this figure.

(b) B is to take over all stock for Rs 7,000 and some sundry assets at Rs 7,200 (being 10% less than the book value)

(c) C to take over remaining sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs 300.

(d) The expenses of realization were Rs 270

The remaining debtors were sold to a debt collecting agency at 50% of the book value. Prepare Realisation A/c, Partners Capital A/c and Cash A/c

The Balance Sheet of Ram and Shyam, who were sharing profits in the ratio of 3 : 1 on 31^st March, 2009 was as follows: 

State any one limitation of Financial Statement Analysis’

Under which type of activity will you classify ‘Proceeds from Sale of Building’ while preparing Cash Flow statement?

Redemption of debentures would result in inflow, outflow on no flow of cash? Give your answer with reason.

From the following information provided, prepare a comparative income statement for the period 2008 and 2009: 

 A business has a current ratio of 3 : 1 and quick ratio of 1.2 : 1. If the working capital is Rs 1,80,000, calculate the total Current Assets and value of stock.

 From the given information calculate the Stock turnover ratio. Sales Rs 2,00,000; G.P: 25% on cost; Stock at the beginning is 1/3 of the stock at the end which was 30% of sales. 

Assuming that the Debt-Equity ratio is 2. State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases (Any Four)

(a) Purchase of fixed assets on a credit of 2 months

(b) Purchase of fixed assets on a long term deferred payment basis.

(c) Issue of New shares for cash

(d) Issued of Bonus shares

(e) Sale of fixed asset at a loss of Rs 3,000 

From the following Balance Sheets, Prepare a Cash Flow Statements as per AS- 3 (revised)

A dividend of Rs 3,000 was paid during the year 2008-09