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

Nita and Samar are partners in a firm sharing profits in the ratio of 3 : 2. Their fixed capitals were ₹ 90,000 and ₹ 2,10,000 respectively. They admitted Mitali on April 1, 2022 as a new partner for 1/5th share in future profits. Mitali brought ₹ 1,50,000 as her capital. The value of goodwill of the firm of Mitali's admission was ______.

₹ 3,00,000

₹ 7,50,000

₹ 1,50,000

₹ 30,000

Bina and Ria are partners sharing profits in the ratio of 5 : 3. They admitted Siya as a new partner for 3/8th share which she acquired 2/8th from Bina and 1/8^th from Ria. The new profit sharing ratio of Bina, Ria and Siya will be ______.

3 : 2 : 3

2 : 3 : 3

5 : 5 : 6

9 : 1 : 6

Assertion (A): Partnership is the relation between persons who have agreed to share the profits of the business carried on by all or any of them acting for all.

Reason (R): If a partner carries on any business of the same nature and competing with that of the firm, he/she shall account for and pay to the firm all profit made by him/her in that business.

Both (A) and (R) are correct

Both (A) and (R) are incorrect

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

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

Aysha Ltd. forfeited 1,10,000 shares of ₹ 10 each issued at 20% premium for the non-payment of first call of ₹ 2 per share and final call of ₹ 3 per share, Share Forfeited Account will be credited with ______.

₹ 5,50,000

₹ 7,70,000

₹ 2,20,000

₹ 5,00,000

Which of the following statements is true?

The shares of a public limited company are not freely transferable

Paid-up capital is that part of the subscribed capital which has been called up.

The company cannot raise more capital than the amount of capital as specified in the Memorandum of Association.

The part of the uncalled capital which is called only in the event of winding up of the company is called Capital Reserve. 

L, M and N are partners sharing profits in the ratio of 5: 3 : 2. They decided to share profits equally with effect from 1^st April, 2022. On that date, there was a balance of ₹ 2,00,000 in General Reserve and a credit balance of ₹ 4,00,000 in the Profit and Loss Account. The Journal Entry for the above on account of change in profit sharing ratio will be:

X, Y and Z are partners sharing profits and losses in the ratio of 2: 3: 1. They decided to share future profits in the ratio of 3:2: 1 with effect from 1^st April, 2022. At the time of change of profit sharing ratio, unrecorded furniture will be recorded in the books of Accounts by ______.

Debiting it to Partners' Capital Account

Debiting it to Revaluation Account

Crediting it to Revaluation Account

Crediting it to Partners' Capital Account

On dissolution of the partnership firm of A, B and C, the accumulated profits of ₹ 40,000 will be transferred to which of the following account? 

Revaluation Account

Realisation Account

Partners' Capital Account

Bank Account

The debentures which are payable on the expiry of a specified period either in lump-sum or in installments during the life time of the company are known as ______.

Secured debentures

Specific coupon rate debentures

Redeemable debentures

Convertible debentures

Which of the following statement is incorrect with respect to debentures?

Debentures can be issued for cash.

Debentures cannot be issued at discount.

Debentures can be issued as collateral security.

Debentures can be issued at premium.

PremierAuto Ltd. purchased assets of the value of ₹ 3,60,000 from Anand Ltd. and made the payment of purchase consideration by issuing 11%. Debentures of ₹ 100 each at a discount of 10%. The number of debentures issued by Premier Auto Ltd. were ______.

3,600

36,000

40,000

4,000

Nita, Suman and Harish were partners in a firm sharing profits in the ratio of 3: 2: 1. Suman retired from the firm. On the date of Suman’s retirement, ₹ 30,000 was due to her. The remaining partners decided to pay her in three yearly installments starting from the end of the first year. ₹ 30,000 will be transferred to which of the following account:

Suman's Loan Account

Suman's Executor's Accounts

Suman's Bank Account

Suman's Current Account

The average number of months for which interest on drawings will be calculated will be:

3½ months

4½  months

7½ months

6 months

The partnership deed provided that interest on capital will be allowed @10% p.a. The amount of interest on Ishita's capital will be:

₹ 18,000

₹ 16,000

₹ 20,000

₹ 10,000

Khushi, Namita and Manvi were partners in a firm sharing profits and losses in the ratio of 5:2:3. On 30^th June, 2022, Khushi died. The partnership deed provided that on the death of a partner, her share of profit till the date of death was to be calculated on the basis of average profit of last three years less ₹ 10,000.  Profits for the last three years were:

Khushi's share of profit till the date of her death was:

₹ 35,000

₹ 9,583

₹ 28,750

₹ 8,750

An equity share of ₹10 fully called up on which ₹ 6 has been paid was forfeited for the non-payment of the balance amount. At which of the following minimum price can it be reissued?

₹4

₹10

₹16

₹6

200 equity shares of ₹10 each issued at par were forfeited for non-payment of first call of ₹3 per share. Final call of ₹2 per share was not yet called. By which amount the share capital will be debited on forfeiture?

₹ 2,000

₹ 1,600

₹ 1,000

₹ 2,200

Indu, Vijay and Pawan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. They admitted Subhash into partnership with effect from 1^st April, 2022. New profit sharing ratio among Indu, Vijay, Pawan and Subhash will be 3: 3: 2: 2. An extract of their Balance Sheet as at 31^st March, 2022 is given below:

Which of the following is the correct accounting treatment of 'investment fluctuation reserve' at the time of Subhash's admission?

Amit, Sumit and Kiara are partners sharing profits and Losses in the ratio 2: 2: 1. Sumit is entitled to a commission of 15% on the net profit after charging such commission. The net profit before charging commission is ₹ 9,20,000. The amount of commission payable to Sumit will be ______.

₹ 1,20,000

₹ 1,38,000

₹ 48,000

₹ 55,200

P, Q and R are partners in a firm sharing profits and losses in the ratio of 2: 2: 1. For the year ended 31^st March, 2022, interest on capital was credited to them @ 10% p.a. instead of 5% p.a. Their fixed capitals were ₹ 2,00,000;  ₹ 1,00,000;  ₹ 50,000 respectively. The necessary adjustment entry to rectify the error will be:

Aditya, Abhinav and Ankit were partners in a firm sharing profits in the ratio of 4: 3 : 3. On 31^st March, 2022, the firm was dissolved. Aditya was appointed to complete the dissolution process for which he was allowed a remuneration of ₹ 42,000. Aditya also agreed to bear dissolution expenses. Actual expenses on dissolution amounted to ₹ 33,000 which were paid by Aditya. Aditya’s Capital Account will be credited by: 

 ₹ 42,000

 ₹ 33,000

 ₹ 9,000

 ₹ 18,000

Aayush and Aarushi are partners sharing profits and losses in the ratio of 3 : 2. They admitted Naveen into partnership for 1/4^th share. Goodwill of the firm was to be valued at three years' purchase of super profits. Average net profit of the firm was ₹ 20,000. Capital investment in the business was ₹ 50,000 and Normal Rate of Return was 10%. Calculate the amount of Goodwill premium brought by Naveen. 

Asha, Disha and Raghav were partners in a firm sharing profits in the ratio of 2: 3 : 1. According to the partnership agreement. Raghav was guaranteed an amount of ₹ 40,000 as his share of profits. ‘The net profit for the year ended 31^st March, 2022 amounted to ₹ 1,20,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ended 31^st March, 2022.

Akhil and Nikhil were partners sharing profits and losses in the ratio of 3 : 2. Their fixed capitals ‘were ₹ 1,00,000 and ₹ 80,000 respectively. Interest on capital was agreed @ 6% p.a. Nikhil was to be allowed an annual salary o f₹ 9,200 During the year 2021-22, the net profit prior to the calculation of interest on capital but after charging Nikhil’s salary amounted to ₹1,20,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ending 31^st March, 2022.

Tarun, Abhishek, Kamal and Vivek were partners in a firm sharing profits in the ratio of 5:3:2:2. Kamal retired on 31^st March, 2022. Tarun, Abhishek and Vivek decided to share future profits equally. On Kamal's retirement goodwill of the firm was valued at ₹ 9,00,000. Showing your working clearly, pass the necessary journal entry for treatment of goodwill on Kamal's retirement. It was decided not to show goodwill in the books of the firm. 

Atul and Geeta were partners sharing profits in the ratio 3 : 2. Ira was admitted into the firm for `1/4"th"` share of profits. Ira brought ₹ 40,000 as her capital. The capitals of Atul and Geeta after all adjustments relating to goodwill, revaluation of assets and liabilities etc. are ₹ 60,000 and ₹ 40,000 respectively. It is agreed that capitals should be according to the new profit sharing ratio.

Calculate the amount of actual cash to be paid off or brought in by the old partners. Pass the necessary journal entry/entries for the same.

Neon Ltd. purchased assets worth ₹ 18,00,000 and took over liabilities of ₹ 2,00,000 of Zenith Ltd. for a purchase consideration of ₹ 15,00,000, Neon Ltd. paid the amount by accepting a bill of exchange of 3,00,000 and the balance was settled by issuing 10% debentures of ₹ 100 each at a premium of 20%. Pass necessary journal entries for the above transactions in the books of Neon Ltd.

Shiv Ltd. was registered with an authorised capital of ₹ 9,00,000 divided into equity shares of ₹ 10 each. The company issued a prospectus inviting applications for issuing 80,000 equity shares. The company received applications for 79,000 equity shares. All calls were made and duly received except the second and final call of ₹ 3 per share on 4,000 shares held by Anu. These shares forfeited. 

1. Present the 'Share capital' in the Balance Sheet of the company as per Scheduled III. Part I of the Companies Act, 2013. 
2. Also prepare 'Notes to Accounts' for the same.

P, Q and R were partners in a water dispenser manufacturing firm. They were sharing profit and losses in the ratio of 2 : 2 : 1. On 31^st March, 2022, their Balance Sheet was as follows:

Q died on 30^th June, 2022. According to the partnership deed, his legal representative were entitled to:

1. Interest on capital @ 12% p.a.
2. ₹ 12,000 for his share of Goodwill.
3. His share of profit till the date of death was to be calculated on the basis of sales. The sales from 1^st April 2022 to 30^th March 2022 were ₹ 62,500. The sales and profits of the firm for the year ending 31^st March 2022 was ₹ 5,00,000 and ₹ 1,25,000 representatives.

Vani Limited invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of 10%. The amounts were payable as under: On Application and Allotment - ₹ 4 per share (including premium ₹ 1)

On first call -₹ 4 per share

On second and final call - ₹ 3 per share

Applications for1,50,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money was adjusted towards sums due on calls. Parth, a shareholder who had applied for 600 shares did not pay the first call. His shares were forfeited. The second and final call was not yet made. Half of the forfeited shares were reissued at ₹ 8 per share fully paid-up.

Journalise the above transactions in the books of Vani Limited by opening calls in arrears and calls in advance account wherever necessary.

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases:

Vipin Ltd. forfeited 10,000 shares of ₹ 10 each issued at a premium of ₹ 1 per share, for non- payment of second and final call of ₹ 2 per share. Out of these, 60% of the shares were reissued ₹ 7 per share fully paid-up. 

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases:

Deepak Ltd. forfeited 800 shares of ₹ 10 each, ₹ 8 per share called up, for non-payment of first call of ₹ 3 per share. All the forfeited shares were reissued for ₹ 12 per share fully paid. 

Kamal, Rahul and Neeraj were partners in a firm sharing profits and losses in the ratio of 5: 3: 2. On 31st March, 2002, their Balance Sheet was as under:

On the above date, Rahul retired and following terms are agreed upon:

1. Goodwill of the firm was valued at ₹ 3,50,000.
2. An item of ₹ 10,000 included in sundry creditors is not likely to be claimed and hence written off. Stock was valued at ₹ 90,000.
3. Capital of the new firm was fixed a ₹  2,10,000 and the same will be adjusted in the profit sharing ratio of the remaining partners. For this purpose the required cash will be brought in or paid off as the case may be.
4. Amount payable to Rahul will be transferred to his loan account.

Prepare Revaluation Account and Partners' Capital Accounts on Rahul's retirement.

Ashish and Vishesh were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31^st March, 2022 was under:

On 1^st April, 2022, Manya was admitted into the firm with 1/4th share in the profits on the following terms:

1. Manya will bring ₹ 1,00,000 as her capital and ₹ 50,000 as her share of goodwill premium in cash.
2. Outstanding electricity bill will be paid off.
3.  Stock was found overvalued by ₹ 12,000.

Pass the necessary journal entries in the books of the firm on Manya's admission

Pass the necessary journal entries for the following transactions, on the dissolution of a partnership firm of Kavita and Suman on 31^st March, 2022, after the various assets (other than cash) and third party liabilities have been transferred to Realisation Account.

1. Kavita took over stock amounting to ₹ 1,00,000 at ₹ 90,000.
2. Creditors of ₹ 2,00,000 took over Plant and Machinery of ₹ 3,00,000 in full settlement of their claim.
3. There was an unrecorded asset of ₹ 23,000 which was taken over by Suman at ₹ 17,000.
4. Realisation expenses ₹ 2,000 were paid by Kavita.
5. Bank loan ₹ 21,000 was paid off.
6. Loss on dissolution amounted to ₹ 7,000.

Chiranjeevi Limited issued 2,000, 10% debentures of ₹ 100 each. Pass the necessary Journal entries for the issue of debentures in the following cases:

1. When debentures were issued at 10% premium, redeemable at 5% premium.
2. When debentures were issued at 5% discount, redeemable at 10% premium.
3. When debentures were issued at par, redeemable at a premium of 10%

Which of the following are not tools of Financial Analysis?

1. Cash Flow Statement
2. Income Statement
3. Balance Sheet
4. Ratio Analysis

(i) and (ii)

(ii) and (iv)

(ii) and (iii)

(iii) and (iv)

Which one of-the following statement is incorrect?

Liquidity ratios are calculated to measure the short-term solvency of the business.

Current ratio is also known as Acid Test Ratio.

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

Proprietary ratio expresses the relationship of proprietor's funds to net assets/total assets.

Which of the following transaction will result in no flow of cash?

Purchase of machinery

Sale of investments

Acquisition of machinery by issue of equity shares

Redemption of debentures

Match the transactions given in column - II with their correct category given in Column - I for the purpose of preparation of 'Cash Flow Statement'.

(a) - (iii), (b) - (i), (c) - (ii)

(a) - (ii), (b) - (i), (c) - (iii)

(a) - (i), (b) - (iii), (c) - (ii)

(a) - (ii), (b) - (i), (c) - (iii)

The current assets of X Ltd. are ₹ 2,00,000 and its current liabilities are ₹ 1,50,000. If its working capital turnover ratio is 6 times, its revenue from operations will be ______.

₹ 2,00,000

₹ 3,00,000

₹ 2,50,000

₹ 1,50,000

Which of the following activities are operating activities for the purpose of preparing 'Cash flow statement'?

1. Dividend and Interest received on securities.
2. Payment of employee benefit expenses.
3. Cash receipts from royalties and fees.
4. Issue of shares against purchase of machinery.

(i), (ii) and (iii)

(ii), (iii) and (iv)

(i), (ii) and (iv)

(ii) and (iii)

Under which heads and sub-heads the following items will appear in the Balance Sheet of Company as per Schedule III, Part-I of the Companies Act, 2013:

1. Loose tools
2. Calls-in-Advance
3. Capital Reserve

It is the process of identifying the financial strengths and weaknesses of the firms by properly establishing relationships between the various items of the balance sheet and the statement of profit and loss. Identify the process highlighted in the above statement and state its any two objectives.

From the following information, calculate the value of opening and closing inventory:

Inventory Turnover Ratio - 4 times.

Gross Profit = 20% on Revenue from Operations.

Revenue from Operations = ₹ 10,00,000.

Opening inventory is 25% of the inventory at the end.

Debt-Equity Ratio of Z Ltd. is 2: 1. State with reason whether the following transactions will improve, decline or will not change the debt-equity ratio:

1. Conversion of ₹ 3,00,000, 9% debentures into equity shares.
2. Cash received from debtors ₹ 1,00,000.
3. Redemption of ₹ 10,00,000, 11% debenture.
4. Purchase of goods on credit ₹ 4,00,000.

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

Aditi, initiated her start-up Fizz Ltd. in 2019, ‘Fizz Ltd. is an organic juice extracting unit. Its profits are increasing year-after-year because of the increasing awareness towards health.

Following information has been extracted from the Balance Sheet of ‘Fizz Ltd.” for the year ended 31" March, 2022:

Additional Information:

1. During the year, a machine costing ₹ 4,00,000 was sold at a gain of ₹ 30,000.
2. Depreciation charged on machinery during the year was ₹ 50,000.
3. Interest paid on 11% debentures amounted at ₹ 5,50,000.
4. Dividend of ₹ 3,00,000 was paid on equity shares.
5. Debentures were redeemed at a premium of 10% on 31^st March,2022.

Calculate cash flows of 'Fizz Ltd.' from 'Investing Activities' and 'Financing Activities.