Accounts Official 2023-2024 ISC (Commerce) Class 12 Question Paper Solution

On the date of admission of Ajay as a partner, the Balance Sheet of the firm of Nita and Rita showed a balance of ₹ 80,000 in the Workmen Compensation Reserve.

Choose the correct option to record the effect of a workmen compensation claim of ₹ 90,000 on the accounts of the partnership firm.

The Revaluation Account to be credited with ₹ 10,000.

The Revaluation Account to be debited with ₹ 10,000.

The Capital Accounts of Nita and Rita to be debited with ₹ 90,000.

The Capital Accounts of Nita and Rita to be credited with ₹ 90,000.

Credit Access Grameen Ltd., a listed NBFC - MFI (Micro Finance Institution), is all set to enter the bond market next week to raise up to ₹ 1,000 crore in non-convertible debentures, as it looks to diversify its liability profile. 
According to the provisions of the Companies Act, 2013, what is the maximum amount of these non-convertible debentures which Credit Access Grameen Ltd. will redeem out of its capital?

₹ 100 crore

₹ 150 crore

₹ 900 crore

₹ 1,000 crore

Choose the correct order in which a partnership firm, at the time of its dissolution, will apply the amount realised from the sale of its assets, including any amount contributed by the partners, towards the payment of:

P: Partners' loan

Q: Firm's debts

R: Balance of partners' capital

S: Surplus divided amongst the partners in their profit-sharing ratio

P, Q, R, S

Q, P, S, R

S, P, Q, R

Q, P, R, S

Tulip Ltd. allotted 45,000 Equity shares of ₹ 10 each to the public. The first and final call of ₹ 2 per share was not received on 1,000 shares, which were forfeited by the company. Later, 600 of the forfeited shares were reissued at ₹ 7 fully paid-up. What is the Subscribed Capital of the company?

₹ 4,49,200

₹ 4,50,000

₹ 4,40,000

₹ 4,46,000

Assertion: A revaluation account is prepared at the time of dissolution of a partnership.

Reason: A revaluation account is prepared to determine the net gain/loss on realisation of assets and settlement of liabilities.

Which one of the following is correct?

Both Assertion and Reason are true and Reason is the correct explanation for Assertion.

Both Assertion and Reason are true but Reason is not the correct explanation for Assertion

Both Assertion and Reason are false.

Assertion is true but Reason is false.

A firm having a debtor of ₹ 30,000 from whom the amount was due on 30^th June, 2023, gets dissolved on 31st March, 2023. The debtor cleared his dues on the date of dissolution of the firm at a discount of 4% per annum.

Give the journal entry passed by the firm to realise the payment from the debtor.

Xylo Ltd. issued 9,000, 7% Debentures of ₹ 100 each at a certain rate of discount. After writing off the discount on the issue of debentures, the company was left with a balance of ₹ 35,000 in its Securities Premium out of the original amount of ₹ 71,000.

At what rate of discount did the company issue these Debentures?

The Annual Report of ITC Ltd., for the financial year 2021-22, showed Claims against the Company not acknowledged as debts of ₹ 880.58 crores including Third party claims arising from disputes relating to contracts aggregating ₹ 29.22 crores.

Mention the heading and the sub-heading under which this item would, have been shown in the Notes to Accounts accompanying the Balance Sheet of ITC Ltd. as at 31st March, 2022.

Deepa and Pia are in partnership sharing profits and losses in the ratio of 3:2. They admit Charu as a partner for 1/5 share in the profits. The capitals of Deepa and Pia, before adjusting the loss of ₹ 5,000 on revaluation of assets and liabilities, are ₹ 30,000 and ₹ 20,000 respectively. It is decided that Charu will contribute 25% of the combined capitals of Deepa and Pia. What is Charu's capital contribution?

The Balance Sheet of Anjum Ltd. as at 31st March 2022, had outstanding 1,000, 8% Debentures of ₹ 100 each. These debentures were to be redeemed by the company on 31st March 2023. Give the journal entry for the amount due to the Debenture holders on 31st March 2023, including the interest on debentures due to them.

The Balance Sheet of Hari, Jacob and James as at 31^st March, 2023, stood as follows:

Jacob died on 30^th June, 2023.

His drawings from 1^st April, 2023, up to the date of his death amounted to ₹ 1,00,000 According to the partnership deed, Jacob was:

1. To be charged with interest on drawings @ 4% per annum.
2. Entitled to his share of interim profits for which his capital account was credited with ₹ 1,10,000.
3. Entitled to his share in the non-purchased goodwill of the firm.

The firm's non-purchased goodwill on the date of Jacob's death had no value.
The final amount due to Jacob by the firm was transferred to his executor's loan account.
You are required to prepare the Interim Balance Sheet of the reconstituted firm as at 30^th June, 2023.

Kamal, Ali and John are partners in a firm. On Kamal's retirement from the firm on 30^th June, 2023, his capital account stood at ₹ 40,000 after all adjustments.
The partners decided that Kamal be paid 50% of the amount due to him immediately and the balance, alongwith interest @ 6% per annum, be paid on 30th June, 2024.
The firm closes its books on 31st March every year.

You are required to prepare Kamal's Loan Account till it is finally closed.

On 1st April, 2022, Harbour Ltd. issued 50,000, 6% Debentures of ₹ 100 each to the public at a discount of 5% to be redeemed after three years at a premium of 7%.
On this date, the company also issued 1,00,000 Equity shares of ₹ 10 each at a premium of ₹ 2 per share.
Both the issues were fully subscribed.

You are required to prepare the following accounts for the year 2022-23 in the books of Harbour Ltd.:

1. 6% Debentures Account.
2. Loss on issue of Debentures Account

On 1^st April, 2022, the following balances appeared in the books of Alpha Pvt. Ltd.

The Debenture Redemption Investment, which was purchased by the company on 1^st April, 2022, was realised at 101% on the date of redemption and the debentures were redeemed on the due date. 

You are required to prepare the following accounts for the year 2022-23 in the books of Alpha Pvt. Ltd.

1. Debenture holders' Account.
2. Debenture Redemption Investment Account.

On 1^st April, 2022, Resorts Ltd. (a listed construction company) had 60,000, 5% Debentures of ₹ 100 each due for redemption at par on 31^st March, 2023.
As per the law, investment was made in a fixed deposit of a bank on 30th April, 2022, earning interest @ 5% per annum.
Tax @ 10% was deducted by the bank on the interest.

You are required to pass necessary journal entries in the year of redemption of debentures, including entries for interest on Debenture Redemption Investment. (Ignore the interest on Debentures)

On 1^st April, 2020, Anish started a business with a capital of ₹ 3,00,000.
During the three years ending 31^st March, 2023, the results of his business were:

From the year 2020-21 to the year 2022-23, Anish withdrew ₹ 30,000 from the firm for his personal use.
On 1st April, 2023, he admitted Danish into partnership on the following terms:

1. Goodwill of the firm to be valued at two years' purchase of the average profits of the last three years.
2. Danish to have 1/4 share in the future profits.
3. Danish's capital to be equal to 1/4 of Anish's capital determined on 1^st April, 2023, after the goodwill compensation has been taken into account.

You are required to give:

1. The formula to calculate goodwill by the Average Profit Method.
2. The value of self-generated goodwill of the firm.
3. Danish's capital contribution.

The following balances have been extracted from the books of Meadow Ltd. as at 31^st March, 2023.

Additional Information:

• The company had issued 1,25,000 Equity shares of ₹ 10 each which were all applied for and allotted to the public. These shares were fully called up by the company.
• There were calls-in arrears @ ₹ 2 per share on 15,000 shares out of which 5,000 shares were forfeited by the company.

You are required to:

1. Show the Share Capital in the Notes to Accounts.
2. Give the amount for each of the following:
   1. Short-term borrowings
   2. Current Assets
   3. Property, Plant and Equipment and Intangible Assets
      1. Property, Plant and Equipment

Amay and Sujoy are partners sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet as at 31st March, 2023, is given below.

On 1st April, 2023, they admit Malay as a new partner for 1/4 share in the profits on the following terms:

1. Malay to bring his share of capital of ₹ 1,20,000 and to pay ₹ 10,000 in cash for his share of goodwill.
2. Stock worth ₹ 45,000 to be taken over by Amay at ₹ 25,000.
3. Bills Payable of ₹ 20,000 to be honoured by Sujoy, for which he is not to be reimbursed.
4. The capitals of Amay and Sujoy to be adjusted on the basis of Malay's Capital and his share in the profits, any surplus to be readjusted through current account and deficiency through cash.

You are required to prepare the Partners' Capital Accounts.

Mitu and Ritu are partners sharing profits and losses in the ratio of 2 : 3. An extract of their Balance Sheet as at 31^st March, 2023, is given below:

On 1^st April, 2023, they admit Nitu as a new partner for 1/5 share in the profits on the following terms regarding the treatment of the reserves and the accumulated losses:

1. Accumulated losses, if any, to be written off.
2. A workmen compensation claim of ₹ 10,000 to be adjusted against the Workmen Compensation Reserve. The balance of the reserve is not to be distributed.
3. Any loss in the value of investments to be adjusted against the Investment Fluctuation Reserve. The balance of the Investment Fluctuation Reserve is to be distributed.
4. Provision for doubtful debts to be created to the extent of 10% of the debtors from the General Reserve. The remaining amount in the General Reserve is to be distributed.

You are required to pass the necessary journal entries to record the above adjustments at the time of Nitu's admission.

Adit and Shiv were partners sharing profits and losses in the ratio of 5 : 4. They dissolved their partnership firm on 31^st March 2023, when their Balance Sheet showed the following balances:

On the date of dissolution of the firm:

1. The firm suffered a loss of ₹ 18,000 upon realisation of assets and settlement of liabilities.
2. The expenses of dissolution of ₹ 3,000, to be borne by Shiv, were paid by the firm on his behalf.
3. The firm had furniture of ₹ 15,000. Adit took over some pieces of the furniture at ₹ 9,000 (being 10% less than the book value). Shiv took over the remaining furniture at 80% of its book value.

You are required to prepare the Partners Capital Accounts.

Tanuj and Ravi are partners in a business with capital balances of ₹ 1,50,000 and ₹ 1,00,000 respectively on 1^st April, 2022.

Their partnership deed contains the following clauses:

1. Interest on capital to be allowed @ 10% per annum.
2. Interest on drawings to be charged @ 4% per annum.
3. Tanuj to be allowed a commission @ 5% of the trading profit after charging his commission.
4. Ravi to be allowed an annual commission of ₹ 10,000.

Additional information:

During the year 2022-23:

• Tanuj withdrew ₹ 6,000 at the end of every quarter.
• The trading profit of the firm was ₹ 84,000.
• The firm's divisible profit was ₹ 46,360.
• On 1st October, 2022, Ravi permanently withdrew ₹ 20,000 from his capital.

You are required to do the following:

1. Pass the journal entries to record:
   
   1. The permanent withdrawal made by Ravi.
   2. The distribution of the divisible profits between the partners.
   3. The adjusting entry for commission due to Ravi.
2. Calculate the interest on capital allowed to:
   1. Tanuj
   2. Ravi
3. Calculate the commission allowed to Tanuj.
4. Calculate the interest on drawings charged from Tanuj.

Amit and Iqbal are partners in a business. Their partnership deed contained the following clauses:

1. Interest on drawings to be charged @ 6% per annum.
2. Amit to get a salary of ₹ 1,000 per month.
3. Iqbal to get an annual commission of ₹ 10,000.
4. Any partner taking a loan from the firm to be charged interest on it @ 8% per annum.

You are required to:

1. Give the closing journal entry for interest on loan due from Amit.
2. Find the opening capital balance of the partners on 1^st April, 2022, by preparing the Partners' Capital Accounts for the year 2022-23.

Gama Ltd. issued 20,000 Equity shares of ₹ 10 each to the public, payable as follows:

₹ 2 on Application

₹ 3 on Allotment (on 1^st November, 2022)

₹ 5 on First & Final Call (on 1^st March, 2023)

Applications were received for 25,000 shares. The directors of the company accepted applications for 20,000 shares and refunded the application money on the remaining shares.
One shareholder who was allotted 30 shares paid the first and final call with allotment.
Another shareholder did not pay his allotment on 20 shares when due but paid it with the first and final call along with interest on calls-in-arrears.
The directors of the company charged interest on calls-in-arrears at the rate provided in Table F of the Companies Act, 2013. No interest was allowed on calls-in-advance.

You are required to pass journal entries to record the above transactions in the books of Gama Ltd.

Roxy Ltd. issued Equity shares of 10 each payable as:

₹ 4 on Application and Allotment; ₹ 2 on First Call; ₹ 4 on Second and Final Call.
Following is an extract of the Journal of Roxy Ltd.

You are required to complete the journal entries by filling up the missing information represented by '??', including the number of shares and narration, if any.

Savi Ltd. forfeited 50 shares of ₹ 100 each issued at a premium of 10%, on which allotment money of ₹ 30 per share (including premium) and first and final call of ₹ 40 per share were not received.

What is the minimum amount per share at which the company can reissue these shares?

What is the difference between Total Assets and Current Liabilities?

Total Liabilities

Shareholders' Funds

Total Debt

Capital Employed

While preparing its Cash Flow Statement, which of the following will be classified by a company as its Cash Outflow from Investing Activities?

P: Investment in Government Securities.

Q: Investment in bank deposits (having maturity of six months).

R: Proceeds from redemption of liquid mutual fund units.

S: Proceeds from bank deposits with original maturity of less than three months.

P and Q

R and S

Only P

Only R

A company has a Quick Ratio of 1.8 : 1. Mention whether this ratio will improve/reduce/not change after it sells a machine worth ₹ 1,20,000 at a loss of ₹ 30,000.

State whether creditors would prefer lending to a company with a high Debt-Equity Ratio or a low Debt-Equity Ratio. Give a reason.

An extract of the Balance Sheet of Nova Ltd. shows:

During the year 2022-23, the company raised its share capital by issuing bonus shares to the shareholders at the beginning of the year in the ratio of 1 : 5 (one bonus share was issued for every five equity shares). The balance shares were issued for cash to the public.

How many shares were issued for cash by the company?

Following is the Comparative Income Statement of Violet Ltd. for the years ending 31-3-2023 and 31-3-2022.

You are required to present the Comparative Income Statement in its complete form after calculating the missing information represented by "??".

Based on the following information of Neon Ltd., answer the questions given below in relation to the Cash Flow Statement of the company for the year 2022-23.

Note: Dividend proposed in the years 2021-22 and 2022-23 were ₹ 30,000 and ₹ 40,000 respectively.

Additional information:

During the year 2022-23, the company:

1. Provided ₹ 75,000 for tax.
2. Issued 7% Debentures at a discount of 5%.
3. Purchased Plant & Machinery for ₹ 40,000.

1. What is the amount of tax paid by the company?
2. Give the reason for the opening book value and closing book value of Plant & Machinery remaining the same, despite the purchase of a machine during the year.
3. What is the inflow of cash from the issue of 7% Debentures?
4. Give the company's outflow of cash for dividend paid to the shareholders.
5. State with reason whether Neon Ltd. will consider the decrease in the amount of land as an Operating Activity or as an Investing Activity, while preparing its Cash Flow Statement.

From the following Balance Sheets of Halogen Ltd., you are required to prepare a Cash Flow Statement (as per AS 3) for the year 2022-23.

Notes to Accounts:

Additional Information:

During the year 2022-23, the company:

1. Issued additional debentures on 1^st October, 2022.
2. Sold Plant & Machinery, the book value of which was ₹ 1,20,000 (accumulated depreciation ₹ 38,000), for ₹ 50,000.

From the following particulars of Hind Ltd., calculate the preference dividend paid by the company:

Calculate the Current Ratio (up-to two decimal places) of Windlas Biotech Ltd. from the following extract of its Annual Report of 2021-22.

For the year 2022-23, the Return on Investment of Yolo Ltd. was 20%; its Capital Employed being ₹ 50,00,000.

1. You are required to give the formula used by Yolo Ltd, to calculate the Return on Investment.
2. You have been provided with two components for calculating Return on Investment. Calculate the missing third component.

Calculate the Working Capital Turnover Ratio of Moonlight Ltd., (up-to two decimal places) from the following particulars.

Which one of the following is the shortcut key in MS Excel to 'undo the last action'?

Ctrl + Z

Ctrl + V

Ctrl + Y

Ctrl + X

Which one of the following files contains one or more worksheets to organise data?

Workbook

Excelbook

Datasheet

Spreadsheet

What is the intersection of a column and a row in a worksheet called?

Which programming language is used to write a Macro in MS Excel?

State any one advantage of maintaining a journal using an electronic spreadsheet instead of preparing it manually.

What is the use of UPDATE command in SQL?

Name the DBMS language component which can be embedded in a programme.

Give the difference between data and information along with an example.

Arrange the following in hierarchy to create a DBMS:

FIELD, DATA, FILE, RECORD

Give any two basic commands of SQL.

State any two requirements that should be considered before making an investing decision to choose between 'Server database' or 'Desktop database'.

Mink & Sons run a bakery that sells sandwiches, cookies, muffins and pastries. The raw material is sourced from a well-known supplier and fresh items are prepared every day for the customers. The cost of each item also includes the cost of cutlery and paper napkins.

During the festive season, the bakery gives small discounts to its customers.

The spread sheet given below is a summary of its Purchases, Sales and Unsold Stock for the month of October 2023:

Based on the above transactions and the information given in the spreadsheet, answer the following questions:

1. Write the formula to calculate the total sales of sandwiches in cell H2.
2. Give the formula to calculate the cost of cookies sold in cell I3
3. Write the formula to calculate the cost of unsold stock of muffins in cell J4.
4. 1. Give the formula to calculate the festival discount on the sale of Pastries in cell G5.
   2. Calculate the amount of festival discount per pastry in cell G5.