SAMPLE PAPER (CBSE) - 2009

ACCOUNTANCY - XII
Time: 3hrs. M.M.: 70
General Instructions : -
1. This question paper contains two parts A and B.
2. All parts of questions should be attempted at one place.

PART A : PARTNERSHIP AND COMPANY ACCOUNTS

1. Not-for-profit organisations have some distinguishing features from that of
profit organisations. State any one of them. 1
2. List two items that may appear on the credit side of a partner's fixed capital
account. 1
3. When a partner withdraws same amount at the end of every month for
twelve months, interest on drawings will be charged for how many months?
1
4. Name any two factors affecting goodwill of a partnership firm. 1
5. What is meant by 'Convertible debentures'? 1
6. On the basis of following information, calculate the amount of stationery to
be shown in income and Expenditure Account for the year ended 31st
March 2007 : 3
Rs.
Stock of stationery on 1.4.2006 50,000
Stock of stationery on 31.3.2007 40,000
Amount paid for stationery during the year2,00,000
Creditors for stationery on 1.4.2006. 20,000
Creditors for stationery on 31.3.2007 10,000
7. Durga Ltd. purchased office furniture costing Rs. 74,000 from Radha
traders. In consideration they accepted a bill (B/P) for Rs. 20,000 for three
months and for remaining amount they issued fully paid equity shares of Rs.
10 each at a discount of 10%. Pass necessary journal entries in the books of
Durga Ltd. 3
8. 20,000 shares of Rs. 10 each were issued for public subscription at a
premium of 10%. Full amount was payable on application. Applications
were received for 30,000 shares and the Board decided to allot the shares on
a pro-rata basis. Pass journal entries. 3
9. X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After
the final accounts have been prepared, it was discovered that interest on
drawings @ 5% p.a. had not been taken into consideration. The drawings of
the partners were : X Rs. 15,000: Y Rs. 12, 600; Z Rs. 12,000. Give the
necessary adjusting journal entry. 4
10. A and B were partners in a firm sharing profits in the ratio of 3:2. With
effect from Ist January, 2007 they agreed to share profits equally. For this
purpose, the goodwill of the firm was valued at Rs. 30,000. Pass the
necessary journal entry for the treatment of goodwill. 4
11. Laxmi Limited had issued shares of Rs. 100 each at a disocount of 5%
payable as follows :
On Application Rs. 25 per share
On Allotment Rs. 25 per share
On first and Final Call Balance
One shareholder, Pran holding 50 shares did not pay his first and final call.
As a result, his shares were forfeited. of these 40 shares were reissued to
Ram as fully paid up @ Rs. 110 per share.
Pass necessarry journal entries to record the forfeiture and reissue of shares
in the books of Laxmi Limited. 4
12. a) On 15.2.2004 J.K. Ltd. invited applications for issue of 1,00,000, 9%
debentures of Rs. 100 each at a discount of 6% redeemable at par after 3
years. The full amount was payable on application and the debentures
were issued on 15.3.2004. The debentures were redeemed on the
maturity date.
b) A company redeemed its 1,200, 14% debentures of Rs. 500 each by
converting them into 12% perference shares of Rs. 10 each to be issued
at a premium of Rs. 2 per share. Pass the journal entries. 3
13. From the following Receipts and Payments Accounts of Sonic club and from
the given additional infromation, prepare the expenditure on account of
Salaries for the year ending 31st December, 2006 and show the salaries items
in the income and Expenditure Account and the Balance sheet as on 31st
December, 2005 and 31st December, 2006. 6
An Extract of Receipts and payments A/c
for the year ending 31st December, 2006
Receipts Rs. Payments Rs.
By salaries
2005 20,000
2006 2,80,000
2007 18,000

Additional Informations :-
Rs.
a) Salaries ourstanding on 31.12.2005 25,000
b) Salaries outstanding on 31.12.2006 45,000
c) Salaries paid in advance on 31.12.2005 10,000
14. Ramesh, Suresh and Mahesh share profits in the ratio of 3:2:1. Suresh dies
on 31st March, 2005. On this day, the balance of their capital accounts were
Rs. 18,000 Rs. 15,000 and Rs. 12,000 respectively. Goodwill was valued at
Rs. 13,500 which is not to be taken into account in the books. On the basis of
revaluation, machine and stock are reduced by Rs. 2,400 and Rs. 1,600
respectively. Provisions were made for doubtful debts Rs. 320. Building and
creditors were increased by Rs. 2,100 and Rs. 600 repectively. Furniture of
which the book value was Rs. 360 became valueless.6
Prepare Suresh's Capital Account and his Executor's Account.
15. Metallic Ltd. invited applications for 40,000 equity shares of Rs. 50 each
issued at a premium of Rs. 10 per share. The amount was payable as
follows :
On application and allotment Rs. 20 per share. Balance (including premium)
on first and final call.
Applications for 70,000 shares were received. Applications for 20,000 shares
were rejected and pro-rata allotment was made to the ramaining applicants.
First and final call was made and duly received except on 400 shares allotted
to Nitesh.
Journalise the above transactions. 8
OR
Arti Limited invited applications for issuing 80,000 shares of Rs. 10 each at a
premium of Rs. 4 per share. The amount was payable as follows :
On application Rs. 5 per share
On Allotment Rs. 9 per share (Including
premium)
Applications were received for 1,40,000 shares.
Allotment was made on the following basis :
i) To applicants for 80,000 shares - 60,000 shares
ii) To applicants for 60,000 shares - 20,000 shares
Money overpaid on applications was utilised towards sum due on allotment.
Rajiv, who had applied for 1,200 shares failed to pay his dues and his shares
were forfeited.
Pass journal entries in the books of Arti Limited to record the above
transactions. 8
16. A and B share profits of abusiness in the ratio of 5:3. They admit C into the
firm for a fourth share in the profits to be contributed equally by A and B.
On the date of admission, the Balance Sheet of A and B is as follows:
8
Balance Sheet
as at
Liabilities Rs. Assets Rs.
A's Capital 30,000 Machinery 26,000
B's Capital 20,000 Furniture 18,000
Reserve Fund 4,000 Stock 10,000
Bank Loan 12,000 Debtors 8,000
Creditors 2,000 Cash 6,000
68,000 68,000
Terms of C's admission were as follows :
i) C will bring Rs. 25,000 as his capital.
ii) Goodwill of the firm is to be valued at 4 years' purchase of the average
super profits of the last three years. Average profits of the last three
years are Rs. 20,000; while the normal profits that can be earned on the
capital employed are Rs. 12, 000.
iii) Furniture is to be appreciated to Rs. 24,000 and the value of stock to be
reduced by 20%.
Prepare Revaluation Account, Partners' Capital Accounts and the
Balance Sheet of the firm after admission of C.
OR
On 31st December, 2007 the Balance Sheet of A, B and C, who were sharing
profits and loss in proportion to their capitals, stood as follows
Liabilities Rs. Assets Rs.
Crediros 10,800 Cash at Bank 8,000
Capitals Debtors 10,000
A 45,000 Less : Provision 200 9,800
B 30,000 Stock 9,000
C 15,000 90,000 Machinery 24,000
Land and Buildings 50,000
1,00,800 1,00,800
B retires and the following readjustments of assets and liabilities have been
agreed upon before the ascertainment of the amount payable to B :
i) That Land and Buildings be appreciated by 12%.
ii) That provision for Doubtful Debts be brought up to 5% of debtors.
iii) That a provision of Rs. 3,900 be made in respect of an outstanding bill
for repairs.
iv) That Goodwill of the entire firm be fixed at Rs. 18,000 and B's share of
the same be adjusted into the accounts of A and C, who are going to share
future profits in the proportion of 3/4th and 1/4th repectively.
v) That B be paid Rs. 5,000 immediately and the balance to be transferred to
his Loan Account.
Prepare revalution Account, Capital Accounts of Partners and the Balance
Sheet of the firm A and C. 8
PART B - ANALYSIS OF FINANCIAL STATEMENTS
17. Assuming that the Debt Equity Ratio is 1:2, state giving reason, whether the
ratio will improve, decline or will have no change in case equity shares are
issued for cash. 1
18. State whether cash deposited in bank will result in inflow, outflow or no flow
of cash. 1
19. Dividend paid by a trading company is classified under which kind of
activity while preparing cash flow statement? 1
20. Under which of the major heads will the following items be shown while
preparing the Balance Sheet of a company. 3
a) Debentures b) Loose tools
c) Securities premium
21. Prepare a comparative income statement with the help of the following
information : 4
Particulars 2006 2007
Sales Rs. 20,00,000 Rs. 30,00,000
Gross Profit 40% 30%
Indirect Expenses 50% of G.P. 40% of G.P.
Income Tax 50% 50%
22. A company's Stock Turnover is 5 times. Stock at the end is Rs. 20,000 more
than that at the beginning. Sales are Rs. 8,00,000. Rate of Gross profit on
cost 1/4; Current Laibilities Rs. 2,40,000. Acid Test Ratio 0.75.
Calculate Current Ratio. 4
23. From the follwing particulars, prepare a Cash Flow Statement of Thukral
Sons Ltd.
Liabilities 1.1.05 31.12.05 Assets 1.1.05 31.12.05
Rs. Rs. Rs. Rs.
Equity Share
Capital 2,75,000 4,00,000 Fixed Assest 4,10,000 4,00,000
12% Preference
Share Capital 1,25,000 1,00,000 Less :
Accumulated
Depreciation (1,10,000) (1,50,000)
Profit & Loss A/c 10,000 8,000 3,00,000 2,50,000
General Reserve 20,000 24,000 Stock 3,00,000 3,50,000
15% Debentures 60,000 70,000 Debtors 2,00,000 2,40,000
Creditors 1,20,000 1,10,000 Prepaid Exp. 3,000 5,000
Proposed Dividend 50,000 58,000 Cash 12,000 35,000
Provision for Tax 30,000 42,000
Bank Overdraft 1,25,000 68,000
8,15,000 8,80,000 8,15,000 8,80,000
Additional Information :
A part of fixed assets costing Rs. 1,00,000 (accumulated depreciation
30,000 ) sold at a profit of 25%. 6