THE INDIAN SCHOOL, KINGDOM OF BAHRAIN SECOND MODEL EXAMINATION 205. Class: XII Time: hours Sub : ACCOUNTANCY Maxi. Marks: 80 General Instructions: ) This Question paper contains two parts A and B. 2) Part A is Compulsory for all. ) Part B has two options Financial Statement Analysis and Computerized Accounting ) Attempt only one option of Part B. 5) All parts of a question should be attempted at one place.. Which of the following asset is compulsory to revalue at the time of admission of a new partner: (a) Stock (b) Fixed Assets (c) Investments (d) Goodwill 2. A and B are partners sharing the profits in the ratio of : 2. They take C as the new partner, who is supposed to bring Rs.25,000 against capital and Rs.0,000 against goodwill. New profit sharing ratio is : :. C is able to bring Rs.0,000 only. How this will be treated in the books of the firm. (a) A and B will share goodwill brought by C as 000: 000. (b) Goodwill not brought, will be adjusted to the extent of Rs.5,000 in sacrificing ratio. (c) Both. (d) None.. On dissolution of a firm, partner s loan account is transferred to: (a) Realization A/c (b) Partner s Capital A/c (c) Partner s Current A/c (d) None of these.. Capital Reserves are credited out of : (a) Balance in profit and loss account (b) Reserve profits (c) Both (d) Capital profits. 5. The company issued shares of Rs.0 each at a premium of Rs.2 payable as: Rs. on application; Rs. (including premium) on allotment; Rs. on first call and the balance on final call. Mr.Ben who holds 00 shares failed to pay the first call money. The Co. has forfeited the 00 shares after the first call. On forfeiture, the amount debited to share capital account =? (a) Rs.,200 (b) Rs.,000 (c) 800 (d) 700. A, B and C are the partners sharing profits and losses in the ratio 2::. Firm has a joint life policy of Rs.,20,000 and in the balance sheet it is appearing at the surrender value i.e. Rs.20,000. On the death of A, how this JLP will be shared among the partners. (a) Rs.0,000 : Rs.0,000 : Rs.0,000 (b) Rs.50,000 : Rs.25,000 : Rs.25,000 (c) Rs.0,000 : Rs.20,000 : Rs. 20,000 (d) Whole of Rs.,20,000 will be paid to A. 7. State any three conditions according to Sec.79 of Companies Act, 95 for the issue of shares at discount. 8. Three Chartered Accountants B, N and D formed a partnership. They agreed to share profit and loss in the ratio of : 2:. They also agreed to the following: (i) The firm guaranteed that D s share of profit will never be lesser than Rs.,50,000. (ii) N guaranteed to the firm that the minimum amount earned by him for the firm will be Rs.2,50,000. The firm earned a profit of Rs.7,50,000. The actual profit earned by N for the firm amounted to Rs.,0,000. Show the distribution of profit among partners through P/L Appropriation A/c. 9. Dev Ltd. has an authorized capital of Rs.0,00,000 divided into equity shares of Rs.0 each. The Co. invited applications for 50,000 shares. Applications for 0,000 shares were received. All calls were made and duly received except the final call of Rs.2 per share on,000 shares. 500 of the shares on which final call was not received were forfeited. Show the Share Capital in the Balance Sheet of Dev Ltd. as per Schedule VI of the
Companies Act, 95. Also prepare Notes to Accounts for the same. 0. Excel Ltd. is operating in the textile industry. Honesty and hard work are the two pillars on which the business has been built. It has a good turnover and profits. They issued 5,000 fully paid-up shares of Rs.00 each for the purchase of the assets and liabilities of Angel Ltd., a company really struggling for their survival. The assets and liabilities consisted of the following: Plant Rs.5,00,000; Land and Building Rs.,00,000, Inventories Rs.,00,000; Machinery Rs.,00,000; Trade payables Rs.,50,000 and Bank Overdraft Rs.50,000. You are required to pass necessary journal entries for the above transactions in the books of Excel Ltd. Also identify one value which the company wants to communicate to the society.. Following is the Balance Sheet of Anaka, Benjamin and Chithra who are sharing profits in the ratio of 2: : 2 as on st March, 20. Liabilities Rs. Assets Rs. Creditors Out Standing Salary Capitals: Anaka Benjamin Chithra 0,000 2,000,,000 90,000,20,000 Building Debtors Cash at Bank Profit and Loss Account 2,50,000 80,000,000 0,000,9,000,9,000 Anaka died on st August, 20. She has contributed Rs. 5,000 on July, 20 towards her capital. According to the partnership agreement, she was entitled to interest on capital @8% p.a. Her share of profit till the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was to be calculated on the basis of three times the average profits of the last four years. The profits for the years ended 200-, 20-2 and 202- were Rs.0,000, Rs.70,000 and Rs.80,000 respectively. Prepare Anaka s account to be rendered to her executors. 2. X and Y are partners sharing profits in the ratio of :2. Their combined capital as on --20 was Rs.80,000. Interest on capital is agreed @ % p.a. During 20-, the profits of the year prior to calculation of interest on capital but after charging X s salary amounted to Rs.2,500. A provision of 5% of the profits is to be made in respect of manager s commission, which is amounted to Rs.750. Fill in missing figures in the following accounts:- Profit and Loss Appropriation A/c for the year ending st March,20 Particulars Rs. Particulars Rs. To Interest on capital: X s Capital,000 Y s Capital,800 To Salary: X s Capital To Profit transferred to:,800 By P& L A/c - X s Capital -- Y s Capital -- - --
Partners Capital Accounts Particulars X Y Particulars X Y To Balance c/d ------ ------ By Balance b/d By Interest on Capital By - By P&L Appro.A/c,000,800 ------ ------. (a) Wise, Clever and Dull were trading in partnership sharing profits and losses :: respectively. The accounts of the firm are made up to st December every year. The partnership provided, inter alia, that: On the death of a partner the goodwill was to be valued at three years purchase of average profits of the three years up to the date of death after deducting interest @ 8% on capital employed. The profits are assumed to be earned evenly throughout the year. On 0 th June, 20, Wise died. The profits for earlier years: 2008- Rs.7,200; 2009-Rs.75,00; 200-Rs.72,000; 20- Rs.2,00. It was agreed for the purpose of valuation of goodwill, the capital employed would be Rs.,5,000. You are requested to compute the value of goodwill of the firm. (b) A and B are in partnership sharing profits and losses at the ratio of :2. They take C as a new partner. Calculate new profit sharing ratio if- (i) A and B agree to sacrifice /0 th share to C in the ratio of 2: and (ii) C simply gets /0 th share of profit.. (a) Sunshine Company Ltd. took a loan of Rs.20,00,000 from a bank by giving Rs.25,00,000, 0% debentures of Rs.,000 each as collateral security. Pass the necessary Journal entries, if any, and show this loan in the Balance Sheet of the Company. (b) A Co. purchased its own Rs.,00,000 debentures of Rs. 50 each @ Rs.5 per debenture. The expenses of purchase amounted to Rs. 2,500. Pass necessary journal entry for redemption. 5. M, S and R were partners in a firm sharing profits and losses in the ratio of 2 : 2 :. On st May,20, their firm was dissolved. From the information given below, complete Realization A/c and Partners Capital Accounts: Realization Account Particulars Rs. Particulars Rs. To Sundry Assets To M s Capital (Creditors were paid off at discount by Rs.5000) To S s Capital (Expenses),0,000 5,000 By Creditors By R s Capital A/c (Sundry Assets) By Loss transferred to: M s Capital-2,000 S s Capital -2,000 R s Capital -,000 80,000 5,000 - - -- Partners Capital Accounts Particulars M S R Particulars M S R To To To To Cash A/c - - By ----- By ----- ------ ------ By Cash A/c,000,0,000,2,000 - - -
. A and B are partners sharing profits and losses in the ratio of : 2. Their Balance Sheet as on.0. 20 is given below: Liabilities Rs. Assets Rs. Creditors Bills Payable Bank Overdraft Capital Accounts: A B 2,900,00 9,000,000,000 Building Furniture Stock Debtors 5,000 Less: Provision 200 Investments Cash 2,000 5,800 2,00,800 2,500 5,500 8,0,000,0,000 On..20 they admit C on the following terms: (i) C is admitted for / th share in the future profits and to introduce a capital of Rs.25,000 (ii) The new profit sharing ratio A, B and C will be : 2 : respectively. (iii) C is unable to bring in cash for his share of goodwill; they decide to calculate goodwill on the basis of C s share in the profits and the capital contribution made by him to the firm. (iv) Furniture is to be written down by Rs.870 and stock to be depreciated by 5%. A provision is required for debtors @5% for bad debts. A provision would also be made for outstanding wages for Rs.,50. The value of building having appreciated be brought up to Rs.29,200. (v) The value of investments is increased by Rs.50. (vi) It is found that creditors included a sum of Rs.,00, which is not to be paid off. Prepare the following: (a) Revaluation Account. (b) Partners Capital Accounts. OR Dowell & Co. is a partnership firm with partners A, B and C sharing profits and losses in the ratio of 0 : :. The Balance Sheet of the firm as at st March,20 is as under: Liabilities Rs. Assets Rs. Capital: Land 0,000 A 80,000 Buildings 2,00,000 B 20,000 Plant and Machinery,0,000 C 0,000 Furniture,000 Reserves 20,000 Investments 2,000 Long term debt,00,000 Stock,0,000 Bank Overdraft,000 Debtors,9,000 Trade Creditors,70,000,,000,,000 B retires from the business and partners agree that: (a) Goodwill is to be valued at Rs.,00,000 but the same will not appear as an asset in the books of the reconstituted firm. (b) Buildings and Plan & Machinery are to depreciated by 5% and 20% respectively. Investments are to be taken over by the retiring partner at Rs.5,000. Provision of 20% is to be made on debtors to cover doubtful debts. (c) In the reconstituted firm, the total capital will be Rs.2,0,000 which will be shared by A and C in their new profit sharing ratio, which is 5 : 2.
Prepare: (i) Revaluation A/c and (ii) Partners Capital Accounts. 7. Beautiful Co. Ltd. issued,000 equity shares of Rs.0 each payable as Rs. on Application, Rs.5 per share (including Rs. 2 premium) on Allotment and Rs. per share on Call. All the shares were subscribed. Money due on all shares was fully received excepting Ram, holding 50 shares, failed to pay the Allotment and Call money and Shyam, holding 00 shares, failed to pay the Call money. All those 50 shares were forfeited. Of the shares forfeited, 25 shares (including whole of Ram s shares) were subsequently re-issued to Jadu as fully paid up at a discount of Rs. 2 per share. Pass the necessary entries in the journal of the company. OR On st January,205, X Ltd. made an issue of 0,000 equity shares of Rs.0 each at a premium of Rs. per share, payable as Rs. on application (including Rs. premium); Rs.2 on allotment (including Rs. premium); Rs. on first call (including Rs. premium) and Rs.2 on second and final call. Applications were received for 5,000 shares, of which applications for 9,000 shares were rejected and their money was refunded. Rests of the applicants were issued shares on pro rata basis and their excess money was adjusted towards allotment. Hari, to whom 00 shares were allotted, failed to pay the allotment money and his shares were forfeited after allotment. Menon, who applied for,080 shares failed to pay the two calls and on such failure, his shares were forfeited. Pass necessary Journal entries. PART B: ANALYSIS OF FINANCIAL STATEMENTS 8. Cash from operating activities consists of.. (a) Operational Net profit (b) Decrease in Current Assets (c) Increase in current liabilities (d) All the above. 9. DLF Ltd is carrying on a Mutual Fund Business. It invested Rs.20,00,000 in shares and Rs.5,00,000 in debentures of various companies during the year. It paid Rs.0,000 as consultation fee for the service rendered by Hedge Equities Ltd (a leading security service provider). Find out cash flow from investing activities. 20. (i) Give the main headings under which the following items will be shown in a company s Balance Sheet as per schedule VI Part I of Companies Act 95. a) Unclaimed Dividend b) Livestock c) Provision for employee benefits d) Computer Software (ii) State any two tools of Vertical Analysis. 2. Calculate Return on Investment and Debt-Equity ratio in the following case: Capital Employed - Rs.50,00,000 0% Loan (Long-term) - Rs.5,00,000 Net Profit after Interest and Tax - Tax Rate - 0% Rs.7,00,000 22. Prepare the Common-Size Income Statement from the following information Particulars Revenue from operations Cost of Materials Consumed Other Expenses Income Tax Rate Interest received on Investments,00,000 st March,20 (Rs.) 70% of Revenue from operations 8,000 0% 0,000 8
2. From the following Balance Sheets of Moon Ltd., prepare Cash Flow Statement. Particulars Note No..0.20.0.20 I. EQUITY AND LIABILITIES. Shareholders Funds a) Share Capital b) Reserves and Surplus 2. Non-Current Liabilities Long-term Borrowings: 0% Debentures. Current Liabilities a) Short- term Borrowings (Bank Overdraft) b) Trade Payables (Creditors) c) Short-term Provisions Total II. ASSETS. Non-Current Assets Fixed Assets 2. Current Assets a) Trade Receivables b) Inventories c) Other Current Assets: Prepaid Expenses d) Cash and Cash Equivalents Total 2 2,00,000,00,000,00 22,000 20,000 ------ 2,7,000 ============,50,000 8,000 70,000,000 7,000 ----- 2,7,000 ============,80,000,000 2,000 25,000 2,000,000-2,,000 =========,0,000 0,000 0,000 00 2,00-2,,000 ======== Notes to Accounts: Particulars.0.20.0.20. Share Capital Equity Share capital 2% Preference Share capital,80,000 20,000,55,000 25,000
2. Reserves and Surplus General Reserve Balance in Statement of Profit and Loss,000 2,00,000 2,000. Short-term Provisions: Provision for Tax Proposed Dividend. Fixed Assets Cost Less: Accumulated Depreciation 8,00,00,80,000 0,000,000 0,000,82,000 22,000 Additional Information: i) Tax paid during the year amounted to Rs.7,000 ii) Fixed Assets sold for Rs.0,000, their Cost Rs.20,000 and accumulated depreciation till date of sale of them Rs.,000. ******************************************************************************************