St.

Marry's Inter College

Vastu Khand
Pre Board Examination
Subject-Accountancy
Time: 3 Hrs. MM: 80

PART A: ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS,

PARTNERSHIP FIRMS AND COMPANIES

1. Explain the meaning of specific donation. (1)

2. In the absence of partnership deed which of the following is not correct? (1)
(a) Profit sharing ratio is equal for every partner
(b) Interest on capital @ 6°/0 p.a. to each partner
(c) No salary and commission to any partner
(d) None of the above
3. If partnership deed provides for the payment of interest on capital but there was
a loss during the year. At what rate will the interest on capital be allowed?
(1)
4. L, M and N were partners. They were changed their profit sharing ratio from
4:3 : 2 to equal for each. Their Balance Sheet shows a debit balance of Z
1,44,000 in Profit and Loss Account. What is the effect on capitals of partners
when they were decided not to disturb the Profit and Loss Account. (1)
(a) Dr. L for Z 16,000; Cr. N for Z 16,000
(b) Dr. L for Z 36,000; Cr. N for Z 36,000
(c) Dr. N for Z 16,000; Cr. L for Z 16,000
(d) Dr. N for Z 36,000; Cr. L for 36,000
5. Name any two items which are always be distributed when there is no
information is given about those at the time of change in ratio. (1)
6. Madan and Mohan were partners sharing profits and losses in Ratio of 3 : 1.
They admit Manoj and new ratio will be 4 : 3 : 2. Manoj brings goodwill 40,000
in cash. Adjustment of goodwill will be: (1)
(a) Dr. Premium for Goodwill 40,000; Dr. Mohan for Z 15,000; Cr. Madan for
Z 55,000
(b) Dr. Premium for Goodwill 15,000; Dr. Mohan for 40,000; Cr. Madan for
55,000
(c) Dr. Premium for Goodwill 40,000; Dr. Mohan for Z 20,000; Cr. Madan for
Z 20,000
(d) None of the above
7. What is hidden goodwill? (1)

ACCOUNTANCY- XII
8. The retiring partner is liable to third party until: (1)
(a) He gets his share of profits
(b) His loan account is settled
(c) A public notice of his retirement is given
(d) None of above
9. The item of assets side which never be transferred to Realisation Account is:
(1)
(a) Cash (b) Patents
(c) Prepaid Expenses (d) Goodwill
10. What do you mean by Reserve Capital? (1)
11. Securities Premium Reserve can be used for: (1)
(a) Purchasing the fixed assets for company
(b) Payment the long-term loans of company
(c) Buy back of own shares of the company
 (d) Redemption of equity shares
12. How much amount will be invested in specific securities by a company for
Redemption of its Debentures? (1)
13. A company can be issued its debentures for: (1)
(a) Consideration other than cash
(b) Collateral security of a loan
(c) Cash consideration
(d) All or any of the above
14. Show the amount of Locker's Rent earned during the year with the help of the
following informations: 31.3.2018 (Z) 31.3.2019 (Z) Outstanding Locker's
Rent 3,680 5,040 Advance Locker's Rent 2,400 3,200 Locker's Rent received
during the year 2018-2019 was ! 25,000. (3)
15. X, Y and Z started a business on 1st April, 2018 with capitals ! 2,00,000; !
1,60,000 and ! 1,20,000 respectively. Their profit sharing ratio will be 3 : 2 : 1
after interest charged on capitals @ 10% p.a. and interest charging on drawings
@ 12% p.a. The drawings on 31st March, 2019 were X, ! 24,000; Y ! 30,000
and Z ! 12,000. Z to whom salary of 2,000 p.m. was payable had a guaranteed
that the firm would earn a profit of ! 1,50,000 before charging or allowing
interest and salary payable to the partners. Actual profits earned by the firm
before interest and salary amounted to ! 1,40,000. Prepare Profit and Loss
Appropriation Account. (4)
OR
Rohit and Sarita are partners sharing profits and losses in the ratio of 3 : 2
having capitals of 3,00,000 and ! 2,00,000. On Tarun's admission they have r
60,000 in Profit and Loss Account and ! 5,50,000 in General Reserve,
Advertisement Suspense ! 10,000 in their Old Balance Sheet. Tarun is admitted
 for 1/5th share and brings ! 4,00,000 as his capital. Prepare necessary Journal
Entries for Capital and Goodwill on Tarun's Admission. (4)
16. P, T and M were partners in a firm with capitals of 60,000; ! 60,000 and !
80,000 respectively. According to partnership deed the partners were entitled
to the interest on capitals cr 5% p.a. The salary provided to M was 500 p.m.
The profits were to be divided as follows:
(i) The first 20,000 in proportion to their capitals.
(ii) Next 30,000 in the ratio of 5 : 3 : 2.
(iii) The remaining profits to be shared equally.
(iv) The firm earned the profits during the year was ! 1,56,000. Prepare the
Profit and Loss Appropriation Account. (4)
OR
Anand, Banti and Chetan were partners sharing profits and losses in the ratio
of 2 3 4. They deckled to 4 1 2 share future profits and losses in the ratio of —
9 —3 —9 . At the time of change in ratio the following items were appearing
in their Old Balance Sheet:

(i) General Reserve 1,44,000

(ii) Profit and Loss Account 72,000
(iii) Advertisement Suspense 54,000 You are required to give the necessary Single
Journal Entry.
17. XYZ Ltd. took over assets of Z 11,20,000 and creditors of 1,60,000 from ABC
Ltd. -XYZ Ltd. issued 8% debentures of 20 each at a premium of 20% as
purchase consideration to ABC Ltd. Calculate the amount of purchase
consideration and pass the necessary Journal Entries in the books of XYZ Ltd.
Also show the effect of above debentures issued at 20% discount. (4)
18. Manju Ltd. had 2,00,000, 9% debentures of Z 10 each, out of which half
debentures was due for redemption on March 31st, 2019. The company has in
its debenture redemption reserve account, a balance of 4,40,000. Record the
entries for above transactions. (4)
19. Following is the Receipt and Payment Account of a Sports Club for the year
ended 31st March, 2019:

RECEIPT AND PAYMENT ACCOUNT

Dr.
RECEIPT AND PAYMENT ACCOUNT
Receipts Amount (z) Payments Amount (Z)
To Subscriptions 14,000 By Upkeep of Field 5,600
To Admission Fees 840 By Tournament Expenses 1,960
To Sale of Old Bats 140 By Rates and Insurance 560
To Hire of Ground 840 By Telephone Expenses 140
To Subscription for 2,800 By Printing and Stationery 280
Tournament
To Drawn from Bank 11,200 By General Charges 140
To Donations 28,000 By Secretary and 560
Honorarium
By Bats, Balls etc. 1,960
By Lodged with Bank 46,620
57,820 57,820

Additional Informations:
(i) Assets as on 1st April 2018, were as follows:
 Cash at Bank Rs. 8,400
Stock of Bats and Balls Rs. 4,200
Printing and Stationery Rs. 560
Subscriptions due Rs. 1,400
(ii) Donations are to be capitalised.
(iii) Subscription due on 31st March, 2019 was 2,100.
(iv) Write off 50% of Bats and Balls (Not considered as sale) and 25% of Printing
and Stationery. Prepare Income and Expenditure Account and Balance Sheet as
on 31st March, 2019. (6)
20. Lakhan and Manoj were partners in a firm sharing profits and losses in the
ratio of 3 : 2. On 31st March, 2019 their Balance Sheet was as under:

Liabilities Amount (z) Assets Amount (Rs)

Creditors 1,40,000 Bank 80,000
Capitals: (Rs.) Debtors 2,40,000
Lakhan 3,00,000 Stock 1,20,000
Manoj 1,60,000 4,60,000 Furniture 1,00,000
Goodwill 60,000
6,00,000 6,00,000
ACCOUNTANCY—XII
On the above date Naveen was admitted as new partner. Lakhan surrendered 1/6th
of his share and Manoj 1/3rd of his share in favour of Naveen. Goodwill is valued
at 2,40,000. Naveen brings in only 1/2 of his share of goodwill in cash and
2,00,000 as his capital. Following adjustments were agreed upon:
(i) Stock is to be reduced to 1,12,000 and furniture by 10,000.
(ii) There was an unrecorded asset worth 40,000.
(iii) One month's rent of 30,000 was outstanding.
(iv) A creditor for goods purchased for 20,000 had been omitted to be recorded
although the goods had been correctly included in stock.
(v) Insurance premium amounting to 16,000 was debited to Profit and Loss
Account, out of which 4,000 was related to the period after 31st March, 2019.
You are required to prepare Revaluation Account and Partner's Capital
Accounts. (6)
OR
Ravi, Kishan and Raju were partners in a firm sharing profit and losses in the
proportion to their capitals. Their Balance Sheet as on 31st March, 2019 was as
follows:
Liabilities Amount (Rs.) Assets Amount (Rs.)
Creditors 16,000 Building 1,40,000
General Reserve 12,000 Machinery 60,000
Capital Accounts: Stock 8,000
Ravi 40,000 Debtors 12,000
Kishan 60,000 Cash 8,000
Raju 1,00,000
2,28,000 2,28,000
Kishan died on 30th June, 2019 and his executor was entitled to the following:
(i) Interest on capital @ 12% p.a.
(ii) Kishan's share of goodwill on the basis of the firm's goodwill which was
valued at 2,40,000.
(iii) Share of profit from the closing of last year to the date of death on the basis of
last year's profit.
(iv) Last year's profit was 15,000. Pass the necessary Journal Entries and prepare
Kishan's Capital Account. (6)
21. Himani Ltd. issued 1,000 shares of 1,000 each at a premium of 5% per share,
payable as: On Application Rs.100; On Allotment Rs. 250 (including
premium) On First Call -9 400; On Final Call -9 Balance. Applications were
received for 1,800 shares of which applications for 300 shares were rejected
and the rest of the applications were allotted on pro-rata basis. Excess
application money was transferred to allotment. All the money was duly
received except from 'Mukesh' the holder of 100 shares, who have failed to
pay allotment and first call money. His shares were forfeited and immediately
re-issued at 600 per share. The final call had not been made. Pass the
necessary Journal Entries. (8)
OR
Pass necessary Journal Entries in the books of the company for the following
transactions:
(a) Guru Ltd. forfeited 14,000 shares of Z 100 each, issued at 30% premium, for
non-payment of first call of 30 per share. The second and final call of Z 20 per
share was not yet made. The forfeited shares were re-issued as fully paid such
that 4,20,000 was transferred to Capital Reserve.
(b) Rajni Ltd. forfeited 940 shares of Z 20 each issued at a premium of Z 3 per
share for the non-payment of allotment money of Z 8 including Premium and
 First Call of Z 5 per share. Final call of Z 5 per share was not made. Half of
the forfeited shares were re-issued at 19 each as fully paid. (4 + 4 = 8)
22. X, Y and Z were partners in a firm sharing profits and loss in the ratio of
1 1 1
∶ ∶ respectively. Their Balance sheet as on 31st March, 2019 was as
2 3 6

follows:
Liabilities Amount (Rs.) Assets Amount (Rs)
Trade Creditors 37,800 Goodwill 10,800
Workmen's Compensation Fund 21,600 Cash at Bank 10,350
Employees Provident Fund 10,800 Debtors Rs.
72,000
Investment Fluctuation Fund 10,800 Less: Provision
Capital Accounts: for Doubtful
X Debts Rs.
Y 3600 68,400
Z Stock 67,770
Investment 27,000
(Market Value 18,000
R s. 31,680 90,000
Patents 6,480
Machinery
2,98,800 Advertisement 2,98,800
Expenditure
Z retired on the above date on the following terms:
(i) Goodwill of the firm was valued at 54,000.
(ii) Patents was to be reduced by 20%.
(iii) Machinery was to be reduced to 90%.
(iv) The provision for doubtful debts to be raised to 6%.
(v) Liability on account of Provident Fund was only 5,400.
(vi) Liability for Workmen's Compensation to the extent of Z 10,800 is to be
created.
(vii) 'Z' took over the investments at the market value. 50% amount due to Z was
paid immediately, 50% of the balance within one year and the balance by a Bill of
Exchange (without interest) at 3 months.
Prepare Revaluation Account, Partner's Capital Account and Balance Sheet of the
firm after Z's retirement. (8)
OR
Raju, Raka and Kaka were partners in a firm sharing profits in the ratio of 4 : 1 : 5.
The firm was dissolved. On the date of dissolution their position was as follows:
Liabilities Amount (Rs) Assets Amount (Rs)
Bank Loan 43,400 Bank 4,800
Creditors 38,000 Debotors Rs. 27,400
General Reserve 14,000 Less: Provision (Rs 800) 26,600
Capital Accounts: Stock 10,800
Raju 1,40,000 Furniture 13,200
Raka 60,000 Machinery 40,000
Kaka 1,00,000 Buildings 3,00,000
3,95,400 3,95,400
Assets relised as follows:
(i) Debtors Rs. 27,7000; Stock at 15% loss; Furniture was taken over by Raju for
Rs. 7,900.
(ii) Buildings was sold for Rs.2,90,000; Kaka took over 50% of the machinery at
5% less than book value.
(iii) Bank loan was paid with interest of Rs. 950. Creditors paid at 5% discount.
(iv) Expenses of dissolution Rs. 700 were paid by Kaka.
(v) Remaining Machinery was sold at 50% profit.
Prepared necessary accounts. (8)
PART B: ANALYSIS OF FINANCIAL STATEMENTS
23. Which of the following is a Short-term Solvancy ratio?
(a) Debt-Equity Ratio
(b) Net Profit Ratio
(c) Quick Ratio
(d) Stock Turnover Ratio
24. Give any two examples of Intangible Fixed Assets as per Schedule III, Part I of
the Companies Act, 2013. (1)
25. Which of the following is appears in sub-head of short-term provision? (1)
(a) Provision for expenses
(b) Outstanding expenses
(c) Provident fund
(d) Prepaid expenses
26. Explain any two objectives of 'Analysis of Financial Statements'.
27. Which of the following are interested parties of Financial Analysis?
(a) Trade Unions
(b) Suppliers
(c) Tax Authorities
(d) All of above 28. Payment of bonus to the employees by an insurance company
is which type of activity? (1)
29. Purchase of Patent Rights is treated as:
(a) Application of Operating Activity
(b) Sources of Financing Activity
(c) Applications of Investing Activity
(d) None of the above
30. You are given the following informations of Yuvraj Ltd.:
Particulars 31.3.2019 (Rs) 31.3.2018 (Rs)
Gross Revenue from Operations 2,15,000 1,60,000
Revenue from operations Returns 15,000 10,000
Purhcase of Stock-in-Trade 1,50,000 1,20,000
Change in Inventories (10,000) 2,000
Other Incomes 20,000 15,000
Other Expenses 2,000 1,500
tax Rate 50%
Prepare a common size Income Statement.
31. Following are the information of Gopal a Sole Proprietor:
Particulars 31st March, 2018 31st March, 2019
Sales Rs 7,60,000 Rs. 11,40,000
Cost of Goods Sold 60% of Sales 70% of Sale
Indirect Expenses 50% of Gross Profit 40% of Gross Profit
Tax Rate 50%
Prepare a Comparative Income Statement. (4)
OR
You are informed the following: (Rs)
Revenue from Operations 6,00,000
Cost of Revenue from Operations 4,80,000
Opening Inventory 1,16,000
Closing Inventory 1,24,000
Receivables 64,000
Operating Expenses 64,000
Net Fixed Assets 4,40,000
From the above informations calculate:
 (a) Gross Profit Ratio (4)
(b) Inventory Turnover Ratio (6)
32. Following is the Balance Sheet of Shantanu Ltd.
Particulars 31.03.2018 31.03.2019
(Rs) (Rs)
I. EQUITY AND LIABILITIES:
1. Shareholder's Funds:
(a) Share Capital
Equity share Capital
12% Preference Share Capital 4,20,000 5,60,000
(b) Reserve and Surplus: 2,10,000 1,40,000
General Reserve
Statement of Profit and Loss 56,000 98,000
2. Current Liabilities: 42,000 67,200
Trade Payables 1,05,000 1,38,600
TOTAL 8,33,000 10,03,800
II. ASSETS:
1. Non-current Assets:
(a) Tangible Assets:
Building 2,24,000 1,68,000
Plant 1,12,00 2,80,000
(b) Intangible Assets:
2. Current Assets: 1,00,800 56,000
Inventories 28,000 42,000
Trade Receivables 3,33,200 4,32,600
Cash and Cash Equivalents 35,000 25,200
TOTAL 8,33,00 10,03,800
Additional Information:
(i) Depreciation charged on plant was Rs. 28,000.
(ii) Depreciation charged on building was Rs. 1,68,000.
Prepare a Cash Flow Statement of Shantanu Ltd. as per AS-3 (Revised). (6)