These Sample papers are part of CBSE Sample Papers for Class 12 Accountancy. Here we have given CBSE Sample Papers for Class 12 Accountancy Paper 1
CBSE Sample Papers for Class 12 Accountancy Paper 1
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Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 1 of Solved CBSE Sample Papers for Class 12 Accountancy is given below with free PDF download solutions.
Time: 3 Hours
Maximum Marks: 80
(i) Please check that this paper contains 23 questions.
(ii) The paper contains two parts A and B.
(iii) Part A is compulsory for all.
(iv) Part B has two options—Option-1 Analysis of Financial Statements and Option-II Computerized Accounting.
(v) Attempt only one option of Part B.
(vi) All parts of a question should be attempted at one place.
PART – A
Partnership Firms and Company Accounts
A and B decided to allow a commission of 2% on total sales to C as he devoted the maximum time in the business of partnership firm. Give the journal entry and identify the value highlighted here.
Under what circumstances change in profit sharing ratio is needed?
How will the firm record the payment of realisation expenses which were to be borne by a partner but paid by the firm on his behalf?
When is reserve capital called by the company?
State any two alternatives other than rejecting applications that a company can take in case of over-subscription.
State any two methods of valuation of goodwill on the basis of super profits.
Shashi Ltd. purchased a running business from Varun Ltd. for a sum of Rs 1,50,000 payable by issue of 10,000, 12% debentures of Rs 10 each at premium of Rs 2 per share and the balance in cash. The assets and liabilities taken over were:
fixed assets [Tangible] Rs 1,00,000; Trade receivable Rs 30,000; Inventory Rs 50,000; Trade payment Rs 20,000.
You are required to pass journal entries for the above transactions in the books of Shashi Ltd.
(a) Ashoka Ltd. are manufacturers of shoes. The company is very particular about the observation of the provisions of the companies Act and SEBI guidelines. On 1st April, 2014, the company purchased 600, 8% debentures of Rs 100 each at Rs 105 per debenture for the purpose of investment. On 1st August, 2014 the company sold 200, 8% debentures @ Rs 104 per debenture. Since manufacturing of shoes results in air pollution, the company had installed a plant for its effective control.
Pass necessary journal entries for the above transactions. It is assumed that the company has adequate balance in debenture redemption reserve account and 15% investments as per law.
(b) Identify the value observed by the company.
What is meant by partnership deed? Write any two contents of partnership deed.
Sharp Ltd. was formed on 1st December, 2014 with a capital of Rs 5,00,000 divided into shares of Rs 10 each. If offered 80% of the shares to the public. The issue price was payable as follows: 30% of the face value per share was payable with application, 20% of the face value per share was payable with allotment. The balance as and when required. The company did not call for the balance during the year.
All the shares offered by the company were subscribed for. The company did not receive L. allotment money on 3,000 shares. You are required to:
(i) Show the share capital in the balance sheet of the company.
(ii) Prepare notes to accounts.
On 01.04.2015, A, B and C are partners sharing profits and losses in the ratio of 3:2:1. Accounts are closed on 31st March annually. C died on 1st August, 2014. Besides his capital, C’s legal representative is entitled to :
(i) Interest on capital at 10% per annum upto the date of death.
(ii) Partner’s share of profit based on the current year’s profit. It is estimated that current year’s profit will be 20% more than previous year’s profit.
(iii) Partner’s share in goodwill which is to be calculated at three year’s purchase of the average profit of the last four years. C’s capital on 1st April, 2014 stood at Rs 80,000 and his drawings from that date to the death amounted to Rs 11,000. Profit and loss for the last four years is 2010-11: Rs 30,000; 2011-12: Rs 56,000; 2012-13 Rs 10,000 [Loss] and 2013-14; Rs 68,000 respectively.
Prepare C’s capital account.
Paras and Lokesh are partners in the firm, agreed to appropriate the profits of their firm on the following terms :
(a) Interest is payable on capital @ 5% p.a.
(b) Paras will be entitled to a salary of Rs 500 per month
(c) Interest on loan to be given by the firm to the partner @ 10% p.a.
(d) Interest on drawings charged from the partners @ 5% p.a.
(e) Lokesh will get commission @ 1% on the sales made during the year.
(f) Paras is entitled to rent Rs 25,000 p.a. for allowing the firm to carry on the business in his premises.
The net profit and sales of the firm for the year ended 31st March 2015 was Rs 1,80,000 before above adjustments and Rs 7,00,000 respectively. Other particulars. Were:
Prepare profit and loss appropriation A/c for the year 2014-15 from the above transactions.
Complete the following journal entries:
Journal Entries of A Ltd.
Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary journal entries for the following after various assets (other than cash and bank) and third party liabilities have been transferred to realisation A/c
(a) There was furniture worth Rs 50,000. Aman took over 50% of the furniture at 10% discount and the remaining furniture was sold at 30% profit on book value.
(b) Profit and loss account was showing a credit balance of Rs 15,000 which was distributed between the partners.
(c) Harsh’s loan of Rs 6,000 was discharged at Rs 6,200.
(d) The firm paid realization expenses amounting to Rs 5,000 on behalf of Harsh who had to bear these expenses.
(e) Creditors, to whom the firm owned Rs 6,000, accepted stock of Rs 5,000 at a discount of 5% and the balance in cash.
(f) The loss on dissolution was Rs 8,000.
Sin, Tin and Jin are partners sharing profit and losses equally. Their balance sheet as at 31st March, 2015, stood as follows:
From 1st April, 2015, the partners decide to share profits and losses in the ratio of 3 : 2 :1 and for that purpose, the following revised value assets were agreed upon:
Building Rs 2,75,000, Plant and Machinery Rs 90,000, Patient and copyrights Rs 1,32,500, stock Rs 2,00,000. Prepaid Insurance Rs 5,000 and Debtors Rs 1,42,500. Goodwill of the firm was valued at Rs 60,000.
Partners decided not to disturb the reserves. Also, they decide not to record the revised values of assets in the book of accounts. You are required to:
(a) Pass the necessary journal entry to give the effect to the above agreement without opening revaluation account.
(b) Prepare partners’ capital accounts and balance sheet of the reconstituted firm.
(c) Show your working clearly.
Ashish and Brijesh were partners in a firm sharing profits and losses in the ratio of 3 :2. They were trading in artificial limbs. On 1st April, 2015, they admitted Chaman, a good friend of Ashish, into the partnership. The balance sheet of Ashish and Brijesh as at 31st March, 2015 was as follows:
Chaman was admitted in the firm on the following terms:
(i) Chaman will bring in Rs 30,000 as his share of capital but he was unable to bring any amount, of goodwill.
(ii) The profit and loss sharing shall be so adjusted that, Ashish receives half of Brijesh’s share and chaman receives one third of Ashish’s share.
(iii) The goodwill of the firm was valued at Rs 60,000.
(iv) The value of stock reduced by 10% and furniture was overvalued by Rs 150.
(v) The capitals of all the partners will be adjusted in this profit and loss sharing ratio. Prepare profit and loss adjustment account, capital accounts of partners and balance sheet of the new firm from the above.
Angad, Kunal and Nitin were partners sharing profits and losses in the proportion of 2 : 2 :1 respectively. The balance sheet of their firm as at 31st March, 2015 stood as follows:
Angad retires, due to illness, on 1st April, 2015, subject to the following adjustments:
(a) Provision for bad and doubtful debts to be increased by Rs 975.
(b) Stock to be appreciated by 20% and buildings by 10%.
(c) Machinery to be depreciated by 10% and Motor van by 15%.
(d) Goodwill of the firm to be valued at Rs 9,000. It is also decided that after retirement of Angad, Goodwill not to be shown in the books (as per accounting standard 26).
(e) The capitals of the continuing partners are to be adjusted according to the new profit sharing ratio which is agreed between Kunal and Nitin as 3 : 2 respectively.
(f) Excess or shortfall in Kunal and Nitin’s capital Accounts to be transferred to their respective current accounts.
You are required to prepare:
(i) Revaluation account
(ii) Partner’s capital accounts
(iii) Balance sheet of the reconstituted firm.
Anand Ltd. issued 1,00,000 equity shares of Rs 10 each at a premium, payable as Rs 3 on application, Rs 6 on allotment [including premium] and Rs 3 on call. Applications were received for 1,60,000 shares out of which, letter of regret were sent to applicants for 30,000 shares, full allotment was made to applications for 40,000 shares. Pro-rata allotment was made to the balance.
A shareholder holding 100 shares to whome full allotment was made failed to pay allotment money. Another shareholder holding 200 shares to whome pro-rata allotment was made also failed to pay allotment money. On call, there was a further default on 300 shares. All the shares were forfeited. The first lot of shares were reissued at Rs 8 per share as fully paid up.
Pass journal entries in the books of Anand Ltd.
(a) Z Ltd. forfeited 100 shares of Rs 10 each (Rs 6 called up) issued at par to N on which he had paid Rs 2 per share. Out of these 60 shares were issued to M as Rs called up for RS 6 per share and 20 shares were reissued to S as Rs 10 called up for Rs 9 per share. Give journal entries for the forfeiture and re-issue of these shares. .
(b) Om Ltd. issued 10,000 equity shares of Rs 10 each at a premium of Rs 2 per share, payable Rs 5 on application, Rs 5 on allotment and balance on first and final call. Mukesh who had 1,000 shares could not pay allotment and call money and his shares were forfeited. Out of these, 60% share were issued to Madan @ Rs 11 per share. Give necessary journal entries regarding share forfeiture and reissue.
‘Analysis of Financial Statements’
Consider the following:
State net amount of increase in cash and cash equivalents.
State with reason whether the following would result in inflow, outflow and no flow of cash:
(i) Charging depreciation on furniture.
(ii) Cash withdrawn from bank for office use.
(a) Name the first four sub-heads under the head ‘Expenses’ in statement of profit and loss as per schedule III, Part II of the companies Act, 2013..
(b) State the meaning of financial statement analysis.
From the following data, prepare a common-size statement of profit and loss of Teak Wood Ltd:
(a) From the following information, calculate trade receivable turnover ratio:
(b) From the given information, calculate:
Gross profit ratio
Inventory turnover ratio (Rs)
Opening inventory 20,000
Revenue from operations 5,00,000
Net purchase 3,00,000
Carriage Inwards 30,00,000
Carriage outwards 15,000
Closing inventory 40,000
Prepare a cash flow statement from the following balance sheet:
Notes to accounts:
(a) Depreciation provided on tangible assets during the year was Rs 20,000.
(b) The company paid interest on long-term borrowings Rs 3,000 and received interest on investment Rs 6,000.
(c) Interim dividend paid Rs 30,000
Partner’s commission A/c Dr.
To Partner’s current A/c
(Being commission payable to partner)
Profit and loss appropriation A/c Dr.
To Partners commission A/c
(For closure of partners commission A/c)
Value : Recognition and rewarding the partner adequately for his effort.
(i) When new partner is admitted.
(ii) When a partner retires/dies.
(iii) When the existing partners so decide.
Anandi’s capital A/c Dr.
To Cash A/c
(Being realisation expenses paid by the firm on behalf of partner)
The portion of the capital which can be called up only on the liquidation of the company is called reserve capital.
(i) To make Pro-rata allotment to the remaining applicants.
(ii) Accepting some applications in full and allotting the remaining on Pro-rata basis.
(i) Super profit method.
(ii) Capitalisation super profit method.
No. of debentures issued -10,000, capital reserve – Rs 10,000.
(a) Loss on sale of investment – Rs 200
(b) The value observed by the company is environmental protection.
Partnership deed is a written agreement containing the terms and conditions agreed by the partners. The important contents of partnership deed are as follows:
(i) Capital of the partners; The amount of capital to be contributed by each partner and the manner of contribution.
(ii) Profit sharing ratio: The profit in which the profits or losses of the firm are to be share among the partners.
Share capital Rs 1,94,000.
Amount transferred to C’s legal representative – Rs 94,200.
Divisible profit transferred to capital accounts: Paras – Rs 62,125, Lokesh – Rs 62,125.
Goodwill – Rs 10,000.
Loss of realisation Aman Rs 4,000 and Harsh Rs 4,000.
Profit on revaluation Rs 1,20,000.
Loss on revaluation Rs 6,150, balance of capital accounts: Ashish – Rs 90,000, Brijesh – Rs 1,80,000, Chaman – Rs 30,000, Total of balance sheet – Rs 4,12,500.
Profit on revaluation – Rs 1,425, Angad’s loan A/c Rs 19,070, Capital balance: Kunal – Rs 21,513, Nitin – Rs 14,342, Total of balance sheet – Rs 72,268.
Amount transferred to capital reserve – Rs 600
Amount transferred to capital reserve – Rs 3,000.
Rs 12,000, Bank overdraft and cash credit to be treated as short term borrowings as per scope of syllabus.
(i) No flow of cash because it will not affect cash.
(ii) No flow of cash because this transaction is a part of cash management.
(i) Cost of material consumed
(ii) Purchases of stock-in-trade
(iii) Change in inventory
(iv) Employee benefit expenses.
(b) Financial statement analysis is a systematic process of classifying the data into simple groups and making a comparison of various groups with one another to Pin point the strong points and weakness of the business.
% change in total revenue 3.80%, other expenses 11.76%.
(a) Trade Receivables turnover ratio – 4 times
(b) Inventory turnover ratio -10.33 times.
Net cash used in operating activities – Rs (5,000)
Net cash used in investing activities – Rs (56,000)
Net cash from financing activities – Rs (55,000)
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