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 4
CBSE Sample Papers for Class 12 Accountancy Paper 4
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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 4 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
At the time of reconstitution of a partnership firm, if partners decided to retain assets and liabilities at their existing values and not at the revalued amounts, how will they record the adjustment in such a situation?
X, Y and Z are partners in a firm. Z advances a loan of Rs 50,000 to the firm on 1st Dec. 2014. On 31st March, 2015 the firm incurs a loss of Rs 62,000 before charging interest. What amount of profit or loss will be transferred to partners?
At the time of dissolution of the partnership firm, realisation expenses amounted to Rs 2,400 paid by Richa, a partner, who was to bear these expenses. What entry is required in the book of the firm?
A company pays a fixed rate of Interest on Debentures issued for cash to the public. At what rate, will the interest be payable on debentures issued as collatral security?
At the time of retirement of a partner, a Bill of Exchange for Rs 5,000 which was previously discounted with the banker was dishonored as the Drawee had become insolvent and nothing could be realised from his estate. The accountant seeks your advice on its treatment.
A company purchases land in rural area and decides to employ the local people for its manufacturing unit. State the value highlighted by the company.
Kaushal Ltd. issued 50,000 fully paid equity shares of Rs 100 each towards consideration for purchase of machinery from Kamal Ltd. Show disclosure of issue of shares in the balance sheet of the company.
Reena, Richa and Rhea are partners sharing profits and losses in the ratio 1:2:3. Richa retires and decides to devote her time in looking after specially abled people. On her retirement. Goodwill entry made in the Books is:
The value of goodwill is Rs 90,000. What is the new profit sharing ratio? What values are highlighted here by Richa?
Aradhana Ltd. issued 50,000 equity shares of Rs 10 each payable Rs 4 on application and allotment, Rs 3 on first call and Rs 3 on second and final call.
All shares were subscribed for by the public and duly allotted.
When the first call was made, one shareholder holding 250 shares failed to pay the call money whereas, another shareholder holding 1,200 shares paid the entire balance along with the first call. The company maintains calls-in-arrears and calls-in-advance A/c.
Pass necessary journal entries for both the calls.
K. Ltd. purchased for cancellation of 2,000 of its own 10% debentures of Rs 200 each @ Rs 190 per debenture. The Board of directors, has decided to transfer the required amount to debenture redemption reserve accounts. Journalise the transactions in the books of K Ltd.
M, N and O are partners sharing profits in the ratio of 4 : 3 : 2 respectively. O retired on 31st March, 2015. After all necessary adjustments the capitals of the partners stood at Rs 54,900; Rs 47,300 and Rs 32,600 respectively. The cash and Bank balance of the firm amounted to Rs 13,000 on this date.
Partners decided to pay 75% of the balance due to O on his retirement through cash and the balance to be treated as loan to be paid after a year along with interest @6%. They further decided that the amount payable to O will be brought in by M and N in such a manner to make their capitals in proportion to their profit sharing ratio which will be equal after O’s retirement.
Calculate the amount of cash to be brought in by M and N assuming that they wish to maintain a minimum of Rs 10,000 as their cash and bank balance. Also calculate the amount payable to O after one year.
Anju, Manju and Vinita are partners of a firm. Their capitals as on 1st April, 2014 were Rs 90,000; Rs 70,000 and Rs 50,000 respectively. Manju gave a loan of Rs 30,000 to the firm on 1st July, 2014. Partnership deed states that partners are entitled to:
(a) Interest on capital @ 10% p.a.
(b) Each partner has a right to withdraw upto Rs 60,000 p.a. for personal use. Drawings in excess of the above limit will be charged interest @ 12% p.a.
(c) Firm will pay interest on loan @ 12% p.a.
(d) Vinita will get a commission of 5% of the net profit.
During the year 2014-15; firm earned a profit of Rs 54,000. Partners’ drawings were Rs 12,000; Rs 8,000 and Rs 5,000 respectively.
Prepare profit and loss Appropriation Account
(a) Goodwill is to be valued at two years’ purchase of the average profit of the past four years.
(b) Bhavna and Brijesh are partners sharing profits in the ratio 2:1. They admit Gunjan for th share of profit with a minimum guaranteed amount of Rs 20,000. Any deficit will be borne equally. The profits earned by the firm at the end of the financial year amounted to RS 64,000. Pass necessary journal entries for the above.
In 1st April, 2011, Khanak Ltd. issued 10,000; 10% debentures of Rs 100 each at 95% and redeemable at premium of 10% after 5 years and offered the holders an option to convert their holdings into equity shares of Rs 10 each at a premium of 25% after 31st March, 2016, 25% of the holders exercised their option.
Give necessary journal entries both at the time of issue and at the time of conversion.
A, B and C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2005 their balance sheet was as under:
C died on 1st October 2005. It was agreed between his executors and the remaining partners .. that:
(a) Goodwill to be valued at 2 years’ purchase of the average profits of the previous five years, which were 2001: Rs 15,000,2002: Rs 13,000,2003: Rs 12,000,2004: Rs 15,000 and 2005: Rs 20,000.
(b) Patents be valued at Rs 8,000, machinery at Rs 28,000 and buildings at Rs 30,000.
(c) Profit for the year 2005-06 be taken as having accrued at the same rate as that of the previous year.
(d) Interest on capital be provided at 10% p.a.
(e) A sum of Rs 7,750 was paid to his executors immediately.
Prepare C’s capital account and his executors’ account at the time of his death.
Sharma, Verma and Gupta were partners sharing profits and losses in the ratio of 5 : 3 : 2.
On 31st March, 2015, they decided to dissolve the firm. The following transactions took place at the time of dissolution:
(i) Sharma agreed to pay off his wife’s loan and took 30% of the investments @20% discount.
(ii) Debtors realised 90% of their book value, out of which 10% of the proceeds had to be paid to the debt collection agency.
(iii) Bank loan was repaid along with interest for 9 months.
(iv) There was an unrecorded asset worth Rs 8,000 which was taken over at Rs 6,000 by one of the creditors in part satisfaction of his claim. Other creditors were settled in full.
Complete the realisation account, partners’ capital account and bank account given below.
A and B are partners in a firm sharing profits in the ratio of 4 :1. The balance sheet of the firm as on 31st March, 2015 stood as follows:
They decide to admit C into partnership for share which he acquires from A and B in the ratio of 2:1. Goodwill of the firm is valued at Rs 90,000 and (contributes his share in cash).
Complete the following accounts and balance sheet by filling in the missing information.
Rajesh Ltd. invited applications for 1,00,000 equity shares of Rs 10 each issued at 20% premium per share. The amount were payable as follows:
On Application – Rs 4
On allotment – Rs 5 per share (including premium)
On first and final call – Rs 3 per share.
Applications for 2,30,000 shares were received, allotment was made as under:
Excess application money to be adjusted against allotment and remaining excess money, if any, to be refunded.
All money were duly received except:
(a) Rajan to whome 500 shares were allotted in the group applying for 1,50,000 shares did not pay any amount after application.
(b) Roshan, who applied for 1,200 shares from the group applying for 60,000 shares failed to pay the first and final call.
All shares on which payments were overdue were forfeited after the final call was made. 50% of the forfeited shares were re-issued @ Rs 9 per share fully paid.
Pass necessary journal entries for the above transaction in the books of Rajesh Limited.
Raghav Ltd. issued a prospectus inviting applications for 50,000 equity shares of Rs 10 each at premium of Rs 4 per share payable as follows:
On application – Rs 5 (including premium Rs 2)
On allotment – RS 5 (including premium Rs 2)
On first and final call – Rs 4
Applications were received for 90,000 shares and prorata allotment was made to applicants of 75,000 shares, the remaining applications being rejected.
It was decided to utilise the excess applications money towards sums due on allotment.
Ritu who applied for 1,800 shares, failed to pay the allotment money due and her shares were forfeited immediately after allotment.
Manju who was allotted 1,200 shares failed to pay the call money and subsequently her shares were forfeited.
The directors decided to reissue 50% of forfeited shares held by Ritu for Rs 12 per share and 50% of forfeited shares held by Manju for Rs 9 per share.
Pass necessary journal entries in the books of the company for the above transaction.
‘Analysis of Financial Statements’
A company purchased machinery worth 1 crore on hire purchases basis. The accountant seeks your advice in accounting for the:
(i) Payment of installment and
(ii) Interest under operating, investing and financing activities in the preparation of the cash flow statement.
How will you record increase in provision for doubtful debts while preparing cash flow statement?
How would you show following items in the balance sheet of a company as at 31st March, 2015:
(i) Book value of a machine as on 31st March, 2014 Rs 9,90,000.
(ii) Accumulated depreciation charged up to 31st March, 2014 Rs 1,10,000.
(iii) Rate of depreciation @ 5% p.a. on straight line method.
(iv) Machine was bought on 1st April, 2012.
Calculate ‘Return on Investment’ and ‘Debt to equity ratio’ from the undermentioned information:
Net profit after interest and tax Rs 12,00,000
10% debentures Rs 20,00,000
Tax rate 40%
Capital employed Rs 1,60,00,000
(a) Current ratio of a company is 3 : 1. State giving reasons, which of the following would improve, reduce or not change the ratio?
(i) Issue of bonus shares out of profits;
(ii) Redemption of preference shares out of proceeds from fresh issue of shares of equal amount;
(iii) Purchase of computer on credit for two months and
(iv) Revenue from operations, i.e., sale of goods for Rs 80,000 on credit of 1 month. Cost of goods Rs 60,000.
(b) Calculate cost of revenue from operations, i.e., cost of goods sold from the undermentioned information:
Sales: Rs 6,00,000; Sales return Rs 40,000; Operating expenses Rs 91,000; Operating ratio: 92%.
From the following information of Ramesh Ltd., prepare cash flow statement.
Balance sheet of Ramesh Ltd. as at 31st March 2015 and 2014
(a) Investments costing Rs 24,000 were sold for Rs 18,000.
(b) Depreciation on machinery Rs 48,000.
(c) Tax paid Rs 48,000.
(d) Debentures are issued and investments are purchased and sold on March 31st 2015.
At the time of reconstitution of a partnership firm. If partners decide to retain assets and liabilities at their existing values and not at the revalued amounts, the adjustment is made through a single adjustment entry through Capital accounts or Current accounts by debiting the gaining partners and crediting the sacrificing partners.
Interest on loan payable to Z Rs 1,000 and total loss of Rs 63,000 to be borne by all partners equally.
No entry is required, as the expenses are to be borne by the partner.
The holder of debentures as collateral security is not entitled to receive any interest on such debentures. However in the event of the company’s failure of meeting its obligation of repayment of loan amount, the holder of such debentures may exercise his right to claim interest from the company on such debentures held by him.
The discounted bill of exchange which is dishonored, is a liability that will have to be met by the firm. This amount will be debited to revaluation account at the time of retirement of a partner.
Value: The company plans to promote equitable and balanced development of the country.
Issued share capital Rs 50,00,000.
New ratio of Reena and Rhea is 2 :1 and values by serving at the specially abled home Richa shows her caring attitude towards the under privileged people in our society.
Calls in arrear on first call Rs 750, calls in advance Rs 3,600.
Gain on cancellation of own debentures – Rs 20,000.
Cash to be brought in by M – Rs 6,925 and by N – Rs 14,525.
Profit transferred in each partners capital account – Rs 9,200.
(a) Goodwill – Rs 1,76,500,
(b) Deficiency of Rs 4,000 will be bom by partner equally.
Number of equity shares issued – 22,000.
Gaining ratio = 5:3, amount due to executors Rs 27,750)
Loss on realisa tion to Sharma Rs 17,750, Verma -Rs 10,650 and Gupta Rs 7,100, Total of Bank Account- Rs 5,12,350.
Profit on revaluation – Rs 6,000, Capital balance: A – Rs 2,75,800, B – Rs 99,200 and C – Rs 1,00,000, total of balance sheet – Rs 5,56,000.
Amount received on allotment – Rs 2,10,000 and amount transferred to capital reserve – Rs 4,500.
Amount received on allotment – Rs 1,22,000, and amount transferred to capital reserve – Rs 6,300.
(i) The payment of instalment for the purchase of machinery is categorised under investing activity.
(ii) Interest paid on instalments is categorised under financing activity.
Provision for doubtful debts will be added to operating activities while preparing cash flow statement.
Machinery will be shown under the head of fixed assets in assets side of balance sheet at Rs 9,35,000.
Return on investment – 13.75%.
(i) No change,
(ii) No change,
(v) Rs 4,24,200
Net cash flow from operating activities – Rs 28,000.
Net cash used in investing activities – Rs 1,65,600.
Net cash flow from financing activities – Rs 1,45,600.
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