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 5
CBSE Sample Papers for Class 12 Accountancy Paper 5
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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 5 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 dissolution of partnership firm, there is partner’s loan existing for Rs 40,000 which is settled for Rs 39,000. What journal entry will be passed?
What does section 52(2) of Companies Act, 2013 refer to?
Sri\av\ Ltd. issued 30 ,000 shares of Rs 100 each payable Rs 20 on application, Rs 30 on allotment and balance on first and final call. A shareholder holding 200 shares did not pay the allotment money and his shares were forfeited after allotment. A shareholder holding 500 shares paid the entire sum remaining on allotment and a shareholder holding 1,000 shares did not pay the final call. Calculate the amount received on final call.
Abdul, Ram and Rachan were three partners sharing profits equally. Ram decided to retire and on the date of retirement, there was a general reserve for Rs 90,000 appearing in the books. The Accountant passed the entry in the book and credited the entire reserve to Ram’s A/c as he was a very close friend of Ram. Was the Accountant correct in doing so? Why?
Adhya, Gurjas and Reena were partners sharing profits in the ratio of 5:3:2. Gurjas retired and on that date there was accumulated profit of Rs 70,000. Partners decided not to distribute this profit to which Gurjas also agreed, forgoing his share in accumulated profits. Later, Karishma was admitted for rd share in profits which she accquired from Adhya. Pass the necessary journal entry for accumulated profits on admission of Karishma.
Onkar, Nitisha and Sheetal were partners sharing profit in the ratio of 3:1:1. They decided to admit Raman as a partner. On revaluation of assets, it was found that machinery is overvalued by 25% (Book value of machinery was Rs 6,25,000). Pass the necessary journal entries for the above.
Rahul Ltd. invited applications for 1,00,000 equity shares of Rs 10 each at a premium of 30%. Because of favourable market conditions, it was over subscribed by 1,00,000 shares. What are the alternatives avaiable to the Board of Directors for allotment of shares?
Reality Ltd. has an authorised capital of 11,000 equity shares of Rs 100 each. It issued 5,000 equity shares to public for subscription payable Rs 30 on application, Rs 30 on allotment and Rs 20 on first call and balance on final call. The whole of the issue was called for by the company and all the money was duly received except first and final call money on 500 shares and these shares were forfeited. Out of the forfeited shares, 300 shares were reissued for Rs 110 each fully paid up. Show share capital and reserves and surplus in the balance sheet of the company as per Schedule III of Companies Act, 2013 as at 31st March, 2015.
XYZ Ltd. took over assets of Rs 6,60,000 and liabilities of Rs 3,00,000 of Kaira Fabrics Company at an agreed value of Rs 4,50,000. XYZ Ltd. issued 12% Debentures of Rs 100 each at 10% discount in full satisfaction of purchase consideration. Give journal entries in the books of XYZ Ltd.
Sweera, Rishabh and Sumedha were three partners sharing profits equally. On 1st April, 2015, Sweera retired and Arushi was admitted for th share in the profits contributing a capital of Rs 2,00,000. On that date assets and liabilities of the firm were Rs 6,60,000 and Rs 3,00,000 respectively. The firm decided to denote 10% of their profits to the charitable hospitals in order to improve the medical facilities of the country. Pass the necessary journal entry for goodwill and identify the value involved.
The balance sheet of Riya, Rahim and Karan who were sharing profit in the ratio of 3 : 3 : 4 as at 31st March 2015, was as follows:
Riya died on June 30th 2015. The partnership deed provided for the following on the death of a partner:
(a) Goodwill of the firm be valued at two years’ purchase of average profits of the past three years. The average profits of the last three years were Rs 42,000.
(b) Riya’s share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2015 amounted to Rs 4,00,000 and that from 1st April to 30th June 2015 amounted to Rs 1,50,000. The profit for the year ended 31st March, 2015 was Rs 1,00,000.
(c) Interest on capital was to be provided @ 6% p.a. Prepare Riya’s capital account to be rendered to her executor.
A, B and C are partners in a firm sharing profits. In their capital ratio. On 1st April, 2014 their capital stood at Rs 5,00,000, Rs 3,00,000 and Rs 2,00,000 respectively. Partners are entitled to interest on capital @ 5% p.a., salary to B @ Rs 1,000 per month and a commission of Rs 5,000 to C as per the provisions of partnership deed. B’s share of profit, including interest on capital but excluding salary is guaranteed by A at not less than Rs 60,000 p.a. The profits of the firm for the year ended 31st March, 2015 was Rs 2,00,000. Prepare profit and loss appropriation A/c for the year ended 31st March 2015.
Complete the following journal entries related to the issue and redemption of debentures?
Pawans, Saneyra and Karan are partners in firm sharing profits in the ratio 2:2:1. Following adjustments of revaluation of assets and liabilities and goodwill is agreed upon Karan’s retirement:
(a) A provision of Rs 6,000 was to be made for an outstanding bill for repairs.
(b) To write off bad debts amounting to Rs 5,000. In the books of accounts, debtors appear at Rs 80,000 and provision for doubtful debts at Rs 2,000.
(c) A bills receivables amounting to Rs 8,000 discounted with the bank dishonoured.
(d) Insurance premium amounting to Rs 16,000 was debited to profit and loss account, of which Rs 4,000 is related to the next year.
(e) A computer appearing in the books at Rs 53,500 is found to be overvalued by 7%.
(f) Goodwill of the firm is valued at Rs 60,000. Pass the necessary journal entries for the above adjustments.
Achal and Vichal were partners in a firm. In spite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership as on 31st March, 2015. Achal was deputed to realise the assets and to pay the liabilities and bear the realisation expenses. He was paid Rs 1,000 as commission for his services. Actual expenses of dissolution paid by Achal were Rs 1,500. The financial position of the firm on 31st March, 2015 was as follows:
Following was agreed upon:
(a) Stock is overvalued by Rs 1,000, Achal took away stock at the market value and agreed to pay Mrs. Achal’s loan.
(b) Vichal took away half of the investments at 10% discount and an old typewriter which had been written off completely from the books, estimated to realise Rs 300.
(c) Creditors and bills payable due on an average basis of two month after 31st March, but they were paid immediately on 31st March, at a discount of 3% p.a.
(d) Plant was undervalued by 25% and realised at actual value, other assets realised building Rs 40,000. Debtors Rs 19,000, goodwill Rs 6,000 and remaining investment Rs 4,500. Prepare realisation account.
A and Bare partners sharing profits and losses in the ratio of 4:1. They admit C into partnership for th share for which he pays Rs 2,000 for goodwill. Balance sheet of A and B as at 31st March, 2015 was as follows:
A, B and C decide to share future profits in the ratio of 3:2:1. for this purpose, it was agreed that:
(a) C’s loan will be converted into his capital.
(b) Land and Building was to be appreciated by Rs 3,500 and stock was found overvalued by Rs 7,000.
(c) Provision for doubtful debts was to be maintained at 5% on debtors.
(d) An unaccounted accrued income of Rs 1,000 to be provided for.
(e) Capital account of the partners are readjusted on the basis of their new profit sharing ratio, taking C’s capital as base and any excess or deficiency be adjusted in cash. Prepare Revaluation account, Partners’ capital Accounts and the Balance Sheet of the new firm.
On 31st March, 2015, the Balance Sheet of Ujwal, Vani and Wasiq who were sharing profits in proportion to this capitals stood as follows:
Ujwal retires on 1st April, 2015 and it was agreed that:
(a) Land and building be appreciated by 30% and Machinery be depreciated to Rs 2,40,000.
(b) There were bad debts of Rs 17,000
(c) The claim on account of workmen’s compensations was estimated at Rs 8,000
(d) Goodwill of the firm was valued at Rs 1,40,000.
(e) Wasiq and Vani decided to share future profits in the ratio of 3:4.
(f) Capital of the new firm will be the same as before Ujwal’s retirement and will be in the new profit sharing ratio of the continuing partners.
(g) Amount due to Ujwal be settled by paying Rs 1,50,000 in cash and the balance by transferring to his loan account. Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm.
Tanishq Ltd., invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 2.50 each. The amount was payable as follows:
On application – Rs 3 per share.
On allotment – Rs 4.50 per share (including premium).
On first and final call – balance amount.
Applications for 1,70,000 shares were received. Applications for 10,000 shares were rejected and money received from them was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sum due on allotment. Seema who had applied for 2400 shares failed to pay the allotment and call money and Ruchi who was alloted 2,000 shares failed to pay the money due on call. All the shares on which money was due were forfeited. 2,400 forfeited shares were reissued @ Rs 8 per shares fully paid up, including all shares of Seema.
Pass the necessary journal entries in the books of the company for the above transactions.
Maxima Ltd invited applications for issuing 60,000 shares of Rs 10 each at a premium of Rs 2 per share. The amount was payable as follows:
On application – RS 3 per share
On allotment – Rs 5 per share (including premium)
On first and final call: Balance.
Applications were received for 92,000 shares allotment was made on following basis:
(a) To applicants for 40,000 shares: Full
(b) To applicants for 50,000 shares: 40%
(c) To applicants for 2,000 shares: Nil
Rs 1,90,000 was realised on account of allotment (excluding the amount carried from application money) and Rs 2,12,000 on account of call. The directors decided to forfeit shares of those applicants to whom full allotment was made and on which both allotment and call money was overdue. 50% of the forfeited shares were reissued as fully paid up at Rs 8 per share.
Pass the journal entries to record the above transactions in the books of the company.
‘Analysis of Financial Statements
Under which activity will you show ‘Buy-Back of shares’ while preparing cash flow statement.
Bills receivable endorsed to trade payables would result into inflow, outflow or no flow of cash. Give reason in support of your answer.
(a) Write the first four items in order of their appearance under the head expenses of statement of profit and loss as per schedule III, Part II of the Companies Act, 2013.
(b) Write all the subheads that appear under the head fixed assets in the Balance Sheet as per Schedule III, Part I of the Companies Act 2013.
(a) The quick ratio of a company is 1:5:1. State with reason which of the following transactions would increase, decrease or not change the ratio.
(i) Paid rent in advance Rs 10,000.
(ii) Trade receivables included a debtor who paid his entire amount due Rs 15,000.
(b) On the basis of the given information, calculate the following ratios:
(i) Operating ratio (ii) Acid test ratio.
Cash Revenue from Operations 4,00,000
Credit Revenue from Operations 2,00,000
Cost of Revenue from Operations 3,90,000
Employees Benefit Expenses 27,000
Current liabilities 1,95,000
Current Assets 4,13,000
Closing Inventory 23,000
From the following Balance sheet of R Ltd., prepare a comparative balance sheet.
From the following information of Jayant Ltd., Calculate cash from investing and financing activities. Also show the working notes clearly:
(a) A machinery costing Rs 40,000 (depreciation provided thereon being Rs 25,000) was sold for Rs 5,000. Depreciation charged during the year Rs 10,000.
(b) On March 31,2015,10% investments were purchased for Rs 1,80,000 and some investment sold at a profit of Rs 20,000.
(c) Real Ltd. paid dividend @ 15% on its shares.
(d) A plot of land had been purchased for investment purposes and let out for commercial use on which rent received was Rs 50,000.
Partners loan A/c Dr. 40,000
To Cash A/c 39,000
To Realisation A/c 1,000
(Being settlement of Partners loan)
Utilisation of securities Premium received on issue of securities.
Amount received on final call Rs 14,15,000
No, the accountant is not Correct. He ignored the value of being fair and honest with his work.
In case of reconstitutions the existing reserve in distributed among all the Partners in the old ratio
Profit and Loss A/c Dr. 70,000
To Adya’s Capital A/c 50.000
To Reena’s Capital A/c 20.000
(Being profit distributed)
Revaluation A/c Dr. 1,25,000
To Machinery A/c 1,25,000
(Being settlement of Partners loan)
Onkar’s Capital A/c Dr. 75,000
Nitisha’s Capital A/c Dr. 25,000
Sheetal’s Capital A/c Dr. 25,000
To Revaluation A/c 1,25,000
(Beng loss of revaluation distributed)
The board of Directors have the following options available.
(i) All excess applications can be rejected and amount refunded. Allotment to remaining applicants in full.
(ii) Pro rata allotment to remaining applicants in full.
(iii) Some applicants may be rejected and balance alloted shares on Pro rata basis.
Share capital Rs 4,92,000, Reserve and Surplus Rs 21,000.
Number of Debentures to be issued = 5,000
Rishabh’s Capital A/c Dr. 10,000
Sumedha’s Capital A/c Dr. 10,000
Arushi’s Capital A/c Dr. 60,000
To Sweera’s Capital A/c 80,000
(Being adjustment for goodwill shown during reconstitution)
Riya’s share of Profit Rs 11,250, Riya’s Share of Goodwill Rs 25,200 amount transferred to Riya’s executors A/c Rs 90,850.
Distributed Profit: A Rs 61,400, B Rs 45,000 and C Rs 26,600
Profit on Cancellation of Debentures Rs 9,000.
Loss on revaluation Rs 8,500.
Profit on Realisation Rs 31,490.
Loss on Revaluation Rs 500, Capital Balances: A Rs45,000, B Rs30,000 and C Rs15,000, Total of Balance Sheet Rs 94,000.
Loss on Revaluation Rs 7,000, Ujwal’s Loan 1,00,000 Capital Balances: Vani Rs 4,00,000 and Wasiq Rs 3,00,000. Total of Balance Sheet Rs 8,58,000.
Amount Received on allotment Rs 1,18,200 and amount transferred to Capital Reserve Rs 5,200.
Amount received on allotment Rs 1,90,000 and amount transferred to capital reserve Rs 2,000.
No flow of Cash, as there is no inflow or outflow of Cash and Cash equivalents.
(a) Cost of material consumed
Purchase of stock in trade
Change in inventories
Employee benefit expenses
(b) Tangible assets
Capital work in progress
Non current investment
(b) (i) Operating Ratio 70%,
(a) (i) Reduce, (ii) Not change
(ii)Operating Ratio 2 :1
% change in shareholders funds 18.84%, non-current assets 23.07%.
Net cash used in investing activities Rs 2,49,000.
Net cash flow from financing activities Rs 2,37,000.
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