CBSE Class 12 Accountancy 2019 — Set 67/1/1

Mevo Ltd., a financial enterprise had advanced a loan of ₹ 3,00,000, invested ₹ 6,00,000 in shares of the other companies and purchased machinery for ₹ 9,00,000. It received dividend of ₹ 70,000 on investment in shares. The company sold an old machine of the book value of ₹ 79,000 at a loss of ₹ 10,000. Compute Cash flows from Investing Activities.

Give the meaning of 'Cash Equivalents' for the purpose of preparing Cash Flow Statement.

The capital of the firm of Anuj and Benu is ₹ 10,00,000 and the market rate of interest is 15%. Annual salary to the partners is ₹ 60,000 each. The profit for the last three years were ₹ 3,00,000, ₹ 3,60,000 and ₹ 4,20,000. Goodwill of the firm is to be valued on the basis of two years purchase of last three years average super profits. Calculate the goodwill of the firm.

Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of ₹ 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures. Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants. Pass the necessary journal entries for the above transactions in the books of Garvit Ltd. OR On 1st April 2015, P Ltd. Issued 6,000 12% Debentures of ₹ 100 each at par redeemable at a premium of 7%. The Debentures were to be redeemed at the end of third year. Prepare Loss on issue of 12% Debentures Account.

Ankit, Bobby and Kartik were partners in a firm sharing profits in the ratio 4 : 3 : 3. The firm was dissolved on 31-3-2018. Pass the necessary Journal entries for the following transactions after various assets (other than cash and bank) and third party liabilities had been transferred to Realisation Account : (i) The firm had stock of ₹ 80,000. Ankit took over 50% of the stock at a discount of 20% while the remaining stock was sold off at a profit of 30% on cost. (ii) A liability under a suit for damages included in creditors was settled at ₹ 32,000 as against only ₹ 13,000 provided in the books. Total creditors of the firm were ₹ 50,000. (iii) Bobby's sister's loan of ₹ 20,000 was paid off along with interest of ₹ 2,000. (iv) Kartik's Loan of ₹ 12,000 was settled at ₹ 12,500.

Radhika, Bani and Chitra were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 1. With effect from 1st April, 2018 they decided to share future profits and losses in the ratio of 3 : 2 : 1. On that date their Balance Sheet showed a debit balance of ₹ 24,000 in Profit and Loss Account and a balance of ₹ 1,44,000 in General Reserve. It was also agreed that : (a) The goodwill of the firm be valued at ₹ 1,80,000. (b) The Land (having book value of ₹ 3,00,000) will be valued at ₹ 4,80,000. Pass the necessary journal entries for the above changes.

Explain briefly any four objectives of 'Analysis of Financial Statements'. OR State under which major headings and sub-headings will the following items be presented in the Balance Sheet of a company as per Schedule-III, Part-I of the Companies Act, 2013. (i) Prepaid Insurance (ii) Investment in Debentures (iii) Calls-in-arrears (iv) Unpaid dividend (v) Capital Reserve (vi) Loose Tools (vii) Capital work-in-progress (viii) Patents being developed by the company.

(a) Calculate Revenue from operations of BN Ltd. From the following information : Current assets ₹ 8,00,000. Quick ratio is 1.5 : 1 Current ratio is 2 : 1. Inventory turnover ratio is 6 times. Goods were sold at a profit of 25% on cost. (b) The Operating ratio of a company is 60%. State whether 'Purchase of goods costing ₹ 20,000' will increase, decrease or not change the operating ratio. OR (a) Calculate 'Total Assets to Debt ratio' from the following information : | Particulars | ₹ | | --- | --- | | Equity Share Capital | 4,00,000 | | Long Term Borrowings | 1,80,000 | | Surplus i.e. Balance in statement of Profit and Loss | 1,00,000 | | General Reserve | 70,000 | | Current Liabilities | 30,000 | | Long Term Provisions | 1,20,000 | (b) The Debt Equity ratio of a company is 1 : 2. State whether 'Issue of bonus shares' will increase, decrease or not change the Debt Equity Ratio.

Giriija, Yatin and Zubin were partners sharing profits in the ratio 5 : 3 : 2. Zubin died on 1st August, 2015. Amount due to Zubin's executor after all adjustments was ₹ 90,300. The executor was paid ₹ 10,300 in cash immediately and the balance in two equal annual instalments with interest @ 6% p.a. starting from 31st March, 2017. Accounts are closed on 31st March each year. Prepare Zubin's Executors Account till he is finally paid.

Sonu and Rajat started a partnership firm on April 1, 2017. They contributed ₹ 8,00,000 and ₹ 6,00,000 respectively as their capitals and decided to share profits and losses in the ratio of 3 : 2. The partnership deed provided that Sonu was to be paid a salary of ₹ 20,000 per month and Rajat a commission of 5% on turnover. It also provided that interest on capital be allowed @ 8% p.a. Sonu withdrew ₹ 20,000 on 1st December, 2017 and Rajat withdrew ₹ 5,000 at the end of each month. Interest on drawings was charged @ 6% p.a. The net profit as per Profit and Loss Account for the year ended 31st March, 2018 was ₹ 4,89,950. The turnover of the firm for the year ended 31st March, 2018 amounted to ₹ 20,00,000. Pass necessary journal entries for the above transactions in the books of Sonu and Rajat. OR Jay, Vijay and Karan were partners of an architect firm sharing profits in the ratio of 2 : 2 : 1. Their partnership deed provided the following : (i) A monthly salary of ₹ 15,000 each to Jay and Vijay. (ii) Karan was guaranteed a profit of ₹ 5,00,000 and Jay guaranteed that he will earn an annual fee of ₹ 2,00,000. Any deficiency arising because of guarantee to Karan will be borne by Jay and Vijay in the ratio of 3 : 2. During the year ended 31st March, 2018 Jay earned fee of ₹ 1,75,000 and the profits of the firm amounted to ₹ 15,00,000. Showing your workings clearly prepare Profit and Loss Appropriation Account and the Capital Account of Jay, Vijay and Karan for the year ended 31st March, 2018.

From the following Balance Sheet of Kiero Ltd. and the additional information as on 31-3-2018, prepare a Cash Flow Statement : Kiero Ltd. Balance Sheet as at 31-3-2018 | Particulars | Note No. | 31-3-18 (₹) | 31-3-17 (₹) | | --- | --- | --- | --- | | I. Equity and Liabilities | | | | | (1) Shareholders Funds | | | | | (a) Share Capital | | 7,90,000 | 5,80,000 | | (b) Reserves and Surplus | 1 | 4,60,000 | 1,20,000 | | (2) Non-Current Liabilities | | | | | Long term Borrowings | 2 | 5,00,000 | 3,00,000 | | (3) Current Liabilities | | | | | (a) Short term borrowings | 3 | 1,15,000 | 42,000 | | (b) Short term Provisions | 4 | 1,18,000 | 46,000 | | Total | | 19,83,000 | 10,88,000 | | II. Assets | | | | | (1) Non-Current Assets | | | | | Fixed Assets | | | | | (i) Tangible Assets | 5 | 9,80,000 | 6,35,000 | | (ii) Intangible Assets | 6 | 2,68,000 | 1,70,000 | | (2) Current Assets | | | | | (a) Current Investments | | 1,40,000 | 70,000 | | (b) Trade Receivables | | 4,40,000 | 1,50,000 | | (c) Cash and Cash Equivalents | | 1,55,000 | 63,000 | | Total | | 19,83,000 | 10,88,000 | Notes to Accounts | Note No. | Particulars | 31-3-18 (₹) | 31-3-17 (₹) | | --- | --- | --- | --- | | 1. | Reserves and Surplus | | | | | Surplus(Balance in Statement of Profit Loss) | 3,20,000 | 60,000 | | | General Reserve | 1,40,000 | 60,000 | | | | 4,60,000 | 1,20,000 | | 2. | Long-term Borrowings | | | | | 12% Debentures | 5,00,000 | 3,00,000 | | | | 5,00,000 | 3,00,000 | | 3. | Short-term Borrowings | | | | | Bank Overdraft | 1,15,000 | 42,000 | | | | 1,15,000 | 42,000 | | 4. | Short-term Provisions | | | | | Provision for Tax | 1,18,000 | 46,000 | | | | 1,18,000 | 46,000 | | 5. | Tangible Assets | | | | | Plant and Machinery | 11,00,000 | 7,50,000 | | | Less : Accumulated Depreciation | (1,20,000) | (1,15,000) | | | | 9,80,000 | 6,35,000 | | 6. | Intangible Assets | | | | | Goodwill | 2,68,000 | 1,70,000 | | | | 2,68,000 | 1,70,000 | Additional Information : 12% debentures were issued on 1st September, 2017.

DF Ltd. invited applications for issuing 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows : On Application : ₹ 3 per share (including premium ₹ 1) On Allotment : ₹ 3 per share (including premium ₹ 1) On First call : ₹ 3 per share On Second and Final Call : Balance amount Application for 70,000 shares were received. Allotment was made on the following basis. Applications for 5,000 shares – Full Applications for 50,000 shares – 90% Balance of the applications were rejected. ₹ 1,11,000 were received on account of allotment. The amount of allotment due from the shareholders to whom shares were allotted on prorata basis was fully received. A few shareholders to whom shares were allotted in full, failed to pay the allotment money. ₹ 1,20,000 were received on first call. Directors decided to forfeit those shares on which allotment and call money was due. Half of the forfeited shares were re-issued @ ₹ 8 per share fully paid up. Final call was not made. Pass the necessary journal entries for the above transactions in the book of DF Ltd. OR EF Ltd. invited applications for issuing 80,000 equity shares of ₹ 50 each at a premium of 20%. The amount was payable as follows : On Application : ₹ 20 per share (including premium ₹ 5) On Allotment: ₹ 15 per share (including premium ₹ 5) On First Call : ₹ 15 per share On Second and Final call : Balance amount Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Seema, holding 4,000 shares failed to pay the allotment money. Afterwards the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj's shares were forfeited and subsequently reissued to Geeta for ₹ 60 per share, ₹ 50 per share paid up. Final call was not made. Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening calls-in-arrears account.

Akul, Bakul and Chandan were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2018 their Balance Sheet was as follows : Balance Sheet of Akul, Bakul and Chandan as on 31-3-2018 | Liabilities | Amount (₹) | Assets | Amount (₹) | | --- | --- | --- | --- | | Sundry Creditors | 45,000 | Cash at Bank | 42,000 | | Employees Provident Fund | 13,000 | Debtors 60,000 | | | General reserve | 20,000 | Less : Provision for doubtful debts 2,000 | 58,000 | | Capitals : | | Stock | 80,000 | | Akul 1,60,000 | | Furniture | 90,000 | | Bakul 1,20,000 | | Plant and Machinery | 1,80,000 | | Chandan 92,000 | 3,72,000 | | | | | 4,50,000 | | 4,50,000 | Bakul retired on the above date and it was agreed that : (i) Plant and Machinery was undervalued by 10%. (ii) Provision for doubtful debts was to be increased to 15% on debtors. (iii) Furniture was to be decreased to ₹ 87,000. (iv) Goodwill of the firm was valued at ₹ 3,00,000 and Bakul's share was to be adjusted through the capital accounts of Akul and Chandan. (v) Capital of the new firm was to be in the new profit sharing ratio of the continuing partners. Prepare Revaluation account, Partners' Capital accounts and the Balance Sheet of the reconstituted firm. OR Sanjana and Alok were partners in a firm sharing profits and losses in the ratio 3 : 2. On 31st March, 2018 their Balance Sheet was as follows : Balance Sheet of Sanjana and Alok as on 31-3-2018 | Liabilities | Amount (₹) | Assets | Amount (₹) | | --- | --- | --- | --- | | Creditors | 60,000 | Cash | 1,66,000 | | Workmen's Compensation Fund | 60,000 | Debtors 1,46,000 | | | Capitals : | | Less : Provision for doubtful debts 2,000 | 1,44,000 | | Sanjana 5,00,000 | | Stock | 1,50,000 | | Alok 4,00,000 | 9,00,000 | Investments | 2,60,000 | | | | Furniture | 3,00,000 | | | 10,20,000 | | 10,20,000 | On 1st April, 2018, they admitted Nidhi as a new partner for 1/4th share in the profits on the following terms : (a) Goodwill of the firm was valued at ₹ 4,00,000 and Nidhi brought the necessary amount in cash for her share of goodwill premium, half of which was withdrawn by the old partners. (b) Stock was to be increased by 20% and furniture was to be reduced to 90%. (c) Investments were to be valued at ₹ 3,00,000. Alok took over investments at this value. (d) Nidhi brought ₹ 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the new profit sharing ratio. Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm on Nidhi's admission.