CBSE Class 12 Accountancy 2020 — Set 67/1/1

A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. C retired and his capital balance after adjustments regarding reserves, accumulated profits/losses and his share of gain on revaluation was ₹ 2,50,000. C was paid ₹ 3,22,000 including his share of goodwill. The amount credited to C's capital account, on his retirement, for goodwill will be : (A) ₹ 72,000 (B) ₹ 7,200 (C) ₹ 24,000 (D) ₹ 36,000

Rahul, Sahil and Jatin were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Rahul died on 15th October, 2017. At that time, the capitals of Sahil and Jatin after all the adjustments were ₹ 3,56,000 and ₹ 2,44,000 respectively. Sahil and Jatin decided to adjust their capital according to their new profit sharing ratio by opening current accounts. Calculate the new capitals of Sahil and Jatin.

Sun and Star were partners in a firm sharing profits in the ratio of 2 : 1. Moon was admitted as a new partner in the firm. New profit sharing ratio was 3 : 3 : 2. Moon brought the following assets towards his share of goodwill and his capital : Machinery | ₹ 2,00,000 Furniture | ₹ 1,20,000 Stock | ₹ 80,000 Cash | ₹ 50,000 If his capital is considered as ₹ 3,80,000, the goodwill of the firm will be : (A) ₹ 70,000 (B) ₹ 2,80,000 (C) ₹ 4,50,000 (D) ₹ 1,40,000

Rohan, Mohan and Sohan were partners sharing profits equally. At the time of dissolution of the partnership firm, Rohan's loan to the firm will be : (A) Credited to Rohan's Capital Account. (B) Debited to Realisation Account. (C) Credited to Realisation Account. (D) Credited to Bank Account.

Excess of issue price of a debenture over its face value is called _____ .

Which of the following statements does not relate to 'Reserve Capital' : (A) It is part of uncalled capital of a company. (B) It cannot be used during the lifetime of a company. (C) It can be used for writing off capital losses. (D) It is part of subscribed capital.

Name an item which is transferred to credit side of Realisation Account at the time of dissolution of partnership firm, but does not involve cash payment.

State any one limitation of Financial Statement Analysis.

State the impact of 'Bills Receivable discounted dishonoured on due date' on the liquid ratio of 0·75 : 1. Also give reason in support of your answer.

State whether the following statement is true or false. 'Inventory Turnover Ratio measures the level of financial leverage.'

The total debtors of X Ltd. were ₹ 9,00,000. It had created a provision of 10% for bad and doubtful debts. What amount of debtors will be used for calculating the 'Trade Receivables Turnover Ratio' ?

Give an example of an activity which is always financing with regards to the Cash Flow Statement.

On 1.10.2018, Micro Ltd. issued 20,000, 8% debentures of ₹ 100 each and paid interest of ₹ 80,000 on these debentures on 31st March, 2019. Calculate the cash flow from financing activities for the period ending 31st March, 2019.

An investment normally qualifies as cash-equivalent only when from the date of acquisition it has a short maturity period of : (A) One month or less (B) Three months or less (C) Three months or more (D) One year or less

Calculate the 'Total Assets to Debt Ratio' from the following information : | Particulars | ₹ | | --- | --- | | Current Assets | 11,00,000 | | Working Capital | 6,50,000 | | Shareholder's Fund | 7,50,000 | | Total Debt | 19,50,000 | | Reserves and Surplus | 2,50,000 | OR Under which major head/sub-head 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) Computer software (ii) Calls-in-advance (iii) Outstanding salary (iv) Securities Premium Reserve (v) Patents (vi) Interest accrued on Investment

Ram, Mohan and Sohan were partners sharing profits in the ratio of 2 : 1 : 1. Ram withdrew ₹ 3,000 every month and Mohan withdrew ₹ 4,000 every month. Interest on drawings @ 6% p.a. was charged, whereas the partnership deed was silent about interest on drawings. Showing your working clearly, pass the necessary adjustment entry to rectify the error. OR Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4 : 3 : 3. Their fixed capitals on 1st April, 2018 were ₹ 9,00,000, ₹ 5,00,000 and ₹ 4,00,000 respectively. On 1st November, 2018, Yadu gave a loan of ₹ 80,000 to the firm. As per the partnership agreement : (i) The partners were entitled to an interest on capital @ 6% p.a. (ii) Interest on partners' drawings was to be charged @ 8% p.a. The firm earned profits of ₹ 2,53,000 (after interest on Yadu's loan) during the year 2018 – 19. Partners' drawings for the year amounted to Yadu : ₹ 80,000, Vidu : ₹ 70,000 and Radhu : ₹ 50,000. Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2019.

Furkan, Tanmay and Barkat were partners in a firm sharing profits in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. Tanmay died on 31st July, 2019. His executor was entitled to : (i) His capital ₹ 8,00,000 and his share of goodwill which was valued for the firm at ₹ 96,000. (ii) His share of profit as per partnership agreement, which was to be calculated on the basis of average profit of last 3 years. Average profits of the last 3 years were ₹ 78,000. (iii) Tanmay's executors were paid ₹ 95,000 by cheque at the time of his death and the balance was transferred to his executor's loan account. Pass the necessary journal entries in the books of the firm, on Tanmay's death, for the above transactions.

Raunit Styles Ltd. was registered with a capital of ₹ 85,00,000 divided into equity shares of ₹ 100 each. The company invited applications for issuing 45,000 shares. The amount was payable as ₹ 25 on application, ₹ 35 on allotment, ₹ 25 on first call and balance on final call. Applications were received for 42,000 shares and allotment was made to all the applicants. Kavi, to whom 3,300 shares were alloted, failed to pay both the calls. His shares were forfeited. Present the Share Capital in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013.

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tony and Rony after the various assets (other than cash) and external liabilities have been transferred to Realization Account : (i) An unrecorded asset of ₹ 2,000 and cash ₹ 3,000 was paid for liability of ₹ 6,000 in full settlement. (ii) 100 shares of ₹ 10 each have been taken over by partners at market value of ₹ 20 per share in their profit sharing ratio, which is 3 : 2. (iii) Stock of ₹ 30,000 was taken over by a creditor of ₹ 40,000 at a discount of 30% in full settlement. (iv) Expenses of realisation ₹ 4,000 were to be borne by Rony. Rony used the firm's cash for paying these expenses.

(i) Vayee Ltd. purchased the following assets of E.X. Ltd. : Land and Building of ₹ 60,00,000 at ₹ 84,00,000; Plant and Machinery of ₹ 40,00,000 at ₹ 36,00,000. The purchase consideration was ₹ 1,10,00,000. Payment was made by accepting a Bill of Exchange in favour of E.X. Ltd. of ₹ 20,00,000 and remaining by issue of 8% debentures of ₹ 100 each at a premium of 20%. Record the necessary journal entries for the above transactions in the books of Vayee Ltd. (ii) Zed Ltd. issued 2,00,000, 8% debentures of ₹ 100 each at a discount of 6% redeemable at a premium of 10% after 5 years. The amount was payable as follows : On application – ₹ 50 per debenture and On allotment – balance Record the necessary journal entries for the issue of debentures in the books of Zed Ltd. OR Mahesh Ltd. had issued 20,000, 10% debentures of ₹ 100 each. 8,000, 10% debentures were due for redemption on 31st March, 2019. The company had a balance of ₹ 4,40,000 in the Debenture Redemption Reserve Account on 31st March, 2018. The company invested the required amount in the Debenture Redemption Investment on 1st April, 2018. Pass the necessary journal entries for redemption of debentures. Ignore the entries for interest on debentures.

(i) From the following information of Nova Ltd., calculate the cash flow from investing activities : | Particulars | 31.3.2019 ₹ | 31.3.2018 ₹ | | --- | --- | --- | | Machinery (At cost) | 5,00,000 | 3,00,000 | | Accumulated Depreciation on machinery | 1,00,000 | 80,000 | | Goodwill | 1,50,000 | 1,00,000 | | Land | 70,000 | 1,00,000 | Additional Information : During the year, a machine costing ₹ 50,000 on which the accumulated depreciation was ₹ 35,000, was sold for ₹ 12,000. (ii) The profit of Jova Ltd. for the year ended 31st March, 2019 after appropriation was ₹ 2,50,000. Additional Information : | S.No. | Particulars | Amount ₹ | | --- | --- | --- | | 1. | Depreciation of Machinery | 20,000 | | 2. | Goodwill written off | 9,000 | | 3. | Loss on sale of Furniture | 2,000 | | 4. | Transfer to General Reserve | 22,500 | The following was the position of its Current Assets and Current Liabilities as at 31st March, 2018 and 2019. | Particulars | 31.3.2018 ₹ | 31.3.2019 ₹ | | --- | --- | --- | | Income Received in Advance | 8,000 | — | | Inventory | 12,000 | 8,000 | Calculate the Cash flow from operating activities.

Badal and Bijli were partners in a firm sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2019 was as follows : Balance Sheet of Badal and Bijli as at 31st March, 2019 | Liabilities | Amount ₹ | Assets | Amount ₹ | | --- | --- | --- | --- | | Capitals : | | Building | 1,50,000 | | Badal 1,50,000 | | Investments | 73,000 | | Bijli 90,000 | 2,40,000 | Stock | 43,000 | | Badal's Current A/c | 12,000 | Debtors | 20,000 | | Investment Fluctuation Reserve | 24,000 | Cash | 22,000 | | Bills Payable | 8,000 | Bijli's Current A/c | 2,000 | | Creditors | 26,000 | | | | | 3,10,000 | | 3,10,000 | Raina was admitted on the above date as a new partner for 1/6th share in the profits of the firm. The terms of agreement were as follows : (i) Raina will bring ₹ 40,000 as her capital and capitals of Badal and Bijli will be adjusted on the basis of Raina's capital by opening current accounts. (ii) Raina will bring her share of goodwill premium for ₹ 12,000 in cash. (iii) The building was overvalued by ₹ 15,000 and stock by ₹ 3,000. (iv) A provision of 10% was to be created on debtors for bad debts. Prepare the Revaluation Account and Current and Capital Accounts of Badal, Bijli and Raina. OR Prem, Kumar and Aarti were partners sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2019 was as under : Balance Sheet of Prem, Kumar and Aarti as at 31st March, 2019 | Liabilities | Amount ₹ | Assets | Amount ₹ | | --- | --- | --- | --- | | Capitals : | | Building | 25,000 | | Prem 30,000 | | Plant and Machinery | 15,000 | | Kumar 20,000 | | Investment | 10,000 | | Aarti 20,000 | 70,000 | Debtors | 10,000 | | General Reserve | 8,000 | Stock | 5,000 | | Investment Fluctuation Reserve | 2,000 | Cash | 25,000 | | Sundry Creditors | 10,000 | | | | | 90,000 | | 90,000 | On the above date, Kumar retired. The terms of retirement were : (i) Kumar sold his share of goodwill to Prem for ₹ 8,000 and to Aarti for ₹ 4,000. (ii) Stock was found to be undervalued by ₹ 1,000 and building by ₹ 7,000. (iii) Investments were sold for ₹ 11,000. (iv) There was an unrecorded creditor of ₹ 7,000. (v) An amount of ₹ 30,000 was paid to Kumar in cash which was contributed by Prem and Aarti in the ratio of 2 : 1. The balance amount of Kumar was settled by accepting a Bill of Exchange in favour of Kumar. Prepare the Revaluation Account, Capital Accounts of partners and the Balance Sheet of the reconstituted firm.

(i) R.P. Ltd. forfeited 1,500 shares of Rahim of ₹ 10 each issued at a premium of ₹ 3 per share for non-payment of allotment and first call money. Rahim had applied for 3,000 shares. On these shares, amount was payable as follows : On application – ₹ 3 per share On allotment (including premium) – ₹ 5 per share On first call – ₹ 3 per share On final call – Balance Final call has not been called up. 1,000 of the forfeited shares were reissued for ₹ 8,500 as fully paid-up. Record the necessary journal entries for the above transactions in the books of R.P. Ltd. (ii) Max Ltd. forfeited 500 shares of ₹ 100 each for non-payment of first call of ₹ 20 per share and final call of ₹ 25 per share. 250 of these shares were re-issued at ₹ 50 per share fully paid-up. Pass the necessary journal entries in the books of Max Ltd. for forfeiture and re-issue of shares. Also prepare the Share Forfeiture Account. OR Karur Ltd. invited applications for issuing 2,40,000 equity shares of ₹ 10 each at a premium of ₹ 4 per share. The amount was payable as under : On application – ₹ 4 per share (including premium ₹ 2) On allotment – ₹ 4 per share On first and final call – ₹ 6 per share (including premium ₹ 2) Applications for 3,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money received on application was adjusted towards sums due on allotment. All calls were made and were duly received except from Rohini, who failed to pay allotment and first and final call on 7,500 shares applied by her. These shares were forfeited. Afterwards, 40% of the forfeited shares were re-issued at ₹ 11 per share as fully paid-up. Pass the necessary journal entries in the books of Karur Ltd. Open call-in-arrears and call-in-advance accounts wherever necessary.