CBSE Class 12 Accountancy 2020 — Set 67/3/1

Rajat, Mishi and Tanvi were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Tanvi died on 31st October, 2019. According to the partnership agreement, her share of profits from the closure of last accounting year till the date of her death was to be calculated on the basis of aggregate profits of two completed years before death. Profits of the firm for the years ending 31st March, 2018 and 31st March, 2019 were ₹ 57,000 and ₹ 63,000 respectively. The firm closes its books on 31st March every year. Tanvi's share of profits till the date of her death will be : (A) ₹ 24,000 (B) ₹ 7,000 (C) ₹ 14,000 (D) ₹ 12,000

Excess value of net assets over purchase consideration at the time of purchase of business is : (A) Credited to the Capital Reserve. (B) Debited to the Goodwill Account. (C) Credited to the General Reserve Account. (D) Credited to the Vendor's Account.

First call amount received in advance from the shareholders before it is actually called up by the directors is : (A) Debited to calls-in-advance account. (B) Credited to share allotment account. (C) Debited to first call account. (D) Credited to calls-in-advance account.

Fill in the blanks for the transaction 'Interest on drawings' ₹ 4,000. Journal | Date | Particulars | L.F. | Dr. ₹ | Cr. ₹ | | --- | --- | --- | --- | --- | | | ..................... Dr. | | 4,000 | | | | To ............................. | | | 4,000 | | | (Being Interest on drawings charged) | | | |

Vashya Ltd. issued 30,000, 10% Debentures of ₹ 100 each as collateral security for a loan of ₹ 25,00,000 taken from Bank of India. Fill in the blanks for the journal entry for issue of debentures as a collateral security : Vashya Ltd. Journal | Date | Particulars | L.F. | Dr. ₹ | Cr. ₹ | | --- | --- | --- | --- | --- | | | ............................. A/c Dr. | | .......... | | | To ............................. A/c | | | | .......... | | (Being ₹ 30,00,000; 10% debentures issued as collateral security for a loan of ₹ 25,00,000) | | | | |

For a company manufacturing garments, procurement of raw material, incurrence of manufacturing expenses, sale of garments are classified as ______ activities.

Paid ₹ 4,00,000 to acquire shares in R.V. Ltd. and received a dividend of ₹ 40,000 after acquisition. These transactions will result in (A) Cash used in investing activities ₹ 4,00,000. (B) Cash generated from financing activities ₹ 4,40,000. (C) Cash used in investing activities ₹ 3,60,000. (D) Cash generated from financing activities ₹ 3,60,000.

Which of the following is not a tool of Financial Statements Analysis ? (A) Balance Sheet (B) Cash Flow Statement (C) Statement of Profit and Loss (D) All of the above

While preparing Cash Flow Statement, if net cash flow from operating, investing and financing activities is negative the same is ______ to opening cash balance to obtain ______ cash balance.

'Public Deposits' appear in the company's Balance Sheet under the head/subhead : (A) Intangible Assets (B) Current Liabilities (C) Shareholders' Funds (D) Non-Current Liabilities

'Income received in advance' appears in the Balance Sheet of a company under the sub-head ______ .

'Purchase of goods ₹ 35,000 for cash will increase the operating ratio.' Is the statement correct ? Give reasons.

Calculate the Current Ratio and Debt-Equity Ratio from the following information : Particulars | ₹ Non-Current Assets | 16,00,000 Current Assets | 4,00,000 Working Capital | 2,00,000 Non-Current Liabilities | 12,00,000 OR From the following information, determine the opening inventory and the closing inventory : Inventory Turnover Ratio = 5 times Revenue from Operations = ₹ 8,00,000 Gross Profit Ratio = 25% Closing inventory was ₹ 20,000 more than the opening inventory.

Veena and Somesh were partners in a firm with capitals of ₹ 1,00,000 and ₹ 80,000 respectively. They admitted Nisha on 1st April, 2019 as a new partner for (1)/(4)th share in the future profits of the firm. Nisha brought ₹ 90,000 as her capital. Nisha acquired her share as (1)/(12)th from Veena and the remaining from Somesh. Calculate the value of goodwill of the firm and pass the necessary journal entries on Nisha's admission. OR Asha, Rina and Chahat were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2019 was as follows : Balance Sheet of Asha, Rina and Chahat as at 31st March, 2019 | Liabilities | Amount ₹ | Assets | Amount ₹ | | --- | --- | --- | --- | | Creditors | 12,00,000 | Plant and Machinery | 14,80,000 | | General Reserve | 2,00,000 | Stock | 2,20,000 | | Capitals : | | Sundry Debtors 2,60,000 | | | Asha 3,00,000 | | Less Provision for doubtful debts 20,000 | 2,40,000 | | Rina 2,00,000 | | Bank | 60,000 | | Chahat 1,00,000 | 6,00,000 | | | | | 20,00,000 | | 20,00,000 | Asha, Rina and Chahat decided to share future profits equally with effect from 1st April, 2019. For this, it was agreed that : (i) Goodwill of the firm be valued at ₹ 1,50,000. (ii) Bad debts amounted to ₹ 40,000. A provision for doubtful debts was to be made @ 5% on debtors. Pass the necessary journal entries to record the above transactions in the books of the firm.

Neena and Sara were partners in a firm with fixed capitals of ₹ 5,00,000 and ₹ 4,00,000 respectively. It was discovered that interest on capital @ 6% p.a. was credited to the partners for the two years ending 31st March, 2018 and 31st March, 2019 whereas there was no such provision in the partnership deed. Their profit sharing ratio during the last two years was : 2017 – 18 4 : 5 2018 – 19 5 : 1 Showing your workings clearly, pass the necessary adjustment entry to rectify the error.

Aditi, Kartik and Tina were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2019, their Balance Sheet was as follows : Balance Sheet of Aditi, Kartik and Tina as at 31st March, 2019 | Liabilities | Amount ₹ | Assets | Amount ₹ | | --- | --- | --- | --- | | Creditors | 96,000 | Furniture | 4,30,000 | | Capitals : | | Stock | 1,50,000 | | Aditi 3,00,000 | | Debtors | 83,000 | | Kartik 2,00,000 | | Cash | 33,000 | | Tina 1,00,000 | 6,00,000 | | | | | 6,96,000 | | 6,96,000 | Aditi died on 1st November, 2019. It was agreed that : (i) Goodwill of the firm be valued at ₹ 1,00,000. (ii) Profit for the year 2019 – 20 be taken as having accrued at the same rate as the previous year 2018 – 19. Profit for the year 2018 – 19 was ₹ 96,000. (iii) Half the amount was paid to Aditi's executors immediately and the remaining half will be paid in two equal annual instalments with interest @ 6% p.a. Pass the necessary journal entries to record the above transactions in the books of the firm on the date of her death.

Vasudha and Dewan were partners in a firm sharing profits and losses in the ratio of 2 : 3. The firm was dissolved on 31st March, 2019. After transfer of assets (other than cash) and external liabilities to Realization Account, the following transactions took place : (i) Investments of the face value of ₹ 60,000 were sold in the open market for ₹ 63,000 for which a commission of ₹ 700 was paid to the broker. (ii) Creditors worth ₹ 65,000 were settled by handing over the entire stock to them along with a payment of ₹ 23,000 by cheque. (iii) There was old furniture which had been completely written off from the books of the firm. It was taken over by Vasudha at ₹ 2,000. (iv) Dewan undertook to pay Ms. Dewan's loan of ₹ 45,000. (v) Dewan was appointed to look after the process of dissolution for which he was allowed a remuneration of ₹ 7,000. He agreed to bear the dissolution expenses. Actual expenses incurred by Dewan were ₹ 11,000, which were paid by the firm. (vi) Loss on realisation amounted to ₹ 9,000. Pass the necessary journal entries to record the above transactions in the books of the firm.

Pass the necessary journal entries for the issue of debentures for the following transactions : (i) Anand Ltd. issued 800, 9% Debentures of ₹ 500 each at a premium of 20%, to the vendors for machinery purchased from them costing ₹ 4,80,000. (ii) Dawar Ltd. issued 5,000, 7% Debentures of ₹ 200 each at a premium of 5%, redeemable at a premium of 10%. (iii) Novelty Ltd. issued 1,000, 8% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 10%. OR (i) On 1st April, 2019, Bright Ltd. issued ₹ 4,00,000, 6% Debentures of ₹ 100 each at a discount of 5%, redeemable after three years. The amount per debenture was payable as follows : On Application – ₹ 80 per debenture On Allotment – Balance The debentures were fully subscribed and all money was duly received. Pass necessary journal entries for issue of debentures. (ii) Disha Ltd. took over assets of ₹ 8,00,000 and liabilities of ₹ 3,00,000 from Kriti Ltd. for a purchase consideration of ₹ 6,00,000. The payment was made by issue of 9% Debentures of ₹ 100 each at 20% premium. Pass the necessary journal entries for the above transactions in the books of Disha Ltd.

There was 'Nil' net cash flow from operating activities of Ashok Ltd. during the year ending 31st March, 2019. From the following Balance Sheet of Ashok Ltd. as at 31st March, 2019, prepare a Cash Flow Statement : Ashok Ltd. Balance Sheet as at 31st March, 2019 | Particulars | Note No. | 31.3.2019 ₹ | 31.3.2018 ₹ | | --- | --- | --- | --- | | I – Equity and Liabilities : | | | | | 1. Shareholders Funds : | | | | | (a) Share Capital | | 19,00,000 | 11,00,000 | | (b) Reserves and Surplus | 1 | 1,60,000 | 2,00,000 | | 2. Non-Current Liabilities : | | | | | Long-term Borrowings | 2 | 1,00,000 | 4,00,000 | | 3. Current Liabilities : | | | | | (a) Short-Term Borrowings | 3 | 2,50,000 | 2,30,000 | | (b) Short-Term Provisions | 4 | 1,90,000 | 2,70,000 | | Total | | 26,00,000 | 22,00,000 | | II – Assets : | | | | | 1. Non-Current Assets : | | | | | Fixed Assets : | | | | | (i) Tangible Assets | 5 | 15,00,000 | 11,00,000 | | (ii) Intangible Assets | 6 | 2,80,000 | 1,70,000 | | 2. Current Assets : | | | | | (a) Current Investments | | 1,30,000 | 2,90,000 | | (b) Trade Receivables | | 3,90,000 | 4,10,000 | | (c) Cash and Cash Equivalents | | 3,00,000 | 2,30,000 | | Total | | 26,00,000 | 22,00,000 | Notes to Accounts : | Note No. | Particulars | 31.3.2019 ₹ | 31.3.2018 ₹ | | --- | --- | --- | --- | | 1 | Reserves and Surplus : Surplus (Balance in the Statement of Profit and Loss) | 1,60,000 | 2,00,000 | | 2 | Long-term Borrowings : 8% Debentures | 1,00,000 | 4,00,000 | | 3 | Short-term Borrowings : Bank overdraft | 2,50,000 | 2,30,000 | | 4 | Short-term Provisions : Provision for Tax | 1,90,000 | 2,70,000 | | 5 | Tangible Assets : Plant and Machinery | 16,30,000 | 11,70,000 | | | Accumulated Depreciation | (1,30,000) | (70,000) | | | | 15,00,000 | 11,00,000 | | 6 | Intangible Assets : Goodwill | 2,80,000 | 1,70,000 | Additional information : (i) A machinery of the book value of ₹ 60,000, (depreciation provided thereon ₹ 20,000) was sold at a loss of ₹ 6,000. (ii) 8% Debentures were redeemed on 1st July, 2018.

Rathi Ltd. invited applications for issuing 1,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Amount per share was payable as follows : On Application – ₹ 4 (including premium ₹ 1) On Allotment – ₹ 4 (including premium ₹ 1) On First and Final Call – Balance Applications were received for 1,50,000 shares and allotment was made to the applicants as follows : (i) Applicants of 80,000 shares were allotted 60,000 shares. (ii) Applicants of 50,000 shares were allotted 40,000 shares. (iii) No shares were allotted to the remaining applicants and their application money was returned. Yatin, who belonged to category (ii) and who had applied for 5,000 shares failed to pay the allotment and call money. His shares were forfeited. Later, half of Yatin's forfeited shares were reissued @ ₹ 18 per share as fully paid up. Pass the necessary journal entries to record the above transactions in the books of Rathi Ltd. OR Eiko Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The amount was payable as follows : On Application – ₹ 4 per share On Allotment – ₹ 6 per share (including premium ₹ 3) On First and Final Call – Balance Applications were received for 3,00,000 shares and allotment was made on pro-rata basis to all the applicants. Money overpaid on applications was utilised towards sums due on allotment. Sunil, who applied for 6,000 shares failed to pay the allotment money while Rishab holding 2,000 shares paid the first and final call money with allotment. Sunil's shares were forfeited immediately after allotment. Thereafter, first and final call was made and was duly received. Half of the forfeited shares were reissued to Varsha as fully paid for ₹ 9 per share. Pass the necessary journal entries to record the above transactions in the books of Eiko Ltd.

Ashish and Nimish were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019 their Balance Sheet was as follows : Balance Sheet of Ashish and Nimish as at 31st March, 2019 | Liabilities | Amount ₹ | Assets | Amount ₹ | | --- | --- | --- | --- | | Capitals : | | Plant and Machinery | 2,90,000 | | Ashish 3,10,000 | | Furniture | 2,20,000 | | Nimish 2,90,000 | 6,00,000 | Debtors 90,000 | | | General Reserve | 50,000 | Less provision for doubtful debts 1,000 | 89,000 | | Workmen's Compensation Fund | 20,000 | Stock | 1,40,000 | | Creditors | 1,10,000 | Cash | 41,000 | | | 7,80,000 | | 7,80,000 | On 1st April, 2019, Geeta was admitted into the partnership for (1)/(4)th share in the profits on the following terms : (i) Goodwill of the firm was valued at ₹ 2,00,000. (ii) Geeta brought ₹ 3,00,000 as her capital and her share of goodwill premium in cash. (iii) Bad debts amounted to ₹ 2,000. Create a provision for doubtful debts @ 5% on debtors. (iv) Furniture was found undervalued by ₹ 65,400. (v) Stock was taken over by Nimish for ₹ 1,30,000. (vi) The liability against workmen's compensation fund was determined at ₹ 30,000. (vii) After the above adjustments, the capitals of Ashish and Nimish were to be adjusted taking Geeta's capital as the base. Excess or shortage was to be adjusted by opening current accounts. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the firm after Geeta's admission. OR Radha, Manas and Arnav were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2019 was as follows : Balance Sheet of Radha, Manas and Arnav as at 31st March, 2019 | Liabilities | Amount ₹ | Assets | Amount ₹ | | --- | --- | --- | --- | | Capitals : | | Furniture | 4,60,000 | | Radha 4,00,000 | | Investments | 2,00,000 | | Manas 3,00,000 | | Stock | 2,40,000 | | Arnav 2,00,000 | 9,00,000 | Debtors 2,20,000 | | | Investment Fluctuation Fund | 1,10,000 | Less provision for doubtful debts 10,000 | 2,10,000 | | Creditors | 2,50,000 | Cash | 1,50,000 | | | 12,60,000 | | 12,60,000 | Manas retired on 1st April, 2019. It was agreed that : (i) Stock was to be appreciated by 20%. (ii) Provision for doubtful debts was to be increased to ₹ 15,000. (iii) Value of furniture was to be reduced by ₹ 3,000. (iv) Market value of investments was ₹ 1,90,000. (v) Goodwill of the firm was valued at ₹ 2,00,000 and Manas's share was adjusted in the accounts of Radha and Arnav. (vi) Manas was paid ₹ 68,000 in cash and the balance was transferred to his loan account. (vii) Capitals of Radha and Arnav were to be in proportion to their new profit sharing ratio. Surplus/deficit, if any, in their capital accounts was to be adjusted through current accounts. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.