CBSE Question Paper 2010 for Class 12 - Accountancy

by saumil shrivastava

General Instruction for CBSE Question Paper :-

(i) This question paper contains two parts A,B and C.
(ii) Part A is compulsory for all candidates.
(iii) Candidates can attempty only one part of the remaining parts B and C.
(iv) All parts of the questions should be attempted at one place.

Not for profit organisation, partnership firms and companies accounts

Q1. Show the accounting treatment of 'Legacy'.	1marks
Q2. Give any one difference between fixed and fluctuating capital account	1mark
Q3. Distinguish between general donations and specific donations.	1marks
Q4. State the circumstances when change in profit sharing ratio is needed.	1marks
Q5. Mention the amounts which are debited to Deceased Partner's Capital A/c.	1marks

Q6. Show how would you deal with the following items by preparing final account of non-profit
organisation in respect of Sachin Cricket Club for the year ending on $31^{st}$ December, 2009:

3 marks

Particulars	Rs.
Tournament Fund as on $1^{st}$ January, 2009	1,80,000
12% Tournament Fund Investments as on $1^{st}$ January, 2009	1,80,000
Contribution Collected for Tournament during the year 2009	90,000
Expenditure incurred during the year 2009 on conducting Tournaments	1,05,000
Interest received on Tournament Fund Investments during the year 2009	15,600

Q7. How will you deal with the following in the income and expenditure account and balance sheet
of shimla entertainment club for the year 2000

3 marks

Subscription received during the year 2000	Rs 250000
Subscription o/s on 31.12.1999	Rs 5000
Subscription on o/s on 31.12.2000	Rs 10000
Subscription received in advance as on 31.12.1999	Rs 7000
Subscription received in advance as on 31.12.2000	Rs 22000

Q8. Pappu and Munna are partners In a firm sharing profits in the ratio of 3 : 2. The partnership deed provided that Pappu was to be paid salary of Rs. 2,500 per month and Munna was to get a commission of Rs. 10,000 per year. Interest on capital was to be allowed @ 5% per annum and interest on drawings was to be charged @ 6% per annum. Interest on Pappu's drawing was Rs. 1,250 and on Munna's drawings Rs. 425. Capital of the partners were Rs. 2.00.000 and respectively, and were fixed. The firm earned a profit of Rs. 90,575 for the year ended 31.3.2004.

Prepare Profit and Loss Appropriation Account of the firm.

3marks

Q9. P,R and S are in partnership sharing profits in the ration of 4:3:1 respectively. It is provided in the
partnership deed that, on the death of any partner, his share of goodwill is to be valued at half of the
profits credited to his account during the previous four completed years.

R dies on 1January,1997. The firm's profits for the last four years 1993: Rs. 120000, 1994: Rs 80000,
1995: Rs 10000, 1996: Rs 80000. Determine the amount that should be credited to R in respect of his
share of goodwill and record journal entry for the same.

4 marks

Q10. A and B are partners sharing profits and losses in the ratio of 3:2 with capitals of Rs 600000 and
Rs 300000 respectively. Show the distribution of profits in each of the following alternatives cases:

Case(i) If the partnership deed is silent as to the interest on capital and the profits for the year are Rs
150000.

Case (ii) If the partnership deed provides for interest on capital @8% P.a. and the losses for the year
are Rs 50000.

Q11. Anjali and Gayatri are partners in a firm sharing profit and losses equally. On 1st January, 2009 their capitals were Rs.2,50,000 and Rs.1,50,000. On 1st April, 2009 Gayatri introduced further capital of Rs.50,000 into the business. During the year ended on 31st December, 2009 they made a profit of Rs.2,60,000. The terms of partnership deed provided . the following:

a. Interest on capitals to be allowed @ 10% p.a.
b. Interest on drawings to be charged @ 5% p.a. Drawing being Anjali â€" Rs.50,000 and Gayatri â€" Rs.40,000.
c. 10% of the distributed profits to be transfer to General Reserve.
d. Both partner entitled to a salary of Rs.4,000 per quarter.

Prepare Profit and Loss Appropriation Account for the year ended 31st December, 2009.

4 marks

Q12. Amar, Uday and Sagar were partners, sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet on 31.3.2009 was as follows:

Liabilities	Rs.	Assets	Rs.
Capital Account	….	Plant & Machinery	72,000
Amar	60,000	Furniture	12,000
Uday	75,000	Debtors	46,000
Sagar	37,500	Joint life Policy (surrender value)	36.000
Bank Overdraft	39,000	Bills Receivable	29,000
Mrs. Amar's Loan	20,000	Stock	42,000
Creditors	38,000	Loan to Sagar	20,000
Bills Payable	18,500	Investments	25,000
Profit and Loss Account	10,000	Cash in hand	16,000
Total	2,98,000	Total	2,98,000

The firm was dissolved on $31^{st}$ March, 2005 on the following terms:

a. The Joint Life Policy is Surrender at book value.
b. Investments are taken over by Uday at 10% discount.
c. Other Assets are realised as follows: Plant and Machinery Rs.48,000; Debtors and Bills Receivable at 15% less; Furniture Rs.7,800 and Stock at 10% less.
d. Creditors agreed to accept Rs.35,000 for full settlement.
e. Expenses on realisation amounted to Rs.2,000.

Prepare Realisation Account, Partners Capital Account and Cash Account.

6marks

Q13. From the following receipts and payments account of a club and from the information supplied,
prepare an income and expenditure account for the year ended 31st December,2003 and a balance
sheet as on that date.

Receipts and Payments Account

Receipts	Rs	Payments	Rs
To balance b/d	2300	B y salaries	4500
To subscriptions	6000	By office expenses	1500
To rent of the hall	2000	By sports Equipment	1000
To sale of grass	200	By machine	2000
To sale of old furniture [book value Rs200]	100	By 6% Investments	1000
		By balance c/d	600
	10600		10600

Other information

Subscriptions received included Rs.1000 for 2002 and Rs 500 for 2004. Outstanding subscriptions for 2003 amounted to Rs 800. Sports equipment on hand on $31^{st}$ December,2002 was of Rs.3000. The value placed on this equipment on hand on $31^{st}$ December,2003 was Rs.3100. The machine was purchased on $1^{st}$ july,2003 and is to be depreciated at 20% per annum. Salaries Rs200 for 2003 are yet to be paid. Interest on investment is accrued of 6 months. On 1st January,2003 club owned land and building valued at Rs 1500 and furniture at Rs 600.

6marks

Q14.The following is the balance sheet of A and B on $31^{st}$ December,2008:

Liabilities	Rs	Assets	Rs
Sundry creditors	30000	Cash in hand	500
Bills payable	8000	Cash at bank	8000
Mrs. A loan	5000	Stock in trade	5000
Mrs. B loan	10000	Investment	10000
General reserve	10000	Debtors 20000
Salaries outstanding	1000	(-)prov 2000	18000
A's capital	A's capital	Plant	20000
B's capital	10000	Building	15000
		Building	15000
		Goodwill	4000
		Profit and loss a/c	3500
Total	84000	Total	84000

The firm was dissolved on $31^{st}$ December,2008 on the following terms:

6marks

a) A promised to pay off Mrs. A 's loan and took away stock in trade at Rs 4000.
b) B took away half the investment at 10% discount.
c) Debtors realised Rs.19000.
d) Creditors and bills payable were due on an average basis one month after 31st December, but they were paid immediately on $31^{st}$ December, at a discount of 6% per annum.
e) Plant realised Rs.25000, building Rs40000,goodwill Rs6000 and remaining investments at Rs 45000.
f) There was an old typewriter in the firm which had been written off completely from the books of the firm. It was now estimated to realised Rs300. Ti was taken away by Bat this estimated price.
g) Realisation expenses were Rs.1000.

You are required to give necessary ledger accounts to close the books of the firm

Q15. Jain and gupta were partners in a firm sharing profit and losses in the ratio of 4:3. The following is the balance sheet of the firm as on $31^{st}$ December,1994

Balance sheet of jain and gupta ltd.

As on $31^{st}$ December,1994

Liabilities	Rs	Assets	Rs
Sundry creditors	20000	Cash	14800
Bills payable	3000	Debtors 20500
Bank Overdraft	17000	Less:provision 300	20200
Capitals:		Stock	20000
Jain 70000		Plant	40000
Gupta 60000	130000	Buildings	75000
Total	170000	Total	170000

They agreed to admit Mishra as partner with effect from $1^{st}$ January,1995 with $1/4^{th}$ share in profits on the following terms:

1. Mishra will brings in capital to the extent of $1/4^{th}$ of the total capital of the new firm after all adjustment have been made.
2. Building is to be appreciated by Rs. 14000 and plant to be depreciated by Rs 7000.
3. The provision on debtors is to be raised to Rs.1000.
4. The goodwill of the firm has been valued at Rs 21000.

Prepare the Revaluation Account, Partners' Capita Account and Balance sheet of the firm immediately after Mishra's admission.

8marks

A,B and C were partners in a firm sharing profits and losses in the ration of 5:3:2 respectively. A died on $28^{th}$ February,2007. The balance sheet on that date was as follows:

Liabilities	Rs	Assets	Rs
Capital A/Cs		Machinery	35000
A 12000		Furniture	6000
B 16000		Stock	15000
C 12000	40000	Debtors	15000
General Reserve	12000	Cash	3000
Creditors	22000
Total	74000	Total	74000

The firm had a joint Life Policy in the names of the partners, for insured value of Rs60000. The premium paid on the policy was debited to profit and loss account. The partnership deed provided that on the death of a partner the assets and liabilities are to be revalued. The assets and liabilities were revalued as follows on A's death.

1. Machinery Rs 45000 and Furniture Rs 7000
2. A provision of 10% was created for Doubtful Debts.
3. A provision of Rs. 15000 was made for Taxation.
4. The goodwill of hte firm was valued at Rs 15000 on A's death.
5. Death claim for policy was realised in full.

The amount payable to A was transferred to his executor's account. You are required to prepare
Revaluation Account, Capital Accounts of the Partners and the Balance sheet of B and C.

16. The Balance Sheet of A, B and C who are partners in a firm sharing profits and losses in proportion to their capitals stood as on 31st December, 2009 was as under:

Liabilities	Rs.	Assets	Rs.
Capital Account:		Goodwill	20,000
A	80,000	Land and Building	1,20,000
B	60,000	Plant and Machinery	42,000
C	60,000	Inventory	47,800
Trade Creditors	40,000	Debtors 45,000
Bills Payable	25,000	Less: Provision 2,800	42,200
Reserve Fund	30,000	Bills Receivable	26,000
Workmen Compensation Fund	10,000	Typewriter	7,000
Total	3,05,000	Total	3,05,000

B retires on the above date and the following adjustments were to be made:
e. Plant and Machinery and Stock depreciated by 10% and Land and Buildings appreciated by 20%.
f. Provision for legal charges to be made at Rs.3,320.
g. Provision for doubtful debts to be raised to 10% on debtors
h. Goodwill of the firm is fixed at Rs.60,000 at the time of retirement of B.
i. B will be paid Rs.15,000 in cash and balance will be transferred to his Loan Account. j. The capitals of the new firm to be fixed at Rs.2,40,000. A and C decided to keep new capitals in their new profit sharing ratio which is 2 : 1. Adjustment will be made by opening current account.

Prepare Revaluation Account, Partners Capital Account and Balance Sheet after retirement of B. (8)

X, Y and Z were in partnership sharing profits and losses equally. X died on $31^{st}$ October, 2009. The Balance Sheet of the firm as at $31^{st}$ March, 2009 was as under:

Liabilities	(Rs)	Assets	(Rs)
Sundry Creditors	31,200	Cash at Bank	8,000
General Reserve	12,000	Debtors	Debtors
Investment Fluctuation Fund	4,100	Inventory	56,000
Provision for Doubtful Debts	3,700	Investments (Cost)	16,000
Capital Accounts:		Freehold Property	60,000
X	60,000	Goodwill	27,000
Y	50,000
Z	42,000
Total	2,03,000	Total	2,03,000

On the date of death it was found that:

a. Freehold Property was worth Rs.80,000.
b. Debtors were all good.
c. Stock were valued at Rs.48,000
d. Investments were valued at Rs.15,000 and were taken over by Y at that value.
e. A liability for Workmen's Compensation for Rs.4,000 was to be provided for.
f. Goodwill was to be valued at 2 years purchase of average profits of last 5 years.
g. X's share of profit upto the date of death was to be calculated on the basis of last three year's average profit.
h. The profits of the last five years were as follows: 2004-05 - Rs.21,000; 2005-06 - Rs.27,000; 2006-07 - Rs.23,000; 2007-08 - Rs.22,000 and 2008-09 - Rs.27,000.

Prepare Revaluation Account, Partners Capital Account and Balance Sheet of the remaining partners. (8)

PART-B

Analysis of Finansial analysis

Q17 Give any one important features of financial analysis.

1mark

Q18 Give any one advantage of CFS.

1marks

Q19 State the effects of changes in current assets and current liabilities on cash from operating activities.

1marks

Q20 From the following Balance sheet of Arihant Textile Ltd; prepare a Comparative Balance Sheet and comment upon the changes

3 marks

Balance sheet

As on $31^{st}$ march,2007 and 2008

Liabilities	2007	2008	Assets	2007	2008
Current liabilities	200000	400000	Fixed Assets	1200000	1800000
Reserves	300000	200000	(-) Accumulated
12% loan	500000	800000	Depreciation	200000	300000
Share capital	500000	1000000	Current assets	1000000	1500000
				500000	900000
Total	1500000	2400000	Total	1500000	2400000

Q21 Calculate the following ratios from the details given below:

4 marks

(i) Current ratio
(ii) Liquid ratio
(iii) Operating ratio
(iv) Gross profit ratio

Details:

Current assets = Rs 70000	sales =Rs 140000
Net working capital= Rs 30000	cost of goods sold= Rs 68000
Inventories = Rs 30000

Q22 From the following information, calculate (a) cost of goods sold, (b) opening stock and closing stock, ( c ) quick assets and current assets,if

4 marks

i) Stock turnover raio 5 times
ii) Stock at the end is Rs 10000 more than the stock in the beginning.
iii) Sales Rs 300000
iv) Gross profit ratio 25%
v) Current liabilities Rs 40000
vi) Quick ratio 0.75

Q23 From the following particulars, prepare CFS

6marks

Liabilities	2005	2004	Assets	2005	2004
Equity share capital	80000	80000	Fixed Assets	80000	82000
12% pref. Share capital	20000	….	Less:- acc.
Genral reserve	4000	4000	Depreciation	30000	22000
Profit and loss A/C	2400	2000		50000	60000
15% debentues	14000	12000	Debtors	48000	40000
Creditors	22000	24000	Stock	70000	60000
Provision for taxation	8400	6000	Prepaid expenses	1000	600
Proposed dividend	11600	10000	Cash	7000	2400
Bank overdraft	13600	25000
Total	176000	163000	Total	176000	163000

Additional Information:

a) Tax paid Rs7000
b) Fixed assets sold for Rs. 10000, their cost Rs.20000 and accumulated depreciation till date of sale on them Rs6000
c) Dividend paid during the year Rs.9000.

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