KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION

COMMON PREBOARD EXAMINATION 2013-2014

ACCOUNTANCY
Time allowed:3 hrs
CLASS : XII
Max.Marks:80
General Instructions:
1. All the questions are compulsory
2. Attempt all the questions
3. Show your workings wherever necessary
4. All parts of a question should be attempted at one place.

PART A
(Accounting for Partnership Firms and Companies)
1.In the absence of a Partnership Deed how interest on capital is allowed to partners? (1)
2. List out any two factors affecting goodwill

(1)

3. What journal entry will you pass when a partner agrees to pay the realization expenses on
behalf of the firm ?
(1)
4. A and B share profits and losses in the ratio of 4:3. They admit C with 3/7 th share, which he
gets 2/7th from A and 1/7th from B. What is the new ratio ?
(1)
5. What is Calls-in-arrears ?

(1)

6. What is meant by Under subscription of shares?

(1)

7.Give the meaning of Irredeemable debenture.

(1)

8. A firm earns Rs.60,000 as its annual profits, the normal profits being 10%. The assets of the
firm amount to Rs.7,20,000 (excluding goodwill) and Liabilities to Rs.2,40,000. Find out the
value of goodwill by Capitalisation Method.
(3)
9. Show by means of journal entry, how you would record the following issue.
B Ltd issues 30,000; 10% Debentures of Rs.100 each at a discount of 5% to be repaid at par
at the end of 5years.
(3)
10. X Ltd took over assets of Rs.7,00,000 and liabilities of Rs.60,000 of W Ltd for the purchase
consideration of Rs.6,60,000. X Ltd paid the purchase consideration by issuing debentures of
Rs.100 each at 10% premium. Give journal entries in the books of X Ltd.
(3)
11.Pass journal entries for the following transactions on the Dissolution of the firm of T and P
after the various assets (other than Cash) and outside liabilities have been transferred to
Realisation a/c:
(a) Bank loan Rs.34,000 was paid.
(b) Furniture worth Rs.70,000 was taken over by partner T at Rs.43,000.
(c) Partner P agreed to pay a creditor Rs.7,500
(d) Partners loan was paid off Rs.10,000

(1*4=4)

12.A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They admit C
into partnership for 1/5th share. C brings in Rs.30,000 as capital and Rs.10,000 as goodwill. At
the time of admission of C, goodwill appears in the Balance sheet of A and B at Rs.3,000. The

new ratio of the partners will be 5:3:2. Pass necessary entries.

(4)
13.L ltd forfeited 470 equity shares of Rs.10 each issued at a premium of Rs.5 per share for
non-payment of allotment money of Rs.8 per share (including share premium Rs.5 per share)
and first and final call of Rs.5 per share. Out of these 60 equity shares were subsequently
reissued at Rs.14 per share.
Give journal entries to record the following transactions of forfeiture and reissue of shares.
(4)
14. A company issued 30,000 fully paid equity shares of Rs.100 each for purchase of the
following assets and liabilities from S&Co:
Plant Rs.7,00,000
Land and Building Rs.12,00,000
Stock-in-trade Rs.9,00,000
Sundry Creditors Rs.2,00,000
You are required to pass the necessary journal entries:
(4)
15. Pass necessary journal entries for the following transaction:
i) Issued 1,00,000, 9% debentures of Rs.100 each at a discount of Rs.10 per debenture
redeemable at a premium of Rs.5 per debenture.
ii) Issued 100,7% debentures of Rs.100 each at Rs.105 each payable at Rs.100 each.
iii) Converted 1,800, 9% debenture of Rs. 100 each into 12% debentures of Rs.100 each at a
premium of Rs.25%.
(6)
16. A, B and C were partners in a Firm sharing profits in proportion of their Capitals.
On 31.3.2006 their Balance sheet was as follows:
Balance Sheet as on 31.3.2006
Liabilities

Amout

Assets

Amount

Creditors

16000

Buildings

140000

Reserve

12000

Machinery

Capitals
A

Stock
40000

60000

1,00,000

Debtors
Cash

60000
8000
12000
8000

200000

228000
228000
=====
===

=====
===

B died on 30.6.2006. Under the partnership agreement the executors of the deceased
partner were entitled to:
1.
Amount standing to the credit of partners Capital A/c
2.
Interest on Capital at 12% p a.

3.
Share of Goodwill. The Goodwill of the Firm on Bs deathwas valued at
Rs.2,40,000.
4.
Share of profit from the closing of last Financial Year to the date of death on the
basis of last years profit. Profit for the year ended 31.3.2006 wasRs.15000.
Prepare Bs Capital A/c to be rendered to his executors.
Which value has been ensured in the firm.

(6)

17. Bharat Ltd. invited applications for issuing 2 lakh equity shares of Rs.10 each.
The amount was payable as follows:
On application Rs.3 per share
On allotment Rs.5 per share and
On First and Final call Rs.2 per share
Applications for 3 lakh share were received and pro-rata allotment was made to all the
applicants. Bajaj, who
was allotted 3,000 shares, failed to pay the allotment and call money. His shares were
forfeited. Out of the
forfeited shares, 2,500 shares were reissued as fully paid up @ Rs.8 per share. Pass the
necessary journal entries
to record the above transaction.
(8)
OR
Prakash Engineering issued 40000 equity shares of Rs.10 each at a premium of
Rs.2 per share payable as
On application Rs.2 per share
On allotment Rs.5 per share (including premium of Rs.2 )
On first call Rs.2 per share
On final call Rs.3 per share
Applications were received for 75,000 equity shares. The shares were allotted pro-rata
to the applicants of 60,000 shares only. The remaining applications wererejected. Money
overpaid on application was utilized towards the sum due on allotment. Ashok to whom 3,000
share were allotted failed to pay the allotment money and the two calls. B who applied for
3,000 shares paid the call money along with allotment money.
(i) Pass the journal entries to record the above transactions.
(ii)Which value has been affected due to the rejection of shares?
18. X and Y who were sharing profits and losses in the ratio of 3:1 respectively, decided to
dissolve the firm on 31.3.2010 on which date some of the balances were:
Xs Capital Rs.1,00,000, Ys Capital Rs.1,00,000(Debit Balance), Profit and Loss A/cRs.8,000(Debit Balance), Trade Creditors- Rs.30,000, Loan from Mrs.X-Rs.10,000, Cash in
Bank Rs.2,000.
The Assets (other than cash in bank) realized Rs.1,10,000 and all Creditors were paid off less
5 % discount. Realisation expenses amounted Rs.1,000.
Prepare the Realisation Account, Bank Account and the Capital Accounts of the Partners
assuming that both the partners were solvent.
(8)
OR
A and B were partners in a Firm sharing profits in the ratio 3:2. They admitted C as a new
partner for 1/6th share in the profits. C was to bring Rs.40,000 as his capital and the Capitals
of A and B were to be adjusted on the basis of Cs Capital having regard to profit sharing ratio.
The balance sheet of A and B as on 31.3.2006 was as follows:

Balance Sheet as on 31.3.2006 of A and B

Liabilities

Amount

Assets

Amount

Creditors

36000

Cash

10000

Bills payable

20000

Debtors

34000

General Reserve

24000

Stock

24000

Machinery

42000

Building

200000

Capital
A
B

150000
80000

230000

310000

310000

======

======

The other terms of agreement on Cs admission were as follows:

1.

C will bring Rs.12000 as his share of Goodwill.

2.

Building will be valued at Rs.1,85,000 and Machinery at Rs.40,000

3.

A provision of 6% will be credited on Debtors for Bad Debts.

4.

Capital Accounts of A and B will be adjusted by opening current accounts

Prepare Revaluation Account, Partners Capital Account and the Balance Sheet of A, B, and C.
Which value is upheld by the Partnership Firm.

PART B
ANALYSIS OF FINANCIAL STATEMENTS
19. What are two major inflow and two major outflows of cash from investing activities?(1)
20. Mutual Fund Company receives a dividend of Rs.25 lakhs on its investments in other
Companys shares. Why is it a cash inflow from operating activities for this Company?(1)

21. What is meant by Financial Analysis? Mention only two tools used for financial analysis.
(1)
22. Under which heads the following items appear in the Balance Sheet of a company as per
Revised ScheduleVI Part I of the Companies Act 1956:
(i) Mining rights
(ii) Encashment of employees earned leave payable on retirement
(iii) Vehicles
(3)
23. (a)The Current Assets of a company are Rs.1,26,000 and the current Ratio is 3:2 and the
inventories are Rs.2000. Find out the Liquid Ratio.
(b) Inventory Turnover Ratio is 3 times. Sales are Rs. 1,80,000, Opening Stock is Rs. 2000
more thanthe closing stock. Calculate the opening and closing stock when goods are sold at
20% profit on cost.
(4)
24. From the following statement of Profit & Loss of S ltd for the years ended 31/03/2011 and
2012 Prepare Comparative statement of Profit &Loss .
(4)
Particulars
Revenue from operations
Other Incomes
Expenses

Note No.

2011-12
2010-11
20,00,000 12,00,000
12,00,000
9,00,000
13,00,000 10,00,000

25. Following is the Balance Sheet of W Ltd as on 31/03/2012.

Particulars
I. Equity & Liabilities
1.Sharehoders Funds
(a)Share Capital
(b)Reserves and Surplus
(Profit & Loss Balance)
2. Non-current Liabilities
Long term borrowings
3. Current Liabilities
Trade Payables
TOTAL
II Assets
1. Non-current assets
(a) Fixed Assets
Tangible Assets
2.Current Assets
(a) Inventories
(b) Trade receivables
(c) Cash & Cash Equivalents
TOTAL

Note No.

2012

2011

7,00,000
2,00,000

6,00,000
1,10,000

3,00,000

2,00,000

30,000
12,30,000

25,000
9,35,000

11,00,000

8,00,000

70,000
32,000
28,000
12,30,000

60,000
40,000
35,000
9,35,000

Adjustments: During the year a piece of machinery of the book value of Rs. 80,000 was
sold for Rs. 65,000.Depreciation provided on Tangible Assets during the year amounted to
Rs.2,00,000.
Prepare a Cash Flow Statement. (6)

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