Students can access the CBSE Sample Papers for Class 12 Accountancy with Solutions and marking scheme Term 2 Set 4 will help students in understanding the difficulty level of the exam.
CBSE Sample Papers for Class 12 Accountancy Standard Term 2 Set 4 with Solutions
Max. Marks: 40
Time: 2 Hours
General Instructions:
- This question paper comprises two Parts – A and S. There are 12 questions in the question paper All
questions are compulsory. - Part-A is compulsory for all candidates.
- Part- S has two options i.e (i) Analysis of Financial Statements and (ii) Computerized Accounting.
Students must attempt only one of the given options. - Question nos. I to 3 and 10 are short answer type-I questions carrying 2 marks each.
- Question nos. 4 to 6 and 11 are short answer type-II questions carrying 3 marks each
- Question nos. 7 to 9 and 12 are long answer-type questions carrying 5 marks each. :;
- There is Rio’s overall choice. However, an internal choice has been provided in 3 questions of three marks and 1 question of five marks.
Part A
(Accounting for Not-for-Profit Organizations, Partnership Firms, and Companies)
Question 1.
Show how will you deal with the following items in the final accounts of a club:
| Particulars | Amount (₹) |
| Sports Fund | 35,000 |
| Sports Fund Investment | 35,000 |
| Income from Sports Fund Investment | 4,000 |
| Donations for Sports Fund | 15,000 |
| Sports Prizes Awarded | 10,000 |
| Expenses on Sports Events | 4,000 |
Answer:
Question 2.
Distinction between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ based on:
(i) Preparation of Balance Sheet
(ii) Closure of Business.
Answer:
| Basis | Dissolution of Partnership | Dissolution of a Partnership Firm |
| Preparation of Balance Sheet | In Dissolution of Partnership, a new balance sheet is prepared soon after the Dissolution. | In Dissolution of a Partnership Firm, a new balance sheet is not prepared. |
| Closure of Business | The business is not closed. | The business of the firm is closed. |
Question 3.
A, B, C & D are partners in the profit-sharing ratio of 3 : 3: 2: 2. On the retirement of D, A, B & C decided to share future profits in the ratio of 3: 2 :1. Goodwill of the firm is valued at ₹6,00,000. Goodwill already appears in the books at ₹4,50,000.
The profits for the first year after D’s retirement amount ₹ 12,00,000. Fill in the missing figures in the following journal entry using the information provided.
Answer:
Question 4.
Following is the Receipts and Payments Account of a Sports Club for the year ended 31st March 2017:
Additional Information:
(i) Subscriptions outstanding as on 31-3-16 were ₹5,500 and on 31-3-17 ₹8,500.
(ii) Stock of stationery on 1-4-16 ₹1,500 Stock of stationery on 31-3-17 ₹500 Creditors for stationery on 1-4-16 n,800 Creditors for stationery on 31-3-17 ₹1,200
(iii) The club owned furniture ₹30,000 on 1-4-2016. Depreciation charged on furniture (including purchase) was 10% p.a.
Prepare Income and Expenditure Account and Balance Sheet.
OR
On the basis of the following information, calculate the amount of consumable goods to be shown in the Income and Expenditure Account for the year ended 31st December 2017:
Stock of goods on 1-1-2017 ₹ 50,000
Stock of goods on 31-12-2017 ₹ 40,000
Amount paid for goods purchased ₹ 2,00,000
Creditors of goods on 1-1-2017 ₹ 20,000
Creditors for the goods on 31-12-2017 ₹ 10,000
Answer:
OR
Calculation of cost of consumable goods
= Opening stock + Purchases – Closing stock
= ₹ 50,000 + ₹ 1,90,000* – ₹ 40,000 = ₹ 2,00,000
*Purchases = Amount paid to creditors for goods + Closing balance of creditors
= ₹ 2,00,000 + ₹ 10, 000 – ₹ 20,000 = ₹ 1,90,000
Question 5.
Mohit, Ali and John are 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:
Mohit retired on 1st April 2019, subject to the following adjustments:
(i) Goodwill of the firm to be valued at ₹ 20,000.
(ii) Mohit to take over investments at market value.
(iii) 25% of the General Reserve to be transferred to Provision for doubtful debts and the balance to be distributed amongst all the partners.
(iv) Creditors to be paid ₹ 3,000 less.
(v) Investment Fluctuation Reserve not to be distributed. For this, it was decided that the remaining partners would compensate the retiring partner through their capital accounts.
(vi) Mohit to be paid ₹ 20,000 immediately on retirement and the balance to be transferred to his loan account.
You are required to:
Pass journal entries on the date of Mohit’s Retirement.
Answer:
Question 6.
Kati Ltd. issued 8,000, 9% debentures of ₹ 100 each at a discount of 10%. The full amount was payable on application. Applications were received for 9,000 debentures and allotment was made on pro-rata basis.
Pass the necessary journal entries for above transactions in the books of BGP Ltd.
OR
On 1st April 2018, Sakshi Ltd. issued 1,000,11% Debentures of ₹100 each at a discount of 6% redeemable at a premium of 5% after three years. Pass the necessary journal entries for the issue of debentures in the books of Sakshi Ltd.
Answer:
Question 7.
Pass necessary journal entries on the dissolution of a partnership firm in the following cases:
(i) Geeta, a partner was appointed to look after the dissolution work for which she was allowed a remuneration of ₹ 10,000. Geeta agreed to bear the dissolution expenses. Actual dissolution expenses ₹9,500 were paid by Geeta.
(ii) Janki, a partner, agreed to look after the dissolution work for a commission of ₹5,000. Janki agreed to bear the dissolution expenses. Actual dissolution expenses ₹5,500 were paid by Mohan, another partner, on behalf of Janki.
(iii) A partner, Kavita agreed to look after the dissolution process for a commission of ₹9,000. She also agreed to bear the dissolution expenses. Kavita took over the furniture of ₹9,000 for her commission.
Furniture had already been transferred to Realisation Account.
(iv) A debtor, Ravinder, for ₹ 19,000 agreed to pay the dissolution expenses which were ₹ 18,000 in full settlement of his debt.
OR
Following is the Balance Sheet of X and Y, who share profits in the ratio of 4 :1
Balance Sheet
(as on 31st March 2020)
The firm was dissolved on the above date, and the following was decided:
(i) X agreed to pay off his brother’s loan
(ii) Debtors of ₹5,000 proved bad.
(iii) Other assets realized as follows -Investments 20% less, and Goodwill at 60%.
(iv) One of the creditors for ₹5,000 was paid only ₹3,000.
(v) The building was auctioned for ₹30,000, and the auctioneer’s commission amounted to ₹1,000.
(vi) Y took over part of the stock at ₹4,000 (20% less than the book value). Balance stock realized 50%
(vii) Realisation expenses amounted to ₹2,000.
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.
Answer:
Question 8.
Sultana Traders Limited was incorporated on 1st April, 2016 with registered office in Pune. The company’s profit grows year after year, and it begins to expand its operations throughout India. To expand their business in Madhya Pradesh, CEO of the company decided to purchase the business of Guana Foods Limited, a well-known firm of FMCG in Madhya Pradesh.
On 1st April, 2020 Sultana Traders Limited bought the business of Guana Foods Limited consisting sundry assets of ₹72,00,000 and sundry creditors of ₹20,00,000 for a consideration of ₹61,44,000. Sultana Traders Limited issued 12% Debentures of ₹100 each fully paid, at a discount of 4% in satisfaction of purchase consideration to Guana Foods Limited.
On 18th May 2020, the company also issued 100,10% Debentures of ₹100 each credited as fully paid-up to the underwriters towards their commission.
You are required to answer the following questions:
(i) Calculate the amount of Goodwill purchased by Sultana Traders Limited of Guana Foods Limited.
(ii) Pass journal entry for the purchase of business of Guana Foods Limited.
(iii) Calculate the number of debentures issued to Guana Foods Limited.
(iv) Pass journal entry for the allotment of debentures to Guana Foods Limited
(v) Pass journal entry for the allotment of debentures to the under-writers.
Answer:
Amount of Goodwill = Purchase Consideration – (Value of Assets – Value of Liabilities)
= ₹61,44,000 – (₹72,00,000 – 20,00,000)
= ₹ 9,44,000
In the Books of Sultana Traders Limited
(iii) Number of Debentures Issued = \(\frac{\text { Purchase Consideration }}{\text { Issue Price }} \) 
= ₹ 64,000
In the Books of Sultana Traders Limited
Question 9.
The following is the Receipts and Payments Account of Star’s Club for the year ended 31st March 2018:
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Balance b/d (Cash) | 1,82,000 | By Salaries | 1,66,000 |
| To Subscriptions | 1,80,000 | By Stationery | 32,000 |
| To Tournament Fund | 1,64,000 | By Rent | 48,000 |
| To Interest on Investment | 65,000 | By Telephone Expenses | 8,000 |
| To Donation | 1,12,000 | By Sports Material | 78,000 |
| To Sale of Concert Tickets | 2,47,000 | By 6% p.a. Investment | 5,00,000 |
| By Miscellaneous Expenses | 24,000 | ||
| By Concert Expenses | 58,000 | ||
| By Balance c/d | 36,000 | ||
| 9,50,000 | 9,50,000 |
Prepare Income & Expenditure Account when the following additional information is provided:
(i) Subscriptions include ₹22,000 for 2016-17 and ₹ 8,000 for 2018-19.
(ii) Stock of stationery on 31sl March 2017 and 2018 was ₹4,200 and ₹ 6,400 respectively.
(iii) Stock of sports material at the beginning and end of the year was ₹ 18,000 and ₹ 31,000 respectively.
(iv) The value of investment on 1st April 2017 was ₹10,00,000 and the club made additional investment during the year on l5tOctober 2017.
Answer:
Note: Sports Material Consumed = 18,000 + 78,000- 31,000 = ₹ 65,000
Part B
(Analysis of Financial Statements)
Question 10.
State whether the following transactions will result in inflow, outflow, no flow of cash while preparing Cash Flow Statement:
(i) Sale of land and building ₹5,00,000 and ₹15,00,000
(ii) Purchase of equipment ₹1,00,000
Answer:
(i) Sale of land and building ₹ 5,00,000 and ₹ 15,00,000 will result in inflow of cash in Cash Flow Statement.
(ii) Purchase of equipment ₹ 1,00,000 will result in outflow of cash in Cash Flow Statement.
Question 11.
From the following Statement of Profit and Loss of VK Ltd., for the years ended 31st March 2017 and 2018, prepare a Comparative Statement of Profit and Loss.
| Particulars | Note No. | 2017 (₹) | 2018 (₹) |
| Revenue from Operations. | 6,00,000 | 7,00,000 | |
| Other Income | 50,000 | 80,000 | |
| Purchase of Stock-in-Trade | 1,80,000 | 2,00,000 | |
| Employees Benefits Expenses | 90,000 | 1,00,000 | |
| Other Expenses | 80,000 | 80,000 | |
| Tax Rate | 30% | 40% |
OR
Prepare a Common Size Balance Sheet of the Xerox Ltd. Their Balance Sheet as at 31-03-2017 and 31-03-2018 was as follows:
Answer:
Question 12.
Prepare Cash Flow Statement for the following Balance Sheet of Vinod Limited.
Additional Information:
(i) An old machinery having book value of ₹42,000 was sold for ₹ 56,000. Depreciation provided on machinery during the year was ₹ 28,000.
(ii) Tax paid during the year ₹18,000.
(iii) Interest received on Non-current Investments ₹2,000.
(iv) Dividend paid by the company during the year ₹ 60,000.
(v) Interest on Bank Overdraft was ₹4,000.
Answer:
