Students can access the CBSE Sample Papers for Class 12 Accountancy with Solutions and marking scheme Term 2 Set 7 will help students in understanding the difficulty level of the exam.
CBSE Sample Papers for Class 12 Accountancy Standard Term 2 Set 7 with Solutions
Time Allowed: 2 Hours
Maximum Marks: 40
General Instructions:
- This question paper comprises two Parts – A and B. There are 12 questions in the question paper. All
questions are compulsory. - Part-A is compulsory for all candidates.
- Part-B has two options L e. (i) Analysis of Financial Statements and (ii) Computerized Accounting.
Students must attempt only one of the given options. - Question nos. 1 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 no 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.
From the following information, calculate the amount to be charged to Income and Expenditure Account for ‘Sports material consumed’ for the year 2019-20.
| Particulars | Amount (₹) |
| Stock of Sports Material (01-04-2019) | 60,000 |
| Amount paid to creditors (during 2019-20) | 3,00,000 |
| Creditors for Sports Materials (01-04-2019) | 1,00,000 |
| Creditors for Sports Materials (31-03-2020) | 80,000 |
| Sports Material sold During the year (Book Value ₹ 35,000) | 15,000 |
| Cash Purchases of Sports Material (During the Year 2019-20) | 1,30,000 |
There was zero stock at the end of financial year 2019-20.
Answer:
Calculation of sports material consumed:
Question 2.
Distinction between ‘Retirement of a Partner’ and ‘Death of a Partner’ based on:
(i) Meaning
(ii) Treatment of due amount
Answer:
| Basis | Retirement of a Partner | Death of a Partner |
| Meaning | A partner who cuts his connection with the firm is called retirement of partner or outgoing partner. Retirement of a partner leads to reconstitution of a partnership firm as the original agreement between
the partners comes to an end. |
Deceased partner is one who has discontinued the partnership due to his death. A contract between the partners of the enterprise is not dissolved by the death of a partner, the estate of a dead partner is not responsible for any act of the enterprises done after his death. |
| Treatment of due amount | On retirement, the amount due to the retiring partner is transferred to his Loan Account. | In death, the total amount due to the deceased partner is transferred to his Executor’s loan Account. |
Question 3.
The book value of assets (other than cash and bank) transferred to the Realisation Account is ₹ 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaining assets are handed over to a Creditor, in full settlement of his claim.
You are required to record the journal entries for the Realisation of assets.
Answer:
Question 4.
Rita, Nina and Mita are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Mita dies on 1st April, 2017. On the date of her death, it was decided to value goodwill on the basis of two year’s purchase of weighted average profits of the firm for the last three years.
The profits of the last three years and weights assigned were:
| Year | Profit | Weights |
| 2014-15 | 30,000 (including gain from speculation ₹ 10,000) | 1 |
| 2015-16 | 80,000 | 2 |
| 2016-17 | 1,00,000 | 3 |
(1) Calculate the firm’s goodwill on the date of Mita’s death.
(2) Pass the necessary journal entry regarding goodwill.
OR
Gita, Radha and Garv were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. On 31st March, 2019, their balance sheet was as follows:
Radha retired on the above date and it was agreed that:
(i) Goodwill of the firm be valued at ₹ 3,00,000 and Radha’s share be adjusted through the capital accounts of Gita and Garv.
(ii) Stock was to be appreciated by 20%.
(iii) Buildings were found undervalued by ₹ 1,00,000.
(iv) Investments were sold for ₹ 34,000.
(v) Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.
Prepare Revaluation Account, Partner’s Capital Accounts of the reconstituted firm on Radha’s retirement.
Answer:
Old Share of partners = 3 : 2 : 1
Gain Share = 3 : 2
Goodwill = \(\frac{4,80,000}{6}\) = 80,000 × 2 = ₹ 1,60,000
Mita’s share of goodwill = 1,60,000 × \(\frac{1}{6}\) = ₹ 26,667
OR
Working Note: 1.
Old Ratio of Gita, Radha and Garv = 3 : 5 : 2
New Ratio of Gita and Garv = 3 : 2
Total Capital of New Firm = ₹ 5,00,000
Gita’s New Capital = 5,00,000 × \(\frac{3}{5}\)
= ₹ 3,00,000
Gary’s New Capital = 5,00,000 × \(\frac{2}{5}\)
= ₹ 2,00,000.
Working Note: 2
Goodwill of the firm = 30,000
Radha’s share = \(\frac{5}{10}\) × 3,00,000 = 1,50,000
Share of Gita’s = \(\frac{2}{5}\)
Garv’s Share = \(\frac{3}{5}\)
Question 5.
Mayank Ltd. took over assets of ₹ 6,00,000 and liabilities of ₹ 40,000 of Polymer Ltd. at an agreed value of ₹ 6,30,000. Mayank Ltd. issued 10% Debentures of ₹ 100 each at a discount of 10% to Polymer Ltd. in full satisfaction of the price. Mayank Ltd. writes off any capital losses incurred during a year, at end of that financial year.
You are required to pass the journal entries in the books of Mayank Ltd.
Answer:
Number of Debentures issued = \(\frac{6,30,000}{100-10(\text { Discount })}\)
= \(\frac{6,30,000}{90}\)
= 7,000 debentures.
Question 6.
Extracts of Receipts and Payments Account for the year ended March 31, 2018 are given below: Subscriptions
Additional Information:
Total number of members: 230.
Annual membership fee: ₹ 875.
Subscriptions outstanding on April 1, 2017: ₹ 19,250.
Find out Income from Subscription during the year.
OR
Extracts of Receipts and Payments Account for the year ended March 31, 2018 are given below:
Calculate the amount of subscriptions to be shown on the income side of Income and Expenditure A/c and show the relevant data in the balance sheet as at 31st March, 2017 and 2018.
Answer:
Subscription amount for the year = 230 × 875 = ₹ 2,01,250
Working Note:
Subscription for 2017-18 = 1,87,250
Subscription due for 2017-18 = 2,01,250
Outstanding amount for the current year = 2,01,250 – 1,87,250
= 14,000
OR
Note: Total subscriptions outstanding on 31st March, 2018 are ₹ 12,000. This include ₹ 2,000 (i.e., ₹ 5,000 – ₹ 3,000) for subscription still outstanding for 2016-2017. Hence, the subscription outstanding for 2017 – 2018 are ₹ 10,000 (i.e., 12,000 – ₹ 2,000).
Question 7.
AK and HK were partners in a firm. They decided to dissolve their firm. Pass necessary journal entries to the following after various assets (other than cash and bank) third party liabilities have been transferred to Realisation Account:
(i) There was furniture worth ₹ 50,000. AK took over 50% of the Furniture at 10% discount and the remaining Furniture was sold at 30% profit on book value.
(ii) Profit and Loss Account was showing a credit balance of ₹ 15,000 which was distributed between the partners.
(iii) HK’s Loan of ₹ 6,000 was discharged at ₹ 6,200.
(iv) There was a bill for ₹ 1,200 under discount. The bill was received from SK who proved insolvent and a first and final dividend of 25% was received from his estate.
OR
Kumar, Shyam, and Ratan were partners in a firm sharing profits in the ratio of 5 : 3 : 2, respectively. They decided to dissolve the firm with effect from 1st April, 2013. On that date, the Balance Sheet of the firm was as follows Balance Sheet as on 1st A aril, 2013
The dissolution resulted in the following:
(i) Kumar took over plant of ₹ 40,000 at an agreed value of ₹ 45,000 and remaining plant realised ₹ 50,000.
(ii) Furniture realised ₹ 40,000.
(iii) Shyam took over the motor van for ₹ 30,000.
(iv) Debtors realised ₹ 1,000 less.
(v) Creditors for ₹ 20,000 were untraceable, and the remaining creditors were paid in full.
Realisation expenses amounted to ₹ 5,000.
Prepare the Realisation Account, Capital Accounts of Partners and Bank Account of the firm.
Answer:
OR
Working Notes:
Loss on Realisation = 1,000
Loss on Realisation transferred to Kumar’s Capital Account = 1,000 × \(\frac{5}{10}\) = ₹ 500
Loss on Realisation transferred to Shyam’s Capital Account = 1,000 × \(\frac{3}{10}\) = ₹ 300
Loss on Realisation transferred to Ratan’s Capital Account = 1,000 × \(\frac{2}{10}\) = ₹ 200
2. Creditors = ₹ 1,20,000
Out of which ₹ 20,000 were untraceable
So, the creditors were paid in full settlement amounting 1,20,000 – 20,000 = ₹ 1,00,000
Question 8.
O.P. Limited engaged in infrastructure business with registered office in Mumbai was incorporated on 1st April, 2015. With an aim to penetrate their roots in other cities, O.P Limited purchased the running business of Karishma Builders Limited having business in Pune, Bhiwandi and Shirwal for a sum of ₹ 60,00,000.
The assets and liabilities of Karishma Builders consisted of the following:
Land – ₹ 28,00,000
Buildings – ₹ 24,00,000
Stock-in-Trade – ₹ 8,00,000
Sundry Debtors – ₹ 12,00,000
Sundry Creditors – ₹ 8,00,000
O. P. Limited issued a cheque of ₹ 12,00,000 and for the balance amount issued 9% Debentures of ₹ 100 each at par, redeemable after 6 years at par for the sum due to Karishma Builders Limited.
You are required to answer the following questions:
(1) Calculate the amount to be transferred to Capital Reserve Account.
(2) Pass journal entry to be passed at the time of purchase of business of Karishma Builders Limited.
(3) Calculate the number of debentures issued to Karishma Builders Limited.
(4) Pass journal entry for the allotment of debentures.
(5) Calculate the amount of annual fixed obligation associated with debentures issued to Karishma Builders Limited.
Answer:
(iii) Amount paid through Cheque = ₹ ?12,00,000
Amount paid through Debentures = ₹ 60,00,000 – ₹ 12,00,000
= ₹ 48,00,000
Number of Debentures Issued to Karishma Builders Limited = \(\frac{\text { Amount Due }}{\text { Issue Price }}\)
= \(\frac{₹ 48,00,000}{₹ 100}\)
= ₹ 48,000
(v) Interest on 9% Debentures = ₹ 48,00,000 x \(\frac{9}{100}\) = ₹ 4,32,000
Question 9.
Following is the Receipts and Payments Account of Club for the year ended 31.03.2020:
Other additional information is provided:
(a) On 31st March, 2020 Subscription outstanding was ₹ 680 and on 31sf March, 2019 Subscription outstanding was ₹ 1,020. Salary outstanding on 31st March, 2020 was ₹ 5,100.
(b) On 1st April, 2020 the club had Building ₹ 25,500, Furniture ₹ 6,120, 12% Investments ₹ 10,200 and Sports Equipment ₹ 10,200. Depreciation charged on these items including purchases was 10%.
(c) Prepare the Income and Expenditure Account of the Club for the year ended 31st March, 2020 and ascertain the Capital Fund on 31st March, 2019.
Answer:
Part B
(Analysis of Financial Statements)
Question 10.
State whether the following transactions will result in inflow, outflow or no flow of cash while preparing cash flow statement:
(i) Income Tax ₹ 15,640 was paid during the year.
(ii) Fixed Assets with a book value of ₹ 1,08,000 were sold at ₹ 67,500.
Answer:
(i) Income Tax ₹ 15,640 was paid during the year will result in outflow of cash in Cash Flow Statement.
(ii) Fixed Assets with a book value of ₹ 1, 08,000 were sold at ₹ 67,500 will result in inflow of cash in Cash Flow Statement.
Question 11.
Prepare Comparative Statement of Profit & Loss from the following Information:
| Particulars | 31st March, 2016 (₹) | 31st March, 2015 (₹) |
| Revenue from operation | 16,00,000 | 10,00,000 |
| Cost of material consumed | 70% of revenue from operations | 70% of revenue from operations |
| Other expenses | 5% of revenue from operations | 5% of revenue from operations |
| Rate of tax | 50% | 50% |
OR
From the following data, prepare a Common Size Balance Sheet of Vinod Limited:
| Particulars | 31st March, 2018 (₹) | 31st March, 2017 (₹) |
| Share Capital | 3,00,000 | 2,40,000 |
| Reserves and Surplus | 80,000 | 70,000 |
| Trade Payables | 1,00,000 | 1,10,000 |
| Trade Receivables | 1,90,000 | 1,80,000 |
| Short-term Provision | 40,000 | 15,000 |
| Fixed Assets | 2,90,000 | 2,30,000 |
| Long-term Provision | 80,000 | 65,000 |
| Current Investments | 10,000 | 8,000 |
| Inventory | 1,01,000 | 72,000 |
| Cash and Cash Equivalents | 9,000 | 10,000 |
Answer:
OR
Question 12.
Following is the Balance Sheet of Vinod Ltd. as on 31st March, 2018.
Notes to Accounts:
Prepare a Cash Flow Statement after taking into account the following adjustment:
(i) During the year, a piece of machinery costing ?80,000 on which depreciation was ₹ 60,000, was sold for ₹ 18,000.
(ii) Tax paid during the year ₹ 60,000.
(iii) Debentures were issued on 1st July, 2017.
Answer:
Working Notes:
