MBOSE Class 12 Question Paper 2021 for Accountancy

Total No. of Printed Pages—19
HS/XII/Com/Ac/NC/21

2021

ACCOUNTANCY
(Commerce)

( New Course )

Full Marks : 80
Time : 3 hours

The figures in the margin indicate full marks for the questions

General Instructions :
(i) This question paper contains two Parts—A and B.
(ii) Part—A and Part—B are compulsory for all candidates.
(iii) All parts of the questions should be attempted at one
place.

PART—A
( Accounting for Not-for-Profit Organizations,
Partnership Firms and Companies )
( Marks : 60 )
1. Choose and write the correct answer (any seven) : 1×7=7
(a) Life membership fee is

(i) liability

(ii) income

(iii) expense

(iv) earned income

/126 [ P.T.O.

( 2 )

(b) Income and Expenditure Account is

(i) Personal Account

(ii) Real Account

(iii) Nominal Account

(iv) Profit and Loss Account

(c) In the absence of partnership deed, interest on loan
of a partner is allowed

(i) at 8% p.a.

(ii) at 6% p.a.

(iii) No interest is allowed

(iv) at 12% p.a.

(d) Goodwill of the firm on the basis of 2 years purchase
of average profit of the last 3 years is R 25,000. Find
average profit.

(i) R 50,000

(ii) R 25,000

(iii) R 10,000

(iv) R 12,500

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 3 )

(e) A, B and C are partners sharing profits in the ratio
of 4 : 3 : 2. D is admitted for 13 rd share in future
profits. What is the sacrificing ratio?

(i) 4 : 3 : 2

(ii) 1 : 1 : 1

(iii) 2 : 3 : 4

(iv) 5 : 4 : 3

(f) Goodwill already appearing in the Balance Sheet at
the time of admission of a partner is transferred to

(i) New Partner’s Capital Account

(ii) Old Partner’s Capital Account

(iii) Revaluation Account

(iv) None of the above

(g) Profit or loss on Revaluation Account is transferred
to

(i) Old Partner’s Capital Account

(ii) New Partner’s Capital Account

(iii) All Partners’ Capital Account

(iv) Continuing Partners’ Capital Account

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( 4 )

(h) Right issue of shares is issued to

(i) directors

(ii) employees

(iii) existing shareholders

(iv) public

(i) Capital Reserve is formed if shares are

(i) issued

(ii) forfeited

(iii) forfeited and reissued

(iv) All of the above cases

(j) Debenture is a certificate

(i) issued by the managing director

(ii) issued by the company

(iii) issued by the banker of the company

(iv) issued to the trade creditors

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 5 )

2. Answer the following questions (any seven) : 1×7=7

(a) Explain the term ‘redemption of debentures’.

(b) Name any two types of debentures.

(c) What is meant by authorized capital of a company?

(d) Give the meaning of ‘forfeiture of shares’.

(e) What is Employees Stock Option Plan?

(f) What is sacrificing ratio?

(g) What is Partnership Deed?

(h) What is meant by reconstitution of partnership firm?

(i) What is Revaluation Account?

(j) State the two rights that a newly admitted partner
acquires in the firm.

3. Calculate the amount of expenses to be debited to
Income and Expenditure Account ending 31st March,
2019 : 3
R
Expenses outstanding on 1st April, 2018 350
Expenses outstanding on 31st March, 2019 600
Expenses prepaid on 31st March, 2019 720
Expenses prepaid on 1st April, 2018 540
Expenses paid in cash during 2018–2019 2,450

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( 6 )

Or

From the following information, show the amount that
will appear in Income and Expenditure Account in
respect of ‘stationery’ on 31st March, 2019 :
R

Stock of stationery on 1st April, 2018 6,000
Stock of stationery on 31st March, 2019 1,000
Creditors for stationery on 1st April, 2018 4,000
Creditors for stationery on 31st March, 2019 2,600

Amount paid for stationery during the year 21,600

4. M Ltd. forfeited 2000 equity shares of R 10 each issued at
a premium of R 5 per share held by Ram for non-payment
of the final call of R 3 per share. Of these, 100 shares were
reissued to Vishu at R 6 per share.
Pass necessary Journal Entries for forfeiture and its
reissue. 3

5. J and K are partners in a firm. Their capitals are
J—R 3,00,000 and K—R 2,00,000. During the year ended
31st March, 2019, the firm earned a profit of R 1,50,000.
Assuming that the normal rate of return is 20%,
calculate the value of goodwill of the firm—

(a) by capitalization method;

(b) by superprofit method if the goodwill is valued at 2
years purchase of superprofits. 4

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 7 )

6. A and B entered into a partnership on 1st April, 2019.
They contributed R 1,00,000 and R 2,00,000 respectively
and agreed that—

(i) interest on capital should be allowed at 10% p.a.

(ii) A must receive a salary of R 20,000 p.a. and B
R 30,000 p.a.

The profits for the year amounted to R 1,20,000 which are
to be shared equally amongst the partners. Interest on
drawings amounted to R 3,000 for A and R 4,500 for B.
Prepare Profit and Loss Appropriation Account. 4

7. Pass the necessary Journal Entries for issue of 8000,
8% debentures of R100 each in the following cases : 4

(i) Issued at a discount of 5% and redeemable at a
premium of 4%

(ii) Issued at a premium of 10% and redeemable at a
premium of 5%

Or

Arun Ltd. purchased an established business for
R 8,00,000 payable as R 2,60,000 in cash and the balance
by issue of 12% debentures of R 100 each at a discount
of 10%.

Journalize the above transactions in the books of
purchasing company (Arun Ltd).

HS/XII/Com/Ac/NC/21/126 [ P.T.O.

( 8 )

8. Following is the Receipts and Payments Account of Delhi
Charitable Trust for the year ending 31st December,
2019 :

Receipts & Payments Account of Delhi Charitable Trust
for the year ending on 31st December, 2019

Receipts R Payments R
To Cash in Hand 11,500 By Charity 11,500

” Cash at Bank 12,600 ” Rent and Taxes 3,200

” Donation 9,000 ” Salary 6,000

” Subscriptions 42,800 ” Printing 600

” Legacies 18,000 ” Postage 300

” Interest on Investment 4,500 ” Advertisement 4,500

” Sale of Old Newspapers 200 ” Insurance 2,000

” Furniture 21,600

” Investment 23,000

” Cash in Hand 9,900

” Cash at Bank 16,000
98,600 98,600

Additional Information :

(i) It was decided to treat one-third of the amount
received on account of donation as income

(ii) Insurance premium was paid in advance R 500

(iii) Interest on investment R 1,100 accrued was not
received

(iv) Rent R 600, salary R 900 and advertisement expenses
R 1,000 outstanding as on 31st December, 2019
Prepare Income and Expenditure Account. 6

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 9 )

Or

From the following information supplied by the
accountant of Lion Club for the year ended 31st March,
2019, prepare Income and Expenditure Account :

Receipts & Payments Account
for the year ended 31st March, 2019

Receipts R Payments R
To Balance b/d 10,000 By Investments @ 8% p.a.
” Subscriptions : on 1st Oct., 2018 10,000
2018-2019 18,000 ” Furniture 5,400
2019-2020 500 ” Salaries 4,500
” Entrance Fee 350 ” Stationery 1,200
” Income from ” Electric Charges 2,400
Entertainment 3,400 ” Balance c/d 8,900
” Sale of Old
Newspapers 150
32,400 32,400

Additional Information :

(i) The Club has 400 members each paying an annual
subscription of R 50. Subscriptions still outstanding
for 2017–2018 R 200

(ii) Stock of stationery on 31st March, 2018 R 780 and
on 31st March, 2019 R 860

(iii) On 1st April, 2018, premises were R 16,000.
Depreciation on premises and furniture to be
charged @ 5% and 10% p.a. respectively

HS/XII/Com/Ac/NC/21/126 [ P.T.O.

( 10 )

9. Sharma, Verma and Gupta were partners sharing profits
and losses in the ratio of 3 : 2 : 1 respectively. Their
Balance Sheet as on 30th June, 2019 stood as follows :
Liabilities R Assets R
Sundry Creditors 21,500 Cash 1,000
Loan 21,500 Stock 25,000
Capitals : Debtors 18,000
Sharma 6,000 Furniture 5,000
Verma 5,000 Machinery 8,000
Gupta 3,000
57,000 57,000

The firm was dissolved on the above date. The fixed assets
realized R 2,000. Whereas stock and debtors realized
R 33,000 in all. The expenses on dissolution were R 600.
Prepare Realization Account, Partners’ Capital Accounts
and Cash Account. 6
Or

X, Y and Z carrying on business as a partnership firm
decided to dissolve the firm on 30th June, 2019 when
their Balance Sheet was as follows :
Liabilities R Assets R
Creditors 34,000 Cash 25,000
Capitals : Debtors 62,000
X 1,20,000 Stock 37,000
Y 90,000 Tools 8,000
Z 60,000 Car 12,000
Machinery 60,000
Buildings 1,00,000
3,04,000 3,04,000

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 11 )

The partnership deed provided that profits will be divided
in the ratio of 3 : 2 : 1 respectively among X, Y and Z.
Assets realized as under :
R
Stock 40,000
Machinery 78,000
Car 25,000
Debtors 59,000
Tools 5,000
Buildings 84,000
Goodwill 60,000

Creditors were settled at a discount of R 720.
There was an unrecorded asset valued at R 3,000 which
was handed over to X for R 2,000.
Prepare Realization Account, Partners’ Capital Accounts
and Cash A/c.

10. The Balance Sheet of A and B as on 31st March, 2019
is given below :

Liabilities R Assets R

A’s Capital 60,000 Freehold Property 20,000
B’s Capital 30,000 Furniture 6,000
General Reserve 24,000 Stock 12,000
Creditors 16,000 Debtors 80,000
Cash 12,000
1,30,000 1,30,000

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( 12 )

A and B share profits and losses in the ratio of 2 : 1.
They agree to admit P into the firm subject to the
following terms and conditions :
(i) P will bring in R 21,000 of which R 9,000 will be
treated as his share of goodwill to be retained in the
business

(ii) P will be entitled to 14 th share of profits of the firm

(iii) A provision for doubtful debts is to be created at 3%
of the debtors
(iv) Furniture is to be depreciated by 5%
(v) Stock is to be revalued at R 10,500

Prepare Revaluation Account and Capital Accounts of the
new firm. 8

Or

A, B and C were partners sharing profits in the
proportions of 12 , 13 and 16 respectively. The Balance
Sheet of the firm on 31st March, 2019 was as follows :

Liabilities R Assets R

Sundry Creditors 12,600 Cash at Bank 4,100
Provident Fund 3,000 Debtors 30,000
Reserve Fund 9,000 Less : Provisons 1,000 29,000
Capitals : Stock 25,000
A 40,000 Investments 10,000
B 36,500 Patents 5,000
C 20,000 Plant and Machinery 48,000
1,21,100 1,21,100

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 13 )

C retired on the above mentioned date on the following
terms :
(i) Goodwill of the firm was valued at R 27,000 but it
was not to remain in the books of the new firm
(ii) Value of the patents was to be reduced by 20% and
that of Plant and Machinery by 10%
(iii) Provision for doubtful debts was to be raised to 6%
(iv) C took over the investments at a value of R 15,800
(v) Liability on account of Provident Fund was only
R 2,500
Prepare Revaluation Account and Partners’ Capital
Accounts.

11. Mysore Lamp Ltd. invited the public to subscribe 10000
equity shares of R 100 each at a premium of R 10 per
share payable on allotment. Payments were to be made
as follows :
On application — R 20
On allotment — R 40
On first call — R 30
On final call — R 20
Applications were received for 13000 shares,
applications for 2000 shares were rejected. Allotment
was made proportionately to the remaining applicants.
Both the calls were made and all the money were
received except the final call on 300 shares which were
forfeited after due notice. Later 200 shares of the
forfeited shares were reissued as fully paid at R 85 per
share.
Pass Journal Entries in the books of the company. 8

HS/XII/Com/Ac/NC/21/126 [ P.T.O.

( 14 )

Or

Famous Company Ltd. issued 6000 equity shares of R 10
each at a premium of R 2 per share payable as follows :

On application R 3 per share

On allotment R 5 per share including premium

On first and final call R 4 per share

Subscriptions were received for 10000 shares. The
excess money was refunded and the allotment money
was received in full. In due course, the first and final call
was made and the amount due was received with the
exception of 200 shares.

These 200 shares were forfeited and 50 of the forfeited
shares were subsequently reissued as fully paid for a
consideration of R 6 per share.

Pass necessary Journal Entries in the books of the
company recording the above transactions.

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 15 )

PART—B
( Analysis of Financial Statements )
( Marks : 20 )

12. Choose and write the correct answer (any three) : 1×3=3

(a) Which ratios measures the velocity of conversion of
stock into sales?
(i) Working capital turnover ratio
(ii) Current ratio
(iii) Inventory turnover ratio
(iv) Liquid ratio

(b) Amount from current assets is realized within
(i) 1 month
(ii) 1 year
(iii) 2 years
(iv) 3 years

(c) Cash proceeds from issue of preference shares will
be shown in Cash Flow Statement under
(i) operating activities
(ii) investing activities
(iii) financing activities
(iv) None of the above

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( 16 )

(d) Cash flow from operating activities is derived from
the _____ of the enterprise.

(i) marketing activities

(ii) transactions within cash and bank

(iii) investing activities

(iv) principal revenue producing activities

13. Give the formula for calculating return on investment. 1

14. Compare current ratio and liquid ratio (any one point). 1

15. Give the meaning of ‘Cash Flow Statement’. 1

Or

List any two investing activities which will result in out
flow of cash.

16. From the following statement of profit and loss of Ferox
Ltd. for the year ended 31st March, 2018 and 2019,
prepare a comparative statement of profit and loss : 4

Particulars 2019 2018
R R
Revenue from operations 8,00,000 6,00,000
Other incomes 1,00,000 50,000
Expenses 5,00,000 4,00,000
Rate of income tax was 40%.

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 17 )

17. A firm has current ratio of 4 : 1 and quick ratio of 2·5 : 1.
Assuming inventories are R 22,500, find out total current
assets and total current liabilities. 4
Or
Calculate Stock Turnover Ratio from the following
information :
R
Opening Stock 29,000
Closing Stock 31,000
Sales 3,20,000
Gross Profit Ratio 25% on sales.

18. Following are the Balance Sheets of Dhara Ltd. as at
31st March, 2018 and 2019 :
Particulars 31.03.2019 31.03.2018
R R
I. Equity and Liabilities
1. Shareholders’ Fund :
(a) Share Capital 30,00,000 28,00,000
(b) Reserves and Surplus 5,00,000 2,20,000
(Profit and Loss Balance)

2. Non-current Liabilities :
Long-term Borrowings 4,00,000 2,50,000

3. Current Liabilities :
(a) Short-term Borrowings 24,000 20,000
(Bank Overdraft)
(b) Trade Payables 30,000 1,66,000
(c) Short-term Provisions 36,000 22,000
(Provision for Tax)
39,90,000 34,78,000

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( 18 )

Particulars 31.03.2019 31.03.2018
R R
II. Assets
1. Non-current Assets :
Fixed Assets :
(a) Tangible Assets :
Machinery 40,00,000 34,00,000
Less : Accumulated Depreciation (2,80,000) (1,80,000)
37,20,000 32,20,000
(b) Intangible Assets :
Patents 1,00,000 60,000
2. Current Assets :
(a) Current Investments 16,000 10,000
(b) Inventories 74,000 1,18,000
(c) Trade Receivables 52,000 46,000
(d) Cash and Cash Equivalents 28,000 24,000

39,90,000 34,78,000
Additional Information :
(i) Tax paid during the year amounted to R 32,000
(ii) Machinery with a net book value of R 20,000
(Accumulated Depreciation R 80,000) was sold for
R 4,000
Prepare Cash Flow Statement. 6
Or
Following are the Balance Sheets of Anand Ltd. as at
31st March, 2018 and 31st March, 2019. Prepare Cash
Flow Statement :

Particulars 31.03.2019 31.03.2018
R R
I. Equity and Liabilities
1. Shareholders’ Fund :
(a) Share Capital 2,50,000 2,00,000
(b) Reserves and Surplus :
(i) Surplus, i.e., Profit & Loss balance 30,600 30,500
(ii) General Reserve 60,000 50,000

HS/XII/Com/Ac/NC/21/126 [ Contd.

( 19 )

Particulars 31.03.2019 31.03.2018
R R
2. Non-current Liabilities :
Long-term Borrowings — 70,000

3. Current Liabilities :
(a) Trade Payables 1,35,200 1,50,000
(b) Short-term Provisions
(Provision for Tax) 35,000 30,000
5,10,800 5,30,500

II. Assets
1. Non-current Assets :
Fixed Assets :
(a) Tangible Assets :
(i) Land and Building 1,90,000 2,00,000
(ii) Plant and Machinery 1,69,000 1,50,000
(b) Intangible Assets :
Goodwill 5,000 —

2. Current Assets :
(a) Inventories 1,38,200 1,80,000
(b) Cash and Cash Equivalents 8,600 500

5,10,800 5,30,500

Depreciation provided during the year was R 40,000 on
Land and Building and R 30,000 on Plant and
Machinery.



HS/XII/Com/Ac/NC/21/126 11-21—3540

Total No. of Printed Pages—15
HS/XII/Com/Ac/OC/21

2021

ACCOUNTANCY

( Commerce )

( Old Course )

Full Marks : 80

Time : 3 hours

The figures in the margin indicate full marks for the questions

General Instructions :
(i) This question paper contains two Parts—A and B.
(ii) Part—A and Part—B are compulsory for all
candidates.
(iii) All parts of the questions should be attempted at one
place.

PART—A
( Accounting for Non-Profit Organizations,
Partnership Firms and Companies )
( Marks : 60 )
1. Choose and write the correct answer (any four) : 1×4=4
(a) Endowment Fund is
(i) liability
(ii) expense
(iii) income
(iv) asset

/127 [ P.T.O.

( 2 )

(b) In the absence of an agreement or partnership deed
among the partners, interest will be allowed to the
partners for loans advanced by them to the firm at
the rate of
(i) 5% p.a.
(ii) 6% p.a.
(iii) 4% p.a.
(iv) 10% p.a.

(c) In case of admission of a partner, the entry for
unrecorded investments will be
(i) Debit – Partners’ Capital Account
Credit – Investment Account
(ii) Debit – Revaluation Account
Credit – Investment Account
(iii) Debit – Investment Account
Credit – Partners’ Capital Account
(iv) Debit – Investment Account
Credit – Revaluation Account

(d) The profit on re-issue of forfeited shares is
transferred to
(i) Reserve Capital Account
(ii) Share Capital Account
(iii) Capital Reserve Account
(iv) Profit and Loss Account

HS/XII/Com/Ac/OC/21/127 [ Contd.

( 3 )

(e) Outstanding salary is

(i) asset

(ii) liability

(iii) income

(iv) outflow of cash

(f) Receipts and Payments Account is

(i) Real Account

(ii) Nominal Account

(iii) Personal Account

(iv) None of the above

(g) Life Membership Fee is

(i) liability

(ii) asset

(iii) revenue income

(iv) None of the above

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( 4 )

2. Answer the following questions : 1×4=4
(a) Write one feature of Receipts and Payments Account.

(b) What is guarantee of profit to a partner?

(c) What do you mean by weighted average profit
method of valuation of goodwill?

(d) Give one point of difference between Equity Share
and Preference Share.

3. What do you mean by ‘Not for Profit Organisations’?
Give two examples. 2

4. Average profit of a firm based on profits of the last 5
years is R 60,000. Its assets and liabilities are R 8,00,000
and R 3,50,000 respectively. Normal rate of return of the
industry in which the firm operates is 12%. Find out the
value of goodwill at 3 years’ purchase of super profit. 2

5. Why do we prepare Revaluation Account at the time of
Admission of a Partner? 2

6. Write the journal entry for issuing shares at a premium
which is included in allotment. 2

7. What is Profit & Loss Appropriation Account? Why
is it prepared? 2+1=3

8. Give three points of differences between Shares and
Debentures. 3

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( 5 )

9. X Ltd. forfeited 30 shares of R 10 each, R 7 called up,
on which Mahesh has paid application and allotment
money of R 5 per share. Of these, 25 shares were reissued
to Naresh as fully paid up at R 6 per share.
Pass Journal entries for the forfeiture and reissue of
shares in the books of X Ltd. 3

10. Write three uses of Securities Premium. 3

11. Prakash Ltd. purchased assets worth R 2,20,000 and
also took over the liabilities (creditors) of R 40,000 of
Ajay Ltd. for a purchase consideration of R 1,92,000.
Prakash Ltd. paid the purchase consideration by issuing
12% debentures of R 100 each at a premium of 20%.
Pass necessary journal entries in the books of
Prakash Ltd. 4
Or
Distinguish between a Joint Stock Company and a
Partnership firm (any four points).

12. VKR Ltd. issued 975; 9% Debentures of R 500 each on
4th March, 2016. Pass necessary journal entries for the
issue of debentures under the following situations : 4

(a) When debentures were issued at a premium of 10%,
redeemable at a premium of 6%.

(b) When debentures were issued at par, redeemable
at 9% premium.
Or
Define any four types of Debentures.

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( 6 )

13. Following is the Receipts and Payments Account
of Star Literacy Club for the year ended 31st March,
2019 :

Dr. Cr.
Receipts R Payments R
Balance b/d 19,550 Salary 3,000
Subscriptions : Newspapers 2,050
2017–2018 1,200 Electricity Bill 1,000
2018–2019 26,500 Fixed Deposit
2019–2020 500 28,200 (on 1.7.2018 @ 9% p.a.) 20,000
Sale of Old Books 10,600
Newspapers 1,250 Rent 6,800
Government Grants 10,000 Furniture 10,500
Sale of Old Furniture Balance c/d 11,200
(Book value R 7,000) 5,700
Interest on Fixed Deposits 450

65,150 65,150

Additional Information :

(i) Subscriptions outstandings were for 2017–2018—
R 2,000 and for 2018-2019—R 1,700.

(ii) On 31.03.2019, Salary outstanding was—R 600 and
Rent outstanding was—R 1,200.
Prepare Income and Expenditure A/c for the year ended
31st March, 2019. 6

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( 7 )

Or

From the following Receipts and Payments Account of a
Club, prepare Income and Expenditure Account for the
year ended December 31, 2018 :

Receipts & Payments A/c
for the year ended 31st December, 2018

Dr. Cr.
Receipts R Payments R

Balance b/d 3,500 General Expenses 900
Subscriptions : Salary 16,000
2017 2,000 Postage 1,300
2018 70,000 Electricity Charges 7,800
2019 3,000 75,000 Furniture 26,500
Sale of Old Books Books 13,000
(Costing R 3,200) 2,000 Newspapers 600
Rent from use of a Hall 17,000 Meeting Expenses 7,200
Sale of Old Newspapers 400 TV Sets 16,000
Profit from Entertainment 7,300 Balance c/d 15,900

1,05,200 1,05,200

Additional Information :

(i) The Club has 100 members each paying an annual
subscription of R 900. Subscriptions outstanding on
December 31, 2017 were R 3,800.

(ii) On December 31, 2018, salary outstanding amounted
to R 1,000; salary paid included R 1,000 for the
year 2017.

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( 8 )

14. Excel Limited issued 1,00,000 shares of R 10 each at par
through public subscription. The amount was payable as
follows :
On application—R 2
On allotment—R 4
On first call—R 3
On second and final call—R 1

Entire shares were subscribed and allotted. All the
shareholders paid up to allotment. The company made
first call and a shareholder holding 2000 shares could
not pay the amount of first call. The company did not
make the second call. Directors decided to forfeit these
shares. After the forfeiture, the company reissued 1000
of the forfeited shares at R 12 fully paid up.

Pass necessary Journal entries in the books of
Excel Limited. 6

Or

Avian Limited issued 50000 Equity Shares of R 50 each
at par. Amount payable was as follows :
On application—R 15
On allotment—R 25
On first and final call—R 10

All the shares were subscribed. Alaska holding 200
shares could not pay the amount due on first and final
call. Subsequently her shares were forfeited. In due
course, the forfeited shares were reissued at R 40 per
share as fully paid up.

Pass necessary Journal entries in the books of Avian
Limited.

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( 9 )

15. A and B share the profits of a business in the ratio of
5 : 3. They admit C, into the firm for 14 th share in the
profits to be contributed equally by A and B. On the date
of admission of C, the Balance Sheet of the firm was
as follows :

Balance Sheet of A and B
as on 31st March, 2019

Liabilities R Assets R
A’s Capital 40,000 Machinery 30,000
B’s Capital 30,000 Furniture 20,000
Workmen’s Stock 15,000
Compensation Reserve 4,000 Debtors 15,000
Creditors 2,000 Bank 6,000
Provident Fund 10,000

86,000 86,000

Terms of C’s admission were as follows :

(i) C will bring R 24,000 for his share of capital and
R 6,000 as share of goodwill.

(ii) Furniture is undervalued by R 12,000 and the value
of stock is reduced to R 13,000.

(iii) Provident Fund be raised by R 1,000.

(iv) Creditors are unrecorded to the extent of R 6,000.

Prepare Revaluation Account, Partners’ Capital Accounts
and the Balance Sheet of the new firm. 2+2+2=6

HS/XII/Com/Ac/OC/21/127 [ P.T.O.

( 10 )

Or
Ajit and Baljit share profits as 4 : 1. They admit
Charanjit for 1
5
th share in profits. Their Balance Sheet
as on March 31, 2018 was as follows :

Balance Sheet of Ajit and Baljit
as on 31st March, 2018

Liabilities R Assets R
Capital Accounts : Cash 15,000
Ajit 80,000 Debtors 40,000
Baljit 80,000 1,60,000 Stock 50,000
Creditors 1,00,000 Machinery 1,20,000
Furniture 35,000
2,60,000 2,60,000

The terms of admission were as follows :

(i) Charanjit was to bring in R 60,000 as capital and
R 15,000 as goodwill. Assume that the share of
goodwill had been fully withdrawn by the old
partners.

(ii) There was a claim for damage for R 1,000 not shown
in the Balance Sheet.

(iii) Depreciate machinery and furniture by 10%.

(iv) Provision for doubtful debts was to be created @ 5%
on debtors.

Prepare Revaluation Account, Partners’ Capital Accounts
and the Balance Sheet of the new firm. 2+2+2=6

HS/XII/Com/Ac/OC/21/127 [ Contd.

( 11 )

16. A, B and C were partners sharing profits in the ratio of
their capitals. B retired from the firm on 31st December,
2019 the date on which the Balance Sheet of the firm
was as follows :

Balance Sheet of A, B and C
as on 31st December, 2019

Liabilities R Assets R
Sundry Creditors 24,000 Cash 32,400
Bills Payable 18,000 Debtors 36,000
Capital Accounts : Less : Provision 2,400 33,600
A 1,80,000 Stock 60,000
B 1,44,000 Fixed Assets 3,48,000
C 1,08,000 4,32,000
4,74,000 4,74,000

The terms of retirement were :

(i) Fixed Assets appreciated by 20%

(ii) Stock depreciated by 10%

(iii) Goodwill of the firm was valued at R 72,000 and B’s
share was to be adjusted into the Capital Accounts
of A and C without opening Goodwill Account

(iv) New profit sharing ratio was decided as 3 : 2

Prepare Revaluation Account, Partners’ Capital Accounts
and the Balance Sheet after B’s retirement. 6

HS/XII/Com/Ac/OC/21/127 [ P.T.O.

( 12 )

Or
P, Q and R were partners sharing profits in the ratio of
2 : 2 : 1. Individual policies of R 50,000, R 30,000 and
R 20,000 on the lives of P, Q, and R respectively were
taken and premium paid was charged to Profit and Loss
Account (Prepared on 31st December each year).
R died on 31st March, 2018. On that date, surrender
values were 50% of the amount of policies. Under the
partnership deed the executors of deceased partners
were entitled to :

(i) His capital as per last Balance Sheet

(ii) Interest on capital @ 10% to the date of death

(iii) His share of profit to the date of death, calculated on
the basis of last year’s profit

(iv) His share of insurance money

(v) Interest on drawings is to be charged at an average
rate of 6% irrespective of the period

R’s capital on 31st December, 2017 stood at R 80,000
and his drawings from that date to the date of his death
were R 14,000. Last year’s profit was R 40,000 (for the
year ended 31st December, 2017).

Prepare R’s Capital Account, R’s Executor’s Account
and also show the necessary workings.

HS/XII/Com/Ac/OC/21/127 [ Contd.

( 13 )

PART—B
( Financial Statement Analysis )
( Marks : 20 )

17. Choose and write the correct answer : 1×2=2
(a) An example of cash flow from investing activities is
(i) payment of dividend
(ii) issue of debentures
(iii) payment of income tax
(iv) purchase of machinery

(b) Ideal Liquid Ratio is
(i) 1 : 1
(ii) 2 : 1
(iii) 1 : 2
(iv) 3 : 1

18. (a) Give the formula of Debt-Equity Ratio. 1
(b) What are ‘Cash Equivalents’ for the purpose of
preparing Cashflow Statement? 1

19. List three tools for analysing financial statements. 3

20. What is Return on Investment (ROI)? How is it
calculated? 2+1=3

21. From the following information, calculate—
(a) Current Ratio;
(b) Quick Ratio;

HS/XII/Com/Ac/OC/21/127 [ P.T.O.

( 14 )

(c) Debt-Equity Ratio;
(d) Proprietary Ratio : 4
Information R
Inventory 30,000
Prepaid Expenses 2,000
Liquid Assets 50,000
Current Liabilities 40,000
12% Debentures 30,000
Profit and Loss Balance 10,000
Equity Share Capital 1,00,000
Long-term Investments 15,000
Fixed Assets 83,000

22. Calculate Cash Flow from operating activities from the
following information : 6
Statement of Profit and Loss
for the year ended 31st March, 2019

Particulars R
I. Revenue from Operations 3,00,000
II. Other Incomes :
Interest received 4,000
Profit on sale of machinery 6,000 10,000
III. Total Revenue 3,10,000
IV. Expenses :
Cost of Materials Consumed 2,00,000
Employees Benefit Expenses 30,000
Depreciation 10,000
Goodwill written off 5,000
Office Expenses 3,000
Loss on Sale of Furniture 5,000
Total Expenses 2,53,000
V. Profit before Tax 57,000
Less : Tax Paid 17,100
VI. Profit after Tax 39,900

HS/XII/Com/Ac/OC/21/127 [ Contd.

( 15 )

Or
Prepare a Cashflow Statement from the following
Balance Sheet :

Particulars Note 31.03.2019 31.03.2018
No. R R
I. Equity and Liabilities :
1. Shareholders’ Funds :
(a) Share Capital 10,50,000 8,00,000
(b) Reserve and Surplus 3,00,000 1,80,000
2. Non-Current Liabilities :
Long-term Borrowings 3,80,000 2,00,000
3. Current Liabilities :
Trade Payable 60,000 75,000

Total 17,90,000 12,55,000

Particulars Note 31.03.2019 31.03.2018
No. R R
II. Assets
1. Non-current Assets :
Fixed Assets :
Tangible Assets 10,00,000 8,00,000
2. Current Assets :
(a) Inventories 5,00,000 3,05,000
(b) Trade Receivables 1,70,000 1,00,000
(c) Cash and Cash Equivalents 1,20,000 50,000

Total 17,90,000 12,55,000
Adjustments :
(i) A tangible asset of the book value of R 50,000 was
sold for R 40,000 during the year
(ii) Depreciation provided on tangible assets during the
year was R 1,50,000


HS/XII/Com/Ac/OC/21/127 11-21—940