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Sample Paper – 2008

Class – XII
Subject – Accountancy

MM 80 TIME 3HRS

PART A
1. State any two items that appears in the debit Side of partner’s capital Account when the
capital is Fixed. 1
2. How is Donations dealt while preparing the financial statement of a not –for-profit
organization? 1
3. What is Reserve Capital? 1
4. Raja and Rama are partners in affirm sharing profit and loss in the ratio of 5:3.Rani is
admitted for 1/5 share in the profit which he acquires in the ratio of 3:2. Ascertain the
sacrificing ratio of the old partners. 1
5. Why are assets and liabilities revalued at the time of retirement of a partner. 1
6. Milky Ltd purchased Assets of Silky Ltd for RS 320000.A sum of Rs 130000 was paid in cash
and Rs 170000 equity shares were issued towards the full settlement of the balance. Pass
journal entries in the books of Purchasing Company. 3
7. Show how will you deal with the following items in respect of a Social Club for the year
ending on 31st March 2006 3
st
Tournament Fund Balance as on 31 march 2005 Rs72000
Grant towards tournament received during the year Rs 20000
Expenditure incurred during the year on conducting tournament Rs 45000
Tournament fund investment Rs 30000
Interest received on the tournament fund investment Rs 3000
8. Tata Ltd issued 8000 12% debentures of Rs 100 each at 8% discount. The debentures are
redeemable by drawing at lot as follows
1st Year nil; 2nd Year Rs 400000:3rd year Nil :4th year Rs 400000.
Calculate the discount to be written. 3
9. A and B carried on business in partnership since 2004 sharing profit and loss in the ratio of
2:1. They admitted C on 1st April 2007 for 1/6th share. The actual value of goodwill, however,
on that date was Rs 36000.C contributed the following assets towards payment of his capital
and goodwill.
Cash Rs 4000
Furniture Rs 10000
Stock Rs 12000
Pass necessary journal entries to give effect to the above. Also, give the new profit sharing
Ratio. 4
10. Dinesh and Suraj are partners sharing profit and loss in the ratio of 3:2 with capital of Rs
400000 and Rs 300000 respectively. Interest on capital agreed at 6%p.a.Suraj is allowed a
salary of Rs 3000 per month. During 2006 profit prior to Interest and salary amounts to Rs
232000.Manager is to be allowed a commission of 10% of the profit.
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Prepare an account showing the allocation of the profit. 4

11. Rolta Ltd forfeited 500 equity shares of Rs 10 each issued at a premium of 10%{payable on
allotment} for non payment of first call of Rs 2 and Final call of Rs 3 per share on 31st march
2004.300 forfeited shares were reissued as fully paid of Rs 8 per share and balance shares
were reissued at Rs 11 per share. Journalise. 4
12. a) A company issued 12% debentures of Rs 100 each for Rs 80000 at a discount of 3%
redeemable after 4 Years at a premium of !0%. Pass necessary journal entries for the issue of
debentures.
b) At the commencement of 2006 ,a company has outstanding 20000, 13% debentures of Rs
100 each. As per the term of redemption of 5000 debentures are to be redeemed in 2006
either by purchase from open market or drawing at lot. Directors decides to purchase 1500
own debentures at Rs 95 and 2500 debentures at Rs 98 for immediate cancellation.Asuming
that sufficient amount was available in Debenture Redemption Reserve Pass journal entries
for redemption of debentures. (2+4)
13. P,Q and R were partners in a firm sharing profit and loss in the ratio 3:2:1.Their particulars as
on 31st March 2006 was as follows 6
Capital = P- 20000,Q-30000 R- 15000.
Reserve Rs 36000
Goodwill –Rs 30000
Drawing P-Rs 6000;Q-Rs 4000 and R Rs 3000

On 1st July 2006 Q died . As per the terms of deed Executors of deceased partners entitled
for the following
a) Interest on capital @10% till the date of death.
b) His share of goodwill.
c) Share of profit till the date as per the profit average profit of last 3 years.
Profit for last 3 years was as 2004- Rs 20000, 2005 –Rs 32000 and 2006 Rs 38000.
Q’s Executors were paid RS 8000 immediately and remaining amount was transferred to his
executors loan Account.
14. From the following information, Receipt and Payment Account of Jain Society prepare
Income and Expenditure Account for the year ending 31st march 2004 and Balance Sheet as
on that date. 6

Receipt Amount Payment Amount

To balance b/d 12600 By Salaries 4100
To Subscription 16000 By Rent 1200
To sale of Investment 3600 By Stationery 500
To Sale of old furniture 300 By Defense Bond 6000
(Book value Rs 400) By Furniture purchased 800
To Donation 2500 By balance c/d 14400
35000 35000
Additional information
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a) Subscription of Rs 2400 is outstanding and Advance for 2005 Rs 1200 as on 31st

march 2004.
b) Donation received during the year is for construction of Temple
c) Furniture and investment as on 1st April 2003 was Rs 2000 and Rs 14000 respectively.
15. . Geeta Ltd issued 10,000 shares of Rs 50 each payable Rs 10 on application ,Rs 15 on allotment Rs 25
on first call and final call. In all 16,000 application were received, out of these application for ,4000
shares were rejected and allotment was made to the rest on pro rata basis. Every share holder paid the
money as and when due , except Sohan who was allotted 4000 shares and who did not paid allotment
money. His shares were forfeited after allotment .Final call was made after the forfeiture Forfeited
shares were reissued for Rs.35 per share as Rs.40 paid up .Give Journal Entries and prepare cash bo

OR
K limited has been registered with an authorized capital of Rs. 2,00,000 divided into 2,000 shares of Rs.
100 each of which 1,000 shares were offered for public subscription at a premium of Rs.5 share, payable as
under
On application 10
On allotment 25 (including premium)
On first, call 40
On final, call balance
Applications were received for 1,800 shares, of which applications for 300 shares
were rejected outright, the rest of applications were allotted 1,000 shares on pro-rata
basis. Excess Application money was transferred to allotment,
All the monies were duly received except from Sundar, holder of 100 shares, who
failed to pay allotment and first call money. His shares were later forfeited and reissued
to Shyam at Rs.60 per share, Rs 70 paid up. Final call has not been made. Pass
necessary Cash Book and Journal entries in the books of K limited.
16. A and B are partners sharing Profit and loss in the ratio of 5:3. On March 31st 2004 their
Balance Sheet was as follows:
Liabilities Amounts. Assets Amount
Capital Cash 18000
A 36000 Bills Receivable 14000
B 44000 80000 Stock 44000
Creditors 64000 Debtors 42000
Bills Payable 22000 Machinery 42000
General Reserve 14000 Investment 20000
180000 180000
They decided to admit C into the partnership on the following terms
i. Machinery is to be depreciated by 10%
ii. Stock is revalued at Rs 60000
iii. Investments are taken over by B at Rs 18000
iv. Outstanding rent is Rs 1000
v. C is to bring Rs 6000 as Goodwill and sufficient capital for a 2/5th share in the total
capital of the firm.
Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet of the new firm.
OR
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Following is the balance Sheet X , Y, and Z as on 31st March 2004 Who were sharing profit and loss in
the ratio of their Capitals. 8
Liabilities Rs Assets Rs
Creditors 40,000 Cash 36000
Bills Payable 12000 Debtors 50000
Provision for doubtful debt 6000 Stock 36000
General Reserve 24000 Furniture 60,000
Capital Account Machinery 100,000
X 80,000
Y 80,000
Z 40,000
282000 282000
Y retires on the above date on the following terms:
i. Provision for doubtful debts raised to Rs 8000
i. Outstanding claim for damages of Rs 2200 is to be provided.
ii. Creditors be reduced by Rs 12000
iii. Goodwill of the firm is valued at Rs 40000.
After the retirement of Y the entire capital of the firm was fixed at Rs 180000 and partners decided
to maintain it in their new profit sharing ratio of 3:2.
Prepare Revaluation A/c, Capital A/c and balance sheet of X and Y.
PART B (ANALYSIS OF FINANCIAL STATEMENT)
17. State with reason whether the operating ratio of a company will increase ,decrease or not
change due to sale of payment of wages. 1
18. How do we treat payment of interest and dividend while preparing cash flow statement.1
19. State the purpose of preparing cash flow Statement 1
20. Discuss the advantages of Analysis of financial Statement . 3
21. Prepare a Comparative Income Statement from the following 3
2000 2001
Gross Sales 120200 135800
Sales Return 20200 5800
Cost of goods sold 40% of net sales 50% of net sale
Operating Expanses 15000 14000
Income Tax 50% 50%

22. a) Current Ratio of a company is 4:3, working capital is Rs 80000.Calculate the amount of
current assets and current liabilities.
b) Calculate Proprietary Ratio from the following (2+2)

Closing Stock 60000

9% Preference Shares 400000
Security Premium 30000
General Reserve 10000
Other Current Assets 110000
Current Liabilities 180000
Fixed Assets ------------------------------------------------------------------------------------------------------- 350000
Operating Expenses www.cbseguess.com 25000
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23. From the following balance sheet of S ltd, prepare the Cash flow statement 6
Liabilities 2004 2003 Assets 2004 2003
Capital 200000 160000 Land & Building 150000 100000
Profit &loss A/c 20000 30000 Plant &Machinery 80000 60000
Creditors 50000 40000 Stock 20000 30000
Loan 40000 30000 Debtors 50000 60000
Cash 10000 10000
310000 260000 310000 260000
Additional Information
Depreciation provided during the year on plant amounted to Rs 10000.A machinery costing Rs 8000
(accumulated depreciation Rs 1200)sold for Rs 7000.
Dividend paid during the year was Rs 12000
Depreciation on building amounted to Rs 15000.

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