CBSE Board Class 12 Accountancy Previous Year Question Papers 2008

Previous Paper – 2008
Class – XII
Subject – Accountancy

Time Allowed: 3 Hrs.      Maximum Marks: 80
General instructions:-
           (1)This question paper is divided in two parts.
           (2)All parts of a question should be solved at one place
           (3)Marks of each question is indicated against the question

PART-A  Accounting for not-for profit organization,partnership and company   (60 MARKS)
1. What is the nature of ‘Donations for Construction of Building’ and where it will be recorded in case of a not-
        for profit organisation?                                                                                                                                              (1)

2.A, B and C sharing profits in the ratio 3:2:1.From 1st January 2011,they decided to share profits equally.
       Goodwill is valued at Rs. 60,000. Give journal entry that shall be passed consequent upon such change. (1)                                                                              

3.State  main rights of a minor partner.                                                                                                                    (1)      
4.If super profits are Rs. 1,500 and rate of return is 15%, state the Goodwill on the basis of capitalizing the super profits.                                                              (1)

5.Tikona Ltd. redeemed its 200, 12% Debentures of Rs. 100 each out of profit .What should be the amount transferred to Debenture Redemption Reserve A/c ?                                                                        (1)

6.How will you deal with the following while preparing final accounts for the year ended 31st March, 2011 of New Indo Club:
Tournament fund as on 1st April, 2010 Rs. 20,000. Tournament Expenses incurred Rs. 8,000 during the year 2010-11. Donation received for Tournament Fund during the year 2010-11 Rs. 3,000. 9% Tournament Investment as on 1st  April , 2010 Rs. 15,000. Interest received during the year 2010-11 on Tournament Fund Investment Rs. 1,000.On 31st March,2011 Investments costing 2,000 was sold at 25% profit.                   (3)
7.X Ltd. Forfeited 100 shares of Rs. 10 each, issued at 1 %  discount  to Rehman on which he had paid Rs. 3 per share. Calls of Rs. 3 were yet to be made. Out of these 75 shares were reissued for Rs. 6 per share as Rs. 7 called up. Pass the necessary journal entries in the books of the company.                                           (3)

8.A Ltd. purchase Building worth Rs. 1,40,000, Machinery worth Rs. 1,20,000 and Stock for Rs. 40,000 from B Ltd. and took over liabilities of Rs. 35,000 for a purchase consideration of Rs. 3,30,000. A Ltd. paid the purchase consideration by issuing 10 % Debentures of Rs. 100 each at a premium of 10%. Record necessary Journal Entries.                                                                                                                   (3)

9.A, B and C were partners in a firm. During the year 2011, they realized that they have omitted to provide for interest on their fixed capitals for 3 years @ 10% p.a. which was necessary as per deed. Their fixed capitals were: A – Rs. 50,000; B – Rs. 40,000 and C – Rs. 30,000. Their profit sharing ratios were 2008 – 2:2:1, 2009 – 6:5:4, 2010 – 5:3:2. Pass necessary journal entry to rectify the above omission.          (4)

10. A, B and C are partners sharing profits of 2:2:1. They closed their books on 31st December, each year. A died on 28th February 2011 when their Balance Sheet was as follows:                                                          (4)
Liabilities
Rs.
Assets
Rs.
Creditors
3,790
Cash
20,000
General Reserve
3,600
Sundry Debtors
7,500
Profit for two months (Before Interest & Salaries)
3,110
Loan to A
4,000
Capitals: A             10,000
                B                6,000
                C                5,000

21,000

31,500

31,500

According to partnership deed:
i)Interest on capital is allowed @ 6% p.a. A and B are entitled to salaries at Rs. 300 and Rs. 250 p.m.
ii)In the event of death of a partner Goodwill was to be valued at 2 years purchase of the average net profits
                of 3 completed years preceding death. The net profits for the year 2008, 2009 and 2010 were Rs. 5,500,       
                Rs. 4,800 and Rs. 6,500 respectively.
A’s share was paid to his executors. B and C continued the firm. Prepare Profit and Loss Appropriation Account and Partner’s Capital Account .     

11.Show by the means of journal entries the following cases :                                                                                 (4)
i)X Ltd. issued 25,000, 12% Debentures of Rs. 100 each at par redeemable at par.
ii)Y Ltd. issued 50,000, 12% Debentures of Rs. 100 each at par redeemable at premium of 5%.
iii)Z Ltd. issued 20,000, 12% Debentures of Rs. 100 each at a premium of 3% redeemable at par.
iv)W Ltd. issued 5,000, 12% Debentures of Rs. 100 each at a premium of 10% redeemable at 15% a premium

12.From the following Receipts and payment account of Sharda Yoga Club, Bhopal, prepare the Income And Expenditure Account for the year ended on 31st March, 2011:
Receipts
Rs.
Payments
Rs.
To Balance b/d
18,000
By Printing & Stationery
9,820
To Subscriptions
      2009-10                     8,100
      2010-11               2,10,000
      2011-12                     2,500

2,20,600
By 10% Investments (Purchased on 1.10.2010)

10,000
To Donation for Building
42,000
By Salaries
1,20,000
To Miscellaneous Receipts
17,190
By Electricity
2,000
To Legacies
7,200
By Sundry Expenses
4,190
To Sale of old furniture (at book value)
6,000
By Entertainment Material (including Rs. 2,000 for 2009-10)
   58,200
To Receipts from Charity Show
55,000
By Office Expenses
7,820


By Mobile Phone Bills
2,600


By Advance for Construction of Building
15,000


By Interest Charges
1,200


By balance b/d
1,35,160

3,65,990

3,65,990

Additional information:
i)There were 110 members, each paying Rs. 2,100 as yearly subscriptions.
ii)On 31st March, 2011, Entertainment Material was valued at Rs. 26,120.
iii)Depreciation @ 20% was to be charged on Furniture, Computer & Printers and Mobile Phones.
iv)On 31st March, 2010 the Society has following Assets and Liabilities:
Assets: 10% Investments Rs. 1,10,000; Furniture Rs. 80,000; Musical Instruments Rs. 12,200; Computer & Printers Rs. 56,000; Mobile Phones Rs. 17,000; Subscription in arrears Rs. 16,000.
Liabilities: Creditors for entertainment material Rs. 5,000; Subscription received in advance
Rs. 2,100 and Building Fund Rs. 50,000.                                                                       (6)

13.(a) M Ltd. Give a notice of its intension to redeem its outstanding 14% Debentures of Rs.10,00,000 at 5%    
      premium. However, an option to convert their holdings into 15% Preference shares of Rs. 25 each at Rs. 30  
      per share was also given. Debenture holders holding Debentures of Rs. 4,53,000 accepted the offer. 
      Journalize.
(b) On 1.1.2011, B Ltd. decided to redeem its 5% Debentures amounting to Rs. 35,000 of Rs. 100 each
      by purchase from the open market at Rs. 98.50 each . Give Journal entries.                                   (3+3)

14.P, Q and R were partners in a firm sharing profits and losses in the ratio of 2:1:1.They decided to dissolve the firm as on 31st December, 2011. P agreed to bear all realization expenses. For this service he was paid Rs. 100.  Following was the Balance Sheet as on that date:
Balance Sheet
Liabilities
Amount
Assets
Amount
Creditors
6,000
Bank
1,000
Bank overdraft
3,000
Debtors                  
3,000
P’s Capital a/c
10,000
Inventory
4,000
Q’s Capital a/c
5,000
Plant & Machinery
15,500
R’s Capital a/c
1,000
Land
1,500

25,000

25,000

Half of the Inventory realized Rs. 1,750. Plant And Machinery realized Rs. 11,000. Debtors realized Rs. 2,550. Remaining Inventory was taken over by Q at Rs. 1,200. Cost of realization was Rs. 150. There was a bill of Rs. 5,000 received from Mr. Ram Lal, Which was under discount. Mr. Ram Lal was adjudged insolvent and 60 paisa in a rupee was received from his estate. Show Realization A/c, Partners’ Capital A/c and Bank A/c.         (6)

15.The Balance Sheet of P And T who share profits and Losses in the ratio of 3:1, as at 31st March,  
            2011 was as follows:                                   (8)
Balance Sheet
Liabilities
Amount
Assets
Amount
Creditors
1,000
Cash
2,500
Workmen’s Compensation Reserve
4,000
Debtors                      6,000
Less: Provisions            500

5,500
Investment Fluctuation Reserve
1,000
Stock
2,000
General Reserve
2,000
Investments
6,000
P’s Capital a/c
6,000
Building
2,000
T’s Capital a/c
4,000
18,000
18,000

On 1.04.11, K was admitted for 1/5th share on the following terms:
The market value of Investments is to be taken as Rs. 4,200.Unaccounted Accrued Income of Rs. 200 be    accounted for. A claim on account of Workmen’s Compensation for Rs. 1,000 be Provided for.
   Provision for bad debts was found to be excess by Rs. 200.
   K shall bring Rs. 2,000 as his share for goodwill and Rs. 5,000 for capital.
   That total capital of all partners of the new firm is agreed upon as Rs. 20,000 and the same were to be in  
   profit sharing ratio, adjustments to be made through partner’s current accounts.
   You are required to prepare Revaluation A/c, Partners’ Capital A/c and Balance Sheet of the firm.

16.XYZ Ltd. invited applications for 5,000 shares (20 % of Autorised Capital) of Rs. 25 each at  a premium of Rs. 5 per share payable as follows:
On Application Rs. 15 (including Rs. 2 as premium)
On Allotment   Rs. 10 (including balance premium)
On First and final call Rs.5
Applications were received for 7,500 shares and prorata allotment was made to applicants for 6,000 shares. Remaining applications were rejected.
Ravi, to whom 100 shares were allotted paid Rs.200 on  allotment but cleared his dues at the time of first and final call . Sahid, a holder of 150 shares failed to pay the first and final call and his shares were forfeited after the final call was made. 100 shares were reissued  at Rs.20 per share as fully paid. Journalize the above transactions and make Balance Sheet.                                                                                                                   (8)

PART-B Analysis of Financial Statement (20 MARKS)

17.List out two objectives of Financial Analysis.                                                                                                          (1)

18.How will you deal with interest paid on short-term loans while making Cash Flow Statement of an      Enterprise?                                                                                                                                                                   (1)

19.What is the difference  b/w Earning per share and Dividend per share?                                          (1)

20.Under what headings following items will appear in a company’s Balance Sheet as per schedule VI:                 (3)
a)Bills Payable    (d) Patents
b)Deposits with ICICI Bank  (e) Securities Premium
c)Underwriting Commission  (f) Stores & Spares

21.From the following information, prepare a Comparative Income Statement.                                                  (4)
Particulars
2009
2008
Sales
3,00,000
4,50,000
COGS
60% of Sales
70% of Sales
Indirect expenses
50% of Gross Profit
40% of Gross Profit
Income tax
50% of Net Profit
50% of Net Profit

22.From the following information calculate Debtor’s Turnover Ratio:                            (4)
Cash Sales is 20% of Credit Sales
Total Sales       Rs. 6,72,000
Debtors in the beginning of the year    Rs. 1,40,000
Excess of opening debtors over closing debtors                  Rs. 56,000

23. From the following  Balance Sheet of A Ltd. prepare Cash Flow Statement:                                       (6)
Liabilities
2010
2011
Assets
2010
2011
Equity Share Capital
3,00,000
4,00,000
Fixed Assets
4,00,000
5,50,000
P & L A/c
85,000
1,10,000
Stock
2,00,000
2,25,000
Bank Loan
1,00,000
75,000
Debtors
2,10,000
1,90,000
Accumulated Depreciation

80,000

1,35,000
Bills Receivables
80,000
1,10,000
Creditors
3,10,000
2,95,000
Bank
30,000
-
Proposed Dividend
45,000
60,000




9,20,000
10,75,000

9,20,000
10,75,000
Additional Information: A piece of Machinery costing Rs. 60,000 on which accumulated depreciation was Rs. 15,000 was sold for Rs. 30,000.