CBSE Board Class 12 Accountancy Previous Year Question Papers 2011

Previous Paper 2011
Accountancy     
Class 12

General instructions:
1. This question paper contains three parts A, B and C.
2. Part A is compulsory for all candidates.
3. Candidates can attempt only one part of the remaining parts B and C.
4. All parts of a question should be attempted at one place. 

PART - A

Q. 1. List any four features of partnership.         (2)

Q. 2. What is meant by preferential allotment of shares?        (2)

Q. 3. K Ltd. purchased building for Rs. 6, 60,000 from Z Ltd. Half the payment was made in cash and
for the remaining half K Ltd. issued equity shares of Rs. 100 each at a premium of 10% in favour of Z
Ltd. Pass the necessary journal entry only for the issue of equity shares.     (2)

Q. 4. Ekta Ltd. issued 60,000, 9% debentures of Rs. 100 each redeemable at a premium of 10% after
three years. Pass the necessary journal entries for the issue of 9% debentures.   (2)

Q. 5. Karim and Karan were partners in a firm sharing profits in 1: 4 ratios. Their fixed capitals were
Rs. 7, 00,000 and Rs. 21, 00,000 respectively. For the year ended 31.3.2005 interest on capital @ 12%
p.a. was omitted. Pass necessary adjustment entry for the same.      (3)

Q. 6. Explain any three types of debentures in brief.        (3)

Q. 7. Why is it necessary to revaluate the assets and reassess the liabilities on the reconstitution of a
partnership firm ? Give the necessary journal entries for increase in the value of assets and increase
in the value of liabilities at the time of revaluation.       (4)

Q. 8.  Gumnam Ltd. has 80,000, 8% debentures of Rs. 100 each due for redemption on March 31,
2006. Assume that Debenture Redemption Reserve has  a balance of Rs. 38, 00,000 on that date.
Record necessary entries at the time of redemption of debentures     (4)

Q. 9. On 31.3.2005 Janta Ltd. had the following balances in its ledger accounts:  Rs.7% Debentures Account
7%Debenture Redemption Reserve Fund
7 %Debentures Redemption Reserve Fund Investments 
3, 00,000
2, 00,000
2, 00,000 The annual contribution to 7% Debenture Redemption Reserve Fund was Rs. 47,000. On that date
the 7% Debenture Redemption Reserve Fund Investments were sold at 110% and the debentures
were redeemed. There was a bank balance of Rs. 4, 78,000 on that date before the sale of
investments. Prepare 7% Debenture Redemption Reserve Fund Account, Bank Account, 7%
Debentures Account and 7% Debenture Redemption Fund Investment A/c.    (4)

Q. 10. Mohan Limited forfeited the following equity shares of Rs. 10 each issued at a premium of Rs.
2 per share:
i. 700 shares issued to X for the non-payment of 2nd and final call of Rs. 3 per share.
ii. 500 shares issued to Z for the non-payment of 1st call of Rs. 2 per share and 2nd and final call
of Rs. 3 per share.
The forfeited shares were reissued to Y for Rs. 11 per share fully paid.
Pass entries to record the forfeiture and re-issue of shares.     (4)

Q. 11. X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 1 : 1 respectively. Record
necessary journal entries for the following transactions at the time of the dissolution of the firm: 
i. Realisation expenses amounting to Rs. 5,000 have to be borne by Mr. X, one of the partners.
ii. Deferred revenue advertising expenditure appeared at Rs. 50,000.
iii. Profit and Loss-A/c was appearing on the Asset side of Balance Sheet at Rs. 70,000.
iv. An unrecorded liability of Rs. 6,000 was also to be taken into consideration.

Q. 12. Alka Ltd. invited applications for 60,000 equity shares of Rs. 50 each issued at a premium of
Rs. 10 per share. The amount was payable as follows:
On application and allotment Rs. 20 per share, Balance (including premium) on first and final call.
Applications for 80,000 shares were received. Applications for 5,000 shares were rejected and prorata allotment was made to the remaining applicants. All calls were made and were duly received
except the first and final call on 600 shares which were allotted to M. His shares were forfeited. The
forfeited shares were re-issued at Rs. 60 fully paid up.
Pass necessary journal entries in the books of Alka Ltd.        (6)

Q. 13. Hemant and Barua were partners in a firm sharing profits in 3: 2 ratios. On 31.3.2005 heir
Balance Sheet was as follows:
Liabilities Amount  Assets Amount
Creditors
Capitals:
Hemant                1,20,000
Barua                       80,000

On the above date the firm was dissolved. The various assets realized as under:
Lease Rs. 60,000; Furniture Rs. 22,000; Stock Rs. 92,000 and Debtors Rs. 2,000 less. Creditors
allowed a discount of Rs. 3,000. Prepare Realisation Account, Cash Account and Partners’ Capital Accounts to close the book of the
firm.    

OR          (6)

Madhu and Garima started business on 1 4 2004 with  capitals of Rs 80,000 and Rs. 60,000
respectively. Their profit sharing ratio was 3 : 2. During the year ended 31.3.2005 they earned a
profit of Rs. 50,000. Their drawings during the year were Madhu Rs. 7,000 and Garima Rs. 5,000. On
31.3.2005 the firm was dissolved. Creditors on that date were Rs 37,000.The assets were realised for
Rs 2, 80,000 The expenses of realisation were Rs. 5,000. Prepare Realisation Account, Cash Account
and Partners’ Capital Accounts.

Q. 14. Following is the Balance Sheet of M, N and 0 as on March 31,2004. They shared profits in the
ratio of their capital.
Balance Sheet as at 31st March, 2004
Liabilities Amount Rs.  Assets Amount Rs.
Sundry Creditors 
Reserve
Capital Accounts : 
M                    48,000
O                    24,000
N                    80,000

M died on June 30, 2004, under the terms of partnership; the executors of a de ceased partner were
entitled to:
i. Amount standing to the credit of the partner’s capital account.
ii. Interest on capital at 12% per annum.
iii. Share of goodwill on the basis of four years’ purchase of three years’ average profits.
iv. Share of profit from the closing of the last financial year to the date of death on the basis of the
last year’s profit. Profit for the years 2002, 2003 and 2004 were Rs. 16,500, Rs. 11,000 and Rs.
5,500 respectively.
Draw up M’s Capital Account to be rendered to his executors and his executors’ account. (6)

Q. 15. X and Y were partners in a firm sharing profits in 3: 2 ratios. Z was admitted as a new partner
for 1/4 th share in the profits on 1.4.2005. The Balance Sheet of the firm on 3 1.3.2005 was as
follows:
Liabilities Amount Rs.  Assets Amount Rs.
Creditors
General Reserve
X’s Capital
Y’s Capital 
10,000
8,000
48,000
34,000
Cash
Debtors
Stock
Furniture
10,000
9,000
10,00
6,000_______
1,00,000
Machinery
Building         
20,200
_45,000
1,00,000
The terms of agreement on Z’s admission were as follows
i. Z will bring Rs. 30,000 for his Capital and Rs. 15,000 for his share of Good will.
ii. Building was valued at Rs. 50,000 and Machinery at Rs. 18,000.
iii. The capital accounts of X and Y were to be adjusted in the profit-sharing ratio. Necessary cash
was to be brought in or paid off to them as the case may be.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of X, Y and Z.

OR     
Khan, Lal and Mahan were partners in a firm sharing profits in the ratio of 5: 3: 2. Their
Balance Sheet on 31.3.2005 was as follows:
Liabilities Amount Rs.  Assets Amount Rs.
Creditors
Khan’s Capital
Lal’s Capital
Mahan’s Capital
35,000
45,000
28,000
30,000
_______
1,38,000
Bank
Debtors
Stock
Building
P& LA/c                       
22,000
12,000
30,000
70,000
40,000
1,38,000
On the above date ‘Lal’ retired on the following terms: 
i. Building was to be depreciated by Rs.5,000.
ii. Provision 5% for doubtful debts was to be made on debtors.
iii. Salary outstanding was Rs. 2,400.
iv. Goodwill of the firm was valued at Rs.70,000 and the same was to be treated without opening goodwill account.
v. Lal was to be paid Rs. 10,000 in cash through bank and the balance was to be transferred to his loan account.
vi. Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of Khan and Mahan after Lal’s
retirement.

PART - B
(ANAL YSIS OF FINANCIAL STATEMENTS)

Q. 16. State any two objectives of preparing a ‘Cash Flow Statement’.      (2)

Q. 17. Categorise each of the following items into operating/investing/financing activities while
preparing a Cash Flow Statement:
i. Issue of 2,00,00 12% preference shares of Rs. 10 each at a premium of Rs. 4 per share.
ii. Purchase of machinery for Rs. 40,000.
iii. Declared and paid dividend Rs 1,00,000.
iv. Interest collected from investments Rs. 28,000. Q. 18. State the first three major headings on the Assets and Liabilities side each of a Balance Sheet
according to Schedule VI of Companies Act.         (3)

Q. 19. Briefly explain the meaning of Analysis of Financial Statements’.     (3)

Q. 20. On the basis of the information given below calculate any two of the following ratios: (4)
i. Operating ratio ii. Liquid ratio iii. Proprietary ratio
iv. Information: Cash Sales Rs. 3,00,000; Credit Sales Rs. 2,80,000; Sales Returns Rs. 20,000; Cost
of Goods Sold Rs. 4,00,000; Selling and Distribution Expenses Rs. 7,000; Administration
Expenses Rs. 8,000; Current Liabilities Rs. 2,30,000; Current Assets Rs. 4,00,000; Closing
Stock Rs. 40,000; Equity Share Capital Rs. 5,00,000; 8% Preference Share Capital Rs 2,00,00O;
Fixed Assets Rs. 5,50,000.