ACCOUNTANCY
TIME -3 HRS M.M.80
General Instructions:
(i) This question
paper contains two parts A and B.
(ii) All parts of a
question should be attempted at one place.
PART – A
(Accounting for
Partnership Firms and Companies)
Q-1 Can a partner be exempted from sharing the losses of a
firm? If yes under what circumstances? 1
Q-2 A and B are equal partners. C is admitted for 1/8th
share of profits. C brings 50,000 as capital and ₹15,000
being half of the premium for goodwill. Ascertain the value of the goodwill of
the frim. 1
Q-3 X and Y have capital of 1,00,000 and 80,000
respectively. Interest is payable @ 5% p.a. Profits for the year were 6,000.
Amount of interest on capital is charged against the profits. State the amount
of interest payable to X and Y. 1
Q-4 Name the debentures that are repaid at the end of
specified time or by instalments during the lifetime of the company. 1
Q-5 If a Share of ₹ 10 on which ₹8 is called-up and ₹ 6
is paid as forfeited. State with what amount the Share Capital account will be
debited. 1
Q-6 State the right of a partner other than right to share
the assets of a partnership firm at the time of his/her admission in a
partnership firm. 1
Q-7 Kairn Ltd. converted its 200, 8% debentures of ₹100
each issued at a discount of 6% into equity shares of ₹10 each, issued at a premium
of 25%. Discount on issue of 8% debentures has not yet been written off. Showing your working notes clearly. Pass
necessary Journal Entries on conversion of 8% debentures into equity shares. 3
Q-8 P, Q and R are partners in a firm sharing profits and
losses in the ratio of 5:3:2. Q retires and the goodwill of the firm is valued
at 9,000.
Goodwill already appearing in the books of the firm at 10,000. P and R will share the
future profits in the ratio of 4:1. Pass the necessary journal entries for the
treatment of goodwill.3
Q-9 J J Limited obtained a loan of Rs. 20,00,000 from Punjab
National Bank @ 9 % interest. The company issued Rs. 25,00,000, 9 % debentures
of Rs. 100/- each, in favour of Punjab National Bank as collateral security.
Pass necessary Journal entries for the above transactions:
(i)
When company decided not to record the issue of
9 % Debentures as collateral security.
(ii)
When company decided to record the issue of 9 %
Debentures as collateral security. 3
Q-10 Abhishek Ltd. is registered with an authorized Capital
of ₹ 8,00,00,000 divided into
equity shares of ₹
10 each. Subscribed and fully paid up share capital of the company was ₹ 4,00,00,000. For providing employment
to the local youth and for the development of the rural areas of the Jharkhand
State.The company decided to set up a food processing unit. The Company also
decided to open skill development centres in different districts of the State.
To meet its new financial requirements the company decided to issue 1,00,000
equity shares of ₹ 10 each and 10,000, 9%
debentures of ₹100 each. The debentures were redeemable after five years.
The issue of equity shares and debentures was fully subscribed. A shareholder
holding 1,000 shares failed to pay the final call of ₹ 2 per share. Present the share capital in the Balance
Sheet of the company as per the provisions of Schedule III of the Companies
Act, 2013. Also, identify any two values that the company wishes to propagate. 3
Q-11 A and B are partners sharing profits and losses in the
ratio of 3:2. On 1.4.2014 C was admitted as a partner paying 30,000
as capital and the necessary amount of goodwill which was valued at 54,000
for the firm. His share of profits is 1/6th which he acquires
equally from A and B. The profit for the year ended 31st March 2015
was 36,000.
Journalise the above
transactions. 4
Q-12 Calculate the amount of goodwill and complete the
Balance Sheet of the firm:
Liabilities
|
Amount
|
Assets
|
Amount
|
Creditors
-------------
|
90,000
----------
|
Tangible Assets
Goodwill
|
------------------
------------------
|
-------------------
|
-----------------
|
Firm earns a profit of ₹ 45,000 per year. The rate of normal
profit being 10%. The net tangible assets of the firm are ₹ 4,00,000. 4
Q-13 Ram, Shyam and Hari were in partnership sharing profits
in the ratio of 3:2:1. Their Balance Sheet as at 31.3.2015 was as follows:
Liabilities
|
Amount
|
Assets
|
Amount
|
Bills Payable
Creditors
General reserve
Capitals:
Ram
Shyam
Hari
|
20,000
20,000
30,000
50,000
30,000
25,000
|
Cash
Bills Receivables
Debtors
Stock
Furniture
Machinery
goodwill
|
40,000
5,000
15,000
50,000
20,000
30,000
15,000
|
1,75,000
|
1,75,000
|
On 1.4.2015 partners decided to share profits equally. For
this purpose, it was further agreed that:
a.
Goodwill of the firm should be valued at ₹ 30,000.
b.
Furniture and Machinery is to be revalued
at ₹ 25,000 and ₹ 35,000 respectively.
c.
Value of stock is to be reduced by ₹ 4,000.
d.
Pass necessary journal entries. 6
Q-14 On April 1, 2013, XY Limited issued Rs. 9,00,000 10%
debentures at a discount of 9%. The debentures were to be redeemed in three
equal annual instalments starting from March 31, 2015. Prepare ‘Discount on
Issue of Debenture Account’ for the first three years starting from April 1,
2013. Also show your workings clearly.
6
Q -15 Aisha and Afreen are partners sharing profits and
losses equally. They decided to dissolve their firm . Give journal entries for
settlement of the following alternative cases assuming that accounts of assets
and liabilities are already closed:
a.
Abeer a creditor for ₹ 25,000 accepted furniture at ₹ 36,000 in full settlement of his
claim.
b.
Azarya a creditor of ₹ 25,000 accepted furniture at ₹ 20,000 in full settlement of her claim.
c.
Ayaan a creditor for ₹ 30,000 agreed to take Machinery
at ₹ 48,000, book value ₹ 50,000 in full settlement of his
claim.He paid balance amount to the firm.
d.
Aabidah a creditor of ₹ 20,000 (unrecorded)agreed to accept
computer (unrecorded) at ₹
15,000 plus ₹ 2,000 in full settlement of
her claim.
e.
Loss on dissolution ₹ 12,000.
f.
Abeeda a creditor for 70,000 accepted 30,000 in
cash and investments of the book value of 45,000 in full settlement of his
claim. 6
Q-16 The Balance Sheet of Madan
and Mohan sharing profits and losses in the ratio of 3:2 was as follows :
Liabilities
|
Amount
|
Assets
|
Amount
|
Creditors
Workmen Compensation Reserve
General Reserve
Capitals:
Madan
Mohan
|
28,000
12,000
20,000
60,000
40,000
|
Cash
Debtors 65,000
Less: provision 5,000
Stock
Investments
Patents
|
10,000
60,000
30,000
50,000
10,000
|
1,60,000
|
1,60,000
|
They decided to admit Gopal for
1/4th share on the following terms:
a.
Gopal shall bring ₹ 25,000 as his share of premium for
goodwill.
b.
That unaccounted accrued income of ₹ 500 be provided for.
c.
The market value of investments was ₹ 45,000.
d.
A debtor whose dues of ₹ 1,000 were written off as bad debts
paid ₹ 800 in full settlement.
e.
A claim of
₹
2,000 on account of workmen compensation is to be provided.
f.
Patents are undervalued by ₹ 5,000.
g.
Gopal to bring in capital equal to 1/4th
of the total capital of the new firm after all adjustments.
h.
Prepare Revaluation Account, Partners Capital
Account and Balance Sheet of reconstituted firm. 8
OR
X, Y and Z were partners in a firm whose
Balance Sheet as on 31st March 2017 was as under:
Liabilities
|
Amount
|
Assets
|
Amount
|
Creditors
General Reserve
Capitals:
X
Y
Z
|
18,240
7,500
20,000
14,500
10,000
|
Cash
Debtors
Stock
Furniture
|
28,740
10,000
26,500
5,000
|
70,240
|
70,240
|
Y retired on that date in this connection
it was decided to make the following adjustments:
a.
To reduce stock and furniture by 5% and 10%
respectively.
b.
To provide for doubtful debts at 1,125.
c.
A long dispute with the creditors was settled
and firm has to pay 8,050. In anticipation₹ 5,000 have already been
included in sundry creditors for this purpose.
d.
Goodwill was valued at ₹12,000 and Y’s share of the
same be adjusted into the account of X and Z.
e.
To share profits and losses in 5:3 respectively.
f.
Y should be paid off and the adjusted capitals
of the partners should be in their new profit sharing ratio. Adjustments to be
made through cash.
g.
Prepare Revaluation Account, Partners Capitals
Accounts and Balance Sheet of new firm.
Q-17 JK Ltd offered to public
40,000 ordinary shares of 
. 10 each at . 12 per share payable . 3 with application; . 5 on allotment (including . 2 premium) and . 4 on first & final call.
. 10 each at . 12 per share payable . 3 with application; . 5 on allotment (including . 2 premium) and . 4 on first & final call.
Applications
totalled for 76,000 shares. Of these 6,000 applications are rejected and for
the balance a pro-rata
allotment was made. All money due were received except the allotment and call
money from a shareholder to whom 2,000 were allotted. These shares forfeited
and re-issued at .
25,000 fully paid up. Give Journal entries in the books of the company.
Also state the value missed by the company by rejecting applications. 8
.
25,000 fully paid up. Give Journal entries in the books of the company.
Also state the value missed by the company by rejecting applications. 8
Or
(a) Adhar Limited forfeited 6,000 shares of ₹ 10 each for non-payment of First call
of ₹ 2 per share. The Final call
of ₹ 3 per share was yet to be
made. The Final call was made after Forfeited of these shares. Of the forfeited
shares, 4,000 shares were reissued at ₹ 9 per share as fully paid up.Assuming
that the company maintains ‘Calls in Advance Account’ and ‘Calls in Arrears
Account’, prepare “Share Forfeited Account” in the books of Adhar Limited.
(b) Bajrang Limited issued 2,00,000 equity shares
of ₹
20 each at a premium of ₹ 5 per share. The shares were allotted in the proportion
of 5 : 4 of shares applied and allotted to all the applicants. Deepak, who had
applied for 900 shares, failed to pay Allotment money of Rs. 7 per share
(including premium) and on his failure to pay ‘First & Final Call’ of ₹ 2
per share, his shares were forfeited. 400 of the forfeited shares were reissued
at ₹15
per share as fully paid up.Showing your working clearly, pass necessary Journal
entries for the Forfeited and reissue of Deepak’s shares in the books of BG
Limited. The company maintains ‘Calls in Arrears’ Account’.
(c) Malkhan
Limited forfeited 1,200 shares of ₹. 10 each allotted to Ravi for
Non-payment of ‘Second & Final Call’ of ₹. 5 per share (including
premium of ₹
2 per share). The forfeited shares were reissued for ₹ 10,800 as fully paid up. Pass
necessary Journal entries for reissue of shares in the books of Malkhan Limited.
Part B
Option I
(Analysis of Financial Statements)
Q-18 State why cash flow statement is not a substitute for Income
Statement?
1
Q-19 Give any one example of an activity which is classified as
operating activity in case of all enterprises.1
Q-20 State the objectives of ‘Analysis of Financial Statements’. 4
Q-21 Assuming that the Debt-Equity Ratio is 2:1. State giving reasons
whether this ratio will increase, decrease or remain unchanged in the following
cases:
a.
Purchase of fixed asset on a credit of 2 months.
b. Sale
of fixed assets at a loss of ₹
3,000.
c. Purchase
of fixed assets on long term deferred basis.
d.
Issue of bonus shares. 4
Q-22 From the following information prepare a Comparative statement of
Profit and Loss for the period given: 4
2015-16
|
2016-17
|
|
Revenue from operations
Employees benefit expenses
Other expenses
Income tax
|
9,00,000
4,50,000
15% of Employee benefit expenses
50%
|
6,00,000
3,60,000
20% of Employee benefit expenses
50%
|
Q-23 From the following Balance Sheet of Wadhwa Limited as on 31.3.2016
and 31.3.2017 prepare a cash flow statement:
particulars
|
Note No
|
31.3.2017
|
31.3.2016
|
I.
Equity and Liabilities
Shareholders Funds
Share capital
Reserve and Surplus
Current Liabilities
Trade Payables
Total
II.
Assets
Non Current Assets
Fixed Assets
Tangible Assets
Current Assets
Trade Receivables
Cash and cash equivalents
Total
|
1
2
3
4
5
6
|
1,00,000
50,000
20,000
1,70,000
90,000
25,000
55,000
1,70,000
|
50,000
30,000
10,000
90,000
55,000
20,000
15,000
90,000
|
Notes to Accounts:
Particulars
|
31.3.2017
|
31.3.2016
|
Note No 1
Share Capital
Equity Share Capital
Note No 2
Reserve and Surplus
General Reserve
Surplus i.e. Balance in Statement of Profit and Loss
Note No 3
Trade creditors
Note No 4
Tangible Assets
Machinery
Note no 5
Trade Receivables
Debtors
Note No 6
Cash and Cash equivalents
Cash at Bank
|
1,00,000
---------------------------------------------
30,000
20,000
---------------------------------------------
50,000
---------------------------------------------
20,000
90,000
25,000
55,000
|
50,000
---------------------------------------------
20,000
10,000
--------------------------------------------
30,000
---------------------------------------------
10,000
---------------------------------------------
55,000
20,000
15,000
|
Additional Information:
a.
Depreciation on Machinery for the year 2016 was
15,000.
b.
Interim dividend 7,000 has been paid to the
shareholders during the year 2016.
6