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Accountancy, XII, Practice paper

Mr. John R, PGT (Comm)

a) Attempt all the questions.

1. Give any two revenue receipts of a not- for profit organization.

2. Name any two circumstances under which reconstitution of a partnership firm take place.

3. Give the formula for calculating gaining share of a partner in a partnership firm.

4. Name the two methods of treating the goodwill at the time of admission of a partner.

5. The amount due to the deceased partner is transferred to which account.

6. What is dissolution of firm?

7. When a company follows “Table A” What rate of interest on calls in arrear to be charged?

8. What do you mean by issue of shares at premium?

9. Write any two differences between dissolution of partnership and dissolution of firm?

10. A,B and C were partners in the ratio of 3/8:1/2:1/8. A retires. He surrenders 2/3rd of his share in favour  of B and remaining in favour of C. Calculate new profit sharing ratio.

11. Differentiate between equity share and preference share?

12. State the provisions affecting accounts in the absence of partnership deed?

13. What is goodwill? State the need for valuation of goodwill?

14. What is meant by Income and expenditure account? How does it differ from receipts and payments account?  (any 3 points)

15. a) What do you mean by profit and loss appropriation account?

b) How will you calculate interest on drawings, when a partner withdraws a specified amount?

i) at the end of every month.

ii) at the beginning of every month.

iii) at the middle of every month.

iv) at the end of every quarter.

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16. A, B and C are partners in a firm sharing profits in the ratio 2: 2: 1. B died on 1st July 2009, his legal representatives are entitled to:

a) His capital balance as on 31st March 2009 was Rs 40,000.

b) Share of goodwill valued on the basis of thrice the average profit of the past 4 years’ profits.

c) Share in profits up to the date of death on the basis of average profits for the past 4 years.

d) Interest on capital @ 12% p.a.

Profits for the years ending on March 31 0f 2006,2007,2008,2009 respectively were Rs 15,000, Rs17,000, Rs 19,000, Rs 13,000.

Record necessary journal entries.

17. What journal entries will be recorded for the following transactions on the dissolution of a firm?

a) Payment of unrecorded liabilities of Rs 3,200.

b) Stock worth RS 7,500 is taken by a partner Rohit.

c) Profit on Realisation amounting to Rs 18,000 is to be distributed between the partners in the ratio of 5:7.

18. Sun and Moon are partners in a firm sharing profits in the ratio of 2:1. Star is

Admitted into the firm with 1/4th share in profits. He will bring in Rs 60,000 as

Capital and capitals of Sun and Moon are to be adjusted in the profit sharing ratio.

Their Balance sheet as on 31st March2009 was as follows:

 Liabilities Amount Assets Amount Creditors Bills payable General reserve Capitals:    Sun: 1,00,000 Moon: 64,000 16,000    8,000   12,000    1,64,000    2,00,000 ======== Cash Bank Sundry debtors Stock Furniture Machinery Building 4,000      20,000      16,000      20,000      10,000      50,000      80,000   2,00,000 ========

Other terms of agreement are as under:

1. Star will bring in Rs 24,000 as his share of goodwill.
2. Building was valued at Rs 90,000 and Machinery at Rs 46,000.
3. A provision for bad debts is to be created @ 6% on debtors.
4. The Capital accounts of Sun and Moon are to be adjusted by opening current accounts.

Prepare Revaluation A/C , Capital A/C and Balance sheet of the new firm.

19. The following is the receipts and payment a/c of a Club for the year ended

31st Dec 2008.

 Receipts Amount Payments Amount Balance b/d Subscriptions Life membership fee Donation Profit from entertainment Sale of old books    (Book value Rs 1,000) Interest 2.270   32,500    3,250    2,500    7,250          750       350      48,870 ======= Rent Electric charges Lecturer’s fee Office expenses Printing @ stationery Legal fee Books Furniture purchased Expenses on drama Balance c/d 6,600     3,200        730     1,480     1.050     1,870      6,500     8,600     1,300    17,540   48,870 ========

You are required to prepare an Income and Expenditure account after the

1. Subscriptions to be received are Rs 750, but subscription includes Rs 500 for the year 2009.
2. In the beginning of the year club owned Building Rs 20,000.and Furniture     Rs 3,000 and Books Rs 2,000.
3. Provide depreciation on Furniture @ 5% (including purchase), Books @ 10%

And Building @5%.

20. What is a debenture?

21. What is redemption of debentures?

22. What are convertible debentures?

23. What is meant by analysis of financial statements?

24. How will you calculate cash flow from operating activities?

25. Give two examples of investing activities?

26. What are the types of ratios?

27. State the limitations of ratio analysis?

28.What is cash flow statement?                                                                                       29. X,Y and Z were in Partnership sharing profits and losses in the ratio of 3:2:1.

On 1st April 2009 ,Y retired from the firm. On that date ,their Balance sheet was as follows.

 Liabilities Amount Assets Amount Creditors Bills payable Expenses owing General reserve Capitals:         X : 15,000        Y : 15,000        Z : 15,000 3,000   4,500   4,500 13,500        45,000 70,500 Cash Bank Debtors Stock Building Machinery Loose tools 1,500      7,500    15,000    12,000    22,500      8,000      4,000      70,500

The terms were:

1. Goodwill of the firm was valued at Rs 13,000.
2. Expenses owing to be brought down to Rs 3,750.
3. Machinery and loose tools are to be valued at 10% less than their book value.
4. Buildings are to be revalued at Rs 24,300.

Prepare Revaluation a/c, Capital a/c and Balance sheet of the new firm.

30.AB Ltd. Invited applications for 1,00,000 Shares of Rs 10 each at a discount of 10% . The amount was payable as follows:

On application               Rs . 3

On allotment                 Rs. 4

On First and Final call   Rs. 2

Applications for1,30,000 shares were received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. All calls were made and were duly received except the first and final call on 1,000 shares. These Shares were forfeited and reissued at Rs 12 per share fully paid up.

Pass journal entries in the books of AB Ltd.

31.From the following balance sheet of Baja Ltd , prepare its Cash Flow Statement for the year ended 31st December 2009.

 Liabilities 2008    (Rs) 2009      (Rs) Assets 2008   (Rs) 2009   (Rs) Share capital 12%, Pref. share              Capital General reserve P&L a/c Creditors 2,00,000   4,00,000 1,60,000 2,30,000 2,50,000 ———— 12,40,000 ————– 6,20,000   4,00,000 3,60,000 5,40,000 3,20,000 ———– 22,40,000 ————- Plant & Machinery Investments Debtors Bills receivable Stock Cash in hand 8,00,000 3,10,000    40,000    30,000    35,000     25,000 ———– 12,40,000 ———— 14,00,000   6,00,000   1,20,000      40,000       20,000       60,000 ————– 22,40,000 —————    –

Depreciation on Plant & Machinery   Rs 2, 80,000

32.From the following information calculate

(a) Quick ratio   (b) Stock turnover ratio   (c) Debt equity ratio

 Share capital Reserves & Surplus Current assets 8% Debentures Current liabilities Stock Sales Gross Profit Rs            16,00,000            12,00,000            11,20,000              8,00,000              4,80,000              3,20,000            32,00,000             9,60,000

33.From the following information calculate

(a) Working capital turnover ratio   (b) Gross profit ratio   (c) Debt equity ratio

 Pref.Share capital Share capital Reserves & Surplus Current assets 8% Debentures Current liabilities Stock Sales Cost of goods sold Rs              8,00,000            16,00,000            12,00,000            11,20,000              8,00,000              4,80,000              3,20,000            32,00,000             22,40,000

34.      From the following balance sheet of Ashok Ltd, prepare its Cash Flow Statement for the year ended 31st December 2009.

 Liabilities 2008    (Rs) 2009      (Rs) Assets 2008   (Rs) 2009   (Rs) Share capital Bills payable Debentures General reserve P&L a/c Creditors 2,00,000    80,000 3,60,000 1,60,000 2,30,000 1,70,000 ———— 12,00,000 ————– 5,20,000     70,000 5,00,000 3,00,000 5,00,000 2,50,000 ———– 21,40,000 ————- Building Investments Debtors Bills receivable Stock Cash at bank 7,60,000 3,10,000    40,000    30,000    35,000     25,000 ———– 12,00,000 ———— 13,00,000   5,00,000   1,70,000      90,000       20,000       60,000 ————– 21,40,000 —————    –

Depreciation on Building   Rs 3, 10,000

35.   From the following balance sheet of Alfa Ltd, prepare its Cash Flow Statement for the year ended 31st December 2009.

 Liabilities 2008    (Rs) 2009      (Rs) Assets 2008   (Rs) 2009   (Rs) Share capital Pref.Shares Bills payable Debentures General reserve P&L a/c Creditors 2,00,000 1,40,000    80,000 3,10,000 1,60,000 1,75,000 1,40,000 ———— 12,05,000 ————– 4,50,000 1,20,000     70,000 4,50,000 2,60,000 4,00,000 2,50,000 ———– 20,00,000 ————- Furniture Building Investments Debtors Bills receivable Stock Cash at bank 3,10,000 4,30,000 3,05,000    40,000    60,000    35,000     25,000 ———– 12,05,000 ———— 5,20,000   7,20,000   4,50,000   1,40,000      90,000       20,000       60,000 ————– 20,00,000 —————    –