Subject

Accountancy

Class

CBSE Class 12

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Sample Papers

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 Multiple Choice QuestionsShort Answer Type

1.

Joy Ltd. issued 1,00,000 equity shares of Rs 10 each. The amount was payable as follows:
On application Rs 3 per share.
On allotment Rs 4 per share.
On 1st and final call balance.
Applications for 95,000 shares were received and shares were allotted to all the applicants. Sonam to whom 500 shares were allotted failed to pay allotment money and Gautam paid his entire amount due including the amount due on first and final call on the 750 shares allotted to him along with allotment. The amount received on allotment was
(a) Rs 3,80,000
(b) Rs 3,78,000
(c) Rs 3,80,250
(d) Rs 4,00,250


Amount received on allotment is option (c) Rs 3,80,250.

Particulars Amount (Rs.)

Amount due on allotment (95000 * 4)
Less: Allotment not received on 500 shares
Add: First and Final call money received on 750 shares
3,80,0000
2,000
2,250
Net Amount Received on Allotment 3,80,250

 


 

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2.

A, B, C and D were partners in a firm sharing profits in the ratio of 4:3:2:1. On 1-1-2015 they admitted E as a new partner for 1:10 share in the profits. E brought Rs 10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at Rs 1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer.


According to AS 26, good will can be shown in books of accounts only when it is purchased. Otherwise, it should be immediately distributed among the old partners in their sacrificing ratio. Hereby showing it in the books of accounts, accountant has violated the law and made wrong accounting entry and hence he cannot be supported.

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3.

On 1-4-2010 Sahil and Charu entered into partnership for sharing profits in the ratio of 4: 3. They admitted Tanu as a new partner on 1-4-2012 for 1/5th share which she acquired equally from Sahil and Charu. Sahil, Charu and Tanu earned profits at a higher rate than the normal rate of return for the year ended 31-3-2013. Therefore, they decided to expand their business. To meet the requirements of additional capital they admitted Puneet as a new partner on 1-4-2013 for 1/7th share in profits which he acquired from Sahil and Charu in 7: 3 ratio.

Calculate: 
(i) New profit sharing ratio of Sahil, Charu and Tanu for the year 2012-13.
(ii) New profit sharing ratio of Sahil, Charu, Tanu and Puneet on Puneet's admission.


Calculation of New Profit Sharing Ratio of Sahil, Charu and Tanu for the year 2012-13
Old Ratio of Sahil and Charu = 4:3
Tanu admitted for 1/5th share, acquired by her equally from Sahil and Charu
Calculation of sacrificing ratio:
Sahil = 1/5 * ½ = 1/10
Charu = 1/5 * ½ = 1/10

New Profit Share = Old Share – Sacrificing Share
Sahil: 4/7 – 1/10 = (40-7)/70 =33/70
Charu: 3/7 – 1/10 = (30-7)/70 = 23/70
And Tanu: 1/5 or 14/70
Therefore, New Profit Sharing Ratio of Sahil, Charu and Tanu = 33: 23: 14

Calculation of New Profit Sharing Ratio of Sahil, Charu, Tanu and Puneet
Old Ratio of Sahil, Charu and Tanu = 33: 23: 14
Puneet admitted for 1/7th share, acquired from Sahil and Charu in the ratio of 7: 3

Calculation of sacrificing ratio:
Sahil = 1/7 * 7/10 = 7/70
Charu = 1/7 * 3/10 = 3/70

New Profit Share = Old Share – Sacrificing Share
Sahil: 33/70 – 7/70 = 26/70
Charu: 23/70 – 3/70 = 20/70
Tanu: 14/70
Puneet = 1/7 or 10/70
Therefore, New Profit Sharing Ratio of Sahil, Charu, Tanu and Puneet = 26: 20: 14: 10

 

1094 Views

4.

On 1-4-2013 Jay and Vijay, entered into partnership for supplying laboratory equipment’s to government schools situated in remote and backward areas. They contributed capitals of Rs 80,000 and Rs 50,000 respectively and agreed to share the profits in the ratio 3: 2. The partnership deed provided that interest on capital shall be allowed at 9% per annum. During the year the firm earned a profit of Rs 7,800.
Showing your calculations clearly, prepare 'Profit and Loss Appropriation Account' of Jay and Vijay for the year ended 31-3-2014.




Working Notes:
Calculation of Interest on CapitalInterest on Jay’s


Working Notes
:

Calculation of Interest on Capital
Interest on Jay’s capital = 80000*9/100=7200 Rs
Interest on Vijay’s capital = 50,000*9/100 = 4500 Rs
Total interest = 7200+4500 = Rs 11,700

Calculation of proportionate Interest on capital
Jay: (7200/11700)*7800 = Rs 4800
Vijay: (4500/11700) * 7800 = Rs 3000

2046 Views

5.

On the retirement of Hari from the firm of 'Hari, Ram and Sharma' the balance-sheet showed a debit balance of Rs 12,000 in the profit and loss account. For calculating the amount payable to Hari this balance will be transferred
(a) to the credit of the capital accounts of Hari, Ram and Sharma equally
(b) to the debit of the capital accounts of Hari, Ram and Sharma equally
(c) to the debit of the capital accounts of Ram and Sharma equally
(d) to the credit of the capital accounts of Ram and Sharma equally


Answer is option b. Since at the time of retirement of a partner, the profit and loss account balance is transferred to the old partner’s capital account in their old profit sharing ratio, the debit balance of profit and loss account is to be transferred to the debit of the capital accounts of Hari, Ram and Sharma equally.

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6.

Give the meaning of forfeiture of shares.


Forfeiture of share means the cancellation of allotment due to breach of contract and to treat the amount already received on such shares as forfeited to the company.

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7.

Dev, Swati and Sanskar were partners in a firm sharing profits in the ratio of 2:2:1. On 31-3-2014 their Balance Sheet was as follows:


On 30thJune, 2014 Dev died. According to partnership agreement Dev was entitled to interest on capital at 12% per annum. His share of profit till the date of his death was to be calculated on the basis of the average profits of last four years. The profit of the last four years were: 

Years Profit (RS)
2010-2011 2,04,000
2011-2012 1,80,000
2012-2013 90,000
2013-2014(Loss) 57,000

On 1-4-2014, Dev withdrew Rs 15,000 to pay for his medical bills.

Prepare Dev's account to be presented to his executors.







Working Notes:Calculation of Interest on Capital:77,000*12/100*3/12 =

Working Notes:
Calculation of Interest on Capital:
77,000*12/100*3/12 = 2310 Rs
Calculation of Share of Profit:
Average Profit = (2,04,000+1,80,000+90,000-57,000)/4 = 1,04,250 Rs
Dev’s share of profit = 1,04,250*3/12*2/5 = Rs 10,425
Calculation of Share of Debit balance in P&L A/c
57,000*2/5 = Rs 22,800.

1616 Views

8.

Kumar, Verma and Naresh were partners in a firm sharing profit & loss in the ratio of 3: 2: 2. On 23rd January, 2015 Verma died. Verma's share of profit till the date of his death was calculated at Rs 2,350.
Pass necessary journal entry for the same in the books of the firm.


Date Particulars L.F. Debit(Rs.) Credit (Rs.)
 

Profit and Loss Suspense A/C    Dr.
To Verma's Capital A/C
(Verma's share of Profit transferred to his Capital Account)
  2350

2350
816 Views

9.

Kumar, Gupta and Kavita were partners in a firm sharing profits and losses equally. The firm was engaged in the storage and distribution of canned juice and its godowns were located at three different places in the city. Each godown was being managed individually by Kumar, Gupta and Kavita. Because of increase in business activities at the godown managed by Gupta, he had devote more time. Gupta demanded that his share in the profits of the firm be increased, to which Kumar and Kavita agreed. The new profit sharing ratio was agreed to be 1: 2: 1. For this purpose the goodwill of the firm was valued at two years purchase of the average profits of last five years. The profits of the last five years were as follows: 

Year Profit (Rs)
I 4,00,000
II 4,80,000
III 7,33,000
IV 33,000
V 2,20,000

You are required to:
(i) Calculate the goodwill of the firm.
(ii) Pass necessary Journal Entry for the treatment of goodwill on change in profit sharing ratio of Kumar, Gupta and Kavita,



Working Notes: Calculation of Goodwill of the firm:Average Profit =

Working Notes
Calculation of Goodwill of the firm:
Average Profit = (4,00,000+4,80,000+7,33,000+2,20,000-33,000)/5 = 3,60,000
Good will on the basis of 2 years purchase = 3,60,000*2 = 7,20,000.

Calculation of Gaining Ratio
Old Ratio = 1: 1: 1
New Ratio = 1: 2: 1
Gaining Ratio = New Ratio – Old Ratio
Kumar’s: 1/4 – 1/3 = (3-4)/120=01/12 (sacrifice)
Gupta’s: 2/4-1/3 = (6-4)/12 = 2/12 (Gain)
Kavita’s = ¼ - 1/3 = (3-4)/12 = 1/12 (Sacrifice)
Amount of goodwill to be adjusted = 7,20,000*1/12 = 60,000.





1818 Views

10.

In the absence of partnership deed the profits of a firm are divided among the partners:
(a) In the ratio of capital
(b) Equally
(c) In the ratio of time devoted for the firm's business
(d) According to the managerial abilities of the partners


(b) Equally: According to partnership act 1932, in the absence of any partnership deed, profits of the firm are divided among the partners equally.

4318 Views