Net profit after tax l 0% of sales.

Milestone Int'l College Required: i) Current ratio ii) Amount of sales

Balkumari-9, Lalitpur iii) Debt- equity ratio iv) Return on equity shareholder fund.
Send Up- Examination-2 067 v) Return on capital employed ratio 6
Subject: Accountancy Time: 3hrs F.M: 100
Class: XII P.M:40 9. What do you mean by financial statement analysis? 3
Attemp~ all Questions 10. Consider the following.
I. Define company and state its features. 3 Net profit after tax 70,000
2. What are differences between equity share and preference share? 2 Depreciation for the year 30,000
3.A Ltd issued l 0,000 share of Rs.l 00 each at l 0% premium. Money payable Rs.30 on Provision for tax 20,000
application, Rs.50 on allotment (including premium) and balance on first and final Profit on sales of fixed asset 40,000
call. Application received for 13,000 shares. 1000 share applications were rejected Premium on redemption of debenture 10,000
and balance were allotted an pro-rata basis. All the money fully called up and dully Loss on sold of investment l 5,000
received except one shareholder holding 500 share fail to pay allotment and call Goodwill written off 5,000
money. These unpaid shares, were decided to forfeit by board of directors. Transfer to general reserve 12,000
Required : i) Entry for allotment Proposed dividend 13,000
ii) Entry for share first and final call Required funds from operation. 5
iii) Entry for forfeiture . 5
4_ B Ltd forfeited 300 share which were fully called up Rs. I 00 but fail to pay Rs. II. Following balance sheet for 2 years given below:
40(including discount Rs.l 0) and first and final call Rs.30 . Board of directors Capital and Liabilities I" year 2"d year Assets !"year 2"d ye
decided to re-i ssue 200 share out of these forfeited at Rs.85 as fully called up and Share capital 2,00,000 3,00,000 Plant and Machinery I ,50,000 2,00,0
paid up. Share Premium 20,000 40,000 Furniture 1,50,000 1,20,01
Required entry for : Retai ned earn ings 80,000 1,60,000 Investment i,20,000 2,00,01
i) Forfeiture Debenture I ,50,000 I ,00,000 Cash 25,000 70,0(
ii) Re-issue Creditors 50,000 60,000 Debtor 50,000 80,0(
iii)Transfer 3 Bills payabl e 50,000 20,000 Prepaid expenses 10,000 20,0(
5. C Ltd. Forfeited 600 share which were issued 3:2 ratio as ful ly called up Rs. 100 but Provision for tax 20,000 20,000 Patents 20,000 10,0(
f:1il to pay R.s. 50(includinf' premium Rs.l 0) and first and final call Rs.20 . Board Proposed dividend )O,OOQ ___jQ,Q9__Q_ Goodwill 75 000 50 V(
of direction decided to re-i ssued 400 shares out of these for fe ited share;,tt Ks.95 as Toi~d 6,00,000 7,50,000 Total 6,00,000 7,50,0(
fully called up and paid up including premium . ,. Income statement
Required entry for: i) forfeiture Sales 5,00,000
i) Re-i ssue Cost of goods sold 3,05,000
iii) Transfer 3 Gross profit 1,95,000
6. A Ltd. took over the following assets and liability ofB Ltd . at Rs . 5,50,000 by agreed Less: Operating expenses
price issuing shares of Rs. I 00 each at l 0% premium. Depreciation on plant and Machinery 30,000
Machinery Rs. 3,00,000 Cred itors 2,20,000 Depreciation on Furniture 10,000
Debtors Rs. 200,000 Outstanding Expenses I 0,000 Loss on sold of furniture (sales Proceeds) 5;000
Furniture Rs. 300,000 Pattent written off 10,000
A ltd. also issue I 0,000 share of Rs. I 00 each at I 0% premium to the public . Goodwill written off 25,000
Required :Necessary entry 3 Total 80,000
7 _ 500, I 0% debenture of Rs. I 00 each issued at II 0 , redeemable at Rs. I OS at Add Income: 1,15,000
the end of 5 years. Profit on sales of plant (Sales Proceeds 50,000) 30,000
Required : i) entry at the time of issue of debenture 1,45,000
ii) entry at the redemption of debenture at the end of the 5'h year. 3 Less : Tax paid 25,000
8. You are given the following balance sheet. Net profit 1,20,000
Capital and Liabilities Rs. Assets Rs. Less: proposed dividend 40,000
Equity Capital 25,000 Plant and Machinery 3,50,000 Ret ai ned earnings 80,000
I 0% Preference capital I 00,000 Furniture I ,50,000 Required : Cash flow statement under direct method 10
Reserve and surplu s 50,000 Cash 10,000
Loan 1,50,000 Debtor 20,000 12. You are given the following Trial balance for the year ended 31" Dec-201 0
Creditor 20,000 Prepaid expenses 30,000 Particulars Rs. Particular Rs.
Billspayable 30,000 Discount on issue of share 35,000 Opening Stock 45,000 Purchase retu rn 10,000
Floatation cost 5000 Purchase 5,95 ,000 Provi sion for bad debt 13,000
Total 6,00,000 Total 6,00,000 Carriage in ward 10,000 Sales 9,26,000
Fixed assets turnover ratio 4 times. Sales return 5,000 Creditor 25 ,000
~-
 Motive power
Freight
35,000
15,000
Equity share capital
IO%preference share capital
2,00,000
1,00,000
l 15.
16.
Define overhead and classifY on the basis of variability
What is bin card ?
2
2
Carriage outward 20,000 10% Debenture 1,00,000 17. Mention the advantages of piece rate system . 2
Salary 1,45 ,000 Share premium 26,000 18. What do you mean by allocation of overhead? 3
Plant 2,00,000 Provision for tax 22,000 19. Consider the following information's:
Goodwi!l 1,50,000 Interest on investment 16,000 Uses (8,000-10,000) unit
Patent 50,000 Comm;ssion received 18,000 Lead time 4 to 6 days.
Cash 25,000 Discount received 17,000 Reorder quantity 40,000
Bad debt 7,000 Reserve and surplus 40,000 Required: i) Re-order Level ii) Maximum level iii) Minimum 3
Debtor 1,20,000 P/L appropriation A/C 54,000
Tax paid 30,000 20. A Ltd require 40,000 unit of materials per year. The purchase price ofRs.40 per unit.
Telephone expenses 32,000 The ordering cost Rs. 400 . The carrying cost _1 0% of average material.
Investment 75,000 Required i) EOQ ii) Total cost at EOQ 2
In.t erest on debenture 8 000
Total 15,67,000 Total 15,67,000 21. You are given following information's for the month of Jesth 2067.
ustment 2-l. Opening balance 4000 unit@ Rs. 10.
1) Closing stock Rs,90,000. 2- 2. Purchased 2000 unit@ Rs. II
2) Bad debt is to be written offRs. 7,000 and maintain provision 5% on debtors. 2- 3. Issued 5000 unit
3) Goods worth Rs. 20,000 lost by fire and only 60% of claim admitted to pay by 2- 4. Return to supplier 100 unit
insurance company. 2- 5. Purchased 6000 unit @ Rs. 12
4) Depreciation on plant by 10% and patent and goodwill written off by 20% 2- 16.Return from work order 500 unit
5) Transfer to general reserve Rs. 5,000. 2-17. Issued 6500 unit
6) Provision for tax 20% . 2c28 .0n the verification of store, stock found excess by 200 unit.
7) Management declared proposed dividend 10% on paid up capital. Required: Store ledger under FIFO method . 5

I
Required: i) Trading and P/L,A/C 22. Consider the folloWing information:
ii) Profit and Loss appropriation A/C 01-01-2066 01-12-2067
iii) Balance sheet. 12 Raw material Rs.IO,OOO Rs.15,000
The following 'Jriai balance uf ABC Ltd as on 31-12-201. WJP Rs 15,000 n.s.2o,cns
Particulars
Opening stock
Purchase
Dr.
40,000
2,50,000
Cr.
,.
,. Fimshed on purchase
Carriage on purchase
Carriage on sold
8,000units
Rs.S,OOO
Rs.7,000
12,000units
I
'
Carriage 10,000 Direct labor Rs.l ,20,000
Salary I ,20,000 Purchase of material Rs.l ,30,000
Bad debt
Rent paid
5,000
25,000
Indirect wages
Salary office staff .,.
Rs .25,000
E.s.35,000 ')_~&.>'\
Commission received 15,000 Manager commission Rs.15 ,000
Plant and Machinery 1,50,000 Depreciation on plant and machinery Rs.20,000
Furniture 1,30,000 Audit fee Rs.7,000
Share capital 2,00,000 Salesman commission 5% on sales
Share Premium 50 ,000 Unit sold 16,000units
Tax paid 28,000 Sales of scrap Rs.2000
Provision for tax 20,000 Unproductive expenses Rs.l7,000
Retained earning 45 ,000 Required: Cost sheet. 10
Sales 4,28,000
Total 7,58,000 7,58,000 23 . Following information is given to you.
Adjustment Net loss as per financial account Rs.\2.00
I) Closing stock Rs.60,000 Opening stock over valued in cost A/C Rs. 5,000
2) Depreciation on Plant and Furniture by 10%. Closing over recorded valued in financial A/C Rs. 8,000
3) Prepaid salary Rs. 7000 Factory overhead under valued in cost A/C Rs.7,000
4) Provision for income tax Rs. 10,000 Selling overhead under value in financial A/C _ --~-· - - - ____ _ ____Rs.9 ,000
5) Dividend paid Rs. 8,000 Office overhead over valued in cost A/C Rs.4,000
equired: Work sheet (using 12 column) 5 Interest received only recorded in financi al A/C Rs.3;000
L Define cost accounting" Mention limitations of cost accounting. 3 Divi dend received not recorded in cost A/C ' Rs.6,000
Required: Cost reconciliation statement 5
'Is.

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