RKG INSTITUTE by CA PARAG GUPTA

B - 193, Sector - 52, Noida

MOCK PAPER 2
Class 12 - Accountancy
Time Allowed: 2 hours Maximum Marks: 40
General Instructions:

1. This question paper comprises two Parts – A and B. There are 12 questions in the question

paper. All questions are compulsory.

2. Part-A is compulsory for all candidates.

3. Part- B has two options i.e. ( i ) Analysis of Financial Statements and (ii) Computerized
Accounting. Students must attempt only one of the given options.
4. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks each.
5. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks each.

6. Question nos. 7 to 9 and 12 are long answer-type questions carrying 5 marks each.
7. There is no overall choice. However, an internal choice has been provided in 3 questions of
three marks and 1 question of five marks.

Part A
1. Calculate what amount will be posted to Income & Expenditure A/c for the year ending 31 st [2]
March 2015:

(i) Stock of stationery on 1st April, 2014 7,000

(ii) Creditors for stationery on 1st April, 2014 4,000

(iii) Advance paid for stationery carried forward on 1st April 2014 6,000

(iv) Stock of stationery on 31st March, 2015 3,000

(v) Creditors for stationery on 31 st March, 2015 8,000

(vi) Advance paid for stationery on 31 st March, 2015 1,500

(vii) Amount paid for stationery during 2014-15 42,000

2. Pass Journal entries for the following: [2]

i. Realisation expenses of ₹ 15,000 were to be met by Rahul, a partner, but were paid by the
firm.
ii. Ramesh, a partner, was paid remuneration of ₹ 25,000 and he was to meet all expenses.
iii. Anuj, a partner, was paid remuneration of ₹ 20,000 and he was to meet all expenses. Firm
paid an expense of ₹ 5,000.
3. X, Y and Z were partners in a firm sharing profits in the ratio of 5 : 3 : 2. The firm closes its [2]

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 books on 31st March, every year. On 30th September, 2016, Z died. The Partnership Deed
provided that on the death of a partner his executors will be entitled to the following:
i. Balance in his Capital Account and Interest on Capital @ 12% per annum. On 1st April,
2016, balance in Z's Capital Account was ₹ 80,000.
ii. His share in the profits of the firm in the year of his death, which will be calculated on the
basis of rate of net profit on sales of the previous year which was 25%. The sales of the firm
till 30th September, 2016 were ₹ 4,00,000.
iii. His share in the goodwill of the firm. The goodwill of the firm on Z's death was valued at ₹
3,00,000.
The Partnership Deed also provided that the following deductions will be made from the
amount payable to the executor of the deceased partner:
a. His drawings in the year of his death. Z had withdrawn ₹ 30,000 till 30th September, 2016.
b. Interest on drawings @ 12% per annum which was calculated as ₹ 2,000.
The accountant of the firm prepared Z's Capital Account to be presented to his executor but in
a hurry did not complete it. Z's Capital Account as prepared by the firm's accountant is
presented below:
Z's CAPITAL ACCOUNT

Dr. Cr.

Date Particulars ₹ Date Particulars ₹

2016 2016

Sept. 30 ? 30,000 April 1 ? 80,000

Sept. 30 ? 2,000 Sept. 30 ? 4,800

Sept. 30 ? ? Sept. 30 ? 20,000

Sept. 30 ? ?

Sept. 30 ? ?

1,64,800 1,64,800

You are required to complete Z's Capital Account.

4. Distinguish between Receipts and Payments Account and Income and Expenditure Account. [3]
OR
How is the following case dealt with while preparing final accounts of an Entertainment club for
the year ended 31st March, 2019?
BALANCE SHEET (AN EXTRACT)
as at 1st April, 2018

Liabilities ₹ Assets ₹

Creditors for Sports Materials 1,20,000 Stock of Sports Materials 1,60,000

RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT)

for the year ended 31st March, 2019

Dr. Cr.

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 Receipts ₹ Payments ₹

By Sports Materials

Additional Information: Sports Materials in hand on 31st March, 2019: ₹4,40,000.

5. A, B and C are partners sharing profits in the ratio of 4 : 3 : 1. B retires, selling his share of [3]
profits to A and C for ₹ 8,100; ₹ 3,600 paid by A and ₹ 4,500 by C. Profit for the year after B's
retirement was ₹ 10,500. You are required:
i. to give necessary Journal entries to record the transfer of B's share to A and C;
ii. to calculate new profit-sharing ratio and distribute the profits between A and C. A and C
bring the necessary amount.

6. i. Journalise the following transactions at the time of issue of debentures: [3]

Nandan Ltd. issued ₹90,000, 12% debentures of ₹100 each at a discount of 5% redeemable
at 110%.
ii. Winona Ltd. issued ₹80,000, 11% debentures of ₹100 each at a premium of 5% redeemable
at a premium of 10%.
OR
Distinguish between Shares and Debentures (any two).
7. Yogesh and Naresh were partners sharing profits equally. They dissolved the firm on 1st April, [5]
2019. Naresh was assigned the responsibility to realise the assets and pay the liabilities at a
remuneration of ₹ 10,000

Liabilities   ₹ Assets   ₹

Creditors   40.000 Cash/Bank   6,000

Bills Payable   40.000 Investments   30.000

Naresh's Loan   44.000 Debtors 40,000  

Less: Provision
Mrs.Yogesh's
  42.000 for Doubtful 4,000 36.000
Loan
Debts

Investment
Fluctuation   8,000 Bills Receivable   33,400
Reserve

Profit and Loss

Capital A/cs:       1,10,600
A/c

Yogesh 21,000        

Naresh  21,000 42.000      

    2,16,000     2,16,000

The firm was dissolved on following terms:

i. Yogesh was to pay his wife's loan.
ii. Debtors realised ₹ 30,000.
iii. Naresh was to take investments at an agreed value of ₹ 26,000.

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 iv. Creditors and Bills Payable were payable after two months but were paid immediately at a
discount of 15% p.a.
v. Bills Receivable were received allowing 5% rebate.
vi. A Debtor previously written off as Bad Debt paid ₹ 15,000.
vii. An unrecorded asset realised ₹ 10,000.
Prepare Realisation Account
OR
Following is the Balance Sheet of Pushpa, Rashi and Seema who are sharing profits in 2 : 1 : 2 as at
March 31, 2018:

Liabilities ₹ Assets ₹

Creditors 38,000 Goodwill 40,000

Employee's Provident Fund 2,000 Land & Building 2,00,000

Profit & Loss Account 60,000 Stock 65,000

Capitals: Debtors 30,000

Pushpa 1,20,000 Cash and Bank 65,000

Rashi 80,000

Seema 1,00,000 3,00,000

4,00,000 4,00,000

Pushpa died on June 12, 2018. According to partnership deed, the executors are entitled to:
i. Her capital as per Balance Sheet;
ii. Interest on capital @ 8% p.a. upto the date of death.
iii. Her share of profit upto the date of death on the basis of average profits for the past 3 years.
iv. Her share of goodwill valued on the basis of two times the average profits of the past 3 years.
Profits for the past three years were ₹ 30,000; ₹ 70,000 and ₹ 80,000 respectively.
Rashi and Seema acquired Pushpa’s share in the ratio of 1 : 5.
Prepare Pushpa’s A/c to be rendered to her executor’s. Also, calculate the new profit-sharing ratios.
8. Savoy Ltd. invited applications for 4,000 Debentures of ₹100 each issued at a premium of 20%. [5]
Applications were received for 6,000 debentures and it was decided to deal with the same as
follows:
i. To refuse allotment to applicants for 1,200 debentures.
ii. To give full allotment to applicants for 400 debentures.
iii. To allot the remaining debentures on a pro rata basis among other applicants.
iv. To utilise excess application money in part payment of allotment money.
Journalise the above transactions (including cash transactions) assuming that amount is
payable in installments - on applications ₹20, on allotment ₹50 (including premium), and
balance as first and final call.
9. Following is the Receipts and Payments Account of Citizen Club for the year ended 31st March, [5]
2018:

Receipts ₹ Payments ₹

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 To Balance b/d 2,40,000 By Rent (paid for 11 1,76,000
months)

To Subscriptions (including ₹ 10,000 for 2018-

5,80,000 By Insurance 3,000
19)

To Life Membership Fee 25,000 By Salaries 2,64,000

To Interest on Investments (@ 7% p.a. for full

28,000 By Stationery purchased 60,000
year)

By Balance c/d 3,70,000

8,73,000 8,73,000

Prepare Income and Expenditure Account for the year ending 31st March, 2018 and the
Balance Sheet as at that date after considering the following information:
i. Subscription in arrear on 31st March, 2017 were ₹ 30,000 and on 31st March 2018 were ₹
48,000.
ii. Stock of stationery on 31st March, 2017 was ₹ 5,000 and on 31st March, 2018 ₹ 14,000.
iii. Insurance was paid on 1st January 2018 to run for one year.
Part-B
10. From the following information relating to year ended 31st March, 2019, calculate Net Profit [2]
before Tax and Extraordinary Activities:

Particulars ₹

Surplus, i.e., Balance in Statement of Profit and Loss (Opening) 2,00,000

Surplus, i.e., Balance in Statement of Profit and Loss (Closing) 6,72,000

Transfer to Debentures Redemption Reserve 2,00,000

Proposed Dividend for the Previous Year ended 31st March, 2018 1,80,000

Interim Dividend paid during the year 1,44,000

Provision for Tax made during the Current Year 2,00,000

Income Tax Paid 1,50,000

11. Prepare Common Size Balance Sheet of Vishal Paper Ltd. from the following information: [3]

31.3.2017 31.3.2016
Particulars
₹ ₹

Share Capital 21,00,000 21,00,000

Reserves and Surplus 9,10,000 6,00,000

Non-Current Liabilities 24,45,000 20,40,000

Current Liabilities 15,45,000 12,60,000

Non Current Assets 43,40,000 36,00,000

Current Assets 26,60,000 24,00,000

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 OR
Convert the following particulars into Common Size Statement of Profit & Loss and interpret the
changes in 2018:

Particulars Note No. 31.3.2018 31.3.2017

Revenue from Operations 18,00,000 15,00,000

Other Income 72,000 45,000

Cost of Materials Consumed 8,64,000 6,60,000

Employee Benefit Expenses 1,80,000 1,80,000

Other Expenses 54,000 1,05,000

12. From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing [5]
Activities. Also, show the workings clearly preparing the ledger accounts.

31.3.2015 31.3.2016
Assets
₹ ₹

Goodwill 1,00,000 3,00,000

Patents 2,80,000 1,60,000

Machinery 10,20,000 12,40,000

10% Long term investment 60,000 1,60,000

Investment in land 1,00,000 1,00,000

Shares of Amartax Ltd. 1,00,000 1,00,000

Additional Information :
i. Patents were written off to the extent of ₹ 40,000 and some Patents were sold at a profit of
₹ 20,000.
ii. A Machine costing ₹ 1,40,000 (Depreciation provided thereon ₹ 60,000) was sold for ₹
50,000. Depreciation charged during the year was ₹ 1,40,000.
iii. On March 31, 2016, 10% Investments were purchased for ₹ 1,80,000 and some Investments
were sold at a profit of ₹ 20,000. Interest on Investment was received on March 31, 2016.
iv. Amartax Ltd. paid Dividend @ 10% on its shares.
v. A plot of Land was purchased out of surplus funds for investment purposes and let out for
commercial use and rent received ₹ 30,000.

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