Podar International School- CBSE

Sub: Accountancy (055)

Std XII
Term II- Pre Board Exam 1
Maximum Marks – 40 Date -11 February 2022
Duration- 120 minutes
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 is Analysis of Financial Statements
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.
Q. Questions Marks
No.
Part – A
(Accounting for Not For Profit Organisations,
Partnership Firms and Companies)
1 1. Present the following items in the Balance Sheet of Queen's Club as at 31st March, 2019: 2

Capital Fund (1st April, 2018) Rs.10,80,000

Building Fund (1st April, 2018) Rs.4,80,000
Donation received for Building Rs.6,00,000
10% Building Fund Investments (1st April, 2018) Rs.4,80,000
Interest received on Building Fund Investments Rs.48,000
Expenditure on construction of building Rs.3,60,000. The construction work is in progress and has not
yet been completed
2 Differentiate between Partnership firm debts and private debts on the basis of 2
i)Liability and
ii)Application of private property
3 P, Q and R are partners in a firm sharing profits and losses in ratio 4: 3: 2. Q decided to retire from 2
the firm. It was decided that P will take 2/9th share and R will take 1 /9th share of Q. For this purpose,
goodwill is valued at 2 years' purchase of super profit. The average profit of the last 3 years is
Rs.42,000 and normal profit of similar firm is Rs.28,500.
Record the necessary journal entry for goodwill on retirement of Q
4 Bombay Sports Club, disclosed that it received Rs.1,50,000 by way of subscription during the year 3
ended 31st March, 2020.
Additional Information: (Rs.)
Subscription outstanding 2018-19 (of which Rs.4,000 received in 2019-2020) 6,000
Advance subscription received 31-3-19 4,500
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 Advance subscription received 31-3-20 5,100
Subscription outstanding on 31-3-20 for 2019-2020 3,800
Show how the subscription will appear in Income and Expenditure Account and Balance Sheet of
2019-2020?
OR
Calculate the amount of sports material to be transferred to Income and Expenditure account of
Raman Bhalla Sports Club, Ludhiana, for the year ended 31st March, 2018:
Particulars Amount (Rs.)
1. Sports Material sold during the year (Book Value Rs.50,000) 56,000
2. Amount paid to creditors for sports material 91,000
3. Cash purchase of sports material 40,000
4. Sports material as on 31-3-2017 50,000
5. Sports material as on 31-3-2018 55,000
6. Creditors for sports material as on 31-3-2017 37,000
7. Creditors for Sports material as on 31-3-2018 45,000
5 Amit, Vijay and Prakash were partners in a firm sharing profits and losses in the ratio of 2:2:1. The 3
firm closes its books on 31st March every year. Vijay died on 1st July 2019.
As per the terms of partnership deed on the death of any partner’ the share of goodwill of the
deceased partner will be calculated on the basis of two years purchase of average profit of last three
years
The average profits for the last three years were Rs30000
His representatives would be entitled to get interim profit on the basis of sales. Sales and profits for
the year 2018-19 amounted to Rs 1,80,000 and Rs 45,000 respectively. Sales from 1st April 2019 to
30th June 2019 amounted to Rs1,00,000. The rate of profit to sales remains same in these two years.
Pass necessary journal entries relating to the amount of goodwill and profit to be transferred to Vijay's
Capital Account. Also show your workings clearly.
6 Z Ltd. purchased machinery from K Ltd. Z Ltd. paid K Ltd. as follows: 3
(i) By issuing 5,000 equity shares of Rs.10 each at a premium of 30%.
(ii) By issuing 1,000, 8% Debentures of Rs.100 each at a discount of 10%.
(iii) Balance by giving a promissory note of Rs.48,000 payable after two months.
Pass necessary journal entries for the purchase of machinery and payment to K Ltd. in the books of Z
Ltd.
OR
Shruti Ltd. bought the business of Shinkey Ltd. on 1 - 4 - 2019 consisting of Sundry Assets of
Rs.5,60,000 and creditors Rs.1,00,000 for a purchase consideration of Rs.5,00,000. Rs.1,00,000 was
paid in cash and for balance 6% Debentures of Rs100 each were issued at a premium of 25%.
Pass necessary journal entries in the books of Shruti Ltd. for the above transactions.
7 Give the necessary journal entries for the following transactions on dissolution of the firm of Anita 5
and Ravi on 31st March, 2016, after the various assets (other than cash) and the third-party
liabilities are transferred to Realisation Account. They shared profits and losses in the ratio of 3:2.
(a) Ravi was to get a remuneration of Rs.23,000 for completing the dissolution process. He also
agreed to bear realisation expenses. Realisation expenses of Rs.10,000 were paid by Ravi from
the firm’s cash.
(b) Amitesh, an old debtor whose account for Rs.60,000 was written off as bad debt in the
previous year, paid 90%.
(c) Creditors of Rs.40,000, accepted furniture valued at Rs.38,000 in full settlement of their claim.
(d) Land and Building was sold for Rs.3,00,000 through a broker who charged 2% commission.
(e) Profit on realisation was Rs.45,000.

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 OR
Following in the Balance Sheet of X, Y and Z as on 31st March, 2019. They shared profits in the ratio
of 3:3:2
Liabilities (Rs.) Assets (Rs.)
Creditors 2,50,000 Cash at Bank 50,000
General Reserve 80,000 Bills Receivables 60,000
Partner's Loan A/Cs: Debtors 80,000
X 50,000 Less: Prov. for B.D. 4,000 76,000
Y 40,000 Stock 1,24,000
Capital A/Cs: Fixed Assets 3,00,000
X 1,00,000 Advertisement Suspense A/c 16,000
Y 60,000 Profit & Loss A/c 4,000
Z 50,000
6,30,000 6,30,000

On 1st April, 2019, Y decided to retire from the firm on the following terms:
(a) Stock to be depreciated by Rs.12,000.
(b) Advertisement Suspense A/c to be written off.
(c) Provision for Bad and doubtful debts to be increased to Rs.6,000.
(d) Fixed Assets be appreciated by 10%.
(e) Goodwill of the firm be valued at Rs.80,000 and amount due to retiring partners be adjusted in
X's and Z's Capital A/cs.
Prepare Revaluation Account and Partners' Capital Accounts t to give effect to the above.
8 On April 1, 2020, X Ltd. issued, 30,000, 12% debenture of ₹100 each at premium of 10% to be 5
redeemable at a premium of 5%, after 5 years. The entire amount was payable on application.
The securities premium amount has not been utilized for any other purpose during the year.
You are required to answer the following questions:
i) Pass journal entry for allotment of debentures
ii) Pass journal entry to write off Loss on Issue of Debentures
iii) What is the amount received for debentures?
iv) Prepare Loss on Issue of Debentures Account.
v) What will be the amount of Interest on debenture for the year ended 31 st
March 2021?
9 From the following particulars relating to the Rama Krishna Mission Charitable Hospital, prepare 5
Income and Expenditure Account for the year ended 31st March, 2019.
Receipts and Payments Accounts
Dr. for the year ended 31st March, 2019 Cr.
Receipts (Rs.) Payments (Rs.)
To Cash in Hand 1-4-2018 7,130 By Medicines 30,590
To Subscription 47,996 By Doctor's Honorarium 9,000
To Donations 14,500 By Salaries 27500
To Interest on Investment @ 7% for full 7,000 By Petty Expenses 461
year
To Proceeds from Charity Show 10,450 By Equipments 15,000
By Expenses on Charity 750
show
By Cash in Hand 31-3-2019 3,775
87,076 87,076

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 Additional Information:
Information 1-4-2018 (Rs.) 31-3-2019 (Rs.)
Subscription due 240 280
Subscription Received in Advance 64 100
Stock of Medicines 8,810 9,740
Building (cost less depreciation) 40,000 38,000
Part – B
(Analysis of Financial Statements)
10 Classify the following activities as (i) Operating (ii) Investing or (iii) Financing 2
in case of Financing Enterprise:
(a) Proceed from sale of Investment
(b) Interest received on Debentures held as Investments
11 Following is the Statement of Profit and Loss of Sun India Ltd. for the year ended 31st March, 2015: 3
Particulars Note No. 31-3-2015 (Rs.) 31-3-2014 (Rs.)
Revenue from Operations 25,00,000 20,00,000
Other Income 1,00,000 5,00,000
Employees Benefits Expenses 60% of Total Revenue 50% of Total Revenue
Other Expenses 10% of employees 20% of employees
benefit expenses benefit expenses
50% 40%
Tax rate
You are required to prepare a Comparative Statement of Profit and Loss of Sun India Ltd. From the
given Statement of Profit and Loss
OR
From the following Balance Sheet of R Ltd., prepare a Common Size Statement:
Particulars Note No. 31-3-2018 31-3-2017 (Rs.)
I. EQUITY AND LIABILITIES (Rs.)
(1) Shareholder’s Fund
(a) Equity Share Capital 2,50,000 2,00,000
(b) Reserves and Surplus 80,000 60,000
(2) Current Liabilities
(a) Trade Payables 70,000 40,000
Total 4,00,000 3,00,000
II. ASSETS
(1) Non-current Assets
(a) Fixed Assets
(i) Tangible Assets 1,60,000 1,20,000
(ii) Intangible Assets 20,000 30,000
(2) Current Assets
(a) Inventories 80,000 30,000
(b) Trade Receivables 1,20,000 1,00,000
(c) Cash and Cash Equivalents 20,000 20,000
Total 4,00,000 3,00,000

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12 Following is the Balance Sheet of X Ltd. As at 31st March, 2018: 5
Balance Sheet of X Ltd.
As at 31st March, 2018
Particulars Note No. 31-3-2018 (Rs.) 31-3-2017 (Rs.)
1 EQUITY AND LIABILITIES
(1) Shareholders' Fund:
(a) Share Capital 19,00,000 17,00,000
(b) Reserve and Surplus 1 6,00,000 3,00,000
(2) Non-current Liabilities:
Long-term Borrowings 2 5,00,000 4,00,000
(3) Current Liabilities:
(a) Short-term Borrowings 3 1,70,000 1,75,000
(b) Short-term Provisions 4 2,00,000 1,65,000
Total 33,70,000 27,40,000
II. ASSETS:
(1) Non-current Assets:
(a)Fixed Assets:
(i) Tangible Assets 5 24,00,000 19,00,000
(ii) Intangible Assets 6 2,00,000 3,00,000
(b) Non-current Investments 3,00,000 2,00,000
(2) Current Assets: 1,40,000 1,70,000
(a) Current Investments 2,60,000 1,30,000
(b) Inventories 70,000 40,000
(c) Cash and Cash Equivalents
Total 33,70,000 27,40,000
Notes to Accounts:
Note Particulars 31-3-2018 31-3-2107 (Rs.)
No. (Rs.)
1. Reserves and Surplus
(Surplus i.e., Balance in Statement of Profit and 6,00,000 3,00,000
Loss)
6,00,000 3,00,000
2. Long-term Borrowings:
12% Debentures 5,00,000 4,00,000
5,00,000 4,00,000
3. Short-term Borrowings
Bank Overdraft 1,70,000 1,75,000
1,70,000 1,75,000
4. Short-term Provisions:
Provision for Tax 2,00,000 1,65,000
2,00,000 1,65,000
5. Tangible Assets:
Machinery 26,00,000 20,00,000
Less: Accumulated Depreciation (2,00,000) (1,00,000)
24,00,000 19,00,000

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 6. Intangible Assets:
Goodwill 2,00,000 3,00,000
2,00,000 3,00,000

Additional Information:
(i) Rs.1,00,000, 12% Debentures were issued on 1st April, 2017.
(ii) During the year, a piece of machinery costing Rs.80,000 on which accumulated depreciation
was Rs. 40,000 was sold at a gain of Rs.10,000.
Prepare a Cash Flow Statement.