Class-XII Accountancy-II Max. Marks : 80 sections i caarean the students and students may choose only one scction from Section B and is Cre sion ‘A, Section B and Section C will be set from the Part-I and Part-II and Part-II] of tion C. : ¢ respectively. the syllabus rivo Questions will be set in the question Paper 4, All units of the syllabus should be given adequate representation in the question paper. : Tine or page limit for numerical questions. re is no word, : te ~ pt non programmable simple calculator is allowed. : Section-A £18 sub parts 1({) to A(xviii) carrying 1 mark each. Objective type tion No. 1 consists o ‘ : fe th tre or false / multiple choice type questions. theoretical and 5 will be numerical) will carry © questions may include questions wit 2 marks each, Answer of theoretical question should be given in 1-5 lines. Question No. 10 consists of 4 cub parts (j i, ii, iv) out of which 2 will be numerical and 2 will be theoretical (Attempt any 3 questions out of Four) Each question will carry 4 marks. Answer of theoretical question should be given in 10-15 lines. 8. Question No. 2 to 9 (Out of which 3 will be th Section B and C 9, In Question No. 11 consists of 12 sub parts 11() to 11(xii) carrying 1 mark each. Objective type questions may include questions with true or false / multiple choice type questions. 10. Question No. 12 to 18 (Out of which 3 will be the theoretical and 4 will be numerical) will carry 2 marks each. Answer of theoretical question should be given in 2-5 lines. Question No. 19 consists of 3 sub parts (i, ii, iii) out of which 2 will be numerical and 1 theoretical (Attempt any two questions out of three). Each question will be 4 marks. Answer of theoretical questions should be given in 10-15 lines. Section-A 1.(i) Income and Expenditure Account records transactions of : (a) Income of only revenue nature and expenditure of revenue and capital nature (b) Both Revenue and Capital nature (c) Revenue nature only _ (@) Capital nature only ii) aoe & Expenditure Account is a: (a) Real Ac it i ccount (b) Nominal Account (c) Personal Account (d) i iy Oily capi pu ‘ (d) Capital Account es are s| it i own in the Receipts and Payments Account. (True/False)) Where a partner is entitled 10 interest on capital subscribed by him, such interest will (iv) cl : payable. ' (a) out of profits or out of capital (b) only out of profits (c) only out of capital (d) none of these (v) Pick the odd one out : (a) Salary to a Partner (b) Rent to a Partner (c) Commission to a partner (d) Interest on Partner's capital (vi) Goodwill is a saleable asset. (True/False) (vii) Profit or loss on revaluation is transferred to partners’ capital accounts : (a) Continuing partner (b) Old partners (c) New partner (d) All partners (viii) A new partner may be admitted to a partnership firm : (a) with the consent of 2/3rd of old partners (b) with the consent of all old partners (c) without the consent of old partners (d) with the consent of any one partner (ix) Any change in existing agreement of partnership results in reconstitution of a firm . (True/False) (x) When a new partner does not bring his share of goodwill in cash amount is debited to : | (@) Cash Account (b) Current A/c of new partner | (©) Capital amount of new partner (@) Goodwill Account (xi) The balance of Investment Fluctuation Fund after meeting the fall in book value of Investment at the time of admission of a Partner is transferred to : (@) Capital A/cs of all partners (b) Revaluation A/c (©) Capital A/c of old partners (d) General Reserve (xii) Itis often desired to revalue the assets and liabilities at the time of admission of a partner. (True/False) siti) On the death of a partner, the amount due to him will be credited to: (@) Governments’ Revenue Account () His Executor’s Account (©) Remaining Partner's Capital Accounts @ All partners’ capital Accounts Gv)” Where any partner retires, and the remaining partners carry on the business with the firm's Property without any final oan Settlement of accounts, the outgoing partner is entitled to , roe of the profits as may be attributable to the use of his share of the firm's interest at 11 . ® Heale ©f'5% per annum of the amiount due to hinagomple rus (o) interest at 6% per annum of the amount due to him (@)cither a or ¢ from the above frm with the consent of all the other partners only. (xv) A partner can retire from the fi (True/False) (avi) On dissolution, if partner under takes to make payment of a Liability of the firm .. is debited. (a) Cash Account (b) Partners’ Capital Account (c) Realisation Account (d) Profit and Loss Account {avii) A partnership firm is compulsority dissolved : (a) When a partner transfer his share to some other person: without the consent of other partners. (b) When a partner of the firm becomes insolved. (©) When a partner of the firm dies. (@ When the business of the firm is declared illegal. (vii) Partner's loans have to be paid before any payment is made to any of the partners as capital, : (True/False) (1x 18 = 18) 2. What is Income and Expenditure Account ? 2 3. Calculate goodwill of the firm on the basis of 3 year’s purchase of the average profits of the last five years. The profits of the last five years were : Year Amount @) 2018-19 4,00,000 2019-20 5,00,000 2020-21 (60,000) 2021-22 150,000 2022-23 2,50,000 Additional Information : (i) On 1" January, 2021, a fire broke out which resulted into a los y . ss of goods of claim of & 70,000 was received from the insurance company. ee (ii) During the id s i Ding the yar nde 31" March, 2022 he rm ecved an unexposed tx refund of & Why Revaluation of assets and liabilities is necessary. When there is change in pr 7 rofit sharing ratio among existing partners ? 5. Aand B are partners i i in rati fe ea ae ee i firm sharing profits in ratio of 5 : 3. Their Balance Sheet as at 31st en . ia sd aa 29,000 | Cash i ae 18,000 | Plant cried 20,000 | Building ieee 67,000 so.002 67,000316 waa .dwill of the firm has been valued at % 24,000 and the building at % 46,000 on 31st will o' s a 0 share profits equally with effect from Ist April, 2022, 1022. The partners decide t y : ae ear . record the necessary accounting entries to be made in the books of the ‘ou are firm on account of change in the profit sharing ratio without affecting the existing figures of building. 2 ‘Aand B are partners sharing profits in the ratio of 3 : 2. They admit C into the firm for 1/4th share in profit which he takes 1/6th from A and 1/12th from B. C brings % 50,000 as goodwill out of his share of € 90,000. No goodwill account appears in the books of the firm. 2 7. How can a partner retire from the firm ? 2 8. Give the journal entry to distribute ‘Workman Compensation Reserve’ of % 70,000 at the time of retirment of Sajjan, when there is claim of € 25,000 against it. The firm three 2 a Pass necessary journal entries to record this arrangement. partners Rajat, Sajjan and Kavita. 9. A firm is under dissolution. Pass journal entries in the following cases : (a) Realisation expenses of the firm amounting to % 1,600 paid by partner A. (b) One creditor worth & 4,500 took over stock valued at % 5,200 in full satisfaction of his claim. (©) An unrecorded asset realized € 3,500. 2 Attempt any three questions out of four. 10. (i) Following is the Receipts and Payments Account of Queen Club : RECEIPTS AND PAYMENTS ACCOUNT DR. FOR THE YEAR ENDED 315T MARCH, 2022 CR. Receipts z Payments x To Balance bid: By Rent 60,000 Cash in Hand 1,38,000 By Salary 4,20,000 ca gt Bank : 7,00,000 | 8,38,000 | By Postage and Courier : 3,000 es eee iptions : By Electricity Charges 60,000} | pa 50,000 By Fumiture 2,00,000 a 8,30,000 By Books "30,000 2 oe sey 30,000} 9,10,000 | By Bonds 15,00,000 oe on roar eae aia to Students 2,20,000 To Sale of Fumiture (Book value | 39 000 ca psig 30.000) x ash in Hand 1,07,000 Cash at Bank 4,00,000 Prepare Income and Bi *penditure Account for the year ended 31™ following adjustments : March, 2022 after the(ii) Interest due on Bonds was % 70,000. Rent outstanding was % 20,000, (iii) Book value of investment sold was % 8,00,000, % 3,00,000 of the investments were still eee received in the year ended 31" March, 2022 included % 4,000 from a life member. (v) Total furniture on 1“ April, 2021 was worth & 120,000. (vi) Salary paid for the year ended 31" March, 2023 is € 30,000. 4 (ii) Write Duties of Partners. 4 (ii) P and Q are partners in a firm sharing profits and losses in the ratio of 5 : 3. On 31-12-2022, their Balance Sheet was as under : Liabilities z Assots = Sundry Creditors 4,000 | Machinery 12,000 Bils Payable 2,000 | Stock 8,000 | Capital : Sundry Debtors 7,200 P 12,000 Bank Balance 500 ja 10,000 | _ 22,000 | Cash in Hand 300 28,000 28,000 On the above date, the partners decide to admit “R’ as a new partner on the following terms : The new profit sharing ratio will be 7 : 5: 4 between P, Q and R respectively. R shall bring & 8,000 as capital and & 4,000 for his share of goodwill. P and Q will draw half of the goodwill in cash, Machinery is to be valued at & 15,000, Stock at 10,000 and Provision for bad debts of 1,000 is to be created. There is a liability of € 2,000 being the outstanding salary payable to employees of the firm. This liability is not included in the creditors. Partners decide to show this liability in the books of account. Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the new firm, i (iv) What are the various Steps to be taken to close the books of accounts at the time of dissolution ? 4 Section-B 1.) Which shareholders are retumed their capital after some specified time : (a) Participating Preference Shares (b) Cumulative Preference Shares . i os Preference Shares (d) Redeemable Preference Shares ¢ following statements apply to equity/preference : shareh i applies only to preference shareholders ? Piven Ot ame we (@) Dividend are usually given ata set amount in every financial year,(©) Shareholders usually have the right to vote. (c) Shareholders bear the risk of no dividends in the event of losses. (d) Shareholders Gi) Promoters are the owners of a Company, (True/False) (iv) Which of the following rer Debentures ? (a) The interest on it is paid to the holder irrespective of identity (®) They are transferable by mere delivery (c) Their transfer requires a deed of transfer (d) They are treated as negotiable instruments. (¥) Which of following statements is false ? (a) Interest on debenture is a charge against profits k the loss of investment. not a characteristic of Be () In company’s balance sheet, debentures are shown under the head Long term Borrowings. (©) Debentures can be forfeited for non-payment of call money. (d) At maturity, debentureholders get back their money. (vi) Redemption of Debentures imply the payment of interest in time. (True/False) (vii) In a company’s Balance Sheet ... --- appear under the head ‘non-current assets’, (2) Vehicles (b) Patents (©) Goodwill (@) Alll of the above (ali) "When bad position of the business is tried to be depicted as 004, it is known as .. (2) Window Dressing (b) Price Level Changes (©) Personal Bias (d) All of the above (ix) Higher turnover ratios indicate efficient use of Tesources. (True/False) (%) While calculating cash from operating activities... are added (2) decrease in current liabilities (b) decrease in current assets (c) increase in debtors (d) all the above (xi) It may be technical insolvency it ite of sufficient net working capital due to (a) Considerable amount of credit sale (b) piling up of large quantity of goods (©) inefficiency in the collection of Debts (@) All the above Gif) Sale of goods on credit is not a source Of cash, (True/False) (1x 12= 12) 2 12. What is meant by equity share ? 13. Ravi Ltd, forfeited 800 shi 2.50 per share, Out of these, 600 shares wer Pass necssary journal entries, 14. X Ltd. bought machinery from Y & Co, for % 5,80,000, balance by issuing 10% debentures of & 10 each at 5% books of X Ltd, It paid & 1,05,000 by cheque and the discount, Pass journal entries in :15, When cana Debenture be redeemed ? 2 Jé,_ From the following information, prepare a comparative Statement of Profit and Loss of XYZ Ltd. + eaters 2021 - 22 2022 - 23 Pal m Operations 2,00,000 2,50,000 Fee Stock-in- Trade 1,00,000 1,25,000 ployee’ Benefit Expenses 20,000 20,000 2 11, X Lid’s inventory is 1,12,000; Liquid Assets are € 1,20,000 and quick ratio is 1.6. Work out the current ratio. ; ; 2 18, What treatment is needed regarding Amortsation of goodwill, while computing operating net profit ? 7 ‘Attempt any two questions out of three. 19.4) A limited company issued a prospectus inviting applications for 2,000 shares of € 10 each at a premium of @ 2 per share payable as follows : On Application z2 On Allotment %5 (including premium) On First Call. 3 On Second and finals Call I ‘Applications were received for 3,000 shares and allotment made pro-ra:. ty te applicants for 2,400 shares, the remaining applications being refused. Money overpaid on applications was employed on account of sums due on allotment. X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited Y, the holder of 60 shares failed to pay two calls and his shares were forfeited after the second call. Of the shares forfeited, 80 shares were reissued to Z, credited as fully paid up for € 9 per share, the whole of X’s shares being included. Pass journal entries. 4 (ii) Give important features of debentures ? 4 (iii) From the following Balance Sheets of Vikas Ltd. as at 31.3.2023 and 31.3.2022, prepare a Cash Flow Statement : a Particulars 343.2023 | 34.3.2022 (1) Shareholder’s Funds : ‘ ; | | (@) Share Capital Hafele cr 1,00,000 75,000 patie 55,000 30,000 (2) Current Liabilities : om ea (a) Bank Overdraft (b) Sundry Creditors ae 15,000 (©) Bils Payable oo oe 2,000 3,400 TOTAL 2,32,000 7,57,400Il. Assets = (1) Non-Current Assets : Fixed Tangible Assets 1,61,000 93,400 (2) Current Assets : (@) inventory 27,000 24,000 (b) Sundry Debtors 36,000 36,000 (©) Bills Receivable 3,000 i (a) Cash and Cash Equivalents 5,000 4,000 TOTAL 2,32,000 |__1,57,400 Additional Information : I. Depreciation charged on fixed tangible assets for the year 2022-2023 was € 30,000. 4 Il. Income Tax & 5,000 has been paid during the year. —<——