Class-XII Accountancy-II Time : 3 Hrs. : ; Instructions for the Students : Max. Marks +80 1. The question paper will cover whole of the syllabus. 2. There are 3 sections inthe question paper ie. Section A, Section B and Section C, Seaton a is compulsory for all the students and students may choose only one section from Section B and Section C. Section A, Section B and Section C will be set from the Part and Part-Hl and Parti i the syllabus respectively. o 3. 19 Questions will be set in the question paper. 4. All units of the syllabus should be given adequate representation in the question paper. 5, There is no word, line or page limit for numerical questions. 6. The use of non-programmable simple calculator is allowed. Section-A 7. Question No. 1 consists of 18 sub parts 1(j) to 1(xviii) carrying 1 mark each. Objective type questions may include questions with true or false / multiple choice type questions. 8. Question No. 2 to 9 (Out of which 3 will be the theoretical and 5 will be numerical) will carry 2 marks each. Answer of theoretical question should be given in 1-5 lines. Question No. 10 consists of 4 sub parts (i, ii, iii, 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 b: given in 10-15 lines. Section B and C 9. In Question No. 11 consists of 12 sub parts 11(i) 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 mimerical) 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.) Out of following items, which one is shown in the Receipts and Payments Account ? (@) Accrued Subscription (b) Life Membership Fees (©) Depreciation (@) Outstanding Salary (i) Receipts and Payments Account is a : (a) Real Account (b) Nominal Account (C) Personal Account (d) Real and Nominal Account, Both Gi) A public liberary is a non-profit entity. (True/False) 328‘ample Papers (@) wv (wi) (wii) (viii) (x) @) (xi) (xii) (xiii) (xiv) (xv) (xvi) (xvii) Which of the following items are recorded in the Profit & Loss Appropriation Account of a partnership firm ? (a) Transfer to Reserve (b) Salary to Partner (c) Interest on Capital (d) All of the above Bimla and Shimla came together to provide free food to poor COVID patients during the pandemic. They can call this as a partnership. (a) True (b) False (©) Can’t say (@) Partially true Goodwill is a valuable asset. (True/False) Unrecorded assets are shown on which side of the revaluation account ? (a) Debit side (b) Credit side (©) (a) and (b) (@) None of these Unrecorded liabilities are shown on which side of the revaluation account ? (a) Debit side (b) Credit side (©) @) and (b) (d) None of these ‘At the time of change in profit sharing ratio among existing partners, an unrecorded liability is credited to Revaluation Account. (True/False) Cis admitted in a firm for 1/4 share in profits for which he brings & 3,000 for goodwill. It will be taken away by old partners in (@) new profit sharing ratio (b) sacrificing ratio (0) old profit sharing ratio (d) None of the above The “Share of premium for goodwill” brought in by the new partner is divided in which ratio? (@) Innew ratio (b) In old Ratio (©) In sacrificing ratio (d) None of these When new partner does not bring his share of goodwill in cash, his current account will be debited. (True/False) The Profit & Loss on revaluation of assets/liabilities is transferred to the capitals of : (a) Only retiring partner (b) Remaining partners (©) All partners (@) None of these In the case of retirement of a partner full goodwill is credited to the accounts of (a) only retiring partners (b) all partners (c) only remaining partners (@) None of these Retirement of partners dissolves the partnership. (True/False) Unrecorded liability when paid on dissolution of a firm is debited to (2) liability account (b) realisation account (©) partners capital account (d) None of the above Out of the proceeds received from the sale of sundry assets...... will be paid first of all. (a) Partner's capital (b) Creditors liability (©) Partner's loan (d) None of the above(xviii) On the dissolution of a firm, cas !-in-hand is transferred to the ‘Realisation Account’, (True/False) (1x 18= 18) What is Fund Based Accounting ? 2 A firm's average profits are ® 80,000. It includes an abnormal profit of € 5,000. Capita invested in the business is % 5,00,000 and the normal rate of retumn is 10%. Calculate goodwill at three times the super profit. 5 What are the Adjustment required at the time of change in profit sharing ratio ? 2 X. Y and Z are three partners sharing Profits and Losses in 5 : 3 : 2. They agree to share future Profits and losses equally. On the same date their balance sheet showed a general reserve of € 54,000, Pass the necessary Journal entry if partners decide not to distribute general reserve. 2 Andy and Bali are partners sharing profits equally. They admit Chetan into partnership, Chetan paying only & 70,000 for premium out of his share of premium of & 1,08,000 for 1/4th share of profit. Goodwill account appears in the books at % 2,00,000. Give the necessary journal entries. 2 Alpha, Beeta and Gamma are partners in 7 : 5 : 6 ratio. Find out the new profit sharing ratio : (i) If Alpha retires (ii) If Beeta retires and (iii) If Gamma retires. 2 A, B and C are partners sharing profits in the ratio of 2 : 2: 1. A retires and after all adjustments relating to revaluation, goodwill and accumulated profits the capital account of B showed a credit balance of € 1,30,000 and that of C % 1,10,000. It was decided to adjust the capitals of B and C in their profit sharing ratio. Calculate the new capitals of the partners and record necessary entry for bringing in or withdrawing cash. 2 Pass the necessary Journal entries for the following transactions at the time of dissolution of the firm : Loan of € 10,000 advanced by a partner to the firm was refunded. X, a partner, takes over an unrecorded asset (Typewriter) at € 300. Undistributed balance (Debit) of Profit and Loss Account € 30,000. The time firm has three partners X, ¥ Z. (iv) The assets of the firm realized & 1,25,000. (¥) Y who undertakes to carry out the dissolution proceedings is paid € 2,000 for the same. (vi) Crditors paid € 28,000 in full settlement of their account of & 30,000. 2 Attempt any three questions out of four. 10. (i) The following is a summary of cash transactions of Sutlej club for the year ending 31° December, 2022. Particulars Amount Particulars Amount z z To Balance of Last Year 480 | By Rent and Rates 255 To Subscriptions and Entrance fee 2,790 | By Wages of Servants 360 To Donations 180 | By Light Repairs 129 To Life membership fee 375 | By Lecture Fee and Exp. 1,254 To Interest on investments 150 | By Purchase of stool 60 To Profit from Entertainment 60 | By Office Expenses 186By Sundry Expense 450 By Purchase of National Saving 750 Certificates By Cash in hand 591 4035 4,035 At the beginning of year, the club had investments worth & 4,875 and musical instruments worth & 1,305. There were 32 life members on the date each of whom has paid a subscription of € 75. There was a separate fund for this purpose. Ordinary subscription in arrears at the beginning and end of year amounted to & 60 and % 75 respectively. Rent of & 90 was due both at the beginning and end of the year. Prepare Income and Expenditure account, 4 (ii) Give any four points showing importance of. Partnership Deed. 4 (iii) X and Y are partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31° March, 2022 stood as under : Liabilities z Assets z Capitals : Machinery 66,000 x 70,000 | Furniture 30,000 Y 60,000 | Investments 40,000 General Reserve 20,000 | Stock 46,000 Bank Loan 18,000 | Debtors 38,000 Creditors 72,000 | Less : Provision 4,000 | 34,000 Cash 24,000 2,40,000 2,40,000 On 1* April, 2022 they admitted Z for 25% share in profits on following terms : (i Z brings 49,000 for capital % 8,000 for goodwill out of his share of € 14,000. (ii) Depreciate furniture by 10%. Gii) Half of investments were to be taken over by X and Y in their profit sharing ratio and remaining valued at % 26,000. (iv) New ratio will be 3 : 3 : 2. Prepare Revaluation Account, Capital Accounts and Balance Sheet after Z’s admission, 4 What do you mean by dissolution of a partnership ? 4 Section-B At the time of forfeiture of shares, the share capital account is : (a) credited with the called up amount of the shares (b) debited with called up amount of the forfeited shares (c) debited with face value of the shares (d) credited with the face value of the shares Balance of share forfeiture account is shown in the balance sheet under the item : (a) share capital account (b) current liabilities and provisions (c) reserve and surpluses (d) unsecured loans Prorata allotment of shares can be made in case of under-subscription. (True/False) Debenture Application Account is in the nature of : (a) Nominal Account (b) Real Account (© Personal Account (d) None of the abovewv) wi) (vii) (viii) Discount on issue of Debentures is in the nature of : 2 a (a) Capital Pa (b) Deferred Revenue Expenditure (c) Revenue Loss (d) None of the above Profit on redemption of debentures is transferred to Statement of Profit and Loss, The balance sheet of a company (True/False) a) should be prepared in any form so as to gi it pi : ae mae ee ry to give a truc and fair picture of the state of affiars (b) must be prepared in the form set out by law (c) may be prepared in any form (a) None of these Main limitation of analysis of financial statements is : (a) Donot reflect changes in price level (b) Difficulty in forecasting (c) Affected by window dressing (@) All of the above Current ratio is a balance sheet ratio. (True/False) (ix) (x) Increase in the amount of prepaid Expenses result in (a) No change in cash (b) Increase in cash (©) Decrease in cash (d) None of these (xi) Cash flow statement is based upon (a) Hybrid System of Accounting (b) Accrual Basis of Accounting (c) Cash Basis of Accounting (d) None of these (aii) Patents purchased by a company will be an operating activity. (True/False) (1x 12=12) 12. What is Sweat Equity Shares ? 2 13, 400 shares of 10, on which & 8 has been called and & 6 has been paid, are forfeited. Out of these, 300 are re-issued for & 7 as fully paid. Give journal entries. 2 14, Rashmi Ltd, issues at par 20,000, 12% Debentures of € 100 each redeemable at par after 4 years. Joumnalise. 2 15, What is the purposes source of Debenture Redemption Reserve Account ? 2 16. From the following information, prepare com arative income statement: Particulars 31-3-2022 eral z Sales 740% of COGS 750% of COGS coGs 10,00,000 42,00,000 Admn. Expenses 4,50,000 2,00,000 Other Expenses 50,000 4,50,000 Income Tax 40% 50% TT Tho ratio of Current Assets (% 600,000) to Current Liabilities € 4,00,000) is 15: 1. The 18. nt Ratio of 2: 1, by paying off Liabilities that should be accountant of the firm is interested in maintaining a Curre part of the Current Liabilities. Compute the amount of Current paid, so that the Current Ratio at the level of 2: 1 may be maintained. 2 What is the difference between cash flow statement and cash budget ?Ssampte ruper = ‘Attempt any two questions out of three. 19.(i) A limited Company was registered with an authorised capital of & 2,00,000 in & 10 shares, of these 6,000 shares were issued as fully paid to the vendors for the purchase of buildings. 8,000 shares were subscribed for by the public and during the first year € 6 per share were called-up, payable T 3 on application, & 1 on allotment, & 1 on first call, and € 1 on second call. The amounts received in respect of these shares were as follows : On 6,000 shares the full amount called. On 1,200 shares & 5 per share. On 500 shares 4 per share. On 300 shares € 3 per share. The directors forfeited 800 shares on which less than % 5 per share had been paid. Show journal entries in the books of the company. (i) What do you mean by ‘Debentures issued as Collateral Security’. 4 4 ii) From the following detail relating to the accounts of Chandigarh Ltd. Prepare Cash Flow Statement. Equity and Liabilities 31.03.22 31.03.23 ‘Share Capital 150,000 250,000 40% Debentures 1,00,000 1,50,000 Profit and Loss Account 35,000 50,000 Bills payable 25,000 30,000 Provision for taxation 20.000 25,000 3,30 000 5,05,000 Assets 31.03.22 31.03.23 Cash in hand 10,000 20,000 ‘Stock 25,000 30,000 ‘Sundry Debtors 85,000 65,000 Bills receivable 50,000 40,000 Plant & Machinery 1,50,000 3,50,000 Discount on issue of Shares 10,000 = 3,30,000 '5,05,000 ‘Additional information : (@ Dividend of ® 5,000 was paid during the year. (ii) % 20,000 was paid towards income tax during the year. (iii) New debentures were issued for ¥ 50,000 on 31st March 2023.