CBSE Accountancy Sample Paper for 2012 Class XII By Mr. Rachna Alok Sharma

Sample Paper – 2012
Class – XII
 Subject –Accountancy

Time Allowed - 3 Hrs.                                                                                                                     Max. Marks – 80

General Instructions:

1. This question paper contains three parts A, B and C.

2. Part A is compulsory for all.

3. Attempt only one part of the remaining parts B and C.

4. All parts of questions should be attempted at one place.

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Part A

(Accounting for Not-for-Profit Organisations, Partnership Firms and Companies)

1.       What is Membership Subscriptions?                                                                                                                               (1)

2.       Give two circumstances in which gaining ratio is applied.                                                                       (1)

3.       What is meant by Super Profit?                                                                                                                         (1)

4.       What is meant by a Debenture?                                                                                                                        (1)

5.       What do you mean by Calls-in-Arrear?                                                                                                           (1)

6.       From the following extract of Receipts and Payments Account and the additional information, you are required to calculate the income from subscriptions for the year ended 31^st March, 2009 and show them in the Income and Expenditure Account and the Balance Sheet of a club.

AN EXTRACT OF RECEIPTS AND PAYMENTS ACCOUNT

For the year ended 31^st March, 2009

Dr.                                                                                                                                                                          Cr.

Additional Information:                                                                                                       Rs.

(i)                  Subscriptions outstanding on 31^st March, 2008                                            6,000

(ii)                Subscriptions outstanding on 31^st March, 2009                                            5,000

(iii)               Subscriptions received in advance on 31^st March, 2008                            6,000                                                     (3)

7.       Explain the term ‘over-subscription’. How it is dealt in accounting records?                                                  (3)

8.       X Ltd. Issued 20,000 shares of Rs.10 each to the public to be paid as follows:

On Application Rs.4 each and on Allotment Rs.6 each.

Applications for 24,500 shares were received on 15^th March, 2009. Allotment was made on 30^th April, 2009 when money received on excess application was refunded. On 30^th May, 2009 allotment money was received with the exception of 400 shares. Show the Journal entries in the books of X Ltd.                (3)

9.       Amit and Vijay started a partnership business on 1^st April, 2007. Their capital contributions were Rs. 2,00,000 and Rs. 1,50,000 respectively. The Partnership Deed provided interalia that - (i) interest on capitals at 10% p.a.; (ii) Amit is to get a salary of Rs. 2,000 per month and Vijay Rs.3,000 per month; and (iii) Profits are to be shared in the ratio of 3:2.

The profits for the year ended 31^st March, 2008 before making above appropriations were Rs. 2,16,000. Interest on drawings amounts to Rs. 2,200 for Amit and Rs. 2,500 for Vijay. Prepare the Profit and Loss Appropriation Account.                                                                                                                                          (4)

10.    A, B and C are partners sharing profits and losses in the ratio of 5:3:2. From 1^st April, 2008, they decide to share profits and losses equally. The Partnership Deed provides that in the event of any change in profit-sharing ratio, the goodwill should be valued at three years purchase of the average of five years’ profits. The profits and losses of the preceding five years are:

Profit: 2003-04-Rs.60,000; 2004-05-Rs.1,50,000; 2005-06-Rs.1,70,000; 2006-07-Rs.1,90,000

Loss: 2007-08-Rs.70,000

Give the necessary Journal entry o record the above change.                                                                                             (4)

11.   A company issues 5,00,000 Equity shares of Rs.10 each at 10% discount. The net amount is payable as follows:                                                                                                                                                                                    (4)

On Application and Allotment Rs.4.00; on First call Rs. 2.50. a shareholder holding 200 shares did not pay Final call money. His shares were forfeited. Out of these 100 shares were reissued to Y at Rs. 7 per share to be credited as fully paid.

Pass the Journal entries in respect of forfeiture and reissue of shares only.

12 (a) Forward Looking Ltd. Purchased the assets of Backward Ltd. Of Rs.2,00,000. It also agreed to take over the liabilities of Backward Ltd. Amounting to Rs.50,000 for a purchase consideration of Rs. 1,60,000. The payment to Backward Ltd. Was made by issue of 9% debentures of Rs. 100 each at par.

Pass the necessary Journal entries in the book of Forward Looking Ltd.

(b)  On 28^th March, 2009 BCL Ltd. Converted its Rs. 1,00,000, 9% debentures issues at a premium of 10% into 8% preference shares of Rs. 100 each issues at a premium of 25%. Pass the necessary Journal entries on the redemption of Debentures.                                                                                                                          (3+3=6)

13.  Following Receipts and Payments Account is submitted to you by the Secretary of the Agricultural Society:                                                                                                                                                                                          (6)

RECEIPTS AND PAYMENTS ACCOUNTS

For the year ended 31^st March, 2009

Dr.                                                                                                                                                                                          Cr.

Additional Information:

(i)                  The Society holds Rs. 3,50,000, 10% Investments (cost Rs. 32,000).

(ii)                Subscriptions for 2008-09 amounting to Rs. 12,000 have since been received in 2009 – 10.

(iii)               Rs. 2,500 are owing to the printers. There is due to the Secretary of Rs. 2,500 being balance of salary on 31^st March, 2009.

Prepare the Income and Expenditure Account for the year ended 31^st March, 2009 and a Balance Sheet on that date.

14. X and Y are in partnership sharing profits and losses in the proportion of two-fifth and three-fifth. Following is their Balance Sheet as on 31^st March, 2009.                                                                                                             (6)

They decide to dissolve the partnership on this date. Assets (except Bills Receivable) realized Rs.4,84,000. Creditors agreed to take Rs. 38,000 in settlement of their claims. Realization expenses were Rs. 2,400. There was a motor cycle in the firm which was bought out of the firm’s money, was not shown in the books of the firm. It was now sold for Rs. 10,000. There was an outstanding electricity bill of Rs. 5,000. Bills Receivable taken over by Y at Rs. 33,000.

You are required to prepare the Realization Account; Partner’s Capital Accounts and the Cash Account.

15.  Reliable Investments Limited issued a prospectus inviting applications for 4,000 Equity shares of Rs. 20 each at a premium of Rs.4 per share payable as follows:

On Application Rs.4; on Allotment Rs.10 (including premium); on First Call Rs.6; on Second call Rs.4.

Applications were received for 6,000 shares and allotment was made pro rata to the applicants of 4,800 shares, the applications for remaining shares being refused. Money overpaid on application was used on account of sums due on allotment.

Harish, to whom 80 shares were allotted, could not pay the allotment money and on his subsequent failure to pay the First call, his shares were forfeited after the First Call.

Mukesh, to whom 120 shares were allotted, failed to pay the two calls and his shares were forfeited after the Second Call.

Of the shares forfeited, 160 shares were sold to Suresh credited as fully paid at Rs. 18 per share, all of Harish’s forfeited shares being included.

Pass the Journal entries in the books of the company to record the above transactions.                         (8)

16.  A and B are partners with profit-sharing ratio of 2:1. Their Balance Sheet on 31^st March, 2009 was as follows:                                                                                                                                                                                        (8)

They admitted C into partnership on this date. New profit-sharing ratio is agreed as 3:2:1. C brings in proportionate capital after the following adjustments:

(i)                  C brings Rs.10,000 in cash as his share of goodwill.

(ii)                Provision for doubtful Debts is to be reduced by Rs. 2,400.

(iii)               There is an old typewriter valued at Rs. 2,600. It does not appear in the books of the firm. It is now to be recorded.

(iv)              Patents are valueless.

Prepare the Revaluation Account, Capital Accounts and the opening Balance Sheet of A, B and C.

PART B: Analysis of Financial Statements

17. The Debt Equity Ratio of Reliance Furniture Ltd. is 1:2. State giving reason, whether the ratio will improve, decline or will have no change in case of redemption of debentures for cash.                                                          (1)

18. Define Cash Equivalents.                                                                                                                                                       (1)

19. When does a flow of cash arise?                                                                                                                                        (1)

20. State three objectives of financial analysis.                                                                                                                   (3)

21. From the following Balance Sheets of XYZ Ltd. On 31^st March, 2008 and 2009, prepare a Common-size Balance Sheet:                                                                                                                                                                        (4)

BALANCE SHEETS as on 31^st March

22. The quick ratio of a company is 1.5:1. State, giving reasons, which of the following would improve, reduce or not change the ratio:                                                                                                                                                     (4)

(i)    Purchase of stock for cash;

(ii)   Cash collected from debtors;

(iii) Sale of goods (costing Rs. 1,40,000) for Rs. 1,50,000;

(iv)                 Sale of office typewriter (book value Rs. 12,000) for Rs. 8,000.

23.          From the following Balance Sheets of XYZ Ltd., prepare the Cash Flow Statement:            (6)

Depreciation charged on plant was Rs. 10,000 and on building Rs. 60,000. Preference dividend of Rs. 9,000 paid during the year.