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PB 161Accounts–XII Past Years’ Papers

CBSE PAST YEAR - 2009 SET 1

ACCOUNTANCY

Class XII

Part A

(Not for Profit Organization, Partnership Firms and Company Accounts)

Q 1. When the Receipts & Payments Account is converted into an Income & Expenditure Account, an accounting concept is to be followed for the provisions of the Accruals & Outstanding. Name the concept that is followed. 1

Q 2. Can a partner be exempted from sharing the losses in a firm? IF yes, under what circumstances? 1

Q 3. Why should a firm have a partnership deed? 1

Q 4. How is interest on drawings calculated, if the drawings are made at regular intervals, as on the first day of each month? 1

Q 5. Why would an investor prefer to invest in the Debenture of a Company rather than in its Shares? 1

Q 6. From the following information calculate the amount of subscriptions to be credited to the Income & Expenditure Account for the year 2007 – 08.

Rs.

Subscriptions received during the year 80,000

Subscriptions outstanding on 31st March, 2007 26,000

Subscriptions outstanding on 31st March, 2008 6,000

Subscriptions received in Advance on 31-3-2007 15,000

Subscriptions received in Advance on 31-3-2008. 10,000

Subscriptions of Rs.12,OOO are still in arrears for the year 2006-07. 3

Q 7. The Directors of a Company forfeited 200 shares of Rs.10 each issued at a premium of Rs.3 per share, for the non-payment of the First Call Money of Rs.3 per share. The final call of Rs.2 per share has not been made. Half the forfeited shares were reissued at Rs.1000 fully paid. Record the Journal Entries for the forfeiture & reissue of shares. 3

Q 8. Meena Ltd. issued 60,000 shares of Rs.10 each at a premium of Rs.2 per share payable as Rs.3 on Application, Rs.5 (Incl. Premium) on allotment and the balance on 1 SI and final call. Applications were received for 1,02,000 shares. The Directors resolved to allot as follows:

(A) Applicants of 60,000 shares 30,000 shares

(B) Applicants of 40,000 shares 30,000 shares

(C) Applicants of 2,000 shares Nil

Nikhil who had applied for 1,000 shares in category A, and Vish who was allotted 600 shares in category B failed to pay the allotment money. Calculate the amount received on Allotment. 3

Q 9. A, B & C were partners in a firm having capitals of Rs.60,000; Rs.60,000 and Rs.80,000 respectively, Their Current Account balances were A : Rs.10,000; B: Rs.5,000 and C: Rs.2,000 (Dr). According to the partnership deed the partners were entitled to interest on capital @ 5% p.a. C being the working partner was also entitled to a salary of Rs.6,000 p.a. The profits

162 163Accounts–XII Past Years’ Papers162 163Accounts–XII Past Years’ Papers

were to be divided as follows:

(a) The first Rs.20,000 in proportion to their capitals.

(b) Next Rs.30,000 in the ratio of 5: 3 : 2.

(c) Remaining profits to be shared equally.

The firm made a profit of Rs.1,56,000 before charging any of the above items. Prepare the Profit & Loss Appropriation Account and pass necessary journal entry for apportionment of profit. 3

Q 10. (a) A & B are partners in the ratios of 5 : 4. They admit C for 1/10th share, which he acquires, in equal proportions from both. Find the new profit sharing ratio.

(b) A. B & C were partners in a firm sharing profits in the ratio of 8 : 4 : 3. B retires and his share is taken up equally by A & C. Find the new profit sharing ratio. 2+2 = 4

Q 11. Mona Ltd., has issued 20,000. 9% Debentures of Rs.100 each of which half the amount is due for redemption on March 31st 2008. The company has in its Debenture Redemption Reserve Account a balance of Rs.4,40,000. Record the necessary journal entries at the time of Redemption of Debentures. 4

Q 12. The following is the Receipts & Payments Account of Queen’s Club for the year ended March 31st , 2008. 6

Receipts Rs. Payments Rs.To Balance b/d

Subscriptions

Tournament Fund

Interest (investment)

Donations

Sale – Concert tickets

1,82,000

1,80,000

1,64,000

65,000

1,12,000

2,47,000

By Series

By Stationary

By Rent

By Telephone expenses

By Sports Material & Exp.

By Investments 6%

By Misc. Exp.

By Concert expenses

By Balance c/d

1,66,000

32,000

48,000

8,000

78,000

5,00,000

24,000

58000

36000

9,50,000 9,50,000

The following additional information is provided:

(a) Subscriptions include Rs. 12,000 for 2006-07 and Rs. 18,000 for 2008-09.

(b) Stock of stationery on 31st March, 2007 and 2008 was Rs.7,200 & Rs.5,400 respectively

(c) Stock of Sports material at the beginning and end of the year was Rs.12,000 and Rs.21,000 respectively.

(d) Rent includes Rs.4,000 paid for March, 2007. Rent for March, 2008 is outstanding.

(e) Telephone expenses include Rs.3,000 as quarterly rent up to May 31st 2008.

(f) The value of Building as on 31st March 2007, was Rs.8,00,000 and you are required to write off depreciation at 10%.

(g) The value of investments on 3151 March, 2007 was Rs.10,00,000 and the club made


similar additional investments during the year on 1st October, 2007.

You are required to prepare the Income & Expenditure Account of the club for the year ended March 31st 2008.

Q 13. X, Y & Z were partners sharing profits in the ratio 3 : 2 : 1. On 31st March. 2008, their Balance Sheet stood as under:

Liabilities Rs. Assets Rs.Capital : Rs.

X : 75,000

Y : 70,000

Z : 50,000

Creditors

General Reserve

1,95,000

72,000

24,000

Cash at Bank

Investments

Patents

Stock

Debtors

Buildings

Machinery

70,000

50,000

15,000

25,000

20,000

75,000

36,000

2,91,000 2,91,000

Z died on May 31st 2008. It was agreed that:

(a) Goodwill was valued at 3 years’ purchase of the average profits of the last five years, which were, 2003: Rs. 40,000; 2004: Rs. 40,000; 2005: Rs. 30,000; 2006: Rs.40,000 and 2007: Rs. 50,000.

(b) Machinery was valued at Rs. 70,000, Patents at Rs. 20,000 and Buildings at Rs.66,000.

(c) For the purpose of calculating Z’s share of profits till the date of death, it was agreed that the same be calculated based on the average profits for the last 2 years.

(d) The executor of the deceased partner is to be paid the entire amount due by means of a cheque.

Prepare Z’s Capital Account to be rendered to the executor and also a Journal entry for the settlement of the amount due to Z’s executors. 6

Q 14. (a) Mohit Ltd., took over assets of Rs. 8,40,000 and liabilities of Rs. 80,000 of Ram Ltd. at an agreed value of Rs. 7,20,000. Mohit Ltd. paid to Ram Ltd. by issue of 9% debentures of Rs. 100 each at a premium of 20%.

Pass necessary journal entries to record the above transactions in the books of Mohit Ltd.

(b) Give Journal entries in each of the following cases if the face value of a Debenture is Rs. 100.

(i) A debenture issued at Rs. 110 repayable at Rs. 100

(ii) A debenture issued at Rs. 100 repayable at Rs. 105

(iii) A debenture issued at Rs. 105 repayable at Rs. 105 3+3 = 6

Q 15. A Co. issued to the public for subscription 40,000 shares of Rs. 10 each at a discount of 10% payable as Rs. 2 each on application, Allotment and First call and Rs. 3 on the Final call. Applications were received for 60,000 shares and allotment was made pro-rata to 80% of applicants. R to whom 1,600 shares were allotted paid only the application money, and S who had applied for 2,400 shares paid the entire call money due along with the allotment. Pass necessary Journal entries to record the above transactions. 6


OR

Petromax Ltd., issued 50,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as Rs. 3 on application Rs. 5 including premium on allotment and the balance in equal installments over two calls. Applications were received for 92.000 shares and the allotment was done as under:

A: Applicants of 40,000 shares – Allotted 30,000 shares

B Applicants of 40,000 shares – Allotted 20,000 shares

C: Applicants of 12,000 shares – Nil

Suresh who had applied for 2,000 shares (Category A) did not pay any money other than application money.

Chandar who was allotted 800 shares (Category B) paid the call money due along with allotment.

All other alllottees paid their dues as per schedule.

Pass necessary journal entries in the books of Petromax Ltd. to record the above.

Q 16. Jain & Gupta were partners sharing profits in the ratio of 3 : 2. Their balance sheet on March 31st 2008 was as follows:

Liabilities Rs. Assets Rs.Creditors

Bills payable

Bank overdraft

Reserve

Jain’s Capital

Gupta’s Capital

20,000

3,000

17,000

15,000

70,000

60,000

Cahs

Debtor 20,500

Less: Prov. For

Bad debts 300

Stock

Plant

Buildings

Motor Vehicles

14,800

20,200

20,000

40,000

70,000

20,000

1,85,000 1,85,000

They agreed to admit Mishra for 1/4th share from 1-4-2008 subject to the following terms:

(a) Mishra to bring in capital equal to 1I4th of the total capital of Jain & Gupta after all adjustments including premium for goodwill.

(b) Buildings to be appreciated by Rs.14,000 and stock to be depreciated by Rs.6,000.

(c) Provision for Bad debts on Debtors to be raised to Rs.1,000.

(d) A provision be made for Rs.1,800 for outstanding legal charges.

(e) Mishra’s Share of goodwill/premium was calculated at Rs.10,000.

Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the new firm on Mishra’s admission. 8

OR

A, B & C were in partnership sharing profits in proportion to their capitals. Their Balance Sheet on 31-3-2008 was as follows:


Liabilities Rs. Assets Rs.Creditor

Reserve

A’s Capital

B’s Capital

C’s Capital

15,600

6,000

90,000

60,000

30,000

Cash

Debtors 20,000

Less : Prov for

Doubtful debts 400

Stock

Machinery

Buildings

16,000

19,600

18,000

48,000

1,00,000

2,01,600 2,01,600

On the above date B retired· owing to ill health and the following adjustments were agreed upon:

(a) Buildings be appreciated by 10%.

(b) Provision for doubtful debts be increased to 5% of debtors.

(c) Machinery be depreciated by 15%.

(d) Goodwill of the firm be valued at Rs. 36,000 and be adjusted into the Capital Accounts of A & C who will share profits in future in the ratio of 3 : I.

(e) A provision be made for outstanding repairs bill of Rs. 3,000.

(f) Included in the value of creditors is Rs. 1,800 for an outstanding legal claim, which is not likely to arise.

(g) Out of the insurance premium paid Rs. 2,000 is for the next year. The amount was debited to P & L A/c.

(h) The partners decide to fix the capital of the new firm as Rs. 1,20.000 in the profit sharing ratios.

(i) B to be paid Rs. 9,000 in cash and the balance to be transferred to his Loan Account.

Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm after B’s retirement.

Part–B

(Analysis of Financial Statements)

Q 17. State why non-cash transactions are ignored while preparing a Cash Row Statement? 1

Q 18. When is Dividend received considered as operating activity? 1

Q 19. What will be the operating profit ratio, if operating ratio is 83.64 % ? 1

Q 20. What are the importance of Financial Statement Analysis ? 1

Q 21. Prepare a comparative Income Statement from the following:

31st March 2007 31st March 2008

Rs Rs

Sales 10,00,000 12,50,000

Cost of Goods sold 5,00,000 6,50,000

Operating expenses 50,000 60,000


Interest on investments @ Rs. 30,000 and taxes payable @ 50%.

Q 22. (a) Net Profit after Interest but before tax Rs. 1,40,000; 15% long term debts Rs. 4,00,000, Shareholders funds Rs. 2,40,000; Tax rate 50%. Calculate Return on capital employed.

(b) Opening Stock: Rs. 60,000; Closing Stock: Rs. 1,00,000; Stock turnover Ratio 8 times; Selling price 25% above cost; Calculate the Gross Profit ratio. 2+2 = 4

Q 23. X Ltd., made a profit of Rs. 1,00,000 after considering the following items:

(a) Depreciation on Fixed Assets Rs. 20,000.

(b) Writing off preliminary expenses Rs. 10,000.

(c) Loss on sale of furniture Rs. 1,000.

(d) Provision for taxation Rs. 1.60,000.

(e) Transfer to General Reserve Rs. 14,000.

(f) Profit on sale of machinery Rs. 6,000.

The following additional information is available to you:

31-3-2007 31-3-2008

Items Rs. Rs

Debtors 24,000 30,000

Creditors 20,000 30,000

Bills Receivable 20,000 17,000

Bills Payable 16,000 12,000

Prepaid expenses 400 600

Calculate Cash flow from operating activities.


SOLUTIONS

ACCOUNTANCY

Class XII

1. Accrual concept (1)

2. Yes, if all partners agree that one or more of them shall not bear the losses. (1)

3. A firm should have a partnership deed because in case of any dispute among partners, it acts as evidence in the court of law. (1)

4. Interest on drawings = Total drawings x rate/100 x 6.5/12 (1)

5. An investor would prefer to invest in debentures rather than shares because interest on debentures is payable irrespective of the company is making a profit or incurring a loss whereas dividend on shares is paid only when a company makes a profit. (1)

6. INCOME & EXPENDITURE A/C

For the year ending 31.03.08

Expenditure Rs. Income Rs.

By Subscription 80,000Less: Received out of subscription Outstanding on 31.03.07(26,000 – 2,000) (24,000)Add: Outstanding for 2007-08(6,000 – 2,000) 4,000Add: Received in advance on 31.03.07 15,000Less: Received in advance on 31.03.08 (10,000) 65,000

Note: The subscriptions still in arrears for the year 2006-07 were given wrong in the question paper. It is assumed that these were of Rs.2,000. (3)

7. Journal Entries

Date Particulars L.F. Rs.(Dr.) Rs.(Cr.)

Share Capital A/c Dr. To Share Forfeited A/c To Share First Call A/c(Being shares forfeited)

1,6001,000 600

Bank A/c Dr. To Share Capital A/c(Being 150 forfeited shares reissued)

1,0001,000

Share Forfeited A/c Dr. To Capital Reserve A/c(Being balance of the forfeited A/c transferred to Capital Reserve)

500500

(1marks for each entry)


8. Amount received on allotment (including premium)

= 3,00,000 – 90,000 – 30,000 – 1,000 – 2,400 = Rs.1,76,600

Working notes:

Category A:

Shares applied = 60,000

Shares allotted = 30,000

Excess money received = 30,000 x 3 = Rs.90,000

Nikhil

He applied for = 1,000 shares

He has allotted shares = 30,000/60,000 x 1,000 = 500 shares

Excess application money received = (1,000 – 500) shares x Rs.3 = Rs.1,500

Amount due on allotment = 500 shares x Rs.5 = Rs.2,500

Amount unpaid at the time of allotment = Rs.2,500 – Rs.1,500 = Rs.1,000

Category B

Shares applied = 40,000

Shares allotted = 30,000

Excess money received = 10,000 x 3 = Rs.30,000

Vish

He has allotted = 600 shares

He applied for = 40,000/30,000 x 600 = 800 shares

Excess application money received = (800 – 600) shares x Rs.3 = Rs.600

Amount due on allotment = 600 shares x Rs.5 = Rs.3,000

Amount unpaid at the time of allotment = Rs.3,000 – Rs.600 = Rs.2,400 (3)

9. Profit & Loss Appropriation A/c

Particulars Rs. Particulars Rs.

To interest on capitalA- 3,000B- 3,000C- 4,000

To C’s salaryTo profit transferred to current A/c

A- 51,000B- 45,000C- 44,000

10,000 6,000

1,40,000

By Net profit 1,56,000

1,56,000 1,56,000

Journal Entries(for the appropriation of profits)



Profit & Loss Appropriation A/c Dr. To A’s current A/c To B’s current A/c To C’s current A/c(Being profit appropriated)

1,40,00051,00045,00044,000

Working Notes:

Distribution of profit

First Rs.20,000 in the capital ratio(6:6:8)

A – Rs.6,000

B – Rs.6,000

C – Rs.8,000

Next Rs.30,000 in the ratio 5:3:2.

A – Rs.15,000

B – Rs.9,000

C – Rs.6,000

Remaining Rs.90,000 equally

A – Rs.30,000

B – Rs.30,000

C – Rs.30,000 (1mark each for int. on capital, salary & profit and 1 mark for entry)

10. (a) C acquires from A = 1/10 x ½ = 1/20

C acquires from B = 1/10 x ½ = 1/20

A’s new ratio = 5/9 – 1/20 = 91/180

B’s new share = 4/9 – 1/20 = 71/180

C’s share = 1/10

New ratio of A, B and C = 91:71:18

(b) Calculation of new ratio

Share taken by A out of B’s share = 4/15 x ½ = 2/15

New ratio of A = Old ratio + gain

= 8/15 + 2/15 = 10/15

Share taken by C out of B’s share = 4/15 x ½ = 2/15

New ratio of C = Old ratio + gain

= 3/15 + 2/15 = 5/15

New profit sharing ratio = 10:5 = 2:1 (2 marks for each part)

11. Journal Entries


Profit & Loss Appropriation A/c Dr. To Debenture Redemption Reserve A/c(being Debenture Redemption Reserve created)

5,60,0005,60,000


9% Debentures A/c Dr. To Debentures holders A/c(Being debentures redeemed)

10,00,00010,00,000

Debentures holders A/c Dr. To Bank A/c(Being Debentures holders paid)

10,00,00010,00,000

Debenture Redemption Reserve A/c To general reserve(Being D.R.R. transferred to general reserve)

10,00,00010,00,000

(1 mark for each entry)

12. Income & Expenditure A/c

For the year ending 31.03.08


To salariesTo stationery consumedOpening stock 7,200Add: purchases 32,000Less: Closing stock 5,400 To rent 48,000Add: O/s (end) 4,000Less: O/s (Beg) 4,000 To Telephone exp. 8,000Less: Prepaid (end) 2,000 To Miscellaneous Exp. To concert exp.To sports materialconsumed Opening stock 12,000Add: purchases 78,000Less: Closing stock 21,000 To Depreciation on BuildingsTo surplus

1,66,000

33,800

48,000

6,000

24,00058,000

69,000

80,00099,200

By Subscription 1,80,000Less: subscription For 2006-07 12,000Less: subscription For 2008-09 18,000 By interest on investment(6% on Rs.10,00,000 + 6%On Rs.5,00,000 for 6 months)By DonationsBy sale of concert tickets

1,50,000

75,000

1,12,0002,47,000

5,84,000 5,84,000

(1/2 x 12, ½ mark for each transaction)

13. Z’s Capital A/c

Particulars Rs. Particulars Rs. marks

To Z’s executor A/c 80,250 By balance b/dBy General reserveBy X’s capital A/cBy Y’s capital A/cBy revaluation A/cBy P & L suspense A/c

50,0004,000

12,0008,0005,0001,250

11111


80,250 80,250

Journal Entries


Z’s executor A/c Dr. To Bank a/c(Being executor’s A/c settled)

80,25080,250

Working notes:

Revaluation A/c


To BuildingsTo profit transferred to

A- 15,000B- 10,000C- 5,000

9,000

30,000

By MachineryBy Patents

34,000 5,000

39,000 39,000

Goodwill = Average profit x 3

= 2,00,000/5 x 3 = Rs.1,20,000

Z’s share of goodwill = 1,20,000 x 1/6 = Rs.20,000

Z’s share of profit = Average profit x 1/6 x 2/12

= 45,000 x 1/6 x 2/12 = Rs.1,250 (1 mark for entry)

14 (1) (a). Journal Entries

Date Particulars L.F. Rs.(Dr.) Rs.(Cr.) marks

Assets A/c Dr. To Liabilities A/c To Ram Ltd. To Capital reserve A/c(Being Mohit ltd. took over the assets & liabilities of Ram ltd.)

8,40,00080,000

7,20,00040,000

1

Ram Ltd. Dr. To 9% Debentures A/c To Securities Premium A/c(Being 9% debentures issued to Ram Ltd. at premium)

7,20,0006,00,0001,20,000

1

(b)

Date Particulars L.F. Rs.(Dr.) Rs.(Cr.) marks

Bank A/c Dr. To Debenture application & allotment A/c(Being Debenture application money received)

110110

1/2

Debenture application & allotment A/c Dr. To 9% Debentures A/c To Securities Premium A/c(Being application money transferred to Debenture A/c.)

11010010

1/2


14. (2) Journal Entries



100100

½

Debenture application & allotment A/c Dr.Loss on issue of debenture A/c Dr. To 9% Debentures A/c To Premium on Redemption A/c(Being application money transferred to Debenture A/c.)

1005

1005

½

14. (3) Journal Entries



105105

½

Debenture application & allotment A/c Dr.Loss on issue of debenture A/c Dr. To 9% Debentures A/c To Securities Premium A/c To Premium on Redemption A/c(Being application money transferred to Debenture A/c.)

1055

10055

½

15. Journal Entries


Bank A/c Dr. To Share application A/c(Being share application money received on 60,000 shares)

1,20,0001,20,000

1

Share Application A/c Dr. To Share Capital To Share Allotment To Bank(Being allotment made to 48,000 shares)

1,20,00080,00016,00024,000

2

Share Allotment A/c Dr. Discount of issue of shares A/c Dr. To share capital A/c (Being allotment due on 40,000 shares @ Rs3 at a discount of Rs.1)

80,00040,000

1,20,000

2

Bank A/c Dr.Calls in arrears A/c Dr. To share allotment A/c To calls in advance A/c (Being allotment money received)

71,4402,560

64,00010,000

3

OR


Journal Entries

Date Particulars L.F. Rs.(Dr.) Rs.(Cr.) mark

Bank A/c Dr. To Share application A/c(Being share application money received on 92,000 shares)

2,76,0002,76,000

1

Share Application A/c Dr. To Share Capital To Share Allotment To Bank(Being application money transferred)

2,76,0001,50,000

90,00036,000

1

Share Allotment A/c Dr. To share capital A/c To Securities premium A/c (Being allotment due on 50,000 shares @ Rs3 at a premium of Rs.2)

2,50,0001,50,0001,00,000

1

Bank A/c Dr.Calls in arrears A/c Dr. To share allotment A/c To calls in advance A/c (Being allotment money received)

1,57,2006,000

1,60,0003,200

1 ½

Share First call A/c Dr. To share capital A/c (Being share first call due)

1,00,0001,00,000

1/2

Bank A/c Dr.Calls in arrears A/c Dr.Calls in advance A/c Dr. To Share First call A/c(Being call money received )

95,4003,0001,600

1,00,000

1

Share Final call A/c Dr. To share capital A/c (Being share final call due)

1,00,0001,00,000

1/2

Bank A/c Dr.Calls in arrears A/c Dr.Calls in advance A/c Dr. To Share Final call A/c(Being call money received )

95,4003,0001,600

1,00,000

1 ½

16. Revaluation A/c


To StockTo Provision for doubtful debtsTo provision for legal charges To profit transferred to Jain – 3,300 Gupta – 2,200

6,000 7001,800

5,500

By Buildings 14,000

14,000 14,000


Partners’ Capital A/c

Particulars Jain Gupta Mishra Particulars Jain Gupta Mishra

To balance c/d 88,300 72,200 40,125 By balance b/dBy cash A/c By premium A/c By revaluation ProfitBy Reserves

70,000 ---

6,000 3,300

9,000

60,000 ----

4,000 2,200

6,000

---40,125

---- ---

---

88,300 72,200 40,125 88,300 72,200 40,125

Balance Sheet

As on 1st April 2008

Liabilities Rs. Assets Rs.

CreditorsBills PayableBank OverdraftProvision for legal chargesJain’s capital Gupta’s capital Mishra’s capital

20,0003,000

17,0001,800

88,30072,20040,125

CashDebtors 20,500Less: Provision for doubtful debts 1,000Stock Motor VehiclePlantBuilding

64,925

19,50014,00020,00040,00084,000

2,42,425 2,42,425

Working Notes:

1. Mishra’s capital = ¼ (Jain’s capital + Gupta’s capital)

= ¼ (88,300 + 72,200) = Rs.40125

2. Cash = Rs.14,800 + Rs.40,125 = Rs.64,925 (2+3+3)

OR

Revaluation A/c


To Provision for doubtful debtsTo MachineryTo provision for outstanding repairs To profit transferred to

A- 1,500B- 1,000C- 500

6007,200

3,000

3,000

By BuildingsBy CreditorsBy prepaid insurance

10,0001,8002,000

13,800 13,800

Partners’ Capital A/c


Particulars A B C Particulars A B C

To B’s capital To cash A/c To B’s Loan A/c

To balance c/d

9,000

90,000

9,00066,000

3,000

30,000

By balance b/d By revaluation ProfitBy A’s capital By C’s capital By ReservesBy Cash (B/fig)

90,000 1,500

3,0004,500

60,000 1,000

9,000 3,000 2,000

30,000 500

1,0001,500

99,000 75,000 33,000 99,000 75,000 33,000

Balance Sheet

As on 31.03. 2008

Liabilities Rs. Assets Rs.

Creditorsprovision for outstanding repairs A’s capital C’s capital B’s Loan A/c

13,8003,000

90,00030,00066,000

CashDebtors Stock Prepaid insuranceMachineryBuilding

13,00019,00018,0002,000

40,8001,10,000

2,02,800 2,02,800

Working Notes:

1. Firm’s capital = Rs.1,20,000

A’s capital = 1,20,000 x ¾ = Rs.90,000

C’s capital = 1,20,000 x ¼ = Rs.30,000

2. Cash balance = 16,000+4,500+1,500-9,000 = Rs.13,000 (2+3+3)

PART – B

17. Because Cash flow statement shows flow of cash and cash equivalent during a given period. (1)

18. When company is a financing company. (1)

19. Operating Profit ratio = 100 – 83.64 = 16.36% (1)

20. Importance of Financial Statement Analysis:-

(i) Assessing the profitability

(ii) Judging the efficiency

(iii) Judging the liquidity (1 x 3)

21. Comparative Income Statement

Particulars 2007(Rs.) 2008(Rs.) Absolute change

Percentage

SalesLess: Cost of goods sold

10,00,0005,00,000

12,50,0006,50,000

2,50,0001,50,000

2530

Gross profitLess: Operating expenses

5,00,00050,000

6,00,00060,000

1,00,00010,000

2020

Operating profitAdd: Other income

4,50,00030,000

5,40,00030,000

90,0000

200

176 PBAccounts–XII Past Years’ Papers

Net profit before taxLess: Tax payable

4,80,0002,40,000

5,70,0002,85,000

90,00045,000

18.7518.75

Net profit after tax 2,40,000 2,85,000 45,000 18.75

(1 mark for each column)

22 (a) Net profit after interest but before tax = Rs.1,40,000

Interest = 15% of Rs.4,00,000 = Rs.60,000

Net profit before interest and tax = Rs.1,40,000 + Rs.60,000 = Rs.2,00,000

Capital Employed = Long term debts + shareholders’ fund

= Rs.4,00,000 + Rs.2,40,000 = Rs.6,40,000

Return on Capital Employed = Net profit before interest and tax / Capital Employed x 100

= 2,00,000 / 6,40,000 x 100 = 31.25%

(b) Average stock = Opening Stock + Closing Stock / 2

= 1,60,000 / 2 = Rs.80,000

Stock Turnover ratio = Cost of goods sold / Average stock

8 = Cost of goods sold / 80,000

Cost of goods sold = 6,40,000

Selling price = 25% above cost

= 6,40,000 + 25/100 x 6,40,000

= 6,40,000 + 1,60,000 = Rs.8,00,000

Gross profit ratio = Gross profit /Sales x 100

= 1,60,000 / 8,00,000 x 100 = 20%. (2 marks for each part)

23. Cash Flow from Operating Activities

Particulars Rs. Rs.

Net profit as per P & L A/c Add: Provision for tax Transfer to reserveProfit before taxAdd: Non operating & non cash expenses Depreciation on fixed assets Preliminary expenses written off Loss on sale of furnitureLess: Profit on sale of MachineryProfits before working capital changesAdd: Increase in Creditors Decrease in Bills Receivable

Less: Increase in Debtors Decrease in Bills Payable Increase in prepaid expenses

1,60,00014,000

20,00010,0001,000

(6,000)

10,0003,000

(6,000) (4,000)

(200)

1,00,000

1,74,0002,74,000

25,0002,99,000

13,0003,12,000

(10,200)

Cash Flow from Operating Activities 3,01,800

(½ mark for each transaction, ½ x 12)

cbse past year - 2009 set 1 · pdf filepb accounts–xii past years’ papers 161 cbse...

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