QuizSolver
  • Bank PO
  • CBSE
  • IIT JEE
 
 

CBSE Sample Paper 3 For Accounts

Posted on - 09-05-2017

CBSE Accounts

CBSE

Question.1

What does section 52(2) of companies Act, 2013 refers to?

Solution

Utilisation of securities premium received on issue of securities.

Question.2

X, Y and Z are Partner in a firm. Z advances a loan of Rs. 50,000 to the firm on 1st December 2014. On 31st March, 2015 the firm incurs of loss Rs. 59,000 before charging interest. What amount of profit or loss will be transferred to partner?.

Solution

Interest on Loan payable to Z= Rs. 50,000 x4/12 x 6/100 =Rs. 1000.

Total loss incurred Rs. 59,000+Rs 1,000 =Rs. 60,000 to be become all partner equally. Each partner will be debited with loss Rs. 20,000 .

Question.3

Give the meaning of forfeiture of share.

Solution

Forfeiture of shares means compulsory termination of membership by way of penalty for non-payment of call and forfeiture of the amount already paid by the defaulting shareholder. .

Question.4

A and B are partner in a firm without a partnership deed. A is an active Partner and claims a salary of Rs. 10000 per month. State with reasons whether the claims is valid or not.

Solution

A’s claims is not valid because there is no partnership deed.

Question.5

State the meaning of “Redemption of Debenture out of Profits”

Solution

When sufficient Profits have to be retained in the business to carry out redemption of the debenture, the redemption of debenture is said to be out of profits.

Question.6

What is over-subscription?

Solution

When the number of shares applied for, is more than the number of shares offered for issue, it is known as over subscription.

Question.7

Saloni and Sristhi were partners in a firm sharing profits in the ratio of 7 : 3. Their capitals were Rs. 2,00,000 and Rs. 1,50,000 respectively. They admitted Aditi on 1st April, 2013 as a new partner for 1/6th share in future profits. Aditi brought Rs. 1,00,000 as her capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transaction on Aditi’s admission.

Solution

Aditi’s share in the profits of the firm =1/6

Amount brought in by Aditi as capital = Rs. 1,00,000.

Hence, desired total capital of the firm = Rs. 1,00,000 X 6= Rs. 6,00,000.

Combined capital of all partners i.e., Saloni, Sristhi and Aditi.

=Rs. 2,00,000 + Rs. 1,50,000 + Rs. 1,00,000.

= Rs. 4,50,000.

Value of goodwill of the firm = Desired capital – Existing capital

=RS. 6,00,000 – Rs. 4,50,000.

= RS. 1,50,0000.

Aditi’s share of goodwill = Rs. 1,50,000 X 1/6.

= Rs 25,000

Question.8

Ram,Shyam and Mohan are partners sharing profits in the ration of 2/5, 2/5 and 1/5. M decided to retire from the business, and his share is taken by Ram and Shyam in the ratio of 1:2. Calculate the new profit sharing ratio.

Solution

Old Ratio of Ram,Shyam and Mohan =2/5: 2/5: 1/5

Mohan’s share=1/5

Gaining Ratio of Ram And Shyam= 1/3 : 2/3

Ram’s gain=1/5 X1/3=1/15

Shyam’s gain = 1/5 X 2/3 =2/15

Ram’s new share =2/5+1/15

=6+1/15=7/15

Shyam’s new share =2/5 + 2/15

=6+2/15 =8/15

New Ratio of Ram and Shyam =7/15 : 8/15 =7 : 8

Question.9

Radha, Suruchi and Lata are partners sharing profits and losses in the ratio 1:2:3. Suruchi retires and decidesto devote her time in looking after specially abled people. On her retirement Goodwill entry made in the books is:.

The value of Goodwill is Rs.1,80,000. What is the new profit sharing ratio? What values are highlighted here bySuruchi?.

Solution

Therefore, New Ratio between Radha and Lata is 2:1. Values highlighted:.

By serving at the such home, Suruchiis showing her caring attitude towards the under privileged.

Question.10

What is meant by issue of debenture as a collateral security? Explain with the help of an example.

Solution

Collateral security means an additional security or subsidiary security. Sometimes, a company issue debenture as collateral security against loans taken from banks or other agencies. Collateral security is to be realised only when the principal security fails to pay the amount of loan. On the repayment of loan, collateral security reverts to the company. The liability of the company is for the amount of loan not for the face value of debenture issued. In case, the company makes a default in the repayment of the loan, the loan creditor will become a debenture holder. No interest is payable on the debentures issued as a collateral security.

Question.11

Distinguish between Partner’s Capital Account and Current Account.

Solution

Following table shows the discussion between Capital Account and Current Account.

Question.12

X Ltd. issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows: .

Rs 3 on application

Rs 6 on allotment (including premium) and Rs 3 on call

Applications were received for 75,000 shares and a pro-rata allotment was made as follows:

To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All money due were received except the allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for Rs 7 per share fully paid up. Pass necessary Journal Entries for the above transaction.

Solution

No of share applied by Ram =1,200 shares

No of shares allotted to Ram=

Question.13

On 1.4.2014Krishan and Ram entered into partnership for doing business of packed sandwiches.

Krishan introduced RS. 1,00,000 as capital and Ram introduced Rs. 50,000. Since Ram could introduce only Rs. 50,000 it was further agreed that as and when there will be a need Ram will introduce further capital. Ram was also allowed to withdraw from his capital when there will be a need for the capital was less.

During the year ended 31.3.2015, Ram introduced and withdraw the following amounts of capital:.

The partnership deed provide for interest on capital @ 6% per annum. Calculate interest on capital of the partners.

Solution

Interest on Krishan’s Capital

= Rs. 1,00,000.

= Rs. 6,000.

Interest on Ram’s Capital

Alternate Solution of Interest on Ram’s Capital

Interest on Capital = Rs.

Question.14

Priya and Riya were partners in a firm sharing profits equally. In spite of repeated reminders by the authorities, they kept evading the taxes. The court ordered for the dissolution of their partnership firm on 31st March, 2015. Priya was deputed to realise the assets and to pay the liabilities. She was paid { 1,000 as commission for her services. They were having 8,000 in Profit and Loss A/c on the date of dissolution. From the information given below, complete RealisationA/c, Partners' Capital A/c and Cash A/c.

Realisation A/c

Partner’s Capital A/c

Cash A/c

Solution

Realisation A/c

Partner’s Capital A/c

Cash A/c

Question.15

Solution

Question.16

X, Y and Z were partners in a firm with profit sharing ratio of 3:2:1. The Balance Sheet of the firm at 31st March 2015 was as follows :.

Z retired on 1.4.15 on the following terms.

  1. Goodwill of the firm was valued at Rs.30,000.
  2. Value of patents was to be reduced by 20% and Machinery to 90%.
  3. Provision for Doubtful Debts was to be raised to 6%
  4. Liability on account of Provident Find was only Rs.3,000.
  5. Liability for workman compensation to the extents of Rs.6000 is to be created.
  6. Z took over the Investments at Market Value.
  7. Amount due to Z is to be settled on the following basis 50% on retirement 50% of balance within one year and balance by bill of exchange (without interest) at 3 months.

You are required to show entries for the treatment of Goodwill; Revaluation A/c, Partner’s Capital Accounts and the Balance Sheet of X & Y after Z’s retirement.

Solution

Revaluation Account

Partner’s Capital Account

Balance Sheet of X and Y as at 1.4.2015.

Working Notes :

Amount Due to Z = (21,000 + 1000 + 1000 + 3000 + 2000) – (1000 + 300+ 600 + 17600) = Rs. 8,500.

Amount paid on retirement = 50/100 X 8500 = Rs. 4,250.

Within one year (50% of balance) = 50/100 X 4,250 = Rs. 2,125.

Bills payable = Rs. 2,125.

Question.17

A company invited application for issue of 30,000 Equity Shares of Rs. 10 each at a discount of Rs. 1 per share. Applications were received for 40,000 shares. 10% of applications were rejected and balance issued on pro-rata basis. Amount payable were as follows Rs. 2 on application, Rs. 3 on allotment & balance on first & final Call. M who had applied for 3,000 shares failed to pay allotment money & his shares were immediately forfeited. S who was allotted 2000 shares paid only Rs. 4,000 on allotment. On failure to pay the first call, S’s shares were also forfeited. Pass necessary Journal Entries to record the above transactions. What value was not observed by management?.

Solution

Working Notes :

Shares Allotted to

Excess application Money = (3000–2500) × 2 = Rs. 1,000.

Amount due on allotment from M = (2500×3) = Rs. 7500.

Less : Excess application money adjusted = 1000

Money not paid no allotment = Rs.6,500.

Total No. of shares applied by S =

Excess application money received from S = (2400 – 2000) × 2 = Rs. 800.

Amount due from S on allotment 2000 × 3 = Rs. 6,000.

Less : Excess received on application = 800 =4,000

Allotment money received = 4800

Allotment money received from S = 6000 – 4800 = Rs. 1,200.

Allotment money not Received from S = Rs. 1,200.

Total Amount due on allotment = 30,000 × 3 = Rs. 90,000.

Less : Excess money adjusted = 12,000 = 78,000

Less : Allotment money not received

From M = 6,500

From S = 1,200

Total = 70,300

Question.18

State any one objective of financial Statements Analysis.

Solution

1. Knowing the profitability of business.

2. Knowing the Solvency of business.

3. Judging the growth & financial strength of business.

4. Forecasting & preparing budgets.

Question.19

How will you show the unamortised portion of share issue expenses and discount on shares.

Solution

It will be under the head “Other Current / Non-Current Assets” depending on amortization of the amount in next 1 year or after 1 year.

Question.20

From the following information calculate Proprietary Ratio and Total Assets to Debt Ratio

Solution

Proprietary Ratio =Equity or Shareholders' Funds / Total Assets

Shareholders’ Funds = Share Capital + Reserves and Surplus = Rs. 4,50,00 +Rs. 1,80,000 = Rs. 6.30,000.

Proprietary Ratio =6,30,000 / 7,50,000 =0.84.

Total Assets to Debt Ratio = Total Assets / Debts or Long Term Liabilities= 7,50,00 / 75,000 = 10 Times

Total Assets to Debt Ratio = 10 Times

Interest Coverage Ratio :

This ratio establishes relationship between theNet Profit before Interest & Tax and interest payable on long term debts(Fixed Interest Charges)

Interest Coverage Ratio = Net Profit before Interest & Tax / Fixed Interest Charges

  1. Since interest is a charge on profits, net profit taken to calculate this ratio is before interest & tax.
  2. Objective & Significance-Objective is to ascertain the amount of profit available to cover the interest charge. It determines ease with which a company can pay interest expense on outstanding debt.
  3. Parties interested in this ratio are debenture holders and lenders of long term credit.
  4. High Ratio is better for lenders as it indicates higher safety margin.

Question21

From the following information calculate cash flow from investing activities:

Additional Information

(i) During the year, a machine costing Rs. 50,000 with its accumulated depreciation of Rs. 25,000 was sold for Rs. 20,000.

(ii) Patents were written off to the extent of Rs. 60,000 and some patents were sold at a profit of Rs. 10,000.

(iii) 40% of the investments held in the beginning of the year were sold at 10% Profit.

(iv) Interest received on investment Rs. 25,500.

(v) Dividend received on investment Rs. 8,500.

(vi) Rent received Rs. 5,000.

Solution

Cash Flow from Financing Activities

Working Notes

Investment Account

Machinery Account (at original cost)

Provision for Depreciation Account

Partner Account

Question.22

XYZ Ltd., provided the following information, calculate net cash flows from financing activities: .

Additional Information:

(i) Interest paid on Debenture Rs. 12,000.

(ii) Dividend paid Rs. 50,000.

Solution

Calculations of Cash Flows From Investing Activities

Question.23

From the following information, calculate any two of the following Ratio :

(1) Net Profit ratio

(2) Debt Equity Ratio

(3) Quick Ratio

Closing Inventory – 20 % more than Opening inventory.

Solution

Part (i)

Net Profit Ratio =

Net Profit = Gross Profit – Indirect Expenses

= RS. 8,00,000 – 2,00,000 = Rs. 6,00,000.

Net Profit Ratio =

Part (ii)

Debt Equity Ratio =

Debt = 9 % Debenture = Rs. 8,00,000.

Equity = Paid up Capital + Capital Reserve + Net Profit= Rs. 20,00,000 + RS. 2,00,000 + Rs. 6,00,000 = Rs. 28,00,000.

Debt Equity Ratio= =2 : 7

Part (iii)

Quick Ratio = Quick Assets / Current Liabilities

Quick Assets = Current Assets – Closing Inventory

=

= =3,40,000

Quick Ratio = = Rs. 1.13 : 1

 
CBSE Sample Paper 8 For Accounts
CBSE Sample Paper 7 For Accounts
CBSE Sample Paper 6 For Accounts
CBSE Sample Paper 5 For Accounts
CBSE Sample Paper 4 For Accounts
Cbse Sample Paper 1 For Mathematics
CBSE Sample Paper 2 For Accounts
CBSE Sample Paper 1 For Accounts
CBSE Sample Paper 1 For Economics

Comments