CTF’s Sample Papers: Accountancy 12PB CTF’s Sample Papers: Accountancy 12 59
PArT–A(ACCOUNTING FOr PArTNErSHIP FIrMS AND COMPANIES)
1. Loss on realisation = `1,95,000 2. New Profit Sharing Ratio: 20:11:9 3. Interest on drawing = 54000 × 15/100 × 3/12 = `2,025 4. i) For issuing fully paid bonus shares to equity shares holders. ii) For writing of expenses or discount allowed on issue of shares or debenture. iii) For providing for payment of premium on redemption of preference shares or debentures. 5. Super Profit = Average Profit – Normal Profit = `54,000 – `48,000 = `6,000 6. Capital reserve = `6,00,000 – `5,93,500 = `6,500 7. Journal
Date Particulars L.F. Dr. (`) Cr. (`)
31.03.2015 C’s current A/c Dr. D’s Current A/c Dr.
To A’s Current A/c To B’s Current A/c
(Adjustment entry for wrong charging of interest on capital and on drawings)
360
1,630 1,580 410
8. Balance Sheet of PQr Ltd. As at 31st March, 2016
Particulars Note No. 31st March, 2016
I. EQUITY AND LIABILITY1. Shareholders’ Fund
a) Share Capital2. Current Liabilities
a) Other Current Liabilities
1
2
17,85,000
4,000
Total 17,89,000II. Assets
1. Current Assets:a) Cash and Cash Equivalents 3 17,89,000
Total 17,89,000
SOLUTIONS(PrACTICE SAMPLE PAPEr-5)
CTF’s Sample Papers: Accountancy 1260 CTF’s Sample Papers: Accountancy 12 61
Notes to Accounts:
Particulars 31st March 2016
1. Share Capital:i) Authorised capital:
6,00,000 shares of `10 eachii) Issued Capital:
3,00,000 shares of `10 eachiii) Subscribed Capital:
3,00,000 shares of `10 each 6 Called up 18,00,000 Less Call in Arrear (7,500 × 2) (15,000)
2. Other current Liabilities:Call in Advance
3. Cash and Cash Equivalents:Cash at Bank
60,00,000
30,00,000
17,85,000
4,000
17,89,000
9. Journal EntryDate Particulars L.F. Dr. (`) Cr. (`)
2016 March 31
12% Debentures A/c Dr.Premium on redemption of Debentures A/c Dr.
To Debenture holder A/c (11,500 debentures of `200 each cancelled for conversion)
23,00,000 2,30,000
25,30,000
Debenture holder A/c Dr.To Equity share Capital A/cTo Securities Premium Reserve A/c
(6,000 debentures converted into equity shares at 20% premium)
13,20,00011,00,000 2,20,000
Debenture holder A/c Dr.To 9% Preference share Capital A/cTo Securities Premium Reserve A/c
(5,500 debentures converted into preference shares at premium of 10%)
12,10,00011,00,000 1,10,000
10. Vesting date: 31st March, 2018 Exercise period: 3 Months Exercise date: 30th June, 2018 Vesting period: 4 years No, Muskan is not eligible to subscribe for the option as she has not completed the terms of
contract.
CTF’s Sample Papers: Accountancy 1260 CTF’s Sample Papers: Accountancy 12 61
11. Profit & Loss Appropriation A/c
Dr. For the year ended 31st March, 2016 Cr.Particulars Amount (`) Particulars Amount (`)
To Interest on CapitalShashwat 3,375Adamya 2,250Shivam 1,125
To Shivam’s Salary To Profit transfer to Partners Capital A/c:
Shashwat (16125 – 1425) 14,700Adamya 9,675Shivam (6450 + 1425) 7,875
6,75045,000
32,250
By Net Profit 84,000
84,000 84,000
12. JournalDate Particulars L.F. Dr. (`) Cr. (`)
2016 March 31
Reserve A/c Dr.To Aastha Capital A/cTo Nitya Capital A/cTo Ananya Capital A/c
(Reserves distributed to partners in their old ratio)
97,00048,500 9,70038,800
Aastha Capital A/c Dr.Nitya Capital A/c Dr.Ananya Capital A/c Dr.
To Profit and Loss A/c (Loss distributed in old ratio)
17,500 3,50014,000
35,000
Nitya Capital A/c (5/10 × 30,000) Dr. To Aastha Capital A/c (3/10 × 30,000)To Ananya Capital A/c (2/10 × 30,000)
(Adjustment entry for goodwill and revaluation of assets and liabilities)
15,0009,0006,000
Working Notes: Calculation of adjustment amount: Decrease in Stock (19,800) Increase in PBDD (1,500) Decrease in furniture (9,000) Decrease in machinery (10,000) Increase in Building 28,000 Goodwill 42,300 Net Adjustment amount 30,000
CTF’s Sample Papers: Accountancy 1262 CTF’s Sample Papers: Accountancy 12 63
Calculation of Gaining/Sacrificing Ratio: Astha Nitya Ananya Old Ratio 5/10 1/10 4/10 New Ratio 1/5 3/5 1/5 Sacrifice/(Gain) 5/10 – 1/5 1/10 – 3/5 4/10 – 1/5 5 – 2/10 1 – 6/10 4 – 2/10 3/10 (S) –5/10 (G) 2/10 (S)Values: Regional Development and Generation of Employment Opportunities.13.
JournalDate Particulars L.F. Dr. (`) Cr. (`)
2016 March 31
Amar’s Capital A/c Dr. Anthony’s Capital A/c Dr.
To Akbar’s Capital A/c(Adjustment entry for goodwill on Akbar’s retirement)
9,000 18,000
27,000
Revaluation A/c Dr.To Claim for workmen Compensation A/cTo Provision for doubtful debts A/c
(Claim created and provision made)
6,0005,400 600
Stock A/c Dr. Furniture A/c Dr.
To Revaluation A/c (Revaluation of assets)
5,0005,000
10,000
Revaluation A/c Dr.To Amar’s Capital A/c To Akbar’s Capital A/c To Anthony’s Capital A/c
(Profit on revaluation is distributed in old ratio)
4,0002,0001,200 800
Outstanding Salary A/c Dr.To Cash A/c
(Unpaid salary paid off)
3,5003,500
Investment Fluctuation Fund A/c Dr.To Amar’s Capital A/c To Akbar’s Capital A/c To Anthony’s Capital A/c
(Fund distributed among the partners)
10,0005,0003,0002,000
Akbar’s Capital A/c Dr.To Akbar’s Loan A/c
(Amount due to Akbar transferred to loan account)
56,20056,200
CTF’s Sample Papers: Accountancy 1262 CTF’s Sample Papers: Accountancy 12 63
Balance sheetAs at 1st April, 2016
Liabilities Amount (`) Assets Amount (`)Claim for workmen compensation CreditorsAkbar’s Loan A/cCapital Accounts:
Amar 61,680Anthony 41,120
5,40028,80056,200
1,02,800
CashDebtors 10,000Less: Provisions for
Doubtful debts (800) StockFurniture Investment Machinery
9,500
9,200 47,000 25,000
95,000 7,500
1,93,200 1,93,200
Calculation of Gaining/Sacrificing Ratio: Amar Akbar Anthony Old Ratio 5/10 3/10 2/10 New Ratio 3/5 2/5 Sacrifice / (Gain) 5/10 – 6/10 2/10 – 4/10 5 – 6/10 2 – 4/10 –1/10 (G) 3/10 (S) –2/10 (G)
14.
Cash A/c Dr.To Amar’s Capital A/c
(Cash brought in by Amar)
13,68013,680
Anthony’s Capital A/c Dr.To Cash A/c
(Surplus capital paid back to Anthony)
13,68013,680
JournalDate Particulars L.F. Dr. (`) Cr. (`)
2014 31th March
Surplus in Statement of Profit & Loss A/c Dr.To Debenture Redemption Reserve A/c
(Reserve created for redemption of debentures)
2,25,0002,25,000
201430th April
Debenture Redemption Investment A/c Dr.To Bank A/c
(Investment made in for redemption purpose)
75,00075,000
201531st March
Bank A/c Dr.TDS A/c Dr.
To Debenture Redemption Investment A/c To Interest Earned
(Investment realised and interest earned)
79,950 550
75,000 5,500
CTF’s Sample Papers: Accountancy 1264 CTF’s Sample Papers: Accountancy 12 65
15.
31st March 13% Debentures A/c Dr.Premium on Redemption A/c Dr.
To Debenture holder A/c (Debentures due for redemption)
5,00,000 25,000
5,25,000
31st March Debenture holder A/c Dr.To Bank A/c
(Debentureholders paid off)
5,25,0005,25,000
31st March Interest Earned A/c Dr.To Statement of Profit and Loss A/c
(Interest on investments transferred)
5,5005,500
30th April Debenture Redemption Investment A/c Dr.To Bank A/c
(Investment made for redemption purpose)
60,00060,000
201631st March
Bank A/c Dr.TDS A/c Dr.
To Debenture Redemption Investment A/c To Interest Earned
(Investment sold and interest received)
63,960 440
60,000 4,400
31st March 13% Debentures A/c Dr.Premium on Redemption A/c Dr.
To Debenture holder A/c (Debentures cancelled at premium for redemption)
4,00,000 20,000
4,20,000
31st March Debenture holder A/c Dr.To Bank A/c
(Debentureholders paid off)
4,20,0004,20,000
31st March Interest Earned A/c Dr.To Statement of Profit and Loss A/c
(Interest earned on DRI transferred)
4,4004.400
31st March Debenture Redemption Reserve A/c Dr.To General Reserve A/c
(Balance in DRR transferred)
2,25,0002,25,000
Dr. realisation A/c Cr.Liabilities Amount (`) Assets Amount (`)
To Sundry Assets:Debtors 20,000Stock 15,000Furniture 8,000Plant 12,200Investment 20,000
To Kartik’s Capital A/c75,20015,000
By Sundry Liabilities:Bills Payable 2,000Creditors 16,000Bank Loan 20,000Mrs. Kartik’s Loan 15,000
By Ayush’s Capital A/c(Investment taken over)
53,000
18,000
CTF’s Sample Papers: Accountancy 1264 CTF’s Sample Papers: Accountancy 12 65
Dr. Partners Capital Accounts Cr.Particulars Ayush Kartik Particulars Ayush Kartik
To Advertisement suspense A/cTo Realisation A/c To Cash A/c
2,00018,00036,600
3,000
56,900
By Bal B/dBy ReserveBy Realisation A/cBy Realisation A/c(Profit on realisation)
50,0004,000
2,600
35,0006,000
15,0003,900
56,600 59,900 56,600 59,900
Dr. Bank A/c Cr.Particulars Amount (`) Particulars Amount (`)
To Balance B/dTo Realisation A/c
67,80062,500
By Realisation A/c(Creditors, Bills payable and Bank loan)By Realisation A/c(Expenses on realisation)By Ayush’s Capital A/cBy Kartik’s Capital A/c
35,000
1,800
36,60056900
1,30,300 1,30,300
Value: Social value as dumping of hazardous material into river pollutes environment and affects society as a whole.
16. Dr. revaluation A/c Cr.Particulars Amount (`) Particulars Amount (`)
To Provision for tax 9,000 By InvestmentBy Loss transferred to partners capital A/c:
Pankaj 2,400Rahul 2,400Manish 1,200
3,000
6,0009,000 9,000
(Mrs. Kartik loan Taken over)To Cash A/c To CashA/cTo Partners Capital Account:(profit on realisation)
Ayush 2/5 2,600Kartik 3/5 3,900
35,000 1,800
6,500
By Bank:Debtors 19,500Stock 26,000Furniture 9,000Plant 8,000 62,500
1,33,500 1,33,500
CTF’s Sample Papers: Accountancy 1266 CTF’s Sample Papers: Accountancy 12 67
Dr. Partners Capital Accounts Cr.Particulars Pankaj Rahul Manish Particulars Pankaj Rahul Manish
To DrawingTo Revaluation A/cTo Goodwill To Profit & Loss Suspense A/cTo Rahul’s Capital A/c To Rahul’s Loan A/cTo Rahul’s Executor’s To Cash A/cTo Balance c/d
___2,4007,200____
12,000________
_____60,000
13,5002,4007,200
15,000
_____5,000
40,100__________
___1,2003,600
___
6,000______
11,80030,000
By Balance b/dBy Investment
Fluctuation FundBy Contingency ReserveBy Pankaj’s Capital A/cBy Manish’s Capital A/cBy cash A/c
40,000
2,0003,200
______
36,400
60,000
2,0003,200
12,000 6,000
___
50,000
1,0001,600
_________
81,600 83,200 52,600 81,600 83,200 52,600
Dr. rahul’s Executor A/c Cr.Particulars Amount (`) Particulars Amount (`)
To Cash A/cTo Rahul’s Executor’s Loan A/c
8,02032,080
By Rahul’s Capital A/c 40,100
40,100 40,100
Balance SheetAs at 1st July, 2016
Liabilities Amount (`) Particulars Amount (`)
CreditorsBills PayableProfit and Loss Suspense A/cRahul’s Executor Loan A/c Provision for taxCapital A/c’s:
Pankaj 60,000Manish 30,000
24,00010,000
15,000 32,080 9,000
90,000
Land and BuildingFurnitureStockDebtorsCash(25,000 + 18,000–13500 + 36400 – 11800 – 8020)
61,00030,00021,00022,00046,080
1,80,080 1,80,080
Or
Dr. revaluation Account Cr.Particulars Amount (`) Particulars Amount (`)
Depreciation on Plants & MachineryStockRevaluation ProfitRaghu 4,720Munna 7,080
2,5003,200
11,800
PatentsCreditor Investment
5,0003,5009,000
17,500 17,500
CTF’s Sample Papers: Accountancy 1266 CTF’s Sample Papers: Accountancy 12 67
Dr. Partners Capital Accounts Cr.Particulars Raghu Munna Akram Particulars Raghu Munna Akram
To InvestmentTo Raghu’s
Current A/cTo Bal c/d
35,000
39202,40,000
9,000
---------3,60,000
---------
---------1,50,000
By Bal b/dBy General ReserveBy Bank LoanBY Profit and Loss A/cBy Bank By Premium for G/wBy Revaluation A/cBy Munna’s Current A/c
2,50,0003,2007,000
10,000---------
4,0004,720
---------
1,50,0004,800
---------15,000
---------6,0007,080
1,86,120
------------------------------------1,50,000---------------------------
2,78,920 3,69,000 1,50,000 2,78,920 3,69,000 1,50,000
Balance SheetAs at 1st April, 2016
Particulars Amount (`) Particulars Amount (`)
CreditorsEmployees Provident FundRaghu’s Current A/c Capital Accounts:
Raghu 2,40,000Munna 3,60,000Akram 1,50,000
45,50010,000
3,920
7,50,000
Bank(9000 + 1,50,000 + 10,000)DebtorsBuildingPlant and MachineryStock PatentsInvestment By Munna’s Current A/c
1,69,000
47,0001,48,000
37,5001,56,800
50,00015,000
1,86,1208,09,420 8,09,420
17. JournalDate Particulars L.F. Dr. (`) Cr. (`)
Bank A/c Dr.To Share Application A/c
(Application money received on 2,20,000 shares @ `50 each)
1,10,00,0001,10,00,000
Share Application A/c Dr.To Share Capital A/cTo Security Premium Reserve A/cTo Bank A/c
(Application money transferred)
1,10,00,00038,00,00057,00,00015,00,000
Share Allotment A/c Dr.To Share Capital A/cTo Security Premium Reserve A/c
(Allotment money due on 2,20,000 shares @ `70 per share)
1,33,00,00038,00,00095,00,000
CTF’s Sample Papers: Accountancy 1268 CTF’s Sample Papers: Accountancy 12 69
Or
Bank A/c Dr.To Share Allotment A/c
(Allotment money received, except on 1,000 shares)
1,32,30,0001,32,30,000
Share Capital A/c Dr.Security Premium Reserve A/c Dr.
To Share Forfeiture A/c To Share Allotment A/c
(1,000 shares forfeited due to non-payment of allotment money)
40,00050,000
20,00070,000
Share First and Final Call A/c Dr.To Share Capital A/c
(First call due on 1,89,000 shares @`60 per share)
1,13,40,0001,13,40,000
Bank A/c Dr.To Share First and Final Call A/c
(First call money received on 1,87,000 shares)
1,12,20,0001,12,20,000
Share Capital A/c Dr.To Share Forfeiture A/c To Share First and Final Call
(2,000 shares on which first call was not received were forfeited)
2,00,00080,000
1,20,000
Bank A/c Dr.Share Forfeiture A/c Dr.
To Share Capital A/c(1,400 shares re-issued at `90, fully paid up)
1,26,000 14,000
1,40,000
Share forfeiture A/c Dr. To Capital Reserve A/c
(Balance in share forfeited account transferred)
30,00030,000
JournalDate Particulars L.F. Dr. (`) Cr. (`)
Bank A/c Dr.To Share Application A/c
(Application money received on 1,02,000 shares)
30,60,00030,60,000
Share Application A/c Dr.To Share Capital A/cTo Share Allotment A/c To Bank A/c
(Application money transferred and surplus refunded)
30,60,00018,00,000 9,00,0003,60,000
CTF’s Sample Papers: Accountancy 1268 CTF’s Sample Papers: Accountancy 12 69
PArT–B(ANALYSIS OF FINANCIAL STATEMENTS)
18. Operating Activity.19. Investing activities nil and financing activities: 47,00,000 (inflow)
Share Allotment A/c Dr.To Share Capital A/cTo Security Premium Reserve A/c
(Allotment due)
30,00,00018,00,00012,00,000
Bank A/c Dr.To Share Allotment A/c (Allotment Received)
16,75,00016,75,000
Share Capital A/c Dr.Security Premium Reserve A/c Dr.
To Share Forfeiture A/c To Share Allotment A/c
(Shares of Aarav forfeited)
6,00,000 2,00,000
3,75,0004,25,000
Share First Call A/c Dr.To Share Capital A/c
(First call Due)
10,00,00010,00,000
Bank A/c Dr.To Share First Call A/c
(First call Received)
9,20,0009,20,000
Share Final Call A/c Dr.To Share Capital A/c
(Final call Due)
10,00,00010,00,000
Bank A/c Dr.To Share Final Call A/c
(First call Received)
9,20,0009,20,000
Share Capital A/c Dr.To Share Forfeiture A/c To Share First CallTo Share Final Call
(Abhinav Shares forfeited)
4,00,0002,40,000
80,00080,000
Bank A/c Dr.Share Forfeiture A/c Dr.
To Share Capital A/c(Shares reissued)
6,40,0001,60,000
8,00,000
Share Forfeiture A/c Dr.To Capital Reserve A/c
(Share forfeited Profit transferred to Capital Reserve)
2,30,0002,30,000
CTF’s Sample Papers: Accountancy 1270 CTF’s Sample Papers: Accountancy 12 71
20. Comparative Statement of Profit and Loss For the year ended 31st March, 2015 and 2016
Particulars 31st March 2015
31st March 2016
Absolute Change
Percentage Change %
1. Revenue from Operation2. Other income
20,00,000 4,00,000
30,00,000 4,50,000
10,00,000 50,000
5012.5
Total Revenue 24,00,000 34,50,000 10,50,000 43.753. Expense 10,00,000 18,00,000 8,00,000 80
Profit before Tax 14,00,000 16,50,000 2,50,000 17.864. Tax paid 7,00,000 8,25,000 1,25,000 17.86
Profit After Tax 7,00,000 8,25,000 1,25,000 17.86
21. a) Capital commitments are the financial commitments or future liabilities for capital expenditure in respect of which contacts have been made.
Examples: i) Arrear of dividend on cumulative preference shares and ii) Estimated amounts of contracts remaining to be executed on capital accounts and not
provided for.
b)
Items Main Heads Sub-Headi. Loan given to employee. Current Assets Short term loan and Advanceii. Capital Advances Non- Current Assets Long term loan and Advanceiii. Interest accrued but not due
on Loans.Current Liabilities Other Current Liabilities
iv. Guarantees given by Company It is a contingent liability and is disclosed in the notes to accounts
Cost of revenue from operations + Operating Expense22. Operating ratio = revenue from operation
Cost of Revenue from operation = Revenue from operation – gross profit = 22,00,000 – 8,80,000 = 13,20,000 13,20,000 + 4,40,000 Operating Ratio = × 100 22,00,000 = 80% Debt Equity ratio = Debt/Equity = 6,00,000/30,00,000 = 0.2:1
CTF’s Sample Papers: Accountancy 1270 CTF’s Sample Papers: Accountancy 12 71
23. Cash flow statement
For the year ended 31st March, 2016 as per AS-3
Particulars Amount (`) Amount (`)
(A) Cash flow from operating ActivitiesNet profit before tax and Extraordinary itemsAdd: Depreciation on MachineryAdd: Patents written offAdd: Interest on DebenturesLess: Profit on sale of Machinery
Operating profit before working capital changesAdd: Decrease in Current Assets and increase in current
LiabilitiesDecrease in inventoriesDecrease in Trade ReceivableIncrease in Trade payablesLess: Increase in Current Assets and Decrease in current
LiabilitiesDecrease in outstanding Expenses
Cash flow from operating Activities(B) Cash flow from Investing Activities
Purchase of MachineryPurchase of Non-current InvestmentSale of Machinery
Cash used in Investing Activities
60,00080,000 4,00010,000(5,000)
1,49,000
20,00020,00095,000
(3,000)
(2,28,000) (5,000) 53,000
2,81,000
(1,80,000)(C) Cash flow from Financing Activities
Equity Dividend paid (20,000 – 6,000)Interest on DebenturesCash used in Financing ActivitiesNet increase in Cash and Cash EquivalentsAdd: Opening Cash and Cash EquivalentsClosing Cash and Cash Equivalents
(14,000)(10,000)
(24,000)77,00018,00095,000
1. Calculation of net profit before Tax and Extraordinary items:Surplus i.e. Balance in the Statement of Profit and Loss (closing) 1,00,000Less: Surplus i.e. Balance in the Statement of Profit and Loss (Opening) (60,000)Profit for the year 40,000Add: Dividend on Equity shares 20,000Net profit before Tax and Extraordinary items. 60,000
Machinery A/cParticulars Amount (`) Particulars Amount (`)
To Balance B/dTo Statement of P<o Bank A/c
3,00,000 5,0002,28,000
By Bank A/cBy DepreciationBy Balance c/d
53,000 80,000
4,00,0005,33,000 5,33,000
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