CBSE Class 12

These Sample papers are part of CBSE Sample Papers for Class 12 Accountancy. Here we have given CBSE Sample Papers for Class 12 Accountancy Paper 7

CBSE Sample Papers for Class 12 Accountancy Paper 7

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 7 of Solved CBSE Sample Papers for Class 12 Accountancy is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 80

General Instructions:

(i) Please check that this paper contains 23 questions.
(ii) The paper contains two parts A and B.
(iii) Part A is compulsory for all.
(iv) Part B has two options—Option-1 Analysis of Financial Statements and Option-II Computerized Accounting.
(v) Attempt only one option of Part B.
(vi) All parts of a question should be attempted at one place.

PART – A
Partnership Firms and Company Accounts

Question 1.
A, B and C are partners decided that no interest on drawings is to be charged to any partner. But, after one year, ‘C’ wants that interest on drawings should be charged to every partner. State how C can do this?

Question 2.
State the liability of partners in case of dissolution of a firm.

Question 3.
When a liability is to be discharged by a partner, why is his capital account credited?

Question 4.
In case of dissolution of a firm, which items on the liabilities side are to be paid last?

Question 5.
State the steps other than rejecting applications that a company can take in case of over subscription.

Question 6.
What is meant by capital reserve?

Question 7.
Sharma and Verma were partners in a firm sharing profits in the ratio of 4 :1. Their capitals on 1-4-2012 were : Sharma Rs 5,00,000 and Verma Rs 1,00,000. The partnership deed provided that Sharma will get a commission of 10% on the net profit after allowing a salary of Rs 5,000 per month to Verma. The profit of the firm for the year ended 31st march was Rs 2,80,000. Prepare profit and loss appropriation account of Sharma and Verma for the year ended 31st March.

Question 8.
Raghav Ltd. purchased a running business from Krishna Ltd. for a sum of Rs 15,00,000, payable Rs 3,00,000 by cheque and for the balance issued 9% debentures of Rs 100 each at par.
The assets and liabilities consisted of the following:
Plant and machinery Rs 4,00,000
Buildings Rs 6,00,000
Stock Rs 5,00,000
Sundry debtors Rs 3,00,000
Sundry creditors Rs 2,00,000
Record necessary journal entries in the books of Raghav Ltd.

Question 9.
G. Ltd. had a balance of Rs 22,00,000 in its statement of profit and loss. Instead of declaring a dividend, it decided to redeem its Rs 20,00,000,9% debentures at a premium of 10% out of profits on 31st March, 2015. The company invested the required amount in fixed deposit in a bank on 30th April, 2014 earning Interest @ 6% P.a Tax was deducted on interest earned @ 10% P.a by the bank. Pass the necessary journal entries in the books of the company for the redemption of debentures.

Question 10.
Shauiya Ltd. offered 4,00,000 shares to public for subscription. Applications were received for 7,00,000 shares and prorata allotment was made to the applicants. Sakshi applied for 3,500 shares and Vandana was alloted 1,600 shares.
On the basis of above information, calculate:
(i) How many applications have been rejected altogether?
(ii) What is pro-rata ratio?
(iii) How many shares were alloted to Sakshi?
(iv) How many share were applied by Vandana?

Question 11.
P, Q and R are partners sharing profits and losses in the ratio 5:3:2. From 1st Januaiy 2006, they dedded to share profits and losses in equal proportion. The partnership deed provides that in the event of any change in ratio, the goodwill should be valued at three year’s purchase of the average of the five year’s profit The profit and loss of proceeding five years are:
Profits 2001 – Rs 60,000 2002 Rs 1,50,000; 2003 – Rs 1,70,000;
2004 – Rs 190,000
Loss: 2005 – Rs 70,000
Give necessary journal entry to record the change.

Question 12.
A and B are partners sharing profit in ratio of 5 : 3, they admit C into firm for 3/10th profit which he takes 2/10th from A and 1/10th from B and brings a part of his share of premium for goodwill in cash. Goodwill account does not appear in books of A and B. Fill the missing information in following journals entries and compute the new ratio of A, B and C.

Question 13.
(a) Vishwakarma Ltd. issued 15,000 Preference shares of Rs 100 each at a premium of 50%. Payments were to be made as — Rs 25 on application; Rs 35 on allotment (including premium) and Rs 45 on first and final call.
The applications for 14,000 shares were received and all are accepted. All the money was duly received except the first and final call on 600 shares.
Show the share capital in the balance sheet of the company, also prepare notes to accounts for the same.
(b) Ratan steel Ltd. decided that 5% jobs in the company will be reserved for the children of company’s employees. State the value involved in such decision.

Question 14.
X and Y are partners sharing profits and losses in the ratio of 3:2. They agree to take Z into partnership for 1/9 share. For this purpose, goodwill is to be valued at two years’ purchase of the average profit of last four years which were as follows,
Year ending on 31March 2009 50,000 (Profit)
Year ending on 31March 2010 120,000 (Profit)
Year ending on 31March 2011 180,000 (Profit)
Year ending on 31March 2012 70,000 (loss)
On 1 april, 2011 a motor bike costing Rs 50000 was purchased and debited to travelling expense account on which depreciation is charged @ 20%. Calculate the value of goodwill.

Question 15.
Babul and Vinay were partners. The partnership deed provides for
(a) Profit to be divided as 1/2 vinay -1/3 Babul and 1/6 to be transfer as reserve.
(b) The accounts are closed on 31 March each year.
(c) In the event of death of a partner, the executors will be entitled to the following:
(i) Capital to the credit on date of death.
(ii) Interest on capital 12% pa.
(iii) Proportion of profit to the date of death based on average profit credited for last 3 years.
(iv) Share of goodwill on the date of death based on average profit credited for the last 3 years.
The following information is provided to you:
Babul’s capital Rs 90,000; Vinay’s capital Rs 60,000; Reserves 30,000, cash Rs 1,10,000, Investment Rs 70,000.
Prepare Vinay’s A/c to be presented to his executors; as he died on April 30th 2007. The profits for the three preceeding years were Rs 48,000, Rs 42,000 and Rs 45,000.

Question 16.
Bhamashah Company Limited made an issue of 1,00,000 equity shares of Rs 10 each at a premium of 20% payable as follows:
On application Rs 2.50 per share
On allotment Rs 4.50 per share
On first and final call – balance.
Applications were received for 2,00,000 equity shares and directors made pro rata allotment Ramu, who had applied for 800 shares did not pay allotment and final call money with result his shares were forfeited. Later on, 80% of forfeited shares were reissued Rs 8 per share fully paid up.
Pass necessary journal entries for the above mentioned transactions to the books of the company.
OR
X Ltd. issued 40,000 equity shares of Rs 10 each at a premium of Rs 2.50 per share. The amount was payable as follows:
On application — Rs 2 per share
On allotment — Rs 4.50 per share (including premium)
and on call — 6 per share.
Owing to heavy subscription, the allotment was made on prorata basis.
(a) Applicants for 20,000 shares were alloted 10,000 shares.
(b) Applicants for 56,000 shares were alloted 14,000 shares.
(c) Applicants for 48,000 shares were alloted 16,000 shares.
It was decided that excess amount received on applications would be utilized on allotment and the surplus will be refunded.
Ram, to whom 1,000 shares were allotted, who belong to category (a) failed to pay allotment money. His shares were forfeited after final call. Pass necessary journal entries in the books of X Ltd. for above transactions.

Question 17.
X, Y and Z were partners sharing profit in the ratio of 2:2:1. The balance sheet on 31 March 2010, when they dissolved the firm was as follows.

It was agreed that:
(i) X to take over furniture at Rs 8,000 and debtors Rs 1,20,000 and the creditors of Rs 16,000 were to be paid by him at figure.
(ii) Y to take all stock Rs 17,000 and Sundry assets at Rs 72,000 (being 10% less than the book value).
(iii) Z to take over remaining assets at 80% of book value and assume responsibility of discharge of loan together with accrued interest of Rs 2,300.
(iv) The expenses of realisation were 27,000. The remaining debtors were sold to a debt collecting agency at 50% of the value. Prepare necessary accounts to close books of firm.
OR
S and K were partners in a firm sharing profit as S – 75% and K – 25%. On 1 April 2008, their position was.

R is now joins the partnership. He agrees to pay partners Rs 20000 by way of goodwill and introduces 1/2 of combined capital of two existing partners after depreciation plant stock at 20% and 10% respectively and raising a provision of 10% against sundry debtors. The new partner is allowed 1/4th profit of firm.
You are required to record the transaction in the books of firm and give the new balance sheet of the new firm.

PART -B
‘Analysis of Financial Statements’

Question 18.
A mutual fund company received a dividend of Rs 20 lakhs on its investments in another company’s share, where will it appear in cash flow statement?

Question 19.
Mention the net amount of source or use when discount of Rs 2,000 is received on making payment to a creditor of Rs 27,000.

Question 20.
List any four items which are included under the head reserves and surplus of the company’s balance sheet, as per schedule III to companies Act 2013.

Question 21.
From the following information, prepare comparative balance sheet of SMC Ltd.

Question 22.
Inventory turnover ratio: 4 times, inventory at the end was Rs 20,000 more than inventory , in the beginning. Revenue from operations – Rs 3,00,000, Gross profit ratio – 25%. Current liabilities – Rs 40,000, Quick ratio – 0.75 :1. Calculate current ratio.

Question 23.
X Ltd. made a profit of Rs 1,00,000 after charging depredation of Rs 20,000 on assets and transfer to general reserve of Rs 3,000. The goodwill amortised was Rs 7,000 and gain on sale of machinery was Rs 3,000. The other information available to you (changes in value of current assets and current liabilities) is as follows.
At the end of year, Debtor showed an increase of Rs 6,000; creditors an increase of Rs 10,000, prepaid expenses an increase of Rs 200; bills receivable a decrease of Rs 3,000; Bills payable a decrease of Rs 4,000 and outstanding expenses a decrease of Rs 2,000. Ascertain the cash flow from operating activities.

Answers

Answer 1.
C can do this only if A and B, both agree to his proposal.

Answer 2.
(The liabilities of partners are to pay the external debts from realised amount and to give public notice in general).

Answer 3.
This liability actually belongs to the firm but if a partner pays it, then he is entitled to receive it from the firm, therefore, his capital account is credited.

Answer 4.
Capital accounts or capital of partners are paid at last.

Answer 5.
Excess money to be adjusted in allotment and calls.

Answer 6.
Reserve created out of capital profits, not generally available for dividend distribution, e.g. profit prior to incorporation.

Answer 7.
Profit and Loss Appropriation A/c

Answer 8.
Journal

Answer 9.
Books of G. Ltd.
Journal

Answer 10.
(i) Number of applications rejected altogether since Pro-rata allotment was made to all the applicants.
(ii) Pro rata ratio = No. of shares allotted: No. of shares applied
4,0, 000: 7,00,000 = 4:7
It mans that 4 shares will be allotted to an applicant who has applied for 7 shares.
(iii) No. of shares allotted to Sakshi = 3,500 x \(\frac { 4 }{ 7 }\) = 2,000 shares.

Answer 11.

Answer 12.
Journal
Calculation of new profit sharing ratio:

Answer 13.
(a) Extract of balance sheet of Vishwakarma Ltd.
as at…..

Answer 14.
Calculation of average profit:

Note:
(i) Cost of motor bike was wrongly debited to travelling expense account. After rectification, the loss of 2012 will be reduced by Rs 50,000.
(ii) Depreciation on motor bike Rs 10,000 (20% of 50,000) was not charged to profit and loss account of 2012 which will increase the loss of 2012 by Rs 10,000.
Hence, the final loss will be Rs 70,000 – 50,000 + 10,000 = 30,000

Answer 15.
Dr. Vinay’s Capital A/c Cr.

Answer 16.
In the books of Bhamashah Ltd.
Journal

Answer 17.
Realisation A/c

Answer 18.
It will be shown under cash inflow from operating activities. The reason being that a mutual fund company is a finance company and it has been received dividend from its primary revenue generating activities.

Answer 19.
Use Rs 25,000.

Answer 20.
(i) Capital reserve,
(ii) Capital redemption reserve,
(iii) Security premium reserve,
(iv) Debenture redemption reserve,
(v) Revaluation reserve,
(vi) Surplus i.e. balance in statement of profit and loss.

Answer 21.
Comparative balance sheet
as at 31st March 2014 and 2015

Answer 22.

Answer 23.
Calculation of net cash flow from operating activities

We hope the CBSE Sample Papers for Class 12 Accountancy Paper 7 help you. If you have any query regarding CBSE Sample Papers for Class 12 Accountancy Paper 7, drop a comment below and we will get back to you at the earliest.

CBSE Sample Papers for Class 12 Economics Paper 5 are part of CBSE Sample Papers for Class 12 Economics. Here we have given CBSE Sample Papers for Class 12 Economics Paper 5.

CBSE Sample Papers for Class 12 Economics Paper 5

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 5 of Solved CBSE Sample Paper for Class 12 Economics is given below with free PDF download solutions.

Time : 3 hrs
M.M.: 80

General Instructions

• All questions in both the sections A and B are compulsory. However, there is internal choice in questions of 3,4 and 6 marks.
• Question Nos. 1-4 and 13-16 are very short answer type questions, carrying 1 mark each.
  They are required to be answered in one sentence each.
• Question Nos. 5-6 and 17-18 are short answer I type questions, carrying 3 marks each.
  Answers to them should not normally exceed 60 words each.
• Question Nos. 7-9 and 19-21 are short answer II type questions, carrying 4 marks each.
  Answers to them should not normally exceed 70 words each.
• Question Nos. 10-12 and 22-24 are long answer type questions, carrying 6 marks each.
  Answers to them should not normally exceed 100 words each.
• Answers should be brief and to the point and the above word limit be adhered to as far as possible.

Section – A

Question 1.
What is meant by foregone cost in microeconomics?

Question 2.
The marginal revenue curve cuts the horizontal line between 7-axis and the demand curve into
(a) two unequal parts
(b) two equal parts
(c) Either (a) or (b)
(d) None of these

Question 3.
What is the relation between marginal cost and average cost when average cost is rising?

Question 4.
How production function establishes a technical relationship and not an economic relationship?

Question 5.
Price Elasticity of Demand (E_d) of a commodity is 2. If the quantity demanded increases by 1%, what is the percentage change in price?

Question 6.
State the conditions in which the production possibility curve can rotate outwards.
Or
Explain the major differences between the two branches of economics.

Question 7.
State the Law of Demand and the assumptions of Law of Demand.
Or
Discuss in brief the various kinds of demand.

Question 8.
The Price Elasticity of Supply s of good X is half of the Price Elasticity of Supply of good Y. A 10% rise in the price of good Y results in a rise in its supply from 400 units to 520 units. Calculate the percentage change in quantity supplied of good X when its price falls from ₹ 10 to ₹ 8 per unit.

Question 9.
Write any four points of difference between price making firm and price taking firm.

Question 10.
What do you understand by demand schedule and demand curve? Explain with the help of an example and a diagram.

Question 11.
State whether the following statements are true or false. Give reasons.
(i) When there are diminishing returns to a factor, Marginal Product and Total Product both diminishes.
(ii) When Marginal Revenue (MR) is positive and constant, Average Revenue (AR) and Total Revenue (TR) both will increase at constant rate.
(iii) As output is increased, the difference between Average Total Cost (ATC) and Average < Variable Cost (AVC) falls and ultimately becomes zero.
Or
State whether the following statements are true or false. Give reasons.
(i) As output increases, Average Cost (AC) tends to be closer to Average Variable Cost (AVC).
(ii) Average Cost (AC) is more consistent than Marginal Cost (MC).
(iii) When Marginal Revenue (MR) is zero, Average Revenue becomes maximum.

Question 12.
Maruti, Tata, Fiat, Ford and GM are only a few auto producers in .the Indian market. Identify the form of market in which they sell their products and also explain its features. If these companies decide to form a cartel, then will the consumer stand to benefit?

Section – B

Question 13.
Kuzira is a remote village in South Africa where people use animal skins to purchase goods. Which form of money is being used by them?

Question 14.
The estimated income receipts of the government in the budget of 2016 – 17 is ₹ 25,000 crore and its estimated expenditure is ₹ 27,500 crore. The budget of the government is
(a) balanced
(b) deficit
(c) surplus
(d) None of these

Question 15.
If borrowings and other liabilities are added to the budget deficit, we get
(a) fiscal deficit ,
(b) primary deficit
(c) capital deficit
(d) revenue deficit

Question 16.
Name the rate at which Central Bank gives loan to commercial banks for short-term.

Question 17.
Which of the following cannot have a negative value? Give reasons for your answer.
(i) Average propensity to save
(ii) Marginal propensity to save

Question 18.
Derive the formula,
\(K=\frac { 1 }{ MPS } \)
where K = Investment multiplier
MPS = Marginal Propensity to save
Or
Complete the following table :

Question 19.
Identify the three phases of circular flow and identify the type of data that is required to measure National Income at each of the three phases of circular flow?

Question 20.
Anthony and Ajay were having a conversation on the topic of ‘money supply’. Anthony was of the view that since money supply consists of supply it is a flow concept, whereas Ajay was of the view that it is a stock concept. In your view, which of the two is correct? Why? Also explain the concept of money supply.
Or
Explain the following functions of the Central Bank.
(i) Bank of issue
(ii) Custodian of Foreign Exchange Reserves

Question 21.
Classify the following as revenue receipts and capital receipts. Justify your answer.
(i) Profit of public sector undertakings.
(ii) Market borrowing by the government.
(iii) Income from sale of its share in public sector undertakings.
(iv) Income from sale of spectrum.

Question 22.
Explain the steps taken in derivation of consumption curve from saving curve. Use diagram.
Or
Explain the steps taken in the derivation of saving curve from the consumption curve. Use diagram.

Question 23.
Calculate ‘Gross National Product at Factor Cost’ (GNP_FC) from the following data by
(i) Income Method and
(ii) Expenditure Method.

Question 24.
Distinguish
(i) between autonomous and accommodating transactions of Balance of Payments account and
(ii) between current account and capital account.

Answers

Answer 1.
Forgone cost for a commodity is the amount of the other commodity that has been foregone in order to produce the first or in other words, it is the cost of next best opportunity foregone.

Answer 2.
(b) Two equal parts

Answer 3.
When average cost rises, the marginal cost also rises and it exceeds the average cost.

Answer 4.
Production function does not establish any economic relation between inputs and output. It only establishes a technical relation between inputs and output as it is only engineers (and not economists) who tells that ‘x’ variable factors with y fixed factors will produce a maximum of ‘z’ units of acommodity. Thus, production function connects inputs and output technically.

Answer 5.
Here, Price Elasticity of Demand (E_d) = 2
Percentage change in quantity demanded = 1%
Percentage change in price = ?

⇒ Percentage change in price = \(\frac { 1 }{ 2 } \) or 0.5%

Answer 6.
The production possibility curve will rotate outward under the following two conditions:
(i) Improvement in technology in favour of one commodity.
(ii) Growth of resources for the production of one commodity.

Or
The two branches of economics are microeconomics and macroeconomics.
Difference between microeconomics and macroeconomics are :

Answer 7.
The Law of Demand states that other factors remaining constant, the demand for a commodity expands with fall in its price and contracts with rise in its price. In other words, Law of Demand states that there is an inverse relationship between the price of a commodity and its quantity demanded.
Assumptions of the Law of Demand are as follows:

1. There should be no change in the price of substitute or complementary goods.
2. There should be no change in the income of the consumer.
3. There should be no change in the taste, preference and habit of the consumer.
4. There should be no change in number of family members, government policy, etc.
5. There should be no change in the distribution of income.
6. No expectation of further changes in the availability of a commodity.

Or
The various kinds of demand are as follows:

1. Price Demand It refers to the quantity demanded of a commodity in relation to its price, other things remaining unchanged, e.g. with decrease in price, demand for normal good rises.
2. Income Demand It refers to the demand of a commodity in relation to income of the consumer, other things remaining constant, e.g. with increase in income, demand for normal good rises.
3. Cross Demand It refers to the relationship between the price of a commodity and demand for related goods, other things being constant, e.g. with increase in price of one commodity (tea), demand for its substitute commodity (coffee) rises.
4. Derived Demand When demand for one commodity is derived from demand for some other
   commodity, then it is known as derived demand, e.g. demand for house leads to demand for cement, bricks, etc.

Answer 8.
Given, for good Y,
Initial Quantity (Q)=400 units; New Quantity (Q₁) = 520 units
Change in Quantity (∆Q) = Q₁ – Q = 520 – 400 = 120 units
Percentage Change in Quantity Supplied of \(Y=\frac { \triangle Q }{ Q } \times 100=\frac { 120 }{ 400 } \times 100=30\)%
Percentage Change in Price of Y =10% (given)

Percentage change in quantity supplied of X = 1.5 x -20 = -30
Therefore, supply of X falls by 30%.

Answer 9.
Difference between price making firm (monopoly) and price taking firm (perfect competition) are :

Answer 10.
Demand Schedule It is a table showing different quantities of goods that people are prepared to buy at different levels of price. In other words, the Law of Demand or demand function stated in a tabular form is termed as demand schedule.
Demand schedule can further be classified as follows:
(i) Individual Demand Schedule The schedule that shows the demand by an individual household for a commodity at different prices is known as individual demand schedule.
Example of individual demand schedule :

(ii) Market Demand Schedule The schedule that shows the demand of all the households for a commodity at different prices is known as market demand schedule.
Example of market demand schedule:

(Note It has been assumed that market consists of two households only)
Demand Curve A demand curve is the graphical representation of demand schedule showing the relationship between price of the commodity and its demand. It is a downward sloping curve.
Demand curve is of two types as given below:
(i) Individual Demand Curve A curve which shows the various quantities of a commodity demanded by a particular household at various levels of price is known as individual demand curve. It is the graphical representation of individual demand schedule.

(ii) Market Demand Curve Market demand curve is the horizontal summation of individual demand curve i.e. it is a curve which shows the various quantities of a commodity demanded by the whole market at various prices. It is the graphical representation of market demand schedule.

Answer 11.

1. The statement is false.
   When there are diminishing returns to a factor, Marginal Product diminishes but Total Product increases at a diminishing rate.
2. The statement is false.
   When Marginal Revenue (MR) is positive and constant, Total Revenue (TR) increases at a constant rate. AR tends to be equal to MR. i.e. remain constant.
3. The statement is false.
   As output increases, the difference between Average Total Cost
   (ATC) and Average Variable Cost (AVC) falls but can never be zero. The difference is equal to Average Fixed Cost (AFC) which remains positive, even when it is falling.

Or

1. The statement is true.
   We know that AC = AFC + AVC. As output increases, AFC continuously fall, because TFC is constant. Consequently, the component of AFC in AC tends to shrink. This brings AC closer to AVC.
2. The statement is true. AC is more consistent because it is not directly affected by the law of variable proportion. On the other hand, MC is directly affected by law of variable proportion due to which it is narrow ‘IT shaped curve whereas, AC curve is wide ‘U’ shaped curve.
3. The statement is false.
   When Marginal Revenue is zero, Average Revenue will be diminishing.

Answer 12.
These cbmpanies sell their products in oligopoly market. Oligopoly is a form of market in which there are a few big sellers of a commodity and a large number of buyers.
Its main features are explained below ;

1. A Few Firms A few firms, but large in size dominate the market for a commodity. Each firm commands a significant share of the market which can impact market price of the product.
2. Large Number of Buyers There are a large number of buyers of a commodity. The number is so large that no individual buyer can impact market price of the product.
3. Formation of Cartels With a view to avoid competition, firms may form a cartel. It is a formal agreement among the firms to avoid price competition.
4. Non-price Competition Under oligopoly, firms tend to avoid price competition, e.g. in India, both Coke and Pepsi sell soft drink at the same price. However, in order to enhance its share of the market, each firm tries to resort to non-price competition.

If these companies form cartel, then this would lead to non-price competition and the consumer would be exploited.

Section – B

Answer 13.
The natives of Kuzira village are using commodity money.

Answer 14.
(b) Deficit

Answer 15.
(a) Fiscal deficit

Answer 16.
Repo rate is the rate at which Central Bank gives loan to the commercial banks for 1 to 14 days against approved securities.

Answer 17.

1. Average Propensity to Save (APS) represents the ratio between savings and income. When consumption expenditure is more than income then it gives rise to negative savings or dis-savings. In this case, APS . will be negative.
2. Marginal Propensity to Save (MPS) represents the ratio between change in savings and change in income. As such, its value cannot be negative. Its value ranges between 0 and 1. If the whole of income is spend on consumption, then MPS is zero. On the other hand, if whole of income is saved then MPS is one.

Answer 18.

Answer 19.
The three phases of circular flow of income are the production phase, the income phase and the expenditure phase.
The following data is required to measure national income at each of the three phases of circular flow :

1. Production Phase The data relating to Net Value Added at Factor Cost in primary, secondary and tertiary sectors and Net Factor Income from Abroad.
2. Income Phase The data relating to net interest, net rent, net profit and net wages and Net Factor Income from Abroad.
3. Expenditure Phase The data relating to private consumption expenditure, government consumption
   expenditure, gross domestic capital formation, net exports, depreciation, Net Indirect Taxes and Net Factor Income from Abroad.

Answer 20.
Ajay was correct, as supply of money is a stock concept. It refers to total stock of money held by the people of a country at a point of time.
Supply of money includes only that stock of money which is held by those who demand money and not those who supply money. Therefore, supply of money does not include:

1. Stock of money held by the government.
2. Stock of money held by.the banking system of a country.
   It is because government and the banking system of a country are suppliers of money.

Or

1. Bank of Issue The Central Bank of a country has the sole authority of issuing currency notes and coins in that country. All the currency issued by the Central Bank are unlimited legal tenders. No other commercial bank or financial institution can issue these currency notes except Central Bank. Flence, the Central Bank is also known as Bank of Issue. ‘
2. Custodian of Foreign Exchange Reserves Central Bank is the custodian of nation’s foreign exchange reserve. The Central Bank maintains foreign exchange reserves in order to promote international trade and stabilise exchange rate to an agreed limit through managed floating.

Answer 21.

1. Profit of public sector undertakings is a revenue receipt, because it neither creates liability nor reduces assets of government.
2. Market borrowing by government is a capital receipt, because it creates a liability for the government in the form of borrowing from public.
3. Receipt/Income from sale of its share in public sector undertaking is a capital receipt, as it causes reduction in assets of the government.
4. Income from sale of spectrum is a non-tax source of revenue receipt, as it does not lead to reduction in assets and does not create liability for the government.

Answer 22.
Steps taken for derivation of consumption curve are:

1. At zero level of income, the saving is OS which is the amount of autonomous consumption. So, OS = OC. Hence, the consumption will start from the point C.
2. We draw a 45° line passing through the origin which shows that C = Y. This is the income line.
3. Now we draw a vertical line from the point E, where saving is zero. At zero level of saving, C = Y, so B is the break-event point.
4. The consumption curve is derived meeting C and B and extending it forward.
   

Or
Steps taken for derivation of saving curve are:

1. At zero level of income (Y), the autonomous consumption is OC. If we take the vertical distance between the consumption curve, CC and income line at zero level of income, then OS =OC. Hence, the saving curve starts from the point S on the negative Y-axis.
2. The consumption curve intersects income line at point B. B is the break-even point where consumption is equal to income (C = Y). At this point, saving will be zero as all the income is consumed. Hence, the saving curve will intersect the X-axis (at point E) at this income level.
3. The consumption is less than income beyond point E. It means the excess income after consumption is saved and hence, the saving curve moves toward positive direction above X-axis with the increase in the level of income.

Answer 23.
(i) Income Method
Net Domestic Product at Factor Cost (NDP_FC) = Compensation of Employees + Operating Surplus
(Profits + Rent + Interest) + Mixed Income
= 800 + (400 + 250 + 150) + 0 = 800 + 800
= ₹ 1,600 crore
Gross National Product at Factor Cost (GNP_FC)
= NDPFC+Net Factor Income from Abroad + Depreciation
= 1,600 + (-10) + 60 = 1,660 -10 = ₹ 1,650 crore
(ii) Expenditure Method
Gross Domestic Product at Market Price (GDP_MP)
= Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
= 1,000 + 500 + (200 + 60) + (-20)
= 1,000 + 500 + 260 – 20 = ₹ 1,740 crore
Gross National Product at Factor Cost (GNP_FC)= GDP_MP – Net Indirect Taxes + Net Factor Income from Abroad (NFIA)
= 1,740 – 80 + (-10) = 1,740 – 90
= ₹ 1,650 crore

Answer 24.
(i) Difference between autonomous items and accommodating items of BoP are :

(ii) Difference between current and capital account of BoP are:

We hope the CBSE Sample Papers for Class 12 Economics Paper 5 help you. If you have any query regarding CBSE Sample Papers for Class 12 Economics Paper 5, drop a comment below and we will get back to you at the earliest.

These Sample papers are part of CBSE Sample Papers for Class 12 Accountancy. Here we have given CBSE Sample Papers for Class 12 Accountancy Paper 6

CBSE Sample Papers for Class 12 Accountancy Paper 6

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 6 of Solved CBSE Sample Papers for Class 12 Accountancy is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 80

General Instructions:

(i) Please check that this paper contains 23 questions.
(ii) The paper contains two parts A and B.
(iii) Part A is compulsory for all.
(iv) Part B has two options—Option-1 Analysis of Financial Statements and Option-II Computerized Accounting.
(v) Attempt only one option of Part B.
(vi) All parts of a question should be attempted at one place.

PART – A
Partnership Firms and Company Accounts

Question 1.
State any two items from accounting point of view that may be included in a partnership deed?

Question 2.
Give one reason in favour of having partnership deed?

Question 3.
The firm XYZ earned a profit of Rs 2,75,000 during the year ending on 31 March, 2009.10% of the profit was to be transferred to general reserve. Pass necessary journal entry for the same.

Question 4.
Why a retiring/deceased partner entitled to a share of goodwill of the firm?

Question 5.
Give any two alternatives to a company for the allotment of shares in case of over-subscription?

Question 6.
DN Ltd. issued 50,000 shares of Rs 10 each at a discount of 10% payable at Rs 2 per share on application, Rs 3 per share on allotment and Rs 2 on each first and final call. Applications were received for 70,000 shares. It was decided that
(a) refuse allotment to the applicants of 10,000 shares.
(b) allot 20000 shares to Mohan who had applied for similar number and
(c) allot the remaining shares on pro data basis. Mohan failed to pay the allotment money and Sohan who belonged the category C and was alloted 3000 shares paid both the calls with allotment Calculate the amount received on allotment.

Question 7.
X, Y and Z are partners sharing protits and losses in the ratio 3:2:1. After final accounts have prepared, it was discovered that interest on drawings @ 5% p.a had not been taken into consideration. The drawings of the partners were X Rs 15,000, Y Rs 12,600 Z Rs 12,000. Give necessary adjusting journal entry.

Question 8.
X Ltd. redeemed 100, 6% debentures of Rs 100 each by converting them into equity shares of Rs 100 each. The 6% debentures were redeemable at premium of 10% for which the equity shares were issued at 25% premium. Pass the necessary journal entries for the redemption of the above mentioned debentures in the books of X Ltd.

Question 9.
Adit Taneja applied for 4,000 shares of Rs 100 each issued at a premium of Rs 2 per share. After having paid Rs 2 per share on application, he did not pay allotment money on Rs 5 per share (including premium) and on his subsequent failure to pay the first call, his shares were forfeited-Fill in the following journal entries.

Question 10.
(a) Q Ltd. forfeited 1000 equity shares of Rs 10 each issued at Rs 14 per share for non payment of final call of Rs 7 (including premium) per share. Pass Journal entry.
(b) Tata chemicals Ltd. provided Rs 20 lac for a solar water purification, plant set up by a Non Govt organisation. People from economically backward class living in the vicinity will be given five litres of clean portable water daily for each family member. State the values involved in such decision.

Question 11.
(a) P, Q and R sharing profits and losses in the ratio of 3 :2 1 decide to share future profits and losses in the ratio of 4:3:2 with effect from 1 April, 2012. Following is an extract of their balance sheet as at 31 March, 2012:

Show the accounting treatment if a claim account of workmen’s compensation is estimated at Rs 1,20,000.
(b) They also decided that 5% of profits of firm will be devoted for providing school uniforms to the students belonging to low income group admitted to private schools as per the provisions of Right to Education Act 2009. Identify any two values involved in making such a decision.

Question 12.
L and M were partners in a firm sharing profits 4:3 ratio. They admitted O as a new partner. The new profit sharing ratio of L, M and O will be 3 : 3 : 4. O brought Rs 2,00,000 for his capital. The goodwill of the firm on O’s admission was valued at Rs 70,000. O brought his share of goodwill in cash. Calculate the sacrificing ratio of L and M and pass necessary journal entries for above transactions on O’s admission

Question 13.
(a) Sundram Ltd. purchased furniture for Rs 3,00,000 from Ravindram Ltd, Rs 1,00,000 were paid by drawing a promissory note in favour of Ravindram Ltd. The balance was paid by issue of equity shares of Rs 10 each at a premium of 25%. Pass necessary journal entries in books of Sundram Ltd.
(b) SSP Ltd forfeited 300 shares of Rs 10 each issued at a premium of Rs 2 per share for the non payment of allotment money of Rs 4 per share (including premium). The first and final call of Rs 3 per share has not been made yet. 50% of forfeited shares were re-issued at Rs 8 per share fully paid up. Pass necessary journal entries for forfeiture and reissue of shares.

Question 14.
Lalan and Balan were partners in a firm sharing profit in the ratio of 3 : 2. Their fixed capitals on 1-4-2010 were:
Lalan Rs 1,00,000 and Balan Rs 2,00,000. They agreed to allow interest on capital @ 12% P.a and to charge on drawings @ 15% P.a. The firm earned a profit, before all above adjustments were Rs 30,000 for the year ended 31-3-2011. The drawings of Lalan and Balan during the year were Rs 3,000 and Rs 5,000 respectively. Showing your calculations clearly, prepare profit and loss appropriation A/c of Lalan and Balan. The interest on capital will be allowed even if the firm incurs a loss.

Question 15.
A and B shares profits and losses in the ratio of 3 : 2. They have decided to dissolve the firm. Assets and external liabilities have been transferred to realisation A/c. Pass the journal entries to effect the following:
(a) Bank loan of Rs 12,000 is paid off.
(b) A was to bear all expenses of realisation for which he is given a commission of Rs 400.
(c) Deferred Advertisement expenditure A/c appeared in the books at Rs 28/100.
(d) Stock worth Rs 1,600 was taken over by B at Rs 1,200.
(e) An unrecorded computer realised Rs 7,000.
(f) There was an outstanding bill for repairs for Rs 2,000, which was paid off.

Question 16.
Metallic Ltd. invited applications for 40,000 equity shares of Rs 50 each issued at a premium of Rs 10 per share. The amount was payable as follows:
On application and allotment — Rs 20 per share. Balance (including premium) on first and final call.
Applications for 70,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants. First and final call was made and duly received except on 400 shares allotted to Nitesh and his shares were forfeited.
Journalise the above transactions.
OR
Arti Ltd. invited applications for issuing 80,000 shares of Rs 10 each at a premium of Rs 4 per share. The amount was payable as follows: .
On application — Rs 5 per share.
On allotment — Rs 9 per share (including premium)
Applications were received for 1,40,000 shares.
Allotment was made on the following basis:
(i) To applicants for 80,000 shares — 60,000 shares
(ii) To applicants for 60,000 shares — 20,000 shares
Rajiv belonging to category (i), had applied for 1,200 shares failed to pay his dues and his shares were forfeited. Pass journal entries in the books of Arti Ltd. to record the above transactions.

Question 17.
Following is the balance sheet of X, Y and Z as on 31-3-2012. They shared profits in the ratio of 3:2:2.

On 1st April 2012, Y decided to retire from the firm on the following terms:
(a) Stock to be depreciated by Rs 12,000.
(b) Advertisement suspense A/c to be written off.
(c) Provision for bad and doubtful debts to be increased to Rs 6,000.
(d) Fixed assets to be appreciated by 10%.
(e) Goodwill of the firm, valued at Rs 80,000 and the amount due to the retiring partner be adjusted in X’s and Z’s capital accounts.
Prepare revaluation account, partners’ capital accounts and balance sheet of the firm.
OR
X and Y were partners in a firm sharing profits in 5:3 ratio. They admitted Z as a new partner for 1/3 share in profit Z was to contribute Rs 20,000 as his capital. The balance sheet of x and y on 1-4-2013, the date of Z’s admission was as follows:

Other terms agreed upon were:
(i) Goodwill of the firm was valued at Rs 12,000.
(ii) Land and building were to be valued at Rs 35,000 and plant and machinery at Rs 25,000.
(iii) The provision for doubtful debts was found to be in excess by Rs 400.
(iv) A liability for Rs 1,000 included in Sundry creditors was not likely to arise.
(v) The capitals of the partners be adjusted on the basis of Z’s contribution of capital in the firm.
(vi) Excess or shortfall, if any, to be transferred to current account.
Prepare revaluation account, partners’ capital accounts and the balance sheet of the new firm.

PART – B
‘Analysis of Financial Statements’

Question 18.
What is meant by financial statements?

Question 19.
Dividend paid by a finance company is classified under which kind of activity while preparing a cash flow statement?

Question 20.
List any four items which are included under the head current assets of the company’s balance sheet, as per the schedule III to the companies act 2013.

Question 21.
Prepare common size statement of profit and loss from the following information:

Question 22.
Net profit after interest but before tax Rs 1,40,000, 15% long term borrowings Rs 4,00,000, shareholders funds Rs 2,40,000, tax rate 50%. Calculate return on capital employed.

Question 23.

From the following information. Prepare a cash flow statement:

Answers

Answer 1.
(i) Interest on capital
(ii) Profit sharing ratio.

Answer 2.
To avoid litigation in future.

Answer 3.
Journal

Answer 4.
Retiring/deceased partner losses his share in profit, to compensate this, he becomes entitled to a share of goodwill of the firm.

Answer 5.
(i) Some applications are accepted in full and excess applications are rejected and their application money is refunded.
(ii) Some application may be alloted shares in fixed proportion called Pro-rata allotment.

Answer 6.
Total amount due on allotment = 50,000 x 3 = 1,50,000
Calls in arrears = 2,0000 x 3 = 60,000
Calls in advance = 3000 x 4 = 12000
Already received = Rs 20,000
Calculation of allotment money received
Total amount = 1,50,000

Answer 7.
Journal

Answer 8.
Journal

Answer 9.
Journal


(iii) Since share capital A/c is debited with Rs 24,000 (i.e. Rs 8 per share), the amount of first call must be Rs 3 per share.

Answer 10.
Q. Ltd.
Journal

(b) (i) Use of solar power will be helpful in environmental protection.
(ii) It will help to reduce the health hazards and improve the quality of life of poor sections of the society.

Answer 11.

(b) Two values involved are:
(i) Assisting the implementation of Right to Education Act 2009.
(it) Helping the low income group segment of the society.

Answer 12.
Journal

Answer 13.
(a) In the books of Sundram Ltd.
Journal

Answer 14.

Answer 15.
Journal

Answer 16.
Journal

Answer 17.

Answer 18.
The financial statements are historical documents which show the organised summary of detailed information about the financial performance of an accounting entity for an accounting period and financial position at the end of an accounting period.

Answer 19.
Financing activity.

Answer 20.
(i) Current investments,
(ii) Inventories,
(iii) Trade receivables,
(iv) Cash and cash equivalents,
(v) Short term loans and advances,
(vi) Other current Assets.

Answer 21.
Common size Statement of Profit and Loss
for the year ended 31st March 2014 and 2015

Answer 22.

Answer 23.
Cash flow statement for the year ended 31st March 2015

We hope the CBSE Sample Papers for Class 12 Accountancy Paper 6 help you. If you have any query regarding CBSE Sample Papers for Class 12 Accountancy Paper 6, drop a comment below and we will get back to you at the earliest.

These Sample papers are part of CBSE Sample Papers for Class 12 Accountancy. Here we have given CBSE Sample Papers for Class 12 Accountancy Paper 4

CBSE Sample Papers for Class 12 Accountancy Paper 4

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 4 of Solved CBSE Sample Papers for Class 12 Accountancy is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 80

General Instructions:

(i) Please check that this paper contains 23 questions.
(ii) The paper contains two parts A and B.
(iii) Part A is compulsory for all.
(iv) Part B has two options—Option-1 Analysis of Financial Statements and Option-II Computerized Accounting.
(v) Attempt only one option of Part B.
(vi) All parts of a question should be attempted at one place.

PART – A
Partnership Firms and Company Accounts

Question 1.
When the partners’ capitals are fixed, where the drawings made by a partner will be recorded?

Question 2.
State the ratio in which the partners share profits or losses on revalution of assets and liabilities, when there is a change in profit sharing ratio amongst existing partners?

Question 3.
Name the account which is opened to credit the share of profit of the deceased patner, till the time of his death to his capital account.

Question 4.
Give the journal entry to distribute workmen compensation reserve of Rs 60,000 at the time of retirement of Sajjan, when there is no claim against it The firm has three partners- Rajat, Sajjan and Kavita.

Question 5.
What is meant by securities Premium?

Question 6.
What is meant by issue of debentures as a collateral security?

Question 7.
X, Y and Z were sharing profits and losses in the ratio of 5 : 3 : 2. They decided to share future profits and losses in the ratio of 2:3:5 with effect from 1-4-2010. They decided to record the effect of the following, without affecting their book values:
(i) Profit and loss account Rs 24,000
(ii) Advertisement suspense account Rs 12,000
Pass the necessary adjusting entry.

Question 8.
Mohit Ltd. took over assets of Rs 8,40,000 and liabilities of Rs 80,000 of Ram Ltd. at agreed value of Rs 7,20,000. Mohit Ltd. Paid to Ram Ltd. by issuing of 9% debentures of Rs 100 each at a premium of 20%.
Pass the necessary journal entries to record the above transactions in the books of Mohit Ltd.

Question 9.
Rise Ltd. had issued 40,000, 8% debentures of Rs 100 each redeemable on 31st March 2015. It was decided to invest 15% of the face value of debentures to be redeemed towards debenture redemption investment on 30th April 2014. Investments were encashed and debentures were redeemed on due date. Record necessary journal entries for redemption of debentures.

Question 10.
A and B were partners in a firm sharing profits in 4 :3 ratio. They admitted C into partnership who has won a gold medal in world chess championship for 20% share in the profits. C acquired his share of profits in the ratio of 1:2 from A and B.
You are required to:
(i) Identify the value in admitting C into partnership.
(ii) Calculate the new profit sharing ratio of the partners.

Question 11.
A, B, C and D are partners sharing profits in the ratio of 3:3:2:2 respectively. D retires and A, B and C decide to share the future profits in the ratio of 3 : 2:1. Goodwill of the firm is valued at Rs 6,00,000. Goodwill already appears in the books at Rs 4,50,000. The profit for the 1st year after D’s retirement amount to Rs 12,00,000. Give the necessary journal entries to record goodwill and to distribute the profits. Show your calculations clearly.

Question 12.
Kavita Ltd. issued 2000,7% debentures of Rs 500 each at a discount of 6% on April, 2013 redeemable after 6 years. On 1st October 2016, the debentures were redeemed by conversion into equity shares of Rs 100 each at a premium of Rs 25 per share at the option of debenture holders. Record necessary entries for issue and redemption of debentures.

Question 13.
(a) Green Valley Ltd. offered 5,00,000 shares to public for subscription. Applications were received for 7,50,000 shares and pro-rata allotment was made to the applicants of 6,00,000 shares. Arushi applied for 4,800 shares and Navya was alloted 3,000 shares.
From the above information, calculate:
(i) How many applications have been rejected altogether?
(ii) What is the prorata ratio?
(iii) How many shares were allotted to Arushi?
(iv) How many shares were applied by Navya?
(b) Which value has been affected by rejecting the 150000 applications. Suggest a better alternative for the same.

Question 14.
Ravi and Mohan were partners in a firm sharing profits in the ratio of 7 : 5. Their respective fixed capitals were Ravi Rs 10,00,000 and Mohan Rs 7,00,000. The partnership provided for the following:
(i) Interest on capital @ 12% P.a
(ii) Ravi’s salary Rs 6,000 per month and Mohan’s salary Rs 60,000 per year.
The profit for the year ended 31-3-2012 was Rs 5,04,000 which was distributed equally, without providing for the above. Pass an adjustment entry.

Question 15.
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 Rs 1,000 as commission for her services. They were having Rs 8,000 in Profit and loss A/c on the date of dissolution. From the information given below, complete realisation A/c, partners’ capital A/c and cash A/c

Question 16.
Dinesh Ltd. invited applications for issuing 10,000 euity shares of Rs 10 each. The amount was payable as follows:
On application Rs 1
On allotment Rs 2
On first call Rs 3
On second and final call-balance.
The issue was fully subscribed. Ram to whom 100 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after allotment. Shyam to whom 150 shares were allotted, Failed to pay the first call. His shares were also forfeited after the first call. Afterwards, the second and final call was made. Mohan to whom 50 shares were alloted failed to pay the second and final call. His shares were also forfeited. All the forfeited shares were re-issued at Rs 9 per share fully paid up. Pass necessary journal entries in the books of Dinesh Ltd.
OR
Som Ltd. invited applications for issuing 60,000 equity shares of Rs 100 each at a premium of Rs 50 per share. The amount was payable as follows:
On application Rs 75 per share (including premium Rs 25) on allotment Rs 50 per share (including premium Rs 25) on first and final call – the balance amount. Applications for 55,000 shares were received. Allotment was made to all the applicants and the company received all money due on allotment except K, who was allotted 500 shares and his shares were immediately forfeited afterwards the first and final call was made. L to whom 300 shares were allotted failed to pay the first and final call. His shares were also forfeited. 300 shares of K and 200 shares of L were re-issued for Rs 75,000 fully paid up.
Pass necessary journal entries in the books of Som Ltd. for the above transactions.

Question 17.
On 31st march 2012, the balance sheet of Ram and Shyam who were sharing profits in the ratio of 3 :1 was as follows:

They decided to admit, Mohan on April 1st 2012 for 1/5th share on the following terms:
(i) Mohan shall bring Rs 6,000 as his share of premium.
(ii) That unaccounted accrued income of Rs 100 be provided for.
(iii) The market value of investments was Rs 4,500
(iv) A debtor whose dues of Rs 500 was written off as bad debts paid Rs 400 in full settlement.
(v) Mohan to bring in capital to the extent of 1/5th of the total capital of the new firm. Prepare revaluation A/c, partners’ capital A/c and the balance sheet of the new firm.
OR
A, B and C were partners sharing profits in the ratio of 3:1:1. Their balance as on March 312011, the date on which they dissolve their firm, was as follows:

It was agreed that:
(a) A to take over bills receivables at Rs 800, debtors amounting to Rs 20,000 at Rs 17,200 and the creditors of Rs 6,000 were to be paid by him at this figure.
(b) B is to take over all stock for Rs 7,000 and some sundry assets at Rs 7,200 (being 10% less than the book value).
(c) C to take over remaining Sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs 300.
(d) The expenses of realisation were Rs 270. The remaining debtors were sold to a debt collecting agency at 50% of the book value. Prepare realisation A/c, partners capital A/c and cash A/c.

PART -B
‘Analysis of Financial Statements’

Question 18.
Sale of marketable securities at par would result in inflow, outflow or No flow of cash.

Question 19.
Where will a manufacturing company record dividend received while preparing cash flow statement?

Question 20.
Give major heading and sub heading under which following items will be shown in a company’s balance sheet as per schedule III, part I of the companies Act 2013:
(a) Preliminary expenses,
(b) Goodwill,
(c) Long term investments,
(d) Securities premium reserve,
(e) Unclaimed dividend,
(f) Encashment of employees earned leave payable on retirement,
(g) Provision for doubtful debts,
(h) Interest on calls in arrears.

Question 21.
From the following information, calculate the working capital turnover ratio.
Cost of revenue from operations Rs 5,00,000 Gross profit ratio 20%
Fixed assets Rs 5,00,000
Capital employed Rs 7,50,000

Question 22.
(a) What is the meaning and purpose of analysis of financial statements?
(b) Name any two tools of analysis of financial statements.

Question 23.
Following is the balance sheet of Aran Ltd. as on 31st March 2015 and 2014.


Prepare cash flow statement after taking into account the following adjustments: Tax paid during the year amounted to Rs 98,000.

Answers

Answer 1.
Drawing (except permanent drawings) are recorded on the debit side of the partners’ current accounts when there partners capitals are fixed.

Answer 2.
Partners share profits or losses in the old profit sharing ratio, in the event of revaluation of assets and liabilities.

Answer 3.
Profit and loss suspense account is opened to credit the share of profit of the deceased partner, till the time of his/her death to his/her capital account.

Answer 4.
In case of no claim against workmen compensation Reserve, the following, entry needs to be passed:

Answer 5.
Securities premium is the excess amount, charged by a company for issuing securities (Shares, debentures etc.) over its face value.

Answer 6.
Issue of debentures as a collateral security means securing underlying asset or loan taken,by issuing debentures as additional or secondary security over and above the prime or principal security.

Answer 7.

Answer 8.
Journal

Answer 9.
Books of Rise Ltd.
Journal

Note: Interest on investment is not calculated because rate of interest is not given.

Answer 10.
(i) Value involved in admitting C is promoting sports culture in the country.
(ii) C acquired his share of profit (20% or \(\frac { 1 }{ 5 }\)) from A and B in the ratio of 1 : 2, this means

Answer 11.
Journal

Answer 12.
Books of Kavita Ltd.

Answer 13.
(a) (i) Application for 1,50,000 shares have been rejected altogether since allotment was made to the applicants of 6,00,000 shares.
(ii) Pro rata ratio = No of shares allotted : No. of shares applied = 5,00,000 : 6,00,000 = 5:6
(iii) No. of shares allotted to Arushi = 4,800 x \(\frac { 5 }{ 6 }\) = 4000 shares
(iv) No. of shares applied by Navya = 3,000 x = \(\frac { 6 }{ 5 }\) = 3600 shares
(b) (i) Value of equality has been affected by rejecting the 1,50,000 applications.
(ii) Better alternative – Pro-rata allotment to all applicants so that the rejected applicants may not be demotivated from applying for shares in future.

Answer 14.

Answer 15.

Answer 16.

Answer 17.

Answer 18.
Sale of marketable securities at par would result no flow of cash.

Answer 19.
Dividend and interest received by a manufacturing company will be recorded under investing activities.

Answer 20.

Answer 21.
Working capital = Capital employed – Fixed assets = 7,50,000 – 5,00,000 = 2,50,000
Calculation of revenue from operations:
When sales is = 100, Gross profit is = 20
Cost is 100 – 20 = 80

Answer 22.
(a) Analysis of financial statements is a systematic process of identifying the financial strengths and weaknesses of the firm by establishing relationship between the items of the balance sheet and income statement.
Objectives of financial statements analysis are:
(i) Measure the short term solvency of the enterprise.
(ii) Measure the long term solvency of the enterprise.
(iii) Measure the operating efficiency and profitability of the enterprise.
(iv) Compare intra-firm position in the industry.
(b) The tools of analysis of financial statements are:
(i) Common size statement
(ii) Ratio analysis
(iii) Cash flow statement.

Answer 23.
Cash Flow Statement
for the year ended March 31, 2015.

We hope the CBSE Sample Papers for Class 12 Accountancy Paper 4 help you. If you have any query regarding CBSE Sample Papers for Class 12 Accountancy Paper 4, drop a comment below and we will get back to you at the earliest.

These Sample papers are part of CBSE Sample Papers for Class 12 Accountancy. Here we have given CBSE Sample Papers for Class 12 Accountancy Paper 5

CBSE Sample Papers for Class 12 Accountancy Paper 5

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 5 of Solved CBSE Sample Papers for Class 12 Accountancy is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 80

General Instructions:

(i) Please check that this paper contains 23 questions.
(ii) The paper contains two parts A and B.
(iii) Part A is compulsory for all.
(iv) Part B has two options—Option-1 Analysis of Financial Statements and Option-II Computerized Accounting.
(v) Attempt only one option of Part B.
(vi) All parts of a question should be attempted at one place.

PART – A
Partnership Firms and Company Accounts

Question 1.
Name the method of calculating interest on drawings of the partners if the different amounts are withdrawn on different dates.

Question 2.
Give the formula for calculation of goodwill by capitalization of average profit.

Question 3.
In the absence of any provision in the partnership deed, at what rate is working partner entitled for remuneration?

Question 4.
Identify the purpose of utilizing the security premium that would maximize the return to the shareholders.

Question 5.
What is meant by issue of shares for consideration other than cash? Give an example.

Question 6.
Is sleeping partner liable to the acts of other partners?

Question 7.
X, Y and Z are partners sharing profits in the ratio of 3 :2 :1. However, Z is guaranteed Rs 15,000 as his share of profits every year. Deficiency, if any, would be borne by the other partners. The profits for the year was Rs 75,000. Show the profit and loss appropriation account.

Question 8.
Madhu Ltd. issued 6,000,9% debentures of Rs 1,000 each on April 1,2012 redeemable at a premium of 8% after 10 years. According to the terms of prospectus, Rs 400 is payable on application and balance on allotment of debentures. Record necessary entries regarding issue of debentures.

Question 9.
D Ltd. had issued 60,000, 11% debentures of Rs 100 each which are due for redemption on march 31st 2015. It was decided to invest the required amount towards debenture redemption investment. The company has in its debenture redemption reserve account a balance of Rs 3,10,000. Record the necessary journal entries at the time of redemption of debentures.

Question 10.
(a) D. Ltd purchased machinery for Rs 9,00,000 and a motor van for Rs 6,00,000 from Z Ltd. on 1-1-2013. Rs 3,60,000 were paid immediately and the balance was paid by issue of 9,500 fully paid equity shares of Rs 100 each. Pass the necessary journal entries for recording the transactions in the books of D Ltd.
(b) D Ltd. decided to give free tablets worth Rs 4,00,000 to the disabled students of nearby schools. State the values involved in such decision.

Question 11.
Aslam and Bashir of Srinagar are partners in a firm engaged in the business of apple export They share profits and losses in the ratio of 3:2. They admit Simon of Mumbai into partnership in order to facilitate the export of apples. Aslam sacrifices 1/3 of his share and Bashir 1/4 of his share in favour of simon.
(a) Identify any two values which according to you motivated them to take Simon into partnership.
(b) Determine the sacrificing ratio and new profit sharing ratio.

Question 12.
Hari, Mohan and Sohan were partners in a firm sharing profits in 2 : 2 :1 ratio. The firm closes its books on 31st March every year. Mohan died on 24-08-2012, on Mohan’s death, the goodwill of the firm valued at Rs 75,000. The partnership deed provided that on the death of a partner, the share in the profits of the firm in the year of his death will be calculated on the basis of last years’ profit The profit of the firm for the year ended was Rs 2,00,000. Calculate Mohan’s share of profit till the time of his death and pass the necessary journal entries for his treatment of goodwill and his share of profit

Question 13.
Fill in the blanks:

Question 14.
A, B and C were partners. Their capitals were A -Rs 30,000, B-Rs 20,000 and C -Rs 10,000 respectively. According to the partnership deed, they were entitled to interest on capital at 5% P.a. In addition, B was also entitled to draw a salary of Rs 500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capitals, but before charging the salary payable to B. The net profits for the year were Rs 30,000, distributed in the ratio of their capitals without providing for any of the above adjustments. The profits were to be shared in the ratio of 5 : 3 : 2. Pass the necessary adjustment entry showing the working dearly.

Question 15.
Ali and Nasir were partners in a firm sharing profits and losses in the ratio of 2:1 with capitals of Rs 40,000 and Rs 30,000 respectively. They decided to admit Yakub into partnership on conditions that he would bring Rs 20,000 as his capital and Rs 6,000 for his share of goodwill for 1/4th share of profits. Half of the amount of goodwill was withdrawn by the existing partners. The capital of the partners in the new firm were to be arranged in profit sharing ratio on the basis of Yakub’s capital and excess or defidt capital to be adjusted in cash. Show the capital accounts of the partners and the cash account.

Question 16.
Shyam Ltd. Invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 40 per share.
The amount was payable as follows:
On application- Rs 35 per share (including Rs 30 premium) on allotment- Rs 8 per share (including Rs 4 premium) on first and final call – Balance.
Applications for 77,000 shares were received. Shares were allotted to all the applicants. Sundram, to whom 7000 shares were allotted failed to pay the allotment money. His shares were forfeited immediately after allotment Afterwards, the first and final call was made. Satyam, the holder of 500 shares failed to pay the first and final call. His share were also forfeited. Out of the forfeited shares, 1,000 shares were reissued at Rs 50 per share fully paid up. The reissued shares included all the shares of Satyam. Pass necessary journal entries for the above transactions in the books of Shyam Ltd.
OR
Jain Ltd. invited applications for issuing 70,000 equity shares of Rs 10 each at a premium of Rs 35 per share. The amount was payable as follows:
On application- Rs 15 (including Rs 12 premium)
On allotment- Rs 10 (including Rs 8 premium)
On first and final call — Balance
Applications for 65,000 shares were received and allotment was made to all the applicants. – A shareholder, Ram who was alloted 2,000 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Sohan, who had 3,000 shares, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 4,000 shares were re-issued at Rs 50 per share fully paid up. The reissued shares included all the shares of Ram. Pass necessary journal entries for the above transactions in the books of Jain Ltd.
Answer 18.
In the books of Shyam Ltd.

Question 17.
Pass the necessary journal entries for the following transactions on the dissolution of the firm of James and Haider who were sharing profits and losses in the ratio of 2:1. The various assets (other than cash) and outside liabilities have been transferred to realisation account:
(i) James agreed to pay off his brother’s loan of Rs 10,000.
(ii) Debtors realised Rs 12,000.
(iii) Haider took over all investments of Rs 12,000.
(iv) Sundry creditors Rs 2,000 were paid at 5% discount.
(v) Realisation expenses amounted to Rs 2,000.
(vi) Loss on realisation was Rs 10,200.
OR
The balance sheet of X, Y and Z, who were sharing profits in the ratio of 5:3:2 as at march 31,2012:

X retired on March 31, 2012 and Y and Z decided to share profits in future in the ratio of 2 : 3 respectively. The other terms on retirement were as follows:
(i) Goodwill of the firm is to be valued of Rs 80,000
(ii) Fixed assets are to be valued at Rs 57,500.
(iii) Make a provision for doubtful debts at 5% on debtors.
(iv) A liability for claim, included in creditors for Rs 10,000 is settled at Rs 8,000.
The amount to be paid to X by Y and Z in such a way that their capitals are proportionate by to their profit sharing ratio and leave a balance of Rs 15,000 in the bank account. Prepare revaluation account and partners’ capital accounts.

PART – B
‘Analysis of Financial Statements’

Question 18.
Give an example of investing activity resulting into inflow of cash.

Question 19.
While preparing cash flow statement, the accountant of Ifratech Ltd. a manufacturing company showed interest on long term borrowings as operating activity. Was he correct in doing so? Give reason in support of your answer.

Question 20.
Under which head the following items will be placed in the balance sheet of the company as per schedule III Part I of companies Act 2013:
(i) Plant and machinery,
(ii) Provision for tax,
(iii) Loose tools and stores and spares,
(iv) Securities premium reserve,
(v) Cheque,
(vi) Softwares,
(vii) 6% debentures payable after three years,
(viii) mastheads and publishing titles.

Question 21.
From the details given below. Calculate inventory turnover ratio and operating ratio: Opening inventory Rs 28,000, closing inventory Rs 22,000, purchase Rs 40,000, revenue from operations Rs 80,000, carriage inwards Rs 4,000, employees benefit expenses Rs 4,000, depreciation Rs 2,000.

Question 22.
Prepare a common size income statement of Jayant Ltd. from the following information for the year ended 31st March 2015:

Question 23.
From the following information, Prepare a cash flow statement

Additional information: A machine costing Rs 3,000 (depreciation provided thereon Rs 400) was sold for Rs 2,800. Depreciation charged during the year was Rs 4,400. Debentures were issued on 1st april, 2014.

Answers

Answer 1.
Product method.

Answer 2.
Capitalised value of average profit

Goodwill = Capitalised value of average profit – Capital invested.

Answer 3.
A partner is not entitled to receive any remuneration if there is no partnership deed.

Answer 4.
Securities Premium amount can be utilised in issuing bonus shares to the shareholders to maximise the return to them.

Answer 5.
When shares are issued against the consideration payable for an asset purchased or for the redemption of any other security, such an issue is termed as ‘issue of shares for consideration other than cash’ i.e. a company issued its equity shares of Rs 10,00,000 against the payment of a machinery purchased.

Answer 6.
No, a sleeping partner is not liable for the act of others.

Answer 7.
Profit and loss appropriation A/c

Answer 8.
Books of Madhu Ltd.
Journal

Answer 9.
Books of Madhu Ltd.
Journal

Answer 10.
(a) Journal of D Ltd.

(b) (i) Helping the physically handicapped students.
(ii) Fulfilment of social responsibility towards society.

Answer 11.
(a) Two values involved are:
(i) Promotion of national integrity by admitting a partner from different area of the country.
(ii) Secularism.

Answer 12.

Answer 13.

Answer 14.
Working Notes

Answer 15.

Answer 16.

Answer 17.
Journal

Answer 18.
Sale of fixed Assets/Investment.

Answer 19.
He is wrong. It is a financing activity for a manufacturing company.

Answer 20.

Answer 21.
Cost of revenue from operations = Opening inventory + Purchase + Carriage inwards – Closing inventory
= 28,000 + 40,000 + 4,000 – 22,000 = 50,000

Answer 22.
Common size statement of Profit and Loss

Answer 23.

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