Accountancy Sample Paper for Class 12 Set-3

Accountancy Sample Paper – 3
Class – XII
Subject – ACCOUNTANCY

Time: 3Hrs Max marks: 80

PART'A'- Not for profit organisation, Partnership and company Accounts

Q1 Why there is a need for separate accounting treatment for not for profit organisation    1

Q2 Under what circumstances the capital A/c of a partner does not shows a 'debit balance' in spite of regular and consistent losses year after year ?    1

Q3 What is realization A/c    1

Q4 Why assets and liabilities are revalued on the admission of partner?    1

Q5 what are the provisions if a company is not able to get the amount of minimum subscription.    1

Q6 calculate the amount of income from subscription for the year 2006-2007    3        

1. Subscription outstanding for March31, 2006 Rs 8,500
   

2. Subscription outstanding for March31, 2006 Rs 18,500
   

3. Subscription received in advance Mar31,2006 Rs 4000
   

Q7X. Y & Z were partners sharing profits in the ratio of 2:3:5. Goodwill is appearing in the books Rs 60,000. X retires and on that day Goodwill is valued at Rs 45,000.Y and Z decided to share future profits equally. Pass the necessary journal entries         3

Q8 Suman Ltd is registered with a nominal capital of Rs 10,00,000 divided in 1,00,000 shares of ` 10 each. Out of these 20,000 shares were issued to vendor as fully paid up as purchase consideration for building acquired. 65,000 shares were offered to the public and of these 60,000 shares were applied and allotted. The directors called Rs 6 per share and received the entire amount except Rs 2 per share on 5,000 shares. How would you show the relevant items in the Balance sheet    3    

Q9 RK Ltd issued 5,00,000,7% debentures of ` Rs 50each. Pass necessary journal entries in the books of company for the issue of debentures when debentures were    4

1. Issued at 4% premium, redeemable at 5% premium
   

1. Issued at par, redeemable at 8% premium
   

    

   Q10 Aman, Babu, and Charu were partners sharing profits in the ratio of 2:2:1. Charu wants that she should get equal share in the profits . She further wishes that change in the profit sharing should come in to effect retrospectively were for the last three year. Aman and Babu have agreement on his account. The profit for last three years were Rs 20,000, Rs 25,000and Rs40,000        4                     2007    22,000         2008    24,000         2009    29,000         Show the adjustment of profits by means of a single adjustment journal entry        4
   

    

    

   Q11 Sudhir Ltd took over the Assets of the book value Rs 12,00,000 and liabilities of Rs 2,20,000 of Jain Ltd for purchase consideration of Rs 9,35,000. The purchase consideration was discharged by the issue of debentures of Rs 500 each at a premium of 10%. Pass journal entries in the books of sudhir Ltd        4
   

    

    

   Q12 Given below is the receipt and Payment Account of 'old Men Association Club for the year ended on 31-3-2001
   

    

    

       
   

    

Prepare income and expenditure account for the year ended 31 march, after taking following in to consideration

1. There are 500 members each paying Rs 50 as annual subscription. Rs 500 is still in arrears for 1999-2000
   

2. Taxes amounting to Rs 400 per annual have been paid up to 30^th June 2001 and Rs 1000 for salaries is out standing
   

3. Building stands in the books at Rs+ 50,000 and it is required to write off depreciation at 5% per annum
   

1. Interest on investment is accrued for 5 months        6
   

    

   Q13 Pass necessary journal entries for redemption of debentures        6
   

    

   1. G Ltd had 8,00,000 9% debentures of Rs 100 each due for redemption. The company had balance of Rs 2,00,000 in its debentures Redemption Reserve Account.
      

   2. X Ltd redeemed 2,000, 10% debentures of Rs 100 each by purchasing in the open market for immediate cancellation at Rs 92 a debenture        
      

   3. B ltd Redeemed 2,500, 13% Debentures or Rs 100 each by converting them in to equity shares of Rs 10 each at premium of 25%
      

Q14 The following was the Balance sheet of X ,Y and Z as on 28.2.2002

The firm was dissolved on above date on the following terms

1. Debtors realized Rs 29,000 and creditors and bill payable were paid at discount of 10%
   

2. Stock was taken over by X for Rs 17,000 and furniture was sold to K for Rs 20,000
   

3. Land and Building was sold for Rs 1,18,000
   

4. G's loan was paid by cheque
   

5. The firm had a joint life policy of Rs 10,00,000 with a surrender value of Rs 1,80,000. The policy was surrendered at its surrender value
   

Prepare realization A/c, capital A/c and bank A/c        6

Q15 A, B and C were equal partner. Their Balance as at 31 Dec , 2009 is given below    8            

                 Balance Sheet

                As at 31 December, 2009

B Retired on 1^st January.2010, A and C decided to continue the business as equal partner on following terms

i)    Goodwill of the firm was valued at Rs 57,600

ii)    Provision for doubtful debts to maintained at 10%

iii)    Land building to be increased to Rs 1,32,000

iv)    Furniture to be reduced by Rs 8,000

1. Rent outstanding was Rs 1,500

1. The remaining partner decided to bring sufficient cash to pay off B and to maintain a bank balance of Rs 24,800. They decided to readjust their capital as per new profit sharing ratio

Prepare Revaluation A/c ,Partner's Capital A/c And Balance sheet

OR

A and B are partners sharing profits in the ratio of 2:3.Their balance sheet as on 31 December was as follows:

On this date they admitted C for 1/5 share in profits which he wholly acquires from B.The other terms of agreement were

1. Goodwill was to be valued at two years purchase of average of last 3 yrs profits. The profit for last 3 last three yrs were Rs 58,000; Rs 66,000; and Rs 56,000
2. Provisions for doubtful debt was found in excess by Rs 2,000
3. Building was found undervalued by Rs 20,000 and furniture overvalued by Rs 5,000
4. Rs 5,000 for damages claimed by customer. it was agreed at Rs 2,000 by a compromise between the firm and customer
5. C was to bring Rs 60,000 as his capital and necessary goodwill for his share
6. Capital of A and B were to be adjusted in the new profit sharing ratio by opening necessary current account

Prepare revaluation A/c Capital A/c and Balance sheet

Q16 .Reliance Ltd issued for public subscription 40,000 shares of Rs 10 each at a premium of Rs 2 per share payable as :

On application `2 per share. On allotment Rs 5 per share (inclu Premium). On first call Rs 2 per share. On second and final call Rs 3 per share

Applications were received for 60,000.shares Allotment was made prorata to applicants for 48000 shares, the remaining applicants beings refused. Money overpaid on applications was applied towards allotment

A to whom 1,600 shares were allotted failed to pay allotment money and B to whom 2,000 shares were allotted failed to pay two calls. these were subsequently forfeited after second call. Of these 3,000 shares were reissued to C credited as fully paid up at Rs 7 per share, the whole share of B was included                 

Pass necessary journal entries

Or

ARYAN Ltd invited Applications for issuing 90,000 equity shares of Rs 10 each at a discount of Rs 1 per share payable as Rs 3 per share on application Rs 2 per share on allotment Rs 4 per share on final call

Applications for 1,20,000 shares were received. Allotment was made as follows         

    LIST-I . Applicants of 15,000 shares were allotted in full

    LIST-II. Applicants of 45,000 shares were allotted 30,000 shares on pr-rata basis

    LIST-III Applicants of 60,000 shares were allotted 45,000 shares on pro-rata basis

All the shareholders paid the amount and call except 'A' ( who was allotted 3000 shares under list II ) and B (who was allotted 4,500 shares under List III). They did not pay any amount due on allotment and final call. Their shares were forfeited after final call and reissued at Rs 6 per share    . Pass necessary entries

PART B

ANALYSIS OF FINANCIAL STATEMENTS

1. 
   Assuming that Debt-Equity ratio is 2:1, state whether the ratio will improve, decline or will have no change in case equity share capital is issued for cash    1
2. Classify the following items in to (i) operating (ii) investing (iii) financing activities for finance company                     i) sale of securities (ii) dividend paid to share holder      1
3. How financial statement is useful for potential investor     1

    

1. Net profit of a company was 20%. Its indirect expenses were `

   80,000 and cash sales was `3,00,000. The credit sales was 80% of the total sales. Calculate the Gross profit ratio of company 3

   Q21 From the following information is given to you

   1. Stock turnover ratio 5 times
   2. Stock at the end is Rs 5,000 more than the stock in the beginning
   3. Sales(credit) Rs 2,00,000
   4. Gross profit ratio ¼ on cost
   5. Current liabilities
   6. Quick Ratio

   Calculate (a) cost of goods sold (b) opening and closing stock

   ( c) current assets    4

    

    

    

   Q22 From the following data prepare a comparative income Statement: 4    

Q23 The following is the balance sheet of kausal Ltd as on 31-12-2013 and 31-12-2014 were as follows:                        6

Additional information:

1. Rs 63,000 depreciation has been charged to machinery during the year 2014
2. A piece of machinery costing Rs 15,120 (book value Rs 6,300) was sold at 60% of book Value

    

Prepare cash flow statement for the year 31 Dec 2014

Accountancy Sample Paper – 02 for Class XII

Accountancy Sample Paper – 2
Class – XII
Subject –ACCOUNTANCY

Maximum Marks :-80                            Time Allowed: – 3:00 hrs

General Instructions:-

1. This Question paper contains three parts A,B and C.
2. Part A is compulsory for all Candidates.
3. All parts of the Questions should be attempted at one place.

   Part-A

    

1. Name the fund in which principal amount is kept intact till perpetuity and the income from such investment is used.                             (1)
2. L and M had a dispute over interest on Capital. M wants that interest on Capital be provided @ 8% p.a. What should be done if there is not partnership deed?        (1)
3. What do you mean by change in profit-sharing ratio?     (1)
4. Name the expenses which are incurred during the incorporation of a Company.     (1)
5. At the time of retirement of a partner, Workmen's Compensation reserve is appearing in the Balance Sheet as Rs. 4000. Give Journal entry if Workmen's Compensation at the time of retirement is estimated at Rs. 5000.             (1)
6. What amount of medicine be posted in the Income and Expenditure Account?

   Stock of medicine on 1.1.2009            Rs. 30,000

   Creditors for medicine on 1.1.2009            Rs. 20,000

   Stock of medicine on 31.12.2009            Rs. 5,000

   Amount paid for medicine during the year 2009        Rs. 1,08,000

   Advance paid for medicine on 31.12.2009        Rs. 3,000     (3)

7. Jyoti Ltd. invited applications for 1,00,000 shares of Rs. 10 each. Application for 1,50,000 shares were received. What are the alternatives available to the Company for allotment of these Shares?         (3)
8. A company issued 40,000 equity shares of Rs. 100 each at 20% premium. Amount payable are as follows:-

   Rs. 20 on application, Rs. 45 (including premium) on allotment, Rs 30 on first call and balance on 2^nd and final call. A holder of 2000 shares paid the whole of sum due along with allotment and similarly another holder of 100 shares had paid the entire balance with first call. First call and second and final call had been made after 2 months and 6 months from the date of allotment. Calculate interest payable on call in advance. The company adopts Table-A.                                 (3)

9. Gold and Silver are parteners,who divided profit and losses in the ratio of their capitals wich are Rs600000 and Rs400000.Gold is allowed an annual salary of Rs 50000 and Silver gets Rs400000 as commission@ 5% on total sales.Parterners were entitled to an interest @10%p.a. on capitals.The firm earned profits @ 10% on total sales.Prepare Profit and Loss Appropriation Account.                          (4)
10. A and B are partners, sharing profits in the ratio of their Capitals which are Rs. 1,50,000 and Rs. 1,00,000 respectively. C admitted and brings Rs. 20,000 for premium for Goodwill and Rs. 30,000 for Capital. The new profit sharing ratio of A, B and C are 1:3:1. Pass necessary journal entry for the treatment of goodwill on C's admission.

    (4)

11. Pallawi Ltd. issued 20,000, 7% Debenture of Rs.100 each on 1.4.2001 at a premium of 5%. On 31.03.2004 , out of these 2000, 7% debenture were redeemed by Converting them into equity shares of Rs. 100 each, issued at par and 5000, 7% Debenture were converted into 10% preference shares of Rs. 100 each issued at a premium of 25%. Pass necessary Journal entries in the book of Pallawi Ltd as on 31.03.2004.          (4)
12. Following is the Receipts and Payments Account of G.G sports club for the year ended 31st March 2007. Prepare Income and Expenditure Account for the year ended 31^st March, 2007 and the Balance Sheet at 31^st March, 2007.

                    Receipts and Payments Account                             For the year ending 31^st March 2007

    DR.                                 CR.

On 1^st April 2006, the club had assets worth Rs. 23,000 (Including Books of Rs. 7,000, 10% Investment Rs. 12,000 and Furniture Rs. 4000) Subscriptions outstanding as on 1.4.2006 were Rs.700 and as on 31.3.07 were Rs. 800. Creditors for stationery on 1.4.2006 were 300. Bills outstanding for repairs as on 31.03.07 were Rs. 600 and wages outstanding were Rs. 400. 50% of the Entrance is to be capitalized. Depreciation is to be provided on Computer @20% p.a. and Books 10% p.a.                 (6)

1. A,B and C were partners sharing Profit and Losses in the ratio of 5:3:2. Their Balance Sheet was as follows:-

    

    

    

    

   Balance Sheet of A, B and C

   As at 1^st April, 2007

B retired on the same date and the following adjustments were made:- (a) Fixed Assets were overvalued by 20% (b) Outstanding Bill for repair was worth Rs. 15,000. (c) Goodwill was valued at Rs. 47,500.

B was to be paid immediately by Cash brought in by A and C so as to make their capital in new profit sharing ratio which was 3:2. Goodwill should not be raised in the books. Prepare Revaluation Account Partner's Capital Accounts and the Balance Sheet of the firm. (6)                             (6)     

1. Vivek Ltd. issued on 1.1.2008, 1,00,000, 10% Debentures of Rs. 100 each at par. The terms of debentures trust deed provides for the redemption of Rs. 50,000 debentures every year commencing from 31.12.09 either by purchase in the open market or by drawing at par at the Company's option.

   On 31.12.09, the company purchased for cancellation, debentures of face value Rs. 30,000 at Rs. 80 per debenture and of Rs. 15,000 at Rs. 90 per debenture. Journalize the above transactions during 2008 and 2009. (Ignore interest on debentures.) (6)

2. Bramhaputra Ltd. issued 20000 shares of Rs 10 each at a discount of 10 %, payable as follows:-

On Application: – Rs.3

On Allotment: – Rs. 3 and balance on final call.

The issue was oversubscribed to the extent of 15000 shares and the allotment was made as follows:- (a) Applicants of 5000 shares were given full allotment (b) other applicants of shares were allotted shares on pro-rate basis. All moneys due were received with the exception of the allotment and call money on 1000 shares held by A and call money on 500 shares held by B. The shares on which allotment and call money was not received were forfeited. The forfeited shares were reissued at Rs. 7 per share as fully paid up. Pass necessary Journal entries in the books of Bramhaputra Ltd. for the above transactions.                                                 (8)

OR

Ganga Ltd. issued a prospectus offering 2,00,000 Equity shares of Rs. 100 each at a premium of Rs. 20 per share, payable as follows:-

On Application and Allotment:- Rs. 40 (Including Rs. 10 premium) and Balance on first and final call.

Subscriptions were received for 3,50,000 shares and the allotment made, was as under:-

1. To applicants for 1,80,000 shares-1,00,000 shares
2. To applicants for 1,70,000 shares- 1,00,000 shares

All the money due was received except Mr. A who was allotted 1000 shares in the category (i) and Mr. B, who applied for 3400 shares in the category (ii) failed to pay first and final call money. Of the share forfeited 50 % shares of A and B were reissued to Mr. C as fully paid up for Rs. 75 per share. Give the journal entries to record the above transactions.                             (8)

16.    Moon and star are two partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31^st March, 2010 is :-

Balance Sheet as on 31.3.2010

Earth is to be admitted as a partner with effect from 1^st April 2010 on the following terms:-

1. Earth will bring in Rs. 1,50,000 as Capital and Rs. 1,20,000 as premium for goodwill for 1/4^th share of profits.
2. The assets will be revalued as:- Land and Building-Rs. 5,50,000, Furniture- Rs. 1,20,000, stock- Rs. 1,50,000.
3. The claim of a creditor for Rs. 40,000 is paid as Rs. 48,000.
4. Half of the General Reserve is to be withdrawn by the partner's.
5. Bills payable paid off by raising Bank Loan. You are required to show the Revaluation Account, Partner's Capital accounts and the Balance sheet of the new firm.                                                      (8)

   
   OR                             

   Heera and Moti are partners in a firm sharing profits and losses in the ratio of 1:2. on 31^st March 2010, their Balance Sheet was :-

   Balance Sheet of Heera and Moti as on 31^st March 2010

On that date the partners decide to dissolve the firm under the following arrangements:-

1. Heera promised to pay off Mrs. Heera's Loan and took investment at Rs. 60,000.
2. Other assets were realized as follows:-

   Debtors:- Full amount, stock:- Rs40,000 Furniture:- 1,10,000, Patents and Goodwill:-10% less, A part of building at Rs. 54,000 (Being 10% less than the book value) and remaining building 20% more than the book value.

3. Expenses on realization amounted to Rs. 2000.
4. Creditors and Bills payable of the firm agreed to accept 10% less.

   You are required to close the books of the firm by preparing Realization Account, Partner's Capital Accounts and Bank Account.      (8)                    

   Part – B

17. What is vertical analysis of financial statement?                        (1)

18.Why are non-cash transactions such as depreciation added to the net profit, when cash flow

from operating activities is prepared?                            (1)

19. Dividend received by a financial enterprise is classified under which kind of activity while

preparing Cash Flow Statement.                                (1)

20. Prepare Comparative Income statement of Sunny Enterprises Ltd. for the period of 2009 and

2010.                                            (3)    

21.(a) X Ltd. has a current ratio of 3.5:1 and quick ratio 2:1. If excess of current assets over

quick assets represented by Stock is Rs. 24,000, Calculate current assets and current

liabilities.

(b) From the given information, Calculate Stock Turnover Ratio:-

Sales Rs. 4,00,000, Gross Profit 25%, opening stock was 1/4^th of the value of closing stock, closing stock was 20% of sales.    (2+2=4)    

22. The current ratio of a company is 2:1. State which of the following would improve, reduce or

not change the ratio (any four)        (1×4=4)    

(i) Purchase of goods on credit.    

(ii) Sale of fixed assets at a profit of 10%.

(iii) Payment made to creditors after deducting 10%.

        (iv) Payment of dividend.

        (v) Redemption of debentures at a premium of 25%

23. prepare cash flow statement

Additional information :

• During the year investment costing Rs. 3000 was sold for Rs. 2800.
• A new machinery was purchased for Rs. 13000             (6)

     ———-x———-

Accountancy Sample paper for class 12

Accountancy Sample Paper – 01

Class – XII
Subject –Accountancy

Time: 3 hrs.                                     Total Marks: 80

General instructions

1. The question paper contains two parts A and B
2. All parts of a question should be attempted at one place.
3. Each question carries marks indicated against it.

PART-A (Accounting)

1. State any two duties of a partner. (1)

2. X, Y and Z were partners in a firm sharing profits in the ration of 8: 7: 5. X retired and his share was taken over by Y and Z in the ration of 1:2. Calculate new ratio of X and Y.

(1)

3. According to section 79 of company act 1956, what are the two provisions when companies can not issue shares at discount?                         (1)

Q4. Mention any two features of Not for profit organization. (1)

Q5. What are the circumstances to dissolve the firm. (1)

Q6. As a director of a company, you had invited applications for 40,000 equity shares of Rs.10 each at a premium of Rs 5 each. The total application money received at Rs.2 per share was us. 1,44,000. Name the kind of subscription. List the three alternatives for allotting these shares.          (3)

Q7. D Ltd., purchased machinery worth Rs. 2,00,000 from E Ltd., on 1.1.2009. Rs. 50,000 was paid immediately and the balance was paid by issue of Rs.1,60,000 12% Preference shares of D Ltd. Pass the necessary journal entries for recording the transactions in books of D Ltd.                                          (3)

Q8. How the following items will be shown in the balance sheet of the Not-For-Profit organization:

                                         (3)

Q9. A, B, C and D are partners sharing profits in the ratio of 2:2:1:1. On B's retirement, the goodwill of the firm is valued at Rs. 90,000. A, C and D decided to share future profits equally. Pass necessary journal entry for the treatment of goodwill.      (4)

Q10. Fenn Ltd issued 5000 8%Debentures of Rs. 100 each at a premium of 12% to be redeemed at a premium of 4% after 10 years. Give journal entries on issue and redemption of debentures. (4)

Q11. A, B & C were partners in a firm distributed the profits for the year ended 31^st December, 2009 Rs.1,50,000 equally without providing for the following adjustments:

          i) A and C were entitled to a salary of Rs. 5,000 p.a.

         ii) B was entitled to a commission of Rs. 5,000.

        iii) Interest on capital @ 10%p.a.

iv) Profits were to be shared in the ratio of 2:2:1.

v) Their fixed capitals were A Rs. 40,000; B Rs. 30,000 and C Rs. 10,000.

Pass necessary journal entries for the above adjustments in the books of the firm. (4)

Q12. Jaya, Shree and Jothi were partners in a business with a profit sharing ratio of 3 : 2. 1 They decided to dissolve the partnership on January 31^st December, 2009. On that date the assets (other than cash Rs. 6,000) of the firm realized Rs. 2,20,000. The liabilities and other particulars on that date of the firm were as follows:

Creditors Rs. 40,000, Jaya's capital Rs. 90,000, Shree's capital Rs. 30,000 and Jothi's capital Rs. 40,000. Expenses on realization were Rs. 1,000 paid by Mr. Shree. Creditors were settled for Rs. 39,000. Prepare balance sheet of the firm as on 31-12-2009 and necessary ledger a/c.                                                  6

Q13. Give the answer to the following:

(a) Lakshmi Ltd. issued 3,000 8%Debentures of Rs. 200 each. The Board of Directors decided to purchase 20% Debentures of face value of the debentures at a price of Rs. 180 each for investment purpose. After few days, they decided to sell off these debentures @ Rs. 195 each in the market.    Pass necessary journal entries and also calculate the amount to be transferred to DRR a/c.              3

(b) State the exceptions to the creation of DRR as per SEBI Guidelines. 3                 

Q14. The following is the Receipts and Payments account of the Jayashri Club for the year ended on 31^st Dec. 2009. You are required to prepare income and expenditure a/c:

Additional information:

1. The club has 320 members each paying an annual subscription of Rs. 80. 24 members failed to pay the annual subscription of Rs. 75 each for the year 2008.
2. Half year insurance premium paid in advance.
3. On the 31^st December, 2009 salaries outstanding amounted to Rs. 200. Salaries paid in 2009 included Rs. 300 for the year 2010.                                                                  6

Q15. D Ltd. offered 15,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share. Payable as follows Rs. 2 On application, Rs .5 on allotment (including premium) and balance on first and final call.

The application money was received for 24,000 shares.

First 6000 applications were accepted fully and allotted.

Next 10,000 applications were allotted 6000.

Next 5,000 applications were allotted 3,000

Last 3000 applications were rejected and excess application money adjusted towards allotment. All share holder paid their due except Mr. Sun who was allotted 150 shares (from 5000 group) failed to pay allotment and calls money. His shares were forfeiture and out of these, 80 shares were reissued for Rs. 8,000 as fully paid up. Pass necessary journal entries. 8

Q16. X and Y are partners sharing profits as 2:1. Following is their balance sheet as on December 31, 2009:

Balance Sheet of X & Y

On 1^st January 2010, Z is admitted into partnership for 1/4^th share on the following terms:

1. That he should bring in Rs. 15,000 as his capital and Rs. 6,000 as premium for his hare of goodwill.
2. That land and building be revalued at Rs. 25,000 and stock at Rs. 18,500.
3. That Rs. 500 is to be provided for doubtful debts.
4. That after the above adjustments, the capital of the old partners be adjusted on the basis of the new partner's capital, having regard to profit sharing ratio. Excess or shortage will be adjusted through current account.

Record necessary journal entries and prepare capital accounts and new balance sheet of the partners.         8

OR

On 31^st March, 2009, the Balance Sheet of R, S and T was as follows:

The partnerships deed provides that the profit be shared in 2 : 1 : 1 and that in the event of death of a partner, his executor is entitled to be paid out:

1. The capital of his credit at the date of last balance sheet.
2. His share of revaluation profit, for this purpose the assets and liabilities are revalued as under: land & building Rs. 3,10,000 ; furniture Rs. 32,000; stock Rs. 22,000 and bad debts Rs. 2,000.
3. His proportion of reserves at the date of last balance sheet.
4. Interest on capital @ 6%.
5. His proportion of profits to the date of death based on the same scale as 2008-2009. Profit for the year 2008-2009 was Rs. 40,000 and
6. Goodwill to be valued at Rs. 60,000.

S died on January 1, 2010. He had withdrawn Rs. 5,000 to the date of his death.

The investments were sold at 20%premium and S's executors were paid off.

Show the necessary ledger accounts and the balance sheet of the surviving partners R and T.                                          8

PART-B: Analysis of financial statement

Q17.Name the head under which 'Interest Accrued and due on Secured Loans' appear in the balance sheet of the company. 1

Q18. If you want neither inflow nor outflow of cash which of the following transaction will you select:

(i) Issue of share in exchange of fixed assets for use in company's factory

(ii) Sale of goods on cash.

(iii) Provision for depreciation.

(iv) Goodwill written off.

(v) A long-term loan taken from bank

(vi) Conversion of debentures into equity shares. 1

Q19. The machinery costing Rs. 25,000, depreciation their on Rs. 8,000 and is sold at a profit of 10%. What is the net amount of cash inflow or out flow in cash flow statement? 1

Q19. Explain any three limitations of analysis of financial statements? 3

Q20. Solve the following:

1. Current Liabilities of the company was 60,000 and its Quick ratio was 1.5. After this it paid Rs. 10,000 to a creditor. Calculate the Quick ratio after this payment of creditor. 2
2. Calculate debt equity ratio from the following:

   Total assets Rs. 4,80,000; current liabilities Rs. 60,000; total debt Rs. 1,00,000.             2

Q21. Prepare a comparative income statement from the following: 4

21. The net profit after tax is Rs. As on 31^st December, 2004 after considering the following:-

i) Goodwill written off Rs. 4,000

ii) Loss on Sale of Plant Rs. 8,000

iii) Depreciation on Fixed Assets Rs. 8,000

iv) Income Tax paid Rs. 18,000

v) Profit on Sale of Land Rs. 20,000

vi) Interest Received Rs. 24,000

The following is position of Current Assets and Current Liabilities:

Calculate cash from operating activities.                         6

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