CBSE Class XII Accountancy All India Board Paper Set 3 - 2018

Time: 3 Hours

Max. Marks: 80

General Instructions:

1. This question paper contains two parts A and B
2. Part A is compulsory for all
3. Part B has two options- Analysis of Financial Statement and Computerised Accounting.
4. Attempt only one option of part B.
5. All parts of a question should be attempted at one place

SECTION A

1. Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of settlement of assets and liabilities. [1]
2. Is 'Reserve Capital' a part of 'unsubscribed capital' or 'Uncalled Capital'? [1]

1. Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for ₹2 crores. After a year, they sold it for ₹3 crores and shared the

profits equally. Are they doing the business in partnership? Give reason in support of your answer. [1]

1. Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3:1. Chaman was admitted as a new partner for <math>\frac{1}{6}</math>th share in the profits. Chaman acquired <math>\frac{2}{5}</math>th of his share from Amit.

How much share did Chaman acquire from Beena? [1]

1. Give the meaning of 'Debentures issued as Collateral Security'.

[1]

1. Neetu, Meetu and Teetu were partners in a firm. On 1st January, 2018, Meetu retired. On Meetu's retirement the goodwill of the firm was valued at ₹4,20,000.

Pass necessary journal entry for the treatment of goodwill on Meetu's retirement. [1]

1. NK Ltd., a truck manufacturing company, is registered with an authorised capital of ₹1,00,00,000 divided into equity shares of ₹100 each. The subscribed and paid up capital of the company is ₹50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to train the specially abled children of the area. It is planning to provide them employment in its various production units and industries in the neighbourhood area.

To meet the capital expenditure requirements of the project, the company offered 20,000 shares to the public for subscription. The shares were fully subscribed and paid.

Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also identify any two values that the company wants to communicate. [3]

1. What is meant by a 'Share'? Give any two differences between 'Preference Shares' and 'Equity Shares'. [3]

1. Jayant, Kartik and Leena were partners in a firm sharing profits and losses in the ratio of 5:2:3. Kartik died and Jayant and Leena decided to continue the business. Their gaining ratio was 2:3.

Calculate the new profit sharing ratio of Jayant and Leela. [3]

10. Complete the following journal entries left blank in the books of VK Ltd.: [3] VK Ltd.

Journal

Dr. Cr.

Date Particulars L.F. ₹ ₹

2018 Feb 1 Dr.

(Purchased own 500, 9% debentures of ₹100 each at ₹97 each for immediate cancellation) Feb 1 Dr.

(Cancelled own debentures) Dr.

11. Banwari, Girdhari and Murari are partners in a firm sharing profits and losses in the ratio of 4 : 5 : 6. On 31st March, 2014, Girdhari retired. On that date the capitals of Banwari, Girdhari and Murari before the necessary adjustments stood at ₹2,00,000, ₹1,00,000 and ₹50,000 respectively. On Girdhari's retirement, goodwill of the firm was valued at ₹1,14,000. Revaluation of assets and re-assessment of liabilities resulted in a profit of ₹6,000. General Reserve stood in the books of the firm at ₹30,000.

The amount payable to Girdhari was transferred to his loan account. Banwari and Murari agreed to pay Girdhari two yearly instalments of ₹75,000 each including interest @ 10% p.a. on the outstanding balance during the first two years and the balance including interest in the third year. The firm closes its books on 31st March every year.

Prepare Girdhari's loan account till it is finally paid showing the working notes clearly. [4]

12. Asha and Aditi are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit Raghav as a partner for <math>\frac{1}{4}</math>th share in the profits of the firm. Raghav brings ₹6,00,000 as his capital and his share of goodwill in cash. Goodwill of the firm is to be valued at two years' purchase of average profits of the last four years.

The profits of the firm during the last four years are given below:

Year Profit (₹) 2013-14 3,50,000 2014-15 4,75,000 2015-16 6,70,000 2016-17 7,45,000

The following additional information is given:

1. To cover management cost an annual charge of ₹56,250 should be made for the purpose of valuation of goodwill.
2. The closing stock for the year ended 31.3.2017 was overvalued by ₹15,000.

Pass necessary journal entries on Raghav's admission showing the working notes clearly. [4]