शिक्षा निदे िालय, राष्ट्रीय राजधािी क्षेत्र ददल्ली

Directorate of Education, GNCT of Delhi

Suggestive Answers of Practice Paper
कक्षा – XII
Class – XII
लेखाांकि(कोड: 055)
Accountancy (Code: 055)
TERM II (2021-22)
अधधकतम अांक: 40
Maximum Marks: 40

1.

In the books of Railway Club

Dr. Receipts and Payments A/c for the year ended 31st March, 2019 Cr.
Amount Amount
Receipts Payments
(₹) (₹)
To balance b/d 4,390 By Electricity Charges 3,440
To Subscriptions 37,600 By Taxes Paid 490
To Donations 8,000 By Salaries 21,500
To Entrance Fees 4,300 By Honorarium to Secretary 2,500
To Rent Received for Club 5,250 By Printing and Stationery 350
Halls
To Interest Received on 2,950 By Petty Cash Expenses 900
Investments
By Insurance Premium Paid 310
By balance c/d 33,000

62,490 62,490

2. The following are the rules of settlement of accounts on dissolution as per the Section 48 of
Partnership Act 1932.

1. Application of Assets: Amount received by the realisation (sale) of the assets shall be used in the
following order:
a) First of all the external liabilities and expenses are to be paid.
b) Then, all loans and advances forwarded by the partners should be paid.
c) Then, the capital of each partner should be paid off. If there remains any surplus after the payment
of (a), (b) and (c), then it should be distributed among the partners in their profit sharing ratio.

2. Treatment of Loss: In case of loss and any deficiency of capital this should be paid in the following
order:
a) First these should be adjusted against firm's profits.
 b) Then, against the total capital of the firm.
c)Even if there exists any loss and deficiencies then it should be borne by all the partners individually
in their profit sharing ratio.

3.

Old Ratio (Shiv, Mohan and Hari) = 5 : 5 : 4

Mohan’s Profit Share =

His share is divided between Shiv and Hari equally i.e. in the ratio of 1: 1

New Profit Share = Old Profit Share + Share taken from Mohan

∴ New Profit Ratio (Shiv and Hari) = 15 : 13

4.

Balance Sheet
as at 31st March, 2019
Amount Amount
Liabilities Assets
(₹) (₹)
Match Fund 80,000 Match Fund Investment 72,000
Add: Interest on Match Fund 2,880 Match Fund Bank
3,500
Investment Balance
Less: Match Expenses (5,500) 77,380

OR

Calculation of Amount of Sports Material Consumed to be debited to Income & Expenditure A/c
Particulars Amount
(₹)
Amount Paid to the creditors of Sports Materials 91,000
Less: Creditors of the sports material as on 31st March, 2017 37,000
Closing Stock of Sports Material as on 31st March, 2018 55,000
Sports Material sold during the year 50,000
Add: Creditors of the sports material as on 31st March, 2018 45,000
Cash purchase of Sports Material 40,000
Opening Stock of Sports Material as on 31st March, 2017 50,000
Sports Material consumed during the year to be debited to Income & Expenditure A/c 84,000

5.

Books of Saroj and Shanti

Journal

Amount Amount
Date Particulars L.F. Rs Rs
Sangeeta’s Capital A/c Dr. 12,000
Saroj’s Capital A/c Dr. 18,000
Shanti’s Capital A/c Dr. 30,000
To Goodwill A/c 60,000
(Goodwill written off)

Saroj’s Capital A/c Dr. 18,000

To Sangeeta’s Capital A/c 18,000
(Sangeeta’s share of goodwill adjusted to Saroj’s Capital
Account in her gaining ratio)

Working Notes:

1. Sangeeta’s share of goodwill.

Total goodwill of the firm  Retiring Partner’s share

2. Gaining Ratio = New Ratio – Old Ratio

Saroj’s Gaining Share

Shanti’s Gaining Share

6.

In the books of Green Ltd.

Journal
Date Particulars L.F. Debit Credit
 Amount Amount
(₹) (₹)
Sundry Assets A/c Dr. 40,00,000
To Sundry Liabilities A/c 7,00,000
To Strong Ltd. 32,40,000
To Capital Reserve A/c 60,000
(Being the purchase of business of Strong Ltd.)

Strong Ltd. A/c Dr. 32,40,000

Discount on Issue of Debentures A/c (36,000×10) Dr. 3,60,000
To 10% Debentures A/c 36,00,000
(Being 36,000, 10% debentures issued as purchase
consideration)

Working Notes:
Number of Debentures issued= (32,40,000/90) = 36,000 debentures

OR

When Debentures Issued as Collateral Security is shown separately

X Ltd.
Balance Sheet
Amount
Particulars Note No.
(Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
2. Non-Current Liabilities
a. Long-Term Borrowings 1 3,00,000
3. Current Liabilities
Total 3,00,000

II. Assets
[Link]-Current Assets
[Link] Assets
a. Cash and Cash Equivalents 2 3,00,000
Total 3,00,000

NOTES TO ACCOUNTS
Amount
Note No. Particulars
(Rs)

1 Long-Term Borrowings
Secured:
Loan From IDBI(Secured by issue of Debentures of 3,00,000
Rs 4,00,000)
9 % Debentures (Issued as Collateral
Security against loan) 4,00,000
Less: Debenture Suspense Account 4,00,000 -
3,00,000

2 Cash and Cash Equivalents

Cash at Bank 3,00,000
7.

Books of Paras and Priya

Journal

Amount Amount
Particulars L.F.
Rs Rs
1) Bank A/c Dr. 3,000
To Realisation A/c 3,000
(Unrecorded furniture sold)

2) Bank A/c Dr. 600

To Realisation A/c 600
(Bad Debt recovered which was previously written off as bad)

3) Paras’s Capital A/c Dr. 30,000

To Realisation A/c 30,000
(Unrecorded goodwill taken over by Paras)

4) Priya’s Capital A/c Dr. 300

To Realisation A/c 300
(Unrecorded Typewriter estimated Rs 400 taken over by Priya at
25% less price)

5) Paras’s Capital A/c Dr. 300

Priya’s Capital A/c Dr. 300
To Realisation A/c 600
(100 shares of Rs 10 each which were not recorded in the books
taken @ Rs 6 each by Paras and Priya and divided between them in
their profit sharing ratio)

OR

Books of Radha and Meena

Revaluation Account
Dr. Cr.
Amount Amount
Particulars Rs Particulars Rs
Machinery 800 Expenses Owing 750
Loose Tools 400 Factory Premises 1,800
Profit transferred to Capital Account:
Meena 675
Radha 450
 Sheela 225 1,350
2,550 2,550

Parters’ Capital Account

Dr. Cr.
Particulars Radha Sheela Meena Particulars Radha Sheela Meena
Sheela’s Capital A/c 3,375 1,125 Balance b/d 15,000 15,000 15,000
Sheela’s Loan A/c 24,450 General Reserve 6,750 4,500 2,250
Balance c/d 19,050 16,350 Revaluation (Profit) 675 450 225
Radha’s Capital A/c 3,375
Meena’s Capital A/c 1,125
22,425 24,450 17,475 22,425 24,450 17,475

8.
8. (i) Number of Debentures to be issued = 7875000/105 = 75,000
(ii) In the Books of Arun Ltd.
Journal

Date Particulars L.F. Dr. Amount (₹) Cr. Amount (₹)

2020 Debenture Application & Allotment A/c Dr. 7875000
April 1 Loss on Issue of Debentures A/c Dr. 7,50,000
To 6% Debentures A/c 75,00,000
To Securities Premium Reserve A/c 3,75,000
To Premium on Redemption of Debentures A/c 7,50,000
(Being allotment of debentures made)

(iii) Journal

Date Particulars L.F. Dr. Amount Cr. Amount

(₹) (₹)
2021 Securities Premium Reserve A/c Dr. 3,75,000
March 31 Statement of Profit & Loss Dr. 3,75,000
To Loss on Issue of Debentures A/c 7,50,000
(Being Loss on Issue of Debentures A/c written
off)

(iv) Interest on 6% debentures = 75,00,000 x 6 /100 = ₹4,50,000

(v) Loss on Issue of Debentures A/c
Dr. Cr.

Date Particulars Amount (₹) Date Particulars Amount (₹)

1.4.20 To Premium on 31.3.21 By Securities Premium 3,75,000
Redemption of Debentures 7,50,000 Reserve A/c 3,75,000
A/c By Statement of Profit & Loss
A/c
 7,50,000 7,50,000

9.

Books of Unity Club

Income and Expenditure Account

as on March 31, 2017

Dr. Cr.

Amount Amount
Expenditure Income
Rs Rs

Loss on Sale of Old Furniture (4,000 – 6,000) 2,000 Subscription

500 members at Rs 150 each 75,000
Salaries 72,000 Sale of Old Newspapers 10,800
Add: Outstanding for 2015–16 1,200 Profit from Entertainment 44,000

73,200 Rent 84,000

Less: Outstanding for 2016–17 (6,000) 67,200

General Expenses 18,000 Deficit (Balancing figure) 200

Electric Charges 12,000
Newspapers 33,800
Postage 3,000
Stationery 40,000
Audit Fees 8,000
Depreciation on Land and Building 30,000

2,14,000 2,14,000

Balance Sheet

as on 31 March 2017

Amount Amount
Liabilities Assets
Rs Rs

Advance Subscription (for 2017–18) 12,000 Subscription Outstanding 15,000

 Salaries Outstanding 1,200 Furniture
37,000
Capital Fund 6,94,000 Add: Purchases
18,000
Less: Deficit (200) 6,93,800
55,000
Less: Sales 49,000
(6,000)

Library Books
30,000
Add: Purchases 40,000
10,000

Land and Building

6,00,000
Less: 5% Depreciation 5,70,000
(30,000)

Cash and Bank 33,000

7,07,000 7,07,000

10.
(a)There is no flow of cash by the issue of 9% debentures to the vendors for the purchase of machinery of Rs
50,000 because this transaction will not change the balance of cash and cash equivalents.
(b) Dividend received by a finance company is an operating activity.

11.

Comparative Balance Sheet of H.P. Ltd.

as at March 31, 2018 and March 31, 2019
Absolute Percentage
2018 2019
Particulars Change Change
(₹) (₹)
(₹) (%)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital
1. Equity Share Capital 12,50,000 5,00,000 7,50,000 150.00
2. Preference Share Capital 2,50,000 2,50,000 – –
Total 15,00,000 7,50,000 7,50,000 100.00

b. Reserve and Surplus 3,00,000 4,50,000 (1,50,000) (33.33)

 18,00,000 12,00,000 6,00,000 50.00
2. Non-Current Liabilities
a. Long-term Borrowings
12% Secured Debentures 9,50,000 5,50,000 4,00,000 72.73
12% Unsecured Debentures 2,50,000 2,00,000 50,000 25.00
12,00,000 7,50,000 4,50,000 60.00
3. Current Liabilities
a. Short-Term Borrowings 3,50,000 1,75,000 1,75,000 100.0
b. Trade Payables 2,00,000 1,00,000 1,00,000 100.00
c. Short-Term Provisions 50,000 25,000 25,000 100.00
Total 36,00,000 22,50,000 13,50,000 60.00

II. Assets
1. Non-Current Assets
a. Fixed Assets (Tangible) 22,50,000 15,00,000 7,50,000 50.00
2. Current Assets
a. Inventories 4,50,000 2,50,000 2,00,000 80.00
b. Trade Receivables 8,00,000 4,50,000 3,50,000 77.78
c. Cash and Cash Equivalents 1,00,000 50,000 50,000 100.00
Total 36,00,000 22,50,000 13,50,000 60.00

OR

Comparative Income Statement

for the year ended March 31, 2014 and 2015
Absolute Percentage
2014 2015
Particulars Change Change
(Rs) (Rs)
(Rs) (%)
I. Revenue from Operations 45,00,000 60,00,000 15,00,000 33.33
II. Expenses
a. Depreciation 6,00,000 7,50,000 1,50,000 25.0
b. Employees Benefit Expenses 22,50,000 30,00,000 7,50,000 33.33
c. Other Expenses 10,00,000 15,50,000 5,50,000 55.0
38,50,000 53,00,000 14,50,000 37.66
Profit before Income Tax 6,50,000 7,00,000 50,000 7.69
Less: Income Tax 1,95,000 2,10,000 15,000 7.69
Profit after Income Tax 4,55,000 4,90,000 35,000 7.69

12.
 Cash flow Statement
for the year ended 31st March, 2017
Amount Amount
Particulars
(₹) (₹)
A. Cash Flow from Operating Activities
Closing Balance of Surplus i.e. Statement of Profit and Loss 1,00,000
Less: Opening Balance of Surplus i.e. Statement of Profit and Loss (25,000)
1,25,000
Add: Provision for Tax made 1,25,000
Proposed Dividend paid as on 31st March, 2016 50,000
Net Profit before tax and extraordinary items 3,00,000
Add: Depreciation charged during the year 62,500
Interest paid on 10% debentures 15,000
Net Profit before Working Capital changes 3,77,500
Less: Increase in Trade Receivables (50,000)
Net Profit before tax 3,27,500
Less: Tax Paid during the year 75,000
Cash flow from Operating Activities 2,52,500
B. Cash flow from Investing Activities
Purchase of Machinery (2,12,500)
Short term loans and advances given (1,00,000)
Cash used in Investing Activities (3,12,500)
C. Cash flow from Financing activities
Proceeds from issue of 10% debentures 1,00,000
Increase in the Bank Overdraft 50,000
Interest paid on debentures (15,000)
Proposed Dividend paid (50,000)
Cash flow from financing activities 85,000
Net Increase in Cash and Cash Equivalents 25,000
Add: Cash and Cash Equivalents at the beginning of the year 25,000
Cash and Cash Equivalents at the end of the year 50,000

Note: Proposed Dividend Treatment is as per AS-4.