CBSE Sample Papers for Class 12 Accountancy Paper 2

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 2

CBSE Sample Papers for Class 12 Accountancy Paper 2

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 2 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
Accounting for Partnership Firms and Companies

Question 1.
Name two reserves/provisions that are not distributed at the time of the reconstitution of partnership firm.

Question 2.
Anand and Vinay, equal partners of the firm, decided to dissolved the firm or a business on 31 March, 2015. Their assets and liabilities on the date were: Sundry creditors Rs 32,000, Vinay’s loan Rs 10,000 (Cr.). Sundry Assets Rs 1,24,000. Find the capital balance of the partners as on 31 March, 2015.

Question 3.
What is meant by number of years’ purchased at the time of valuation of goodwill?

Question 4.
If a share of Rs 10 issued at a premium of Rs 2 on which Rs 6 (including premium) has been paid is forfeited. At what minimum price it can reissued?

Question 5.
A, B and C are partners in ratio 3:2:2. B wishes to retire from the firm and expresses his desire to admit his son as a partner in place of him. The partnership deed is silent on this, A and C agree to this change and also agree to continue in same profit ratio as before. Do you think the change will be as per law and why? What values have been fulfilled by A and C?

Question 6.
Anurag Ltd. decided to issue 50,000 equity shares. It gave its directors and employees right to buy 10,000 of the above shares. Name the type of issue.

Question 7.
Santosh Limited has the following balance appearing in the Balance sheet Security premium Rs 3600,000, 90% debenture – Rs 1,20,000, Underwriting commission – Rs 10,000,00. The company decided to redeem its 90% debentures at a premium of 10%. You are required to suggest ways in which company can utilise the security premium amount.

Question 8.
Ritu and Rose were partners in a firm. They admit Sneha a visually impaired person into partnership. Sneha pays only Rs 1,000 Out of her share of premium of 1,800 for 1/4 of the profit On same date, Rose died. Give necessary journal entries. Show your workings clearly. Identify values highlighted here.

Question 9.
Axis Ltd. has an authorised capital of Rs 20,00,000 divided into shares of Rs 10 each. The company invited applications for 1,00,000 shares. Applications for 95,000 shares were received. All calls were made and all amounts were duly received except the final call of Rs 4 per share on 2,000 shares. 1,000 of the shares on which final call was not received were forfeited. Show how the share capital will appear in the balance sheet of company as per schedule III part. I of the companies Act 2013. Also, prepare notes to accounts.

Question 10.
Pass necessary journal entries at the time of redemption in following cases:
(a) 5,000,9% debentures of Rs 100 each issued at premium of 10% and redeemed 20% premium.
(b) A company purchased from open market its own 10,000 debentures at Rs 105 per debenture for immediate cancellation.

Question 11.
Following is balance sheet of Rohan, Sohan and Mohan as on 31 March, 2015

Sohan died on 30 June 2015. Under the terms of deed, the executor of the deceased partner was entitled to the following:
(i) Amount standing to the credit of partner’s capital A/c.
(ii) Interest on Capital 12% p.a.
(iii) Share of goodwill on basis of twice the average of past three years’ profit.
(iv) The deceased partner will entitle to his share of profit up to date of death, calculate on the basis of previous year profit.
(v) There was a claim on workmen of Rs 18,000.
(vi) Share of profit from closing of last financial year. On date of death based on last year’s profit. Profits for last three years are:
2012 – 2013 Rs 85,000
2013 – 2014 Rs 92,000
2014 – 2015 Rs 93,000
Prepare Sohan’s capital A/c to be rendered to his executor.

Question 12.
Neha, Pooja and Anuj were partners in ratio of 2:3:2. On 1/4/2015, they decided to change their ratio as 2:1:1. On the above date, their balance sheet showed the following balance, general reserve Rs 40,000, workmen compensation reserve Rs 13,000 (Liability against this was Rs 4,000). Profit and loss A/c (Dr. balance) 4,200. The assets of the firm were revalued and resulted in a gain of Rs 8,400. The partners had decided to distribute all reserve and profit and loss A/c but to leave the assets at their original amount. Show effects of above adjustments in the books of the firm.

Question 13.
Mahesh and Ramesh are partners in a firm sharing profit in ratio 2 : 1. The combined capital on 1st April 2014 was Rs 3,84,000. Interest on capital is agreed 5% p.a. The profits of the year prior to interest on capital but after charging Ramesh salary amounted to Rs 45,000. Manager was allowed a commission of 5% on net profit. Fill in the missing figure in following accounts on 31 march 2015.

Question 14.
(a) Stephen Ltd. took over the following assets and liabilities of Bright Ltd.
Building Rs 10,00,000, Book debts Rs 6,00,000, Stock 3,50,000, Payables Rs 2,00,000 at an agreed consideration of Rs 20,00,000 which was discharged as follow:
40% by a bank draft
50% by issue of 9% debentures of Rs 100 each at a premium of 25%. The balance by a bill of exchange.
Give the journal entries in the books of Stephen ltd.
(b) Arun Ltd. is in garment business. As its coorporate social responsibility, it desired to install 200 cleaning centres to set up modem sewage system in town. The project was named ‘Swachh Bharat’. It purchased the material required from Aryan Ltd for Rs 2,50,000. It made the payment as follows:
(i) 50,000 by cheque.
(ii) 1,000,9% debentures of Rs 100 each at par.
(iii) 500,12% preference shares of Rs 200 each. Pass journal entries.

Question 15.
Snehal, Suchita and Sindhu were partners in ratio of 3:2:1. The firm was disolved on 31/3/2015.
After transfer of assets and liabilities to realisation A/c, the following transactions took place.
Give journal entries in the books on dissolution of firm.
(a) Suchitas loan to the firm Rs 30,000 was settled at Rs 28,500.
(b) A creditor for Rs 50,000, took over machinery of book value Rs 40,000 at Rs 35,000. The balance was settled in cash.
(c) Workmen compensation reserve Rs 40,000. A liability equal to 60% of reserve was settled.
(d) Sindhu was to receive 5% of the value of assets realised as remuneration for completing the dissolution work and was to bear realisation expenses. Realisation expenses were Rs 5,500 that was paid by sindhu. Assets realised Rs 60,000.
(e) The balance sheet disclosed a footnote contingent liability for Rs 5000 in respect of bill discounted. The bill was received from Megha. On the date of dissolution, Megha was declared insolvent and was not able to pay the amount due. The bill had to be met by the firm.
(f) Loss on realisation amounted to Rs 24,000

Question 16.
Jatin and Lalit are partners sharing in the ratio of 3:2. Their balance sheet as 31 March 2015, were as follow:

On 1st April 2015, they admitted Kishore as a partner for 1/10th share in profit which he acquired equally from Jatin and Lalit on following terms.
(a) Kishore is to bring Rs 50,000 as capital and it was decided that the capital of all partners shall be in proportion to their profit sharing ratio.
(b) The Goodwill of the firm is valued at Rs 60,000 and Kishore will contribute his share of goodwill in cash.
(c) Provision on debtors was found to be in excess by Rs 4,000.
(d) Outstanding expenses will be reduced to Rs 6,000.
(e) Depreciate stock by 50%.
(f) Market value of investments was Rs 70,000.
(g) Any deficiency or excess of capital will be adjusted through opening current account. Prepare revaluation A/c, partners’ capital A/c and balance sheet of newly constituted firm.
OR
X, Y and Z are partners sharing profit and losses in the ratio of 3 : 2 :1. The balance sheet on 31 March, 2015 stood as under.

On the above date Y retired. It is agreed that:
(i) Goodwill of the firm will be valued at Rs 90,000.
(ii) Value of machinery and furniture to be depreciated by 5%.
(iii) Provision for doubtful debts to be maintained at 20% on Sundry debtors.
(iv) Out of total insurance paid, premiums amounting to the extent of Rs 1000 to be treated as prepaid insurance, this was earlier debited to profit and loss account.
(v) The total capital of new firm is decided to be 2,40,000. Necessary adjustments to be made in cash.
(vi) Y will be paid 20% of total amount due to him in cash and balance transfer to his loan account. Prepare revaluation A/c, partners’ capital A/c and balance sheet of X and Z after Ys retirement.

Question 17.
Rohit Ltd. invited applications for 30,000 equity shares of Rs 100 each issued at premium of Rs 20 per share. The amount were payable as follows:
On application Rs 40 (including 10 as premium)
On allotment Rs 40 (including 10 as premium)
On first call Rs 20
On second and final call Rs 20
Applications for 40,000 shares were received and pro-rata allotment was made to the applicants for 35,000 shares excess application money is utilised on allotment. Rohan to whom 600 shares were alloted, failed to pay the allotment money and his shares were forfeited after allotment. Aman, who applied for 1,050 shares, failed to pay the first call and his shares were forfeited after first call. The second and final call was not yet made. Of the shares forfeited, 1,000 shares were reissued as fully paid for Rs 80 per share which include whole of Rohan’s share. Journalise the transactions.
OR
(a) 200 equity shares of Rs 100 each issued at a premium of Rs 10 were forfeited for non payment of allotment money of Rs 50 per share (including premium). The first and final call of Rs 20 per share was not yet made. The forfeited shares were reissued at Rs 70 per share as fully paid up. Pass necessary journal entries for forfeiture and reissue.
(b) Ajay and Co. Limited purchased Land costing 27,00,000 from Akash Ltd. Ajay and Co. Ltd paid 30% of the amount by cheque and balance was paid by issue of equity shares of Rs 100 each at a premium of 20% per annum. Pass necessary joumal entries for forfeiture and reissue.
(c) K Ltd. forfeited 500 equity shares for non-payment of first call of Rs 20 and final call of Rs 10 per share. State:
1. Can these shares be reissued?
2. If yes, state the minimum amount at which these shares can be reissued.
3. If these shares were reissued at ? 50 per share fully paid up. What will be the amount of capital reserve?

PART – B
‘Analysis of Financial Statements’

Question 18.
Under which type of activity will a trading company account for cash paid for acquiring shares of another company.

Question 19.
What will be the net inflow or outflow from investing activities, If the plant and machinery and goodwill shows an increase of Rs 35,000 and Rs 15,000 respectively from previous year and dividend received during the year amounted to Rs 10,000.

Question 20.
(a) Distinguish between horizontal analysis and vertical analysis and give an example.
(b) How are the following items represented in the company’s balance sheet
(i) Debit balance in statement of profit and loss.
(ii) Interest accrued due on debentures.
(iii) Capital advances.
(iv) Computer software under development

Question 21.
(a) Determine the value of dosing stock from the following details.
Sales-4,00,000
Gross profit ratio 10%
Stock velocity = 4 times.
Closing stock was Rs 10,000 in excess of opening stock.
(b) Gross profit ratio of a company was 25%. Its credit revenue from operations were 18,00,000 and its cash revenue from operations were 10% of total revenue from operations. If the indirect expenses of the company were Rs 50,000. Calculate the net profit ratio.

Question 22.
Calculate interest coverage ratio from following information:
Net profit after interest and tax Rs 9,60,000
12% debentures Rs 20,00,000
10% loan from IDBI Rs 12,00,000
The interest coverage ratio of the company has remained stable at around 5% for the last five years. The investors are happy at this feature.

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


Prepare a cash flow statement after taking into account the following adjustments. Dividends paid during the year amounted to RS 2,10,000

Answers

Answer 1.
Reserves/Provisions that are not distributed:
(a) Provision for tax
(b) Depreciation reserve

Answer 2.
Capital = Assets – Liabilities
= 1,24,000 – 42,000 = 82,000

Answer 3.
Number of years’ purchased is indicative of the fact that a business estimates to earn similar profits for a certain number of years because of its past efforts.

Answer 4.
Rs 6 is the minimum price at which the forfeited shares can be reissued.

Answer 5.
According to the partnership act, if the deed is silent, a new partner may be admitted into the firm with the consent of all remaining partners. In the present case, as A and C do not have any objection, Z can be taken into partnership.
Value highlighted: A and C have maintained good relationship and have recognised the loyalty of B towards the firm.

Answer 6.
The right to buy these shares is under the employee stock option plan (ESOP).

Answer 7.
As per section 52(2) of the companies Act, 2013, Santosh Limited may utilise the amount of securities premium in the following ways:
(a) For writing off underwriting commission of Rs 10,00,000.
(b) Providing for the premium payable on the redemption of 9% debentures Rs 12,00,000.
(c) The balance amount may be utilised for issuing bonus shares to the members or for purchasing its own shares (Buy back) from the open market.

Answer 8.
In the Books of Ritu, Rose and Sneha
Journal

Values: Concerns towards visually impaired person.

Answer 9.
Axis Ltd.
Balance sheet (extract)

Answer 10.
In the books of Nishant Ltd.
Journal

Answer 11.

Answer 12.
In the books of Neha, Pooja and Anuj
Journal

Answer 13.

Answer 14.
(a) In the books of Stephen Ltd.
Journal

Answer 15.
In the books of Snehal, Suchita and Sindhu
Journal

Answer 16.
Revaluation Account

Answer 17.
In the Books of Rohit Ltd.
Journal




(c) (i) Yes, these shares can be reissued. Forfeited shares can be issued by the board of directors as and when it so decides. Such shares can be issued at par, premium or at discount.
(ii) These shares can be reissued allowing discount not exceeding the amount forfeited on such shares. In this situation, the company can reissue the forfeited shares for a minimum of Rs 30 per share.
(iii) The amount transferred to capital reserve will be Rs 10,000.
Calculation of amount transferred:
Amount forfeited = 500 x 70 = 35,000
Less: discount on reissue = 500 x 50 = 25,000
Profit on reissue = 35,000 – 25,000 = 10,000

Answer 18.
Shares acquired of another company will be shown as an investing activity by a trading company.

Answer 19.
Outflow Rs 40,000.

Answer 20.
(a) Horizontal analysis also called Dynamic analysis is made to review and analyse financial statements of a business over a number of years. It is useful for long term planning and trend analysis.
Example: Comparative financial statements.
Vertical analysis also called static analysis is made to review and analyze financial statement of a business for one year. It is useful for short term planning.
Example: Ratio analysis of any particular financial year.

Answer 21.

Answer 22.

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

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