CBSE Sample Papers for Class 12 Accountancy Paper 3

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 3

CBSE Sample Papers for Class 12 Accountancy Paper 3

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 3 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.
How is the valued goodwill treated on retirement of a partner?

Question 2.
For the year ended March 31, 2015. Bharat Ltd. did not earn adequate profit to pay dividend to shareholders. Can the company utilise security premium reserve for paying the dividend? Justify.

Question 3.
On 1 April 2012, Mohan Ltd. issued 10,000 9% debentures of Rs 100 each at a premium of 10% redeemable at par after three years. What amount of debenture redemption reserve is required to be created by the company.

Question 4.
Write any two items that appear on credit side of capital A/c in case of fixed capital method.

Question 5.
A, B, C and D are partners sharing profit in ratio 4 :3 :2 :1. They decide to admit their manager E as a partner for 1/4th share which he acquires from A and B in the ratio of 7: 3. Calculate the new shares of A and B.

Question 6.
A and B are partners in a firm. They have received order from the court to dissolve the partnership firm. A had advanced 25,000 by way of loan to the firm and wants that he must be paid off before the payment of Mrs. B’s loan of 10,000 and capitals to the partners. Is his claim right?

Question 7.
(a) Give the meaning of buy back of shares.
(b) Differentiate between equity share capital and preference share capital on the basis of rate of dividend.
(c) What is meant by ‘Subscribed but not fully paid up” share capital?

Question 8.
Priyanka and Dipti are partners in a firm sharing profits equally. After two years, Priyanka shared her concern with dipti stating she is comparatively spending more time in business than Dipti. So, either, Dipti should invest more capital without interest or she could change the profit sharing ratio, they appeared General reserve of Rs 60,000. Advertisement suspense A/c of Rs 50,000; stock is valued as Rs 7,000 more and a provision for doubtful debt to be created at Rs 2,000 (there is an existing provision of Rs 1,500). Investment found to be undervalued by 3,000. Pass necessary journal entry for above if it is decided not to alter the value of assets or liabilities and general reserve and advertisement suspense will appear at book values.

Question 9.
Lux Ltd invited applications for issuing 5,000 equity shares of Rs 100 each at a premium of Rs 50 per share. Full amount was payable on application. Applications were received for 6,000 shares. Applications for 1,000 shares were rejected and application money was refunded. Shares were alloted to the remaining applicants.
Pass necessary journal entries for the above transaction in the books of the company. Also, indicate the value being violated by Lux Ltd. in the above case.

Question 10.
Sapphire Ltd had an authorised capital of Rs 1,00,000 divided into 1,000 equity shares of Rs 100 each. It issued 500 equity shares to public for subscription payable Rs 30 on application Rs 30 on allotment and Rs 20 on first and balance on final call. All the shareholders paid the calls except first call money on 50 shares. Final call is not yet made. 50 shares were forfeited and reissued at Rs 50 per share, Rs 80 paid up. Show the share capital and reserve and surplus in the balance sheet of the company as per schedule III of companies Act 2013 as 31 March 2015.

Question 11.
Snoopy and Emily were partners in a firm in ratio of 5:2. Maria was admitted for 1/5th share and in future they decided to share the profits in the ratio of 13:15 : 7. Goodwill appear in books at Rs 21,000. Maria brought 49,000 for goodwill and Rs 1,00,000 for capital. Pass the journal entries.

Question 12.
A partnership firm earned net profit during last four years as follows:

The capital employed in the firm throughout the above mentioned period has been Rs 5,00,000. Having regard to the risk involved, 20% is considered to be a fair return on the capital. The remuneration of all the partners during this period is estimated to be Rs 1,20,000 per annum. Calculate the value of goodwill on basis of
(i) Three years’ purchase of super profits earned on average basis during the above mentioned period and
(ii) by capitalisation method.

Question 13.
Complete the following journal entries on issue of debentures:

Question 14.
Following is the balance sheet as at 31.3.2015 of A and T sharing profits in ratio of 2 : 3.

On the above date, the firm was dissolved and following as result:
(i) A took over the investments at Rs 8,000.
(ii) The assets realised as follows – stock Rs 8,000; Debtors Rs 16,500; Plant Rs 3,000 less goodwill Rs 4,000.
(iii) Creditors were due to be paid on 30 June 2015 and so received a discount of 20% p.a.
(iv) Expenses of realisation were Rs 2,000 paid by A.
Prepare realisation A/c, Partners’ capital A/c and cash A/c to close the books of the firm.

Question 15.
A, B and C were partners in a firm having capitals of Rs 50,000, Rs 50,000 and Rs 1,00,000 respectively. Their current A/c balances are A – Rs 10,000, B – 5,000, C – 2,000 (Dr.) Drawings made during this year were Rs 2,000, Rs 3,000 and Rs 1,500 respectively. According to the partnership deed, the partners were entitled to an interest on capital 5% p.a. C being the working partner was also entitled to a salary of 6000 p.a. the profits were divided as follows:
(a) The first 20,000 .in proportion to their capitals.
(b) Next 30,000, in ratio of 5:3 and 2.
(c) Remaining profit to be shared equally.
The firm made profit of Rs 1,56,000 before charging any of the above items. Prepare profit and loss appropriation A/c, Partners’ capital A/c and current A/c

Question 16.
Neha and Preeti are two partners who share profits and losses equally had following balance sheet as at 31 March 2015. They had decided to admit chandra in partnership as equal partner on that date.

For the purpose of admission, the following conditions agreed.
(i) Assets and liabilities shall be revalued as follows:
(a) Investments at Rs 17,500.
(b) Reserve to be doubtful debts increased to Rs 1,750.
(c) Stock to be valued at 8,000.
(d) Machinery depreciated by 5%.
(e) There is an old furniture worth 1,200 to be brought into books and was taken over by partners in old profit sharing ratio.
(ii) Goodwill of the firm is valued at 22,500.
(iii) Chandra has agreed to bring 50,000 as his capital in addition to goodwill.
(iv) The capital account have to be adjusted on the basis of chandra’s capital formation through current accounts.
Prepare revaluation A/c; Capital A/c of partners and balance sheet of firm after chandra’s admission.
OR
The balance sheet of X, Y and Z who were sharing profits in proportion of capitals as follows:
Balance sheet

On the above date, Y retired. It is agreed that
(i) That the stock to be depreciated by 5%.
(ii) That the provision for doubtful debts to be increased to 5% on debtors.
(iii) That a provision of Rs 750 to be made in respect of outstanding claim of damages.
(iv) That the land and building be appreciated by 20%.
(v) That the goodwill of the firm be fixed at Rs 16,200 and Y’s share of same to be adjusted into the account of X and Z. (No goodwill account is to be raised)
(vi) That the entire capital of new firm at Rs 48,000, between X and Z in equal proportion.
For the purpose, actual cash is to be brought or paid off.
You are required to prepare the revaluation account, partners’ capital A/c and revised balance sheet after Y’s retirement. Also, indicate the gaining ratio.

Question 17.
TTC Ltd. issued for public subscription 150,000 shares of Rs 10 each at a premium of 10%. Payable as Rs 3 on application (including premium), Rs 3 on allotment and Rs 5 on call. The company received applications for 300,000 shares. The allotment was done as under:
(a) Applicants of 30,000 shares were allotted 10,000 shares.
(b) Applicants for Rs 140,000 shares were allotted 80,000 shares
(c) Remaining applicants were allotted 60,000 shares. Money in excess of allotment was returned. Richi, a shareholder who was alloted 4,000 shares out of group ‘b’ failed to pay allotment money and on her subsequent failure to pay call money, her shares were forfeited. Shuchi, a shareholder who had applied for 6,500 shares out of group ‘C’ paid the call money along with allotment. Of the shares forfeited, 2000 shares were reisued as fully paid for Rs 9.50 per share.
Pass journal entries to record the transactions in the books of company.
OR
Malabar Ltd invited applications for issuing 75,000 equity shares of Rs 10 each at a premium
of 20%. The amount was payable as follows.
On application – Rs 2 per share
On allotment – Rs 5 per share.
On first and final call – balance amount.
Applications were received for 1,50,000 shares. Applications for 25,000 shares were rejected and application money of these applications was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with application was adjusted towards due on allotment. Rama, who had applied 1,250 shares failed to pay allotment and call money and Kriti failed to pay first and final call on her 1,000 shares.
All these shares were forfeited. 1,000 shares out of forfeited shares were reissued at 7 per share fully paid up, including all shares of Rama. Pass necessary journal entries in the books of company.

PART – B
‘Analysis of Financial Statements’

Question .18.
State with reason whether sale of marketable securities at par would result in inflow, outflow or No flow of cash or cash equivalents.

Question 19.
State with reason whether redemption of debentures for cash would result in inflow,outflow or No flow of cash and cash equivalents.

Question 20.
Prepare ‘Notes to Accounts’ giving details of tangible fixed assets with imaginary figures as per schedule III of company Act 2013.

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

Question 22.
From the details, calculate any two of following ratios:
(i) Inventory turnover ratio
(ii) Operating ratio
(iii) Gross profit ratio

Question 23.
From the following information, calculate net cash flow from operating activities:

Additional information:
At the end of the year, preference shares were redeemed at premium of 5%. Dividend on equity , shares was paid 8%. Fresh issue of equity shares was done in the beginning of the year.

Answers

Answer 1.
Adjusting journal Entry is passed as under:
Gaining partner’s capital A/c Dr.
To Retiring partner’s capital A/c
To Sacrificing partner’s capital A/c [if any one of the existing partner is also sacrificing] [Being adjustment of goodwill at the time of retirement of partner]

Answer 2.
The company can not utilise securities premium reserve for payment of dividend as it can be utilised only for the purpose stated under section 52[2] of the companies act 2013.

Answer 3.
The company will need to create a debenture redemption reserve equal to 25% of 10,00,000 i.e. 2,50,000.

Answer 4.
(i) Opening balance of capital.
(ii) Additional capital introduced.

Answer 5.
New shares of A and B
A = 4/10 – 1/4 x 7/10 = 6/40
B = 3/10 – 1/4 x 3/10 = 2/40

Answer 6.
No, claim made by A is not right. He will be paid after outsider’s liability i.e. after Mrs. B’s loan is settled, but before payment of capital to the partner.

Answer 7.
(a) It means purchasing of own shares from the open market, by a company either from free reserves, securities premium or proceeds from issues of any shares or securities.
(b) The rate of dividend on preference shares is fixed whereas rate of divided on equity shares varies from year to year depending on profits available.
(c) share capital shown under this category is either the shares for which company has not called the entire face value yet or there is a default in payment by the shareholders.

Answer 8.
Calculation of gain/sacrifice:
Priyanka = 3/4 – 1/2 = 1/4[gain]
Dipti = 1/4 – 1/2 = – 1/4 [sacrifice]

Answer 9.
In the books of Lux. Ltd.
Journal

Value being violated by Lux Ltd. is equality; by rejecting some applications, the company did not treat all the shareholders equally.

Answer 10.
Balance sheet of Sapphire Ltd. [an extract]

Answer 11.
In the books of Snoopy, Emily and Maria
Journal

Working notes:
Sacrifice/gain
Snoopy = 5/7 – 13/35 = 25 – 13/35 = 12/35[sacrifice]
Emily = 2/7 = 15/35 = 10 – 15/35 = – 5/35[Gain]
Maria = 1/5 [Gain]
Premium brought by Maria = Rs 49,000
Goodwill of the firm = Rs 49,000 x 5 = Rs 2,45,000
Amount to be compensated by Emily to snoopy for Goodwill = 2,45,000 x 5/35 = Rs 35,000

Answer 12.
(i) Valuation of goodwill on the basis of super profit:
Average profit of four years = \(\frac { 10,00,000 }{ 4 }\) = 2,50,000
Adjusted average profit = Average profit – Partner’s remuneration = Rs 2,50,000 – Rs 1,20,000 = Rs 1,30,000
Normal profit = Capital Employed x Fair return on the capital
= 5,00,000 x \(\frac { 20 }{ 100 }\)= Rs 1,00,000
Super profit = Adjusted average profit – Normal profit
= 1,30,000 – Rs 1,00,000 = Rs 30,000
Goodwill = Super profit * No. of year purchase
= 30,000 x 3 = Rs 90,000
(ii) Valuation of goodwill by capitalisation method:

= Rs 6,50,000
Goodwill = Total capitalised value of Business – Net assets = Rs 6,50,000 – Rs 5,00,000 = Rs 1,50,000

Answer 13.
In the book of..
journal

Answer 14.

Answer 15.
Profit and Loss Appropriation A/c
Dr. for the year ended 31st March 2014 Cr.

Answer 16.
Revaluation A/c

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Answer 17.
Journal

Answer 18.
No flow. Reason: Sale of marketable securities at par represents movements between items of cash and cash equivalents.

Answer 19.
Outflow, reason: Redemption of debentures for cash could result in outflow of cash because it decreases cash.

Answer 20.

Answer 21.

Answer 22.

Answer 23.
Calculation of net cash flow from operating activities:

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