CBSE Sample Papers for Class 12 Accountancy Paper 4

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 4

CBSE Sample Papers for Class 12 Accountancy Paper 4

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 4 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
Partnership Firms and Company Accounts

Question 1.
Which account is debited when liabilities already transferred to realisation account, are paid in cash?

Question 2.
What is meant by issue of shares at Par?

Question 3.
Why should a firm have a partnership deed?

Question 4.
When an asset is taken over by a partner, why is his capital account debited?

Question 5.
Can ‘Securities Premium’ be used as working capital. Give reasons in support of your answer.

Question 6.
What is the nature of Interest on Debentures?

Question 7.
A partnership firm earned net profit during the last three years as follows:

The capital employed in the firm throughout the above mentioned period has been Rs 4,00,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital. The remuneration of all the partners during this period is estimated to be Rs 1,00,000 per annum. Calculate the value of goodwill on the basis of two years’ purchase of super profit earned on average basis during the above mentioned three years.

Question 8.
Pass the necessary journal entries for the issue and redemption of debentures in the following cases:
(i) 10,000,10% debentures of Rs 100 each issued at 20% premium, repayable at par.
(ii) 20,000, 9% debentures of Rs 200 each issued at 20% premium, repayable at 30% premium.

Question 9.
A Ltd. had issued 50,000,8% debentures of Rs 200 each redeemable on 31st March, 2015. It was decided to invest 15% of the face value of debentures to be redeemed towards redemption investment. The board of directors transferred the required amount to debenture redemption reserve on March 31,2015. Debentures were redeemed on due date. Record necessary entries for redemption of debentures.

Question 10.
Sundram Ltd. purchased furniture for Rs 3,00,000 from Ravindram Ltd. Rs 1,00,000 were paid by drawing a promissory note in favour of Ravindram Ltd. The balance was paid by issue of equity shares of Rs 10 each at a premium of 25%. Pass necessary journal entries in the books of sundram Ltd.

Question 11.
A and B were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted C as a new partner. A surrendered 1/3rd of his share in favour of C and B surrendered 1/4th of his share in favour of C. C brought Rs 1,50,000 for his capital and Rs 58,000 for his share of goodwill. Calculate new profit sharing ratio of A, B and C, sacrificing ratio of A and B and pass necessary journal entries for the above transaction on C’s admission.

Question 12.
(a) X, Y and Z are partners sharing profits equally. They decided that in future, Z will get 1/7 share in profits. On the day of change, firm’s goodwill is valued at Rs 21,000. Give journal entries arising on account of change in profit sharing ratio.
(b) Partners decided to set aside each year Rs 50,000 or 5% of their profit, whichever is more, for subsidizing hostel fees of specially abled students of Delhi University. Identify two values involved in taking such a decision.

Question 13.
Meena Ltd. issues 60,000 shares of Rs 10 each at a Premium of Rs 2 per share payable at Rs 3 on application, Rs 5 (including premium) on allotment and the balance on 1st and final call. Application were received for 1,02,000 shares. The director resolved to allot as follows:
(A) Applicants of 60,000 shares 30,000 shares
(B) Applicants of 40,000 shares 30,000 shares
(C) Applicants of 2,000 shares Nil
Nikhil, who had applied for 1,000 shares in category A and Vishu who was allotted 600 shares in category B failed to pay the allotment money. Calculate the amount received on allotment.
Also find the value involved in this questions.

Question 14.
A, B and C were partners. Their capitals were A — Rs 30,000, B — Rs 20,000 and C — Rs 10,000 respectively. According to the partnership deed they were entitled to interest on capital at 5% Pa in addition, B was also entitled to draw a salary of Rs 500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capitals but before charging the salary payable to B. The net profit for the year were Rs 30,000 distributed in the ratio of their capitals without providing for any of the above adjustments. The profits were to be shared in the ratio of 5 : 3 : 2. Pass the necessary adjustment entry showing the working clearly.

Question 15.
A, B and C are partners in a trading firm. The firm has a fixed capital of Rs 60,000 held equally by all the partners. Under the partnership deed, the partners were entitled to:
(a) A and B to a salary of Rs 1,800 and Rs 1,600 per month respectively.
(b) In the event of the death of a partner, goodwill was to be valued at 2 years’ purchase of the average profits of the last 3 years.
(c) Profits up to the date of the death based on the profits of the previous year.
(d) Partners were to be charged interest on drawings at 5% P.a and allowed interest on capitals at 6% P.a. B died on January 1, 2011. His drawings to the date of death were Rs 2,000 and the interest thereon was Rs 60. The profits for the three years ending March 31st 2008,2009 and 2010 were : Rs 21,200, Rs 3,200 (Dr.) and Rs 9,000 respectively.
Prepare B’s capital account to calculate the amount to be paid to his executors.

Question 16.
Som Ltd. invited applications for issuing 60,000 equity shares of Rs 100 each at a premium of Rs 50 per share. The amount was payable as follows:
On application – Rs 75 per share (including premium Rs 25)
On allotment – Rs 50 per share (including premium Rs 25)
On first and final call — the balance amount.
Applications for Rs 55,000 shares were received. Allotment was made to all the applicants and the company received all money due on allotment except K who was allotted 500 shares and his shares were immediately forfeited. Afterwards, the first and final call was made. L to whom 300 shares were allotted failed to pay the first and final call. His shares were also forfeited. 300 shares of K and 200 shares of L were re-issued for Rs 75,000 fully paid up.
Pass necessary journal entries in the books of Som Ltd. for the above transactions.
OR
Shiva Ltd. invited applications for issuing 2,00,000 equity shares of Rs 100 each at a premium of Rs 60 per share. The amount was payable as follows:
On application – Rs 30 per share (including premium Rs 10)
On allotment – Rs 70 per share (including premium Rs 50)
On first and final call – the balance amount.
Applications for 1,90,000 shares were received. Shares were allotted to all the applicants and the company received all money due on allotment except Jain who had been allotted 1,000 shares, and his shares were immediately forfeited. Afterwards, first and final call was made. Gupta did not pay the first and final call on his 2,000 allotted shares. His shares were also forfeited. 50% of the forfeited shares of both Jain and Gupta were reissued for Rs 90 per share fully paid up.
Pass necessary journal entries in the books of Shiva Ltd. for the above transactions.

Question 17.
Following is the balance sheet of x and y who share profits and losses in the ratio of 4:1, as at 31st march 2012:

The firm was dissolved on the above date and the following arrangements were decided upon:
(a) X agreed to pay off his brothers’ loan.
(b) Debtors of Rs 5,000 proved bad.
(c) Other assets realised — Investments 20% Less, and Goodwill at 60%.
(d) On of the creditors for Rs 5,000 was paid only Rs 3,000.
(e) Buildings were auctioned for Rs 30,000 and the auctioner’s commission amounted to Rs 1,000.
(f) Y took over part of stock at Rs 4,000 (being 20% less than the book value). Balance stock realised 50%.
(g) Realisation expenses amounted to Rs 2,000.
Prepare:
(i) Realisation A/c, (ii) Partner’s capital accounts and (iii) Bank account.
OR
Rajat and Ravi are partners in a firm sharing profits and losses in the ratio of 7:3. Their balance sheet as at 31st March 2011 is as follows:

On 1st April 2011, they admit Rohan on the following terms:
(i) Goodwill is valued at Rs 40,000 and Rohan is to bring in the necessary amount in cash as premium for goodwill and Rs 60,000 as capital for 1/4 share in profits.
(ii) Stock is to be reduced by 40% and furniture is to be reduced to 40%.
(iii) Capitals of the partners shall be proportionate to their profit sharing ratio taking Rohan’s capital as base adjustments of capitals to be made by cash.
You are required to prepare revaluation account, Partners’ capital account and cash account.

PART -B
‘Analysis of Financial Statements’

Question 18.
State how price level changes are ignored in financial statements analysis.

Question 19.
What is meant by operating activities?

Question 20.
List any four items which are included under the head fixed assets of the company’s balance sheet as per the schedule III to the companies act 2013.

Question 21.
With the help of the following information prepare a comparative Balance Sheet of Shyam Ltd.

Question 22.
Cash revenue from operations Rs 1,00,000, credit. Revenue from operations Rs 3,00,000. Gross profit 25% on revenue from operations, opening inventory was 1/3rd of the value of closing inventory, closing inventory was 30% of cost of revenue from operations. Calculate inventory turnover ratio.

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

Answers

Answer 1.
Realisation account.

Answer 2.
Shares are said to be issued at par when an applicant has to pay sum equal to face value of share.

Answer 3.
The law does not expressly require that the partnership agreement be in writing, it is desirable to have to in writing so that it is referred to in case of any dispute with regard to the termed partnership.

Answer 4.
Because assets are the property of business not of partners, when a partner takes over it, he is liable to pay the amount of it therefore, his capital account is debited.

Answer 5.
No, securities premium can not be used as working capital. Because, it can be used only for those item which are given in section 78(2).

Answer 6.
It is a charge against profits.

Answer 7.
Goodwill Rs 1,20,000.

Answer 8.
(i) Premium on issue of Debentures Rs. 2,00,000.
(ii) Loss on Redemption of Debentures Rs. 2,00,000.

Answer 9.
Debenture redemption investment made for Rs 15,00,000 on 30th April, 2014, debenture redemption reserve created for Rs 25,00,000 on March 31,2015 and transferred to general reserve account.

Answer 10.
No. of shares issued – 16,000.

Answer 11.
Sacrificing ratio = 20:9, Premium to A – Rs 40,000 and B – Rs 18,000.

Answer 12.
(a) Debit X and Y by Rs 2,000 each and credit Z by Rs 4,000.
New ratio = 3 : 3 : 1, X and Y gain \(\frac { 2 }{ 21 }\) each and Z sacrifices \(\frac { 4 }{ 21 }\)
(b) Two values:
(i) Sensitivity towards specially abled individuals.
(ii) Help them in pursuing higher studies.

Answer 13.
Amount received at the time of allotment – Rs 1,76,600. Values are:
(i) Priority to small investors.
(ii) Equality while making prorata allotment.

Answer 14.
A’s capital A/c Dr. 3,675
To B’s capital A/c 2,875
To C’s capital A/c 780

Answer 15.
Amount transferred to executors account – Rs 41,490.

Answer 16.
Amount transferred to capital reserve – Rs 30,000.
OR
Amount transferred to capital reserve – Rs 35,000.

Answer 17.
Loss on realisation – Rs 9,000, Total of bank account Rs 92,000.
OR
Revaluation loss Rs 38,000, Balance of capital accounts, Rajat – Rs 1,26,000, Ravi – Rs 54,000, Rohan – Rs 60,000.

Answer 18.
Financial statements prepared on historical basis ignore the price level changes since the financial statements are prepared on historical cost basis and not on current cost basis.

Answer 19.
Operating activities are the principal revenue producing activities of the enterprise and other activities that are not investing or financing activities.

Answer 20.
(i) Tangible assects,
(ii) Intangible assets,
(iii) Capital work in progress,
(iv) Intangible assets under development.

Answer 21.
% of share capital 33.33%, % of long term borrowings 20%, % of fixed assets 16.67%.

Answer 22.
Inventory turnover ratio = 5 times.

Answer 23.
Cash flow from operating activities – Rs 7,080.

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