CBSE Sample Papers for Class 12 Accountancy Paper 7

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 7

CBSE Sample Papers for Class 12 Accountancy Paper 7

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 7 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.
A and B are partners in a firm having capital balance of 1,20,000 and Rs 80,000 respectively. They agree for interest on capital @ 5% PA. At the end of the year, they suffer a loss of Rs 20,000. What amount of interest will be given to be partners?

Question 2.
If a new partner is unable to contribute his share of goodwill in cash, under what circumstance will this amount be adjusted through his current account.

Question 3.
Anita and Aliya are partners in a firm. They admit Anandi as a new partner for 1/4th share. They have a general reserve of Rs 20,000 which they want to continue in the books. Pass journal entry on Anandi’s admission.

Question 4.
Kumar Handicraft Ltd. decided to reserve 10% Jobs in the company to provide employment to artisans from the rural areas. What value has been served by this decision?

Question 5.
Ravi Ltd. has a balance of Rs 10,000 in calls in arrears account and a similar balance of Rs 10,000 in calls in advance account. The accountant has ignored this while preparing the balance sheet for the fact that they both relate to share capital and have been set off against each other. Justify his approach.

Question 6.
A and B are partners in a firm sharing profits in the ratio 2:1. Mrs. A has given a loan of Rs 15,000 to the firm and the firm also took a loan of Rs 10,000 from B. The firm was dissolved and assets realised Rs 20,000. State the order of payment assuming that there are no creditors of the firm.

Question 7.
A Limited Company forfeited 3,000 equity share of Rs 100 each for non-payment of first call of Rs 20 per share and second and final call of Rs 25 per share. State :
(i) Can these shares be re-issued?
(ii) If ye, state the minimum amount at which these shares can be re-issued.
(iii) If the shares are re-issued at Rs 50 per share fully paid up, what will be the amount of capital reserve?

Question 8.
X, Y and Z are partners in a firm. Total capital employed is Rs 5,40,000 contributed by them in their profit sharing ratio. Y retires from the firm. On the day of retirement, the firm had a balance of Rs 90,000 in the general reserve account. Y took one of the unrecorded assets of the firm valued at Rs 54,000 in part payment and, balance amount was paid in cash.
Pass necessary entries on Y’s retirement.

Question 9.
Vipin Ltd. has an authorised capital of Rs 10,00,000 divided into 1,00,000 equity shares of Rs 10 each. The company decided to offer for subscription of 50,000 equity shares of Rs 10 each. Applications for 46,000 shares were received and allotment was made to all applicants. All calls were made and duly received except calls of Rs 2 per share on 400 shares. Show the share capital in the balance sheet of Vipin Ltd. as per schedule III of companies Act 2013. Also prepare notes to accounts for the same.

Question 10.
Anand and Arun decided to start a partnership to Manufacture gift items from recycle material. They contribute Rs 1,50,000 towards capital in 3:2 ratio. They employed Rajan who is specially abled but very creative for a salary of Rs 2,000 per month. They agreed to charge interest on drawings @ 12% P.a. Anand withdraws Rs 10,000 during the year. Arun withdrew Rs 2,000 at the end of every alternative month. The profits earned at the end of the first year were Rs 58,000.
(i) Show the distribution of profit earned by the firm at the end of the year.
(ii) Identify one value that the firm wants to communicate to the society.

Question 11.
Following is the balance sheet of Ravi, Navin and Sudhir as on 31st March 2016. Their profit sharing ratio is 2 : 2 : 1.

Navin died on 30th June 2015. The partnership deed provided for the following on the death of a partner:
(i) Goodwill of the firm was valued at 2 years’ purchase of the average profit of the last 5 years. The profit for the year ended 31st March 2014, 31st March 2013, 31st March 2012, 31st March 2011 were Rs 20,000, Rs 32,000, Rs 44,000 and Rs 88,000 respectively.
(ii) Navin’s share of profit or loss till the date of his death was to be calculated on the basis of profit or loss for the year ended 31st March 2015.
Prepare Navin’s capital account till the time of his death to be presented to his executors.

Question 12.
From the following information, calculate goodwill on the basis of capitalisation of super profit.
Average capital employed in the business Rs 5,00,000, Rate of expected return from similar business 12%, profit/loss for the past three years were : Rs 98,000, Rs 1,15,000 and Rs 1,44,000. Annual remuneration to partners Rs 11,000.

Question 13.
MV Ltd. issues 2,00,000,11% debentures of Rs 10 each at Rs 12 per debenture on 1st April 2014. The issue was fully subscribed. In terms of the issue of debentures interest was payable at the end of the financial year. TDS was deducted on Interest @ 10% Pass necessary Journal entries for the above transactions.

Question 14.
Rohan Ltd. on 30th June, 2013 took over the assets of Rs 10,00,000 and liabilities of Rs 1,00,000 from Suraj Enterprises at an agreed consideration of Rs 11,00,000. Rohan Limited issued 11% debentures of Rs 100 each at a premium of 10% in full satisfaction of purchase consideration. The debentures were redeemable on 31st March 2015. The company decided to create a DRR on 31st March 2014 and also decided to invest in 10% Government securities to meet the legal requirement. Give the journal entries for the issue and redemption of debentures in the books of Rohan Ltd. (Ignore TDS)

Question 15.
Punam and Puja were partners sharing profits and losses in the ratio of 3:2. Inspite of repeated losses they kept running the firm. The court ordered for the dissolution of their partnership firm on 31st march 2016. Puja took the responsibility of realisation. She was paid Rs 1,000 as commission for this service.
Their balance sheet as on that date stood as follows:

Following was agreed upon:
(i) Punam agreed to take over furniture at 90% of the book value.
(ii) Rs 5,000 of debtors proved bad.
(in) Puja took over Rs 30,000 worth of the stock at Rs 22,800. The remaining stock was sold at a loss of 10%.
(iv) Machinery was taken over by creditors in full settlement of their claim.
(v) The bank loan was paid along with interest of Rs 3,000.
(vi) Other liabilities were paid in full.
(vii) The expenses on realisation amounted to Rs 800.
Prepare realisation account, partners’ capital accounts and bank account to close the books of the firm.

Question 16.
Abha and Ritu were partners sharing profits and losses in the ratio of 5 :3. Their balance sheet as at 31st March 2015 was as under:

On 1st April 2015, they admitted Sonal into partnership firm for 1 / 4th share which she acquired
from Abha and Ritu in the ratio of 2 : 1 respectively. Other adjustments were as follows:
(i) The goodwill of the firm is valued at Rs 96,000 and Sonal was unable to contribute her share of goodwill in cash.
(ii) One customer who owed the firm Rs 2,000 became insolvent and nothing could be realised from him.
(in) Create a provision of 5% for doubtful debts.
(iv) 50% of the investments were taken over by the old partners in their profit sharing ratio. Remaining investments were valued at Rs 35,000.
(v) Claim on workmen compensation was established at Rs 16,000.
(vi) One month salary of Rs 16,000 was outstanding.
(vii) Sonal is to contribute Rs 1,20,000 as Capital.
(viii) Capital accounts of the partners are to be re-adjusted on the basis of their profit sharing arrangement and any excess or deficiency is to be transferred to their current account.
Prepare revaluation account, partners’ capital accounts and the balance sheet of the newly constituted firm.
OR
Megha, Anita and Richa are partners sharing profits and losses in the ratio of 5 : 3 : 2. Their
balance sheet as on 31st March 2016 stood as under:

On the above date, Anita retired and the terms of retirement were:
(i) Anita sells her share of goodwill to Megha for Rs 4,000 and to Richa Rs 2,000.
(iii) Stock to be appreciated by 20%.
(iii) Provision for doubtful debts to be increased by Rs 525.
(iv) There is a liability for workmen’s compensation for Rs 1,500 and it was to be provided for.
(v) Investments were sold at a loss of 10%.
(vi) Provision for a bill under discount of Rs 2,000 was to be made.
(vii) The continuing partners agreed to pay Rs 20,000 in cash on retirement to Anita to be contributed in their new profit sharing ratio. The balance to be treated as loan.
(viii) The total capital of the new firm is decided to be Rs 1,50,000. Necessary adjustments to be made by opening current accounts.
Prepare revaluation accounts, partners’ capital accounts and balance sheet of the new firm after Anita’s retirement.

Question 17.
Fill in the missing information in the Journal entries given below:


Fill in the missing information in the journal entries given below:

PART -B
‘Analysis of Financial Statements’

Question 18.
Calculate the result of cash flow and state the nature of activity involved in the following transactions :
Sold machinery of original cost Rs 2,20,000 with an accumulated depreciation of Rs 90,000 for Rs 70,000.

Question 19.
How does the preparation of cash flow statement help in efficient cash management?

Question 20.
(a) State any two advantages of analysis of financial statements.
(b) What is a contingent liability? Give two examples of contingent liability.

Question 21.
The following information of Y Ltd. has been provided.
Gross profit ratio – 15%
Inventory velocity – 2 times
Trade receivables velocity – 3 months
Gross profit – Rs 60,000
Closing inventory is equal to opening inventory Determine:
(i) Revenue from operations
(ii) Closing inventory
(iii) Trade receivables

Question 22.
Prepare common size balance sheet from the following information:

Question 23.
Prepare a cash flow statement from the following balance sheet of R Ltd.

Additional information:
(a) Depreciation of Rs 1,60,000 was provided on tangible assets during the year.
(b) A machine costing Rs 40,000 (accumulated depreciation provided thereon Rs 24,000) was sold for Rs 8,000 during the year.

Answers

Answer 1.
No interest on capital will be given as the firm has incurred a loss and interest is payable only out of the profits.

Answer 2.
The amount of goodwill will be adjusted to current account only:
(i) When old partners’ capital is adjusted on the basis of new partners share of capital contributed or.
(ii) When the new partner contributes his share of capital on the basis of old partners capital

Answer 3.
Anandi’s capital A/c Dr. 5,000
To Anita’s capital A/c 2,500
To Aliya’s capital A/c 2500
(Being general reserve adjusted)

Answer 4.
The company served the value of social responsibility towards providing employment opportunity for skilled craftsmen living in rural areas.

Answer 5.
The approach of the accountant is incorrect as calls in arrears are shown as a deduction from . the share capital and calls in advance is shown as a current liability.

Answer 6.
At the time of dissolution Mrs. A’s loan of Rs 15,000 will be paid first, remaining Rs 5,000 will be paid against B’s loan.

Answer 7.
Amount transferred to capital Reserve – Rs 15,000.

Answer 8.
Amount paid to Y in cash Rs 1,74,000.

Answer 9.
Share capital Rs 4,59,200.

Answer 10.
(i) Profit transferred to Anand’s capital A/c – Rs 21,120 and Rs 14,080 to Arun’s capital A/c
(ii) Values:
(1) Being concerned about the environment and fulfilling social responsibility.
(2) Being kind and showing empathy towards specially abled person.

Answer 11.
Profit and loss suspense A/c – Rs 6,400, amount transferred to navin’s executors A/c – Rs 1,12,000.

Answer 12.
Amount of goodwill Rs 4,00,000. .

Answer 13.
Interest on debentures Rs 2,20,000, TDS Rs 22,000.

Answer 14.
Amount transfer to DRR Rs 2,50,000.

Answer 15.
Loss of realisation to Punam’s capital A/c – Rs 12,120, Puja’s capital A/c – Rs 8,080, Total of Bank account Rs 97,800.

Answer 16.
Loss on revaluation – Rs 17,000, balance of capital accounts: Abha – Rs 2,20,000, Ritu – Rs 1,40,000, Sonal – Rs 1,20,000. Total of new balance sheet – Rs 7,16,000.
OR
Loss on revaluation – Rs 3,425, Anita’s loan A/c – Rs 32,573, capital balances Megha – Rs 1,05,000, Richa – Rs 45,000 Total of balance sheet of – Rs 2,16,073.

Answer 17.
Amount transferred to capital reserve – Rs 5,750
OR
(a) Amount transferred to capital Reserve – Nil
(b) Amount transferred to capital reserve – Rs 5,250

Answer 18.
Investing activity : inflow of cash – Rs 70,000

Answer 19.
Cash flow statement is prepared to manage company’s resources in such a way that adequate cash is available to meet the liabilities so cash flow statement helps in efficient cash management.

Answer 20.
(a) Advantages of analysis of financial statements (Any two):
(i) Assessing the managerial efficiency
(ii) Forecasting and preparing budget
(iii) Inter firm and intra firm comparison
(b) Contingent liability is a liability which may become payable depending on a happening in future. For example:
(i) Claims against company which is not accepted by the company.
(ii) Liability for amount uncalled on partly paid shares.

Answer 21.
Revenue from operations – Rs 4,00,000 Inventory – Rs 1,70,000
Trade receivables – Rs 1,00,000

Answer 22.
% charge of shareholders funds 50%, current liabilities 200%, current assets 50%.

Answer 23.
Net cash used in operating activities – Rs (2,59,200)
Net cash used in investing activities – Rs (2,48,000)
Net cash inflow from financing activities – Rs 6,03,200

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