Solved Paper 2013

ACCOUNTANCY
Time : 3 Hours Class-XII Max. Marks : 80

General Instructions :
Read the following instructions very carefully and strictly follow them :
(i) This question paper contains three parts A and B.
(ii) All parts of the questions should be attempted at one place.

Delhi Set Code : 67/1/1

PART A
(Accounting for Partnership Firms and Companies)

1. When the partner capitals are fixed, where the drawings made by a partner will be recorded ? 1
Ans. Drawings made by a partner will be recorded in partner’s current account.
2. State the ratio in which the partners share profits or losses on revaluation of assets and liabilities, when there
is a change in profit sharing ratio amongst existing partners? 1
Ans. In case of change in profit sharing ratio, profit or losses on revaluation of assets & liabilities are shared in old profit
sharing ratio / existing profit sharing ratio.
3. Name the account which is opened to credit the share of profit of the deceased partner, till the time of his death
to his Capital account. 1
Ans. P&L suspense A/c.
4. Give the journal entry to distribute 'Workman Compensation Reserve' of ` 60,000 at the time of retirement of
Sajjan, when there is no claim against it. The firm has three partners Rajat, Sajjan and Kavita.  1
Ans.
Dt. Particulars L.F. Dr. (`) Cr. (`)
Workmen Compensation Reserve A/c Dr. 60,000
To Rajat’s Capital A/c 20,000
To Sajjan’s Capital A/c 20,000
To Kavita’s Capital A/c 20,000
(Being Workmen Compensation Reserve transferred to partners’ capital
account in equal ratio)

5. What is meant by 'Securities Premium' ? 1

Ans. When shares/debentures are issued at a price higher than the face value then the excess amount received is
known as Securities premium.
* 6. What rate of interest the company pays on calls- in advance if, it has not prepared its own Articles of Association?
 1
7. What is meant by issue of debentures as a collateral security? 1
Ans. When a company takes loan & debentures are issued as secondary security in addition to principal security, it is
known as Debentures issued as collateral security.

* Out of Syllabus
SOLVED PAPER - 2013 (ACCOUNTANCY)

8. Mona, Nisha and Priyanka are partners in a firm. They contributed ` 50,000 each as capital three years ago.
At the time Priyanka agreed to look after the business as Mona and Nisha were busy. The profits for the past
three years were ` 15,000, ` 25,000 and ` 50,000 respectively. While going through the books of accounts Mona
noticed that the profit had been distributed in the ratio of 1 : 1 : 2. When she enquired from Priyanka about this,
Priyanka answered that since she looked after the business she should get more profit. Mona disagreed and it
was decided to distribute profit equally retrospectively for the three years.
(a) You are required to make necessary corrections in the books of accounts of Mona, Nisha and Priyanka by
passing an adjustment entry.
* (b) Identify the value which was not practiced by Priyanka while distributing profits. 2+1=3
Ans.
Date Particulars L.F. Dr. (`) Cr. (`)
Priyanka’s Capital A/c Dr. 15,000
To Mona’s Capital A/c 7,500
To Nisha’s Capital A/c 7,500
(Being the Capital accounts of Partners’ adjusted)

Working notes:
Profits for last three years = 15,000 + 25,000+50,000 = 90,000
Mona Nisha Priyanka
Profit already distributed(Dr.) 22,000 22,500 45,000
To be distributed as equally(Cr.) 30,000 30,000 30,000

9. Pass the necessary journal entries for issue of 1,000, 7% Debentures of ` 100 each in the following cases:
(a) Issued at 5% premium redeemable at a premium of 10%
(b) Issued at a discount of 5% redeemable at par. 3
Ans.
Amount Dr. Amount Cr.
Date Particulars L.F.
(`) (`)
(a) Bank A/c Dr. 1,05,000
To 7% Debenture Application & Allotment A/c 1,05,000
(Being application money received On 1000, 7% debentures at premium
of 5% )
7% Debenture Application & Allotment A/c Dr. 1,05,000
Loss on issue of Debenture A/c Dr. 10,000
To Raka’s Capital A/c 1,00,000
To Seema’s Capital A/c 5,000
To Mahesh’s Capital A/c 10,000
(Being compensation against fund adjusted)
(b) Bank A/c Dr. 95,000
To 7% Debenture Application & Allotment A/c 95,000
(Being application money received On 1000 debentures at 5% discount.)

7% Debentures Application & Allotment A/c Dr. 95,000

Discount on issue of debentures A/c Dr. 5,000
To 7% Debentures A/c 1,00,000
(Being 1,000 debentures issued at discount, redeemable at par)

* 10. Taneja Constructions Ltd. has an outstanding balance of ` 5,00,000, 7% debentures of ` 100 each redeemable at a
premium of 10%. According to the terms of redemption, the company redeemed 30% of the above debentures by
converting them into shares of ` 50 each at a premium of 20%. Record the entries for redemption of debentures
in the books of Taneja Constructions Ltd.  3
th
11. Abhay and Beena are partners in a firm. They admit Chetan as a partner with 1/4 share in the profits of the
firm. Chetan brings ` 2,00,000 as his share of capital. The value of the total assets of the firm is ` 5,40,000 and

* Out of Syllabus
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

outside liabilities are valued at ` 1,00,000 on that date. Give the necessary entry to record goodwill at the time
of Chetan's admission. Also show your working notes. 4
Ans.
Date Particulars L.F. Dr. (`) Cr. (`)
Chetan’s Capital A/c / Chetan’s Current A/c Dr. 40,000
To Abhay’s Capital A/c 20,000
To Beena’s Capital A/c 20,000
(Being amount of goodwill transferred to old partners capital account
in sacrificing ratio)

Working notes:
1. In the absence of any agreement Profits are divided equally.
2. Calculation of Hidden Goodwill:
1
Chetan’s Capital for Share = ` 2,00,000
4

(a) Total Capital of New Firm = ` 2,00,000 × 4 = ` 8,00,000

Net worth = Sundry Assets – Outside Liabilities

= ` 5,40,000 – ` 1,00,000

= ` 4,40,000

Actual Capital = Net Worth + Capital of new partner

= 4,40,000 + 2,00,000

= 6,40,000

Goodwill of the Firm = ` 8,00,000 – ` 6,40,000

= ` 1,60,000.
1

Chetan’s Share = 1,60,000 × = ` 40,000 
4
12. Naresh, David and Aslam are partners sharing profits in the ratio of 5 : 3 : 7. On April 1st, 2012, Naresh gave a
notice to retire from the firm. David and Aslam decided to share future profits in the ratio of 2 : 3. The adjusted
capital accounts of David and Aslam show a balance of ` 33,000 and ` 70,500 respectively. The total amount to
be paid to Naresh is ` 90,500. This amount is to be paid by David and Aslam in such a way that their capitals
become proportionate to their new profit sharing ratio. Pass necessary journal entries for the above transactions
in the books of the firm. Show your working clearly. 4
Ans.
Amount Dr. Amount Cr.
Dt. Particulars L.F.
(`) (`)
(i) Cash A/c Dr. 90,500
To David’s Capital A/c 44,600
To Aslam’s Capital A/c 45,900
(Being cash brought in by David & Aslam to adjust Capital in new profit
Sharing Ratio)
Naresh’s Capital A/c Dr. 90,500
To Cash A/c / Bank A/c 90,500
(Being amount paid to Naresh.)

Working Note:

(i) David’s Capital = ` 33,000

Aslam’s Capital = ` 70,500

Naresh to be paid = ` 90,500

Total Capital of new firm = ` 1,94,000
2

David’s New Capital = ` 1,94,000 ×
5

= ` 77,600
3

Aslam’s New Capital = ` 1,94,000 ×
5

= ` 1,16,400
SOLVED PAPER - 2013 (ACCOUNTANCY)

(ii) Adjustment of capital
David(`) Aslam(`)
Old Capital 33,000 70,500
New Capital 77,600 1,16,400
Cash to be brought in 44,600 45,900

David should bring ` 44,600

Aslam should bring ` 45,900
13. Madhav Ltd. issued fully paid equity shares of ` 80 each at a discount of ` 5 per share for the purchase of a
running business from Gupta Bros. for a sum of ` 15,00,000.
The assets and liabilities consisted of the following:
Plant ` 5,00,000; Trucks ` 7,00,000; Stock ` 3,00,000; Machinery ` 6,00,000 and Sundry Creditors ` 5,00,000.
You are required to pass necessary journal entries for the above transactions in the books of Madhav Ltd. 4
Ans.
Amount Dr. Amount Cr.
S.no. Particulars L.F.
(`) (`)
1. Plant A/c Dr. 5,00,000
Trucks A/c Dr. 7,00,000
Stock A/c Dr. 3,00,000
Machinery A/c Dr. 6,00,000
To Sundry Creditors A/c 5,00,000
To Gupta Bros. A/c 15,00,000
To Capital Reserve A/c 1,00,000
(Being business purchased from Gupta Bros.)
2. Gupta Bros. A/c Dr. 15,00,000
Discount on issue of shares A/c Dr. 1,00,000
To Equity Share capital A/c 16,00,000
(Being 20,000 shares issued in purchase consideration)

Working Notes:-
15, 00 , 000
No. of shares = = 20,000 shares.
75

14. The authorized capital of Suhani Ltd. is ` 45,00,000 divided into 30,000 shares of ` 150 each. Out of these
company issued 15,000 shares of ` 150 each at a premium of ` 10 per share. The amount was payable as follows:

` 50 per share on application, ` 40 per share on allotment (including premium), ` 30 per share on first call and
balance on final call. Public applied for 14,000 shares. All the money was duly received.
Prepare an extract of Balance Sheet of Suhani Ltd. as per Revised Schedule of the Companies Act 2013 disclosing
the above information. Also prepare 'notes to accounts' for the same.  4
Ans. Suhani Ltd.
Balance Sheet as at (an extract)
Amount
Particulars Note No.
(`)
1. Equity & liabilities
(a) Share holders’ funds:
(i) Share Capital 1 21,00,000
(ii) Reserve & surplus 2 1,40,000
2. Assets
Current Assets
Cash & cash equivalents 3 22,40,000
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

Notes to Account:
1. Share Capital
Authorized Capital
30,000 shares @ ` 150 each 45,00,000
Issued Capital
15,000 shares @ ` 150 each 22,50,000
Subscribed Capital
Subscribed & fully paid 14,000 shares @ ` 150 each 21,00,000
2. Reserves & Surplus
Securities premium (reserve) 1,40,000
3. Cash & Cash equivalents
Cash at bank 22,40,000

15. Ali, Bimal and Deepak are partners in a firm. On 1st April, 2011 their capital accounts stood at ` 4,00,000,
` 3,00,000 and ` 2,00,000 respectively. They shared profits and losses in the proportion of 5 : 3 : 2. Partners are
entitles to interest on capital @ 10% per annum and salary to Bimal and Deepak @ ` 2,000 per month and ` 3,000
per quarter respectively as per the provisions of the partnership deed.
Bimal's share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of
` 50,000 p.a. Any deficiency arising on that accounts shall be met by Deepak. The profits of the firm for the year
ended 31st March, 2012 amounted to ` 2,00,000. Prepare Profit & Loss Appropriation Account for the year ended
on 31st March, 2012.  6
Ans. Dr. Profit & Loss Appropriation Account Cr.
Particulars Amount (`) Particulars Amount (`)
To Interest on Capital By Profit & Loss A/c 2,00,000
Ali 40,000
Bimal 30,000
Deepak 20,000 90,000
To Salary
Bimal 24,000
Deepak 12,000 36,000
To Profit transferred to capital A/c
Ali 37,000
Bimal 22,000
Add: Deficiency 3,800
26,000
Deepak 14,800
Less: Deficiency 3,800
11,000 74,000
2,00,000 2,00,000
Calculation:
(a) Deficiency = Guaranteed amount – (amount received)
= ` 50,000 – (` 24,000 + ` 22,200)
= ` 50,000 – ` 46,200
= ` 3,800. 
16. The Balance Sheet of Sudha, Rahim and Kartik who were sharing profit in the ratio of 3:3:4 as on 31st March,
2012 was as follows;
Liabilities Amount (`) Assets Amount (`)
General Reserve 10,000 Cash 16,000
Bills Payable 5,000 Stock 44,000
Loan 12,000 Investments 47,000
Capitals : Sudha : 60,000 Land & Building 60,000
Rahim : 50,000 Sudha's loan 10,000
Kartik : 40,000 1,50,000
1,77,000 1,77,000
SOLVED PAPER - 2013 (ACCOUNTANCY)

Sudha died on June 30th 2012. The partnership deed provided for the following on the death of a partner :
(a) Goodwill of the firm be valued at two years purchase of average profits for the last three years.
(b) Sudha's share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for
the year ended 31st March, 2012 amounted to ` 4,00,000 and that from 1st April to 30th June 2012 to ` 1,50,000.
The profit for year ended 31st March, 2012 was ` 1,00,000.
(c) Interest on capital was to provided @ 6% p.a..
(d) The average profits of the last three years were ` 42,000.
(e) According to Sudha's will, the executors should donate her share to "Matri Chaya-an orphanage for girls".
Prepare Sudha's Capital Account to be rendered to her executor. * Also identify the value being highlighted in
the question. 6
Ans. Dr. Sudha’s Capital A/c Cr.
Particulars Amount (`) Particulars Amount (`)
To Sudha’s loan A/c 10,000 By Balance b/d 60,000
To Sudha’s executors A/c 90,350 By Rahim’s capital A/c 10,800
By Kartik’s capital A/c 14,400
By P&L suspense A/c 11,250
By Interest on capital 900
By General Reserve A/c 3,000
1,00,350 1,00,350
Working Notes:
(a) Average profit = ` 42,000
Goodwill = 2 × 42,000 = ` 84,000
3
Sudha’s Share of Goodwill = × 84,000 = ` 25,200
10
(b) If sales is ` 4,00,000 profit = ` 1,00,000
1, 00 , 000 1, 00 , 000
If sales is ` 1 profit = Profit = × 1,50,000 = ` 37,500
4 , 00 , 000 4 , 00 , 000
3
Sudha’s Share = 37,500 × = ` 11,250
10
6 3
(c) Interest on capital = 60,000 × ×
100 12
= ` 900 
17. Moneyplus Company issued for pulic subscription 75,000 shares of the value of ` 10 each at a discount of 10%
payable as follows:
` 2 per share on application, ` 3 per share on allotment and ` 4 per share on call.
The company received applications for 1,50,000 shares. The allotment was done as under:
(a) Applicants of 15,000 shares were allotted 5,000 shares.
(b) Applicants of 70,000 shares were allotted 40,000 shares.
(c) Remaining applicants were allotted 30,000 shares.
Money in excess to allotment was returned. Hari, a shareholder who had applied for 3,500 shares out of group B
failed to pay allotment and call money. Rohan, a shareholder who was allotted 3,000 shares paid the call money
along with the allotment. Rohan also belonged to group B.
Pass necessary journal entries to record the above transactions in the books of the company. Show your working
notes clearly. 8
OR
Record the journal entries for forfeiture and reissue of shares in the following cases:
(a) X Ltd. forfeited 20 shares of ` 10 each, ` 7 called up on which the shareholder had paid application and
allotment money of ` 5 per share. Out of these, 15 shares were re-issued to Naresh as ` 7 per share paid up
for ` 8 per share.
(b) Y Ltd. forfeited 90 shares of ` 10 each, ` 8 called up issued at a premium of ` 2 per share to 'R' for non-
payment of allotment money of ` 5 per share (including premium). Out of these, 80 shares were re-issued
to Sanjay as ` 8 called up for ` 10 per share.
(c) Z Ltd. forfeited 300 shares of ` 10 each issued at a discount of ` 1 per share for non-payment of first and final
call of ` 3 per share. Out of these 200 shares were reissued at ` 3 per share fully paid up.
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

Ans. Journal
Amount Dr. Amount Cr.
Dt. Particulars L.F.
(`) (`)
1. Bank A/c Dr. 3,00,000
To Share Application A/c 3,00,000
(Being application money received)
2. Share Application A/c Dr. 3,00,000
To Share Capital A/c 1,50,000
To Share Allotment A/c 1,45,000
To Bank A/c 5,000
(Being excess money adjusted & refunded)
3. Share Allotment A/c Dr. 2,25,000
Discount on issue of shares A/c Dr. 75,000
To Share Capital A/c 3,00,000
(Being the allotment money due)
4. Bank A/c Dr. 89,000
Call in Arrears A/c Dr. 3,000
To Share Allotment A/c 80,000
To Calls in Advance A/c 12,000
(Being Allotment money received)

OR
Bank A/c Dr. 89,000
To Share Allotment A/c 77,000
To Share First & Final Call A/c/Calls in Advance 12,000
(Being Allotment money received)

5. Share First & Final Call A/c Dr. 3,00,000

To Share Capital A/c 3,00,000
(Being call money due)

6 Bank A/c Dr. 2,80,000

Calls in Advance A/c Dr. 12,000
Calls in Arrears A/c Dr. 8,000
To Share First & Final Call A/c 3,00,000
(Being call money received)

Working Notes: Hari applied for 3,500 shares from Group B

1

He has been allotted = × 3500 = 2000 shares
4

Application Application
Excess Allot due Refund
Money Received Transferred to Capital

Group A 15,000 × 2 = 30,000 5,000 × 2 = 10,000 20,000 15,000 5,000

Group B 70,000 × 2 = 1,40,000 40,000 × 2 = 80,000 60,000 1,20,000 Nil

Group C 65,000 × 2 = 1,30,000 30,000 × 2 = 60,000 70,000 90,000 Nil

SOLVED PAPER - 2013 (ACCOUNTANCY)

(a) Hari sent for application = 7,000
Transferred to Capital 4,000
Excess 3,000
Allotment due
2,000 × 3 = 6,000

Adjusted 3,000

Calls in Arrears On allotment ` 3,000

Calls in Arrears On First Call of Hari 2000 × 4 = ` 8,000

(b) Calls in Advance of Rohan = 3,000 × 4 = ` 12,000 
marks
OR
Journal
Amount Dr. Amount Cr.
S.no. Particulars L.F.
(`) (`)
(a) 1. Share Capital A/c Dr. 140
To Forfeited Shares A/c 100
To Unpaid Call A/c / Calls in arrears A/c 40
(Being 20 share forfeited for nonpayment of call money)
2. Bank A/c Dr. 120
To Share Capital A/c 105
To Securities Premium Reserve A/c 15
(Being excess money adjusted & refunded)
3. Forfeited Shares A/c Dr. 75
To Capital Reserve A/c 75
(Being amount transferred to Capital Reserve)
(b) 1. Share Capital A/c Dr. 720
Securities Premium Reserve A/c Dr. 180
To Forfeited Shares A/c 450
To Share Allotment A/c / Calls in Arrears A/c 450
(Being 90share forfeited for nonpayment of allotment money)

2. Bank A/c Dr. 800

To Share Capital A/c 640
To Securities Premium Reserve A/c 160
(Being shares reissued)

3. Forfeited Shares A/c Dr. 400

To Capital Reserve A/c 400
(Being balance amount in Forfeited Shares A/c transferred to Capital
Reserve)
(c) 1. Share Capital A/c Dr. 3,000
To Discount on issue of shares A/c 300
To Forfeited Shares A/c 1,800
To Share First & Final Call A/c / Calls in Arrears A/c 900
(Being 300 shares forfeited )

2 Bank A/c Dr. 600

Discount on issue of shares A/c Dr. 200
Share forfeited A/c Dr. 1,200
To Share First & Final Call A/c 2,000
(Being call money received)
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

18. Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1. Since both of them
are specially abled, sometimes they find it difficult to run the business on their own. Gauri, a common friend
decided to help them. Therefore, they admitted her into partnership for a 1/3rd share. She brought her share of
goodwill in cash and proportionate capital. At the time of Gauri's admission, the Balance Sheet of Sahaj and
Nimish was as under:
Liabilities Amount (`) Assets Amount (`)
Capital Accounts : Machinery 1,20,000
Sahaj 1,20,000 Furniture 80,000
Nimish 80,0000 2,00,000 Stock 50,000
General Reserve 30,000 Sundry Debtors 30,000
Creditors 30,000 Cash 20,000
Employees' Provident Fund 40,000
3,00,000 3,00,000

It was decided to:

(a) Reduce the value of stock by ` 5,000.
(b) Depreciate furniture by 10% and appreciate machinery by 5%.
(c) ` 3,000 of the debtors proved bad. A provision of 5% was to be created on Sundry Debtors for doubtful
debts.
(d) Goodwill of the firm was valued at ` 45,000.
Prepare Revaluation Account, Partner's Capital Accounts and Balance sheet of the reconstituted firm. * Identify
the value being conveyed in the question. 8
OR
Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Inspite of
repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court
ordered for the dissolution of their partnership firm on 31st March 2012. Prachi was deputed to realise the assets
and pay the liabilities. She was paid ` 1,000 as commission for her services. The financial position of the firm
was as follows:
Liabilities Amount (`) Assets Amount (`)
Creditors 10,000 Furniture 37,000
Investment Fluctuation Fund 4,500 Stock 5,500
Capitals : Investments 15,000
Prachi 40,000 Cash 9,000
Ritika 30,000 Ishita's Capital 18,000
84,500 84,500

Following was agreed upon:

Prachi took over investments for ` 12,500. Stock and furniture realized ` 41,500. There was old furniture which
has been written off completely from the books. Ritika agreed to take away the same at the price of ` 3,000.
Compensation paid to the employees amounted to ` 8,000. This liability was not provided in the above Balance
Sheet. Realization expenses amounted to ` 1,000. Prepare Realisation Account, Partners' Capital Accounts and
Cash A/c to close the books of the firm.
* Also identify the value being conveyed in the question.
Ans. Dr. Revaluation Account  Cr.
Liabilities Amount (`) Assets Amount (`)
To Stock A/c 5,000 By Machinery A/c 6,000
To Furniture A/c 8,000 By Loss transferred to Capital A/c
To Bad Debts A/c 3,000 Sahaj 7,567
To provision for bad debts A/c 1,350 Nimish 3,783 11,350
17,350 17,350

* Out of Syllabus
SOLVED PAPER - 2013 (ACCOUNTANCY)

Dr. Partner’s Capital Account          Cr.

Sahaj Nimish Gauri Sahaj Nimish Gauri

Particulars Particulars
(`) (`) (`) (`) (`) (`)
To Revaluation A/c 7,567 3,783 ---- By Balance b/d 1,20,000 80,000 ----
By General reserve A/c 20,000 10,000 ----
By Premium A/c (Goodwill) 10,000 5,000 ----
By Bank A/c / Cash A/c ---- ---- 1,16,825
To Balance c/d 1,42,433 91,217 1,16,825
1,50,000 95,000 1,16,825 1,50,000 95,000 1,16,825

Balance sheet of Sahaj, Nimish & Gauri (As on ………………..)

Liabilities Amount (`) Assets Amount (`)

Capital’s A/c s Machinery (1,20,000 + 6,000) 1,26,000
Sahaj 1,42,433 Furniture (80,000 – 8,000) 72,000
Nimish 91,217 Stock (50,000 – 5,000) 45,000
Gauri 1,16,825 3,50,475 Debtors 30,000
Creditors 30,000 Less: Bad Debts 3,000
27,000
Less: Provision for Bad Debts 1350 25,650
Emp. Provident Fund 40,000 Cash / Bank 1,51,825
4,20,475 4,20,475

Working Note:

a. Gauri’s Share = 45,000 × 1/3 = 15,000

b. Calculation of Gauri’s Capital

Sahaj’s Capital = ` 1,42,433

Nimish’s Capital = ` 91,217

Capital for 2/3 Share = ` 2,33,650

Total Capital = ` 2,33,650 × 3/2

Gauri’s Capital = ` 2,33,650 × 3/2 × 1/3 = ` 1,16,825
OR
Dr. Realisation A/c Cr.

Particulars Amount (`) Particulars Amount (`)

To Assets A/c By Creditors A/c 10,000
Furniture 37,000 By Investment Fluctuation Fund A/c 4,500
Stock 5,500 By Prachi’s Capital A/c (Investment) 12,500
Investments 15,000 57,500 By Cash A/c 41,500
To Cash A/c By Ritika’s Capital A/c
(Liabilities paid) (Old Furniture take over) 3,000
Creditors 10,000 By Loss Transferred to:
Compensation 8,000 18,000 Prachi Cap A/c 3,000
To Cash A/c (Realization Exp.) 1,000 Ritika Cap A/c 1,800
To Prachi Capital A/c (Commission) 1,000 Ishita Cap A/c 1,200 6,000
77,500 77,500
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

Dr. Partner’s Capital Account          Cr.

Prachi Ritika Ishita Prachi Ritika Ishita

Particulars Particulars
(`) (`) (`) (`) (`) (`)
To Balance b/d ---- ---- 18,000 By Balance b/d 40,000 30,000 ----
To Realisation A/c (Loss) 3,000 1,800 1,200 By Realisation 1,000 ---- ----
(Commission paid)
To Realisation A/c 12,500 ---- ---- By Cash A/c ---- ---- 19,200
(Investment Taken Over)
To Realisation A/c ---- 3,000 ----
(Furniture taken Over)
To Balance c/d 25,500 25,200 ----
41,000 30,000 19,200 41,000 30,000 19,200

Dr. Cash A/c          Cr.

Liabilities Amount (`) Assets Amount (`)

To Balance b/d 9,000 By Realization (Liabilities paid) 18,000
To Realization A/c 41,500 By Realization (Exp.) 1,000
To Ishita’s Capital a/c (Cash brought in) 19,200 By Prachi’s Capital A/c (Final Payment) 25,500
By Ritika Cap A/c (Final Payment ) 25,200
69,700 69,700

PART B
(Financial Statements Analysis)

19. Under which type of activity will you classify 'Dividend received by a finance company' while preparing Cash
Flow statement ? 1
Ans. Operating Activity.
20. What is meant by 'Cash from operating activities' ? 1
Ans. It means cash flow from business transactions which have a direct relation in calculating net income of business.
21. State any one objective of Financial Statement Analysis. 1
Ans. 1. Knowing the profitability of business.
2. Knowing the solvency of business.
3. Judging the growth & financial strength of business.
4. Forecasting & preparing budgets.
22. Under what heads and sub-heads the following items will appear in the Balance Sheet of a company as per
revised Schedule of Companies Act, 2013.
(i) Premium on redemption of Debentures
(ii) Loose tools
(iii) Balances with banks 3
Ans.
Items Heading/ Sub Heading
Premium on redemption of debentures Non Current liability/ Other Long term liabilities
Loose tools Current Assets/ Inventory
Balance with Bank Current Assets/ Cash & Cash Equivalents

Note: If an examinee has mentioned either heading or sub-heading full credit may be allowed.
SOLVED PAPER - 2013 (ACCOUNTANCY)

23. (a) Compute 'Working Capital Turnover Ratio' from the following information:
Cash Sales ` 1,30,000; Credit Sales ` 3,80,000; Sales Returns ` 10,000; Liquid Assets ` 1,40,000; Current
Liabilities ` 1,05,000 and Inventory ` 90,000.
(b) Calculate 'Debt Equity Ratio' from the following information:
Total Assets ` 3,50,000; Total Debt ` 2,50,000 and Current Liabilities ` 80,000. 4
Ans. A. Calculation of “Working Capital turnover Ratio”
Net Sales 5, 00 , 000
Working Capital turnover Ratio = = = 4 times
Net working capital 1, 25, 000

Net sales = Cash sales + Credit sales – Sales Returns

= ` 1,30,000 + ` 3,80,000 – `10,000 = ` 5,00,000
Net Working Capital = CA – CL = ` 2,30,000 – ` 1,05,000 = ` 1,25,000
CA = Liquid Assets + Inventory
= ` 1,40,000 + ` 90,000 = ` 2,30,000
CL = 1,05,000(Given)
B. Calculation of Debt Equity Ratio
Debt/Long Term Debt
Debt Equity Ratio =
Equlity/Shareholder's Fund
Debt = Total Debt – CL
= 2,50,000 – 80,000 = 1,70,000
Equity = Total Assets – Total Debts
= 3,50,000 – 2,50,000 = 1,00,000
1, 70 , 000
Debt Equity Ratio = = 1.7 : 1
1, 00 , 000 
24. From the following Statement of Profit and Loss of Sun track Ltd. for the years ended 31st March 2011 and 2012,
Prepare a 'Comparative Statement of Profit & Loss'.

Note 2011-12 2010-11

Particulars
No. (`) (`)
Revenue from operations 20,00,000 12,00,000
Other Income 12,00,000 9,00,000
Expenses 13,00,000 10,00,000 4

Ans. Comparative statement of Profit & Loss for the year ended 31 Mar 2011 & 2012
S. Particulars 2010-11 2010-12 Absolute Changes % Change increase
No. increase or decrease or decreases
1. Revenue from operation 12,00,000 20,00,000 8,00,000 66.6
2. Add other income 9,00,000 12,00,000 3,00,000 33.3
Total Revenue (1+2) 21,00,000 32,00,000 11,00,000 52.4
3. Less Expenses 10,00,000 13,00,000 3,00,000 30.0
4. Profit before tax 11,00,000 19,00,000 8,00,000 73

Note: If an examiner has presented the above statement as per previous format due credit is to be given
25. Following is the Balance Sheet of Wisben Ltd. as on 31st March 2012:

31st March, 31st March,

Particulars Note No.
2019 (`) 2018 (`)
I. Equity and Liabilities:
1. Shareholders' Fund
(a) Share Capital 7,00,000 6,00,000
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

(b) Reserve and Surplus (Profit & Loss Balance) 2,00,000 1,10,000
2. Non Current Liabilities
Long term-Borrowings 3,00,000 2,00,000
3. Current Liabilities
Trade Payables 30,000 25,000
Total 12,30,000 9,35,000
II. Assets:
1. Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets 11,00,000 8,00,000
2. Current Assets:
(a) Inventories 70,000 60,000
(b) Trade Receivables 32,000 40,000
(c) Cash and Cash equivalents 28,000 35,000
Total 12,30,000 9,35,000

Adjustments:

During the year a piece of machinery of the book value of ` 80,000 was sold for ` 65,000. Depreciation provided
on tangible assets during the year amounted to ` 2,00,000. 6
Prepare a Cash Flow Statement.
Ans.
Particulars Details (`) Amount (`)
A. Cash Flow from operating Activities:
Profit as per statement of profit & loss before tax & extra ordinary 90,000
items
Add: Non Cash & Non Operating Items
Add:
1. Depreciation 2,00,000
2. Loss on sale of Mach. 15,000 2,15,000
Operating Profit before working capital changes 3,05,000
Adjustments for current assets & current liabilities except cash & bank.
Add: Increase in trade payables 5,000
Less: Increase in Inventories (10,000)
Add: Decrease in Trade receivables 8,000
Net Cash flow from Operating Activities 3,000 3,08,000
B. Cash Flow from Investing Activities:
Sale of Machinery 65,000
Purchase of Tangible assets (5,80,000)
Net Cash flow from Investing Activities (5,15,500)
C. Cash Flow from Financing Activities:
Issue of Shares 1,00,000
Loan raised 1,00,000
Net Cash flow from financing Activities 2,00,000
Decrease in cash and cash Equivalents (7,000)
Add: Opening balance of cash & cash Equivalents 35,000
Closing Balance of Cash & Cash Equivalent 28,000
SOLVED PAPER - 2013 (ACCOUNTANCY)

Dr. Bank A/c Cr.

Particulars Amount (`) Particulars Amount (`)
To Balance b/d 8,00,000 By Dep. A/c 2,00,000
To Bank A/c(Purchase) 5,80,000 By Mach. Sold A/c 80,000
By Balance c/d 11,00,000
13,80,000 13,80,000
Dr. Machinery A/c Cr.
Particulars Amount (`) Particulars Amount (`)
To tangible assets a/c 8,00,000 By Bank a/c 65,000
By P&L A/c (Loss) 15,000
80,000 80,000

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