Accountancy SET-II F.M. - 80 PART - A (Marks : 44) COMMERCE POINT Answer the following questions (Alternatives are to be noted) : ‘Ateoa emaafers Baa wie : (eRe ere) : 1. Jeet, Preet and Prectam are partners in a firm sharing profits and losses in the ratio of 3:3:2. On Ist January, 2018 their capitals stood at * 16,000, * 10,000 and 8,000 respectively, It was provided for in the partnership deed that interest @ 6% p.a. would be charged to the partners on their drawings. In addition it was provided that Prectam was entitled toa commission of 10% on profit after charging such commission but before charging any interest. The net profit of the firm for the year ended 3 Ist December 2018 amounted to * 11,000. Jeet and Preet drew * 100 at the end of each month. Prepare the Profit and Loss Appropriation Account of the firm for the year ended 31.12.2018. 4 Or aohmaces Soares Gea HH Petcare aa A A fen ora sare Ba? 4 XYZ Ltd. forfeited 300 Equity Shares of * 10 each, fully called up, held by Manish, for non payment of allotment money of * 3 per share and final call money of *4 per share. Out of these shares, 250 were reissued to Shyam for a total payment of * 2,000. Give journal entries for forfeiture and reissue. 4 Or ‘RAG coratcaia Caf Biyfe1 Ht Fe (What are the features of equity shares)? 4 Pass journal entries for issuing of 2,000, 10% Debentures of * 100 each in the following cases. (@) Issued at * 100 and redeemable at * 110 and (i) Issued at * 95 and redeemable at * 105.4. Balance Sheet of Amal, Bimal and kamal sharing profits in the ratio of 3:2:1 is given below: Liabilities . Assets . Amal's Capital 4,00,000 Bank 40,000 Bimal's Capital 4,00,000 Debtors 2,00,000 Kamals Capital 2,00,000 Len. Prov. for Doubtful Debts 3,000 Contingency Reserve 1,20,000 1,97,000 Trade Geditors 1,80,000 Stock 2,03,000 Fumiture 30,000 Machinery 5,30,000 Building 3,00,00 —13,00,000. 13,00,000_ It was decided to admit shyamal into partnership on the following terms and conditions. (a) New profit sharing ratio among Amal, Bimal, Kamal and Shyamal will be 3:3:2:2 (b) Goodwill of the firm is valued at * 3,00,000 Shyamal brings his share of goodwill ineach. (c) Shyamal brings in * 1,50,000 as his share of capital. (d) Contingency Reserve is not required any more. (e) Provision for doubtful debts is to be raised to 5% on Debtors. () Machinery is revalued at > 5,00,000 and building is revalued at> 3,67,000. Prepare Revaluation Account and partners' capital Accounts. 6 Or =pIel 9ofyeuTAH rsa (Memorandum Revalnation Account) 4108 f% ala? (6)5. Raj Ltd. issued 20,000 equity shares of * 10 each at a premium of ~ 2 per share payable as ~ 3 per share on application ; * 5 per share on allotment including premium and * 4 pershare on final call.All the shares were subscribed, money due on all shares was fully received excepting, Rup, holding 200 shares failed to pay allotment and first call money, and Deep holding 400 shares, failed to pay the final call money. All these 600 shares were forfeited. Pass necessary journal entries. 6 Or Brat are: (i) TABS wee CraTA SrA, (i) Pron Brat Stone, Brick and sand are partners sharing profits and losses in the ratio of 3:2:1. The Balance sheet of the firm as at 31st March, 2018 stood as follows : Balance Sheet as at 31.3.2018 Liabilities . Assets ~ Creditors 42,000 Cash at Bank 11,500 Workshop's Compensation 24,000 Debtors 80,000 Reserve Less: Provision Investment 12,000 For doubtful Fluctuation Debts 4.000 76,000 Reserve Stock 60,000 Capital A/es Investment 30,000 Stone 1,36,000 (Market value Brick 64,000 ~ 35,200) Sand 42,000 2,42,000 Patents 20,000 Machinery 1,00,000 Advertisement Expenditure 10,500 Goodwill 12,000 3,20,000 3,20,000 Sand retired on the above dates on the following terms : (a) Goodwill of the firm is to be valued at ~ 69,600 (b)_ Value of patents is to be reduced by 20% and that of machinery 90%. (©) Provision for doubtful debts is to be created @ 6% on Debtors (d) Sand took over the investment on market value.() o) ® Liability for Workmen's Compensation Fund to the extent of * 1500 is to be created. A liability of > 8,000 included in creditors is not likely to be paid. Amount due to sand to be settled on the following basis : * 10,134 to be paid immediately, 50 % of the balance within one year and the balance by a Billof exchange (without interest) at 3 months. (10) Prepare Revaluation Account Partners Capital Account and Balance Sheet after Sand's Retirement.7. Following are the Balance Sheets of Navneet Ltd. as on 31.12.17 and 31.12.2018. Liabilities 2017 ¢) | 2018) | Assets 2017 ¢-)| 2018 ¢) Share Capital | 10,00,000 | 15,00,000 | Fixed Assets | 20,00,000 | 30,00,000 Reserve 10,00,000 | 10,00,000 | CurrentAssets | 5,00,000 | 8,00,000 Loan 2,00,000 | 8,00,000 Current Liabilities 3,00,000 | 5,00,000 25,00,000 | 38,00,000 25,00,000 | 38,00,000 You are required to prepare a comparative Balance sheet on the basis of the infor- mation given above. 47. The following particulars are extracted from the Balance Sheet of Goodwill Enterprises Ltd. as at 31st March, 2017 :- OR, Equity Share Capital 3,00,000 10% Preference Share Capital 1,20,000 Capital Reserve 60,000 Profit & loss balance 1,20,000 12% Debentures 50,000 10% Mortgage Loan 1,50,000 Current Liabilities 2,80,000 Non Current Assets 4,80,000 ‘Current Assets 6,00,000 Calculate : i) Debt-Equity Ratio it) Proprietary Ratio OR Beat ore : Write short notes on : i) Debtor's Turnover Ratio (C#AMICH SITET MNS) i) Gross Profit Ratio (CAG Fare ByANS)Model Question with Answer Key 7 8. Prepare a Cash Flow Statement from the following Balance Sheets of ABC & CO. Ltd:- Liabilities | 31.12.18 | 31.12.17 | Assets 31.12.18 | 21.12.17 Share Fixed Assets | 7,00,000 | 5,00,000 Capital 5,00,000 | 4,00,000 Reserve & Non Current Surplus 3,05,000 | 2,10,000 Investment 56,000 70,000 Long term Inventory 2,80,000 | 2,10,000 Borrowing | 3,10,000 | 3,00,000 Trade ‘Trade Payables 95,000 | 80,000 | Receivables | 1,14,000 | 1,40,000 Cash & cash 60,000 70,000 Equivalents 12,10,000 | 9,90,000 12,10,000 | 9,90,000 OR wom etare Raatha Be Semmes cata | Aa sare aa oar aoe SB CT TAT ‘Freel | 244PART -B (Marks - 36) 1x 18=18 1. aids faeait Preter wa : @ aeea aetna vats ferrracex cor Oo a) WA CBR a by) wet GaTBE ara ) CORA RC dy PATE CORE Ata AT ROS AC Current Account of a partner — oO a) will havea debit balance always b) _willhaveacredit balance always c) may haveadebit or credit balance d) never have a debit balance Gi) am Perec Beaacrsce etern seers Gora IH CrAICA A? a) TradingA/e b) Profit & Loss A/c c) Profit& LossAppropriation d) Suspense A/c Ak In which account interest on capital payable to partners is shown? a) TradingA/e b) Profit & Loss A/c c) Profit& LossAppropriation d) Suspense A/c Ale Gil) Toa carat ade? a) Gera ATaTraCe ATA Peas aR FA A AT b) aver aTarece Beha NS eee aeCET Aa Ble @ ATT FRC SRT FA BW c) Greer aTeTeTaTS Het MOA Alsat eras Sata OS Tears Pets ee Fal d) crearWhich of the following is true? a) aminor cannot be admitted as a partner b) aminorcan be admitted as a partner with rights and liabilities same as an adult c) aminor can be admitted as a partner only into the benefits of the partners d) none ofthe above (iv) ait cata Ses ate aICAs eeca aRefIt ae Tesla Ba, rs Ga ” (vi) Brera Beis yy eI — a) 6 5IGAS b) 54 aIGIS ©) 64 aC d) 12310 Ifdrawings are made by a partner equally at the beginning of each month, then interest on drawings is to calculated for a) 6months b) 5%months c) 6%months d) 12months ait X 6 Y-98 THA ACSA (capital A/es)-4A TNT 25000 6 * 20000 zat SZ AE HECHT LCR AT ANAT PRAT ARE A A, GT ee a) * 15000 b) > 20000 ©) > 22500 d) > 25000 If capital balances of X and Y are * 25000 and * 20000 respectively and Z is admitted fort rd of total capital of the firm, then what will be the amount of Z's 2-95 capital ? a) ~ 15000 b) ~* 20000 c) * 22500 d) * 25000 Fe eters atoy weds Gora tora ACAS Ae ACs (wisn GA GPR Ba, eat 37) — a) S%pa b) 6%p.a c) Mpa doe aA Rate of Interest on dues of the deceased partner will be (as per sec. 37 of Indian Partnership Act, 1932) a) 5%pa b) 6%pa ce) Mpa d) Bankrate(vi) wR, Far on Scores ats a ats-afB va wea +, 1 > SOS | ATA BAAR ete BEA, TA ALA BeOS BCI — (viii) (we) ®) a) 3:1 ©) 1:3 Aminul, Biman and Christopher are partners and share profit and losses in the Proportion of 4 4 and |. If Biman retires what will be the new profit sharing ratio— a) 3:1 ee 13 A GRR B ANS-S S54 Feat 1: 1 CYSTS | C-EAA UAT PeSHIC skeet a ath exert Sarena or | ange ares tT =a — a) 1:1:2 ©) 3:3:2 A and B share profit and losses in 1 : 1 ratio. They take C as a new partner for part of profit. New profit sharing ratio will be— b) d) b) 4) b) 4) ae 2s TRE 312. 2:3 aie 243) 2ue sal 2s1 a) 1:1:2 by 2:11 c) 3:3:2 dy 1:2:1 Beta pfsa ayeiPafoce, Sears Gera AHA aa A — a) 5S%pa b) 6%pa c) 8%pa 4) MI chem a at In absence of partnership agreement, interest on drawing will be a) S%pa b) 6%pa °c) 8%pa d) nointerest will be paid OATS wT — a) RT TAMNS — ABASME by ABH SATO — aca STE o) PRAT SAMS Hag UAT) HAGE AT Sacrificing Ratio is equal to— a) Old Ratio—New Ratio b) New Ratio—Old Ratio c) Old Ratio + New Ratio ) None of these«i) (xii) xii) (iv) ‘Share Allotment A/c! @a1 44 — a) wPaife seat forsee b) afes fers c) aire forsee d) carafe arr Share Allotment A/c is a— a) Realaccount b) Personal account c) Nominal account d) None of these erfterca carat Fafer-aeaery Fare Ce MIATA ICR I BT: a) aT ae b) Malas c) Mat vo d) ata es The provision for issue of shares at a premium is stated in ; a) Sec. 78 b) Sec. 79 c) Sec, 80 d) Sec. 52 ait FarSurrs AG HAS > 1,20,000 arena afFacs a> 1,00,000 yreTA HAT amiiige cra fate tai eH, ota SAB > 20000 ara AICw GEILE at RI? a) Fara rea b) ye aS feTeICT co) ArS-af free d) fecwors ference If vendors are issued fully paid shares of ~ 1,00,000 in consideration of net assets of * 1,20,000, the balance of * 20000 will be credited to — Oo a) Goodwill A/c b) Capital Reserve A/c c) Profit & Loss A/c d) VendorA/c Ut” 10 Yea GAG CHU, TA 8 Sarl ATH KAR * 6 WHAT VK, TACHMS FM BA, OA CA TA ACS CURT FATS AA — a) *10 b) °8 ce) 6 d) ~2 Ifa share of * 10, on which ~ 8 has been called and ~ 6 has been paid, is forfeited, the share capital A/c should be debited with a) *10 b) °8 oc) 6 d °2(xv) Ctateaa aire arena Fw wie Failte fifi fers ARAR Fal ATS ICA? a) 20% b) 30% c) 40% d) wir Maximum amount that can be collected as premium as a percentage of face value of share is— a) 20% b) 30% c) 40% 4) Unlimited (xvi) Wenhloraye CRIT CAPO ETL OTT — a) MS aa by afRaeaAle aca c) 10% ata ad) raft aa Preference share holders get dividend at — a) Fixedrate b) Fluctuating rate c) 10% d) none ofthese Qxvil) Of Coats oafefer Fat Aew AS BT GTA OT cata PaAICw FeITITA FAT wa a) Fee AAS aicw b) cota ER aw ©) FARM GIShr FAS atcw 4) carte ar If there is profit on re-issue of shares, then that profit is transferred to— a) Capital Reserve A/c b) Share Capital A/c c) Revenue Reserve A/c d) none ofthese (xviii) FBcasgta Ffera CH Cl AUT etre FAT Bz GI BA — a) Fatt aPafe b) vale fs c) White amife d) Sale aie Discount on issue of Debenture is — a) Fixed Asset b) Current Asset c) Wasting Asset d) Fictitious Asset2, aise front fretor sa : 1x6=6 Choose the correct alternative (Answer either Question No. 2 or Question No. 3) © Wh PRles CRIT 72% BA, OA ASA FAA HANS WA — a) 15% b) 18% c) 22% d) 28% Ifoperating ratio is 72%, what will be the operating profit ratio? a) 15% b) 18% ce) 22% d) 28% @) vale wasiines anef art ze — a) 1:1 by 12 ce) 4:1 d 2:1 The ideal standard of current Ratio is— a) 1:1 b) 1:2 .) 4:1 d) 2:1 Gi) fF RFA > 3,00,000 2x, Gad FeTRT WATS 20% , sy ABS ASIA * 1,20,000, OLA TAS SAS CAA AV AA — a) 2a b) 4a c) 8a ad) 6a If sales is > 3,00,000, gross profit ratio is 20%, Average stock * 1,20,000, what will be the number of stock tumover— a) 2times b) 4times c) 8times d) 6times (ix) AR BaD URPPITS 3 = 2 GAR AIG er HA TEPET* 60000 WM, Tes dah HmHfET afar aa — a) ~ 40000 b) * 60000 ) * 80000 d) ~*~ 1,80,000 Ifcurrent ratio 3 : 2, net working capital * 60000, then what will be the amount of current assets? a) ~ 40000 b) > 60000 c) ~ 80000 d) ~ 1,80,000Wy) (vi) Wael Fens Be — a) vee yPARe — wEW viet — wes ee ea b) aie wmfe — sere c) Dats aemife — fefrcatet a) AIR ar Liquid Asset is equal to— a) Current Asset — Stock — Prepaid expenses b) Current Asset — Capital ¢) Current Asset— Investment d) None ofthese aot ary FraaAlCe AST IMPACT kat BEI — a) fie rete stent b) farce Here seret ) SRAM ASE we od) Abe aT In cash flow statement dividend paid will be considered as : a) Operating Activities b) Investing Activities c) Financing Activities d) None ofthese Computer in financial accounting. Prater emnafera acre Bea we : (Pram emia areata ) Answer the following questions in brief (Alternatives are to be noted) : WTAE CAT RIB’ ae TATA SOAs TET GB ites FIC at qi) (ii) 1x8=8, State one distinction between ‘Charge against Profit’ and ' Appropriation of Profit. CHT AAAS HRA TATA AS AICS ACA? ‘What is Fluctuating Capital Account of a partner? Fale yen efacs Boyar Ae What is super profit in the valuation of goodwill? OR eer Tre wea, FA Cd TAA 60% eA FATA, BAA pfet SRPafere FSi Cae TATRA Fw Gel CAA? ‘What share of profit would a ‘sleeping partner’, who has contributed 60% of the total capital, get in absence of a deed?Gv) AG BaTSRiS 3: 1 GAATS ae Ha |B Wa GCA 4 Ge ABA IMA C CF frat | AGA AIS -afSa BATS Pref a A&B shares profits and losses in the ratio of 3 : 1. C is taken as a new partner to whom B contributed 4 of his share, Calculate new profit sharing ratio. (vy) Uta BAEC CHE OTST SAA eres HH FT TR? Whatare the provisions in Indian Partnership Act regarding retirement of partners? OR Cara BAAS SAAR TEA HS Tea Fa cles VATTAAS CHEM ATW ANCA fee Cana partner be exempted from sharing the losses of a firm? (i) rmibia Pertigs aren’ TITS F cats What do you mean by ‘Registered Capital’ of a company? OR Garrone TRACAa CHT “EN bra’ secs FI carat? Whatdo you mean by ‘minimum subscription’ in case of capital ofa company? (vi) afefre crcereteta eres ATS cast? What do you mean by over-subscription of shares? OR BAR S14 TACT B cata? What do you mean calls-in-arrear? (vill) rata FRferera Fats CHTE IPO aCe FI Catal? What do you mean by IPO in case of issue of shares? Frafatae emnyfera aefieg Gea wre : (Prange errs ) 1x8=8 Answer the following questions in brief (See the Altematives) : (Area Gera SIH Fas Ics AH What is common-size Income Statement? ORQrangis om Raa aerce F carat? What is Comparative Income Statement? i) Wh cals Fares GATS 20% ex Recas Cait afar ~ 8,00,000 2x, Sra CATE area oes FS BT? ‘What will be the amount of gross profit, if gross profit ratio be 20% and total sales be > 8,00,000? ii) Fra ayes He What is Mixed Ratio? OR OHA SAIS Teal Bll HS? What is the ideal standard of liquid ratio? (iv) FoR AB eee Bom cate Rania aes alt ones Fol ea State on distinction between cash book and cash flow statement. 6. Computer in financial Accounting.