Pre-Board Term -II Examination (2021-22) Code: N/03
Class - XII
Time Allowed: 2 Hours Subject: Accountancy (055) Max. Marks: 40
General Instructions:
1. This question paper comprises two Parts – A and B. There are 12 questions in the question paper. All questions are compulsory.
2. Part-A is compulsory for all candidates.
3. Part-B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerized Accounting. Students must attempt only one of the given
options. Option (i) is compulsory in your region, that’s why Option (ii) “Computerized Accounting” is not given in this question paper.
4. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks each.
5. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks each.
6. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks each.
7. There is no overall choice. However, an internal choice has been provided in 3 questions of three marks and 1 question of five marks.
Part A
(Accounting for Not-for-Profit organisations, Partnership firms and Companies)
1 From the following Receipts and Payments Account for the year ended 31st March, 2021 of Sonic Club and from the given 2
additional information, show the salaries items in the Income and Expenditure Account and the Balance Sheet as on 31 st March,
2020 and 31st March, 2021.
Receipts ₹ Payments ₹
By Salaries:
2019 – 20 20,000
2020 – 21 2,80,000
2021 – 22 18,000
Salary outstanding on 31st March 2020 ₹. 25,000
Salary Outstanding on 31st March 2021 ₹. 45,000
Salary paid in advance on 31st March 2020 ₹. 10,000
2 Distinguish between ‘Realisation Account’ and ‘Revaluation Accounts’ on the basis of: 2
(i). Objective of Preparation (ii). Time of preparation
3 Sunaina, Suchitra and Surabhi are partners sharing profits in the ratio of 5 : 3 : 2. Sunaina, by agreement, retires on 1st April, 2
2021 An extract of their Balance sheet as at 31st March, 2021 is as follows:
Liabilities ₹ Assets ₹
Investment Fluctuating Reserve 37,500 Investment [at Cost] 5,00,000
Pass journal entries assuming that the market value of Investment is ₹ 5,50,000 and shows these information in new
Balance Sheet.
4 Exclusive club has 1250 members each paying an annual subscription of ₹.150. During the year ended 31st March 2021, the 3
club did not receive subscription from 45 members and received subscription in advance from 46 members for the year ending
31st March 2022. On 31st March 2020 the outstanding subscription were ₹. 15, 000 and subscription received in advance
were ₹. 3000.
Calculate the amount of subscription that will be debited to the Receipts and Payment Account for the year ended 31st March
2021.
Or
How the following items for the year ended 31st March, 2020 will be presented in the financial statements of Aisko Club:
Particulars Debit Amount Credit Amount
Tournament Fund 1,50,000
Tournament Fund Investment 1,50,000
Income from Tournament Fund Investment 12,000
Tournament Expenses 18,000
Interest accrued on Tournament Fund Investment ₹. 6,000.
5 X, Y and Z are partners in a firm. Total Capital Employed is ₹ 5,40,000 contributed by them in their profit sharing ratio. Y 3
retires from the firm. On the day of retirement the firm had a balance of ₹ 90,000 in the General Reserve Account. Y took one
of the unrecorded Assets of the firm valued at ₹ 54,000 in part payment and balance amount was paid in cash. Pass necessary
entries on Y’s retirement.
6 Surbhi Ltd. was in the business of manufacturing woolen clothing. It decided to donate woolen clothes and blankets during 3
winter season to the poor people. It issued 10,000 fully paid 12% Debentures of ₹ 100 each at a premium of ₹ 5 per share and
balance buy issue of cheque for the purchase of a running business from Ram Bros, for a sum of ₹ 15,00,000. The assets and
liabilities consisted of following:
Plant ₹ 5,00,000; Trucks ₹ 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 Surbhi Ltd.
Or
Vinus Ltd. has ₹ 10,00,000, 12% Debentures outstanding as on 1 st April, 2020. During the year company took a Loan of ₹
20,00,000 from the State Bank of India for which the Company placed with the bank, 12% Debentures ₹ 2,50,000 as Collateral
Security.
Pass necessary journal entries for the above transactions, and also show how the Debentures and Bank Loan will appear in the
Company’s Balance Sheet as at 31st March, 2021.
7 Vinod and Mohit were partners in a firm sharing profits and losses equally. They dissolved their firm on 31st March 2021. 5
On this date, the Balance Sheet of the firm, apart from realizable assets and outside liabilities showed the following:
Vinod’s Capital 1,00,000 (Cr.)
Mohit’s Capital 50,000 (Dr).
Profit & Loss A/c 10,000 (Dr.)
Vinod’s Loan to the firm 15,000
General Reserve 7,000
On the dissolution of the firm:
(i) Vinod’s Loan was repaid by the firm along with interest of ₹. 500.
(ii) The Dissolution expenses of ₹. 1,000 were paid by the firm on behalf of Vinod who had to bear these expenses.
(iii) An unrecorded asset of ₹. 2,000 was taken over by Mohit while Vinod discharged an unrecorded liability of ₹. 3,000.
(iv) The dissolution resulted in a loss of ₹. 60,000 from the Realisation of assets and settlement of liabilities.
You are required to prepare:
(i) Partners Capital Accounts and (ii) Show Settlement of Vinod’s Loan Account
Or
Manoj, Hari and Karan are partners in a firm sharing profits and losses in the ratio of 4:2:1. Their Balance Sheet as at 31 st
March 2021:
Liabilities Amount Assets Amount
Sundry Creditors 32,600 Plant and Machinery 20,000
Bills Payable 4,000 Goodwill 7,000
General Reserve 8,400 Stock 38,000
Capital Accounts: Bank 20,000
Manoj 16,000
Hari 14,000
Karan 10,000 40,000
85,000 85,000
Hari retired from the business on the above-mentioned date. The remaining partners decided to carry on the business on the
following terms:
(a) General Reserve not to be distributed
(b) Out of the total insurance premium paid, an amount of ₹. 7,000 to be treated as prepaid insurance. The amount was earlier
debited to Profit and Loss Account.
(c) Hari to be paid ₹. 24,400 in full settlement.
Pass necessary journal entries at the time of Hari retirement and prepare Partners Capital Accounts.
8 Prince Ltd. Issued 9% Debentures of Nominal value of ₹. 50 each as follows: 5
(i) Debentures of Nominal value of ₹. 2,00,000 and received 95% of the Nominal value after allowing a discount to the
applicants.
(ii) Issued Debentures at a discount of 10% to Satish Ltd., for purchase of fixed assets of ₹. 9,90,000.
(iii) Took a loan from HDFC Bank ₹. 4,00,000 and issued 9,000, 9% Debentures as collateral security
You are required to answer the following questions:
(a) How much Total discount is allowed by Vinod Ltd. in Case (i) and Case (ii)
(b) Number of Debentures issued to Satish Ltd.
(c) Give entry for bank loan and issue of debentures as collateral security
(d) Give entry for writing off Discount on issue of Debentures
(e) Prepare Debentures Account.
9 Following information is provided by Vinod Welfare Club as on 31 st March 2021: 5
Receipts Amount Payments Amount
To Balance b/d: By Furniture 70,000
Cash 10,000 By Salaries 80,000
Bank 19,000 By Sports Equipment 1,00,000
To Subscription: By Paid for Medicines 4,50,000
For 2019-20 30,000 By Telephone Expense 1,000
For 2020-21 4,00,000 By Insurance Premium 19,000
For 2021-21 70,000 5,00,000 By Stationery 10,000
To General Donation 70,000 By Balance c/d:
To Entrance Fees 54,000 Cash 24,000
To Life Membership Fees 20,000
To Legacy (specific) 62,000
To Sale of Sports Equipment 16,000
(Book Value ₹.15,000)
To Bank Overdraft 3,000
7,54,000 7,54,000
Additional Information:
(i) Balance of Sports Equipment on 1st April 2020 was ₹. 60,000.
(ii) There are 1000 members each paying ₹. 500 annual subscription. Subscription in arrears in the beginning of current year
₹. 40,000. Subscription received in advance in the beginning of the current year ₹. 80,000.
(iii) Information about Medicines:
Particulars 2020 2021
Stock of Medicines 1,25,000 90% more than opening stock
Creditors for Medicines 50,000 50% of the opening creditors
st
Prepare Income and Expenditure Account for the year ended 31 March, 2021
Part-B
( Option: I ) (Analysis of Financial Statements)
Option (i) is compulsory in your region, that’s why Option (ii) “Computerized Accounting” is not given in this question paper.
10 From the following information, find out Cash Flow from Financing Activities: 2
Particulars 31st March, 2021 31st March, 2020
Long Term Borrowings:
12% Debentures 3,00,0000 2,00,000
Other Current Liabilities:
12% Debentures (Maturity of long-term debts) ------------- 50,000
Additional Information:
st
Debentures were redeemed on 31 September, 2020 and fresh debentures were issued on 1 st April, 2020.
11 From the following details provided by Vinod Ltd., for the year ended 31st March 2021, prepared comparative Statement
of Profit and Loss:
Particular 31st March, 2020 31st March, 2021
Revenue from Operation ₹ 4,20,000 ₹ 8,00,000
Purchase of Stock-in-trade ₹ 2,50,000 ₹ 4,50,000
Change in Inventories ₹ 50,000 ₹ 50,000
Other Expenses 10% of Cost of Revenue from 8% of Cost of Revenue from
Operation Operation
Income Tax 40% 50%
1. 3
2. Or
3.
4. Balance Sheets of Vishal Ltd as at 31st March, 2020 and 2021, are given below:
Particular N.N. 31.03.2020 31.03.2021
(I) Equity and Liabilities
1. Shareholders’ Funds
(a) Share Capital 30,00,000 40,00,000
(b) Reserve and Surplus 4,00,000 6,00,000
2. Non-current Liabilities
Long-term Borrowing 10,00,000 12,00,000
3. Current Liabilities
Trade Payable 6,00,000 2,00,000
Total 50,00,000 60,00,000
(II) Assets
1. Non-current Assets
(a) Fixed Assets
(i). Tangible Assets 30,00,000 40,00,000
(ii). Intangible Assets 6,00,000 2,00,000
2. Current Assets
(a) Inventories 10,00,000 12,00,000
(b) Cash and Cash equivalents 4,00,000 6,00,000
Total 50,00,000 60,00,000
Prepare a Common-size Balance Sheet of Vishal Ltd as at 31st March, 2020 and 2021
12 From the following information and extracts of Balance Sheet of Satish Ltd. as at 31st March 2020 and 31st March 5
2021, find out:
(i) Cash flow From Operating Activities
(ii) Cash flow from Investing Activities
Particulars 31st March 2021 31st March 2020
Surplus i.e., Statement of Profit and Loss 32,40,000 1,40,000
General Reserve 40,000 30,000
Provision for Tax 1,20,000 90,000
Trade payables 32,000 44,000
Patents 50,000 1,50,000
10% Debentures 1,20,000 10,000
Trademarks 15,000 12,000
Machinery (at cost) 2,90,000 2,45,000
Accumulated Depreciation on Machinery 30,000 40,000
Note: Proposed dividend for the year 2019-20 and 2020-21 were ₹. 40,000 and ₹. 50,000 respectively.
Additional Information:
(a) The company provided depreciation on Plant & Machinery amounting to ₹. 24,000.
(b) A machine had been condemned and scrapped.
(c) Interest of ₹. 12,000 paid on Debentures.
(d) Tax paid ₹. 50,000
(e) Patents worth ₹. 30,000 were written off while some patents were sold for ₹. 75,000 at a profit of ₹. 5,000. No new
patents were purchased.
(f) Dividend proposed in 2019-20 was approved by the shareholders and paid by the company.
Prepared by
Nirmal Singh Rana
PGT. Commerce
Shriji Baba Saraswati Vidya Mandir, Mathura
