SAMPLE QUESTION PAPER 2 A HIGHLY SIMULATED SAMPLE QUESTION PAPER FOR CBSE CLASS XI EXAMINATIONS, ACCOUNTANCY GENERAL INSTRUCTIONS 1. This question paper contains two parts A and 8. 2. Part Ais eampuleory for al. 4. Part B has two options~Analysis of Financial Statements and Computerised accounting’ [Attempt only one option of Part 8. “4. Question nos. 1to 13 and73 1029 are objective type questions carrying 1 mark each, 5. Question nos. 4 and 30.are short answer type-I questians carrying 3 marks each. '& Question nos. 15 to 18 and 31 are short answer type-II questions carrying 4 marks each. 7. Question nos.19, 20 and 32 are long answer type-| questions carrying 6 marks each. '& Question nos. 71 and 22 are long answer typerll questions carrying 8 marks each. * Computerised Accounting has nat been covered. TIME: 3 HOURS MAX. MARKS : 80 Part A (Accounting for Partnership Firms and Companies) 1. Under what circumstances, a partner can get exemption from sharing losses ina firm? (1) (@) Wheiea seniorcitizen (b)Ifheisaminor (e) Ihessretiring partner (d) Allof these ‘2. Ifthe debit side of realisation account exceeds the credit side, then it signifies @ (@) profiton realisation (b)loss onreslisation (c) neitherprofitnorloss —(d) None of these 3. If firm gives quarantee to a partner then who will sacrifice for this guarantee? o (@) Allpartners equally (©) Only that partner who has maximum profit (6) Allpartners in profit or loss sharingratio _(d) Allofthe above 4. XandY are sharing profits and losses in the ratio of 3: 2. Z is admitted with 1/Sth share in profits of the firm which he gets entirely from X. Find out the new profit sharing ratio. @ (a) 12:8:5 () 8:12:5 (e) 22281 (6) 22:2 ‘5. What will be the journal entry for shares re-issued at discount? @ (@) Bank Ale Dr (b) Bank Ale De “To Share Capital A/e Share Forfeiture A/c Dr ‘To Securities Premium Reserve A/e “To Share Capital fe (©) Share Capital A/e Dr (2) Share Capital A/e De ‘To Bank Ale Securities Preminum Reserent A/e Dr ‘To Share Forfeiture A/e “To Bank A/e 6. KK, KN and KH are partners sharing profits and losses in the ratio of 2:2: 1. KH retires on 31st December 2019, Extract of the balance sheet ofthe firm as at ist December, 2019s as follows ibe | Fant icsientiis aniIf the land and building is revalued at ¢ 48,00,000 how will you show the effect of change in. ‘Value of land and building in revaluation account? @ (a) Land and Bullding A/e*8,00,000 (Cr) () Land and Building A/e*8,00,000 (Dr) (@) Landand Bulding 4/e€48,00000 (Cx) ——_(@) Land and Building a/c €48,00,000 (Or) 1. State the order of share capitals ofthe following types according to the Schedule II, Part Fof the ‘companies balance sheet, o (0) Subscribed share capital (i) Authorised/Registered share capital (ili) Issued share capital ©) 0-6) - ©) =~) FE) HH) -G)-) (2) No specified order ‘8. Ram and Shyam are partners sharing profits in the ratio of 3.2. They admit Tarun as a new partner. After his admission, the profit sharing ratio becomes 5 : 5: 3. On the date of Tarun's ‘2dmission, goodwill ofthe firm is valued at 13,00,000. The amount of goodwill brought in by Tarun will be a (@) 75,00,000 () %1000,000 (©) 300,000 (@) 713,00.000 ‘When debentures are issued at a discount and aré redeemable at @ premium, which of the following accounts is debited at the time of issue? « (@) Debentures account (0) Premium on redemption of debentures account (6) Loss on issue of debentures account (@) None of these 10. Realisation account is prepared at the time of . o (@) Admission of a Partner (&) Change in Profit Sharing Ratio {6) Dissoltution of = Firm (4) Dissolution of Partnership only 111. The capital balance of a partner at the end of the year (after adjusting for his drawings ® 3,500 and his share in the profit & 2,300) is € 12,000. Interest on capital is payable to him at 5% per ‘annum, What will be the amount of interest on capital? @ (@) 2660 (@) 2600 fe) 8540 (4) None of these 12. Final amount of a deceased partner's capital account is payable to Bis an. @ 13. On dissolution ofa firm, partner's loan account is transferred to oy (@) Realisation account () Partners’ Capital accounts (6) Partners’ Current accounts (€) None of the above 14. Cameroon Ltd invited applications for issuing 10,000, 12% debentures of € 100 each at @ premium off 70 per debenture. The full amount was payable on application. Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded. Debentures were allotted to the remaining ‘applications. ass necessary journal entries in the books of Cameroon Ltd forthe above transactions.) Or Warren Hasting Lid took a loan of 10,00,000 from a bank giving = 12,00,000, 9% debentures as collateral secunity. Pass journal entry regarding the issue of debentures if any, and show this Joan in the balance sheet of the company. 15. The partnership agreement between Maneesh and Girish provides that () Profits will be shared equally. |i) Maneesh will be allowed a salary of 400 per month. Ui) Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after allowing Maneesh's salary. iv) 7% interest will be allowed on partners’ fixed capital (0) 5% interest will be charged on partners’ annual drawings.(Vf) The fixed capitals of Maneesh and Girish are ¥ 1,00,000 and € 80,000 respectively. Their annual drawings were f 16,000 and T 14,000 respectively. The net profit for the year ending 31st March, 2006 amounted to € 40,000. Prepare firm's profit and loss appropriation account. w Or X and are partners in a firm. They admitted Z as a partner without capital for 1/3rd sharein the profits of the firm. The new partnership agreement provides for the following (f) 10% of the trading profit will be donated to Prime Minister's Relief Fund. (W) 5% of the trading profit will be donated to the National Blind Relief Fund, (if) Products will be sold at a discount of 15% on maximum retail price to the people living below poverty line lv) New retail shops will be opened in the naval affected areas of the country. (v) New jobs of sales persons will be reserved for the girls belonging to scheduled castes and scheduled tribes, Trading profit of the firm for the year ended 31st March, 2018 was f 5,00,000. Prepare ‘profit and loss appropriation account’ of X, ¥ and Z for the year ended 31st March, 2018. Parth Ltd was registered with a capital of ¢ 10,00,000 in shares of z 20 each. It invited applications for 50,000 shares. The amount is payable as 7 5 on application, 7 10 on allotment and 7 5 on first and final call. Give journal entries for the above transactions and also show the cash book of the firm, when the public has subscribed for 46,500 shares. o 17. A, Band Care partners. Their capitals as on 1st April, 2018 were: AT 1,00,000, BE 2,00,000 and C % 3,00,000. Profits for the year 2017-2018 amounting to 1,20,000 were distributed in the ratio of capitals without providing for the fallawing « UW) Interest on capitals: A 10,000, B220,000, Cz 30,000. i) Interest on drawings: AT 6,000, Bz 10,000, Cr 16,000. (lll) Xs salary of? 2,000 per month and B's commission of 8,000, ‘The partnership deed was silent as to the sharing of profits and losses. Pass the necessary single adjusting entry. 18, ¥ and Z who were sharing profits and losses in the ratio of 3: 1 respectively, decided to dissolve the firm on 31st March, 2019. Complete the following realisation account, partners’ capital account and bank account. Py De Realisation Account cr Paicusre ‘At Paricwars [arte TeSay mea 0.00 | By Say Ltine Ne 1 Toe Ne ae cecr) temo | Tate Creston 15000) ToReAle Loan ems) ‘7s | Lcantom ey sow | 2am eB Ae pees) ee in - a0, (esto De Patino Toba ‘oProt and Los Ne oss Yoroneaton Ne ToBan AeDr Bank Account cr Paiulare fat) Particulars ‘ert Te Batarce bid To Restestion Af (Asset essa} To Zs Coptat Ne (Cash bear 19. A, B and C were partners sharing profits and losses in the ratio of 5; 3 : 2 respectively. ‘On Sist December, 2016, their balance sheet stood as under © Balance Sheet as at 31st December, 2016 Asoats Ant ©) Surety Creates 25000 Employoes Proddert Fund en.00 Contingency Reserve som Employees Compensation Reser 50.000 Captal Aes s.000 a 130900 soo0 8 15.000 00 c 75.000 ‘Cdied on Ist May, 2047 and it was agreed that () Goodwill to be valued at2 }/ years’ purchase of last four years’ average profite which were I= 65,000, 11 =2 60,000, [fl = 80,000 and IV = 75,000. () Machinery be valued at & 1,40,000; patents be valued at ¥ 40,000; leasehold be valued at 21,25,000 on Let May, 2017. (Wi) Forthe purpose of calculating C's share in the profits to 2017, the profits in 2017 should be taken to have accrued on the same scale as in 2016. (Wy) Asum off 21,000 to be paid immediately to the executors of C and the balance to be paid in four equal half-yearly instalments together with interest @ 10% per annum. Pass the necessary journal entries to record the above transactions and C's executor's account for 2017. 20. Ui) Vikram Led issued 4,000, 10% debentures of € 100 each, payable as follows: €28 on application, 1.35 on allotment and € 40 on first and final call All the debentures were applied. Aniket, the holder of 200 debentures paid the entire amount on his holding on allotment. Pass entries ) POR Ltd issued 24,000, 6% debentures of € 100 each ata discount of 5% payable 25% on application, 20% on allotment and balance alter three months. Pass necessary journal entries in the books of the company, assuming that the amounts were received as they became due ° 21, Batra Ltd issued 20,000 shares of 100 each at a premium of 25 per share, payable as follows 320 per share on application £45 per share on allotment (including premium oft 15) 60 per share on first and final call (including premium of € 10) “The issue was oversubscribed by 10,000 shares. Applicants of 8,000 shares were allotted only: 1,000 shares and applicants of 1,000 shares were sent letters of regret. Excess amount received at the time of application was to be adjusted only against allotment and overpaymentsexceeding the amount due on allotment were to be refunded. All the money due at the time of allotment and call was duly received. Pass necessary entries in the books of the firm. w Or On 1st April, 2019, Vardhman Ltd made an issue of 2,00,000 equity shares of € 10 each at a premium off per share, payable as follows 70m application (including t2 premium); 4 on allotment {including ¢ 2 premium) £30on first call (ineluding 2 premium); ® 4 on second and final call (including ¢ 2 premium) ‘Applications were received for 3,00,000 shares, of which applications for 60,000 shares were ejected and their money were refunded. Rest of the applicants ware issued shares on pro-rata basis and their excess money was adjusted towards allotments. X, to whom 400 shazes were allotted, failed to pay the allotment money and his shares were forfeited after allotment. V; who applied for 960 shared failed to pay the two calls and on his such failure, his shares were forfeited. Z, who was allotted 500 shazes did not pay final call 1,000 forfeited shares reissued as fully paid on receipt of ¢ 8 per share, the whole of Y's shares being included. Prepare the cash book and pass the necessary joumal entries. 22. A and B were partners sharing profits and losses inthe ratio of 3: 2. On 31st December, 2017, their balance sheet was as llows « Balance Sheet as at 31st Decernber, 2017 tae ae | oe an or Uasersdine como ‘ ooze Parerchaciney com 2 S880 140000 Sox m0 fares 20100 | sir Osten tao Sinay rs Senos | Cas ‘0 hon ‘iam Qn the above date, C was admitted into partnership on the following terms (2) Cwas to pay € 40000 as capital and € 20000 as goodwill for 1/4th share in profits. ) Land and buildings were to be revalued at £90000 and plant and machinery at 50000. Stock was to be written down by ¥ 4000. Creditors included ¢ 1000 no longer payable. Ui) Capital of all partners of the new firm were ta be in the profit sharing ratio and for this purpose current accounts were to be opened. Propare revaluation account, partners’ capital accounts and balance sheet. (OrXavier, Yusuf and Zaman were parmers in a frm sharing profits in the ratio of 4 :3:2. On 1st April, 2015, their balance sheet was as follows Balance Sheet ‘asat lst April, 2015 bites ‘Ave = amt) ‘Suny Credors 441400 | Cash at Bank ‘33000 Capral ates ‘Sundry Datars mms xavier vaneoo ©) Provelonter Doxedulbetts (1.050) | 29,400 vos s0e00 Steck 28000 Zaman ecco 270000 Piet and Machinery 1.000 {Land ana Bulcieg 313400‘Yusuf had been suffering from ill health and thus gave a notice of retirement from the firm, An. agreement was, therefore, entered into as on 1st April, 2015, the terms of which were as follows () Thatland and building be appreciated by 10%. (W) The provision for bad debts is nolonger necessary. iil) That stock be appreciated by 20%. iv) That goodwill of the firm be fixed at € 54,000. Yusuf's share of the same be adjusted into Xavier's and Zaman's capital accounts, who are going to share future profits in the ratio of 2: 1. (v) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capitals of Xavier and Zaman will be in their profit sharing ratio. ‘Prepare revaluation account and partners’ capital accounts. Part B (Financial Statement Analysis) 23. From the following information, calculate the amount of cash flow from financing activities. (1) Giet ech, | Set herh, eet 201 Amt (| 2018 Amt (® guy Sere Conta: zomo~ | 18.9000 ‘Secures Perum Resene szoom | $00,000, 12x Deoereres 200,00 | 30000 Additional Information ‘Interest paid on debentures 26,000. (a) 736,000 (b) %2,20,000 (c) 784,000 (d) 71,36,000 24. Securities premium reserve is shown on the liabilities side in the balance sheet under the head (@) Reserve andSurplus (b) General Reserve (c) Share Capital (d) Current Liabilities (1) 25. The most commonly used tools for financial analysis are oy (@) horizontal analysis () vertical analysis (@) ratio analysis (2) Allofthese 26. Which of the following does not indicate long-term financial solvency? a (@) Debt-equity ratio (o) Debt ratio. (6) Liquidity ratio (@) Equity ratio 27. The... ratios are primarily measures of return. o (@) liquidity (b) activity (6) debt (€) profitabitiny 28. Stores and spare parts are recorded as an item under sub-head ‘......" and major-head '.....'. (2) 29. Which activities result in changes in the size and composition of the owners’ capital and ‘borrowings of the enterprise? @ 30. From the following balance sheet of Varsha Ltd as at 31st March, 2020, caleulate the return on investment for the year 2019-2020. ®Balance Sheet Noten. | sist March, 2020 Ame () EQUITY AND LIABILITIES ‘Shareholders! Funds (@) Shere Copal 1 s8so000 (@) Reserves ana Surplus Gsance of Statoment of Prot and Lass) 375000, 2.Non-current Lables 12% Deberuras szen000 Current Uabities Trade Peyenes Tots ASSETS "1 Non-cunent Assets (a) Feed Assota 2 rasooeo (b) Ner-curant investment 3 2.25000 2 Currant Assets Tot! ar ss000 ‘Notes to Accounts 4 Share Capital ‘Equty Shere Cap Preference Share Capt 2 Tangible Fed Assots hac Aasete (Depreciation 3. Non-current Investment 10% Trade Investment 104 Otter ivestment Face value 1,05.) Additional Information [Net profit before tax but after interest for the year 2019-20 is €6,07,500 and tax rate is 40%6. Or From the following, calculate () Current ratioand Pariclors arnt Naneuman sats soon | Te Asse so000 Stareatsers Fs Noncuret uote ‘2om00 Reverue tam Operations 31. Mention about any four parties which are interested in financial statement analysis. w Qr From the following information for the year ended 31st March, 2018, prepare notes to accounts on finance costs Paulas ‘art ‘rarest pad en Cash Creat 710,000, lntrest paid on Debentures 175.000, ‘Commitment Cnarges ‘1,000 Bank Crarges 2250 ‘marest paid on Publ Bapashs 49.00 (Commision pal fr Dnt Motsaton ‘8000‘82. Prepare a cash flow statement from the following information of Mr Rajesh (a proprietor) Balance Sheet ‘Stet March, | Stst March, bomen 2o19@ | 2020@ Capt 4000 5.000, ‘Bank Loan ‘85.000 20.000 Mr Rajseis Loan 20000 25000 Creators Depreciation Provision () During the year 2019-20, Mr Rajesh had withdrawn 21,000 for personal use, Ul) Apartofthe machinery costing ® 10,000 (accumulated depreciation € 8,000) was sold for 5,000. Answers to 0 2 20 5 © ea 20 Be 8. 1. @) 12, exeatos 12. (@ 15. Share of Profit: (Or Share of Profit: %, Y,Z= € 141,667 each 16, Cash Book balance = €9,0,000 17. Debit B's Capital Afe with € 2000, C's Capital A/c with t 26,000 and credit A's Capital Afe with € 24,000, 19. Deceased partners share : Goodwill =T 35000; Profits=T 5,000; Reserves =T 6,000, Profit on revaluation =T 5000; Total amount due = 123,000 ‘Goodwill written-off =¥ 5,00 Half yearly interest:1=% 5,00, u=T 1250 22, Profit on revaluation = © 17,000; Balance in Capital Ales A= £03380, Balance Sheet Total= €249,750 (Or Profiton revaluation = ¥ 25,660; Capital A/cs Xavier = € 197,100,Zaman = £98,550; Yusu's Loan Afe= € 1.16850 23.4) 24. (@) 25. @) 28 27. @ 2B. investors, current assets 30, 23595, Or (25:1 5 times 31. OrFinance coms =? 343,000 32. Cash flow from operating sctvities = 2 43000 (Cash flow from investing activities = 25,000, ‘Cash flow from financing activities = 2 36,000 t90100,0 51,780;