Accounts Class - XII (CBSE) - 1996

Q1) Define partnership. State the main provisions of the Partnership Act relating to partnership accounts in the absence of partnership deed. (Marks 3)

Q2) A and B are partners sharing profits in the ratio of 3 : 2 with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual salary of Rs. 2,500. During 1995, the profits of the year prior to calculation of interest on capital but after charging B's salary amounted to Rs. 12,500. A provision of 5% of the profits is to be made in respect of manager's commission.
Prepare an account showing the allocation of profits and partner's capital account. (Marks 5)

Q3) A and B are partners sharing profits in the ratio of 3 : 2. C is admitted as a partner. The new profit - sharing ratio among A, B and C is 4 : 3 : 2. Find out the sacrificing ratio.

Q4) Mention the items that may appear on the debit side of the capital account of a partner when the capitals are fluctuating. (Marks 2)

Q5) A, B and C are partners sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 1995, their Balance Sheet was as follows :

They admit D into partnership on the following terms :
1. Furniture, Investments and Machinery to be depreciated by 15%.
2. Stock is revalued at Rs. 48,000.
3. Goodwill to be valued at Rs. 26,000.
4. Outstanding rent amounted to Rs. 1,800.
5. Prepaid salaries Rs. 800.
6. D to bring Rs. 32,000 towards capital for 1/6 share and partners to re-adjust their capital accounts on the basis of their profit-sharing ratio.
7. Adjustment of capitals to be made by cash.
Prepare Revaluation Account, Partners, Capital Accounts, Cash Account and Balance Sheet of the new firm.

ners sharing profits and losses in the ratio of 3 : 2 : 1. On 31st March, 1995, their Balance Sheet was as follows :

The firm was dissolved on 1st April, 1995.
1. There was a Joint Life Policy of Rs. 60,000. The policy was surrendered for Rs. 15,000.
2. The assets were realised as under : Stock Rs. 47,000; Goodwill Rs. 12,000; Debtors 60% of the book value; Machinery Rs. 90,000.
3. Liabilities were paid in full.
4. The expenses on realisation amounted to Rs. 400.
You are required to prepare the Realisation A/c, Partners' Capital Accounts, and Bank A/c. headings will you show the following items in the Balance Sheet of the company:
(i) Goodwill (ii) Unclaimed Dividends
(iii) Provision for Tax (iv) Share Premium Account
(v) Loose Tools./strong> Explain the meaning of "Debentures issued as collateral security" by company. Show its treatment in Balance Sheet. (Marks 3)

Q8) 'N' Ltd. issue 10,000 debentures of Rs. 100 each at a discount of 10% with the condition that they will be redeemed at a premium of 5% after the expiry of three years. Pass the necessary journal entries for the issue and redemption of these debentures after the expiry of three years.

Q9) A limited company invites applications for 50,000 equity shares of Rs. 10 each payable as follows :
On application Rs. 3
On allotment Rs. 4
On first call Rs. 2
On final call the balance
Applications were received for 55,000 shares. Allotments were made on the following basis :
(i) To applicants for 35,000 shares - in full.
(ii) To applicants for 20,000 shares - 15,000 shares.
Excess money paid on application was utilised towards allotment money.
A shareholder who was allotted 1,500 shares out of the group applying for 20,000 shares failed to pay allotment money and money due on calls. These shares were forfeited. 1,000 forfeited shares were re-issued as fully paid on receipt of Rs. 8 per share.
Show the journal entries in the books of company. (Marks 12)

Q10) What is meant by 'Analysis of Financial Statements'? Give its advantages. (Marks 6)

Q11) State the significance and method of calculation of any two of the following :
(i) Current ratio (ii) Operating ratio
(iii) Return on investment. (Marks 6)

Q12) From the following details, calculate (i) Opening stock, (ii) Closing stock:
Stock turnover ratio 6 times.
Gross profit 20% on sales.
Sales Rs. 1,80,000.
Closing Stock is Rs. 15,000 in excess of opening stock. (Marks 3)

Q13) On the basis of following information, calculate
(i) Gross profit ratio, (ii) Working capital turnover ratio, (iii) Debt equity ratio. (Marks 6)

Q14) From the following Balance Sheet of Avinash Ltd., you are required to prepare.
(i) A statement of changes in working capital and (ii) Funds flow statement.

Additional information :
A piece of machinery costing Rs. 50,000 was sold for Rs. 30,000, accumulated depreciation thereon being Rs. 10,000. erations' from the following profit and loss Account.

Profit and Loss Account for the year ending on 31st March, 1995

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OR
Prepare a Cash Budget for the month of May and June using following information :

i) Cash Balance as on 1st May, 1995 was Rs. 8,000.
(ii) 75% of the sales are realised in the same month and rest in the following month.
(iii) Period of Credit from supplier is one month.
(iv) Lag in payment of wages is one month. (Marks 6)

Q17) From the following information, prepare a Comparative Income Statement: (Marks 5)