BEST HIGHER SECONDARY SCHOOL First Term Examination __ Jan 2013 Accountancy 154 (E) Std : XII Time

3.00 hrs [Maximum Marks 100 ] Instructions : 1. All the questions are compulsory 2. Use scale and pencil wherever necessary 3. Marks of each question are indicated at right side. Section A Marks of the following 1 to 10 objective questions are equal Each question carries One mark. Answer them by finding out the right option from the given options. 1 How many maximum partners can be admitted in non-banking partnership firm ? (A) 2 (B) 7 (C) 10 (D) 20 2 What is Workers Accident Compensation Fund (credit balance) for partnership firm ? (A) Goodwill (B) Accumulated Loss (C) Accumulated Profit (D) Expenses 3 What is the formula for finding out Weighted Average Profit ? (A) Total weighted profit Total weight (B) Total weighted profit Total weight (C) Goodwill Numbers of years purchased of weighted average profit (D) Total profit Number of years. 4 Prabha and Sonal are partners sharing profit and loss in the ratio of 5:3. They admitted Shobha as a new partner in the partnership and decided new profit sharing ratio as 3:2:1. Determine the sacrifice share ratio of Prabha and Sonal. (A) 7:1 (B) 1:7 (C) 2:5 (D) 3:1 5 At the time of dissolution of a partnership firm, which liability is to be paid first from that remaining surplus asset ? (A) Wifes loan (B) Partners Loan (C) Dissolution expenses (D) Payment of third party 6 Amount received along with share application from public has to kept deposited in which bank by opening separate account for the purpose ? (A) Foreign Bank (B) Scheduled Bank (C) Cooperative Bank (D) Local Bank 7 What kind of liability partner has in the partnership firm ? (A) Limited (B) Unlimited (C) Confined To Capital (D) None of Above 8 There are many important events which affect efficiency and profitability of the enterprise but are not recorded in the accounts at all. .. is an example. (A) Retirement or death of an efficient Managing Director (B) Purchase (C) Sales (D) Goodwill 9 The balance of lease hold building on 31-12-08 is Rs 70,000 ( Acquired on 01-07-2006 for 5 years ). What amount will be written of during the year. (A) Rs 14,000 (B) Rs 7,000 (C) 3,500 (D) Rs 20,000 10 Due to change in profit sharing ratio between partners A,B & C, sacrifice of B andC comes to 1/15 each. The gain received by A is :(A) 1/15 (B) 2/30 (C) 2/15 (D) Zero SECTION B Answer in one sentence to the following questions from 11 to 20. Each carries One mark 11 Mention the meaning of Partnership.

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What is Gaining Ratio ? What other name is called for authorized capital? What is dissolution of Partnership Firm ? Who carries out management of company ? When is memorandum of revaluation a/c , prepared ? Write the formula for calculating Super Profit ? What is the other name for Realisation A/c ? Name the two methods for the dissolution of a partnership firm ? What is Reconstruction of Partnership ? 14 SECTION C Answer in brief to the questions from 21 to 27, Each question carries two marks. Mohan, Sohan and Aman are partners in a firm. Amit gets a 1/5th share of Sohan and Mohan gets double the share of Aman. If the total profit of the firm at the end of year is Rs 84,000; find the share of profit received by each partner. Hemant, Himanshu and Anshul are partners sharing profits and losses in the ratio of 2:2:1. Hemant retired and his share of Rs.30000 is purchased by other partners. For the purpose, Anshul pays Rs.20000 and Himanshu pays Rs 10000. Calculate new profit sharing ratio between the remaining partners. Explain the accounting treatment for realisation of unrecorded assets and payments for unrecorded liabilities in the balance sheet when the firm gets dissolved. OR How would you deal with the following items of balance sheet in case of dissolution of partnership firm. (A) General Reserve (B) Depreciation Fund Jay and Kishan are partners sharing profits and losses in the ratio of 2:1. They admitted Shankar with share in profit of the firm. Out of his share, Shankar will obtain 1/15 share from Jay and balance from Kishan. Determine new profit sharing ratio amongst the partners. Ram and Rahim are partners of a firm, sharing profits and losses in the ratio 3:2. From the following information calculate value of Goodwill on the basis of four years purchase of average profit of five years. Year 2001 2002 2003 2004 2005 Profit (Rs) 9,000 8,000 20,000 15,000 10,000 X,Y and Z are equal partners. Their total capital is Rs 2,00,000 and proportion of Capital is 5:3:2. The firm pays 6 % annual interest on Capital. Z received Rs 62,400 including Interest. What total amount including interest would be received by X ? The Accountant of a Firm, has calculated Rs 2,400 as a commission to be paid to the Manager @ 10 % after deduction of such commission from Profit. But, before giving any accounting treatment, it found that bad debt of Rs 1,100 is calculated in excess. Calculate the following fter rectification of error :I. Commission of the Manager. II. If partner Jignesh has 2/5 share in profit, what amount of profit would he receive ? SECTION D 18 Following are the short answer type question from 28 to 33. Calculate as directed. Each question carries three marks. By using the appropriate average, determine the value of goodwill on the basis of six year purchase.

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Year 2005 2006 2007 2008 Profits 25,000 30,000 22,000 48,000 OR Write short notes :- Capitalization of average profit method for valuation of goodwill Write the differences between first method and second method ( Alternative method) in dissolution. State whether the following statements are True or False. If the statement is false, write the true statement. i. The Court can interfere with regards to any matter of dissolution of a partnership firm. ii. In partnership fir, the liabilities of all partners are confined to their Capital only. iii. The loan of partners wife from the womans personal wealth of possession is paid prior to any payment towards the third party liability. Palak and Maria are partners sharing profits and losses in the ration of 2:1. They admitted Sindhu for share in profit of the firm. Show calculation of new profit sharing ratio of partners. Kinjal, Kajal and Kamini are partners of a partnership firm sharing profit in the proportion of 4:4:2. The value of Goodwill is disclosed at Rs 20,000 in their books. Partners have decided to change their profit sharing ratio to 4:3:3 . At this time during revaluation of goodwill, the value of goodwill is determined at Rs 1,20,000. Pass necessary journal entries to disclose the new value of goodwill in the books. At the time of reconstruction of partnership value of land is increased by Rs 10,000. Value of Plant is decreased by Rs 3,000 and unrecorded asset of Rs 2,000 is to be recorded. Find out Profit or Loss of Revaluation account. 24 SECTION E Questions from 34 to 36 are essay type. Each question is of eight marks. X and Y are partners of a partnership firm sharing profit in the ratio of 3:2. The balance sheet of partnership as on 31-03-2008 is as under:Balance Sheet as on 31-03-2008 Liabilities Amount (Rs) Assets Amount (Rs) Capital Accounts : Land & Building 60,000 Xs 40,000 Debtors 11,000 Ys 30,000 70,000 -BDR 1,000 10,000 Provident Fund 9,000 Stock 18,000 Creditors 21,000 Cash Balance 12,000 Bank Overdraft 25,000 Bills Receivable 25,000 1,25,000 1,25,000 On the date of balance sheet, X and Y admitted a New partner Z on the following conditions:i. Z would bring Rs 10,000 in Cash as Capital ii. Z will be entitled to 1/5th the share in the future profit of the firm. The Value of Goodwill is determined at Rs 10,000. iii. Z is not able to bring goodwill in cash. Partners decided to disclose goodwill at its full value. iv. Land and Building are valued at Rs 65,000 v. Rs 3000 from Creditors are not to be paid now and is to be recorded in books accordingly. Prepare necessary accounts and after that prepare the new balance sheet.

35 A,B and C are partners sharing the Profit and Loss in equal proportion. The Balance Sheet of the their firm as at 31-03-2008 is as under:Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital : Land & Building 60,000 A 50,000 Plant & Machinery 60,000 B 30,000 Investments 6,000 C 20,000 70,000 Debtors 60,000 Profit and Loss A/c 6,000 -BDR 12,000 48,000 Bank Overdraft 60,000 Bills Receivable 6,000 Creditors 50,000 Cash Balance 36,000 2,16,000 2,16,000 On 01-04-2008 , C has retired and the following terms are agreed upon:1. The Land and Building valued at Rs 80,000 2. Reduce the book value of the Plant & Machinery by 20 % 3. total value of goodwill is determined at Rs 30,000. The value of the goodwill is not shown in the books. 4. Commission income is accrued to Rs 10,000 yet to be received and recorded in the books. 5. 50 % of the due to C, are payable in Cash immediately which the existing partners will bring in their gain ratio, while his remaining dues will be retained as his 15 % Loan. Prepare necessary accounts and balance sheet after Cs retirement. 36 A company of Dahod issued 2,00,000 equity shares of Rs 10 each to public. Company called Rs 3 per share on application, Rs 4 per share on allotment and Rs 3 per share on first and final call. Company received applications for 2,40,000 equity shares from public. Excess applications were rejected and money paid on them was refunded. Iqbal, who had applied for 700 shares, had paid full Rs 10 per share along with application. Company had allotted him all the shares applied for. Manoj Lakhani, who was allotted 800 shares, had paid amount due on first and final call along with share allotment money. Except this, amount due on allotment and calls were duly received from time to time. Pass necessary journal entries in the books of company for above transactions. OR Priya Limited Company issued 60,000 equity shares of Rs 10 each at a premium of Rs 40 per share. Amount called up per share was as under:Rs 33 on application [ including premium of Rs 30] Rs 14 on allotment [ including premium of Rs 10 ] Rs 3 on final call All the sums due were duly received except money due on allotment and final call on 900 shares held by Krish. After carrying out necessary formalities, Company forfeited Krishs shares. These shares were reissued to Harish at 20 % premium as fully paid up. Write journal entries for above transactions in the books of Company [ without narration] SECTION F Questions from 37 to 38 are essay type. Each question carries twelve marks. 37 From the trial balance as on 31-03-08 and adjustments, prepare Trading Account, Profit

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and Loss A/c , Profit & Loss appropriation A/c and Balance Sheet of Partnership firm of Asha and Natasha. The Trial Balance as on 31-03-2008 Debit Balance Amt. Rs Credit Balance Amt. Rs Opening Stock 60,000 Capital Purchases 8,00,000 Asha 1,00,000 Debtors 3,00,000 Natasha 1,00,000 Cash at Bank 24,000 Creditors 1,00,000 Rent & Taxes 6,000 Sales 12,00,000 Insurance Premium 16,000 Bills Payable 10,000 Salaries 84,000 Provident fund 15,000 Carriage Inward 36,000 Bank overdraft 12,000 Carriage Outward 42,000 Outstanding Salary 8,000 Receivable Claim 10,000 Advertisement Suspense A.c 18,000 Furniture & fitting 46,000 (Cost price Rs 60,000) Office Equipment 20,000 (Cost price Rs 30,000) Bills receivable 12,000 Bad Debts 8,000 Electricity Expenses 4,000 12 % Investment (01-10-07) 12,000 Wages 30,000 Pre paid Insurance 2,000 Investment of Provident Fund 15,000 15,45,000 15,45,000

Adjustments :1. The Closing Stock was Rs 1,50,000 2. In Reference to receivable claim, it was settled for Rs 4,000 with Insurance Company. 3. From Advertisement suspense account, write off 50 % as advertisement expenses of the current year. 4. Calculate 5 % depreciation on furniture and fittings and office equipments as per straight line method. 38 Deven and Hemang are partners of a partnership firm sharing a profit in the proportion of 3:2. From the under noted trial balance and adjustments as on 31-03-2005, prepare the final accounts of the firm. Trial Balance of Deven and Hemang as on 31-03-2005 Name of Account L.F No Debit Rs Credit Rs Capital and drawings : Deven 9,000 40,000 Hemang 8,000 35,000 Debtors and Creditors 45,000 35,000 Stock [ 01-04-2004 ] 25,000 Goods Return 1,000 1,500

Cash and Bank Bills Purchase and Sales Discount Bad debt and Bad Debt Reserve Machines Depreciation on Machines Furniture Sundry Expenses Leasehold building [ from 01-10-2002 For 5 years ] Liability for unpaid wages 8 % Tanvee Loan [ from 1-11-2004] Goodwill Trading Expenses Rent and Taxes Carriage Inward Bank Interest Insurance Premium Salary Wages Prepaid Insurance

1,000 7,000 70,000 200 200 18,250 1,750 6,000 750 7,000

4,000 8,000 1,30,000 150 650

1,000 15,000 36,000 1,250 5,000 300 100 400 12,000 15,000 100 2,70,300 2,70,300

Adjustments :1. The value of closing stock is Rs 75,000, the market value is 10 % more 2. Partners are allowed 10 % annual interest on the capital and the interest on drawings is charged in the same way: Devan Rs 400, Hemang Rs 350 3. Provied 5 % bad debts reserve on debtors 4. Outstanding Expenses: Salary Rs 400