Board Paper of Class 12-Commerce 2020 Accountancy Delhi(Set 2) - Solutions

Which of the following does not result into reconstitution of a firm?
(a) Dissolution of partnership firm.
(b) Dissolution of partnership.
(c) Change in profit-sharing-ratio of existing partners.
(d) Death of partner. VIEW SOLUTION

No debenture redemption reserve is required for debentures issued by :
(a) manufacturing companies
(b) infrastructure companies
(c) banking companies
(d) trading companies VIEW SOLUTION

What is meant by 'Issued Capital' ? VIEW SOLUTION

Harit and Leela are partners in a firm sharing profits and losses in the ratio of 2 : 3. Yash was admitted as a new partner for 1/5^th share in the profits of the firm. Yash acquires his share from Leela. The new profit sharing ratio of Harit, Leela and Yash will be :
(a) 2 : 3 : 5
(b) 2 : 2 : 1
(c) 5 : 3 : 2
(d) 3 : 5 : 1 VIEW SOLUTION

Vanya Ltd. forfeited 20,000 equity shares of ₹ 100 each for non-payment of first and final call of ₹ 40 per share. The maximum amount of discount at which these shares can be re-issued will be :
(a) ₹ 8,00,000
(b) ₹ 12,00,000
(c) ₹ 20,00,000
(d) ₹ 20,000 VIEW SOLUTION

Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. The firm earned a profit of ₹ 30,000 during the year. Mohit's share in the profit will be :
(a) ₹ 20,000
(b) ₹ 10,000
(c) ₹ 15,000
(d) ₹ 18,000  VIEW SOLUTION

In case of retirement of a partner, profit or loss on revaluation of assets and re-assessment of liabilities is distributed among _________ partners in ___________ ratio. VIEW SOLUTION

___________ means any offer of securities to a select group of persons by a company other than by way of public offer. VIEW SOLUTION

Madura Ltd. decided to redeem its 10,000, 10% debentures of ₹100 each at a premium of 8%. The minimum amount transferred to debenture redemption reserve will be :
(a) ₹ 10,00,000
(b) ₹ 10,80,000
(c) ₹ 2,70,000
(d) ₹ 2,50,000 VIEW SOLUTION

Jaipur Club has a prize fund of ₹ 6,00,000. It incurs expenses on prizes amounting to ₹ 5,20,000. The expenses should be
(a) debited to income and expenditure account.
(b) presented on the asset side of the balance sheet.
(c) debited to income and expenditure account and presented on the asset side of the balance sheet.
(d) deducted from the prize fund on the liability side of the balance sheet. VIEW SOLUTION

Disha and Abha were partners in a firm. Farad was admitted as a new partner for 1/5^th share in the profits of the firm. Farad brought proportionate capital. Capitals of Disha and Abha after all adjustments were ₹ 64,000 and ₹ 46,000 respectively. Capital brought by Farad was :
(a) ₹ 22,000
(b) ₹ 27,500
(c) ₹ 55,000
(d) ₹ 28,000 VIEW SOLUTION

Which of the following is not a capital receipt?
(a) Donations for tournament
(b) Donations for building fund
(c) Life membership fee 
(d) Entrance fees VIEW SOLUTION

Give the meaning of 'Calls-in-Advance'. VIEW SOLUTION

Kabir and Farid are partners in a firm sharing profits in the ratio of 3:1 on 1-4-2019 they admitted Manik into partnership for 1/4^th share in the profits of the firm. Manik brought his share of goodwill premium in cash. Goodwill of the firm was valued on the basis of 2 years purchase of last three years average profits. The profits of last three years were:

2016-17	₹ 90,000
2017-18	₹ 1,30,000
2018-19	₹ 86,000

During the year 2018-19 there was a loss of ₹ 20,000 due to fire which was not accounted for while calculating the profit.
Calculate the value of goodwill and pass the necessary journal entries to the treatment of goodwill.

OR

Raka, Seema and Mahesh were partners sharing profits and losses in the ratio of 5:3:2. With effect from 1^st April, 2019, they mutually agreed to share profits and losses in the ratio of 2:2:1.
On that date, there was a workmen's compensation fund of ₹ 90,000 in the books of the firm. It was agreed that:
(i) Goodwill of the firm be valued at ₹ 70,000.
(ii) Claim for workmen's compensation amounted to ₹ 40,000.
(iii) Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 40,000.
Pass necessary journal entries for the above transactions in the books of the firm. VIEW SOLUTION

How will the following items be treated while preparing the financial statements of a not-for-profit organization for the year ended 31^st March, 2019?
 

	As at 31-3-2018 (₹)	As at 31-3-2019 (₹)
Creditors for medicines	33,000	67,000
Stock of medicines	27,000	43,000

During 2018-19, the payment made to the creditors was ₹ 4,25,000. VIEW SOLUTION

From the given Receipts and Payments Account and additional information of Shine Club for the year ended 31^st March, 2019, prepare Income and Expenditure Account for the year ended 31^st March, 2019.
 

Receipts and Payments Account of Shine Club for the year ended 31st March, 2019
Receipts		Amount (₹)	Payments	Amount (₹)
To balance b/d		50,000	By Furniture & equipments	1,22,000
To donations		45,000	By Salaries	32,000
To subscriptions :			By balance c/d	13,400
2017-18	1,600
2018-19	60,000
2019-20	5,000	66,600
To interest received		5,800
		1,67,400		1,67,400

Additional Information :
(i) Furniture and equipments were purchased on 1-10-2018. Depreciation @ 10% p.a. was to be provided on furniture and equipments.
(ii) Subscriptions in arrears for the year 2018-19 were ₹ 2,000
(iii) Outstanding salary ₹ 6,000. VIEW SOLUTION

Tripti, Atishay and Radhika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as on 31-3-2019 was as follows:
​

Balance Sheet of Tripti, Atishay and Radhika as on 31st March, 2019.
Liabilities		Amount (₹)	Assets	Amount (₹)
Capitals :			Plant and Machinery	5,00,000
Tripti	3,00,000		Stock	1,10,000
Atishay	2,00,000		Sundry debtors	60,000
Radhika	1,00,000	6,00,000	Cash at bank	40,000
General Reserve		50,000
Sundry creditors		60,000
		7,10,000		7,10,000

Tripti died on 30^th June, 2019. According to the partnership deed, the executors of the deceased partner are entitled to :
(a) Balance in partner's capital account.
(b) Salary @ ₹ 12,500 per quarter.
(c) Share of goodwill calculated on the basis of twice the average of past three years' profits and share of profits from the closure of the last accounting year till the date of death on the basis of last year's profit. Profits for 2016-17, 2017-18 and 2018-19 were ₹ 1,00,000, ₹ 1,50,000 and ₹ 2,00,000 respectively.
(d) Tripti withdrew ₹ 20,000 on 1^st May, 2019 for her personal use. Prepare Tripti's Capital Account to be rendered to her executors. VIEW SOLUTION

Puneet and Akshara were partners in a firm sharing profits and losses in the ratio of 2:3. The following was the balance sheet of the firm as on 31st March, 2019.
 

Balance sheet of Puneet and Akshara as on 31^st March, 2019.

Liabilities		Amount (₹)	Assets	Amount (₹)
Capitals:			Sundry Assets	2,00,000
Puneet	90,000
Akshara	1,10,000	2,00,000
		2,00,000		2,00,000

The profits 40,000 for the year ended 31^st March, 2019 were divided between the partners without allowing interest on capital @ 5% p.a. and commission to Akshara @ ₹ 1,000 per quarter.
The drawings of the partners during the year were :
Puneet ₹ 2,500 per month.
Akshara ₹ 10,000 per quarter.
Showing your workings clearly, pass necessary adjustment entry in the books of the firm. VIEW SOLUTION

Naina, Uday and Tara were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm was dissolved on 31-3-2019. After transfer of assets (other than cash) and external liabilities to Realization Account, the following transactions took place :
(a) A typewriter completely written off from the books was sold for ₹ 4 ,000.
(b) Loan of ₹ 30,000 advanced by Uday to the firm was paid back.
(c) Tara was to get remuneration of ₹ 42,000 for completing the dissolution process and for bearing realization expenses. (d) Creditors of ₹ 23,000 took over all the investments at ₹ 12,000. Remaining amount was paid to them in cash.
(e) Uday agreed to pay loan of Mrs. Uday ₹ 45,000.
(f) Profit and Loss Account balance of ₹ 20,000 appeared on the asset side of the balance sheet.

Pass necessary journal entries for the above transactions in the books of the firm. VIEW SOLUTION

(a) On 1^st April, 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31^st March, 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
Pass the necessary journal entries for redemption of debentures.

(b) Hero Ltd. purchased plant and machinery for ₹ 18,00,000 from Pearl Machines Ltd. payable ₹ 3,00,000 by drawing a promissory note and the balance by issue of 9% debentures of ₹ 100 each at a premium of 20%. 
Pass the necessary journal entries in the books of Hero Ltd. for the above transactions.

OR

(a) BGP Ltd. invited applications for issuing 15,000, 11% debentures of ₹ 100 each at a premium of ₹ 50 per debenture. The full amount was payable on application. Applications were received for 25,000 debentures. Applications for 5,000 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on pro-rata basis.
Pass the necessary journal entries for the above transactions in the books of BGP Ltd. 

(b) Agam Ltd. issued 40,000 9% debentures of ₹ 100 each on April 1, 2018 at a discount of 10%, redeemable at a premium of 10%.
Assuming that the interest was paid half yearly on September 30 and March 31 and the tax deducted at source was 10%, give journal entries relating to debenture interest for the half year ended March 31, 2019. VIEW SOLUTION

Achla and Bobby were partners in a firm sharing profits and losses in the ratio of 3:1. On 31^st March, 2019, their balance sheet was as follows:

Balance Sheet of Achla and Bobby as on 31st March, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Creditors		1,10,000	Cash at bank	60,000
General Reserve		40,000	Debtors	40,000
Workmen's compensation reserve		50,000	Stock	45,000
Capitals :			Furniture	1,55,000
Achla	4,00,000		Land & Building	5,00,000
Bobby	2,00,000	6,00,000
		8,00,000		8,00,000

On 1^st April, 2019, they admitted Vihaan as a new partner for 1/5^th share in the profits of the firm on the following terms:

(a) Vihaan brought ₹ 1,00,000 as his capital and the capitals of Achla and Bobby were to be adjusted on the basis of Vihaan's capital ; any surplus or deficiency was to be adjusted by opening current accounts.
(b) Goodwill of the firm was valued at ₹ 4,00,000. Vihaan brought the necessary amount in cash for his share of goodwill premium, half of which was withdrawn by the old partners.
(c) Liability on account of workmen's compensation amounted to ₹ 80,000.
(d) Achla took over stock at ₹ 35,000.
(e) Land and building was to be appreciated by 20%.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm on Vihaan's admission.

OR

Gita, Radha and Garv were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31^st March, 2019, their balance sheet was as follows: ​

Balance Sheet of Gita, Radha & Garv as on 31st March, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Sundry Creditors		60,000	Cash	50,000
General Reserve		40,000	Stock	80,000
Capitals :			Debtors	40,000
Gita	3,00,000		Investments	30,000
Radha	2,00,000		Buildings	5,00,000
Garv	1,00,000	6,00,000
		7,00,000		7,00,000

​
Radha retired on the above date and it was agreed that:
(a) Goodwill of the firm be valued at ₹ 3,00,000 and Radha's share be adjusted through the capital accounts of Gita and Gary.
(b) Stock was to be appreciated by 20%.
(c) Buildings were found undervalued by ₹ 1,00,000.
(d) Investments were sold for ₹ 34,000.
(e) Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm on Radha's retirement. VIEW SOLUTION

Premier Tools Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
On application - ₹ 5 per share (including premium)
On allotment - ₹ 3 per share
On first & final call – Balance
Applications were received for 2,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application were adjusted towards sums due on allotment.
All calls were made and duly received except allotment and first and final call from Naveen who applied for 7,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for ₹ 48,000 as fully paid.
Pass the necessary journal entries for the above transactions in the books of Premier Tools Ltd. Open calls-in-arrears account wherever required.

OR

Concept Stationary Ltd. invited applications for issuing 3,00,000 shares of ₹ 10 each at a premium of ₹ 3 per share. The amounts were payable as follows:
On application and allotment – ₹ 7 per share.
On first & final call – balance (including premium of ₹ 3)
Applications were received for 4,00,000 shares & allotment was made as follows:
(i) To applicants for 80,000 shares – 80,000 shares.
(ii) To applicants for 40,000 shares – nil
(iii) Balance of the applicants were allotted shares on pro-rata basis.
Excess money received with applications was adjusted towards sums due on first and final call.
Amit, who belonged to category (i) and was allotted 4,000 shares and Veni, who belonged to category (iii) and was allotted 4,400 shares failed to pay the first and final call money. Their shares were forfeited. The forfeited shares were re-issued at ₹ 7 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company. VIEW SOLUTION