ANSWER KEY FOREIGN SET

Q. SET No. MARKING SCHEME-2007-08

ACCOUNTANCY

FOREIGN-67/1/1-2-3

EXPECTED ANSWERS / VALUE POINTS 

DISTRI-

BUTION

OF MARKS

67/2/1 67/2/2 67/2/3
      PART A

(Not for profit organisations, partnership firms and company accounts)

 
1 4 3 Q. State any two……………….Payments A/c.

 

Ans. Characteristics of a Receipts and Payments A/c: (Any two)

(a) It is a summary of the cash book.

(b) It records items of both capital and revenue nature.

(c) It records all cash transactions whether of current, past or future years.

(d) It starts with the opening balance of cash/ bank and ends with the closing balance of cash/ bank.

(e) It is a real A/c.

 

 

 

 

½ x 2

=

1 mark

2 5 4 Q. Chander and Suman……………….Valid or not.

 

Ans. Chander’s claim is not valid. He will get interest on loan @6% p.a.

1 mark
3 1 3 Q. State any two factors………………..of a firm.

 

Ans. Any two factors in the form of a statement:

(a) Location of business.

(b) Skill of management.

(c) Favourable contracts.

(d) Quality.

(e) Access to supplies.

 

 

 

½ x 2

=

1 mark

4 2 2 Q. State any two items…………….a retiring partner.

 

Ans. (Any two)

(a) Drawings.

(b) Interest on drawings.

(c) Loss on revaluation.

(d) Goodwill written off.

 

 

 

½ x 2

=

1 mark

5 3 1 Q. State with ……………………….IPO.

 

Ans. No,

Because the shares should be of a class already issued.

½ x 2

=

1 mark

6 7 7 Q. Show how the ………….as on 31.3.2007.

 

Ans. An extract of the Balance Sheet of Nav Ratna Club as on 31.3.2007.

Liabilities Amount

(Rs.)

Assets Amount

(Rs.)

Prize Fund                             2,00,000

(+) Income from prize Fund

Investments                              40,000

(-) Prizes awarded                    58,000

 

1,82,000

Prize Fund

Investments        

2,00,000

 

 

 

 

 

 

 

 

½ mark for prize fund + ½ mark for prize fund investment + ½ mark for income + 1.2 mark for prizes awarded

(½ + ½ + ½ + ½ = 2 marks)

 

7 8 8  

Q. X Ltd. forfeited 900 equity shares……….of the shares.

 

Ans.                               Journal of X Ltd.

Date Particulars F Dr. (Rs.) Cr.(Rs.)
  Share capital A/c                Dr.

    Share Forfeited A/c

    Share allotment A/c

    Share first call A/c

(900 shares forfeited due to non-payment of allotment and first call)

                   OR

Share capital A/c                Dr.

    Share Forfeited A/c

    Calls in Arrears A/c

(900 shares forfeited due to non-payment of allotment and first call)

  67,500

67,500

 

22,500

27,000

18,000

22,500

45,000

  Bank A/c                           Dr.

    Share Capital A/c

   Securities Premium A/c

(500 shares reissued fully paid)

  81,000  

67,500

13,500

  Share Forfeited A/c               Dr.

   Capital Reserve A/c

(Share Forfeited transferred to capital reserve)

  22,500  

22,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 x 3 =

3 marks

 

 

8 6 6 Q. Surya Ltd. acquired………………..Surya Ltd.

 

 

 

 

 

Ans.                                Journal of Surya Ltd.

Date    Particulars F Dr. (Rs.) Cr.(Rs.)
  Assets A/c                                       Dr.

Goodwill A/c                                  Dr.

       Sundry Creditors A/c       

        Chanda Ltd.A/c

(Machinery purchased from Y Ltd.)

  3,00,000

50,000

 

20,000

3,30,000

  Chanda Ltd A/c                                  Dr.

     Bills Payable A/c

(Payment paid by accepting a bills payable)

  1,65,000  

1,65,000

  Chanda Ltd. A/c                                 Dr.

     7% Debentures A/c

     Securities premium A/c

(Issue of debentures at a premium of 10%)

  1,65,000  

1,50,000

15,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 x 3 =

3 marks

 

 

 

 

 

 

 

 

9 11 10 Q. Shiv and Shankar ……………………………..adjustment entry.

Ans.                                            Journal

Date Particulars LF Dr. (Rs.) Cr.(Rs.)
  Shiv’s current A/c           Dr.

     Shankar’s current A/c  

(Omission of interest on capital and interest on drawings, now adjusted)

  6,636  

6,636

 

Note: No marks should be given for the journal entry if the examinee has written capital accounts instead of current accounts.

 

Working notes:

Partners Cr. interest on

capital

Dr. interest on drawings Dr. profits Net Effect
Dr. Cr.
Shiv

Shankar

20,400

25,200

1,620

1,620

18,780

23,580

6,636

-

-

6,636

  45,600 3,240 42,360 6,636 6,636

 

 

 

 

 

 

1 mark for the journal entry

+

3 marks for  correct working in any form

=

(1+3 =

4 marks)

 

 

 

 

 

 

10 9 11 Q. P, Q and R were partners………………………his executors.

 

Ans. Dr.                                  P’s Capital A/c                                    Cr.

Particulars Amount(Rs.) Particulars Amount(Rs.)
Drawings

Interest on drawings

P’s Executors A/c

15,000

1,200

69,400

Balance b/d

Interest on capital

Salary

Profit and Loss Suspense

80,000

1,600

2,000

2,000

  85,600   85,600

 

 

½ mark for each item

½ x 6

=3 marks

+

1 mark for the amount transferred to executors

=

(3+1=

4 marks)

11 10 9 Q. Gupta Ltd. was …………………..different types of Share Capital.

Ans. Balance Sheet of Gupta  Ltd. as on ……

Liabilities Amount

(Rs.)

Assets Amount(Rs.)
SHARE CAPITAL

Authorised Capital

5,00,000 equity shares of Rs.10 each

 

Issued Capital

Subscribed capital

Less calls in arrears         

 

50,00,000

========

——

========

——

   
       

Note: If the Issued Capital is taken as Rs.2,80,000, full credit is to be given.

Balance Sheet of Gupta Ltd. as on ……

Liabilities Amount(Rs.) Assets Amount(Rs.)
SHARE CAPITAL

Authorised Capital

5,00,000 equity shares of Rs.10 each

 

Issued Capital

Subscribed capital

Called up and paid up Capital

Less calls in arrears         

 

50,00,000

========

——

========

——

========

——

========

   

 

Note : As per Company’s Act, the second format is not correct, so ½ mark should be deducted.

 

 

 

 

2 mark for authorised capital

+

1 mark for issued capital (any amount/ without amount)

+

1 mark for subscribed capital (any amount/ without amount)

(2+1+1=

4 marks)

 

 

 

 

 

 

 

12 - - Q.  Following is the …………………Capital Fund on 31.3.2005.

 

Ans. Balance Sheet of A, B and C as on 31.3.2005

Liabilities Amount(Rs.) Assets Amount(Rs.)
Capital fund 45,000 Cash

Subscriptions outstanding

Furniture

Books

5,000

2,000

20,000

18,000

  45,000   45,000

   

Income and Expenditure A/c for the year ended 31st March 2006

Expenditure Amount

(Rs.)

Income Amount

(Rs.)

Loss on sale of furniture

Salary               9,000

(+)outstanding  4,000

Newspapers

Rent                  7,000

(+)outstanding  1,000

Surplus

 

3,000

13,000

2,000

8,000

25,000

Subscriptions  22,000

+ outstanding   2,500

Sale of old newspapers

Government grants

Income from entertainment

Accrued Interest on fixed deposit              

 

24,500

1,500

20,000

2,000

3,000

  51,000   51,000

Note: If an examinee has capitalized government grants with a note, no marks should be deducted.

 

 

 

 

 

 

1 mark

 

 

 

+

 

 

 

 

½ mark for each  entry

½  x 10 =

5 marks

 

=

 (1 + 5 =

6 marks)

 

 

 

 

 

 

 

 

13 - - Q. B and C were partners……………….above transactions.

 

Ans. B sacrifices = 3/5 x 1/4 = 3/20

C sacrifices = 2/5 x ¼ = 2/20

B’s new share = 5/8 – 3/20 = 76/160

C’s new share= 3/8 – 2/20 =44/160

D’s new share = 1/4

 

New ratio = 19 : 11 : 10

                                                 Journal

Date Particulars F Dr. (Rs.) Cr.(Rs.)
  Cash A/c                                 Dr.

     D’s Capital a/c

     Premium A/c

(Cash brought in by D as his share of capital and goodwill)

  2,45,000  

2,00,000

45,000

  Premium A/c                         Dr.

     B’s Capital A/c

     C’s Capital A/c

(D’s share of goodwill credited to B and C in the sacrificing ratio)

  45,000  

27,000

18,000

 

 

 

½ mark

 

½ mark

 

1 mark

 

1 mark

 

 

= (½ + ½ + 1 + 1=

3 marks)

 

+

1 ½ marks

for each

correct entry

1 ½ x 2 =

3 marks

=

(3 + 3 = 6 marks)

14 - - Q. Pass the necessary………….premium of 25%.

 

Ans.                                      Journal

Date Particulars F Dr. (Rs.) Cr.(Rs.)
  (a)

Bank A/c                                    Dr.                                                  

            Debenture Application and

                               allotment A/c

(Debenture application money received)

   

20,00,000

 

20,00,000

  Debenture Application  and

                  allotment A/c                   Dr.

      9% Debentures a/c

      Securities premium a/c

(Debentures issued at a premium)

  20,00,000  

16,00,000

4,00,000

  (b)

Own Debentures A/c                           Dr.                                          

           Bank A/c

(Purchase of 700 own debentures @Rs.990)

   

6,93,000

 

6,93,000

  9% Debentures A/c                             Dr.                                              

      Own Debentures A/c

      Profit on cancellation of

                               debentures A/c

(Cancellation of 700 own debentures)

  7,00,000  

6,93,000

7,000

  Profit on cancellation of debentures    Dr.                               

      Capital reserve A/c

(Gain on cancellation transferred to capital reserve)

  7,000  

7,000

  (c) 

9% Debentures A/c                  Dr.                                     

           Debentureholders A/c

(Amount due to the Debentureholders)

   

35,000

 

35,000

  Debentureholders A/c              Dr.                                      

            Equity Share Capital A/c

            Securities premium A/c

(Issue of shares at a premium of 25%)

  35,000  

28,000

7,000

 

 

 

 

 

 

1 mark

 

+

 

1 mark

 

 

 

 

½ mark

 

 

 

1 mark

 

 

½ mark

 

 

 

1 mark

 

 

1 mark

 

=

 

(1+1+1/2 +1+1/2 +1+1= 6 marks)

 

15 16 15  

Q. A and B were partners…………of the new firm.

 

Ans.                                    Revaluation A/c

Particulars Amount(Rs.) Particulars Amount(Rs.)
Plant & Machinery

Profit transferred to capitals:

X             12,450

Y               4,150

10,000

16,600

Land and building

Provision for doubtful debts

Creditors

25,000

400

1,200

  26,600   26,600

 

Dr.                                     Capital accounts                                     Cr.

Particulars A B C Particulars A B C
Balance c/d 74,450 88,150 60,000 Bal b/d

G Reserve

Cash A/c

Revaluation A/c

C’s current A/c

50,000

7,500

-

12,450

4,500

80,000

2,500

-

4,150

1,500

-

-

60,000

  74,450 88,150 60,000   74,450 88,150 60,000
Current a/c Balance c/d  

1,35,000

43,150

45,000

-

60000

Balance b/d

A’s current A/c

74,450

60,550

88,150 60,000
  1,35,000 88,150 60,000   1,35,000 88,150 60,000

                           

                        Balance Sheet of X, Y and Z as on 1.4.2007

Liabilities Amount

(Rs.)

Assets Amount

(Rs.)

Capitals:

A  1,35,000

B     45,000

C     60,000

B’s Current A/c

Creditors

 

2,40,000

43,150

68,800

Land and building

Plant and Machinery

Investment

Stock

Debtors                35,000

Less provision          600

Cash

A’s current A/c

C’s Current A/c

65,000

60,000

26,000

30,000

34,400

70,000

60,550

6,000

  3,51,950   3,51,950

Note: Full credit is to be given if an examinee has calculated the adjusted capitals as: X Rs.1,21,500; Y Rs.40,500 and Z Rs.54,000 and the total of the Balance Sheet is Rs.3,32,450.

OR

 

Dr.                                 Revaluation a/c                                 Cr.

Particulars Amt(Rs.) Particulars Amt(Rs.)
Stock

Furniture

Plant and Machinery

Profit transferred:

X  5,600

Y  5,600

2,800

4,000

16,000

6,000

14,000

Building 40,000
  40,000   40,000

 

Dr.                                   Capital Accounts                                     Cr.

Particulars X

(Rs.)

Y

(Rs.)

Z

(Rs.)

Particulars X

(Rs.)

Y

(Rs.)

Z

(Rs.)

X’scapitalA/c

Cash A/c

X’s loan A/c

Balance c/d

-

19,600

1,20,000

-

16,000

-

-

99,600

8,000

-

-

74,800

Balance b/d

P & L A/c

Y’capital A/c

Z’capital A/c

Revaluation A/c

80,000

30,000

16,000

8,000

5,600

80,000

30,000

-

-

5,600

65,000

15,000

-

-

2,800

  1,39,600 1,15,600 82,800   1,39,600 1,15,600 82,800

 

Balance Sheet of X, Y and Z as on 31.3.2004

Liabilities Amount

(Rs.)

Assets Amount

(Rs.)

Bills Payable

Sundry Creditors Capitals:

Y  99,600

74,800

X’s Loan

98,000

1,02,000

1,74,400

1,20,000

Cash

Bills receivable

Debtors

Stock

Furniture

Plant and Machinery

Building

10,400

9,000

21,000

36,000

64,000

1,14,000

2,40,000

  4,94,400   4,94,400

 

Dr.                                               X’s loan A/c                                  Cr.

Particulars Amt(Rs.) Particulars Amt(Rs.)
    X’s Capital A/c 1,20,000

                              

 

 

 

 

 

 

 

2 marks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 marks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 marks

 

=

 

 

(2+3+3=

8 marks)

 

 

 

OR

 

 

 

 

2 marks

 

 

 

 

 

 

 

 

3 marks

 

 

 

 

 

 

 

 

 

 

 

2 marks

 

 

 

 

 

 

 

 

 

1 mark

(2+ 3 + 2 + 1  =

8 marks)

16 15 16  

Q. Seema Ltd. invited……………………books of the company.

 

Ans.                                          Journal

Date     Particulars F Dr. (Rs.) Cr.

(Rs.)

  Bank A/c                                      Dr                                                                               

      Share application A/c

(amount received on application)

  13,00,000  

13,00,000

  Share Application A/c                Dr.                                         

     Share Capital A/c

     Securities premium A/c

     Share allotment A/c

     Bank A/c

(Application money adjusted)

  13,00,000  

4,00,000

6,00,000

2,00,000

1,00,000

  Share allotment A/c                   Dr.                                                                  

      Share capital A/c

(Amount due on allotment)

  8,00,000  

8,00,000

  Bank  A/c                                  Dr.                                                                               

     Share Allotment A/c

(The amount received on allotment)

  6,00,000  

6,00,000

  Share first and final call A/c    Dr.                                          

       Share Capital A/c

(The amount due on first and final call)

  8,00,000  

8,00,000

  Bank A/c                                    Dr.                                                                                       

    Share first and final call a/c

(The amount received on first and final call)

OR

Bank A/c                                    Dr.                                                                                            

Calls-in-arrears A/c                    Dr.                                                         

     Share first and final call

(The amount received on first and final call

  7,92,000

7,92,000

8,000

 

7,92,000

8,00,000

  Share Capital A/c                       Dr.                                            

     Share Forfeited A/c                  

     Share first call A/c

(1,600 shares forfeited)

OR

Share Capital A/c                       Dr.

     Share Forfeited A/c                  

     Calls in arrears  A/c

(2,000 shares forfeited)

  20,000

20,000

 

12,000

8,000

12,000

8,000

  Bank a/c                                      Dr.                                                       

     Share Capital a/c

     Securities Premium A/c

(2,000 shares re-issued)

  28,800  

20,000

8,800

  Share Forfeited a/c                   Dr.

    Capital reserve a/c

(Balance in share Forfeited transferred to capital reserve)

  12,000  

12,000

 

                                                          OR

Ans.                                           Journal

 

 

Date    Particulars F Dr. (Rs.) Cr.

(Rs.)

  Bank A/c                                      Dr                                                                                

      Preference Share application A/c

(amount received on application)

  3,00,000  

3,00,000

  Preference Share Application A/c  Dr.                                        

     Preference Share Capital A/c

     Preference Share allotment A/c

     Bank A/c

(Application money adjusted)

  3,00,000  

2,40,000

30,000

30,000

  Preference Share allotment A/c Dr. 

Discount on issue of shares A/c                                                 

      Preference Share capital A/c

(Amount due on allotment)

  3,20,000

48,000

 

3,68,000

  Bank A/c                                  Dr.                                                                              

     Preference Share Allotment A/c

(The amount received on allotment)

  2,90,000  

2,90,000

  Preference Share first and final call Dr.                                          

       Share Capital A/c

(Amount due on first and final call)

  1,92000  

1,92,000

  Bank A/c                                    Dr.                                                                                       

    Preference Share first and final call a/c

(Amount received on first and final call)

OR

Bank A/c                                    Dr.                                                                                            

Calls-in-arrears A/c                    Dr.                                                        

     Preference Share first and final call

(Amount received on first and final call

  1,82,400

1,82,400

9,600

 

1,82,400

1,92,000

  Preference Share Capital A/c              Dr.                                           

     Share Forfeited A/c                  

     Preference Share first and final call

     Discount on issue of shares A/c

(400 shares forfeited)

OR

Preference Share Capital A/c              Dr.

     Share Forfeited A/c               

     Calls in arrears  A/c

     Discount on issue of shares A/c

(400 shares forfeited)

  40,000

40,000

 

28,000

9,600

2,400

28,000

9,600

2,400

  Bank a/c                                      Dr.                                                      

     Preference Share Capital a/c

     Securities Premium A/c

(400 shares re-issued)

  42,000  

40,000

2,000

  Share Forfeited a/c                   Dr.

    Capital reserve a/c

(Balance in share Forfeited transferred to capital reserve)

  28,000  

28,000

 

 

 

 

 

 

 

 

½ mark

 

 

 

 

1 mark

 

 

 

½ mark

 

 

 

1 mark

 

 

½ mark

 

 

 

 

 

 

 

 

 

 

 

1 mark

 

 

 

 

 

 

 

 

 

 

1 ½ marks

 

 

 

 

 

1 mark

 

 

 

1 mark

=

(1/2 + 1+ ½ + 1 + ½  +1 +1½  +1=1=8 marks)

 

OR

 

 

½ mark

 

 

 

 

1 mark

 

 

 

 

½ mark

 

 

1 mark

 

 

½ mark

 

 

 

 

1 mark

 

 

 

 

 

 

 

1 ½ marks

 

 

 

 

 

 

 

 

 

 

1 mark

 

 

 

1 mark

=

(1/2 + 1+ ½ + 1 + ½  +1 +1½  +1=1=8 marks)

      Part B

(Analysis of Financial Statements)

 
17 19 19 Q. The debtors …………………by Rs.50,000.

Ans. No change as the closing stock does not affect either credit sales or debtors.

1 mark
18 18 17 Q. State whether………………..no flow of cash.

Ans. No flow.

1 mark
19 17 18 Q. In which activity…………….Cash Flow Statement?

Ans. Financing activity.

1 mark
20 20 20 Q. List the major ……………………Companies Act 1956.

 

Ans. Major headings on the asset side are:

  • Fixed Assets
  • Investments
  • Current Assets, loans and advances

  (a) Current assets

  (b) Loans and advances

  • Miscellaneous Expenditure
  • Profit and Loss A/c (Dr. balance)
 

 

 

½ mark

½ mark

1 mark

 

 

½ mark

½ mark

= (½  + ½ + 1 + ½ + ½ =

3 marks)

21 22 - Q. From the following…………………………Statement.

Ans.                         Comparative Income Statement

                        For the years ended on 31.3.06 & 31.3.07

Particulars 2006

(Rs.)

2007

(Rs.)

Absolute

Increase/ decrease

Percentage

increase/ decrease

Sales

Less: cost of goods sold

20,00,000

16,00,000

25,00,000

20,00,000

5,00,000

4,00,000

25

25

Gross profit

Less: Indirect expenses

4,00,000

80,000

5,00,000

50,000

1,00,000

(30,000)

25

37.5

Net profit before tax

Less :tax

3,20,000

1,60,000

4,50,000

2,25,000

1,30,000

65,000

40.6

40.6

Net profit after tax 1,60,000 2,25,000 65,000 40.6

 

 

 

 

 

 

 

1 mark each for 2006,

2007, increase/

decrease,

and percentage column

1×4=

4 marks

 

 

 

22 21 21 Q. From the following……………….operating ratio.

 

Ans. (Any two)

 

Current ratio =   Current Assets

                         Current Liabilities

                     = 6,00,000 + 50,000 + 10,000

                                  4,00,000

                     = 6,60,000

                        4,00,000

                     = 33 : 20

                     = 1.65 : 1

Debt Equity Ratio = Debt/ Equity

                              =          5,00,000

                                  7,00,000 + 3,00,000    

                              = 1 : 2 or 50%

Operating Ratio = Cost of goods sold + operating expenses x 100

                                            Net Sales

                          = 80,000 + 10,000  x 100

                                  1,00,000

                         =   90,000  x 100

                            1,00,000

                         = 90%

 

 

 

 

 

 

 

½ mark for formula

+

1 mark

for calculation

+

½ mark

for answer

=

 

2 x  2

= 4 marks

 

 

 

 

23 - 23 Q. From the following ……………..Cash Flow Statement.

 

 

Ans.

Calculation of NP before tax                                                             
            Net loss                                   (50,000)

            Add dividend                          50,000

            Less transfer from reserve    3,40,000

            Net profit before tax             3,40,000

             Cash Flow Statement for the year ended 31st March 2007

     
Cash flows from operating activities

Net profit before tax

Add interest on debentures

Add loss on sale of machinery

Operating profit before Working Capital changes

Less:

Increase in Debtors

Increase in  Stock

Add: Increase in creditors

Cash generated from operating activities

Cash flows from investing activities

Purchase of fixed assets

Sale of fixed assets

Cash used in investing activities

Cash flows from financing activities

Issue of equity shares

Issue of preference shares

Redemption of Debentures

Dividend paid

Interest paid on Debentures

Cash generated from financing activities

Net increase in Cash and Cash Equivalents

Add opening balance of  Cash and Cash Equivalents

Closing balance of Cash and Cash Equivalents

 

54,000

14,000

 

3,40,000

68,000

 

(1,00,000)

(1,00,000)

3,50,000

4,08,000

1,50,000

 

(5,20,000)

6,000

5,58,000
 

5,00,000

60,000

(2,00,000)

(50,000)

(54,000)

(5,14,000)
  2,56,000

3,00,000

2,00,000

 

5,00,000 

 

Working Notes:

 Dr.                                       Fixed assets A/c                                    Cr.

Particulars Amt(Rs.) Particulars Amt(Rs.)
Balance b/d

Bank -purchase

15,00,000

5,20,000

Bank-sale

Loss on sale

Balance c/d

6,000

14,000

20,00,000

  20,20,000   20,20,000

 

Note 1: Full credit to be given to an examinee if he/she has taken preference dividend separately. The answers would be:

Net Profit before tax = Rs.5,42,800

Cash generated from operating activities = Rs.5,60,800

Cash used in investing activities = Rs.(5,14,000)

Cash generated from financing activities = Rs.2,53,200

Note 2: In case, interest on debentures and dividend on preference shares has been calculated on the closing balances, no marks should be deducted.

 

 

 

 

 

 

 

 

1 mark

 

 

 

 

 

 

 

 

 

 

 

 

 

1 mark

 

 

 

1 marks

 

 

 

 

 

 

2 marks

 

 

½ mark

 

 

 

 

 

 

 

 

 

½ mark

 

=

(1+ 1+ 1+ 2 + ½ + ½

=

6 marks)

 

 

Q. SET No. ADDITIONAL QUESTIONS OF SET II

66/2/2

EXPECTED ANSWERS / VALUE POINTS

DISTRI-

BUTION

OF MARKS

66/2/1 66/2/2 66/2/3
      PART A

(Not for profit organisations, partnership firms and company accounts)

 
3 1   Q. State any two…………………..goodwill of a firm. 1 mark
4 2   Q. State any two………..payable to a retiring partner. 1 mark
5 3   Q. State with reason……………………IPO. 1 mark
1 4   Q. State any two…………………..Payments A/c 1 mark
2 5   Q. Chander and Suman………..claim is valid or not. 1 mark
8 6   Q. Surya Ltd. acquired…………..books of Surya Ltd. 3 marks
6 7   Q. Show how the ………………as on 31.3.2007. 3 marks
7 8   Q. X Ltd. forfeited…………..re-issue of the shares. 3 marks
10 9   Q. P, Q and R were………………his executors. 4 marks
11 10   Q. Gupta Ltd. was ………….different types of Share Capital. 4 marks
9 11   Q. Shiv and Shankar………………adjustment entry. 4 marks
- 12   Q. Following is the Receipts………Capital Fund as on 1.4.2005.

Ans. Balance Sheet of A, B and C as on 31.3.2005

Liabilities Amount(Rs.) Assets Amount(Rs.)
Capital fund Cash

Subscriptions outstanding

Furniture

Books

10,000

15,000

7,000

  —-   —-

   

Income and Expenditure A/c for the year ended 31st March 2006

Expenditure Amount

(Rs.)

Income Amount

(Rs.)

Loss on sale of furniture

Salary             15,000

(+)outstanding  2,000

Newspapers

Rent                  4,000

(+)outstanding  1,000

 

2,000

17,000

4,000

5,000

Subscriptions 

Sale of old newspapers

Government grants

Profit from entertainment

Accrued Interest on fixed deposit              

—-

3,000

17,000

1,000

2,400

  —–   —–

Note 1: Any amount for subscriptions or capital fund is to be ignored.

Note 2: Surplus/ deficit is to be ignored.

 

 

 

2 marks for placing

the

indicated items

 

+

 

 

½ mark for each item indicated

in

the Income and Expenditure

A/c

1/2 x 8 = 4

Marks

2 + 4

=

6 marks

 

- 13   Q. J and K were partners in a firm…..above transactions.

 

 

 

Ans. J sacrifices = 3/5 – 1/4 = 7/20

K sacrifices = 2/5 – ¼ = 3/20

 Sacrificing ratio = 7: 3

                                               Journal

Date Particulars F Dr. (Rs.) Cr.(Rs.)
  Cash A/c                                 Dr.

     L’s Capital A/c

    M’s Capital A/c

     Premium A/c

(Cash brought in by L and M as their his share of capital and goodwill)

  1,40,000  

60,000

60,000

20,000

  Premium A/c                         Dr.

     J’s Capital A/c

     K’s Capital A/c

(Share of goodwill credited to J and K in the sacrificing ratio)

  20,000  

14,000

6,000

 

 

 

 

 

1 mark

1 mark

1 mark

= (1 + 1 + 1=

3 marks)

 

+

1 ½ marks

for each

correct entry

1 ½ x 2 =

3 marks

=

(3 + 3 = 6 marks)

 

 

 

 

 

 

- 14   Q. Pass the necessary……………….premium of 10%.

Ans.                               Journal of Jeevan Ltd.

Date Particulars F Dr. (Rs.) Cr.(Rs.)
  (a) 

9% Debentures A/c                  Dr.                                     

           Debentureholders A/c

(Amount due to the Debentureholders)

   

49,000

 

49,000

  Debentureholders A/c              Dr.                                      

            Equity Share Capital A/c

            Securities premium A/c

(Issue of shares at a premium of 25%)

  49,000  

39,200

9,800

  (b)

Own Debentures A/c                           Dr.                                          

           Bank A/c

(Purchase of 600 own debentures @Rs.93)

   

55,800

 

55,800

  9% Debentures A/c                             Dr.                                             

      Own Debentures A/c

      Profit on cancellation of

                               debentures A/c

(Cancellation of  600 own debentures)

  60,000  

55,800

4,200

  Profit on cancellation of debentures    Dr.                               

      Capital reserve A/c

(Gain on cancellation transferred to capital reserve)

  4,200  

4,200

  (c)

Bank A/c                                    Dr.                                                  

            Debenture Application and

                               allotment A/c

(Debenture application money received)

   

12,10,000

 

12,10,000

  Debenture Application  and

                  allotment A/c                   Dr.

      7% Debentures a/c

      Securities premium a/c

(Debentures issued at a premium)

  12,10,000  

11,00,000

1,10,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 x 6 = 6 marks

16 15   Q. Seema Ltd. invited ……………..books of the company. 8 marks
15 16   Q. A and B were partners………….of the new firm

                                                   OR

Q. X, Y and Z were partners….as on 1.4.2004

8 marks
      Part B

(Analysis of Financial Statements)

 
18 17   Q. State whether…………………..no flow of cash. 1 mark
19 18   Q. In which activity will ………Cash Flow Statement? 1 mark
17 19   Q. The debtors turnover………by Rs.50,000. 1 mark
20 20   Q. List the major……………Companies Act 1956. 3 marks
22 21   Q. From the following…………Current Liabilities Rs.4,00,000. 4 marks
21 22   Q. Prepare a Comparative ……….information 4 marks
- 23   Q. From the following ……………..Cash Flow Statement.

Ans.

Calculation of NP before tax                                                             
            Net profit                                (75,000)

            Add dividend                          60,000

            Add transfer to reserve            20,000           

            Net profit before tax                 5,000

             Cash Flow Statement for the year ended 31st March 2007

     
Cash flows from operating activities

Net profit before tax

Add interest on debentures

Add loss on sale of machinery

Operating profit before Working Capital changes

Less:

Increase in Debtors

Increase in  Stock

Add: Increase in creditors

Cash generated from operating activities

Cash flows from investing activities

Purchase of fixed assets

Sale of fixed assets

Cash used in investing activities

Cash flows from financing activities

Issue of equity shares

Issue of preference shares

Issue of Debentures

Dividend paid

Interest paid on Debentures

Cash generated from financing activities

Net increase in Cash and Cash Equivalents

Add opening balance of  Cash and Cash Equivalents

Closing balance of Cash and Cash Equivalents

 

27,000

22,000

 

5,000

49,000

 

(50,000)

(50,000)

1,75,000

54,000

75,000

 

(2,80,000)

8,000

1,29,000
 

3,00,000

30,000

50,000

(60,000)

(27,000)

(2,72,000)
  2,93,000

1,50,000

1,00,000

 

2,50,000

Working Notes:

 Dr.                                       Fixed assets A/c                                      Cr.

Particulars Amt(Rs.) Particulars Amt(Rs.)
Balance b/d

Bank -purchase

7,50,000

2,80,000

Bank-sale

Loss on sale

Balance c/d

8,000

22,000

10,00,000

  10,30,000   10,30,000

 

Note 1: Full credit to be given to an examinee if he/she has taken preference dividend separately. The answers would be:

Net Profit before tax = Rs.6,400

Cash generated from operating activities = Rs.1,30,400

Cash used in investing activities = Rs.(2,72,000)

Cash generated from financing activities = Rs.2,91,600

 

Note 2: In case, interest on debentures and dividend on preference shares has been calculated on the closing balances, no marks should be deducted.

 

 

 

 

 

1 mark

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 mark

 

 

 

1 marks

 

 

 

 

 

 

2 marks

 

 

½ mark

 

 

 

 

 

 

 

 

½ mark

 

=

(1+ 1+ 1+ 2 + ½ + ½

=

6 marks)

 

 

Q. SET No. ADDITIONAL QUESTIONS OF SET III

66/2/3

EXPECTED ANSWERS / VALUE POINTS

DISTRI-

BUTION

OF MARKS

66/2/1 66/2/2 66/2/3
      PART A

(Not for profit organisations, partnership firms and company accounts)

 
5 - 1 Q. State with reasons…………………..IPO. 1 mark
4 - 2 Q. State any two items…………….retiring partner. 1 mark
1 - 3 Q. State any two……………Payments account. 1 mark
2 - 4 Q. Chander and Suman…………valid or not. 1 mark
3 - 5 Q. State any two…………….of a firm. 1 mark
8 - 6 Q. Surya Ltd acquired………………of Surya Ltd. 3 marks
6 - 7 Q. Show how the ……………..as on 31.3.2007. 3 marks
7 - 8 Q. X Ltd. forfeited ……………..reissue of the shares. 3 marks
11 - 9 Q. Gupta Ltd was…………….types of Share Capital. 4 marks
9 - 10 Q. Shiv and Shankar………..adjustment entry. 4 marks
10 - 11 Q. P, Q and R were partners………..his executors. 4 marks
- - 12 Q. Following is the Receipts………..on 1.1.2007.

Ans. Balance Sheet of A, B and C as on 31.3.2005

Liabilities Amount(Rs.) Assets Amount(Rs.)
Capital fund 2,83,000 Cash

Subscriptions outstanding

Furniture

Books

8,000

5,000

50,000

1,20,000

  2,83,000   2,83,000

   

Income and Expenditure A/c for the year ended 31st March 2006

Expenditure Amount

(Rs.)

Income Amount

(Rs.)

Loss on sale of furniture

Salary             60,000

(+)outstanding  3,000

Newspapers

Rent                 

Surplus

 

1,900

63,000

15,000

10,000

47,100

Subscriptions  40,000

+ outstanding    5,000

Sale of old newspapers

Government grants

Profit from entertainment

Accrued Interest on fixed deposit              

 

45,000

5,400

80,000

3,000

3,600

  1,37,000   1,37,000

 

 

 

 

 

 

1 mark

 

 

+

 

 

 

 

 

 

 

½ mark for each  entry

½  x 10 =

5 marks

 

=

 (1 + 5 =

6 marks)

 

 

 

 

 

 

- - 13 Q. A and B were…………..above transactions.

 

Ans. A sacrifices = 3/5 – 2/6 = 8/30

B sacrifices = 2/5 – 2/6 = 2/30

 Sacrificing ratio = 4 : 1

                                               Journal

Date Particulars F Dr. (Rs.) Cr.(Rs.)
  Cash A/c                                 Dr.

    C’s Capital A/c

    D’s Capital A/c

     Premium A/c

(Cash brought in by D as his share of capital and goodwill)

  1,90,000  

80,000

80,000

30,000

  Premium A/c                         Dr.

     C’s Capital A/c

     D’s Capital A/c

(D’s share of goodwill credited to B and C in the sacrificing ratio)

  30,000  

24,000

6,000

 

 

 

1 mark

1 mark

1 mark

= (1 + 1 + 1=

3 marks)

 

+

1 ½ marks

for each

correct entry

1 ½ x 2 =

3 marks

=

(3 + 3 = 6 marks)

 

 

 

-   14 Q. Pass the necessary…………at 25% premium.

Ans.                        Journal of Gopal Ltd.

Date Particulars F Dr. (Rs.) Cr.(Rs.)
  (a)

12%Debentures A/c                            Dr.                                                  

            Debentureholders A/c

(Amount due to Debentureholders)

   

2,00,000

 

2,00,000

  Debentureholders A/c                        Dr.

      Bank A/c

(Debentures redeemed)

  2,00,000  

2,00,000

  (b)

Own Debentures A/c                           Dr.                                          

           Bank A/c

(Purchase of 900 own debentures @Rs.970)

   

8,73,000

 

8,73,000

  8% Debentures A/c                             Dr.                                             

      Own Debentures A/c

      Profit on cancellation of

                               debentures A/c

(Cancellation of 900 own debentures)

  9,00,000  

8,73,000

27,000

  Profit on cancellation of debentures    Dr.                               

      Capital reserve A/c

(Gain on cancellation transferred to capital reserve)

  27,000  

27,000

  (c) 

9% Debentures A/c                  Dr.                                     

           Debentureholders A/c

(Amount due to the Debentureholders)

   

20,000

 

20,000

  Debentureholders A/c              Dr.                                      

            Equity Share Capital A/c

            Securities premium A/c

(Issue of shares at a premium of 25%)

  20,000  

16,000

4,000

 

 

 

 

 

1 mark

 

 

1 mark

 

 

½ mark

 

 

 

1 mark

 

 

 

½ mark

 

 

 

1 mark

 

 

1 mark

=

(1+1+1/2 +1+1/2 +1+1= 6 marks)

15   15 Q. A and B were partners………Balance Sheet of the new firm.

OR

Q. X, Y and Z were …………..as on 1.4.2004.

8 marks
16   16 Q. Seema Ltd invited…………books of the company.

OR

Mehta Ltd……………….above transactions.

8 marks
      Part B

(Analysis of Financial Statements)

 
19   17 Q. In which activity………………..Statement? 1 mark
18   18 Q. State whether……………….of cash. 1 mark
17   19 Q. The debtors turnover………….by Rs.50,000. 1 mark
-   20 Q. What are ‘Common size………………..Statements. 3 marks
22   21 Q. From the following……………current liabilities Rs.4,00,000. 4 marks
23   22 Q. Prepare a Comparative…………………………information

Ans.                         Comparative Income Statement

                        For the years ended on 31.12.06 & 31.12.07

Particulars 2006

(Rs.)

2007

(Rs.)

Absolute

Increase/ decrease

Percentage

increase/ decrease

Sales

Less: cost of goods sold

10,00,000

7,00,000

14,00,000

10,00,000

4,00,000

3,00,000

40

42.8

Gross profit

Less: Indirect expenses

3,00,000

90,000

4,00,000

1,60,000

1,00,000

70,000

33.3

77.7

Net profit before tax

Less :tax

2,10,000

84,000

2,40,000

96,000

30,000

12,000

14.3

14.3

Net profit after tax 1,26,000 1,44,000 18,000 14.3

 

 

 

 

 

 

 

1 mark each for 2006,

2007, increase/

decrease,

and percentage column

1×4=

4 marks

 

 

 

23   23 Q. From the following…………….Cash Flow Statement. 6 marks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part C

Computerised Accounting(Delhi 67/2/1-2-3)

24 24 24 List any ……………………………system.

Ans: The features of a computerised accounting system are- Design; Flexibility; Display; Quality; Export; mailing; Print preview and Printing

2marks
25 - - Explain ……………………………….language)                           

Ans:The commands which are used to create and maintain a database is called Data Definition language (DDL). They represent the CREATE, ALTER & DROP

 

 

 

 

 

2 marks

26 26 26 Differentiate …………….File?                                                       

Ans: Database  is a collection of information available to many users.  Files are used for storing, accessing & manipulating data.

 

 

 

 

2 marks

27 27 27 What are …………………………………….system?                    

Ans:The advantages of a computerised accounting system are: Speed; Accuracy; Reliability; Scalability; Legibility; Efficiency, Quality and MIS

 

 

 

 

3 marks

28 - - Differentiate ………………..Independence?                     

Ans:Physical data independence means that the Physical structure of the data may be changed without changing the logical structure, and Logical data independence means change at the logical level without changing the Application programme

 

 

            4marks

29 29 29 Write the ……………………………………………………Rupee.

Asset Opening values Depreciation Written down value
Plant & machinery 5,20,000 =Round(B2*0.15,0) =SUM(B2-C2)
Computers 7,50,000 =Round(B3*0.40,0) =SUM(B3-C3)
Furniture & fittings   1,01,000 =Round(B4*0.20,0) =SUM(B4-C4)
Motor vehicles 4,72,000  =Round(B5*0.25,0) =SUM(B5-C5)

 

 

 

 

 

 

 

 

(4+3)=  7 mark

 

 

 

 

    Additional Questions of 67/2/2  
24

 

24 24 List any ……………………………system.

 

 

 
 

 

25

 

 

  Q.Explain ……………………………..language)                                      

Ans :The commands which are used to control the data stored in a database is called Data control language (DCL). They represent the GRANT, REVOKE etc.

 

 

 

2 marks

 

26 26   Differentiate …………….File? 2 marks
27

 

 

27   What are …………………………………….system?          
 

 

28   What ……………………………..DBMS?                                                                

Ans :The advantages of DBMS: (a) Sharing of data; (b) Inconsistency is controlled; (c) Data redundancy is reduced (d) Secured data

 

 

 

 

 

4 marks

29 29   Write the ……………………………………………………Rupee.

 

 
 

-

    Additional Questions of 67/2/3  
 

24

   

24

List any ……………………………system.

 

 

 
-   25

 

Explain ……………………………………(Data Manipulation language)

Ans The commands which are used to manipulate the data in a database are called Data manipulation language (DML). They represent the SELECT, DELETE & UPDATE.

                                   

 

2 marks

26   26 Differentiate …………….File?  
27   27

 

What are …………………………………….system?          
-   28

 

What ………………………………DBMS?                                                                       

Ans: Lack of Flexibility, Cost, no back up in systems, Expensive hardware & soft ware, centralised control & security breach

 

 

 

 

 

4 marks

29   29

 

Write the ……………………………………………………Rupee.

 

 

 

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