CBSE Set Qa1 Accounts Sample Test Papers For Class 12th for students online

Accounts Class - XII  (CBSE)
You are on Set no I answers 1 to 5

Q1) List any two items appearing on the credit side of a partner's capital account, when capitals are fluctuating.  (Marks 2)
Ans1)  (i) Interest on capital of the partner.
(ii) Partner's salary.

Q2) (a) A and B are partners in a firm sharing profits in the ratio of 3 : 2. They had advanced to the firm a sum of Rs. 30,000/- as a loan in their profit sharing ratio on July 1st, 1998. The partnership deed is silent on the question of interest on loan from partners. Compute the interest payable by the firm to the partners, assuming the firm closes its books on December 31st.
(Marks 3)
Ans. 2) (a) According to the provisions of the Indian Partnership Act, 1932, interest @ 6% p.a. is payable to the partners on the amount of loan advanced by them to the firm.
A's loan = 30000 x 3/5 = 18000
B's loan = 30000 x 2/5 = 12000
Interest on A's loan = 18000 x 6/100 x 6/12 = 540
Interest on B's loan = 12000 x 6/100 x 6/12 = 360
Total Interest payable by firm to partners = 540 + 360 = Rs. 900

Q2) (b) A, B and C are partners sharing profits in the ratio of 5 : 4 : 1. C is given a guarantee that his share of profits in any given year would be Rs. 5000/-. Deficiency, if any, would be borne by A and B equally. The profits for the year 1998 amounted to Rs. 40000/-. Pass necessary entries in the books of the firm.  (Marks 3)

Ans. 2) (b) Working Notes :
C's share in profit = 1/10 x 40000 = 40000
C's guarantee = 5000
C's deficiency = 5000 - 4000 = 1000
The deficiency is to be borne equally by A and B.
A's share of profit = 5/10 x 40000 = 20000
Less : C's guarantee 500
A' profit = 19500
B's share of profit = 4/10 x 40000 = 16000
Less: C's guarantee 500
B's profit = 15500
Thus, the entry is :

Journal

Q3) On April 1st, 1998 an existing firm had assets of Rs. 75,000/- including cash of Rs. 5,000/-. The partner's capital account showed a balance of Rs. 60,000/- and reserve constituted the rest. If the normal rate of return is 10% and the goodwill of the firm is valued at Rs. 24,000/- at 4 year purchase of super profits, find the average profits of the firm.  (Marks 3)
Ans3) Goodwill = super profits x 4 year purchase
24000 = super profits x 4
Super profits = 6000
Normal profits = Capital employed x Normal rate of return
Capital employed = Partner's capital + Reserve
= 60000 + 15000
= 75000
Net profit = 75000 x 10/100
= 7500
Super profits = Average profits - Normal profits
6000 = Average profits - 7500
Average profit = Rs. 13,500

Q4) As a director of a company you had invited applications for 30,000 equity shares of Rs. 10/- each at a premium of Rs. 2/- each. The total application money received at Rs. 2/- per share was Rs. 72,000/-. Name the kind of subscription. List the three alternatives for allotting these shares.  (Marks 3)
Ans4) This is a case of over-subscription as the number of share applied (36000 in this case) is more than the number of shares offered by the company. (30000 for this case)
The alternatives for allotting these shares :
(i) Allot shares on pro-rata basis to all the applicants.
(ii) Not to allot any share to some applicants full allotment may be made to some other applicants and pro-rata allotment may be made to the rest.
(iii) May not allot any share to some applicants make pro-rata allotment to other applicants.

Q5) A limited company has issued Rs. 1,00,000/- 9% debentures at a discount of 6%. These debentures are to be redeemed equally, spread over 5 annual installments. Show discount on issue of debentures A/C for five years.  (Marks 5)
Ans5) Discount on issue of debentures = 6/100 x 100000 = 6000
Amount of discount to be written off each year:

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