CBSE Set Qa7a Accounts Sample Test Papers For Class 12th for students online
Accounts Class - XII
(CBSE)
You are on Set no 2 Answer 9
Q9) X, Y and Z were partners in a firm sharing profits in the proportions of 1/2, 1/3 and 1/6 respectively. The Balance Sheet of the firm on 31st March 1998 was as follows:
|
Liabilities
|
Amount
|
Assets
|
Amount (Rs.)
|
| Sundry Creditors |
15,000
|
Cash at Bank |
5,000
|
| Provident Fund |
6,000
|
Debtors
Rs. 40,000 Less Provision Rs. 2,000 |
38,000 |
| Reserve Fund |
12,000
|
Stock |
30,000
|
|
Capitals: |
|
|
|
|
1,48,000
|
1,48,000
|
||
(i) Goodwill of the firm was valued at Rs. 30,000, but it was not to remain in the books of the new firm.
(ii) Value of the patents was to be reduced by 20% and that of Plant and Machinery by 10%.
(iii) Provision for doubtful debts was to be raised to 6%.
(iv) Z took over the Investments at a value of Rs. 17,600.
(v) Liability on account of Provident Fund was only Rs. 2,400.
Show the necessary Journal Entries for the treatment of goodwill, prepare revaluation account, Capital accounts of the partners and the Balance Sheet of X and Y after Z's retirement.
Ans9)
Journal
| Date | Particulars | LF | Amt. Dr | Amt. Cr |
|
Goodwill A/c ......................Dr
To X's Capital A/c. To Y's Capital A/c To Z's Capital A/c (Being goodwill raised and divided amongst old partners in their old profit sharing ratio) X's Capital A/c ....................Dr Y's Capital A/c ....................Dr To Goodwill (Being goodwill written off between remaining partners in their new ratio) |
30000 |
|
||
Revaluation A/c
|
To Patents A/c
To Plant and Machinery A/c To Debtors |
2000 |
By Investment A/c
By Provident Fund By loss transferred To X's Capital A/c Y's Capital A/c Z's Capital A/c |
2600 |
Partners' Capital A/c
| Particulars | X | Y | Z | Particulars | X | Y | Z |
| To Goodwill
A/c To Investment To Revaluation A/c (Loss) To Z's Loan A/c To Balance c/d |
1800 600 67400 86000 |
1200 400 31600 44000 |
17600 200 9200 _____ 27000 |
By balance
b/d By Reserve Fund By Goodwill |
65000 6000 15000 _____ 86000 |
30000 4000 10000 _____ 44000 |
20000 2000 5000 _____ 27000 |
Balance Sheet of X and Y
as on ...
| Liabilities |
Amount
|
Assets
|
Amount
|
|
Sundry Creditors
Provident Fund Capitals: X 67400 Y 31600 Z's loan |
15000 |
Cash at bank
Debtors 40000 Less: Provision 2400 Stock Patents Plant and Machinery |
5000 |
|
Liabilities
|
Amount (Rs.)
|
Assets
|
Amount (Rs.)
|
|
Sundry Creditors
Reserve Fund Capital Ram Mohan Sohan |
10,000
7,500
20,000
10,000 10,000 |
Tools
Furniture Stock Debtors Cash at Bank Cash in Hand |
3,000
18,000 16,000 12,000 8,000 500 |
|
57,500 |
57,500 |
||
(a) Amount standing to the credit of his Capital Account.
(b) Interest on Capital which amounted to Rs. 150.
(c) His share of goodwill Rs. 5000.
(d) His share of profit from the closing of the last financial year to the date of death which amounted to Rs. 750.
Sohan's executor was paid Rs. 1,775 on 1st April 1995 and the balance in four equal yearly instalments from 31/3/1996 with interest @ 6% p.a.
Pass the necessary Journal entries and draw up Sohan's account to be rendered to his executor and Sohan's Executor's Account till it is finally paid. (Marks 14)
Ans.
Journal
| Date | Particulars | LF | Amt. | Amt. |
|
Reserve Fund
To Sohan's Capital A/c (Being Sohan's share of reserve fund transferred to his capital A/c) Interest on Capital To Sohan's Capital A/c (Being his interest on capital transferred to his capital A/c) Goodwill A/c...................... Dr To Sohan's Capital A/c (Being Sohan's share of goodwill transferred to his capital A/c) P/L suspense A/C ...............Dr To Sohan's Capital A/c (Being Sohan's share of profit to his date of death transferred to his capital A/c) Sohan's Capital A/c ...............Dr To Sohan's Executors A/c (Being the balance of Ram's Capital A/c transferred to his Executors A/c) |
1500 |
|
||
Sohan's Capital A/c
| Date |
Particulars
|
Amt | Date |
Particulars
|
Amt
|
| 31/3/95 |
To Sohan's Executors A/c
|
17400 |
31/3/95 |
By balance b/d
By Reserve Fund By Interest on Capital By Goodwill A/c By P/L Suspense A/c |
10000 |
Sohan's Executors A/c
|
1/4/95
31/3/96 31/3/96 31/3/97 31/3/98 31/3/98 31/3/99 |
To bank A/c
To bank (3906.25+ 937.5) To balance c/d To bank A/c (3906.25 + 703.12) To balance c/d To bank A/c (3906.25 + 468.75) To balance c/d To bank A/c (3906.25 + 234.38) |
1775 |
31/3/95
31/3/96 1/4/96 1/4/97 31/3/98 1/4/98 31/3/99 |
By Sohan's Capital A/c
By Interest A/c By balance b/d By Interest A/c By balance b/d By Interest A/c By balance b/d By Interest |
17400 |
Q15) What is meant by
analysis of financial statements? Briefly explain vertical analysis.?
Ans15) Analysis of financial statement
is a systematic process of evaluating and establishing relationships between
different components of financial statements to better understand the
performance of the firm. It determines the meaning of the information disclosed
in the financial statement of have complete results regarding profitability and
financial position of the firm.
Vertical analysis is the analysis of financial statements of an enterprise for
one particular period. Thus, the interpretation of balance sheet at the end of
the accounting period is vertical analysis.
Q16) With the help of the
given information calculate any three of the following ratio :
(i) Operating ratio, (ii) Quick ratio, (iii) Working capital turnover ratio and
(iv) Debt to total funds ratio.
Information : Equity Share Capital Rs. 1,00,000; 12% Preference Share
Capital Rs. 8,00,000; 12 % Debentures Rs. 60,000; General Reserve Rs. 40,000;
Sales Rs. 3,00,000; Opening stock Rs. 10,000; Purchases Rs. 1,20,000; Wages Rs.
30,000; Closing Stock Rs. 30,000; Selling and distribution expenses Rs. 10,000;
Other current assets Rs. 2,00,000 and Current liabilities Rs.1,20,000 (Marks
6)
Ans16) (i) Operating Ratio = Operating Cost/Net Sales x 100
Operating Cost = Cost of goods sold + Selling and Distribution exp.
Cost of good sold = Opening Stock + Purchases + Wages - Closing stock
= 10000 + 120000 + 30000 - 30000
= 130000
... Operating Cost = 130000 + 10000
= 140000
Hence, operating ratio = 140000/300000 x 100
= 46.67%
(ii) Quick Ratio = Quick Assets/Current Liabilities
= 200000/120000 = 5 : 3
(iii) Working Capital Turnover Ratio = Sales/Working Capital
Working Capital = Current Assets - Current liabilities
= (30000 + 200000) - 120000
= 1,10,000
... 300000/110000 = 2.72 times
(iv) Debt. to total funds ratio = Long term debt./Capital Employed
Capital Employed = Equity share capital + Preference share capital + 12%
Debentures + General Reserve
= 100000 + 80000 + 60000 + 40000
= 280000
... 60000/280000 = 3 : 14
Q17) Prepare a Cash Budget of Som Ltd. for the months of January to March 1999 from the following information :
| Credit Purchases (Rs.) | Credit Sales (Rs.) | Wages (Rs.) | |
| 1998 | |||
| November | 1,00,000 | 1,50,000 | 30,000 |
| December | 2,50,000 | 2,00,000 | 40,000 |
| 1999 | |||
| January | 2,00,000 | 3,50,000 | 50,000 |
| February | 3,00,000 | 2,00,000 | 60,000 |
| March | 4,00,000 | 2,50,000 | 50,000 |
(ii) Suppliers allowed credit of two months and a credit of two months is allowed to the customers.
(iii) Lag in payment of wages: one month.
Ans. 17)
Som Ltd. Cash Budget for the period Jan - March, '99
| Particulars | Jan | Feb | March |
| Expected Cash
balance Estimated cash Inflows: Collection from Debtors Total Cash Inflows (A) Estimated Cash outflows Payments to Creditors Wages Total cash outflows (B) Estimated closing balance (A-B) |
70000 150000 220000 100000 40000 140000 80000 |
80000 200000 280000 250000 50000 300000 - 20000 |
-
20000 350000 330000 200000 60000 260000 70000 |
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