CBSE Set Qa8a Accounts Sample Test Papers For Class 12th for students online
Accounts Class - XII
(CBSE)
You are on Set no 3 Answer 1 to 6
PART 'A' (Accounting III)
Q2) What are the alternatives
available to a company for the allotment of debentures when there is
over-subscription of debentures? (Marks 3)
Ans2) In case of over-subscription of shares :
(i) The company may reject same applications, i.e the application money received
is returned back.
(ii) It may not allot any share to some applicants, whereas it may make pro-rata
allotment to other applicants.
(iii) It may not 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.
Q3) P and Q are partners in a
firm sharing profits in the ratio 5 : 3. They admitted R and S as a new partner.
P surrendered 1/2 of his share in favour of R and Q surrendered 1/4th of his
share in favour of S. Calculate the new profit sharing ratio of P, Q, R and S.
(Marks 3)
Ans3) P's sacrifice = 1/2 x 5/8 = 5/16 (R's gain)
Q's sacrifice = 1/4 x 3/8 = 3/32 (S's gain)
P's new share = Old share - sacrifice
= 5/8 - 5/16 = 5/16
Q's new share = Old share - sacrifice
= 3/8 - 3/32 = 9/32
... New Profit sharing ratio :
P : Q : R : S
=5/16 : 9/32 : 5/16 : 3/32
= 10 : 9 : 10 : 3
Q5) O and P were partners in
a firm sharing profits and losses equally. Their firm was dissolved on 15th
March 1999, which resulted in a loss of Rs. 50,000. On that date the capital
account of O showed a credit balance of Rs. 40,000 and the capital account of P
showed a credit balance of Rs. 50,000 . There was a cash balance of Rs. 40,000
on the date of dissolution.
You are required to pass the necessary journal entries for : (i) the transfer of
loss to the capital accounts of the partners and (ii) making final payment to
the partners. (Marks 4)
Ans5)
| Date | Particulars | LF | Amt. Dr | Amt. Cr |
|
O's Capital A/c Dr
P's Capital A/c Dr To Realisation A/c (Being the dissolution loss transferred to partners in their profit sharing ratio). O's Capital A/c Dr P's Capital A/c Dr To Cash A/c (Being the final payment made to partners) |
25000 |
|
Working Notes :
Partners' Capital A/C
| O | P | O | P | ||
| To Realisation
(Loss) To Cash |
25000 15000 40000 |
25000 25000 50000 |
By balance b/d | 40000 _____ 40000 |
50000 _____ 50000 |
Q6) Ashoka Ltd. purchased
machinery worth Rs. 99,000 from Sona Ltd. The payment was made by issue of 12%
debentures of Rs. 100 each. Pass necessary Journal Entries for the purchase of
machinery and issue of debentures when :
(i) Debentures are issued at par.
(ii) Debentures are issued at 10% discount.
(iii) Debentures are issued at 10% premium. (Marks 4)
Ans6) Working Notes :
Cost of machinery = 99000
(i) When debentures issued at pars
No. of debentures = 99000/100
= 990
(ii) When debentures issued at 10% discount :
No. of debentures = 99000/90
= 1100
(iii) When debentures issued at 10% premium :
No. of debentures = 99000/110
= 900
Journal
| Machinery A/c......................Dr To Sona Ltd (Being machinery purchased for Rs. 99000) Sona Ltd. ......................Dr To 12% Debentures (Being amount paid by issuing 990 debentures of 100 each in full settlement) Sona Ltd. ......................Dr Discount on Issue of Debentures Dr To 12% Debenture (Being amount paid by issuing 1100 debentures of 100 each at 10% discount) Sona Ltd. ......................Dr To 12% Debentures To premium on Issue of Debentures (Being amount paid by issuing 900 debentures of 100 each at 10% premium) |
99000 99000 99000 11000 99000 |
99000 99000 110000 90000 9000 |
Q13) Prepare a comparative income statement of Varun Ltd. with the help of the following information: (Marks 5)
| 1997 | 1998 | |
| Rs. | Rs. | |
| Sales | 2,00,000 | 4,00,000 |
| Cost of goods sold | 50% of sales | 60% of Sales |
| Indirect expenses | 15% of Gross Profit | |
| Rate of Income Tax | 40% of Net Profit before Tax | |
Ans13)
Varun Ltd.
Comparative Income Statement
for the year ended 1997 and 1998
| Sales Less: Cost of goods sold Gross profit Less: Indirect Expenses Net Profit before tax Less: Income Tax Net Profit after tax |
200000 100000 100000 15000 85000 34000 51000 |
400000 240000 160000 24000 136000 54400 81600 |
200000 140000 60000 9000 51000 20400 30600 |
100% 140% 60% 60% 60% 60% 60% |
Q14) Briefly explain the meaning and significance of any two
of the following ratios :
(i) Debt to total funds ratio;
(ii) Debtor's turnover ratio and
(iii) Net profit ratio. (Marks 5)
Ans14) Debtors Turnover Ratio :
This ratio indicates the relationship between net credit sales and average trade
debtors
= Net credit sales
Average Trade Debtors
The debtors are gross, i.e. before adjusting for provision for bad debts.
The ratio helps to evaluate efficiency in management regarding collection of
amount from debtors. Higher the ratio, the more prompt is collection from
debtors.
Net Profit Ratio :
It is a measure of relationship between net profit and net sales. It is
calculated as :
Net Profit x 100
Net sales
The term net profit means net profit before tax or after tax.
It is a measure of operational efficiency of the enterprise. It also indicates
proportion of sales available to management for payment of dividend and creating
reserves for future growth. Higher the ratio, the better is the firms capacity
to withstand economic risks and adverse conditions.
(iv) Debt. to total funds Ratio = Long term debts/(Long term funds +
Shareholders funds)
Long term funds + Shareholders funds
= 600000 + 500000 + 300000 + 100000
= 1500000
... Debt to total funds ratio = 600000/1500000
= 2 : 5
Q15) 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 equity ratio
Information: Equity Share Capital Rs. 50,000; 12% Preference Share
Capital Rs. 40,000; 12 % Debentures Rs. 30,000; General Reserve Rs. 40,000;
Sales Rs. 3,00,000; Opening stock Rs. 20,000; Purchases Rs. 1,40,000; Wages Rs.
30,000; Closing Stock Rs. 40,000; Selling and distribution expenses Rs. 18,000;
Other current assets Rs. 1,00,000 and Current liabilities Rs.60,000. (Marks
6)
Ans15) (i) Operating Ratio
= Operating Cost/Net Sales x 100
Operating cost = cost of goods sold + selling and Distribution Exp.
Cost of goods sold = 20000 + 140000 + 30000 - 40000
= 150000
... 168000/300000 x 100 = 56%
(ii) Quick Ratio = Quick Assets/Current Liabilities
= 100000/60000
= 5 : 3
(iii) Working Capital Turnover Ratio = Sales/Working Capital
Working Capital = Current Assets - Current Liabilities
= (100000 + 40000) - 60000
= 80000
... 300000/80000
= 3.75 times.
(iv) Debt Equity Ratio = Debt./Equity
Equity = Eq share capital + 12% Pref. Share capital + General Reserve.
= 50000 + 40000 + 40000
= 130000
Debt. = 12% Debentures
... 30000/130000
Thus ratio = 3 : 13
= 0.2 : 1
Q17) Prepare a Cash Budget of Om Prakash Ltd. for the months of January to March 1999 from the following information:
| Credit Purchases (Rs.) | Credit Sales (Rs.) | Wages (Rs.) | |
| 1998 | |||
| November | 50,000 | 75,000 | 10,000 |
| December | 1,10,000 | 80,000 | 20,000 |
| 1999 | |||
| January | 60,000 | 1,30,000 | 20,000 |
| February | 1,50,000 | 2,00,000 | 40,000 |
| March | 2,00,000 | 2,50,000 | 20,000 |
(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. (Marks 6)
Ans17)
Om Prakash 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) |
50000 75000 125000 50000 20000 70000 55000 |
55000 80000 135000 110000 20000 130000 5000 |
5000 130000 135000 60000 40000 100000 35000 |
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