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ISC Class XII Sample / Model Paper 2024 : Accounts : Term

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Kena Motiwala
Podar International School ICSE, Nerul, Navi Mumbai

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Accounts Test -12.09.2024 Q1 Answer all the questions mentioned in sub-parts (i) to (x) (i) Following is the information extracted from the books of Max Ltd. [1] 6% of debentures (1/5 of the debentures to be redeemed on 31.03.23) 2,00,000. What amount will be shown as long-term liabilities while preparing the Balance sheet as per the schedule III of Companies Act 2013 as on 31.03.2022. (a) 2,00,000 (b) 40,000 (c) 1,60,000 (d) 1,00,000 (ii) Amit, Rakesh and Hemant are partners in a firm sharing profits and losses in the ratio of 2:2:1. Their capitals (fixed) are 1,00,000; 80,000 and 70,000 respectively. For the year ended 31.03.21 interest on capital was credited to them @9%p.a instead of 12%p.a. A) The error in Rakesh s capital /current A/c will rectified by: (i) Debiting his capital, A/c by 600 (ii) Crediting his current A/c by 600 (iii) Crediting his capital, A/c by 600 (iv) Debiting his current A/c by 600 [1] (iii) Purple Ltd. took over assets of 7,00,000 and liabilities of 60,000 of Purple Ltd. fora purchase consideration of 6,30,000 payable by the issue of 10% Debentures of 100 each at a premium of 10% and if need be, a part of the purchase consideration in cash. [1] How will the company meet the purchase consideration? (a) By the issue of 5,72,727, 10% Debentures at a premium of 57,272 with no cash. (b) By the issue of 5,72,000, 10% Debentures at a premium of 57,200 and cash of 800. (c) By the issue of 5,72,720, 10% Debentures at a premium of 57,272 and cash of 8. (d) By the issue of 5,72,700, 10% Debentures at a premium of 57,270 and cash of 30. (iv) What is the maximum amount of debentures which an unlisted company, other than a NBFC and HFC, can redeem out of its capital? [1] (v) State one similarity between call-in arrear and call -in advance [1] (vi) What is the accounting treatment when shares are issued to promoters for consideration other than cash? [1] (vii) Mention the name and explain the part of capital of a company which is called up only on its winding up. [1] (viii) What are the circumstances in which capital of a partner fluctuates,when the capital are fixed? [1] (ix) Assertion : Goodwill is a fictitious asset. [1] Reason : Goodwill has a realisable value. Which one of the following is correct? (a) Both Assertion and Reason are correct, and Reason is the correct explanation for Assertion. (b) Both Assertion and Reason are correct, but Reason is not the correct explanation for Assertion. (c) Assertion is false and Reason is true. (d) Assertion is true and Reason is false (x) Assertion: Batman, a partner in a firm with four partners has advanced a loan of 50,000 to the firm for the last six months of the financial year without any agreement. He claims an interest on loan of 3,000 despite the firm being in loss for the year. [1] Reasoning: In the absence of any agreement / provision in the partnership deed, provisions of Indian Partnership Act, 1932 would apply. a) Both A and R are correct, and R is the correct explanation of A. b) Both A and R are correct, but R is not the correct explanation of A. c) A is correct but R is incorrect. d) A is incorrect but R is correct. Attempt all questions from Q2 to Q10 Q2) Param, Dharam and Karam were partners with fixed capital of 40,000, 32,000and 24,000.After distributing the profit of 48,000 for the year ended 31st March 2022 in their agreed ratio of 3 : 1 : 1 it was observed that: (1) Interest on capital was provided at 10% p.a. instead of 8% p.a. (2) Salary of 12,000 was credited to Param instead of Dharam. You are required to pass a single journal entry in the beginning of the next year to rectify the above omissions. OR [3] Cheese and Slice are equal partners. Their capitals as on April 01, 2022 were Rs. 50,000 and Rs.1,00,000 respectively. After the accounts for the financial year ending March 31, 2023 have been prepared, it is observed that interest on capital @ 6% per annum and salary to Cheese @ 5,000 p.a, as provided in the partnership deed has not been credited to the partners capital accounts before distribution of profits. You are required to give necessary rectifying journal entries. Q3) Lilly Ltd. forfeited 100 shares of 10 each issued at10% premium ( 8 called up ) on which a shareholder did not pay 3 of allotment (including premium) and first call of 2. Out of these 60 shares were reissued to Ram as fully paid for 8 per share and 20 shares to Suraj as fully paid up @ 12 per share at different intervals of time. You are required to prepare a Share Forfeiture account. [3] Q4) Unicorn Ltd. (a listed NBFC) redeems its 8,000, 10% Debentures of 100 each at a premium of 5 % in instalments, as follows: [3] Date of Redemption Debentures to be redeemed 31st March, 2021 2,000 31st March, 2022 2,000 31st March, 2023 4,000 You are required to prepare: (i) The Debenture Redemption Investment Account for the years 2021-22 and 2022-23. (ii) 10% Debentures Account for the year 2021-22. OR Shikhar Ltd., an unlisted manufacturing company, had 30,000, 6% Debentures of 100 each due for redemption at par on 31st March, 2023. On this date the company had the required amount of 3,00,000 in its Debenture Redemption Reserve. The Debenture Redemption Investment, which was purchased on 30th April, 2022, was realized at 101% on the date of redemption of the debentures and the debentures were redeemed. You are required to pass journal entries in the books of the company for the year 2022-23. (Ignore interest on debentures Q5) Beena and Mona are partners in a firm. They admit Tara on 1st April, 2022, for 1 4 share in the profits of the firm. On an average, the profits earned by Beena and Mona are 21,000. The average capital employed by the firm is 1,50,000. The normal rate of return in the industry is 10%. It is decided to value goodwill on the basis of four years purchase of profits in excess of profits @ 10% on the money invested. You are required to: (i) Calculate the goodwill of the firm. (ii) Tara s share of goodwill. [3] Q6) From the information of Newton Ltd. given below, you are required to show how the relevant items will appear in the company s Balance Sheet (an extract) as at 31st March 2023. The authorised capital of Newton Ltd. consisted of 3,000, 10% Preference Shares of 100 each and 8,000 Equity Shares of 100 each, out of which: (a) 1,000, 6% Preference shares were issued to the public, fully called and paid up. (b) 3,000 Equity shares were issued which were fully called up. (c) There were arrears of 20 per share on 400 Equity shares. Particulars ( ) Mortgage Debentures 50,000 Bank Overdraft 25,000 Balance in Statement of P/L (Dr) 76,000 Freehold Property 50,000 OR Ajmera Ltd. raised the following loans in the year 2022-2023 12% Bank Loan from SBI on 1st April, 2016: 15,00,000 10,000; 10% Debentures of ` 100 each, redeemable at par in 4 equal yearly instalments, on 1st October, 2022: ` 10,00,000 The terms of the loans were: (i) The redemption of Debentures to begin from 30th September, 2023. (ii) Interest on the Bank Loan to be paid annually but interest on Debentures to be paid half- yearly. The company had not paid the interest, both on the Bank Loan and on the Debentures, till theBalance Sheet date. You are required to show the above items under Equity and Liabilities of the BalanceSheet of the company as at 31st March, 2023. [6] Q7) A) Under which head and sub-head following item appear in the balance sheet of the company as per Schedule III of companies Act 2013 [2] (i) Debentures (ii) Securities Premium (iii) Forfeited shares (iv) Unclaimed dividend B)At the time of reconstitution of a partnership firm, goodwill was valued on the basis of three years purchase of the weighted average profits of the last four years. The profits and losses of the preceding four years were: [4] Year Profit ( ) Weights 2019-20 ` 22,000 1 2020-21 ` 27,000 2 2021-22 ` 32,000 3 2022-23 ` 35,000 4 While valuing the goodwill of the firm it was found that the closing stock of the year 2021-22 was undervalued by 2,000. You are required to calculate the value of goodwill on the date of reconstitution of the firm. Q8) Devi Ltd on 1st April 2022 acquired assets of the value ( ) 6,00,000 and liabilities worth ( ) 70,000 from P & Co Ltd at an agreed value of ( ) 5,50,000.Devi Ltd issued 12% Debentures of ( ) 100 each at a premium of 10% in full satisfaction of purchase consideration.These debentures were redeemable 3 years later at a premium of 5%. You are required to pass journal entries in the books of Devi Ltd for both issue as well as redemption of debentures. [6] Q9) Amar and Vijay are in partnership sharing profits and losses in the ratio of 3:1. On 1st April, 2021, their capitals were 1,00,000 and 90,000. The terms of their partnership are as follows: (i) Interest on capital to be allowed at @ 6% per annum. (ii) Interest on drawings to be charged @ 4% per annum. (iii) Partners to get a salary of 1,000 each per month. (iv) Vijay to get a commission of 2% on the correct net profit. (v) Any partner taking a loan from the firm to be charged interest on it @ 8% per annum. Amar had borrowed 10,000 from the firm on 1st October, 2021. Vijay had withdrawn 8,000 on 1st July, 2021. During the year ending 31st March, 2022, the firm earned a net profit of 60,000 before any of the provisions mentioned in the partnership deed. You are required to prepare for the year ending 31st March, 2022: (i) Profit and Loss Appropriation Account. (ii) Amar s Capital Account. OR Krish and Shail entered into a partnership on 1st October, 2022, with capital contributions of 48,000 and 36,000 respectively.On 1st January, 2023, Shaiadvanced a loan of 12,000 to the firm. The terms of the partnership agreement are as follows: (a) Interest on Capital to be allowed at 12% per annum. (b) Interest on Drawings to be charged @ 10% per annum. (c) Krish to be entitled to a commission of 2% on the turnover. (d) Each partner to get a salary of 1,200 per month. (v) Profits and losses to be shared in the ratio of 4:3. The turnover for the period under consideration was [10 ] 2,00,000. The drawings of the partners were: Krish 4,000; Shail 2,000. The profit of the firm for the year ended 31st March, 2023, before providing for any interest was 1,10,000. You are required to prepare for the year 2022-23: (i) Profit and Loss Appropriation Account. (ii) Shail s Loan Account. Q10) A company offers 10,000 shares of `10 each to the public. The amount is payable as follows: On application `3 per share On allotment `2 per share On first call `3 per share On second call `2 per share Applications were received for 15,000 shares. The directors made the allotment as follows: i. No allotment to applicants for 3,000 shares. ii. Rest of the shares were allotted on pro-rata basis. All calls duly made and payment received in order except: i. Piku, a holder of 100 shares paid the two calls with allotment. ii. Pari, a holder of 200 shares fails to pay the first and second calls money. iii. Pinki, a holder of 100 shares fails to pay the second call money. You are required to: i. Pass the necessary journal entries to record the above transactions and ii. Prepare Calls in advance account. OR Zen Ltd. issued 10,000 equity shares of ` 10 each at a premium of ` 3 per share payable as: On Application ` 4 On Allotment ` 5 (including premium) On First Call ` 2 [10 ] The balance as and when required.The public applied for 12,000 shares. The company made pro-rata allotment to all the applicants. One shareholder who was allotted 900 shares paid the entire amount with allotment while another shareholder who had applied for 1,200 shares, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited.Of the forfeited shares, 800 were reissued at 7 per share. You are required to pass necessary journal entries in the books of Zen Ltd. Q11) SECTION - B (20 MARKS) Attempt all Questions [2] (A) From the following, calculate Operating Profit Ratio Revenue from Operations 6,00,000 Cost of Revenue from Operations 4,00,000 Discount received 50,000 Selling Expenses 60,000 Interest on Debentures 30,000 [2] (B) From the following information, calculate Debt Equity Ratio Liquid Ratio 1 5:1 Net Working Capital 60,000 Inventories 30,000 Total Assets 2,20,000 Total Debt 1,60,000 (C) The Debt Equity Ratio of a company is 2:1. State which of the following would improve, reduce or not change the ratio: (i) Issue of Equity Shares for the purchase of Plant and Machinery worth 4,00,000. [2] (ii) Sale of Furniture (Book Value 4,00,000) for 3,50,000 (D) State two difference between Current ratio and Quick ratio [2] [1] (E) The debt to equity ratio of a company is 1:2. Will Purchase of Tangible Asset by issuing debentures , increase, decrease or not change the ratio? (F) How is the provision for doubtful debt treated while calculating Trade receivable turnover ratio and current ratio? Q12) (A) From the following income statement of ZX Ltd, you are required to prepare a Common Size Income Statement. Particulars 31.03.2023 Revenue from Operations 4,00,000 Expenses 50% of Revenue from Operations Interest on investments 10,000 Tax payable @ 40% [1] [3] (B) From the given particulars of Zee Ltd., the Trade Receivables Turnover Ratio of the company will be: [2] Particulars ( ) Revenue from Operations 12,00,000 Cash Revenue from Operations 25% of Credit Revenue from Operations Gross Debtors 1,90,000 Bills Receivable 50,000 Provision for Doubtful Debts 10,000 [1] (C)The correct formula for computing Earning per share is ____________ [2] (D)The Current Ratio of a company is 1 8:1 and its Quick Ratio is 1 6:1.From the following transactions, pick out the transaction which involves an increase in both the Current Ratio and Quick Ratio: (a) Goods worth 10,000 sold at a loss of 2,000. (b) Insurance premium of 3,000 paid in advance. (c) Plant and Machinery purchased for 9,000. (d) Bills Payable of 2,000 honoured on the due date. (E) State two differences between Comparative balance sheet and common size balance sheet. (F) What will be the Interest Coverage Ratio of Kamal Ltd. From the particulars given below? Net Profit after Tax `6,00,000 12% Debentures of `100 each `40,00,000 Tax rate 40% (a) 2.08 times (b) 3.08 times (c) 1.25 times (d) 3.25 times ************************************************************************** [1] [1]

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