Accountancy Past Paper WEDNESDAY (29/3/17) PDF

Okay, here's the conversion of the document into a structured markdown format. ### Central Board of Secondary Education, Delhi Senior School Certificate Examination (Class XII) To be filled in as per the candidate's admit card: * Subject: **ACCOUNTANCY** * Subject Code: **055** * Day & Date...

Okay, here's the conversion of the document into a structured markdown format. ### Central Board of Secondary Education, Delhi Senior School Certificate Examination (Class XII) To be filled in as per the candidate's admit card: * Subject: **ACCOUNTANCY** * Subject Code: **055** * Day & Date of Examination: **WEDNESDAY (29/3/17)** * Medium of answering the paper: **ENGLISH** | | | | :------------------------------ | :-------- | | Code Number | **67/1** | | Write code No. as written an the top of the question paper | | | No of supplementary answer -book(s) used | **2** | | Person with Disabilities: | **No** | | If physically challenged, tick the category | | * B= Visually Impaired * D= Hearing Impaired * H= Physically Challenged * S= Spastic * C= Dyslexic * A= Autistic Whether writer provided: **No** If Visually challenged, name of software used: * Each letter be written in one box and one box be left blank between each part of the name. In case Candidate's Name exceeds 24 letters, write first 24 letters. * For Office Use: 1413421, 055/03527 ## Accountancy notes- Cash flow statement and retirement **March 29, 2017, Wednesday** **PART B** Cash flow statement of SRS Ltd for year ended 31/3/16 as per AS-3 (Revised) | Particulars | Details (₹) | Amt. (₹) | | :---------------------------------------- | :---------- | :------- | | I. Cash flow from operating activities | | | | A. Net profit before tax & extraordinary items (WN) | | 175000 | | Adjustments for noncash & nonoperating items | | | | B. Items to be added: | | | | Debenture Interest (12% X 175000) | 21000 | | | Loss on sale of machine | 5000 | | | Depreciation on machine (WN) | 55000 | | | Goodwill written off (75000 - 5000) | 25000 | 106000| | **C. Operating profit before working capital changes** | | 281000 | | D. Less: Increase in current assets. Decrease in current liabilities | | | | Increase in stock in trade (61000\_-36000) | | (25000) | | Cash flow from operating activities | | 256000 | | II. Cash flow from investing activities | | | | Proceeds from sale of machinery (WN) | 15000 | | | Payment for purchase of machinery (WN) | (355000) | | | Payment for purchase of current investments (75000-50000) | (25000) | | | Cash used in investing activities | | (365000) | | III. Cash flow from financing activities | | | | Proceeds from share capital (450,000-3,500) | 100000 | | | Proceeds from debentures issued (225,000-175,000) | 5000 | | | Proceeds from bank overdraft (75000 -37500) | 37500 | | | Debenture Interest paid (12% of 175000) | (21000) | | | Dividend paid | (625000) | | | Cash flow from financing activities | | 104000 | | IV. Net decrease in cash & cash equivalents (I + II + III) | | (5000) | | V. Add: Opening cash & cash equivalents | | | | Cash & cash equivalents | 26500 | | | Current investments | 35000 | 61500 | | VI. Closing cash & cash equivalents | | 56500 | | Cash & cash equivalents | 36500 | | | Current investments | 20000 | 56500 | WN: 1. Net Profit before tax & extraordinary items: Closing Surplus i.e. balance in Statement of Profit & Loss. Opening surplus i.e. Balance in statement of Profit & loss. 1. Cost of machinery = ₹40000 2. Accumulated depreciation =₹20000 Book Value =₹2000 3. Loss on sale = ₹5000 Sales proceeds = ₹15000 *Accounting table:* | Dr. Date | Particulars | ₹ | Cr. Date | Particulars | ₹ | | :--------- | :----------------------------------------------- | :---- | :--------- | :------------------------------------------------ | :---- | | 1/4/15 | To balance bld | 522500| 31/3/16| By bank a/c |15000| | 31/3/16 | To bank a/c (B/F) | 355000 | 31/3/16 | By accumulated depreciation | 20000 | | | | | | By Statement off |5000| | | | | Loss 31/3/16| By balance a/c| 837500| | | | 877500| | | 877500| | Date | Particulars | ₹ | Date | Particulars | ₹ | | :----- | :------------------------------ | :----- | :----- | :-------------------------------- | :----- | | 31/3/16| To machinery a/c |20000 |1/4/15| By balance a/c |70000| | 31/3/16 | To balance a/c |105000 | 31/3/16 |By depreciation a/c | 55000| | | |125000 | | | 125000 | ## Values and Capital **Values:** * Honesty * Transparency * Respect for Law * Ethics | Item | Major Head | Sub Head | | :------------------ | :--------------------------------------- | :----------------------------------------- | | Capital Resources | Shareholder Funds | Reserves & Surplus | | Calls in advance | Current Liabilities | Other current liabilities | **Q21. Proprietary Ratio** Proprietary Ratio = Proprietor's Funds / Total Assets = 0.8:1 * I. Ratio will decrease because cash will increase, total assets increase but proprietor's funds remain same. * II. Ratio will not change because one asset (cash) decreases & other assets (machinery) increases. Thus, the amount of total assets. * III. Ratio will \[decrease] because both proprietors funds (preference shares) & total assets (cash) decrease by ₹100000. * IV. Ratio will \[increase] because both proprietors funds (Equity shares) & Total asset (machinery) will increase by 400000. **Q 20. Analysis of Financial Statements** The process of division, establishing relationships and interpretation thereof, to understand the working and financial position of enterprise is called financial statement analysis. Various users like management, investors, etc use various tools like accounting ratios, comparative statements etc to analyze financial statements **Objectives:** 1. Assessing short term & long term solvency of business: Short term & long term solvency of business can be assessed using financial statements. Creditors or suppliers are interested in knowing short term solvency, lenders/debenture holders are interested in knowing long term solvency of business. 2. Explainable and Understandable: Financial statement analysis helps to analyze the complicated matter in simplified manner. Charts & diagrams can be used to make the information more comprehensive. 3. Cash Flow of Statement Objectives:To ascertain the sources \[receipts] of cash & cash equivalents under operating, investing, financing activities. To ascertain the applications \[payments] of cash & cash equivalents under operating, investing, financing activities. **Q 18. Maturity Period:** Maturity Period: Almost 3 months from the data of acquisition. And **Journal Entries:** | Date | Particulars | Dr(₹) | Cr(₹) | | :----- | :------------------------------ | :---- | :---- | | | bank a/c Dr (WN) | | | | | To Equity Share application a/c | | | | |Being application money reserved| | | | | Equity share application a/c Dr | | | | | to equity share capial a/c | | | | | to Bank a/c | | | | | to Equity share allotment a/c | | | | |Being application money transferred To share capital ac| | | | | Equity share allotement c/c Dr | | | | | to equity share capital alc | | | | | Money Due! Being Allot ment | |Equity | | | bank a/c Dr (MM) | | 88900 | | | to Equity share capital a/c | | | | | (Being allotment money Received) | | | | Equity share capitol a/c Dr (100*6)| 600 | | | | to orefeited(forfeited) shares a/c | | 500 | | To equity share capital a/c | | | | * (iii) Loose tools Current assets Inventory * (iv) Bank of draft Current liabilities short term borrowings etc **WN 1) Total applications received:** WN Total applications shares applied 30*9 thousand to 50 thousand to = to = 150,000 ratio = value due on all = share share applied = ₹4000 / 10 = 4= allot street final 1st call and allotted is | Shares applied | Shares allotted | Application Money Receives | Application Money Due | excess | adjusted and | refund | | :------------- | :-------------- | :------------------------- | :-------------------- | :-------- | :------------- | :----- | | 80000 | 40000 | 160000 | 80000 | ₹80000 | ₹80000 | | | 25000 | 10000 | 50000 | 20000 | ₹30000 | ₹30000 | | | 45000 | nil | 90000 | nil | ₹90000 | nil | ₹90000 | Face Value of share = ₹10 Face value due on allotment 1st & final call = ₹10 -₹2-4 =₹4 Allotment money received = 88900 (Bey Application money tfd to equity ) Debentures holders alc Di To shares * WN Purchase shares *Accounting table:* | Date | Particulars | LD | CR(E) | | :------------------------ | :------------------- | :-- | :---- | | 31/3/16 | To machinery a/c | | | | 19/4/16 | To Balance ad | | | #### WN & Retirement Calculations #### Table |Date|Particulars| Lf | Dr (E) | CR(E)| |---|---|---|---|---| |1/11/16|Tina's current alc Dr | |soooo|| | | to meha's current alc|||sooooo| |(Being entry passed to adjust goodWill)|||| | ||||| 100000 shares of ₹10 ## NOTES Particulars: 1.) to share capital, capital authorized issued, 11000 equity share of ₹10 sub-scribed & fully paid up 78000 shares of ₹ 10 each. 2000 value ₹ 10 each subscribed but not fully paid calls in ## Journals *Journal entries related to capital and revenue **Note:** Debenture interest is shown under FINANCE COST in Statement of Profit & loss **Accounting table:** *Journal Dr and Cr tables