Accountancy Class XII Student Support Material 2019-20 PDF

STUDENT SUPPORT MATERIAL Session : 2019-20 Class-XII ACCOUNTANCY STUDENT SUPPORT MATERIAL Class-XII ACCOUNTANCY Session 2019-20 Kendriya Vidyalaya Sangathan New Delhi COMMERCE WITHOUT MORALITY IS A SIN  A WORD TO MY DEA...

STUDENT SUPPORT MATERIAL Session : 2019-20 Class-XII ACCOUNTANCY STUDENT SUPPORT MATERIAL Class-XII ACCOUNTANCY Session 2019-20 Kendriya Vidyalaya Sangathan New Delhi COMMERCE WITHOUT MORALITY IS A SIN  A WORD TO MY DEAR STUDENTS It gives me great pleasure in presenting the Students' Support Material to all KV students of class XII. The material has been prepared keeping in mind your needs when you are preparing for final exams and wish to revise and practice questions or when you want to test your ability to complete the question paper in the time allotted or when you come across a question while studying that needs an immediate answer but going through the text book will take time or when you want to revise the complete concept or idea in just a minute or try your hand at a question from a previous CBSE Board exam paper or the Competitive exam to check your understanding of the chapter or unit you have just finished. This material will support you in any way you want to use it. A team of dedicated and experienced teachers with expertise in their subjects has prepared this material after a lot of exercise. Care has been taken to include only those items that are relevant and are in addition to or in support of the text book. This material should not be taken as a substitute to the NCERT text book but it is designed to supplementit. The Students' Support Material has all the important aspects required by you; a design of the question paper, syllabus, all the units/chapters or concepts in points, mind maps and information in tables for easy reference, sample test items from every chapter and question papers for practice along with previous years Board exam question papers. I am sure that the Support Material will be used by both students and teachers and I am confident that the material will help you perform well in your exams. Happy learning! Santosh Kumar Mall Commissioner, KVS  FOREWORD The Students' Support Material is a product of an in-house academic exercise undertaken by our subject teachers under the supervision of subject expert at different levels to provide the students a comprehensive, yet concise, learning support tool for consolidation of your studies. It consists of lessons in capsule form, mind maps, concepts with flow charts, pictorial representation of chapters wherever possible, crossword puzzles, question bank of short and long answer type questions with previous years' CBSE question papers. The material has been developed keeping in mind latest CBSE curriculum and question paper design. This material provides the students a valuable window on precise information and it covers all essential components that are required for effective revision of the subject. In order to ensure uniformity in terms of content, design, standard and presentation of the material, it has been fine tuned at KVS Hqrs level. I hope this material will prove to be a good tool for quick revision and will serve the purpose of enhancing students' confidence level to help them perform better. Planned study blended with hard work, good time management and sincerity will help the students reach the pinnacle of success. Best of Luck. U.N. Khaware Additional Commissioner (Acad.)  Accountancy STUDENT SUPPORT MATERIAL ADVISORS Shri Santosh Kumar Mall, IAS, Commissioner, KVS (HQ), New Delhi Sh. Saurabh Jain, IAS Sh. U.N. Khaware, Additional. Commissioner (Admn.) Additional. Commissioner (Acad) KVS (HQ), New Delhi. KVS (HQ), New Delhi. CO-ORDINATION TEAM KVS (HQ)  Dr.E. Prabhakar, Joint Commissioner (Training/Finance) KVS (HQ), New Delhi.  Smt. Indu Kaushik, Deputy Commissioner (Acad), KVS (HQ), New Delhi.  Shri Ravindra Kumar Sharma, Assistant Education Officer, KVS (HQ), New Delhi. CONTENT TEAM  Mr. AVLJ Rao, Deputy Commissioner, Jammu Region, now at Bhubaneswar  Ms. Rekha Rani, PGT Commerce, KV No. 1Jalandhar  Mr. Sandeep Kumar, PGT Commerce, KV No. 3Jalandhar  Mr. Gurnam Singh, PGT Commerce, KV No. 4Jalandhar  Mr. Rajender Singh, PGT Commerce, KVSaraikhas  Mr. R. Venkateswar Rao, Principal, KV No.1, Tirupati  Mrs. Anjali Attri, Principal, KV Shalimar Bagh  Mrs. Ranjana Jha, Principal, KV Adilabad  Mr. T R Shanmugam, PGT Commerce, KV No.2, Golconda, Hyderabad  Mr. G Gurava Reddy, PGT Commerce, KV Bolarum, Secunderabad  Mrs. Mithali Basu, PGT Commerce, KV No.1, Uppal,Hyderabad  Mr. P. Venkata Ramana, PGT Commerce, KV Gachibowli Gpra Campus, Hyderabad  Mrs. C. Lalitha, PGT Commerce, KV Picket, Hyderabad  Mr. N. Balaji, PGT Commerce, KV No.2. Sri Vijayanagar,Visakhapatnam  Mrs. Raji Krishnan, PGT Commerce, KV Air Force Station, Hakimpet,Secunderabad  Mr. Shahzad Arabi, PGT Commerce, KV No.1,Tirupati REVIEW TEAM  Shri P.V.Sai Ranga Rao, Deputy Commissioner, KVS Hyderabad Region.  Shri K. Saseendran, Assistant Commissioner, KVS Hyderabad Region.  Shri R.Venkateswar Rao,Principal,KV No.1 Tirupati.  Ms RanjanaJha,Principal,KV Adilabad.  Shri T.R.Shanmugam, PGT(Commerce),KV No.2 Golconda, Hyderabad.  Shri G. GuravaReddy,PGT (Commerce),KV Bolarum, Secunderabad.  Ms MaithaliBasu, PGT (Commerce),KV No.1 Uppal,Hyderabad.  Shri P Venkata Ramana, PGT (Commerce),KVGachibowliGpra Campus, Hyderabad.  Ms C. Lalitha, PGT (Commerce),KV Picket Hyderabad.  Shri N.Balaji,PGT( Commerce),KV No.2 Sri Vijaynagar,Vishakhapatnam.  Ms RajiKrishanPGT(Commerce),KV Air Force Station,Hakimpet,Secunderabad.  Shri ShahzadArabi, PGT (Commerce),KV No.1 ,Tirupati. Typing, Type-setting & Designing M/s Choudhary Printing Press Near Mohanpur Devi Asthan, Punaichak, Patna Mob.: 0943096087, 09835492012 T/F: 0612-2546751 E-mail: [email protected]  CONTENTS PART Name of Unit Marks Page PART A Accounting for Not-for-Profit Organizations, Partnership Firms and Companies UNIT 1.Financial Statements of 10 2 – 15 Not-for-Profit Organizations UNIT 2.Accounting For Partnership Firms 30 16 – 66 UNIT 3.Accountancy For Companies 20 67 – 93 Total 60 PART B Financial Statement Analysis UNIT 4.Analysis of Financial Statements 12 94 – 118 UNIT5.CASH FLOW STATEMENT 08 119 – 137 Total 20 GRAND TOTAL 80 List of Accountancy Key terms, Formats & Formulas 138 – 142 MODEL PAPERS (1-3) 143 - 198  CBSE CURRICULAM CLASS XII ACCOUNTANCY FOR 2019-20 BOARD EXAM Part A: Accounting for Not-for-Profit Organizations, Partnership Firms and Companies Unit 1: Financial Statements of Not-for-Profit Organizations Units/Topics Learning Outcomes  Not-for-profit organizations: concept. After going through this Unit, the students will be able  Receipts and Payments Account: features and to: preparation.  State the meaning of a Not-for-profit  Income and Expenditure Account: features, organization and its distinction from a profit preparation of income and expenditure account making entity. and balance sheet from the given receipts and  State the meaning of receipts and payments payments account with additional information. account, and understanding its features. Scope:  Develop the understanding and skill of (i) Adjustments in a question should not exceed 3 or 4 in preparing receipts and payments account. number and restricted to subscriptions, consumption of  State the meaning of income and expenditure consumables and sale of assets/ old material. account and understand its features. (ii) Entrance/admission fees and general donations are  Develop the understanding and skill of to be treated as revenue receipts. preparing income and expenditure account and (iii) Trading Account of incidental activities is not to be balance sheet of a not-for-profit organization prepared. with the help of given receipts and payments account and additional information. Unit 2: Accounting for Partnership Firms Units/Topics Learning Outcomes  Partnership: features, Partnership Deed. After going through this Unit, the students will be able  Provisions of the Indian Partnership Act 1932 in to: the absence of partnership deed.  State the meaning of partnership, partnership  Fixed v/s fluctuating capital accounts. firm and partnership deed. Preparation of Profit and Loss Appropriation  Describe the characteristic features of account- division of profit among partners, partnership and the contents of partnership guarantee of profits. deed.  Past adjustments (relating to interest on capital,  Discuss the significance of provision of interest on drawing, salary and profit sharing Partnership Act in the absence of partnership ratio). deed.  Goodwill: nature, factors affecting and methods  Differentiate between fixed and fluctuating of valuation - average profit, super profit and capital, outline the process and develop the capitalization. understanding and skill of preparation of Profit and Loss Appropriation Account. Note: Interest on partner's loan is to be treated as a  Develop the understanding and skill of charge against profits. preparation profit and loss appropriation Goodwill to be adjusted through partners capital/ current account involving guarantee of profits. account or by raising and writing off goodwill (AS 26)  Develop the understanding and skill of making past adjustments. Accounting for Partnership firms - Reconstitution and  state the meaning, nature and factors affect tin Dissolution. goodwill  Change in the Profit Sharing Ratio among the  Develop the understanding and skill of valuation existing partners - sacrificing ratio, gaining of goodwill using different methods. ratio, accounting for revaluation of assets and  State the meaning of sacrificing ratio, gaining reassessment of liabilities and treatment of ratio and the change in profit sharing ratio reserves and accumulated profits. Preparation of among existing partners. revaluation account and balance sheet.  Develop the understanding of accounting  Admission of a partner - effect of admission of a treatment of revaluation assets and partner on change in the profit sharing ratio, reassessment of liabilities and treatment of treatment of goodwill (as per AS 26), treatment reserves and accumulated profits by preparing for revaluation of assets and re- assessment of revaluation account and balance sheet. liabilities, treatment of reserves and accumulated  Explain the effect of change in profit sharing profits, adjustment of capital accounts and ratio on admission of a new partner. preparation of balance sheet.  Develop the understanding and skill of treatment  Retirement and death of a partner: effect of of goodwill as per AS-26, treatment of retirement / death of a partner on change in profit revaluation of assets and re-assessment of sharing ratio, treatment of goodwill (as per AS liabilities, treatment of reserves and accumulated 26), treatment for revaluation of assets and profits, adjustment of capital accounts and reassessment of liabilities, adjustment of preparation of balance sheet of the new firm. accumulated profits and reserves, adjustment of  Explain the effect of retirement / death of a capital accounts and preparation of balance sheet. partner on change in profit sharing ratio. Preparation of loan account of the retiring partner.  Develop the understanding of accounting  Calculation of deceased partner’s share of treatment of goodwill, revaluation of assets and profit till the date of death. Preparation of re-assessment of liabilities and adjustment of deceased partner’s capital account and his accumulated profits and reserves on retirement executor’s account. / death of a partner and capital adjustment.  Dissolution of a partnership firm: meaning of  Develop the skill of calculation of deceased dissolution of partnership and partnership firm, partner's share till the time of his death and types of dissolution of a firm. Settlement of prepare deceased partner's executor's account. accounts - preparation of realization  Discuss the preparation of the capital  account, and other related accounts: capital accounts of the remaining partners and the balance accounts of partners and cash/bank a/c sheet of the firm after retirement / death of a (excluding piecemeal distribution, sale to a partner. company and insolvency of partner(s)).  Understand the situations under which Note: partnership firms can be dissolved. The realized value of each asset must be given at the time  Develop the understanding of preparation of of dissolution. realization account and other related accounts. In case, the realization expenses are borne by a partner, clear indication should be given regarding the payment thereof. Unit-3 Accounting for Companies Units/Topics Learning Outcomes Accounting for Share Capital After going through this Unit, the students will be able  Share and share capital: nature and types. to:  Accounting for share capital: issue and  State the meaning of share and share capital and allotment of equity and preferences shares. differentiate between equity shares and Public subscription of shares - over subscription preference shares and different types of share and under subscription of shares; issued at par capital. and at premium, calls in advance and arrears  Understand the meaning of private placement of (excluding interest), issue of shares for shares and Employee Stock Option Plan. consideration other than cash.  Explain the accounting treatment of share  Concept of Private Placement and Employee capital transactions regarding issue of shares. Stock Option Plan(ESOP).  Develop the understanding of accounting  Accounting treatment of forfeiture and re- treatment of forfeiture and re-issue of issue of shares. forfeited shares.  Disclosure of share capital in the Balance  Describe the presentation of share capital in the Sheet of accompany. balance sheet of the company as per schedule III part I of the Companies Act2013. Accounting for Debentures  Explain the accounting treatment of different  Debentures: Issue of debentures at par, at a categories of transactions related to issue of premium and at a discount. Issue of debentures for debentures. consideration other than cash; Issue of debentures  Develop the understanding and skill of writing of with terms of redemption; debentures as collateral discount / loss on issue of debentures. security- concept, interest on debentures. Writing  Understand the concept of collateral security and off discount / loss on issue of debentures. its presentation in balance sheet.  Develop the skill of calculating interest on Note: Discount or loss on issue of debentures to be written debentures and its accounting treatment. off in the year debentures are allotted from Security  State the meaning of redemption of Premium Reserve (if it exists) and then from Statement of debentures. Profit and Loss as Financial Cost (AS 16).  Develop the understanding of accounting  Redemption of debentures-Methods: Lump treatment of transactions related to redemption of sum, draw of lots. debentures by lump sum, draw of lots and  Creation of Debenture Redemption Reserve. Creation of Debenture Redemption Reserve. Note: Related sections of the Companies Act, 2013 will apply. Part B: Financial Statement Analysis Unit 4: Analysis of Financial Statements Units/Topics Learning Outcomes Financial statements of a Company: After going through this Unit, the students will be able Statement of Profit and Loss and Balance Sheet in to: prescribed form with major headings and sub headings  Develop the understanding of major headings and (as per Schedule III to the Companies Act,2013) sub-headings (as per Schedule III to the Companies Act, 2013) of balance sheet as per the Note: Exceptional items, extraordinary items and prescribed norms/formats. profit (loss) from discontinued operations are  State the meaning, objectives and limitations of excluded. financial statement analysis.  Financial Statement Analysis: Objectives,  Discuss the meaning of different tools of importance and limitations. 'financial statements analysis'.  Tools for Financial Statement Analysis:  Develop the understanding and skill of Comparative statements, common size statements, preparation of comparative and common size cash flow analysis, ratio analysis. financial statements.  Accounting Ratios: Meaning, Objectives,  State the meaning, objectives and classification and computation. significance of different types of ratios.  Liquidity Ratios: Current ratio and Quick  Develop the understanding of computation of ratio. current ratio and quick ratio.  Solvency Ratios: Debt to Equity Ratio, Total  Develop the skill of computation of debt equity Asset to Debt Ratio, Proprietary Ratio and ratio, total asset to debt ratio, proprietary ratio and Interest Coverage Ratio. interest coverage ratio.  Activity Ratios: Inventory Turnover Ratio,  Develop the skill of computation of inventory Trade Receivables Turnover Ratio, Trade turnover ratio, trade receivables and trade payables ratio and working capital turnover  Payables Turnover Ratio and Working ratio. Capital Turnover Ratio.  Develop the skill of computation of gross profit  Profitability Ratios: Gross Profit Ratio, ratio, operating ratio, operating profit ratio, net Operating Ratio, Operating Profit Ratio, Net profit ratio and return on investment. Profit Ratio and Return on Investment. Note: Net Profit Ratio is to be calculated on the basis of profit before and after tax. Unit 5: Cash Flow Statement Units/Topics Learning Outcomes  Meaning, objectives and preparation (as per AS After going through this Unit, the students will be 3 (Revised) (Indirect Method only) able to:  State the meaning and objectives of cash flow Note: statement. Adjustments relating to depreciation and amortization,  Develop the understanding of preparation of profit or loss on sale of assets includes investments, Cash Flow Statement using indirect method as dividend (both final and interim) and tax. per AS 3 with given adjustments. Bank overdraft and cash credit to be treated as short term borrowings. Current Investments to be taken as Marketable securities unless otherwise specified. Note: Previous years’ Proposed Dividend to be given effect, as prescribed in AS-4, Events occurring after the Balance Sheet date. Current years’ Proposed Dividend will be accounted for in the next year after it is declared by the shareholders.  Suggested Question Paper Design Accountancy (Code No. 055) Class XII (2019-20) Theory:80Marks 3hrs. Project: 20 Marks S Objective Short Short Long Long N Typology of Questions Type/ Answer Answer Answer Answer Marks MCQ I II I II o 1 Mark 3 Marks 4 Marks 6 Marks 8 Marks 1 Remembering: Exhibit 5 1 1 1 - 18 memory of previously learned material by recalling facts, terms, basic concepts, and answers. 2 Understanding: Demonstrate 5 1 1 1 1 26 understanding of facts and ideas by organizing, comparing, translating, interpreting, giving descriptions, and stating main ideas 3 Applying: Solve problems to 5 - 2 1 - 19 new situations by applying acquired knowledge, facts, techniques and rules in a different way. 4 Analyzing and Evaluating: 5 - 1 - 1 17 Examine and break information into parts by identifying motives or causes. Make inferences and find evidence to support generalizations. Present and defend opinions by making judgments about information, validity of ideas, or quality of work based on a set of criteria. Creating: Compile information together in a different way by combining elements in a new patter nor proposing alternative solutions. TOTAL 20x1=20 2x3=6 5x4=20 3x6=18 2x8=16 80 (32) There will be internal choice in questions of 3 marks, 4 marks, 6 marks and 8 marks. All questions carrying 8 marks will have an internal choice. Note: The Board has introduced Learning Outcomes in the syllabus to motivate students to constantly explore all levels of learning. However these are only indicative. These do not in any way restrict the scope of questions asked in the examinations. The examination questions will be strictly based on the prescribed question paper design and syllabus.  UNIT 1. FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ORGANIZATIONS LEARNING OBJECTIVES: 1. Identify the need for, and nature of accounting records relating to not-for –profit organisations. 2. List the principal financial statements prepared by not-for-profit organisations. 3. Prepare the receipts and Payments account and Income and Expenditure account. 4. Prepare Income and Expenditure account and Balance sheet from the given Receipts and Payments account. 5. Explain treatment of some peculiar items of Receipts and Payments such as subscriptions from members, special funds, legacies, sale of old assets, etc. MEANING: Not-for-profit organisations refers to the organisations that are used for the welfare of the society and are set up as charitable institutions which function without any profit motive. They also have to prepare the financial statements at the end of each accounting period and ascertain their income and expenditure and the financial position and submit them to the statutory authority called Registrar of societies. MAIN CHARECTERISTICS: 1. They are formed for providing service. 2. They are organised as charitable trusts and managed by executive committee elected by the members 3. The main sources of income are 1. Subscriptions 2. Donations 3. Legacies 4. Grant-in–aid 5. Income from investment etc. 4. The surplus generated is not distributed to the members but added to capital fund. ACCOUNTING RECORDS: 1. Receipts and Payments account 2. Income and Expenditure account 3. Balance Sheet. RECEIPTS AND PAYMENTS ACCOUNT: It is a summary of cash and bank transactions. It gives the summarized picture of various receipts and payments. It includes receipts of all nature (Capital, Revenue, Current year, previous year and next year) It does not show non-cash items. It starts with opening balance of cash and bank and ends with cash balance and bank / bank overdraft balance. From the following particulars taken from the cash book of a health club, prepare receipts and Payments account: Particulars Rs. Opening balance: Cash in hand 5,000 Cash at bank 25,000 Subscriptions 1,65,000 Donations 35,000 Investment purchased 80,000 Rent paid 20,000 General expenses 21,500 Postage and stationery 2,000 Courier charges 1,000 Sundry expenses 2,500 Closing cash in hand 12,000 Solution: Receipts and Payments account for the year ending…….. Receipts < Payments < To Balance b/d By Investment purchased 80,000 Cash 5,000 By rent paid 20,000 Bank 25,000 By general expenses 21,500 To Subscriptions 1,65,000 By postage and stationery 2,000 To Donations 35,000 By courier charges 1,000 By sundry expenses 2,500 By Balance c/d cash 12,000 bank 91,000 2,30,000 2,30,000 INCOME AND EXPENDITURE ACCOUNT: It is the summary of income and expenditure. It resembles a profit and loss account. It includes only revenue items relating to the current period and the balance at the end represents deficit or surplus. It is prepared on accrual basis. STEPS IN THE PREPARATION OF INCOME AND EXPENDITURE ACCOUNT: 1. Go through the Receipts and Payments accounts thoroughly. 2. Exclude opening and closing balance of cash and bank 3. Exclude capital receipts and payments 4. Consider revenue items of current year only 5. Consider the adjustments such as depreciation, provision for bad and doubtful debts, profit or loss on sale of asset, outstanding and prepaid expenses, Accrued incomes and Income Received in advance. DIFFERENCE BETWEEN RECEIPTS AND PAYMENTS ACCOUNT AND INCOME ANDINCOME AND EXPENDITURE ACCOUNT: BASIS INCOME AND EXPENDITURE RECEITPS AND PAYMENTS ACCOUNT ACCOUNT Nature It is like a profit and loss It is the summary of cash book(Real Account (Nominal Account) Account) Nature of items It records income and expenses of It records all income and revenue in nature expenses (Both Capital and Revenue Period All items relate to current All items relates to current year, period/year previous year and next year also Debit side Records expenses and losses Records receipts Credit side Records incomes and gains Records payments Depreciation included Not included Opening balance No opening balance Balance of cash and bank Closing balance Surplus or deficit Balance of cash, bank/bank overdraft ACCOUNTING TREATMENT OF SOME IMPORTANT ITEMS: 1. ENTRANCE FEES: It is the amount paid by a person at the time of becoming a member of a non- profit organisation. It is treated as a revenue receipt and is credited to Income and Expenditure account. If it is specified as to be capitalized then it should be entered in Liabilities side of Balance Sheet. 2. LIFE MEMBERSHIP FEES OR LIFE SUBSCRIPTION: It is the amount received from a member in lump sum and he is given the membership of the organisation for the whole life. It is treated as a capital receipt and added to the capital fund on the liabilities side of the Balance sheet. 3. DONATIONS: Donation is the amount received form a person, firm, company by way of gift. Donation received may be a general donation or specific donation. a. General donation: It is treated as an income and is credited to the Income and Expenditure account b. Specific donation: It will be capitalized and is shown on the liabilities side of Balance sheet. Note:. In the absence of any information about the nature of donation it should be treated as general Donation. 4. LEGACY: It is the amount received by the non-profit organisation as per the will of a deceased person. The donor may or may not specify the purpose for which the donated amount can be used. it should be treated as capital receipt and be shown in the liabilities side of Balance sheet. 5. SUBSCRIPTION: It is the major source of income of a not-for –profit organisation. Subscriptions are the amount paid by the members of such organisations to maintain their membership. a. Subscription income for the current year is shown in the Income and Expenditure account. It is calculated as follows: Particulars < < Total subscription received during the year xxxxx Add: subscription o/s at the end of the current year Xxxxxx Subscription received in advance in the beginning xxxxxx Less: subscription o/s at the beginning of the year Xxxxxx Subscription received in advance at the end of the year xxxxxx Subscription to be shown in Income and Expenditure account xxxxxxx b. Subscription o/s at the end of the year is an asset and the subscription received in advance is a liability 6. GOVERNMENT GRANT: Not-for-organisations may receive grants from government, corporates, national and international agencies. If the grant is received for any specific purpose then the grant is capitalized and shown on the liability side of balance sheet. If the grant is not marked for any specific purpose such as maintenance grant, then it is treated as income and is credited to income and expenditure account. 7. INTEREST ON GENERAL FUND INVESTMENTS: it is treated as revenue receipt and hence credited to Income and Expenditure account. 8. a. FUND BASED ACCOUNTING: It refers to an accounting system in which receipts and incomes relating to a particular fund are credited to that particular fund and expenses related to that fund are credited to that particular fund are debited to it. (Prize Fund, Tournament Fund, Building Fund etc.) b. INTEREST ON SPECIFIC FUND INVESTMENT: It is added to the respective fund (e.g. Interest on building fund investment is added to Building Fund) 9. ENDOWMENT FUND: It a fund that arises from a gift and its income is devoted for a specific purpose. It is considered as a capital receipt and is shown in the liabilities side of Balance sheet. 10. SALE OF OLD SPORTS MATERIALS: The amount so received is treated as revenue income assuming that its book value is zero. It is shown on the credit side of Income and Expenditure account. 11. SALE OF OLD NEWSPAPERS AND MAGAZINES: The amount realized from the sale is accounted as an income and credited to Income and Expenditure account. 12. SALE OF OLD ASSET: Any gain or loss on sale of old assets is transferred to income and expenditure account.(Loss on expenditure side and Profit on income side) 13. HONORARIUM: This is the amount paid to those persons who are not regular employees of the organisation, but render some useful services to the organisation. It a token payment given in honour of the services rendered. It is shown on the debit side of the Income and Expenditure account. 14. STOCK OF STATIONERY/MEDICINES/BATS AND BALLS: Opening stock+ purchases – closing stock = Stock consumed during the year. It will appear in the expenditure side of income and expenditure account. PROBLEMS ON SUBSCRIPTION: As per the receipts and payments account for the year ended 31st march 2019 the subscription received were oS> Ho$ pñW{V {ddaU _| H$ånZr A{Y{Z`_, 2013 H$s AZwgyMr III, ^mJ I Ho$ àmdYmZm| Ho$ AZwgma [a{º$`m± (µJm`~ am{e) ^[aE & 3 31 _mM©, 2018 H$mo pñW{V {ddaU (EH$ {ZîH$f©) {ddaU ZmoQ> g§. < g_Vm Ed§ Xo`VmE± 1. eo`aYmaH$ H$mof (a) A§e ny±Or 1.................... 67/2/1 4  ImVm| Ho$ eof $ ZmoQ> g§. {ddaU < 1 A§e ny±Or A{YH¥$V ny±Or.......................................... {ZJ©{_V ny±Or.......................................... A{^XÎm ny±Or A{^XÎm VWm nyU© àXÎm ________ A§e < 10 àË`oH$.......... A{^XÎm {H$ÝVw nyU© àXÎm Zht ________ A§e < 10 àË`oH$.......... KQ>m............................................... Willow Ltd. was registered with an authorized capital of < 10,00,000 divided into 1,00,000 equity shares of < 10 each. The company offered 80,000 shares for subscription to the public, out of which 75,000 shares were subscribed. All amounts were received except the final call of < 2 per share on 3,000 shares. Fill in the missing figures in the Balance Sheet of Willow Ltd. as per the provisions of Schedule III, Part I of the Companies Act, 2013. Balance Sheet as at 31st March, 2018 (An extract) Particulars Note No. < EQUITY AND LIABILITIES 1. Shareholders Funds (a) Share Capital 1.................... 67/2/1 5 P.T.O.  Note to Accounts Note No. Particulars < 1 Share Capital Authorised Capital.................................................. Issued Capital................................................... Subscribed Capital Subscribed and full paid ________ shares of < 10 each.......... Subscribed but not fully paid ________ shares of < 10 each.......... Less............................................... 10. OZVm H$ë`mU Šb~ Ho$ 1250 gXñ` Wo VWm àË`oH$ < 150 dm{f©H$ MÝXm XoVm Wm & 31 _mM©, 2018 H$mo g_mßV hþE df© _| Šb~ H$mo 45 gXñ`m| go MÝXm àmßV Zht hþAm VWm 46 gXñ`m| go 31 _mM©, 2019 H$mo g_mßV hmoZo dmbo df© Ho$ {bE A{J«_ MÝXm àmßV hþAm & 31 _mM©, 2017 H$mo AXÎm MÝXm < 15,000 VWm A{J«_ àmßV MÝXm < 3,000 Wm & 31 _mM©, 2018 H$mo g_mßV hþE df© Ho$ {bE ‘àm{ßV Ed§ ^wJVmZ ImVo’ Ho$ O_m _| IVm¡Zr H$s OmZo dmbr MÝXo H$s am{e H$s JUZm H$s{OE & 3 Janta Kalayan Club has 1250 members each paying an annual subscription of < 150. During the year ended 31st March, 2018 the club did not receive subscription from 45 members and received subscriptions in advance from 46 members for the year ending 31 st March, 2019. On 31st March, 2017 the outstanding subscriptions were < 15,000 and subscriptions received in advance were < 3000. Calculate the amount of subscription that will be debited to the ‘Receipts and Payments Account’ for the year ended 31st March, 2018. 11. har, Hw$Zmb VWm C_m EH$ \$_© _| gmPoXma h¢ VWm 5 : 3 : 2 Ho$ AZwnmV _| bm^-hm{Z ~m±Q>Vo h¢ & 1 Aà¡b, 2018 go CÝhm|Zo ^{dî` _| bm^-hm{Z 2 : 5 : 3 Ho$ AZwnmV _| ~m±Q>Zo H$m {ZU©` {b`m & CZH$m pñW{V {ddaU, bm^-hm{Z ImVo _| < 75,000 VWm {Zdoe CVma-MT>md H$mof _| < 15,000 Xem© ahm Wm & Bg à`moOZ hoVw `h gh_{V hþB© {H$ : 4 (i) \$_© H$s »`m{V H$m _yë`m§H$Z < 3,00,000 na {H$`m J`m & 67/2/1 6  (ii) {Zdoe (nwñVH$ _yë` < 50,000) H$m _yë`m§H$Z < 35,000 na {H$`m J`m & (iii) < 50,000 nwñVH$ _yë` Ho$ ñQ>m°H$ na 10% go _yë`õmg bJm`m OmEJm & Cn`w©º$ Ho$ {bE \$_© H$s nwñVH$m| _| Amdí`H$ amoµOZm_Mm à{dpîQ>`m± H$s{OE & Hari, Kunal and Uma are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2018 they decided to share future profits and losses in the ratio of 2 : 5 : 3. Their Balance Sheet showed a balance of < 75,000 in the Profit and Loss Account and a balance of < 15,000 in Investment Fluctuation Fund. For this purpose, it was agreed that : (i) Goodwill of the firm was valued at < 3,00,000. (ii) That investments (having a book value of < 50,000) were valued at < 35,000. (iii) That stock having a book value of < 50,000 be depreciated by 10%. Pass the necessary journal entries for the above in the books of the firm. 12. _ram, gmW©H$ VWm amo{hV EH$ \$_© _| gmPoXma Wo VWm 2 : 2 : 1 Ho$ AZwnmV _| bm^ ~m±Q>Vo Wo & 31 _mM©, 2018 H$mo CZH$m pñW{V {ddaU {ZåZ àH$ma go Wm : 31 _mM©, 2018 H$mo _ram, gmW©H$ VWm amo{hV H$m pñW{V {ddaU am{e am{e Xo`VmE± < n[agån{Îm`m± < boZXma 3,00,000 ñWm`r n[agån{Îm`m± 7,00,000 AmH$pñ_H$ g§M` 1,00,000 ñQ>m°H$ 2,00,000 ny±Or : XoZXma 1,50,000 _ram 4,00,000 ~¢H$ _| amoH$‹S> 3,50,000 gmW©H$ 3,50,000 amo{hV 2,50,000 14,00,000 14,00,000 15 OyZ, 2018 H$mo gmW©H$ H$s _¥Ë`w hmo JB© & gmPoXmar g§boI Ho$ AZwgma CgHo$ {ZînmXH$ {ZåZ Ho$ hµH$Xma Wo : (i) CgHo$ n±yOr ImVo H$m eof & (ii) »`m{V _| CgH$m ^mJ {OgH$s JUZm {nN>bo Mma df© Ho$ Am¡gV bm^m| Ho$ VrZ JwUm Ho$ AmYma na H$s OmEJr & 67/2/1 7 P.T.O.  (iii) _¥Ë`w H$s {V{W VH$ bm^m| _| CgHo$ ^mJ H$s JUZm {nN>bo Xmo dfm] Ho$ Am¡gV bm^m| Ho$ AmYma na H$s OmEJr & _¥Ë`w Ho$ df© _| {Og g_`md{Y VH$ dh Or{dV Wm CgH$s JUZm _hrZm| _| H$s OmEJr & (iv) CgH$s _¥Ë`w H$s {V{W VH$ ny±Or na 12% à{V df© H$s Xa go ã`mO & {nN>bo Mma dfm] _| \$_© Ho$ bm^ Wo : 2014 – 15 < 1,20,000, 2015 – 16 < 2,00,000, 2016 – 17 < 2,60,000 VWm 2017 – 18 < 2,20,000. gmW©H$ Ho$ {ZînmXH$m| H$mo Xo` am{e H$m VwaÝV ^wJVmZ H$a {X`m J`m & CgHo$ {ZînmXH$m| H$mo àñVwV {H$`m OmZo dmbm gmW©H$ H$m ny±Or ImVm V¡`ma H$s{OE & 4 Meera, Sarthak and Rohit were partners sharing profits in the ratio of 2 : 2 : 1. On 31 March, 2018, their Balance Sheet was as follows : Balance Sheet of Meera, Sarthak and Rohit as at 31 March, 2018 Amount Amount Liabilities < Assets < Creditors 3,00,000 Fixed Assets 7,00,000 Contingency Reserve 1,00,000 Stock 2,00,000 Capital : Debtors 1,50,000 Meera 4,00,000 Cash at bank 3,50,000 Sarthak 3,50,000 Rohit 2,50,000 14,00,000 14,00,000 Sarthak died on 15th June, 2018. According to the partnership deed, his executors were entitled to : (i) Balance in his Capital Account. (ii) His share of goodwill will be calculated on the basis of thrice the average of the past 4 years’ profits. (iii) His share in profits up to the date of death on the basis of average profits of the last two years. The time period for which he survived in the year of death will be calculated in months. (iv) Interest on capital @ 12% p.a. up to the date of his death. The firm’s profits for the last four years were : 2014 – 15 < 1,20,000, 2015 – 16 < 2,00,000, 2016 – 17 < 2,60,000 and 2017 – 18 < 2,20,000. Sarthak’s executors were paid the amount due immediately. Prepare Sarthak’s Capital Account to be presented to his executors. 67/2/1 8 13. O¡åg Šb~ H$s {ZåZ gyMZm go 31 _mM©, 2018 H$mo g_mßV df© Ho$ {bE Am` Ed§ ì`` ImVm V¡`ma H$s{OE & 31 _mM©, 2018 H$mo g_mßV df© Ho$ {bE O¡åg Šb~ H$m àm{ßV Ed§ ^wJVmZ ImVm àm{ßV`m± am{e ^wJVmZ am{e < < eof AmJo bmE 50,000 \$ZuMa 1,30,000 {Zdoe na ã`mO 2,400 doVZ 64,500 XmZ 17,000 {d{dY ì`` 52,000 MÝXm 3,00,000 Q>obrµ\$moZ ì`` 12,000 {H$am`m àmßV hþAm 70,000 \¡$Šg _erZ 6,000 6% {Zdoe nwamZo g_mMma-nÌm| H$s {~H«$s 600 1,00,000 (01.08.2017 H$mo) _wÐU VWm ñQ>oeZar 19,000 eof ZrMo bo JE 56,500 4,40,000 4,40,000 A{V[aº$ gyMZm : àmßV MÝXo _| < 15,000 df© 2018 – 19 Ho$ gpå_{bV Wo & 31 _mM©, 2018 H$mo AXÎm MÝXo H$s am{e < 20,000 Wr & 31 _mM©, 2018 H$mo AXÎm doVZ < 8,000 Wm VWm àmß` {H$am`m < 2,000 Wm & _wÐU VWm ñQ>oeZar H$m Ama§på^H$ ñQ>m°H$ < 12,000 Wm, O~{H$ ApÝV_ ñQ>m°H$ < 15,000 Wm & 6 67/2/1 9 P.T.O.  From the following information of Gems Club, prepare Income and Expenditure Account for the year ended 31st March, 2018. Receipts and Payments Account of Gems Club for the year ending 31st March, 2018 Amount Amount Receipts < Payments < To Balance b/d 50,000 By Furniture 1,30,000 To Interest on 2,400 By Salaries 64,500 Investments By Miscellaneous To Donations 17,000 Expenses 52,000 To Subscriptions By Telephone 3,00,000 Charges 12,000 To Rent Received 70,000 By Fax Machine 6,000 To Sale of old 600 By 6% Investments 1,00,000 newspapers (on 01.08.2017) By Printing and Stationery 19,000 By Balance c/d 56,500 4,40,000 4,40,000 Additional Information : Subscriptions received included < 15,000 for 2018 – 19. The amount of subscriptions outstanding on 31st March, 2018 were < 20,000. Salaries unpaid on 31st March, 2018 were < 8,000 and Rent receivable was < 2,000. Opening stock of printing and stationery was < 12,000, whereas Closing stock was < 15,000. 67/2/1 10 14. Amerf VWm H$Zd EH$ \$_© _| gmPoXma Wo VWm 3 : 2 Ho$ AZwnmV _| bm^-hm{Z ~m±Q>Vo Wo & 31 _mM©, 2018 H$mo CZH$m pñW{V {ddaU {ZåZ àH$ma go Wm : 31 _mM©, 2018 H$mo Amerf VWm H$Zd H$m pñW{V {ddaU am{e am{e Xo`VmE± < n[agån{Îm`m± < ì`mnm[aH$ boZXma 42,000 ~¢H$ $ 35,000 H$_©Mmar ^{dî` {Z{Y 60,000 ñQ>m°H$ 24,000 lr_Vr Amerf H$m G$U 9,000 XoZXma 19,000 H$Zd H$m G$U 35,000 \$ZuMa 40,000 H$m_Jma j{Vny{V© H$mof 20,000 g§`§Ì 2,10,000 {Zdoe CVma-M‹T>md H$mof 4,000 {Zdoe 32,000 ny±Or : bm^-hm{Z ImVm 10,000 Amerf 1,20,000 H$Zd 80,000 2,00,000 3,70,000 3,70,000 Cn`w©º$ {V{W H$mo CÝhm|Zo \$_© Ho$ {dKQ>Z H$m {ZU©` {H$`m & (i) Amerf \$ZuMa H$mo < 38,000 _| boZo Ho$ {bE VWm lr_Vr Amerf Ho$ G$U H$m ^wJVmZ H$aZo Ho$ {bE gh_V hþAm & (ii) XoZXmam| go < 18,500 àmßV hþE VWm g§`§Ì go 10% A{YH$ àmßV hþE & (iii) H$Zd Zo 40% ñQ>m°H$ H$mo nwñVH$ _yë` go 20% H$_ na bo {b`m & eof ñQ>m°H$ H$mo 10% Ho$ bm^ na ~oMm J`m & (iv) H$Zd < 12,000 Ho$ nm[al{_H$ na {dKQ>Z Ho$ CÎmaXm{`Ëd H$mo nyam H$aZo Ho$ {bE VWm dgybr ì``m| H$mo dhZ H$aZo Ho$ {bE gh_V hmo J`m & dgybr na dmñV{dH$ ì`` < 8,000 Wo & dgybr ImVm V¡`ma H$s{OE & 6 67/2/1 11 P.T.O.  Ashish and Kanav were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2018 their Balance Sheet was as follows : Balance Sheet of Ashish and Kanav as at 31st March, 2018 Amount Amount Liabilities < Assets < Trade Creditors 42,000 Bank 35,000 Employees’ Provident 60,000 Stock 24,000 Fund Mrs. Ashish’s Loan 9,000 Debtors 19,000 Kanav’s Loan 35,000 Furniture 40,000 Workmen’s 20,000 Plant 2,10,000 Compensation Fund Investment Fluctuation 4,000 Investments 32,000 Reserve Profit and Loss Capital : 10,000 Account Ashish 1,20,000 Kanav 80,000 2,00,000 3,70,000 3,70,000 On the above date they decided to dissolve the firm. (i) Ashish agreed to take over furniture at < 38,000 and pay off Mrs. Ashish’s loan. (ii) Debtors realised < 18,500 and plant realised 10% more. (iii) Kanav took over 40% of the stock at 20% less than the book value. Remaining stock was sold at a gain of 10%. (iv) Trade creditors took over investments in full settlement. (v) Kanav agreed to take over the responsibility of completing dissolution at an agreed remuneration of < 12,000 and to bear realization expenses. Actual expenses of realization amounted to < 8,000. Prepare Revaluation Account. 67/2/1 12 15. ZdrZ, H$m{Xa VWm amOoe gmPoXma Wo VWm CÎmamIÊS> _| BboŠQ´>m{° ZH$ gm_mZ H$m ì`dgm` H$aVo Wo & gmPoXmar ImVo V¡`ma VWm ~ÝX H$aZo Ho$ níMmV² `h nVm Mbm {H$ 31 _mM©, 2017 VWm 2018 H$mo g_mßV hþE dfm] Ho$ {bE gmPoXmam| H$s ny±Or na 6% à{V df© ã`mO bJm`m J`m, O~{H$ gmPoXmar g§boI _| ny±Or na ã`mO Ho$ {bE H$moB© àmdYmZ Zht Wm & BgHo$ {dnarV, ZdrZ VWm H$m{Xa H«$_e: < 3,500 VWm < 4,000 Ì¡_m{gH$ doVZ Ho$ hµH$Xma Wo, {OgH$m g§kmZ Zht {b`m J`m & CZH$s ñWm`r ny±{O`m± H«$_e: < 4,00,000, < 3,60,000 VWm < 2,40,000 Wt & {nN>bo Xmo dfm] _| CÝhm|Zo bm^-hm{Z H$mo {ZåZ àH$ma go ~m±Q>m : df© g_m{ßV AZwnmV 31 _mM©, 2017 3:2:1 31 _mM©, 2018 5:3:2 Cn`w©º$ g_m`moOZm| Ho$ {bE 1 Aà¡b, 2018 H$mo \$_© H$s nwñVH$m| _| Amdí`H$ g_m`moOZ à{dpîQ> H$s{OE & AnZo H$m`© H$mo ñnîQ> Xem©BE & $ 6 AWdm 31 _mM©, 2018 H$mo bm^m| VWm AmhaUm| Ho$ g_m`moOZ Ho$ níMmV² A^ra, ~m°~r VWm {dZrV Ho$ ny±Or ImVm| Ho$ eof H«$_e: < 8,00,000, < 6,00,000 VWm < 4,00,000 Wo & ~mX _| `h nVm Mbm {H$ ny±Or VWm AmhaU na ã`mO Zht bJm`m J`m & gmPoXmam| H$mo ny±Or na 10% à{V df© ã`mO Xo` Wm VWm AmhaUm| na 6% à{V df© ã`mO bJmZm Wm & df© _| A^ra Zo àË`oH$ _mh Ho$ A§V _| < 20,000, ~m°~r Zo àË`oH$ AY© df© Ho$ Amaå^ _| < 50,000 VWm {dZrV Zo 31 AŠQy>~a, 2017 H$mo < 1,00,000 H$m AmhaU {H$`m & 31 _mM©, 2018 H$mo g_mßV hþE df© _| ewÕ bm^ < 1,50,000 Wm & bm^ {d^mOZ AZwnmV 2 : 2 : 1 Wm & Cn`w©º$ g_m`moOZm| Ho$ {bE \$_© H$s nwñVH$m| _| Amdí`H$ g_m`moOZ à{dpîQ> H$s{OE & AnZo H$m`© H$mo ^r ñnï> Xem©BE & 6 Naveen, Qadir and Rajesh were partners doing an electronic goods business in Uttarakhand. After the accounts of partnership were drawn up and closed, it was discovered that interest on capital has been allowed to partners @ 6% p.a. for the years ending 31st March, 2017 and 2018, although there is no provision for interest on capital in the partnership deed. On the other hand, Naveen and Qadir were entitled to a salary of < 3,500 and < 4,000 per quarter respectively, which has not been taken into consideration. Their fixed capitals were < 4,00,000, < 3,60,000 and < 2,40,000 respectively. During the last two years they had shared the profits and losses as follows : Year Ended Ratio 31st March, 2017 3:2:1 st 31 March, 2018 5:3:2 Pass necessary adjusting entry for the above adjustments in the books of the firm on 1st April, 2018. Show your workings clearly. OR 67/2/1 13 P.T.O.  On 31st March, 2018 the balance in the Capital Accounts of Abhir, Bobby and Vineet, after making adjustments for profits and drawings were < 8,00,000, < 6,00,000 and < 4,00,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 10% p.a. and were to be charged interest on drawings @ 6% p.a. The drawings during the year were : Abhir  < 20,000 drawn at the end of each month, Bobby  < 50,000 drawn at the beginning of every half year and Vineet  < 1,00,000 withdrawn on 31st October, 2017. The net profit for the year ended 31st March, 2018 was < 1,50,000. The profit sharing ratio was 2 : 2 : 1. Pass necessary adjusting entry for the above adjustments in the books of the firm. Also, show your workings clearly. 16. S>oZñna {b{_Q>oS> Zo < 10 àË`oH$ Ho$ 2,00,000 g_Vm A§em| H$mo < 20 à{V A§e Ho$ àr{_`_ na {ZJ©{_V H$aZo Ho$ {bE AmdoXZ Am_pÝÌV {H$E & am{e {ZåZ àH$ma go Xo` Wr : AmdoXZ na – < 2 à{V A§e Am~§Q>Z na – < 13 à{V A§e (< 10 àr{_`_ g{hV) àW_ `mMZm na – < 7 à{V A§e (< 5 àr{_`_ g{hV) ApÝV_ `mMZm na – < 8 à{V A§e (< 5 àr{_`_ g{hV) 1,80,000 A§em| Ho$ {bE AmdoXZ àmßV hþE & g^r AmdoXH$m| H$mo A§em| H$m Am~§Q>Z H$a {X`m J`m & 5,000 A§em| Ho$ EH$ A§eYmaH$, `moJoe, Zo Am~§Q>Z am{e Ho$ gmW AnZr nyar A§e am{e H$m ^wJVmZ H$a {X`m & 7,000 A§em| H$m EH$ A§eYmaH$, {deof, Am~§Q>Z am{e H$m ^wJVmZ H$aZo _| Ag\$b ahm & BgHo$ níMmV² àW_ `mMZm _m±Jr JB© & {deof Zo Am~§Q>Z am{e H$m ^wJVmZ àW_ `mMZm Ho$ gmW H$a {X`m & 2,000 A§em| Ho$ A§eYmaH$, g_`oe, Zo ApÝV_ `mMZm H$m ^wJVmZ Zht {H$`m & g_`oe Ho$ A§em| H$m haU ApÝV_ `mMZm Ho$ VwaÝV níMmV² H$a {b`m J`m & haU {H$E JE A§em| _| go 1,500 A§em| H$m < 8 à{V A§e nyU© àXÎm nwZ:{ZJ©_Z H$a {X`m J`m & Cn`w©º$ boZXoZm| Ho$ {bE S>oZñna {b{_Q>oS> H$s nwñVH$m| _| Amdí`H$ amoµOZm_Mm à{dpîQ>`m± H$s{OE & 8 AWdm 67/2/1 14  ‘Ho$ Eb EZ {b{_Q>oS>’ Zo < 10 àË`oH$ Ho$ 1,00,000 A§em| H$mo < 2 à{V A§e Ho$ àr{_`_ na {ZJ©{_V H$aZo Ho$ {bE AmdoXZ Am_pÝÌV {H$E & am{e {ZåZ àH$ma go Xo` Wr : AmdoXZ na – < 3 à{V A§e (< 1 àr{_`_ g{hV) Am~§Q>Z na – < 4 à{V A§e (< 1 àr{_`_ g{hV) àW_ `mMZm na – < 3 à{V A§e Xÿgar VWm ApÝV_ `mMZm na – eof am{e 1,90,000 A§em| Ho$ {bE AmdoXZ àmßV hþE & AmdoXH$m| H$mo {ZåZ àH$ma go Am~§Q>Z {H$`m J`m : AmdoXZ {H$E JE A§em| H$s Am~§{Q>V {H$E JE A§em| H$s loUr g§»`m g§»`m I 50,000 40,000 II 1,00,000 60,000 eof AmdoXZm| H$mo aÔ H$a {X`m J`m & loUr I go gå~pÝYV EH$ A§eYmaH$, aµOV, {OgZo 2,500 A§em| Ho$ {bE AmdoXZ {H$`m Wm, Am~§Q>Z VWm àW_ `mMZm na Xo` am{e H$m ^wJVmZ H$aZo _| Ag\$b ahm & CgHo$ A§em| H$m VwaÝV haU H$a {b`m J`m & loUr II go gå~pÝYV, 3,000 A§em| H$s EH$ A§eYmaH$, ar_m, àW_ VWm {ÛVr` `mMZm am{e H$m ^wJVmZ H$aZo _| Ag\$b ahr & CgHo$ A§em| H$m ^r haU H$a {b`m J`m & BgHo$ níMmV² 4,000 A§em| H$m < 8 à{V A§e nyU© àXÎm nwZ:{ZJ©_Z H$a {X`m J`m & Bg_| ar_m Ho$ haU {H$E JE g^r A§e gpå_{bV Wo & Cn`w©º$ boZXoZm§o Ho$ {bE ‘Ho$ Eb EZ {b{_Q>oS>’ H$s nwñVH$m| _| Amdí`H$ amoµOZm_Mm à{dpîQ>`m± H$s{OE & 8 Denspar Ltd. invited applications for issuing 2,00,000 equity shares of < 10 each at a premium of < 20 per share. The amount was payable as follows : On Application – < 2 per share On Allotment – < 13 per share (including < 10 premium) On First Call – < 7 per share (including < 5 premium) On Final Call – < 8 per share (including < 5 premium) Applications for 1,80,000 shares were received. Shares were allotted to all the applicants. Yogesh, a shareholder holding 5,000 shares paid his 67/2/1 15 P.T.O.  entire share money along with the allotment money. Vishesh, a holder of 7,000 shares, failed to pay the allotment money. Afterwards the first call was made. Vishesh paid the allotment money along with the first call money. Samyesh, holding 2,000 shares did not pay the final call. Samyesh’s shares were forfeited immediately after the final call. Out of the forfeited shares, 1,500 shares were reissued at < 8 per share fully paid up. Pass the necessary journal entries for the above transactions in the books of Denspar Ltd. OR ‘KLN Ltd.’ invited applications for issuing 1,00,000 shares of < 10 each at a premium of < 2 per share. The amount was payable as follows : On Application – < 3 per share (including premium < 1) On Allotment – < 4 per share (including premium < 1) On First call – < 3 per share On Second and Final Call – Balance amount Application for 1,90,000 shares were received. Allotment was made to the applicants as follows : Category No. of Shares Applied No. of Shares Allotted I 50,000 40,000 II 1,00,000 60,000 Remaining applications were rejected. Rajat, a shareholder belonging to Category I who had applied for 2,500 shares, failed to pay the amount due on allotment and first call. His shares were immediately forfeited. Reema, a shareholder belonging to Category II who was holding 3,000 shares failed to pay the first call and second call money. Her shares were also forfeited. Afterwards 4,000 shares were reissued @ < 8 per share fully paid up. These included all the forfeited shares of Reema. Pass necessary journal entries for the above transactions in the books of ‘KLN Ltd.’ 67/2/1 16  1 1 1 17. _mohZ, {dZ` VWm {ZË`m EH$ \$_© _| gmPoXma Wo VWm H«$_e… , VWm Ho$ AZwnmV _| 2 3 6 bm^-hm{Z ~m±Q>Vo Wo & 31 _mM©, 2018 H$mo CZH$m pñW{V {ddaU {ZåZ àH$ma go Wm : 31 _mM©, 2018 H$mo _mohZ, {dZ` VWm {ZË`m H$m pñW{V {ddaU am{e am{e Xo`VmE± < n[agån{Îm`m± < boZXma 48,000 >~¢H$ _| amoH$‹S> 31,000 H$_©Mmar ^{dî` {Z{Y 1,70,000 àmß` {~b 54,000 nwñVH$ G$U 63,000 AmH$pñ_H$ g§M` 30,000 KQ>m : g§{X½Y G$Um| Ho$ {bE n±yOr : àmdYmZ 2,000 61,000 _mohZ 1,20,000 g§`§Ì> VWm _erZar 1,20,000 {dZ` 1,00,000 ^y{_ VWm ^dZ 2,92,000 {ZË`m 90,000 3,10,000 5,58,000 5,58,000 Cn`w©º$ {V{W H$mo _mohZ Zo AdH$me J«hU {H$`m VWm `h gh_{V hþB© {H$ : (i) g§`§Ì VWm _erZar na 5% _yë`õmg bJm`m OmEJm & (ii) EH$ nwamZm H$åß`yQ>a {Ogo nyd© _| An{b{IV H$a {X`m J`m Wm < 4,000 _| ~oMm J`m & (iii) < 3,000 Sy>~V G$U An{b{IV {H$E OmE±Jo VWm XoZXmam| na Sy>~V Ed§ g§{X½Y G$Um| Ho$ {bE 5% H$m àmdYmZ {H$`m OmEJm & (iv) \$_© H$s »`m{V H$m _yë`m§H$Z < 1,80,000 {H$`m J`m VWm Bg_| go _mohZ H$m ^mJ CgHo$ ImVo _|, {dZ` VWm {ZË`m Ho$ ImVm| Ho$ Zm_ _| IVm¡Zr H$aHo$, O_m {H$`m J`m & (v) ZB© \$_© H$s ny±Or < 90,000 {ZYm©[aV H$s JB© VWm pñW{V AZwgma ZJX bmH$a AWdm ^wJVmZ H$aHo$ Amdí`H$ g_m`moOZ {H$E JE & (vi) {dZ` VWm {ZË`m ^{dî` Ho$ bm^ 3 : 2 Ho$ AZwnmV _| ~m±Q>|Jo & nwZJ©{R>V \$_© H$m nwZ_y©ë`m§H$Z ImVm, gmPoXmam| Ho$ ny±Or ImVo VWm pñW{V {ddaU V¡`ma H$s{OE & 8 AWdm 67/2/1 17 P.T.O.  brZm VWm amo{hV EH$ \$_© _| gmPoXma h¢ VWm 3 : 2 Ho$ AZwnmV _| bm^ ~m±Q>Vo h¢ & 31 _mM©, 2018 H$mo CZH$m pñW{V {ddaU {ZåZ àH$ma go Wm : 31 _mM©, 2018 H$mo brZm VWm amo{hV H$m pñW{V {ddaU am{e am{e Xo`VmE± < n[agån{Îm`m± < {d{dY boZXma 80,000 amoH$‹S> 42,000 Xo` {~b 38,000 XoZXma 1,32,000 KQ>m : g§{X½Y G$Um| Ho$ gm_mÝ` g§M` 50,000 {bE àmdYmZ 2,000 1,30,000 n±yOr : ñQ>m°H$ 1,46,000 brZm 1,60,000 g§`§Ì VWm _erZar 1,50,000 amo{hV 1,40,000 3,00,000 4,68,000 4,68,000 1 {ZåZ eVm] na Cn`w©º$ {V{W H$mo \$_© Ho$ bm^ Ho$ d| ^mJ Ho$ {bE _ZmoO H$mo EH$ Z`m 5 gmPoXma ~Zm`m J`m : (i) _ZmoO AmZwnm{VH$ n±yOr bm`m & gmW hr dh »`m{V àr{_`_ H$m AnZm ^mJ < 80,000 ZJX bm`m & (ii) gm_mÝ` g§M` Ho$ 10% H$mo g§{X½Y G$Um| Ho$ {bE àmdYmZ _| ñWmZm§V[aV H$aZm Wm & (iii) H$m_Jma j{Vny{V© H$m Xmdm < 40,000 H$m Wm & (iv) ñQ>m°H$ H$m < 16,000 A{YH$ _yë`m§H$Z {H$`m J`m & (v) brZm, amo{hV VWm _ZmoO ^{dî` _| 5 : 3 : 2 Ho$ AZwnmV _| bm^ ~m±Q>|Jo & nwZJ©{R>V \$_© H$m nwZ_©yë`m§H$Z ImVm, gmPoXmam| Ho$ ny±Or ImVo VWm pñW{V {ddaU V¡`ma H$s{OE & 8 67/2/1 18  Mohan, Vinay and Nitya were partners in a firm sharing profits and 1 1 1 losses in the proportion of , and respectively. On 31st March, 2 3 6 2018, their Balance Sheet was as follows : Balance Sheet of Mohan, Vinay and Nitya as at 31st March, 2018 Amount Amount Liabilities Assets < < Creditors 48,000 Cash at Bank 31,000 Employees’ Provident Fund 1,70,000 Bills Receivable 54,000 Contingency Reserve 30,000 Book Debts 63,000 Less : Provision Capital : for doubtful debts 2,000 61,000 Mohan 1,20,000 Plant and Machinery 1,20,000 Vinay 1,00,000 Land and Building 2,92,000 Nitya 90,000 3,10,000 5,58,000 5,58,000 Mohan retired on the above date and it was agreed that : (i) Plant and machinery will be depreciated by 5%. (ii) An old computer previously written off was sold for < 4,000. (iii) Bad debts amounting to < 3,000 will be written off and a provision of 5% on debtors for bad and doubtful debts will be maintained. (iv) Goodwill of the firm was valued at < 1,80,000 and Mohan’s share of the same was credited in his account by debiting Vinay’s and Nitya’s accounts. (v) The capital of the new firm was to be fixed at < 90,000 and necessary adjustments were to be made by bringing in or paying off cash as the case may be. (vi) Vinay and Nitya will share future profits in the ratio of 3 : 2. Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm. OR 67/2/1 19 P.T.O.  Leena and Rohit are partners in a firm sharing profits in the ratio of 3 : 2. On 31st March, 2018, their Balance Sheet was as follows : Balance Sheet of Leena and Rohit as at 31st March, 2018 Amount Amount Liabilities Assets < < Sundry Creditors 80,000 Cash 42,000 Bills Payable 38,000 Debtors 1,32,000 Less : Provision General Reserve 50,000 for doubtful debts 2,000 1,30,000 Capital : Stock 1,46,000 Leena 1,60,000 Plant and Machinery 1,50,000 Rohit 1,40,000 3,00,000 4,68,000 4,68,000 1 On the above date Manoj was admitted as a new partner for th share 5 in the profits of the firm on the following terms : (i) Manoj brought proportionate capital. He also brought his share of goodwill premium of < 80,000 in cash. (ii) 10% of the general reserve was to be transferred to provision for doubtful debts. (iii) Claim on account of workmen’s compensation amounted to < 40,000. (iv) Stock was overvalued by < 16,000. (v) Leena, Rohit and Manoj will share future profits in the ratio of 5 : 3 : 2. Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm. 67/2/1 20  IÊS> I {dH$ën 1 ({dÎmr` {ddaUm| H$m {díbofU) PART B OPTION 1 (Analysis of Financial Statements) 18. amoH$‹S> àdmh {ddaU V¡`ma H$aVo g_` ‘A{J«_ amoH$‹S> VWm V¥Vr` nj H$mo {XE JE G$Um|’ H$mo Amn {H$g àH$ma H$s J{V{d{Y Ho$ AÝVJ©V dJuH¥$V H$a|Jo ? 1 Under which type of activity will you classify ‘Cash advances and loans made to third party’ while preparing Cash Flow Statement ? 19. ‘amoH$‹S> àdmh {ddaU’ V¡`ma H$aZo Ho$ àmW{_H$ CÔoí` H$m CëboI H$s{OE & 1 State the primary objective of preparing ‘Cash Flow Statement.’ 20. H$ånZr A{Y{Z`_, 2013 H$s AZwgyMr III, ^mJ I Ho$ AZwgma EH$ H$ånZr Ho$ pñW{V {ddaU _| {ZåZ{b{IV _Xm| H$mo {H$Z _w»` erf©H$m| Ed§ Cnerf©H$m| Ho$ AÝVJ©V Xem©`m OmEJm ? 4 (i) G$UnÌm| na A{O©V VWm Xo` ã`mO (ii) IwXam Am¡µOma (iii) A{J«_ `mMZmAm| na A{O©V ã`mO (iv) AXÎm `mMZmAm| na Xo` ã`mO (v) ì`mnm[aH$ {M (Q´>oS>_mŠg©) (vi) G$UnÌm| Ho$ emoYZ na àr{_`_ (vii) g§`§Ì VWm _erZar (viii) noQ>oÝQ²>g AWdm ‘{dÎmr` {ddaUm| Ho$ {díbofU’ H$s {H$Ýht Mma gr_mAm| H$mo g§jon _| g_PmBE & 4 67/2/1 21 P.T.O.  Under which major headings and subheadings will the following items be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 ? (i) Interest accrued and due on debentures (ii) Loose tools (iii) Accrued interest on calls in advance (iv) Interest due on calls in arrears (v) Trademarks (vi) Premium on redemption of debentures (vii) Plant and Machinery (viii) Patents OR Explain briefly any four limitations of ‘Analysis of Financial Statements.’ 21. (i) {ZåZ{b{IV gyMZm go ã`mO AmdaU AZwnmV H$s JUZm H$s{OE : ã`mO Ed§ H$a Ho$ ^wJVmZ Ho$ ~mX ewÕ bm^ < 1,20,000; Am`H$a H$s Xa 40%; 15% G$UnÌ < 1,00,000; < 1,00,000 H$m 12% ~§YH$ G$U & (ii) EH$ H$ånZr Ho$ nmg < 3,00,000 H$s Mmby n[agån{Îm`m± VWm < 1,40,000 H$s Mmby Xo`VmE± h¢ & BgHo$ níMmV², BgZo < 20,000 H$m _mb CYma H«$` {H$`m & _mb Ho$ H«$` Ho$ níMmV² Mmby AZwnmV H$s JUZm H$s{OE & 4 AWdm EH$ H$ånZr H$m Ëd[aV AZwnmV 1 : 1 h¡ & H$maU g{hV CëboI H$s{OE {H$ {ZåZ{b{IV boZXoZ AZwnmV H$mo ~‹T>mE±Jo, KQ>mE±Jo AWdm Cg_| H$moB© n[adV©Z Zht H$a|Jo : 4 (i) < 10,000 Ho$ ~r_m àr{_`_ H$m A{J«_ ^wJVmZ {H$`m J`m & (ii) < 8,000 H$m _mb CYma H«$` {H$`m J`m & (iii) < 1,00,000 Ho$ nyU© ^wJVmZ g_Vm A§e {ZJ©{_V {H$E JE & (iv) < 5,00,000 Ho$ 9% G$UnÌm| H$m {ZJ©_Z, {dH«o$Vm H$mo _erZar Ho$ H«$` Ho$ {bE {H$`m J`m & 67/2/1 22  (i) From the following information calculate Interest Coverage Ratio : Net profit after interest and tax < 1,20,000; Rate of income tax 40%; 15% debentures < 1,00,000; 12% Mortgage loan < 1,00,000. (ii) A company had Current Assets < 3,00,000 and Current Liabilities < 1,40,000. Afterwards, it purchased goods worth < 20,000 on credit. Calculate the Current Ratio after the purchase of goods. OR Quick ratio of a company is 1 : 1. State, with reason, whether the following transactions will increase, decrease or not change the ratio : (i) Paid insurance premium in advance < 10,000. (ii) Purchased goods on credit < 8,000. (iii) Issued fully paid equity shares of < 1,00,000. (iv) Issued 9% debentures of < 5,00,000 to the vendor for machinery purchased. 22. 31 _mM©, 2017 VWm 31 _mM©, 2018 H$mo g_mßV dfm] Ho$ bm^-hm{Z {ddaU go CX²Y¥V {ZåZ{b{IV gyMZm go EH$ VwbZmË_H$ bm^-hm{Z {ddaU V¡`ma H$s{OE : 4 {ddaU 2017 − 18 2016 − 17 àMmbZm| go AmJ_ Cn^moJ H$s JB© gm_J«r H$s Cn^moJ H$s JB© gm_J«r H$s bmJV H$m 300% bmJV H$m 200% Cn^moJ H$s JB© gm_J«r H$s bmJV < 2,40,000 < 2,00,000 AÝ` ì`` Cn^moJ H$s JB© gm_J«r H$s Cn^moJ H$s JB© gm_J«r H$s bmJV H$m 20% bmJV H$m 10% H$a Xa 50% 50% From the information extracted from the Statement of Profit and Loss for the years ended 31st March, 2017 and 31st March, 2018, prepare a Comparative Statement of Profit and Loss : Particulars 2017 − 18 2016 − 17 Revenue from operations 300% of cost of 200% of cost of material consumed material consumed Cost of materials < 2,40,000 < 2,00,000 consumed Other expenses 20% of cost of 10% of cost of material consumed material consumed Tax rate 50% 50% 67/2/1 23 P.T.O. 23. 31 _mM©, 2018 H$mo S>r.gr.EŠg. {b{_Q>oS> Ho$ {ZåZ{b{IV pñW{V {ddaU VWm A{V[aº$ gyMZm go amoH$‹S> àdmh {ddaU V¡`ma H$s{OE : 6 S>r.gr.EŠg. {b{_Q>oS> 31 _mM©, 2018 H$m pñW{V {ddaU ZmoQ> 31.3.2018 31.3.2017 {ddaU g§. < < I – g_Vm Ed§ Xo`VmE± : 1. A§eYmar$ {Z{Y`m± : (A) A§e ny±Or 30,00,000 21,00,000 (~) g§M` Ed§ Am{YŠ` 1 4,00,000 5,00,000 2. AMb Xo`VmE± : XrK©H$mbrZ G$U 2 8,00,000 5,00,000 3. Mmby Xo`VmE± : (A) ì`mnma Xo` 1,50,000 1,00,000 (~) Aënmd{Y àmdYmZ 3 76,000 56,000 Hw$b 44,26,000 32,56,000 II – n[agån{Îm`m± : 1. AMb n[agån{Îm`m± : ñWm`r n[agån{Îm`m± : (i) _yV© n[agån{Îm`m± 4 27,00,000 20,00,000 (ii) A_yV© n[agån{Îm`m± 8,00,000 7,00,000 2. Mmby n[agån{Îm`m± : (A) Mmby {Zdoe 89,000 78,000 (~) _mb-gyMr 8,00,000 4,00,000 (g) amoH$‹S> Ed§ amoH$‹S> Vwë` 37,000 78,000 Hw$b 44,26,000 32,56,000 67/2/1 24  ImVm| Ho$ ZmoQ²>g : ZmoQ> 31.3.2018 31.3.2017 {ddaU g§. < < 1. g§M` Ed§ Am{YŠ` : (Am{YŠ` AWm©V² bm^-hm{Z {ddaU H$m eof) 4,00,000 5,00,000 4,00,000 5,00,000 2. XrK©H$mbrZ G$U : 8% G$UnÌ 8,00,000 5,00,000 8,00,000 5,00,000 3. Aënmd{Y àmdYmZ : H$a Ho$ {bE àmdYmZ 76,000 56,000 76,000 56,000 4. _yV© n[agån{Îm`m± : _erZar 33,00,000 25,00,000 KQ>m : EH${ÌV (g§{MV) _yë`õmg (6,00,000) (5,00,000) 27,00,000 20,00,000 A{V[aº$ gyMZm : (i) df© Ho$ Xm¡amZ < 8,00,000 bmJV H$s EH$ _erZ H$mo < 6,40,000 _| ~oM {X`m J`m {Og na < 3,20,000 H$m EH${ÌV (g§{MV) _yë`õmg Wm & (ii) G$UnÌm| H$m {ZJ©_Z 1 Aà¡b, 2017 H$mo {H$`m J`m & From the following Balance Sheet of DCX Ltd. and the additional information as at 31st March, 2018 prepare a Cash Flow Statement : DCX Ltd. Balance Sheet as at 31st March, 2018 Note 31.3.2018 31.3.2017 Particulars No. < < I – Equity and Liabilities : 1. Shareholder’s Funds : (a) Share Capital 30,00,000 21,00,000 (b) Reserves and Surplus 1 4,00,000 5,00,000 2. Non-Current Liabilities : Long-term Borrowings 2 8,00,000 5,00,000 67/2/1 25 P.T.O.  Note 31.3.2018 31.3.2017 Particulars No. < < 3. Current Liabilities : (a) Trade Payables 1,50,000 1,00,000 (b) Short-term Provisions 3 76,000 56,000 Total 44,26,000 32,56,000 II – Assets : 1. Non-Current Assets : Fixed Assets : (i) Tangible Assets 4 27,00,000 20,00,000 (ii) Intangible Assets 8,00,000 7,00,000 2. Current Assets : (a) Current Investments 89,000 78,000 (b) Inventories 8,00,000 4,00,000 (c) Cash and cash equivalents 37,000 78,000 Total 44,26,000 32,56,000 Notes to Accounts : Note 31.3.2018 31.3.2017 Particulars No. < < 1. Reserves and Surplus : (Surplus i.e. Balance in the Statement of Profit and Loss) 4,00,000 5,00,000 4,00,000 5,00,000 2. Long-term Borrowings : 8% Debentures 8,00,000 5,00,000 8,00,000 5,00,000 3. Short-term Provisions : Provision for Tax 76,000 56,000 76,000 56,000 4. Tangible Asset : Machinery 33,00,000 25,00,000 Less : Accumulated Depreciation (6,00,000) (5,00,000) 27,00,000 20,00,000 Additional Information : (i) During the year a machinery costing < 8,00,000 on which accumulated depreciation was < 3,20,000 was sold for < 6,40,000. (ii) Debentures were issued on 1st April, 2017. 67/2/1 26  IÊS> I {dH$ën 2 (A{^H${bÌ boIm§H$Z) PART B OPTION 2 (Computerised Accounting) 18. ? JwUm| H$m Š`m AW© h¡ 1 What is meant by attributes ? 19. ‘hmS>©do`a’ H$m Š`m AW© h¡ ? 1 What is meant by ‘Hardware’ ? 20. A{^H${bÌ boIm§H$Z àUmbr H$s Mma gr_mE± Xr{OE & 4 Give four limitations of computerised accounting system. 21. boIm§H$Z gyMZm àUmbr H$s {H$Ýht Xmo Cn-àUm{b`m| H$mo g_PmBE & 4 AWdm Xr JB© Ad{Y Ho$ {bE Mmby no-amob (doVZ) Ho$ {bE H$Q>m¡{V`m| H$s JUZm H$aVo g_` Ü`mZ _| aIo OmZo dmbo KQ>H$m| H$s gyMr Xr{OE & 4 Explain any two sub-systems of accounting information system. OR List the elements to be considered while calculating deductions for current payroll for a given period. 22. Q>¡br _| ~¢H$ g_mYmZ {ddaU ~ZmZo Ho$ MaUm| H$m CëboI H$s{OE & 4 AWdm g_J« (H$ånmo{OQ>) ~Zm_ AUw (EQ>mo{_H$) JwUm| VWm ^ÊS>m[aV ~Zm_ ì`wËnÞ JwUm| H$mo g_PmBE & State the steps to construct Bank Reconciliation Statements in Tally. 4 OR Explain composite vs atomic attributes and stored vs derived attributes. 23. geV© \$m°_}qQ>J H$m Š`m AW© h¡ ? BgHo$ Xmo Cn`moJ VWm VrZ bm^ Xr{OE & 6 What is meant by conditional formatting ? Give its two uses and three benefits. 67/2/1 27 P.T.O. @KVSHQ @KVS_HQ DESIGNED & PRINTED BY : CHOUDHARY PRINTING PRESS, Near Mohanpur Devisthan, Punaichak, Patna-800 023 Mob. : 09430906087, 07903299242, T/F: 0612-2546751 E-mail - [email protected], Website : www.choudharyprintingpress.com