### ACCOUNTANCY

General Instructions :
(i) This question paper contains two parts A and B.
(ii) Part A is compulsory for all.
(iii) Part B has two options : Option – I Analysis of Financial Statements and Option – II
Computerized Accounting.
(iv) Attempt only one option of Part B.
(v) All parts of a question should be attempted at one place.

PART – A

Q1.Vinay and Naman are partners sharing profit in the ratio of 4:1. Their capitals were 90,000 and 70,000 respectively. They admitted Prateek for 1/3 share in the profits.Prateek brought ` 1,00,000 as his capital. Calculate the value of firm’s goodwill.

Q2.In which ratio do the remaining partners acquire the share of the deceased partner ?

Q3.Give the journal entry for the treatment of partner’s loan appearing on the asset side of the Balance Sheet, on dissolution of a partnership firm.

Q4.Aman, Yatin and Uma were partners and were sharing profits and losses in the ratio of 5 : 3 : 2. Uma retired and her share was taken over by Aman and Yatin 5 : 3 in ratio.Calculate the gaining ratio of Aman and Yatin.

Q5.Give two items which may appear on the debit side of a Partner’s Current Account.

Q6.What is meant by ‘Private Placement of Shares’ ?

Q7.Amit and Kartik are partners sharing profits and losses equally. They decided to admit Saurabh for an equal share in the profits. For this purpose the goodwill of the firm was to be valued at four years’ purchase of super profits.The Balance Sheet of the firm on Saurabh’s admission was as follows :

Q8.The normal rate of return is 12% per annum. Average profit of the firm for the last four years was ` 30,000. Calculate Saurabh’s share of goodwill.

Navnirman Ltd. issued 4,00,000 equity shares of ` 10 each at par. The amount per share was payable as follows :` 3 on application; ` 2 on allotment; ` 2 on first call and ` 3 on final call. The issue was fully subscribed and the shares were allotted fully to all the applicants. All calls were made. Mahi, a shareholder holding 6,000 shares paid the final call money along with the first call. Shrey holding 700 shares did not pay the first call on the due date.Shrey paid the first call along with the final call. The accountant of the company had correctly passed the entries till receipt of allotment money. After that the following entries were left incomplete by him. Complete these entries.

Q9.Janta Ltd. had an authorized capital of 2,00,000 equity shares of ` 10 each. The company offered to the public for subscription 1,00,000 shares. Applications were received for 97,000 shares. The amount was payable as follows on application was` 2 per share, ` 4 was payable each on allotment and first and final call. A shareholder holding 600 shares failed to pay the allotment money. His shares were forfeited. The company did not make the first and final call.Present the share capital in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013. Also prepare Notes to accounts.

Q10.Ajay, Bhawna and Shreya were partners sharing profits in the ratio 2:2:1. On July 1,2017 Shreya died. The books of accounts are closed on March 31 every year. Sales for the year 2016-17 amounted to ` 5,00,000 and that from 1st April to 30th June 2017 were ` 1,40,000. The rate of profit during the past three years had been 10% on sales.Since Shreya’s legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated
as 20% on sales.
(a) Calculate Shreya’s share of profits till the date of her death and pass necessary a
journal entry for the same.
(b) Also, state the value highlighted in the above para.

Q11.Rajiv and Sanjeev were partners in a firm. Their partnership deed provided that the profits shall be divided as follows :
First ` 20,000 to Rajeev and the balance in the ratio of 4 : 1. The profits for the year ended 31st March, 2017 were ` 60,000 which had been distributed among the partners.On 1-4-2016 their capitals were Rajeev ` 90,000 and Sanjeev ` 80,000. Interest on capital was to be provided @ 6% p.a. While preparing the profit and loss appropriation interest on capital was omitted.Pass necessary rectifying entry for the same. Show your workings clearly.

Q12.Venus Ltd., is a real estate company. To discharge its corporate Social Responsibility,it decided to construct a night shelter for the homeless. The company took over assets of ` 10,00,000 and liabilities of ` 1,80,000 of Cayns Ltd. for ` 7,60,000. Venus Ltd..
issued 9% Debentures of ` 100 each at a discount of 5% in full satisfaction of the purchase consideration in favour of Cayns Ltd.
Pass necessary journal entries in the books of Venus Ltd. for the above transactions.Also identify the value observed by Venus Ltd

Q13.Boots Ltd. issued ` 6,00,000, 8% Debentures at a discount of 6%. The debentures were redeemable in four equal annual instalments. Pass necessary journal entries for issue of debentures and prepare ‘Discount on issue of debentures Account’ for four years. Show your workings clearly.

Q14.Girija and Ganesh were partners in a firm sharing, profits and losses in the ratio of 2 : 3. On 31st March, 2017 their Balance Sheet was as follows :

On the above date the firm was dissolved. The assets were realized and the liabilities were paid off as follows :
(a) Debtors of ` 6,000 were proved bad.
(b) Girija agreed to pay off her brother’s Loan.
(c) One of the creditors for ` 10,000 was paid only ` 3,000 in full settlement of his account.
(d) Buildings were auctioned for ` 1,80,000 and the auctioneer’s commission amounted to ` 8,000.
(e) Ganesh took over part of stock at ` 4,000 (being 20% less than the book value).Balance of the Stock was handed over to the remaining creditors in full settlement of their account.
(f) Investments realized ` 9,000 less.
(g) Realisation expenses amounted to ` 17,000 and were paid by Ganesh.Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.

Q15.Parth, Raman and Zaisha are partners in a firm manufacturing furniture. They have been sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2017 they decided to share future profits and losses in the ratio of 2 : 5 : 3. Their Balance Sheet showed a debit balance of ` 4,000 in Profit & Loss Account; balance of ` 36,000 in General Reserve and a Balance of ` 12,000 in Workmen’s Compensation Reserve. It was agreed that –
(i) The goodwill of the firm be valued at ` 76,000.
(ii) The Stock (book value of ` 40,000) was to be depreciated by 8%.
(iii) Creditors amounting to ` 900 were not likely to be claimed.
(iv) Claim on account of Workmen’s Compensation amounted to ` 20,000.
(v) Investments (book value ` 38,000) were revalued at ` 40,000.
The firm manufactures comfortable rocking chairs for donating to ‘Kareforyou’ an Old
Age Home every year. Taking cognizance of the rising pollution levels in the country,
the firm has decided to transfer 10% of the profits every year to ‘Green Fund’
primarily used for environment friendly activities starting from the year 2017-18.
(a) Pass necessary Journal entries for the above.
(b) Also state any two values highlighted in the above case.

Q16.Manvet Ltd. invited applications for issuing 10,00,000 equity shares of ` 10 each payable as follows :
On application and allotment ` 4 per share (including premium ` 1)On first call ` 4 per share,On second and final call ` 3 per share.
Applications for 15,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money was adjusted on the sums due on calls. A shareholder who had applied for 6,000 shares did not pay the first, and the second and final call. His shares were forfeited. 90% of the forfeited shares were reissued at ` 8 per share fully paid up.Pass necessary journal entries for the above transactions in the books of the company.
OR
X Ltd. invited applications for issuing 5,00,000 equity shares of ` 10 each at par. The amount per share was payable as follows :
On Application ` 1 per share
On Allotment ` 2 per share
On First call ` 3 per share
On Second and Final call – Balance.
Applications for 8,00,000 shares were received. Applications for 1,00,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. All calls were made. Ashok a shareholder holding 5000 shares failed to pay the allotment and the call money. Mohan, a shareholder who had applied for 7000 shares, failed to pay the first and second and final call. Shares of Ashok and Mohan were forfeited after the second and final call. Of the forfeited shares 8000 shares were re-issued at ` 12 per share fully paid up. The re-issued shares included all the forfeited shares of Ashok.Pass necessary journal entries for the above transactions in the books of X Ltd.

Q17.On 31st March 2017, the Balance Sheet of Abhir and Divya, who were sharing profits in the ratio of 3 : 1 was as follows :

Q17.They decided to admit Vibhor on April 1, 2017 for 1/5th share.
(a) Vibhor shall bring ` 80,000 as his share of goodwill premium.
(b) Stock was overvalued by ` 20,000.
(c) A debtors whose dues of ` 5,000 were written off as bad debts, paid ` 4,000 in full settlement.
(d) Two months salary @ ` 6,000 per month was outstanding.
(e) Vibhor was to bring in Capital to the extent of 1/5th of the total capital of the new firm.Prepare Revaluation A/c, Partners’ Capital A/c and the Balance Sheet of the reconstituted firm.

OR

Kavya, Manya and Navita were partners sharing profits as 50%, 30% and 20% respectively. On march 31, 2016, their Balance Sheet stood as follows :Balance Sheet of Kavya, Manya and Navita as at March 31, 2016.

On the above date, Kavya retired and Manya and Navita agreed to continue the business on the following terms :
(a) Firm’s goodwill was valued at ` 60,000 and it was decided to adjust Kavya’s share of goodwill in the capital accounts of continuing partners.
(b) There was a claim for workmen’s compensation to the extent of ` 4,000.
(c) Investments were revalued at ` 2,13,000.
(d) Fixed Assets were to be depreciated by 10%.
(e) Kavya was to be paid ` 20,000 through a bank draft and the balance was transferred to her loan account which will be paid in two equal annual instalments together with interest @ 10% p.a.Prepare Revaluation A/c, Partner’s Capital accounts and Kavya’s Loan Account till it is finally paid.

PART – B
OPTION – I
Analysis of Financial Statements

Q18.‘Loans and advances granted’ by a company will be considered, as which type of activity while preparing Cash Flow Statement.

Q19.State the primary objective of preparing the Cash Flow Statement.

Q20.(a) Under which major headings and sub-heading will the following items be shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013 ?
(i) Provision for employee benefits.
(b) State any two limitations of ‘Analysis of Financial Statements’.

Q21.(a) A company earns Gross profit of 25% on cost. For the year ended 31st March, 2017 its Gross Profit was ` 5,00,000; Equity Share Capital of the company was` 10,00,000; Reserves and Surplus ` 2,00,000; Long Term Loan ` 3,00,000 and Non Current Assets were ` 10,00,000.Compute the ‘Working capital turnover ratio’ of the company.
(b) Y Ltd’s profits after interest and tax was ` 1,00,000. Its Current Assets were` 4,00,000; Current Liabilities ` 2,00,000; Fixed Assets ` 6,00,000 and 10% Long term debt ` 4,00,000. The rate of tax was 20%.Calculate ‘Return on Investment’ of Y Ltd.

Q22.From the following information, prepare a Comparative Statement of Profit and Loss :

Q23.Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017

(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of Rs. 53,000 was paid during the year.Prepare Cash Flow Statement.

OPTION – II
Computerised Accounting

Q18.What is meant by the term ‘Front End’ database ?

Q19.Why is ‘Report Wizard’ a favourable tool for designers using MS Access ?

Q20.What is meant by composite attribute ? How is it different from simple attribute ?

Q21.State any four requirements which should be considered before making an investing decision to choose between ‘Desktop database’ or ‘Server database’.

Q22.Explain the terms ‘Password Security’ and ‘Data Vault’.

Q23.Yamaha industries purchased an embossing machine for ` 4,35,000. They paids` 45,000 as installation and transport expenses. Assuming that the salvage value of machine at the end of 5 years is ` 2,00,000, calculate depreciation by Straight Line
Method & its Rate, using formulas in MS excel.