ACCOUNTANCY

Class XII
Time allowed: 3 hours
Maximum Marks: 80
General Instructions:
1. Workings carry marks so show all workings clearly.
1. Which Account is debited when shares are issued to the
Promoters (1)
2. A ltd. Issued for subscription 100 Debentures of Face value Rs. 100
each. The Debentures were issued at a discount of 10% and
Redeemable at Premium of 10%, what will be the Loss on Issue of
Debentures. (1)
3. Give two points of differences between Reserve Capital and Capital
Reserve. (1)
4. At the time of forfeiture of shares what is the effect on Share Capital
Account and with which value. (1)
5. What is meant by issue of Debentures for consideration other than
cash. (1)
6. Metcalf Ltd. issued 50,000 shares of ` 100 each payable `20 on
application; `30 on allotment; `20 on first call and the balance on final
call. Shankar, a shareholder holding 5,000 shares did not pay the first
call on the due date. The second call was made and Shankar paid the
first call amount along with the second call. All sums due were
received. What is the amount received on the Second call? (1)
7. State any three purposes for which securities premium

can be utilized. (3)

8. N Ltd. was registered with an authorized capital of `5,00,000
divided into 50,000 equity shares of `10 each. Since the economy was
in robust shape, the company decided to offer to the public for
subscription 30,000 equity shares of `10 each at a premium of `20 per
share. Applications for 28,000 shares were received and allotment was
made to all the applicants. All calls were made and duly received
except the final call of ` 2 per share on 200 shares. Show the Share
Capital in the Balance Sheet of N Ltd. as per Schedule III of the
Companies Act 2013. Also prepare Notes to Accounts for the same.
(3)
9. Y Ltd. had a prosperous shoe business. They were manufacturing
shoes in India and exporting to Italy. Being a socially aware
organization, they wanted to pay back to the society. They decided to
not only supply free shoes to 50 orphanages in various parts of the
country but also give employment to those children from the
orphanages who were above 18 years of age. In order to meet the fund
requirements, they decided to raise 50,000 equity shares of ` 50 each
and 40,000 9% debentures of ` 40 each. Pass the necessary journal
entries for issue of shares and debentures. Also identify one value
which the company wants to communicate to the society. (3)
10. Joy Ltd. issued 1,00,000 equity shares of `10 each. The amount
was payable as follows: On application `3 per share. On allotment
`4 per share. On 1st and final call balance Application for 95,000
shares was received and shares were allotted to all the applicants.
Sonam to whom 500 shares were allotted failed to pay allotment
money and Gautam paid his entire amount due including the amount

due on first and final call on the 750 shares allotted to him along with
allotment. Calculate the amount received on allotment? (3)
11. S Woolens Ltd., Ludhiana, are the manufacturers and exporters
of woolen garments. The company decided to distribute free of cost
woolen garments to 10 villages of Lahul and Spiti District Himachal
Pradesh. The company also decided to employ 50 young persons
from these villages in its newly established factory. The company
issued 40,000 equity shares of `10 each and 1,000 9% debentures of
`100 each to the vendors for the purchase of machinery of `5,00,000.
Pass necessary Journal Entries. Also identify any one value that the
company wants to communicate to the society. (4)
12. A Ltd. invited applications for issuing 75,000 equity shares of ` 10
each. The amount was payable as follows: On application and
allotment ` 4 per share. On first ` 3 per share On second and final
call Balance Applications for 1,00,000 shares were received. Shares
were allotted to all the applicants on prorata basis and excess money
received with application was transferred towards sums due on first
call. V who was allotted 750 shares failed to pay the first call. Her
shares were immediately forfeited. Afterwards the second call was
made. The amount due on second call was also received except on
1000 shares, applied by M. Her shares were also forfeited. All the
forfeited shares were re-issued to N for ` 9,000 as fully paid up. Pass
entries for forfeiture and reissue of shares. (4)
13. Solve the following : ( 6 marks)
(a) P Ltd forfeited 1000 shares of Rs10 each issued @20%
premium (Rs 8 called up) on which Rs 5 on allotment (including

premium) and first call of Rs 2 was not paid. Out of these 140
shares were reissued @8 paid up for Rs 6 per share. Journalise. (3)
(b) On 1st Jan 2005, X Ltd received in advance the first call of Rs 2 per
share on 10,000 equity shares. The first call was due on 15th Feb
2005. Journalize the above transactions and transfer the advance to
first call account by opening calls in advance account.( 3)
14. M Ltd issued 2,00,000 equity shares of Rs 10 each. The amount
payable was Rs 3/ Share on application, Rs 5 per share on allotment
and first & final call of Rs 2 per share. Applications for 3,00,000
shares were received and prorata allotment was made. Q who
was allotted 3,000 shares failed to pay the allotment and
the call money. His shares were forfeited and out of this 2,500
shares were reissued as fully paid up @Rs 8 per share. Give Journal
entries for forfeiture and re issue of shares. (6)
15. Pass the necessary journal entries for the following transaction in
the books of P ltd. (6)
1 Purchased land worth Rs 20, 00,000. Paid Rs.2,00,000 cash
and for the rest of the amount Venders were paid by issue of
10% debentures of Rs.100 each at a discount of 10%
2 Issued Rs 4, 00,000 10% debentures as collateral security.
3 Issued Rs 1, 00,000 12% debentures at a discount of 5 %
redeemable at a premium of 10%.
16. Wellness Ltd. invited applications for issuing 40,000 equity
shares of `10 each at a discount of 10%. The amount was payable as
follows: On application and allotment `4 per share. On first call `3
per share. Applications for 39,000 shares were received and allotment

was made to all the applicants. The payment was received as per the
following details:
On 30,000 shares Full amount.
On 6,000 shares `7 per share.
On 3,000 shares `4 per share.
The Directors forfeited those shares on which less than `7 per share
were received. The forfeited share were re-issued at `8 per share as
fully paid up. Pass necessary Journal Entries in the books of the
company for the above transactions.
OR
Amrit Dhara Ltd. invited applications for issuing 80,000 equity
shares of `10 each. The amount was payable as follows: On
application and allotment `2 per share. On first call `4 per share.
On second and final call the balance. Application for 1,00,000 shares
were received. Shares were allotted on pro-rata basis to all the
applicants. Excess money received with applications was adjusted
towards sums due on first call. Manohar who had applied for 2,000
shares failed to pay the first call and his shares were immediately
forfeited. Afterwards second and final call was made. Mahan who was
allotted 2,400 shares failed to pay the second and final call. His shares
were also forfeited. All the forfeited shares were re-issued at `9 per
share as fully paid up Pass necessary Journal Entries in the books of
the company for the above transactions. [8]
17. Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity
shares of ` 10 each at a premium of ` 2 per share. The amount was

payable as follows: On application - ` 2 per share On allotment - ` 5

per share (including premium) On first and final call balance
Applications for 1,50,000 shares were received. Shares were allotted
to all the applicants on prorata basis. Excess money received on
applications was adjusted towards sums due on allotment. All calls
were made, Manu who had applied for 3,000 shares failed to pay the
amount due on allotment and first and final call. Madhur who was
allotted 2,400 shares failed to pay the first and final call. Shares of
both Manu and Madhur were forfeited. The forfeited shares were
reissued at ` 9 per share as fully paid up. Pass necessary journal
entries for the above transactions in the books of Jeevan Dhara Ltd.
(8)

PART-B (Financial Statements Analysis)

18. Why are potential investors interested in financial statements? (1)
19. While preparing the Cash Flow Statement the accountant of
Gulfam Ltd., a financing company showed Dividend received on
Investments on Investing Activity. Was he correct in doing so? Give
reasons. (1)
20. Under which major headings the following items will be presented
in the balance sheet of a company as per Schedule III of the
Companies Act, 2013? (4)
(a) Loans provided repayable on demand
(b) Goodwill
(c) Copyrights
(d) Loose
tools
(e) Cheques
(f) General Reserve
(g) Stock of finished goods and

(h) 9% debentures repayable after three years

21. From the following information related to Naveen Ltd. Calculate:
(a) Return on investment and
(b) Total assets to Debt Ratio.
Information: Fixed assets `75,00,000; Current assets `40,00,000;
Current Liabilities `27,00,000; 12% debentures `80,00,000 and Net
profit before interest, tax and dividend `14,50,000. [4]
22. The motto of Yash Ltd., an advertising company is Service with
dignity. Its management and work force is hard-working, honest and
motivated. The net profit of the company doubled during the year
ended 31-3-2014. Encouraged by its performance company decided
to give one month extra salary to all its employees. Following is the
comparative statement of Profit and Loss of the company for the years
ended 31st March, 2013 and 2014. Yash Ltd. Comparative Statements
of Profit and Loss

Yash Ltd.
Comparative Statements of Profit and Loss

Particulars

Revenue from
operations Less
employees
benefit
expenses Profit
before tax
Tax rate 25%
Profit after tax

Note 2013-14
No.

10,00,000

2014-15

Absolute %
change
chang
e

15,00,000

5,00,000
50

6,00,000

7,00,000

1,00,000
16.67

4,00,000
1,00,000

8,00,000
2,00,000

4,00,000
1,00,000

3,00,000

6,00,000

3,00,000

100
100
100

(a) Calculate Net Profit ratio for the years ending 31st March, 2013
and 2014.
(b) Identify any two values which Yash Ltd. is trying to
propagate.
[4]
23. Following is the Balance Sheet of XYZ Ltd. as at
31-3-2014:
(6)
XYZ Ltd.
Balance Sheet as at 31st March, 2015
Particulars
Not 2013-14
e
I. Equity and Liabilities
No.

2012-13

(1) Shareholders Funds

(a) Share capital
(b) Reserves and
surplus
(2) Non current Liabilities
Long term borrowings
(3) Current Liabilities
(a) Trade payables
(b) Short term
provisions

12,00,000

11,00,000

3,00,000

2,00,000

2,40,000

1,70,000

1,79,000

2,04,000

50,000

77,000

1.

19,69,000 17,51,000
II. Assets
(1) Non-current assets
(a) Fixed assets
(i) Tangible
(ii) Intangible
(2) Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and cash
equivalents

2.
3.

10,70,000
40,000

8,50,000
1,12,000

2,40,000
1,29,000
1,70,000

1,50,000
1,21,000
1,43,000

3,20,000

3,75,000

19,69,000 17,51,000

Notes to Accounts:
S. Particulars
No
.
Reserves and surplus Surplus
1. (balance in statement of Profit and
Loss

2.

3.

2014-15

2013-14

3,00,000

2,00,000

Tangible assets
Machinery
Less: Accumulated depreciation

12,70,000
(2,00,000)

10,00,000
(1,50,000)

Intangible assets
Goodwill

40,000

1,12,000

Additional information: During the year a piece of machinery, costing

`24,000 on which accumulated depreciation was `16,000, as sold for
`6,000.