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Important Questions Chapterwise

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Published in: Accounts
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Hi Guys, This will be a very useful to all 12th CBSE Accounts Students, to revise all the chapters from basics. If anyone finds difficult in solving questions, please free to ask me. I will be posting little tough questions by next week.

Shambhu I / Bangalore

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Teaches: Accounts, ACCA, CA - CPT, CA Foundation, CA Intermediate, CMA Foundation, Costing, CS - Foundation, Accountancy, Business Mathematics, Business Organisation, Business Studies, Commerce Subjects

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  1. IMPORTANT QUESTIONS IMPORTANT QUESTIONS 01/10/2024 2. 3. 4. 5. 6. CHAPTER 2: Accounting for Partnership Firms — Fundamentals . What are the essential features of a partnership? Write the contents for partnership deed? X and Y started business with capital of Rs. and Rs. 60,000 on 1st April 2018. Y is entitled to a salary of Rs. 800 per month. Interest is allowed on capitals and is charged on drawings at 6% per annum. Profits are to be distributed equally after the above noted adjustments. During the year X withdrew Rs. 16,000 and Y withdrew Rs. 20,000. The profit for the year before allowing for the terms of the partnership deed came to Rs. 60,000. Assuming the capitals to be fixed, prepare the capital and current accounts of X and Y. Sita and Gita are partners in a firm. Balances of their capital accounts as on 1st April 2018 were as follows; Sita Rs. 40,000, Gita Rs. 30,000. Sita introduced Rs. 5,000 as an additional capital on 1 st October 2018 and Gita introduced Rs. 7,500 as additional capital on November 2018. Sita drew capital amounting to Rs. 7,500 on 1st January 2019 and Gita withdrew capital amounting Rs. 2,500 on 1st February 2019. They have further agreed to allow interest on capital @12% per annum. Books of the accounts of the firm are to be closed on 31 March 2019. Calculate interest to be allowed on partner's capital. Calculate the interest on drawings of X @ 10% p.a. for the year ended 31st March 2018 in each of the following cases: . If his drawings during the year were Rs. 12,000 2. If he withdrew Rs. 1,000 p.m. at the beginning of every month. If he withdrew Rs. 1,000 p.m. at the end of every month. 3. If he withdrew Rs. 1,000 p.m. In the middle of each month. 4. 5. In he withdrew the following amounts- April 30th Rs. 3,000, June 30th Rs. 2,000, October Rs. 4,000, December 31st Rs. 1,500, February 1st 2,500 If he withdrew Rs. 3,000 at the beginning of each quarter 6. If he withdrew Rs. 3,000 at the end of each quarter. 7. If he withdrew Rs. 3,000 during the middle of each quarter. 8. X, Y and Z are three partners in a firm since 31-3-2015. They share profits and losses equally. According to the partnership agreement interest on drawings is to be charged at the rate of 10% p.a. Drawings made by partners during the year 2014-2015 are as follows: Date April 1 July 1 December I February I SHAMBHU INSTITUTE 2500 1500 2500 1000 1500 1000 2000 500 c 1000 1500 1000 500 SHRIMATHI ARAVIND
  2. IMPORTANT QUESTIONS 01/10/2024 7. 8. 9. The profits for the year amount to Rs. 15,000. You are required to compute the interest on drawings recoverable from the partners. X, Y and Z are partners in a firm sharing profits in the ratio of 2: 2: 1. According to the terms of the partnership agreement, Z must get a minimum of Rs. 12,000 irrespective of the profits of the firm. Any excess payable to Z account of such a guarantee shall be borne by X. Prepare the profit or loss appropriation account showing the distribution of profits among the partners in case the profits for the year 2017-2018 are 1. Rs. 50,000 and 2. Rs. 80,000 Ram and Shyam with capitals of Rs. 60,000 and 20,000 respectively on 1st April 2018. Net profit (before provisions of deed) for the year ended 31st March 2019 was Rs. 24,000. The provision Deed provides: 1. Bis entitled to a salary of 6,000 p.a. 2. Interest on capital is to be allowed @ 6% p.a. 3. Interest on drawings is to be charged @ 5% p.a. The drawings of the partners A and B were Rs 6000 and 4000 respectively and interest on drawings for A being Rs. 200 and B Rs. 100. Pass the journal entries for the above and show profit will be divided between A and B and also show the capital accounts of the partners along with their Drawings Accounts 4. If they are fixed 5. If they are fluctuating SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  3. IMPORTANT QUESTIONS IMPORTANT QUESTIONS CHAPTER 13: Accounting Ratios . What are the advantages of ratio analysis? 2. What is:- a. b. c. Current ratio Liquidity ratio Solvency ratio 3. Calculate current ratio from the following: Rs. Particular 01/10/2024 Rs. Particular Total Assets Fixed Assets (Tangible) Shareholder funds Non-current Liabilities 80,000 Non-current Investments 1 4. 5. 6. 7. 8. Current Ratio is 2.5; working capital is Rs. 60,000. Calculate the amount of current assets and current liabilities. Ratio of current assets (Rs. to current liabilities (Rs. is 2.5: 1. The accountant is interested in maintaining a current ratio of 2: 1 by acquiring some current assets on credit. Suggest him the amount of current assets that should be acquired. Inventories are Rs. 80,000; working capital Rs. current assets; Rs. 40,000; calculate liquid/quick ratio. Calculate Debt to Equity ratio from the following information: a. Total assets b. Total Debts c. Current Liabilities 50,000 Total Debts Rs. current liabilities Rs. capital employed Rs. Calculate the total assets to debt ratio. SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  4. IMPORTANT QUESTIONS 01/10/2024 IMPORTANT QUESTIONS CHAPTER 8: Accounting for Share Capital . Describe the salient features of a company? 2. What is the difference between private and public company? 3. Describe the following: a. Issued share capital. b. Paid up share capital. c. Reserve share capital ABC Company Ltd was registered with a capital of divided into 4. equity shares of Rs. 100 each, issued 6000 shares to the public. The entire 6000 shares were subscribed for by the public and were duly allotted. The shareholders were called upon to pay Rs. 90 per share. The first call of Rs. 20 per share was not received on 100 shares. Show the presentation of various shares capital in the absence of the company. 5. Explain the difference types of shares? X Ltd was registered with a capital of 2300000 in shares of Rs. 10 each. It 6. issued a prospectus inviting applications for 23000 shares at 40% premium payable at follows: On Application Rs. 5 (including Rs. 1 premium) On Allotment Rs. 4 (including Rs. 1 premium) On First call Rs. 3 (including Rs. 1 premium) On Second call Rs. 2 (including Rs. 1 premium) Applications were received for 23000 shares. All money was duly received. Pass the necessary journal entries. The Adarsh Control Device Ltd. Issued to the public for subscription of 7. 1000 shares of Rs. 10 each at discount of 10% payable Rs. 4 on application, Rs. 3 on allotment and Rs. 2 on first and final call. The issues were fully subscribed, and all the money was duly received. Write the journal entries for the above in the books of accounts. A Company issued to the public subscription 16, 8000 shares of Rs. 10 8. each at discount of 10% payable as Rs. 2 on Application, Allotment and first call and Rs.3 on the Final call. Applications were received for 2, 52000 shares and allotment were made prorate to 80% of applicants. R to whom 6720 shares were allotted to paid only the application money and S who had applied for 10080 shares paid the entire call money due along with the allotment. Pass the necessary journal entries to record the above transactions assuming that calls-in-arrears account is maintained. 9. D Ltd. makes an issue of 10000 equity shares of Rs.10 each payable as: a. On Application Rs. 3 b. On Allotment Rs. 3 c. On first and final call Rs. 4 All the shares were subscribed. One shareholder who has been allotted 500 shares however paid the entire amount due on his shares however paid the entire amount due on his shares along with his allotment money. SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  5. IMPORTANT QUESTIONS IMPORTANT QUESTIONS CHAPTER 14: Cash Flow Statement . Write the importance of cash flow statement? Define the following with examples? a. Operating activities b. Investing activities c. Financing activities 01/10/2024 2. 3. 4. 5. 6. Identify out of the following transactions that are shown as financing activities: a. b. c. d. e. f. g. h. Repayment of loan taken Proceeds from issue of shares Debentures subscribed by the company. Redemption of preference shares Interest paid. Dividend paid. Increase in bank overdraft or cash credit. Issue of bonus shares Identify which of the following transactions are operating, investing or financing activities and cash and cash equivalents: a. b. c. d. e. f. g. h. Sale of investments Dividend received on shares. Interest received on investments. Rent received by real estate company. Rent received by a company whose main business is manufacturing. Interest paid on Debentures or long-term loans. Marketable securities Proceeds from shares issued. . Interest paid on bank overdraft. Following is the extract of balance sheet: Particulars Equity share capital 10% redeemable preference share capital Surplus Dividend payable Additional Information: 3F March 2019 5,oo,ooo 20,000 31" March 2018 5,oo,ooo 5,oo,ooo 2,50,ooo a. Proposed dividend on equity shares for the years ended 31 March, 2018 and 2019 were: and SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  6. IMPORTANT QUESTIONS 01/10/2024 7. 8. b. An interim dividend of Rs. 50,000 on equity shares was paid on 31st December 2018 Determine net profit before tax and extra ordinary items. Z Ltd. earned a profit of Rs. after charging depreciation of Rs. on assets and a transfer to general reserve of Rs. Goodwill amortized was Rs. 35,000 and gain on sale of machinery was Rs. 15,000. Additional Information: At the end of the year, Debtors showed an increase of Rs. 30,000; creditors an increase of Rs. 50,000; prepaid expenses an increase of Rs. 1,000; bills receivable a decrease of Rs. 15,000; bills payable a decrease of Rs. 20,000 and outstanding expenses a decrease of Rs. 10,000. Determine the cash flow from operating activities. From the following information calculate cash flow from investing activities: Particulars Machinery (at cost) Accumulated Depreciation Patents SHAMBHU INSTITUTE Closing Balances Opening Balances SHRIMATHI ARAVIND
  7. IMPORTANT QUESTIONS 01/10/2024 IMPORTANT OUESTIONS CHAPTER 5: Admission of a Partner . Write the effects of admission of a partner? 2. Define new profit-sharing ratio? X and Y are partners sharing profit in the ratio of 3:2. They admit Z as a 3. new partner for 1/5"' shares in profit. Calculate the new profit-sharing ratio and sacrificing ratio. 4. A and B are partners sharing profits and losses equally. They admit C, as a new partner who acquires his share as 1/5th from A and Y4th from B. You are required to calculate the sacrifice ratio and the new profit-sharing ratio. On 1st April 2012 shalu and charu entered a partnership for sharing profits 5. in the ratio of 4:3. They admitted Tanya as a new partner on 1st April 2012 for 1/5th share which she acquired equally from shalu and charu. Shalu, charu and Tanya earned a profit at a higher rate than the normal rate of return for the year ended 31st March 2013. Therefore, they decided to expand their business. To meet the additional capital requirement they admitted Anjali as a new partner on 1st April 2013 for 1/7"' share in profits which he acquired from shalu and charu in 7:3 ratio. Calculate: a. New profit-sharing ratio of Shalu Charu and Tanya for the year 2012- 13. b. New profit-sharing ratio of Shalu Charu Tanya and Anjali on Anjali's admission. A and B are partners sharing profits in the ratio of 3: 1. C is admitted into 6. partnership for hth profits. Calculate sacrificing and new profit-sharing ratio. A, B and C are partners in a firm sharing profits and losses in the ratio of 7. 8. 6: 3:1. They admit D into partnership on 1st April 2019. New profit-sharing ratio among A, B, C & D will be 3:3:3:1. Determine the sacrificing ratio. Following is the balance sheet of W, X and Y who share profits in the ratio 9. of 2: 2:1. Balance sheet as on 31st March 2012 Liabilities Sundry creditors Outstanding liabilities General reserwe Capital Account Mr. W Mr. X Mr. Y SHAMBHU INSTITUTE 24,000 24,000 10,000 Amount 25,700 3,000 13,000 58,000 Assets Land and Building Furniture Stock of goods Sundry Debtors Cash in hand Cash at Bank 50,000 13,000 23,500 11,000 280 1,920 SHRIMATHI ARAVIND
  8. IMPORTANT QUESTIONS 01/10/2024 The partners have agreed to take Mr. Z as a partner with effect from 1st April 2012 on the following terms: a. b. c. d. e. f. g. h. Mr. Z shall bring 10,000 towards his capital. The value of stock would be increased by 5,000 and furniture should be depreciated by 10%. Reserves for bad and doubtful debts should be provided at 10% of the debtors. The value of land and building should be enhanced by 20% The value of the goodwill should be fixed at Rs. 30,000 General Reserve will be transferred to the partner's capital accounts. The new profit sharing ratio shall be: W- 5/15, X- 5/15, Y - 3/15, Z- 2/15 The outstanding liabilities include Rs. 2,000 due to Mr. P which has been paid by Mr. W. Necessary entries were not made in the books Prepare Revaluation Account and the capital accounts of the partners. SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  9. IMPORTANT QUESTIONS 01/10/2024 IMPORTANT OUESTIONS 2. 3. 4. 5. CHAPTER 14: Cash Flow Statement . Write the importance of cash flow statement? Define the following with examples? a. Operating activities b. Investing activities c. Financing activities Identify out of the following transactions that are shown as financing activities:- a. b. c. d. e. f. g. h. Repayment of loan taken Proceeds from issue of shares Debentures subscribed by the company. Redemption of preference shares Interest paid Dividend paid Increase in bank overdraft or cash credit Issue of bonus shares Identify which of the following transactions are operating, investing or financing activities and cash and cash equivalents:- a. b. c. d. e. f. g. h. Sale of investments Dividend received on shares Interest received on investments Rent received by real estate company Rent received by a company whose main business is manufacturing Interest paid on Debentures or long term loans Marketable securities Proceeds from shares issued . Interest paid on bank overdraft Following is the extract of balance sheet:- Particulars Equity share capital 31" March 2019 5,oo,ooo 10% redeemable preference share capital 5,00,000 31• March 2018 5,oo,ooo Surplus Dividend payable Additional Information: 20,000 a. Proposed dividend on equity shares for the years ended 31 March, 2018 and 2019 were:- and SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  10. IMPORTANT QUESTIONS 01/10/2024 6. 7. b. An interim dividend of Rs. 50,000 on equity shares was paid on 31st December 2018 Determine net profit before tax and extra ordinary items. Z Ltd. earned a profit of Rs. after charging depreciation of Rs. on assets and a transfer to general reserve of Rs. Goodwill amortized was Rs. 35,000 and gain on sale of machinery was Rs. 15,000. Additional Information: At the end of the year, Debtors showed an increase of Rs. 30,000; creditors an increase of Rs. 50,000; prepaid expenses an increase of Rs. 1,000; bills receivable a decrease of Rs. 15,000; bills payable a decrease of Rs. 20,000 and outstanding expenses a decrease of Rs. 10,000. Determine the cash flow from operating activities. From the following information calculate cash flow from investing activities: Particulars Machinery (at cost) Accumulated Depreciation Patents SHAMBHU INSTITUTE Closing Balances Opening Balances SHRIMATHI ARAVIND
  11. IMPORTANT QUESTIONS IMPORTANT QUESTIONS 01/10/2024 CHAPTER 4: Change in Profit Sharing Ratio among the 1. 2. 3. 4. 5. Existing Partners Define Sacrificing Ratio? Define Gaining Ratio? Aman, Yatin and Uma were partners sharing profits and losses in the ratio of 5: 3 : 2. Uma retired and her share was taken over by Aman and Yatin in 5 : 3 ratios. Calculate the gaining ratio of Aman and Yatin. P, Q and R are partners sharing profits and losses in the ratio of 5 : 4 : 1 Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases: Case 1 . R acquires 1/5th share from A. Case 2. R acquires 1/5th share equally form A and B. Case 3. P, Q and R will share future profits and losses equally. Case 4. R acquires 1/1 0th share of A and h share of B. Ram and sham are partners sharing profits and losses in the ratio 4 : 1. They decide to share profits in the ratio of 3 : 2 on 1 't April 2018. However, the decision to change the profit-sharing ratio was taken after crediting share of profit for the year ended 31 March, 2019 to capital accounts, which was Rs. Goodwill of the firm as of 1 't April, 2018 was valued at Rs. 75,000. capital account credit balance was and SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  12. IMPORTANT QUESTIONS 01/10/2024 1. 2. 3. 4. 5. 6. IMPORTANT QUESTIONS CHAPTER 7: Dissolution of a Partnership Firm Write the difference between firm's debts and private debts? What journal entries would be passed in the books of A and B sharing profits and losses in the ratio of 5:2, for the following transactions on the dissolution of a firm, after various assets (other than cash) and third party liabilities would have been transferred to realization account:- a. b. c. d. e. f. Realization expenses amounted to Rs. 200. B one of the partners has to bear these expenses. B one of the partners agreed to take over the creditors of Rs. 3,000 for zooo. A, one of the partners has given loan to the firm of Rs. 1,000. It was paid back to him at the time of dissolution. Profit and loss account balance of Rs. 5,600 appeared on the assets side of the balance sheet. Deferred revenue advertising expenditure appeared at Rs. 2,800 An unrecorded investment of Rs. 700. Write the difference between dissolution of firm and dissolution of partnership. What can be the reasons for dissolution of partnership firm? The following is the balance sheet of X, Y and Z as on 31-12-2017. Liabilities Creditors Bills payable Reserve fund Capitals: x z Amount 15,000 1,800 6,000 22,000 12,000 10,000 66,800 Assets cash Debtors Investment Stock Furniture Buildings Goodwill Amount 6,500 8,600 10,000 13,700 5,100 12,900 10,000 66,800 It was decided to dissolve the partnership firm on the following terms: a. b. c. d. e. X took over the goodwill at Rs.12000 and furniture at Rs. 4,500. Y took over creditors at book value. Z took over bills payable at book value. The other assets realized as under: Debtors: 8000 Investments: 8950 Stock: 15600 Buildings: 15750 Realization expenses amounted to Rs. 600. SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  13. IMPORTANT QUESTIONS f. Prepare: 1. Realization Account 2. Partner's capital Account 3. Cash Account 01/10/2024 7. X and Y were partners sharing profits in the ratio of 3 : 2. Give journal entries under the following:- a. b. c. d. e. Workmen compensation reserve was Rs. 70,000 and liability for it was Rs. 40,000. Workmen compensation reserve was Rs. 65,000 and liability was Rs. 70,000. Workmen compensation reserve was 60,000 and liability was 60,000. Workmen compensation reserve was zero and liability was Rs. 20,000. Workmen compensation Reserve in the balance sheet was Rs. 75,000 and there is no liability towards workmen compensation. SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  14. IMPORTANT QUESTIONS 01/10/2024 IMPORTANT OUESTIONS 2. 3. 4. 5. 6. 7. CHAPTER 12: Financial Statement Analysis . What are comparative and common-size statements? Differentiate between horizontal and vertical analysis? What are the uses of financial analysis? From the following balance sheet of X Ltd. as at 31 't March 2019, prepare comparative balance sheet: Particulars 1. Equity and Liabilities Share capital. 2. Non-current Liabilities Long—term borrowings: debentures (secured) 3. Current Liabilities Trade payables Total Il. Assets Note no. 4. 3F March 2019 C. 5. 6. Total Non-current assets Fixed assets: Tangible Assets Current Assets a. Trade receivables b. Cash and cash equivalents From the following statement of profit and loss for the year ended 31st March 2014. Prepare comparative statement of profit and loss of Good Services Ltd. Particulars Revenue from operations Other incomes Expenses Rate of income tax was 50%. Note no. 2013-14 2012-13 From the following statement of profit and loss for the years ended 31st March, 2012 and 201 3, prepare common-size statement of profit and loss:- Particulars 1. Income Revenue from operations (net sales) SHAMBHU INSTITUTE Note no. 3. 3F March 2013 31A March 2012 SHRIMATHI ARAVIND
  15. IMPORTANT QUESTIONS 2. Expenses Purchase of stock In trade Change in inventories Depreciation and amortization expenses Other expenses Total 3. Profit before Tax(l-ll) 4. Less: Income tax 5. Profit after Tax (Ill-IV) SHAMBHU INSTITUTE (20,000) 30,000 50,000 96,000 01/10/2024 30,000 20,000 30,000 2,oo,ooo 60,000 SHRIMATHI ARAVIND
  16. IMPORTANT QUESTIONS 01/10/2024 IMPORTANT OUESTIONS 2. 3. 4. 5. 6. CHAPTER 3: Goodwill: Nature & Valuation . What do you mean by goodwill? Explain the different methods of valuation of goodwill? Pooja purchased Ritik's business on 1 •t April 2019. It was agreed to value goodwill at three year's purchase of average normal profits of the last four years. The profits of Ritik's business for the last four years were: Year ended March, 2016 31n March, 2017 31 n March, 2018 31 n March, 2019 Following are noticed: 90,000 a. During the year ended 31st March 2016 an asset was sold at a gain (profit) of Rs. 10,000. b. During the year ended 31 •t March 2017 a machine got destroyed in accident and Rs. 30,000 was written off as a loss in profit and loss account. c. During the year ended 31st March 2018, firm's assets were not insured due to oversight. Insurance premium being Rs. 10,000. Calculate the value of goodwill. Anita and Anaya are partners sharing profits in the ratio of 3:2. They admit Ashna into partnership. It was agreed to value goodwill at three year's purchase based on weighted average profit for the past 5 years. Weights being assigned to each year were: The profits of 5 years were: Year ended 31 n March, 2015 March, 2016 31n March, 2017 31 n March, 2018 31 n March, 2019 Book revealed: Profits 250,000 3,oo,ooo a. An abnormal gain of Rs. 20,000 was earned in the year ended 31•t March 2016. SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  17. IMPORTANT QUESTIONS 01/10/2024 b. c. d. An abnormal loss of Rs. 10,000 was incurred in the year ended March 2017. Expense of 50,000 incurred to overhaul a machine on 1 •t April 201 7 was debited to profit and loss account instead of being debited to machinery account. Depreciation is charged on machinery @20% on written down value method. Closing stock as on 31 March 2018 was undervalued by Rs. 20,000. 7. 8. 9. Calculate the value of goodwill. Amit and Akshay are partners in twins Ltd. They admit Ashish as partners on 1st April 2019. They agreed to value goodwill at 3 year's purchase by super profit method for which they decide to take average of last 5 years profits as follows: Year ended 31 n March 2015 31 n March 2016 31 n March 2017 31 n March 2018 31 n March 2019 2,00,000 (including gain of 25000 from the sale of fixed asset) 1 , 70,000 (including abnormal loss of 2, 10,000 2,50,ooo Capital employed in the firm is Rs. and normal rate of return in similar business is 10%. Calculate the value of goodwill. RG and MK are the partners in the firm. Their capitals are 3, 00,000 and During the year ended 31 March 2010 the firm earned a profit of 1 Assuming that the normal rate of return is 20%. Calculate the value of goodwill of the firm: a. By capitalization method b. By super profit method if the goodwill is valued at 2 years purchase of super profit. SHAMBHU INSTITUTE SHRIMATHI ARAVIND
  18. IMPORTANT QUESTIONS SHAMBHU INSTITUTE 01/10/2024 SHRIMATHI ARAVIND

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