Analysis of Accountancy Sample Papers (2009-10)

8/3/2019 Analysis of Accountancy Sample Papers (2009-10)

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LATEST CURRICULUM, MARKS ALLOTTED, FORMSOF QUESTIONS, ACTUAL QUESTIONS,

COMMENTS, IMPLCATIONS FOR CURRICULUM

TRANSACTION ETC

By SHRUTI BODH AGARWAL(Vice President, CTA)


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ABSTRACTyAs per the latest curriculum and subsequent

notifications based on the feedback received CBSE has

included DISSOLUTION OF PARTNERSHIP FIRM inthe curriculum this time apart from the topics listedlast year. Consequently there has been a change in theCBSE sample papers issued. Accordingly they arebeing analyzed from the point of view of students andteachers for better performance of the students.


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INTRODUCTIONThis analysis is according to the units in the curriculum.

First the curriculum of that unit is specified, and then

the marks allotted to the total unit are given, then theform of questions followed by actual questions.Comments on group of questions are given. Lastlyoverall comments for the subject are also given.


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MAJOR CHANGES IN SYLLABUSVide circular no 25/2009 dated 14/7/2009 CBSE has

clarified that the following portions have been deleted

from the curriculum:-1. Issue of debentures at a discount

2. Writing off discount on issue of debentures.

3. Sinking funds as one of the methods of Redemption of

Debentures.


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UNIT 1 NOT FOR PROFIT

ORGANISATIONS(CURRICULUM)1. Meaning and features of not for profit organizations.

2. Meaning and features of fund based accounting.

3. Receipts and payments Account4. Preparation of Income and Expenditure Account and

Balance Sheet from Receipt and Payment Account withadditional information.

Marks allotted= 10

Form of questions asked= 1+3+6


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UNIT-1 NPO(3 MARKS QS)3 mark question is usually based on calculation of amount to

be credited to Income & expenditure account or amount toappear in balance sheet in respect of funds etc. The

students should be clear that in respect of Income &Expenditure account the amount that will pertain tocurrent year will only appear. So the adjustments in respectof amounts prepaid, unpaid or received in advance or notreceived should be properly adjusted. In respect ofquestions pertaining to fund balances that would appear in

balance sheet appropriate adjustments for opening andclosing balances should be made. The actual questionsare:-


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NPO 3 MARKS QUESTIONI. Show the following information in the Balance Sheet

of the Cosmos Club as on 31st March, 2007:

1. Tournament Fund Rs. 1,50,000(cr.)2. Tournament Fund Investment Rs. 1,50,000 (Dr.)

3. Income from Tournament fund Investment Rs.18000

4. Tournament Expenses Rs. 12,000

Additional Information

Interest accrued on tournament fund Investment=Rs.6,000 (3 marks)


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NPO 3 MARKS QU NO 2On the basis of following information, calculate the

amount of stationery to be shown in Income and

Expenditure Account for the year ended 31st March,2007. (3)

Stock of stationery on 1.4.2006 = Rs.50,000

Stock of stationery on 31.3.2007= Rs.40,000

Amount paid for stationery during the year= Rs.2,00,000

Creditors for stationery on 1.4.2006= Rs. 20,000

Creditors for stationery on 31.3.2007= Rs. 10,000


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NPO 6 MARKS QUESTIONS6 marks question if a full fledged question based on

preparation of income & expenditure account and

balance sheet from the receipt and payment accountand accompanying details. Usually an opening balancesheet is also to be prepared. Special practice should begiven in calculating the amount of subscription,opening balances of assets, items requiringadjustments in respect of prepaid, unpaid, notreceived or received in advance amounts.


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NPO 6 MARKS QUESTIONSFrom the following Receipts and Payments Account of

Sonic Club and from the given additional information;

prepare Income and Expenditure Account for the yearending 31st December, 2006 and the Balance Sheet ason that date :

Receipts= op. balance (Rs. 1,90,000)+ Subscriptions(Rs.

6,60,000)+ Interest on Investments@ 8% p.a. for fullyear (Rs.40,000)= Rs. 8,90,000.

Payments= Salaries (Rs. 3,30,000)+ SportsEquipment(Rs. 4,00,000)+ Cl. Balance(Rs.1,60,000)=

Rs. 8,90,000


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Additional Information(6 marks

question)(a) The club had received Rs. 20,000 for subscription in

2005 for 2006.

(b) Salaries had been paid only for 11 months(c) Stock of Sports Equipment on 31st December, 2005

was Rs. 3,00,000 and on 31st December, 2006 Rs.6,50,000.

(6)


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NPO (6 MARKS QUESTION

NO.2)From the following extract of Receipts and Payments

Account of Sonic club and the given additional

information, show the Salaries items in the Incomeand Expenditure Account for the year ending 31st Dec.2006 and the Balance Sheet as on 31st December, 2005and 31st December, 2006. (6)

An Extract of Receipts and Payments Accountfor the year ending 31st December, 2006

Payments for salaries= for 2005(Rs. 20,000)+for2006(Rs. 2,80,000)+ for 2007(Rs. 18,000)


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Additional information for prev.

questionRs.

a) Salaries outstanding on 31.12.2005 25,000

b) Salaries outstanding on 31.12.2006 45,000c) Salaries paid in advance on 31.12.2005 10,000


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UNIT 2- ACCOUNTING FOR

PARTNERSHIP FIRMS(CURR)CURRICULUM

1. Nature of Partnership firm, Partnership Deed-

meaning, importance.2. Partners' Capital Accounts : Fixed vs. Fluctuating

Capital, Division of Profit among partners.

3. Profit and Loss Appropriation Account including past

adjustmentsMarks allotted= 5

Form of questions:- 1+4


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UNIT 2- PARTNERSHIP

ACCOUNTING (1 MARK QS)1 mark question is usually based on five points in the

Indian partnership act, 1932 regarding accounting

provisions applicable in case of non existence ofpartnership deed. This is numerical but the concept istheoretical. Otherwise it can ask any other questionbased on the syllabus. Usually full credit can be scored.


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UNIT 2(PARTNERSHIP

ACC)(ACTUAL 1 MARK QS)(a) Alka, Barkha and Charu are partners in a firm having

no partnership agreement. Alka, Barkha and Charu

contributed Rs. 2,00,000, Rs. 3,00,000 and Rs.1,00,000respectively. Alka and Barkha desire that the profitsshould be divided in the ratio of capital contribution.Charu does not agree to this. Is Charu correct? Givereasoning. (1)

(b) List two items that may appear on the Credit sideof a partners fixed capital account. (1)


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UNIT 2 PARTNERSHIP

ACCOUNTS(4 MARK QS)4 mark question is usually based on division of profit

among partners, profit and loss appropriation account

including past adjustments. The level of this questionis average. So adequate practice is to be given tostudents in these areas. Adjustments regardinginterest on drawings, interest on capital, salary payableto partner &/or multiple profit sharing ratios shouldbe included in this practice.


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UNIT 2 PARTNERSHIP ACC(4

MARKS ACTUAL QS)(SP1)A, B and C are partners in a firm. They have omitted

interest on capital @ 10% p.a. for three years ended 31st

March, 2007. Their fixed capitals on which interest wasto be calculated throughout were: A Rs. 1,00,000; BRs. 80,000; C Rs. 70,000(4)

y Give the necessary adjusting journal entry withworking notes.


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UNIT2 PARTNERSHIP ACC(4

MARK QUES)(SP 2)X, Y and Z are partners sharing profits and losses in the

ratio of 3:2:1. After the final accounts have been

prepared, it was discovered that interest on drawings@ 5% p.a. had not been taken into consideration. Thedrawings of the Partners were : XRs. 15,000; Y Rs.

12,600; Z Rs. 12,000.

Give the necessary adjusting journal entry.(4)


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UNIT 3 RECONSTITUTION OF

PARTNERSHIP FIRM( CURRICUL)1. Changes in Profit Sharing Ratio among the existing

partners-Sacrificing Ratio and Gaining Ratio.

2. Accounting for Revaluation of Assets and Liabilitiesand distribution of reserves (Accumulated Profits)

3. Goodwill: Nature, Factors affecting and methods ofvaluation: Average profit, Super profit and

Capitalization methods.


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PARTNERSHIP( CURR- CONT)4.Admission of a Partner: Effect of Admission of Partner,

Change in Profit Sharing Ratio, Accounting Treatment

for Goodwill (as per AS 10), Revaluation of Assets andLiabilities, Adjustment of Capitals.

5. Retirement/Death of a Partner: Change in ProfitSharing ratio, accounting treatment of Goodwill,

Revaluation of Assets and Liabilities, Adjustment ofCapitals.

6. Dissolution of a partnership firm.

Marks allotted= 20

Form of questions= 1+1+4+6+8


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PARTNERSHIP(1 MARK QS)One question of 1 mark requires a student to calculate

new profit sharing ratio, gaining ratio or sacrificingratio (any one of the three). If asked as a theoryquestion it can ask application if any of the ratiosmentioned above. The level of this question is easy. Sofull credit is expected from the child. The actualquestions are:-

(a)Give the formula for calculating gaining share of apartner in a partnership firm. (1)

(b) Give two circumstances in which sacrificing ratiomay be applied. (1)


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UNIT 3 RECONS. OF

PART.(1MARK QS)(CONT)One question of 1 mark can ask journal entry of goodwill

on admission or retirement of a partner. It can also be a

theoretical question based on goodwill or ratiocalculation. The level is easy and full credit is expectedof the student. The actual question is:

1. Pawan and Jayshree are partners. Bindu is admitted for

1/4th share. What is the ratio in which Pawan andJayshree will sacrifice their share in favour of Bindu?(1)

2. Name any two factors affecting goodwill of apartnership firm. ( 1)


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PARTNERSHIP(4 MARKS QS)The 4 marks question can be based on adjustment of

goodwill & other reserves as per accounting standard

10, calculation of goodwill with entry, theoreticalquestion on goodwill and methods to calculate thesame. The level can be difficult, average or easy basedon overall blue print of the question paper. Thereforegood will concept, methods of calculation, adjustmentas per accounting standard 10 and journal entriesshould be given conceptual clarity and good practice.


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PARTNERSHIP(4 MARKS QS)X, Y and Z were sharing profits and losses in the ratio of

5:3:2. They decided to share future profits and losses

in the ratio of 2:3:5 with effect from 1.4.2007. Theydecided to record the effect of the following, withoutaffecting their book values:-

(i ) Profit and Loss Account Rs. 24,000

(ii) Advertisement Suspense Account Rs. 12,000y Pass the necessary adjusting entry. (4)


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UNIT 3 RECONSTITUTITON OF

PARTNESHIP(4 MARKS QS CON)P, Q and R are partners sharing profits and losses in the

ratio of 5:3:2. From 1st January, 2006, they decide to

share profits and losses in equal proportion. Thepartnership deed provides that in the event of anychange in profit sharing ratio, the goodwill should bevalued at three years purchase of the average of fiveyears profits. The profits and losses of the precedingfive years are: Profits : 2001 - Rs. 60,000 2002 Rs.1,50,000 2003 - Rs. 1,70,000 2004 - Rs. 1,90,000. Loss :2005 - Rs. 70,000. Give the necessary journal entry torecord the above change. (4)


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PARTNERSHIP( 6 MARKS QUES.)The 6 marks question is usually from death of a partner

or dissolution of the partnership firm. The question

can involve calculation of amount payable to deceasedpartners executor after computing amount payable inrespect to share of profit, goodwill, interest on capital,interest on drawing, any part of accumulatedprofit/loss &/or profit or loss on revaluation etc. Thestudents can be expected to prepare deceased partnerscapital account and account to be rendered to theexecutors. The level of the question is usually average.


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UNIT 3 RECONSTITUTION OF P

ARTNERSHIP( 6 M QUES. CONT)Revaluation account can also be asked. Now dissolution

of the firm can also be a 6 mark question. In the

question on dissolution the memorandum balancesheet along with all the related accounts likeRealization account, Capital Accounts of the Partnersand Cash/Bank Account can also be asked. Journalentries can also be asked.


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UNIT 3 RECONST. OF PART.(6

MARK ACTUAL QUES(SP 1))Ram, Mohan and Sohan were partners sharing profits

and losses in the ratio of 5:3:2. On 31st March, 2006

their Balance Sheet was as under :-LIABILITIES AMT. (Rs.) ASSETS AMT.(Rs.)

Capitals(Rs.) Leasehold 1,25,000

Ram 1,50,000 Patents 30,000

Mohan

1,25,000

Machinery 1,50,000

Sohan 75,000 3,50,000 Stock 1,90,000

W.Comp.Res. 30,000 Cash at Bank 40,000

Creditors 1,55,000

5,35,000 5,35,000


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MARK QUES(SP 1 CONT)Sohan died on 1st August, 2006. It was agreed that :

(i) Goodwill of the firm is to be valued at Rs. 1,75,000.

(ii) Machinery be valued at Rs. 1,40,000; Patents at Rs.40,000; Leasehold at Rs. 1,50,000 on this date.

(iii) For the purpose of calculating Sohans share in theprofits of 2006-07, the profits should be taken to have

accrued on the same scale as in 2005-06, which wereRs. 75,000.

y Prepare Sohans Capital Account and Revaluation Account. (6)


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MARK. QUES(SP 2)A and B Share profits and losses in the ratio of 3:2. They

have decided to dissolve the firm. Assets and external

liabilities have been transferred to Realization A/c.Pass the journal entries to effect the following : a)BankLoan of Rs. 12,000 is paid off. b) A was to bear allexpenses of realization for which he is given acommission of Rs. 400/- c) Deferred Advertisement

Expenditure A/c appeared in the books at Rs. 28,000.

d) Stock worth Rs. 1,600 was taken over by B at Rs. 1,200.e) An unrecorded computer realized Rs. 7000.

f) There was an outstanding bill for repairs for Rs. 2000, which was aid off. (6)


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PARTNERSHIP(8 MARKS QUES)The 8 mark question is a choice between full f ledged

questions on admission or retirement of a partner or

Dissolution of the Firm (ANY TWO AS PER THEBLUE PRINT OF THE PAPER). The question usuallyinvolves preparation of revaluation account,Realization account partners capital accounts,memorandum balance sheet and balance sheet/cash

account(in case of dissolution). It can also ask thestudent to give journal entries. The level of thequestion is usually average. The child requires practicein all aspects of all these 3 chapters. Appropriate

practice in capital adjustment should also be given.


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UNIT 3 RECONSTITUTIONOF

PART. (8 M QUES(SP 1 ))(OP 1)L and M share profits of a business in the ratio of 5:3.

They admit N into the firm for a fourth share in the

profits to be contributed equally by L&M. On the dateof admission, the Balance Sheet of L&M is as follows :

Liabilities= Ls Capital(Rs. 30,000)+ Ms Capital(Rs.20,000)+ Reserve Fund (Rs. 4,000)+ Bank Loan (Rs.12,000) + Creditors (Rs. 2,000)= Rs. 68,000

Assets = Machinery (Rs. 26,000)+ Furniture (Rs.18,000)+ Stock (Rs. 10,000)+ Debtors (Rs.8,000)+Cash( Rs.6,000)= Rs 68,000


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UNIT 3 RECONSTITUTIONOF

PART. (8 M QUES(SP 1, OP 1, C)Terms of Ns admission were as follows :

(i) N will bring Rs. 25,000 as his capital. (ii) Goodwill of

the firm is to be valued at 4 years purchase of theaverage super profits of the last three years. Averageprofits of the last three years are Rs. 20,000; while thenormal profits that can be earned on the capitalemployed are Rs. 12,000. (iii) Furniture is to berevalued at Rs. 24,000 and the value of stock to bereduced by 20%. Prepare Revaluation Account,Partners Capital Accounts and the Balance Sheet ofthe firm after admission of N. (8)


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UNIT 3 RECONT. OF PART.(8 M

QUES, SP1 OP 2)Following is the Balance Sheet ofXand Y, who share

profits and losses in the ratio of 4:1, as at 31st March,2009 :

Liabilities= Sundry Creditors( Rs. 8,000)+ BankOverdraft (Rs.6,000)+ Xs Brother Loan(Rs. 8,000)+ YsLoan(Rs. 3,000)+Investment F.F.(Rs. 5,000)+ Cap.X(Rs.50,000)+Cap. Y (Rs.40,000)= Rs. 1,20,000

Assets= Bank (Rs.20,000)+(Drs. 17,000-Prov.2,000=15,000)+Stock(Rs.15,000)+Investment(Rs.25,000)+Bldg.(Rs.25,000)+G/W(Rs.10,000)+P/L A/c(Rs.10,000)= Rs. 1,20,000


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UNIT 3 RECONST. OF PART.(8 M

QUES. SP 1 OP 2 CONT)The firm was dissolved on the above date and the

following arrangements were decided upon :

(i)X

agreed to pay off his brothers Loan(ii) Debtors ofRs. 5,000 proved bad(iii) Other assets realized -Investments 20% less; and goodwill at 60% (iv) One ofthe creditors for Rs. 5,000 was paid only Rs. 3,000. (v)Buildings were auctioned for Rs. 30,000 and theauctioneers commission amounted to Rs. 1,000. (vi) Ytook over part of stock at Rs. 4,000 (being 20% lessthat the book value). Balance stock realized 50%. (vii)Realization expenses amounted to Rs. 2,000.Prepare

Realization, Bank and Partners Capital A/c(8)


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QUES. SP 2 OP 1)Rajat and Ravi are partners in a firm sharing profits and

losses in the ratio of 7:3. Their Balance Sheet as at 31stMarch, 2007 is as follows:

Liabilities= Creditors (Rs. 60,000)+Reserve(Rs.10,000)+Cap. Rajat(Rs.1,00,000)+ Cap.Ravi.(Rs. 80,000)= Rs. 2,50,000

Assets= Cash in hand(Rs.36,000)+ Cash atBank(Rs.90,000)+ Debtors (Rs. 44,000)+Stock (Rs.50,000)+ Furniture(Rs. 30,000)= Rs. 2,50,000


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QUES. SP2 OP1 (CONT)On 1st April, 2007, they admit Rohan on the following

terms : (i) Goodwill is valued at Rs. 40,000 and Rohanis to bring in the necessary amount in cash aspremium for goodwill and Rs. 60,000 as Capital for 1/4share in profits. (ii) Stock is to be reduced by 40% andfurniture is to be reduced to 40%.(iii) Capitals of thepartners shall be proportionate to their Profit Sharing

Ratio taking Rohans Capital as base. Adjustments ofCapitals to be made by cash.

Prepare Revaluation Account, Partners Capital Accountsand Cash Account. (8)


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QUES. SP 2 OP 2)The Balance Sheet ofX, Y and Z who were sharing profits

in the ratio of 5 : 3 : 2 as at March 31, 2007 :

Liabilities= Creditors (Rs. 50,000)+ Emp. P.F.(Rs.10,000)+ P/L A/c (Rs. 85,000)+Xs Cap.(Rs.40,000)+YsCap.(Rs.62,000)+Zs Cap.(Rs.33,000)= Rs. 2,80,000

Assets= Cash at Bank(Rs.40,000)+ Sundry

Drs.(Rs.1,00,000)+ Stock(Rs.80,000)+ Fixed Assets(Rs.60,000)= Rs. 2,80,000

Xretired on March 31, 2007 and Y and Z decided to shareprofits in future in the ratio of 2:3 respectively.


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QUES. OP 2 CONT.)The other terms on retirement were as follows :

(i )Goodwill of the firm is to be valued at Rs. 80,000.(ii)

Fixed Assets are to be valued at Rs. 57,500(iii) Makea provision for doubtful debts at 5% on debtors(iv)A liability for claim, included in creditors for Rs.10,000, is settled at Rs. 8000. The amount to be paidtoXby Y and Z in such a way that their Capitals areproportionate to their profit sharing ratio and leave abalance of Rs. 15,000 in the Bank Account.

Prepare Profit and Loss Adjustment Account andPartners Capital Accounts. (8)


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UNIT 4- ACC. FOR SHARES AND

DEBENTURES( CURRICULUM)1. Share Capital: Meaning and Types. 2.Accounting for

share capital: Issue and Allotment of Equity andPreference Shares; public subscription of shares : oversubscription and under subscription; issue at par,premium and at discount; calls in advance, calls inarrears, issue of shares for consideration other thancash. Meaning of Private placement of shares and

employee stock option plan.

3. Forfeiture of shares : accounting treatment, re-issue offorfeited shares. 4.Presentation of Share Capital incompanys Balance Sheet.


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UNIT 4 ACC FOR SHARES AND

DEB.(CURR) (CONT)5. Issue of debentures at par and at Premium ; Issue of

debentures as collateral security; issue of debenturesfor Consideration other than cash.

6. Redemption of debentures; sources : out of profits -debenture redemption reserve ; out of capital-methods: lump sum payment, draw by lots, purchase in theopen market and conversion (excluding cum-interestand ex-interest).

Marks allotted to unit 4= 25

Form of questions asked= 1+3+3+4+6+8


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UNIT 4 ACC. FOR SHARES AND

DEB. ( IMARK QS.)1 mark question is usually theoretical asking for any

concept like forfeiture of shares(sec78), issue of sharesat a discount(sec. 79) or any other aspect of this unitcan be asked. The student should be able to get fullcredit. The actual questions in the two sample papersare as under:-

(a) What is meant by Convertible debentures?(1)

(b) What is the nature of Interest on Debentures?(1)


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UNIT 4 ACC. FOR SH. AND

DEB.(3 MARKS QUES.)One 3 mark question is from issue / redemption of

debentures. Methods of redemption should bethoroughly practiced. The difficulty level is easy oraverage. The actual questions are:-

State the exceptions to the creation of DebentureRedemption Reserve as per SEBI Guidelines.(3)


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UNIT 4 ACC. FOR SH. & DEB.(3

MARKS QUES. CONT)Shubh Limited has the following balances appearing in

its Balance Sheet :

Rs.Securities Premium 22,00,000

9% Debentures 120,00,000

Underwriting Commission 10,00,000

The company decided to redeem its 9% Debentures at apremium of 10%. You are required to suggest the waysin which the company can utilize the securitiespremium amount.

(3)


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UNIT 4 ACC. FOR SH.& DEB.(4

MARKS QUES.)One 4 marks question again involves forfeiture/reissue

of shares or redemption of debentures. Usuallystudents find problem in these areas. So goodconceptual understanding and practice is required.The actual questions are as under:-

(a) Vinod Ltd. decided to redeem Rs. 50,000, 10%debentures. It purchased Rs. 40,000 debentures in theopen market at Rs. 97.50 each. The expenses being Rs.200 and redeemed the balance of Rs. 10,000debentures by draw of lots. Journalize. (4)


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MARKS QUES. CONT.)A company took a loan of Rs. 5,00,000 from State Bank

of India and issued 10% debentures of Rs. 8,00,000 ofRs. 100 each as a collateral security. Explain how willyou deal with issue of debentures in the books ofcompany. (4)


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MARKS QUES.)A 6 marks question from redemption of debentures

consists of various methods usually redemption byconversion or purchase in the open market. Variouscases in these methods should be practiced.


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MKS QUES(SP1 (3 MKS. PT1)Raghav Limited purchased a running business from

Krishna Traders for a sum of Rs. 15,00,000, payable Rs.3,00,000 by cheque and for the balance issued9%Debentures of Rs. 100 each at par. The assets andliabilities consisted of the following :

Plant and Machinery Rs. 4,00,000 ;Buildings Rs.6,00,000; Stock Rs. 5,00,000 ; Sundry Debtors Rs.3,00,000; Sundry Creditors Rs. 2,00,000

y Record necessary journal entries in the books ofRaghav Limited.


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UNIT 4 ACC. FOR SH.& DEB. (6

M QUES.SP1 3MKS.CONT)On 1st January, 2004, Rhythm Limited issued 1,000 10%

debentures of Rs. 500 each at par. Debentures areredeemable after 7 years. However, the company gavean option to deb. holders to get their debenturesconverted into eq. shares of Rs. 100 each at a premiumof Rs. 25 per share anytime after the expiry of one year.Shivansh, holder of 200 deb., informed on Jan. 1, 2006

that he wanted to exercise the option of conv. of deb.into equity shares. The company accepted his requestand converted deb. into equity shares. Pass necessaryjournal entries to record the issue of deb. on Jan.

1,2004 and conv. of deb. on Jan. 1, 2006.(3+3=6)


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M QUES. SP2)a) Alpha Ltd. has 5,000 8% Debentures of Rs. 100 each

due for redemption on March 31, 2007. Assume thatDebenture Redemption Reserve has a balance of Rs.1,90,000 on that date. Record the necessary entries atthe time of redemption of debentures.

(b) What journal entries should be made for the issue ofdebentures in the following cases: (i) XLimited issued30,000 12% Debentures of Rs. 100 each at par,redeemable at a premium of 5%. (ii) Y Limited issued50,000 12% Debentures of Rs 100 each at a premium of5%, redeemable at par.

(3+3=6)


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UNIT 4 ACC.FOR SH.& DEB.(8 M

QUES.)The 8 marks question consists of full f ledged question

on issue, forfeiture and reissue of shares. This usuallyconsists of oversubscription of shares and/or issue onpremium. The student should be given goodconceptual understanding of calculation of amountreceived on allotment, amount transferred fromapplication to allotment, refund of application money

for non allotment and amount transferred to capitalreserve. It has a choice also.


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MKS. QUES.)(SP 1 OP 1)Srijan Limited issued Rs. 10,00,000 new capital divided

into Rs. 100 shares at a premium of Rs. 20 per share,payable as under : On Application Rs. 10 per share; OnAllotment Rs. 40 per share (including premium of Rs.10 per share); On First and Final Call Balance. Over-payments on application were to be applied towardssums due on allotment and first and final call. Where

no allotment was made, money was to be refunded infull.


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MKS. QUES.)(SP 1 OP 1)(CONT)The issue was oversubscribed to the extent of 13,000

shares. Applicants for 12,000 shares were allotted only2,000 shares and applicants for 3,000 shares were sentletters of regret and application money was returnedto them. All the money due was duly received. GiveJournal Entries to record the above transactions(including cash transactions) in the books of the

company.(8)


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MKS. QUES.)(SP 1 OP2)Sangita Limited invited application for issuing 60,000

shares of Rs. 10 each at par. The amount was payable asfollows : On Application Rs. 2 per share; On AllotmentRs. 3 per share; On First and Final Call Rs. 5 per share;Applications were received for 92,000 shares.Allotment was made on the following basis : (i) Toapplicants for 40,000 shares Full ;(ii) To applicants

for 50,000 shares - 40%; (iii) To applicants for 2,000Shares Nil


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MKS. QUES.)(SP 1 OP2)(CONT)Rs. 1,08,000 was realized on account of allotment

(excluding the amount carried from applicationmoney) and Rs. 2,50,000 on account of call. Thedirectors decided to forfeit shares of those applicantsto whom full allotment was made and on whichallotment money was overdue.

y Pass journal entries in the books of Sangita Limited torecord the above transactions. (8)


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UNIT 4 ACC. FOR SH.& DEB. (8

MKS QUES. SP 2 OP 1)Metallic Ltd. invited applications for 40,000 equity

shares of Rs. 50 each issued at a premium of Rs. 10 pershare. The amount was payable as follows : Onapplication and allotment Rs. 20 per share. Balance(including premium)- on first and final call.Applications for 70,000 shares were receivedApplications for 20,000 shares were rejected and pro-

rata allotment was made to the remaining applicants.First and final call was made and duly received excepton 400 shares allotted to Nitesh and his shares wereforfeited. Journalise the above transactions.

(8)


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MKS. QUES.SP 2 OP 2)Arti Limited invited applications for issuing 80,000

shares of Rs. 10 each at a premium of Rs. 4 per share.The amount was payable as follows

On Application - Rs. 5 per share

On Allotment - Rs. 9 per share

(Including Premium)

Applications were received for 1,40,000 shares.


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MKS. QUES.SP 2 OP 2)(CONT)Allotment was made on the following basis :

(i) To applicants for 80,000 shares - 60,000 shares

(ii) To applicants for 60,000 shares - 20,000 sharesMoney overpaid on applications was utilized towards

sum due on allotment. Rajiv, belonging to category(i),/had applied for 1,200 Shares failed to pay his dues

and his shares were forfeited.y Pass journal entries in the books of Arti Limited

to record the above transactions. (8)


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UNIT 5 ANALYSIS OF FINANCIAL

STATEMENTS(CURR)1. Financial Statements of a Company: preparation of

simple balance sheet of a company inthe prescribedform with major headings only.

2. Financial Statement Analysis: meaning, significance,limitations,

3.Tools for Financial Statement Analysis: Comparative

Statements, Common Size Statements,4.Accounting Ratios: meaning and objectives, types ofratios:


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UNIT 5 ANALYSIS OF FINANCIAL

STATEMENTS(CURR CONT.)Liquidity Ratios: Current Ratio, Liquid Ratio Solvency

Ratios: Debt to Equity, Total Assets to Debt,Proprietary Ratio Activity Ratios: Inventory Turnover,Debtors Turnover, Payables Turnover, Working CapitalTurnover, Fixed Assets Turnover Profitability Ratio:Gross Profit, Operating, Net Profit, Return onInvestment, Earning Per Share, Dividend per Share,

Price Earnings RatioMarks allotted= 12

Form of questions= 1+3+4+4


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UNIT 5 ANALYSIS OF FIN.

STAT.(1 MARK QS)The one mark question is usually a theoretical question

asked on any aspect of meaning, advantages,limitations and stakeholders interest in financialstatements. It can be easily answered by the studentswith some working knowledge of the topic.Application of ratios analysis is also covered in this.


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UNIT 5 ANALY. OF FIN. STAT.(1

MARK QS.CONT.)(a) XLtd. has a Debt Equity Ratio at 3 : 1. According to

the management it should be maintained at 1:1.What are the two choices to do so?(1)

(b) Assuming that the Debt - Equity Ratio is 1:2, stategiving reason, whether the ratio will improve, declineor will have no change in case equity shares areissued for cash. (1)


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UNIT 5 ANALY. OF FIN. STAT.(3

MARKS QS.)y The 3 mark question usually consists of preparation of

common size statement or comparative incomestatement. It can also be a theoretical question onbalance sheet of schedule VI. Appropriate practice canbe given to students.


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UNIT 5 ANALY. OF FIN.STAT.(3

MARK QS.)(a) Show the major headings into which the liabilities

side of a Companys Balance Sheet is

organized and presented as per Schedule VI Part I of theCompanies Act, 1956. (3)

(b) Show the major headings into which the assets side

of companys Balance Sheet isorganized and presented as per Schedule VI Part I of the

Companies Act, 1956. (3)


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UNIT 5 ANAY. OF FIN. STAT.(4

MARKS QUES.)One 4 marks question is for preparation of comparative

income statement or common size statement . Thechildren can score full marks if they know the formatand simple calculation. Some difficult questions basedon missing figures can also be asked. Appropriatepractice is required.


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MARKS QUES.)(CONT)Prepare a Comparative Income Statement with the help

of the following information : (4)

Particulars 2006 2007Sales Rs. 20,00,000 Rs. 30,00,000

Gross Profit 40% 30%

Indirect Expenses 50% of G.P. 40% of G.P.

Income Tax 50% 50%


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MARKS QUES.)(CONT)(SP 2)Prepare the Common Size Income Statement from the

following information : (4)

Particulars 31/3/2006 31/3/2007Net Sales Rs. 1,00,000 Rs. 1,00,000

Cost of G.S. 70% of Sales 74.8% of Sales

Operating Exp. Rs 8,000 Rs. 9,800

Income Tax rate 50% 50%


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MARKS QUES.)One 4 marks question is from ratio- analysis. The

children can score full marks if they know the formulaetc. Some difficult questions based on missing figurescan also be asked. Appropriate practice is required.


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MARKS QUES.)(ratio analy.)Following is the Balance Sheet ofXLtd. as on 31st

March, 2008 : Liabilities= B/P(Rs. 10,00,000)+Creditors(Rs.15,00,000)+10%L.T.Loan(Rs.10,00,000)+P/L A/c (Rs.5,00,000)+ Res.(Rs. 5,00,000)+ ShareCapital(Rs. 10,00,000)= Rs. 55,00,000.

Assets=Cash(Rs.1,00,000)+B/R(Rs.4,00,000)+Drs.(Rs.20,00,000)+Stock(Rs.9,00,000)+Invest.(Rs.1,00,000)+Fixe

d Assets(net)(Rs.20,00,000)= Rs.55,00,000 Theexisting liquid ratio stands at 1:1. A liability of Rs.4,00,000 under dispute has to be paid immediately asper High Court Order. Show the effect of this order on

Liquid Ratio and Current Ratio as on 31st March 08.(4)


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MARKS QUES.)(ratio analy.)SP2A companys Stock Turnover is 5 times. Stock at the end

is Rs. 20,000 more than that at the beginning. Sales areRs. 8,00,000. Rate of Gross Profit on cost 1/4; CurrentLiabilities Rs. 2,40,000. Acid Test Ratio 0.75. CalculateCurrent Ratio.(4)


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UNIT 6 CASH FLOW

STATEMENT(CURR)Cash Flow Statement: Meaning and objectives,

preparation, adjustments related to depreciation,dividend and tax, sale and purchase of non-currentassets (as per revised standard issued by ICAI)

Marks allotted= 8

Forms of questions asked= 1+1+6


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UNIT 6 CASH FLOW

STATEMENT(1 MARK QS)The two one mark questions usually consist of asking

some easy theoretical questions like definitions,meaning or examples. Applied aspects can also becovered. Sound theoretical and practical foundationswill easily help the students to score marks in these 2questions. Some types of questions that can be askedinclude identifying the three types of activities i.e.

Operating, financing and investing activities. It canalso cover short questions on calculation ofsource/application of cash.


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UNIT 6 CASH FLOW

STATEMENT(1 MARK QS)a) State whether cash deposited in bank will result in

inflow, outflow or no flow of cash. (1)

(b) Interest received by a finance company is classifiedunder which kind of activity while preparing a cashflow statement ? (1)

(c ) Mention the net amount of Source or Use of cashwhen a fixed asset (having book value of Rs. 15,000) issold at a loss of Rs. 5,000. (1)d) Dividend paid by a trading company is classifiedunder which kind of activity while preparing cash flowstatement. (1)


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UNIT 6 CASH FLOW

STATEMENT(6 MARK QS)The 6 marks question can be a fully fledged question

based on preparation of cash f low statement withadjustments regarding sale of asset, depreciation or

taxation etc. It can also consist of calculating any oneof the type of cash f low due to operating, investing orfinancing activities. The children can get good marksin this with adequate practice.


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You can mail your queries to [email protected]


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OVERALL COMMENTSThe sample papers in accountancy 2009 has changed

weight age to some topics due to introduction of newtopic Dissolution of Partnership firm. Also the level

of the questions has gone up slightly with applicationbased questions being asked in more numbers andmarks. So the teachers of accountancy have to workmore hard to ensure good result. This can only happen

if they can create a real interest in the children for thesubject by using innovative methods and also keepthemselves updated.

Analysis of Accountancy Sample Papers (2009-10)

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