Class XII Accountancy Minimum Learning Problems-Short Answer Type

SLIP TEST

SNO Problem Model M

1 Verma and Kaul are partners in a firm. The partnership agreement provides that interest on drawings 3
should be charged @ 6% p.a. Verma withdraws Rs. 2,000 per month starting from April 01, 2006 to
March 31, 2007. Kaul withdrew Rs, 3,000 per quarter, starting from April 01, 2006. Calculate interest on
partner's drawings.
2 On March 31, 2006 after the close of accounts, the capitals of Mountain, Hill and Rock stood in the 3
books of the firm at Rs 4,00,000, Rs3,00,000 and Rs 2,00,000, respectively. Subsequently, it was
discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted
to Rs 1,50,000 and the partner's drawings had been Mountain: Rs 20,000, Hill Rs 15,000 and Rock Rs
10,000. Calculate interest on capital
3 (A)Ram, Raj and George are partners sharing profits in the ratio 5 : 4
3 : 2. According to the partnership agreement George is to get a
minimum amount of Rs 10,000 as his share of profits every year. The
net profit for the year 2006 amounted to Rs 40,000. Prepare the
Profit and Loss Appropriation Account
(B) Radha, Mary and Fatima are partners sharing profits in the ratio of 5:4:1. Fatima is given a
guarantee that her share of profit, in any year will not be less than Rs 5,000. The profits for the year
ending March 31, 2006 amounts to Rs 35,000. Shortfall if any, in the profits guaranteed to Fatima is to
be borne by Radha and Mary in the ratio of 3:2. Record necessary journal entry to show distribution of
profit among partner.
4 (A)A business earned average profits of Rs. 1,00,000 during the last few years. The normal rate of return 3
in similar type of business is 10%. The assets of the business were Rs. 10,00,000 and external liabilities
was Rs. 1,80,000. Calculate the value of goodwill of the firm by super profit method, if the goodwill is
valued at 2 ½ years' purchase of super profits.

(B) A business has earned average profits of Rs. 1,00,000 during the last few years and the normal
rate of return in similar business is 10%. Find out the value of Goodwill by
(i) Capitalisation of super profit method and
(ii) Super profit method if the goodwill is valued at 3 years purchase of super profit.
The assets of the business were Rs. 10,00,000 and its external liabilities Rs. 1,80,000.
5 (A)P and Q are partners sharing profits in 2:1 ratio. They admitted R 1
into partnership giving him 1/5 share which he acquired from P and
Q in 1:2 ratio. Calculate new profit sharing ratio?

(B) Radha and Rukmani are partners in a firm sharing profits in 3:2
ratio. They admitted Gopi as a new partner. Radha surrendered 1/3
of her share in favour of Gopi and Rukmani surrendered 1/4 of her
share in favour of Gopi. Calculate new profit sharing ratio?
(C) Rao and Swami are partners in a firm sharing profits and losses
in 3:2 ratio. They admit Ravi as a new partner for 1/8 share in the
profits. The new profit sharing ratio between Rao and Swami is 4:3.
Calculate new profit sharing ratio and sacrificing ratio?
6 (A) A. B and C shared profit and losses in the ratio of 3:2:1 respectively. With effect from 1st April, 2016, 3
they agreed to share profit equally. The goodwill of the firm was valued at Rs.18,000. Pass necessary
journal entry.
(B)X. Y and Z are partners sharing profits and losses in the ratio of 5:3:2, decided to share future profits
and losses equally with effect from 1st April, 2016. On that date, the goodwill appeared in the books at
Rs.12,000. But it was revalued at Rs.30,000. Pass Journal entries assuming that no goodwill will appear
the books of accounts.
(C) X and Y are partners sharing profits in the ratio of 2:1. On 31st March. 2016, their Balance Sheet shot
General Reserve of Rs.60,000. It was decided that in future they will share profits and losses in the ratio
of 3:2. Pass necessary Journal entry in each of the following alternative cases:
(i) If they do not want to show General Reserve in the new Balance Sheet.
(ii) If they want to show General Reserve in the new Balance Sheet.
(D) X, Y and Z are sharing profits and losses in the ratio of 5:3:2. They decide to share future profits and
losses in the ratio of 2:3:5 with effect from 1st April, 2016. They also decide to record the effect of the
following accumulated profits, losses and reserves without affecting their book figures by passing a
single entry.
General Reserve 6,000
Profit and Loss A/c (Credit) 24,000
Advertisement Suspense A/c 12,000
Pass necessary Single Adjustment Entry.
 (E) X, Y and Z who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future
profits and losses in the ratio of 2:3:5. Give the Journal entry to distribute Workmen Compensation
Reserve' of Rs.1,20,000 at the time of change in profit-sharing ratio, when there is a claim of Rs.80,000
against it.
7 Arti and Bharti are partners in a firm sharing profits in 3:2 ratio, They admitted Sarthi for 1/4 share in 4
the profits of the firm. Sarthi brings Rs. 50,000 for his capital and Rs. 10,000 for his 1/4 share of
goodwill. Goodwill already appears in the books of Arti and Bharti at Rs. 5,000. the new profit sharing
ratio between Arti, Bharti and Sarthi will be 2:1:1. Record the necessary journal entries in the books of
the new firm?
8 Sangeeta, Saroj and Shanti are partners sharing profits in the ratio of 2:3:5. Goodwill is appearing in 4
the books at a value of Rs 60,000. Sangeeta retires and goodwill is valued at Rs 90,000. Saroj and
Shanti decided to share future profits equally. Record necessary Journal entries.
9 X, Y & Z are partners in a firm sharing profits in the ratio of 3:2:1. On April 1st 2009, X retires 3
from the firm, Y and Z agree that the capital of the new firm shall be fixed at Rs. 2,10,000 in the
profit sharing ratio. The Capital Accounts of Y and Z after all adjustments on the date of
retirement showed balances of Rs. 1,45,000 and Rs. 63,000.respectively.
State the amount of actual cash to be brought in or to be paid to the partners. And also Pass
necessary Journal entries.
10 What journal entries would be recorded for the following transactions on the dissolution of a firm 4
after various assets (other than cash) on the third party liabilities have been transferred to
Reliasation Account.
1. Arti took over the Stock worth Rs 80,000 at Rs 68,000.
2. There was unrecorded Bike of Rs 40,000 which was taken over By Mr. Karim.
3. The firm paid Rs 40,000 as compensation to employees.
4. Sundry creditors amounting to Rs 36,000 were settled at a discount of 15%.
5. Loss on Realisation Rs 42,000 was to be distributed between Arti and Karim in the ratio of 3:4.
11 (A) 150 shares of Rs 10 each issued at a premium of Rs 4 per share payable with allotment were 3
forfeited for non-payment of allotment money of Rs 8 per share including premium. The first and final
call of Rs 4 per share were not made. The forfeited share were reissued at Rs 15 per share fully paid-up.
(B) X Ltd. forfeited 100 shares of Rs.10 each (Rs.8 called-up) Issued at a premium of Rs.2 per share to Mr.
R, on which he had paid application money of Rs.5 per share, for non-payment of allotment money of
Rs.5 per share (including premium). Out of these, 70 shares were reissued to Mr.Sanjay as Rs.8 called-up
for Rs.7 per share. Give necessary Journal entries relating to forfeiture and reissue of shares
(C) V K Limited purchased machinery from Modern Equipment Manufacturers Limited. The company
paid the vendors by issue of some equity shares and debentures and the balance through an acceptance
in their favour payable after three months. The accountant of the company, while Journalising the above
mentioned transactions, left some items blank. You are required to fill in the blanks.3
V K Limited
Journal

12 Jain Ltd. purchased machinery costing Rs.10,00,000 from Ayer Ltd. 50% of the payment was made by 3
cheque and for the remaining 50%, the company issued Equity Shares of Rs.100 each at a premium of
25%. Pass necessary Journal entries in the books of Jain Ltd. for the above transactions.
13 Sagar Ltd was registered with an authorised capital of Rs 1,00,00,000 divided into Rs 1,00,000 equity 4
shares of Rs 100 each. The company offered for public subscription 60,000 equity shares. Applications
for 56,000 equity shares were received and allotment was made to all the applicants. All calls were made
and were duly received except the second and final call of Rs 20 per share on 700 shares. Prepare the
balance sheet of the company showing the different types of share capital
14 Star Automobiles Ltd. took over assets of Rs. 2,35,000 and liabilities of Rs. 40,000 of Ashoka Automobiles 3
Ltd. for the purchase consideration of Rs. 2,20,000. Purchase consideration was payable by issuing
debentures of Rs. 100 at 10% premium. Give journal entries in the books of Star Automobiles Ltd.
15 The proprietary ratio of M. Ltd. is 0·80 : 1. State with reasons whether the following transactions 4
will increase, decrease or not change the proprietary ratio :
(i) Obtained a loan from bank Rs. 2,00,000 payable after five years.
(ii) Purchased machinery for cash Rs. 75,000.
(iii) Redeemed 5% redeemable preference shares Rs. 1,00,000.
(iv) Issued equity shares to the vendors of machinery purchased for Rs. 4,00,000.
16 (a) Net profit after interest and tax Rs. 1,00,000; Current assets Rs. 4,00,000; Current liabilities 4
Rs. 2,00,000; Tax rate 20%; Fixed assets Rs. 6,00,000; 10% Long term debt Rs. 4,30,000.
Calculate Return on Investment.
(b) Rate of Gross profit on cost of a company is 25%. Its Gross profit is Rs. 5,00,000. Its shareholders’
Funds are Rs. 12,00,000; Current liabilities are Rs. 5,00,000 and Current Assets are Rs. 10,00,000.
Calculate its Working Capital Turnover ratio.
17 (a)Kartik Mutuals, a mutual fund company, provides you the following information: 1
31st March 2013 31st March 2014
Proposed Dividend 20,000 15,000
Additional Information:
Equity Share Capital raised during the year 3,00,000
10% bank loan repaid was 1,00,000
Dividend received during the year was 20,000
Find out the cash flow from financing activities.
(b)