CBSE Class 12 Accountancy — Long Answer Questions

Ravneet and Manmeet were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2025, their Balance Sheet was as follows : Balance Sheet of Ravneet and Manmeet as on 31st March, 2025 | Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | |---|---|---|---| | Creditors | 4,50,000 | Cash at Bank | 2,50,000 | | Capitals : | | Stock | 2,50,000 | | Ravneet 5,00,000 | | Debtors | 2,00,000 | | Manmeet 3,00,000 | 8,00,000 | Plant & Machinery | 5,50,000 | | | 12,50,000 | | 12,50,000 | On the above date, the firm was dissolved. The plant and machinery was sold at Rs. 4,87,000 and stock at 20% less than the book value. Debtors realised Rs. 1,40,000. Ravneet agreed to bear all realisation expenses for which he was allowed a commission of Rs. 9,000. Actual realisation expenses amounted to Rs. 7,500. Prepare Realisation Account and Partners' Capital Accounts.

(a) Generic Pharma Ltd. invited applications for using 3,00,000 equity shares of Rs. 10 each at a premium of Rs. 6 per share. The amount was payable as follows : on Application and Allotment - Rs. 4 per share (including premium of Rs. 2 per share) on First and Final Call - Balance Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and the application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received on applications was adjusted towards sums due on first and final call. Jain, an applicant for 3,600 shares failed to pay the first and final call. His shares were forfeited. Pass necessary journal entries in the books of Generic Pharma Ltd. for the above transactions. Open 'calls in arrears account' and 'calls in advance account', wherever necessary. OR (b) Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases : (i) Diksha Ltd. forfeited 3,000 shares of Rs. 10 each for non-payment of final call of Rs. 2 per share. Out of these, 600 shares were reissued as fully paid up in such a way that Rs. 4,200 was transferred to capital reserve. (ii) Ashoka Ltd. forfeited 2,000 equity shares of Rs. 100 each issued at a premium of 10% for non-payment of allotment money of Rs. 60 per share (including premium). The first and final call of Rs. 20 per share was not yet made. The forfeited shares were re-issued at Rs. 70 per share fully paid up. (3 + 3 = 6)

(a) Sanjay and Vijay were partners in a firm sharing profits and losses in the ratio of 4 : 3. On 1st April, 2025 they admitted Babul as a new partner for 2/5th share in the profits of the firm. On Babul's admission, the following was agreed upon : (i) The new profit sharing ratio of Sanjay, Vijay and Babul will be 3 : 3 : 4. (ii) The goodwill of the firm will be valued at four years purchase of the average profits of the last three years. The profits of the previous three years were : | Year | Profit (Rs.) | | --- | --- | | 2022-23 | 16,500 | | 2023-24 | 17,500 | | 2024-25 | 18,500 | (iii) Babul will bring his share of goodwill premium in cash, half of which will be withdrawn by Sanjay and Vijay. (iv) On Babul's admission, revaluation of assets and reassessment of liabilities resulted in a loss of Rs. 70,000. (v) At the time of Babul's admission, the firm had a General Reserve of Rs. 28,000. (vi) After making necessary adjustments relating to goodwill, loss on revaluation and general reserve, the capital accounts of Sanjay and Vijay showed balances of Rs. 3,50,000 and Rs. 2,50,000 respectively. Babul brought proportionate capital for his 2/5th share in the profits of the firm. Showing your workings clearly pass necessary journal entries for the above transactions in the books of the firm on Babul's admission. OR (b) Anuj, Divij and Shilpa were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their Balance Sheet as at 31st March, 2023 was as follows : Balance Sheet of Anuj, Divij and Shilpa as at 31st March, 2023 | Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | | --- | --- | --- | --- | | Capitals : | | Land & Building | 8,00,000 | | Anuj 3,00,000 | | Furniture | 2,40,000 | | Divij 4,00,000 | | Stock | 1,20,000 | | Shilpa 5,00,000 | 12,00,000 | Debtors | 1,70,000 | | Bills Payable | 60,000 | Cash | 50,000 | | Creditors | 1,20,000 | | | | | 13,80,000 | | 13,80,000 | Anuj retired on the above date on the following terms : (i) Anuj's share of goodwill was valued at Rs. 90,000 and the same was to be treated without opening goodwill account. (ii) Revaluation of assets and reassessment of liabilities resulted in a gain of Rs. 25,000. (iii) Amount due to Anuj was transferred to his loan account, to be paid in two equal yearly instalments plus interest @ 12% p.a. on the unpaid balance starting from 31st March, 2024. Prepare Partners' Capital Accounts and Anuj's Loan Account till it is fully discharged.

For the year ended 31st March 2025, Sona Ltd. made a profit of Rs. 4,00,000 after charging depreciation of Rs. 75,000 on fixed assets and a transfer of Rs. 1,50,000 to general reserve. Goodwill written off during the year was Rs. 80,000. The company sold machinery of the book value of Rs. 90,000 at Rs. 95,000. During the year, trade receivables increased by Rs. 40,000 and trade payables increased by Rs. 30,000. Prepaid expenses increased by Rs. 2,000 and outstanding wages decreased by Rs. 20,000. Calculate cash flows from operating activities.