CBSE Class 12 Accountancy — NCERT Solutions

From the chapter:

• If the deed is silent, salary is not allowed to a partner.
• If the deed is silent, interest on partner’s loan is allowed at 6% p.a., so 10% is not valid.
• If the deed is silent, profits are shared equally, not in proportion to capitals.
• If the deed is silent, interest on capital is not allowed.

So the claims are: (i) Invalid, (ii) Invalid, (iii) Valid, (iv) Invalid.

Using the chapter’s provisions:

• A valid partnership can exist without a written agreement → True.
• Each partner is principal and agent for the others under mutual agency → True.
• Maximum number of partners is 50 → True.
• Settlement of disputes can be part of the partnership deed, so the statement says it can't, which is wrong → False.
• If the deed is silent, no interest on drawings is charged, so 6% is wrong → False.
• If the deed is silent, interest on partner’s loan is 6% p.a., not 12% → False.

Using the combined Share Application and Allotment Account, the entries are made for receipt of application money, transfer of application money to share capital, allotment amount due and received, and then the two calls.

Working:

• Shares offered = 3,000
• Face value per share = Rs. 10
• Application = Rs. 3 per share
• Allotment = Rs. 2 per share
• First call = Rs. 2.50 per share
• Second and final call = Rs. 2.50 per share

Total amounts:

• Application money = $3{,}000 \times 3 = Rs.\,9{,}000$
• Allotment money = $3{,}000 \times 2 = Rs.\,6{,}000$
• First call money = $3{,}000 \times 2.5 = Rs.\,7{,}500$
• Second and final call money = $3{,}000 \times 2.5 = Rs.\,7{,}500$

Since all amounts are duly received, no calls in arrears or advance arise.

Journal entries:

1. For receipt of application and allotment money

• Bank A/c Dr. $9,000$
• To Share Application and Allotment A/c $9,000$

2. For transfer of application money and allotment amount due

• Share Application and Allotment A/c Dr. $9,000$
• To Share Capital A/c $9,000$

• Share Application and Allotment A/c Dr. $6,000$
• To Share Capital A/c $6,000$

3. For receipt of allotment money

• Bank A/c Dr. $6,000$
• To Share Application and Allotment A/c $6,000$

4. For first call due

• Share First Call A/c Dr. $7,500$
• To Share Capital A/c $7,500$

5. For receipt of first call money

• Bank A/c Dr. $7,500$
• To Share First Call A/c $7,500$

6. For second and final call due

• Share Second and Final Call A/c Dr. $7,500$
• To Share Capital A/c $7,500$

7. For receipt of second and final call money

• Bank A/c Dr. $7,500$
• To Share Second and Final Call A/c $7,500$

Total share capital collected = $3{,}000 \times 10 = Rs.\,30{,}000$

Note: The question refers to the combined account for application and allotment, so the first two stages are recorded through that combined account, exactly as shown in the chapter’s method.

From the chapter:

• Authorised share capital is the capital the company is authorised to issue.
• Issued share capital is the part of authorised capital actually issued to the public, including shares allotted to vendors and signatories.
• Subscribed capital is the part of issued capital actually subscribed by the public.

Given

• Authorised capital = Rs. 25,00,000 divided into 2,50,000 shares of Rs.10 each.
• Shares issued to public = 2,00,000 shares.
• Applications received and shares allotted = 1,80,000 shares.
• Promoters subscribed = 25,000 shares.

Calculation

Authorised Share Capital

• 2,50,000 × Rs.10 = Rs. 25,00,000

Issued Share Capital

• Public issue: 2,00,000 shares
• Promoters: 25,000 shares
• Total issued = 2,25,000 shares
• 2,25,000 × Rs.10 = Rs. 22,50,000

Subscribed Share Capital

• Public subscribed = 1,80,000 shares
• Promoters subscribed = 25,000 shares
• Total subscribed = 2,05,000 shares
• 2,05,000 × Rs.10 = Rs. 20,50,000

So the figures are:

• Authorised Share Capital = Rs. 25,00,000
• Issued Share Capital = Rs. 22,50,000
• Subscribed Share Capital = Rs. 20,50,000

The chapter states that the components of a Computerised Accounting System are Data, People, Procedure, Hardware and Software. So the correct option is (b).

A Computerised Accounting System refers to processing accounting transactions through computer and producing records and reports. That matches option (b).

C’s share = $\frac{1}{4} = \frac{4}{16}$.

Remaining share for A and B = $1 - \frac{1}{4} = \frac{3}{4} = \frac{12}{16}$.

Old ratio of A:B = 3:1, so they share the remaining $\frac{12}{16}$ in the ratio 3:1.

• A’s share = $\frac{3}{4} \times \frac{3}{4} = \frac{9}{16}$
• B’s share = $\frac{3}{4} \times \frac{1}{4} = \frac{3}{16}$
• C’s share = $\frac{4}{16}$

So the new ratio is $9:3:4$. The printed options do not show this exact ratio; the book’s illustration, however, gives the method. Among the given options, none matches the correct ratio exactly.

A debenture is a written instrument acknowledging a debt under the common seal of the company. It contains a contract for repayment of principal after a specified period and for payment of interest at a fixed rate.

In Excel 2007, the book says to click the Microsoft Office Button to get started.

A partner can retire from a firm in these ways:

1. With the consent of all the other partners.
2. In accordance with an express agreement among the partners.
3. By giving notice in writing, if the partnership is at will.

Financial statements are the basic and formal annual reports through which a company communicates its financial information to its owners and other external parties such as investors, tax authorities, government and employees. They mainly include the balance sheet, statement of profit and loss, and cash flow statement.

In the PMT-related financial functions, the rate means the interest for a period.

The chapter states that dissolution of partnership only changes the relationship among partners, while dissolution of firm ends the business completely. So they are different.

Analysis simply means simplifying data.

To change a chart's location, the correct command is Move here.

The chapter says financial reporting is meant to provide financial information to meet the information needs of decision-makers. It is not only for managers.

A cash flow statement is the financial statement that shows the inflows and outflows of cash and cash equivalents during a particular period.