CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner VBQ

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VBQ for Class 12 Accountancy Part 1 Chapter 3 Reconstitution of a Partnership Firm Admission of a Partner

Class 12 Accountancy students should refer to the following value based questions with answers for Part 1 Chapter 3 Reconstitution of a Partnership Firm Admission of a Partner in Class 12. These VBQ questions with answers for Class 12 Accountancy will come in exams and help you to score good marks

Part 1 Chapter 3 Reconstitution of a Partnership Firm Admission of a Partner VBQ Questions Class 12 Accountancy with Answers

Multiple Choice Questions/Objective type Questions:

Question. Sacrificing ratio is used to distribute --------------------- in case of admission of a partner.
(a) Goodwill
(b) Revaluation Profit or Loss
(c) Profit and Loss Account (Credit Balance)
(d) Both b and c
Answer : A

Question. If at the time of admission if there is some unrecorded liability, it will be to -- Account.
(a) Debited, Revaluation
(b) Credited, Revaluation
(c) Debited, Goodwill
(d) Credited, Partners’ Capital
Answer : A

Question. Which of the following is not true with respect to Admission of a partner?
(a) A new partner can be admitted if it is agreed in the partnership deed.
(b) If all the partners agree, a new partner can be admitted.
(c) A new partner has to bring relatively higher capital as compared to the existing partners
(d) A new partner gets right in the assets of the firm
Answer : C

Question. At the time of admission of a new partner, the balance of Workmen Compensation Reserve will be transferred to:
(a) Old partners in the old profit sharing ratio
(b) Sacrificing partners in the sacrificing ratio
(c) Revaluation Account
(d) All partners in the new profit sharing ratio
Answer : A

Question. Heena and Sudha share Profit & Loss equally. Their capitals were Rs.1,20,000 and Rs. 80,000 respec-tively. There was also a balance of Rs. 60,000 in General reserve and revaluation gain amounted to Rs. 15,000. They admit friend Teena with 1/5 share. Teena brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.
(a) Rs.85,000
(b) Rs.1,00,000
(c) Rs.20,000
(d) None of the above
Answer : A

Question. The firm of P, Q and R with profit sharing ratio of 6:3:1, had the balance in General Reserve Account amounting Rs. 1,80,000. S joined as a new partner and the new profit sharing ratio was decided to be 3:3:3:1. Partners decide to keep the General Reserve unchanged in the books of accounts. The effect will be:
(a) P will be credited by Rs. 54,000
(b) P will be debited by Rs. 54,000
(c) P will be credited by Rs. 36.000
(d) P will be credited by Rs. 36,000
Answer : A

Question. Sacrificing ratio is calculated because:
(a) Profit shown by Revaluation Account can be credited to sacrificing partners
(b) Goodwill brought in by the incoming partner can be credited to the new partner
(c) Goodwill brought in by the incoming partner can be credited to the sacrificing partners
(d) Both a and c
Answer : C


Question. The average profits for last 5 years of a firm are Rs. 20,000 and goodwill has been worked out Rs. 24,000 calculated at 3 years purchase of super profits. Calculate the amount of capital employed assuming the normal rate of interest is 8 %.
Answer : (i) Super profit = value of goodwill/ number of years purchase
                                       = 240000/3
                                       = 80000
(ii) Normal Profit = Average profit – Super profit
                         = 20000 – 8000
                        = Rs. 12000
(iii) Capital Employee = Normal Profit X 100/ Normal rate of return
                                = 12000 X 100/8
                               = 150000

Question. 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, 2002. They also decide to record the effect of the reserves without affecting their book figures, by passing a single adjusting entry.
                                                                          Book Figure
General Reserve                                                 Rs. 40,000
Profit 2 loss A/C (Cr)                                         Rs. 10,000
Advertisement Suspense A/C(Dr)                     Rs. 20,000
Pass the necessary single adjusting entry.
Answer :

CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment_3

Question. A and B are partners sharing profits in the ratio of 3:2. Their books showed goodwill at Rs. 2000. C is admitted with 1/4th share of profits and brings Rs. 10,000 as his capital but is not able to bring in cash goodwill Rs. 3000. Give necessary Journal entries.
Answer : Cash A/C                                         Dr. 10000
To C’s capital A/C                                                            10000
(Cash brought in by C for his share of capital)

A’s capital A/C                                               Dr. 1200
B’s Capital A/C                                               Dr. 800
To goodwill A/C                                                              2000
(Old goodwill written off among old partners in old ratio.)

C’s capital A/C                                              Dr. 3000
To A’s capital A/C                                                           1800
To B’s capital A/C                                                           1200
(Adjustment of goodwill on admission of C)

Question. Rahul and Sahil are partners sharing profits together in the ratio of 4:3. They admit Kamal as a new partner. Rahul surrenders 1/4th of his share and Sahil surrenders 1/3rd of his share in favour of Kamal. Calculate the new profit sharing ratio.
Answer : Rahul’s sacrificing share    = 4/7 X 1/4   = 1/7
Sahil’s sacrificing share                    = 3/7 X 1/3   = 1/7
Rahul’s new share                           = 4/7 – 1/7   = 3/7
Sahil’s New share                            = 3/7 – 1/7   = 2/7
Kamal’s share                                 = 1/7+1/7    = 2/7
New profit sharing ratio                   = 3:2:2

Question. X and Y are partners sharing profits in the ratio of 5:4. They admit Z in the firm for 1/3rd profit, which he takes 2/9th from X and 1/9th from Y and brings Rs. 1500 as premium. Pass the necessary Journal entries on Z’s admission.
Answer : Cash A/C                                           Dr. 1500
To premium A/C                                                                    1500
(cash brought in by Z for his share of goodwill)

Premium A/C                                                    Dr. 1500
To X’s capital A/C                                                                  1000
To Y’s Capital A/C                                                                  500
(Goodwill distributed among sacrificing partners in the ratio of 2:1.)

Question. A and B are partners sharing profits in the ratio of 3:2. They admit C into partnership for 1/4th share. C is unable to bring his share of goodwill in cash. The goodwill of the firm is valued at Rs. 21,000. give journal entry for the treatment of goodwill on C’s admission.
Answer : C’s capital A/C      Dr. 5250
To A’s capital A/C                               3150
To B’s capital A/C                               2100
(C’s share of goodwill distributed among old partners in sacrificing ratio i.e. 3:2)

Question. Ajay and Naveen are partners sharing profits in the ratio of 5:3. Surinder is admitted in to the firm for 1/4th share in the profit which he acquires from Ajay and Naveen in the ratio of 2:1. Calculate the new profit sharing ratio.
Answer : Ajay’s sacrifies    = 1/4 X 2/3    = 2/12
Naveen’s sacrifies              = 1/4 X 1/3    = 1/12
Ajay’s new share               = 5/8 – 2/12   = 11/24
Naveen’s New share          = 3/8 – 1/12   = 7/24
Surender’s share               = 1/4 or 6/24
New ratio                         = 11:7:6

Question. Ranzeet and Priya are two partners sharing profits in the ratio of 3:2. They admit Nilu as a partner, who pays Rs. 60,000 as capital. The new ratio is fixed as 3:1:1. The value of goodwill of the firm was determined at Rs. 50,000. Show journal entries if Nilu brings goodwill for her share in cash.
Answer :  Cash A/C                      Dr. 70000
To Nilu’s capital A/C                                             60000
To premium A/C                                                  10000
(Cash brought in by new partner)

Premium A/C                              Dr. 10000
To Priya’s capital A/C                                           10000
(Amount of goodwill distributed among sacrificing partner in their sacrificing ratio.)

Question. The capital of a firm of Arpit and Prajwal is Rs. 10,00,000. The market rate of return is 15% and the goodwill of the firm has been valued Rs. 1,80,000 at two years purchase of super profits. Find the average profits of the firm.
Answer : (i) Super profit = Value of goodwill /Number of years purchase
                                       = 180000/2
                                       = 90000
(ii) Normal Profit = Capital employed X Normal rate of return /100
                              = 1000000 X 15/ 100
                              = 150000
(i) Average Profit = Normal Profit + Super profit
                              = 150000 + 90000
                              = 240000

Question. A, B and C were partners in the ratio of 5:4:1. On 31st Dec. 2006 their balance sheet showed a reserve fund of Rs. 65,000, P&L A/C (Loss) of Rs. 45,000. On 1st January, 2007, the partners decided to change their profit sharing ratio to 9:6:5. For this purpose goodwill was valued at Rs. 1,50,000.
The partners do not want to distribute reserves and losses and also do not want to record goodwill.
You are required to pass single journal entry for the above.
Answer : C’s Capita; A/C Dr.                Rs. 25, 500
To A’s Capital A/C                                                        Rs. 8,500
To B’s Capital A/C                                                        Rs. 17,000

Question. On what occasions does the need for valuation of goodwill arise?
Answer : Need of valuation of goodwill arises on the following occasions:-
(i) Change in profit sharing ratio of existing partners.
(ii) Admission of a partner.
(iii) Retirement of a partner.
(iv) Death of a partner.

Question. A and B are partners with capital of Rs. 26,000 and Rs. 22,000 respectively. They admit C as partner with 1/4th share in the profits of the firm. C brings Rs. 26,000 as his share of capital. Give journal entry to record goodwill on C’s admission.
Answer : Cash A/C                                           Dr. 26000
To C’s capital A/C                                                                  26000
(Amount of capital brought in by new partner.)

C’s capital A/C                                                  Dr. 7500
To A’s capital A/C                                                                   3750
To B’s capital A/C                                                                   3750
(C’s share of goodwill distributed among A and B)

Calculation of Hidden goodwill:-
Capital of A and B                 = 26000 + 22000
                                           = 48000
C brings                               = 26000 for 1/4th share
Total capital of the firm          = 26000 X 4/1
                                           = 104000
Existing capital of the firm     = 48000 + 26000
                                           = 74000

Goodwill                               = 104000 – 74000
                                           = 30000

C’s share of goodwill              = 30000 X 1/4 = 7500

Question. What is meant by sacrificing ratio?
Answer : Sacrificing ratio is the ratio in which old partners have agreed to sacrifice their share of profit in favour of the new partner. This ratio is calculated by deducting the new ratio from the old ratio.
        Sacrificing Ratio = Old Ratio - New Ratio

Question. X and Y divide profits and losses in the ratio of 3:2. Z is admitted in the firm as a new partner with 1/6th share, which he acquires from X and Y in the ratio of 1:1. Calculate the new profit sharing ratio of all partners.
Answer : Old ratio = X:Y = 1:1
Z is admitted for 1/6th share which he acquire from X,Y in the ratio of 1:1

Since 1/6 X 1/2   = 1/12 from X and Y
X’s new ratio       = 3/5 – 1/12 = 31/60
Y’s New ratio       = 2/5 – 1/12 = 19/60
Z’s share            = 1/6
New ratio           = 31/60, 19/60,1/6 or 31:19:10

Question. Why is it necessary to revalue assets and reassess liabilities at the time of admission of new partner?
Answer : It is necessary to revalue assets and reassess liabilities at the time of admission of new partners as if assets and liabilities are overstated or understated in the books then its benefits or loss should not affect the near partner.

Question. A and B were partners in the ratio of 3:2. They admit C for 3/13th share. New profit ratio after C’s admission will be 5:5:3. C brought some assets in the form of his capital and for the share of his goodwill.
       Following were the assets:
       Assets                                  Rs.
      Stock                                                     2,44,000
      Building                                                2,40,000
      Plant and Machinery            1,40,000
At the time of admission of C goodwill of the firm was valued at Rs. 12,48,000.
Pass necessary journal entries.
Answer :

CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment_1

CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment_2

Question. A and B are partners sharing profits equally. They admit C into partnership, C paying only Rs. 1000 for premium out of his share of premium of Rs. 1800 for 1/4th share of profit. Goodwill account appears in the books at Rs. 6000. All the partners have decided that goodwill should not appear in the new firms books.
Answer : Cash A/C                            Dr. 1000
To premium A/C                                                   1000
(Amount of goodwill brought in by C)

Premium A/C                                    Dr. 1000
C’s capital A/C                                  Dr. 800
To A’s capital A/C                                                 900
To B’s capital A/C                                                 900
(Rs. 1800 distributed among sacrificing partners in sacrificing ratio.)

A’s capital A/C                                 Dr. 3000
B’s capital A/C                                 Dr. 3000
To goodwill A/C                                                   6000
(Old goodwill written off among old partners in old ratio.)

Question. A business has earned average profit of Rs. 60,000 during the last few years. The assets of the business are Rs. 5,40,000 and its external liabilities are Rs. 80,000. The normal rate of return is 10%. Calculate the value of goodwill on the basis of capitalisation of super profits.
Answer : (i) Capital employed = Assets – Liabilities
                                              = 540000 – 80000
                                              = Rs. 460000

(ii) Normal Profit = Capital employed X Normal rate of return/100
                             = Rs. 460000 X 10/100 = 46000

(iii) Super Profit = Firm’s Average profit – Normal Profit
                            = 60000 – 46000
                            = 14000

(iv) Goodwill = Super profit X 100/ Normal rate of return
                       = 14000 X 100/ 10
                       = 140000

Question. Rakhi and Parul are partners sharing profits in the ratio of 3:1. Neha is admitted as a partner. The new profit sharing ratio among Rakhi, Parul and Neha is 2:3:2. Find out the sacrificing ratio.
Answer : Old ratio = Rakhi : Parul  = 3:1
New ratio = Rakhi: Parul: Neha       = 2:3:2
Rakhi’s sacrifice                             = 3/4 – 2/7 = 13/28
Parul’s sacrifice                              = 1/4 -3/7 = 5/28 (Gain)

So, Rakhi’s sacrifice 13/28th share and Parul is gaining to the extent of 5/28th share.

Question. State two occasions when sacrificing ratio may be applied.
Answer : (i) On admission of a new partner.
(ii) On change on profit sharing ratio of existing partner.

Question. A and B were partners sharing profits in the ratio of 3:2. A surrenders 1/6th of his share and B surrenders 1/4th of his share in favour of C, a new partner. What is the new ratio and the sacrificing ratio.
Answer : Old ratio       = A: B = 3:2
A surrender                  = 3/5 X 1/6    = 3/30 =1/10
B surrender                  = 2/5 X 1/4    = 1/10
A’s new share               = 3/5 – 1/10  = 5/10
B’s new share               = 2/5 – 1/10  = 3/10
C’s new share               = 1/10 +1/10 = 2/10
New ratio                     = 5/10, 3/10, 2/10 OR 5:3:2

Sacrificing Ration = Old ratio – New ratio
A = 3/5 – 5/10 = 1/10
B = 2/5 – 3/10 = 1/10
Sacrificing ratio = 1:1

Question. Piyush and Deepika are partners sharing in the ratio of 7:3. they admit Seema as a new partner. The new ratio being 5:3:2. Pass journal entries.
Answer : Cash A/C                                          Dr. 4000
To premium A/C                                                                  4000
(Amount of goodwill brought in by new partner)

Premium A/C                                                    Dr. 4000
To Piyush’s capital A/C                                                         4000
(Goodwill distributed among sacrificing partners in their sacrificing ratio.)

Question. Aarti and Bharti are partners sharing profits in the ratio of 5:3. They admit Shital for 1/4th share and agree to share between them in the ratio of 2:1 in future. Calculate new and sacrificing ratio.
Answer : Old ratio   =   5:3
Shital                      =   1/4th Share

Let the profit be Rs. 1
Remaining profit        = 1-1/4         =3/4
Arti : Babita              = 2:1
Arti’s share               = 3/4 X 2/3   = 1/2
Babita’s Share           = 3/4 X 1/3   = 1/4
New Ratio                 = 1/2, 1/4, 1/4 Or 2:1:1

Sacrificing ratio = Old ratio – New ratio
Arti’s sacrifies          = 5/8 – 2/4    = 1/8
Babita’s Sacrifies     = 3/8 – 1/4    = 1/8
Sacrificing Ratio      = 1:1

Question. A and B are partners with capitals of Rs. 13,000 and Rs. 9000 respectively. They admit C as a partner with 1/5th share in the profits of the firm. C brings Rs. 8000 as his capital. Give journal entries to record goodwill.
Answer : Cash A/C                                       Dr. 8000
To C’s capital A/C                                                            8000
(Amount of capital brought in by new partner) 

C’s capital A/C                                              Dr. 2000
To A’s capital A/C                                                            1000
To B’s capital A/C                                                            1000
(Share of goodwill distributed among A and B in sacrificing ratio i.e. 1:1)

Calculation of Hidden Goodwill.
C brings 8000 for 1/5 share

Since total capital of the firm       = 8000 X 5/1
                                                 = 40000

Existing capital of the firm          = 13000 + 9000 + 8000
                                                = 30000
Goodwill                                    = 40000 – 30000
                                                = 10000
C’s share of goodwill                   = 10000 X 1/5
                                                = 2000

 

PARTNERSHIP – FUNDAMENTALS

Question. A,B and C are partners sharing profits in the ratio 3:2:1 and contribute capital 1,00,000; 80,000 and 60,000 respectively. Profit before adjustments is 84,000. Interest on capital is to be provided @ 10% p.a. Since C has to take care of his physically challenged brother, his share of profit should not be less than 15,000. A and B have agreed to bear the deficiency.

Value Based
What values are reflected on the part of A and B that they are ready to sacrifice their share to meet the deficiency of guaranteed profit?

Answer: Compassionate Sacrificing nature Contentment Commitment Caring & Sharing

1. Value involved: (i) Social Responsibility

(ii) Help the weaker section of the society

(iii) Promotion charity 

Profit and Loss Appropriation Account for the year ended on March 31,2012

class_12_account_vbq_1

 Partner’s Capital Account

class_12_account_vbq_2

Question. X,Y and Z are partners with 72,000, 80,000 and 1,00,000 as their capitals respectively. The profit for the year ending March 31,2012 was 7,20,000. Before distributing profits they donated 10% of profits to a ‘Non-Govt. organisation’ as charity for welfare of educationally backward section of the society. Out of the remaining profit, 4,00,000 is divisible as 5:3:2 ratio and the remaining is to be divided amongst them equally. Identify the value followed by the partnership firm of X,Y and Z. Prepare Profit and Loss Appropriation Account and Partner’s Capital Account.
Answer: Values : (i)
Motivation to school going children

(ii) Help to increase the literacy rate
 
Social Responsibility
 
Profit and Loss Appropriation Account For the year ended on March 31, 2012

CBSE Class 12 Accountancy VBQs
Question. Aakash and Bhola entered into partnership on January 1,2012 contributing 1,20,000 and 1,60,000 as capitals respectively. Their partnership firm started the business of manufacturing shoes. They decided to donate 30% of the shoes produced for school going children. They share profits in the ratio of 7:3. The profits for the year were 96,000. Prepare Profit and Loss Appropriation Account and the Partner’s Capital Accounts. Also identify the value involved in this question.
Answer: Value involved:

(i) Good relations between persons of different religions.
 
(ii) Women empowerment
 
(iii) Welfare of differently abled persons.
 
(iv) Protection of the interest of differently abled
 
Profit & Loss Appropriation Account For the year ended on March 31, 2011

CBSE Class 12 Accountancy VBQs

Profit & Loss Appropriation Account 

CBSE Class 12 Accountancy VBQs

Question. Renu and Reshma shared profits as 7:3. Renu want to give admission to her friend Rehana as a new partner. Reshma agrees with this decision of Renu. Rehana is a physically challenged lady and admitted with a ¼ th share in profits. Renu and Reshma gave her a guarantee that her share of profit will never be less than 1,20,000 p.a., the profits for the last two years ended March 31, 2011 and March 31, 2012 were 1,60,000 and 2,40,000 respectively. Identify the human value involved in this case and Profit and Loss Appropriation Account for the two years.
Answer: Value involved:

(i) Good relations between different religions
 
(ii) National integration
 
(iii) Balanced Regional Development
 
(iv) Awareness about pollution control
 
(v) Use of advanced technology
 
Profit & Loss Appropriation Account
For the year ended on -----------------

CBSE Class 12 Accountancy VBQs

Question. Ramesh and Gurmeet are two friends belonging to Hindu and Sikh religion respectively. They started a business of wire manufacturing in the form of a partnership firm. They know that the factory of wire manufacturing pollutes the environment. Therefore there are two options available before them. First option is that the factory can be opened in rural area where local residents are poor and illiterate. Second option is that an advanced pollution control plant can be installed in their factory to control the pollution. They decided to choose the second option which involves an additional cost of 2,00,000. To arrange this amount, they admitted their rich friend John as a new partner for equal share in the future profits. John brought 2,50,000 as his share of capital. Ramesh and Gurmeet gave him a guarantee that his share of profit will not be less than 60,000 p.a. At the end of first year the firm earns a profit of 1,50,000. Mention the value involved in this question. Write the effects of choosing option available before Ramesh and Gurmeet. Prepare Profit and Loss Appropriation Account for the first year.
Answer:

 Honesty
 
 Integrity
 
 Truth
 
• Breach of mutual trust
 

Question. A,B and C are in a partnership. A is appointed for carrying on the business of the firm by the other partners. A has decided to purchase the goods from a firm in which his wife and his son are partners at a double rate than the prevailing market rate without disclosing this fact to others partners of the firm. State which values have been violated by A by not disclosing this information to B and C.
Answer:
C has violated the following values:

 Honesty
 
 Integrity
 
Truth
 
Breach of mutual trust
 
C will have to return firm’s money along with any profits earned.
 

Question. A,B and C are partners in a firm. C used firm’s money to buy shares without disclosing it other partners. Which value C is violating and what will be the treatment of profit earned by C?
Answer: Values

• Sympathy
 
• Caring & Sharing
 

RECONSTITUTION OF PARTNERSHIP

Question. A & B are partners sharing profits in the ratio 1:1. C wants to join their firm as it enjoys a good reputation in the industry. A and B agreed to admit him for 1/5 th share in profits. For this, they asked him to pay his share of goodwill in cash which he was unable to bring in. A and B agreed for the same. What values are being emphasised by the firm at the time of C’s admission?
Answer: Following values are being reflected:-

•  Sensitivity towards differently abled individuals.
 
• Empowering women entrepreneurship.
 
•  Efficient utilization of surplus funds
 
•  Mutual trust and co-operation
 

Question. After completing MBA, Arun and Radha want to start a new business but they don’t have sufficient capital. They contacted their common friend Sita, a rich lady with poor eyesight. They  decided to form a partnership firm with a capital of 25,00,000 with a ratio of 80% by Sita, 10% each by Arun and Radha respectively. The partnership deed provided as follows :
• Interest on capital @ 12% p.a
• Salary to active partners Arun and Radha @ 9,000 p.m.
The firm earned a net profit of 9,66,000 during the year. Sita decided to donate half of her profits to a school for differently abled children. State which values are being reflected in the above case and also prepare Profit and Loss appropriation a/c for the year.
Answer:  Profit and Loss Appropriation Account
For the year ending on ----------------------

 CBSE Class 12 Accountancy VBQs

Following values are being reflected:

 Mutual trust and co-operation

 Fulfillment of social responsibility

 Sympathy

Question. A and B are partners in a firm having a workmen compensation reserve of 10,00,000. A worker, Rohan died in an accident while working for the firm. The firm paid 5,00,000 as compensation to his family and offered a job to his wife and also arranged for the education of his son. State which values are being reflected in the above case and also show the treatment of workmen compensation reserve if A and B now decide to change their profit sharing ratio from 3:1 to equal ratio.
Answer:
It is the right of A to get indemnified against the payment which he paid for the firms business. B violated the following values:

 Mutual trust and co-operation
 
 Integrity
 
 Truth
 
 Acknowledgement
 

Question. A and B are partners in a firm. A manages the business as a representative of firm. For execution of sales order to a valuable customer, A spent Rs. 5,000 for quick delivery. B is not agreeing to reimburse the above expenses from the firm’s accounts. Explain the treatment of above expense and describe which value is violated by the partners.
Answer: Values

 Unity
 
 Team work
 
 Pooling of resources
 
 Efficient use of resources
 
 Sharing & Caring
 

Question. What are the values involved in the formation of a partnership firm?
Answer: Values:

 Transparency
 
 Evidence
 
 Awareness
 
 Adherence to law
 

Question. What are the values disclosed by a Partnership Deed?
Answer: Values

 Financial security
 
 Fair return on Investment.
 
 Team Spirit
 

Question. In the absence of partnership deed, interest on Advances / Loan by a partner is to be paid @ 6% p.a. What value is depicted in the provision of Indian Partnership Act, 1932?
Answer: Following values are being reflected:-

1. By helping the differently abled children to come school, co. is promoting (Right To Education Act)
 
2. Fulfillment of social responsibility
 
3. Promoting the rights of differently abled children.
 
4. Compassion
 

Question. XYZ Cycles Ltd., a manufacturer of cycles and tri-cycles has decided to donate 100 tri-cycles worthRs. 3,00,000 to differently abled children in the CWSN (Children with special needs) assessment camp organized by Directorate of Education, Delhi on 3rd December on the occasion of “World Disabled Day” State the values that are being reflected in the above case.
Answer: Following values are being reflected:
-

 Sympathy
 
 Compassion
 
 Protection of rights of a minor.
 
 Helping the family of deceased partner.
 

Question. A,B and C were partners in a firm. A died in a road accident. A’s family has no other source of income. B and C has decided to admit A’s son D, a minor, in the partnership firm.. Firm guaranteed that his share in profits will not be less than Rs.1,00,000 in a year. State the values that are being reflected in the above case.
Answer: Following values are being reflected:-

 Fulfillment of social responsibility.
 
 Spreading health awareness among children.
 
 Developing hygienic habits among children.
 

Question. ABC Ltd., a manufacturer of very popular liquid soap, has decided to supply its popular product ‘Safe Hand Wash’ worth Rs.50,000 to 25 schools in the different areas of the city on the occasion of ‘Global Handwash Day’ on the 15th October at free of cost. State the values that are being reflected in the above case.
Answer:  Following values are being reflected:-

 Women entrepreneurship
 
 Team work
 
 Mutual trust
 
 Co-operation
 
 Women empowerment.
 

Question. Sita and Geeta are working as marketing executives in a MNC dealing in cosmetic products. After working for 5 years in MNC, both of them realized that they should start their own business, but both of them individually don’t have sufficient funds for starting the business. Therefore, they have decided to form a partnership firm with equal amount of capital. Both have agreed that they will actively participate in the operation of the business and to share the profits or losses of the business equally. They have decided to appoint Sangeeta, their common friend , as a manager. State the values that are being reflected in the above case.
Answer: Following values are being reflected:-

• Upliftment of education of children belonging to EWS
 
• Promoting RTE by helping student of EWS in their education
 
 Mutual trust
 
 Co-operation
 
 Social Responsibility
 

Question. A, B and C are partners in a firm which deals in woollen garments. D who runs a NGO and also a friend of C contacted him for supplying 1,000 woollen jackets for distributing among the students of EWS (Economically Weaker Section ) of the society studying in a school for ‘out of school children’ run under SSA program. D requested C to provide the jackets at the lowest possible rate. C discussed the matter with the other partners of the firm and the firm decided to provide required number of jackets at ‘No Profit No Loss’ to the NGO of D. State the values that are being reflected in the above case.
Answer: Following values are being reflected:-

 Best use of available resources.
 
 Team work
 
 Mutual trust
 
 Co-operation
 
Initiative.
 
 Awareness of legal environment.

Question. Ram is a graduate in Business Administration. He tried very hard for a job but he didn’t get any opportunity to work due to recession in the economy. Then he realized that he should start his own business at the ground floor of his house lying vacant. Since he didn’t have sufficient funds  to invest in the business, he cannot start the business alone. Ram contacted one of his friends Anuj and convinced him to start a business with him in partnership. Anuj decided to invest in the business and to form a partnership with Ram and wants to get the firm registered. State the values that are being reflected in the above case.
Answer:
It is the right of A to get indemnified against the payment which he paid for the firms business. B violated the following values:

• Mutual trust and co-operation
 
 Integrity
 
 Truth
 
 Acknowledgement

Question. A, B and C are partners in a firm having fixed capital of Rs.5 lacs, 3 lacs and 2 lacs respectively . Firm earned profits of Rs. 1,50,000 during the year ending 31st March, 2011. These profits were divided in capital ratio instead of 2:2:1. Pass adjustment entry for the above and also state which value is being violated through their decision?
Answer: Values reflected are:
♦ mutual trust
♦ honesty
♦ Regional Integration

Question. Deepa and Shweta are friends and after completion of their study they started a business of readymade Garments by constituting a partnership firm with a profit sharing ratio as 3:2 respectively. Their partnership firm earns huge profits during few years. They decided to award a scholarship of Rs.10,000 p.a. for meritorious and economically weaker students. On January 1, 2012 they admit Joney, their manager as a new partner with 1/5th share in future profits. The value of goodwill of the firm is Rs. 3,50,000 and Joney is not able to bring his share of goodwill in cash. Joney is an expert in business management and he hailed from North-east of India. He contributes Rs. 50,000 as his capital. Identify the value is involved in this question and pass the journal entries on admission of Joney.
Answer:                                                    JOURNAL 
CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment

Question. Amar and Bashir are sharing profits in the ratio of 3:2 respectively. They admit their friend Chandni with one fourth share in the future profits. Chandni belongs to economically weaker section of the society and not able to bring her share of goodwill. Goodwill of the firm is valued at Rs.20,000. Chandni contributes Rs.30,000 as her capital. Identify the value involved in this question.
Answer: Values involved:
♦ Upliftment of Economically weaker Section of the Society
♦ Women Empowerment

Question. P,Q and R are partners sharing in the ratio 3:2:1. Q wanted to retire due to his ill health. But P and R did not want Q to retire. They suggested that he could spend less time in business and bring his daughter Radha ,who is a MBA graduate to be appointed as a manager to look after the business with a salary of Rs.2,00,000 p.a. In this arrangement Q will have a continued earning.
Identify the values have been taken in to consideration in the above decision?
Answer: Values involved:
♦ Sympathy
♦ Honesty
♦ Employment opportunity

Question. A,B and C are partners in the ratio of 3:2:1.C wanted to retire . All the amount due to him was calculated. There was Golden Peacock which they got as an award for the best dealer in the product, they are dealing in some years ago. Until the date of retirement it was looked as an appreciation not as an asset. A and B decided to treat the golden peacock as an asset and give C”s share to him. The golden peacock valued on the date of retirement Rs 50,000.
a) Which value has been fulfilled by the A and B.
Answer: Values:
♦ Honesty
♦ Justice
♦ Respecting the efforts contributed by C in winning the award

Question. K,M and P are partners sharing profits equally. M wanted to retire due to his ill health. K and P accepted his request. In terms of the partnership deed the amount due to retiring partner will be settled in three instalments . M requested K and P to pay the amount in lump sum as he needs it urgently to undergo his by pass surgery. K and P accepted his request and decided to settle his amount of Rs 5,20,000. They raised a loan from bank for this purpose.
a) According to You which values have been fulfilled by the Partners?
Answer: Values involved:
♦ Empathy
♦ Kindness and concern for fellowmen
♦ Just and Equitable

Question. A ,B and C are partners sharing profits equally. On 1st August B died. According to the partnership deed the deceased partner’s executor will be settled in 6 equal half-yearly instalments without any interest. B ‘s wife accepted for the terms of the deed with the condition that she will be admitted as a partner for an equal share. Other partners agreed for her representation.
Which values have been fulfilled ?
Answer: Values reflected:
♦ Compassion
♦ Empathy
♦ Women empowerment

Question. A ,B and C are partners sharing profits in the ratio of 3:2:1. C died on 1st July, 2012. D, C’s son requested A and B to admit him as a partner in place of his deceased father and the amount due to his father can be treated as his capital. D is also of the view that he will be helpful to the other partners in business by helping them in expansion process as he got his MBA from IIM. A and B accepted the request of D. Which value has been fulfilled by A and B.
Answer: Values involved:
♦ Concern
♦ Promoting young entrepreneurship skill. 
CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment
CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment

Dissolution of Partnership Firms

Question. Following is the Balance Sheet of X and Y, who share profits and losses in the ratio of 4:1, as at 31st March, 2011:
Balance Sheet As on 31st March, 2011    
CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment
The firm was dissolved on the above date and the following arrangements were decided upon:
(i) Y is authorized to sell the assets of the firm and will get a fixed amount of Rs.2,000 for his work.
(ii) X agreed to pay off his wife’s loan.
(iii) Debtors of Rs. 5,000 proved bad.
(iv) Y decided to sell the building for Rs. 9,000 to his brother. Market value of the building was Rs.80,000.
(v) Others assets realized _ Investments 20% less; and Goodwill at 60%.
(vi) One of the creditors for ,000 was paid only ,000.
(vii) Y took over part of Stock at ,000 being 20% less than the book value).
Balance stock realized 50%.
(viii) Reali ation expenses amounted to ,000. State which value are being violated in the above question and also prepare Realization A/c.
Answer:  Realisation A/c
♦ Values:
♦ Transparency
♦ Trust
♦ Mutual Understanding

Company Account – Issue of Shares

Question. Rehan Ltd. Issue 50,000 shares of Rs.10 each payable Rs.4 on application and Rs.6 on allotment. According to the SEBI guidelines, a minimum of the net offer should be reserved for small investors. Therefore, out of these 50,000 shares, 50% portion is reserved for retail (small) investors. Issue has been fully subscribed . Identify the value involved.
Answer: Rehan Ltd Values Involved: Protecting the interest of small investors, Adherence to law 
CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment

Question. XYZ limited is offering 3,00,000 equity shares @ an issue price of Rs.50 when market price is Rs.100, to its employees as part of incentives. Nominal value of the share is Rs.10. What value/principle do you think that XYZ ltd is adopting towards its employees?
Answer: Values involved
♦ Employee Recognition
♦ Motivation
♦ Profit Sharing
♦ Satisfaction of esteem needs

Question. Ramkay ltd. has a nominal capital of Rs.12 crores . Securities premium account shows a balance of `3 crores. The company does not want to carry the balance in securities premium account.
i. What are ways can the company make use of of the amount available in securities premium account?
ii. Suggest one best way of using securities premium account that will maximise the wealth of the share holders.
iii. Identify the value createdby the company by doing so?
Answer: Values involved
♦ Wealth maximization
♦ Responsibility towards shareholders
♦ Value addition

Question. What do you mean by rights issue? What value do you think the company is trying to achieve by this type of issue?
Answer: Values involved
♦ Wealth maximization
♦ Continued patronage to the Company

Question. Autumn ltd. is registered with capital of Rs.70 lakhs divided into equity share of Rs.100 each. The companyoffered for public subscription 1,00,000 shares of Rs.100 each. Issue was oversubscribed by 50,000 shares.The Company allotted the shares on pro-rata basis to all applicants.
a)What value/principle the company is trying to achieve by this method of allotment?
Answer: Just and Equitable
Motivation to existing shareholders

Question. Vasanth& Co is a public ltd. company. It does not have its own articles of association. The company offered for public subscription of 10,000 shares of Rs.10 each. All money was duly received except for the call money of Rs.3 per share from Arun, holder of 100 shares, money. Though the company is deemed to have adopted TABLE A the company does not want to charge interest on calls in arrears.
Why in your view that the company does not want to collect interest on calls in arrears. What justification can the company give?
Answer: Sympathy
Generosity

Company Account – Issue of Debentures

Question. Board of Directors of Pearl Global Industries Ltd wants to start a new unit at a remote area Assam.
The new unit can be started in the form of labour intensive with a capital of Rs 5 crore or in the form of automatic plant with a capital of Rs.30 crore. Directors decided to start this unit in the form of labour intensive for generation of employment opportunities in remote areas. Therefore thecompany purchased land for Rs.2,00,00,000 and machinery for Rs.3,00,00,000. In consideration of these assets company issues 13% Debentures at par.
Identify the values involves in the decision of directors of pearl Global Ltd. and Journalize the transactions.
Answer: Balanced Regional Development
Generation of employment
Upliftment of weaker section

Question. According to the SEBI guidelines, Debentures can be secured by a charge on the assets of the company . A ‘Debenture Trust Deed’ is entered into between the company and the debenture holders.
Identify the values involved in this decision of SEBI.
Answer: Safety of investment
Legal compliance
Protection of interest of debenture holders

Question. A Ltd. issued Rs. 10 lacs 9% debentures of Rs.100 each on 1st April, 2008 redeemable in five equal instalments through draw of lots beginning from the year ending 31st march 2011. Assume that the company has transferred sufficient amount to debenture redemption reserve.
State the values symbolized by redeeming the debentures through draw of lots.
Answer: Judicious method of settlement of liabilities
Foresightedness

Question. Creation of Debenture Redemption Reserve by company indicates which value?
Answer: Foresightedness
Judicious method
Adherence to SEBI guidelines and Companies Act

Question. INFRA Developers Ltd., ( an infrastructure company) issued 5, 00,000 8% Debentures of Rs. 100 each on April 1, 2008 redeemable on April 1, 2012. How much amount of Debenture Redemption Reserve is required before the redemption of debentures?
Which value SEBI wants to promote by having special provision for Infrastructure Company?
Answer: National Development
Aid to capital formation

Question... During the time of recession, Shiva Ltd., got a good deal with a company located in Sweden. The contract will result in more amounts of profit and foreign exchange. The company already enjoyed a good reputation in the industry. It decided to increase its capacity utilization and hence was in need of funds.
On 1st April 2012, after careful analysis, the company offered 10,000,10% convertible debentures of the face value of Rs.100 each at a discount of 10%. These debentures are convertible into equity shares of Rs.100 each at a premium of 10%. At present, the return on investment of Shiva Ltd., is 25%. At the time of issue of debentures the prevailing interest rate was 8%. The issue was successfully completed.
Identify the values which were considered by the board of directors while issuing the debenture
Answer: Socially Responsible
Opportunity given to the lenders to become shareholders

Question. Parvathy Ltd., engaged in the production of Ayurvedic products. The capital structure of the company is as follows.
1,00,000 equity shares of Rs.100 each Rs.1,00,00,000
50,000 nonconvertible 8% Debentures of Rs.100 each Rs.50,00,000
In order to expand the business activities, the company issued 25,000 8% Debentures of Rs.100 each at par on 1st January 2010 which are convertible into equity shares of Rs.100 each at a discount of 10%. The return on investment of the company is 10%.
Identify the values ignored at the time of issue of debentures
Answer: Values Ignored:
Financial Risk
Dilution of control
Wealth maximization

Question. The following balances appeared in a company balance sheet on 31.03.2012
Debenture Redemption Reserve A/C Rs.2,50,000
10,000 9%Debentures of Rs.50 each Rs.5,00,000
On the above date the debentures were redeemed. For the purpose of redemption the company issued 5,000 equity shares of Rs.100 each at par to the public.
Identify the values ignored by the board of directors.
Answer: Values Ignored:
Weak financial foresight
Reduction in market value of share
Deprive the rights of existing shareholders

Question. A Ltd., wanted to expand its business. The current rate of ROI is 25%. The prevailing rate of interest is 10%. The projected ROI after the expansion of the business is 30%. A Ltd., enjoys a good reputation in the industry. After careful analysis, the Board of Directors decided to raise additional funds through the issue of Debentures. Accordingly on 1.1.2012 the company issues 10,000 10% Debentures of Rs.100
each redeemable at a premium of 10% after 4 years.
Identify the values considered by the Board of Directors from the point of view of shareholders. 
Answer: More employment opportunities
Benefit of Trading on Equity
Financial control
Improves the standard of living of the society

Question. Jay Ltd., has the following balances in its balance sheet.
Securities premium                      Rs.44,00,000
Debenture Redemption reserve  Rs.2,40,00,000
12% Debentures                          Rs.2,40,00,000
Under writing commission            Rs.20,00,000
The company decided to redeem its 12% Debentures at a premium of 10%. Jay Ltd., utilized the securities premium for the purpose of redeeming the debentures and writing off the under writing commission.
Identify the values involved in this problem.
Answer: Financial Strength
Wealth maximization
Adherence to Companies Act

Analysis of Financial Statements

Question. Borrowing cost is in par with Rate of return.Still companies prefer to raise funds through borrowings and not through Share Capital. Identify the value followed by the company in raising funds.
Answer: Management in few hands
Safe guarding
Interest of investors

Question. Government of India permitted NABARD to issue BhavishyaNirman Bond which channelized funds for priority areas of agriculture and rural development. The bank,accordingly has launched bonds of Rs.20,000/- per bond. The tenure of bonds is 10 years; however ,investors will have option to sell the bonds. The bonds have been rated as AAA by CRISIl and CARE. No tax will be deducted at source.
Answer: Saving Habit
Improving the growth of agriculture sector
Rural Development

Question. A dealer of sewing machine in rural area wishes to purchase a number of sewing machines.
He has only Rs.5760 to invest and has space for 20 items. An electronic sewing machine costs him Rs360 and manually operated sewing machine is Rs.240. He can sell an electronic sewing machine at a profit of Rs.22 and manually operated sewing machine at a profit of Rs.18. Justify the values to be promoted for the selection of manually operated machine.
Answer: Conservation of Energy Electricity
Health Maintenance
Promoting Self skills

Question. By introducing debt in the capital structure shareholders are benefitted by getting more EPS, when company is being winded up shareholders may lose the investment money.
Which value is violated?
Answer: Values of Just and Equity

Question. The operating ratio of A Ltd; is 55% and that of B Ltd; is 65%. Which Company is performing better and identify the value.
Answer: Social Responsibility
Saving in cost
Better utilization of Resources

Question. The Balance sheet of A ltd. showed Rs. 25 Lacs as Cash and Cash equivalents. Whereas its working capital requirement is only Rs. 5Lacs on an average. Which value do you think is missing in the financial planning of the company?
Answer: Management of funds

Question. Prepare Comparative Statement from the following
                                       31st March, 2007    31st March, 2008
Revenue from Operations  10,00,000                12,50,000
Cost of Goods Sold           5,00,000                  6,50,000
Operating Expenses         50,000                      60,000
Interest on investments Rs. 30.000 and taxes payable @ 50%. Identify the values involved in preparation of comparative statement.
Answer: 

Particulars20072008Absolute change%
Revenue from operations10,00,00012,50,0002,50,00025%
Less: Cost of goods sold5,00,0006,50,0001,50,00030%
Profit5,00,0006,00,0001,00,00020%
Less: Operating Expenses50,00060,00010,00020%
Add: Income30,00030,000------
Profit before tax4,80,0005,70,0001,20,00025%
Less: Tax2,40,0002,85,00045,00018.75%
Profit after tax2,40,0002,85,00045,00018.75%


Values: Transparency
Avoiding Malpractices
Assist in forecasting

Question. Prepare a comparative income statement of X Ltd., with the help of the following information and identify the value involved in it-
                                                  2011             2012
Sales                  1,00,000        2,00,000
Cost of Goods Sold                   60% of Sales    70% of Sales
Indirect Expenses                   10% of Gross Profit
Rate of Income Tax                  50% of Net Profit before Tax
Answer: Comparative Income Statement 
CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner Assignment
Transparency
Avoiding Malpractices
Assist in forecasting

Question. Following particulars are given to you:
Closing Inventory                                           2,00,000
Trade Receivables                        1,08,000
Less: Provision for Doubtful Debts  8,000          1,00,000
Cash                                                              30,000
Marketable Securities                                      20,000
Income Tax paid in Advance                             10,000
Share Issue Expenses                                      15,000
Liability for Current Taxation                             20,000
Liability for Future Taxation                               30,000
Trade Payables                                                 34,000
Outstanding Salaries                                       ` 5,000
Bank Overdraft                                                 25,000
Dividends Payable                                             36000
Calculate the Liquidity Ratio and Comment on the short-term financial position of the company. Identify the values involved in this question.
Answer:
Current ratio & (b) quick ratio
Current ratio=current assets/current liabilities
Current assets=closing inventory + trade receivables + cash + marketable securities + income tax
paid in advance.
= 2,00,000+1,00,000+30,000+20,000+10,000=3,60,000
Current liabilities= taxation(current + trade payables + outstanding salaries + bank over draft +dividends payable
= 20,000+34,000+5,000+25,000+36,000=1,20,000
Current ratio =3,60,000/1,20,000 = 3:1
Quick ratio = liquid assets/ current liabilities
Liquid assets = trade receivables + cash +marketable securities
= 1,00,000+30,000+20,000
=1,50,000
Quick ratio = 1,50,000/ 1,20,000
=1.25:1
Comments: The short term financial position of the company is sound because its current ratio is 3:1 ,which is more than the ideal ratio of 2:1 . Liquid ratio of the company is 1.25 : 1,which is also more than the ideal ratio of 1:1. Therefore, it can be said the company is in a position to pay its current liabilities instantly
Values:
Foresightedness
Transparency
Honesty
Integrity

Cash flow Statement

Question. From the following Balance Sheets of Surya Roshni Ltd., as on 31st March 2011 and 2012, prepare a statement of cash flow:
Particulars                             2011            2012
EQUITY AND LIABILITIES
Equity Share Capital              3,00,000     4,00,000
Preference Share Capital        1,00,000     75,000
Securities Premium
60,000
Profit & Loss Balance              10,000       72,000
15% Debentures                    2,00,000    2,50,000
Trade Payables                       50,000      1,10,000
                          TOTAL       6,40,000      9,67,000
ASSETS:
Fixed Assets                                2,00,000   5,00,000
Less: Accumulated Depreciation    30,000      48,000
                                                 1,70,000    4,52,000
Non-Current Investments              40,000      45,000
Inventory                                    1,50,000    2,00,000
                           2011      2012
Trade Receivables  1,76,000 56,000
Less: Provision for
Doubtful Debts     10,000     16,000
                          1,66,000   40,000   1,66,000                              40,000
Bank                                                   94,000                            2,14,000
Discount on Issue of Debentures            20,000                              16,000
                                               TOTAL   6,40,000                         9,67,000
Additional Information:
♦ Dividend paid during the year 36,000
♦ Investment costing 10,000 were sold at a profit at 40%
♦ Fixed Assets Costing 20,000 (accumulated depreciation 8,000)
Were sold for 17,000
Additional debentures amounting to 50,000 were issued at par on 1st August 2011. Interest on debentures has been paid regularly. Mention the values involved in it.
Answer: Transparency
Sensitivity
Cash flow from operating Activities
Net Profit before interest and Tax 82,000
Add: Dividend paid                     36,000                    1,18,000
Adjustments : Non cash item
Depreciation                              26,000
Provision for Doubtful debts         6,000
Discount w/o                              4,000
Interest paid                              35,000
                                            -------------
                                                  1,89,000
Less: Profit on sale of investments  4,000
Profit on sale of fixed assets           5,000
Operating profit                           1,80,000

Question. It is mandatory for a public ltd. Company to prepare the cash flow statement as per AS-3(revised).
Identify the value involved /followed by the company in preparing the statement.
Answer: Transparency
Adherence to la

Question. When the company purchases an Asset and the vendors are settled by issue of shares and debentures, such transactions are not recorded in the cash flow statement as such transactions results in no flow of cash.Identify the value involved ?
Answer: Adherence to accounting practice

Question. identify any two positive values involved in preparation of cash flow statement.
Answer: Transparency
Sensitivity
Adherence to law

Question. Jamshedji Tata conceived an idea of formation of company in 1908 when East India Company was ruling Indian Market. He selected hilly region bordering three states Jharkhand (the then part of Bihar), Orissa and West Bengal. All states were thickly populated and under developed. Area he chose was rich in Iron ore so he decided to develop Iron and Steel Industry. He wanted to tap unproductive savings of public and Issued Capital of Rs. 5,00,000. Area was undeveloped so he decided to spend 10% of profits every year for providing Infrastructure to employees. To begin with he provided them accommodation and later he spent amount for schools, hospitals, development of playground and gardens and also contributed in road construction. He also built temples, mosques and churches. Employees were satisfied and worked hard as a result profit grew substantially 20% every year.More Industries were floated by him. Which values lead him to this road of success. 
Answer:  i)Team work
ii) Employment
iii) Courage
iv) Sensitive towards social issue
v) Regional Development
vi) National Integration
vii) Capital formation
viii) improve people standard of living
ix) National Building
x) Motivation of employee.

Question. Cadbury India Ltd; a Chocolate company launched a factory in Baddi a small town of Himachal Pradesh. The workers who enter in factory have to wash their hands with sanitizer and wear overcoat, cap and shoes which are sterilized every day for which company spends Rs. 3,00,000 per month. All employees working in factory wear gloves and not allowed to touch directly either raw material or final product. All employees irrespective of their positions have to take food in mess at the same place and the same food . For this the company spends Rs. 4,00,000 per month. Which values are taken care of?
Answer: Equity/Equilibrium
Health Conscious
Balance Regional Development
Employment opportunity
Sharing & Caring

Question. MinalKhopkar’s 80 year old mother needs immediate knee replacement surgery. But it cannot take place as MS. Khopkar a resident of Pen in Maharastra’sRaigad district ,cannot access her account with the Urban Bank Ltd though she has three fixed deposits for 20lakh because of Chairman’s involvement in Bank Scam.The Bank operations were temporarily suspended.The Chairman allegedly responsible for their sufferings was the mastermind of a Rs.758 crore scam in bank. Justify the customer value violated by bank.Which value do you think is violated?
Answer: Financial Regularity
Honesty

Please refer to the link below for CBSE Class XII Value Based Questions - Accountancy 

Part 1 Chapter 02 Accounting for Partnership Basic Concepts
CBSE Class 12 Accountancy Partnership Fundamentals VBQs
Part 1 Chapter 03 Reconstitution of a Partnership Firm Admission of a Partner
CBSE Class 12 Accountancy Reconstitution of a Partnership Firm – Admission of a Partner VBQ
Part 1 Chapter 04 Reconstitution of a Partnership Firm Retirement/Death of a Partner
CBSE Class 12 Accountancy Reconstitution of Partnership VBQs
CBSE Class 12 Accountancy Retirement And Death Of Partner VBQs
Part 1 Chapter 05 Dissolution of Partnership Firm
CBSE Class 12 Accountancy Dissolution of Partnership Firms VBQs
Part 2 Chapter 01 Accounting for Share Capital
CBSE Class 12 Accountancy Accounting for Share Capital VBQs
Part 2 Chapter 02 Issue and Redemption of Debentures
CBSE Class 12 Accountancy Company Account Issue of Debentures VBQs
Part 2 Chapter 04 Analysis of Financial Statements
CBSE Class 12 Accountancy Analysis of Financial Statements VBQs
Part 2 Chapter 06 Cash Flow Statement
CBSE Class 12 Accountancy Cash Flow Statement VBQs

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