Pre-Board Examination

(2022-2023)

CLASS : XII
ACCOUNTANCY (055) DATE : 11/1/2023
MAXIMUM MARKS : 80 TIME : 3 Hrs.
General Instructions
• All questions are compulsory.
• There are in all 34 questions & 13 pages.
• All the parts of the question should be attempted at one place.
• Marks are indicated against each question.
• Support your answers with proper working notes.

1. A, B and C are partners in a firm sharing profits and losses in 2:2:1. They admit D as a new 1
partner and new ratio is agreed at 2:5:2:1. D brings in the necessary amount for goodwill.
Goodwill of the firm is valued at ₹4,00,000. A’s Capital Account will be credited by:

a) ₹80,000
b) ₹40,000
c) ₹12,000
d) ₹60,000

2. Read the following Assertion (A) and Reason(R). Choose one of the correct alternatives given 1
below.
Assertion (A): If drawings by a partner are on the different dates and/or amounts of drawings
is not the same interest on drawings is calculated using the product method.
Reason (R) : Interest on drawings is charged for the period it is drawn by a partner, in case
the amount of drawings and/or period for which is drawn is not uniform, average method
cannot be applied to determine interest on capital.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation Assertion (A).
c) Assertion (A) is true but the Reason (R) is false .
Assertion (A) is false but the Reason (R) is true.

3. A company issued 4,000 equity shares of ₹10 each at par payable as under: 1
On application ₹3; on allotment ₹2; on first call ₹4 and on final call ₹1 per share.
Applications were received for 10,000 shares. Allotment was made on pro-rata.

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 How much amount will be received in cash on allotment?
a) ₹8,000
b) ₹12,000
c) Nil
d) ₹4,000
Or
5,000 shares of ₹100 each, issued at a premium of ₹20 ,out of which ₹70 (including premium
) was called up and paid up. The amount of uncalled capital will be:-
a) ₹2,50,000
b) ₹200,000
c) ₹4,00,000
d) ₹1,50,000

4. Mickey and Lucky are partners sharing profits and losses equally. With effect from 1 st April 1
,2022, they agreed to change their profit sharing ratio. The partnership deed provides that in
the event of any change in profit sharing ratio, the goodwill should be valued at two years’
purchase of average profit of last three years. The profits of the preceding three years were
2020- ₹35,000; 2021- ₹28,000; 2022-₹27,000.
The partners passed the following Journal Entry to give effect to the adjustment for
goodwill:

Date Particulars L.F Dr.( ₹) Cr.( ₹)

April 1, 2022 Lucky’s Capital A/c 10,000
Dr 10,000
To Mickey’s Capital A/c
(For adjustment made for goodwill due
to change in profit sharing ratio)

The Gain/Sacrifice made by partners due to change in ratio will be:-

a) Mickey has gained 1/6 share while Lucky has sacrificed 1/6 share.
b) Lucky has gained 1/12 share while Mickey has sacrificed 1/12 share.
c) Lucky has gained 1/6 share while Mickey has sacrificed 1/6 share.
d) Mickey has gained 1/12 share while Lucky has sacrificed 1/12 share.
Or
A, B & C entered into partnership in a firm on 30th September,2021 and agreed to share
profits & losses in the ratio of 5:3:2. A guaranteed a minimum profit of ₹ 20, 000 per annum
to C.Net profit for the year ending 31 st March 2022, was ₹ 80, 000. A’s share in the profit of
the firm will be :-
a) ₹36,000
b) ₹16,000
c) ₹38,000
d) ₹40,000

5. S and R are partners shaing profits in the ratio of 3:2. K , their manager received quarterly 1
salary of ₹20,000 in addition to commission of 10% on net profits after charging such

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 commission. Total amount paid to K is ₹1,30,000. The profit for the year before charging
K’s salary and commission is:-
a) ₹6,10,000
b) ₹5,60,000
c) ₹6,30,000
d) ₹5,80,000

6. 1 A company issued 10,000; 10% debentures of ₹100 each at a discount of 6% on April 1, 2019. 1
These debentures are redeemable by annual drawings of ₹2,00,000 made on 31 st March every
year,
Starting from 31stMarch,2020. Amount of interest to be paid on 31 stMarch,2021
is:-

a) ₹1,00,000
b) ₹80,000
c) ₹60,000
d) ₹94,000
Or
Daily Needs Ltd. issued 50,000, 10% Debentures of ₹ 10 each at certain rate of discount and
were to be redeemed at 20% premium. Existing balance of Securities Premium before issuing
of these debentures was ₹ 1,25,000 and after writing off Loss on Issue of Debentures, the
balance in Securities Premium was ₹ 5,000. At what rate of discount, these debentures were
issued?
a) 5%
b) 4%
c) 1%
d) 3%

7. Tee Ltd. issued 1,50,000 shares of ₹10 each on which it is yet to make a final call of ₹ 2 per 1
share. All the amount was duly received except ₹ 10,000 due from Samir, a shareholder.
Which of the following amount will be shown under the heading Subscribed but not fully
paid up?
a) ₹11,90,000
b) ₹12,00,000
c) ₹10,000
d) ₹3,00,000

8. Bobby and Sanjay were partners sharing profits & losses in the ratio of 5:3. On 1st April 1
2021, their capital accounts showed balances of ₹3, 00,000 and ₹2, 00,000 respectively. The
Partnership Deed provided for interest on capital @10% p.a. and the firm earned a profit of
Rs. 45,000 for the year ended 31st March 2022. The interest on partners’ capitals to Bobby &
Sanjay will be:
a) ₹ 22,500 to both partners
b) ₹ 27,000 & ₹ 18,000 respectively

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 c) ₹ 28,125 & ₹ 16,875 respectively
d) None of the above

Or

A, B and C are partner sharing profit in the ratio 4/9: 1/3: 2/9. B retires and A and C decide
to share profits in the ratio 1:2. It was decided to adjust B's share of goodwill in the
accounts of continuing partners, fill in the missing figures in the following journal entry .
(1)
DATE PARTICULARS LF Dr(₹) Cr(₹)
C’s capital A/c… Dr ----------
To A’s capital A/c ---------
To B’s capital A/C 30000
(Compensated A and B for the loss)

Read the following hypothetical situation, Answer Question No. 9 and 10 1

Dreams Ltd. invited applications for issuing 2,00,000 equity shares of ₹10 each at a
premium of ₹2 per share.
The amount was payable as follows:-
On Application ₹5 per share
On Allotment ₹4 per share (including premium of ₹2)
On First Call ₹2 per share
On second and final call -Balance Amount
Applications were received for 2,40,000 shares allotment was made as under:-
i) To Applicants for 1,00,000 shares-in full
ii) To Applicants for 80,000 shares- 60,000 shares
iii) To Applicants for 60,000 shares- 40,000 shares.
Applicants of 1000 shares falling in category (i) and applicants of 1200 shares falling
in category (ii), failed to pay allotment money. These shares were forfeited on failure
to pay first call.
Holders of 1200 shares falling in category (iii) failed to pay first call as well as second
and final call and these shares were forfeited after the final call.
1300 shares [1000 shares of category (i) and 300 shares of category (ii)] were reissued
at ₹8 per share, ₹9 paid up.
On the basis of above information answer the following questions:

9. The balance available in Forfeited Shares Account before the shares were reissued will be:-
a) ₹12,400
b) ₹11,000
c) ₹ 19,400
d) None of these

10. The balance available in forfeited shares account after the reissue of shares will be: 1
a) ₹12,400

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 b) zero
c) ₹8,400
d) ₹11,000

11. Charu and Vina were partner sharing Profit and Losses in 3 : 2 with effect from 1st April 1
2022, they decided to share future profits equally. On that date, following journal entry was
passed by the firm:
Date Particulars L.F Dr (₹) Cr (₹)
Charu’s Current A/c 30,000
Dr 30,000
To Vina’s Current A/c
Which of the following balance was existing in the books of the firm on the date of
reconstitution?
(a) Contingency Reserve ₹3,00,000
(b) Profit and Loss (Dr.) Balance ₹3,00,000
(c) Profit and Loss (Cr.) Balance ₹3,00,000
(d) Advertisement Suspense Account ₹2,00,000

12. 4,000 equity shares of ₹10 each were issued at 10% premium to promoters of a company for 1
their services. Which of the following account/ accounts will be debited?
a) Incorporation Cost A/c
b) Incorporation Cost A/c and Securities premium reserve account
c) Promoters’ A/c
d) Bank A/c

13. When debentures of ₹1,00,000 are issued as Collateral Security against a loan of ₹1,50,000, 1
the entry for issue of debentures will be :
a) Credit Debentures ₹1,50,000 and debit bank A/c ₹1,50,000
b) Debit Debenture Suspense A/c ₹1,00,000 and Credit Bank A/c ₹1,00,000
c) Debit Debenture Suspense A/c ₹1,00,000 and Credit Debentures A/c ₹1,00,000.
d) Debit Cash A/c ₹1,50,000 and Credit Bank A/c ₹1,50,000.

14. Ram and Shyam are partners sharing profit in the ratio of 3:2. Their Balance Sheet showed 1
Machinery at ₹4,00,000; Stock at ₹80,000 and Debtors at ₹3,20,000. Mohan was admitted as
a new partner for 25% share and new ratio among the partners was decided to be 9:6:5.
Machinery was revalued at ₹3,40,000 and a provision for doubtful debts was to be made @
2.5% and there was also some change in value of stock. If Ram’s share in Revaluation loss
amounted to ₹30,000, then Revalued value of Stock was:-
a) ₹1,00,000
b) ₹ 62,000
c) ₹98,000
d) ₹80,000

15. MATCH THE FOLLOWING 1

Col. I Col. II
A Interest in Drawings i. Credit side of partners’ capital a/c
B Commission to a Parter ii. Credit side of P&L Appropriation a/c
C Interest on partners loan iii. Debit side of P&L Appropriation a/c

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 D Interest in partners’ capital iv. Debit side of P&L a/c
A B C D
a) (i) (ii) (iii) (iv)
b) (i) (iv) (ii) (iii)
c) (ii) (iii) (iv) (i)
d) (iv) (iii) (ii) (i)
Or

X and Y started business on 1St April 2020 with a capital of ₹ 5,00,000 each. As per the
partnership Deed, both X and Y are to get a monthly salary of ₹ 10,000 each, and interest on
capital is ₹ 50,000 each. Interest in drawings is as follows X: ₹ 3,000 and Y: ₹ 5,000. During
the year, the firm incurred a loss of
₹ 2,00,000.
What amount of loss is to be transferred to the capital account of both partners?
a) ₹ 1,92,000
b) ₹ 2,00,000
c) ₹ 1,96,000
d) ₹ 1,80,000

16. Dholu and Bholu are partners sharing profit and losses in ratio of 5:3. Chirag is admitted for 1
1/4th share.
On the date of reconstitution, the debtors stood at ₹40,000, bill receivable stood at ₹10,000
and the
provision for doubtful debts appeared at ₹ 4000. A bill receivable, of ₹10,000 which was
discounted from the bank, earlier has been reported to be dishonoured. The firm has sold,
the debtor so arising to a debt collection agency at a loss of 40%. If bad debts now have
arisen for ₹6,000 and firm decides to maintain provisions at same rate as before then amount
of Provision to be debited to Revaluation Account would be:
(a) ₹4,400
(b) ₹4,000
(c) ₹3,400
(d)None of the above

17. On 31st March, 2022, the Balance Sheet of P, Q & R , who were partners in a firm was as:- 3
(3)
Liabilities Assets
Sundry Creditors 2,50,000 Building 2,60,000
Reserve Fund 2,00,000 Investment 1,10,000
Capital A/cs: Q's Loan 1,00,000
P 1,50,000 Debtors 1,50,000
Q 1,00,000 Stock 1,20,000
R 1,00,000 3,50,000 Cash 60,000
_______ _______
8,00,000 8,00,000

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 Q died on 1st July,2022. The profit sharing ratio of the partners was 2:1:1. On the death of a
partner, the partnership deed provides for the following:
i. His share in the profits of the firm till the date of his death will be calculated on the
basis of average profits of last three completed years. Profits for last three years were
45,000; 48,000 and 33,000.
ii. Goodwill of the firm is valued at 81,000.
iii. Interest on loan given by firm to a partner will be charged @6%p.a. or 4,000 ,
whichever is more.
Pass necessary Journal entries.

18. Karan, Varun and Gagan are partners. After the accounts of partnership have been drawn up 3
and closed, it was discovered that for the years ending 31st March 2021 and 2022, interest on
capital has been allowed to partners @6% p.a., although there is no provision for interest on
capital in the partnership deed.
Their fixed capitals were ₹2,00,000; ₹1,60,000 and ₹1,20,000 respectively.
During the last two years, they had shared the profits as under:
31st March, 2021 - 3:2:1
31st March, 2022 - 5:3:2
Pass the necessary adjustment entry on 1st April, 2022.

Or
X,Y and Z are partners in a firm sharing profits in the ratio of 4:2:1. Their capitals stood at
₹4,40,000; ₹2,20,000 and ₹1,20,000 respectively on 1st April’2021.Partners are allowed
interest on capital @10% p.a. and charged interest on drawings @ 12%p.a. Profits for the year
ending 31st March,2022 before allowing or charging interest was ₹2,40,000. The drawings of
the partners were X – ₹5,000 per month in the beginning of every month, Y- ₹15,000 at the
end of each quarter and Z -₹60,000.
Prepare Partners’ Capital Accounts for the year ending 31st March,2022.

19. On 1st April, 2021, Sunshine Ltd. issued 6,000 ; 12% Debentures of ₹100 each at a premium 3
of 6% redeemable at 8% premium after eight years. It has already balance of ₹9,000 in
Securities Premium Reserve Account.
Pass Journal Entries for issue of debentures and writing off loss on debentures.

Or
AXA Ltd. purchased business from Star Ltd. by paying cheque of ₹8,00,000 and by issuing
20,000 debentures of ₹100 each at a premium of 10%.
The business consisted of following assets and liabilities:
Building ₹19,00,000; Machinery ₹14,00,000 , Creditors ₹1,80,000.
Pass necessary journal entries in the books of AXA Ltd.

20. The capital of a firm of Arpit and Prajwal is ₹10,00,000. The market rate of return is 15% and 3
the goodwill of the firm has been valued ₹1,80,000 at two years purchase of super profits.
Find the average profits of the firm.

21. X Ltd. was registered with a capital of 6,00,000 in shares of 100 each. It issued 3,000 of 4
such shares , payable 25 per share on application; 25 on allotment; 20 on first call and

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 the balance as and when required. All money payable on application and allotment were duly
received but when the first call was made, a shareholder holding 200 shares failed to pay the
amount due, of this 50 shares were forfeited.
Show how Share Capital will be shown in Balance Sheet of X Ltd. as per Schedule III of the
Companies Act, 2013. Also prepare 'notes to accounts' for the same.

22. Pass the necessary journal entries in the following cases on the dissolution of the firm of 4
equal partners A & B after the various assets and liabilities have been transferred to
realization account:
a) Investments’ book value was ₹30,000. 70% investments were sold through a stock
broker at 110% less brokerage @ 2% and 50% of the remaining investments were
taken over by Partner B at 90% and rest proved worthless.

b) A was to receive ₹3,000 as remuneration for completing the dissolution work and
was to bear realization expenses which were ₹1,000. Half of the realization expenses
were paid by firm and half by B.

c) There was a workmen’s compensation fund of ₹10,000 in the balance sheet. Claim
on account of workmen compensation is ₹6,000.

d) Loan from A ₹40,000 and balance in his capital account (debit) ₹55,000.

23. Trendz Ltd made an issue of 1, 00,000 equity shares of ₹ 10 each at a premium of 30% 6
payable as follows:
On application ₹ 3 per share , On allotment ₹ 6 per share ,On first and final call- balance
Applications were received for 2, 00,000 equity shares and the directors made prorata
allotment. Vaibhav who had applied for 1,600 shares did not pay the allotment and final call
money. His shares were forfeited and 60% of them were re- issued at ₹ 8 per share fully
paid.
Pass journal entries in the books of Trendz Ltd.
Or
Pass journal entries for forfeiture and re-issue in both of the following cases
a) 200 shares of ₹100 each issued at a premium of ₹10 were forfeited for the non-
payment of allotment money of ₹60 per share. The first and final call of ₹20 per
share on these shares were not made. The forfeited shares were reissued at ₹70 per
share as fully paid-up.

b) 150 shares of ₹10 each issued at a premium of ₹4 per share payable with allotment
were forfeited for non payment of allotment money of ₹8 per share including
premium. The first and final call of ₹4 per share was not made. The forfeited shares
were reissued at ₹15 per share fully paid-up.

24. A and B are partners in a firm sharing profits in the ratio of 3:2. 6
Their Balance Sheet as at March 31, 2022 stood as under:

Liabilities ₹ Assets ₹
A’s Current A/c 66,000 Cash in hand 24,000

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 Investment Fluctuation Fund 18,000 Sundry Debtors 38,000
General Reserve 20,000 Less: PFDD 34,000
A’s Capital 70,000 4,000 46,000
B’s Capital 66,000 Stock 40,000
Investments 30,000
B’s Current A/c 66,000
2,40,000 Machinery 2,40,000
On this date they admitted C on the following terms:
a) C will bring in proportionate capital and ₹8,000 as his share of goodwill.
b) Bad debts recovered amounted to ₹5,000.
c) Half the investments were taken over by A & B in their profit sharing ratio and a
loss of ₹3,000 was written on remaining investments.
d) New profit sharing ratio will be 3:3:2.
Pass the necessary Journal Entries to record the above transactions.
Or
Piku, Miku and Chiku were sharing profits in the ratio of 6:5:4.
Their Balance Sheet on 31.3.2022 is as follows:-
Liabilities ₹ Assets ₹
Creditors 18,900 Fixed Assets 68,000
Bank Loan 4,000 Investments 61,990
General Reserve 4,500 Stock 42,000
Piku’s Capital 45,000 Debtors 21,000
Miku’s Capital 50,000 Cash 4,410
Chiku’s Capital 75,000
________
1,97,400 1,97,400

Chiku retires on the same date and following adjustments were made:
a) Stock is reduced by ₹ 6,000 , provision @5% to be made on debtors and fixed assets
were valued at ₹71,000.
b) Creditors include a sum of ₹600 which will not be claimed.
c) Goodwill is valued at ₹12,000.
d) Future Profit-sharing ratio is 5:3
e) To pay off Chiku and Bank Loan and to maintain a minimum cash balance of ₹2,000,
sufficient cash will be brought in by Piku and Miku in such a way that their capitals
are proportionate to their new profit sharing ratio.
Prepare Revaluation Account and Partners’ Capital Account.

25. A, B and C are partners in a business sharing profits and losses in the ratio of 2:2:1. Their 6
Balance sheet as at 31st March 2022was as follows:
Liabilities Rs. Assets Rs.

Sundry Creditors 2,00,000 Stock 60,000

General Reserve 1,00,000 Debtors 1,60,000
Capitals: Investments 1,40,000

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 A 1,20,000
B 2,00,000 Furniture 70,000
C 80,000 Building 2,30,000

Cash 40,000

7, 00,000 7,00,000

C died on 30th September 2022. The partnership deed provided following:

1) Deceased partner will be entitled to his share of profit up to the date of death calculated
on the basis of previous year’s profit.
2) He will be entitled to his share of goodwill of the firm calculated on the basis of 3 year’s
purchase of average of last 4 year’s profit.

Profits for the last four financial years are:

2018-19:Rs 1,60,000; 2019-20: Rs 1,00,000; for 2020-21: Rs 80,000; for 2021-22:Rs
60,000.
3) Drawings of the deceased partner up to the date of death amounted to Rs 20,000.
4) Interest on capital is to be allowed at 12% per annum.

Continuing partners agreed that Rs 30,800 will be paid to the executor immediately and the
balance in two equal yearly instalments starting from 30th September 2023 with interest @
12% p.a. on outstanding balance. Show C’s capital account and his executor’s account till the
settlement of the amount due.

26. The finance manager of Rise Ltd. proposed requirement of an additional fund of ₹ 6
68,25,000. Rise Ltd. is a zero-debt company. To avail the benefits of financial leverage, the
finance manager proposed to include debt in the capital structure. After deliberations, on 1 st
April1,2022, the board of directors had decided to issue 10% Debentures of ₹100 each to the
public at a premium of 5%, redeemable after 10 years at ₹110 per share. You are required to
answer the following questions:
(i) Calculate the number of debentures to be issued to raise additional funds.
(ii) Pass Journal entry for the allotment of debentures.
(iii) Pass Journal entry to write off loss on issue of debentures.
(iv) Calculate the amount of annual fixed obligation associated with debentures.
(v) Prepare Loss on Issue of Debentures Account.

PART _B

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27. Current ratio of Viva Pvt. Ltd. Is 3:2. Accountant wants to maintain it at 2:1. Following 1
options are available :

1. He can repay bills payable

2. He can purchase goods on credit
3. He can take short term loan

Choose the correct option:

a) Only (1) is correct.
b) Only (2) is correct.
c) Only (1) and (3) are correct.
d) Only (ii) and (iii) are correct.
Or
A firm has inventory turnover of 3 and cost of goods sold is ₹2,70,000. With better
inventory management, the inventory turnover is increased to 5. This would result in-

a) Increase in inventory by ₹54,000

b) Decrease in inventory by Rs.36,000
c) Increase in cost of goods sold by ₹20,000
d) Decrease in inventory by ₹90,000.

28. Quick ratios is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. 1
Determine value of stock.
a) ₹ 54,000
b) ₹ 60,000
c) ₹ 1, 62,000
d) None of the above

29. Fashion Garments Ltd. is engaged in the export of readymade garments. The company 1
purchased a machinery of ₹10,00,000 for the use of in packaging of such garments. State
giving reason whether the cash flow due to the purchase of machinery will be cash flow
from operating activities, investing activities or financing activities?

Or
Which one of the following statements is not true?
a) Conversation of debentures into preference shares will decrease debt-equity ratio
b) Long-term liabilities due for payment within a year should be treated as current
liabilities
c) Higher operating ratio indicates higher profits
d) Cost of sales is a better numerator than sales while calculating stock turnover.

30. Plant and Machinery of Book Value of ₹5,00,000 at a loss of 5%. 1

Inflow under Investing Activities will be :-

a) ₹4,75,000
b) ₹5,00,000

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 c) ₹3,80,000
d) ₹3,60,000

31. Under which heads will the following items be shown, while preparing the Balance Sheet of 3
a company, as per provisions of Companies Act ,2013, as contained in Schedule III?
a) Provision for Taxation
b) Premium on redemption of debentures
c) Mining rights

32. The accountant has to make a choice between two methods of charging depreciation. 3
Different accountants may use different methods to charge depreciation.
Identify the limitation of financial statement analysis stated in above statement. Also state any
two limitations of financial statement analysis not discussed above.

33. Calculate gross profit ratio from the following information: 4

Trade Payables Turnover Ratio 5 times; Average Trade Payable ₹ 2,00,000; Cash Purchases
1/5 of Credit Purchases; Inventory at the beginning was ₹ 80,000 and Inventory at the end
was ₹1,00,000 more than the Opening Inventory; Net Profit ₹ 5,50,000; Operating
Expenses ₹ 3,00,000; Non- Operating Expenses ₹ 2,00,000; Non-Operating Incomes ₹
1,50,000.
OR
On the basis of the following information, calculate total assets to debt ratio:
Non–current assets ₹ 4,40,000; liquid assets ₹ 2,10,000; inventory ₹ 70,000;
long term borrowing of ₹1,00,000; provision for retirement benefit ₹ 24,000.

34. 3 Following are the Balance sheet of V Ltd. for the year ended 31stMarch 2021 and 2020: 6
4
3 Particulars No 31-3-2021 31-3-2020 (₹)
4 te (₹)
No.

I. EQUITY AND LIABILITIES

(1) Shareholders’ funds

8,00,000 4,00,000
(a)Share Capital
(b)Reserves and Surplus 1 1,50,000 (50,000)

(2) Non-current Liabilities

Long term borrowings 3,00,000 40,000
(3) Current Liabilities
(a)Short term borrowing 2,00,000 4,00,000
(b)Trade payables 2 1,40,000 1,00,000
(c)Short term provisions(Provision for Tax) 1,00,000 60,000

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 Total 16,90,000 9,50,000
ASSETS
II (1)Non-Current Assets
Fixed Assets 14,00,000 8,00,000

(2) Current Assets 3

(a) Inventories 50,000 60,000
(b)Trade Receivables 1,80,000 50,000
(c)Cash and Cash Equivalents 60,000 40,000

Total 16,90,000 9,50,000

Notes to Accounts:
Note Particulars 31-3-2021 (₹) 31-3-2020
No. (₹)
1. 1.Share capital
Equity share capital 6,00,0000 4,00,000
2, 00,000 ----------
Preference share capital
8,00,000 4,00,000
2. 2.Short term borrowings
NIL 4,00,000
Bank Loan 2,00,000 NIL
Bank Overdraft

2,00,000 4,00,000
3. 3. Cash and cash equivalents
Cash in Hand 60,000 20,000
Bank Balance ---------- 20,000
60,000 40,000

Prepare a cash flow statement after considering the following adjustments:

(a) Depreciation was charged at the end Rs.1,00,000 on Fixed Asset.
(b) Dividend paid during the year Rs.1,00,000.
(c) Tax provision made during the year Rs.1,20,000
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