CA.

SUMIT GUPTA

SET - F

CODE
055

(ACCOUNTANCY) Roll No.

Time: 3 Hr. M.M: 80
General Instructions:
 This question paper contains 34 questions. All questions are compulsory.
 This question paper is divided into two parts, Part – A and B.
 Part – A is compulsory for all candidates.
 Part – B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerized Accounting.
Student must attempt only one of the given options.
 Question 1 to 16 and 27 to 30 carries 1 mark each.
 Questions 17 to 20 and 31 and 32 carries 3 marks each.
 Questions from 21, 22 and 33 carries 4 marks each.
 Questions from 23 to 26 and 34 carries 6 marks each.
 There is no overall choice. However, an internal choice has been provided in 7 questions of one
mark, 2 questions of three marks, 1 question for four marks and 2 questions of six marks.

PART – A
ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES

1. At the time of Dissolution of a Partnership Firm, there exists an office equipment worth ` 68,000 in
the books of the firm and its realized value is not given.
In this situation the realized value of office equipment will be:
(a) Nil (b) 68,000 (c) Market Value (d) Fair Value
2. Assertion (A): At the time of change in profit sharing ratio among the existing partners, the adjustment
entry to be passed in all situations is:
Gaining Partners‟ Capital/Current A/cs Dr.
To Sacrifice Partners‟ Capital/Current A/cs
Reason (R): The above adjustment entry is passed only when profit exists on the day of change in profit
sharing ratio. In case of loss the reverse entry is passed.
(a) (A) is wrong but (R) is correct.
(b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(c) Both (A) and (R) are incorrect.
(d) Both (A) and (R) are correct, and (R) is the correct explanation of (A).
3. What will be the correct sequence of events?
(i) Forfeiture of Shares (b) Default on Calls
(iii) Re-issue of Shares (d) Amount transferred to capital reserve
Options:
(a) (i), (iv), (ii), (iii) (b) (ii), (iv), (i), (iii) (c) (ii), (i), (iii), (iv) (d) (iii), (iv), (i), (ii)
Or
At the time of Issue of debentures for consideration other than cash, Net Assets minus Capital
Reserve is:

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(a) Purchase Consideration (b) Goodwill
(c) Total Assets (d) Liquid Assets
4. X and Y are the partners in a firm sharing profits and losses in the ratio of 5 : 3. Z is admitted who
acquires 1/3rd of Y‟s share. The new ratio among partners will be:
(a) 5 : 4 : 1 (b) 4 : 5 : 1 (c) 1 : 4 : 5 (d) 5 : 2 : 1
Or
In the absence of agreement to contrary, the profit sharing ratio will be:
(a) In ratio of capital (b) In ratio of work done
(c) Equal (d) None of these
5. In a partnership firm, a partner withdrew D 5,000 per month on the first day of every month
during the year for personal expenses. If interest on drawings is charged @ 6% p.a., the interest
charged will be:
(a) D 3,600 (b) D 1,950 (c) D 1,800 (d) D 1,650
6. A Ltd. took over machinery costing D 1,80,000 of B limited at an agreed price of D 1,62,000 and
payment made to B ltd. by the issue of ___________6% debentures of D 100 each at premium of
20%. The number of debentures issued in favour of B Ltd. will be:
(a) 1800 (b) 1300 (c) 1350 (d) None of the above
Or
__________ is the maximum amount of share capital that a company can rise in its life time.
(a) Authorised Capital (b) Issued Capital (c) Subscribed Capital (d) None of these
7. As per Section 52 of Companies Act 2013, Securities Premium cannot be utilized for:
(a) Writing off capital losses (b) Issue of fully paid bonus shares
(c) Writing off discount on issue of securities (d) Writing off preliminary expenses
8. X, Y and Z were three partners sharing profits in the ratio of 3 : 2 : 1. At the end of the year, they
distributed the profits equally. The profit for the year was D 1,20,000. The adjustment entry to
rectify the error will be:
(a) X‟s Capital A/c Dr. 20,000
To Z‟s Capital A/c 20,000
(b) Z‟s Capital A/c Dr. 20,000
To X‟s Capital A/c 20,000
(c) X‟s Capital A/c Dr. 60,000
Y‟s Capital A/c Dr. 40,000
Z‟s Capital A/c Dr. 20,000
To Profit and Loss Appropriation A/c 1,20,000
(d) None of these
Or
If Loan from a partner C D 65,000 appears in balance sheet and his capital balance is D 15,000 (Dr.)
then amount payable to him is:
(a) D 65,000 (b) D 15,000 (c) D 80,000 (d) D 50,000

Read the following hypothetical situation, Answer Question No. 9 and 10.
Alpha and Beta are partners with capitals of 2,00,000 and 1,00,000 respectively. The distribution of profit
is according to following provisions of the deed.
(a) Partners are entitled to interest on capital @ 5% p.a.
(b) Beta being a working partner was also allowed a yearly salary of D 20,000.
(c) Profits were to be divided as follows:
(i) First D 30,000 in proportion to their capitals.
(ii) Next 4 20,000 in the ratio of 3 : 2.

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(iii) Remaining profits to be shared equally.
Alpha‟s share in divisible profit is D 39,500.

9. The total appropriations to Beta for interest on capital and salary is:
(a) D 18,000 (b) D 29,500 (c) D 25,500 (d) D 25,000
10. The share of divisible profit going to Beta is:
(a) D 25,000 (b) D 28,500 (c) D 25,500 (d) D 32,500
11. X and Y are partners in a firm sharing profits in the ratio of 5 : 3. They admitted Z as a new
partner. The new profit sharing ratio will be 4 : 3 : 2. The firm‟s goodwill on Z‟s admission was
valued at D 1,26,000. But Z could not bring any amount of goodwill in cash. Credit will be given to:
(a) X D 17,500; Y D 10,500 (b) X D 16,000; Y D 12,000
(c) X D 22,750; Y D 5,250 (d) X D 1,02,375; Y D 23,625
12. Vikas Ltd. has issued capital of 20,00,000 Equity Shares of 10 each. Till date 8 per share have been
called up and the entire amount received except calls of 4 per share on 800 shares and 3 per share
from another holder who held 500 shares. What amount will appear as “Subscribed but not fully
paid capital” in the balance sheet of the company?
(a) D 2,00,00,000 (b) D 1,95,99,000 (c) D 1,59,95,300 (d) D 1,99,95,300
13. Debentures that do not carry any charge or security on assets of the company are known as ______
(a) Secured Debentures (b) Unsecured Debentures
(c) Convertible Debentures (d) Registered Debentures
14. If total assets are D 2,00,000; Total liabilities are D 40,000; amount realized on sale of assets is D
1,75,000 and realization expenses are D 3,000, the profit or loss on realization will be:
(a) Profit D 12,000 (b) Loss D 68,000 (c) Loss D 28,000 (d) Loss D 25,000
15. At the time of reconstitution of a partnership firm, recording of an unrecorded liability will lead
to:
(a) Gain to the existing partners (b) Loss to the existing partners
(c) Neither gain nor loss to the existing partners (d) None of the above
Or
Vikas, Yogesh and Kunal are partners in the ratio of 5 : 3 : 2. If Yogesh‟s share of profit at the end
of the year amounted to D 1,50,000, what will be Vikas‟s share of Profits?
(a) D 5,00,000 (b) D 1,50,000 (c) D 3,00,000 (d) D 2,50,000
16. On dissolution of a firm, its Balance Sheet revealed Total Creditors D 65,000, Total Capital D
50,000, Cash Balance D 8,000. Its assets were realized at 12% less than the Book Value. Loss on
realization will be:
(a) D 11,000 (b) D 12,840 (c) D 11,400 (d) D 3,600

17. A, B and C are partners in a firm. On 1st April, 2022 the balance in their capital accounts stood at D
6,00,000, D 5,00,000 and D 4,00,000 respectively. They shared profits in proportion of 4 : 2 : 3. Partners
are entitled to interest on capital at 7% p.a. and salary to B and C at D 10,000 per quarter and D 2,000 per
month respectively as per the provisions of the partnership deed. B‟s share of profit excluding interest on
capital and salary, is guaranteed at not less than D 30,000 p.a. C‟s share of profit including interest on
capital but excluding salary is guaranteed at a minimum of D 60,000 p.a. Any deficiency arising on that
account will be met by A. The profits of the firm for the year ended 31 st March, 2023 amounted to D
2,59,000.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2023.

18. The Balance Sheet of Karizma and Yasmin who were sharing profits and losses in the ratio of 3 : 2 as at
31st March, 2023 was:
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Liabilities Amount (D) Assets Amount (D)
Sundry Creditors 1,00,000 Cash at Bank 10,000
Profit and Loss A/c 85,000 Debtors 50,000
Karizma‟s Capital A/c 48,000 Stock 70,000
Yasmin‟s Capital A/c 32,000 Furniture 20,000
Plant and Machinery 1,00,000
Advertisement Suspense 15,000
2,65,000 2,65,000
They admit Zeenat as a partner from 1 April, 2023 with 1/5th share in the profits of the firm. Zeenat
st

brings in D 50,000 as her capital. Calculate the amount of goodwill and pass journey journal entries on
admission of new partner.
Or
Xavier and Yame are partners in a firm sharing profits in the ratio of 2 : 1. Their Capitals were D
4,40,000 and D 2,20,000 respectively. On 1st April, 2022 they admit Zombi as a new partner. The new
profit sharing ratio of Xavier, Yame and Zombi is decided to be 4 : 2 : 1. Zombi brings D 1,20,000 as his
capital and D 60,000 for his share of goodwill. Partners are allowed interest on capitals @ 10% p.a. and
are charged interest on drawings @ 12% p.a. Profits for the year ending 31st March, 2023 before allowing
or charging interest was D 2,40,000. The drawings of the partners were Xavier D 5,000 per month in the
beginning of each month, Yame D 15,000 at the end of the each quarter and Zombi D 60,000. Prepare Part
ner‟s Capital Accounts for the year ending 31st March, 2023.

19. Prakash Ltd. took over assets of D 7,00,000 and liabilities of D 2,00,000 from Savita Ltd. for a purchase
consideration of D 4,59,500. D 8,500 were paid through a bank draft of three months and Pass necessary
journal entries for the above transaction.
Or
X Ltd. issued 7,500, 11% Debentures of D 100 each at a premium of 50%. The whole of the amount was
payable on application. Applications for 20,000 Debentures were received. Applications for 5,000
Debentures were rejected and Debentures were allotted to the remaining applicants on prorate basis. Pass
necessary journal entries for the above transactions.

20. Kabir and Farid are partners in a firm sharing profits in the ratio of 3 : 1. On 1.4.2023 they admitted
Manik into partnership for 1/4th share in the profits of the firm. Manik brought his share of goodwill
(premium) in cash. Goodwill of the firm was valued on the basis of 2 years purchase of last three years
average profits. The profits of last three years were:
2020-21 ` 90,000
2021-22 D 1,30,000
2022-23 D 86,000
During the year 2022-23 there was a loss of D 20,000 due to fire which was not accounted for while
calculating the profit.
Calculate the value of goodwill and pass the necessary journal entries for the treatment of goodwill.

21. Complete the following Journal Entries for issue of Debentures in the following cases:
Date Particulars L.F. Dr. (D) Cr. (D)
(a) Bank A/c Dr. ….(1)….
To Debenture Application and Allotment A/c ….(2)….
(Being money received on 200, 7% Debentures at D
165 each including D 15 premium)
Debenture Application and Allotment A/c Dr. ……(3)…..
…………….(4)………………A/c Dr. 10,000

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To 7% Debenture A/c 30,000
To ………………(5)……………A/c …..(6)….
To Premium on Redemption of Debentures A/c 10,000
(Being issue of 200 Debentures of D 150 each at a
premium of 10%, redeemable at a premium of D 50)
(b) Bank A/c Dr. …...(7)…...
To Debenture Application and Allotment A/c …...(8)…...
(Being application and allotment money received on
900 debentures @ D 95)
……………(9)…………… A/c Dr. ….(10)….
……………(11)………… A/c Dr. ….(12)….
To 15% Debenture A/c ….(12)….
To Premium on Redemption of Debenture A/c 9,000
(Being issue of debentures at discount of 5%,
redeemable at premium of 10%)

22. Pass necessary journal entries for the following at the time of dissolution of partnership firm of A and B
who are sharing profits and losses in the ratio of 3 : 2.
(a) Machinery costing D 40,000 were taken over by B at 10% less than the book value.
(b) There were unrecorded investment costing D 30,000 which were taken over by creditors of D 75,000
in part payment, rest creditors were paid at 10% discount.
(c) A agreed to take D 3,800 in full settlement of his loan of D 4,000 given to the firm.
(d) Expenses of realization D 15,000 were paid by partner B, of which D 12,000 were borne by firm.

23. Honda Limited issued 10,000 equity shares of 100 each at a premium of D 10 per share payable as
follows:
D 20 on application, D 40 on allotment, D 20 on first call and D 30 on second and final call. 10,000 shares
were applied for and allotted. All money due was received with the exception of both calls on 300 shares
held by Supriya. These shares were forfeited. Give necessary journal entries by opening Calls in arrears
account. Also state the minimum reissue price of forfeited shares.
Or
Ashok Limited issued 3,00,000 equity s hares of D 10 each at a premium of D 2 per share, payable as D 3
on application money was adjusted toward different. Mukesh who was allotted 800 shares failed to pay
both the calls and h is shares were forfeited after the second call. Record necessary journal entries in the
books of Ashok Limited by opening Calls in Arrears Account.

24. A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as on 31st
March, 2023 was as under:
Liabilities Amount Assets Amount
(D) (D)
Capital Accounts Plant and Machinery 30,000
A 30,000 Premises 20,000
B 30,000 Investment 10,000
C 20,000 80,000 Goodwill 5,000
Contingency Reserve 8,000 Patent 6,000
Employee Provident Fund 4,000 Stock 13,000
Sundry Creditors 10,000 Sundry Debtors 6,000
Cash at Bank 10,000
Advertisement Suspense A/c 2,000

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1,02,000 1,02,000
C died on 31.05.2023. The agreement between the executor of C and the partners stated that; Goodwill of
the firm was to be valued at 2½ times of the average executors of last four years. The profits of four years
were: 2019-20 D 13,000; 2020-21 D 12,000; 2021-22 D 16,000 and 2022-23 D 15,000. The patents are to
be valued at D 8,000, Machinery at D 25,000 and Premises D 25,000. The share of Profit of C should be
calculated on the basis of the profit of last year.
Calculate C‟s share of:
(a) Profit for the period till the time of his death.
(b) Goodwill
(c) Profit of loss on revaluation of assets and liabilities.
(d) Accumulated profits and losses.
Also pass necessary journal entries for the above settlement along with amount payable to C‟s executor.
OR
Mridul and Vanshika were partners in a firm with capital of D 1,20,000 and D 1,60,000 respectively. On
1st April, 2023 they admitted Gurleen as a partner for 1/4th share in profits on his payment of D 2,00,000
as his capital and D 90,000 as his share of goodwill.
On that date the creditors of the firm were D 60,000 and Bank overdraft was D 15,000. Their assets apart
from Cash included Stock D 10,000, Debtors D 40,000, Plant and Machinery D 80,000, Land and Building
D 2,00,000. It was agreed that Stock should be depreciated to D 8,000, Plant and Machinery by 20%, D
5,000 should be written off as bad debts and Land and Building should be appreciated by 25%. Prepare
the Revaluation Account and Capital Accounts of Partners.

25. A and B are partners sharing profits in the ratio of 2 : 1. C is admitted into the firm for 1/4 shares of
profits. C brings in D 20,000 in respect of his capital. The capitals of old partners A and B, after all
adjustments relating to goodwill, revaluation of assets and liabilities, etc., are D 45,000 and D 15,000
respectively. It is agreed that partners‟ capitals should be according to the new profit sharing ratio taking
C‟s capital as base.
Determine the new capitals of A and B and record the necessary journal entries assuming that the partner,
whose capital falls short, brings in the amount of deficiency and the partner who has an excess,
withdraws the excess amount.

26. Yagna Ltd. (Pharmaceutical Company) appointed marketing expert, Ms Karishma as the CEO of the
company, with a target to penetrate their roots in the rural regions. Ms Karishma discussed the ways and
means to achieve target of the company with financial, production and marketing departmental heads and
asked the finance manager to prepare the budget.
After reviewing the suggestions given by all the departmental heads, the finance manager proposed
requirement of an additional fund of 52,50,000.
Yagna Ltd. is zero-debt Company. To avail the benefits of financial leverage, the finance manager
proposed to include debt in the capital structure. After deliberations, on April 1, 2021, the board of
directors had decided to issue 6% Debentures of 100 each to the public at a premium of 5%, redeemable
after 5 years at 110 per share.
You are required to answer the following questions:
(i) Pass Journal entry for the allotment of debentures.
(ii) Pass Journal entry to write off loss on issue of debentures.
(iii) Prepare Loss on Issue of Debentures Account.

PART – B
ANALYSIS OF FINANCIAL STATEMENT
27. Which of the following ratios is not a solvency ratio?
(a) Debt to Equity Ratio (b) Current Ratio

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(c) Total Assets to Debt Ratio (d) Proprietary Ratio
Or
What is the Importance of Financial Statements analysis for creditors?
(a) To know long-term solvency (b) To know short-term solvency
(c) To know profitability (d) None of these
28. What will be the effect of Issue of Bonus Shares on Debt to Equity Ratio?
(a) Increase (b) Decrease
(c) Either Increase or Decrease (d) Neither Increase nor Decrease
29. Raphael Ltd. is carrying on a mutual fund business. It invested D 10,00,000 in shares of a company
and received a dividend of 10%. Cash Flow from Investing Activities will be:
(a) D 10,00,000 (b) D 1,00,000 (c) Nil (d) D 2,000
Or
Statement I: The primary objective of preparing cash flow statement is to provide useful information
about the cash flows of an enterprise during a particular period under various heads i.e., operating,
investing and financing activities.
Statement II: Goodwill written off is subtracted from profit before Tax and Extraordinary items to
calculate operating profit before working capital changes.
(a) Both Statements are correct.
(b) Both Statements are incorrect.
(c) Statement I is correct and Statement II is incorrect.
(d) Statement II is incorrect and Statement II is correct.
30. From the following information find out the amount of goodwill written off:
31st March, 2023 31st March, 2022
Goodwill D 2,00,000 D 3,00,000
Additional Information:
Purchase of Goodwill during the year D 30,000.
(a) D 1,00,000 (b) D 3,30,000 (c) D 30,000 (d) D 1,30,000

31. State the heads under which following items are depicted in Statement of Profit and Loss.
(i) Interest Paid (ii) Carriage Inwards
(iii) Audit Fee (iv) Bank Charges
(v) Salary (vi) Profit on sale of Machinery

32. From the following information, compute (a) Debt Equity Ratio and (b) Current Ratio.
Long-term Borrowings D 3,00,000
Current Liabilities D 50,000
Inventory D 6,000
Prepaid Expenses D 4,000
Non-Current Assets D 3,60,000
Current Assets D 90,000
Cash at Bank D 10,000

33. The following particulars are related to the Statement of Profit and Loss of AT Ltd.:
Particulars Note No. 2022-23 (D) 2021-22 (D)
Revenue from Operations 37,50,000 30,00,000
Other Incomes 75,000 60,000
Expenses 25,75,000 20,60,000
Income Tax 40% 40%
Prepare Comparative Statement of Profit and Loss.
OR

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From the following details provided by Kumud Ltd. Prepare Comparative Statement of Profit & Loss for
the year ended 31st March, 2023:
Particulars Note No. 2022-23 (D) 2021-22 (D)
Revenue from Operations 30,00,000 35,00,000
Other Incomes 3,00,000 4,50,000
Cost of materials consumed 20,00,000 23,00,000
Other Expenses 1,00,000 1,20,000
Tax Rate 40% 40%

34. From the following Balance Sheets of GPL Industries Ltd. as on 31st March, 2023 and 31st March, 2022,
Prepare Cash Flow Statement as per AS-3 (Revised)
Particulars Note 31st March 31st March
No. 2023 (D) 2022 (D)
I. EQUITY AND LIABILITIES
1. Shareholders‟ Funds:
(a) Equity Share Capital 12,00,000 8,00,000
(b) Reserves and Surplus 1 4,00,000 3,50,000
2. Non-Current Liabilities:
(a) Long-Term Borrowings 4,40,000 3,50,000
3. Current Liabilities:
(a) Short-Term Borrowings (Bank overdraft) 30,000 45,000
(b) Trade Payables 60,000 50,000
(c) Short-Term Provisions 2 84, 000 60,000
Total 22,14,000 16,55,000
II. ASSETS
1. Non-Current Assets:
Property, Plant and Equipments and Intangible
Assets
Property, Plant and Equipments: Fixed Intangible 12,00,000 9,00,000
Assets
2. Current Assets:
(a) Current Investments (Marketable) 84,000 60,000
(b) Inventories 2,00,000 1,00,000
(c) Trade Receivables 3,10,000 2,30,000
(d) Cash and Cash Equivalents 4,20,000 3,65,000
Total 22,14,000 16,55,000
Notes to Accounts:
Particulars 31st March 2023 31st March 2023
(D) (D)
1. Reserves and Surplus
Surplus i.e. Balance in Statement of Profit and Loss 3,50,000 3,10,000
General Reserve 50,000 40,000
4,00,000 3,50,000
2. Short-Term Provisions:
Provision for Tax 84,000 60,000
84,000 60,000
Additional information:
(a) Depreciation charged on tangible fixed assets was D 1,20,000.
(b) During the year, company paid interest D 36,000 on its long term borrowing.

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