CHINMAYA VIDYALAYA SR.

SECSCHOOL, CHENNAT 92
Pre llalf Ycarly Exam Novenber 2024

CLASS XII MARKS H0

SUBJECT: Accountancy DURATION: 3 Hs.

Naman Ltd. issued 10,000, 7% Debentures of ? 100 each at a discount of 24

It has a balance in Securities Premium Reserve of25,000, It will write ofl
Discount on Issue of Debentures as:

a) 40,000 from Statement of Profit & Loss.

b)R 15,000 from Securities Premium and &25,000 from Statement of Profit
& Loss (Finance Cost).
c) 25,000from Securities Premium and 3 15,000 from Statement of Proit&
Loss (Finance Cost)
dR 40,000 from Securities Preiun
2 X Ltd. forfeited 2,000 shares of 10 cach (which were issued at par) lheld by
Naveen for non-payment of allotment money of 24 per share, The called-up
value per share was &9. On forfeiture, the amount debited to Share Capital
Account will be:
a)? 18,000 b) 2,000 c)2 8,000 d) 10,000

3. Elpis Ltd. Is registered with authoriscd capital of ? 10,00,000 divided into

1,00,000 Equity share of ? 10 each. Out of which 80,000 shaes are offered to
the public and applications were received for 75,000 shares only, Company
called 8 per share till now.

(a) Authorised share capital ) 8,00,000

(b) Issued share capital (ii) 6,00,000
(c) Subscribed sharecapital (ii) 10,00,000
(d) Called up capital (iv) 7,50,000
a) (a) - (ii), (b) - (iv), (c)- (i), (d) - (i)
b) (a) - (), (b)- (ii), (c) - (G), (d) - (iv)
c) (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)
d) (a) - (ii), (b) - (Gi), (c)- (iv), (d) - (i)

4 Financial Statements are prepared on certain basic assumptions (pre

requisites) known as
a) Postulates b)Basis of Accounting
c) Provisions of Conipanies Act, 2013 d)Accounting Standards

5. Under which type of activity will you classify the sale of shares of another
company while preparing cash low statement?
a)Financing Activity b)lnvesting and Tinancing
c)Operating Activity d)livesting Activity
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 2,50.000
purchascd machinery of ?10,00,000 issuing a cheque of?
GSCLtd. 7,50,000. In the Cash Flow Statement,
the
and 10% Debentures of
transaction will be shown as:
Outflow under Investing Activity 10,00,000, inflow under Financing
i.
Activity as Reccipt for Debentures 7,50,000.
i. Outflow under Investing Activity 2,50,000.
ii. Inflow of ? 7,50,000 as Financing Activity.
iv, None of these.
c) iv and i d) ii and iv
a)only ii b) i andi
7. cach at a
Pawan Ltd. invitcd applications of 45,000 Equity Shares ofin10excess.
premium of 4. Company received applications of 15,000 Amount
payable as follows: on Application 7 (including premium of? 2), on One
Allotment 3 (including premium of 1), Balance on first and final call.
sharcholder Renu who applicd for 600 shares failed to pay allotment and first
and final call money. Amount of Securities Premium to be debited at the time
of forfeiture of shares?
a)Dcbitcd by 900 b)Debited by 750
c)Debited by 6500 d)Debited by 450
8 Zero Coupon Bonds are issued:
a) At premium b)With Specified Rate of Interest
c) At Zero Interest Rate d) Without Specified Rate of Interest
9 The debentures whose principal amount is not repayable by the company
during its life time, but the payment is made only at the time of Liquidation
of the company, such debentures are called:
a) Irredeemable Debentures. b) Bearer Debentures
c) Redeemable Dcbentures d) Non-Convertible Debentures
10. Which of the following will not covered under finance cost?
1. Discount on issue of debentures written off
Interest paid on bank overdraft
Bank charges
iv. Premium payable on redemption of debentures written off
a) Only ii b) Only iv c) Only ii d) Only i
11. Pick the odd one out:
a)Proceeds from long-term loans b)Cash received as royalty
c)Issue of debentures in cash d)Issue of shares in cash
12. On the basis of following data, the cost of revenue from operations of
a company will be: Opcning Inventory 70,000; Closing Inventory
80,000; Inventory Turnover Ratio 6 Times
a)? 1,50,000 b) 4,80,000 c)* 4,50,000 d) 90,000
13. In the Balance Sheet of a company, interest accrued and due on debentures is
shown under the main head
a) Reserves and Surplus b) Share Capital
c) Non-current Liabilities d) Current Liabilities
14. Diksha Ltd. issued 4,000, 9% Debentures of? 100 each at a discount of
10%, redeemable at a premium. Discount on Issue of Debentures and
Premium on Redemption of Debentures were accounted for through Loss on
Issue of Debentures Account. If the amount of Loss on Issue of Debentures
Account was 60,000, then the amount of premiumon redemption was:
a) 60,000 b) 40,000 c)R 80,000 d)z 20,000
15. Assertion (A): The security premium amount can be used to issue partially
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 paid up bonus shares.
Reason (R): According to Section 52(2) of the Companies Act, 2013, the
amount of Securities Premium Reserve can be used only for some specitic
purposcs

a)Both A and R are true and R is the correct explanation of A.

b)Both A and R are true but R is not the correct explanation of A.
c)A is true but R is false.
d)A is false but R is true
1
16. Which objective is useful for the external users of financial statements
a) Assessing the Managerial Eficiency
b) Inter-firm Comparison
c) Assessing the Short-term and Long-term Solvency of the Fim
d) Assessing theEarning Capacity
17.
Liabilities (R4.00.000}
The ratio of Current Assets ( 10,00.000) to Current maintaining
in a Current
is 2.5 : 1. The accountant of the firm is interested asset
Curent
Ratio of 1.8 : 1, by acquiring some Current Assets on Credit
acquired will be:
a)2,80,000 b)3.00.00 c3,50,000 I50,000
18. Which of the following item is not added or deducted while preparing a cash
flow statement?
a) Dividend Received b) Bonus shares issued
c) Dividend Paid dd Purchase of good il!
for.
19. Higher the ratio, the more favourable it is. does ot stand true
a) Net profit ratio b) inventory turnover tatio
c) operating ratio d) liquidity ratio
20.
cn i-Aprl 2022 aas Rs
A Ltd. has machinery written down value of which Depreciation
8,60,000 and on 31 march 2023 was Rs. 9.50,000. for the year
machinery was sold
was Rs. 40,000. In the beginning of the yeaa part of the Calculate cash
for Rs. 25,000, which hada written down value of 20.000.
flow from investing activities.
a) 1,25,009 b)(125,090) c) 2,50.000 d)(2.50,000)items will
Identify the rmajor heads ard sub-heads under which the following
3
21
be shown in the Balance Sheet of a company as per Schedule II of
Companies Act, 2013:
iPatents
ii. Patents being developed by the Comparny
iiü. Current Maturities of Long Term Debts
iv.Computer and related equiprmernt
v. Goods acquired for trading
vi.Debentures with maturity period in curent financial period
22. Z Lid purchased machinery from KLtd, Z Lid, paidK Lid as ollows: 3
By issuing 5,000 equity shares of 10 each at a premium of 30
iü. By issuing 1,000, 8% debentures of 100 ezch at a discount of 109
ii1. Balance by giving a promissory note of? 48,000 payable afer two
months. Pass necessary journal entries for the purchase of machinery and
paynent to K L:d in the books of Z L:d
23. Briefiy explain 2ny 3 limitations of financial stztements analysis.
24. Operating Cycle and the expected period of realisation of trade receivables is
given be!ow. How willyou classify the asset?
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 Particulars Operating cycle(in Expected period of
Months) realization of trade
receivable in months
9
17 15
10 11
10 15
14 16
VÌ 24 20

25 3
DCM Ltd issued 50,000 shares of 10 each payable as 2 per share on
application, 3 per shareon allotment and5 on first and final call.
Applications were received for 70,000 shares. It was decided that: a. to refuse
allotment to the applicants for 10,000 shares, b. to allot 20,000 shares to
Mohit who had applied for similar number, and c. to allot the remaining
shares on pro rata basis. Mohit failed to pay the allotment meney and Sachin
who belonged to Category C and was allotted 3,000 shares paid the çall
money with allotment. Calculate the amount received on allotment.
The current ratio ofY Ltd is 2:1. State with reason, which of the following 3
26. transactions would (a) increase, (b) decrease (c) not change the ratio.
i)Trade receivables inchuded debtors of 40,000 which were received earlier.
i)Company purchased furniture of 45,000. The vendor was paid by the
issue of equity shares of ? 10 each at par
Xansa Ltd. offered 22,000 equity shares of Rs. 100 each to the public at a 4
27. premium of Rs. 20 per share. The amount was payable, Rs. 30 on application,
Rs.50{incBuding premium) on allotment, and the balance on first and final
call. 20,000 shares were subscribed by the public. All calls were made. A
share holder holding 1,000 shares failed to pay the first and final call money.
His shares were forfeited. Show 'Share Capital' in balance sheet of Xansa
Ltd. also prepare Notes to Accqunts.
28 From the following Statement of Profit and Loss of Skills India Ltd. for the 4
year ended 31* March,2021 and 2022, prepare a comparative statement of
Profit and Loss:
Particulars Note 31* march 31 march
no 2022 2021
Revenue from Operations 45,00,000 20,00,000
Employee Benefit Expenses 10,00,000 8,00,000
Other Expenses 5,00,000 2,00,000
Tax rate 30%

29 Prepare a CommonSize Balance Sheet and comment on the financial 4

position of X Ltd. and Y Ltd. The Balance Sheets of X Ltd. and Y Ltd. as at
31" March,2016 are given below:
Particulars Note X Ltd. (Rs) Y Ltd. (Rs)
No.
Equity and
Liabilities

Page 4 bf 7
 1. Shareholders funds
a)Share capital 1,00,000 1,35,000
b) Reserves and 50,000 65,000
surplus
2. Non Current
Liabilities
a) Long term 75,000 62,500
Borrowings
3. Current Liabilities 25,000 37,500
a) Short term
Provisions
2,50,000 3,00,000
Total
Assets
1. Non Current Assets
a) Fixed Assets 1,00,000 1,75,000
2. Current assets
a) Cash and cash 1,50,000 1,25,000
Equivalents
Total 2,50,000 3,00,000

6
30 Neha Fabrics Ltd. invited applications for issuing 5,00,000 shares of 10
each at a premium of 4 per share. The amounts were payable as follows: On
Application and Allotment 8 per share. On First & Final Call - Balance
(including premium of 4)
Applications were received for 6,50,000 shares and allotment was made as
follows:
i To applicants for I,40,000 shares - 100% shares.
ii. To applicants for 60,000 shares - Ni!
ii Balance of the applicants were allotted shares on pro-rata basis.
Excess money received with applications was adjusted towards sums due on
first and final call.
Kavita, who belonged to category (i) and was allotted 6,000 shares and
Hitesh, who belonged to category (ii) and who had applied for 5,000 shares
failed to pay the first and final call money. Their shares were forfeited. 60%
of forfeited shares of Kavita and Hitesh were re-issued at a discount of I
per share fully paid-up. Pass necessary journal entries for the above
transactions in the books of the company
31 P Ltd. issued 10,000, 8% debentures of 100 each at a premium of 10% on 6
1-4-2022. It purchased Property, Plant & Equipment of the value of ?
2,50,000 and took over current liabilties of? 40,000 and issued 8%
debentures at a premium of 5% to the vendor. On the same date it took loan
from the B¥nk for 1,00,000 and issued 8% debentures as Collateral
Security. Record the relevant journal entries in the books of P Ltd. and
prepare the extract of balance sheet on 31-3-2023. Ignore interest.
32 i)Sonu Ltd., forfeited 800 shares of 10 each, 7.50 paid, for non-payment 6
of Final Call of ? 2.50 per share. Out of these, 600 shares were re-issued as
fully paid up in such a way that 2,100 were transferred to capital reserve.
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 Pass nccessary journal entries.

ii) X Ltd., forfeited 800 shares of? 10 cach, 7.50 called-up, for non re
payment of First Call of 2.50 per share. Out of these, 600 shares were
issued for ? 6 per share as 7.50 paid up, Pass neccssary journalentries.
iii)400 shares of I0, on which 8 has been called and 6 has been paid,
are forfeited. Out of these, 300 are re-issued for 7as fully paid. Pass
necessary journal entries
OR
On July 01,2022, Panther Ltd, issued 20,000, 9% debenture of Rs.100each at
8% premium and redeemable at a premium of 15% in four equal instalments
starting from the end of the third year. The balance in Securities Premium on
the date of issue of debentures was Rs. 80,000. Interest on debentures was to
be paid on March 3 levery year.
Pass Journal entries for the financial year 2022-23. Also prepare Loss on
Issue of Debenture Account

33
I) On the basis of the information given below, calculate: i) Gross profit ratio6
ii) inventory turnover ratio iii) working capital turnover ratio.
Revenue from operations Rs.7,87,500; Cost of revenue from operations
Rs.3,95,600; current liabilities Rs.2,37,000; Current assets Rs.3,99,000; and
average inventory Rs.1,97,800.
) Acompany had a liquid ratio of 1.5:l and curent ratio of 2:1. Its
inventory turnover ratio was 6 times. It bad a total current asset of
Rs.2,00,000. Find out revenue from operations if the goods are sold at 25%
profit on cost.
III) Gross profit ratio of a company was 25%. Its cash sales were Rs.2,00,000
and credit sales were 90% of the total sales. If the indirect expenses of the
company were Rs. 20,000, calculate net profit ratio
34 Following is the Balance sheet of J.M.Itd. as at 31.3.2016
J.M.Ltd
Balance sheet as at 31.3.2016

Particulars Note 31.3.2016 31.3.2015

no

I. Equity and Liabilities

1. Sharelholders Fund
a) Share capital 2,25,000 1,75,000
b) Reserves and Surplus 1,12,500 56,250
2. Non-Current Liabilities
a) Long term borrowings 2 1,12,500 87,500
3. Current Liabilities
a) Short term borrowings 3 37,500 18,750

Total 4,87,500 3,37,500

IIAssets:
1.Non-current assets

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 a) Fixed Assets
i) Tangible 4 3,66,250 2,28,750
ii) Intangible 5 25,000 37,500
b) Non-current Investments 37,500 25,000
2.Current assets
10.000 17500
a)Current Investments
b) Inventories 30,500 18,000
c) cash and cash equivalents 18,250 10,750

4,87,500 3,37,509

Notes to accounts:
Particulars 31.3.2016( 31.3.2015(Rs
S
No Rs)
Reserves and Surplus
1,12,500 56,250
(surplus, i.e., Balance in
statement of profit and Loss)

Long Term borrowings: 12%o 1,12,500 87,500

2
Debentures
Short-term borrowings: Bank 37,500 18,750
3
Overdraft
4 Tangible Asseis: 2,63,750
Machinery 4,18,750
Accumulated Depreciation (52,500) (35,000)
3,66,250 2,28,750
Intangible Assets: Goodwill 25,000 37,500
Inventory: Stock in trade 30,500 18,000
Contingent Liabiiities: Proposed 50,000 31,250
dividend

Additional information:
1. Rs 25,000, 12% debentures were issued on 31-3-2016
2. During the year, a piece of Machinery costing Rs. 20,000, on which
accumulated depreciation was Rs. 10,000 was sold at a loss of Rs.
2,500.
Prepare Cash flow statement

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