KENDRIYA VIDYALAYA SANGATHAN, DEHRADUN REGION

PRE-BOARD EXAMINATION- 2024-25

XII / ACCOUNTANCY (055)

Time Allowed: 3 Hours M.M: 80

GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
4. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
5. Questions Nos. from 21 ,22 and 33 carries 4 marks each
6. Questions Nos. from 23 to 26 and 34 carries 6 marks each
7. There is no overall choice. However, an internal choice has been provided in 7 questionsof one
mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.

Q.N0. PART A Marks

(Accounting for Partnership Firms and Companies)
1. Anu and Manu share profits in the ratio of 3:2. Their capitals are ₹ 40,000 and ₹ 30,000 1
respectively. Sonu is admitted for 1/5 share in profits. What is the amount of capital
which Sonu should bring?
(a) ₹ 17,500
(b) ₹ 16,000
(c) ₹ 1,00,000
(d) ₹ 64,000
2. X, Y and Z are partners sharing profits in the ratio of 4:3:2. Y retires and the goodwill of 1
the firm is valued at ₹18,000. Y's share of goodwill will be:
(a) ₹18,000
(b) ₹8,000
(c) ₹10,000
(d) ₹6,000
3. A, B and C are partners in the ratio of 5:3:2. Before B's salary of ₹ 34,000 firm's profit is 1
₹ 1, 84,000. How much in total B will receive from the firm?
(a) ₹ 55,200
(b) ₹ 79,000
(c) ₹ 89,200
(d) (d) ₹ 45,000
4. Goodwill is 1
(a) Tangible asset
(b) Intangible asset
(c) Fictitious asset
(d) Both (b) & (c)
OR
In the absence of Partnership Agreement , interest on Drawings of a partner is charged
(a) @ 8% per annum (b) @ 6 % per annum
(c) @ 12% per annum (d) No interest is charged
5. Jaya Ltd. forfeited 7000 equity shares of ₹ 100 each issued at a premium of 10%, for non- 1
payment of first and final call of ₹ 40 per share. The maximum amount of discount at which
these shares can be reissued will be:
(a) ₹ 2,80,000
(b) ₹ 3,50,000
(c) ₹ 4,90,000
(d) (d) None of these
OR
When debentures are issued at a discount but are redeemable at a par, which of the
following account will be debited at the time of issue.
(a) Discount on issue of Debentures A/c
(b) Loss on issue of Debentures A/c
(c) Premium on redemption of deb. A/c
(d) Securities Premium A/c
6. Diggi Ltd invited applications for 8,000 shares of ₹10 each at the issue price of 1
₹10.Applications were received for 7,600 shares. What will be the amount
received on application?
(a) ₹76,000
(b) ₹72,000
(c) ₹84,000
(d) ₹80,000
7. J. Ltd. Re-issue 2,000 shares, which were forfeited by crediting share forfeiture account by 7
₹ 3,000.These shares were Re-issued at ₹ 9 per share. The amount transferred to capital
reserve will be:
(a) ₹ 3,000
(b) ₹ 2,000
(c) ₹ 1000
(d) Nil
Or
Money received in advance from shareholders before it is actually called-up by the
directors is:
A. Debited to calls in arrear account
B. Credited to calls in advance account
C. Debited to calls in advance account
D. Credited to calls in arrear account
8. According to Table E of the Companies Act, 2013 interest on calls in arrears charged should not 8
exceed:
(a) 5% p.a.
(b) 6% p.a.
(c) 8%p.a.
(d) 10%p.a.
 In the following questions (QNo. 9 & 10) statement of Assertion is followed by statement of
Reason.
Mark the correct choice as-
(a). Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
(b). Both Assertion and Reason are true and Reason is not the correct explanation of Assertion.
(c). Assertion is true and the Reason is false.
(d). Assertion is false but Reason is true

9. Assertion: Partners share profit and loss equally.

Reason: Partnership is the relation between persons who have agreed to share the profits
of business carried on by all or any of them acting for all.

10. 1
Assertion: Secret partner does not participate in the affairs of management.
Reason: The secret partner is liable to pay debts of the firm.

11. A B and C were partners in a firm sharing profits in the ratio of 3:2:1. B was guarantee 1
profit of ₹ 2, 00,000. During the year the firm earned a profit of ₹ 84,000. Calculate the net
(c) ₹45,300
amount of Profit or Loss transferred to the Capital Account of C.
(a) ₹ 87,000
(b) ₹ 29,000
(c) ₹ 25,000
(d) ) ₹ 75,000

12. 10,000 equity shares of Rs. 10 each were issued to public at a premium of ₹ 2 per share 1
payable onallotment.Applications were received for ₹ 12,000 shares. Amount of securities
premium account will be :
(a) ₹ 20,000
(b) ₹ 24,000
(c) ₹ 4,000
(d) ₹ 1,600

13. A and B share profits in the ratio of 3:4. C is admitted for 1/5th share. New Profit-sharing 1
Ratio will be
(a) 3:4:1
(b) 12:16:7
(c) 16:12:7
(d) 12:6 :7
14. Chaya, Kaya and Maya are equal partners At the time of Nannu’s retirement. Workmen 1
compensation Reserve (WCR) appears in the books at ₹ 70,000 and the claim of ₹25,000
was against it. The amount of WCR credited to Nannu’s Capital account will be:-
(a) ₹ 33,300
(b) ₹ 15,000
(c) ₹ 45,000
(d) ₹ 95,000
OR
Kamal and Beena are partners in a firm with capital of ₹ 18,000 and ₹ 20,000. Naveen
brings ₹10,000 for his share ofgoodwill and he is required to bring proportionate capital
for 1/3rd share in profits. The capital contribution of Naveen will be
(a). ₹ 24,000 (b) ₹ 19,000 (c) ₹ 12,667 (d) ₹ 14,000

15. X and Y are partners. Y draws a fixed amount at the end of every quarter. Interest on 1
drawings is charged @ 15% p.a. At the end of the year interest on Y’s drawings
amounted to ₹ 9,000. Drawings of Y were:
a)₹24,000 per quarter
b) ₹40,000 per quarter
c)₹30,000 per quarter
d)₹80,000 per quarter
OR
Which one of the following items cannot be recorded in the profit and loss appropriation
Account?
(a) Interest on capital
(b) Interest on drawings
(c) Rent paid to partners
(d) Partner’s salary
16. Sundry debtors are appearing at ₹ 2, 16,000 and provision for doubtful debts at ₹ 1
12,000 in the balance sheet before dissolution. The sundry debtors will be transferred
at which figure in realization account:
(a) ₹ 1,16,000
(b) ₹ 2,36,000
(c) ₹ 2,16,000
(d) ₹ 2, 00,000.
17. A, B and C are sharing profits in the ratio 0f 3:2:1. B dies on 1st september 2015 and on the 3
date of B’s death the goodwill is valued at Rs. 60,000. A and C decided to share future profits in the
ratio of 3:2.In order to arrange funds to make payment to B’s executors, the firm took a loan from
PNB @ 18% p.a. and full settlement was made to B’s executors.
You are required to:- Pass journal entry for treatment of goodwill with show proper
working note.
18. Abhijeet, Bandhu and Charan are in partnership for sharing profits in the ratio of 5:3:2. Their fixed 3
capitals as on 31st March 2020 were Rs 2,00,000; Rs. 2,00,000 and Rs 1,00,000 respectively
their drawing
were ₹ 10,000 each. After distribution of annual profits of ₹ 90,000 it was discovered

thatInterest on Capital was credited to all partners @ 12% p.a. in place of 10% p.a. and interest
ondrawings @ 10% p.a. was omitted in respect of Bandhu.

Pass single adjustment entry to rectify the errors and show workings clearly.
OR
Veena, Meena and Sheena are partners sharing profits in the ratio of 3:2:1. Their capitals on 1st
April 2019 were ₹ 5,00,000; ₹ 3,00,000 and ₹ 2,00,000 respectively. As per the partnership deed
partners are entitled to 10% p.a. interest on capital. Sheena is guaranteed a minimum profit of ₹
45,000 p.a. Deficiency (if any) will be borne by Veena and Meena in the ratio of 3:2.
The firm incurred a loss of ₹ 90,000 for the year ended 31st March 2020.
Give necessary entries giving effect to the minimum guaranteed profit to Sheena.

19. 3
M Ltd. purchased from C. Ltd., computers of ₹ 3,00,000 and software for ₹ 5,00,000
Payable ₹ 80,000 by cheque and balance by issue of 7% Debentures of ₹ 100 each at a discount
of 10%. The company has balance in Securities Premium Reserve of ₹ 40,000 and in
Capital Reserve of ₹ 25,000. Pass the Necessary journal entries in the books of M Ltd.
OR
Yashika Ltd took over the assets of ₹ 15, 00,000 and liabilities of Parul Ltd. Thepurchase
consideration of ₹ 13, 68,500; ₹ 25,500 were paid by issuing a promissory note
in favour of Parul Ltd. payable after two months and the balance was paid by issue of
Equity shares of ₹ 100 each at a premium of 25%. /
Pass necessary journal entries for the above transaction in the books of Yashika Ltd.

20. 3
X, Y and Z are partners in a firm of sharing profits in the ratio of 2:2:1. X retires and after
all adjustments the capitals A/c of X and Y showed balance of ₹ 70,000 and ₹ 50.000
respectively. They decided to adjust there capitals in new profit sharing ratio bywithdrawing
or bringing in cash.
Give necessary journal entries.
21 On 1st April 2018, Ginni Filaments Ltd. was formed with an authorized capital of ₹10,00,000
divided into 1,00,000 Equity Shares of ₹10 each. The company issued prospectus inviting
applications for 90,000 equity shares. The company received applications for 85,000 shares. During
the first year, ₹8 were called. Vasu holding 1,000 shares &Vidhi holding 2,000 shares did not pay
the first call of ₹2 per share. Vidhi’s shares were forfeited after the first call and later on 1,500 of
the forfeited shares were reissued at ₹6 per share, ₹8 called up.
Show share capital in the Balance Sheet of the company as per Schedule – III, Part – I
of the Companies Act, 2013. Also prepare Notes to the Account for the same.

Ashish and Kanav were partners in a firm sharing profits and losses in the ratio of3:2. On31st 4
22. March, 2024 their balance sheet was as follows:
Balance Sheet of Ashish and Kanav as at 31” March, 2024
Liabilities Amt (₹) Assets Amt (₹)
Trade Creditors 42,000 Bank 35,000
Employees Provident Fund 60,000 Stock 24,000
Mrs. Ashish's Loan 9,000 Debtors 19,000
Kanav's Loan 35,000 Furniture 40,000
Workmen's Compensation Fund 20,000 Plant 2,10,000
Investment Fluctuation Reserve 4,000 Investments 32,000
Profit & Loss Account 10,000
Capital’s:
Manav - 1,20,000
Kanav - 80,000 2,00,000
3,70,000 3,70,000

On the above date, they decided to dissolve the firm.

(a) Ashish agreed to take over furniture at ₹ 38,000 and pay off Mrs. Ashish's loan.
(b) Debtors realized ₹ 18,500 and plant realized 10% more.
(c) Kanav took over 40% of the stock at 20% less than the book value. Remaining
stock was sold at a gain of 10%.
(d) Trade creditors took over investments in full settlement.
(e) Kanav agreed to take over the responsibility of completing dissolution at an agreed
remuneration of ₹ 12,000 and to bear realization expenses. Actual expenses of
realizationamounted to ₹ 8,000.
Prepare Realisation Account.

23. A company offered 1,00,000shares of ₹10 each payable as₹3 on application,₹ 2.50 on allotment, 4
₹ 2.50 on 1st call and ₹ 2 on the final call.
The public applied for 1,52,000 shares. The shares were allotted on a pro-rata basis to the
applicants of 1,50,000 shares. All shareholders paid the allotment money excepting one
shareholder who was allotted 200 shares. These shares were forfeited. The first call was made
thereafter. The forfeited shares were re-issued @ ₹ 9 per share ₹ 8 paid up. The final call was not
yet made.
You are required to pass necessary journal entries.
OR
 Y Ltd. appointed marketing expert, Mr. Kapil as the CEO of the company, with a target to 6
penetrate their roots in the rural regions. Mr. Kapil 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
₹5,25,000. Y 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
April1,2020, 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) Calculate the number of debentures to be issued to raise additional funds.
(ii) Pass Journal entry for the issue 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.

24 X and Y were partners sharing profits in the ratio of 1: 2. Their Balance Sheet as at 31st March.
2023 was as follows:

Liabilities ₹ Assets ₹
Creditors 36,000 Cash 20,000
Outstanding Expenses 4,000
Capitals: Debtors 40,000
X 1,50,000 Less: Provision for bad debts 500 39,500
Y 3,00,000 --------
--------------------------- 4,50,000 Stock 1,20,000
Furniture 30,000
Plant 2,72,500
Patents 8,000

4,90,000 4,90,000
They agreed to admit Z forth share from 1st April, 2023 on the following terms:
(i) Goodwill of the firm was valued at ₹60,000 and Z to bring in his share of premium for
goodwill in cash.
(ii) Provision for bad debts is raised by ₹1,500.
(iii) Patents are valueless.
(iv) Stock is reduced by 10%.
(v) Outstanding expenses are increased by ₹ 6,000.
(vi) ₹ 2,500 be provided for an unforeseen liability
(vii) Z to bring in Capital equal to 1/5th of the combined capital of X and Y.
Prepare Revaluation Account, Partner's Capital Accounts
OR
 A, B and C were partners in a firm sharing profits in 2:2:1 ratio, On 31.3.2023 C retiresfromthefirm. 6
On the date of C’s retirement, the Balance Sheet of the firm was as follows:
Balance Sheet of A, B and C as at 31.3.2023
Liabilities ₹ Assets ₹
Creditors 54,000 Bank 55,000
Bill Payable 24,000 Debtor
Outstanding Rent 4,400 12,000 11,200
Provision for Legal Claim 12,000 Less: Provision for Doubtful 8,00 18,000
Capitals: Stock 8,200
A 92,000 Furniture 1,94,000
B 60,000 Premises
C 40,000 1,92,000
2,86,400 2,86,400
On C’s retirement it was agreed that:
(a) Premises will be appreciated by 5%.
(b) Furniture will be appreciated by ₹ 2,000.
(c) Stock will be depreciated by 10%.
(d) Provision for bad debts was to be made at 5% on debtors.
(e) Provision legal damages to be made for ₹ 14,400.
(f) Goodwill of the firm is valued at ₹ 48,000.
(g) ₹ 50,000 from Cs Capital A/c will be transferred to his Loan A/c and balance will be paid
by cheque.
Prepare Revaluation A/c, Partners Capital A/c’s and Balance Sheet of A and B after
C’s Retirement.
25 M, N and O were partners in a firm sharing profits and losses in the ratio of 5:4:1.Their Balance 6
Sheet as at 31st March, 2023 was as follows:
BALANCE SHEET OF M, N AND, O
as at 31st March, 2023
Liabilities ₹ Assets ₹
Capitals: Plant and Machinery 5,50,000
M 3,00,000 Stock 1,20,000
N 2,00,000 Cash 40,000
O 1,00,000 6,00000 Debtors 1,30,000
------------------------- Advertisement Expenditure 20,000
Sundry Creditors 1,10,000
Profits for the year 2022-23 1,50,000
8,60,000 8,60,000

M died on30th June,2023.According to the partnership deed, in addition to the deceased partner's
capital, the executors are entitled to:
(i) His share in profits till the date of death on the basis of average profits of the last two years.The
profit for the year 2021-22 was ₹ 50,000.
(ii) His share in the goodwill of the firm. Goodwill was to be calculated on the basis of two years'
purchase of the average profits of the last two years.
(iii) M, withdrew ₹ 60,000 on 1st June, 2023.
PrepareM's Capital Account which is to be rendered to his executor.
26. Pass necessary journal entries for the forfeiture and re-issue of shares in the following cases: 6
(i) Ashu Ltd. forfeited 1,000 shares of ₹ 10 each, (₹ 8 called up) issued at a premium of ₹ 2 per
share to Mr. R, for non-payment of allotment money of ₹ 5 per share (including premium). Out
of these, 800 shares were re-issued to Mr. Sanjay as ₹ 8 called for ₹ 7 per share.

(ii). Gaur Ltd. forfeited 300 shares of ₹ 10 each (fully called up), issued at a premium of 20 on
which only application money of ₹ 3 per share was received. Out of these, 200 shares were
re-issued at a discount of 3 per share.

PART-B
(ANAYLYSIS OF FINANCIAL STATEMENTS)

27. Higher the ratio, lower is the profitability, is applicable to: 1

(a)Gross profit ratio (b )Operating ratio
(c)Net profit ratio (d) Earnings per share
OR
Electricity and telephone expenses paid by the company are shown in statement of profit and
loss as :
(a)Cost of materials consumed (b)Other income
(c)Other expenses (d)None of the above

28. Which ratio measures the velocity of conversion of stock into sales? 1
(a)working capital turnover ratio (b) inventory turnover ratio
(c)current ratio (d)liquid ratio

29. In case of a financial enterprise, dividend received will be shown under: 1

(a)Financing activities (b)Investing activities
(c)Operating activities (d)None of the above
OR
Compute Net Cash flow from investing activities from the information given below:
Particulars 31.03.2022 31.03.2023
₹. ₹.
MachineryA/c 6,00,000 8,00,000
Accumulated Depreciation/c (2,00,000) (2,50,000)

During the year Machine costing₹.1,50,000 with accumulated depreciation ₹.60,000 was sold
at a profit of ₹.10,000.
(a) (₹.2,50,000) ( b)₹.2,00,000
(c) ₹.2,25,000 (d)₹.2,50,000

30. Assertion (A) :issue of bonus shares has no effect on cash. 1

Reason(R): it is case of capitalization of reserves.
(a) Assertion and reason are correct, but reason is the correct explanation of assertion.
(b) Assertion and reason are correct, but reason is not the correct explanation of assertion.
(c) Assertion is correct but reason is not correct
(d) Assertion is not correct but reason is correct
31. Classify the following items under Major head andSubheadintheBalanceSheetasperSchedule III 3
of the Companies Act, 2013:
(i) Loose Tools
(ii) Unpaid Dividend
(iii) Copyright and Patents
(iv) Land and Building
(v) Outstanding Salaries
(vi) Capital Advances
32. 3
(a) The Revenue from operation of a firm is ₹ 600000. Its inventory turnover ratio is 3 times. If

gross profit ratio is 25% calculate its opening inventory and closing inventory. The opening
inventory is 25% of closing inventory.

(b). Net profit after interest and tax ₹ 100000, Current Assets ₹ 400000, Current liabilities ₹
200000, Tax rate 20%, Non-Current assets ₹ 600000, 10% Long term debt ₹ 400000.
Calculate Return on Investment.

33. Following is the statement of Profit and Loss of Sun India Ltd. for the year ended 31st March, 4
2023:
Particulars Note 31.3.2023 31.3.2022
No.
Revenue from 2500000 2000000
Operations
Other Incomes 100000 500000
Employee benefits 60% of Total 50% of Total
Revenue Revenue
expenses
Other Expenses 10% of 20%ofEmployee
Employ Benefits
ee
Benefits Expenses
Expenses
TaxRate 50% 40%
You are required to prepare a Comparative Statement of Profit and Loss of Sun India Ltd.
OR
Prepare Common Size statement of Profit and Loss from the following information

Particulars 31st March 2024 31st March 2023

Revenue from operations 10,00,000 7,50,000
Other income 1,00,000 75,000
Purchases of stock in trade 7,50,000 6,00,000
Changes of inventories of stock in trade (50,000) 10,000

Rate of Income tax 50% 50%

34. From the following Balance Sheet of XYZ Ltd., prepare Cash Flow Statement: 6

Particulars NoteNo. 31-3-2023 31-3-2022

I. EQUITY AND LIABILITIES: ₹ ₹
(1) Shareholder's Funds
(a) Share Capital 1 290000 250000
(b) Reserve &Surplus 152000 50000
(2) Current Liabilities:
(a)TradePayables 5000 23000
(b) Short term Provision 2 35000 27000
TOTAL 482000 350000
II. ASSETS:
(1) Non-Current Assets:
(a)Property,PlantandEquipmentand Intangible
Assets: 150000 140000
(i)Property,PlantandEquipment 20000 30000
(ii) Intangible Assets
(2) Current Assets: 95000 45000
(a) Inventory 200000 120000
(b)TradeReceivables 17000 15000
482000 350000
(c) Cash& Cash Equivalents
TOTAL
NOTES: (1) Share Capital 31-3-2023 31-3-2022
Equity Share capital 250000 200000
Preference share Capital 40000 50000
-------------- -----------
2 90 000 250000
(2) Short term Provision:
Provision for tax 35.000 27,000

(3) Property, Plant and Equipment

Building 80000 100000
Plant 70000 40000

150000 140000
========== ========
Additional Informations:
(i) Depreciation charged on Plant was ₹ 30,000 and on Building ₹ 50,000.
(ii) Income Tax paid during the year amounted to ₹ 25,000
 KENDRIYA VIDYALAYA SANGATHAN DEHRADUN REGION
PRE -BOARD EXAMINATION – 2024-25
CLASS: XII SUB: ACCOUNTANCY (055) TIME: 3 Hrs M.M: 80
MARKING SCHEME
Q. SOLUTION MARK
N S
o.
1. (a)1-1/5= For 4/5th share combined capital of A and B is ₹70,000 1
Total Capital will be 70,000X 5/4=₹87,500 and its one fifth share= ₹17,500
2. (d) Rs. 6,000 1
3. (d) none of these OR (a) Discount on issue of debentures 1
4. (b) Intangible asset OR (d) No interest is charged 1
5. (b) Rs 79,000 1
6. (a). Rs. 76,000 1
7. (c) Rs. 1,000 1
8. (d). 10% p.a 1
9. (d) 1
10 (c) 1
.
11 (b). 1
.
12 (a) Rs.20,000 1
.
13 (b). 1
.
14 (b). Rs 15,000 OR (a). Rs. 24,000 1
.
15 (b) Rs. 40,000 OR (c) Rent paid to partners. 1
.
16 (c) Rs, 2,16,000 1
.
17 By paying full dues to B’s executors value of expression of gratitude is shown towards 3
. deceased partner.
Particulars Dr(Amt) Cr(Amt)
A’s capital A/c Dr. 6,000
C’scapitalA/c Dr. 14,000
ToB’sCapitalA/c… 20,000
Gaining ratio is 3:7
2 mark journal entry and 1 mark for calculation of goodwill
18 Working note: 3
. Particulars Abhijeet Bandhu Charan Firm OR
Interest on 4000 (Dr.) 4000 (Dr.) 2000 (Dr.) 10000 (Cr.) 1.5 X 2
capital
excess
credited by
2%
 Interest on 500 (Dr.) 500 (Cr.)
drawing
note
charged
Net 5250 (Cr.) 3150 (Cr.) 2100 (Cr.) 10500 (Dr.)
divisible
profit
Adjustment 1250 (Cr.) 1350 (Dr.) 100 (Cr.) --
Journal entry
Bandu current A/c Dr. 1350
To Abhijeet Current A/c. 1250
To Charan current A/c. 100
(adjustment entry)
OR
(i) Veena’sCapitalA/cDr.45,000 Meena’sCapital A/c Dr.
Sheena’sCapitalA/cDr.15,000
ToProfitandLossA/c90,000
(Beinglossdistributedamongthepartners)

(ii) Veena’s Capital A/c Dr. 36,000

Meena’sCapitalA/cDr.24,000
ToSheena’sCapitalA/c60,000
(Beingadjustmentmadefordeficiency)
19 (i) Computers account Dr. 300000 3
. Softwares A/c Dr. 500000
TO C Ltd. 800000
(ii). C Ltd. Dr. 800000
Discount on issue of debentures A/c Dr. 80,000
TO Bank A/c. 80,000
TO 7% debentures A/c 800000
(iii). Sec. prem. Reserve A/c Dr. 40,000
Capital resrve A/c Dr. 25,000
Statement of P & L A/c Dr. 15,000
To discount on issue of debentures 80,000.
OR
(i) Sundry assets A/c Dr. 1500000.
Goodwill A/c Dr. 368500
TO Sundry liabilities A/c 500000
TO P Ltd. 1368500
(ii). P Ltd. Dr. 1368500
TO B/P A/c. 25500
TO equity share capital a/C 1074400
To Sec. prem. Reserve A/c 268600.
20 Date Particulars L.F. Dr. Cr. 3
. 31.03.2018 Bank A/c Dr. 10,000
To Y’s capital A/c 10,000
(Amount to be brought in by Y)
Z’s capital A/c Dr. 10,000
To Bank A/c 10,000
(Amount to be withdrawn by Z)
21 BalanceSheetofGinniFilamentsLtd.(AnExtract) 4
. Asat31st March, 2019

Particulars Note No. Amount (Rs.)

I.EQUITY AND LIABILITY
Share holders funds
Share capital 1 6,77,000
Notes to A/c (Share Capital)
Particulars Amount
Authorised Capital: 10,00,000
1,00,000 equity shares@ Rs. 10 each
Issued Capital: 9,00,000
90,000 equity shares @ Rs. 10 each
Subscribed capital:
Subscribed but not fully paid up
84,500 equity shares of Rs. 8 called up 6,76,000
Less: calls in arrear (1000 X 2) (2000)
Add share forfeiture A/c (500X6) (3000) 6,77,000

22 Dr. Realisation A/c Cr.

 4

Particulars Rs. Particulars

To SundryAssets BySundryLiabilities
Stock- 24,000 TradeCreditors-42,000
Debtors- 19,000 Emp Prov.Fund-60,000
Furniture-40,000 Mrs.Ashish'sLoan-9,000 1,11,000
Plant-2,10,000 ByInvestmentFluctuation
Investment-32,000 3,25,000 Reserve 4,000

ToAshish'sC ByAshish'sCapitalA/c(F 38,000

apitalA/c urniture)
(Mrs.Ash By Bank A/c (Assets):
ish's Debtors 18,500
Loan) 9,000 Plant 2,31,000 2,65,340
ToKanav'sCapitalA/c Stock 15,840
(Remuneration) ByKanav's 7,680
ToBankA/c(EPF) 12,000 CapitalA/c(Stock)
ToPartners'CapitalA/c
(Gain): 60,000
Ashish A/c - 12012
KanavA/c- 8008

20,020
4,26,020 4,26,020
23 JOURNAL 6
. Date Particulars L.F ₹ ₹
Bank A/c Dr. 456000
ToShareApplication A/c 456000
(Application money received on 1,52,000
shares (@3 per share)
Share Application A/c Dr. 456000
To Share Capital A/c 300000
ToShareAllotmentA/c 150000
To Bank A/c 6000
(Application money adjusted)
Share Allotment A/c Dr. 250000
ToShareCapital A/c 250000
(Allotment money due on 1,00,000
shares@2.50)
Bank A/c Dr. 99800
Calls in Arrears A/c Dr. 200
ToShareAllotment A/c 100000
(Allotment money received on 99,800
shares)
 Share Capital A/c (200 x 5.50) 1100
ToCallsinArrearsA/c 200
ToShareForfeiture A/c 900
(Forfeiture of 200 shares for non-payment of
allotment money)
Share 1st Call A/cDr. 249500
ToShareCapital A/c 249500
(First call money due on 99,800 shares (@
2.50)
Bank A/cDr. 249500
ToShare1stCallA/c 249500
(First call money received on 99,800 shares
@2.50)
Bank A/cDr. 1800
ToShareCapital A/c 1600
ToSecuritiesPremium A/c 200
(Re-issue of 200 shares (@9 per share; 8
paid up)
Share Forfeiture A/c 900
ToCapitalReserve A/c 900
(Transferofprofiton reissue
Working Note
(1) Excess amount received from the holder of 200 shares on application :
The shareholder who has been allotted 200 shares must have applied for more shares
If shares allotted were 1,00,000, shares applied for were = 1,50,000
If shares allotted were 200, shares applied for were =150000/100000x200=300
Excess application money received from him:
300 shares -200 shares = 100 shares x 3 =300
(ii) ) Amount due on allotment on these shares = 200 shares x 2.50 =500
Less : Excess received on these shares on application =300
Amount not received on allotment 200
(iii)Totalamnountdueonallotnent=1,00,000sharesx2.50 =250000
Less : Excess received on application 150000

100000
Amount not received on allotment 200

Net amount received onallotment 99800

========
23 OR 6
(i) Number of Debentures to be issued = 5,25,000/105 = 50,000 1M
(ii) Bank A/c Dr. 5,25,000
To Debenture Application & Allotment A/c 525,000
½M
 Debenture Application & Allotment A/c Dr. 525,000
Loss on Issue of Debentures A/c Dr. 75,000
To 6% Debentures A/c 5,00,000
To Securities Premium Reserve A/c 25,000
To Premium on Redemption of Debentures A/c 50,000
1½M
(iii) Securities Premium Reserve A/c Dr. 25,000
Statement of Profit & Loss Dr. 25,000
To Loss on Issue of Debentures A/c 50,000 1M
(iv) Interest on 6% debentures = 5,00,000 x 6 /100 = ₹30,000 1M
(v)1 Mark for loss on issue of debenture account

24 2 marks for Loss onRevaluation A/c₹ 30000 6

2marksforPartners’CapitalAccountsX₹144000,Y₹288000ANDZ,₹86400
2 marks for Balance Sheet₹ 566900

OR
2 marks for Profit on Revaluation A/c 7400
2marksforPartners’CapitalAccountsA,90,280B,58,280
2 marks for Balance Sheet 2,95,360
25 Particulars ₹ Particulars ₹ 6
ToDrawings 60000 By Balance b/d 300000
ToAdvertisement 10000 By Profit and Loss A/c 75000
Expenditure A/e 417500 ByP&LSuspenseA/C 12500
ToO,ExecutorsA/e By M,s Capital A/c 80000
(Balancing Figure) By N,sCapital A/c 20000

487500 487500
26 (i) Capitalreserve₹3200 6
(ii) Capital reserveNIL
PART B [ANALYSIS OF FINANCIAL STATEMENTS]
27 b) operating ratio 1
OR
(c) other expenses

28 (b) Inventory Turnover Ratio 1

29 (c) Operating Activities 1
OR
(a) ( ₹2,50,000)
30 (a) 1
31 S.No. Item Heading Sub-heading 05.X6
i. LooseTools CurrentAssets Inventories
ii. Unpaid Dividend CurrentLiabilities Other Current
Liabilities
iii. Copyright and Patents Non Current
Asset Intangible
Assets

iv. Land and Buliding Non Current Tangible Assets

Assets
v. Outstanding Salaries Current Other current
Liabilities liabilities
vi. Capital and Advances Non-Current Long term loans
Assets and advances
32 A) 3

Cost of Revenue from Operations = Revenue from Operations - Gross Profit=

6,00,000 - 25% of 6,00,000
= 6,00,000 - 1,50,000 =4,50,000
Inventory Turnover Ratio = Cost of Revenue from Operations/ Average Inventory
3 (Given) = 4,50,000/ Average Inventory
Average Inventory = 4,50,000/3 = 150000
Opening Inventory + Closing Inventory = Average Inventory x 2
150000 x 3,00,000
Since Opening Inventory is 25% of Closing Inventory, ratio between Opening
Inventoryand Closing Inventory will be 25 : 100 Or 1:4
Opening Inventory = 3,00,000x1/5
= 60000
Closing Inventory = 3,00,000x4/5
= 2,40,000
(B)
Return on Investment = Net Profit before Interest and Tax/Capital employed x100
Calculation of Net Profit before Interest and Tax
Net Profit after Tax=1,00,000
Net Profit before Tax =1,00,000 x100/80 =125000
Net profit before Interest and Tax = 1,25,000 + Interest 40000 =165000
Capital Employed= Non Current Assets + Current Assets-CurrentLiabilities
6,00,000 + 4,00,000 - 2,00,000 =800000
Return on Investment = 165000 x 100/800000 = 20.625%
33 Comparative Statement of Profit & Loss of Sun India Ltd. 4

Particulars 31.03.2022 31.03.2023 Absolute Percentage

change (Rs.) change (%)
A. Revenue from 200000 250000 50000 25
operations
B. Add: Other 500000 100000 (400000) (80)
Income
C. Total 2500000 2600000 100000 4
Revenue(A+B)
D. Less: Employee 1250000 1560000 310000 24.8
benefit exp.
Other expenses. 250000 156000 (94000) (37.8)
Total Expenses. 1500000 1716000 216000 14.4
E. Profits before 1000000 884000 (116000) (11.6)
Tax (C-D)
F. Tax Rate 400000 442000 42000 10.5
G. Profits after 600000 442000 (158000) (26.33)
Tax(E-F)

OR
Common Size Statement
Particular 31.03.2017(Rs.) 31.03.2018(Rs % ON RFO % ON RFO
.) 31.03.2017 31.03.2018
RFO 7,50,000 10,00,000 100 100
Other Income 75,000 1,00,000 10 10

Total Revenue 8,25,000 11,00,000 110 110

Expenses: 6,00,000 7,50,000 80 75
Purchases of Stock in trade
Change in inventories of
Stock in trade 10,000 (50,000) 1.3 (5)
Total Expenses: 6,10,000 7,00,000 81.3 70
Profit before Tax 2,15,000 4,00,000 28.7 40
Less: tax@ 50% 1,07,500 2,00,000 14.35 20
Profit after Tax 1,07,500 2,00,000 14.35 20
34 Cash Flow Statement 2+2+2= 6
Particulars ₹ ₹
A. Cash flows from Operating Activities :
NetprofitbeforeTax(Note1) 135000
Adjustments for non-cash and non-operating items :
Add: Depreciation on Plant 30000
Depreciation on Building 50000
Intangible Assets written off 10000
Operating profit before working capital changes
 Less: Increase in Current Assets : 225000
TradeReceivables 80000
Inventory 50000
Less: Decrease in Current Liabilities:
TradePayables (18000)
------------ 148000
Less:IncomeTaxpaidfortheyear2017 77000
Net cash from Operating Activities 25000 52000
B. Cash flow from Investing Activities :
52000
Purchase of Building2)
Purchase of Plant)
(30000)
Net cash used in investing activities
C. Cash flows from Financing Activities : (60000) (90000)
Issue of Equity Share Capital (90000)
Redemption of Preference Share Capital
Net cash from financing activities 50000
(10000) 40000
Net increase in cash and cash equivalents 40000 2000
Add:Cashandcashequivalentsinthebeginningofthe 15000
period 17000
Cash and cash equivalents at the end of the period
Notes : (1) Calculation of Net Profit before Tax:
Reserve and Surplus Balance on 31st March, 2023 1,52,000
Less Reserve and Surplus Balance on 3 Ist March, 2022 50,000

1,02,000
Add:ProvisionforTaxmadeduringtheCurrent year" 33,000
1,35,000