12 Acc SP 04a

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Class 12 - Accountancy
Sample Paper - 04 (2023-24)
Maximum Marks: 80
Time Allowed: : 3 hours
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. Part - A is compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. Students must
attempt only one of the given options.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21 ,22 and 33 carries 4 marks each
8. Questions from 23 to 26 and 34 carries 6 marks each
9. 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 of four marks and 2 questions of six marks.
1. Part A:- Accounting for Partnership Firms and Companies

2. Admission of a partner is one of the modes of reconstituting the firm under:
A. The old partnership ended and a new one between all partner (including new partner) comes into existence.
B. The new partnership ended and the old one between all partner(including new partner) comes into existence.
C. The old partnership ended and a new one between all partner(excluding new partner) comes into existence.
D. The old partnership ended and a new one between all partner(excluding old partner) comes into existence.
a) (A) b) (B) c) (D) d) (C)
3. Assertion (A): In the absence of a deed, a sleeping partner who contributed 75% of total capital would get 75% of the profit
earned.
Reason (R): A sleeping partner, in the absence of a deed, gets an equal share of profit, irrespective of his capital share.
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.
4. What is the nature of the amount of discount which arises when a company issues shares at discount?
a) Capital receipt
b) Revenue receipt
c) Revenue Expense
d) Capital loss
OR
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.
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b) Bearer Debentures
c) Redeemable Debentures
d) Non-Convertible Debentures
5. R, S and T are partners in a firm sharing profits in the ratio of 3 : 3 : 2. From 1st April, 2023, they decided to share profits in
the ratio of 3 : 2 : 1. On that date their Balance Sheet showed Contingency Reserve of ₹ 1,92,000. They decided to show this
Contingency Reserve in the new Balance Sheet. The correct accounting treatment for the above is:
a) T's capital account will be debited by ₹ 24,000 and R and S’s capital account will be credited by ₹ 8,000 and ₹ 16,000
respectively.
b) S's capital account will be debited by ₹ 24,000 and R and T's capital account will be credited by ₹ 8,000 and ₹ 16,000
respectively.
c) R’s capital account will be debited by ₹ 24,000 and S and T's capital account will be credited by ₹ 8,000 and ₹ 16,000
respectively.
d) S and T's capital account will be debited by ₹ 8,000 and ₹ 16,000 respectively and R’s capital account will be credited
by ₹ 24,000.
OR
When guarantee is given to a partner by the other partners, deficiency on such guarantee will be borne by:
a) Partnership firm
b) All of the other partners
c) None of these
d) Partners who gave the guarantee
6. W and Q are partners with capitals of ₹ 20,00,000 and ₹ 16,00,000 respectively. The Partnership Deed provides for interest
on capital @ 10% p.a. If the firm earned a profit of ₹ 2,70,000 for the year ended 31st March, 2023, then Interest on Capital
respectively credited to the Partners Capital Accounts was:
a) ₹ 2,00,000 and ₹ 1,60,000
b) No interest on capital will be allowed
c) ₹ 1,35,000 and ₹ 1,35,000
d) ₹ 1,50,000 and ₹ 1,20,000
7. Ram Ltd. issued 80,000, 10% Debentures of ₹ 100 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 ₹ 25,00,000 and after writing off
Loss on Issue of Debentures, the balance in Securities Premium was ₹ 5,00,000. At what rate of discount, these debentures
were issued?
a) 15% b) 5% c) 10% d) 25%
OR
Y Limited acquired assets of ₹1,00,00,000 and took over liabilities of ₹40,00,000 from Sita Enterprises. Y Limited issued
8% Debenture of ₹100 each at a premium of 25% as purchase consideration. Calculate the number of debentures issued by
the company.
a) 40,000 b) 45,000 c) 60,000 d) 48,000
8. Assertion (A): Calls-in-arrear is the amount that has not been called by the company but has been paid by the shareholders.
Reason (R): Calls-in-arrear will be shown as a deduction from the subscribed but not fully paid-up capital.
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.

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9. What treatment is made of accumulated profits on the retirement of a partner?
a) Credited to all partner’s capital accounts in old ratio.
b) Debited to all partner’s capital accounts in old ratio.
c) Credited to remaining partner’s capital accounts in new ratio.
d) Credited to remaining partner’s capital accounts in gaining ratio.
OR
G and B are partners in a firm, G withdraw ₹ 800 per month at the beginning of every month for 6 months ending on 31st
December, 2017. B withdraw ₹ 800 per month at the end of every month for 6 months ending on 31st December, 2017.
Calculate interest on drawings @ 15% per annum on 31st December, 2017.
a) G = ₹ 180, B = ₹ 220
b) G = ₹ 210, B = ₹ 150
c) G = ₹ 720, B = ₹ 720
d) G = ₹ 320, B = ₹ 280
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10. Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:
Ankit and Balvant are partners sharing profits equally. Business is being carried from the property owned by Ankit on a
yearly rent of ₹ 24,000. Ankit is to get salary of ₹ 1,20,000 p.a. and Balvant is to get commission @ 5% on net sales, which
was ₹ 30,00,000. Profits for the year ended 31st March, 2019 before providing rent was ₹ 5,00,000.
11. What is the amount of commission payable to Balvant?

a) ₹ 1,50,000
b) ₹ 2,00,000
c) ₹ 1,00,000
d) ₹ 1,20,000
12. What is the profit after charging rent?
a) ₹5,00,000
b) ₹ 3,00,000
c) ₹ 4,76,000
d) ₹ 4,00,000
13. What is the other name of Partnership Deed?
a) Certificate of Registration
b) Articles of Partnership
c) Articles of Association
d) Legal Promissory Note
14. X Ltd. forfeited Rohini’s shares who has applied for 5,000 shares and was allotted 4,000 shares failed to pay allotment
money of ₹ 4 per share (including premium of ₹ 2) on which she had paid application money of ₹ 2 only.
Amount Credited to Forfeited Shares Account will be:
a) ₹ 14,000
b) ₹ 16,000
c) ₹ 2,000
d) ₹ 10,000
15. From which account, expenses on issue of shares will be written-off first of all:
a) Statement of Profit and Loss

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b) Securities Premium Reserve Account
c) Miscellaneous Expenditure Account
d) Share Issue Expenses Account
16. If a firm gives guarantee to partner and in same way partner give guarantee to firm. So, these are two guarantees in same
year. This guarantee, given by firm to partner and partner to firm is called:
a) simultaneous guarantee
b) guarantee by firm
c) guarantee by partner
d) None of these
17. In the absence of an agreement as to who will contribute to new partner's share of profit, it is implied that the old partners
will contribute:
a) In the gaining ratio
b) In the ratio of their capitals
c) Equally
d) In their old profit-sharing ratio
OR
A and B are partners in a firm sharing profits and losses in the ratio 1:2. They admitted C into the partnership and decided to
give him share of the future profits. Find the new ratio of the partners.
1
a) 4:2:3
b) 3:2:1
c) 2:4:3
d) 3:4:2
18. On dissolution, goodwill account is transferred to:
a) On the Debit of Realisation Account
b) On the credit of Cash Account
c) In the Capital Accounts of Partners
d) On the Credit of Realisation Account
19. On what occasions sacrificing ratio is used?
20. When and why rectifying entries are made in the partners’ capital accounts?
OR
Yogesh, Ram and Garima entered into partnership on 1st April 2022 with capitals ₹ 3,00,000, ₹ 2,00,000 and ₹ 1,00,000
respectively. In addition to capital, Garima has advanced a loan of ₹ 1,00,000. Since they had no agreement to guide them,
they faced following issues during and at the end of the year:
i. Yogesh wanted interest on capital to be provided @ 8% p.a. but Ram and Garima did not agree.
ii. Garima wanted that interest on loan be paid to him @ 10% p.a. but Yogesh and Ram wanted to pay @ 5% p.a.
iii. Yogesh and Ram demanded to share profits in the ratio of their capital contribution, Garima is not in agreement with this
proposal.
iv. Ram, being working partner, demands a lump sum payment of ₹ 40,000 as remuneration for which other partners are not
in agreement.
You are required to suggest and help them resolve these issues.
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21. Pass the necessary journal entries for issue of 1,000, 7% debentures of Rs.100 each in the following cases
i. Issued at 5% premium, redeemable at a premium of 10%.
ii. Issued at a discount of 5%, redeemable at par.
OR
Madhur Ltd. took over the assets of ₹3,90,000 and Liabilities of ₹40,000 of Rasova Ltd. for a consideration of ₹4,00,000.
20% was paid by a cheque and the balance by issue of fully paid equity shares of ₹ 100 each at a premium of 60%. Show
necessary journal entries for these transactions in the books of Madhur Ltd.
22. Form the following particulars, calculate value of goodwill of a firm by applying Capitalisation of Average Profit Method:
i. Profits of last five consecutive years ending 31st March are: 2019 - ₹ 54,000; 2018 - ₹ 42,000; 2017 - ₹ 39,000; 2016 - ₹
67,000 and 2015 - ₹ 59,000.
ii. Capitalisation rate 20%.
iii. Net assets of the firm ₹ 2,00,000.
23. Give necessary journal entries:
i. The Directors of Devendra Ltd. resolved on 1st January, 2010 that 100 Equity Shares of ₹ 10 each, ₹ 8 paid-up be
forfeited for non-payment of final call of ₹ 2. On 1st February, 60 of these shares were reissued @ ₹ 7 per share as fully
paid-up.
ii. Virender Limited forfeited 20 shares of ₹ 100 each(₹ 60 called-up) issued at par to Mukesh on which he had paid ₹ 20
per share. Out of these, 15 shares were reissued to Sanjeev as ₹ 60 paid-up for ₹ 45 per share.
24. Pass the necessary journal entries for the following transactions on the dissolution of the firm of S and T after the various
assets (other than cash) and outside liabilities have been transferred to realisation account.
i. S agreed to pay off her husband’s loan Rs. 1,900.
ii. A debtor whose debt of Rs. 930 was written off as bad debts in the books paid Rs. 750 in full settlement.
iii. T took over all investments at Rs. 1,330.
iv. Sundry creditors Rs. 1,000 were paid at 9% discount.
v. Realisation expenses Rs. 340 were paid by S for which she was allowed Rs. 300.
vi. Loss on realisation Rs. 940 was divided between S and T in 3: 2 ratio.
25. 'Y Ltd. invited applications for issuing 15,000 equity shares of ₹10 each ion which ₹6 per share were called up, which were
payable as follows
On application — ₹2 per share
On allotment — ₹1 per share
On first call — ₹3 per share
The issue was fully subscribed and the amount was received as follows
On 10,000 shares — ₹6 per share
The directors forfeited those shares on which less than ₹6 per share were received. The forfeited shares were reissued at ₹9
per share, as ₹6 per share paid-up.
Pass necessary journal entries for the above transactions in the books of the company.
OR
RK Ltd invited applications for issuing 80,000 equity shares of Rs. 10 each at a premium of Rs. 35 per share. The amount
was payable as follows
On application — Rs. 8 (including Rs. 5 premium) per share
On allotment — 12 (including Rs. 10 premium) per share
On first and final call — Balance

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Applications for 75,000 shares were received and allotment was made to all the applicants Rahim, a shareholder who was
allotted 3,000 shares failed to pay allotment money and his shares were immediately forfeited.
Afterwards, the first and final call was made. Suhani who held 3,000 shares failed to pay the final call. Her shares were also
forfeited. All the forfeited shares were reissued for a sum of Rs. 62,000 as fully paid up. Pass necessary journal entries for
the above transactions in the books of RK Ltd.
26. Swadesh and Swaraj were partners sharing profits equally. Their Balance Sheet as at 31st March 2019 was:
Liabilities ₹ Assets ₹
Creditors 50,000 Cash 12,000
Bills Payable 15,000 Cash at Bank 15,000

Outstanding Expenses 3,000 Debtors 20,000
Capital A/cs: Less: Provision for Doubtful Debts 500 19,500
Swadesh 60,000 Stock 20,000

Swaraj 40,000 1,00,000 Furniture 10,000
Machinery 18,000
Land and Building 73,500

1,68,000 1,68,000
Sambhav is admitted as a partner from 1st April, 2019 on the following terms:
i. Sambhav will get 1/5th share in profits and he will bring ₹20,000 as his capital and ₹5,000 as his share of goodwill.
ii. Goodwill brought by Sambhav will be withdrawn by Swadesh and Swaraj.
iii. Provision for Doubtful Debts should be brought up to 5% on Debtors.
iv. Machinery be reduced by ₹2,000 and Furniture by 12.5.
v. Stock be valued at ₹23,000.
vi. Land and Building be appreciated by 20%.
vii. Investments of ₹2,000 which did not appear in books should be recorded.
viii. Out of the amount of insurance premium which was debited to Profit and Loss Account, ₹5,000 be carried forward as
unexpired insurance.
ix. A bill for ₹5,000 for Electricity Expenses was not accounted.
Record necessary journal entries and prepare Balance Sheet of the new firm.
OR
Sushma, Gautam, and Kanika were partners in a firm sharing profits in the ratio of 5:3:2. On 31st March, 2018, their
Balance Sheet was as follows :
Balance Sheet of Sushma, Gautam and Kanika as at 31st March, 2018
Liabilities Amount (Rs.) Assets Amount (Rs.)

Creditors 60,000 Cash at Bank 1,40,000
Employee's Provident Fund 40,000 Sundry Debtors 1,60,000
Profit and Loss Account 1,00,000 Stock 2,40,000

Capitals : Investments 2,00,000

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Sushma 3,00,000 Fixed Assets 3,60,000
Gautam 2,50,000
Kanika 3,50,000 9,00,000
11,00,000 11,00,000
On the above date, Sushma retired and it was agreed that :
i. Fixed Assets will be reduced to Rs.2,90,000.
ii. A provision of 5% on debtors for bad and doubtful debts will be created.
iii. Stock was to be valued at Rs.2,18,000. Sushma took over the stock at this value.
iv. Goodwill of the firm on Sushma’s retirement was valued at Rs.8,00,000. Sushma’s share of goodwill was treated by
debiting Gautam and Kanika’s Capital Accounts.
v. Sushma was paid cash brought by Gautam and Kanika in such a way that their capitals became in profit sharing ratio and
a balance of Rs.58,000 was left in the bank.
vi. Gautam and Kanika will share the future profits in the ratio of 2:3.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm.
27. B, C and D were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31st December, 2008, their balance sheet was
as follows:
Balance Sheet
as on 31st December, 2008
Creditors 43,000 Cash 10,200

Bills Payable 17,000 Stock 24,500
General Reserve 70,000 Debtors 27,300
Capitals: Land and Building 1,40,000

B 40,000 Profit and Loss 70,000
C 50,000
D 52,000 1,42,000
2,72,000 2,72,000
B died on 31st March, 2009. The partnership deed provided for the following on the death of a partner.
i. Goodwill of the firm was to be valued at 3 years’ purchase of the average profits of last 5 years. The total profits for the
years ending 31st December, 2007, 31st December, 2006, 31st December, 2005 and 31st December, 2004 were Rs
70,000, Rs 60,000, Rs 50,000 and Rs 40,000 respectively.
ii. B’s share of profit or loss till the date of his death was to be calculated on the basis of the profits or loss for the year
ending 31st December, 2008.
You are required to calculate the following
i. Goodwill of the firm and B’s share of goodwill at the time of his death.
ii. B’s share in the profit and loss of the firm till the date of his death.

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Prepare B’s capital account at the time of his death to be presented to his executor.
28. i. Vayee Ltd. purchased the following assets of E.X. Ltd.: Land and Building of ₹ 60,00,000 at ₹ 84,00,000; Plant and
Machinery of ₹ 40,00,000 at ₹ 36,00,000.
The purchase consideration was ₹ 1,10,00,000 . The payment was made by accepting a Bill of Exchange in favour of
E.X. Ltd. of ₹ 20,00,000 and remaining by the issue of 8 % debentures of ₹ 100 each at a premium of 20 % Record the
necessary journal entries for the above transactions in the books of Vayee Ltd.
ii. Zed Ltd. issued 2,00,000,8 % debentures of ₹ 100 each at a discount of 6 % redeemable at a premium of 10 % after 5
years. The amount was payable as follows:
On application ₹ 50 per debenture
On allotment balance
Record the necessary journal entries for the issue of debentures in the books of Zed Ltd.
29. Part B :- Analysis of Financial Statements
30. Which of the following is not an objective of Analysis of Financial Statements?
i. To Judge the financial health of the firm.
ii. To judge the short-term and long-term liquidity position of the firm.
iii. To Judge the reasons for change in the profitability of the firm.
iv. To judge the variations in the accounting practices of the business followed by different companies.
a) Option (iv)
b) Option (i)
c) Option (ii)
d) Option (iii)
OR
Share forfeiture account appears in a company’s balance sheet under the sub-head:
a) Commitments
b) Share Capital
c) Contingent Liability
d) Reserve & Surplus
31. The ratio of Current Assets (₹ 6,00,000) to Current Liabilities (₹ 5,00,000) is 1.2 : 1. The accountant of the firm is interested
in maintaining a Current Ratio of 2 : 1, by paying off a part of the Current Liabilities. Current liability paid will be:
a) 3,00,000
b) 2,00,000
c) 1,00,000
d) 4,00,000
32. State whether cash deposited in bank will be classified under which kind of activity?
a) Cash Flow from Operating Activities
b) Cash Flow from Financing Activities
c) Cash Flow from Investing Activities
d) No Cash Flow
OR
An example of cash flow from investing activity is:

a) purchase of raw materials for cash
b) repayment of long-term loan

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c) issue of debenture
d) sale of investment by non-financial enterprise.
33. Which of the following is shown as an addition to financing activities?
a) Redemption of Debentures
b) Decrease in Bank Overdraft
c) Increase in Bank Overdraft
d) Redemption of Preference Shares
34. Compute Cost of Materials Consumed from the following:
₹
Opening Inventory Materials 5,50,000
Finished Goods 2,50,000

Materials Purchased 22,50,000
Closing Inventory Materials 4,50,000
Finished Goods 1,50,000

35. Calculate Trade Receivables Turnover Ratio and Average Collection period:
Credit Revenue from Operations (Net Credit Sales) for the year is ₹ 6,00,000 and Debtors and Bills Receivable at the year-
end were ₹ 60,000 and opening were ₹ 40,000 respectively.
36. From the following information, prepare Comparative Statement of Profit and Loss of X Ltd.:
Particulars 31-3-2023 31-3-2022
₹ ₹
Revenue from Operations 25,00,000 20,00,000
Cost of Materials Consumed 21,00,000 16,00,000

Other Expenses 25% of Gross Profit 20% of Gross Profit
Income Tax 50% 50%
OR
The following balance sheets relate to Modem Computers Ltd. convert these into common size balance sheet and interpret
the same:
BALANCE SHEETS as at 31st March
Particulars Note No. 2017 2016

I. EQUITY AND LIABILITIES :
(1) Shareholder’s Funds:
(a) Share Capital 3,00,000 3,00,000

(b) Reserves and Surplus 6,50,000 4,36,000
(2) Non-Currrent Liabilities:

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Long-term Borrowings 2,50,000 2,00,000
(3) Current Liabilities :
(a) Trade Payables 2,85,000 2,40,000

(b) Short term Provisions 15,000 24,000
15,00,000 12,00,000
I. ASSETS:
(1) Non-Current Assets:
(a) Fixed Assets 5,00,000 5,00,000
(b) Non-Current Investments 3,10,000 1,96,000

(2) Current Assets:
(a) Inventory 3,69,000 2,58,000
(b) Trade Receivables 2,25,000 1,98,000

(c) Cash & Cash Equivalents 96,000 48,000
15,00,000 12,00,000
37. From the following particulars from Rajeshwar Ltd., calculate :
i. Cash Flows from Operating Activities, and
ii. Cash Flows from Financing Activities.
31.3.2017 31.3.2018
₹ ₹
Equity Share Capital 6,00,000 10,00,000
18% Preference Share Capital 4,00,000 3,00,000

Securities Premium Reserve 1,00,000 2,60,000
14% Debentures 2,00,000 2,50,000
Discount bn Debentures 5,000 6,000

Underwriting commission on issue of shares — 20,000
Bank Overdraft 1,00,000 1,50,000
Interest on Bank Overdraft 15,000 20,000

Profit & Loss Balance 3,50,000 5,00,000
Additional Information:
1. Preference shares were redeemed on 31st March, 2018 at a premium of 5%. Such premium has been provided out of
profit.
2. New shares and debentures were issued on March 31, 2018.
3. Dividend on preference shares was paid.
4. Proposed Dividend on Equity Share Capital was :
for 31 st March 2018 @ 20%
for 31 st March 2017 @ 15%
Class 12 - Accountancy
Sample Paper - 04 (2023-24)

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Part A:- Accounting for Partnership Firms and Companies
1. (a) (A)
Explanation: Admission of a partner is one of the methods of reconstitution of a partnership firm, in which a new partner is
admitted. It means, it is the end of old partnership and the beginning of a new partnership between all the partners including
the new partner.
2. (d) A is false but R is true.
3. (d) Capital loss
Explanation: Discount allowed by the company at the time of issue of debentures is treated as a capital loss and should be
written off against the capital reserve or Statement of Profit and loss or against the Securities premium reserve.
OR
(a) Irredeemable Debentures.

4. (c) R’s capital account will be debited by ₹ 24,000 and S and T's capital account will be credited by ₹ 8,000 and ₹ 16,000
respectively.
Explanation: R’s capital account will be debited by ₹ 24,000 and S and T's capital account will be credited by ₹ 8,000 and ₹
16,000 respectively.
OR
(d) Partners who gave the guarantee

Explanation: Deficiency will be born by partners who have given Guarantee.
5. (d) ₹ 1,50,000 and ₹ 1,20,000
6. (b) 5%
Explanation: Amount of Premium Payable @ ₹ 20 = ₹ 16,00,000 (80,000 × ₹ 20)
Total Loss written off from Securities Premium = ₹ 20,00,000
Amount of Discount on Issue = ₹ 20,00,000 - ₹ 16,00,000 = ₹ 4,00,000
₹4,00,000
Rate of Discount = × 100 = 5%
₹80,00,000
OR
(d) 48,000
Explanation: Y Limited has taken an asset of 100 lakhs and liabilities of 4000000.
So remaining amount = 6000000
A number of debentures issued = = 48,000 Debentures to the Sita Enterprises.
6000000
125
7. (d) A is false but R is true.

Explanation: Calls-in-arrear is the amount that has not been paid by the shareholder till the due date.
8. (a) Credited to all partner’s capital accounts in old ratio.
OR
(b) G = ₹ 210, B = ₹ 150

Explanation: Interest on Drawings for G
= 800 × 6 × = ₹ 210
15 3.5
×
100 12
Interest on Drawings for B

= 800 × 6 × = ₹ 150
15 2.5
×
100 12
9. (a)

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₹ 1,50,00
10. (c)
₹ 4,76,00
11. (b) Articles of Partnership

12. (d) ₹ 10,000
Explanation: Excess received from Rohini on Application
5,000 Shares - 4,000 Shares = 1,000 Shares @ ₹ 2 = 2,000
₹
Amount Due on Allotment: 4000 × ₹ 4 16,000
Less: Excess received on application 2,000

Calls in Arrears 14,000
Entry for Forfeiture :

Date Particulars L.F. Dr. (₹) Cr. (₹)
Share Capital A/c (4,000 × ₹ 4) Dr. 16,000
Securities Premium Reserve A/c Dr. 8,000
To Calls in Arrears A/c 14,000

To Shares Forfeited A/c 10,000
(4,000 shares forfeited)

13. (b) Securities Premium Reserve Account
14. (a) simultaneous guarantee
15. (d) In their old profit-sharing ratio
OR
(c) 2:4:3
Explanation: Calculation of the new profit sharing ratio:
Old Ratio = 1:2
C’s share = or
1
3
3
Let Share be 1
Remaining profit = 1 - 1
3
= 2
A’s new share = =

1 2 2
×
3 3 9
B’s new share = =

2 2 4
×
3 3 9
New Ratio will be 2 : 4 : 3

16. (a) On the Debit of Realisation Account
Explanation: On the Debit of Realisation Account
17. Sacrificing ratio needs to be calculated under the following circumstances usually:-
i. When it is mutually decided by partners of the firm to change the profit sharing ratio among the existing partners.

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ii. A new partner is introduced in the firm and accordingly, the sum contributed by the new partner is distributed as
goodwill based on the sacrificing ratio of existing partners.
18. Sometimes after the final accounts of the firm have been closed, certain matters may have been omitted or wrongly done. In
that case rectifying entry for such mistakes must be made in the partners’ capital or current accounts in the beginning of
financial year.
OR
In the absence of Partnership deed, the provisions of partnership act 1932 will apply according to which:
i. No interest is payable on Capitals.
ii. Interest on loan by partner will be paid @ 6% p.a.
iii. Profits will be shared equally.
iv. No salary/remuneration is payable to any partner.
19. Case- 1.
Journal
Bank A/c......Dr. 1,05,000
To Debenture Application & Debenture A/c 1,05,000
( Being application money received.)
Debenture Application & Allotment A/c......Dr. 1,05,000
Loss On Issue Of Debenture A/c......Dr. 10,000

To 7% Debenture A/c 1,00,000
To Security Premium Reserve A/c 5,000
To Premium On Redemption Of Debenture A/c 10,000

( Being application money transferred.)
Case- 2.
Journal
Bank A/c......Dr. 95,000
To Debenture Application & Debenture A/c 95,000
( Being application money received.)
Debenture Application & Allotment A/c......Dr. 95,000
Discount On Issue Of Debenture A/c......Dr. 5,000

To 7% Debenture A/c 1,00,000
( Being application money transferred.)
OR

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Books of the Madhur Ltd.
JOURNAL
Dr. Cr.
Date Particulars L.F.
Amount Amount
(i) ₹ ₹
Sundry Assets A/c Dr. 3,90,000
Goodwill A/c (Balancing Figure) Dr. 50,000
To Liabilities A/c 40,000

To Rasova Ltd.
4,00,000
(Assets and Liabilities of Rasova Ltd. taken over)
(ii) Rasova Ltd. Dr. 4,00,000

To Bank A/c 80,000
To Equity Share Capital A/c (2,000 × ₹ 100) 2,00,000
To Securities Premium Reserve A/c

(20% Payment made by cheque and balance settled by issue of 2.000 equity shares 1,20,000
at a premium of 60 %)
Working Note:
₹
Total Amount Payable 4,00,000
Less: Payment made by Cheque 80,000
3,20,000
3,20,000
Number of Equity Shares issued = 160
= 2,000 shares
20. Goodwill = Capitalised Value of Average Profit -Capital Employed
54,000+42,000+39,000+67,000+59,000
Average Profit = = 5
2,61,000
=
5
= ₹ 52,200
Capitalised Value of Average Profit = Average Profit × 100
Normal Rate of Return
= ₹ 2,61,000
100
= 52, 200 ×
20
Capital employed = Net assets = Rs.2,00,000

∴ Goodwill = 2,61,000 - 2,00,000 = ₹ 61,000
21. i. Book of Devendra Limited
Journal
Dr. Cr.
(₹) (₹)
2010
Jan.
Equity Share Capital A/c Dr. 1,000
01
To Share Forfeiture A/c 800
To Calls-in-Arrears A/c 200

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(100 shares of ₹ 10 each forfeited for the non-payment of ₹ 2 per share)
Feb.
Bank A/c Dr. 420
01
Share Forfeiture A/c Dr. 180
To Equity Share Capital A/c 600

(60 shares of ₹ 10 each re-issued at ₹ 7 per share, fully paid-up)
To Capital Reserve A/c 300

(Balance in Share Forfeiture Account of 60 shares after re-issue transferred to Capital
Reserve)
Working Note: Forfeiture of re-issued shares
Share Forfeiture Credit ₹ 8 per share
Share Forfeiture Debit ₹ 3 per share
Balance in Share Forfeiture after re-issue ₹ 5 per share

General Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= ₹ 5 × 60 = ₹ 300
ii. Book of Virender Limited
Journal
Dr. Cr.
(₹) (₹)
Share Capital A/c Dr. 1,200
To Share Forfeiture A/c 400

To Calls-in-Arrears A/c 800
(20 shares of ₹ 100 each ₹ 60 called-up forfeited for the non-payment of ₹ 40 per
share)
Bank A/c Dr. 675

To Share Capital A/c 900
(15 shares of ₹ 100 each re-issued for ₹ 45 per share as ₹ 60 paid-up)

To Capital Reserve A/c 75
(Balance in Share Forfeiture of 15 re-issued shares transferred to Capital Reserve)

Working Note:
Forfeiture of reissued shares
Share Forfeiture Credit (at the time of forfeiture) ₹ 20 per share
Share Forfeiture Debit (at the time of re-issue) ₹ 15 per share
Balance in Share Forfeiture after re-issue ₹ 05 per share

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Capital Reserve = Balance in Share Forfeiture after re-issue (per share) × No. of shares reissued
= ₹ 5 × 15 Shares = ₹ 75
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22. JOURNAL
Amount Amount
Rs. Rs.
Realisation A/c Dr. 1,900

To S's Capital A/c
(Being S's husband loan was taken over by S, transferred to her capital 1,900
account)
Bank A/c Dr. 750
To Realisation A/c
750
(Being debtors realised as 930 in 750)
T's Capital A/c Dr. 1,330
To Realisation A/c
1,330
(Being the investment taken over by T transferred to his capital account)
Realisation A/c (working note no 1) Dr. 910

To Bank A/c
910
(Being creditors settled of 1,000 at 9 % discount))
S's Capital A/c Dr. 300

To Realisation A/c
300
(Being the realisation expenses born by S transferred to her capital a/c)
S's Capital A/c(940 x 3/5) Dr. 564

T's Capital A/c(940 x 2/5) Dr. 376
To Realisation A/c
Dr. 940
(Being the loss on realisation transferred to partners’ capital accounts )
Working note:
total creditor = 1,000
discount = 9% i.e 1,000 x 9 /100=90
so the payment is 1,000 - 90 =910
23. JOURNAL
Date Particulars L.F. Amt. (Dr.) Amt. (Cr.)
1. Bank A/c (15,000 × 2) Dr. . 30,000 .

. To Equity Share Application A/c . . 30,000
. (Being share application money received.) . . .

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2. Equity Share Application A/c Dr. . 30,000 .
. To Share Capital A/c . . 30,000

. (Being share application money transferred to share capital.) . . .
3. Share Allotment A/c Dr. . 15,000 .
. To Equity Share Capital A/c (15,000 × 1) . . 15,000

. (Being share allotment money transferred to share capital.) . . .
4. Bank A/c Dr. . 13,000 .
. Calls-in-arrears A/c (2,000 × 1) Dr. . 2,000 .

. To Share Allotment A/c . . 15,000
. (Being share allotment money received on 13,000 shares @ ₹1 each.) . . .
5. Equity Share First Call A/c Dr. . 45,000 .

. (Being share first call money due on 15,000 shares @ ₹3 per share.) . . .
6. Bank A/c Dr . 30,000 .

. Calls in Arrears A/c (2,000 × 3) + (3,000 × 3) Dr. . 15,000 .
. To Equity Share First Call A/c . . 45,000
. (Being share first call money received on 10,000 shares ₹3 per share.) . . .
7. Equity Share Capital A/c (5,000 × 6) Dr. . 30,000 .
. To Calls in Arrears (2,000 + 15,000) A/c . . 17,000
. To Share Forfeiture A/c . . 13,000

(Being 5,000 shares forfeited on non-payment of allotment and first call
. . . .
money.)
8. Bank A/c (5,000 × 9) Dr. . 45,000 .

. To Securities Premium Reserve A/c (5,000 × 3) . . 15,000
. (Being all forfeited shares were reissued at Rs. 9 per share as ₹6 paid-up.) . . .
9. Share Forfeiture A/c Dr. . 13,000 .
. To Capital Reserve A/c . . 13,000
. (Being profit on share forfeiture transferred to capital reserve.) . . .
OR
JOURNAL
Date Particular L.F Amt (Dr.) Amt (Cr.)

i Bank A/c (75, 000 × 8 ) Dr. 6,00,000
To Equity Share Application A/c 6,00,000

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(Being application money received.)
ii Equity Share Application A/c Dr. 6,00,000
To Equity Share Capital A/c (75, 000 × 3 ) 2,25,000
To Securities Premium Reserves A/c ( 75, 000 × 5 ) 3,75,000

(Being application money transferred.)
iii Equity Share allotment A/c Dr. 9,00,000

To Securities Premium Reserve A/c (75, 000 × 10 ) 7,50,000
(Being allotment money due.)
iv Bank A/c (75, 000 × 12 ) Dr. 8,64,000

To Equity Share Allotment A/c 8,64,000
(Being allotment money received.)
v Equity Share Capital A/c ( 3, 000 × 5 ) Dr. 15,000

Securities Premium Reserve A/c (3, 000 × 10 ) Dr. 30,000
To Shares Forfeiture A/c (3, 000 × 3 ) 9,000
To Equity Share Allotment A/c (3, 000 × 12 ) 36,000

(Being 3,000 shares forfeited for non-payment of allotment money.)
vi Equity Share First and Final Call A/c (72, 000 × 25 ) Dr. 18,00,000

To Securities Premium Reserve A/c (72, 000 × 20 ) 14,40,000
(Being first and final call money due.)
vii Bank A/c (69, 000 × 25 ) Dr. 17,25,000

To Equity Share First and Final Call A/c 17,25,000
(Being first and final call money received.)
viii Equity Share Capital A/c (3, 000 × 10 ) Dr. 30,000

Securities Premium Reserve A/c (3, 000 × 20 ) Dr. 60,000
To Shares Forfeiture A/c (3, 000 × 5 ) 15,000
To Equity Share First and Final Call A/c (3, 000 × 25 ) 75,000
Being shares forfeiture for non payment of call money.)
ix Bank A/c Dr. 62,000
To Equity Share Capital A/c (6, 000 × 10 ) 60,000

To Securities Premium Reserve A/c 2,000
(Being all forfeited shares received for Rs. 62,000 as fully paid up.)
x Shares Forfeiture A/c Dr. 24,000

To Capital Reserve A/c 24,000

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(Being gain on reissue transferred to capital reserve.)
24. JOURNAL
Date Particulars L.F Dr. (₹) Cr. (₹)
2019
Cash A/c Dr. 25,000
April 1
To Sambhav's Capital A/c 20 000
To Premium for Goodwill A/c 5,000

(Being the capital and goodwill brought in by Sambhav)
Premium for Goodwill A/c Dr. 5,000
To Swadesh's Capital A/c 2,500
To Swaraj's Capital A/c 2,500

(Being the goodwill credited to Swadesh and Swaraj in their sacrificing ratio)
Swadesh's Capital A/c Dr. 2,500
Swaraj's Capital A/c Dr. 2,500
To Cash A/c
5,000
(Being the goodwill withdrawn by old partners)
Revaluation A/c Dr. 8,750
To Provision for Doubtful Debts A/c 500

[(5% of ₹20,000) - ₹500]
To Machinery A/c 2,000
To Furniture A/c 1,250

To Outstanding Electricity Expenses A/c 5,000
(Being the decrease in value of machinery and furniture and increase in Provision for
Doubtful Debts and Electricity Bill recorded)
Stock A/c Dr. 3,000

Land and Building A/c Dr. 14,700
Investments A/c Dr. 2,000
Prepaid Insurance Premium A/c Dr. 5,000

To Revaluation A/c 24,700
(Being the increase in the value of stock, land, and building, unrecorded investments
and prepaid insurance premium recorded)
Revaluation A/c Dr. 15,950
To Swadesh's Capital A/c 7,975
To Swaraj's Capital A/c 7,975

(Being the distribution of revaluation gain (profit) between old partners) (WN 1)
BALANCE SHEET as at 1st April, 2019

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Bills Payable 15.000 Cash in Hand (WN 3) 32,000
Creditors 50,000 Cash at Bank 15,000
Outstanding Expenses (3,000 + ₹ 5,000) 8,000 Stock 23,000

Capital A/cs (WN 2): Debtors 20,000
Swadesh 67,975 Less: Provision for Doubtful Debts 1,000 19,000
Swaraj 47,975 Investments 2,000

Sambhav 20,000 1,35,950 Prepaid Insurance Premium 5,000
Furniture 8,750
Machinery 16,000
Land and Building 88,200
2,08,950 2,08,950
Working Notes:
REVALUATION ACCOUNT
Particulars ₹ Particulars ₹
To Provision for Doubtful Debts A/c 500 By Stock A/c 3,000

To Machinery A/c 2,000 By Land and Building A/c 14,700
To Furniture A/c 1,250 By Investments A/c 2,000
To Outstanding Electricity Expenses A/c 5,000 By Prepaid Insurance Premium A/c 5,000
To Gain (Profit) transferred to:
Swadesh's Capital A/c 7,975
Swaraj's Capital A/c 7,975 15,950

24,700 24,700
PARTNERS' CAPITAL ACCOUNTS
Dr. Cr.
Swadesh Swaraj Sambhav Swadesh Swaraj Sambhav

Particulars Particulars
₹ ₹ ₹ ₹ ₹ ₹
To Cash A/ 2,500 2,500 ... By Balance b/d 60,000 40,000 ...

To Balance
67,975 47,975 20,000 By Cash A/c ... ... 20,000
c/d
By Premium for 60,000 40,000 20,000

2,500 2,500 ...
Goodwill A/c
By Revaluation A/c 7,975 7,975 ...
70,475 50,475 20,000 70,475 50,475 20,000

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CASH ACCOUNT
Dr. Cr.
Particulars ₹ Particulars ₹
To Balance b/d 12,000 By Swadesh's Capital A/c 2,500

To Sambhav's Capital A/c 20,000 By Swaraj's Capital A/c 2,500
To Premium for Goodwill A/c 5,000 By Balance c/d 32,000
37,000 37,000
OR
Revaluation Account
Particulars (Rs.) Particulars (Rs.)
To Provision for doubtful debts 8000 By Loss transfer:
To Stock 22,000 Sushma 50000

To Fixed assets 70,000 Gautam 30000
Kanika 20000 1,00,000
1,00,000 1,00,000
Partner's Capital Account
Particulars Sushma Gautam Kanika Particulars Sushma Gautam Kanika
Rs. Rs. Rs. Rs. Rs. Rs.

To Revaluation 50,000 30,000 20,000 By Balance b/d 3,00,000 2,50,000 3,50,000
To Sushma's capital A/c - 80,000 3,20,000 By Profit and Loss A/c 50,000 30,000 20,000
To Stock 2,18,000 - - by Gautam's Capital A/c 80,000 - -

To Bank 4,82,000 - - By Kanika's Capital A/c 320000 - -
To Balance c/d - 2,40,000 3,60,000 By Bank - 70,000 33000
7,50,000 3,50,000 7,00,000 7,50,000 3,50,000 7,00,000
Balance Sheet as at 31.03.2018
Liabilities (Rs.) Assets (Rs.)
Creditors 60,000 Bank 58,000

Employees Provident 40,000 Sundry Debtors 1,60,000
Capital A/cs: Less: Provision 8,000 1,52,000
Gautam 2,40,000 Investments 2,00,000

Kanika 3,60,000 Fixed Assets 2,90,000
7,00,000 7,00,000

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25. One major change in the constitution of a partnership firm may occur if a partner undergoes retirement from the firm or in
the event of his death. In both cases, the partner’s account will have to be settled, and new ratios will have to be calculated.
There is also the issue of treatment of goodwill. The following are the important adjustments:
Adjustment for revaluation of assets and liabilities
New profit sharing ratio and gaining ratio
Adjustment of partner's capital
Treatment of goodwill
i. Calculation of B's Share of Goodwill
5 years total profit = (-) 70,000 + 70,000 + 60,000 + 50,000 + 40,000= Rs 1,50,000
1.50,000
Average profit = 5
= Rs 30,000
Firm's Goodwill = Average Profit × Number of Years' Purchase = 30,000 × 3 = Rs 90,000
B's share of goodwill = 90,000× = Rs 45,000, to be contributed by C and D in their gaining ratio 10 i e, 3 : 2. C will
5
10
contribute = 45,000 × = Rs 27,000; D will contribute = 45,000 × = Rs18,000

3 2
5 5
ii. Calculation of B's Share of Profit

B's share of profit = 70,000 × 5
10
×
3
12
= Rs 8,750 (Dr)
B's Capital Account
Amount Amount
Date Particulars Date Particulars
(₹) (₹)
2009 Mar To Profit and Loss A/c(70,000 2009 Jan
35,000 By Balance b/d 40,000
1 × 5/10) 1
To Profit and Loss Suspense A/c By General Reserve A/c (70,000

Mar 31 8,750 Mar 1 35,000
(Loss) × 5/10)
Mar 31 To B's Executor's A/c 76,250 Mar 31 By C's Capital A/c 27,000
Mar 31 By D's Capital A/c 18,000

1,20,000 1,20,000
Vayee Ltd.
26. i. Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
Land & Building A/c Dr. 84,00,000
Plant & Machinery A/c Dr. 36,00,000

To EX Ltd. A/c 1,10,00,000
To Capital Reserve A/c (Bal. Fig.) 10,00,000
(Being assets of EX Ltd. purchased)

EX Ltd. A/c Dr. 1,10,00,000
To Bills Payable A/c 20,00,000
To 8% Debentures A/c (75,000 × 100) 75,00,000

To Securities Premium Reserve A/c (75,000 × 20) 15,00,000

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(Being purchase consideration paid by accepting a bill and issuing 75,000
8% debentures of `100 each at 20% premium)
Working Notes: Number of Debentures issued = (90,00,000/120) = 75,000 debentures
Zed Ltd.
ii. Journal
Debit Credit
Date Particulars L.F. Amount Amount
(₹) (₹)
Bank A/c Dr. 1,00,00,000
To Debenture Application A/c 1,00,00,000

(Being application amount received on 2,00,000, 8% Debentures)
Debenture Application A/c Dr. 1,00,00,000
Loss on Issue of debentures A/c Dr. 20,00,000
To 8% Debentures A/c 1,00,00,000
To Premium on Redemption A/c 20,00,000

(Being debentures allotted and premium on redemption accounted
for)
Debenture Allotment A/c Dr. 88,00,000

Discount on Issue of Debenture A/c Dr. 12,00,000
To 8% Debentures A/c 1,00,00,000
(Being allotment due on debentures)
Bank A/c Dr. 88,00,000
To Debenture Allotment A/c 88,00,000
(Being allotment money received)

27. Part B :- Analysis of Financial Statements
28. (a) Option (iv)
OR
(b) Share Capital

29. (d) 4,00,000
Explanation: Let the current liabilities to be paid off = X
6,00,000 - X / 5,00,000 - X = 2/1
10,00,000 - 2X = 6,00,000 - X
X = 4,00,000
30. (d) No Cash Flow
OR
(d) sale of investment by non-financial enterprise.

Explanation: purchase -sale of investments are part of investing activities.

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31. (c) Increase in Bank Overdraft
Explanation: Increase in bank overdraft is shown as an addition in financing activities while preparing a cash flow
statement. As its increase in cash. Increase in bank overdraft is added in financing activity.
32. Cost of Materials Consumed = Opening Inventory of Materials + Purchases of Materials - Closing Inventory of Materials
= ₹ 5,50,000 + ₹ 22,50,000 - ₹ 4,50,000 = ₹ 23,50,000.
33. Trade Receivables Turnover Ratio
Credit Revenue from Operations (Net Credit Sales)
=
Average Trade Receivables (Debtors + Bills Receivable)
₹6,00,000
=
₹50,000
= 12 Times
Average Collection Period (Months) = No. of Months in a Year
Trade Receivables Turnover Ratio

=
12
12
= 1 Months
No. of Days in a Year
Average Collection Period (Days) = Trade Receivables Turnover Ratio
= 30.41 or 30 Days
365
=
12
Average trade receivables = 60,000 + 40,000/2 = Rs.50,000
34. COMPARATIVE STATEMENT OF PROFIT AND LOSS OF X LTD.

for the years ended 31st March 2022 and 2023.
Note 31-3- 31-3- Absolute Change Percentage Change

S.No. Particulars
No. 2022 2023 (Increase or Decrease) (Increase or Decrease)
1 2 3 4 5
A B (B - A = C) C
× 100 = D
A
₹ ₹ ₹ %
Revenue from
I. 20,00,000 25,00,000 5,00,000 25.00
Operations
II. Less: Expenses :
(a) Cost of Materials

16,00,000 21,00,000 5,00,000 31.25
Consumed
(b) Other Expenses

80,000 1,00,000 20,000 25.00
(Note 1)
Total Expenses 16,80,000 22,00,000 5,20,000 30.95
Profit before Tax (I -

III. 3,20,000 3,00,000 (20,000) (6.25)
II)
IV. Less: Tax 50% 1,60,000 1,50,000 (10,000) (6.25)

Profit after Tax (III -
V. 1,60,000 1,50,000 (10,000) (6.25)
IV)
Working Note:-
i. Gross Profit = Revenue from Operations - Cost of Materials Consumed
Gross Profit for 2022 = ₹ 20,00,000 - ₹ 16,00,000 = ₹ 4,00,000
Gross Profit for 2023 = ₹ 25,00,000 - ₹ 21,00,000 = ₹ 4,00,000
Other Expenses for 2022 = 20% of 4,00,000 = ₹ 80,000
Other Expenses for 2023 = 25% of 4,00,000 = ₹ 1,00,000
OR

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BALANCE SHEETS as at 31st March
Absolute Amounts Percentage of Balance Sheet

Particulars Note No.
2016 2017 2016 2017
I. EQUITY AND LIABILITIES :
(1) Shareholder’s Funds :
(a) Share Capital 3,00,000 3,00,000 25 20

(b) Reserves and Surplus 4,36,000 6,50,000 36.33 43.33
(2) Non-Currrent Liabilities :
Long-term Borrowings 2,00,000 2,50,000 16.67 16.67
(3) Current Liabilities :
(a) Trade Payables 2,40,000 2,85,000 20 19
(b) Short term Provisions 24,000 15,000 2 1

Total 12,00,000 15,00,000 100.00 100.00
I. ASSETS :
(1) Non-Current Assets :
(a) Fixed Assets 5,00,000 5,00,000 41.67 33.33
(b) Non-Current Investments 1,96,000 3,10,000 16.33 20.67
(2) Current Assets :

(a) Inventory 2,58,000 3,69,000 21.50 24.60
(b) Trade Receivables 1,98,000 2,25,000 16.50 15.00
(c) Cash & Cash Equivalents 48,000 96,000 4.00 6.40
Total 12,00,000 15,00,000 100.00 100.00

Total of balance sheet is taken as 100% and on the basis of other percentages are calculated.
Interpretations:
The analysis of the above comparative balance sheet gives the following conclusions:
i. Current Assets for the year of 2016 were (21.50 + 16.50 + 4.00) 42% of the total assets and it is increased to (24.60 + 15
+ 6.40) 46% in 2017.
ii. Current liabilities for the year of 2016 were (20.00 + 2.00) 22% of the total liabilities and it is decreased to (19.00 +
1.00) 20% in 2017.
iii. Current liabilities for the year of 2016 were (20.00 + 2.00) 22% of the total liabilities and it is decreased to (19.00 +
1.00) 20% in 2017.
35. i. CASH FLOWS FROM OPERATING ACTIVITIES OF RAJESHWAR LTD.
₹
Net Profit before Tax (Note 1) 3,12,000
Adjustments for non-cash and non-operating items:
Add: Premium paid on Redemption of Preference Shares 5,000
Interest paid on Debentures 28,000

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Interest on Bank Overdraft 20,000
Net Cash Flows from Operating Activities 3,65,000

Note: 1
Calculation of Net Profit before Tax : ₹
Profit & Loss Balance on 31st March, 2018 5,00,000
Less: Profit & Loss Balance on 31 st March, 2017 3,50,000
1,50,000
Add: Dividend paid on Preference Shares (18% on ₹ 4,00,000) 72,000
Proposed Dividend paid on Equity Shares (15% on ₹ 6,00,000) 90,000
Net profit before tax and extraordinary items 3,12,000

ii. CASH FLOWS FROM FINANCING ACTIVITIES OF RAJESHWAR LTD.
₹
Proceeds from issue of Equity Share Capital (₹ 4,00,000 + Securities Premium Reserve ₹ 1,60,000 -
5,40,000
Underwriting Commission ₹ 20,000)
Redemption of Preference Shares (₹ 1,00,000 + ₹ 5,000) (1,05,000)
Proceeds from issue of Debentures (₹ 50,000 - ₹ 1,000) 49,000
Increase in Bank Overdraft 50,000
Interest on Bank Overdraft (20,000)
Dividend paid on Preference Shares (18% on ₹ 4,00,000) (72,000)
Proposed Dividend paid on Equity Shares for 31st March 2017 (15% on ₹ 6,00,000) (90,000)
Interest paid on Debentures (14% on ₹ 2,00,000) (28,000)
Net Cash flow from Financing Activities 3,24,000

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1. This question paper contains 34 questions. All questions are compulsory.

1. Part A:- Accounting for Partnership Firms and Companies

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11. What is the amount of commission payable to Balvant?

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Creditors 50,000 Cash 12,000

Bills Payable 15,000 Cash at Bank 15,000

Capital A/cs: Less: Provision for Doubtful Debts 500 19,500

Swadesh 60,000 Stock 20,000

Land and Building 73,500

Balance Sheet of Sushma, Gautam and Kanika as at 31st March, 2018

Liabilities Amount (Rs.) Assets Amount (Rs.)

Profit and Loss Account 1,00,000 Stock 2,40,000

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Sushma 3,00,000 Fixed Assets 3,60,000

Creditors 43,000 Cash 10,200

Capitals: Land and Building 1,40,000

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An example of cash flow from investing activity is:

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Finished Goods 2,50,000

Finished Goods 1,50,000

Cost of Materials Consumed 21,00,000 16,00,000

BALANCE SHEETS as at 31st March

Particulars Note No. 2017 2016

(a) Share Capital 3,00,000 3,00,000

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(a) Trade Payables 2,85,000 2,40,000

(b) Non-Current Investments 3,10,000 1,96,000

(b) Trade Receivables 2,25,000 1,98,000

18% Preference Share Capital 4,00,000 3,00,000

Discount bn Debentures 5,000 6,000

Interest on Bank Overdraft 15,000 20,000

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Part A:- Accounting for Partnership Firms and Companies

(a) Irredeemable Debentures.

(d) Partners who gave the guarantee

7. (d) A is false but R is true.

(b) G = ₹ 210, B = ₹ 150

Interest on Drawings for B

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11. (b) Articles of Partnership

Amount Due on Allotment: 4000 × ₹ 4 16,000

Less: Excess received on application 2,000

Entry for Forfeiture :

Securities Premium Reserve A/c Dr. 8,000

To Calls in Arrears A/c 14,000

(4,000 shares forfeited)

A’s new share = =

B’s new share = =

New Ratio will be 2 : 4 : 3

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Bank A/c......Dr. 1,05,000

To Debenture Application & Debenture A/c 1,05,000

( Being application money received.)