Jai Shri Krishna

Time : 2 Hrs. M:M.: 40

PART-A
(Accounting for Not-For-Profit Organisations, Partnership Firms and Companies)

Q.1 From the following information calculate the amount of medicines to be posted to Income and Expenditure
Account of Sargam Hospital for the year ending 31st March, 2022:
Particulars 1.4.2021 (Rs.) 1.4.2022 (Rs.)
Stock of medicines 25,000 20,000
Creditors for medicines 15,000 28,000

Medicines purchased during the year ended 31st March, 2022 was Rs. 1,00,000. (2)

Q.2 Deepa, Neeru and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Neeru retired and
the new profit sharing ratio between Deepa and Shilpa was 2 : 3. On Neeru's retirement, the goodwill of
the firm was valued at Rs. 1,20,000.

Record necessary journal entry for the treatment of goodwill on Neeru's retirement. (2)

Q.3 Bank loan of Rs. 1,00,000 (appeared in the balance sheet) was taken against mortgage of machinery.
Creditors on that date are Rs. 50,000. On dissolution of the firm, cash available is only Rs. 1,25,000. How
much amount will be paid to the liabilities? You are required to state the provisions of Section 48 of the
Partnership Act, 1932. (2)

Q.4 BGP Ltd. invited applications for issuing 15,000, 11% debentures of Rs. 100 each at a premium of Rs. 50
per debenture. The full amount was payable on application. Applications were received for 25,000
debentures. Applications for 5,000 debentures were rejected and the application money refunded.

Debentures were alloted to the remaining applicants on pro-rata basis.

Pass the necessary journal entries for the above transactions in the books of BGP Ltd. (3)

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 OR

Maneesh Ltd. took over assets of Rs. 9,40,000 and liabilities of Rs. 1,40,000 of Ram Ltd. at an agreed
value of Rs. 7,80,000. Maneesh Ltd. paid to Ram Ltd. by issue of 9% debentures of Rs. 100 each at a
premium of 20%.

Pass necessary journal entries to record the above transactions in the books of Maneesh Ltd. (3)

Q.5 Monu, Nigam and Shreya were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. The
firm closes its books on 31st March every year. As per the terms of partnership deed on the death of any
partner, the share of goodwill of the deceased partner will be calculated on the basis of 50% of the net
profit credited to that partner's capital account during the last four completed years before death. Monu
died on 1st July 2020.

The profits for last four years were: 2016-17 Rs. 97,000; 2017-18 Rs. 1,05,000; 2018-19 Rs. 30,000; 2019-
20 Rs. 84,000 His share of profit in the year of his death was to be calculated on the basis of sales. Sales
for the year ended 31st March 2020 amounted to Rs. 8,40,000. Sales shows a growth trend of 20% and
percentage of profit earning is reduced by 1%.

(i) Calculate Monu's share of profits till the date of her death.

(ii) Pass necessary journal entries for treatment of goodwill and Monu's share of profits till the date of
her death. (3)

Q.6 From the following extract of Receipt and Payment Account and the additional information, compute the
amount of income from subscriptions and show as how they would appear in the Income and Expenditure
Account for the year ending March 31, 2022 and the Balance Sheet as on that date.

Receipt and Payment Account for the year ending March 31, 2022
Receipts Amount (Rs.)
To Subscriptions:
2020-21 7,000
2021-22 30,000
2022-23 5,000 42,000

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 Additional Information:

Subscriptions outstanding March 31, 2021 Rs. 8,500

Total Subscriptions outstanding March 31, 2022 Rs. 18,500

Subscriptions received in advance as on March 31, 2021 Rs. 4,000 (3)

OR

Present the following items in the Balance Sheet of Queen's Club as at 31st March, 2022:
Receipts Amount (Rs.)
Capital fund (1st April, 2021) 10,80,000
Building fund (1st April, 2021) 4,80,000
Donation received for Building 6,00,000
10% Building fund Investment (1st April, 2021) 4,80,000
Interest received on Building Fund Investments 48,000
Additional Information:
Expenditure on construction of building Rs. 3,60,000. Construction work is in progress and has not yet
been completed. (3)

Q.7 From the following receipts and payments account of Vista Club, prepare an Income and Expenditure
Account for the year ended 31st March, 2022.
Receipts and Payments Account of Vista Club for the year ended 31st March, 2022
Receipts Amt (Rs.) Payments Amt (Rs.)
To Balance b/d 5,000 By Salaries 31,000
To Subscription: By Electricity Expenses 14,500
2020-21 11,600 By Machinery (1.7.2021) 40,000
2021-22 73,000 By 8% Investments 30,000
2022-23 8,000 92,600 By Balance c/d 5,100
To Sale of old furniture (Book value
Rs. 2,000) 800
To Legacy (general) 22,000
To Interest on Investment 200
1,20,600 1,20,600

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 Additional Information:

(i) The club had 50 members each paying an annual subscription of Rs. 1,500. Subscription in arrears
on 31-03-2021 were Rs. 15,000.

(ii) On 31st March, 2022, Outstanding salaries were Rs. 4,000.

(iii) 8% Investments were made on 31st December, 2021.

(iv) The club owned machinery of Rs. 1,00,000 on 1st April, 2021. Depreciate machinery @ 6% p.a. (5)

Q.8 Naina, Uday and Tara were partners in a firm sharing profits and losses in the ratio of 5:3:2. The firm was
dissolved on 31-3-2022. After transfer of asset (other than cash)and external liabilities to Realization
Account, the following transaction took place:

(i) A typewriter completely written off from the books was sold for Rs. 4,000.

(ii) Loan of Rs. 30,000 advanced by the firm to Uday was paid by him.

(iii) Tara was to get remuneration of Rs. 42,000 for completing the dissolution process. Actual
realization expenses amounted to Rs. 51,000 and were paid by the firm.

(iv) Creditors of Rs. 23,000 took over all the investments at Rs. 12,000. Remaining amount was paid to
them in cash.

(v) Machinery (book value Rs. 60,000) was given to creditor at a discount of 20%.

Pass necessary journal entries for the above transactions in the books of the firm. (5)

OR

Narang, Suri and Bajaj are partners in a firm sharing profits and losses in proportion of 1/2, 1/6 and 1/3
respectively. The Balance Sheet on April 1, 2020 was as follows:
Liabilities Amt (Rs.) Assets Amt (Rs.)
Bills Payable 12,000 Freehold Premises 40,000
Sundry Creditors 18,000 Machinery 30,000
Reserves 12,000 Furniture 12,000
Capital Accounts: Stock 22,000

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 Narang 30,000 Sundry Debtors 20,000
Suri 30,000 Less: Provision (1,000) 19,000
Bajaj 28,000 88,000 Bank 7,000
1,30,000 1,30,000

Bajaj retires from the business and the partners agree to the following:

(a) Freehold premises and stock are to be appreciated by 20% and 15% respectively.

(b) Machinery and furniture are to be depreciated by 10% and 7% respectively.

(c) Provision for doubtful debts is to be increased to Rs. 1,500.

(d) Goodwill is valued at Rs. 21,000 on Bajaj's retirement.

Prepare Revaluation Account, Partners' Capital Accounts the Balance Sheet of the reconstituted firm. (5)

Q.9 On 1 October 2021, Raghuveer Limited issued Rs. 10,00,000, 8% debentures as follows to:
Particulars Amount (Rs.)
(i) Sundry Subscribers for Cash at 90% 5,50,000
(ii) Vendor of Machinery for Rs. 2,00,000 in satisfaction of his claim. 2,00,000
(iii) Bankers as Collateral Security for a bank loan worth Rs. 20,00,000 for which 2,50,000
principal security is Business Premises worth Rs. 22,50,000.

The issue (i) and (ii) are redeemable after 5 years at 10% premium. On March 31, 2022 the balance in
Securities Premium Reserve was Rs. 1,00,000. Pass necessary journal entries to record the above
transactions in the books of Raghuveer Limited for the year ended on March 31, 2022. (5)

PART-B
(Analysis of Financial Statements)

Q.10 Classify the following activities into cash flows from operating activities, investing activities and financing
activities or cash equivalents.

(a) Brokerage paid on purchase of non- current investment

(b) Short-term deposit

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 (c) Marketable securities

(d) Trading commission received (2)

Q.11 From the following information extracted from the statement of Profit and Loss for the years ended 31st
March, 2021 and 2022, prepare a Comparative Statement of Profit & Loss.
Particulars 2021-22 2020-21
Revenue from operations Rs. 6,00,000 Rs. 5,00,000
Other income (% of revenue from operations) 20% 20%
Employee benefit expenses (% of Total Revenue) 40% 30%
Tax rate 40% 30%
(3)

OR

Prepare common size balance sheet of R Ltd. and S Ltd. as at March 31, 2022 from the given information:

Particulars Note No. R Ltd. (Rs.) S Ltd. (Rs.)

I. Equity and Liabilities :

1. Shareholders’ Fund

(a) Share Capital 15,00,000 20,00,000

(b) Reserves and Surplus 4,00,000 3,00,000

2. Non-Current Liabilities :

Long-term Borrowings: 6,00,000 9,00,000

3. Current Liabilities :

Trade Payables 2,00,000 3,00,000

Total 27,00,000 35,00,000

II. Assets :

1. Non-Current Assets :

(a) Fixed Assets

Tangible Assets 15,00,000 20,00,000

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 Intangible Assets 6,00,000 9,00,000

2. Current Assets :

(a) Inventories 4,00,000 3,00,000

(b) Cash and Cash Equivalents 2,00,000 3,00,000

Total 27,00,000 35,00,000

(3)

Q.12 From the following Balance Sheet of Ajanta Limited as on March 31, 2022, prepare a Cash Flow
Statement:
Particulars Note No. 31.3.2022 (Rs.) 31.3.2021 (Rs.)
I. Equity and Liabilities :
1. Shareholders’ Fund
(a) Share Capital 10,00,000 10,00,000
(b) Reserves and Surplus 1 2,40,000 1,20,000
2. Non-Current Liabilities :
Long-term Borrowings: 3,20,000 2,40,000
3. Current Liabilities :
(a) Trade Payables 2 1,80,000 2,40,000
(b) Other Current Liabilities 3 1,80,000 1,60,000
Total 19,20,000 17,60,000
II. Assets :
1. Non-Current Assets :
(a) Fixed Assets
- Tangible assets 4 13,40,000 12,00,000
(b) Non-Current Investment 5 2,40,000 1,60,000
2. Current Assets :
(a) Inventories 1,20,000 1,60,000
(b) Trade Receivable 1,60,000 1,60,000
(c) Cash and Cash Equivalents 60,000 80,000
Total 19,20,000 17,60,000

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 Notes to Accounts:
Note No. Particulars 31.3.2022 (Rs.) 31.3.2021 (Rs.)
1. Reserves and Surplus
Securities Premium Reserve 40,000 -
Balance in Statement of Profit & Loss 2,00,000 1,20,000
2,40,000 1,20,000
2. Trade Payables
Creditors 1,40,000 1,20,000
Bills Payable 40,000 1,20,000
1,80,000 2,40,000
3. Other Current Liabilities:
Outstanding Rent 1,80,000 1,60,000
4. Tangible Assets
Plant & Machinery 14,40,000 13,50,000
Less: Accumulated Depreciation (1,00,000) (1,50,000)
13,40,000 12,00,000
5. Non-Current Investments
10% Bonds of Kohinoor Ltd. 2,40,000 1,60,000

Additional Information:

(i) During the year 2021-22, a machinery costing Rs. 50,000 and accumulated depreciation thereon Rs.
15,000 was sold for Rs. 32,000.

(ii) New 9% Debentures were issued on April 1, 2021 at 50% premium.

(iii) New 10% bonds of Kohinoor Ltd. were purchased on 31.3.2022. (5)

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