QP Accountancy

कें द्रीय विद्यालय संगठन
(जम्मू संभाग )
KENDRIYA VIDYALAYA SANGATHAN

(JAMMU REGION)
SAMPLE PAPER
FOR CLASS XII
accountancy (055)
क्षेत्रीय कायाालय, जम्मू, नज़दीक राजकीय विककत्सालय, गााँधी नगर

जम्मू-180004
Regional Office, Jammu, Near Govt. Hospital,
Gandhi Nagar, Jammu-180004
KENDRIYA VIDYALAY SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-1
CLASS-XII SUBJECT-ACCOUNTANCY
TIME: 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. Part - A consist of Accounting for Partnership Firms and Companies
4. Part - B consist of Analysis of Financial Statements
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.
Part A :- Accounting for Partnership Firms and Companies
Q.No. Questions Marks

Read the following information and answer the given question no. 1 and 2
Abha and Vibha are partners, who shared profits and losses in the ratio of 2:1 From the 1st
January 2021, the partners decided to change their profit sharing ratio to 3:2 and agreed
upon the following:
(i) Goodwill of the firm valued at ₹ 45,000.
(ii) Creditors of ₹ 8,000 is not likely to be claimed hence should be written off.
(iii) Land and Building is overvalued by 10%.
(iv) Provision for doubtful debts to be reduced to ₹ 3,000
The partners neither want to record the goodwill nor to distribute the general reserve.
1 Abha's gain or sacrifice in the profit sharing ratio is: 1
(a) Gain 1/3
(b) Sacrifice 1/3
(c) Gain 1/15
(d) Sacrifice 1/15
2 Vibha's gain or sacrifice in the profit sharing ratio is: 1
(a) Gain 1/3
(b) Sacrifice 1/3
(c) Gain 1/15
(d)) Sacrifice 1/15
3 A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a 1
new partner for 1/8 share in the profits, which he acquired 1/16th from B and 1/16th from C.
The New Profit Sharing Ratio of A, B, C and D is:
(a) 24:13:5:6
(b) 24:5:13:6
(c) 3:6:8:2
(d) 3:2:1:1
OR
A and B are partners sharing profit in the ratio of 3:2. They admit C as a partner by giving him
1/3rd share in future profits. The new ratio will be :
(e) 12:8:5
(f) 8:12:5
(g) 5:5:12
(h) ) None of these
4 Radha limited issued 2,000 equity shares of ₹10 each at 10% premium. The amount of 1
premium to be received by the company is:
(a) ₹ 2,000
(b) ₹ 20,000
(c) ₹ 4,000
(d) None of these
OR
The Journal Entry to acquire an asset from vendor will be
(a) Sundry Assets A/c Dr.

To Vendor's A/c
(b) Vendor's A/c Dr.
To Sundry Assets A/c
(c) Sundry Assets A/c
To Cash A/c
(d) Cash A/c

To Vendor's A/c
Read the hypothetical text and answer Q.No. 5 to 8: 1
P, Q and R are partners in a firm. Their capitals are ₹ 30,000, ₹ 20,000 and ₹ 10,000
respectively. As per partnership deed,
i) R is to be allowed remuneration of ₹ 3,000 p.a
. ii) Interest on capital @ 5% p.a.
iii) Profits should be distributed in the ratio of 2:2:1.
Ignoring the above terms, net profit of ₹ 18,000 was distributed among the partners equally.
5 How much interest on capital is to be credited to the partner P? 1
a) ₹ 1,500 b) ₹ 1,000 c) ₹ 900 d) ₹ 800
6 How much profit is to be credited to the Partner Q after all adjustments?

a) ₹ 2,400 b) ₹ 4,800 c) ₹ 1,000 d) ₹ 1,200
7 What is the total profit to be credited to P, Q and R after all adjustments? 1

a) ₹ 12,000 b) ₹ 8,000 c) ₹ 9,000 d) ₹ 10,000
8 What is the amount of the past adjustment entry? 1
a) ₹ 350 b) ₹ 450 c) ₹ 250 d) ₹ 550
9 Debentures are shown in the Balance sheet of a company under the head of :
(a) Non-current Liabilities
(b) Current Liabilities
(c) Share Capital
(D)None of the above
10 Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. 1
The firm earned a profit of ₹ 30,000 during the year. Mohiť's share in the profit will be:
(a) ₹ 20,000
(b) ₹ 10,000
(c) (c) ₹ 15,000
(d) ₹ 18,000.
OR
On admission of new partner, accumulated loss is transferred to:
(a) Old partners' capital A/c
(b) Revaluation A/c
(c) All partner capital A/c
(d) None of these
11 Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
Reason (R):
Assertion (A): Gobind, Hari and Pratap are partners. On retirement of Gobind, the goodwill
already appears in the Balance Sheet at ₹ 24,000. The goodwill will be writtenoff by debiting
all partners' capital accounts in their old profit-sharing ratio Reason (R): Goodwill has been
earned by the efforts of all partners.
In the context of the above two statements, which of the following is correct:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Keason (R) 1s not the correct
explanation of Assertion (A).
(c)Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
OR
A B and C were partners in a firm sharing profits in the ratio of 3:2:1. B was guaranteed a
profit of ₹ 2,00,000 During the year the firm earned a profit of ₹ 84,000, Calculate the net
amount of Profit or Loss transferred to the Capital Accounts of A and C.
(a) ₹ 87,000
(b) ₹ 29,000
(c) ₹ 25,000
(d) ₹ 75,000
Reason (R)
Assertion (A): On the admission of a new partner, increase in the value of assets is debited to
revaluation account
Reason (R): Revaluation account is used to transfer the revalued amount of assets and
liabilities.
of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
(c) Assertion (A) is true but Reason (R) is false.
13 Sundry debtors are appearing at ₹ 216,000 and provision for doubtful debts at ₹12,000 in the 1
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.
OR
At the time of dissolution, How much amount will be paid to creditors of ₹ 50,000, if ₹ 10,000
of the creditors are not to be paid and the remaining creditors agreed to accept 5% less
amount:
(a) ₹ 28,000
(b) ₹ 38,000
(c) ₹ 37,500
(d) ₹ 36,500.
14 Abin, Babin and Chavi are partners in the ratio of 5:3:2. Before Babin's salary of ₹ 34,000 1
firm's profit is ₹ 1, 84,000. How much in total Babin will receive from the firm?
(a) ₹ 55,200
(b) ₹ 79,000
(c) ₹ 89,200
(D)₹ 45,000
15 Joy Ltd. issued 1,00,000 equity shares of ₹ 10 each. The amount was payable as follows: 1
On application- ₹ 3 per share
On allotment- ₹ 4 per share
On first and final call- balance
Applications for 95,000 shares were received and shares were allotted to all applicants. Sohan
to whom 500 shares were allotted failed to pay allotment money and Gautam paid his entire
amount due including the amount due on first and final call on the 750 shares allotted to him
along with allotment. The amount received on allotment was:
(a) ₹ 2,25,000
(b) ₹ 3,78,000
(c) ₹ 3,80,250
(d) ₹ 2,19,000
16 Identify the journal entry for the issue of forfeited shares at par: 1
(a) Bank Ac Dr.
To Share Capital A/c
(b) Bank A/c Dr.
Share Forfeiture A/c Dr.
(c) Share Forfeiture A/c Dr.
(d) None of these.
OR
A forfeited share can:
(a) Not be re-issued at discount
(b) re-issued at maximum discount of 10%
be re-issued at a maximum discount equal to the amount forfeited (d) none of the
above.
17 Arjun, Bhim and Nakul are partners sharing profits and losses in the ratio of 14:5:6 3
respectively. Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill of
the firm is valued at 2 years Purchase of super profits based on average Profits of last 3 years.
The profits for the last 3 years are ₹ 50,000, ₹ 55,000 and ₹ 60,000 respectively. The normal
profits for the similar firm are ₹ 30,000. Goodwill already appears in the books of the firm at
₹ 75,000.
The Profit for the first year after Bhim’s retirement was ₹ 1, 00,000.
Give the necessary Journal Entries to adjust Goodwill and distribute Profits showing your
working.
18 Divya purchased Jyoti's business with effect from 1st April, 2019. Profits shown by Jyoti's 3
business for the last three financial years were:
2016- Rs. 1,00,000 (including an abnormal gain of Rs. 12,500)
17
2017- Rs. 1,25,000 (after charging an abnormal loss of Rs. 25,000)
18
2018- Rs. 1,12,500 (excluding Rs. 12,500 as insurance premium on the firm's property-
19 now to be insured)
Calculate the value of the firm's goodwill on the basis of three year's purchase of the
average profit of the last three years.
19 Sunrise Company Ltd. has an equity share capital of Rs. 10,00,000. The company earns a 3
return on investment of 15% on its capital. The company needed funds for diversification.
The finance manager had the following options:
a. Borrow Rs 5,00,000 @ 15% p.a. from a bank payable in four equal quarterly
installments starting from the end of the fifth year, or
b. Issue Rs 5,00,000, 9% Debentures of Rs. 100 each redeemable at a premium of
10% after five years.
To increase the return to the shareholders, the company opted for option (ii). Pass the
necessary Journal entries for issue of debentures.
OR
X Ltd. forfeited 100 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had
paid application and allotment money of ₹ 5 per share. Out of these, 80 shares were re-
issued to Y for ₹ 8 per share as ₹ 8 paid up per share. Record the journal entries for
forfeiture and re-issue of shares by opening call in arrear account.
20 X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They decide 3
to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April,
2019. Following items appear in the Balance Sheet as at 31st March, 2019:
Rs. Rs.
General Reserve 75,000 Advertisement Suspense A/c 50,000
(Dr.)
Workmen Compensation 12,500 Profit and Loss Account (Cr.) 37,500
Reserve
21 Ankit limited was registered with authorised capital of Rs. 12000000 divided into 120000 equity 4
shares of Rs. 100 each. The company issued 6000 equity shares as fully paid to the vendor for
purchase of building and 50,000 equity shares were subscribe for by the public. All the calls
were made and were duly received accept the second and final call of Rs. 20 per share on 700
shares. Show how share capital will appear in the Balance Sheet of the company. Also prepare
'Notes to accounts' for the same.
22 Adam, Smith and Akbar are partners. They decided to dissolve the firm 31st March 2019. Pass 4
the necessary journal entries for the following, after the various assets (other than cash and
bank) and outside liabilities have been transferred to realisation account:
a) An old typewriter which was not recorded in the books was sold for Rs. 4000 whereas
its expected value was Rs. 3000.
b) Stock of Rs. 70000 was taken by Adam at a discount of 20%.
c) A creditor for Rs.30000 accepted machinery valued Rs. 28000 in full settlement of his
claim.
d) Loss on dissolution was Rs. 12000.
23 Saraswati Ltd invited applications for issuing 2,00,000 equity shares of Rs. 10 each. The 6
amounts were payable as follows
On application — Rs. 3 per share
On allotment — Rs. 5 per share
On first and final call — Rs. 2 per share
Applications were received for 3,00,000 shares and pro-rata allotment was made to all
the applicants. Money overpaid on application was adjusted towards allotment. B, who
was allotted 3,000 shares, failed to pay the first and final call money. His shares were
forfeited. Out of the forfeited shares, 2,500 shares were reissued as fully paid up @ Rs.
8 per share.
Pass necessary journal entries to record the above transactions in the books of Saraswati
Ltd.
OR
Record the journal entries for forfeiture and reissue in the following cases:
a) Xerox Ltd. Forfeited 200 shares of Rs. 100 each , Rs, 70 called up, on which the
shareholders had paid application and allotment money of Rs. 50 per share. Out of these,
150 shares were reissued to Namisha as Rs. 70 paid up for Rs. 80 per share. (3)
b) Yamuna Ltd. Forfeited 180 shares of Rs. 10 each , Rs, 8 called up, issued at a premium
of Rs. 2 per share to Rama for nonpayment of allotment money of Rs 5 per share
(including premium) . Out of these, 160 shares were reissued to Samita. As Rs. 8 called
up for Rs. 10 per share fully paid up. (3)
24 Babita and chaman are partners sharing profits in the ratio of 3:2. There Balance Sheet as on 6
31st March 2018 was as follows:
LIABILITIES AMOUNT ASSETS AMOUNT

(Rs.) (Rs.)
Creditors 60,000 Cash 16000
Provision for bad & 1000 Debtors 25000
doubtful debts
Babita's capital 60000 Furniture 10,000
Chaman’s capital 40000 Machinery 20,000
Land and building 80,000
Profit & loss account 10000
1,61,000 1,61,000
Diya was admitted to the partnership for 1/5 share in the profits on the following terms:
a) The new profit sharing ratio was decided at 2:2:1.
b) Diya will bring Rs. 50000 as her capital and Rs. 20000 for her share of goodwill.
c) Half of the goodwill amount was withdrawn by the partner/ partners who sacrificed
share in favour of Diya.
d) A provision of 5% for bad and doubtful debts was to be maintained.
e) An item of Rs. 500 included in sundry creditors was not likely to be paid.
f) A provision of Rs. 800 was to be made for claims for damages against the firm.
After making the above adjustments the capital account of Babita and Chaman were to be
adjusted on the basis of Diya's Capital, actual cash was to be brought in or to be paid off as the
case may be.
Prepare Revaluation account, and Partners' capital account.
OR
The balance sheet of Narang, Suri and Bajaj who share profits and losses 1/2 ,1/6
and 1/3 respectively. At 1 April 2017 was as follows:
(Rs.) (Rs.)
Creditors 18,000 Cash 7,000
Reserves 12,000 Debtors
20,000 19,000
Less: provision
1,000
Bills payable 12,000 Machinery 30,000
Narang’s capital 30,000 stock 22,000
Suri’s capital 30,000 Furniture 12,000
Bajaj’s capital 28,000 Freehold premises 40,000
1,30,000 1,30,000
Bajaj retires from the business on the following terms.
● Freehold premises and stock appreciated by 20% and 15% respectively.
● Machinery and furniture depreciated by 10% and 7% respectively.
● Bad debts reserve increased to 1500.
● Goodwill valued at 21,000 on bajaj’s retirement.
Continuing partners decided to adjust their capitals in new profit ratio after retirement
of Bajaj.Surplus or deficit if any adjusted through current A/Cs.
Prepare Revaluation A/C, and partners Capital A/cs
25 Vijay, Vivek and Vinay are partners in a business sharing profits as 3/4, 1/8 and 1/8 respectively 6
and their Balance Sheet as at 31st March, 2020 was:
Liabilities (₹) Assets (₹)

Capital A/c: Plant 5,00,000
Vijay 5,00,000 Debtors 4,00,000
Vivek 3,00,000 Stock 2,00,000
Vinay 2,50,000 Cash 50,000
General Reserve 50,000 Bank 2,50,000
Loan by Vinay 50,000
Creditors 2,50,000
14,00,000 14,00,000
Vinay died on 31st December, 2020 and the Partnership Deed provided the following:
(a) The deceased partner will be entitled to his share of profits up to the date of death, calculated
on the basis of previous year’s profits.
(b) He will be entitled to his share of goodwill of the firm, calculated on the basis of three years’
purchase of the average profits of the four years. The net profits for the last four years ended
31st March, 2017 – ₹ 8,00,000; 2018 – ₹ 6,00,000; 2019 – ₹ 4,00,000 and 2020 – ₹ 2,00,000.
(c) His drawing up to the date of death was ₹ 18,000.
Determine the amount payable to the legal representatives of the deceased partner by preparing
the accounts.
26 Pass necessary Journal Entries:- 6

A. Sandesh Ltd. took over the assets of Rs. 7,00,000 and liabilities of Rs.2,00,000 from
Sanchar Ltd.for a purchase consideration of Rs.4,59,000. Rs.85000 were paid by
accepting a draft in favour of Sanchar Ltd. payable after three months and the balance
was paid by issue of equity shares of Rs.10 each at a premium of 10% in favour of
Sanchar Ltd. (4)
B. A company issued Rs.40,000, 12% Debentures at a discount of 5% and redeemable at
5% premium. (2)
Part B :- Analysis of Financial Statements
27 Revenue from Operations Rs. 4,00,000; Cost of Revenue from Operations 60% of Revenue 1
from Operations; Operating expenses Rs. 30,000 and rate of income tax is 40%. What will be
the amount of profit after tax?
(a) Rs. 64,000
(b) Rs. 78,000
(c) Rs. 52,000
(d) Rs. 96,000
OR
Name two accounting ratios which are complementary to each other:
(a) Current ratio and Quick ratio
(b) Operating ratio and operating profit ratio
(c) Gross profit ratio and Net Profit ratio
(d) (d) All of these
28 Under which major headings and sub-heading will “Provision for employee benefits “shown 1
in the Balance Sheet of a company as per Schedule III of Companies Act, 2013?
(a) Head: Non-current liability Sub head ; Deferred provision
(b) Head: Non-current liability Sub head ; Long term provision
(c) Head: Current liability Sub head ; Current liability
Head: Current liability Sub head ; Short term provision
29 Proposed dividend is a : 1
(a) Current liability (b) Noncurrent liability
(c) other current liability (d) contingent liability
30 Balance Sheet (Extract) 1
Equity and liabilities 31-3-2019 (₹) 31-3-2020 (₹)

10% Debentures 2,00,000 1,60,000
Additional Information:
Interest on debentures is paid on half yearly basis on 30th September and 31st March each
year. Debentures were redeemed on 30th September, 2019. How much amount (related to
above information) will be shown in Financing Activity for Cash Flow Statement prepared
on 31st March, 2020?
a. Outflow ₹ 40,000.
b. Inflow ₹ 42,000.
c. Outflow ₹ 58,000.
d. Outflow ₹ 64,000
31 1. How would you disclose the following items in the Financial Statements of a Limited 3
Company?
a. Outstanding Salary
b. Bank Balance
c. Unpaid Matured Deposits
d. Preliminary Expenses
e. Bills Payable
f. Sale of Services
32 State giving reasons, which of the following transactions would increase, decrease or not 3
change the Stock Turnover Ratio.
(a) Sale of goods for Rs. 25,000 (costing Rs. 20,000)
(b) Increase in the value of closing stock by Rs.12,000
(c) Goods purchased for Rs. 50,000.
(d) Purchase Return amounting to Rs. 5,000
(e) Goods costing Rs. 15,000 distributed as free samples.
(f) Goods costing Rs. 5,000 withdrawn for personal use.
33 A. Cost of goods sold is rs. 240000; inventory turnover is 8 times; stock at beginning is 1.5 4
times more than the stock at the end. Calculate value of opening and closing inventory.
(2)
B. From the following information related to sourav ltd., calculate quick ratio
Fixed assets rs.75,00,000; current assets rs.40,00,000; current liabilities rs.27,00,000;
inventories rs. 13,00,000; 12% debentures rs.80,00,000, share capital rs.1,05,00,000, p/l a/c
debit balance rs.5,00,000
(2)
OR
When Debt to Equity Ratio is 2 : 1, state giving reason, whether this ratio will increase or
decrease or will have no change in each of the following cases:
i. Sale of Land (Book value Rs.4,00,000) for Rs.5,00,000;
ii. Issue of Equity Shares for the purchase of Plant and Machinery worth
Rs.10,00,000;
Prepare a cash flow statement from the following balance sheet: 6
Note 31.3.2018 31.3.2017

Particulars
No.
I. EQUITY AND LIABILITIES:
(1) Shareholder’s Funds:
(a) Share Capital 4,50,000 3,80,000
(b) Reserve & Surplus 1 2,06,000 1,74,000
(2) Non-Current Liabilities:
Long-term Borrowings 2 75,000 50,000
(3) Current Liabilities:
(a) Short-term Borrowings 3 50,000 20,000
(b) Trade Payables 4 43,000 42,000
TOTAL 8,24,000 6,66,000
II. ASSETS:
(1) Non-Current Assets:
(a) Fixed Assets 2,10,000 1,75,000
(b) Non-Current Investments 5 40,000 25,000
(2) Current Assets:
(a) Inventory 3,00,000 2,80,000
(b) Trade Receivables 2,44,000 1,52,000
(c) Cash and Bank Balances 30,000 34,000
TOTAL 8,24,000 6,66,000
Notes to Accounts:
31.3.2018 31.3.2017
1 Reserve & Surplus :
General Reserve 1,40,000 1,00,000
Profit & Loss Balance 66,000 74,000
2,06,000 1,74,000
2 Long-term Borrowings :
10% Public Deposits 75,000 50,000
3 Short-term Borrowings :
Cash Credit 50,000 20,000
4 Trade Payables :
Sundry Creditors 35,000 28,000
Bills Payables 8,000 14,000

43,000 42,000
5 Rate of Interest on Non-Current Investments: 12% p.a.

i. A new machinery was purchased for Rs. 50,000 during the year.
ii. Non-Current Investments costing Rs. 25,000 were sold at a loss of Rs. 3,000 at the end
of the year.
SAMPLE PAPER SET-2
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.

QUESTI QUESTION MAR
ON NO. KS
1 Yash and Manan are partners sharing profits in the ratio of2:1. They admit 1
Kushagra into partnership for 25% share of profit. Kushagra acquired
the share from old partners in the ratio of 3:2. The new profit-sharing
ratio will be:
a) 14:31:15
b) 3:2:1
c) 31:14:15
d) 2:3:1
2 True/ False: 1
Securities premium received on issue of shares cannot be used for the
purpose of buy back of shares.
Or
1. Excess value of net assets over purchase consideration at the time
of purchase of business is credited to:
a. General reserve
b. Capital reserve
c. Vendor's account
d. Goodwill account.
3 U V and W are partners sharing profits in the ration of 2:3:5. They also 1
decide to record the effect of the following revaluations and
reassessments without affecting the book values of assets and
liabilities by passing a single adjustment entry:
Book Value (Rs) Revised Value
(Rs)
Land and Building 3,00,000 3,50,000
Furniture 1,50,000 1,00,000
Outstanding 10,000 15,000
Salaries
The single adjustment entry will

(a) Dr. W and Cr. U by 10,500
(b) Dr. U and Cr. W by Rs. 10,500
(c) Dr. V and Cr. U by Rs. 10,500
(d) Dr. W and Cr. V by Rs. 10,500
4 10% debenture issued at Rs105 is repayable at Rs110, the face value of 1

debenture being Rs100. Calculate the amount of loss on redemption of
debentures:
a. 10
b. 5
c. 15
d. 25.
OR
A ltd took over the assets of Rs6,60,000 and liabilities of Rs80,000 of B

Ltd for an agreed purchase consideration of Rs6,00,000 payable 10% in
cash and the balance by issue of 15% debentures of Rs100 each at 10%
discount. The number of debentures to be issued is:
e. 6600
f. 5400
g. 6000
h. 4500
5 The subscribed share capital of Mukand Ltd is Rs.1,00,00,000 of Rs.100 1

each. There were no calls in arrear till the final call was made. The final
call made was paid on 97,500 shares. The calls in arrear amounted to
Rs.87,500.The final call on share :
A)Rs.20
B)Rs.35
C)Rs.25
D)Rs.45
6 A and B are partners sharing profit and losses in ratio of 5:3. C is admitted 1
for 1/4th share. On the date of reconstitution, the debtors stood at Rs
40,000, bill receivable stood at Rs. 10,000 and the provision for
doubtful debts appeared at Rs. 4000. A bill receivable, of Rs 10,000
which was discounted from the bank, earlier has been reported to be
dishonored. The firm has sold, the debtor so arising to a debt
collection agency at a loss of 40%. If bad debts now have arisen for
Rs 6,000 and firm decides to maintain provisions at same rate as
before then amount of Provision to be debited to Revaluation Account
would be:
a) Rs 4,400
b) Rs 4,000
c) Rs 3,400
d) None of the above
7 If a partner withdraws `40,000 out of his capital. Its effect will be recorded 1
as:
a) Deducted from capital while calculating interest on capital,
b) Used for the calculation of interest on drawings,
c) Both a and b,
d) None of these.
OR
Any change in the relationship of existing partners which results in an end
of the existing agreement and enforces making of a new agreement is
called:
a) Realisation of Partnership
b) Revaluation of partnership
c) Reconstitution of partnership
d)None of the above
Read the following hypothetical text and answer the given questions 1
Amit and Mahesh are partners in fast food sharing profits and losses in
3:2. They sold fast food item across the counter and did free home
delivery also. Their initial fixed capital contribution was Rs. 120000 and
Rs. 80000 respectively.
At the end of the first year their profit was Rs. 120000 before allowing the
remuneration of Rs. 3000 per quarter to Amit paid Rs. 2000 per half year
to Mahesh. Such a promising performance for the first year was
encouraging, therefore they decided to expend the area of operations.
For the purpose they needed a delivery van a few Scotties and an
additional person to support. 6 months into the accounting year decided to
admit Sundaram as a new partner and Offred his 20% as a share of profit
along with monthly remuneration of Rs. 1200. Sundaram was asked to
introduce Rs. 130000 for capital and Rs. 70000 for premium for goodwill.
Besides the Sundaram was acquired to provide Rs. 100000 as loan for 2
years. Sundaram readily accepted the offer. The terms of the offer were
duly executed and was admitted as a partner.
8 Remuneration will be transferred to --------- of Amit and Mahesh at the
end of the accounting year.
(a) Capital account
(b) Loan account
(c) Current account
(d) None of the above
9 Upon the admission of Sundaram the sacrifice for providing his share of
profits would be below
(a) By Amit omly
(b) By Mahesh only
(c) By Amit and Mahesh equally
(d) By Amit and Mahesh in the ratio of 3:2
10 Sundaram will be entitled to a remuneration of ----------- at the end of the

year.
(a) Rs. 10000
(b) Rs. 15000
(c) Rs. 20000
(d) Rs. 25000
11 For the amount of the loan that Sundaram has agreed to provide he is
entitled to interest thereon at the rate of ----------
(a) 6%
(b) 5%
(c) No interest will be provided
(d) 8%
12 X and Y are partners in 3:2. They decided to change the ratio in equal 1
proportion. At that time reserve appears in the books worth ` 20,000. What
will be the treatment of reserve if the partners do not want to distribute?
a) General reserve account Dr 20,000
To X
12,000
To Y
8,000
b) General reserve account Dr 20,000
To X
10,000
To Y
10,000
c) Y' Capital a/c Dr. 2,000
To X's capital account 2,000
d) None of these.
13 E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on 1
pro-rata basis, application money on another 6000 shares was refunded
.The amount payable on the application was Rs.2. Sitar aman applied for
420 shares . The number of shares allotted to him will be:
(A.) 60 shares
(B.) 340 shares
(C.) 320 shares
(D.) 300 shares
OR
If a partner withdrew `10,000 in the end of each quarter throughout the

year. For what period interest will be calculated on his drawings?
a) 7.5 months,
6.5 months,
b) 5.5 months,
4.5 months.
14 Amount of money not received out of called up capital is : 1

(A.) Added to share capital
(B.) Subtracted from share capital
(C.) Shown as current liabilities
(D.) Shown as current asset
15 Match the following: 1

i. Sacrificing Ratio A Nominal Account
ii. Gaining Ratio B Reconstitution of Partnership
iii. Revaluation Account C New Ratio – Old Ratio
iv. Admission of a Partner D Old Ratio – New Ratio
a) i- B, ii-C, iii-A, iv-D

b) i- D, ii-B, iii-A, iv-C
c) i- D, ii-C, iii-A, iv-B
d) i- D, ii-C, iii-B, iv-A
OR
E,F and G are partners sharing profits and losses 3:3:2. As per partnership
agreement G is to get a minimum amount of Rs. 80000 as his share of
profit every year. Any deficiency on his account is to be personally borne
by E. the net profit for the year ended 31st march 2020 amounted to Rs.
312000. Calculate the amount of deficiency to be borne by E
(a) 1000
(b) 2000
(c) 3000
(d) 4000
16 In case of dissolution A one of the partner was paid only RS5000 for his 1
loan to the firm which amounted to Rs5500. Rs 500 will be recorded in
which account and on which side:
a. Realisation account credit side correct
b. Realisation account debit side
c. loan account debit side
d. A's capital account credit side.
17 M, B and K are partners sharing profits in the ratio of 6:4:1. K is 3

guaranteed a minimum profit of Rs. 2,00,000. The firm incurred a loss of
Rs. 22,00,000 for the year ended 31st march 2018. Pass necessary journal
entry regarding deficiency borne by M and B and prepare profit and loss
appropriation A/c.
OR
The partners of a firm, A,B and C distributed the profits for the year ended
31st march, 2017, Rs. 80,000 in the ratio of 3:3:2 without providing for the
following adjustments:
a) A and C were entitled to a salary of Rs. 1,500 each p.m.
b) B was entitled for a salary of Rs. 4,000 p.a.
Pass necessary journal entry for the above adjustment
18 A, B and C are partners in a firm whose books are closed on March 31 3
each year. A died-on 30th June, 2021 and according to the agreement, the
share of profits of a deceased partner up to the date of the death is to be
calculated on the basis of the average profits for the last five years.
The net profits for the last 5 years have been: 2017- ₹ 14,000;
2018- ₹ 18,000; 2019- ₹ 16,000; 2020- ₹10,000 (loss) and 2021- ₹ 16,000.
Calculate A’s share of the profits upto the date of death and pass
necessary journal entry.
19 P Ltd. Purchase business from Q Ltd. for a sum of 3,00,000, payable a 3

80,000 by issuing a cheque and the balance in fully paid equity shares of
100 each at 10% premium.
The assets and liabilities consisted the following:
Building 4,00,000 Bills Payable 30,000
Bills Receivables 50,000 Sundry creditors
40,000
Pass necessary journal entries in the books of P Ltd.
OR
Venus ltd is a real estate co. The company took over assets of Rs
10,00,000and liabilities of Rs 1,80,000 of Cains Ltd for Rs 7,60, 000.Venus
Ltd. issued 9% debentures of Rs 100 each at a discount of 5% in full
satisfaction of purchase consideration in favour of Cains ltd
Pass journal entries in books of Venus Ltd.
20 The net assets of the firm including fictitious assets of 5,000 are 3
85,000.The net liabilities of the firm are 30,000.The normal rate of
return is 10% and the average profits of the firm are 8,000.Calculate
the goodwill as per capitalization of super profits.
21 On 1st april 2017 Aradhana Ltd. Was formed with an authorised capital of 4
Rs. 90,00,000 divided into 90,000 shares of Rs. 100 each. The company
invited applications for issuing 75,000 equity shares.
The amount was payable as follows:
On application----- Rs. 20 per share
On allotment------- Rs. 50 per share
On first and final call Balance amount
The issue was fully subscribed and the company allotted shares to all the
applicants. All money was received except the first and final call on 5,000
shares.
1. Show the share capital in the balance sheet of the company as per
schedule III of the companies act, 2013 as at 31st march, 2018 and
also show notes to A/c.
OR
Shyam Ltd. Obtained a loan of Rs 5,00,000 from State Bank of India at
10% interest.
The company issued Rs 7,50,000, 10% debentures of Rs 100 each in
favour of State Bank of India as collateral security. Pass necessary journal
entries for the above transactions:
(i) When the company decided not to record the issue of 10%
Debentures as collateral security
(ii) When the company decided to record the issue of 10%
Debentures as collateral security
22 The firm of Rakesh, Kunal and Suresh was dissolved on 31.03.2019. pass 4
necessary journal entries for the following after various assets (other than
cash and bank) and the Third party liabilities had been transferred to
realisation A/c.
(i) Kunal agreed to pay of his wife’s loan of Rs. 6,000.
(ii) Total creditors of the firm were Rs. 40,000. Creditors worth Rs.
10,000 were given a piece of furniture costing Rs. 8,000 in full
and final settlement. Remaining creditors allowed a discount of
10%.
(iii) A machine that was not recorded in the books was taken over by
Kunal at Rs. 3,000 whereas its expected value was Rs. 5,000.
The firm had a debit balance of Rs. 15,000 in the profit and loss A/c on
the date of dissolution.
23 6
Creative Ltd issued equity shares Rs.10,00,000 divided into Rs.10 shares
at a premium @ 20% per share, payable as under:
On Application Rs.3 per share
On Allotment Rs.5 per share (including premium)
On First and Final Call Balance
Over payments on application were to be applied towards sums
due on allotment. Where no allotment was made, money was to be
refunded in full. The issue was oversubscribed to the extent of 1,20,000
shares. Applicants for 10,000shares were sent letters of regret. Shares
were allotted in full to the remaining applicants. All the money due was
duly received except a shareholder who applied for 110 shares failed to
pay allotment and first call his share were forfeited and re-issue at Rs.950
fully paid up.
Give Journal Entries to record the above transactions in the books of the
company.
Or
x limited company invites applications for 50,000 equity shares of Rs. 10
each, at a maximum discount by the Companies Act, payable as follows:
On application Rs. 3; on allotment Rs. 3; on first call Rs. 2; on final call
the balance.
Applications were received for 55,000 shares. Allotments were made on
the following
basis:
(i) To applicants for 35,000 shares- in full
(ii) To applicants for 20,000 shares- 15,000 shares.
(i) Excess money paid on application was utilized towards
allotment money. A shareholder who was allotted 1,500 shares
out of the group applying for 20,000 shares Failed to pay
allotment money and money due on calls. These shares were
forfeited. 1,000 forfeited shares were reissued as fully paid on
receipt of Rs. 8 per share. Pass journal entries.
24 L and M share profits of a business in the ratio of 5:3. They admit 6

N into the firm for fourth share in the profits to be contributed
equally by L and M. On the date of admission the balance sheet of
L and M was as follows:
Liabilities Amt (Rs.) Assets Amt (Rs.)
Capitals: Machinery 26,000

L 30,000 Furniture 18,000
M 20,000 Stock 10,000
Reserve Fund 4,000 Debtors 8,000
Bank Loan 12,000 Cash 6,000
Creditors 2,000
68,000 68,000
The terms of N’s admission were as follows:

i) N will bring Rs. 25,000 as his capital.
ii) Goodwill of the firm is to be valued at 4 years purchase of
the average super profit of the last three years.
Average profits of the last three years are Rs.20,000. While the
normal profits that can be earned on the capital employed are
Rs.12, 000.
Furniture is to be revalued at Rs.24,000 and the value of the stock to be

reduced by 20%. Prepare revaluation account, partners capital and balance
sheet of the firm after admission of N.
OR
The Balance Sheet of A,B and C who were sharing profits and losses in
the ratio of ½, 1/3, and 1/6 respectively, was as follows on 01/04/2018:
Liabilities Amount (Rs.) Assets Amount (Rs.)

Bills Payable 6,400 Cash 25,650
Sundry 12,500 Bills Receivable 5,400
Creditors
A’s Capital 40,000 Debtors 17,800
B’s Capital 25,000 Stock 22,300
C’s Capital 20,000 Furniture 3,500
Profit & Loss 4,500 Machinery 9,750
A/cs
Buildings 24,000
1,08,400 1,08,400
‘A’ retired from the business on 01/01/2018 and his share in the firm was
to be ascertained on the revaluation of the assets as follows:
(i) Stock Rs 20,000, Furniture Rs 3,000, Plant & Machinery Rs
9,000, Building Rs 20,000
(ii) Rs 850 was to be provided for doubtful debts
(iii) The Goodwill of the firm was valued at Rs 6,000
(iv) ‘A’ was to be paid Rs 11,500 in cash on retirement and the
balance in three equal yearly instalments with interest at 9%
per annum.
Prepare revaluation acc, capital acc of partners.
25 A ,B and C are partners in a firm sharing profits in the ratio of 5:3:2 on 1st 6
april 2016, the capitals of the partners were Rs.500000, Rs.300000, and
200000, respectively. The firm closes its books on 31st march every year,
C dies on 5 april 2016, On this that :
a. goodwill of the firm was valued at Rs.30000, and
b. gain on Revaluation was calculated at Rs.8000
c. Advertisement Suspense Account appearing in the books was
Rs.10000
d. C’s share of profit till the date of his death was calculated as
Rs.200.
Prepare C’s capital a/c to be rendered to his executors.
26 Journalise the following transactions: 6
(a) Mehar Ltd. Issued Rs. 1,00,000, 12% debenture of Rs. 100 each at
a premium of 5% redeemable at a premium of Rs. 2%.
(b) 12% debenture were issued at a discount of 10% to a vendor of
machinery for payment of Rs. 9,00,000.
(c) Issued of 10,000 11% debenture of Rs. 100 each as a collateral in
the favour of state bank of india. Company opted to pass necessary
entry for issue of debentures.
OR
Faith and belief Ltd. Has total redeemable debenture of Rs. 5,00,000. It
decides redeem these debentures in two instalment of Rs. 3,00,000 and Rs.
2,00,000 on December 31st march 2018 and march 2020 respectively.
Assuming that the company has sufficient funds in debenture redemption
reserve A/c. Pass necessary journal entries for the year ending march
31st,2020.
PART B
27 Assuming liquid ratio of 1.2:1 cash collected from debtors would 1
1) increase
2) decrease
3) no effect
28 Interest received by other than financial enterprise is shown in the Cash 1

Flow Statement under ………………..activity
(a) Financing activity
(b) Operating activity
(c) Investing activity
(d) None of these
OR
Which of the following is not a limitation of Finnancial Statement
Analysis?
a) ignores the Qualitative elements
b) not free from personal bias
c) intra-firm comparison
d) ignores the price level changes
29 Sale of a machinery costing Rs 70,000 (accumulated depreciation of Rs 1

40,000) is sold at a profit of 20%. The amount of cash inflow will be:
(a) Rs 30,000
(b) Rs 70,000
(c) Rs 36,000
(d) Rs 48,000
30 Which of the following is not included in cash and cash equivalents? 1

(a) Balance with banks
(b) Bank deposits with 100 days of maturity
(c) Cash in hand
(d) Bank deposits with 90 days of maturity
OR
Which of the following is not a part of cash and cash equivalents:
a) marketable securities b) Current investments c)short-
term deposits d)stock
31 Under which head and subhead, the following items will be shown in B/S 3
of a company as per companies Act 2013?
1. Creditors
2. Calls on advance
3. Copyright
4. Investment
5. Unclaimed dividend
6. Interest accrued
32 Explain three advantages of financial statements. 3
33 a) From the following information, calculate inventory turnover ratio: 4
Net sales Rs 4,00,000,
Average inventory Rs 55,000,
Gross loss on sales is 10%.
b) A company had current Assets of Rs 3,00,000 and current liabilities of
Rs 1,40,000. Afterwards it purchased goods for Rs 20,000 on credit.
Calculate current ratio after the purchase.
34 Prepare of Cash Flow Statement on the basis of the information given in 6

the Balance Sheet of Useless Limited
Particulars Note No 31-03-2014 31-03-2013
(Rs.) (Rs.)
1 2 3 4
I.EQUITY AND
LIABILITIES
1.Share Holder’s Fund
(a)Share Capital 70,000 60,000
(b)Reserve and Surplus 1 44,000 8,000
2. Non-Current Liabilities
a) Long term borrowings: 2 50,000 50,000
3.Current Liabilities
(a)Trade Payables 25,000 9,000
TOTAL 1,89,000 1,27,000
II.ASSETS
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible assets 98,000 84,000
(b) Non-current 16,000 6,000
investments
2) CURRENT ASSETS
(a) Current investments 18,000 20,000
(Marketable) 49,000 12,000
(b) Inventories 8,000 5,000
(c) Cash & Cash
Equivalents
TOTAL 1,89,000 1,27,000
Notes to Accounts
Particulars
1. Reserves & Surplus
General Reserve 30,000 20,000
Surplus i.e. Balance in 14,000 (12,000)
Statement of Profit and
Loss
Additional information:-
(a)Depreciation provided on tangible assets (Machinery) Rs.8,000
for the year.
(b)Interest paid on debenture Rs. 5,000.
SAMPLE PAPER SET-3
marks.
1 Choose the correct answer from the given options: A company purchased machinery for 1
Rs.6, 00,000, out of which Rs.1, 00,000 was paid immediately and the balance amount
was discharged by issue of equity shares of Rs.10 each at 25% premium. How many
shares will be issued by the company to the vendor?
a) 50,000 shares b) 40,000 shares c) 60,000 shares d) 48,000 shares
OR
As per the SEBI Guidelines the minimum subscription of capital could not be less than?
(i) 80%. (ii) 90%
(iii) 70%. (iv) 60%
2 Manoj and Manthan are partners in a firm without any partnership deed. Their capitals 1
are Rs.10,00,000 and Rs.8,00,000, respectively. Manoj is an active partner and looks
after the business. Manoj wants a salary of Rs.10,000 per month and profits should be
shared in the capital ratio. State with the reason whether his claim is valid or not.
OR
According to Profit and Loss Account, the net profit for the year is ` 4,20,000. Salary of
a partner is` 5,000 per month and the commission of another partner is` 10,000. The
interest on drawings of partners is `4,000. The net profit as per Profit and Loss
Appropriation Account will be:
(A)` 3,54,000 (B)` 3,46,000 (C)` 4,09,000 (D)` 4,01,000
3 Choose the correct answer from the options given below: Sunil and Suman were 1
partners in a firm sharing profits in 3:2 ratio. From 1st March, 2022, they decided to
change it to 3:1. For this purpose the goodwill of the firm was valued at Rs.2, 60,000.
Which of the following is correct accounting treatment of goodwill.
a. Debit Sunil, Credit Suman by Rs.39,000
b. Debit Suman, Credit Sunil by Rs.2,60,000
c. Debit Suman and Credit Sunil by Rs.39,000
d. Debit Sunil, Credit Suman by Rs.2,60,000
OR
A, B and C are partners sharing profits in the ratio of 4 : 3 : 2 decided to share profits
equally. Goodwill of the firm is valued at 10,800. In adjusting entry for goodwill :
(A) A’s Capital A/c Cr. by 4,800; B’s Capital A/c Cr. by 3,600; C’s Capital A/c Cr. by
2,400.
(B) A’s Capital A/c Cr. by 3,600; B’s Capital A/c Cr. by 3,600; C’s Capital A/c Cr. by
3,600.
(C) A’s Capital A/c Dr. by 1,200; C’s Capital A/c Cr. by 1,200;
(D) A’s Capital A/c Cr. by 1,200; C’s Capital A/c Dr. by 1,200
4 Balance of Share Forfeiture account is shown in the balance sheet under the item : 1
(a) Current Liabilities & Provisions (b) Reserves & Surplus (c) Share Capital (d)
Unsecured Loans
Amar, Binod and Chaman are in trading business of Jute and Jute products. They have 1
been sharing profits equally up to the year ended 31st March, 2020. They reconstituted
the firm and profit-sharing ratio was changed to 3:2:1. Chaman being a working partner
demanded that he should be paid annual salary of ₹ 75,000. The partners did not agree to
salary
demanded by Chaman but agreed to give him minimum guaranteed profit of ₹ 60,000.
Their 1capitals as on 1st April, 2020 were ₹ 5,00,000, ₹ 4,00,000 and ₹ 3,00,000
respectively. Profit for the year ended on 31st March, 2021 was ₹ 3,00,000. Answer the
following questions (5-8) on the basis of above
5 What will be partners’ profit share if Chaman’s share of profit is guaranteed at ₹ 1
60,000?
a) ₹ 1,50,000, ₹ 90,000, ₹ 60,000 b) ₹ 1,90,000, ₹ 50,000, ₹ 60,000 c) ₹
1,60,000, ₹ 80,000, ₹ 60,000 d) ₹ 1,44,000, ₹ 96,000, ₹ 60,000
6 What will be partners’ profit share if deficiency in Chaman’s profit share is to be borne 1
by Amar and Binod in the ratio of 4:1?
a) ₹ 1,50,000, ₹ 90,000, ₹ 60,000 b) ₹ 1,42,000, ₹ 98,000, ₹ 60,000 c) ₹
1,44,000, ₹ 96,000, ₹ 60,000 d) ₹ 1,20,000 ₹ 1,20,000, ₹ 60,000
7 What will be partners’ profit shares, if Chaman’s share of profit is guaranteed by Amar 1
personally? a) ₹ 1,40,000, ₹ 1,00,000,
₹ 60,000 b) ₹ 1,44,000, ₹ 96,000, ₹ 60,000
c) ₹ 1,60,000, ₹ 80,000, ₹ 60,000 d) ₹ 1,20,000, ₹ 1,20,000, ₹ 60,000
8 What will be partners’ profit shares, if Chaman’s share of is guaranteed after allowing 1
interest on capital @ 6% p.a. a) ₹
1,09,600, ₹56,400, ₹ 60,000 b) ₹ 89,600, ₹ 76,400, ₹ 60,000 c) ₹ 99,600, ₹
66,400, ₹ 60,000 d) ₹ 1,00,800, ₹ 67,200, ₹ 60,000
9 A company issued 10,000 shares of Rs.10 each at par for which Application were 1
received for 50,000 shares. Amount called up:- On application Rs.4 each, on allotment
Rs.3 and final call remaining Amount Shares were allotted on pro-rata basis Excess
money will be refunded. After utilization for allotment and final call. The Bank A/c will
be credited with Rs. _______. A. Rs. 4,00,000 B. Rs. 1,00,000 C. Rs.
3,00,000 D. Rs. 5,00,000
10 A and B are in partnership sharing profits in the ratio of 3 : 2. They take C as a new 1
partner. Goodwill of the firm is valued at ` 3,00,000 and C brings ` 30,000 as his share
of goodwill in cash which is entirely credited to the Capital Account of A. New profit
sharing ratio will be:
(A) 3 : 2 : 1 (B) 6 : 3 : 1 (C) 5 : 4 : 1 (D) 4 : 5 : 1
OR
State the true statement out of the following:
(a)Goodwill at the time of retirement of a partner is credited to continuing
Partners’ Capital Accounts in their sacrificing ratio.
(a) Goodwill at the time of retirement of a partner is credited to continuing Partners’
Capital Accounts in their gaining ratio.
(b) Goodwill at the time of retirement of a partner is debited to continuing Partners’
Capital Accounts in their sacrificing ratio.
Goodwill at the time of retirement of a partner to the extent of retiring partner’s share is
debited to continuing Partners’ Capital Accounts in their gaining ratio.
11 Assertion (A) – Rent paid or payable to a partner is a charge against profit. Reason (R) 1
– Rent paid or payable to the partner is credited to the Profit & Loss A/c.
A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
12 All liabilities except Partner’s Capital Accounts are transferred to Realisation Account. 1
(TRUE/FALSE)
13 A, B and C were partners sharing profits in the ratio 2 : 2 : 1, having capital accounts as 1
Rs. 50,000, Rs. 50,000 and Rs. 25,000, respectively. B retired. On that date, balance in
General Reserve was Rs. 15,000. If firm’s Goodwill is valued at Rs. 30,000 and Gain
(profit) on Revaluation is Rs. 7,050, amount payable to B will be:
(a) Rs. 50,820 (b) Rs. 70,820
(c) Rs. 8,820 (d) Rs. 9,000
OR
If the partnership Deed is silent about interest on capital,
a) No interest on capital is payable
b) Interest on capital payable @6℅
c) Interest on capital payable in their profit sharing ratio
14 Assertion (A) : In order to compensate a partner for contributing capital to the firm in 1
excess of the profit sharing ratio , the firm pays such interest on Partners’ Capital.
Reason (R) : Interest on Capital is treated as a charge against profits.
assertion.
15 Luxor Ltd. issued 10,000, 7% debentures of ₹ 100 each at a discount of ₹ 4 redeemable 1
at a premium of ₹ 6. It will write off loss on Issue of debentures from:
(a) Securities Premium Reserve
(b) Statement of Profit and Loss Account
(c) Capital Reserve (d) General Reserve
OR
Debenture holders are the ……….of a company
A. Debtors B. Owners
C. Creditors D. Borrowers
16 Assertion (A): At the time of Dissolution of Partnership Firm, The amount received 1
from realisation of all the assets of the firm is used first of all to pay the external
liabilities of the firm Reason
(R): As per the Partnership Act, outside liability should be paid first of all at the time of
dissolution of partnership firm.
assertion.
17 Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4 : 3 : 3. 3
Their fixed capitals on 1st April, 2021 were ₹ 9,00,000, ₹ 5,00,000 and ₹ 4,00,000
respectively. On 1st November, 2021, Yadu gave a loan of ₹ 80,000 to the firm. As per
the partnership agreement:
(i) The partners were entitled to an interest on capital @ 6% p.a.
(ii) Interest on partners’ drawings was to be charged @ 8% p.a. The firm earned
profits of ₹ 2,53,000 (after interest on Yadu’s loan) during the year 2020 −
21. Partners’ drawings for the year amounted to Yadu : ₹ 80,000, Vidu : ₹
70,000 and Radhu : ₹ 50,000. Prepare Profit and Loss Appropriation Account
for the year ending 31st March, 2022.
OR
On 1st April, 2021, Bindu and Nirja entered into partnership to construct toilets in
government schools in the remote areas of Uttar Pradesh. They contributed capitals of
Rs.20, 00,000 and Rs.30, 00,000 respectively.
Their profit-sharing ratio was 2:3 and interest allowed on capital as provided in the
Partnership Deed was 12% per annum. During the year ended 31st March, 2022, the
firm earned a profit of Rs.5, 40,000.
Prepare Profit and Loss Appropriation Account of Bindu and Nirja for the year ended
31st March, 2022.
18 A , B and C were partners producing electronic goods and sharing profits and losses in 3
the ratio of 2: 3:4. They decided to share future profits and losses in the ratio of 4:3:2.
They also decided to record the effect of the following without affecting their book
value: General Reserve Rs 1,60,000 Profit and Losses account (Cr) Rs 80,000
Advertisement suspense account Rs 60,000 You are required to give the necessary
journal entries.
OR
Aadi, Bali and Khali were partners sharing profits in the ratio of 6:4:5. Their capitals
were Aadi- Rs.8,00,000, Bali- Rs.4,80,000 and khali- Rs.4,60,000. On 1st April, 2018,
Bali retired from the firm and the new profit-sharing ratio between Aadi and khali was
decided as 11:4.
On Bali's retirement, the goodwill of the firm was valued at Rs.5,25,000. Show your
working clearly and pass necessary Journal entry for the treatment of goodwill on Bali's
retirement
19 Abhishek Ltd. is registered with capital of ₹ 50,00,000 divided into 50,000 equity shares 3
of ₹ 100 each, The Company issued 25,000 equity shares for subscription. Subscription
was received for 23,750 shares and all the due amount was duly received, except the
first and final call of ₹ 20 per share on 600 shares. Show the 'Share Capital' in the
Balance Sheet of the company.
OR
(i) Mehar Ltd, issued 1,00,000,12% debentures of ₹ 100 each at a premium of
5%, redeemable at a premium of 2%
(ii) Issue of 10,000, 11% debentures of ₹ 100 each as collateral in favour of State Bank
of India. Company opted to pass necessary entry for Issue of debentures
20 P ,Q and R were partners in a firm sharing profits in the ratio of 1:1:2 . On 31st March 3
2021,their balance sheet showed a debit balance of ₹9,000 in the profit and loss account
and a workmen compensation Reserve of ₹64,000. From 1st April 2021 they decide to
share profits in the ratio of 2:2:1 .For this purpose it was agreed that :
(a) Goodwill of the firm was valued at ₹4,00,000.
(b) A claim on account of workmen compensation of ₹ 30,000 was admitted
21 Pass necessary Journal entries for the following transaction on dissolution of the firm of 4
Anita and Ravi on 31st March 2018, after the various assets (other than cash) and the
third party liabilities have been transferred to Realisation A/c.
(a) Ravi was to get a remuneration of ₹ 23,000 for completing the dissolution process.
He also agreed to bear realization expenses. Realisation expenses of ₹ 10,000 were paid
by Ravi from the firm’s cash.
(b) Amitesh, an old customer whose account for ₹ 60,000 was written off as bad debt in
the previous year, paid 90%.
(c) Creditors of ₹ 40,000, accepted furniture valued at ₹ 38,000 in full settlement of their
claim.
(d) Land and Building was sold for ₹ 3,00,000 through a broker who charged 2%
commission.
OR
The firm of R, K and S was dissolved on 31.3.2022. Pass necessary journal entries for
the following after various assets (other than cash and Bank) and the third party
liabilities had been transferred to realisation account.
(i) K agreed to pay off his wife’s loan of ₹ 6,000.
(if) Total Creditors of the firm were ₹ 40,000. Creditors worth ₹ 10,000 were given a
piece of furniture costing ₹8,000 in full and final settlement. Remaining creditors
allowed a discount of 10%.
(iii) A machine that was not recorded in the books was taken over by K at ₹ 3,000
whereas its expected value was ₹ 5,000.
(iv) The firm had a debit balance of ₹ 15,000 in the profit and loss A/c on the date of
dissolution.
22 Rohit Limited forfeited 200 shares of Rs.10 each, issued at a discount of 10%. The 4
company has called up only Rs.8 per share. Final call of Rs.2 each has not been made on
these shares. These shares were allotted to Mr. Mohan, who did not pay the first call of
Rs.3. Out of which 120 shares were reissued at Rs.7 per share, as Rs.8 paid up. Give
journal entries
23 Vinod and David are partners sharing profits in the ratio 3:2. Their Balance Sheet as 6
on 31stMarch 2022 was as follows:
Amount Amount
Liabilities Assets
Rs. Rs.
Capitals Office 30,000
Equipment
Vinod 5,00,000 Land & Building 5,00,000
David 3,00,000 8,00,000 Plant & 3,50,000
Machinery
Creditors 1,80,000 Debtors 2,00,000

Bills Payable 1,20,000 Stock 1,20,000
Bank Loan 1,00,000 Cash in Hand 50,000
General Reserve 50,000
12,50,000 12,50,000
Madan was admitted as a partner on 1st April 2019 for 1/6th share and the following
was agreed upon:
1.Madan will bring Rs.20,000 as premium for goodwill and Rs.2,50,000 as his capital.
2.Assets are revalued as Debtors 10% less, Stock 10% more and plant and
machinery is to be appreciated by Rs.20,000.
3.Creditors were undervalued by Rs.20,000.
4.Vinod and David will adjust their capitals on the basis of Madan’s capital and
adjustment [if any] will be made in cash.
Prepare the Revaluation Account, Partners Capital Account .
OR
Vinod, Dhruv and Devansh are partners sharing profits and losses in the
ratio 2:2:1. Their Balance Sheet as on 31st March 2019 is as follows:
Balance Sheet
Devansh gets retirement on the above-mentioned date and it was decided to pay his
due amount in cash. Assets and liabilities are adjusted as follows:
1. Inventories will be revalued at Rs.1,50,000.
2. Plant and machinery will be revalued at Rs.9,90,000.
3. Provision for doubtful debts is to be maintained at 10% on debtors.
Liabilities Amount Assets Amount (₹)
(₹)
Capitals Plant and Machinery 9,00,000
Vinod 6,00,000 Inventories 1,59,000
Dhruv 4,50,000 Debtors 1,50,000
Devansh 3,00,000 13,50,000 Less 9000 1,41,000
Creditors 1,50,000 Cash in Hand 4,50,000

General Reserve 1,50,000
Total 16,50,000 16,50,000
Pass necessary journal entries
24 X and Y are in partnership sharing profits and losses in the ratio of 3:2. They insure their 6
lives jointly for ₹ 75,000 at an annual premium of ₹ 3,500 to be debited to the business.
Y died three months after the date of the last Balance Sheet (prepared on 31.03.2022).
According to the Partnership Deed, Y’s representative is entitled to the following
payments: d) His capital as per the last Balance Sheet. e) Interest on above capital @ 6%
p.a. till the date of death. f) His share of insurance money. g) His share of profits till the
date of death calculated on the basis of last year’s profits. His drawings are to bear
interest at an average rate of 2% on the amount irrespective of period. Y’s capital as per
the last Balance Sheet was ₹ 40,000 and his drawings till the date of death were ₹ 5,000.
The last year’s profits were ₹ 30,000 Draw Y’s Account to be rendered to his legal
representative. The representative is paid ₹ 8,500 immediately and the balance is
payable in two equal instalments carrying interest @ 12% p.a.
Prepare Y’s Capital A/c as on 30.06.2022
25 Rishi Ltd. is having an authorised capital of Rs.60, 00,000 divided into equity 6
shares of Rs.100 each. The company offered 54,000 shares to the public. The
amount payable was as follows:
On Application - Rs.30 per share
On Allotment - Rs.40 per share (including
premium) On First and Final Call - Rs.50 per
share
Applications were received for 40,000 shares.
All sums were duly received except the following:
Laxmi, a holder of 100 shares did not pay allotment and
call money. Prodeep, a holder of 200 shares did not pay
call money.
The company forfeited the shares of Laxmi and Prodeep. Subsequently, the forfeited
shares were reissued for Rs.80 per share as fully paid-up. Show the entries for the
above transactions in the Cash Book and Journal of the company.
OR
Shaan Ltd. invited applications for 12,000 equity shares of Rs.10 each at a premium of
Rs.2 per share payable as follows: On Application….. Rs.2 On Allotment.Rs.5 including
premium On First Call ……Rs.3 On Final Call….Rs.2 Applications were received for
24,000 shares and pro-rata allotment was made to the applicants of 15,000 shares.
Excess money was utilised for allotment only. VK, a shareholder to whom 120 shares
were allotted, failed to pay the allotment money on the first call. His shares were
forfeited after the first call. DK, a shareholder of 180 shares, failed to pay after two
calls; his shares were forfeited after the second call. Of the forfeited shares, 240 were
reissued [including 120 shares of VK] credited as fully paid for Rs.9 per share. Give
journal entries.
26 Pass journal entries for issue of Debentures: 6
a) A Ltd issues Rs 3, 00,000 9% Debentures of Rs 100 each at 10% discount to be
redeemed at 20% premium.
b) B Ltd issues 1000 9% Debentures of Rs 500 each at 550 to be redeemed at Rs 600
27 Purchase of goods for re sale is shown in Statement of Profit and Loss as :

(a) Revenue from Operation (b) Cost of material consumed
(c ) Purchase of stock in trade (d) Change in Inventories
28 Discount received on making payment to suppliers’ results in:

(a) Inflow of Cash and Cash Equivalents.
(b) Outflow of Cash and Cash Equivalents.
(c) No Flow of Cash and Cash Equivalents.
(d) Both inflow and outflow of Cash and Cash Equivalents
29 The Current Ratio of a Company is 2 : 1. Bills Payable Rs. 5,000 discharged will result
in increase in Current Ratio. (TRUE/FALSE)
OR
Ratio Analysis under financial analysis is significant as it :
(a) Ignores qualitative factors
(b) Helps in window dressing
(c) Does not requires any standards
(d) Helps in locating weak points of the firm
30 Proposed dividend is a :
31 Under which major heads and sub-heads will the following items be placed in the 3
Balance Sheet of the company as per Schedule III, Part I of the Companies Act,
2013?
(i) Provident Fund
(ii) Securities Premium Reserve
(iii) Debentures with maturity period in current financial year
32 From the following information Calculate:

1. Interest coverage ratio 2.ROI 3. Working capital turnover ratio
N.P. after tax Rs.650000, 12.5%Debentures Rs.800000, Income tax-50%, Fixed Assets
Rs.2460000, Depreciation reserve Rs.460000, Current Assets Rs.1500000, Current
liabilities Rs.700000 Cash revenue from operations-25% of Total Revenue from
operations, Credit Revenue from operations-Rs.900000, G.P.50% on cost of RFO.
33 (a) From the following information, calculate return on capital employed or 4
investment (ROI):
Share Capital .................................................. `2, 00,000
Reserves & Surplus ........................................ `2, 00,000
10% Debentures.............................................. `8, 00,000
Net Profit after interest & Tax ........................ `2, 40,000
Tax .................................................................. `2, 40,000
(b)
From the information given below, calculate the Net Profit Ratio for the company:
Net Sales… ................................................. `4, 00,000
Gross Profit Ratio… .................................... 20%
Operating Ratio............................................ 90%
Non-Operating Expenses ............................. `2,000
Non-Operating income `50,000
34 Balance Sheets of Krish Ltd. as at 31st March, 2019 and 31st March, 2018 were:
Particulars 31st March 2021 31st March

2022
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 10,00,000 6,00,000
(b) Reserves and Surplus: Surplus,
re., Balance in
Statement of Profit and Loss 2,50,000 1,50,000
2. Current Liabilities
Short-term Provisions: Proposed 50,000 40,000
Dividend
Total 13,00,000 8,90,000
II. ASSETS
1. Non-Current Assets
Fixed Assets (Tangible): Plant and 8,00,000 5,00,000
Machinery
2. Current Assets
(a) Inventories (Stock) 1,25,000 75,000
(b) Cash and Cash Equivalents 5,00,000 3,40,000
Total 13,00,000 8,90,000
1. Rs.50, 000 depreciation has been charged to Plant and Machinery during the
year 2021.
2. A piece of machinery costing Rs.12, 000 (book value Rs.5, 000) was sold at
60% profit on book value.
Prepare Cash Flow Statement.
SAMPLE PAPER SET-4
marks.

Q QUESTIONS M
1 Which of the following statement is true? 1

(A) a minor cannot be admitted as a partner
(B) a minor can be admitted as a partner, only into the benefits of the partnership
(C) a minor can be admitted as a partner but his rights and liabilities are same of adult partner
(D) none of the above
Or
In case partnership deed is silent or absent, Interest on loan will be provided @-------
2 A new partner may be admitted into a partnership : 1
(A) With the consent of any one partner
(B) With the consent of majority of partners
(C) With the consent of all old partners
(D) With the consent of 2/3rd of old partners
Or
On the admission of a new partner :
(A) Old firm is dissolved
(B) Old partnership is dissolved
(C) Both old partnership and firm are dissolved
(D) Neither partnership nor firm is dissolved
3 The relation of partner with the firm is that of: 1
(A) An Owner
(B) An Agent
(C) An Owner and an Agent
(D) Manager
4 One of the partners in a partnership firm has withdrawn ₹ 9,000 at the end of each quarter, 1
throughout the year. Calculate interest on drawings at the rate of 6% per annum.
(a) Rs 510
(b) Rs 710
(c) Rs 810
(d) Rs 900
5 What kind of balance will a Fixed Capital Account reflect 1
(a) Credit balance always
(b) Debit balance always
(c) Credit or debit balance
6 How is interest on loan treated in P&L Appropriation a/c 1
(a) Debited
(b) Credited
(c) It is deducted from Net profit
7 Can shares be issued at a discount? 1
(a) Yes
(b) No
(c) Only on re issue after forfeiture
8 Capital employed by a partnership firm is ₹5,00,000. Its average profit is ₹60,000. The normal 1
rate of return for is a similar type of business is 10%. The amount of super profit is:
(a) Rs 50,000
(b) Rs 10.000
(c) Rs 60,000
(d) Rs 56,000
9 In a Realisation a/c only --------------------- liabilities are recorded. 1
0r
In a Realisation A/c all assets are transferred to----------side.
10 Amount of shares applied by the public forms a part of 1
(a) Subscribed capital
(b) Issued capital
(c) Authorised capital
(d) Reserve Capital
11 A and B were partners in a firm sharing profit or loss in the ratio of 3 : 1. With effect from Jan. 1
1, 2019 they agreed to share profit or loss in the ratio of 2 : 1. Due to change in profit-loss
sharing ratio, B’s gain or sacrifice will be :
(A) Gain 1/12
(B) Sacrifice 1/12
(C) Gain 1/3
(D) Sacrifice 1/3
12 State true or false 1
On the event of no mention of profit sharing ratio among the partners, it is shared on the basis of
their capitals.
13 P, Q and R were partners in a firm. On 31st March, 2018 R retired. The amount payable to R ₹ 1
2,17,000 was transferred to his loan account. R agreed to receive interest on this amount as per
the provisions of Partnership Act, 1932. State the rate at which interest will be paid to R.
Or
The ratio in which retiring Partner’s Share is distributed between remaining Partner is called
_________.
14 Debentures are a part of ---------------- capital of a company. 1
OR
Security Premium received on issue of debenture is shown under ----------
15 Reserve share capital means : 1
(a) Part of authorised capital to be called at the beginning
(b) Portion of uncalled capital to be called only at liquidation
(c) Over subscribed capital
(d) Under subscribed capital
Or
When a company issues fully paid shares to promoters
for their services, the journal entry will be:
(a) Bank A/c Dr.
(b) Good will A/c Dr.
(c) Promoters Personal A/c Dr.
(d) Promotion Expenses A/c Dr.
16 Share Application Account is : 1
(a) Personal Account
(b) Real Account
(c) Nominal/ Account
(d) None of these
OR
Capital included in the liabilities of a company is called :
(a) Authorised Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Paid-up Capital
17 A, B and C are patners sharing profits and losses in the ratio of 5:3:2. They decided to share 3
future profit and losses in the ratios of 2:3:5 with effect from 1st April,2022. They decide to
record the effect of the following revaluations without affecting the book values of the assets
and liabilities by passing an Adjustment Entry.
Book Value (Rs) Revised
Values(Rs)
Land and Building 5,00,000 5,50,000
Plant and Machinery 2,50,000 2,40,000
Sundry creditors 60,000 55,000
Outstanding Expenses 60,000 75,000
Pass necessary Journal Entry.
18 A, B and C are partners sharing profits and losses in the ratio of 5:4:1. It was decided that with 3
effect from 1 st January 2014 , the profit sharing ratio will be 9:6:5. Goodwill is to be valued at
2 years purchase of average of 3 years profits. The profits for 2011,2012 and 2013 were
Rs.48,000, Rs. 42,000 and Rs. 60,000 respectively.
Pass the necessary Journal Entry for the treatment of goodwill without opening Goodwill
account
19 A firm of A, B and C has Workmen Compensation Fund of₹ 30,000. On retirement of a partner, 3
how ₹ 20,000 will be treated in the following cases:
(a) There is no claim against Workmen Compensation fund.
(b) There is a claim of₹ 12,000 against Workmen Compensation Fund.
Journalise.
Or
Gaurav, Saurav and Kabir sharing profit and losses in the ratio of 4:3:2, decides to share profit
future profit and losses in the ratio of 2:3:4 with effect from 1st April,2022. An extract of their
Balance Sheet as at 31st March, 2022 is:
Liabilities Amount Assets Amount
Investment Fluctuation Reserve 18,000 Investment (at cost) 2,00,000
(i) When market value of Investment is Rs 2,00,000.
(ii) When market value of investment is Rs 1,73,000
20 XYZ Ltd. Took a loan of Rs. 4,00,000 from IDBI Bank. The company issued Rs. 5,00,000; 9% 3
debentures of Rs. 100 each as collateral security for the same. Show how these items will be
presented in the Note to Accounts in the Balance Sheet of the company.
Or
Securities premium can also be utilised for three other purposes besides (i) issuing fully paid
bonus shares and (ii) “buy-back of shares’. State other purposes.
21 Rohit, Kunal and Sarthak are partners in a firm. They decided to dissolve their firm. Pass 4
necessary Journal entries for the following after various assets (other then Cash and Bank) and
the third party liability have been transferred to Realisation Account:
1. Kunal agreed to pay off his wife’s loan of Rs. 6,000.

2. Total Creditors of the firm were Rs. 40,000. Creditors worth Rs. 10,000 were
given a piece of furniture costing Rs. 8,000 in full and final settlement.
Remaining Creditors allowed a discount of 10%.
3. Rohit had given a loan of Rs. 70,000 to the firm which was duly paid.
4. A machine which was not recorded in the books was taken over by Kunal at Rs.
3,000 whereas its expected value was Rs. 5,000.
22 On 28th February, 2016 the first call of ₹ 2 per share became due on 50,000 equity shares 4
alloted by Kumar Ltd. Komal a holder of 1,000 shares did not pay the first call money. Kovil a
holder of 750 shares paid the second and final call of ₹ 4 per share along with the first call.
Pass the necessary journal entry for the amount received by opening calls-in-arrears and calls-in
-advance account in the books of the company.
Or
Shiv Ltd. took over assets of Rs 25,00,000 and liabilities of Rs 6,00,000 of Shakti Ltd. and
paid the purchase consideration by issuing 10,000 equity shares of Rs 100 each at a premium of
10% and Rs 11,00,000 by Bank Draft. Calculate Purchase Consideration and Pass necessary
Journal entries in the books of Shiv Ltd.
23 Dinesh, Alvin and Pramod are partners in a firm sharing profits and losses in the ratio of 6
5:3:2.Their Balance Sheet as at March 31,2018 was as follows:
Dinesh died on July 1,2018, The executors of Dinesh are entitled to:
(i) His share of goodwill. The total goodwill of the firm valued at ₹ 50,000.
(ii) His share of profit up to his date of death on the basis of actual sales till date of death. Sales
for the year ended March 31, 2018 was ₹ 12, 00,000 and profit for the same year was ₹ 2,00,000.
Sales shows a growth trend of 20% and percentage of profit earning remains the same.
(iii) Investments were sold at par. Half of the amount due to Dinesh was paid to his executors and
for the balance, they accepted a Bills Payable.
24 Alpha Ltd. Issued 10,000, 9% debentures of Rs 100 each. Pass necessary journal entries for 6
issue of debentures in the following cases:
(i) When debentures are issued at par and redeemable at par.
(ii) When debentures are issued at par & are redeemable at premium of 10%
(iii) When debentures are issued at a premium of 25% to the vendors for the purchase of
machinery worth Rs 12,50,000
(iv) When debentures are issued at a premium of Rs 250 each and are redeemable at par.
25 A company offered 10,000 shares of Rs.100 each payable as follows 6
On Application Rs 30
On Allotment Rs.20
On First Call Rs.30
On Final Call Rs 20
Applications were received for 13,000 shares. Shares were allotted pro rata to the applicants of
12,000 shares. All the shareholders paid the amount up to allotment except Mohan, the allottee of
200 shares.His shares were forfeited.
First call was then made. Forfeited shares were reissued at Rs.90 per share, Rs.80 called up.Final
call has not yet been made.
Pass the necessary entries for forfeiture and reissue of shares.
OR
Moti Ltd invited applications for issuing 10,00,000 equity shares of Rs 10 each at a premium of
Rs. 2 per share.The amount payable was as follows.
On Application Rs. 5 (including premium)
On Allotment RS. 4
On First and FinalCall Rs.3
Applications for 15,00,000 shares were received. Applications for 3,00,000 shares were rejected
and pro-rata allotment was made to the remaining applicants. Excess application money was
utilised towards sums due on allotment. Giri, who had applied for 24,000 shares failed to pay the
allotment and call money. His shares were forfeited. Out of the forfeited shares, 10,000 shares
were re-issued for Rs.8 per share fully paid up. Pass necessary journal entries in the books of
Moti Ltd.
26 Ram, Shyam and Mohan were in Partnership sharing profits & losses in the ratio of 3:2:1. On 1 st
April , 2011, Shyam retires from the firm. On that date, their Balance Sheet was as follows.
Trade Creditors 30,000 Cash in Hand 90,000
Bills Payable 27,000 Debtors 1,60,000
Outstanding expenses 45,000 Less- Provision 10,000
Reserve Fund 1,05,000 ------- 1,50,000
Workmen’s Compensation ----- 1,20,000
Reserve 48,000 Stock 2,25,000
Capitals: Factory Premises 80,000
Ram 2,00,000 Investments 40,000
Shyam 1,50,000 Loose Tools
Mohan 1,00,000
----------- 4,50,000
7,05,000 7,05,000
The terms were

(a) Goodwill of the firm to be valued at Rs1,50,00
(b) Outstanding expenses to be brought down to Rs.37,500
(c) Investments are re-valued at Rs.72,000. Ram took over the Investments at this value.
(d) Factory Premises is to be revalued at Rs 2,43,000 and Loose Tools at Rs.36,000
(e) Provision for Doubtful Debts to be increased by Rs 19,500.
(f) Claim on account of Workmen’s Compensation is Rs.18,000
(g) Shyam to be paid Rs. 50,000 in cash and the balance as a loan.
Prepare necessary Revaluation accounts and Capital account of the continuing partner’s.
OR
On 31.03.2017, the Balance Sheet of Abhir and Divya, who were sharing profits in the ratio of
3:1 was as follows.
Balance Sheet of Abhir and Divya as on 31.03.2017
Liabilities Assets
Creditors 2,20,000 Cash at Bank 1,40,000
Employees Provident Debtors 6,50,000
Fund 1,00,000 Less-Provision for Bad
Investment Fluctuation Debts 50,000 6,00,000
Fund 1,00,000 Stock 3,00,000
General Reserve 1,20,000 Investments (Market
Capitals: value Rs 4,40,000) 5,00,000
Abhir Rs 6,00,000
Divya- Rs 4,00,000 10,00,000
15,40,000 15,40,000
They decided to admit Vibhor on 01.04.2017 for 1/5th share

(a) Vibhor shall bring Rs 80,000 as his share of goodwill premium.
(b) Stock was overvalued by Rs 20,000
(c) A debtor, whose dues of Rs 5,000 were written off as bad debt, paid Rs 4,000 as full
settlement.
(d) Two month’s salary @ Rs6,000 per month was outstanding.
(e) Vibhor was to bring Capital to the extent of 1/5th of the total capital of the new firm.
Prepare Revaluation a/c, Partner’s Capital a/c of the reconstituted firm.
PART-B ANALYSIS OF FINANCIAL STATEMENTS (20)
27 Under which type of activity will you classify ‘Rent received’ while preparing cash flow 1
statement?
(a) Operating Acivity
(b) Financing Activity
(c) Investing Activity
(d) It is not a part of Cash Flow Statement.
28 Which of the following is not a cash inflow 1
(a) Decrease in Debtors
(b) Issue of shares
(c) Decrease in creditors
(d) Sale of fixed assets
29 Liquid Assets do not include : 1
(A) Bills Receivable
(B) Debtors
(C) Inventory
(D) Bank Balance
30 Calls in advance appears in a Company’s Balance Sheet under: 1
(a) Current liabilities
(b) Share capital
(c) Long term borrowings
(d) Reserves and surplus
31 What will be Head and sub Head of following: 3
(i)Current maturity of long term debt (ii) Demand draft
(ii)Subscribed Capital (iv) Term loan from bank
(v)Bank Overdraft (vi)Interest receivable
32 The quick ratio of a company is 2 : 1. State giving reasons, (for any four) which of the following 3
would improve, reduce or not change the ratio
(i)Purchase of machinery for cash
(ii)Purchase of goods on credit
(iii) Sale of furniture at cost
33 Calculate working capital ratio from the following: 4
Revenue from operations Rs 12,00,000
Current Assets Rs 5,00,000
Total Assets Rs 8,00,000
Non-current liabilities Rs 4,00,000
Shareholders’ funds Rs 2,00,000
34 From the following Balance Sheet of Nihal Ltd. prepare a Cash Flow Statement as on 6
31.03.2018.
Particulars Note 31.03.2018 31.03.2012

No
I Equity and Liabilities :
(a) Share Capital 35,00,000 25,00,000
(b) Reserves and Surplus 12,50,000 10,00,000
(2) Non-Current Liabilities
Long term borrowings (10% 12,50,000 3,50,000
Debentures)
(3) Current Liabilities
(a) Short term borrowings 50,000 75,000
(Bank Overdraft)
(b) Trade Payables (Creditors) 2,50,000 1,50,000
(c) Short term Provisions 1 1,50,000 75,000
TOTAL 64,50,000 41,50,000
II ASSETS
(1) Non- Current Assets
(a) Fixed Tangible Assets 2 40,00,000 22,50,000
(b) Intangible Assets(Goodwill) 3,50,000 5,00,000
(2) Current Assets 24,000
(a) Inventories 6,25,000 5,00,000
(c) Cash &Bank Balances 2,25,000 1,50,000
(Cash at Bank)
TOTAL 64,50,000 41,50,000
Notes to Accounts
Particulars 31.03.2018 31.03.2017
1.Short Term Provisions
Provision for Tax 1,50,000 75,000
2.Tangible Assets
Plant and Machinery 44,00,000 25,00,000
Less- Accumulated Depreciation (4,00,000) (2,50,000)
40,00,000 22,50,000
Additional Information
During the year:
(a) A part of the machine costing Rs1,25,000 , accumulated depreciation thereon being
Rs50,000 , was sold for Rs45,000.
(b) Tax paid Rs.50,000
(c) Interest of Rs 1,25,000 paid on Debentures.
SAMPLE PAPER SET-5
marks.
S.N QUESTION MAR

O K
PART – A
Accounting for partnership firms and companies
1 Minimum number of members in a Public Company: 1

A) 7
B) 2
C) 5
D) 3
Or
Minimum number of members in a Private Company:
A) 1
B) 2
C) 5
D) 9
2 A, B and C are partners sharing profits in the ratio of 5 : 2 : 1. If the new ratio 1
on the retirement of A is 3 : 2, what will be the gaining ratio?
(A) 11: 14
(B) 3 : 2
(C) 2 : 3
(D) 14 : 11
OR
Neetu, Meetu and Teetu were partners in a firm. On 1st January 2018, Meetu retired.
On Meetu's retirement the Goodwill of the firm was valued at `4,20,000.
Pass necessary journal entry for the treatment of goodwill on Meetu's retirement.
3 Varun and Arun are partners in a firm sharing profit and losses equally. On the date 1
of dissolution of partnership firm, Varun's wife's loan was `45,000, whereas Arun's
loan was `65,000. Which loan will be paid first and why?
4 Which of the following statement is true? 1

(A) a minor cannot be admitted as a partner
(B) a minor can be admitted as a partner, only into the benefits of the partnership
(C) a minor can be admitted as a partner but his rights and liabilities are same of
adult partner
(D) none of the above
Or
A, B and C are partners in the ratio of 5 : 3 : 2. Before B’s salary of ₹17,000

firm’s profit is ₹97,000. How much in total B will receive from the firm?
(A) ₹17,000
(B) ₹40,000
(C) ₹24,000
(D) ₹41,000
Read the following case carefully and answer the following Questions (5-6) on the basis of the
same:
Lakshmi and Durga partners in 3:2. They admitted Ganesh as a partner. Lakshmi gives 1/3rd of her
share, whereas Durga gives 1/4th of her share in favour of Ganesh. Goodwill of the firm is valued at 3
years purchase of last 5 years average profit, which was estimated at `90,000. Ganesh was able to
bring only 40% of his share of goodwill in cash. He had contributed total amount of rupees `1,50,000
towards his capital and goodwill.
5 What will be the new profit-sharing ratio of Lakshmi, Durga and Ganesh after the 1
admission?
A) 3:4:3
B) 4:3:3
C) 3:3:4
D) 2:2:1
6 What will be the sacrifice ratio in the above case? 1

A) 1:2
B) 1:1
C) Only Laxmi will sacrifice
D) 2:1
7 On 1st June 2018 a partner introduced in the firm additional capital ₹50,000. In the 1
absence of partnership deed, on 31st March 2019 he will receive interest :
(A) ₹3,000
(B) Zero
(C) ₹2,500
(D) ₹1,800
8 According to Profit and Loss Account, the net profit for the year is ₹1,50,000. The 1
total interest on partner’s capital is ₹18,000 and interest on partner’s drawings is
₹2,000. The net profit as per Profit and Loss Appropriation Account will be :
(A) ₹1,66,000
(B) ₹1,70,000
(C) ₹1,30,000
(D) ₹1,34,000
Read the following case carefully and answer the following Questions (9-10) on the basis of the
same:
A company was registered with an authorised capital of 75,000 Equity shares of `100 each.
During the year 2020-21, it issued 40,000 shares to public for subscription at par. Public applied for
35,000 shares. One shareholder to whom 1,200 shares were allotted fail to pay allotment money of
`30 per share and first call money of `20 per share. The company did not make the final call money of
`10 per share.
The directors decided to forfeit the above shares and out of the forfeited shares 400 shares were
issued at `100 per share.
9 What is the amount of Issued Capital? 1

A) 40,000
B) `75,000
C) `35,000
D) None of these
10 What is the amount of balance in share forfeited account? 1
A) `48,000
B) `40,000
C) `60,000
D) `32,000
11 In a partnership lirm, partner A is entitled a monthly salary of ₹7,500. At the end of 1
the year, firm earned a profit of ₹75,000 after charging T’s salary. If the manager is
entitled a commission of 10% on the net profit after charging his commission,
Manager’s commission will be :
(A) ₹7,500
(B) ₹16,500
(C) ₹8,250
(D) ₹15,000
12 A and B were partners in a firm sharing profit or loss in the ratio of 3 : 5. With effect 1
from 1st April, 2019, they agreed to share profits or losses equally. Due to change in
profit sharing ratio, A’s gain or sacrifice will be :
(a) Gain 3/8
(b) Gain 1/8
© sacrifice 3/8
(d) sacrifice 1/8
13 In absence of partnership deed, interest on capital is allowed @ _______ , whereas 1
interest on drawing is charged @ ________ .
A) 6% per annum, Nil

B) Nil, Nil
C) Nil, 6% per annum
D) 6%, 6% per annum
Or
Which accounts are opened when the capitals are fluctuating?

(A) Only Capital Accounts
(B) Only Current Accounts
(C) Capital Accounts as well as Current Accounts
(D) Either Capital Accounts or Current Accounts
14 Assertion (A):- Commission provided to partner is shown in Profit and Loss A/c. 1
Reason (R):- Commission provided to partner is charge against profits and is to be
provided at fixed rate
A) (A) is correct but (R) is wrong
B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
C) Both (A) and (R) are incorrect.
D) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
15 HP Ltd issued 5000, 8% Debentures of Rs 100 each at Rs 95. How much amount 1
will be credited to 8% Debenture Account?
OR
Durga 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?
16 Where to show “ Securities Premium Reserve” in the balance sheet? 1
OR
Attire Ltd, issued a prospectus inviting applications for 12,000 shares of ₹10 each
payable ₹3 on application, ₹ 5 on allotment and balance on call. Public had applied
for certain number of shares and application money was received. Which will be
application money, if received restricts the company to proceed with the allotment of
shares, as per SEBI guidelines?
17 Nirmala, Divisha and Sara were partners in a firm sharing profits and losses in the 3
ratio of 3:4:3. Books were closed on 31st March every year. Sara died on 1st
Februrary, 2022. As per the partnership deed Sara’s executors are entitled to her
share of profit till the date of death on the basis of Sales turnover. Sales for the year
ended 31st March 2021 was Rs 10,00,000 and profit for the same year was Rs
120000. Sales show a positive trend of 20% and percentage of profit earning is
reduced by 2%.
Journalise the transactions along with the working notes.
18 Exe Ltd. Purchased assets of Rs 8,40,000 and took over liabilities of Rs 80,000 of 3
Hay Ltd. at a value of Rs 7,20,000. Exe Ltd. issued 10% Debentures of Rs 100 each
at 10% discount in full satisfaction of the price. The company decided to write off
Discount on Issue of Debentures from Securities Premium Reserve of Rs 1,00,000.
Pass Journal entries in the books of Exe. Ltd.
Or
Samachar India Ltd. took over the assets of ₹ 14,00,000 and liabilities of ₹
4,00,000 from News Ltd. for a purchase consideration of ₹ 9,19,000.
Samachar India Ltd. issued a promissory note of ₹ 17,000 payable after 60
days in favour of News Ltd. and the balance amount was paid by issue of
equity shares of ₹ 100 each at a premium of ₹ 25 per share.
Pas necessary Journal entries for the above transactions in the book of
Samachar India Ltd.
19 Aman, Bobby and Chandani were partners in a firm sharing profit and losses in the 3
ratio of 5 : 4 : 1. From 1st April, 2018 they decided to share profit equally. The
revaluation of assets and re-assessment of liabilities resulted in a loss ₹ 5,000. The
goodwill of the firm on its reconstitution was valued at ₹ 1,20,000. The firm had a
balance 20,000 in general reserve.
Showing your workings clearly pass necessary journal entries on the reconstitution
of the firm.
20 What do you mean by partnership deed? State two advantage of partnership deed. 3
21 Pass necessary Journal entries for the following transaction on the dissolution of 4
the firm of P and Q after the various assets (other than cash) and outside
liabilities have been transferred to realisation Account
(a) Bank loan worth Rs. 12,000 was paid.
(b) Stock worth Rs. 16,000 was taken over by partner Q.
(c) Partner P paid a creditor Rs. 4,000.
(d) An asset not appearing in the books of accounts realised Rs. 1,200.
22 S Ltd registered with an authorised capital of Rs 4,00,000 divided into 40,000 equity 4
shares of Rs 10 each. The company offered to the public for subscription 30,000
equity shares. Applications for 28,000 equity shares were received and allotment
was made to all the applicants. All calls were made and were duly received except
the final call of Rs 2 per share on 200 shares.
Prepare the balance sheet of the company.
23 Modern Bazaar Ltd. started a new outlet for retailing daily use items. It estimated 6
the capital requirement at 25,00,000 to re-furbish the premises and stocking the
goods.
It had internal generation of 10,00,000 and decided to use it for the purpose;
Besides, it had partly paid 1,00,000 Equity Shares on which 2 per share was yet to
be called. It decided to call the unpaid amount; and
Balance amount was raised as term loan from State Bank of India payable in 10
equal half-yearly instalments beginning after two years. It issued 9% Debentures of
100 each for double the amount of loan as Collateral
Questions:
(a) What is the amount of loan taken by the company from the Bank?
(b) What is the number and value of debentures issued as Collateral Security? (c)
How much interest the company will pay on debentures so issued?
(d) How will it show the debentures issued as Collateral Security in the Balance
Sheet?
(e) Is the loan taken Long-term Borrowing or Short-term Borrowing?
24 A, B and C were partners sharing P&L in the ratio 5:3:2. A died on 30th June, 2019. 6
Entry for treatment of goodwill after his death was passed as follows:-
Date Particulars L.F Debit(₹) Credit(₹)

B’s Capital A/c Dr. 1,80,000
C’s Capital A/c Dr 1,20,000
To A’s Capital A/c 3,00,000
(Entry for goodwill treatment passed at
the time of death of partner)
A’s profit till date of death was estimated as ₹ 1,20,000, based on the average profits
of past three years. Final dues payable to A’s executors on the date of death was
calculated as ₹ 8,40,000 out of which ₹ 2,40,000 was paid immediately by giving
him Furniture valued for the same and balance was to be paid in three equal annual
instalments starting from 30 June, 2020, together with interest rate as specified in
Section 37 of Indian Partnership Act, 1932.
Pass necessary entry for profit share to be credited to A’s Capital and also prepare
A’s executors account till final settlement.
25 A and B are partners sharing profits and losses in the ratio of 3:2. Their Balance 6
Sheet on 31st December ,2021 stood as under:
Liabilities Amount ₹ Assets Amount

₹
Capital : Machinery 66,000
A 70,000 Furniture 30,000
B 60,000 Investments 40,000
General Reserve 20,000 Stock 46,000
Bank loan 18,000 Debtors 38,000
Creditors 72,000 Less - Provision for 4,000 34,000
d/debts
Cash 24,000
--------------- ---------------
Total 2,40,000 Total 2,40,000
On this date they admitted C for 25% share in a profits on following terms :
1. C brings in ₹ 14,000 for in share of goodwill and further cash to make his
capital proportionate to make to his share of profit.
2. Depreciate furniture by 10%
3. Half of investments were to be taken over by A and B in their profit sharing
ratio and remaining valued at ₹ 26,000
4. New Profit Sharing Ratio will be 3:3:2
Prepare Revaluation A/c, Partners’ Capital A/c.
OR
A,B and C are partners sharing profit and losses in the ratio of 2:2:1 respectively.
The Balance sheet of the firm as at 31st March 2022 was as follows:
Capital a/c Stock 12,500
A 12,500 Machinery 17,500
B 15,000 Motor van 4,000
Buildings 22,500
C 20,000
47,500 Bank 1,250
Creditors
10,000 Debtors 8,000
Bills payable
2,000 Less:prov.for d/d 250
General reserve
6,000 7,750
65,500 65,500
B retires on 1st April 2022, on the following conditions:

1. Provision for doubtful debts to be increased by 975
2. Stock to be appreciated by 20% and building by 10%
3. Machinery to be depreciated by 10% and motor van by 15%
4. Goodwill of the firm to be valued at ₹ 9,000.
5. The capital of continuing partner are to be adjusted in new profit sharing
ratio between A and C as 3:2.
6. Excess or short fall if any to be transferred to their respective current
account.
Prepare Revaluation A/c and partners’ capital A/c
26 Bhagwati Ltd. invited applications for issuing 2,00,000 equity shares of `10 each. 6
The amounts were payable as follows:
On Application `3 per share
On Allotment `5 per share
On First and Final Call `2 per share
Applications were received for 3,00,000 shares and pro-rata allotment was made to
all the applicants. Money overpaid on application was adjusted towards allotment
money. B, who was allotted 3,000 shares, failed to pay first and final call money and
his shares were immediately forfeited. Out of the forfeited shares, 2,500 shares were
re-issued as fully paid @ `8 per share.
Pass necessary journal entries to record the above transactions.
OR
YLE Ltd. issued 90,000 equity shares of `100 each at par, payable as under:
On Application : `40
On Allotment : `35
On Call money : balance
Public applied for 1,25,000 shares and the director allotted the shares as under:
Category (a) 15,000 full allotment
Category (b) 70,000 50,000
Category (c) 40,000 25,000
The excess money received on application could be adjusted on allotment only and
the surplus would be refunded.
Manju who was applied for 3,000 shares under category (a) did not pay money due
on allotment and call, while another shareholder Rahul under category (c) who was
applied for 2,400 shares also failed to pay money due on allotment and call. Both the
shares were forfeited and out of the forfeited shares 4,000 share (including the whole
shares of Rahul) were re-issued at `90 per share as fully paid.
Pass necessary entries.
PART-B
Analysis of Financial Statement of Companies
27 Which item comes under financial activities in cash flow? 1

A) Redemption of Preference Share
B) Issue of Preference Share
C) Interest Paid
D) All the above
28 Current Liabilites = 70000 1
Inventories = 10000
Prepaied expenses= 5000
Working capital= 30000
Calculate Quick Assets.
29 Give an example of short term provision. 1
30 A company that issues stocks and bonds to raise funds results in 1
A) Decrease in Cash
B) Increase in Cash
C) Increase in Equity
D) Increase in Liabilities
31 State under which major headings the following items will be presented in the 3
balance sheet of a company as per schedule III of the companies Act, 2013:
(i) Trade marks (ii) Capital Redemption Reserve
(iii) Income received in advance (iv) Stores and Spares
(v) Office Equipments (vi) Current investment.
32 Debt to capital employed ratio is 0.3:1. State whether the following transactions, will 3
improve, decline or will have no change on the Debt to Capital Employed Ratio.
Also give reasons for the same.
(i) Sale of Equipments costing Rs 10,00,000 for Rs, 900000.
(ii) Purchased Goods on Credit for Rs 100000 for a credit of 15 months,
assuming operating cycle is of 18 months.
Conversion of Debentures into Equity Shares of Rs 200000.
33 Following information is available for the year ended 31st March, 2022, calculate 4
Gross Profit Ratio:
Cash Sales 25000
Purchases: Cash 15000

Credit 60000
Carriage Inwards 2000
Salaries 25000
Decrease in Inventory 10000
Return Outward 2000
Wages 5000
Ratio of Cash Sales and Credit Saled 1:3
34 Prepare Cash Flow Statement from the Balance Sheet of Liva Ltd. as at 31st March, 6
2022
Particulars Note 31st 31st

no march march
2022 2021
1. Shareholders' Funds
(a) Share Capital 2,10,000 180,000
(b) Reserves and Surplus 1,32,000 24,000
2. Non-Current Liabilities
Long-term Borrowings 1.50,000 1,50,000
Trade Payables 75,000 27,000
5,67,000 3,81,000
Total
11. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible

Assets:
Property, Plant and Equipment 2,94,000 2,52,000
(b) Non-Current Investments 48,000 18,000
2. Current Assets
(a) Current Investments (Marketable) 54,000 60,000

(b) Inventories 1,07,000 24,000
(c) Trade Receivables 40,000 17,500
(d) Cash and Cash Equivalents 24,000 9,500
Total 5,67,000 3,81,000
Note to Accounts
Particulars 31st March 31st March

2022 2021
1. Reserves and Surplus
Surplus, Le, Balance in Statement of Profit & Loss 1,32,000 24,000

SAMPLE PAPER SET-6
marks.
Q QUESTION MARKS
NO
1 If Average Profit = Rs. 2,00,000. Actual Capital Employed = Rs. 5, 00,000 1
If rate of Normal Profit = 20%. What is the amount of Super Profit?
a) Rs. 60,000
b) Rs. 1,00,000
c) Rs. 20,000
d) Rs. 80,000
OR
A firm had Assets of Rs 3,00,000 partner’s capital account showed a balance of Rs
1,70,000 and reserves constituted the rest. If normal rate of return is 10% per annum and
Goodwill is valued at Rs48,000 at four years purchase of super profits, find the super profit
of firm:
a) Rs 6,000
b) Rs 18,000
c) Rs 12,000
d) Rs 8,000
2 A and B is partner in a firm. They are entitled to interest on their capital but the net profit 1
was not sufficient for paying his interest, then the net profit will be disturbed among
partner in_________
a) 1: 2
b) Profit Sharing Ratio
c) Capital Ratio
d) Equally
Read the hypothetical text and answer the following questions. 1
Q and R are partners sharing profits in the ratio of 3:2. Q is a non-working partner and
contributes ₹ 12,00,000 as his capital. R is a working partner of the firm. The Partnership
Deed provides for interest on capital @ 10% p.a. and salary to every working partner @ ₹
10,000 p.m. Profit before providing for interest on capital and partner’s salary for the year
ended 31st March, 2021, was ₹ 100,000.
3 How much interest on capital is payable to Q?
a) ₹ 50,000
b) ₹ 1,60,000
c) ₹80,000
d) ₹ 1,00,000
4 What is the amount of salary payable to Vijay? 1
a) ₹ 96,000
b) ₹ 50,000
c) ₹ 60,000
d) ₹ 80,000
5 What is the amount of net profit to be transferred to Profit and Loss Appropriation 1
account?
a) ₹ 50,000
b) ₹ 30,000
c) ₹ 1,00,000
d) ₹ 1,20,000
6 A and B are partners sharing profits and losses in the ratio of 3:2. The firm maintains 1
fluctuating capital accounts and the balance of the same as on 31st March 2022 is ₹
4,00,000 and ₹ 5,00,000 for A and B respectively. Drawings during the year were ₹ 50,000
and 70,000 respectively. Divisible profits during the year 2021-22 was ₹ 150,000.
At the end of the year it was found that interest on capital @ 10% p.a was not provided
whereas as per the partnership Deed, Interest on capital was to be provided . Calculate the
opening capital of A,s capital.
a) Rs 3 lac
b) Rs 3,60,000
c) Rs 4,00,000
d) Rs 3,10,000
7 If fixed amount is withdrawing on the last day of every month and interest on drawing 1
charged is 10% p.a. Interest on drawing amounted to Rs 2,750 what will be drawing
amount.
a) Rs. 2,500p.m.
b) Rs. 10,000p.m.
c) Rs. 7,500p.m.
d) Rs. 5,000 p.m
OR
If fixed amount is withdrawing on the first day of every month and interest on drawing
charged is 10% p.a. Interest on drawing amounted to Rs 3,250 what will be drawing
amount.
a) Rs. 2,500p.m.
b) Rs. 10,000p.m.
c) Rs. 7,500p.m.
d) Rs. 5,000 p.m
8 A and B are partners sharing profit and losses in the ratio of 3 : 2. A's capital is Rs. 1
1,20,000 and B's capital is Rs. 60,000. They admit C for 1/5thshare of profits. C should
bring as his capital
a) Rs. 36,000
b) Rs. 48,000
c) Rs. 58,000
d) Rs. 45,000
OR
A and B share profits and losses in the ratio of 3: 2. Their respective capitals are Rs.
1,20,000 and Rs. 54,000. C is admitted for 1/3rd share in profits who brings Rs. 75,000 as
his share of capital. Capitals of A and B to be adjusted according to C’s share. A will
withdraw from capital
a) Rs. 30,000
b) Rs. 32,000
c) Rs. 15,000
d) Rs. 28,000
9 A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. they decided to 1
change their future profit-sharing ratio and agreed upon C acquiring 1/10th share of A and
1/2 share of B. Calculate C’s gain
a) 7/20
b) 5/20
c) 1/20
d) 4/20
10 If three partners A, B, C are sharing profit as 5:3:2,then on the death of a partner A, how 1
much B and C will pay to A executor on account of goodwill. Goodwill is to be calculated
on the basic of 2 years purchase of last 3 years average profit, profits for the last 3 years
are Rs. 3,00,000 Rs. 2,00,000 and Rs. 4,00,000.
a) Rs. 1,80,000 and Rs. 1,20,000
b) Rs. 3,60,000 and Rs. 2,40,000
c) Rs. 150,000 and Rs. 150,000
d) Rs. 3,00,000and Rs. 3,00,000
11 If Workmen Compensation Reserve appears at Rs. 50,000 in the balance sheet and there is 1
a claim of Rs. 35,000 to be paid against it, then __________ will be transferred to
Realisation Account.
a) Rs 50,000
b) Rs 35,000
c) Rs 15,000
d) None of above
12 Z ltd. forfeited 5000 equity shares of Rs. 10 each on which Rs. 6 was paid 1
(including Rs. 1 premium). On reissue, the company can allow Rs.______ per share as
discount.
a) Rs 1 per share
b) Rs 5 per share
c) Rs 6 per share
d) Rs 10 per share
13 Statement 1: Securities premium money can be utilized to pay dividend to shareholders. 1
Statement 2: Securities premium money can be utilized to issue fully paid Bonus shares. .
Choose the correct option from the option given below:
(a) Statement-I is correct and II is wrong
(b) Statement –II is correct and I is wrong
(c) Both the statements are correct
(d) Both the statements are incorrect
OR
Statement 1: Maximum amount of discount allowed at the time of reissue of forfeited
shares should not exceed the forfeited amount.
Statement 2: Minimum amount at which shares can be reissued is the amount received at
the time of Forfeiture of shares
Choose the correct option from the option given below:
(a) Statement-I is correct and II is wrong
(b) Statement –II is correct and I is wrong
(c) Both the statements are correct
(d) Both the statements are incorrect
14 Penalty for delay in refunding application money is charged: - 1
a) 6%
b) 5%
c) 15%
d) 20%
15 The portion of authorized capital which can be called up only on the 1
liquidation of the company: -
a) Authorised capital
b) Reserve capital
c) Issued capital
d) Called up capital
16 Perpetual Debenture is the other name of: 1
a) Convertible debentures
b) Irredeemable debenture
c) Naked debenture
OR
If the Purchase consideration is less than net worth, then which account will be debited for
the difference amount:
a) Capital Reserve
b) Assets
c) Goodwill
d) Vendor
17 X, Y Z are three partner of profit sharing ratio 3:2:1. Y died on 12 June 2021. Y’s share of 3
profit from closure of the last accounting year till the date of death was to be calculated on
the basis of average profit of last 3 completed years profit before death.
Profit for the year ending 2019, 2020, 2021 are ₹70,000; ₹60,000; ₹50,000 respectively.
Pass necessary journal entry along with working notes.
18 A, B and C are partner sharing profits and losses in the ratio of 3:2:1. There fixed capitals 3
on April 01, 2020 were; A Rs. 3,00,000, B Rs. 2,00,000 and C Rs. 1,00,000. As per the
partnership deed, partners are entitled to interest on capital @ 10% p.a. A had guaranteed
to C of his minimum profit of ₹1,50,000. Net profit before any appropriation was
₹6,00,000 Prepare profit and loss appropriation account for the year ending March 31,
2021.
Or
X, Y and Z are partner sharing profits and losses in the ratio of 2:2:1. There fixed capitals
on April 01, 2020 were; X Rs. 5,00,000, Y Rs. 3,00,000 and Z Rs. 2,00,000. As per the
partnership deed, partner are entitled to interest on capital @ 10% p.a. and interest on
drawing 10%p.a. the drawing of X,Y and Z was Rs. 40,000, ₹20,000; ₹20,000
respectively. Net profit before any appropriation was ₹3,00,000. Prepare profit and loss
appropriation account for the year ending March 31, 2021.
19 A ltd take over following assets and liabilities of Z ltd on 1 April 2022: 3
Land and building ₹50 lac; Furniture ₹20 lac ;Stock ₹10 lac ;Creditor ₹15 lac
The purchase consideration of ₹72 lac was paid by issuing 10% debenture of ₹100 each at
10% discount.Pass necessary journal entry in the books of A ltd along with working notes
Or
B ltd took over running business of S ltd comprising of assets of ₹50 lac and liabilities of
₹5lac for purchase consideration of ₹40 lac. The amount was settled by bankdraft of ₹4lac
and balance by issuing Equity share of ₹100 at 20% premium. Pass necessary journal
entry in the books of B ltd.
20 A, B and C are partners sharing profits and losses in the ratio of 4:3:2. With effect from 3
1st April, 2022 they agree to share profits 2:2:1. For this purpose, goodwill is to be
valued at two year’s purchase of the average profit of last three years which were as
follows:
Year ending on 31st March,2020 ₹ 3,00,000 (Profit)
Scrutiny of book of account revealed that there was
1) an abnormal loss of ₹ 70,000 in 2020
2) an abnormal gain of ₹ 30,000 in 2021
3) repair to car amount to ₹ 40,000 wrongly debited to vehicle A/c on 31st march 2022.
Depreciation was charged @ 10% p.a WDV method.
Journalise the transaction along with the working notes
21 A Ltd. was registered with an authorised Capital of ₹ 1,00,00,000 divided in 10,00,000 4

Equity Shares of ₹ 10 each The company issued 2,00,000 Equity Shares for public
subscription at 10% premium, payable ₹ 3 on application; ₹ 4 on allotment
(including premium) and balance on call. Public had applied for 1,80,000 shares. All
money was received
except Allotment and call money on 10,000 shares held by Amit. and only call money on
5,000 share held by Mohan . You are required to prepare the Balance Sheet of the company
as per Schedule III of Companies Act, 2013, showing Share Capital balance and also
prepare Notes to Account
22 A, B and C were partners in a firm for equal ratio. In beginning firm was earning good 4
amount of profit. But due to certain changes in market demand, firm is facing a lot of
problems even company is getting loss for last 2 years. So all the partners decided to dissolve
the firm. The firm had appointed Mr. Mukesh. In the first instance, Mr. Mukesh had
transferred various assets and external liabilities to Realisation A/c. Due to her
busy schedule; Mr. Mukesh has delegated this assignment to you, being an intern in her
firm. On the date of dissolution, you have observed the following transactions:
(i) Bank loan of ₹ 50,000 was paid by C
(ii)A’s Wife Loan of ₹ 20,000 was settled by A .
(iii) A land (B.V 2lac) was sold at 10% less than book value
(iv)Furniture of ₹ 50,000 was taken over by B at ₹ 45,000.
You are required to pass necessary entries.
23 P, Q and R was three partners in the profit-sharing ratio of 3: 2:1. On June 30, 2022, R 6
died and according to the deed of the said partnership, her executors are entitled to be paid
as under :
(a)On April 1,2022 his capital was Rs 5,00,000 and interest thereon @ 10% per annum.
(b) reserve fund was shown in books of account was Rs 90,000
(c) His proportion of profits to the date of death based on the average profits of the last
three completed years, and
(d) Firm goodwill is to be calculated twice the average profit. The net profit for the last
three years were :
2021-22 16,000; 2020-21 14,000; 2019-20 15,000;
Prepare R’s Capital Account as on June 30, 2022.
24 A and B were partners in the profit-sharing ratio of 3: 2. Their balance sheet as at March 6
31, 2022 was as follows:
Liability Amount Rs Assets Amount Rs
Creditor 60,000 Land & Buildings 2,00,000
General reserve 20,000 Stock 80,000
Capital Debtor 50,000
A 2,20,000 - provision 2000 48,000
B 1,80,000 4,00,000 Machinery 1,00,000
Cash 52,000
4,80,000 4,80,000
C was admitted for 1/5th share on the following terms:
(i) C will bring 60,000 as his share of capital, and Rs 2,000 for his share of goodwill.
(ii) land &Building was to increase by Rs20,000
(iii)Plant and Machinery were to be decreased by 10% .
(iv) A provision for doubtful debts to be made at 10 % on debtors .
(v) Capitals of A and B will be adjusted on the basis of C’s share and adjustments will be
done by opening necessary current accounts.
You are required to prepare revaluation account and partners’ capital account.
Or
L, M and N were partners in a firm sharing profits in the ratio of 1:1:2 respectively. On
March 31st, 2022, the balance sheet of the firm stood as follows:
Balance Sheet
Liability Amount Rs Assets Amount Rs
Creditor 10,000 Cash 5,000
B/P 5,000 Debtor 20,000
Reserve 10,000 Stock 20,000
Capital Land & Buildings 30,000
L 50,000 Machinery 50,000
M 30,000
N 20,000 1,00,000
1,25,000 1,25,000
N retired on the above-mentioned date on the following terms:

(i) Buildings to be appreciated by 10%
(ii) A provision for doubtful debts to be made at 10 % on debtors.
(iii)Goodwill of the firm is valued at 20,000
(iv)Retire partner capital account to be transferred to his loan account carrying interest
as per the agreement.
(v) Remaining partner decided to readjust their capital in new ratio by opening current
account.
Prepare the revaluation account and partner’s capital accounts.
25 KLM ltd want to expand its business. To expand business, company need additional 6
funds of ₹ 9,00,000 for which they decided to issue debentures in such a way that they got
required funds after issuing debentures, at 10% discount. These debentures were to be
redeemed at 20% premium after 5 years. These debentures were issued on 1st April,
2021.
You are required to
(a) Pass entries for issue of Debentures.
(b) Prepare Loss on Issue of Debentures Account assuming there was existing balance of
Securities Premium Account of ₹ 2,00,000.
(c) Pass entries for Interest on debentures on March 31, 2022 assuming interest is payable
on 30 September and 31 March every year.
26 Mohit Ltd invited applications for issuing 50,000 equity shares of ₹ 100 each 6
at a premium of ₹ 10. The amount was payable as follows On Application – ₹
40 On allotment – ₹ 30 (including a premium of ₹ 10) On 1st and
Final Call Balance. Applications of 1,00,000 shares were received. Allotment
was made on pro rata basis to 80,000 applicants. The rest was rejected. Excess money
received on application was adjusted on sums due on allotment.
Sita, who was allotted 5,000 shares, failed to pay allotment and call money
These shares were forfeited immediately after call. 3,000 of these shares
for ₹ 90 per share as fully paid. Pass necessary journal entries in books of Mohit Ltd.
Or
Pass entries for forfeiture and re-issue in both the following cases.
(a) X Ltd. forfeited 10,000 shares due to non-payment of allotment money of ₹ 3 per share
and first ₹ 2 per share. Final call of ₹ 2 per share was not yet made. Out of these 8,000
shares were re-issued @ ₹ 7 per share as Rs 8 paid.
(b) Y Ltd. forfeited 2,000 shares of ₹ 10 each (issued at ₹ 2 premium) for non-payment
of allotment money of ₹ 4 per share ; first call of ₹ 2 per share and Final call of ₹ 1 per
share . Out of these 1,000 shares were re-issued at ₹ 10 per share as fully paid
27 Which one of the following is correct. 1
(i) Financial analysis removes the limitations of financial statements.
(ii)Horizontal analysis is useful in long term planning.
(iii)Financial analysis ignores qualitative factors.
(iv)Financial statements show price-level changes.
(v)Vertical analysis is useful in time series analysis.
a) all are correct b) only (ii),(iii) are correct

c)only (ii),(iii) ,(v)are correct d) only (ii),(iii) ,(i)are correct
Or
Which of the following is not a limitation of Comparative Statement?
(a) Ignores price level changes
(b) Ignores quantitative aspects
(c) Ignores Qualitative aspects
(d) Variation in accounting Policies
28 Current ratio 5:1, Current assets Rs. 50,000. Quick Ratio are 3:1. Calculate inventory 1
a) Rs 22,500
b) Rs20,000
c) Rs 15,000
d) Rs 25,000
29 From the following information, find out outflow of cash due to Purchase of Machinery 1
Particulars 31 Mrach 2022 31 March 2021
Machinery 7,00,000 10,00,000

Depreciation for year 2021-22 is Rs 2,00,000
Machinery sold for Rs 5,00,000
Loss on sale of Machinery is Rs 1,00,000
a) Rs 5,00,000
b) Rs 2,00,000
c) Rs 100,000
d) Rs 7,00,000
30 Cash and Cash Equivalents includes….. 1
a) Cash & Marketable securities
b) Cash, Bank & Marketable securities
c) Cash, Bank Overdraft& Marketable securities
d) Cash, Bank Overdraft & Bank
OR
A Non-financial company received 5% interest on Non-Current Investment.
How it will be shown in cash flow statement. if
Particulars 31 March 2022 31 March 2021
5% Non-Current Investment 1,00,000 1,00,000
a) Rs 5,000 add in Investing Activity and less in Operating Activity

b) Rs 5,000 add in Operating Activity and less in Investing Activity
c) Rs 100,000 add in Investing Activity and less in Operating Activity
d) Rs 100,000 add in Operating Activity and less in Investing Activity
31 Classify the following items under Major heads and Sub-head (if any) in the Balance Sheet 3
of a Company as per schedule III of the Companies Act 2013.
(i) Calls in Advance
(ii) loose tools
(iii)premium on redemption
(iv)Copyright
(v) Matured loan
(vi) live stock
32 Calculate the Gross Profit Ratio and Working Capital Turnover Ratio from the following: 3
Revenue from Operations Rs.30,00,000 Cost of Revenue from Operations Rs.20,00,000
Current Assets Rs.6,00,000 Current Liabilities Rs.2,00,000 Paid up Share Capital
Rs.5,00,000
33 Calculate inventory turnover Ratio and operating profit ratio 4
Information;
Item Amount ₹
Opening Inventory 80,000
Purchase 7,80,000
Direct expense 20,000
Closing inventory 160,000
Administration expenses 20000
Selling &distribution expenses 60000
Revenue from operation (net Sale) 10 lac
Or
Calculate debt to capital employed and working capital turnover ratio
Information:
Item Amount ₹
Cost of revenue from operation 30 lac
Closing inventory 1 lac
Other current assets 9 lac
Paid up share capital 15 lac
Revenue from operation 50 lac
6% deb 5 lac
9% loan 7 lac
Deb redemption reserve 3 lac
34 Balance Sheets of Alpha Ltd 6
Particulars Note 31st March 2022 31st March 2021 (Rs.)
No (Rs.)
I. Equity and Liabilities
1. Shareholders’ Funds
a) Share capital 20,00,000 15,00,000
b) Reserve and surplus
Security premium reserve 4,00,000 3,00,000
General reserve 3,00,000 2,00,000
Surplus 12,00,000 2,00,000
2. Non-current Liabilities
Long-term borrowing
a) short term liabilities 1,00,000 70,000
b) Short-term provisions 50,000 70,000
(Provision for taxation)
Total 40,50,000 23,40,000
II. Assets
1. Non-current assets
a) Property plant& equip
(i) Tangible assets(Machinery) 5,00,000 7,00,000
(ii) Intangible assets (Goodwill) 50,000 70,000
b) Non-current investment 8,00,000 6,00,000
(5% Non-current investment)
2. Current assets
a) Marketable securities 12,00,000 5,00,000
b) Cash and cash equivalents 15,00,000 4,70,000
Total 40,50,000 23,40,000
Other information:
Interim Dividend paid during the year ₹ 150,000
Depreciation on Machinery 30,000
Profit on sale of Machinery ₹ 50,000
Interest on Non-Current Investments received ₹ 40,000
Tax Refund ₹10,000
Proposed Dividend for the year ended March 31, 2021 was ₹ 2,00,000 and for the year
ended March 31,2022 was ₹ 3,00,000.
On the basis of above information,

1. Calculate Net Profit before tax and extraordinary items.
2. Calculate Operating profit before working capital changes.
3. Calculate Cash flow from Investing activities.
4. Calculate Cash flow from Financing activities.
5. Calculate closing cash and cash equivalents.
SAMPLE PAPER SET-7
Q Questions Marks
No.
1. A forfeited share can: 1
(c) be re-issued at a maximum discount equal to the amount forfeited
(d) none of the above.
2. A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D 1
as a new partner for 1/8 share in the profits, which he acquired 1/16th from B and 1/16th
from C.
(a) 24:13:5:6
(b) 24:5:13:6
(c) 3:6:8:2
(d) 3:2:1:1
OR
How much amount will be paid to creditors of ₹ 50,000, if ₹ 10,000 of the creditors are
1
not to be paid and the remaining creditors agreed to accept 5% less amount:
(a) ₹ 28,000
(b) ₹ 38,000
(c) ₹ 37,500
(d) ₹ 36,500.
3. Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 1
respectively. The firm earned a profit of ₹ 30,000 during the year. Mohiť's share in the
profit will be:
(a) ₹ 20,000
(b) ₹ 10,000
(c) ₹ 15,000
(d) ₹ 18,000.
4. Given below are two statements, one labelled as Assertion (A) and the other labelled as 1
Reason (R):
Assertion (A): Gobind, Hari and Pratap are partners. On retirement of Gobind, the
goodwill already appears in the Balance Sheet at ₹ 24,000. The goodwill will be written-
off by debiting all partners' capital accounts in their old profit-sharing ratio
Reason (R): Goodwill has been earned by the efforts of all partners.
of Assertion (A).
OR
A B and C were partners in a firm sharing profits in the ratio of 3:2:1. B was guaranteed
a profit of ₹ 2,00,000 During the year the firm earned a profit of ₹ 84,000, Calculate the
net amount of Profit or Loss transferred to the Capital Accounts of A and C.
(a) ₹ 87,000
(b) ₹ 29,000
(c) ₹ 25,000
(d) ₹ 75,000
Reason (R)
Assertion (A): On the admission of a new partner, increase in the value of assets is
debited to revaluation account
liabilities.
2
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
6. Sundry debtors are appearing at ₹ 216,000 and provision for doubtful debts at ₹12,000 in 1
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.
7. Pick the odd one out: 1
(a) Average Profit Method
(b) Product Method
(c) Capitalization Method
(d) Super Profit Method
OR
The agreement of partnership may be:
(a) Oral
(b)Written
(c) Both (A) and (B)
(d) None of these
8. Joy Ltd. issued 1,00,000 equity shares of ₹ 10 each. The amount was payable as 1
follows:
On allotment- ₹ 4 per share On
first and final call- balance
Applications for 95,000 shares were received and shares were allotted to all applicants.
Sohan to whom 500 shares were allotted failed to pay allotment money and Gautam paid
his entire amount due including the amount due on first and final call on the 750 shares
allotted to him along with allotment. The amount received on allotment was:
(a) ₹ 2,25,000
(b) ₹ 3,78,000
(c) ₹ 3,80,250
(d) ₹ 2,19,000
9. Identify the journal entry for the issue of forfeited shares at par: 1
(a) Bank Ac Dr.
3
(b) Bank A/c Dr.
(d) None of these.
Read the following information and answer the given questions:

Abha and Vibha are partners, who shared profits and losses in the ratio of 2:1 From the 1st January 2021,
the partners decided to change their profit sharing ratio to 3:2 and agreed upon the following:
10. Abha's gain or sacrifice in the profit sharing ratio is: 1

(a) Gain 1/3
(b) Sacrifice 1/3
(c) Gain 1/15
(d) Sacrifice 1/15
11. Vibha's gain or sacrifice in the profit sharing ratio is: 1
(a) Gain 1/3
(b) Sacrifice 1/3
(c) Gain 1/15
(d)) Sacrifice 1/15
12. Anwar and Bashir were partners in a firm sharing profit or losses in the ratio 7:5. With effect 1
from 1st April 2021 they agreed to share profits in the ratio of 5:4. Due to the change in
profit sharing ratio what is Bashir's gain or sacrifice?
(a) Gain 1/36
(b) Sacrifice 1/ 36
(c) Gain 1/1 2
(d) Sacrifice 1/12
OR
A and B are partners sharing profit in the ratio of 3:2. They admit C as a partner by giving
him 1/3rd share in future profits. The new ratio will be :
(a) 12:8:5
(b) 8:12:5
(c) 5:5:12
4
(d) None of these
13. Radha limited issued 2,000 equity shares of ₹10 each at 10% premium. The amount of 1
(a) ₹ 2,000
(b) ₹ 20,000
(c) ₹ 4,000
(d) None of these
OR
The Journal Entry to acquire an asset from vendor will be :Amount

To Vendor's A/c


To Cash A/c
(d) Cash A/c

To Vendor's A/c
14. Debentures are shown in the Balance sheet of a company under the head of : 1
(c) Share Capital
15. On admission of new partner, accumulated loss is transferred to: 1
(b) Revaluation A/c
(d) None of these
16. Abin, Babin and Chavi are partners in the ratio of 5:3:2. Before Babin's salary of ₹ 34,000 1
(a) ₹ 55,200
(b) ₹ 79,000
(c) ₹ 89,200
(d) ₹ 45,000
17. X Ltd. forfeited 100 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had paid 3
application and allotment money of ₹ 5 per share. Out of these, 80 shares were re-issued to
Y for ₹ 8 per share as ₹ 8 paid up per share. Record the journal entries for forfeiture and re-
issue of shares by opening call in arrear account.
5
OR
Explain any three types of share capital.
18. Ashish and Kanav were partners in a firm sharing profits and losses in the ratio of 3:2. On 3
31st March, 2018 their balance sheet was as follows:
Balance Sheet of Ashish and Kanav as at 31” March, 2018
On the above date, they decided to dissolve the firm.

(i) Ashish agreed to take over furniture at ₹ 38,000 and pay off Mrs. Ashish's loan.
(ii) Debtors realized ₹ 18,500 and plant realized 10% more.
(iii) Kanav took over 40% of the stock at 20% less than the book value. Remaining stock
was sold at a gain of 10%.
(iv) Trade creditors took over investments in full settlement.
(v) 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 realization
amounted to ₹ 8,000.
Prepare Realization Account.
6
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
Capital: Profit & Loss Account 10,000
Ashish 1,20,000
Kanav 80.000 2,00,000
3,70,000 3,70,000
19. Radhika, Bani and Chitra were partners in a firm sharing profits and losses in the ratio of 3
2:3:1. With effect from 1st April, 2018 they decided to share future profits and losses in the
ratio of 3:2:1. On that date, their balance sheet showed a debit balance of ₹ 24,000 in Profit
and Loss Account and a balance of ₹ 1,44,000 in General Reserve. It was also agreed that:
(i) The goodwill of the firm be valued at ₹ 180,000.
(ii) The land (having book value of ₹ 3, 00,000) will be valued at ₹ 4, 80,000.
Pass the necessary journal entries for the above changes.
OR
Arun and Arora were partners in a firm sharing profits in the ratio of 5:3. Their fixed capitals
on 1.4.2019 were: Arun ₹ 60,000 and Arora ₹ 80,000. They agreed to allow interest on
capital @ 12% p.a. and to charge on drawings @15% p.a. The profit of the firm for the year
ended 31st March, 2020 before all above adjustments was ₹ 12,600. The drawings made by
Arun were₹ 2,000 and by Arora ₹ 4,000 during the year.
Prepare Profit and Loss Appropriation A/c of Arun and Arora. Show your calculations
clearly. The interest on capital will be allowed even if the firm incurs loss.
7
20. The average profit earned by a firm is ₹ 80,000 which includes undervaluation of stock of 3
₹8,000 on average basis. The capital invested in the business is ₹ 8, 00,000 and the normal
rate of return is 8% calculate goodwill of the firm on the basis of 7 times the super profit.
21. Newbie Ltd. was registered with an authorized capital of ₹ 5, 00,000 divided into 50,000 4
equity shares of ₹ 10 each. Since the economy was in robust shape, the company decided to
offer to the public for subscription 30,000 equity shares of ₹ 10 each at a premium of ₹ 20
per share. Applications for 28,000 shares were received and allotment was made to all the
applicants. All calls were made and duly received except the final call of ₹ 2 per share on
200 shares.
Show the 'Share Capital in the balance sheet of Newbie Ltd, as per Schedule II of the
Companies Act, 2013, Also prepare notes to accounts for the same.
22. The Balance Sheet of Sudha, Rahim and Kartik who were sharing profit in the ratio of 3:3:4 4
as at 31st March, 2022 was as follows:
General Reserve 10,000 Cash 16,000
Bills Payable 5,000 Stock 44,000
Loan 12,000 Investment 47,000
Capitals: Land & Building 60,000
Sudha - 60,000 Sudha's loan 10,000
Rahim - 50,000
Kartik - 40,000 1,50,000
1,77,000 1,77,000
Sudha died on June 30th 2022. The partnership deed provided for the following on the death
of a partner:
(a) Goodwill of the firm be valued at two years purchase of average profits for the last three
years.
(b) Sudha's share of profit or loss till the date of her death was to be calculated on the basis
of sales. Sales for the year ended 31st March, 2022 amounted to ₹ 4, 00,000 and that from
1st April to 30th June 2022 to ₹ 1, 50,000. The profit for the year ended 31st March, 2022
was ₹ 1, 00,000.
(c) Interest on capital was to be provided @ 6% p.a.
(d) The average profits of the last three years were ₹ 42,000.
Prepare Sudha's Capital Account to be rendered to her executor.
23. Journalize the following transaction: 6

(i) Mehar Ltd, issued 1,00,000,12% debentures of ₹ 100 each at a premium of 5%,
redeemable at a premium of 2%
(ii) 12% Debentures were issued at a discount of 10% to a vendor of machinery for payment
of ₹ 9, 00,000.
(iii) Issue of 10,000, 11% debentures of ₹ 100 each as collateral in favour of State Bank of
India. Company opted to pass necessary entry for Issue of debentures.
8
24. Bora, Singh and Ibrahim were partners in a firm sharing profits in the ratio of 5:3:1, On 6
2.3.2015, their firm was dissolved, The assets were realized and the liabilities were paid off.
Given below are the realization account, partners' Capital Accounts and bank account of the
firm. The accountant of the firm left a few amounts un posted in these accounts. You are
required to complete these accounts by posting the correct amounts:
Realization Account
Particulars Amount Particulars Amount
To Stock A/c 10,000 By Provision for Bad Debts A/c 5,000
To Debtors A/c 25,000 By Sundry Creditors A/c 16,600
To Plant and Machinery 40,000 By Bills Payable A/c 3,400
To Bank A/c: By Mortgage Loan A/c 15,000
Sunday Creditors 16000 By Bank A/c (Assets Realized):
Bills Payable 3400 Stock 6,700
Mortgage Loan 15000 34,400 Debtors 12,500
Plant and Machinery 36,000 55,200
To Bank A/c (Outstanding
Repairs) By Bank (Unrecorded Assets 6,220
To Bank A/c (Exp.) 400 Realized)
620 By----------- ………..
1,10,420 1,10,420
Partners' Capital Accounts
Particulars Bora Singh Ibrahim Particulars Bora Singh Ibrahim

By Balance b/d 22,000 18,000 10,000
By General
Reserve 2,500 1,500 500
24,500 19,500 10,500
Bank Account 24,500 19,500 10,500
Particulars Amount Particulars Amount

To Bal. b/d 19,500 By Realization A/c (Liabilities) 34,400
To Realization A/c (Assets 55,200 By Realization A/c
realized) (Unrecorded liabilities) 400
By
By
80,920 80,920
25. Raman and Aman were partners in a firm and were sharing profits in 1 ratio, On 31.3.2119,
their balance sheet:
Balance Sheet of Raman and Aman as on 31.3.2019 6
Provision for Bad Debts 7,000 Bank 24,000
Outstanding Expenses 18,000 Sundry Debtor 80,000
Bills Payable 47,000 Stock 95,000
Sundry Creditors 1,02,000 Furniture 14,000
Workmen Compensation Reserve 55,000 Machinery 70,000
Capital Land and Building 2,00,000
9
Raman 3,00,000 Furniture 1,96,000
Aman 1,50,000 4,50,000
6,79,000 6,79,000
On the above date, Suman was admitted as a new partner for 1/5th share in the profits on the
following conditions.
(i) Suman will bring ₹ 2,00,000 as her capital and necessary amount for her share of
goodwill premium The goodwill of the firm on Suman's admission was valued at ₹ 1,00,000
(ii) Outstanding expenses will be paid off. ₹ 5,000 will be written off as bad debts and a
provision of 5% for bad debts on debtors was to be maintained.
(iii) The liability towards workmen compensation was estimated at ₹ 60,000.
(iv) Machinery was to be depreciated by ₹ 18,000 and Land and Building was to be
depreciated by ₹ 54,000.
Pass necessary journal entries for the above transactions in the books of the firm.
OR
A, B and C were partners in a firm. Their balance sheet as at 31 March, 2019 was as follows:
Balance Sheet of A, B and C as at 31st March, 2019
Bill payable 20,000 Bank 20,000
Creditors 40,000 Furniture 28,000
Workman Compensation Reserve 6,000 Debtors 45,000
Capitals: Less: Provision 5,000 40,000
A - 60,000 Land and Building 1,20,000
B - 40,000
C - 32,000 1,32,000
2,28,000
B retired on 1st April, 2019. A and C decided to share profits in the ratio of 2:1. The2,28,000
following terms were agreed upon:
(i) Goodwill of the firm was valued at ₹ 30,000.
(ii) Bad-debts ₹ 4,000 were written off. The provision for doubtful debts was to be
maintained 10% on debtors
(iii) Land and building was to be increased to ₹ 1, 32,000.
(iv) Furniture was sold for ₹ 20,000 and the payment was received by Cheque.
(v) Liability towards Workmen Compensation was estimated at ₹ 1,500.
(vi) B was to be paid ₹ 20,000 through a cheque and the balance was transferred to his loan
account.
Prepare Revaluation Account, Partners' Capital Account and Bank Account.
26. Guru Limited invited applications for issuing 80,000 equity shares of ₹ 10 each at a 6
premium of ₹ 10 per share. The amount was payable as follows:
On Application and Allotment: ₹ 10 (including ₹ 5 premium)
On First and Final Call: ₹ 10 (including ₹ 5 premium)
10
Application for 100,000 shares were received. Application for 10,000 shares were rejected
and Application money was refunded .Shares were allotted on pro-rata basis to the
remaining applicants. Excess application money received from applicants to whom shares
were allotted on pro-rata basis was adjusted towards sums due on first and final call. All
calls were made and were duly received except the first and final call money from Kumar
who had applied for 1,800 shares. His shares were forfeited. The forfeited shares were re-
issued at ₹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Guru Limited
OR
EF Ltd. invited applications for issuing 80,000 equity shares of ₹ 50 each at a premium of
20%. The amount was payable as follows:
On Application : ₹ 20 per share (including premium ₹ 5)
On Allotment: ₹ 15 per share (including premium ₹ 5)
On First Call ₹ 15 per share
On Second and Final Call Balance amount
Applications for 120,000 shares were received. Applications for 20,000 shares were rejected
and pro-rata allotment was made to the remaining applicants.
Seema holding 4,000 shares failed to pay the allotment money. Afterwards the first call was
made. Seema paid allotment money along with the first call. Sahaj, who had applied for
2,500 shares failed to pay the first call money Sahaj's shares were forfeited and subsequently
reissued to Geeta for ₹ 60 per share, ₹ 50 per share paid up. final call was not made.
Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening
calls-in-arrear.
PART –B
(Analysis of Financial Statements)
Reason (R):
Assertion (A): Profitability ratios are calculated to analysis the earning capacity of the
business.
Reason (R): Profitability ratios are calculated to determine the ability of the business to
service its debt in the long run.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation
of Assertion (A).
OR
11
Which of the following ratio establishes the relationship between 'Credit revenue from
operations' and Trade receivables"?
(a) Inventory turnover ratio
(b) Interest coverage ratio
(c) Trade payables turnover ratio
(d) Trade receivables turnover ratio.
28. 15,000 6% Debentures issued on 1t April, 2016 and redeemable on 31st March, 2022 will be 1
shown under:
(a) Long-term borrowings
(b) Other long-term liabilities
(c) Current liabilities
(d) Other current liabilities.
29. Balance Sheet (Extract) 1
Assets 2013 2014
Non-current investments 40,000 45,000
Investments costing ₹ 10,000 were sold at a profit of 40%
How much amount (related to above Information) for purchase of investment v will be
shown in investing of cash flow statement prepared at the end of 2014:
(a) ₹ 14,000
(b) ₹ 15,000
(c) ₹ 10,000
(d) ₹ 25,000.
30. Purchases of treasury bills (investment) will come under which activity while preparing a 1
cash flow statement?
(a) Operating activities
(b) Investing activities
(c) Financing activities
(d) None of these
OR
Which of the following transactions will result Into Inflow of Cash:
(a) Deposited ₹ 10,000 Into bank
(b) Withdrew cash from bank ₹ 14,500
(c) Sale of machinery of the book value of T ₹ 74,000 at a loss of ₹ 9,000
(d) Converted ₹ 2, 00,000 9% debentures into equity shares.
31. Explain briefly any three limitations of 'Analysis of Financial Statements. 3
12
32. under what heads and sub-heads will the following items appear in the balance sheet of a 3
company as per Revised Schedule III, Part-I of the Companies Act, 2013:
(i) Stores and spares
(ii) Provision for tax
(iii) Computer software.
33. (i) From the following calculate Trade Receivables Turnover Ratio': 4
Total revenue from operation for the year ₹ 8,40,000
Cash revenue from operations 40% of credit revenue from operations
Closing trade receivable ₹ 2,00,000
Excess of closing trade receivables over opening trade receivables- ₹ 80,000
(ii) From the following information calculate 'Interest Coverage Ratio':
Profit after Interest and Tax ₹ 4,97,000
Rate of Income Tax 30%
12% Debentures ₹ 6, 00,000.
OR
From the following information, Calculate total assets to debt ratio: ₹
Capital Employed 2250000
Investment 120000
Land 1000000
Trade Receivables 300000
Cash and Cash Equivalents 180000
Equity Share Capital 1050000
8% Debentures 800000
Capital Reserve 260000
Surplus i.e., Balance in Statement of Profit and Loss (35000)
34. Following is the Balance Sheet of J.M. Ltd. as at 31.3.2016: 6
J.M. Ltd Balance Sheet as at 31.3.2016
Particulars Note No. 31.3.2016 31.3.2015
I. Equity and Liabilities
(a) Share Capital 2,25,000 1,75,000
(b) Reserves and Surplus 1 1,12,500 56,250
2.Non-Current Liabilities
Long-term Borrowings 2 1,12,500 87,500
(a) Short-term Borrowing 3 37,500 18,750
Total 4,87,500 3,37,500
13
II. Assets
1. Non-Current Assets:
(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:
(a) Current Investments 10,000 17,500
(b) Inventories 6 30,500 18,000
(c) Cash and Cash Equivalents 18,250 10,750
Total 4,87,500 3,37,500
Notes to Accounts:
S. No. Particulars 31.3.2016 31.3.2015
1. Reserves and Surplus:
(Surplus, i.e., Balance in statement of profit & loss) 1,12,500 56,250
1,12,500 56,250
2. Long-term borrowings:
12% Debentures 1,12,500 87,500
1,12,500 87,500
3. Short-term Borrowings:
Bank overdraft
37,500 18,750
37,500 18,750
4. Tangible Assets:
Machinery 4,18,750 2,63,750
Less: Accumulated depreciation (52,500) (35,000)
3,66,250 2,28,750
5. Intangible Assets: 25,000 37,500

Goodwill 25,000 37,500
6. Inventories: 30,500 18,000

Stock-in-trade 30,500 18,000
50,000 31,250
7. Contingent Liabilities:
Proposed dividend 50,000 31,250
(i) 25,000, 12% debentures were issued on 31.3.2016.
(ii) During the year a piece of machinery costing ₹ 20,000, on which accumulated depreciation
was ₹ 10,000 was sold at a loss of ₹ 2,500.
Prepare cash flow statement.
************************************************************
14
SAMPLE PAPER SET-1
Q.No. Questions Marks

Read the following information and answer the given question no. 1 and 2
Abha and Vibha are partners, who shared profits and losses in the ratio of 2:1 From the 1st
January 2021, the partners decided to change their profit sharing ratio to 3:2 and agreed
upon the following:
1 Abha's gain or sacrifice in the profit sharing ratio is: 1
(a) Gain 1/3
(b) Sacrifice 1/3
(c) Gain 1/15
(d) Sacrifice 1/15
2 Vibha's gain or sacrifice in the profit sharing ratio is: 1
(a) Gain 1/3
(b) Sacrifice 1/3
(c) Gain 1/15
(d)) Sacrifice 1/15
3 A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a 1
new partner for 1/8 share in the profits, which he acquired 1/16th from B and 1/16th from C.
(a) 24:13:5:6
(b) 24:5:13:6
(c) 3:6:8:2
(d) 3:2:1:1
OR
A and B are partners sharing profit in the ratio of 3:2. They admit C as a partner by giving him
1/3rd share in future profits. The new ratio will be :
(e) 12:8:5
(f) 8:12:5
(g) 5:5:12
(h) ) None of these
4 Radha limited issued 2,000 equity shares of ₹10 each at 10% premium. The amount of 1
(a) ₹ 2,000
(b) ₹ 20,000
(c) ₹ 4,000
(d) None of these
OR
The Journal Entry to acquire an asset from vendor will be

To Vendor's A/c
To Cash A/c
(d) Cash A/c

To Vendor's A/c
Read the hypothetical text and answer Q.No. 5 to 8: 1
P, Q and R are partners in a firm. Their capitals are ₹ 30,000, ₹ 20,000 and ₹ 10,000
respectively. As per partnership deed,
i) R is to be allowed remuneration of ₹ 3,000 p.a
. ii) Interest on capital @ 5% p.a.
iii) Profits should be distributed in the ratio of 2:2:1.
Ignoring the above terms, net profit of ₹ 18,000 was distributed among the partners equally.
5 How much interest on capital is to be credited to the partner P? 1
a) ₹ 1,500 b) ₹ 1,000 c) ₹ 900 d) ₹ 800
6 How much profit is to be credited to the Partner Q after all adjustments?

a) ₹ 2,400 b) ₹ 4,800 c) ₹ 1,000 d) ₹ 1,200
7 What is the total profit to be credited to P, Q and R after all adjustments? 1

a) ₹ 12,000 b) ₹ 8,000 c) ₹ 9,000 d) ₹ 10,000
8 What is the amount of the past adjustment entry? 1
a) ₹ 350 b) ₹ 450 c) ₹ 250 d) ₹ 550
9 Debentures are shown in the Balance sheet of a company under the head of :
(c) Share Capital
(D)None of the above
10 Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. 1
The firm earned a profit of ₹ 30,000 during the year. Mohiť's share in the profit will be:
(a) ₹ 20,000
(b) ₹ 10,000
(c) (c) ₹ 15,000
(d) ₹ 18,000.
OR
On admission of new partner, accumulated loss is transferred to:
(b) Revaluation A/c
(d) None of these
Reason (R):
Assertion (A): Gobind, Hari and Pratap are partners. On retirement of Gobind, the goodwill
already appears in the Balance Sheet at ₹ 24,000. The goodwill will be writtenoff by debiting
all partners' capital accounts in their old profit-sharing ratio
Reason (R): Goodwill has been earned by the efforts of all partners.
of Assertion (A).
OR
A B and C were partners in a firm sharing profits in the ratio of 3:2:1. B was guaranteed a
profit of ₹ 2,00,000 During the year the firm earned a profit of ₹ 84,000, Calculate the net
amount of Profit or Loss transferred to the Capital Accounts of A and C.
(a) ₹ 87,000
(b) ₹ 29,000
(c) ₹ 25,000
(d) ₹ 75,000
Reason (R)
Assertion (A): On the admission of a new partner, increase in the value of assets is debited to
revaluation account
liabilities.
of Assertion (A).
13 Sundry debtors are appearing at ₹ 216,000 and provision for doubtful debts at ₹12,000 in the 1
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.
OR
At the time of dissolution, How much amount will be paid to creditors of ₹ 50,000, if ₹ 10,000
of the creditors are not to be paid and the remaining creditors agreed to accept 5% less
amount:
(a) ₹ 28,000
(b) ₹ 38,000
(c) ₹ 37,500
(d) ₹ 36,500.
14 Abin, Babin and Chavi are partners in the ratio of 5:3:2. Before Babin's salary of ₹ 34,000 1
(a) ₹ 55,200
(b) ₹ 79,000
(c) ₹ 89,200
(D)₹ 45,000
15 Joy Ltd. issued 1,00,000 equity shares of ₹ 10 each. The amount was payable as follows: 1
On allotment- ₹ 4 per share
On first and final call- balance
Applications for 95,000 shares were received and shares were allotted to all applicants. Sohan
to whom 500 shares were allotted failed to pay allotment money and Gautam paid his entire
amount due including the amount due on first and final call on the 750 shares allotted to him
along with allotment. The amount received on allotment was:
(a) ₹ 2,25,000
(b) ₹ 3,78,000
(c) ₹ 3,80,250
(d) ₹ 2,19,000
16 Identify the journal entry for the issue of forfeited shares at par: 1
(a) Bank Ac Dr.
(b) Bank A/c Dr.
(d) None of these.
OR
A forfeited share can:
be re-issued at a maximum discount equal to the amount forfeited (d) none of the
above.
17 Arjun, Bhim and Nakul are partners sharing profits and losses in the ratio of 14:5:6 3
respectively. Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill of
the firm is valued at 2 years Purchase of super profits based on average Profits of last 3 years.
The profits for the last 3 years are ₹ 50,000, ₹ 55,000 and ₹ 60,000 respectively. The normal
profits for the similar firm are ₹ 30,000. Goodwill already appears in the books of the firm at
₹ 75,000.
The Profit for the first year after Bhim’s retirement was ₹ 1, 00,000.
Give the necessary Journal Entries to adjust Goodwill and distribute Profits showing your
working.
18 Divya purchased Jyoti's business with effect from 1st April, 2019. Profits shown by Jyoti's 3
business for the last three financial years were:
2016- Rs. 1,00,000 (including an abnormal gain of Rs. 12,500)
17
2017- Rs. 1,25,000 (after charging an abnormal loss of Rs. 25,000)
18
2018- Rs. 1,12,500 (excluding Rs. 12,500 as insurance premium on the firm's property-
19 now to be insured)
Calculate the value of the firm's goodwill on the basis of three year's purchase of the
average profit of the last three years.
19 Sunrise Company Ltd. has an equity share capital of Rs. 10,00,000. The company earns a 3
return on investment of 15% on its capital. The company needed funds for diversification.
The finance manager had the following options:
a. Borrow Rs 5,00,000 @ 15% p.a. from a bank payable in four equal quarterly
installments starting from the end of the fifth year, or
b. Issue Rs 5,00,000, 9% Debentures of Rs. 100 each redeemable at a premium of
10% after five years.
To increase the return to the shareholders, the company opted for option (ii). Pass the
necessary Journal entries for issue of debentures.
OR
X Ltd. forfeited 100 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had
paid application and allotment money of ₹ 5 per share. Out of these, 80 shares were re-
issued to Y for ₹ 8 per share as ₹ 8 paid up per share. Record the journal entries for
forfeiture and re-issue of shares by opening call in arrear account.
20 X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They decide 3
to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April,
2019. Following items appear in the Balance Sheet as at 31st March, 2019:
Rs. Rs.
General Reserve 75,000 Advertisement Suspense A/c 50,000
(Dr.)
Workmen Compensation 12,500 Profit and Loss Account (Cr.) 37,500
Reserve
21 Ankit limited was registered with authorised capital of Rs. 12000000 divided into 120000 equity 4
shares of Rs. 100 each. The company issued 6000 equity shares as fully paid to the vendor for
purchase of building and 50,000 equity shares were subscribe for by the public. All the calls
were made and were duly received accept the second and final call of Rs. 20 per share on 700
shares. Show how share capital will appear in the Balance Sheet of the company. Also prepare
'Notes to accounts' for the same.
22 Adam, Smith and Akbar are partners. They decided to dissolve the firm 31st March 2019. Pass 4
the necessary journal entries for the following, after the various assets (other than cash and
bank) and outside liabilities have been transferred to realisation account:
a) An old typewriter which was not recorded in the books was sold for Rs. 4000 whereas
its expected value was Rs. 3000.
b) Stock of Rs. 70000 was taken by Adam at a discount of 20%.
c) A creditor for Rs.30000 accepted machinery valued Rs. 28000 in full settlement of his
claim.
d) Loss on dissolution was Rs. 12000.
23 Saraswati Ltd invited applications for issuing 2,00,000 equity shares of Rs. 10 each. The 6
amounts were payable as follows
On application — Rs. 3 per share
On allotment — Rs. 5 per share
On first and final call — Rs. 2 per share
Applications were received for 3,00,000 shares and pro-rata allotment was made to all
the applicants. Money overpaid on application was adjusted towards allotment. B, who
was allotted 3,000 shares, failed to pay the first and final call money. His shares were
forfeited. Out of the forfeited shares, 2,500 shares were reissued as fully paid up @ Rs.
8 per share.
Pass necessary journal entries to record the above transactions in the books of Saraswati
Ltd.
OR
Record the journal entries for forfeiture and reissue in the following cases:
a) Xerox Ltd. Forfeited 200 shares of Rs. 100 each , Rs, 70 called up, on which the
shareholders had paid application and allotment money of Rs. 50 per share. Out of these,
150 shares were reissued to Namisha as Rs. 70 paid up for Rs. 80 per share. (3)
b) Yamuna Ltd. Forfeited 180 shares of Rs. 10 each , Rs, 8 called up, issued at a premium
of Rs. 2 per share to Rama for nonpayment of allotment money of Rs 5 per share
(including premium) . Out of these, 160 shares were reissued to Samita. As Rs. 8 called
up for Rs. 10 per share fully paid up. (3)
24 Babita and chaman are partners sharing profits in the ratio of 3:2. There Balance Sheet as on 6
31st March 2018 was as follows:

(Rs.) (Rs.)
Creditors 60,000 Cash 16000
Provision for bad & 1000 Debtors 25000
doubtful debts
Babita's capital 60000 Furniture 10,000
Chaman’s capital 40000 Machinery 20,000
Land and building 80,000
Profit & loss account 10000
1,61,000 1,61,000
Diya was admitted to the partnership for 1/5 share in the profits on the following terms:
a) The new profit sharing ratio was decided at 2:2:1.
b) Diya will bring Rs. 50000 as her capital and Rs. 20000 for her share of goodwill.
c) Half of the goodwill amount was withdrawn by the partner/ partners who sacrificed
share in favour of Diya.
d) A provision of 5% for bad and doubtful debts was to be maintained.
e) An item of Rs. 500 included in sundry creditors was not likely to be paid.
f) A provision of Rs. 800 was to be made for claims for damages against the firm.
After making the above adjustments the capital account of Babita and Chaman were to be
adjusted on the basis of Diya's Capital, actual cash was to be brought in or to be paid off as the
case may be.
Prepare Revaluation account, and Partners' capital account.
OR
The balance sheet of Narang, Suri and Bajaj who share profits and losses 1/2 ,1/6
and 1/3 respectively. At 1 April 2017 was as follows:
(Rs.) (Rs.)
Creditors 18,000 Cash 7,000
Reserves 12,000 Debtors
20,000 19,000
Less: provision
1,000
Bills payable 12,000 Machinery 30,000
Narang’s capital 30,000 stock 22,000
Suri’s capital 30,000 Furniture 12,000
Bajaj’s capital 28,000 Freehold premises 40,000
1,30,000 1,30,000
Bajaj retires from the business on the following terms.
● Freehold premises and stock appreciated by 20% and 15% respectively.
● Machinery and furniture depreciated by 10% and 7% respectively.
● Bad debts reserve increased to 1500.
● Goodwill valued at 21,000 on bajaj’s retirement.
Continuing partners decided to adjust their capitals in new profit ratio after retirement
of Bajaj.Surplus or deficit if any adjusted through current A/Cs.
Prepare Revaluation A/C, and partners Capital A/cs
25 Vijay, Vivek and Vinay are partners in a business sharing profits as 3/4, 1/8 and 1/8 respectively 6
and their Balance Sheet as at 31st March, 2020 was:
Liabilities (₹) Assets (₹)

Capital A/c: Plant 5,00,000
Vijay 5,00,000 Debtors 4,00,000
Vivek 3,00,000 Stock 2,00,000
Vinay 2,50,000 Cash 50,000
General Reserve 50,000 Bank 2,50,000
Loan by Vinay 50,000
Creditors 2,50,000
14,00,000 14,00,000
Vinay died on 31st December, 2020 and the Partnership Deed provided the following:
(a) The deceased partner will be entitled to his share of profits up to the date of death, calculated
on the basis of previous year’s profits.
(b) He will be entitled to his share of goodwill of the firm, calculated on the basis of three years’
purchase of the average profits of the four years. The net profits for the last four years ended
31st March, 2017 – ₹ 8,00,000; 2018 – ₹ 6,00,000; 2019 – ₹ 4,00,000 and 2020 – ₹ 2,00,000.
(c) His drawing up to the date of death was ₹ 18,000.
Determine the amount payable to the legal representatives of the deceased partner by preparing
the accounts.
26 Pass necessary Journal Entries:- 6

A. Sandesh Ltd. took over the assets of Rs. 7,00,000 and liabilities of Rs.2,00,000 from
Sanchar Ltd.for a purchase consideration of Rs.4,59,000. Rs.85000 were paid by
accepting a draft in favour of Sanchar Ltd. payable after three months and the balance
was paid by issue of equity shares of Rs.10 each at a premium of 10% in favour of
Sanchar Ltd. (4)
B. A company issued Rs.40,000, 12% Debentures at a discount of 5% and redeemable at
5% premium. (2)
27 Revenue from Operations Rs. 4,00,000; Cost of Revenue from Operations 60% of Revenue 1
from Operations; Operating expenses Rs. 30,000 and rate of income tax is 40%. What will be
the amount of profit after tax?
(a) Rs. 64,000
(b) Rs. 78,000
(c) Rs. 52,000
(d) Rs. 96,000
OR
Name two accounting ratios which are complementary to each other:
(a) Current ratio and Quick ratio
(b) Operating ratio and operating profit ratio
(c) Gross profit ratio and Net Profit ratio
(d) (d) All of these
28 Under which major headings and sub-heading will “Provision for employee benefits “shown 1
in the Balance Sheet of a company as per Schedule III of Companies Act, 2013?
(a) Head: Non-current liability Sub head ; Deferred provision
(b) Head: Non-current liability Sub head ; Long term provision
(c) Head: Current liability Sub head ; Current liability
Head: Current liability Sub head ; Short term provision
29 Proposed dividend is a : 1
30 Balance Sheet (Extract) 1
Equity and liabilities 31-3-2019 (₹) 31-3-2020 (₹)

10% Debentures 2,00,000 1,60,000
Interest on debentures is paid on half yearly basis on 30th September and 31st March each
year. Debentures were redeemed on 30th September, 2019. How much amount (related to
above information) will be shown in Financing Activity for Cash Flow Statement prepared
on 31st March, 2020?
a. Outflow ₹ 40,000.
b. Inflow ₹ 42,000.
c. Outflow ₹ 58,000.
d. Outflow ₹ 64,000
31 1. How would you disclose the following items in the Financial Statements of a Limited 3
Company?
a. Outstanding Salary
b. Bank Balance
c. Unpaid Matured Deposits
d. Preliminary Expenses
e. Bills Payable
f. Sale of Services
32 State giving reasons, which of the following transactions would increase, decrease or not 3
change the Stock Turnover Ratio.
(a) Sale of goods for Rs. 25,000 (costing Rs. 20,000)
(b) Increase in the value of closing stock by Rs.12,000
(c) Goods purchased for Rs. 50,000.
(d) Purchase Return amounting to Rs. 5,000
(e) Goods costing Rs. 15,000 distributed as free samples.
(f) Goods costing Rs. 5,000 withdrawn for personal use.
33 A. Cost of goods sold is rs. 240000; inventory turnover is 8 times; stock at beginning is 1.5 4
times more than the stock at the end. Calculate value of opening and closing inventory.
(2)
B. From the following information related to sourav ltd., calculate quick ratio
Fixed assets rs.75,00,000; current assets rs.40,00,000; current liabilities rs.27,00,000;
inventories rs. 13,00,000; 12% debentures rs.80,00,000, share capital rs.1,05,00,000, p/l a/c
debit balance rs.5,00,000
(2)
OR
When Debt to Equity Ratio is 2 : 1, state giving reason, whether this ratio will increase or
decrease or will have no change in each of the following cases:
i. Sale of Land (Book value Rs.4,00,000) for Rs.5,00,000;
ii. Issue of Equity Shares for the purchase of Plant and Machinery worth
Rs.10,00,000;
Prepare a cash flow statement from the following balance sheet: 6
Note 31.3.2018 31.3.2017

Particulars
No.
I. EQUITY AND LIABILITIES:
(a) Share Capital 4,50,000 3,80,000
(b) Reserve & Surplus 1 2,06,000 1,74,000
(2) Non-Current Liabilities:
Long-term Borrowings 2 75,000 50,000
(3) Current Liabilities:
(a) Short-term Borrowings 3 50,000 20,000
(b) Trade Payables 4 43,000 42,000
TOTAL 8,24,000 6,66,000
II. ASSETS:
(1) Non-Current Assets:
(a) Fixed Assets 2,10,000 1,75,000
(b) Non-Current Investments 5 40,000 25,000
(2) Current Assets:
(a) Inventory 3,00,000 2,80,000
(c) Cash and Bank Balances 30,000 34,000
TOTAL 8,24,000 6,66,000
Notes to Accounts:
31.3.2018 31.3.2017
1 Reserve & Surplus :
General Reserve 1,40,000 1,00,000
Profit & Loss Balance 66,000 74,000
2,06,000 1,74,000
2 Long-term Borrowings :
10% Public Deposits 75,000 50,000
3 Short-term Borrowings :
Cash Credit 50,000 20,000
4 Trade Payables :
Bills Payables 8,000 14,000

43,000 42,000
5 Rate of Interest on Non-Current Investments: 12% p.a.

i. A new machinery was purchased for Rs. 50,000 during the year.
ii. Non-Current Investments costing Rs. 25,000 were sold at a loss of Rs. 3,000 at the end
of the year.
KENDRIYA VIDYALAYA SANGTHAN JAMMU REGION
SAMPLE PAPER SET 9
CLASS: XII SUBJECT: ACCOUNTANCY
TIME 3HRS M.M:80
GENERAL INSTRUCTION:
1. This question paper contains two parts-A and B. there are 34 questions in
the question paper. All questions are compulsory.
2. Question no. 1-16 and 27-30 carry 1 marks each.
3. Question no. 17-20 and 31-32 carry 3 marks each.
4. Question no. 21,22 and 33 carry 4 marks each.
5. Question no. 23,26 and 34 carry 1 marks each.
6. There is no overall choice. However, an internal choice has been provided
in 7 questions of 1 marks, 2 questions of 3 marks, 1 question of 4 marks
and 2 questions of 6 marks.
Q QUESTIONS M
PART – A
Accounting for Partnership Firms and Companies
1 In case of fixed capitals, partners will have 1
a) Credit balances in their Capital Accounts
b) Debit balances in their Capital Accounts
c) Credit or debit balances in their Capital Accounts
d) Credit balance or nil balance in their Capital Accounts
OR
In case of fluctuating capitals, partners will have
a) Credit balances in their Capital Accounts
b) Debit balances in their Capital Accounts
c) Credit or debit balances in their Capital Accounts
(d) Credit balance or nil balance in their Capital Accounts
2 Arun Ltd. forfeited 200 equity shares of ₹ 10 each on which ₹ 8 was paid 1
(including ₹ 1 premium). On reissue, the company can allow ₹______as
discount.
a) 7
b) 8
c) 3
d) 2
3 State any two factors affecting value of goodwill of the firm. 1
4 A company issued 10,000 shares of ₹ 10 each at par for which Application were 1
received for 50,000 shares. Amount called up:- On application ₹ 4 each, on
allotment ₹ 3 and remaining amount on final call. Shares were allotted on pro-
rata basis. Excess money will be refunded. After utilization for allotment and
final call. The Bank A/c will be credited with ₹_______
a) 1,60,000
b) 1,00,000
c) 60,000
d) None of these
5 Share of goodwill of the retiring partner is debited to remaining partners in their 1
(a) Old profit sharing ratio
(b) New profit sharing ratio
(c) Gaining ratio
(d)Sacrificing ratio
6 State (True or False) 1
Reserve capital A/c is the account where excess Amount of forfeited shares is
transferred.
Or
While issuing ___________ type of Debentures, company doesn’t give any
undertaking for the repayment of money borrowed by issuing such debentures.
(a) Zero coupon rate Debentures
(b) Non-Convertible Debentures
(c) Secured Debentures
(d) Non-Redeemable Debentures
7 Economic relationship among/between partners end at the time of: 1
(a) Admission of a partner/partners
(b) Death of a partner/partners
(c) Retirement of a partner
(d) Dissolution of partnership firm
Or
State any one difference between dissolution of partnership firm and dissolution
of partnership.
8 A and B shared profits and losses in the ratio of 3:2. With the effect from 1st 1
April, 2022, they agreed to share profits equally. The goodwill of the firm was
valued at ₹ 30,000. Pass the necessary journal entry for the treatment of goodwill.
a. A’s Capital A/c Dr. 3,000
To B’s Capital A/c 3,000
b. A’s Capital A/c Dr. 18,000

B’s Capital A/c Dr. 12,000
To Goodwill A/c 30,000
c. B’s Capital A/c Dr. 3,000

To A’s Capital A/c 3,000
d. None of the above
9 Varun Ltd. issued a prospectus inviting applications for 2,000 shares. 1

Applications were received for 3,000 shares and pro- rata allotment was made
to the applicants of 2,500 shares. If Mr. Shinchen has been allotted 40 shares,
how many shares he must have applied for?
a) 40
b) 32
c) 48
d) 50
OR
ABC Ltd. took over the assets of ₹ 7,60,000 and liabilities of ₹ 80,000 of Y Ltd.
for purchase consideration of ₹ 5,85,000; payable by the issue of 12%
debentures of ₹ 100 each at a discount of 10%. The number of debentures to be
issued is:
a) 6600
b) 6500
c) 4500
d) 5400
10 Debentures are shown in the balance sheet of the company under the head of 1
a. Non-current liabilities
b. Current liabilities
c. Share capital
d. None of the these
11 Self-generated goodwill is not recognized in the books of accounts. 1
a. AS- 3
b. AS-6
c. AS-26
d. AS-23
12 Ram and Lakhan are partners. Ram draws a fixed amount at the beginning of 1
every month. Interest on drawings is charged @ 8% p.a. At the end of the year
interest on Ram’s drawings amounts to ₹2,600. Monthly drawings of Ram were:
a. ₹ 8,000
b. ₹ 60,000
c. ₹ 7,000
d. ₹ 5,000
13 X, Y and Z are partners sharing profit and losses in the ratio 5:3:2. Z retires. 1
Calculate new profit-sharing ratio, if Z’s share taken up entirely by X.
a. 1:1
b. 3:7
c. 7:3
OR
A, B and C are partners sharing profits in the ratio of 7:5:4. C died on 30th June,
2022 and profits for the year 2021-22 were ₹ 24,000. C’s share in profit will be
______.
a. 6,000
b. 1,500
c. 8,000
14 A partnership firm earned divisible profit of ₹5,00,000, interest on capital is to be 1
provided to partner is ₹ 3,00,000, interest on loan taken from partner is ₹ 50,000
and profit sharing ratio of partners is 5:3.
Sequence the following in correct way
I. Distribute profits betwee partners
II. Charge interest on loan to Profit and Loss A/c
III. Calculate the net profit transferred to Profit and Loss Appropriation
A/c
IV. Provide interest on capital
a. [ ii, iii, iv, i ]
b. [i, iii, iv, ii]
c. [ii, iv, i, iii]
d. [iii, i, iv, ii]
15 Match items in List I with items in List II using the codes given below - 1
List I List II
A. Partner’s Current A/c 1. Dissolution of Partnership
B. Goodwill Account 2. Admission of a partner
C. Partner’s Drawings A/c 3. Fixed capital of partners
D. Realisation A/c 4. Goods taken by a partner for
self consumption
Codes:
(a) A-1, B-4; C-2; D-3 (b) A-3; B-2; C-4; D-1
(c)A-1; B-2; C-4; D-3 (d) A-3, B-4; C-2; D-1
16 Assertion (A):- Commission provided to partner is shown in Profit and Loss A/c. 1
Reason (R):- Commission provided to partner is charge against profits and is to
be provided at fixed rate.
a) (A) is correct but (R) is wrong
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) Both (A) and (R) are incorrect.
d) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
17 MRF Ltd. issued 600, 11% debentures of ₹ 1000 each on 1-1-2021. Pass 3
necessary journal entries for the issue of debentures in the following
situations:
(a) When debentures were issued at a discount of 5% and were
redeemable at a premium of 8%.
(b) When debentures were issued at a premium of 10% and were
redeemable at a premium of 6%.
OR
The authorized capital Suhani Ltd. is ₹ 45,00,000 divided into 30,000 shares of ₹
150 each. Out of these company issued 15,000 shares of ₹ 150 each at a premium
of ₹ 10 per share. The amount was payable as follow:
₹ 50 per share on application,
₹ 40 per share on allotment (including premium),
₹30 per share on first call and balance on final call.
Public applied for 14,000 shares. All the money was duly received.
Prepare an extract of Balance Sheet of Suhani Ltd. as per Revised Schedule VI
Part –I of the Companies Act 2013, disclosing share Capital. Also prepare notes
to accounts for the same.
18 Mohan, Sohan and Rohan are partners in a firm. Their drawings are : 3
(1) Mohan draws ₹ 4,000 in the beginning of every month.
(2) Sohan draws ₹ 4,000 in the middle of every month.
(3) Rohan draws ₹ 4,000 at the end of every month
Calculate interest on Partners’ drawings @ 10% p.a. for the year ended 31st
March, 2022.
OR
A and B started a partnership business on 1st April 2021 the contributed ₹
6,00,000 and ₹ 400000 respectively as their capitals. The terms of the partnership
agreement on as under:
1. Interest on capital and drawings at the rate 6% per annum
2. B is to get a monthly salary of ₹ 2500
3. Sharing of profit or loss will be in the ratio of their capital contribution.
The profit for the year ended 31st March 2022 before making above
appropriations was ₹ 2,07,400. The drawings of A and B were ₹ 48,000 and
40,000 respectively. Interest on drawing amounted to ₹ 1500 for A and ₹1,100
for B.
Prepare Profit and Loss appropriation account, assuming that their capitals are
fluctuating.
19 Read the following hypothetical text and answer the given questions: Amit and 3
Mahesh were partners in a fast-food corner sharing profits and losses in ratio
3:2. They sold fast food items across the counter and did home delivery too.
Their initial fixed capital contribution was ₹1,20,000 and ₹ 80,000 respectively.
At the end of first year their profit was ₹ 1,20,000 before allowing the
remuneration of ₹ 3,000 per quarter to Amit and ₹ 2,000 per half year to Mahesh.
Such a promising performance for first year was encouraging; therefore, they
decided to expand the area of operations.
For this purpose, they needed a delivery van, a few Scotties and an additional
person to support. Six months into the accounting year they decided to admit
Sundaram as a new partner and offered him 20% as a share of profits along with
monthly remuneration of ₹ 2,500. Sundaram was asked to introduce ₹1,30,000
for capital and ₹ 70,000 for premium for goodwill. Besides this Sundaram was
required to provide ₹ 1,00,000 as loan for two years. Sundaram readily accepted
the offer. The terms of the offer were duly executed and he was admitted as a
partner.
(i) Remuneration will be transferred to _______________ of Amit
and Mahesh at the end of the accounting period.
a. Capital account.
b. Loan account.
c. Current account.
d. None of the above.
(ii) Upon the admission of Sundaram the sacrifice for providing his
share of profits would be done:
a. by Amit only.
b. by Mahesh only.
c. by Amit and Mahesh equally.
d. by Amit and Mahesh in the ratio of 3:2.
(iii) Sundaram will be entitled to a remuneration of
_____________at the end of the year.
20 The average net profits Expected of the firm in future are ₹ 68,000 per year and 3
capital invested in the business by the firm is ₹ 3,50,000. The rate of interest
expected from capital invested in this class of business is 12%. The remuneration
of the partners is estimated to be ₹ 8,000 for the year.
You are required to find out the value of goodwill on the basis of 2 years
purchase of super profits.
21 Pass journal entries for the following transactions in the books of X, Y and Z 4
sharing profits in the ratio of 3:2:1 at the time of dissolution of firm:
a. There was a balance of ₹ 18,000 in the general reserve on date of
dissolution.
b. Realisation Expenses ₹ 1,000 borne by partner X and paid by firm.
c. Y, a partner, took a machine of ₹ 20,000 at an agreed value of ₹ 22,000.
d. Z , a partner, agreed to take creditor of ₹ 30,000 for ₹ 20,000.
22 Nindiya limited was incorporated on 1st April 2022 with registered office in 4
Mumbai. The capital clause of memorandum of Association reflected a registered
capital of 8,00,000 equity shares of ₹ 10 each and 1,00,000 preference shares of ₹
50 each.
Since some large investments were required for building and machinery the
company in consultation with vendors, Ms.VPS Enterprises, issued 1,00,000
equity shares and 20,000 preference shares at par to them in full consideration
of assets acquired. Besides this the company issued 2,00,000 equity shares for
cash at par payable as ₹ 3 on application, ₹ 2 on allotment, ₹ 3 on first call and ₹
2 on second call.
Till date second call has not yet been made and all the shareholders have paid
except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr.
Vipul who did not pay first call on his 200 shares. Shares of Mr. Ajay were
then forfeited and out of them 100 shares were reissued at ₹ 12 per share.
Based on above information you are required to answer the following questions.
(i) Shares issue to vendors of building and machinery, Ms. VPS
Enterprises, would be classified as:
a. Preferential Allotment
b. Employee Stock Option Plan
c. Issue for Consideration other than cash
d. Right Issue of Shares
(ii) How many equity shares of the company have been subscribed?
a. 3,00,000
b. 2,99,500
c. 2,99,800
d. None of these
(iii) What amount of share forfeiture would be reflected in the
balance sheet?
a. ₹600 b. ₹900 c. ₹200 d. ₹ 300
23 A and B are partners sharing profits and losses in the ratio of 3:2. Their Balance 6
Sheet on 31st December ,2021 stood as under:
Liabilities Amount ₹ Assets Amount
₹
Capital : Machinery 66,000
A 70,000 Furniture 30,000
B 60,000 Investments 40,000
Bank loan 18,000 Debtors 38,000
Creditors 72,000 Less - Provision for 4,000 34,000
d/debts
Cash 24,000
--------------- ---------------
Total 2,40,000 Total 2,40,000
On this date they admitted C for 25% share in a profits on following terms :
1. C brings in ₹ 14,000 for in share of goodwill and further cash to make his
capital proportionate to make to his share of profit.
2. Depreciate furniture by 10%
3. Half of investments were to be taken over by A and B in their profit sharing
ratio and remaining valued at ₹ 26,000
4. New Profit Sharing Ratio will be 3:3:2
Prepare Revaluation A/c, Partners’ Capital A/c.
OR
A,B and C are partners sharing profit and losses in the ratio of 2:2:1 respectively.
The Balance sheet of the firm as at 31st March 2022 was as follows:
Capital a/c Stock 12,500
A 12,500 Machinery 17,500
B 15,000 Motor van 4,000
Buildings 22,500
C 20,000
47,500 Bank 1,250
Creditors
10,000 Debtors 8,000
Bills payable
2,000 Less:prov.for d/d 250
General reserve
6,000 7,750
65,500 65,500
B retires on 1st April 2022, on the following conditions:

1. Provision for doubtful debts to be increased by
975
2. Stock to be appreciated by 20% and building by 10%
3. Machinery to be depreciated by 10% and motor van by 15%
4. Goodwill of the firm to be valued at ₹ 9,000.
5. The capital of continuing partner are to be adjusted in new profit sharing
ratio between A and C as 3:2.
6. Excess or short fall if any to be transferred to their respective current
account.
Prepare Revaluation A/c and partners’ capital A/c
24 Ajanta Company Limited having a nominal capital of Rs. 30,00,000, divided into 6
shares of Rs100 each. It offered for public subscription 20,000 shares payable as
Rs20 on application, Rs 30 on allotment and the balance in two calls of Rs25
each. Applications were received by the company for 24,000 shares. Applications
for 20,000 shares were accepted in full and the shares allotted. Applications for
the remaining shares were rejected and the application money was refunded.
Amounts due were received with the exception of the final call on 600 shares
which were forfeited. Out of the forfeited shares, 400 were reissued @Rs 90 per
share.
Journalise the following transactions.
OR
Majumdar Ltd invited applications for issuing 10,00,000 equity shares of Rs 10
each at a premium of Rs. 2 per share. The amount payable was as follows.
On Application Rs. 5 (including premium)

On Allotment RS. 4
On First and Final Call Rs.3
Applications for 15,00,000 shares were received. Applications for 3,00,000 shares
were rejected and pro-rata allotment was made to the remaining applicants. Excess
application money was utilised towards sums due on allotment. Sharma, who had
applied for 24,000 shares failed to pay the allotment and call money. His shares
were forfeited. Out of the forfeited shares, 10,000 shares were re-issued for Rs.8
per share fully paid up. Pass necessary journal entries in the books of Majumdar
Ltd.
25 X, Y and Z were partners sharing P&L in the ratio 5:3:2. A died on 30th June, 6
2020. Entry for treatment of goodwill after his death was passed as follows:-
Y’s Capital A/c Dr. 1,80,000

Z’ Capital A/c Dr. 1,20,000
To X’s Capital A/c 3,00,000
(Entry for goodwill treatment passed at the time of death of partner)
X’s profit till date of death was estimated as ₹ 1,20,000, based on the average
profits of past three years. Final dues payable to X’s executors on the date of death
was calculated as ₹ 8,40,000 out of which ₹ 2,40,000 was paid immediately by
giving him Furniture valued for the same and balance was to be paid in three equal
annual instalments starting from 30 June, 2021, together with interest rate as
specified in Section 37 of Indian Partnership Act, 1932.
Pass necessary entry for profit share to be credited to X’s Capital and also
prepare X’s executors account till final settlement.
26 KY Ltd. had share capital of ₹ 80,00,000 divided in shares of ₹ 100 each and 6
20,000, 8% Debentures of ₹ 100 each as part of capital employed.
The company need additional funds of ₹ 55,00,000 for which they decided to
issue debentures in such a way that they got required funds after issuing
debentures of the same class as earlier, at 10% premium. These debentures were
to be redeemed at 20% premium after 4 years. These debentures were issued on
01 October, 2021.
You are required to
(a) Prepare Loss on Issue of Debentures Account assuming there was
existing balance of Securities Premium Account of ₹ 2,80,000.
(b) Pass entries for Interest on debentures on March 31, 2022 assuming
interest is payable on 30 September and 31 March every year.
Part B: Analysis of Financial Statements

27 Debt equity ratio is 1:2. Impact of conversion of debentures into equity on 1
ratio will ____ the ratio:
a. Improve
b. Reduce
c. No change
d. Can’t say
OR
Which of the following will have no effect on debt equity ratio?
a. Purchase of fixed asset by taking long term loan
b. Conversion of debentures into shares
c. Issue of bonus shares
d. Sale of fixed assets at a loss
28 Which of the following is not Cash or Cash 1
Equivalents:
a. Cash in hand
b. Demand Deposit
c. Bank Borrowings
d. Investment which is maturing within2 months from the date of acquisition
29 State any one objective of ‘Analysis of Financial Statements’. 1
OR
Contingent Liabilities are exhibited under the heading:
a. Fixed Liabilities
b. Current Liabilities
c. As a footnote
d. None of these
30 Insurance Claim received by Albert Co. Ltd. of ₹ 5,00,000 for Loss of 1
Machinery due to theft will be recorded in Cash Flow Statement in which of the
following manner?
a. Added under operating activities as extraordinary item and
subtracted from operating activities also.
b. Subtracted under operating activities as extraordinary item and
added to operating activities also.
c. Added under operating activities as extraordinary item and
outflow under investing activity also.
d. Subtracted under operating activities as extraordinary item and
inflow under investing activities also.
31 Explain any three limitations of Ratio analysis. 3
32 Classify the following items under Major heads and Sub-head (if any) in the 3
Balance Sheet of a Company as per schedule III of the Companies Act 2013.
a. Current maturities of long term debts
b. Furniture and Fixtures
c. Mining rights
33 Mudra Ltd. is in the process of preparing its Balance Sheet as per Schedule III, 4
Part I of the Companies Act, 2013 and provides its true and fair view of the
financial position.
(a) Under which head and sub-head will the company show ‘Stores and
Spares’ in its Balance Sheet
(b) What is the accounting treatment of ‘Stores and Spares’ when the
Company will calculate its Inventory Turnover Ratio?
(c) The management of Mudra Ltd. wants to analyses its Financial
Statements. State any two objectives of such analysis
OR
(a) From the following information, calculate Proprietory Ratio:
Share Capital ₹ 2,50,000 ; Reserves & Surplus ₹ 1,50,000 ; Non-current Assets
₹ 11,00,000 ; Current Assets ₹ 5,00,000.
(b) From the following details obtained from the financial statements of
Maruti Ltd. calculate ‘Current Ratio’.
Non-Current Assets : ₹ 150,000,000 ; Current Assets : ₹ 25,000,000
Share Holders Fund: ₹ 95,000,000 ; Non-Current Liability : ₹ 65,000,000
34 1) Following is the balance sheet of Solar power Ltd as at 31.03.2022 6

Particulars N. 31.3.2022 31.03.2021
no
Equities and liabilities
1. Shareholder’s fund :
(a) Share capital 24,00,000 22,00,000
1 6,00,000 4,00,000
(b) Reserves and Surplus
2. Non current liabilities Long term 4,80,000 3,40,000
borrowings
3. current liabilities
(a) trade payables 3,58,000 4,08,000
(b) short term provisions 1,00,000 1,54,000
Total 39,38,000 35,02,000
ASSETS
1. Non current assets
(a) fixed assets :
(i) Plant and equipment 2 21,40,000 17,00,000
(ii)Intangible assets 3 80,000 2,24,000
2. Current assets
(a) Current investment 4,80,000 3,00,000
(b) Inventories 2,58,000 2,42,000
(c) Trade receivables 3,40,000 2,86,000
(d) Cash and cash equivalent 6,40,000 7,50,000
Total 39,38,000 35,02,000

Notes to account:
n.no Particulars 31.3.2022 31.03.2021
1 Reserve and surplus in P/L
6,00,000 4,00,000
2 Tangible assets
Machinery 25,40,000 20,00,000
Less accumulated depreciation (4,00,000) (3,00,000)
21,40,000 17,00,000
3 Intangible assets
Goodwill 80,000 2,24,000
Additional information:-During the year a piece of machinery costing ₹
48,000 on which accumulated depreciation was ₹ 32,000 was sold for ₹12,000.
Prepare cash flow statement.
SAMPLE PAPER SET-10
one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks.
PART – A
(Accounting for Partnership firms and Companies)
Q.NO. QUESTIONS MARKS
Q.1 Which of the following transactions is always recorded in the partner’s capital account 1
irrespective of whether the partners capitals are fixed or fluctuating?
(a) Interest on partner’s loan
(b) Additional capital introduced
(c) Permanent withdrawal of capital
(d) Both (b) and (c)
OR
Complete the following statement.
-------------partner/s should compensate ----------------partner/s in case of reconstitution of
the partnership firm.
(a) Gaining, Gaining
(b) Sacrificing, Sacrificing
(c) Gaining, Sacrificing
(d) Sacrificing, Gaining
Q.2 The capital accounts of Alka and Archana showed credit balances of Rs. 4,00,000 and Rs. 1
3,00,000 respectively, after taking into account drawings and net profit of Rs. 2,00,000. The
drawings of the partners during the year 2021-2022 were:
(i) Alka withdrew Rs. 10,000 at the end of each quarter.
(ii) Archana’s drawings were:
31st May, 2021 Rs. 8,000
1st November, 2021 Rs. 7,000
1st February, 2022 Rs. 5,000
Interest on partner’s capital @ 10% p.a. for the year ended 31st March,2022 will be:
(a) Alka Rs. 34,000 and Rs. 22,000
(b) Alka Rs. 44,000 and Archana 32,000
(c) Alka Rs. 3,40,000 and Archana 2,20,000
(d) Alka Rs. 30,000 and Archana Rs. 20,000
OR
P and Q are partners sharing profits and losses in the ratio of 3:2. R is the manager who
receives a salary of Rs.8,000 per month and a commission of 5% on net profit after
charging such commission. Profit for the year is Rs. 13,56,000 before charging R’s salary.
The total remuneration due to R is:
(a) Rs.1,60,000
(b) Rs.1,56,000
(c) Rs.1,52,000
(d) cannot be determined
Read the following hypothetical situation, answer Q.3 and Q.4: 1

Rohit, Raman and Raina are partners in a firm. Their fixed capital account balances are
Rs.2,00,000, Rs.1,20,000 and Rs. 1,60,000, respectively. Each partner withdrew Rs. 15,000
during the financial year 2021-2022.
As per the provisions of their partnership deed: (a) Interest on capital was to be allowed @
5% p.a. (b) Interest on drawings was to be charged @ 4% p.a. (c) Profits and losses were to
be shared in the ratio 5:4:1.
The net profit of Rs.72,000 for the year ended 31st March, 2022, was divided equally
amongst the partners without providing for the terms of the deed.
Q.3 What will be the amount of interest on drawings charged from each partner?
(a) Rs. 600 each
(b) Rs. 300 each
(c) Rs. 1,500 each
(d) Rs. 750 each
Q.4 What adjustment entry will be passed to rectify the error?
(a) Debit Raina’s current A/c Rs. 11,410; Credit Rohit’s current A/c Rs. 10,150 and
Raman’s current A/c Rs. 1,260
(b) Debit Raina’s capital A/c 11,410; Credit rohit’s capital A/c Rs. 10,150 and Raman’s
current A/c Rs. 1,260
(c) Debit Rohit’s current A/c Rs. 10,150 and Raman’s current A/c Rs. 1,260; Credit Raina’s
current A/c 11,410
(d) Debit Rohit’s capital A/c Rs. 10,150 and Raman’s capital A/c Rs. 1,260; Credit Raina’s
capital A/c Rs. 11,410
Q.5 Red, Blue and white were partners in a firm sharing profit in the ratio 1:2:2. They decided 1
to share future profits in the ratio 7:5:3 with effect from 1st April,2022. Their balance sheet
as on that date showed a balance of Rs. 22,500 in Deferred Revenue Expenditure account.
The amount debited respectively to the capital accounts of Red, Blue and White for writing
off Deferred Revenue Expenditure will be:
(a) Rs. 7,500, Rs. 7,500 and Rs. 7,500
(b) Rs. 4,500, Rs. 9,000 and Rs. 9,000
(c) Rs. 10,500, Rs. 7,500 and Rs. 4,500
(d) Rs. 11,250, Nil and Rs. 11,250
Q.6 Amit and Sumit were partners in a firm with capitals of Rs. 3,00,000 and Rs. 2,00,000, 1
respectively. The normal rate of return was 20% and the capitalized value of average profits
was Rs. 8,50,000. The goodwill of the firm by capitalization of average profits method will
be ________.
(a) Rs. 10,00,000
(b) Rs. 1,50,000
(c) Rs. 3,50,000
(d) Rs. 5,00,000
Q.7 Given below are two statements – Assertion (A) and Reason (R). Choose the correct 1
alternative:
Assertion (A): There is a need for the revaluation of the assets and liabilities on the
admission of a partner.
Reason (R): It is always desirable to ascertain whether the assets and liabilities of the firm
are shown in books at their current values.
(a) Both (A) and (R) are correct and (R) is the correct reason of (A).
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(c) Only (R) is correct.
(d) Both (A) and (R) are wrong.
Q.8 Read the following statements and choose the correct alternative: 1
Statement-I: Goodwill, if existing in the books of the firm, it is written off at the time of
admission of a partner, among the old partners in their sacrificing ratio.
Statement-II: Goodwill not brought by the new partner will be debited to current account
of new partner while sacrificing partners’ capital accounts will be credited for their
respective shares.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement-I is true, Statement-II is false.
(d) Statement-II is true, Statement-I is false.
Q.9 A, B and C (B’s son) are partners in a firm sharing profit and losses in the ratio 3:2:1. B 1
died on 1st April, 2022. Which of the following statement is correct?
(a) C is of the opinion that is the rightful owner of his father’s share of profits and the
profits of the firm should be now shared between A and C equally.
(b) New profit sharing ratio of A and C will be 2:1.
(c) New profit sharing ratio of A and C will be 3:2.
(d) New profit sharing ratio of A and C remains same as their old profit sharing ratio i.e.
3:1.
Q.10 Which of the following statements are correct: 1
(i) The liability of the partner for acts of the firm is unlimited.
(ii) Private assets of a partner can also be used for paying the debts of the firm.
(iii) Each partner is liable jointly with all other partners and also severally to the third
parties for all the acts of the firm done, while he is a partner.
(iv) The liability of a partner is limited to the extent of his capital contribution.
(a) Only (iii)
(b) (i) and (ii)
(c) (i), (ii) and (iii)
(d) (i), (ii), (iii) and (iv)
Q.11 Amar Ltd. offered 2,00,000 Equity Shares of Rs.10 each, of these 1,98,000 shares were 1
subscribed. The amount was payable as Rs.3 on application, Rs.4 an allotment and balance
on first call. If a shareholder holding 3,000 shares has defaulted on first call, what is the
amount of money received on first call?
(a) Rs.9,000
(b) Rs.5,85,000
(c) Rs.5,91,000
(d) Rs.6,09,000.
Q.12 Contingent liability when paid on dissolution of a firm is debited to: 1
(a) Partners’ Capital A/cs
(b) Realisation A/c
(c) Liabilities A/c
(d) Asset A/c
OR
At the time of dissolution of partnership, journal entry for the settlement of loan advanced
by the firm to partner would be:
JOURNAL
Date Particulars LF DR.(Rs.) Cr.(Rs.)
(a) Bank A/c Dr.
To Loan to partner A/c
(b) Loan to partner A/c Dr.
To Bank A/c
(c) Realisation A/c Dr.
To Loan to partner A/c
(d) None of these
Q.13 Balance of Share Forfeiture account is shown in the balance sheet under the item: 1
(a) Current Liabilities & Provisions
(b) Reserves & Surplus
(c) Share Capital
(d) Unsecured Loans
OR
What will be the correct sequence to show Share Capital?
(i) Subscribed and fully paid up capital
(ii) Authorised Share Capital
(iii) Issued Share Capital
(iv) Subscribed but not fully paid up capital
(a) (i) (ii) (iii) (iv)
(b) (ii) (iii) (i) (iv)
(c) (iii) (ii) (iv) (i)
(d) (iv) (ii) (i) (iii)
Q.14 A Ltd. forfeited 100 equity shares of ₹ 10 each for the non-payment of final call of ₹ 3. State 1
the minimum reissue price at which these shares can be re-issued:
(a) Rs. 700
(b) Rs. 300
(c) Rs.400
(d) Rs.1,000
OR
X Ltd. invited applications for 2,00,000 equity shares of Rs 10 each at a premium of Rs 3
per share. The whole amount was payable on application. The issue was oversubscribed by
40 % and allotment was made on pro-rata basis. The amount adjusted to share allotment
will be:
(a) Rs.2,40,000
(b) Rs.8,00,000
(c) Nil
(d) 28,00,000
Q.15 Vijay Ltd. issued 1,00,000 equity shares of ₹ 10 each. The amount was payable as follows: 1
(a) On application- ₹ 3 per share
(b) On allotment- ₹ 4 per share
(c) On first and final call- balance
Applications for 95,000 shares were received and shares were allotted to all applicants.
Mohan to whom 500 shares were allotted failed to pay allotment money and Gauri paid his
entire amount due including the amount due on first and final call on the 750 shares allotted
to him along with allotment. The amount received on allotment was:
(a) Rs. 2,25,000
(b) Rs.3,78,000
(c) Rs.3,80,250
(d) Rs. 2,19,000
Q.16 Premium received on issue of debentures may be utilised for writing off: 1
(a) Premium allowed on redemption of debentures
(b) Writing off preliminary expenses
(c) Writing off discount allowed on issue of debentures
(d) All of the above
Q.17 Raka, Seema and Mahesh were partners sharing profit and losses in the ratio of 5:3:2. with 3
effect from 1st April, 2022. They mutually agreed to share profits and losses in the ratio of
2:2:1. On that date, there was a workmen's compensation fund of Rs.90,000 in the books of
the firm. It was agreed that:
(i) Goodwill of the firm be valued at Rs.70,000.
(ii) Claim for workmen's compensation amounted Rs.40,000.
(iii) Profit on revaluation of assets and re-assessment of liabilities amounted to Rs.40,000.
Pass necessary journal entries for the above transactions in the books of the firm.
Q.18 A, B and C were partners in a firm. On 1st April, 2021, the balance in their capital account 3
stood at Rs.8,00,000, Rs.6,00,000 and Rs.4,00,000 respectively. As per the provisions of
partnership deed, partners were entitled to interest on capital @ 5% p.a., salary to B Rs.3,000
per month and a Commission of Rs.12,000 to C.
A’s share of profit excluding interest on capital was guaranteed at Rs.25,000. B’s share of
profit including interest on capital but excluding salary was guaranteed at Rs.55,000 p.a. Any
deficiency arising on that account will be borne by C. The profits of the firm for the year
ending 31st march 2022 amounted to Rs.2,16,000.
Prepare Profit and Loss Appropriation A/c for the year ending 31st March, 2022.
Q.19 X Ltd. purchased a piece of land from Z Ltd. and paid the consideration as follows: 3
(i) Issued a cheque for Rs.10,00,000;
(ii) Issued a bill of Exchange for 3 months for Rs.5,00,000;
(iii) Issued 5,000; 9% Debentures of Rs.100 each at par redeemable at 10% premium after 5
years.
Pass the Journal Entries in the books of X Ltd.
OR
Akash Ltd. purchased a machinery of Rs.4,30,000 from Prateek Machines Ltd. and paid as
follows:
(a) Issued 10,000 Equity shares of Rs.10 each at a premium of Rs,3;
(b) Issued an acceptance of Rs.1,00,000 payable after 3 months; and
(c) Balance by issuing post-dated cheque of two months of Rs.2,00,000.
Pass the Journal entries in the books of Akash Ltd. and Prateek Machines Ltd.
Q.20 A, B and C are partners sharing profit in the ratio of 3:2:1. C decided to retire and after C’s 3
retirement. A and B decided to share profits and losses in the ratio of 1:3. At the time C’s
retirement, the goodwill of the firm is valued at Rs.1,80,000. Pass necessary journal entries
for the treatment of goodwill. General Reserve Rs.21,000 and goodwill Rs.24,000 appear in
the Balance Sheet on C’s retirement.
Q.21 "Sugandga Ltd.' is registered with an authorised capital of Rs.10,00,00,000 divided into 4
10,00,000 Equity Shares of Rs.100 each. The company issued 1,00,000 shares for public
subscription. A shareholder holding 100 shares, failed to pay the final call of Rs.20 per share.
His shares were forfeited. The forfeited shares were reissued at & Rs. 90 per share as fully
paid-up.
Present the 'Share Capital' in the Balance Sheet of the company as per Schedule IlI, Part I of
the Companies Act, 2013. Also prepare 'Notes to Accounts'.
Q.22 Pass the necessary journal entries for the following transaction on the dissolution of the 4
partnership firm of Tony and Ronny after the various assets (other than cash) and external
liabilities have been transferred to realization account:
(i) An unrecorded asset of Rs. 2,000 cash Rs. 3,000 was paid for liability of Rs.6,000 in full
settlement.
(ii) 100 shares of Rs. 10 each have been taken over by partners at market value of Rs. 20
per shares in their profit sharing ratio, which is 3:2.
(iii) Stock of Rs. 30,000 was taken over by a creditor of Rs. 40,000 at a discount of 30% in
full settlement.
(iv) Expenses of realization Rs. 40,000 were to be borne by Ronny. Ronny used the firm’s
cash for paying these expenses.
Q.23 Pooja Limited issued a prospectus inviting applications for 3,000 shares of Rs.100 each at a 6
premium of Rs.20 payable a s follows:
On Application – Rs.20 per share
On Allotment – Rs.50 per share (including premium)
On First call- Rs.20 per share
On Second call – Rs.30 per share
Applications were received for 4,000 shares and allotments made on prorata basis to the
applicants of 3,600 shares, the remaining applications being rejected, money received on
application was adjusted on account of
sums due on allotment. Renuka to whom 360 shares were allotted, failed to pay allotment
money and calls money, and her shares were forfeited. Kanika, the applicant of 240 shares
failed to pay the two calls, her shares
were also forfeited. All these shares were sold to Nitu as fully paid for Rs.80 per share.
Show the journal entries in the books of the company.
OR
(a) X Ltd. forfeited 10 shares of Rs.10 each, Rs.7 called up on which the shareholder had paid
application and allotment money of Rs.5 per share. Out of these, 8 shares were re-issued to
Y for Rs.Rs.8 per share at Rs.8 per paid up per share. Record the journal entries for forfeiture
and reissue of shares by opening calls-in-arrears and calls-in-advance accounts.
(b) L Ltd. forfeited Mr. M's shares who has applied for 600 shares and was allotted 400
shares failed to pay allotment money of Rs.4 per share including premium of Rs.2 on which
he had paid application money of Rs.2 only. Pass necessary journal entries for forfeiture of
shares by opening calls-in-arrears and calls-in-advance accounts.
(c) C Ltd. forfeited 50 shares of Rs.10 each, for non- payment of final call money of Rs.3 per
share. Out of these 20 shares were reissued to T at Rs.8 per share. Record the journal entries
for forfeiture and reissue of shares assuming that the company maintains alls-in-arrears and
calls-in-advance accounts.
Q.24 Ashish and Nimish were partners in a firm sharing profit and losses in the ratio of 3:2. On 6
31st March, 2022 their balance sheet was aa following:
(Rs.) (Rs.)
Capitals: Plant and machinery 2,90,000
Ashish 3,10,000 Furniture 2,20,000
Nismish 2,90,000 6,00,000 Debtors 90,000
General reserve 50,000 Less: Provision 1,000 89,000
Workmen's compensation fund 20,000 Stock 1,40,000
Creditors 1,00,000 Cash 41,000
7,80,000 7,80,000
On 1st April, 2022, Geeta was admitted into the partnership for 1/4th share in the profits on
the following terms: (i) Goodwill of the firm was valued at Rs. 2,00,000. (ii) Geeta bought
Rs. 3,00,000 as her capital and her share of goodwill premium in cash. (iii) Bad debts
amounted to Rs. 2,000. Created a provision for doubtful debts @ 5% on debtors. (iv)
Furniture was found undervalued by Rs. 65,400. (v) Stock was taken over by Nimish for Rs.
1,30,000. (vi) The liability against workmen's compensation fund was determined at Rs.
30,000, to be paid later. (vii) After the above adjustments, the capitals of Ashish and Nimish
were to be adjusted taking Geeta's capital as base. Excess or shortage was to be adjusted by
opening current accounts. Prepare Revaluation Account and Partners' Capital Account.
OR
Radha, Manas and Arnav were partners in a firm sharing profits and losses in the ratio of 3 :
1 : 1. Their balance sheet as at 31st March, 2022 was as follows:
(Rs.) (Rs.)
Capitals: Furniture 4,60,000
Radha 4,00,000 Investment 2,00,000
Manas 3,00,000 Stock 2,40,000
Arnav 2,00,000 Debtors 2,20,000
Investment fluctuation fund Less: Provision 10,000 2,10,000
Creditors Cash 1,50,000
9,00,000
1,10,000
2,50,000
10,30,000 10,30,000
Manas retired on 1st April, 2022. It was agreed that:

(i) Stock was brought up to 120%. Value of furniture was to be reduced by Rs. 3,000.
(ii) Provision for doubtful debts was to be increased to Rs. 15,000.
(iii) Market value of investments was Rs. 1,90,000. Goodwill of firm was valued at Rs.
2,00,000.
(iv) Manas was paid Rs. 68,000 in cash and the balance was transferred to his loan
account.
(v) Capitals of Radha and Arnav were to be in proportion to their new profits sharing
ratio. Surplus/deficit, of any, in their capital accounts was to be adjusted through
current accounts.
Prepare Revaluation Account and Partners' Capital Accounts.

Q.25 Keith, Bina and Veena were partners in a firm sharing profit and losses equally. Their balance 6
sheet as on 31-03-2022 was as follows:
(Rs.) (Rs.)
Capitals: Plant and machinery 2,40,000
Keith – 1,50,000 Stock 60,000
Bina - 1,00,000 Sundry debtors 35,000
Veena - 75,000 3,25,000 Cash at bank 50,000
General reserve 30,000
Sundry creditors 30,000
3,85,000 3,85,000
Veena died on 30th June, 2022. According to the partnership deed, the executors of the
deceased partner were entitled to:
(a) Balance in capital amount.
(b) Salary till the date of death @Rs. 25,000 per annum.
(c) Share of goodwill calculated on the basis of twice the average profits of past three
years.
(d) Share of profit from the closure of last accounting year till the date death on the basis
of average of three completed years profits before death.
(e) Profits for 2019-20, 2020-21 and 2021-22 were Rs. 1,20,000, Rs. 90,000 and Rs.
1,50,000, respectively.
Veena withdraw Rs. 15,000 on 1st June, 2022 for paying her daughter's school fees. Veena's
executors were paid Rs. 16,250 immediately and the balance to be paid in two equal half
yearly instalments together with interest @6% p.a.
Prepare Veena’s capital account and Veena's executors account on the date of Veena's death.
Q.26 During the year ended 31st March, 2020, Antariksh Ltd. issued 12% Debentures of Rs.100 6
each as per the details given below:
(a) 900 Debentures issued as collateral security to a bank against a loan of Rs.60,000.
(b) The underwriters were to be paid a commission of Rs.48,000. 25% of the amount was
paid to them in cash and the balance was paid by the issue of Debentures at a discount of
10% to be redeemed at par.
(c) A machine was purchased for Rs.2,18,500. The vendor was paid by the issue of
Debentures at a premium of 15% to be redeemed at par.
(d) 5,000 Debentures were issued to the public at 5% premium, to be redeemed at a
premium of 5%.
'The company wrote off all capital losses arising from the issue of Debentures at the end of
the year from its capital profits and if need be from its revenue profits.
You are required to Journalise the above transactions in the books of Antariksh Ltd.
PART-B: ANALYSIS OF FINANCIAL STATEMENTS
Q.27 Which of the following is incorrect? 1
(a) Financial Statements provide financial data on economic resources and obligations of an
enterprise
(b) Financial Statements take into account the qualitative elements
(c) Financial Statements provide a true and fair view if consistency principle is followed
(d) Financial Statements ignore the price level changes
Q.28 From the following calculate Operating ratio: 1
Revenue from operations Rs.10,00,000; Cost of revenue from operations Rs.2,50,000;
Operating cost Rs.5,00,000:
(a) 40%
(b) 50%
(c) 60%
(d) 30%
OR
If capital employed is Rs.8,00,000, total debt is Rs.5,00,000, current liability is Rs.2,00,000,
then the value of debt-equity ratio is:
(a) 2:5
(b) 3:5
(c) 5:8
(d) none of these
Q.29 How will you make adjustment of Proposed Dividend: 1
(a) Add previous year’s proposed dividend under net profit before tax and extra ordinary items
and deduct it under financing activity.
(b) Add current year’s proposed dividend under net profit before tax and extra ordinary items
and deduct previous year’s proposed dividend under financing activity
(c) Add current year’s proposed dividend under net profit before tax and extra ordinary items
and deduct current year’s proposed dividend under financing activity
OR
Match the following activities of a manufacturing concern as under Cash Flow Statement:
(i) Purchase of software 1. Operating Activities
(ii) Payment of interest on debentures 2. Financing Activities
(iii) Purchase of stock-in-trade 3. Investing Activities
(a) 3,2,1
(b) 1,2,3
(c) 3,1,2
(d) 2,3,1
Q.30 K Ltd. purchased a machinery of Rs.10,00,000 issuing a cheque of Rs.2,50,000 and 10% 1
debentures of Rs.7,50,000. In the Cash Flow Statement, the transaction will be shown as:
(a) Outflow under Investing Activity Rs.10,00,000, inflow under Financing Activity as receipt
for Debentures Rs.7,50,000
(b) Outflow under Investing Activity Rs.2,50,000
(c) Inflow of Rs.7,50,000 as Financing Activity
Q.31 Under which major heads and sub-heads will the following items be placed in the Balance Sheet 3
of the company as per schedule III, Part I of the Companies Act,2013?
1. Prepaid insurance
2. Calls-in-arrears
3. Capital reserve
4. Investment of shares and debentures of another company
5. Unpaid/unclaimed dividend
6. Loose tools
OR
One of the objectives of ‘Financial Statement Analysis’ to judge the ability of the firm to
repay its debts and assessing the short-term as well as the long-term liquidity position of the
firm. State three more objectives of this analysis.
Q.32 The proprietory ratio of N Ltd. is 0.80:1. State with reasons whether the following transactions 3
will increase, decrease or not change the proprietory ratio:
1. Obtained a loan from bank Rs.2,00,000 payable after five years.
2. Purchased machinery for cash Rs.75,000.
3. Redeemed 5% redeemable preference shares Rs.1,00,000.
Q.33 Calculate Return on Investment: 4
Z Ltd.’s profits after interest and tax was Rs.1,00,000. Its Current Assets were Rs.4,00,000;
Current Liabilities Rs.2,00,000; Fixed Assets Rs.6,00,000 and 10% Long-term debt
Rs.4,00,000. The rate of tax was 20%.
OR
Calculate Trade Receivables Turnover Ratio:
Revenue from operations = Rs.5,00,000
1
Cash revenue from operations =333% of credit revenue from operations
Particulars 31-03-2020 31-03-2019
Debtors 50,000 60,000
Bills Receivables 10,000 30,000
Q.34 From the following Balance Sheet of Mohan Ltd., prepare cash flow Statement. Show your 6
workings clearly.
Balance Sheet of Mohan Ltd., as at 31st March 2019 and 31st March 2020
Particulars Note no. 31.3.2019 31.3.2020
(Rs.) (Rs.)
(a) Equity share capital
(b) Reserves and surplus 3,00,000 2,00,000
(Balance in Statement of Profit and Loss) 2,00,000 1,60,000
2. Non-current liabilities
(a) Long-term borrowings
3. Current liabilities
Trade payables 80,000 1,00,000
Short-term provisions
1,20,000 1,40,000
70,000 60,000
TOTAL 7,70,000 6,60,000
1. Machine costing Rs.7,80,000 on which accumulated depreciation was Rs.50,000 was sold
for Rs.2,20,000.
2. Debentures were redeemed on 31.3.2020 at a premium of 10%.
3. Interim dividend paid during the year Rs.10,000
xxxx-----------xxxx-------------------xxxx------------xxxx
Kendriya Vidyalaya Sangathan,Jammu Region
Sample Paper Set 11
Class XII Subject:
Accountancy
Time: 3 Hrs MM: 80
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.
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.
PART A
Q.N. QUESTION MARKS
1 A and B are partners in a firm sharing profits and losses in the ratio of 3:2. On 1st april,2019 1
they decided to admit C. Their new ratio is decided to be equal. Pass the necessary journal entry
to distribute investment fluctuation reserve of Rs. 60,000 at the time of C’s admission, when
investment appear in the book at Rs.2,10,000 and its market value is Rs. 1,90,000.
2 Assertion (A):- Salary provided to partner is shown in Profit and Loss A/c. 1
Reason (R):- Salary provided to partner is charge against profits.
a) (A) is correct but (R) is wrong
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) Both (A) and (R) are incorrect.
d) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
1
3 A Company may issue the shares : 1
(A) By Private Placement of Shares
(B) By Public Subscription of Shares
(C) For Consideration other than cash
(D) By All of the Above
Or
When debentures of Rs. 1,00,000 are issued as collateral security against a loan of Rs. 1,50,000,
the entry for issue of debentures will be:
(a) Credit debentures Rs. 1,50,000 and debit bank A/c Rs. 1,50,000
(b) Debit debenture suspense A/c Rs. 1,00,000 and credit bank A/c Rs. 1,00,000
(c) Debit debenture suspense A/c Rs. 1,00,000 and credit debentures A/c Rs. 1,00,000
d) Debit cash A/c Rs. 1,50,000 and credits bank A/c Rs. 1,50,000
4 A and B were partners in a firm sharing profit or loss equally. With effect from 1st April 2019 1
they agreed to share profits in the ratio of 4 : 3. Due to change in profit sharing ratio, A’s gain or
sacrifice will be :
(A) Gain 1/14
(B) Sacrifice 1/14
(C) Gain 4/7
(D) Sacrifice 3/7
Or
Sohan and Mohan are partners sharing profits and losses in the ratio of 2:3 with the capitals of ₹
5,00,000 and ₹ 6,00,000 respectively. On 1st January 2022, Sohan and Mohan granted loans of
₹ 20,000 and ₹ 10,000 respectively to the firm. Determine the amount of loss to be borne by
each partner for the year ended 31st March 2022 if the loss before interest for the year amounted
to ₹ 2,500.
a) Share of Loss Sohan –₹ 1,250 Mohan – ₹ 1,250

b) Share of Loss Sohan –₹ 1,000 Mohan – ₹ 1,500
c) Share of Loss Sohan –₹ 820 Mohan – ₹ 1,230
d) Share of Loss Sohan –₹ 1,180 Mohan – ₹ 1,770
5 On 1st April 2021, Sunrise Limited issued 5,000, 8% debentures of Rs. 100 each at a discount of 1
5%. What
will be the amount of interest for the year ending 31st March 2022?
(A) Rs. 38,000 (B) Rs. 42,000 (C) Rs. 40,000 (D) Rs. 25,000
Or
The amount set aside out of surplus for redeeming the debentures is known as:
(A) General Reserve (B) Securities Premium reserve
2
(C) Debenture Redemption Reserve (D) None of the above
6 Arman Ltd, issued a prospectus inviting applications for 20,000 shares of ₹10 each payable ₹3
on application, ₹ 5 on allotment and balance on call. Public had applied for certain number of
shares and application money was received. Which of the following application money, if
received restricts the company to proceed with the allotment of shares, as per SEBI guidelines?
a) ₹ 60000 b) ₹ 54000 c) ₹ 51000 d) 57000
7 What treatment is made of accumulated profits and losses 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
What journal entry will be recorded for writing off the goodwill already existing in Balance
Sheet at the time of retirement of a partner?
(A) Retiring Partner’s Capital A/c Dr. To Goodwill A/c
(B) All Partner’s Capital A/cs (including retiring) Dr. (in old ratio) To Goodwill A/c
(C) Remaining Partner’s Capital A/cs Dr. (in gaining ratio) To Goodwill A/c
(D) Remaining Partner’s Capital A/cs Dr. (in new ratio) To Goodwill A/c
8 When Goodwill is not purchased goodwill account can :

(A) Never be raised in the books
(B) Be raised in the books
(C) Be partially raised in the books
(D) Be raised as per the agreement of the partners.
Read the following hypothetical situation, Answer Question No. 9 and 10
Suman and Poonam are partners in a firm sharing profits and losses in the ratio of 2 : 3. Their
capitals are
Rs. 1,00,000 and Rs. 2,00,000 respectively on which they are entitled to get interest @ 5% p.a.
In the year 2018-19,
the firm earned a profit of Rs. 12000. Prepare Profit and Loss Appropriation A/c to show the
distribution of profits
between partners.
9 What is the share of Profit of Suman ? 1
a) Rs. 40000 B) RS. 4000 c) Rs.4800 d) Rs.7200
3
10 What is the share of Profit of Poonam?
a) Rs. 8000 B) RS. 4000 c) Rs.4800 d) Rs.7200
11 Choose the correct sequence of the following transactions in context of Division of Profits. 1
(i) Salary Given to Partner
(ii) Salary Given to employee
(iii) Transfer of Profit to General Reserve
(iv) Net Profit distribute among Partner
a) (i), (ii), (iii), (iv) b ) (ii), (i), (iii), (iv) c) (iv), (ii), (iii), (v) d) (i), (iii), (ii),
(iv)
12 A company forfeited 2,000 shares of Rs. 10 each (which were issued at par) held by A for non-
payment
of allotment money of Rs. 4 per share. The called up value per share was Rs. 9.On forfeiture, the
amount
debited to share capital is
Rs. 10,000 (b) Rs. 8,000 (c) Rs. 2,000 (d) Rs. 18,000
13 A company issued 25000 shares and received applications for 35000 shares. Company wants to
allot
shares to everyone who has applied. What will be the ratio of allotment?
(a)6:7 (b)7:5 (c)5:7 (d)7:6
14 A and B are partners sharing profits in the ratio of 4 : 3. They admitted C as a new partner who
gets 1/5th share of profit, entirely from A. The new profit sharing ratio will be :
(A) 20 : 8 : 7
(B) 13 : 15 : 15
(C) 13 :15:7
(D) 15 : 13 : 5
15 Give the journal entry for the treatment of partners loan appearing on the assets side of the 1
balance sheet, on dissolution of a partnership firm.
(A) Partner’s capital A/c Dr
To partner’s loan A/c
(B) Partner’s Loan A/c Dr
To Partners capital A/c
(C) Realisation A/c Dr
To partner’s loan A/c
or
On dissolution the balance of profit and loss a/c appearing on the assets side of a balance sheet
is
transferred to
a. On the debit side of realization a/c
b. On the credit side of realization a/c
4
c. On the debit of partners capital a/c
d. On the credit side of partners capital a/c
16 Which of the following is an appropriation of profit? 1
a) Interest on loan (b) Interest on Capital (c) Employees’ salary (d) Rent
17 A,B and C are sharing profits in the ratio of 4:3:2. A dies on 31st December, 20 21 accounts are 3
closed on 31st march every year. Sales for the year ending 31st march 2021 amounted to
Rs400000. Sale of Rs330000 amounted between the period from 1stapril 2021 to 31st December
2021. The profit for the year ending 31st march 2021 amounted to Rs60000. Calculate the
deceased partners share in the current year profit of the firm.
A) Rs. 22000 b) Rs. 16500 c) 11000
18 Ajay, Manish and Sachin were partners sharing profits in the ratio 5:3:2. Their Capitals were ₹ 3
6,00,000; ₹ 8,00,000 and ₹ 11,00,000 as on April 01, 2021. As per Partnership deed, Interest on
Capitals were to be provided @ 10% p.a. For the year ended March 31, 2022, Profits of ₹
2,00,000 were distributed without providing for Interest on Capitals.
Pass an adjustment entry and show the workings clearly.
Or
Ajay, Binod and Chandra entered into partnership on 1st April 2019 with a capital of 3,00,000,
2,00,000 and 1,00,000 respectively. In addition to capital Chandra 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.
1. Ajay wanted interest on capital to be provided @8% pa but Binod and Chandra did not
agree.
2. Chandra wanted that interest on loan be paid to him @ 10% pa but Ajay and Binod
wanted to pay @ 5% pa.
3. Ajay and Binod demanded to share profits in the ratio of their capital contribution,
Chandra is not in agreement with this proposal.
19 Purchased a running business from Aman Ltd. for a sum of Rs.15,00,000. 3

The payment of Rs.12,00,000 was made by issue of fully paid equity shares
of Rs.10 each and balance by a bank draft. The assets and liabilities
consisted of the following :
Plant 3,50,000; Stock 4,50,000; Land and Building 6,00,000; Sundry
Creditors 1,00,000.
Or
Venus ltd is a real estate co.the company took over assets of Rs 10,00,000and liabilities of Rs
1,80,000 of Cayns Ltd for Rs 7,60,000.Venus Ltd. issued 9% debentures of Rs 100 each at a
discount of 5% in full satisfaction of purchase consideration in favour of Cayns ltd
20 A, B, and C are partners sharing profits in the ratio of 5:3:2. They decided to share the profits in
the
Passratio of 2:3:5.
journal Starting
entries 1stofApril,
in books Venus they decided to adjust the following accumulated profits,
Ltd. 3
losses
and reserves without affecting their book values, bypassing an adjustment entry.
BOOK VALVE
Profit and Loss Account RS.15000
5
GENERAL RESERVE RS. 60000
ADVERTSEMENT SUSPENSE ACCOUNT DR. RS.30000
21 On 1st april 2017 Aradhana Ltd. Was formed with an authorised capital of Rs. 90,00,000 divided 4
into 90,000 shares of Rs. 100 each. The company invited applications for issuing 75,000 equity
shares.
The amount was payable as follows:
On application----- Rs. 20 per share
On allotment------- Rs. 50 per share
On first and final call Balance amount
The issue was fully subscribed and the company allotted shares to all the applicants. All money
was received except the first and final call on 5,000 shares.
Show the share capital in the balance sheet of the company as per schedule III of the companies
act, 2013 as at 31st march, 2018 and also show notes to A/c.
22 Pass the journal entries for following transactions on the dissolution of a firm of partners A & B: 4
i) Old furniture which had been written off in the books was sold for Rs. 40,000.
ii) There was old machinery which had been written off in the books. It was estimated to realise
Rs. 5,000 which was taken by B at the estimated price less 30%.
iii) Investments book value Rs 50000 realised at 120%.
iv) Debtors Rs. 2, 64,000. Provisions for doubtful debts Rs. 24,000, Rs. 48,000 of the books
debts proved bad
6
23 Vinod Ltd. had issued 1,00,000 Equity Shares of Rs.10 each at a premium of Rs.2 per share 6
payable with application money. The incomplete journal entries related to the issue are given
below. You are required to complete these blanks
Date Particular L.F Dr Cr
…………………………………. Dr.
To ………………………………
(Being amount received on application for
1,40,000 shares @ 5 per share including
premium)
Equity Share Application A/c Dr.

To …………………………………..
To ………………………………….. --------------
To …………………………………..
To …………………………………..
(Being transfer application money to Share
capital, securities premium, and refunded for
16,000 shares for rejected applications and
balance adjusted towards allotment as shares
were allotted on pro-rata basis)
…………………………………Dr.
To ………………………………
(Being amount due on allotment @ Rs.4 per
share)
……………………………… Dr.
To ………………………………
(Being amount received on allotment)
………………………………Dr.
To ………………………………
(Being first and final call due) ----------
…………………………………Dr. ---------
Calls in Arrear A/c Dr.
To ………………………………
(Being amount received on call)
-------
…………………………………Dr. 3000
To ………………………………
To ………………………………
(Being shares forfeited for not paying call)
--------
…………………………………. Dr. ------------

…………………………………. Dr. 7
To ………………………………
(Being reissue of forfeited shares @ Rs.8 fully
paid)
OR
‘Shubham Ltd.’ invited applications for issuing 12,000 equity shares of Rs.10 each at a premium of
Rs.3 per share. The amount was payable as follows:
On application and allotment – Rs.6 per share (including premium)
On first call – Rs.4 per share
On second and final call – the balance.
Applications for 18,000 shares were received and pro rata allotment was made to all the applicants.
Excess money received with applications was adjusted towards sums due on first call. All calls
were made and were duly received except the first call and second and final call on 120 shares
allotted to Vibhu. His shares were forfeited. The forfeited shares were reissued at the maximum
permissible discount as per the provisions of the Companies Act, 2013.
Pass necessary journal entries for the above transactions in the books of the company.
24 6
L and M share profits of a business in the ratio of 5:3. They admit N into the firm for fourth
share in the profits to be contributed equally by L and M. On the date of admission the
balance sheet of L and M was as follows:
Liabilities Amt (Rs.) Assets Amt (Rs.)
Capitals: Machinery 26,000

L 30,000 Furniture 18,000
M 20,000 Stock 10,000
Reserve Fund 4,000 Debtors 8,000
Bank Loan 12,000 Cash 6,000
Creditors 2,000
68,000 68,000
The terms of N’s admission were as follows:

i) N will bring Rs. 25,000 as his capital.
ii) Goodwill of the firm is to be valued at 4 years purchase of the average super profit
8
of the last three years.
Average profits of the last three years are Rs.20,000. While the normal profits that can be
earned on the capital employed are Rs.12, 000.
Furniture is to be revalued at Rs.24,000 and the value of the stock to be reduced by 20%. Prepare
revaluation account, partners capital of the firm after admission of N
OR
The Balance Sheet of A,B and C who were sharing profits and losses in the ratio of ½, 1/3, and 1/6
respectively, was as follows on 01/04/2018:

Bills Payable 6,400 Cash 25,650
Sundry Creditors 12,500 Bills Receivable 5,400
A’s Capital 40,000 Debtors 17,800
B’s Capital 25,000 Stock 22,300
C’s Capital 20,000 Furniture 3,500
Profit & Loss A/cs 4,500 Machinery 9,750
Buildings 24,000
1,08,400 1,08,400
‘A’ retired from the business on 01/01/2018 and his share in the firm was to be ascertained on the
revaluation of the assets as follows:
(i) Stock Rs 20,000, Furniture Rs 3,000, Plant & Machinery Rs 9,000, Building Rs 20,000
(ii) Rs 850 was to be provided for doubtful debts
(iii) The Goodwill of the firm was valued at Rs 6,000
(iv) ‘A’ was to be paid Rs 11,500 in cash on retirement and the balance in three equal yearly
instalments with interest at 9% per annum.
Prepare Revaluation Account, Partners’ Capital Accounts.
25 The balance sheet of Sindhu, Rahul and kamlesh, who were sharing profits in the ratio of 6
3:3:4 respectively,
as at 31st march 2012 was as follows:
General Reseve 10000 Cash 32000
Bills payable 20000 Stock 88000
Loan 24000 Investment 94000
Capital Land and building 120000
Sindhu 120000 Sindhu’ loan 20000
Rahul 100000
Kamlesh 80000
1,08,400 1,08,400
Sindhu died on 31stjuly 2012. The partnership deed provided for the following on the death
of a partner:
(a) Goodwill of the firm be valued at two years purchase of average profit for the last three
years which were 80000
(b) Sindus share of profit till the date of his death was to be calculated on the basis of sales
9
.sales for the year ended 31st march,2012 amounted to Rs800000 and that from 1stapril to
31stjuly 2012 Rs 300000. The profit for the year ended 31st march 2012 was 200000
(c) Interest on capitals was to be provided @6% p.a
(d) According to Sindhu’s will, the executor should donate his share to “martichaya–an
orphanage for girls”.
Prepare Sindhu’s capital account to be render to his executor.
26 Alpha Ltd. issued 10,000, 9% debentures of Rs 100 each. Pass necessary journal entries for 6
issue of debentures in the following cases:
(i) When debentures are issued at par and redeemable at par.
(ii) When debentures are issued at par & are redeemable at premium of 10%
(iii) When debentures are issued at a premium of 25% to the vendors for the purchase of
machinery worth Rs 12,50,000
PART – B
27 Write any one objective of preparation of cash flow statement. 1

Or
Interest paid to debenture holder is which type of activities
a) Operating b) financing c) investing d) all
28 Feature of financial analysis is to present the data contained in financial statements in 1

(A) Easy form
(B) Convenient and rational groups
(C) Comparable form
(D) All of the Above
OR
What is ideal quick ratio?
29 Debt Equity Ratio of a company is 1:2. Purchase of a Fixed asset for ₹ 5,00,000 on long term deferred payment
basis will increase, decrease or not change the ratio?
10
Which of the following is not a part of cash and cash equivalents: 1
30 a) marketable securities b) Current investments c)short-term deposits d)stock
31 Classify the following items under Major heads and Sub-head (if any) in the Balance Sheet of a Company as 3
per schedule III of the Companies Act 2013.
(i) Public Deposit
(ii) Furniture and Fixtures
(iii) Provision for Tax warranties
(iv) Income received in advance
(v) Capital Advances
(vi) 10% Debentures
32 Lala Ltd. and Bala Ltd. use different accounting policies for inventory valuation. These variations leave a big 3
question mark on the cross-sectional analysis and comparison of these two firms was not possible.
Identify the limitation of Ratio Analysis highlighted in the above situation. Also explain any two other
limitations of Ratio Analysis apart from the identified above
33 From the following details calculate Interest Coverage Ratio: 4
Net profit after tax - ₹ 7,00,000
6% debentures of ₹ 20,00,000
Tax Rate 30%
OR
Calculate proprietary ratio, if Total assets to Debt ratio is 2:1. Debt is₹5,00,000. Equity shares capital is
0.5 times of debt. Preference Shares capital is 25% of equity share capital. Net profit before tax
is₹10,00,000 and rate of tax is 40%.
34
From the following Balance Sheet of Dreams Converge Ltd as at 31.3.2018 and 31.3.2017; Calculate Cash from
operating activities. Show your workings clearly.
Notes
11
i. Machinery of the book value of 80,000 (accumulated depreciation ₹ 20,000 ) was sold at a loss
of ₹ 18,000
End of Paper
12

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कें द्रीय विद्यालय संगठन

KENDRIYA VIDYALAYA SANGATHAN

क्षेत्रीय कायाालय, जम्मू, नज़दीक राजकीय विककत्सालय, गााँधी नगर

Part A :- Accounting for Partnership Firms and Companies

Q.No. Questions Marks

(a) Sundry Assets A/c Dr.

(d) Cash A/c

6 How much profit is to be credited to the Partner Q after all adjustments?

7 What is the total profit to be credited to P, Q and R after all adjustments? 1

LIABILITIES AMOUNT ASSETS AMOUNT

Liabilities (₹) Assets (₹)

26 Pass necessary Journal Entries:- 6

Part B :- Analysis of Financial Statements

Equity and liabilities 31-3-2019 (₹) 31-3-2020 (₹)

Prepare a cash flow statement from the following balance sheet: 6

Note 31.3.2018 31.3.2017

General Reserve 1,40,000 1,00,000

Profit & Loss Balance 66,000 74,000

10% Public Deposits 75,000 50,000

Cash Credit 50,000 20,000

Sundry Creditors 35,000 28,000

Bills Payables 8,000 14,000

5 Rate of Interest on Non-Current Investments: 12% p.a.

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

The single adjustment entry will

4 10% debenture issued at Rs105 is repayable at Rs110, the face value of 1

A ltd took over the assets of Rs6,60,000 and liabilities of Rs80,000 of B

5 The subscribed share capital of Mukand Ltd is Rs.1,00,00,000 of Rs.100 1

10 Sundaram will be entitled to a remuneration of ----------- at the end of the

If a partner withdrew `10,000 in the end of each quarter throughout the

14 Amount of money not received out of called up capital is : 1

15 Match the following: 1

a) i- B, ii-C, iii-A, iv-D

17 M, B and K are partners sharing profits in the ratio of 6:4:1. K is 3

19 P Ltd. Purchase business from Q Ltd. for a sum of 3,00,000, payable a 3

24 L and M share profits of a business in the ratio of 5:3. They admit 6

Liabilities Amt (Rs.) Assets Amt (Rs.)

Capitals: Machinery 26,000

The terms of N’s admission were as follows:

Furniture is to be revalued at Rs.24,000 and the value of the stock to be

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

28 Interest received by other than financial enterprise is shown in the Cash 1

29 Sale of a machinery costing Rs 70,000 (accumulated depreciation of Rs 1

30 Which of the following is not included in cash and cash equivalents? 1

34 Prepare of Cash Flow Statement on the basis of the information given in 6

Part A :- Accounting for Partnership Firms and Companies

Debenture holders are the ……….of a company

Creditors 1,80,000 Debtors 2,00,000

Creditors 1,50,000 Cash in Hand 4,50,000

Total 16,50,000 16,50,000

Pass necessary journal entries

Part B :- Analysis of Financial Statements

27 Purchase of goods for re sale is shown in Statement of Profit and Loss as :

28 Discount received on making payment to suppliers’ results in:

32 From the following information Calculate:

Particulars 31st March 2021 31st March

Part A :- Accounting for Partnership Firms and Companies

1 Which of the following statement is true? 1

1. Kunal agreed to pay off his wife’s loan of Rs. 6,000.

The terms were

They decided to admit Vibhor on 01.04.2017 for 1/5th share

Particulars Note 31.03.2018 31.03.2012

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

S.N QUESTION MAR