Sample Paper 11 Solutions Accountancy Class XII Session 2022-23 ‘Time: 3 Hours ‘Max. Marks: 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 is compulsory for all candidates. 4.Part - B has two options ie. (i) As of Students must attempt only one of the given options. 5. Question 1 to 16 and 27 to 30 carries 1 mark each. 6. Questions 17 to 20, 3land 32 carries 3 marks e: 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. neial Statements and (ii) Computerised Accounting PART—A Accounting for Partnership Firms and Companies Assertion (A): Goodwill is treated as an intangible asset, Reason (R): Goodwill cannot be seen or touched, it ean only be felt Alternatives (a) Assertion (A) is true, but Reason (R) is false (b) Assertion (A) is false, but Reason (R) is true (c) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) (A) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (ay Ans: (c) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) of a new partner results in reconstitution of the fir (b) Change (©) Admission (A) Retirement 1 Profit Sharing Ratio Decrease in liability at the time of retirement of partner is (a) credited to revaluation account: (b) debited to goodwill account (©) debited to revaluation account (a) Both (b) and (c) Ans : (c) Admission (a) credited to revaluation aecount Share of lostes is transferred to_____under fluctuating capital account method. (a) partners’ current account (b) profit and loss account (c) partners’ capital account (a) None of these Need of profit and loss adjusting (a) charge against profits (b) recti (c) appropriation of profits (A) None of these n of errors or omissionsAns: (c) partners’ capital account (b) rectification of errors or omissions 4. A partner withdrew & 2,000 at the beginning of each month from 1st June, 2019 till the end of the accounting year upto 31st March, 2020, Interest on drawings is 12% per annum. You are required to calculate the amount of interest. (a) T1150 (>) 1,400 (c) & 1.100 (a) % 1,200 Ans: © Interest on drawings = Amount of Drawings x Number of Months x Rate x Period = 12 - = 2,000 x 10 x joo * 42" =21,100 “Average Period = 401 =5.5 months 5. When debentures are issued at par and are redeemable at a premium, the loss on such an issues debited to (a) Debentures applications and allotment aecount (b) Loss on issue of debentures account (c) Statement of profit and loss (a) All of the above or _______ days notice period is given to a defaulter on forfeiture, (a) 21 days (b) 28 days (0) 7 days (A) 14 days Ans: (b) Loss on issue of debentures account (a) 14 days Nisan Industries Limited issued 10,000 equity shares of @ 10 each at a premium of % 2 payable along with application, All the shares were applied and duly allotted, Amount at the time of application will we 1,00,000 (b) % 1,20,000 (©) % 1,10,000 (a) 2 1,30,000 Ams: (b) Equity Share Application and Allotment (10,000 x 10) = —_1,00,000 (4) Securities Preminm (10,000 2) = 20,000 Total Amount 1,20,000 7, Puneet and Lalit are partners in a firm, They share their profits and losses in the ratio of 3 : 2. They have decided that their new profits (losses) sharing ratio will be 1: 1. At that time their goodwill is valued at & 30,000. Calculate amount of goodwill which will be given by Lalit to Puneet. (a) 2.800 (b) % 3,000 (c) % 2.500 (a) & 2,400 Ans : (b)Sacrifice (Gain) Ratio = Old Ratio ~ New Ratio Puneets serifcing ratio = 3-4 = 975 = 1 sucritce Lats aritng ratio = 2-4 = 4-9 (3) (Gai) 52> 10 6, Lat wil give tA" = 20,000 x 2 = 89,000 8. Pass journal entry for amount of & 60,000 received on allotment of 14% debentures (a) 14% Debentures A/e Dr 60,000 To Bank A/e 60,000 (b) Bank A/e Dr 60,000 To Debentures Allotment Afe 60,000 (c) Debentures Allotment A/e Dr 60,000 To Bank A/c 60,000 (a) None of the above (>) Bank A/e Dr. 60,000 ‘To Debentures Allotn 60,000 Jeet and Meet are partners sharing profits in the ratio of 3 : 1. They admit Abhijeet as a partner who pays the new profit sharing ratio being 2: 1: 1 among Jest, Meet and Abhijeet. The amount be credited to (b) Only Jeet (c) Ject and Meet as % 1,500 and % 2,000 (a) 24,000 each Ans: () Sacrificing Ratio = Old Share ~ New Share Jet's sacrifice Here, only Jeet sacrifices. So, goodwill will be credited in Ject’s capital account only. 10. Redox Software Limited purchased an asset of & 7,00,000 from Amba Industries Limited on 1st April, 2020. 2 2,00.000 were paid immediately and the balance by issue of € 5.25,000. 12% debentures. Pass the journal entry for payment made, (a) Amba Industries Limited Dr. 7,00,000 Discount on Issue of Debentures A/e Dr. 25,000 ‘To 12% Debentures A/e 525,000 ‘To Bank A/c 2,00,000 (>) Amba Industries Limited. A/e Dr. 7,25,000 ‘To 12% Debentures A/e 5, 25,000 ‘To Bank Afe 2,00,000 (c) Amba Industries Limited Dr. 7,00,000 Discount on Issue of Debentures A/e Dr. 25,000 ‘To 12% Debentures A/e 7,25,000, (a) None of the aboveor Birla Pipes & Fitting Limited forfeited 1,000 shares of @ 10 each, % 7 called-up, issued at a premium of & 2 per share to be paid at the time of allotment, for non-payment of first call of 22 per share. Entry on forfeiture will be (a) Share Capital A/c Dr. 9,000 To Share First Call A/c 2,000 To Share Forfeiture A/c 7,000 (b) Share Capital A/c Dr. 7,000 To Share First Call A/c 2.000 To Share Forfeiture A/c 5,000 (c) Share Capital A/c Dr. 7,200 Securities Premium Reserve A/c Dr. 2,000, To Share First Call A/c 2,000 To Share Forfeiture A/c 7,000 (a) Share Capital A/c Dr. 9,000 Securities Premium Reserve A/e Dr. 2,000 To Share First Call A/c 2,000 To Share Forfeiture A/c 9,000 Ans: (a) Amba Industries Limited Dr. 7,00,000 Discount on Issue of Debentures A/c Dr. 25,000 To 12% Debentures A/c 5,25,000 To Bank A/c 200,000 or (b) Share Capital A/c Dr. 7,000 To Share First Call A/c 2,000 To Share Forfeiture A/c 5,00011. On the basis of the following data, how much final payment will be made to a partner on firm’s dissolution? Credit balance of capital account of the partner was % 50.000. Share of loss on realisation amounted to 7 10,000. Firm’s liability taken over by him was for & 8,000 (a) % 40,000 (c) 32,000 (b) & 52.000 (a) 748,000 Ans: (a) Dr. Partners’ Capital A/c Cr. Particulars Amount (%) Particulars Amount (%) To Realisation A/c (Loss) 10,000 | By Balance b/d 50,000 To Bank A/c (Final Payment) 48,000 | By Realisation A/c (Liability taken 8.000 Over) 58,000 58,00012, Karim and Wasim are partners in the ratio of 3: 2. Their capitals are % 2,000 and % 1,000 respectively. Interest on capitals is allowed @ 8% n earned a profit of € 150 for the year ended 31st March, 2021. Interest on capital payable for the year is (a) Karim 2 90; Wasim & 60 (b) Karim % 100; Wasim % 50. (c) Karim @ 160; Wasim & 80 (a) no interest will be allowed Ans: (b) Interest on Capital im = <8 e160; Wasim = 3 Karim = 2,000 x 785 = 160; Wasim = 1,000 x 785 =@ 80 Since, profit is less than the interest on capital, their interest will be paid to the extent of profit available, i. "s Interest = 489 x 150 = Vasim's Interest = 82 x 150 = 5 Karim’s Interest = 399 * 150 = 2100; Wasim’s Interest Bap * 150 = 750 18. Ranbir and Sarthak are partners in a firm sharing profits and losses in the ratio of 5 : 7 respectively. The extract of their Balance Sheet of 31st December, 2019 is as follows Liabilities Amount ) Assets Amount ) Creditors 2,00,000 If creditors amounting to & 24,000 are to be written-off as they are not likely to be claimed, then at what value will creditors be shown in new balance sheet? (a) &2.24,000 (b) % 1.76,000 (c) & 24,000 (a) None of these Viraj, Gopal and Hitesh were partners in a firm sharing profits in the ratio of 1 : 2: 2. They decided to share future profits in the ratio of 7 :5 :3 with effect from Ist April 2021. Their balance shect as on that date showed a balance of % 22,500 in deferred revenne expenditure account. Entry for writing-off deferred revenue expenditure is Viraj’s Capital A/e Dr x Gopal's Capital Ae Dr Y Hitesh’s Capital A/c Dr z ‘To Deferred Revenue Expenditure A/e 22,500 Here X. Y, Z are (a) % 10.500, @ 7,500 and % 4,500 (b) % 11,250, & 9,000 and 9,000 (c) & 7.500, & 7,500 and & 7,500 (a) % 4,500, & 9,000 and % 9,000 Ans : (b) New value of creditors (00,000 ~ 24,000 = & 1,76,000 (a) Viraj = 22,500 x £ =% 4,500; Gopal = 22,500 x 2 = 9,000; Hitesh = 22,500 x 2 =% 9,000 14, A company forfeited 400 shares of € 10 each on which application money of € 3 has been paid. Out of these, 200 shares were reissued as fully paid up and % 400 has been transferred to capital reserve. The rate at which these shares were reissued is__ (a) @ 11 per share (b) @8 per share (c) 710 per share (d) 29 per share Ans : (d) Share Capital A/c (400 X 10) Dr. 4,000 To Share Forfeiture A/e ( 400 x 3) 1,200 To Calls-in-arrear A/c (400 x 7) 2,800 Bank A/e (200 x 9)* Dr. 1,800 Share Forfeiture A/e (200 X 1) Dr. 200 To Share Capital A/c (200 x 10) 2,000Amount forfeited on 400 shares = 2 1,200 Amount forfeited on 200 shares = ae 1200 500 = 600 () Loss on reissue (Bal. figure) (200) Capital reserve (Given) = 4,00 DIRECTION : Read the following hypothetical situation and answer Q. No. 15 and 16 Ansh and Daksh are partners engaged in the business of running fast food corner, sharing profits equally. Apart from selling at their fast food point. They did home deliveries too. Their initial capital contribution was 1,50,000 and & 1,00,000 respectively. Over the years, they have build a reputation by selling good quality products and maintaining the qualities all these years. During the financial year, their profit was 75,000. Normal rate of return on the business is 20%. Ansh and Daksh decided to calculate the goodwill of the firm for future purposes. 15. What is the capitalised value of business’? (a) & 2.50,000 (b) % 75,000 (c) % 15,000 (a) %3,75,000 Ans: tas _ ___ Average Profits _ 75,000 (a) Capitalised Value = ype eX 100 = BoP? x 100 = 8 3,75,000 16. What is the normal profits of the business? (a) © 2.50,000 (b) 25,000 (c) % 50,000 (a) % 75,000 Ans : Normal Profits - Capital Employed x Setwal Rateot Return, = (1,50,000 + 1,00,000) x 2 = %50,00017. Anil, Sameer and Neeraj were partners in a firm sharing profits and losses in the ratio 5 : 3 : 2. They agreed ssolve their partnership firm on 31 March 2021. Anil was deputed to realise the assets and pay the liabilities. He is entitled to a commission of @ 1,200 for his services. The Balance Sheet of the firm as on this date was: Liabilities Amount Assets Amount ®@ ®@ Capital A/es: Plant and Machinery 30,000 Anil 37,550 Stock 5,500 Sameer 13,450| 51,000 | Investments 15,000 Investment Fluctuation Fund 4,500 | Debtors 7,100 Bills Payable 3,700 Less: Provisions for Bad debts (450) 6,650 Creditors 10,000 | Cash 5,600 Neeraj’s Capital A/c 6,450 69,200 69,200Anil took over investments for 7 12,500. Stock and Debtors realised & 11,500. Plant and machinery were sold to Vimal for % 22,500 for cash. Unrecorded assets realised % 1,500. Realisation Expenses paid amounted % 800. Pass necessary journal entries for the above transactions when all the assets (other than cash) and outsider’s liabilities are transferred to Realisation A/c. Ans : Journal Date Particulars LF. Dr. (®) Anil’s Capital A/c To Realisation A/c (Being investments taken over by Anil) Dr. Cash A/e To Realisation A/c (Being stock, debtors, plant and machinery and unrecorded assets realised) Dr. Realisation A/e To Anil’s Capital A/e To Cash A/c (Being creditors, bills payable and expenses paid) Anil’s Capital A/c Sameer's Capital A/c Neeraj’s Capital A/c To Realisation A/c (Being realisation loss distributed among partners) Dr. Dr. Anil’s Capital A/c Sameer's Capital A/c To Neeraj’s Capital A/c To Cash A/e (Being final payment made to Anil and Sameer) Dr. 12,500 15,700 3,325 1,995 1,330 22,925 11,455 1,200 14,500 7,780 26,600bd 18, X, ¥ and 2 are partners with their fed capitals as 30,00, € 20,000 an & 10,000 respectively: According ‘tw the partnership dowd, they are cutie to stars on eapital 3% pa. Y W ential to a salary of € 800 per mouth, 2 is entitled toa commission of 3% on the profs after charging interest on capital but before ‘harging the saley payable to Y. The at profs forthe year were ® 0,000 dsteibated in the ratio of pital ‘withow providing at of the abuveacutnents. The pie were to be share in the ratio 23:2 Pass the necnary adjuster entry atl show yo working loa Nitin, Kabir and Suraj ate partners sharing profits in the ratio of 3:2 1. Suraj decided to retire and ater Sua] retirement Nita and Kebie deed to share profit a loses inthe vate of 1: 3. At the ie of ‘Sora retirement, the goodwill ofthe frm ix valent 18,00, Pave recesary journal entries for the ‘rnttnt of good, General Reserve 21,00 ned goodwill? 2,00 appear inthe balance sheet on Stas retirement. Journal Date Particles LF] be ® | o®) Xs Garret Ao Dr 55 ‘To Ya Current A/e bats To Zs Curent Ale o (Being the atustment entry pase) Adjustment Table Particulars X@) Y@ z@) ‘Profit wrongly dntebutel to be debited 15001 Dr] _to,pe0 Ds. | 5.000 De Tntert on Capital tobe eodite rsa Ce] 1.000 Gr.| 500 Cr. Salary +800 por mouth =| 9.00 cr - Connon 55 of (0.000 ~ 3,000) - =| 10 ce Profit distro in the ratio 3:3: 2 swasce| _ssiscr.| 3210 Ce 9525 r.[ 15.15 Cr] 8.000 Cr a7 De.| 516 Cr wc oral Date Pantene LE] De® | Kabir Capital Ae Dr 1.35.00 ‘To Surays Capital A/e 0.000 ‘To Nits Capital A/e 5.000 CEng Sr sae of ede itd th etal sccm Nita’ Capital Ae Dr 12000 Kabir Capital A/e Dr 00 Surajs Capital Afe Dr. 000 ‘Ta Goodwill A/o 2400 (Being goodie weiten off) General Reserve A/e De 21.00 ‘To Nitin’ Cepital A/e 1500 To Kabir Capital AJe zo00 ‘To Surajs Capital Afe 300 (Being general ere dntibatl ino rat) [New Ratio ~ OM Ratio p-$a tata SF exten w19. Emkay Industries Limited took over assets of & 16,00,000 and liabilities of 4.00,000 of Marudhar Packaging Limited for a, purchase consideration of & 13,00,000. The company issued 13,000, 8% debentures of @ 100 each at a discount of 4% in favour of Marudhar Packaging Limited and paid the balance amount by cheque for purchase consideration, Pass necessary journal entries for the above transactions in the books of Emkay Industries Limited, Solar Power Energies Limited decided to issue 10,00,000 equity shares of € 10 cach at a premium of 60% to finance the project. Applications were received for 17,00,000 shares. The company rejected 5,00,000 shares and made pro-rata allotment to the remaining applicants. The whole of share money payable on application. Pass necessary journal entries for recording the above transaction. ‘Ans: Journal In the books of Emkay Industries Limited Date Particulars LF] D.@ | ce ® Assets AJe Dr 16,00.000 Goodwill A/e Dr. 1,00,000 To Liabilities A/e 4,00,000 To Marudhar Packaging Limited 13,00,000 (Being assets and liabilities taken over from Marudhar Packaging Limited and balance debited to goodwill) Marudhar Packaging Limited Dr 12,48,000 Discount on Issue of Debentures A/e Dr 52,000 ‘To 8% Debentures A/e 13,00,000 (Being 1300, 8% debentures of 100 each issued at a discount ‘of 4% as purchase consideration) Marudhar Packaging Limited Dr 52,000 ‘To Bank A/e 52,000 (Being the balance of purchase consideration paid by cheque) or Journal In the books of Solar Power Energies Limited Date Particulars Le] Dr @ | or @) Bank A/e Dr 2.72.00,000 ‘To Equity Share Application and Allotment A/e 2,72,00,000 (Being share application money received on 17,00,000 shares © € 16 per share) Equity Share Application and Allotment A/e Dr. 2,72,00,000 ‘To Equity Share Capital A/e 1,00,00,000 To Securities Premium A/e 60,00,000 To Bank A/e 1,12,00,000 (Being share application money received adjusted)20. The average capital employed in a partnership business is € 5,00,000 and the average net profit earned is % 65,000. The normal rate of return on capital empleyed is 8% and employees remmeration of € 20,000 is expected to be payable in the future. Compute the super profit of the firm and also compute the goodwill of the firm at 3 years’ purchase of the super profits. Ans Normal Profit = Capital Employed x Bateof Return = 5, 00,000 % 73> =F 40,000 Adjusted Average Profit = % 65,000 ~ % 20,000 (Renmmeration) 45,000 Super Profit = Average Profit = Normal Profit 45,000 ~ & 40,000 ~ & 5,000 5,000 x 3 =% 15,000 ‘Thus, Goodwill 21, Pass necessary journal entries for issue of debentures for the following: (a) SVF Services Limited issued 1,800, 9% debentures of & 100 each at a discount of 10% redeemable at a premium of 5%. (b) Narayana Technologies Limited issued 20,000, 12% debentures of 10 each at a premium of 20% redeemable at a premium of 10% Ans (a) Journal In the Books of SVF Services Limited Date Particulars LE.| Dr. @) Cr. @) Bank A/e Dr. 1,62,000 ‘To Debenture Application and Allotment A/c 1,62,000 (Being subscription received for 1800, 9% debentures of % 100 each) Debenture Application and Allotment A/e Dr. 162,000, Discount on Issue of Debentures A/c Dr 18,000 Loss on Issue of Debentures A/e Dr. 9,000 ‘To 9% Debentures A/c 1,80,000 ‘To Premium on Redemption of Debentures A/c 9,000 (Being 1800, 9% debentures of % 100 each issued at a discount of 10% redeemable at_a premium of 5%) (b) Journal In the Books of Narayana Technologies Limited Date Particulars LF.| Dr. @) Cr. Bank A/e Dr. 2,40,000 ‘To Debenture Application and Allotment A/c 2,40,000 (Being subscription received for 20,000, 12% debentures of & 100 each)ES AAA SS Capes Saye f Debenture Application and Allotment A/c Loss on Issue of debentures A/c To 12% Debenture A/e To Securities Premium A/c To Premium on Redemption of Debentures A/c BUS Dr. 2,40,000 Dr. 20,000 (Being 20,000, 12% debentures of % 10 each issued at a premium of 20% redeemable at a premium of 10%) 2,00.000 40,000 20.00022. P,Q and R are partners in a firm sharing profits in the ratio 3: 2: 1. Their Balance Sheet as at 31st March 2022 stood at: Liabilities Amount Assots Amount (%) ®) Creditors 2,80,000 | Cash at Bank 145,000 General Reserve 30,000 | Debtors 1,90,000 Workmen Compensation Reserve 60,000 | Stock 1,75,000 Capital A/cs: Investments 2,50,000 P 3,00,000 Buildings 3,10,000 Q 220,000 R 180,000 | _ 700,000 10,70,000 10,70,000 Q died on 30" June 2022 and as per deed his executors are entitled to: (a) Amount standing to the credit of his capital account and interest thereon @ 10% p.a. (b) Share of profits for the intervening period will be based on the sales during that period and average of three year's profits earned in the past. Sales for the period were & 12,00,000. The rate of profit during past three years had been 10% on sales. (c) Share of goodwill and goodwill of the firm is valued at € 4,32,000. Pass necessary journal entries to transfer amount due to Q to his executor. Ans : Journal Date Particulars LF.| Dr.) | Cr. @) General Reserve A/e Dr. 10,000 ‘To Q's Capital A/c 10,000 (Being general reserve credited to Q’s A/c) Workmen Compensation Fund Dr. 20,000 ‘To Q's Capital A/c 20.000 (Being workmen compensation fund credited) Interest on Capital A/c Dr. 5,500 To Q's Capital A/c g 823. Profit and Loss Suspense A/e Dr. 40,000 ‘To Q's Capital A/e 40,000 (Being Q's share of profit credited to his account) P's Capital A/e Dr. 1,08,000 R's Capital A/e Dr. 36,000 ‘To Q's Capital A/e 1.44,000 (Being Q's share of goodwill credited to his account) Q's Capital A/c Dr. 439,500 ‘To Q's Executor's A/e 4,39,500 (Being amount due to Q is transferred to Q's exeeutor’s A/c) Working notes : (a) Q's share of profit till the date of death = 12,00,000 x it % 40,000 (h) Qin ere of goodwill = 4,92,0002 = 1 44,000 This will be contributed by P and R in the ratio 3 : 1 i.e. % 1,08,000 and % 36,000 Alka Polymers Limited invited applications for issuing 1,00,000 equity shares of € 10 each. The shares were issued at a premium of € 20 per share and the amount: was payable as follow On Application and Allotment 714 per share (including premium of % 10) On First call 28 per share (including premium of @ 5) On Final call 8 per share (including premium of € 5) Applications were received for 96,000 shares. A sharcholder holding 7,000 shares paid the full amount along with application and allotment, A Sharcholder Ganesh holding 8,000 shares failed to pay both call money and Vikram holder of 5,000 shares failed to pay final call. The shares on which the dues were not paid were forfeited. Pass the necessary journal entries for the above transactions by opening calls-in-advance and calls-in-arrears account, Advance Technology Limited invited applications for 3,00,000 equity shares of € 100 each. The amount. was payable as follows: On Application % 30 per shure On Allotment 50 per share On First Call % 10 per share On Final Call % 10 per share Applications were received for 6,00,000 shares and pro-rata. allotment was made to the applicants of 5,00,000 shares in the following groups: A. Applicants of 2,00,000 shares were allotted 1,00,000 shares B. Applicants of 3,00,000 shares were allotted 2.00,000 shares ‘The excess amonnt received on application was adjusted towards amount due on allotment. A shareholder holding 6,000 shares out of the group A failed to pay allotment and on his subsequent failure to pay first call his shares were forfeited. Another shareholder who applied for 18,000 shares from group B did not pay the first and final call. These shares were forfeited after final call. Pass the necessary journal entries for the above transactions in the books of Advance Technology Limited. Ans : In the books of Alka Polymers Limited Journal Date Particulars Le.| Dr @) | Cr @ Bank A/c Dr 14,56,000 ‘To Share Application and Allotment A/c 13,44,000To Caleta Ale ey ne pinion 8608 shore 8 eke weiner Te) Ser Anions Alans Ne oe ‘TSize Cpl Ale Te Satie Peni AV eg oles att mete atte) Sar Fi Cal Ae cs “a SuareCapl Ae “TS Premio Ale (ee tee St el te ob 900 sar 8 per ze feng ent) Bak Ale De cabnaians Ae De catnarar Ae De To Sure Firt Cal Ne eg tate el mney ce) Sar Fal Cal Ae cs ‘o Stare Capital Ale Ts Sos Frente (ng sa ald a 6. ar Sah ang rer ‘a Ale De cannes Ae be cata Ae De “oS Pit Ca Ale f Sar Capital Ale sete Pri Ve “oa Free Ae To Cabeinaerain Me (ing 1800 sar biel or arp o he die FF 10 etek Ava Tay ini Sara Dee ak Aye me Sar Aytin Afe (eg te apt me eo 60.0 sae brett Saw Ait Ae rs Ta Sar Capt Ae toa Ale To Shae Ane Ae sagt apt mee ite) San Alkan Ae me ‘ToStaw Cal Ve ig a ey Bank Ne ™ To Sar Atma Af (eg atest seme tail) Sar Fi Cal Ae m To Stan Capital Ae ipa to cy 0 iy ts Ml oO ssnCBSE A To Callwin-advance A/c (Being money received on application and allotment on 96,000 shares @% 14 each along with calls in advance on 7,000 shares) Share Application and Allotment A/e Dr. To Share Capital A/e To Securities Premium A/c (Being application and allotment money adjusted) Share First Call A/e Dr. ‘To Share Capital A/e To Securities Premium A/c (Being share first call due on 96,000 shares @ & 8 per share including a premium of & 5) Bank A/c Dr. Calls-in-advanee A/e Dr. Calls-inearrears A/e Dr. ‘To Share First Call A/c (Being share first call money received) Share Final Call A/e Dr. To Share Capital AJe ‘To Securities Premium A/c (Being share final call due on 96,000 shares @ % 8 each including a premium of 8 5) Bank A/e Dr. Calls-in-ndvance A/e Dr Callseinearrears A/c Dr. To Share First Call A/e (Being share first call money received) Share Capital A/c Dr. Securities Preminn A/e Dr. ‘To Share Forfeiture A/c To Calls-in-arrears A/e (Being 13,000 shares forfeited for non-payment of the due amount) 13.44,000 768,000 648,000 56,000 64,000 768,000 6,08,000 56,000 1,04,000 1,380,000 1,05,000 1,12,000 3,84,000 9,60,000 2,88,000 4,80,000 7,68,000 2,88,000 4,80,000 7,68,000 67,000 1,68,000 In the books of Advance Technology Limited Journal Date Particulars LP. Dr. (®) Cr.) Bank A/c Dr. ‘To Shate Application A/c (Being share application money received on 6,00,000 shares @ % 30 each) 1,80,00,000 1,80,00,000Share Application A/c ‘To Share Capital A/c ‘To Bank A/e ‘To Share Allotment A/e (Being share application money adjusted) Share Allotment A/c To Share Capital A/c (Being share allotment money due on 3,00,000 shares @ & 50 each) Bank A/c To Share Allotment A/e (Being share allotment money received) Share First Call A/c To Share Capital A/c (Being share first call money due on 3,00,000 equity shares @@10 cach) Bank A/c To Share First Call A/e (Being share first call money received) Share Capital A/c To Share Forfeiture A/c ‘To Share Allotment A/c To Share First Call A/e (Being 6,000 shares forfeited for non payment. of share allotment and first call) Dr. Share Final Call A/c ‘To Share Capital A/e (Being share second call due on 2,94,000 shares @ % 10 each) Dr. Bank A/c To Share Final Call A/c (Being share second money received) Share Capital A/c ‘To Share Forfeiture A/e ‘To Share First Call A/c ‘To Share Final Call A/e (Being 12,000 shares forfeited due to nonpayment of first and final call) Dr. 1,80,00,000 1,50,00,000 88,80,000 30,00,000 28.20.00 5,40,000 29,40,000 28,20,000 12,00.000 90,00,000 30,00,000 60,00,000 1,50,00,000 88,80,000 30,00,000 28,20,000 3,60,000 120,000 60,000 29,40,000 28,20,000 9,60,000 1,20,000 1,20,000Working Notes: z 1, Amount due on share allotment 1,50,00,000 Less: Amount already received with application 60,00,000 90,00,000 Less: Amount unpaid by holder of 6,000 shares. Amount due on allotment (6000 x % 50) 3,00,000 Excess of application money paid by him: (6000 x 30) _(1,80,000) 1,20,000 88,80,000 2. Group B, Pro-rata allotment is done in ratio = 3: 2 Shareholder who applied for 18,000 shares is a holder of 18,0003 = 12,000 shares 3. Amount received on shate first call: Amount due on shase first call 330,00,000 Less: Amount not received (18000 x 10) 24, Reena and Meena were partners sharing profits and losses in the ratio of 5:3. Their Balance Sheet as at 31 March, 2019 was as under: Liabilities Amount @) Assets Amount @) Bills Payable 22,000 | Cash in hand 12,000 Creditors 45,000 | Cash at Bank 83,000 Workmen Compensation Fund 40,000 | Debtors 82,000 General Reserve 70,000 | Stock 66.000 Profit and Loss Account 20,000 | Investments 60.000 Capital Account: Furniture 75.000 Reena 320,000 | Machinery 2,25,000 Mecna 1,90,000 | Goodwill 1,04,000 707,000 7,07,000 On 1* April, 2019 they admitted Teena into the partnership firm for 1/4th share which she acquired from Reena and Meena in the ratio of 2:1 respectively. Other adjustments were as follows (3) The Goodwill of the firm is valued at % 96,000 and Teena was unable to contribute her share of goodwill in cash. (ii) One customer who owed the firm & 2,000 became insolvent and nothing could be realised from him, (Gli) Create a provision of 5% for Doubtful Debts. (iv) 50% of the Investments were taken over by the old partners in their profit sharing ratio, Remaining Investments were valued at 2 35,000. (v) Claim on Workinen Compensation was established at © 16,000. (vi) One month salary of € 16,000 was outstanding. (vii) Teena is to contribute % 1,20,000 as capital. (viii) Capital accounts of the partners are to be re-adjusted on the basis of their profit sharing arrangement and any excess or deficiency is to be transferred to their Current Account. Prepare Revaluation A/c, Partners’ Capital Accounts and the Balance Shect of the newly constituted firm. or Anjali, Sneha and Radha are partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet asLiabilities Amount (2) Assets Amount (®) Creditors 20,000 | Cash in hand 22,000 Bills Payable 10,000 | Debtors 25,000 General Reserve 22,000 | Less : Provision for doubtful debts (3,000) 22,000, Captial A/e: Stock 18,000 Anjali 70,000 | Investinents 30,000 Sneha 50,000 | Furniture 20,000, Radha 40,000 | Machinery 70,000 Goodwill 30,000 212,000 2,12,000 On the above date Sneha retired and the terms of retirement were: (i) Sneha sells her share of goodwill to Anjali for % 4,000 and to Radha ® 2,000. i) Stock to be appreciated by 20%. (iii) Provision for doubtful debts to be increased by 525. (iv) There is a liability for workinen’s compensation for & 1,500 and it was to be provided for. (v)_ Investments were sold at a loss of 10%. (vi) Provision for a bill under discount of & 2,000 was to be made, (vii) The continning partners agreed to pay % 20,000 in ensh on retirement to Sneha to be contributed in ‘their new profit sharing ratio. The balance to he treated as Loan. (viii) The total capital of the new firm is decided to be & 1,50,000. Necessary adjustments to be made by opening Current Accounts. Prepare Revaluation A/c, Partners’ Capital Accounts and Balance Sheet of the new firm after Sneha’s retirement. Ans : Dr. Revaluation A/e Cr. Particulars Amount Particulars Amount ® ® To Bad Debts A/e 2,000 | By Investments A/e 5,000 To Provision on Debtors A/c 4,000 | By Loss transferred to : To Outstanding Salary A/c 16,000] Reena 10.625 Mocna 6.375] 17,000 22,000 22,000 Dr. Partners’ Capital A/es Cr. Particulars Reena | Meena | ‘Teena Particulars Reena | Mecna | Teena ®@ @ ®) @) @ @ To Revaluation Afe | 10625] 6,375 ~ | By Balance b/d 3,20,000 | 1,90,000 - To Investments Afe | 18,750) 11,250 ~| By Bank A/e - =| 1.20.00 To Goodwill A/e 65,000 | 39,000 =| By Teena’s Current | 16,000) 8,000 7 Ale To Current A/e 92875] 44,125 — | By Reserve A/e 43,750 | 26.250 - To Balance o/d 2,20,000 | 140,000 | 1,20,000 | By Workmen Compensation Fund A/e 15,000 - By Profit & Loss A/e| 12,500 - 4,07,250 | 2,40,750 | 1,20,000 4,07.250 1,20,000CBSE Accountancy Class 12 Sample Paper 11 Solution Balance Sheet of the new firm Liabilities Amount Assets Amount ®@ ®& Bills Payable 22,000 | Cash 12,000 Creditors 45,000 | Bank 2.03,000 Salary outstanding 16,000 | Debtors ‘80,000 Workmen Compensation 16,000] Less: Provision for doubtful (4,000)| 76,000 claim debts Current Account: Stock 66,000 Reena 92,875 Investinents 35,000 Meena 44,125 | 1,37,000 | Furniture 75,000 Capital Account: Machinery 2.25,000 Reena 2,20,000 ‘Teena’s Current: A/e 24,000 Meena 1,40,000 ‘Teena 1,20,000 | 4,80,000 7.16,000 7.16,000 Working notes: 1. Goodwill of the firm = € 96.000 ‘Teena’s share of goodwill = 1/4 of 96,000 = & 24.000 2. Bank balance: 83,000 + 1,20.000 = & 203,000 3. Adjustinent of Capital ‘Tocna Capital for 1/4 share = & 1.20,000 Total Capital of the new firm = % 4,80,000 New ratio: Reena's old share 5/8 Reena's sacrifice 2/3 of 1/4 = 2/12 Reena's new share = 5/8 ~ 2/12 = 11/24 Mecna’s old share 3/8 Mecna’s sacrifice 1/3 of 1/4 = 1/12 Meena’s new share = 3/8 - 1/12 = 7/24 Teena’s share = 6/24 New Ratio = 11: 7:6 Reena’s Capital = 11/24 X 4,80,000 = % 2,20,000 Meena’s Capital = 7/24 4,80,000 = 1,40,000 Dr. Revaluation A/c Cr. Particulars Amount Particulars Amount ®) ® To Provision for debtors 525 | By Stock 3.600 To Workmen Compensation Claim 1,500 | By Loss transferred to: To Loss on sale of Investment 3,000] Anjali's Capital A/c 1,713 To Provision for Bills discounted 2,000] Sneha's Capital A/c 1,027 Raulha’s Capital A/e 635 7.025 7.025 Ce a agp ee25. Dr, Partners’ Capital A/es Cr, Particulars Anjali | Sneha | Radha Particulars Anjali | Sneha | Radha ®@ ® ® ®& ® ®) To Goodwill A/c 15,000} 9,000] 6,000 | By Balance b/d 70,000 50.000] 40,000 To Sneha's Capital! 4,000 —| 2,000 | By General Reserve | 11,000] 6.600} 4.400 Ale To Revaluation A/e| 1,713] 1,027 685 | By Anjali/s Capital —| 4.000 _ (Loss) (Goodwill) To Cash A/e —]} 20,000 —| By Radha’s Capital —| 2.000 _ (Goodwill) To Sneha's Loan A/e —| 32.573 — | By Cash A/e 14,000 —| 6.000 To Balance e/d 1,085,000 —|__ 45,000 | By Current A/e 30,713 =| 3.285 125,713] 62.600] 53.685 1,25,713| 62.600] 53.685 Balanco Sheet of the new firm Liabilities Amount Assets Amount ® & Creditors 20,000 | Cash at hand (22,000 + 27,000) 49,000 Bills Payable 10,000 | Debtors 25,000 Workmen Compensation 1,500] Less: Provision for doubtful debts (8.525)| 21.475 claim | Provision for bill discounted 2,000 | Stock 21,600 Sneha’s Loan A/e 32,578 | Furniture 20,000 Capital A/c Machinery 70,000 Anjali 1,05,000 Anjali’s Current A/c 30,713 Radha 45,000 1,50,000 | Radha’s Current A/e 3,285 216,073 216,073 Working Notes: Calculation of New Ratio: Gaining Ratio = 4000 : 2000 or 2:1 Anjali’s new share = 5/10 + 2/1 Radha’s new share = 2/10 + 1/10 = 3/10 New Ratio of Anjali and Radha is 7: 3. Capital of the firm = & 1,50,000 Anjali’s Capital 7/10 of 1,50,000 = & 1,05,000 Radha’s Capital 3/10 of 1,50,000 = & 45,000 Ronak, Arpit and Madhav are partners in a firm with capital contributions of 50,000, % 40,000 and & 30,000 respectively, Their partnership agreement provides for the following: (i) Interest on capitals to be allowed @10% p.a. (ii) Interest on drawings to be charged @10% p.a, (iii) Arpit and Madhav are each to be paid salaries (@ % 500 per month, (iv) Ronak is to be paid a commission of 5% of the net profit. (x) The remaining profits are to he divided as follows: 40% to Ronak. 30% to Arpit, 20% to Madhav and 10% carried to a Reserve Account. The net profit for the year ended 31.03.2022 was & 50,000. Ronak withdrew & 1,000 per month at the beginning of each month. Arpit withdrew % 1,000 per month in the middle of each month and Madhav withdrew % 1,000 per month at the end of each month, You are required to prepare the Profit & Loss Appropriation Account for the year ended 31.03.2022 only, Ans:CBSE Accountancy ( 2 San aper 11 Solutions Page Profit and Loss Appropriation A/e for the year ended 3ist March, 2022 Particulars Amount Particulars Amount & & To Interest on Capital @ 10% p. By Net Profit as per Profit 50,000 and Loss A/e Ronak 5,000 By Interest on Drawings A/e: Arpit 4,000 Ronak 650 Madhav 3,000] 12,000] Arpit 600 To Salary A/c: Madhav 550] 1,800 Azpit 6,000 Madhav 6,000] 12,000 ‘To Commission (Ronak) 2,500 ‘To Profit transferred to: Reserve (10% of 25,300) 2,530 Ronak’s Capital A/e (40% of 25,300) 10,120 Arpit’s Capital A/c (80% of 25,300) 7,90 ‘Madhav’s Capital A/c (20% of 25,300) 5,060] 25.300 51,800 51,800 On 1 April, 2021, Wadia Industries Limited issued 40,000, 8% Debentures of 8 50 each at a discount of 6% redeemable at par after 4 year. The issue was fully subscribed. According to the term of issue, interest on the debentures is payable yearly on 31* March. ‘The company has a balance of 8 80,000 in Securities Premium Reserve Account. On L 1 I r V. To write off the basis of the above information, answer the following questions: What entry is passed for interest due on Debentures for the year ending 31st March 2022? (a) Dr. Debentureholders’ A/c; Cr. Debenture Interest & 1,60,000 (b) Dr. Debenture Interest A/c: Cr. Debenturcholders’ A/e & 1,60,000 (c) Dr. Debenture Interest A/c; Cr. Debenture A/c ® 1,60,000 (A) Dr. Debenture A/e: Cr. Debentureholders’ A/c & 1,60,000 1. The entry passed for payment of interest on Debentures is (a) Dr. Debentureholders’ A/c; Cr. Debenture A/c & 1,60,000 (b) Dr. Debenture A/e: Cr. Bank A/c & 1,60,000 (c) Dr. Debenturcholders’ A/c; Cr. Debenture Interest A /e & 1,60,000 (A) Dr. Debentureholders’ A/e; Cr. Bank A/e 8 1,60,000 II. What entry is passed for transferring debentures interest? (a) Dr. Securities Premium Reserve A/e; Cr. Debenture Interest A/e € 1,60,000 (b) Dr. Statement of Profit and Loss: Gr. Dehenture Interest A/c 1,60,000 (c) Dr. Debenture Interest A/c; Cr. Statement of Profit and Loss & 1,60,000 (q) Dr. Profit and Loss Appropriation A/c; Cr. Debenture Interest A/c & 1,00,000 V. While preparing Discount on ismie of Debenture A/c ________ amount will be debited. (a) % 40,000 (b) % 2,40,000 (c) % 80.000 (a) % 1,20,000 iscount on issue of debentures through Securities Premium Reserve A/e, following entry is passed. (@) Dr. Statement of Profit and Loss; Cr. Discount on Isue of Debenture A/e (b)) Dr. Securities Premium Reserve A/e: Cr. Discount on Issue of Debenture A/e (c) Dr. Discount on Issue of Debenture A/c; Cr. Securities Premium Reserve A/c (a) Dr. Discount on Issue of Debenture A/c; Cr. Statement of Profit and LossVI. The remaining amount of Discount on Issue of Debentures (®40,000) will be written off through (a) Debenture Redemption Reserve A/c (b) Statement of Profit and Loss (c) Capital Reserve (A) Profit on Sale of fixed Assets Ans I. (b) Dr. Debenture Interest A/c; Or. Debenturcholders’ A/e € 1,60,000 I. (a) Dr. Debentureholders’ A/c; Cr. Bank A/c % 1,60,000 IIL (b) Dr. Statement of Profit and Loss; Cr. Debenture Interest A/e & 1,60,000 IV. (a) & 1,20,000 V. (b) Dr. Securities Premium Reserve A/c; Cr. Discount on Issue of Debenture A/e VI. (b) Statement of Profit and Loss PART—B Analysis of Financial Statements ignored while preparing a eash flow statement because (a) cash is not involved in non-cash transactions (b) it shows flow of cash and cash equivalents (c) Both (a) and (b) (A) None of the above Provision for tax is________to not profit in operating activities. (a) deducted (b) added (c) no treatment (a) None of these Ans: (c) Both (a) and (b) (b) Provision for tax is identified and classified as operating activity and it is added to net profit. 28, Match the following activities of a mamufacturing concern as under cash flow statement: Purchase of software ()_| Operating Activities Payment of interest on debentures Q) otra (3)_[ Investing Activities (b) (33, (4-2, (ii)=L (A) (1, (2, (ii)-3 Ans (b) (3-3, (i)-2, (iii)-L 29, Which of the following transactions will improve the quick ratio? (a) Cash collected from debtors & 15,000 (b) Sale of goods (costing ® 10,000) for & 30,000 (c) Purchase of inventory for eash amounted to % 20,000 (A) None of the above Calculate revenue from operations, if sales are 1,04,00,000; sales return is & 4,00,000; sale of scrap for % 50,000; dividend received & 20,000 and interest on fixed deposit amounted to & 60,000. (a) & 1,00,80,000 (b) %1,00,50,000 (c) & 1,00,00,000 (a) %1,01.30,000Ans (b) Sale of goods (costing & 10,000) for & 30,000 (b) Revenue from Operations = 1,014,00,000 - (4,00,000) + 50,000 (sale of scrap) = € 1,00,50,000 30. A company reported the following information for the past year Net profit & 22,00.000 Depreciation expenses 30,000 Gain on sale of truck 5,000 Proceeds from sale of truck 78,000 Deerease in accounts receivable 10,000 What amount will the company report as the cash provided by operating activities in the cash flow statement? (a) % 2,30,000 (b) % 2,20,000 (c) % 2,35,000 (a) % 2,25,000 Ans: (c) Cash Flow from Operating Activities Amt @) Net profit 2,00,000 (+) Depreciation expenses 30,000 (A) Gain on sale of truck (5,000) 25,000 (4) Decrease in accounts re 31. Under which major headings and subheadings will the following items be shown in the Balance Sheet of a company as per Schedule III Part I of the Companies Act 2013? (a) Capital Reserve () Calls-in-arrears (c) Accrued incomes (d) Calls-in-advanee (e). Trade Marks (8) Provision for Tax Ans Particulars Major head Subhead (a) Capital Reserve Shareholders’ Fund Reserves and Surplus (>) Callsein-arrears Share Capital Subscribed but not fully paid up (c) Accrued Income Current Assets Other Current Assets (id) Calls-in-advanee Current Lia Other Current Liabilities (c) ‘Trade Marks Non-Current Assets Intangible Assets (f)__ Provision for Tax: Current Liabilities Short-term Provisions 82. (n) Distinguish between Intra-firm Analysis and Inter-firm Analysis. (b) From the following information, determine opening inventory and closing inventory: Inventory Turnover Ratio = 5 times Revenue from operations = & 29,25,000 Gross Profit on cost = 30% Closing Stock = & 40,000 more than the opening inventory or (a) Bright International Limited has Current Liabilities of € 90,000. After purchasing stock-in-trade of & 10,000 on credit, its current ratio become 2 : 1. Determine the size of current assets and working capital after and before the acquisition of inventories. (b) Interpret a too high Trade Receivable Turnover ratio,Ans 3 (a) Short-term Provision - Provision for Employees Benefits, Provision for Tax (b) Other Current Liabilities - Unpaid Dividends, Current Maturities of long-term debts (c) Other Long-term Liabilities - Premium payable on Redemption of Debentures, Premium payable on Redemption of Preference Shares (A) Long-term Provision - Provision for employee benefits, or Cost of Revenue from operations = Opening inventory + Purchases + Carriage inwards = Closing inventory = 228.000 + % 40,000 + % 4,000 — F 22,000 = % 50,000 Cost of Revenue from Operations Average inventory — 50,000 = 35,000 ~ = 2 times Inventory Turnover Ratio = Cost of Revenue from Operations + Operating Expenses Revenue from Operations _ 50,000+ 4,000 + 2,000 o = a0 000 2100 = 70% Operating Ratio = * 100Ans : (a) Intracfirm Analysis is comparison of financial statement of an enterprise for two or more accounting periods, whereas, Inter-firm Analysis is a comparison of financial staten for the same accounting period. (b) Revenue from operations = & 29,25,000 and Gross Profit on cost is 30% (given) Let cost be 100% then GP = 30% Revenue from operations is 130% If Revenue from operation 130% is 29,25,000 s of two or more enterprises Cost of Revenue from operations = 2%25:000 x 199 = ¥22,50,000 Inventory Turnover Ratio = ott of Reve frm Operations 22,50,000 ‘ ‘Average Inventory 4.50.00 Average Inventory Let Opening Inventory be « *. Closing inventory will be « + 40,000 Stet 10.000 56.000 22+ 40,000 = 9,00,000 SSM 4 9,90 Opening inventory = % 4.30,000 Closing inventory = & 4,70,000 (a) Let current assets after acquisition of inventories be 2 Current Assets Current Ratio Current Liabilities ° = a0,o00-+ 10,000 2» = 22,000,000 Working capi al after acquisition = & 2,00,000 ~ & 1,00,000 = ® 1,00,000 Current assets before acquisition of inventories = & 2,00,000 ~ 10,000 = %1,90,000 ion = & 1,90,000 ~ & 90,000 % 1,00,000 (b) A ‘too high trade receivable tumover ratio’ shows efficient collection policy of the concern and working capital, unnecessarily being tied up in trade receivables. Working capital before acqui List two items each which are recorded under the the Companies Act, 2013. (a) Short-term Provisions (b) Other Current Liabilities (©) Other Long-term Liabilities (a) Long-term prov owing head the Balanee Sheet as per Schedule TI of or From the details given below, calculate Inventory Tumover Ratio and Operating Ratio: ® Opening Inventory 28,000 Closing Inventory 22,000 Purchases 40,000 Revenue from Operations 80,000 Carriage Inwards 4,000 Employees’ Benefit Expenses 4,000 Depreciation 2,00034. From the following Balance Sheet of Dhanuka Industries Limited as at 31.03.2022 and 31.03.2021, prepare a Cash Flow Statement. Particulars Note | 31 March 2022 | 31 March 2021 No. [®) ® I. EQUITY AND LIABILITIES 1, Shareholder’s Funds : (a) Share Capital 6,50,000 5,00,000 (b) Reserves and Surplus 1 1,70,000 80,000 2. Non-Current Liabilities: (a) Long-term Borrowing 2 4,50,000 3,00,000 3. Current Liabilities: (a) Trade Payables 1,00,000 1,20,000 (b) Short-term Provisions 3 2,20,000 1,80,000 Total 15,90,000 11,80,000 II. ASSETS 1, Non-current Assets: Property, Plant and Equipments and Intangible Assets: (i) Property, Plant and Equipments: Tangible Assets 5.45,000 3,75,000 (ii) Intangible Assets: Patents 2,20,000 1,80,000 2. Non-current Investments 5,00,000 4,00,000 3. Current Assets: (a) Current Investments 30,000 60.000 (b) Trade Receivables 60,000 40,000 (c) Inventories 65,000 25,000 (d) Cash & Cash Equivalents 1,70,000 1,00,000 Total 15,90,000 11,80,000Notes to Accounts: Particulars 1. Reserves and Surplus: Surplus in Statement of Profit and Loss 2. Long-term Borrowings: 6% Debentures 3. Short-term Provisions: Provision for Tax 31% March 2022 (8) |31* March 2021 (®) 1,70,000 80,000 1,70,000 80,000 450,000 3,00,000 450,000 3,00,000 2,20,000 180,000 2,20,000 180,000 Additional Information: (a) During the year, equipment costing % 5,00,000 was purchased. Loss on sale of equipment amounted to ® 60,000. Depreciation charged on thei was & 90,000. (b) Patents purchased during the year for & 90,000. (c) Proposed Dividend as on 31* March 2021 and 2022 amounted to % 26,000 and % 30,000 respectively. Ans: Dhanuka Industries Limited Cash Flow Statement for the year ended 31“ March, 2022 Sr. No. Particulars Amount | Amount ® ® A. | Cash flow from Operating Activities: Net Profit before Tax and Extraordinary items (WN1) 3,30,000 ‘Add: Depreciation of Equipments 90,000 Amortisation of Patents 50,000 Interest on Debentures 18,000 Loss on Sale of Equipments 60,000 Operating Profit before working capital changes 554,000 Less : Increase in ‘Trade Receivables (20,000) Increase in Inventories (40,000) Decrease in ‘Trarle Payables (20,000) Cash flows from operations 4,74,000 Less : Tax Paid (1.80,000) ‘Net Cash Flow from operating activities 2,94,000 | 2,094,000 B, | Cash flow from Investing Activities: Purchase of Patents (90,000) Purchase of Equipment (5,00,000) Sale of Equipment 1,80,000 Purchase of Non-current Investment (1.00,000) ‘Net Cash used in investing activities (5.10,000) | (5.10,000) C. | Cash Flow from Financing Activities: Issue of Share Capital 1,50,000Issue of Debentures Proposed Dividend paid Interest on Debentures paid Net Cash flow from financing activ D. | Net increase in Cash and Cash Equivalent (A + B + C) E. | Add: Opening Cash and Cash Equivalents (1,00,000 + 60,000) F. _ | Closing Cash and Cash Equivalents (1,70,000 + 30,000) ies 1,50,000 (26,000) (18,000) 2,56,000| — 2,56,000 40,000 1,60,000 2,00,000 Working Notes : 1. Calculation of Net Profit before Tax and Extraordinary Items: Particulars Amount (2) Surplus as per Statement of Profit and Loss 90,000 Add: Provision for Tax 2,20,000 Proposed dividend 26,000 Net Profit before Tax and Extraordinary Items 3,36,000 2. Dr. Patent A/c Cr. Particulars Amount Particulars Amount 9) @ To Balance b/d 1,80,000 | By Statement of Profit and Loss (Amortisation) 50,000 To Bank A/c 90,000 | By Balance e/d 2,20,000 2,70.000 2,70,000 3. Dr. Equipment A/c Cr. Particulars Amount Particulars Amount ®) ®@ To Balance b/d 3,75,000 | By Statement of Profit and Loss (Depreciation) || 90,000 To Bank A/c 5,00,000 | By Bank A/c (Balance fig.) 1,80,000 By Statement of Profit and Loss (Loss on sale) | 60,000 By Balance ¢/d 545,000 8,75,000 8,75,000 cooooco