Q1. PQ Ltd. invited applications for 1,00,000 equity shares of ₹10 each .

The amount was payable as

follows:
On Application ₹3 per share.
On Allotment ₹4 per share.
On First and Final call ₹3 share.
Applications for 1,40,000 shares were received and pro-rata allotment was made as follows :
Applicants for 60,000 shares were allotted 30,000 shares on pro-rata basis.
Applicants for 80,000 shares were allotted 70,000 shares on pro-rata basis.
Raman to whom 1,000 shares were allotted out of group applying for 60,000 shares failed to pay
allotment money. His shares were forfeited immediately after allotment. Teena who applied for
1,600 shares out of group applying for 80,000 shares failed to pay the first and final call. Her
shares were also forfeited . Calculate the amount received on first and final call .
(a) ₹2,92,800
(b) ₹2,97,000
(c) ₹2,95,800
(d) ₹2,92,200
Q2. Mahesh Limited purchased a running business from Usha traders for a sum of ₹15,00,000
,payable ₹3,00,000 by cheque and for the balance issued 9% debentures of ₹100 each at par. The
assets and liabilities consisted of the following: Plant and Machinery ₹4, 00,000 Building
₹6, 00,000 Stock ₹5,00,000 Debtors ₹3, 00,000 Creditors ₹2,00,000.Calculate the amount of
capital reserve
a) ₹2,00,000
b) ₹1,00,000
c) ₹1,50,000
d) None of these
Q3. Savy and Mark are partners sharing profit in the ratio 3:1. On 31st March 2021, firm’s net
profit is ₹1,25,000. The partnership deed provided interest on capital to Savy and Mark ₹ 15,000
& ₹ 10,000 respectively and Interest on drawings for the year amounted to ₹ 6,000 from Savy and
₹ 4,000 from Mark. Savy is also entitled to commission @10% on net divisible profits. Calculate
profit to be transferred to Partners Capital A/c’s.
(a) ₹ 1,00,000
(b) ₹ 1,10,000
(c) ₹ 1,07,000
(d) ₹ 90,000
Q4. Udit Ltd. issued 20,000 shares of ₹10 each at a premium of 5%. The amount was payable as
follows:
₹2.50 per share on application
₹4.00 per share on allotment
₹4.00 per share on first and final call (including premium)
Applications were received for 45,000 shares. Allotment was made as follows :
List A : Applications for 5,000 shares were allotted in full .
List B : Applications for 10,000 shares were allotted 5,000 shares on pro-rata basis.
List C: Applications for 30,000 shares were allotted 10,000 shares on pro-rata basis.
Application money in excess of that required on allotment could be utilised for calls.
All the shareholders paid the amounts due on allotment and first and final call, except Mr. N (
who was allotted 300 shares under List-B) and Mr. K(who was allotted 300 shares ). Both of
these shareholders paid only the application money. Calculate the amount received on
allotment.
(a) 31,940
(b) 27,050
(c) 29,550
(d) 27,450
Q5. Following is the receipts and payments account of Sears Club, Noida as on 31st March, 2020.
Answer the question given below on the basis of given Receipt and Payments Account.

Additional Information
(a) The club has 200 members each paying an annual subscription of ₹ 1,000. ₹ 60,000 were
in arrears for last year and 25 members paid in advance in the last year for the current year.
(b) Stock of stationery on 1st April, 2019 was ₹ 3,000 and 31st March, 2020 was ₹ 4,000.
The total annual subscription of the firm will be
(a) ₹ 25,000
(b) ₹ 2,00,000
(c) ₹ 50,000
(d) ₹ 1,00,000
Q6.

(a) ₹26,90,000
(b) ₹27,90,000
(c) ₹27,10,000
(d) ₹28,50,000

Q7. Alpha, Beta and Gamma are partners sharing profits in the ratio of 3:2:1. Beta retired from the
firm. On that date, the balance sheet of the firm was as follows

Additional Information
(a) Premises to be appreciated by 20%, stock to be depreciated by 10% and provision for
doubtful debts was to be maintained @ 5% on debtors. Further, provision for legal damages
is to be increased by ₹ 1,200 and furniture to be brought upto ₹ 45,000.
(b) Goodwill of the firm is valued at ₹ 42,000.
(c) ₹ 26,000 from Beta’s capital account be transferred to his loan account and balance to be
paid through bank; if required, necessary loan may be obtained from bank.
 (d) New profit sharing ratio of Alpha and Gamma is decided to be 5:1.

What is the value of Beta’s share of goodwill?

(a) ₹ 7,000

(b) ₹ 14,000

(c) ₹ 21,000

(d) Cannot be determined from the given data

Q8. Directions : Read the following hypothetical extract of PQR Ltd. and answer the question on the
basis of the same.

What is Gross profit ratio of PQR Ltd.?

(a) -29.52%
(b) 29.52%
(c) 30%
(d) -30%
Q9. Under which heading the item ‘Bills discounted but not yet matured’ will
be shown in the Balance Sheet of a company?

a) Current liability
b) Current Assets
c) Contingent Liabilities
d) Unamortized Expenditure

Q10. There are two statements marked as Assertion (A) and Reason (R). Read the statements and
choose the appropriate option from the options given below.
Assertion (A) Retirement of a partner results into a reconstitution of the firm.
Reason (R) In retirement, old partnership agreement discontinues and new partnership
agreement come into existence.

(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).
(c) Assertion (A) is true, but Reason (R) is false.
(d) Assertion (A) is false, but Reason (R) is true.

Solutions
S1. Ans. (a)
S2. Ans. (b)
S3. Ans. (a)
S4. Ans. (b)
S5. Ans. (b)
S6. Ans. (a)
S7. Ans. (b)
S8. Ans. (a)
S9. Ans. (c)
S10. Ans. (a)