12 Accountancy sp10

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Class 12 - Accountancy
Sample Paper - 10 (2022-23)
Maximum Marks: 80
Time Allowed: : 3 hours
General Instructions:
1. This question paper contains 34 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A and B.
3. Part - A is compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. Students must
attempt only one of the given options.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21 ,22 and 33 carries 4 marks each
8. Questions from 23 to 26 and 34 carries 6 marks each
9. There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2 questions of three
marks, 1 question of four marks and 2 questions of six marks.
Part A:- Accounting for Partnership Firms and Companies

1. Calculate interest on drawings, if owner withdrew the following amounts as follows Jan.31 Rs. 6,000, Mar.31 Rs.4,000,
July 1 Rs.8,000, Sep. 30 Rs.3,000, 1 Nov, Rs.5,000. Accounts are closed on 31st December every year and rate of
interest on drawings is 10% p.a.
a) ₹1,418.33
b) ₹1,408.33
c) ₹1,418.93
d) ₹1,408.93
2. Assertion (A): Profit or loss on revaluation of assets and reassessment of liabilities is transferred to the old
partners' Capital account/Current account in old profit sharing ratio.
Reason (R): All the accumulated profits or losses and reserves are transferred to old partners’ capital account/current
account in the old profit sharing ratio.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.

3. When Goodwill is not purchased, Goodwill can
a) not be accounted in the books
b) be accounted as per the agreement of the partners
c) be partially accounted in the books
d) be accounted in the books
OR
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Goodwill is valued
a) at the time of change in profit-sharing ratio
b) at the time of retirement or death of a partner
c) at the time of admission of a partner
d) All of these
4. T Ltd. Purchased a machine from L Co. for ₹60,000. It was decided to pay ₹5,000 in cash and balance will be paid by
the issue of shares of ₹10 each. Pass journal entries if shares Issued at a premium of 10%
a) T Ltd ... Dr. ... 55,000
To Share Capital A/c ... 45,000
To Securities Premium A/c ... 10,000
b) L Co. (Vendor) ... Dr. ... 55,000
c) L Co. (Vendor) ... Dr. ... 54,000
d) No Entry will be recorded for this transaction
OR
20,000 shares issued for public subscription having face value Rs.10 at a premium of 10%. The full amount was payable
on application. Applications were received for 30,000 shares and pro-rata allotment was made. Find the amount to be
recorded in Share Capital Account?
a) 3,30,000
b) 2,00,000
c) 1,10,000
d) 3,00,000
5. Which of the following statement is/are correct?
A. Interest on debentures is paid before paying any dividend
B. Debentures cannot be issued as ‘Collateral Security’
C. Debentures can be issued in cash only
D. Debentures are shown under head Shareholders fund under balance sheet
a) (B)
b) (C)
c) (D)
d) (A)
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6. A and B share profits and losses in the ratio of 5:2. They have decided to dissolve the firm. Assets and external liabilities
have been transferred to Realisation A/c. It is found that an unrecorded Computer was realized ₹7,000. How would you
record it?
a)
Bank A/c Dr. 7,000
To Realisation A/c 7,000
b)

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Computer A/c Dr. 7,000
c)
Bank A/c Dr. 7,000
To Computer A/c 7,000

d)
Bank A/c Dr. 700
To Capital A/c 700
OR
There was an unrecorded liability regarding creditors of ₹5,000. The actual amount was decided to settle this liability
was ₹3,100. Mohan (one partner) is ready to pay that liability. The entry will be:
a)
Realisation A/c Dr. 1,900
To Mohan’s Capital A/c 1,900
b)
c)
d) No Entry
7. X Limited forfeited 1,000 shares of 10 each for the non-payment of the final call of Rs.2 per share. These shares were
reissued @ Rs.8 per share fully paid up. Find out the amount of capital reserve.
a) Capital Reserve ₹4,000
b) Capital Reserve ₹6,000
c) Capital Reserve ₹8,000
d) Capital Reserve ₹10,000

8. Vinod Limited issued 12%, 1,000 Debentures @ 100 each at a premium of 10%. What will be the first journal entry?
a) 12% Debentures A/c ... Dr. 1,10,000
To Debentures App. & Allot. A/c 1,10,000
b) Bank A/c ... Dr. 1,10,000
To Securities premium 10,000
c) Bank A/c ... Dr. 1,10,000
To 12% Debentures App. & Allot. A/c 1,10,000
(Being Application money received)
d) Bank A/c ... Dr. 1,00,000
OR
Sofia Ltd. issued 4000 8% Debentures of ₹100 each payable as Follows ₹20 on Application ₹30 on Allotment ₹50 on
First and Final call All the debentures calls were applied for and allotted. All the calls were duly Received. By what

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amount Allotment money will be due?
a) ₹120000
b) ₹200000
c) ₹250000
d) ₹100000
Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:
A, B and C are partners sharing profit and losses in the ratio 3:2:1. From 1st April 2018, A, B and C decided to share profit and losses
equally. This may result in the gain to a few partners and loss to other.
9. From 1st April 2018, A, B and C decided to share profit and losses equally. It is a:
a) None of these
b) Reconstitution of the firm
c) Dissolution of the firm
d) Revaluation of the firm

10. As there is a change in profit sharing ratio. Which of the following is calculated?
a) Both sacrificing ratio and gaining ratio
b) None of these
c) Sacrificing ratio
d) Gaining ratio
11. Vinod Limited offered 20,000 debentures @ 100 each at a premium of 10%. The issue was oversubscribed by 3 times.
The company made full allotment to 4,000 applicants and pro-rata allotment made to the 36,000 applicants and
remaining applications are rejected. How much amount is to be refunded by the company?
a) 22,00,000
b) 33,00,000
c) 44,00,000
d) 18,00,000
12. Vivek and Vishal are partners with a capital of ₹26000 and ₹22000 respectively. They admit David as a partner for 1
share in the profits of the firm. David brings ₹30,000 (including 4,000 premium for goodwill) as his share of capital and
premium. Journal entry for capital amount brought by a new partner
a)
Bank A/c ... Dr. 34,000
To Vivek's Capital A/c 34,000
b)
Bank A/c ... Dr. 22,000
To Goodwill A/c 22,000
c)
Bank A/c ... Dr. 26,000
To David’s Capital A/c 26,000
d)
Bank A/c ... Dr. 30,000
13. Accounting Standard ________ requires goodwill should be recorded in the books of accounts only when some money
or money’s worth is paid for it.
a) 27
b) 10

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c) 26
d) 23
14. A, B and C are partners. They admit D and guarantee that his share of profit will not be less than Rs. 20,000. Profits to
be shared 4:3:3:2 respectively. Total profits were Rs. 96,000. It was agreed that the deficiency amount (if any) payable to
D over his share will be borne by A, B and C in the ratio of 3:2:1. Calculate the share of profit for each partner.
a) A= ₹33,000, B= ₹23,337, C= ₹23,333 and D= ₹40,000
b) A=₹30,000, B= ₹23,667, C= ₹23,333 and D= ₹30,000
c) A= ₹30,000, B= ₹22,667, C= ₹23,333 and D= ₹10,000
d) A= ₹30,000, B= ₹22,667, C= ₹23,333 and D= ₹20,000

15. If Preliminary expenses are given on the Asset side of the Balance sheet. What treatment will be done?
a) Debited to all partners in equal ratio
b) Debited to old partners in gaining ratio
c) Debited to all partners capital A/c in the old ratio
d) Credited to all partners capital account
OR
When will partner’s Capital Account be debited:
a) Share of goodwill
b) Loss on Revaluation
c) General Reserve
d) Profit on Revaluation
16. When the value of goodwill is not given at the time of admission of a new partner, it is inferred from the capital of the
new firm and profit-sharing ratio. This concept is called ________.
a) Purchased Goodwill
b) Premium for Goodwill
c) Average Goodwill
d) Hidden Goodwill
17. A, B, C and D are partners sharing profits in the ratio of 2 : 4 : 3 : 1. C retires and for this purpose, goodwill is valued at
two year’s purchase of average super-profits of last four years, which are as under:
I Year ₹ 40,000
II Year ₹ 10,000 (Loss)
III Year ₹ 1,00,000
IV Year ₹ 1,50,000
The normal profits for similar firms are ₹ 56,000.
Record necessary entry for goodwill on the retirement of C.

18. A firm earned net profits during the last three years as:
Year 2011-13 2013-14 2014-15
Profits (Rs.) 36,000 40,000 44,000
The capital investment of the firm is Rs. 1,20,000. A fair return on the capital having regard to the risk involved is 10%.
Calculate the value of goodwill on the basis of three years purchase of the super profit for the last three years.
19. S. Singh Limited obtained a loan of ₹5,00,000 from State Bank of India @ 10% p.a. interest. The company issued
₹7,50,000, 10% Debentures of ₹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.

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ii. When the company decided to record the issue of 10% Debentures as Collateral Security.
20. X and Y were partners sharing profits and losses in the ratio of 3:1. They decided that with effect from 1st April 2016,
they would share profits and losses in the ratio of 5:3. The partnership deed provides that in the event of any change in
profit sharing ratio, the goodwill should be valued at the total of two year’s profits preceding the date the decision
became effective. The profits for 2013-14, 2014-15 and 2015-16 were ₹ 60,000, ₹ 70,000 and ₹ 90,000 respectively.
Pass the necessary Journal entry to give effect to the above arrangement.
21. A company invited applications for 50,000 Equity Shares of ₹ 10 each payable as follows:
On application ₹ 3; on allotment ₹ 3; on first and final call ₹ 4.
Applications were received for 1,10,000 shares. It was decided:

i. to refuse allotment to the applicants for 10,000 shares,
ii. to allot 50% to Mr. X who has applied for 20,000 shares,
iii. to allot in full to Mr. Y who has applied for 10,000 shares,
iv. to allot balance of the available shares on pro-rata basis among the other applicants, and
v. to utilise excess application money in part payment of allotment and final call.
Pass Journal entries till the stage of allotment assuming that the total amount due on allotment is received.
22. A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve their firm on 1st Jan.
2019. Complete the Realisation Account, Loan Account, Capital Accounts and Bank Account from the information
given below:
REALISATION ACCOUNT
Dr. Cr.
Particulars ₹ Particulars ₹
To Sundry Assets: By Sundry Liabilities:
Stock A/c 59,400 Provision for Bad Debts A/c 3,000
Debtors A/c 57,000 Creditors A/c 46,200
Plant and Machinery A/c 1,31,000 2,47,500 Bills Payable A/c 10,800 60,000
To Bank A/c (Liabilities paid off) ? By ?
To ? By Bank A/c (Assets realised):
Stock 45,000
Goodwill 12,000
Debtors 34,200
Plant and Machinery 90,000 ?
By Loss on realisation transferred to:
A's Capital A/c ?
B's Capital A/c ?
C's Capital A/c 9,450 ?
? ?
LOAN FROM A ACCOUNT
Dr. Cr.

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To ? By Balance b/d ?
? ?
CAPITAL ACCOUNTS
Dr. Cr.
Particulars A B C Particulars A B C
₹ ₹ ₹ ₹ ₹ ₹
To ? ? ? By ? ? ?
To Bank A/c (Final Payment) ? ? ? By Workmen Compensation Reserve ? 3,000 ?
By Bank A/c (Amount brought in) ? 3,900 ?
? 18,900 ? 64,500 ? 61,500
BANK ACCOUNTS
Dr. Cr.
To Balance b/d ? By Realisation A/c (Liabilities Paid) ?
To Realisation A/c (Sale of unrecorded asset) 15,000 By Realisation A/c (Exp.) 2,400
To ? By Loan From A A/c 57,000
To ? By ?
By ?
? ?
23. Manvet Ltd. invited applications for issuing 10,00,000 equity shares of ₹10 each payable as follows:
On application and allotment ₹4 per share (including premium ₹1),
On first call ₹4 per share,
On second and final call ₹3 per share.
Applications for 15,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess
application money was adjusted on the sums due on calls. A shareholder who had applied for 6,000 shares did not pay
the first, and the second and final call. His shares were forfeited. 90% of the forfeited shares were reissued at ₹8 per
share fully paid up.
Pass necessary journal entries for the above transactions in the books of the company.
24. Brijesh, Charu and Dilip are partners sharing profits and losses in the ratio of 3: 2: 1. Their balance sheet as at 31st
March, 2016 was as follows:
Liabilities ₹ Assets ₹
Creditors 87,000 Cash 30,000
Reserve 42,000 Debtors 62,000
Profit & Loss A/c (Profits) 21,000 Less: Provision for doubtful debs 2,000 60,000
Capital Accounts: Stock 1,80,000
Brijesh 3,00,000 Furniture 30,000
Charu 3,00,000 Plant 2,00,000
Dilip 50,000 6,50,000 Building 3,00,000

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8,00,000 8,00,000
The partners agreed that from 1st April, 2016 they will share profits and losses in the ratio of 4: 4: 1. They agreed that:
i. Stock is to be valued at 20% less.
ii. Provision for doubtful debts to be increased by ₹ 1,500.
iii. Furniture is to be depreciated by 20% and plant by 15%.
iv. ₹ 3,500 are outstanding for salaries.
v. Building is to be valued at ₹ 3,50,000.
vi. Goodwill is valued at ₹ 45,000.
Partners do not want to record the altered values of assets and liabilities in the books and want to leave the reserves and
profits undisturbed. You are required to pass a single journal entry to give effect to the above. Also, prepare the revised
balance sheet.
25. Lokesh, Mansoor and Nihal were partners in a firm sharing profits as 50%, 30% and 20% respectively. On 31st March,
2014, their balance sheet was as follows:
Liabilities Amount (Rs) Assets Amount (Rs)
Provident Fund 10,000 Stock 38,000
Investment Fluctuation Fund 20,000 Debtors 94,000
Capital A/cs: (-) Provision 6,000 88,000
Lokesh 1,40,000 Investments 80,000
Mansoor 80,000 Goodwill 40,000
Nihal 50,000 2,70,000 Profit and Loss 20,000
3,34,000
3,34,000

========= ========
On the above date, Mansoor retired and Lokesh and Nihal agreed to continue on the following terms:
i. Firm’s goodwill was valued at Rs 1,02,000 and it was decided to adjust Mansoor’s share of goodwill into the capital
accounts of the continuing partners.
ii. There was a claim for workmen’s compensation to the extent of Rs 12,000 and investments were brought down to Rs
30,000.
iii. Provision for bad debts was to be reduced by Rs 2,000.
iv. Mansoor was to be paid Rs 20,600 in cash and the balance will be transferred to his loan account which was paid in
two equal instalments together with interest @ 10% per annum.
v. Lokesh’s and Nihal’s capitals were to be adjusted in their new profit sharing ratio by bringing in or paying off cash as
the case may be.
Prepare revaluation account and partners’ capital accounts.
26. Pass necessary Journal entries relating to the issue of debentures for the following:
a. Issued ₹ 4,00,000; 9% Debentures of ₹ 100 each at a premium of 8% redeemable at 10% premium.
b. Issued ₹ 6,00,000; 9% Debentures of ₹ 100 each at par, repayable at a premium of 10%.
c. Issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at par.
Part B :- Analysis of Financial Statements
27. Interest on long term borrowings is an ________ relating to financial activities and shown as ________ of cash.
a) Expense, Outflow

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b) Income, Inflow
c) Outflow, Income
d) Expense, Income
OR
A Ltd engaged in the business retailing of Air-Conditioners, invested Rs. 25, 00,000 in the shares of a manufacturing
company. Dividend received on this investment will be:
a) Cash flow from Investing activities
b) Cash flow from operating activities
c) Cash Equivalent
d) Cash flow from Financing activities

28. Which of the following is not a limitation of analysis of financial statements?
a) Price level changes ignored
b) Intra firm comparison possible
c) Subjectivity
d) Window Dressing
29. Which of the following is not a source of finance?
a) Fixed Assets
b) Debentures
c) Bank Loan
d) Bank Overdraft
OR
Cash paid against trade payable belongs to
a) Financing Activities
b) Investing Activities
c) No Effect
d) Operating Activities
30. Why government is interested in analysis financial statement
a) To know whether the business is able to pay debt
b) To Compile National Income and taxes and policy making.
c) To know the liquidity of business
d) To know the earning capacity

31. Under which sub-heads will the following items be placed in the Balance Sheet of a company as per revised Schedule
VI, Part I of the Companies Act, 1956 (Schedule III, Part I of the Companies Act, 2013)?
i. Capital Reserve
ii. Bonds
iii. Loans repayable on Demand
iv. Vehicles
v. Goodwill
vi. Loose Tools
32. From the following details, calculate Return on Capital Employed:
Gross Profit ₹ 1,00,000; Office and Administrative Expenses ₹ 10,000; Selling and Distribution Expenses ₹ 25,000;
Interest on Long-term Debts ₹ 8,000; Tax ₹ 12,000; Non Current Assets ₹ 3,00,000; Current Assets ₹ 1,50,000 and
Current Liabilities ₹ 1,25,000.

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33. Calculate Operating Profit Ratio, in each of the following alternative cases:
Case 1: Revenue from Operations (Net Sales) ₹ 10,00,000; Operating Profit ₹ 1,50,000.
Case 2: Revenue from Operations (Net Sales) ₹ 6,00,000; Operating Cost ₹ 5,10,000.
Case 4: Revenue from Operations (Net Sales) ₹ 3,60,000; Gross Profit 20% on Sales; Operating Expenses ₹ 18,000
Case 4: Revenue from Operations (Net Sales) ₹ 4,50,000; Cost of Revenue from Operations ₹ 3,60,000; Operating
Expenses ₹ 22,500.
Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations ₹ 8,00,000; Gross Profit 20% on Sales; Operating
Expenses ₹ 50,000.
OR
Cash Revenue from Operations ₹1,00,000; Credit Revenue from Operations ₹3,00,000; Gross Profit 30% on Revenue
from Operations; Inventory Turnover Ratio = 2 Times.
Calculate Opening Inventory and Closing Inventory in each of the following cases:
Case 1: If Opening Inventory is rd of the inventory at the end.
Case 2: If Closing Inventory is 25% less than the inventory in the beginning.
Case 3: If Opening Inventory is 75% of Closing Inventory and Closing Inventory is 30% of Revenue from Operations.
34. From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:
Particulars Note No. 31.3.2019 31.3.2018
₹ ₹
I. Equity and Liabilities:
1. Shareholders Funds:
(a) Share Capital 2,50,000 2,00,000
(b) Reserve and Surplus: Surplus, i.e., Balance in Statement of Profit and Loss 1,83,000 82,000
2. Non-Current Liabilities:
Long-term Borrowings
15% Debentures 80,000 50,000
3. Current Liabilities:
(a) Trade Payables 1,50,000 1,10,000
(b) Other Current Liabilities 12,000 20,000
Total 6,75,000 4,62,000
II. Assets:
1. Non-Current Assets:
(a) Fixed Assets (Tangible) 2,74,000 1,17,000
(b) Non-Current Investments 68,000 55,000
2. Current Assets:
(a) Investments 2,06,000 1,50,000
(b) Trade Receivables 32,000 70,000
(c) Cash and Cash Equivalents 95,000 70,000
Total 6,75,000 4,62,000

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Class 12 - Accountancy
Sample Paper - 10 (2022-23)
Solution
Part A:- Accounting for Partnership Firms and Companies

1. (b) ₹1,408.33
Explanation: When amounts are different for each drawing and dates of drawings are also different, in such a case
Product method should be used to calculate the interest on drawings:
Amount (A) Months (B) Products (A× B)
6,000 11 66,000
4,000 09 36,000
8,000 06 48,000
3,000 03 9,000
5,000 02 10,000
Interest on drawings Charged During the year = Total products × Rate of Drawing × 1
12

= Rs.1,69,000 × = Rs.1,408.33
10 1
×
100 12
2. (a) Both A and R are true and R is the correct explanation of A.
Explanation: Both A and R are true and R is the correct explanation of A.

3. (a) not be accounted in the books
Explanation: not be accounted in the books
OR
(d) All of these
Explanation: All of these

4. (b) L Co. (Vendor) ... Dr. ... 55,000
55,000
Explanation: No. of shares issued = 11
= 5,000
L Co. (Vendor) ... Dr. ... 55,000
OR
(b) 2,00,000
Explanation: Amount to be adjusted in share capital account is no.of shares invited for × face value of shares
= ₹2,00,000.₹ i.e. 20,000 Shares × 10 = 2,00,000

5. (d) (A)
Explanation: Interest on debentures is paid before paying any dividend. Interest is charged against profit. Following
statement are false:
Debentures cannot be issued as ‘Collateral Security’
Debentures can be issued in cash only
Debentures cannot be issued at a discount

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6. (a)
Bank A/c Dr. 7,000
Explanation: Unrecorded assets are directly realised i.e. sold off so it is recorded on the credit side of realisation
account
Entry will be:
Bank A/c ... Dr ... 7000
To Realisation A/c ... 7000
OR
(c)
Explanation: When liabilities are paid, should be recorded at the paid amount and not at the actual value of the liability.
When liability is paid by a partner then the entry will be:
7. (b) Capital Reserve ₹6,000
Explanation: The amount of capital reserve will be calculated as = (amount of shares forfeited/no of shares forfeited ×
no of shares reissued) - amount of discount on the reissue
Forfeited Shares A/c ... Dr. 6,000
To Capital Reserve 6,000
Amount forfeited = 8000
Amount used on reissue = 2000
Capital Reserve = 8,000 - 2,000 = 6,000

8. (c) Bank A/c ... Dr. 1,10,000
To 12% Debentures App. & Allot. A/c 1,10,000
(Being Application money received)
Explanation: The following journal entry will be recorded for the issue of debentures:
Bank A/c ... Dr. 1,10,000
To 12% Debentures Application and & Allotment Account 1,10,000
Note: In this first journal entry there is no need to show premium separately Premium will be shown in Transfer entry
(i.e. at the time of transfer to capital A/c).
OR
(a) ₹120000
Explanation: Allotment amount = 30
No of debentures = 4000
Allotment money due = 4,000 × 30 = 1,20,000

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9. a. (b) Reconstitution of the firm
Explanation: Reconstitution of the firm.

10. a. (a) Both sacrificing ratio and gaining ratio
Explanation: Both sacrificing ratio and gaining ratio

11. (c) 44,00,000
Explanation: Company has to refund Rs.44,00,000. Excess money received from 40000 applicants will be refunded.
Total application received = 20000 + 20000 × 3 (oversubscribed) = 80000
So application refunded = 80000 - 4000 - 36000 = 40000
Total amount refunded = 40000 × 110 = 44,00,000

12. (c)
Bank A/c ... Dr. 26,000

Explanation: Total amount brought by David into business is ₹30,000. But this amount includes Rs.4,000 as his share
of the premium for goodwill. Hence, his actual amount of capital is ₹26,000 i.e. (30,000 - 4,000).
13. (c) 26
Explanation: As per Accounting Standard 26, issued by Institute of Chartered Accountants of India (ICAI), Goodwill
should be recorded in the books only when some consideration in money or money's worth has been paid for it. Hence
only Purchase Goodwill is recorded in the books of Account.
14. (d) A= ₹30,000, B= ₹22,667, C= ₹23,333 and D= ₹20,000
Explanation: Distribution of profit in 4:3:3:2 Ratio:
A’s share of profit = 96,000 × 4
12
= 32,000 - 2,000 = Rs. 30,000
B’s share of profit = 96,000 × = 24,000 - 1,333 = Rs. 22,667
12
C’s share of profit = 96,000 × = 24,000 - 667 = Rs. 23,333
12
D’s share of profit = 96,000 × 2
12
= 16,000 + 4,000 = Rs. 20,000
D’s Guaranteed amount is Rs.20,000 but he is getting Rs.16,000 (remaining 20,000 - 16,000 = Rs. 4,000 will be paid by
A, B and C in 3:2:1 Ratio), Deficiency is Rs.4,000 will be shared by A, B & C in the ratio of 3:2:1.
A's share in deficiency = 4000 × = 2,000
B's share in deficiency = 4000 × 2
6
= 1,333
C's share in deficiency = 4000 × = 667

1
15. (c) Debited to all partners capital A/c in the old ratio
Explanation: At the time of retirement or death of a partner, while adjusting the capital accounts, preliminary expenses
given in the balance sheet should be debited to all the partners in their old profit sharing ratio. Preliminary expenses are
deferred expenditures which are to be written off between all partners.
OR
(b) Loss on Revaluation
Explanation: Partner’s capital account will be debited in case of loss on revaluation, drawings,dr balance of profit and
loss and in other cases his account will be credited i.e.
Profit on Revaluation
General Reserve etc.
16. (d) Hidden Goodwill
Explanation: It is known as hidden goodwill.

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Following formula should be used to calculate the value of hidden goodwill:
Total Capital of the new firm - Combined capital of all partners (including new partner capital) = Hidden Goodwill
17. JOURNAL ENTRIES
Date Particulars L.F. Dr. (₹) Cr. (₹)

A's Capital A/c Dr. 2,400
B's Capital A/c Dr. 4,800
D's Capital A/c Dr. 1,200

To C's Capital A/c 8,400
(Retiring partner's share of goodwill adjusted in gaining share)

W.N.:
Average Profits = ₹(40,000 - 10,000 + 1,00,000 + 1,50,000)/4 = ₹ 70,000
Super Profits = Average Profits - Normal Profits
= 270,000 - ₹ 56,000 = ₹ 14,000
Goodwill = Super Profits × Number of Year’s Purchase
= ₹ 14,000 × 2 = ₹ 23,000
C‘s share of Goodwill = ₹28, 000 × = ₹ 8,400

3
10
18. Step 1;
Average profit = (36000 + 40000 + 44000)/3 = 40,000
Step 2;
Normal profit = C apitalEmployed × Normal Rate of Return
100

Normal profit = 1, 20, 000 × = Rs.12,000
10
100
Step 3;
Super profit = Average profit – Normal profit
= 40,000 – 12,000 = Rs. 28,000
Step 4;
Goodwill = Super profit × No. of years purchase
= 28000 x 3 = Rs. 84,000

19. i. When the company decided not to record the issue of 10% Debentures as Collateral Security.
Journal Entries
Debit Amount Credit Amount
Date Particulars L.F.
(₹) (₹)
Bank A/c Dr. 5,00,000

To Bank Loan A/c 5,00,000

(Being bank loan taken from State Bank of India @10% p.a.

interest)
ii. When the company decided to record the issue of 10% Debentures as Collateral Security.
In the books of S. Singh Ltd. Journal Entries
Debit Amount Credit Amount

(₹) (₹)
Bank A/c Dr. 5,00,000

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To Bank Loan A/c 5,00,000
(Being bank loan taken from State Bank of India @10% p.a.

interest)
Debentures Suspenses A/c Dr. 7,50,000
To 10% Debentures A/c 7,50,000

(Being 7,500, 10% Debentures issued as collateral security)
20. Value of goodwill = ₹ 70,000 + ₹ 90,000 = ₹ 1,60,000
Calculation of Sacrifice or Gain:
Old Ratio = 3:1
New Ratio = 5:3
Sacrifice or Gain:
X= − = (Sacrifice)
3 5 6 − 5 1
=
4 8 8 8
Y = (Gain)
1 3 2 − 3 1
− = =
4 8 8 8
since X has sacrificed, he will be credited from 1
8
of ₹ 1,60,000 = ₹ 20,000
since Y has gained, he will be debited from 1
8
of ₹ 1,60,000 = ₹ 20,000
In the books of Firm
JOURNAL

Y's Capital A/c Dr. 20,000
To X 's Capital A/c 20,000
(Being Adjustment for goodwill due to change in profit sharing ratio is made)
21. JOURNAL
Bank A/c Dr. 3,30,000

To Equity Shares Application A/c 3,30,000
(Being the receipt of application money @ ₹ 3 per share on 1,10,000 share)
Equity Shares Application A/c Dr. 3,30,000

To Equity Share Capital A/c 1,50,000
To Equity Shares Allotment A/c 1,20,000
To Calls-in-Advance A/c 30,000

To Bank A/c 30,000
(Being the application money transferred to Equity Share Capital and excess
application money transferred to Equity Shares Allotment Account and Calls-in-
Advance Account, balance refunded)
Equity Shares Allotment A/c Dr. 1,50.000
To Equity Share Capital A/c 1,50.000

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(Being the allotment money due on 50,000 equity shares @ ₹ 3 per share)
Bank A/c Dr. 30,000
To Equity Shares Allotment A/c 30,000

(Being the receipt of allotment money @ ₹ 3 per share on 10,000 equity shares

of Mr. Y who was allotted in full)
Working Note:
STATEMENT SHOWING DETAILS OF SHARES APPLICATION MONEY
Disposition of Shares Application Money Received

Application
Share Shares Share Shares
Categories Money Received
Calls-in-Advance
Refund
Applied Allotted Capital

Allotment
₹ ₹ ₹
₹ ₹
I. 30,000 (10,000 ×
10,000 NIL ... ... ... 30,000
(Rejected) ₹ 3)
30,000 30,000
60,000 (20,000 ×
II. X 20,000 10,000 (10,000 × ₹ (10,000 × ₹ ... ...
₹ 3)
3) 3)
30,000
30,000 (10,000 ×
III. Y 10,000 10,000 (10,000 × ₹ .... ... ...
₹ 3)
3)
70,000
30,000
90,000 90,000
IV. (Pro- 2,10,000 (70,000 30,000 (2,10,000 -
(Bal. (Bal. (30,000 × ₹ (30,000 × ₹ ...
rata) × ₹ 3) 90,000 - 90,000)
Fig.) Fig.) 3) 3)
Total 1,10,000 50,000 3,30,000 1,50,000 1,20,000 30,000 30,000
22. REALISATION ACCOUNT
Dr. Cr.
To Sundry Assets: By Sundry Liabilities:
Stock A/c 59,400 Provision for Bad Debts A/c 3,000
Debtors A/c 57,000 Creditors A/c 46,200

Plant and Machinery A/c 1,31,000 2,47,500 Bills Payable A/c 10,800 60,000
To Bank A/c (Liabilities paid off) 63,000 By Bank A/c (Sale of unrecorded asset) 15,000
To Bank A/c (Expenses of realisation) 2,400 By Bank A/c (Assets realised):

Stock 45,000
Goodwill 12,000
Debtors 34,200
Plant and Machinery 90,000 1,81,200

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By Loss on realisation transferred to:
A's Capital A/c 3/6 28,350

B's Capital A/c 2/6 18,900
C's Capital A/c 1/6 9,450 56,700
3,12,900 3,12,900
LOAN FROM A ACCOUNT
Dr. Cr.
To Bank A/c 57,000 By Balance b/d 57,000
57,000 57,000
CAPITAL ACCOUNTS
Dr. Cr.
Particulars A B C Particulars A B C
₹ ₹ ₹ ₹ ₹ ₹
To Realisation A/c (Loss) 28,350 18,900 9,450 By Balance b/d 60,000 12,000 60,000
To Bank A/c (Final

36,150 - 52,050 By Workmen Compensation Reserve 4,500 3,000 1,500
Payment)
By Bank A/c (Amount brought in) - 3,900 -
64,500 18,900 61,500 64,500 18,900 61,500
BANK ACCOUNTS
Dr. Cr.
To Balance b/d 10,500 By Realisation A/c (Liabilities Paid) 63,000
To Realisation A/c (Sale of unrecorded asset) 15,000 By Realisation A/c (Exp.) 2,400
To Realisation A/c (Assets realised) 1,81,200 By Loan From A A/c 57,000

To B's Capital A/c 3,900 By A's Capital A/c 36,150
By C's Capital A/c 52,050
2,10,600 2,10,600
Working Notes:
(6) First of all, Cr. side of Realisation A/c will be completed and the total of Cr. side ₹ 3,12,900 will be put on Dr. side
and the missing figure on Dr. side will be 'Liabilities paid' off ₹ 63,000.
(12) Cr. side of Bank A/c will be completed and the total of Cr. side ₹ 2,10,600 will be put on Dr. side and the missing
figure will be the opening balance of ₹ 10,500.

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myCBSEguide
23. Books of Manvet Ltd.
JOURNAL
(i) Bank A/c Dr. 60,00,000
To Equity Share Application & Allotment A/c
60,00,000
(Application money received on 15,00,000 shares)
(ii) Equity Share Application & Allotment A/c Dr. 60,00,000
To Equity Share Capital A/c 30,00,000

To Securities Premium Reserve A/c 10,00,000
To Calls in Advance A/c
20,00,000
(Application & Allotment money adjusted)
(iii) Equity Share First Call A/c Dr. 40,00,000

To Equity Share Capital A/c
40,00,000
(First call money due on 10,00,000 shares)
(iv) Bank A/c(1) Dr. 19,92,000
Calls in Advance A/c Dr. 20,00,000

To Equity Share First Call A/c 39,92,000
OR
Bank A/c Dr. 19,92,000

Calls in arrear A/c Dr. 8,000
Calls in Advance A/c Dr. 20,00,000
To Equity Share First Call A/c
(First call money received except on 4,000 shares and calls in advance 40,00,000
adjusted)
Equity Share Second and Final call A/c Dr. 30,00,000
30,00,000
(Second & Final Call money due on 10,00,000 shares)
(vi) Bank A/c Dr. 29,88,000
To Equity Share Second & Final Call A/c 29,88,000

OR
Bank A/c Dr. 29,88,000
Calls in arrear A/c Dr. 12,000

To Equity Share Second & Final Call A/c
30,00,000
(Second and final call money received except on 4,000 shares )
(vii) Equity Share Capital A/c Dr. 40,000

To Equity Share First Call A/c 8,000

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To Equity Share Second & Final Call A/c 12,000
To Forfeited Shares A/c 20,000

OR
Equity Share Capital A/c Dr. 28,800
To Calls-in-Arrear A/c 7,200

36,000
(3,600 of the forfeited shares reissued as fully paid up)
(viii) Forfeited Shares A/c(2) Dr. 10,800
To Capital Reserve A/c
10,800
(Gain on 3,600 reissued shares transferred to capital reserve A/c )
Working Notes:
i.
10,00,000
a. Applicant for 6,000 shares must have been allotted × 6,000
15.00,000
= 4,000 shares
Excess amount received from him on application
= 6,000 Shares - 4,000 Shares = 2,000 Shares × ₹ 4
= ₹ 8,000
b. Amount due from him on first call (4,000 × ₹ 4) 16,000
Less :Excess received from him on application 8,000
Amount not paid on first call 8,000

c.
Total amount due on First Call: 10,00,000 Shares × ₹4 40,00,000
Less :Excess amount received on Application 20,00,000
20,00,000
Less :Not received on First Call 8,000
Net amount received on First Call 19,92,000

ii. Amount transferred to Capital Reserve :
Gain on 4,000 Shares 20,000
3,600
Gain on 3,600 Shares 20,000 × 4,000
18,000
Less: Loss on Re-issue 7,200

Transferred to Capital Reserve 10,800
24. Journal
Dr. Cr.
(₹) (₹)
2016
April Charu’s Capital A/c Dr. 9,000
1

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To Brijesh’s Capital A/c 4,500
To Dilip’s Capital A/c 4,500
(Adjustment for revaluation of assets and liabilities and for reserves, profits and

goodwill on change in profit sharing ratio)
BALANCE SHEET
as at 1st April, 2016
Liabilities ₹ Assets ₹
Reserve 42,000 Debtors 62,000
Profit & Loss A/c (Profits) 21,000 Less : Provision for doubtful debts 2,000 60,000
Capital Accounts: Stock 1,80,000
Brijesh 3,04,500 Furniture 30,000
Charu 2,91,000 Plant 2,00,000

Dilip 54,500 6,50,000 Building 3,00,000
8,00,000 8,00,000
Workings:
Calculation of Net Amount to be adjusted :

Particulars ₹
Loss due to decrease in the value of Stock (36,000)
Loss due to provision for doubtful debts (1,500)

Loss due to decrease in the value of Furniture (6,000)
Loss due to decrease in the value of Plant (30,000)
Loss due to unrecorded liability (i.e., Outstanding salary) (3,500) (77,000)

Profit due to increase in the value of Building 50,000
Loss on Revaluation (-) 27,000
Adjustment for Reserves (+) 42,000

Adjustment for Profit & Loss A/c (Profits) (+) 21,000
Adjustment for Goodwill (+) 45,000
(+) 81,000
Old Ratio of Brijesh, Charu and Dilip = 3: 2: 1
New Ratio of Brijesh, Charu and Dilip = 4: 4: 1
Sacrifice or Gain: Old share - New Share
Brijesh = (Sacrifice)
3 4 1
− =
6 9 18
Charu = (Gain)
2 4 2
− =
6 9 18
Dilip = 1
6
−
1
9
=
1
18
(Sacrifice)
Share of Brijesh = 81,000 × 1
18
= ₹ 4,500 (Cr.)

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myCBSEguide
Share of Charu = 81,000 × 18
2
= ₹ 9,000 (Dr.)
Share of Dilip = 81,000 × 1
18
= ₹ 4,500 (Cr.)
25. Revaluation Account
Amount Amount
Particulars Particulars
(Rs) (Rs)
To Workmen's Compensation Claim A/c 12,000 By Provision for Bad Debts A/c 2,000
To Investment A/c 30,000 By Loss Transferred to Capital A/cs
Lokesh 20,000
Mansoor 12,000
Nihal 8,000 40,000
42,000
42,000

===== ======
Partners’ Capital Account
Lokesh
Mansoor Nihal
Lokesh
Mansoor Nihal
Particulars Amount
Amount
Amount
Particulars Amount
Amount
Amount
(Rs) (Rs) (Rs) (Rs) (Rs) (Rs)
To Profit and Loss A/c 10,000 6,000 4,000 By Balance b/d 1,40,000 80,000 50,000
To Goodwill A/c 20,000 12,000 8,000 By Lokesh's Capital A/c 21,857

To Revaluation A/c
20,000 12,000 8,000 By Nihal's Capital A/c 8,743
(Loss)
By Cash A/c(Balancing
To Mansoor's Capital A/c 21,857 8,743 4,286
Figure)
To Cash A/c 20,600
To Mansoor's Loan A/c 60,000

To Cash A/c(Balancing
4,286
Figure)
To Balance c/d 63,857 25,543
1,40,000
1,10,600
54,286
1,40,000
1,10,600
54,286

======= ====== ===== ====== ======= ======
Working Note:Whenever a partner exits a partnership, the books of accounts of such a firm have to be settled. The
outgoing partner or his legal representatives have to be paid their dues. This means a revaluation of assets and liabilities
must be done. Share of goodwill is to be calculated, and the adjusted capital after retirement is to be calculated.
Calculation of Share of Goodwill
Mansoor’s share of goodwill = 1,02,000 × = Rs 30,600, to be contributed by Lokesh and Nihal in gaining ratio i.e., 5 :
3
10
2
Lokesh will pay = 30,600 × = Rs 21,857; Nihal will pay = 30,600 × = Rs 8,743
5 2
7 7
Calculation of Capital of New Firm after Mansoor’s Retirement
Lokesh’s capital after adjustment = 68,143

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myCBSEguide
Nihal’s capital after adjustment = 21,257
Total Capital = 89,400
Lokesh’s new capital = 89,400 × = Rs 63,857
Nihal’s new capital = 89,400 × = Rs 25,543

2
26. Journal
(a) Bank A/c Dr. 4,32,000

To Debenture Application and Allotment A/c
4,32,000
(Application money received on 4,000 9% Debentures)
Debenture Application and Allotment A/c Dr. 4,32,000
Loss on Issue of Debenture A/c Dr. 40,000

To Securities Premium Reserve A/c 32,000
To Premium on Redemption of debentures A/c
(4,000; 9% Debentures issued at a premium of ₹8 and redeemable at a 40,000

premium of 10%)
(b) Bank A/c Dr. 6,00,000

To Debenture Application and Allotment A/c 6,00,000
(Application money received on 6,000 9% Debentures)

Loss on Issue of Debenture A/c Dr. 60,000
To Premium on Redemption of Debentures A/c
60,000
(6,000; 9% Debentures issued at par and redeemable at a premium of 10%)
(c) Bank A/c Dr. 10,50,000
To Debenture Application and Allotment A/c
10,50,000
(Application money received on 10,000 9%Debentures)
To Securities Premium Reserve A/c
50,000
(1,000; 9% Debentures issued at a premium of ₹5)
Part B :- Analysis of Financial Statements
27. (a) Expense, Outflow
Explanation: Interest paid on long term borrowings is an outflow of cash. It is shown as a deduction in financing
activities while preparing cash flow statement as long term borrowings is a financial item. it is deducted from financing
activity.
OR

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myCBSEguide
(a) Cash flow from Investing activities
Explanation: Cash flow from Investing activities

28. (b) Intra firm comparison possible
Explanation: Intra firm comparison is not a limitation.

29. (a) Fixed Assets
Explanation: Following is the source of finance except for fixed assets, these will be shown in financing activity.
i. Bank Loan
ii. Bank Overdraft
iii. Debentures
As fixed assets is an investing activity.
OR
(d) Operating Activities
Explanation: These are the company's core business activities, such as manufacturing, distributing, marketing and
selling a product or service. Operating activities should generally provide the majority of a company's cash flow and
largely determine whether a company is profitable.
30. (b) To Compile National Income and taxes and policy making.
Explanation: Government is interest in financial statement analysis to compile the national income,do tax research and
to take decisions related to policies of economic interest..
31. S.No. Particulars Sub-head of Balance sheet
(i) Capital Reserve Reserves and Surplus
(ii) Bonds Long-term Borrowings
(iii) Loans repayable on Demand Short-term Borrowings

(iv) Vehicles Fixed Assets-Tangible Assets
(v) Goodwill Fixed Assets-Intangible Assets
(vi) Loose Tools Inventories

32. Return on Capital Employed =
Net Profit before Interest and Tax

× 100
Capital Employed
Net Profit before interest and tax = Gross Profit - Office and Administrative Exp. - Selling and Distribution Exp.
= ₹ 1,00,000 - ₹ 10,000 - ₹ 25,000 = ₹ 65,000
Capital Employed = Non Current Assets + Current Assets - Current Liabilities or capital + reserves
= ₹ 3,00,000 + ₹ 1,50,000 - ₹ 1,25,000
= ₹ 3,25,000
65,000
Return on Capital Employed = 3,25,000
× 100 = 20%
33. Case 1:
Operating Profit
Operating Profit Ratio = × 100
Net Sales
1,50,000
=
10,00,000
× 100 = 15%
Case 2:
Operating Profit = Net Sales - Operating Cost
= 6,00,000 - 5,10,000 = 90,000
Operating Profit
Operating Profit Ratio = Net Sales
× 100

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myCBSEguide
90,000
=
6,00,000
× 100 = 15%
Case 3:
Net Sales = 3,60,000
Gross Profit = 20% on Sales
∴ Gross Profit = × 3,60,000 = 72,000
20
100
Operating Profit = Gross Profit - Operating Expenses
= 72,000 - 18,000 = 54,000
Operating Profit
Operating Profit ratio = Net Sales
× 100
54,000
=
3,60,000
× 100 = 15%
Case 4:
Net Sales = 4,50,000
Operating Profit = Net Sales - Cost of Goods Sold - Operating Expenses
= 4,50,000 - 3,60,000 - 22,500 = 67,500
Operating Profit
Operating Profit Ratio = × 100
Net Sales
67,500
=
4,50,000
× 100 = 15%
Case 5:
Gross Profit = 20% on Sales
Let Sales = x
Gross Profit =
20 20x
∴ x× =
100 100
Sales = Cost Goods Sold + Gross Profit
x = 8,00,000 +
20x
100
or, 80x
100
= 8,00,000
or, x = Sales = Rs.10,00,000
Operating Cost = Cost of Goods Sold + Operating Expenses
Operating cost = 8,00,000 + 50,000 = Rs.8,50,000
Operating Profit = Net Sales - Cost of goods Sold - Operating Expenses
Operating profit = 10,00,000 - 8,00,000 - 50,000 =Rs. 1,50,000
Operating Profit
Operating Profit Ratio = Net Sales
× 100
1,50,000
=
10,00,000
× 100 = 15%
OR
Revenue from Operations = Cash Revenue from Operations + Credit Revenue from Operations
= ₹1,00,000 + ₹3,00,000 = ₹4,00,000.
Cost of Revenue from Operations = Revenue from Operations - Gross Profit
= ₹4,00,000 - (4, 00, 000 × 30
100
)
= ₹4,00,000 - ₹1,20,000 = ₹2,80,000.
cost of Revenue from Operations

Inventory Turnover Ratio =
Average Inventory
₹2,80,000
2 =
Average Inventory
₹2,80,000
Average Inventory = 2
= ₹ 1,40,000.
Case 1: If Opening Inventory is 1/3rd of the Inventory at the end.
Let Closing Inventory be x
∴ Opening Inventory = of x or
1 x
3 3
Opening Inventory + Closing Inventory


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myCBSEguide
x
+x
₹1,40,000 = 3
₹1,40,000 × 2 = x
3
+ x
₹2,80,000 = 4x
4x = ₹ 2,80,000 × 3 = ₹ 8,40,000
₹8,40,000
x= 4
= ₹ 2,10,000 (Closing Inventory).
₹2,10,000
∴ Opening Inventory = 3
= 70,000.
Case 2: If Closing Inventory is 25% less than the Inventory in the beginning.
Let Opening Inventory be x
Closing Inventory = x - 0.25x = 0.75x
Opening Inventory + Closing Inventory


x+0.75x
1,40,000 = 2

2,80,000 = 1.75x
₹2,80,000
x =
1.75
= 1,60,000 (Opening Inventory).
∴ Closing Inventory = 0.75 x ₹1,60,000 = ₹1,20,000.
Case 3: If Opening Inventory is 75% of Closing Inventory and Closing Inventory is
30% of Revenue from Operations.
Closing Inventory = 30% of Revenue from Operations
= 30% of ₹4,00,000 = ₹1,20,000.
Opening Inventory = 75% of ₹1,20,000 = ₹90,000
34. Cash Flow Statement of Young India Ltd.
for the year ended March 31, 2019
Particulars ₹ ₹
A. Cash Flow from Operating Activities
Profit as per Statement of Profit and Loss (1,83,000 - 82,000) 1,01,000
Profit Before Taxation 1,01,000
Items to be Added:
Interest on Debentures 7,500
Operating Profit before Working Capital Adjustments 1,08,500

Less: Increase in current Assets
Inventories (56,000)
Add: Increase in Current Liabilities
Trade Payables 40,000
Less: Decrease in Current Liabilities
Other Current Liabilities (8,000)

Add: Decrease in Current Assets
Trade Receivables 38,000
Cash Generated from Operations 1,22,500
Less: Tax Paid -

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Net Cash Flows from Operating Activities 1,22,500
B. Cash Flow from Investing Activities
Purchase of Fixed Assets (1,57,000)
Purchase of Investments (13,000)

Net Cash Used in Investing Activities (1,70,000)
C. Cash Flow from Financing Activities
Proceeds from Issue of Equity Share Capital 50,000
Proceeds from Issue of 15% Debentures 30,000
Interest on Debentures (50,000 × 15%) (7,500)
Net Cash Flow from Financing Activities 72,500

D. Net Increase or Decrease in Cash and Cash Equivalents (A+B+C) 25,000
Add: Cash and Cash Equivalent in the beginning of the period 70,000
Cash and Cash Equivalents at the end of the period 95,000

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Sample Paper - 10 (2022-23)

Time Allowed: : 3 hours

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

Part A:- Accounting for Partnership Firms and Companies

a) Both A and R are true and R is the correct explanation of A.

b) Both A and R are true but R is not the correct explanation of A.

c) A is true but R is false.

d) A is false but R is true.

a) not be accounted in the books

b) be accounted as per the agreement of the partners

c) be partially accounted in the books

d) be accounted in the books

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

a) at the time of change in profit-sharing ratio

b) at the time of retirement or death of a partner

c) at the time of admission of a partner

a) T Ltd ... Dr. ... 55,000

To Share Capital A/c ... 45,000

To Securities Premium A/c ... 10,000

b) L Co. (Vendor) ... Dr. ... 55,000

To Share Capital A/c ... 50,000

To Securities Premium A/c ... 5,000

c) L Co. (Vendor) ... Dr. ... 54,000

To Share Capital A/c ... 9,000

To Securities Premium A/c ... 45,000

d) No Entry will be recorded for this transaction

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

To Computer A/c 7,000

a) Capital Reserve ₹4,000

b) Capital Reserve ₹6,000

c) Capital Reserve ₹8,000

d) Capital Reserve ₹10,000

a) 12% Debentures A/c ... Dr. 1,10,000

To Debentures App. & Allot. A/c 1,10,000

b) Bank A/c ... Dr. 1,10,000

To Debentures App. & Allot. A/c 1,00,000

To Securities premium 10,000

c) Bank A/c ... Dr. 1,10,000

To 12% Debentures App. & Allot. A/c 1,10,000

(Being Application money received)

d) Bank A/c ... Dr. 1,00,000

To Debentures App. & Allot. A/c 1,00,000

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

b) Reconstitution of the firm

c) Dissolution of the firm

d) Revaluation of the firm

a) Both sacrificing ratio and gaining ratio

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a) A= ₹33,000, B= ₹23,337, C= ₹23,333 and D= ₹40,000

b) A=₹30,000, B= ₹23,667, C= ₹23,333 and D= ₹30,000

c) A= ₹30,000, B= ₹22,667, C= ₹23,333 and D= ₹10,000

d) A= ₹30,000, B= ₹22,667, C= ₹23,333 and D= ₹20,000

a) Debited to all partners in equal ratio

b) Debited to old partners in gaining ratio

c) Debited to all partners capital A/c in the old ratio

d) Credited to all partners capital account

When will partner’s Capital Account be debited:

b) Premium for Goodwill

Record necessary entry for goodwill on the retirement of C.

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On application ₹ 3; on allotment ₹ 3; on first and final call ₹ 4.

Applications were received for 1,10,000 shares. It was decided: