Kendriya Vidyalaya Sangathan, Jaipur Region

First Pre-Board Exam 2023-24

Class: XII Subject: Accountancy
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 has Accounting for Partnership Firms and Companies.
4. Part - B has Analysis of Financial Statements.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31 and 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.

Q PART: A (Accounting for Partnership Firms and Companies) Marks

1 Jannat and John were partners in a firm. During the year 2022-23 Jyoti was admitted as a new partner on (1)
Jan.1, 23. The partnership deed provided that interest on drawings will be charged @ 12% p. a.. Jyoti
withdrew ₹ 5,000 at the beginning of every month. Time was used for the calculation of IOD at the end of
financial year was:
(a) 2 months (b) 6½ months
(c) 1 ½ months (d) 3 months

2 A and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2022 the (1)
balances of their capital accounts were ₹ 30,000 and ₹ 50,000 respectively. The partnership deed provided
that interest on partners’ capital will be allowed @ 10% per annum. During the year ended 31st March,
2023, the firm earned a profit of ₹ 5,000, what was the amount of A’s share of profit:
(a) ₹ 3,000 (b) ₹ 9,000
(c) ₹ 6,000 (d) None of the above

3 Assertion (A): Adith, a partner in the firm gave a loan of ₹. 50,000 to the firm without an agreement to rate (1)
of interest. Interest on Loan by Adith is to be allowed at @6% p.a.
Reason (R): In the absence of the Partnership Deed, Provisions of the Partnership act 1932, apply. Thus,
interest on a loan to a Partner should be charged @6% p.a
(a) Both A and R are correct, and R is the correct explanation of A.
(b) Both A and R are correct, but R is not the correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct
OR
Pick the odd one out:
(a) Interest on partner’s capital. (b) Share of profit of the partner.
(c) Drawings made by partner. (d) Salary of the partner.

4 A, B, C and D were partners. Profit or loss were shared by the partners in the ratio of A and B in 3:2 , B (1)
and C in 3:2 and C and D in 4:3. The profit sharing ratio among A:B:C:D was:
(a) 3:2:3:3 (b) 9:6:4:3
(c) 6:9:3:3 (d) 9:4:4:3

OR
 A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from
01.04.2023, they agreed to share profits and losses equally. Due to change in the profit-sharing ratio, B’s
gain or sacrifice will be:
(a) Gain 1/30 (b) Sacrifice 1/30
(c) Gain 5/30 (d) Sacrifice 4/30

5 Capital employed of a partnership firm was Rs 10,00,000. Its average profit was Rs 1,20,000. The normal (1)
rate of return in similar type of business was 10%. What is the amount of super profit
(a) Rs 12,000 (b) Rs 20,000
(c) Rs 1,00,000 (d) Rs 1,12,000

6 X and T were partners sharing profits in the ratio of 4 : 3. Z was admitted for 1/5th share and he brought in (1)
₹1,40,000 as his share of goodwill in cash of which ₹1,20,000 was credited to X and remaining amount to
Y. New profit sharing ratio will be :
(a) 4 : 3 : 5 (b) 2 : 2 : 1
(c) 1 : 2 : 2 (d) 2 : 1 : 2
OR
A and B were partners sharing profits and losses in the ratio of 5 : 3. On admission, C brought ₹70,000 as
capital and ₹43,000 against Goodwill. New profit ratio of A, B and C was 7 : 5 : 4. The sacrificing ratio of
A and B was:
(a) 3 : 1 (b) 1 : 3
(c) 4 : 5 (d) 5 : 9

7 A, B, C were partners sharing profit and losses in the ratio of 4:3:1: B retired and gave his share of profit (1)
to A Rs. 3,600 and C Rs. 4,500. What was the new profit-sharing ratio of A and C?
(a) 4:5 (b) 2:1
(c) 68:48 (d) 4: 1

8 Ganesh, Venit and Amit were partners in a firm sharing profits in the ratio of 2 : 3 : 1. Venit retired and the (1)
balance in his capital account after making necessary adjustments on account of reserves, revaluation of
assets and re-assessment of liabilities was ₹ 1,20,000. The Goodwill was valued by Rs.3,60,000. Ganesh and
Venit agreed to pay him __________ in full settlement of his claim.
(a) ₹ 1,20,000 (c) ₹ 2,40,000
(b) ₹ 3,00,000 (d) ₹ 4,80,000

9 A, S and R are partners sharing profit in the ration 7:5:4. R died on 30th June 2019 , and profits for the (1)
year 2018-19 were Rs. 12,000. How many shares in profits for the period 1st April 2019 to 30th June 2019
will be credited to R’s Ac.
(a) ₹ 750 (b) ₹ 5000
(c) ₹ 7000 (d) Nill

10 Esha, Yash, and Zack are partners sharing profits in the ration of 7:5:4. On 30th June 2019, zack died, and (1)
profits for the year ending 31st March 2020 ware ₹ 24,00.000 How many shares in profits for the period 1st
April to 30th June 2019 will be credited to Zack’s Ac, assuming the profit incurred evenly throughout the
year ?
(a) ₹ 6,00,000 (b) ₹1,50,000
(c) ₹ 2,00,000 (d) Nill
11 Assertion(A): Calls in advance is shown under the head ‘Current Liabilities’, as sub-head ‘other current (1)
liabilities’
Reason(R): Calls in advance on shares is added to the amount of paid up share capital in the company’s
Balance Sheet.
(a) Both Assertion and reason are true and reason is correct explanation of assertion.
(b) Assertion and reason both are true but reason is not the correct explanation of assertion.
(c) Assertion is true, reason is false.
(d) Assertion is false, reason is true.
OR
 Which of the following is proper head of Balance of “Share Capital”
(a) Paid up capital (b) Issued capital
(c) Subscribed capital (d) Called up capital

12 Daisy Limited forfeited 200 shares Rs.10 each who had applied for 500 shares, issued at a premium of 10% (1)
for nonpayment of final call of Rs.3 per share. Out of these 100 shares were issued as fully paid up for Rs.15.
The profit on reissue is :
(a) Rs. 700 (b) Rs. 6400
(c) Rs. 300 (d) Rs. 400

13 E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, application money on (1)
another 6000 shares was refunded. The amount was payable on the application was Rs.2. Sitaraman applied
for 420 shares. The number of shares allotted to him were:
(a) 600 shares (b) 340 shares
(c) 320 shares (d) 300 shares

14 Rose water Ltd. forfeited 4,000 shares of ₹ 20 each. They were forfeited for the non-payment of first call (1)
of ₹ 10 per share with the forfeited amount of ₹ 20,000. The minimum amount per share at which these
shares can be re-issued will be :
(a) ₹ 12 (b) ₹ 14
(c) ₹ 10 (d) ₹ 8

15 Premium on Redemption of debenture account is a______________ of a Company payable after 3 (1)

years at the time of redemption. This account is shown under the subhead of balance sheet by the name
of _______________ :
(a) Liability and Other long term liabilities
(b) Liability and Non-current liabilities.
(c) Written off and Long term Provision.
(d) Written off and Other Long term borrowing.
OR
When the Debenture are issued at premium debenture account is shown by the amount of ____.
(a) Nominal Value (b) Net amount received.
(c) Face Value + Premium (d) None of the above

16 When the debenture are issued at discount. Amount of Discount is recorded as: (1)
(a) Revenue loss (b) Capital Loss.
(c) As a Written off. (d) Either (a) or (b)

17 Anish and Antesh were partner in the ratio of 2:3 with capital of Rs.1,00,000 and Rs.80,000 respectively. (3)
Business required fund to their working capital of Rs.2,00,000. On Sept.30, 2022 for that amount Anish
provided advance of Rs.1,20,000 and for the remaining amount they introduced Deepak as a new partner for
⅓ share and he was guaranteed by both the partner for the minimum profit of Rs.30,000 p.a. for first five
years. As per the partnership deed interest on capital will be allowed @ 8% p.a..
At the end of first year partnership business incurred profit of Rs.9,990 before the any of the above
adjustment made.
Prepare Profit and Loss Appropriation A/c and show your workings clearly.
OR
On April 1, 2023 the balance of the capital account of Reena and Rishi were stood with Rs.2,00,000 and
Rs.3,00,000 each. The partner of a firm distributed the profits of March 31, 2023 of Rs.1,00,000 in their
capital ratio without applying following adjustments:
a) Reena and Rishi were entitled to Interest on capital @ 10% p.a.
b) Raja was a Manager, His commission at 10%.
c) Profits were to be shared by partner in the ratio of 3:2.
Pass necessary journal entry for the above adjustments in the books of the firm.
18 A, B and C were partners sharing profits and losses in the ratio of 3:2:1. With effect from 1st April, 2022 (3)
they agree to share profits equally. For this purpose, goodwill was valued at two year’s purchase of the
average profit of last three years which were as follows:
Year ending on 31st March, 2019 Rs. 50,000 (Profit)
Year ending on 31st March, 2020 Rs. 1,24,000 (Profit)
Year ending on 31st March, 2021 Rs. 1,80,000 (Profit)
Year ending on 31st March, 2022 Rs. 70,000 (Loss)
On Oct.1, 2020 a Delivery Van costing Rs. 50,000 was purchased and debited as Revenue expenses,
on which depreciation was charged @ 20% p.a by reducing balance method. The firm was also paid an
annual insurance premium of Rs.25,000 which had already been charged to Profit and Loss Account for all
the years.
You are required to calculate the amount of Goodwill of the firm along with the working notes.

19 Shreya Infrastructure Ltd. acquired a business of Sumit Chemicals Ltd. by issuing Rs.35 lakh equity shares (3)
of Rs. 20 each at a premium of 25% and accepting a bill equal to the amount one by fifth of nominal value
of equity shares. Sumit Chemical had following assets and liabilities:
Building Rs.24,00,000; Machinery Rs.22,50,000. Bills Receivables Rs.9,50,000; Sundry
Creditors Rs. 2,25,000 and Bank Loan Rs.9,00,000.
Pass necessary Journal Entries in the Books of Shreya Infrastructure Ltd.
OR
Prime Solution Limited was registered with a capital of Rs.1,00,00,000 represented by equity shares of Rs.50
each. It issued a prospectus on January 30, 2023 for inviting application for 75,000 equity shares at premium
of 20% payable as follows:
On application: Rs.35 (including Rs.6 premium)
On allotment : Balance of amount
Public subscribed for 80,000 equity shares. All installment were received.
Show the information under the heading of “Share holder Funds” in the Balance Sheet of Prime solution
Ltd. as per Schedule III of Companies Act 2013 & Prepare necessary Notes to account for the same.

20 Mittal Machines Ltd. issued 50 crore 6% Debenture of Rs.5000 each at a premium of 5% redeemable at (3)
premium of 10% on April 1, 2023. Public subscribed for 65 crore debentures. Pass necessary Journal entry
at the time of issue.

21 Rajan and Suman were partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet as at (4)
March 31, 2023 was as follows:

Liabilities Amount Assets Amount

Creditors 25,000 Goodwill 15,000
General Reserve 5,000 Building 45,000
Capitals: Plant 30,000
Rajan 25,000 Cash 15,000
Suman 50,000 75,000
105,000 105,000

From April 1, 2023 partner decided to share future profit in the ratio of 4:1. They decided on the
following terms:
i) The Goodwill of the firm has been valued at Rs.30,000.
ii) General Reserve will remain show in the new Balance sheet.
iii) Capital of the partners will remain same in their proportion to new profit-sharing ratio, current account
will be opened for this purpose.
Give necessary Journal entries of the new firm.
22 Amit, Bimal and Chandan were partners in a trading firm. The firm had a fixed total capital of Rs.1,20,000 (4)
held by all the partners in a ratio of 1:2:3. Under the partnership deed the partners were entitled to:
(i) Amit and Bimal to a salary of Rs.3,600 and Rs.3,200 per month respectively.
(ii) In the event of death of a partner, Goodwill was to be valued at 2 years purchase of the average
profits of the last 3 years.
(iii) Profit upto the date of the death based on the profits of the previous year. Partners were to be
charged interest on drawings at 5% p.a. and allowed interest on capitals at 6% p.a.
Bimal died on January 1, 2023. His drawings upto the date of death were Rs.4,000 and the interest
thereon was Rs.120. The profits for the three years ending March 31st 2020, 2021 and 2022 were Rs.42,400;
Rs.6,400 (Dr.) and Rs.18,000 respectively.
Prepare Bimal’s Capital Account to calculate the amount to be paid to his executors
OR
David and John were partners in a firm sharing profits in 4:1 ratio. David died three months after the date of
the last balance sheet. According to the partnership deed, legal representative of deceased partner were
entitled to the following payment:
(i) His capital Rs.3,00,000 as per the last balance sheet.
(ii) Interest on capital @12% per annum upto the date of death.
(iii) His share of profits to the date of death calculated on the basis of the average profits of last three
years. The net profits of the last three years were Rs.2,00,000; Rs.3,00,000 and Rs.4,00,000.
On July 1, 2022 David executor was paid Rs.24,000 in cash and balance will be transferred to his
Loan account which will be paid in 2 equal Half yearly installments with interest @10% p.a.
Prepare David’s Executor and His Executor’s Loan Account till the final payment made.
23 Aman, Anupam and Devendra were partners sharing profits and losses in the ratio of 2:3:5. On March 31, (6)
2023 their Balance sheet was:
Liabilities Amount Assets Amount
Capitals: Cash 18,000
Aman 36,000 Bills Receivable 14,000
Anupam 44,000 Stock 44,000
Davendra 52,000 Debtors 42,000
Creditors 64,000 Machinery 94,000
Bills Payable 22,000 Goodwill 20,000
General Reserve 14,000
2,32,000 2,32,000
They decided to admit Bavesh into the partnership for 2/5 share on the following terms:
a) Machinery is to be overvalued to Rs.14,100.
b) Stock is to be revalued at Rs.48,000.
c) It is found that the Creditors included a sum of Rs.12,000 which was not to be paid.
d) Outstanding Rent is Rs.1,900.
e) Bavesh is to bring in Rs.6,000 as goodwill and sufficient capital in cash for a 2/5th share in the total
capital of the firm.
Prepare necessary accounts and the new Balance Sheet on the admission of a new partner.
OR
Following is the Balance sheet of Annu, Binnu & Chinnu as at 31st March 2023, who share profits & losses
in the ratio of 2:1:1.
BALANCE SHEET
Liabilities Amount Assets Amount
Capitals Land & Building 2,00,000
Annu 2,00,000 Machinery 3,00,000
Binnu 3,00,000 Stock 1,00,000
Chinnu 2,00,000 7,00,000 Debtors 1,10,000
General reserve 35,000 Less: Prov. For d/d 10,000 1,00,000
Workmen’s comp. Reserve 15,000 Cash at Bank 1,00,000
Sundry creditors 50,000
8,00,000 8,00,000
 On the same date Chinnu gave a notice for her retirement which was agreed upon. The other terms
which were agreed on retirement were:
(a) Land & Building is to be appreciated by 30%.
(b) Machinery to be depreciated by 20%.
(c) There are bad debts of 17,000.
(d) Goodwill of the firm was valued at 2,80,000 & Chinnu’s share of goodwill to be adjusted against
the capital account of continuing partners capital accounts.
(e) The total capital of the new firm will be same as before & will be new profit sharing ratio of 4:3
adjustment will be made in cash.
Prepare Revaluation account, Partners’ capital Accounts & Balance Sheet of the firm after Chinnu’s
retirement.

24 Ram, Shyam and Mohan were partners sharing profits in the ratio of 2 : 2: 1. The Balance Sheet on March (6)
31, 2023 was as follows:
Liabilities Amount Assets Amount
Bank Loan 23,000 Other Sundry Assets 2,34,000
Creditors 32,000 Furniture 22,000
Capitals: Customers 2,48,400
Ram 2,55,000 Less : Provision 2,400 2,46,000
Shyam 2,20,000 Stock 35,600
Mohan 34,000 Cash 26,400
5,64,000 5,64,000
When they dissolved the firm. It was agreed that :
a) Ram to take over furniture at Rs.16,000 and debtors amounting to Rs.2,40,000 at Rs.2,34,400 and the
creditors of Rs.32,000 were to be paid by him at this figure.
b) Shyam is to take over all stock for Rs.34,000 and some sundry assets at Rs.1,44,000 (being 10% less
than the book value)
c) Mohan to take over remaining sundry assets at 80% of the book value and assume the responsibility
of discharge of loan together with accrued interest of Rs.4,600.
d) The expenses of realization were Rs.5,400. The remaining debtors were sold to a debt collecting
agency at 50% of the value.
Prepare necessary accounts to close the books of the firm.
25 Vinod Steels Limited issued 80,000 Equity Shares of Rs.10 each at a premium of Rs.5 per share, payable as (6)
follows:
On Application........................ Rs.8 per share (including Premium of Rs.4)
On Allotment........................... Balance of installments
Issue was oversubscribed by 80,000 equity shares and a pro-rata allotment was made as follows:
(a) Applicants of 20% shares Allotted Full
(b) Applicants of 30% shares Allotted 40% of applicants
(c) Applicants of 30% shares Allotted 60% of applicants
(d) Remaining applicants Refuse
Excess applications money is adjusted in further installments. All amounts due were received except the
allotment from:
Mr. Sohan who allotted 500 shares (belong to group-A) & Mr. Ram who had applied for 2,400 shares (out
the group-C). All of their shares were forfeited. Half of the All forfeited shares were reissued for Rs.7 per
share fully paid up. Give journal entries.
OR
Pass necessary Journal entries in the following Cases:
(A) Vinod Limited forfeited 1,000 shares of Rs.20 each (Rs.18 called). On these shares, the first call of Rs.6
per share was not received and the final call of Rs.2 per share was yet to be called. These shares were
subsequently re-issued at Rs.10 per share.
(B) Vinod Limited forfeited 300 shares of Rs.10 each issued at a premium of Rs.3 per share, for the non-
payment of the first call money of Rs.3 per share (including a premium of Rs.2). The final call of Rs.2 per
share has not been made. 200 forfeited shares were reissued at Rs.1,500 fully paid. Give journal entries.
26 (A) Mohan Chemicals Ltd had outstanding Rs.500,000 9% Debentures of Rs.100 each on April 1, 2022. (6)
Company issued additional 6000 9% debentures of Rs.100 each at discount of 5% redeemable after 5 years
at a premium of 15% on July 1, 2022. Interest were paid on March 31 every year. You are required to pass
necessary journal entries for the year 2022-23.
(B) It raised a bank loan of Rs.5,00,000 from State Bank of India on primary security of Building of
Rs.8,00,000. It issued 2,000 9%Debentures of Rs.100 as Collateral Security along with primary security.
Prepare Company’s balance sheet if company decides to record the collateral security.

Part: B (Analysis of Financial Statements)

27 Given below are two statements, one labelled as Assertion (A) and other labelled as Reason (R) : (1)
Assertion(A):- when operating ratio is given operating profit will be ascertain.
Reason(R):- Operating Ratio = Revenue from Operations- Operating Profit
a) Assertion (A) and Reason(R) are correct but the Reason(R) is not the correct explanation of
Assertion (A)
b) Both Assertion(A) and Reason (R) are correct and Reason(R) is the correct explanation of the
Assertion(A).
c) Only Assertion(A) is correct.
d) Assertion (A) is not correct but the Reason(R) is correct.
OR
A transaction involving increase in both Current Ratio and Quick ratio is:
(a) Sale of Equipment on Long term deferred payment system.
(b) Cash Received from Debtors.
(c) Cash payment of a Current Liability.
(d) Goods purchased on credit basis.

28 An operating cycle is the time between the _____________. (1)

(a) Production and Sales
(b) Procuring of raw material and production of goods.
(c) financing and selling of products.
(d) Procuring of raw material and realization into cash and cash equivalent.

29 State Bank of India issued Rs.10,00,000 6% Debentures of Rs.100 each. The amount of received will (1)
be shown as:
(a) Operating Activities (b) Investing Activities
(c) financing Activities (d) Cash and Cash Equivalents

30 Given below are two statements, one labelled as Assertion (A) and other labelled as Reason (R) : (1)
Assertion(A):- Declaration of Proposed Dividend (final) does not result in flow of Cash.
Reason(R):- It does not affect cash of the company since there is no payment or receipt in cash.
(a) Assertion (A) and Reason(R) are correct but the Reason(R) is not the correct explanation of
Assertion (A)
(b) Both Assertion(A) and Reason (R) are correct and Reason(R) is the correct explanation of the
Assertion(A).
(c) Only Assertion(A) is correct.
(d) Assertion (A) is not correct but the Reason(R) is correct.
OR
A company issued Rs.35,000 9% Debentures of Rs.100 each at 10% Discount. These debentures will be
redeemed at 5% Premium at the end of 4 years. The balance in Securities Premium Account as on the date
of Issue was Rs.6,000. How this transaction will be reflected in the financing activities of Cash Flow
Statement?
(a) Cash used in financing activities Rs.35,000
(b) Cash generated from financing Activities Rs.35,000
(c) Cash used in financing activities Rs.31,500
(d) Cash generated from financing Activities Rs.31,500
31 Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of a (3)
company as per Schedule III, Part I of the Companies Act, 2013 :
(a) Public Deposits (b) Unclaimed Dividend
(c) Calls in Arrear (d) Livestock
(e) Computer Software (f) Loose Tools

32 Prepare a Comparative Statement of Profit and Loss of ‘Star Finance Limited.’ for the year March 31, (3)
2023 from the following information:
Particulars Note No. 2022-23 2021-22
Revenue from Operations 5,00,000 4,50,000
Purchase of Stock-in-trade 2,20,000 3,00,000
Changes in Inventories (80,000) 1,20,000
Other Expenses 30,000 56,000
Other Incomes 50,000 60,000
Tax Rate 50% 40%
33 (a) A company had a current ration of 2.5:1 and liquid ratio of 1.5:1. Working capital of (4)
Rs.3,00,000. Its Inventory Turnover ratio was 6 times.
(b) You are required to calculate Revenue from operation when goods are sold at a profit of
25%.

34 From the following Balance Sheet of DM Security ltd. as at March 31, 2023 and March 31, 2022. (6)
Prepare Cash Flow Statement as per Accounting Standard-3 (Revised):

Balance Sheet of SHANTI Ltd. as at 31st March, 2023

Particulars Note 31.3.2023 31.3.2022
No.
I - EQUITY AND LIABILITIES:
1. SHAREHOLDERS’ FUNDS
a) Equity Share Capital 15,00,000 12,00,000
b) Reserves and Surplus 1 2,50,000 1,90,000
2. Non-Current Liabilities
a) Long Term Borrowings 2 10,50,000 5,10,000
3. Current Liabilities
a) Short term Borrowings 3 80,000 90,000
b) Trade Payable 2,00,000 1,70,000
c) Short term Provisions 4 60,000 40,000

TOTAL 31,40,000 22,00,000

II - ASSETS:
1. NON-CURRENT ASSETS:
i) Property, Plant & Equip. & Intangible
a) Property, Plant & Equipment 5 12,00,000 9,00,000
b) Intangible Assets 95,000 1,00,000
2. CURRENT ASSETS:
a) Current Investments 8,65,000 2,00,000
b) Inventories 2,00,000 7,00,000
c) Trade Receivables 6,40,000 1,80,000
d) Cash and Cash Equivalents 1,40,000 1,20,000

TOTAL 31,40,000 22,00,000

Notes to Accounts:
Note Particulars 31.3.2022 31.3.2023
No.
1 Reserve and Surplus
Surplus i.e. Balance in Stat. of P&L 1,90,000 2,05,000
Securities Premium Reserve - 65,000
2 Long Term Borrowings
9% Debentures 5,10,000 10,50,000
3 Short Term Borrowings
10% Bank Overdraft 90,000 80,000
4 Short Term Provision
Provision for Taxation 40,000 60,000
5 Property, Plant and Equipment
Machinery 9,00,000 13,00,000
Less- Accumulated Depreciation (2,00,000) (3,00,000)
7,00,000 10,00,000
Equipment 2,00,000 2,00,000
Total 9,00,000 12,00,000

Additional Information:
(i) A piece of machinery of Rs.1,60,000 (Costing) was sold at a profit of 15%.
(ii) Depreciation charged on machinery during the year by Rs.1,40,000 and on equipment
by Rs.25,000.
(iii) Provision for taxation was made by Rs.60,000.
(iv) Interest on bank overdraft was paid by Rs.9,000. Additional debentures were issued on
July 1, 2022.