KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION

FIRST PRE-BOARD EXAM 2023-24

SUBJECT- ACCOUNTANCY (055)
CLASS XII (2023-24)
Time Allowed: 3 Hours M.M: 80

Suggestive Marking Scheme – Accountancy XII

1. (a) 1-1/5 = For 4/5th share combined capital of A and B is ₹ 70,000 1
Total Capital will be 70,000 X 5/4 = ₹ 87,500 and its one fifth share = ₹ 17,500
2. (c) A is true but R is false 1
Explanation: Loan taken from spouse or relative of a partner is shown on the credit side of realisation
account.
3. (d.) None of these as Answer will be ₹ 4, 20,000. 1
OR
(a) Discount on Issue of debentures A/c
4. (d) OR 1
(a) Revaluation Account
5. (b) ₹ 79 1
6. (b) ₹ 6,500 OR 1
(d) All of the above
7. (d) Assertion is false, reason is true. 1
8. (a) Opening capital ₹ (8, 00,000) + Salary ₹ (30,000) + Int. On Capital ₹ (40,000) +Profit ₹ (65,000) 1
= ₹ 9,35000
Profit = ₹ 3,45,000 - ₹ 60,000 - ₹ 90,000 = ₹ 1,95,000 divide into 2:1 i.e. ₹ 1,95,000/3= ₹ 65,000
OR
(a) One–third of ₹ (70,000 - 25,000) = ₹ 45,000/3 = ₹ 15,000.
9. (c) ₹ 84,000 1
10. (b) ₹ 42,364 1
11. Option (b) is correct. 1
Explanation: Net amount of loss transferred to:A's Capital Account: ₹ 87,000
C's Capital Account: ₹ 29,000
12. (b) Krishan Ltd. Dr. 20,00,000 1
To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,270
To Bank A/c 6,00,030
(Being settlement of amount due to vendors)

13. (d) Assertion is false, reason is true. 1

14. (b) ₹ 15,000 Or (a) ₹ 24,000. 1
15. (b) ₹ 40,000. 1
Or
(c) Rent paid to partners
16. (c) ₹ 2,16,000 1
17. Date Particulars L.F Dr (₹) Cr (₹) 3
Anshu’s Capital A/c Dr. 9,000
Chandu’s Capital A/c Dr. 21,000
To Baban’s Capital A/c 30,000
(Baban’s share of Goodwill debited to the amounts of
continuing partners in their gaining ratio)
 Gaining Ratio is 3:7

18. Date Particulars LF (₹) Dr. (₹) Cr

Radhika’s Capital A/c Dr. 8,000

Bani’s Capital A/c Dr. 12,000
Chitra’s Capital A/c Dr. 4,000
To Profit & Loss A/c 24,000
(Being undistributed loss trf to Partners’ Capital A/c)

General Reserve Dr. 1,44,000

To Radhika’s Capital A/c 48,000
To Bani’s Capital A/c 72,000
To Chitra’s Capital A/c 24,000
(Being General Reserve distributed to Partners’ Capital A/c)

Radhika’s Capital A/c Dr. 30,000

To Bani’s Capital A/c 30,000
(Being adjustment entry made for goodwill)

Land A/c Dr. 1,80,000

To Revaluation A/c 1,80,000
(Being Land revalued)

Revaluation A/c Dr. 1,80,000

To Radhika’s Capital A/c 60,000
To Bani’s Capital A/c 90,000
To Chitra’s Capital A/c 30,000
(Being gain on Revaluation transferred to Partners Capital A/c)

OR
Profit and Loss Appropriation Account
(for the year ended 31st March, 2020)
Dr. Cr.
Particulars (₹) Particulars (₹)
To Interest on Capital: By Profit and Loss A/c (Net Profit) 12,600
Arun’s Current A/c – 7,200 By Interest on Drawings:
Arora’s Current A/c – 9,600 16800 Arun’s Current A/c - 150
Arora’s Current A/c - 300 450
By Net Loss transferred to Current A/c:
Arun - 2,344
Arora - 1,406 3,750
16,800 16,800

19. (i) Computers A/c Dr. 3,00,000

Software A/c Dr. 5,00,000
To C. Ltd 8,00,000

(ii) C Ltd Dr. 8,00,000

Discount on issue of debentures A/c Dr. 80,000
To Bank A/c 80,000
To 7% Debentures A/c 8,00,000
 (iii) Securities Premium Reserve A/c Dr. 40,000
Capital Reserve A/c Dr. 25,000
Statement of Profit and Loss A/c Dr. 15,000
To Discount on issue of Debentures A/c 80,000

7,20,000/90 = 8,000, 7% Debentures

OR

(i) Sundry Assets A/c Dr. 15,00,000

Goodwill A/c Dr. 3,68,500
To Sundry Liabilities A/c 5,00,000
To P Ltd 13,68,500

(ii) P Ltd Dr. 13,68,500

To Bills Payable A/c 25,500
To Equity Share Capital A/c 10,74,400
To Securities Premium Reserve A/c 2,68,600

Date Particulars L.F Dr Cr

2018 31 Bank A/c Dr. -- 10,000
20 March
To Y Capital A/c
10,000
(Amount to be brought in by Y)

Z’s Capital A/c Dr. 10,000

To Bank A/c 10,000
(Amount to be Withdrawn by Z)

21
Dr. Realisation Account Cr.
Particulars (₹) Particulars (₹)
To Sundry Assets By Sundry Liabilities
Stock - 24,000 Trade Creditors - 42,000
Debtors - 19,000 EmpProv. Fund - 60,000
Furniture - 40,000 Mrs. Ashish's Loan - 9,000 1,11,000
Plant - 2,10,000 By Investment Fluctuation Reserve 4,000
Investment - 32,000 3,25,000 By Ashish's Capital A/c (Furniture) 38,000
By Bank A/c (Assets):
To Ashish's Capital A/c 9,000 Debtors 18,500
(Mrs. Ashish's Loan) Plant 2,31,000
To Kanav's Capital A/c 12,000 Stock 15,840 2,65,340
(Remuneration) By Kanav's Capital A/c (Stock) 7,680
To Bank A/c (EPF) 60,000

To Partners' Capital A/c (Gain):

Ashish A/c - 12012
Kanav A/c - 8008 20,020
4,26,020 4,26,020
22. 4
Balance Sheet (Extract) as at
Particulars Note No Amount
I. EQUITY AND LIABILITIES
(1) Shareholder’s Funds 1
(a) Share Capital 7,78,000

Notes to Accounts
Note 1:

Particulars Details Amount

1. Share Capital
Authorised Capital
2,00,000 Equity shares of ₹ 10 each 20,00,000
Issued Capital
80,000 Equity shares of ₹ 10 each 8,00,000
Subscribed capital
Subscribed and fully paid up 7,40,000
74,000 equity shares of ₹ 10 each
Subscribed but not fully paid-up
4,000 equity shares of ₹ 10 each 40,000 32,000
Less: calls in arrears (4,000 x ₹ 2) (8,000)
Add Forfeited Shares 6,000
2,000 equity shares@ ₹ 3 7,78,000

Books of Guru Ltd.

Journal
Date Particulars LF Dr. (₹) Cr. (₹)
23. Bank A/c Dr. 10,00,000
To Equity Share Application and Allotment A/c 10,00,000
(Being application and allotment money received
with premium)
Equity Share Application and Allotment A/c Dr. 10,00,000
To Equity Share Capital A/c 4,00,000
To Calls-in-Advance A/c 1,00,000
To Securities Premium Reserve Ac 4,00,000
To Bank A/c 1,00,000
(Being application and allotment money transferred
to share capital)

Equity Share First and Final Call A/c 8,00,000

To Equity Share Capital A/c 4,00,000
To Securities Premium Reserve A/c 4,00,000
(Being call money due with premium)
 Bank A/c Dr. 6,86,000
Calls-in-Advance A/c 1,00,000
To Equity Share First and Final Call A/c 7,86,000
OR
Bank A/c Dr. 6,86,000
Calls in Arrears A/c Dr. 14,000
Calls-in-Advance A/c Dr. 1,00,000
To Equity Share First and Final Call A/c 8,00,000
(Being call money received)
Equity Share Capital A/c Dr. 16,000
Securities Premium Reserve A/c 8,000
To Share Forfeiture A/c 10,000
To Equity Share First and Final Call A/c 14,000
(Being 1600 shares forfeited)
Bank A/c Dr. 14,400
Share Forfeited A/c 1,600
To Equity Share Capital A/c 16,000
(Being shares reissued)
Share Forfeited A/c Dr. 8,400
To Capital Reserve A/c 8,400
(Being balance of share forfeited transferred to
capital reserve A/c)

Or

Date Particulars LF Dr. (₹) Cr. (₹)

Bank A/c Dr. 24,00,000
To Equity Share Application A/c 24,00,000
(Being application money received on 1,20,000
shares)
Equity Share Application A/c Dr. 24,00,000
To Equity Share Capital A/c 12,00,000
To Securities Premium Reserve A/c 4,00,000
To Equity Share Allotment A/c 4,00,000
To Bank A/c 4,00,000
(Being application money transferred to share
capital, securities premium reserve, share
allotment and the balance refunded)
Equity Share Allotment A/c Dr. 12,00,000
To Equity Share Capital A/c 8,00,000
To Securities Premium Reserve A/c 4,00,000
(Being allotment money due on 80,000 shares)
Bank A/c Dr. 7,60,000
Calls-in-Arrears A/c 40,000
To Equity Share Allotment A/c 8,00,000
(Being allotment money received)
Equity Share First Call A/c Dr. 1200000
To Equity Share Capital A/c 1200000
(Being first call money due on 80,000 shares)
 Bank A/c Dr. 12,10,000
Calls-in-Arrears A/c (First call) 30,000
To Equity Share First Call A/c 12,00,000
To Calls-in-Arrears A/c (Allotment) 40,000
(Being first call money received)
Equity Share Capital A/c Dr. 80,000
To Share Forfeiture A/c 50,000
To Calls-in-Arrears A/c 30,000
(Being Sahaj's shares reissued for ₹ 60 per share)
Bank A/c Dr. 1,20,000
To Equity Share Capital A/c 1,00,000
To Securities Premium Reserve A/c 20,000
(Being Sahaj's shares reissued for ₹ 60 per share)
Share Forfeiture A/c Dr. 50,000
To Capital Reserve A/c 50,000
(Being balance in share forfeiture account
transferred to capital reserve)

Date Particulars LF Dr. (₹) Cr. (₹)

24. Outstanding Expenses A/c Dr. 18,000
To Bank A/c 18,000
(Being outstanding expenses paid off)
Bad Debts A/c Dr. 5,000
To Debtors A/c 5,000
(Being bad debts written off)
Provision for Doubtful Debts Ac Dr. 5,000
To Bad Debts A/c 5,000
(Being bad debts adjusted through provision for
doubtful Debts A/c)
Revaluation A/c Dr. 74,500
To Provision for Doubtful Debts A/c 2,500
To Machinery A/c 18,000
54,000
To Building A/c
(Being decrease in value of assets recorded)
Revaluation A/c Dr. 5,000
Workmen Compensation Reserve A/c Dr. 55,000
To Provision for Workmen Comp. Claim A/c 60,000
(Being claim on account of workmen
compensation provided in the books
Raman's Capital Ac Dr 59,625
.Aman's Capital A/c Dr. 19,875
To Revaluation A/c 79,500
(Being Revaluation loss distributed between
old partners)
 Bank A/c Dr. 2,20,000
To Raman’s Capital A/c 2,00,000
To Premium for Goodwill Ac 20,000
(Being capital and goodwill brought by Raman)
Premium for Goodwill A/c Dr. 20,000
To Raman's Capital A/c 15,000
To Aman's Capital A/c 5,000
(Being premium for goodwill distributed between
old partners in sacrificing Ratio)

OR

Dr. Revaluation A/c Cr.

Particulars (₹) Particulars (₹)
To Prov. for Doubtful Debts A/c 3,100 By Land and Building A/c 12,000
To Furniture A/c 8,000
To Gain on Revaluation trf to
Capital A/c
A - 300
B - 300
C - 300 900
12,000 12,000

Dr. Partners' Capital A/c Cr.

Particulars A B C Particulars A B C
To B's Capital A/c 10,000 By Balance b/d 60,000 40,000 32,000
(Goodwill) By RevaluationA/(Gain) 300 300 300
To B's Loan A/c 31,800 By A’s CapitalA/c (G/w) 10,000
To Bank A/c (BalFig.) 20,000
To Balance c/d 51,800 33,800 By WCR 1,500 1,500 1,500

61,800 51,800 33,800 61,800 51,800 33,800

Dr. Bank A/c Cr.

Particulars (₹) Particulars (₹)
To Balance b/d 20,000 By B's Capital A/cBy 20,000
To Furniture A/c (Sale) 20,000 By Balance c/d 20,000
40,000 40,000
25. Maheep dues to be transferred to executors = ₹ 1,15,000 + ₹ 5,000 + ₹ 20,000 + ₹ 60,000 – ₹ 20,000 6

= ₹ 1,80,000

Dr. Maheep’s Executors A/c Cr.

Date Particulars LF Amount Date Particulars LF Amount

(₹) (₹)
31/03/21 To Balance c/d 1,93,500 30/06/20 By Maheep’s Cap. A/c 1,80,000
31/03/21 Interest (9 months) 13,500
1,93,500 1,93,500
30/06/21 To Bank (Ist Installment) 78,000 01/04/21 By Balance b/d 1,93,500
31/03/22 To Balance c/d 1,29,000 30/06/21 By Interest (3 months) 4,500
31/03/22 By Interest (9 months) 9,000
2,07,000 2,07,000
30/06/22 To Bank (IInd Installment) 72,000 01/04/22 By Balance b/d 1,29,000
31/03/23 To Balance c/d 64,500 30/06/22 By Interest (3 months) 3,000
31/03/23 By Interest (9 months) 4,500
1,36,500 1,36,500
30/06/23 To Bank (IIIrd Installment) 66,000 01/04/23 By Balance b/d 64,500
30/06/23 By Interest (3 months) 1,500
66,000 66,000

26. (a) Total payment to vendor ₹ 2,52,000 6

1.5 mark for entry and 1.5 mark for calculation.
(b) 1.5 mark for each entry.

Part – B (Analysis of Financial Statements)

27 Option (c) is correct. 1
Explanation: Solvency ratio are calculated to determine the ability of the business to service its debt in
the long run.
OR
Option (d) is correct.
Explanation: Trade Receivables Turnover Ratio= Net Credit Revenue from Operations/Average Trade
Revenue.
28. (a) To measure the financial strength 1
29. (c) Sale of Machinery of the book value of ₹ 74,000 at a loss of ₹ 9,000. 1
Or
A. No effect
30. (c) Outflow ₹ 58,000. 1
31. S.No. Item Heading Sub-heading 3
i. Loose Tools Current Assets Inventories
ii. Loan repayable on demand Current Liabilities Short Term Borrowings
iii. Provision for Retirement Non-Current Long Term Provisions
benefits Liabilities
iv. Pre-paid Insurance Current Assets Other Current Assets
v. Capital advances Non-Current Assets Long Term Loans and
Advances
vi. Shares in Listed Companies Non-Current Assets Non-Current Investments
32. ( i) Credit Revenue = X 3
Cash Revenue = 40X/100
40X/100 + X= ₹ 8,40,000
X = ₹ 6,00,000
Credit Revenue from Operations = ₹ 6,00,000
Receivables Turnover Ratio=Net Credit Revenue from Operations/Average Trade Receivables
₹ 6,00,000/(₹ 1,20,000 + ₹ 2,00,000/2 = 3.75
(ii) Interest Coverage Ratio = Net Profit before Interest and Tax /Interest Obligation
Interest Coverage Ratio = ₹ 7,82,000
Net Profit before Interest and Tax = ₹ 7,82,000
Interest Obligation = ₹ 72,000
₹ 7,82,000/72,000 = 10.86 times
OR
Total Asset to Debt Ratio = Total Assets/Long-term debts
Total Assets Investment (₹ 1,20,000) + Land (₹ 10,00,000) + Trade Receivables (₹3,00,000) +
Cash and Cash Equivalents (₹ 1,80,000)
= ₹ 16,00,000
Long-term Debt =
Capital Employed (₹ 22,50,000) - Equity Share Capital (₹ 10,50,000) - Capital Reserve (₹ 2,60,000) +
Surplus (Balance in Statement of Profit & Loss) (₹ 35,000) = ₹ 9,75,000
Total Asset to Debt Ratio = ₹ 16,00,000/9,75,000 = 1.64:1
4
33. Common Size Statement of Profit & Loss
Particulars 2022- 2021-22(₹) % on revenue from % on revenue from
23(₹) operations (2021- operations (2022-23)
22)
Revenue from 8,00,000 10,00,000 100 100
operations
Less :- Expenses
Cost of revenue 3,20,000 3,00,000 4 30
0
Other Expenses 2,20,000 2,60,000 27.5 26
Total Expenses 5,40,000 5,60,000 67.5 56
Profit Before Tax 2,60,000 4,40,000 32.5 44
Less:- Tax 1,30,000 2,20,000 16.25 22
Profits after Tax 1,30,000 2,20,000 16.25 22

OR
Comparative Statement of Profit & Loss

Particulars 2021-22 2022-23 Absolute Proportionate

(₹) (₹) Change (in₹) Change (in %)
A. Revenue from operations 8,00,000 10,00,000 2,00,000 25
B. Add: Other Income 1,50,000 2,20,000 70,000 46.67
C. Total Revenue (A+B) 9,50,000 12,20,000 2,70,000 28.42
D. Less: Cost of materials consumed 3,00,000 4,00,000 1,00,000 33.33
Change in inventories of finished 1,00,000 2,00,000 1,00,000 100
goods and workin progress
Other Expenses 80,000 1,50,000 70,000 87.5
Total Expenses 4,80,000 7,50,000 2,70,000 56.25
E. Profits before Tax (C-D) 4,70,000 4,70,000 -- --
F. Tax Rate 1,41,000 1,41,000 -- --
G. Profits after Tax (E-F) 3,29,000 3,29,000 -- --
 Cash Flow Statement for the year ended March 31, 2023
Particulars Details Amount (₹) 6
34. Cash from Operating Activities
Profits before Tax and Extraordinary Activities 1,07,000
Add :- Non-Cash and Non-Operating Expenses
Depreciation on Plant and Machinery 1,20,000
Interest on Debentures 10,000
Cash from Operating Activities before working capital changes 2,37,000
Increase in Trade Payables 18,000
Decrease in Trade Receivable 1,74,000
Increase in Inventory (2,07,000)
Cash from Operations 2,22,000
Less :- Tax Paid (15,000)
Cash from Operating Activities (A) 2,07,000
Cash from Investing Activities
Sale of Investments 40,000

Purchase of Investments (70,000)

Purchase of Plant and Machinery (4,05,000)
Cash from Investing Activities (B) (4,35,000)
Cash from Financing Activities
Issue of Shares 2,00,000
Issue of Debentures 50,000
Interest on Debentures (10,000)
Cash from Financing Activities (C) 2,40,000
Net Cash Flow during the year (A+B+C) 12,000
Add :- Opening Cash and Cash Equivalents 33,000
Closing Cash and Cash Equivalents 45,000
Working Notes :-
Plant and Machinery A/c
Particulars Amount (₹) Particulars Amount (₹)

To Balance b/d 4,90,000 By Depreciation A/c 1,20,000

To Bank (Purchase) 4,05,000 By Balance c/d 7,75,000
8,95,000 8,95,000
Investments A/c
Particulars Amount Particulars Amount (₹)
(₹)
To Balance b/d 50,000 By Bank A/c (sale) 40,000
To Gain on Sale (Capital Reserve) 10,000 By Balance c/d 90,000
To Bank (Purchase) 70,000
1,30,000 1,30,000
Provision for Tax A/c
Particulars Amount (₹) Particulars Amount (₹)
To Bank (Paid) 15,000 By Balance b/d 28,000
To Balance c/d 30,000 By Statement of Profit and Loss 17,000
45,000 45,000
Net Profits after Tax and Extraordinary Items = 20,000
+ Transfer to General Reserve = 70,000
+ Provision for Tax = 17,000
= Net Profits before Tax and Extraordinary Items = 1,07,000
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