KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION

2ND Pre-Board Examination-2023-24

Subject- Accountancy (055)
Time Allowed: 3 Hours Class: XII Commerce Max. Marks: 80
(SET- 1)
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A & B.
3. Part - A has “Accounting for Partnership Firms and Companies”.
4. Part - B has “Analysis of Financial Statements”.
5. Question Nos. from 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions Nos. from 17 to 20 and 31 to 32 carries 3 marks each.
7. Questions Nos. from 21 to 22 and 33 carries 4 marks each
8. Questions Nos. 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 Marks
(Accounting for Partnership Firms and Companies)
1. Shekhar, a partner withdrew ₹ 5000 in the beginning of each quarter and interest on drawings 1
was calculated as ₹1500 at the end of accounting year on 31st March 2022. What was the rate of
interest on drawings charged?
(a) 6% p.a. (b) 8% p.a.
(c) 10 % p.a. (d) 12 % p.a.
2. Choose one of the correct alternatives given below: 1
Assertion (A) : Partnership deed is a legal document signed by all the partners.
Reason (R) : Any type of charitable institution running as a not- for- profit organization will not
be considered as a business.
(a) Both Assertion (A) & Reason (R) are True and Reason (R) is the correct explanation
of Assertion (A).
(b) Both Assertion (A) & Reason (R) are True and Reason (R) is not the correct
explanationof Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is true
3. The interest on partners’ capital account is credited to _______________, when the firm is 1
maintained fluctuating capital account.
(a) Interest account (b) profit and loss appropriation account
(c)Partners capital accounts (d) partners current account
OR
Pick the odd one out with respect to fixed capital A/c:
(a) Capital introduced (b) Capital withdrawn
(c) Interest on capital (d) None of the above
4. A debenture of ₹100 each, issued at ₹ 40 premium, to be redeemed at half of the premium 1
received on issue, out of which ₹ 70 (including ₹ 10 premium) was called up and paid up. The
uncalled amount will be___________.
(a) ₹30 (b) ₹ 20
(c) ₹ 40 (d) ₹ 80
OR

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 M ltd. issued 70,000, 6%Debentures of ₹ 10 each at certain rate of premium and to be redeemed
at 10% premium. At the time of writing off “loss on Issue of Debentures”, Statement of Profit
and Loss was debited with ₹ 28,000. At what rate of Premium, these debentures were issued?
(a) 10% ( b) 16%
(c) 6% (d) 4%
5. A and B were partners in a firm sharing profits. With effect from 1st April 2023 they agreed to 1
share profits in the ratio of 4:3. Due to change in profit sharing ratio, B’s gain or sacrifice was:
(a) gain 1/14 (b)sacrifice 1/14
(c) gain 4/7 (d) sacrifice 3/7
OR
If the goodwill of a firm was valued at ₹54000 on the basis of four-year purchase of super profit.
The capital employed of firm was ₹2,00,000 and the normal rate of return is 10%. The average
profit of that firm is:
(a) 23500 (b) 33500
(c) 20000 (d) 24500
6. During the course of dissolution of a firm, debtors appear at ₹ 60,000 and provision for doubtful 1
debts at ₹ 2500. If debtors amounting to ₹ 10,000 proved bad and remaining debtors realized at
90%, the amount credited to realization A/c will be:
(a) ₹ 45000 (b) ₹ 42750
(c) ₹54000 (d) none of these
7. A and B were partners in a firm sharing profits in the capital ratio. Their capitals were ₹ 2,00,000 1
and ₹ 1,00,000 respectively. Firm earned a profit of ₹21,000 during 2021-22. Interest on capital
was to be allowed at 10% p.a. if interest on capital is charge against profit, the amount of interest
on capital will be______.
(a) ₹20,000; ₹10,000 (b) ₹14,000; ₹7,000
(c) ₹10,000; ₹5,000 (d) none of these
8. A and B were equal partners. They decided to admit C as a new partner for ¼ share of profit. 1
Their balance sheet showed plant and machinery at ₹ 2,00,000, stock at ₹1,30,000 and debtors
at ₹ 1,45,000.
It was decided to re-valuate assets and reassess liabilities. Stock was revalued at ₹ 1,00,000,
₹5,000 debtors were bad and provision for doubtful debts @ 5% was to be provided.
If B’s share of loss on revaluation amounted to ₹ 26,000, the revalued value of plant and
machinery was__________.
(a) ₹ 2,09,750 (b) ₹ 1,64,000
(c) ₹ 1,80,000 (d) ₹ 1,90,000
OR
A, B and C were partners in a firm sharing profits in the ratio of 4:3:2. B died, his share of profit
was taken by A and C at ₹7200 (₹ 4000 paid by A ₹ 3200 paid by C). the new profit-sharing
ratio of A and C will be
(a) 17:10 (b) 15:12
(c) 19: 8 (d) none of these
9. A company Forfeited 400 shares of ₹10 each ( ₹7 called up), for the non-payment of ₹2 First 1
call. Out of these 300 shares were reissued at ₹6 per share as ₹ 7 paid up. What will the amount
transferred to Capital Reserve account:
(a) ₹1700 (b) ₹1,200
(c) ₹2,100 (d) ₹300
OR
M Ltd. forfeited 2,000 shares of ₹10 each (₹.8 called up), for non-payment of first call of ₹ 2 per
share. Out of these 1,500 shares were reissued for ₹10,500 as ₹ 8 paid-up. What is the amount to
be transferred to Capital Reserve?
(a) ₹4.500 ( b) ₹10,500
(c) ₹7,500 (d) ₹14,500

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10. Reserve capital is a part of: 1
(a) Paid up capital (b) Forfeited share capital
(c) Assets (d) Capital to be called up only on liquidation of company.
11. Shares issued by a company to its employees or directors in consideration of “intellectual 1
property rights” are called:
(a) Right equity shares (b) private equity shares
(c) sweat equity shares (d) bonus equity shares
12. Amount of First call is received in advance from the shareholders before it is actually called 1
up by the directors is:
(a) debited to calls in advance a/c. (b) credited to share allotment account.
(c) debited to first call a/c. (d) credited to calls in advance account.
13. Assertion (A) : Transfer to reserves is shown in P & L Appropriation Account. 1
Reason (R) : Reserves are charge against profit.
(a) (A) is correct but (R ) is wrong.
(b) Both (A) and (R ) are correct, but (R ) is not correct explanation of (A).
(c) Both (A) and (R ) are incorrect.
(d) Both (A) and (R ) are correct, and (R ) is correct explanation of (A).
14. Akshay, Ghanu and Chinu were partners. Chinu had been guaranteed a minimum profit of ₹ 8,000 1
by the firm. Firm suffered a loss of ₹5,000 during the year. Capital account of Ghanu was to
be______ by ₹_____.
(a) credited ₹ 6500 (b) debited ₹ 6500
(c) credited ₹ 1500 (d) debited ₹ 1500
15. A partner withdraws ₹ 40,000 each on 1st April and 1st October. Interest on drawings is charged 1
@ 6% p.a. on 31st March is to be_______.
(a) ₹4800 (b) ₹2400
(c) ₹3600 (d) ₹1200
16. Which is not related to “dissolution of partnership firm”? 1
(a) court’s intervention (b) settlement of assets and liabilities
(c)calculation of gaining ratio (d) payment of realization expenses
17. Suman, Vivek and Vinod were partners in a firm sharing profit and losses in the ratio of 5:3:2. 3
Suman retired on 1st April, 2022.After making all adjustments relating to revaluation, goodwill
and accumulated profits, etc. the capital accounts of Vivek and Vinod showed credit balances
of ₹3,60,000 and ₹1,40,000 respectively.
It was decided to adjust the capitals of Vivek and Vinod in their new profit-sharing ratio. Pass
necessary journal entries for bringing in or withdrawal of the necessary amounts in cash. Show
your working clearly.
18. Ajitesh and Pranav were partners sharing profits and losses equally. Ajitesh had let out his 3
property to the partnership firm where business was being carried out so it was decided that he
was provided with rent of ₹ 30,000 p.a. Pranav got a salary of ₹ 60,000 p.a. and Ajitesh got
commission @ 5% of net sales which during the year was ₹ 20,00,000. Profit for the year ended
March 2022 before providing for rent was ₹ 8,00,000.
Prepare Profit and Loss Appropriation Account for the year ending 31st March 2022.
OR
A, B and C were partners. Their capitals were ₹ 30,000; ₹ 20,000 and ₹ 10,000 respectively.
According to the partnership deed, they were entitled to an interest on capital @ 5% p.a. In
addition, B was also entitled to draw a salary of ₹ 500 per month. C was entitled to a commission
of 5% on the profits after charging the interest on capital , but before charging the salary payable
to B. The net profits for the year were ₹ 30,000, distributed in the ratio of their capitals without
providing for any of the above adjustments. The profits were to be shared in the ratio of 2:2:1.
Pass the necessary adjustment entry showing the workings clearly.

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19. Pratyush ltd. Forfeited 2000 shares of ₹ 10 each (fully called up), on which they had received 3
only ₹ 14000. 50 of the forfeited shares were reissued for ₹ 9 per share fully paid up.
Pass necessary journal entries for forfeiture and reissue of shares in the books of Pratyush Ltd.
OR
‘UZ’ ltd. purchased land & building from Eik machine ltd. For ₹ 6,90,000. Eik ltd was paid by
accepting a draft of ₹ 90,000 payable after three months and balance by issue of 6% debentures
of ₹ 100 each at a discount of 20%.
Pass necessary journal entries for the above transactions in the books of UZ ltd.
20. Total capital of the firm of Sakshi, Mehak and Megha was ₹ 1,00,000 and the market rate of 3
interest was 15%. The net profits for the last 3 years were ₹ 30,000; ₹ 36,000 and ₹ 42,000.
Goodwill is to be valued at 2 years purchase of the last 3 years super profit.
Calculate the amount of Goodwill of the firm.
21. ABC Ltd. was registered with capital of ₹ 1,00,00,000 divided into 1,00,000 equity shares of ₹ 4
100 each, The Company issued 42,500 equity shares of ₹100 each payable as ₹ 20 on application,
₹ 30 on allotment, ₹20 on first call and balance on Second & final call. Application was received
for 40,000 shares and all the due amount was duly received, except the second and final call
money on 1600 shares. These shares were forfeited. Out of the forfeited shares 600 shares were
reissued credited as fully paid for ₹ 90 per share.
Show the 'Share Capital' in the Balance Sheet of the company.
22. Give the necessary Journal entries in each of the following alternative cases: 4
i) Realisation expenses amounted to ₹19000 paid by the firm.
ii) Raja, a partner had given a loan to the firm of ₹ 18,000. He was paid ₹ 17,000 in full
settlement of his loan.
iii) Investments were ₹ 53,000, out of which investments worth ₹ 43,000 were taken over by
Simar a partner at ₹52,000 and the balance of the investments were sold for ₹ 12,000.
iv) Creditors to whom ₹ 1,21,000 were due to be paid, accepted stock at ₹71,000 and the balance
was paid by a cheque.
23. XL Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at par. The amount 6
was payable as follows:
On Application ₹ 3 per share
On Allotment ₹ 4 per share
On First & Final Call Balance
The issue was over- subscribed by three times. Application for 20% shares were rejected
and their money refunded. Allotment was made to the remaining applicants as follows:
Category No. of shares applied No. of shares allotted
I 1,60,000 80,000
II 80,000 20,000
Excess money received with applications was adjusted towards sums due on allotment
and first & final call. All calls were made and duly received except the final call by a shareholder
belonging to category (I) who applied for 320 shares. His shares were forfeited. The forfeited
shares were reissued at ₹ 15 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of the company.
OR
Pass necessary journal entries for the forfeiture and re-issue of shares in the following cases:
(i) Ashu Ltd. forfeited 1,000 shares of ₹ 10 each, (₹ 8 called up) issued at a premium of ₹ 2 per
share to Mr. R, for non-payment of allotment money of ₹ 5 per share (including premium).
Out of these, 800 shares were re-issued to Mr. Sanjay as ₹ 8 called for ₹ 7 per share.
(ii) Gaur Ltd. forfeited 300 shares of ₹ 10 each (fully called up), issued at a premium of 20 on
which only application money of ₹ 3 per share was received. Out of these, 200 shares were
re-issued at a discount of 3 per share.

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 24. SSS Ltd. issued 25,000, 10% debentures of ₹ 100 each. Give journal entries and the balance 6
sheet in each of the following cases when:
i. The debentures were issued at a premium of 20%
ii. The debentures were issued as a collateral security to the bank against a loan of ₹20,00,000.
25. A, B and C were partners in a firm sharing profits and losses in the ratio of 3:2:1. On 6
31.03.2023, their Balance Sheet was as follows :

Liabilities Amount Assets Amount

Creditors 84,000 Cash at Bank 17,000
General reserve 21,000 Cash in hand 30,000
Capital A/c : Stock 1,10,,000
A- 60,000 Debtors 23,000
B- 40,000 Furniture and fittings 10,000
C- 20,000 Machinery 35,000
1,20,000
2,25,000 2,25,000

On the above date, D was admitted as a new partner and it was decided that:
(i) The new profit-sharing ratio between A, B, C and D was to be 2:2:1:1
(ii) Goodwill of the firm was valued at ₹ 90,000 and D brought his share of goodwill in cash.
(iii) The market value of investments was ₹ 24,000.
(i) (iv) Machinery reduced to ₹ 29,000.
(ii) (v) A creditor of ₹ 3,000 was not likely to claim the amount and hence to be written off.
(iii) (vi) D brought proportionate capital so as to give him 1/6th share in the profits of the firm.
Prepare Revaluation Account and Partners Capitals’ Account.

OR
Ram, Ghanshyam and Vrinda were partners in a firm sharing profits in the ratio of 4:3:1. The
firm closes its books on 31st March every year. On 1st February, 2017, Ghanshyam died and it
was decided that the new profit-sharing ratio between Ram and Vrinda was to be equal. The
partnership deed provided for the following on the death of a partner.
(i) His share of goodwill be calculated on the basis of half of the profits credited to his account
during the previous four completed years.
The firm’s profits for the last four years were:
2012-13 ₹1,20,000; 2013-14 ₹80,000; 2014-15 ₹40,000; 2015-16 ₹80,000
(ii) His share profit in the year of his death was to be computed on the basis of average profit
of past two years.
Pass necessary journal entries relating to goodwill and profits to be transferred to
Ghanshyam’s capital account. Also show your workings clearly.
26. Jeet, Meet and Geet were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 6
31st march 2022, Meet retired and his share was taken over by other partners equally. On that
date the capitals of Jeet, Meet and Geet before the necessary adjustments stood at ₹3,00,000;
₹3,00,000; and ₹ 1,00,000 respectively.
On Meet’s retirement, revaluation of assets and reassessment of liabilities resulted in a
loss of ₹ 6000. The goodwill of the firm was valued at ₹1,45,000. General reserve stood in the
books of the firm at ₹18,000. The amount payable to Meet was transferred to his loan account.
Jeet and Geet agreed to pay Meet two yearly instalments of ₹1,20,000 each alongwith interest
@8% p. a. on the outstanding balance during the first two years and the balance including
interest in the third year. The firm closes its books on 31st march every year.
Based on the above information you are required to answer the following questions:
A. what is the new profit sharing ratio between Jeet and Geet?
B. what will be the journal entry for the treatment of goodwill at the time of retirement of
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 Meet?
C. general reserve will be Journalise as ………
D. what will be the total amount paid by firm to meet at the end of third year?
PART B
(ANAYLYSIS OF FINANCIAL STATEMENTS)
27. Higher the ratio, lower is the profitability, is applicable to: 1
(a) Gross profit ratio (b) Operating ratio
(c) Net profit ratio (d) Earning per share
OR
Electricity and telephone expenses paid by the company are shown in statement of profit and
loss as :
(a) Cost of materials consumed (b) Other income
(c) Other expenses (d) None of the above
28. Which ratio measures the velocity of conversion of stock into sales? 1
(a) working capital turnover ratio (b) inventory turnover ratio
(c) current ratio (d) liquid ratio
29. In case of a financial enterprise, dividend received will be shown under: 1
(a) Financing activities (b) Investing activities
(c) Operating activities (d) None of the above
OR
Compute Net Cash flow from investing activities from the information given below:
Particulars 31.03.2022 31.03.2023
₹. ₹.
Machinery A/c 6,00,000 8,00,000
Accumulated Depreciation A/c (2,00,000) (2,50,000)
During the year Machine costing ₹.1,50,000 with accumulated depreciation ₹.60,000 was sold
at a profit of ₹.10,000.
(a) (₹.2,50,000) (b) ₹.2,00,000
(c) ₹.2,25,000 (d) ₹.2,50,000
30. Assertion (A): issue of bonus shares has no effect on cash. 1
Reason (R): it is case of capitalization of reserves.
(a) Assertion and reason are correct, but reason is the correct explanation of assertion.
(b) Assertion and reason are correct, but reason is not the correct explanation of assertion.
(c) Assertion is correct but reason is not correct
(d) Assertion is not correct but reason is correct
31. Under which main heads will the following items be placed in the Balance Sheet of the 3
company as per Schedule III of Companies Act,2013?
i. Term loans from banks
ii. Balance with banks
iii. Goods in transit
iv. Computer software
v. Unpaid dividend
vi. vehicles
32. (a) A company had a liquid ratio of 1.5 ; current ratio of 2 and inventory turnover ratio 6 times. 3
It had total current assets of Rs.8,00,000. Find out annual sales, if goods are sold at 25% profit
on cost.
(b) Calculate debt to Capital employed ratio from the following information.
Shareholders fund ₹15,00,000
8% Debentures ₹7,50,000
Current liabilities ₹2,50,000
Non-current assets ₹17,50,000
Current Assets ₹7,50,000
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33. Following information extracted from the Statement of profit and loss of Zee Ltd. for the year 4
ended 31st march 2022 and 31st march 2023, Prepare a Common-size statement of profit & loss:
Particulars 2022-23 2021-22
Revenue from operations 8,00,000 10,00,000
Cost of Material consumed 40% 30%
(% on Revenue from operations)
Other expenses 2,20,000 2,60,000
Tax rate 50% 50%
OR
From the following information Prepare a Common size Balance sheet of Mohan ltd :
Particulars 31st March 2023 31st March 2022
₹. ₹.
i) Share Capital 5,00,000 4,00,000
ii) Trade Payables 1,40,000 80,000
iii) Reserves and Surplus. 1,60,000 1,20,000
iv) Property, Plant and Equipment 3,60,000 3,00,000
v) Cash and Cash equivalents 40,000 40,000
vi) Inventories 4,00,000 2,60,000
34. Read the following hypothetical text and answer the questions given below on the basis of the 6
same:
Aditi, initiated her Start-Up Fizz ltd. in 2019. Fizz ltd. is an organic juice extracting unit.
Its profits are increasing year after year, because of the increasing awareness towards health.
Following information has been extracted from the balance sheet of Fizz Ltd. for the year ended
31st march 2022:
31st march 2022 ₹ 31st march 2021 ₹
Equity share capital 90,00,000 60,00,000
11% debentures 30,00,000 50,00,000
Machinery at cost 28,00,000 20,00,000
Accumulated depreciation 90,000 60,000
Additional information:
I. during the year, a machine costing ₹ 4,00,000 was sold at a gain of ₹ 30,000.
II. depreciation charged on machinery during the year was ₹ 50,000.
III. interest paid on 11% debentures amounted to ₹ 5,50,000.
IV. dividend of ₹ 3,00,000 was paid on equity shares.
V. Debentures were redeemed at a premium of 10% on 31st march 2022.
Calculate cash flows of Fizz Ltd. from investing activities and financing activities.

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 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
2ND Pre-Board Examination-2023-24
Subject- Accountancy (055)
Time Allowed: 3 Hours Class: XII Commerce Max. Marks: 80
(SET- 1)
Suggestive Marking Scheme
1. (d) Rate of interest= 1500x100x12 = 12% 1
5000x4x7.5
2. (b)Both Assertion (A) and Reason (R) are True and Reason (R) is Not the correct explanation 1
of Assertion (A).
3 (c) Partners capital accounts 1
OR
(c) Interest on capital
4. (c) Rs 40 1
OR
(c) 6%
5. (b) sacrifice 1/14 1
OR
(b) 33500
6. (a) Rs. 45000 1
7 (a) ₹20,000; ₹10,000 1
8 (d) ₹ 1,90,000 OR (a ) 17:10 1
9 (b) 1,200 1
OR
(c) ₹7,500

10 (d) Capital to be called up only on liquidation of company. 1

11 (c) Sweat equity shares 1

12 (d) Credited to calls in advance account. 1

13 (a) (A) is correct but (R ) is wrong. 1

14 (b) debited ₹ 6500 1
15 (c ) ₹3600 1
16 (c) calculation of gaining ratio 1
17 Vivek withdrew Rs60,000 and Vinod invested Rs.60,000. 3
2 mark for the journal entry and 1 marks for the working notes
18 Divisible profit- ₹ 6,10,000 1+2
OR =3
A’s Capital a/c Dr. 5640
To B’s Capital A/c 4860
To C’s Capital A/c 780
1 mark for the journal entry and 2 marks for the working notes.

19 Capital Reserve ₹ 300 (1 mark for each entry) 3

OR
Land & building A/c Dr. 690000
To eik ltd. 690000
Eik ltd a/c Dr. 90,000
To bills payable A/c 90,000
Eik ltd. A/c Dr .6,00,000
Discount on issue of debentures A/c Dr. 1,50,000
To 6% Debentures A/c 7,50,000
 (1 mark for each entry)
20 Goodwill ₹ 42,000 3
1 mark for normal profit, 1 mark for super profit and 1 mark for calculation of goodwill.
21 Subscribed and fully paid capital ₹ 39,70,000 4
( 1 mark for the extract and 3 marks for notes to accounts)
22 Realization A/c dr. 19000 4
To bank a/c19000

Raja’s loan A/c dr 18000

To bank A/c 17000
To realization A/c1000

Simar’s capital A/c dr 52,000

Bank A/c dr.12,000
To realization A/c 64,000

Realization A/c dr 50,000

To bank A/c 50,000
1 mark each for journal entry
23 Capital reserve ₹ 1120 6

OR
(i) Capital reserve ₹ 3200
(ii) Capital reserve NIL
24 2 marks for journal entries and 4 marks for preparation of balance sheet. 6

25 Profit on revaluation ₹21 ,000 and 6

capital balances : A- ₹ 96,000; B- ₹ 54,000: C- ₹ 27,000 and D- ₹ 35,400
2 marks for revaluation account and 4 marks partners capital account
OR
1. Ghanshyam’s share of goodwill ₹60,000
2. only Vrinda is a gaining partner.
3. Ghanshyam’s share of profit ₹18,750
2 marks for journal entries and 4 marks for working notes.

26 A. new ratio= 3:2 1 mark 6

B. debit jeet’s and geet’s capital account by ₹29,000 each and credit Meet’s capital by ₹58,000,
gaining ratio is 1:1 2 mark
C. debit general reserve by ₹18,000 and credit jeet, meet and geet by ₹7200; ₹7200; ₹3600.1 mark
D. ₹1,32,624 (₹362800-₹240000+8% balance amount) 2 mark

PART B
(ANAYLYSIS OF FINANCIAL STATEMENTS)
27 (b) Operating ratio 1

OR
(c) Other expenses
28 (b) Inventory turnover ratio 1
29 (c ) Operating activities 1
OR
(a) (₹.2,50,000)
30 (a) Assertion and reason are correct, but reason is the correct explanation of assertion. 1

31 s.no. item Major head 3

1 Term loans from bank Non current liabilities
 2 Balance with banks Current assets

3 Goods in transit Current assets

4 Computer software Non- current assets

5 Unpaid dividend Current liabilities

6 Vehicles Non current assets
32 (a) Current liabilities ₹4,00,000 ;Liquid assets ₹6,00,000;Inventory ₹2,00,000;CRFO ₹12,00,000 3
RFO ₹15,00,000
(b) debt to capital employed ratio= 750000/2250000= 0.33:1

33 RFO 100 100 4

Less: expenses
Cost of revenue 40 30
Other expense 27.5 26
Total expense 67.5 56
Profit before tax 32.5 44
Less: tax 16.25 22
Profit after tax 16.25 22
OR
Common size Balance sheet of Mohan ltd : (1mark for each correct column)1x4=4
Particulars 31st March % on Total 31st March % on Total
2023 Assets(2023) 2022 Assets(2022)
I. Equity And Liabilities
1. Share holder’s funds:
i) Share Capital 5,00,000 62.5% 4,00,000 66.67%
ii) Reserves and Surplus. 1,60,000 20% 1,20,000 20%
2. Current Liabilities
i) Trade Payables 1,40,000 17.5% 80,000 13.33%
Total 8,00,000 100% 6,00,000 100%
II. ASSETS
1. Non Current Assets:
a) Property, Plant and
Equipment and Intangible Assets. 3,60,000 45% 3,00,000 50%
i) Property, Plant and Equipment
2. Current Assets
i) Inventories. 4,00,000 50% 2,60,000 43.33%
ii) Cash and Cash equivalents 40,000 5% 40,000 6.67%
Total 8,00,000 100% 6,00,000 100%
34 Cash flow from investing activities ₹ ( 7,90,000) 6
Cash used in finacing activities ₹ ( 50,000)