CENTRE FOR ADVANCEMENT OF STANDARDS IN EXAMINATIONS [GEMS ASIAN SCHOOLS} COMMON REHEARSAL EXAMINATIONS 2024 [ALL INDIA SENII 101 FICATE, Subject: Accountancy Time: 3 HRS. Subject Code: 055 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. Question Nos.1 to 16 and 27 to 30 carries 1 mark each. 4. Questions Nos. 17 to 20, 31 and 32 carry 3 marks each. 5. Questions Nos. from 21 ,22 and 33 carries 4 marks each 6. Questions Nos. from 23 to 26 and 34 carries 6 marks each 7. There is no overall choice. However, an internal choice has been provided in 6 questions of one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks. PARTA ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES. Yash and Manan are partners sharing profits in the ratio of2:1. They admit Kushagra into partnership for 25% share of profit. Kushagra acquired the share from old partners in the Tatio of 3:2. The new profit-sharing ratio will be: (2) 143115 (6) 3:21 (31141 (d) 23:1 Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) Assertion (A): On the admission of a new partner, increase in the value of assets is debited to revaluation account. Reason (R): Revaluation account is used to transfer the revalued amount of assets and liabilities. In the context of the above two statements, which of the following is correct: (a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (©) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (©) Assertion (A) is true, but Reason (R) is false. (d) Assertion (A) is false, but Reason (R) is true. [ery Page 1 of 13, Scanned with CamScannerA forfeited share can: (a) not be re-issued at discount. (b) be re-issued at maximum discount of 10% (©) be re-issued at a maximum discount equal to the amount forfeited. (a) None of the above. OR ‘A company purchased machinery for %6,00,000, out of which %1,00,000 was paid immediately and the balance amount was discharged by issue of equity shares of Rs.10 each at 25% premium. How many shares will be issued by the company to the vendor? (@) 50,000 shares (©) 40,000 shares (©) 60,000 shares (4) 48,000 shares . leo, Levi and Luna are partners sharing profits and losses in the ratio of 3:2:1, decided td Khare their future profits and losses in the ratio 1:2:3 with effect from 1s April 2023, forkmen compensation reserve is 2,00,000 in their balance sheet as at 31st March 2023. A\ {the time of reconstitution, certain claim for workmen compensation was determined. Levi’ phere in the surplus of workmen compensation reserve is Z 40,000. Claim for worl pensation is..... ca a) %82,500 b) 85,000 ©) %80,000 d) %88,000 OR A and B are partners sharing profits and losses in the ratio of 3:2. The firm maintains fluctuating capital accounts and the balance of the same as on 31st March 2022 is %4,00,000 and % 5,00,000 for A and B respectively. Drawings during the year were 750,000 and % 70,000 respectively. Divisible profits during the year 2021-22 was & 1,50,000. Calculate the opening capital of A. (a) %3,00,000 (b) %3,60,000 (©) % 400,000 (4) %3,10,000 [1] Page 2 of 13 Scanned with CamScannerAand B share profits and losses in the ratio of 3: 2. Their respective capitals are €1,20,000 | [il | and % 54,000. C is admitted for 1/3rd share in profits who brings 2 75,000 as his share of capital. Capitals of A and B to be adjusted according to C’s share in the new profit-sharing ratio. Calculate the amount of cash to be brought in or withdrawn by A. (a) 30,000 (&) 832,000 (©) 815,000 (a) & 28,000 PQR Ltd. Company took over assets worth % 5,00,000 and liabilities of % 1,50,000 for | [1] purchase consideration worth & 6,00,000. PQR Ltd issued equity shares @ 10 each at a premium of 20%. Calculate the number of equity shares issued? (a) &50,000 (6) & 25,000 (©) %15,000 (a) % 60,000 OR Vihar Ltd. forfeited 3000 shares of & 100 each, & 70 called-up, for non-payment of first call of 20 per share. Out of these, 2000 shares were reissued for ® 60 per share as £70 paid up. What is the amount to be transferred to capital reserve? ri (a) %130,000 (b) 80,000 (c)€20,000 (4) 70,000 Statement 1: Securities premium money can be utilized to pay dividends to shareholders. | [1] Statement 2; Securities premium money can be utilized to issue fully paid Bonus shares. Choose the correct option from the option given below: (a) Statement-I is correct and II is wrong. (b) Statement -II is correct and I is wrong. (c) Both the statements are correct (d) Both the statements are incorrect Xand Y were partners sharing profits and losses in the ratio of 3:2. On ist March 2020 | [i] the extract of their balance sheet is as follows. Liabilities Amt (®) Assets Amt @ Land and | 55,000 Buildin, . S30O Page 3 of 13 Scanned with CamScannerAt the time of admission of new partner Z, it was found that land and building was overvalued by 10%, then what will be the amount of land and building which is to be shown in the new balance sheet? (a) 2 45,000 (b) 250,000 (©) 25,000 (a) % 55,000 OR Kaif, Kader and Kahil are partners sharing profits in the ratio of 4/9:3/9:2/9. Kader retires d his capital after adjusting for reserves and gain (profit) on revaluation stands at 1,39,200. Kaif and Kahil agreed to pay him % 1,50,000 in full settlement of his claim, Iculate the share of goodwill adjusted to Kaif if the remaining partners decided to sharg ‘ir future profits in 5:3. a) 24,950 b) 25,650 ©) %5,850 d) %4850 Read the hypothetical text and answer the following questions 9 & 10. A, Band C are partners sharing profits in the ratio of 4: 3 : 2. On 31st March 2023 they decided to share profits equally. On reconstitution the goodwill of the firm is to be valued at 2 years purchase of last 4 years average profit. Profit for last 4 years were, 2019 - 20 - 250,000 2020 - 21 - 252,000 2021 - 22 - %58,000 2022 - 23 - 261,000 (includes gain on sale of asset 25,000). What will be the amount of Goodwill of the firm on reconstitution of partnership? (a) 22,16,000 (b) 83,25,000 (©) ®54,000 (A) 21,08,000 O Page 4 of 13 Scanned with CamScanner7 | The adjusting entry for goodwill on reconstitution will be: (a) B’s Capital A/e Dr. 12,000 (b) A’s Capital A/c Dr. 12,000 To C's Capital A/c 12,000 ToC’s Capital A/e 12,000 (c) A’s Capital A/c Dr. 12,000 (d) C’sCapital A/e Dr. 12,000 To B's Capital A/c 12,000 To A’s Capital A/c 12,000 fi] 1. Tn the event of loss incurred by the firm which among the following will be provided by the firm to the partner (a) Interest on capital. (&) Salary to partner. (©) Rent to partner. (4) Commission to partner. 1) 12, Rana who had applied for 5,000 shares and was allotted 3,000 shares paid application money of 3 but was not able to pay allotment money of 2 5 per share. He paid all his dues along with first and final call of 22 per share. What will be the amount paid by Rana at the time of first call? (a) & 6,000 (&) = 10,000 (9 &15,000 (4) = 9,000 13. Tasar Ltd issued 2000, 10% debenture of 2100 each at 2105 & repayable at 110. Calculate the amount of loss on issue of debentures. (a) 215,000 (b) 230,000 (© 210,000 (4) 220,000 14. A, B & Care partners in a firm sharing profits in the ratio 2:2:1. C was given a guarantee that his share of profits will not be less than Rs.45,000 every year. Deficiency if any will be borne by A & B equally. Calculate the amount of deficiency if profit earned by the firm amounted to Rs. 2,00,000. (a) 10,000 (b) &5,000 (©) 29,000 (@) No deficiency. Page 5 of 13, Scanned with CamScanner. Rishi and Shara were partners in a firm sharing profit in the ratio of 2: 1. Rina way : 3: 2. Rina admitted as a new partner in the firm. The new profit-sharing ratio was brought the following assets towards her share of Goodwill and Capital: : Machinery: 200,000; Furniture: 1,20,000; Stock: 80,000; Cash: 50,000. If her capital is considered as Rs, 3,80,000 the Goodwill of the firm will be (a) 700,000 (b)%280,000 (()2 450,000 (a)2140,000 OR Shyam Jigar & Rishon were partners in a firm sharing profits in the ratio 5:3:2. Jigar decided to retire from the firm on the date of retirement his capital account after adjustments to reserves, accumulated profits & revaluation profits stood at % 360,000. Shyam & Rishon paid % 420,000 to Jigar in full settlement of his account. Calculate Goodwill of the firm on Jigar’s retirement. (a) 260,000 (b) 2200000 (c) 240,000 (d) % 18,000 16. At the time of dissolution, how much amount will be paid to creditors of % 50,000, if 210,000 of the creditors are not to be paid and the remaining creditors agreed to accept 5% less amount: (a) £28,000 (b) £38,000 (<) 37,500 (d) 836,500. fi 17. Siya, Hima & Veda were partners ina firm sharing profits in the ratio 3:2:1. Their capital investment amounted to %30,00,000. 10% is the rate of return expected on capital invested. The average profit of the firm for past 4 years were €450,000. Remuneration to partners amounted to %50,000p.a. Calculate goodwill of the firm based on (a) 2years purchase of super profit _(b) Capitalisation of average profit method. B) 18. Vivan and Rithika are partners sharing profits and losses in the ratio of 2:1 respectively. They admit Seema as partner with 1/4 share in profits with guarantee that her share of profit shall be at least % 55,000 per annum. The net profit of the firm for the year ending 31st March 2023 was 1,60,000. Pass Journal entries. Show the workings. OR Poojit, Joel & Tejus were partners in a firm sharing profits in the ratio 5:3:2. Their fixed capitals were 3550004; 240,006 & %250,009 respectively. As per partnership deed partners were entitled to Interest on capital @10% p.a. And salary to Joel at® 10,000 p.a. Profit for the year ended 31 March 2022 was distributed among the partners without providing for interest on capital. Record adjustment entry to rectify the error. Bl 19. Kader Ld. took over the assets of Sharma Ltd, of € 25,00,000 and liabilities amounting to 27,80,000 for a purchase consideration of €30,00,000, The payment to Sharma Ltd. was made by accepting bills of exchange for 2300,000 & for the balance 10% Debentures of %100 each at a discount of 10% were issued. Pass the necessary journal entries for the above transactions in the books of Kader Ltd. OR B) Page 6 of 13 Scanned with CamScannerPass Journal entries for issue of debentures for the following (a) 28,000 9% debentures of 2100 each issued to promotor. (b) 40,000 10% debentures of 2100 each issued as collateral security against a bank Joan of %35,00,000 from ICICI Bank. (0) Issued 5% debentures of 2100 to the vendor at a premium of 10% for purchase of machinery costing %4,40,000. Eisa and Thab are partners sharing profits in the ratio of 73. Their capitals on 1* April 2022 were Rs.1,60,000 and Rs.1,20,000 respectively. They admitted Kirtish into the partnership on that date giving him a 1/5th share in the future profits, which he acquired equally from Eisa and Ihab. Kirtish is to bring in Rs.1,00,000 as his share of capital. (a) Calculate New profit-sharing ratio. (b) Calculate Goodwill of Kirtish (©) Record Journal entry for goodwill B) 21. Hisham Ltd. was registered with an authorised capital of €20,00,009 divided into equity shares of 210 each. The company invited applications for the issue of 1,00,000 shares. Applications for 96,000 shares were received. All calls were made and were duly received except for the final call of 82 per share on 2,000 shares. 1800 of these shares were forfeited. Show how ‘Share Capital’ will appear in the Balance Sheet of Hisham Ltd. as per Schedule III, Part I of the Companies Act, 2013. Also prepare ‘Notes to Accounts’ for the same. [4] Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Yogesh and Girish after the various assets (other than cash) and external liabilities have been transferred to Realization Account: (a) There was a vehicle loan of & 2,00,000 which was settled by giving an asset to the bank at an agreed value of % 140,000 and the balance was met from firm’s bank account. (b) Yogesh accepted a cheque for %75,000 in full settlement of his loan to the firm of 280,000. (c) The firm had paid realization expenses amounting to %5,000 on behalf of Girish. (d) Realisation Profit amounted to 225,000 Page 7 of 13, Scanned with CamScannerRivaan. Ltd. invited applications for issuing 70,000 Equity shares of 210 each at a premium of 2.5 per share. The amount was payable as follows: On Application 32 On Allotment 28 (including %5 premium) Balance on First and Final Call Applications for 75,000 shares were received and allotment was made to all the applicants on a pro rata basis. A shareholder, Ram, who applied for 1,500 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Out of the forfeited shares, 350 shares were re-issued at & 50 per share fully paid up. Pass necessary journal entries for the above transactions in the books of Rivaan. Ltd. 0°} au ia et B\ (a) Acompany forfeited 2000 shares of & 20 each, € 15 per share called up on which 10 per share had been paid. Directors reissued 1500 of the forfeited shares to B as 215 per share paid up for a payment of € 12 each. Give journal entries in the books of the company for forfeiture and reissue of shares. (b) Fill in the missing details. Date | Particulars I/| Debit | Credit f @ @ Share Capital a/c ..... Dr : Securities Premium a/c. Dr To Share forfeiture a/c To Calls In arrears a/c (Being 600 Shares of % 100 each, fully called up at a premium of 10 per share allotted to Mr. Y on pro rata basis of 4:3 on which application money of € 35 per share was only received.) Bank a/c Dr To share capital a/c To... ( Being 5% of forfeited share reissued at 780 paid up for € 95 per share Share forfeiture a/c Dr To .. L | ( being gain on forfeiture transferred to Page 8 of 13 Scanned with CamScanner| Suraj & Kamal were partners in a firm sharing profits in the ratio 3:2. On 31s March 2022] [6] their Balance sheet is as follows. Liabilities Amount _| Assets ‘Amount Creditors 35,000 | Cash in hand 50,000 Bills payable 10,000 | Stock 130,000 Investment fluctuation Investments 50,000 reserve 7,000 | (Market value 45,000) it Capital a/cs Plant 500,000 Suraj 300,000 Debtors 24000 - Kamal 400,000 700,000 | (-)Provision (2000) |_22,000 752,000 752,000 | On this Amal was admitted for 1/6 share in the profits with following conditions (a) Amal will bring % 30,000 as goodwill & proportionate capital. (b) Stock to be appreciated by €20,000. (©) Plant to be depreciated by 5%. Provision to be maintained at 10% of debtors. (d) Investments were taken at market value by Suraj & Kamal in profit sharing ratio. (©) Creditors amounting to 23000 are not likely to claim therefore to be written back. Prepare Revaluation a/c & Partners capital a/c. OR Arjun, Nithin & Manu were partners in a firm sharing profits in the ratio 5:3:2. On 31st March 2021 Manu decided to retire from the firm. Liabilities ‘Amount | Assets Amount General Reserve 35,000 | Cashin hand 215,000 Bills payable 10,000 | Stock 44,000 Bank loan 24,000 | Investments 150,000 Workmen's compensation Furniture 60,000 Reserve 25,000 | Debtors 75,000 Capital a/cs Building 300,000 Arjun 400,000 Nithin 250,000 Manu 100,000 750,000 844,000 844,000 On Manv’s retirement it was decided to (a) Revalue the assets & liabilities & it resulted in a profit of $45,000. (b) Claim on workmen's compensation amounted to %15,000. (©) Goodwill of the firm is valued at % 120,000. Page 9 of 13 Scanned with CamScanner(@) © 42,000 was paid to Manu immediately and the balance was transferred to his Joan which was agreed to be paid in two equal annual installments along with 10% interest per annum starting from 31% March 2022. (e) Arjun & Nithin decided to readjust their capitals in new profit-sharing ratio by opening current account. The new profit-sharing ratio between Arjun & Nithin will be 3:2. Prepare partner's capital account & Manu’s Loan a/c till itis settled. 5.| The balance sheet of Rishi, Oswal and Nidish, who were sharing profit in the ratio of (6 3:3:4 as on 31st March 2022 were as follows. Liabilities Amount Assets Amount Reserve 20,000 | Cash in hand 32,000 Bills payable 10,000 |} Stock 88,000 Loan 24,000 Investments 94,000 Capital a/cs Building 120,000 Rishi 1,20,000 Rishi’s loan 20,000 Oswal 1,00,000 Nidish 80,000 | _3,00,000 354000 354,000 Rishi died on 30th June 2022. The Partnership deed provided for the following on the death of a partner. (a) The goodwill of the firm be valued at two years purchase of average profits for the last three years. (b) Rishi’s share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31s March 2022 amounted to 2 800,000 and that from 1+ April to 30% June 2022 to € 300,000 and the profit for the year ended 31% March 2022 2 200,000. (©) Interest on Capital was to be provided 6% p.a. (d) The average profits for the last three years were * 84,000. The amount due to Rishi was paid to his executor immediately by taking a loan from Bank. Prepare Rishi’s capital a/c to be rendered to his executor & & his executors a/c. 26. | On ist April 2021 Heera Ltd. Issued 12% Debentures of Rs. 100 each ata premium of | [6] 10% for raising an amount of 2 55,00,000. The debentures were redeemable after 3 years ata premium of 5%. (a) Calculate the number of debentures to be issued by Hera Ltd. (b) Pass journal entries to record the issue of debentures. (c) Pass journal entry to write off loss on issue of debentures. (@) Prepare Loss on issue of debentures account. (e) Calculate interest on debentures for the year ended 31# March 2022. Page 10 of 13 Scanned with CamScannerPART-B ANALYSIS OF FINANCIAL STATEMENTS Accompany has an operating cycle of 8 months. It has accounts receivables amounting to| % 100,000 out of which % 60,000 have a maturity period of 11 months. How would this information be presented on the balance sheet of a company? (a) % 40,000 as current asset & % 60,000 as non-current asset (b) 2 60,000 as current asset & % 40,000 as non-current asset (©) 2 100,000 will be shown as non-current asset (a) 100,000 will be shown as Current asset. OR Which of the following is correct with regards to objectives of analysis of financial statement? =} (i) Tojudge the finahcial health of the firm (i) To judge the short-term and long-term liquidity position of the firm (iii) To judge the reasons for change in the profitability of the firm (iv) To judge the variations in the accounting practices of the business followed by different enterprises. (@) Only (iv) (©) (i and (ii) (©) Gil) and (iii) (d) (iii) and (iv) If Working capital 8720,000; Trade payable %40,000 & Other current liabilities ®200,000, then Calculate Current ratio. (@) 34 (b) 4:1 (9 531 (74 (1) Which of the following is not a cash flow from financing activity? (a) Dividend paid on equity shares amounting to % 24,000. (b) Purchase of investment for % 40,000 cash (¢) Issue of debentures for % 75,000 cash (d) Repayment of Bank overdraft a Page 11 of 13, Scanned with CamScanner30. | Vivek Consultancy Private Limited purchased furniture for & 20,00,000 paying 60% by issue of equity shares of @ 10 each and the balance by a cheque. This transaction will result in (a) Increase in cash and cash equivalents & 8,00,000. (b) Cash used in investing activities % 8,00,000. (©) Cash used in investing activities 20,00,000. (d) Cash generated from financing activities ® 12,00,000. 31.| Under which major headings and sub-headings will the following items be shown in the] [3] Balance Sheet of a company as per Schedule III, Part-I of the Companies act, 2014. a. Loan of 21, 00,000 payable after three years. b. Bank overdraft ¢. Securities Premium Reserve d. Employees Provident Fund” e. Loose tools f. Calls in arrears 32.| Cash Revenue from operations was € 2,50,000 and Credit Revenue from operation was | [3] 60% of Revenue from operations. Gross Profit is 25% of Cost of Revenue from operations. Operating Expenses amounted to % 12,500 and Non-Operating Expenses amounted to 2 18,750, Calculate Operating Ratio. 33.| From the following information prepare Comparative Profit & loss 4] Particulars 2021- 22 2022-23 Revenue from operations 18,00,000 25,00,000 Cost of revenue from operations 10,00,000 12,00,000 Operating Expenses 80,000 1,20,000 Interest on Investment 20,000 50,000 Tax rate 40% 50% OR From the following information Prepare Common size Profit & loss Particulars 2021-22 2022-23 Revenue from operations 10,00,000 20,00,000 Employee Benefit expense 400,000 12,00,000 Other Expenses 150,000 400,000 Other Income 200,000 400,000 Tax rate 50% 50% Page 12 of 13 Scanned with CamScanner1F ire Cash flow statement. ™ Fparticulars Note [31.03.2022 [31.03.2021 No EQUITY AND LIABILITIES (1) Shareholder’s Funds a, Equity Share capital 20,00,000 16,00,000 b, Reserve capital 1 9,00,000 8,00,000 (2) Non- current liabilities a. Long term borrowings 9 % Debentures 5,00,000 140,000 (3) Current liabilities a. Trade Payable 100,000 60,000 b. Short term provisions 2 80,000 60,000 Total 35,80,000 | 26,60,000 I ASSETS (1) Non- Current Assets a. Property, Plant & Equipment, and intangible assets i. Property, Plant & Equipment 3 | 16,00,000 | 9,00,000 ii, Intangible assets - (Goodwill) 640,000 7,00,000 (2) Current Assets a. Trade Receivable 5,00,000 3,00,000 b. Inventories 2,50,000 2,00,000 cc. Cash and cash Equivalents 5,90,000 5,60,000 Total 35.80,000 | 26,60,000 lotes to Accounts Particulars 31-03- 22 31-03-21 1. RESERVES AND SURPLUS ‘Surplus; Balance in statement of Profit and loss A/c 9,00,000 8,00,000 2: SHORT TERM PROVISIONS Provision for tax 80,000 60,000 3: PROPERTY, PLANT & EQUIPMENT Plant & Machinery 17,60,000 | 10,00,000 () Accumulated depreciation (1,60,000) _|_(1,00,000) 16,00,000__|_ 9,00,000 ditional Information: (a) Tax paid during the year %1,40,000 (b) Interim dividend paid during the year % 60,000 3) Page 13 of 13 Scanned with CamScanner