Practice Paper 1 Marking Scheme – Accountancy XII MARKS

1. (a) 41 : 7 : 12 1
2. (d) A is incorrect but R is correct. 1
3. (b) Issuing fully paid bonus shares 1
OR
(d) Credited by ₹2,000
4. (a) ₹ 18,000, ₹ 18,000 and ₹ 9,000 1
OR
(d) Sam needs to return Rs.5,50,000 to the firm
5. (a) ₹26,267 for Partner B and C and ₹27,466 for Partner A. 1
6. 1
7. (a) ₹ 21,000 1
8. (b) ₹20,000 & ₹30,000 1
OR
(a)₹1,00,000
9. (c) ₹ 15,000 1
10. (d) Anu ₹ 45,000; Charu ₹ 30,000; Divya ₹ 75,000 1
11. (c) do not contribute any capital and without having any interest in the business, 1
lend their name to the business
12. (a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct 1
explanation of Assertion (A)
13. (c) 2,000 shares 1
14. (b) ₹45,000 1
15. (c) ₹1,500 1
OR
(a) Ayan- Rs. 1,800, Azan- Rs.3,300, Aqib- Rs. 6,000
16. (c) Cash Account by ₹9,900 1
17. In the books of Abhay, Bheem and Chunnu
Journal
DATE PARTICULARS L.F. DEBIT ₹ CREDIT ₹
2019 Bheem’s Current A/c Dr. 1000 1
MARCH Chunnu’s Current A/c Dr. 4000
31 To Abhay’s Current A/c 5,000
(Being omission of interest on
capital for three years rectified) 1

Statement showing Adjustment to be made

Particulars Abhay ₹ Bheem ₹ Chunnu ₹ Total ₹
Interest on capital to be 30,000 24,000 21,000 75,000 1
credited
Amount of profit already 25,000 25,000 25,000 75000 1+1+1=3

credited, to be debited
now
Net Effect (Cr.)5,000 (Dr.)1,000 (Dr.)4,000 ---------

OR
Profit & Loss Appropriation A/c for the year ended on March 31, 2022
PARTICULARS ₹ PARTICULARS ₹
To Interest on Capital A/c By P & L A/c 23,800 3

Arun -3,000 (₹26,800-₹3,000)

Barun-1,800 4,800
To Salary A/c
Barun 4,000
To Profit transferred to
Partners’ Capital A/c: Arun
-9,000
Barun-6,000 15,000
23,800 23,800
18. Total Assets of the firm (Sundry Assets + Stock) = 1,00,000+ 20,000= ₹1,20,000
Current Liabilities of the firm = ₹10,000

Capital Employed = Total Assets - Current Liabilities

=1,20,000- 10,000= ₹1,10,000
Normal Profits = Capital Employed x Normal Rate of Return
1000
 =1,10,000 × 8 = ₹ 8,800
100 3marks
Goodwill= Super Profits x No. of years of purchase
60,000= Super Profits × 4
Super Profits = 60,000 = ₹15,000
4
Super Profits= Average Actual Profits- Normal Profits
15,000 =Average Actual Profits - 8,800
Average Actual Profits = 15,000 +8,800 = ₹23,800
19.
DATE PARTICULARS L.F. DEBIT ₹ CREDIT ₹
Assets A/c Dr. 10,00,000
Goodwill A/c Dr. 60,000
To Liabilities A/c 1,70,000 3marks
To Healthy World ltd. (Being 8,90,000
assets and liability taken over)
Healthy World Ltd. Dr. 8,90,000
Loss on issue of Debentures A/c 80,000
Dr.
To 8% Debentures A/c 8,00,000
To Securities Premium A/c 40,000
To Premium on redemption A/c 80,000
To Bank A/c 50,000
(Being Purchase consideration
discharged by issue of Debentures
and in Cash)
3
OR
BOOKS OF RANDOM LTD.
JOURNAL
DATE PARTICULARS L.F. DEBIT ₹ CREDIT ₹
Assets A/c Dr. 45,00,000 3marks
To Liabilities A/c 6,40,000
To Mature Ltd. A/c 36,00,000
To Capital Reserve A/c 2,60,000
(Business purchased)

Mature ltd A/c Dr. 36,00,000

To bank A/c 1,50,000
To 12% preference share 30,00,000
capital A/c
To securities premium A/c 4,50,000

20. JOURNAL 4marks

DATE PARTICULARS L.F. DEBIT CREDIT
₹ ₹
2018 Z’s Capital A/c 5400
APRI Dr. 5400
L1 To X’s Capital A/c
(Adjustment entry passed)

Net Amount to be adjusted= 6000+24000-12000= ₹18,000

Calculation of Sacrificing (or Gaining ratio)
X’s share= 5/10-2/10=3/10
Y’s share= 3/10-3/10=0 nil
Z’s share= 2/10- 5/10= -3/10
Amount to be debited to Z’s Capital A/c= 18,000*3/10= ₹5400
Amount to be credited to X’s Capital A/c= 18,000*3/10= ₹5400

21. Share Capital- Rs-20,000 4

Share Forfeiture-Rs-14,000
Bank account-Rs-12,000
Share Forfeitures-Rs-3,000
Share Capital – Rs -15,000
 In the ledger Account – Share Capital –Rs 3,000

22. JOURNAL ENTRIES 4

DATE PARTICULARS L.F. DEBIT ₹ CREDIT ₹
i) a) Y‘s Capital A/c ……Dr 72,000
To Realiasation A/c 72,000
(Being sundry assets of
value
Rs.80,000(72,000x100/90)
taken over by Y at 29,600
Rs.72,000. 29,600
b) Z‘s capital A/c…..Dr.
To Realisation A/c
(Being the remaining sundry
assets taken over by Z)
(1,17,000-80,000)x 80/100 60,000
60,000
a)W.C.R A/c ……. Dr.
ii) To Realisation A/c
(Being WCR transferred to
Realisation account) 75,000
75,000
b)Realisation A/c …….Dr.
To Bank A/c
(Being liability on account of
workmen compensation
paid) 35,000
35,000

a)W.C.R A/c ………….Dr.

iii) To Realisation A/c 25,000
(Being WCR to the extent of 25,000
worker‘s claim transferred)
b) W.C.R A/c ……. Dr.
To partner’s capital A/c
(Being surplus of WCR
transferred to partner’s 7,84,000
capital account) 7,84,000

Bank A/c…………. Dr.

iv) To Realisation A/c
(Being Building value
realised after charging 8,00,000
commission) (800000 – 2%) 8,00,000
Or,
a)Bank A/c ………. Dr.
To Realisation A/c 16,000
(Being Building value 16,000
realised)
b) Realisation A/c ……Dr.
To Bank A/c
(Being commission @2%
paid)

23. JOURNAL ENTRIES IN THE BOOKS OF X LTD

DATE PARTICULARS L.F. DEBIT CREDIT
i) Bank A/c Dr. 8,00,000
To Equity Share Application A/c 8,00,000

ii) Equity share application A/c Dr. 8,00,000

To Equity share capital A/c 5,00,000
To Equity Share Allotment A/c 2,00,000
To Bank A/c 1,00,000

iii) Equity share Allotment A/c Dr. 10,00,000

To Equity share capital A/c 10,00,000
 iv) Bank A/c Dr. 7,92,000
Calls in Arrear A/c Dr. 8,000
To Equity share allotment A/c 8,00,000

v) Equity share first call A/c Dr. 15,00,000

To Equity share capital A/c 15,00,000
6marks
vi) Bank A/c Dr. 14,70,000
Calls in Arrear A/c Dr. 30,000
To Equity share First Call A/c 15,00,000

vii) Equity Share Second and Final Call

A/c Dr. 20,00,000
To Equity Share Capital A/c 20,00,000

viii) Bank A/c Dr. 19,60,000

Calls in Arrear A/c Dr. 40,000
To Equity share Second and 20,00,000
final Call A/c

ix) Equity Share Capital A/c Dr. 1,00,000

To Share Forfeiture A/c 22,000
To Calls in Arrear A/c 78,000

x) Bank A/c Dr. 96,000

To Equity Share Capital A/c 80,000
To Security Premium Reserve A/c 16,000

xi) Share forfeited A/c Dr. 16,000

To Capital Reserve A/c 16,000
OR
JOURNAL ENTRIES IN THE BOOKS OF SHAKTIMAN LTD
DATE PARTICULARS L.F. DEBIT CREDIT
i) Share Application A/c Dr. 6,00,000
To Share Capital A/c 2,00,000
To Securities Premium A/c 2,00,000
To Share Allotment A/c 2,00,000
(Being Application money utilised)

ii) Share Allotment A/c Dr. 5,00,000

To Share Capital A/c 5,00,000
(Being allotment due with premium)
iii) Share First and Final Call A/c Dr. 3,00,000
To Share Capital A/c 3,00,000
(Being call money due)
iv) Calls in Arrears A/c Dr. 15,000
To Share First and Final Call A/c 15,000
(Being call money received except of
Simba)
v) Share Capital A/c Dr. 50,000
To Share Forfeited A/c 35,000
To Calls in Arrears A/c 15,000
(Being Simba’s shares forfeited)
vi) Share Forfeited A/c Dr. 14,000
To Capital Reserve A/c 14,000
(Being gain on re-issue transferred to 6x1=6
Capital Reserve)

Cash book balance- Rs.12,11,000

24. REVALUATION A/C
PARTICULARS AMOUNT PARTICULARS AMOUNT
(₹) (₹)
To Workmen 2,000 By Patents A/c 5,000
Compensation Claim
A/c
To Provision for 100 By Investments A/c 5,000
Doubtful Debts A/c
 To Machinery A/c 1,500
To Partners’ Capital A/c
(Profit)
Bablu 3,840 2marks
Dablu 2,560 6,400
10,000 10,000

PARTNERS CAPITAL A/C’s

DR.
DATE PARTICULARS BABLU ₹ DABLU ₹ MANGLU ₹
To Bal C/d 85,840 56,560 35,600
85,840 56,560 35,600

CR.
DATE PARTICULARS BABLU ₹ DABLU ₹ MANGLU ₹
By Bal B/d 60,000 40,000
By Cash A/c 35,600
By Premium for 4000 2000
2marks
Goodwill A/c
By General 12,000 8,000
Reserve A/c
By Revaluation 3,840 2,560
A/c
By Investment 6,000 4,000
Fluctuation
Reserve A/c
85,840 56,560 35,600

Balance Sheet as at 31st March, 2022

LIABILITIES ₹ ASSETS ₹
Capital A/cs: Cash 66,600 2marks
Bablu 85,840 Bills Receivable 30,000
Dablu 56,560 Stock 45,000
Manglu 35,600 1,78,000 Debtors 42,000
Creditors 50,000 Less: Prov. 2,100 39,900
Bills Payable 30,000 Investments 40,000
Workmen 2,000 Machinery 13,500
Compensation Claim Patents 25,000
2,60,000 2,60,000
OR 2+2+2
Revaluation Profit: ₹ 15,000; =6marks
Partners’ Capital Accounts
Bhavin’s Capital Account = ₹ 72,000
Ankit’s Loan Account= ₹ 67,000
Kartik’s Capital Account= ₹ 42,000
25. Maheep dues to be transferred to executors = 1,15,000 + 5,000 + 20,000 + 60,000
– 20,000 = ₹1,80,000
Maheep’s Executors Account
DATE PARTICULARS ₹ DATE PARTICULARS ₹
31/03/21 To Balance c/d 1,93,500 30/06/20 By Maheep’s 1,80,000
31/03/21 Cap. A/c
Interest (9 13,500 6marks
months)
1,93,500 1,93,500
30/06/21 To Bank 78,000 01/04/21 By Balance b/d 1,93,500
31/03/22 (I Instalment) 30/06/21 By Interest 4,500
To Balance c/d 1,29,000 31/03/22 (3 months)
By Interest 9,000
(9 months)
2,07,000 2,07,000
30/06/22 To Bank 72,000 01/04/22 By Balance b/d 1,29,000
31/03/23 (II Instalment) 30/06/22 By Interest 3,000
To Balance c/d 64,500 31/03/23 (3 months)
By Interest 4,500
(9 months)
1,36,500 1,36,500
30/06/23 To Bank 66,000 01/04/23 By Balance b/d 64,500
(III Instalment) 30/06/23 By Interest 1,500
 (3 months)
66,000 66,000
26. Journal Entries in the Books of Panther Ltd.
DATE PARTICULARS L.F DEBIT CREDIT
July 1 Bank A/c 21,60,000
2022 Dr. 21,60,000
To Debenture Application and
Allotment A/c
(Being Application money
received)
July 1 Debenture Application and 21,60,000
2022 Allotment
Dr. 3,00,000
Loss on Issue of Debentures A/c 6marks
Dr.
To 9% Debentures A/c 20,00,000
To Securities Premium A/c 1,60,000
To Premium on Redemption 3,00,000
of Debentures A/c
(Being Debentures issued)
Mar. 31 DebentureInterestA/c 1,35,000
2022 Dr. 1,35,000
To Debenture holders A/c
(Being Interest due on debentures)
Mar. 31 Debenture holders A/c Dr. 1,35,000
2022 To Bank A/c 1,35,000
(Being interest paid to debenture
holders)
Mar. 31 Statement of Profit and Loss 1,35,000
2022 Dr. 1,35,000
To Debenture Interest A/c
(Interest on Debentures charged
from Statement of P&l)
Mar. 31 Securities Premium A/c 2,40,000
2022 Dr. 60,000
Statement of Profit and Loss
Dr. 3,00,000
To Loss on Issue of
Debentures A/c (Loss on Issue of
Debentures written off)
Loss on Issue of Debentures A/c
DATE PARTICULARS ₹ DATE PARTICULARS ₹
01 To Premium on 3,00,000 31 By Securities 2,40,0000
July Redemption of Mar. Premium A/c
2022 Debentures A/c 2023 By Statement of 60,000
Profit and Loss
3,00,000 3,00,000
Part – B (Analysis of Financial Statements)
27. (d) Inter firm comparisons 1
28. (c) Loose tools and Stores and spares. 1
29. (b) Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct 1
explanation of Assertion (A)
OR
(c) Cash flow from investing activities Rs.34,000
30. (c) Cash used (Payment) from financial activities Rs.2,10,000 1
31. (i) Accrued Incomes-Current Assets- Other Current Assets 6x.5=3
(ii) Current Maturities of Long term Debts.-Current Liabilities- Short
term Borrowings
(iii) Provision for Employees Benefits-Non Current Liabilities-Long
term Provisions
(iv) Unpaid Dividend-Current Liabilities- Other Current Liabilities
(v) Short-term Loans- Current Liabilities- Short term Borrowings
(vi) Long-term Loans- Non Current Liabilities-Long term Borrowings
32. (a)Current Ratio = Current Assets / Current Liabilities
2 = 8,00,000 / Current Liabilities
So, Current Liabilities = ₹ 4,00,000
Liquid Ratio = Liquid Assets / Current Liabilities
 1.5 = Liquid Assets / 4,00,000
So, Liquid Assets = ₹ 6,00,000
Inventory = Current Assets - Liquid Assets
Inventory = 8,00,000 – 6,00,000 = ₹ 2,00,000
Inventory Turnover Ratio = Cost of Revenue From Operations / Average
Inventory 1.5x2=3
6 = Cost of Revenue from Operations / 2,00,000
Cost of Revenue from Operations = ₹ 12,00,000
Gross Profit = 25% of Cost i.e ₹ 3,00,000
Revenue From Operations = Cost of Revenue from Operations + Gross Profit =
12,00,000 + 3,00,000
Revenue From Operations = ₹ 15,00,000

(b)Debt to Capital employed ratio = Debt / Capital Employed

Debt to Capital employed ratio = 7,50,000 / (7,50,000 + 15,00,000) = 7,50,000 /
22,50,000 Debt to Capital employed ratio = 1/3 = 0.33 : 1
33. Common Size Statement of Profit & Loss
Particulars 2022-23 2021-22 % on % on
(₹) (₹) revenue revenue 4maks
from from
operations operations
(2021-22) (2022-23)
Revenue from operations 8,00,000 10,00,000 100 100
Less :- Expenses
Cost of revenue 3,20,000 3,00,000 40 30
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 Balance Sheet of Sunrise
PARTICULARS NOTE 31st 31st Absolute Percentage
NO. March, March, Change Change
2022 (Rs) 2023(Rs) (Rs) (%)
IEquity and
Liabilities 15,00,000 22,50,000 7,50,000 50.00
1.shareholders funds 7,50,000 7,50,000 - -
2.Non Current Assets 2,50,000 7,50,000 5,00,000 200.00
3.Current Liabilities 25,00,000 37,50,000 12,50,000 50
Total 4marks
II Assets 17,50,000 26,50,000 8,75,000 50.00
1.Non Current Assets 7,50,000 11,25,000 3,75,000 50.00
2.Current Assets 25,00,000 37,50,000 12,50,000 50
Total
34. Net Cash Flows from Operating Activities- Rs 1,52,000 2+2+2=6
Net Cash Used in Investing Activities- Rs (3,62,000)
Net Cash Flows from Financing Activities- Rs 1,50,000
Net Decrease in cash and cash equivalents- Rs (60,000)