SONI L PANDA- THE EDUCATOR

Premium Mack r.st D.3

Accountancy (05.5)

Ti me 3 hours somarb
G£N£RAL tfllSTMJCTIONS:

1. This qlleStion pa~ contains 34 questions. All QlilStions are Comt:IUIIOfY.

2. This q11estion paper- is dMded tnto two parts. Part A and a.

3. Pan - A Ac<:c~ for P.artnenhip Firms and Companies

4. Part- 8 Analysis of Financial SUtemenh

S. Question 1Nos.1 to 16 a nd 27 lo lO c.ames 1 marti: eac.-h.

6. Qlll!nions Nos. 17 to 20, 3land 32 carries 3 marks ud,.

7. Qlll!stions Nos. from 21 ,22 ahd 33 ranies 4 marts each

8. Questton~ Nos. from 23 oo 26 and ~ carries 6 marks ,e,ach

9 . TMre ,, no owral choice. ttowewr. an iDt-efAai ~ has ~en provided in 7 qu@fflons of orw marti:.1 q u ~
of thrN mart:,, 1 qUfttlon of four mMks a nd Z q'111!!StiQrn of six marks.

S.no MllT A (Accoundng fot ~enhtp ,1rms and Companies)

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1.
_ _..._-'---------- -Marks
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Manav and Nath Wlff p.a rtrneir·s ~arin1pru(.ts Mid IOMes in t he ratio of 5:3. Narayan 1
was admitted as a partne.r ffio1t i~ ihar<? il'I the profi ts. Narayan was unabfe to bring his
5hare of goodwill premium iir1 t;iiJI\, The ~ ent,v ,eco,d~d for goodwill premium is
given below:
Date Particulars l.F, Dr. Cr.
Narayan's Curre,,t a/tc dt. 50,000
To Manav's Capital ale 15,000
To Nath's 1Capital a/c 35,000
(Goodwill adjusted on Narayan's admission)
The New Profit sharing Ratio ,of Manav, Nath and Narayan:
a) '41:7:12
,b) 69;31:.20
c) 5:3:6
d) 10:12:12
I
1,2. Girdlhar, a partner Withdrew 5,000 in the beainnlng of each ~uarter and interest oni 1
drawings was c.alcolated as 1,500 at the end of accounting year 31 st March. 2023. What
as ttle rate of interest on drawings charged?
a) 6%p.a.
bl 8% p.a.
c)l0%p.a.
d) 12%p.a.
·•

3. Snubha.m Ltd . .purchased a macl"lin.e ry of ~,80,000 form Ganpati Ltd. The p;>yment was l
1
made by iswe ot 3,000 equity shares of ilUOO each at a premium of 10%.and, the
balance by i~suing a d'leque. The amount of cheque issued in favour of Ganpati ltd .
wa&:
 a) ~80,000
b) ~3,80,000
c) "30,000
d) !(50,000 , ' I

OR
On 1st April 2022, Gala'<v ·l~d. had a balance of ~4,00,000 In Secl!ltitle·:s,'Premlum
account. During the yiear ,cpmpany jssued 10,000 Equity shares,s-f ~t.Ol each as-borius
shares a'n d used the !balance amount to write off Loss, on, 1$sue 0f DebentU'r'E! on account
of issue of 1,00,000, 9% 1 1
t of 110n redeema'bfe @
,0~bentures of 9' 100 each at a: discot:Jin1
5% Premium. The a,mou:nt to be charged to Statement of P&l f81"'tlile·•yeai for loss on
'
issue of Oebentur,es would be:
' '

a) ~15,00,000. d '

b) ~11,00,000. 1,i

c) -t:12,00,000.
d) ~10,00,000. I I

4. Amar and Akbar are partners sharing profits in 'the ratio of 3:2, They changed their 1
1
' . lfi '11,1,,,ll ll "'
profit-sharing ratio to 2:3. w.eJ pt Apr:i 1~~,~~1• •'~~~ balan~e sheet as on the date of
1 1

change in profit-sharing ratio s~owe,d <1~~1if fl~!~il':l,~~s. in profit and loss account of·
. ,!11(, ..l ·iti , , . , ·1,
1#00,000, which the partners decide\to ·ca'mtft>IVM'.,ard·ancl not distribute. The balance of ..
1 ' 00•000 will be adJ'usted by. 11 11 11:I;T'..,__.......,,
· .
~ '·r\w'.1t\(-:"-
· h11!'.•lt+- 11? ~,i1 lie,;~ • ..
' •1 t>> l '

a) Cred.iting Amar's Capital Acco ·l:Ji'.~f)~io_:_iQ,it"lln~:4k~ i's 'GaP.ital Account by 1,00,000

l ,, t\1;U ' i~. , 1 ,.:_:,t;J .. ' 1=h~~~ t ~it, ( ~ ~

b) Crediting Amar's Capital Accou~t,~.Mq1J).~ij1,1:tljg'i~\6~r's CQ P,ital Account by 20,000

c) Debiting Amar's capital AccoJn"t,·~~l~~~M l~'.~ 1~§'. j~t~.r s,Ca~ital Account by 1,00,000
d) Debiting Amar's Capital AccoJ nt.arfd c;~q/~r1,t ~kb~r!sCapital Account by 20,000
'1 111• 11/1 j l

I
I
·
1 1
~ '1'j'J,D· 'lij.l) ,111!"\\'"· ,,,..
• '
1
\ 11 ;ii'°'lll ii· 1
11\!i_\ll ';11.J \' ., 1
• ,

Avya, D1vya and Kavya were equr l ,pi3n,ner::s.1Th,ey dec1~ed'·to change the profitshanng
ratio to 4:3:2. for this purpose 'the goodwjll ot the firim was Jal·ued at 90,000~
The journal entry for the treaf~f nt of Goodwill on ch,anse i'~ profit sharing ratio will be:
a) Kavya's Capitat A/c . dr. l0J000 -~··
/
, To Avya's capital A/c 10,000
b} ,Divya's Capitc1,I ~/1
c dr. 10,000
10 Avya's Capital A/c 10,000 .,
, c} A.vya~s Capital ,A/(,
I
dr. 90,000
, ,, ' To Kavya's Ca,pital A/c 9(?,000
,,d) Avya's Capital A/c dr. 10,000
To Kayya's Capi~I A/c 10,000 ·
5. \t'.ihaan and Mann are ,J)P.rtners sharing profits and losses 'in the, raii0,of 3i:i .. The fi:rro 1
maintains fluctuating cc;1pital accounts and the balance of the s.;ime, ~s ~n 3:~st ~arch 1

2022 is ·" 4,00,000 ii!nd ~ 4,65,()00 for Vihaan and Mann re~pectively. Dra~ings du,rinj
·the year were, GS,000 each. As per the partnership Deed, lnter:e;t ~apit~I @ 10% on
p.a. on Opening Capit~I has been allowed to them. Calculate t~e ope,nii:,g11=aP,itaI of
1

Vihaan given tllat the divi~ible profits during the year 2021-~2 was~ 2,?S,poo.
, I ,i ) ~ 3,~)Q~,QQO I,
I
,, 'b} ~ lil,40,000
c) ~ ,4 ~0.0~000 '
d) , 3,00,000
 .. --·- - -- -
I 6. While issuing company does not give any undertak ing for the repaymen t 1
of money borrowed by issuing such debentur es.
a) Zero Coupon Rate Debentures
b) Non.,Convertible Debentures .
c) Secured Oebentures
d} Non-Redeemable Debentures
OR I
ZK Ltd. issued ~S,00,000, 9% Debentur es of "100 each at a discount of 5% redeemable
at a premium of 10%. How rnuch amount debited to discount or loss on issue of
debentures? '
I
a) 25,000
b) 50,00
I
I c) '75,000
d) S,75,000
1
7. Assertion (A).: Forfeited shares may be reissued by the company at a discount but the I
amount .o f discount cannot be more than the amount forfeited on the reissued shares.
Reason (R): It being sale of shares and not an Issue of shares. Thus,. the company can
reissue them at any price.
In the context of abow: two statemf!nJs which of the following is co"ect1
a) Assertion (A) and Reason (R) are cofrect but the Reason (RI) is not the correct
explanati on of_ Assertion (A) I · (,~ I .
I
I
b) Both Assertion (A) and Reas-on (RI are correct and ,~eason (R) rs the correct .
explanati on of Assertion (A) I
m , .... ......, ' ~ "
c) Assertion (A) is correct but the 'Reason {R) is not correct
I
d) Both Assertion (A) and Reason ,(R) are not correct
1
8. E, F and Gare partners sharing profits in the ratio of 3~3:2. According to the partnersh ip
agreeme nt, G is to get a minimuf amount of"80,00 0 as his share of profits every year
and any deficienc y on this account is to be personally borne by E. The net profit for the
year ended 31st March 2021 amounte d to :{T,12~000:-Calcu(ate the amount of
/
t
deficienc y to be borne by E?
,,
r
a) 1'1,000
b) ~4,000
c) ~8;000 I
d}~,000 '
OR
Angle and ,Cir,Je ware partners In a firm. Thelr-~alance Sheet _showed Fumitur~,.at
~2,00,000; Stock at ~1,40,000; Debtors at "1,62,000 and Creditors, at "60Jogo. Square
was admitt.ed and new profit-sha r,i ng .r atio was agreed at 2:~:S,. Stoc~ was revalued at
• r I
"1,00,000, Cr.editors of 1'1S,O00 c1re not likely to be dain,ec:t Debtors for 1'2,.000 have
I
become irrecoverable and Provision for doubtful debts to be pravi~ed @ 10%.
.Angle's share in loss ~n revaluation amounte d to "30,000. Revajued value of Furniture I
witl -be: I
a) ~2. 11,000
b) ·'U ,03,000 I
c;) ,1,03,000
d) " 1,83,000 '
- I
I
 Read the following hypothetica l situation, answer question no. 9 and 10·.
iRicha and Anmol are partners sharing profits in the ratio of 3:2 with capitals of
~2,50,000 and ~1,50,000 respectively. Interest on capital Is agreed@ 6% p.a. Anmol is
to be allowed an annual salary of 12,500. During the year ended 31st March 20~3·, the
· profits of the year prior to calculation of interest on capit.il but after charging Anmol's
salary amounted to ~62,000. Aprovision of 5% of this profit is to be made in respect of
manager's commission.
Following is their Profit & Loss Appropriation Account
--------
Particulars Amount Particulars
; .. .. .. , . .., '" -·· ... r Amount
To Interest on Capital By Profit & f,oss account (After ..... (2).....
Richa
Anmol
ma naB• r'& ciJ~illl,~{'\ I
To Anmol's Salary a/c 12,500 111, li1 I ' 11
To Profit transferred to: 111 I
Richa's Capital A/C ....... (1) .... .. !I I ~ Ii

·Anmol's Capital A/c I 11

9. The amount to be reflected in blank (lt will be: 1

a) ~37,200
b) ~44,700 ~-
c} ~22.soo
d) "if..20,940 ..,.
l ,.,~; -, .· ?_i'.
.
10. The amount to be reflected in blank l'if,. 1
a) ~62,000. ,. ·
b) ll!:74,500.
.c) "if..71,400.
d)~70,775. I i,!1 ''('1, '. 1
1\ •II'·.
11. Calculate net profit as per P & L A/c for the ¥ea{ end,i~g 31 March, 2023 from the 1 ,
following information : 1
'I l-' · ,;1
1
1
share of-profit transferred to Capit~1 A/C's-of partn~rs:! 1
1.
Ansh u !l!'.14,000 ,
Koma I ~7 ,ooo
Interest on capital-:
I
Ansnu :0,000
Komal U,000
,Interest on Drawings ' f
Anshu "if..600
Kamal 1400
Aoshu salary ~ 2,000·
a~ 4' 26,000
-b) ~27,000
' c:)-~24,000
d) ~ 22,000
12 · If :1:0,000 share of ,10 each were forfeited for n91"1'-payme nt of final call mon~y of ~3 1
per share a~d Qni\y 7,000 shares were re-iss~ed @W::11 per share fully paid-1,1p, then
. what i::; the am.PUl'\t of ma~imum possible/discount that company ca n allow at the time
,.. 1,
, I I
of re-,lssue ofthe remaining 3,000 shares.
f 4 ;
---- ------- - ~ .

a, W ,000
b) 'tll,000
c) ~.ooo
d) ~16,000 _ __ _ _ _ _ _ - -- - - t - - - - ----1
13 Vishnu Ltd. forfeited 20 shares of ~o eac.h, ~ called UP1 on which John had pafd
1 1

l
applbtiol"i and alotment money of~ per shue~of these1 1S shares wer-e reissued to
Parker as fully paid up for~ per share. What Is the balance tn the share Forfeiture
1
Account 3fter the retevant amount has been transferred to ca.pf ta I Reserw- Aa:ount?
a)~
b)~
c) 'tlS
d) ttoo
' l4.. Xand Yare parttters shannc profits in the ratio of 3:2 and capital as ~1,00,000 and l
I .....,
60~000 t'~pectively. Z is admitted for 1/~ s:ha1re in profits. The amount Z wm
oontribute as ,c.apitctl will be
.l) 50,,000
b) 3S.000
c) 37,,500
d) 00,000
15, Which of the following Is tr-we reptdfng~laiy to a partner wh@n th@ firm maintains 1
fluctuating capital atcount5?
a) Debit ,Partner's loan Aft and ~cl it IP a l A~propr\at1on A/c.
b) Debit P & l A/c a-nd C:red it :Pa1rll:tier"~ Capt.JI A/c.
1

c,) Debit P & L Appropriation A/le. amd 'Credrt hrtnc~s Currenit1Ale.

d) Debit P & l Appropriation Ale 1nd Credk Partnllr's Capital A/ c.
oa
Abhay and Baldw.n are ,p lrtAers sharil'lgprolit 1n the ratio3:1. On 31st March 2023,
Hrm•s net profit is IIIC.1,,ZS.000. fut pan:ne,'5hip deed provided interest on capital to
Abhay and Baldwin lltlS,000 & " 10,000 respectively and Interest on drawif'l8S for the
veair amounted to ·~ from Abhay and ,4000 f1rom Baldwin. Abhay is,also entitled to
commission ,@10% on net divis,ble profits. Callculate profit to be transferred to Partners
\ Capital A/e's.
I al ,1,00,000
1

,I b) 'tl,t0.000
c),1.01.000
II d) '90.000

16. On me day of dls.sohrtion of the firm 'Roop Brothers' had partner~s capital ~ou11,tilng to l
'1,50,000, external liabilities '35,000, Cash balance "8,000 and P&Wc (Or.) 11!7,000. If
Realiwtion expense and loss on Realisation amounted to"5,COO and i!US,000
r~ v ~ the amount realised by sale of assets is:
al tl,64,000
b) tt,4S,OOO
c) ,1,·5 7,000
d) '1,50,000
17 Sim, Seem & Pola were partners i.n .a firm sharing pr9ffts in 3:2:l respectively. Seem 3
decided to rertrt due to iltne,s Sim and Pola decided to share future profits and toss in
the rJtic of 3:?..:.. GoodwiM e>f the Firm was valued at 2140,o_oo_._________...____.
___
- -- - - - ----·-- -

Find out Gaining Ratio and Pass the necessary journal entry for Goodwtn.
18. Reva, Mona and Nisha sha·r ed profits in the ratio of 3 :2:1. Profits for the last three· 3
year:s were ~1,40,000; ~84,000 and ,1,06,000 respettively. These profits were by
mistaken ly distributed equally. The error is now to be corrected. Give the necessary
1

r·e ctification journal entry.

'I
' OR
I,
.A and 8 are partners sharing profits and losses in the ratio of 3:2. Their capital on 31 st
march, 2023 after all adjustments stood at "1,65,500 and ~1.27,600 respectively.
Profits amounting to ~50,000 for the year 2021-22 were distributed after allowing
inte,rest on drawings @12% p.a. during the year A withdrew ~15,000 at the beginning
0f every quarter and B withdrew ~40,000 during the year. Partnership deed Is silent on
in't etest on drawings but provides for interest on capital @5% p.a. Interest on capital
has not been provided.
Showing your working clearly, pass the necessary adjustment entry to rectify the above
erro:rs
19. Shiva ltd issue 3,000 9% Debenture of "100 each at 10% Discount the amount payables 3
as follow Application 40 Allotment- Balance Application received for 4,500 debentures
Application for 1,500 debentures were rejected & their application money returned All
the money duly received. Pass the journal entries relating to issue of 9% debentures.
0~
Youth Ltd. took a loan of~ 15,00,000 from State Bank--of India against the security of
tangible assets. In addition to pr'incipaJ security, it iss~ d 10,000 11% debentures of~
I •
100 each as collateral security. ~,as'?fli°c:essary Journal entries for the above
transactions, if the company de~ided to record .the issue of ill% debentures as
1
collateral security and show the presentation in the Balance Sheet of Youth Ltd.
20. i calculate goodwill of a firm on the basis of three years purch~se of weighted average 3
I profits of last four years.
1
! I
The profits of the last four year V'ere: ' ,
I Year (ending 2020 ._ 2021 ~ --2022 ' 2023
i 31st March)
A~ount _ . 2~,()90
1 27,000 46,900 _ 5~810 _ -
1
a) On 1st April, 2020 a major plant repair was taken for 10,000 which was charged to
profit and lqss a/c. the amount is to be capitalised for goodwill calculation subject_to
adju,stment ,o f '10% depreciation on reducing balance method.
b} Oosin_s stock for the year ended 31 sl March, ·2022 was overvalued by 10,900
c) Weight .assigned 1,2,3 &4 respectively to the profits 't or years ended 3}.S• March 2020,
II
,I , 202 1, 2022, aod 2023. '
.21. Ati,shyokti ltd. company was registered with an authorized capital of~ 20,00,0QO 4

divided into 2,00,0f)O Equity Shares of-~ 10 each, payable" 3 011-application, "6 on
,allotment (including, 1 premium) and balance on call. The ~ompany offered 80,000
·shares for public subscription . All the money has' been duly ,
called and received except
.
aHotment and caJI mon.e y on S,000 shares held by Ma nJsh and call money on 4,000
shares held .by Alok. IManish's share~ were forfeited ;tnd aut of these 3,000 shares were
ire•issued ~ ·9 per $ha re as fully paid up. Show sha,re capital in the books of the
company, Also prepare notes to accounts.
 7
- ·- - - -
22. Tom, Jerry & Ml,cky w ere partn ers in a firm sharing profits and losses In the ratio of 4
2:2:1 on 31 $1 march 2023, their balance she~t was as follow: Prepare R.a alisatlon
Account.
of Tom, Jerry & Micky as on 31-3-2023
- -- -- -- --Balance sheet
-- -- - - ----~--
liabilit ies
1 Amount Assets Amount~
~

Creditors 50,000 Buildrng 1,80,000

' Mrs. Jerry loan 18,000 Investment 75,000
' Tom loan 72,000 Debtors 35,000
'
PFDD (3,000) 32,0001
lrwestment fluctuation fund 20,000 Bill receivabre 4'5,000
I
Capita1 A/c Stock 25,,000
'T,on, 1 80,000
Jerrv 80,,POO
Mickv 80,000 2,40,000
Cash 13r000
Profit & loss A/c 3'0,.0 00
~.00,000 ·~ I
4,00,000
On the above date they decided to dissolve the firm '
i) Creditors are to be paid after 3 mont hs·but.paid im'"med iat ely at 3% p .a. discount.
.
ii) debtors of ~s.ooo proved bad
I 1
,: ,I -~·r . . .
· ,_.,
&

f
iii) halfof the investment.takes ver by TOm at 10!, DisooUnt & Remaining sold at 20%
profits . , I,:': ' . ~

iv) building sold for ~1,50,875 l'.llh.cl...li,....~~"-··__________.

v) jerry agree to pay his wife loan
vi) Bills rec-eivables of ~20,000 was under discount as dishonoured hence paid by t he
firm.

23. The Directors of Rockstar Ltd. 'invited applications for 2,00,000 Shares of~ 10 each, 6
issued at 20% premium. Share was payable as~ 5 on application,-: 4 (in d uding
premium) Oil al:lotment and bafance on call. Public had app lied fo r 3,20,000 shares out
11
·. of,wh,ich ~s;>plications for 20,000 shares were rejected ~nd re1T1ai:ning were alloted on:
1/ I • ,
1
,,p ,ro -,r~ 'b~sis. Simb 9, a,n ilPPlicant of 15,000 shares,t~ile~ , o pay a llotm ent and ca_!}
, monev.: His shares we.re forfeited and out of th~se 6,000 shares "'(ere reissued at a
. d•scount of~ per share. Journalise. 1 .
OR , .
, Adani Ltd. was registered with ar, authorized shares c.apit* · of '\80,0Q),000 di~idecl into
equity share of ~:LOO each, company offered 50,000 shares. for pu~lic at 20% prem i~m.
The share amount was payable as follow:
I •

, On application -:40 per share

011 .a llotment ~O per sh~re (including premium)

 Application ; ;c-;i;ed for 80,000 sh~res pro rat~ allqtmen t was made in ratio of 3 :2 and -- ·-
r:est applications were rejected All the mohey on allotmen t received except Mohit
holding 5000 shares, his shares Immediat ely forfeited and out of the·se 4000 shares
. reissued for ~90 per share fully pa1d up.
' I

Pass the necessary journal entries in the books of Adani Ud

1

124. A and Bare partners in a firm sharing profits and losses in the ratio of 2:1. On 31 st
6

march, 2023 their balance sheet was as follows.

Liabilities Amount Assets Amount

I

Capttat Plant and machinery 1,05,000

A 1,40,000 Furniture 20,000

e 1,00,000 2,40,000 Investme nt 1,00,000

i

Investment fluctuation 15,000 Debtors 35,000

reserve 33,000
less PFDD 2,000
Employee providen t fund 30,000
45,000 Goodwill

r Cash at ~ank I 12,000 .

I 3,00,000 t 3,00,000

On the above date C was admitted l1 nJthe partnership for 1/S1h share. It was agreed that
i) C bring 60,000 as his share of goodwill premium out of which half is withdraw n by A
I

&B. I i
8p
ii) Market value of investme nt ,000
iii) Bad debts amount to 2,0CX> ar d 10% provision is made on remaining debtors
iv) insurance s premium of 1,200,paid for neg vear
v) C bring proportio nate capital
Prepare Revaluati on Ac(Ollnt and Partner's Capital Account
OR
Sameer, Yasmin and Saloni were partners in a firm sharing profi1s. and l1osses in the ..
ratio of 4: 3 : 3. On 31.3.2023, their Balance Sheet was as follows·
1
l[j , · Bahmce sheet of Sameer, Yasmin, and Saloni as oh 31:-3-:w23
11 I iabit;ties Amount ~ Assets, Amount ~
Crediiors 1,10,000 Cash 80,0QO ,
I•

Gene,;~1 reserve 60,pop Debtors 90,000 I 8~000

Less PFDD (10,000]

Capitals: Stock 1,00,000

Sameer 3,00,000
Yasmin 2,50,00Q I:
Saloni 1,50,000 7,00,000
I

Machiner y/ 3:,00,000 1 I

Building. 2.00.,000 , I

J I
I I ,:
Pat~1ts 6(t000:
 -
I Profit and loss acco,mt 150,000
••70,000 8.70,000
On the above date, Sameer retiir-ed and it was agre'ed that:
(i) Debtors of ~4,000 will be written off as bad debts and a provision of 5% on
debtors for bad and doubtful debts will be maintained.
(ii) An unrecorded creditor of~ 20,000 will be recorded.
(iii) Patents will be completely written off and 5,~ depreciation will be charged on
stock, machinery, and building.
(iv) Yasmin and Saloni will share future profits In the ratio of 3: 2.
(v) Goodwill of the firm on Sameer's retirement was val1Jed at~ 5,40,000. Pass
necessary journal entries for the above transactions in the books of the firm on
Sameer's retirement
25. S,R & K were partners in a firm sharing profits and losses in the ratio of 4:3:1. Year 6

ended 31 st march every year. As per the terms of partnership deed on the death of any
partner the share of goodwill of the deceased partner will be calculated on the basis of
50% of the net profits credited to that partners' capital!a/c during last four computed
years before death. S died on 1.' July 2022. The profit for last four years were
1

Vear 31-3-19 31-3-20 31-3-21 31-3-22

Profits 97,000 1,05,000 30,000 84,000
st
a) S is entitled to interest on capita I @J 6" p.a. on his capital balance on 1 April, 2022
1

S,00,000 . ..._
b) His drawings up to date of death amounts to 30,000
Ii '
c) General Reserve appear in Bal-aru::e lheet 1,20,000
d) His shares of profits of sales, ~les for the year end 31st march, 2022 amounted to
21.00,000; sales from 1st April 2022 tp 30 h June 2022 were 2,00,000. Prepare S's
1

capital account to be presented to his executor. ,

26. a) Sehat ltd. is engaged in manufacture of GYM Equipment. Considering the prospects 1.5-f'1.5+3
of high growth in this Segment the company has decided to expand and for this
additional investment of US,00,000 is required. Directors decided that 4006 of this
requirement would be financed by raising form equity shares and balance through long
term debts. As per memorandum of association of the company the face value of
• debentures 'tlOO each as per the market situation the debentures would issue at 25%
Premium. Director decided to issue sufficient Debentures to collect the desired amount
(induding premium) The issue was oversubscribed by 10,000 debentures. Which we.re .·
rejected bv the company.
You are required to answer the following: -

i)What is the total amount collected on application

I ii) how .m..any debentures were offer.ed ,~y ,Sehat Ltd.
· b) Difference between Reserve Capiti1I and Capital reserve .
I
I

I
 _ _ _ _
- ... ............ -~-....... ..
~ ~

_ PAftT B (Ana. .s_of flnandal StatementsL,______________ ___ _

27. Whicfi ohhe foflowing ls fllOt correct? t
.a) fnter•firm comparison is also ~nown as cross-sectional analysis
b) R~demption of debentures leads to decrease in debt-to-equity ratio
:c.) Debt analysis is dof\e by the firm to know Its borrowlng·s c~padty
d) iRedempt,on of deb~tures leads no ch11.nge ,In debt•ta.1q,1..dty .ratie>
OR
Current ~atio ofVidur Pvt. Ud. is 3:2. Accountant wantHo maintain It at 2:1. Foflowing
, ,option are avai1able:
i) He can tepay bills payables
I ii) He can purcMse .~ on credit
m; He can take short term loan
, choose the ~orrect option
a) Only (it ls correct
b) Onty (iii) is cot,r ect
'I
c) Only (I) and (Hi) ,are c:orrett
d) Only {Ii) and (ill) are rottect
28. From the following calculate Net ~sets Tumuver Ratio 1
Shareholders fund tS,00,000
8% Debentures 2..00.;ooo
Resen,e & Surplus S;do,ooo
I I
,R evenue from operation 75r00i000
a) 3. 75 times
b)2.S times
c) 3 t i·mes
, d) 4.14 times
29. Whidi of the following statemer is true 1
a) Income tax pa,d on gain on sa e o f assets j5 a.msidered as an operating activity
1 b) Purchase of shares is copsideriec!
1
as flnancl ng actlvitles--'
c) Loan taken by ,finaooe company ls considered as an operating activity
1

d) cash deposited into bank 1resulted outflow of cash

OR
Silrita ltd. lPro~ided the following information how these transactions will be reflected
in cash flow statements?
31-3~23 31~3B22
Equity share <:apltal 12,00,000 10,00,000
'Se·Q1;Jr·'iti8$ premium. reserve 2eOO.OOO 4,00,000.,
7"' Pr,elerence share capital 2,00.000 S,00,QQO
,1'dditiona1 huormat ion
0 1% Preferen,;e shares redeemed at a premiurn of 10'}6

I~,
ii) Ourir1g the year Sgrib ltd. bonus shares in the ratio of ·s:1 capitali~ing feserve.
,Added 30,000 under operating acti¥ities as ~ref11"1ium on redernptipf1 of preference
shJres. Added 4,00,000 in financing c1cth1it,es .-nd outflow 3,30,0QO ~ndeir financing
activities
b) Added in financing activities 2,00,000 issue of equity shares and 2,00,,0 00 securities
:Premium n~~rve
 \

t) Added 30,000 under operating activiti es as premium on redemption of preference 1

shares and outflow under financing activities 3,00,000
d) Added 30,000 under operating activities as premium on redemption of preference
shares and outflow of 3,30,000 under financing activities.
l
30. From the following information cash 'flow or u·sed In investing activities 1
Acquired machinery for 2,50,000 paying 20% by cheque and e><ecuting bond for the a
balance payable which of the following options Is correct?
a} Cash flow from investing activities 50,000
b) Cash flow from investing activities 2,50,000
c) ·Cash used in investing activities :S0,000
d) Cash used in investing activities 2,50,000
I

31. Classify the following items under major heads and sub-head (If any} In t he Balance 3
sheet of a company as per schedule Ill of the Companies Act, 2013
a) Provision for Retirement Benefits
bl Goodwill
c) Calls-in-Arrears
d) stores and spares
e) Tax reserve
f) Current maturities on long term ~ebts ___ .
32. a) Define ~perating cycle · - . ~·-~-~···iJ . _ _ 3
b) State with Reason, whether the proprietary ratI q;y.,1U Ip1p~ove, de<;:lme, or will not
1

change because of the followinJ transaction if ~~~P;ti~tary:nf io is o_- 8:1.

i) Redeemed 10% debentures of 6,00,000 -~ ·;f:dt,4 -::,. "· l ·
ii) Purchased machinery s,oo,oob by cheque . :'/'·. ';ti•"';ir;1
1

33 . 'From the information extracted from the stater,nen:ti'Sf ~r:bfit!& Loss of Zee Ltd for the 4
year ended 31st March 2022 and 31st M ~rch 2oii1,p~~ii~
1
-~\'ommon size state"1ent
of profit & loss: .. t'c. . • I
-~~ . . _,.,. .• ;Jjj !
____________
, Particulars - If===::-j ..Note No. 202~-23
- ------1
2021-22
- - - . .. -··-··-,----~ -
Reven.ue from operations 8,00,00D 10,00,000
Gross .Profit 60% 70%
Other Expenses 2,20,000
- -- -
2,60~00Q-
- -- t........C. i
Tax Rate 50% 50%

OR
' ' '
From the following information, prepare a Comparative Statement qf Pr qiijt ai,d Lo~s:
Particulars 31-3-2023 31-3;--2022 '
Revenue foom operations
1~-.....~-,....-~-...c.-.-·--------····-·
24,00,000
- 1 - -- -
i~~oo,ooo
----· ------ -
' Ot her Income~ (% .o f revenv,e frorn, 15% 25%
1
.
I ,_.
operation'
•••.r•• ,..
~♦
)
••~• .• ,,..,.

Expenses (% of revenue from operation} 60% 50%

'
1 T~-a,c rate 40%., 40%

I •
 \

134. From the following Balance sheet of Kiero Ltd . And th e additional informat ion as on31 - 6
3-2023, prepare a cash flow statement.
Klero Ltd. balance sheet as at 31-3-23
I
Particulars Note. No 31-3-23 31-3-22
, I. Equity and Liabilities
1 Shareholder's fund
a) Sha.re capital 7,90,000 5,80,000
b) Reserve and surplus 1 4,60,000 1,20,000
2 Non-Current liabilities
a) Long..:term borrrowlngs 5,00,000 3,00,000
2
I
3 Current-Liabilities
1,15,000 42,000
a) Short term borrowings 3
1,18,000 46,000
b) Short term provisions 4
1~:.11.000 10.ss.000
Total
II. Assets
1 Non-Current Assets
Fixed Assets
a) Tangible s 9,80,000 6,35,000.
b) Intangible - 5· .. ··· · •Q;6&·000 1,70,000

'l"I T:~3·
im11;;;
1
2 Current Assets ., . :~r1r11-'.1' I

,ii 1 111
,, Hlt ttjjtf ,l ,;•, ~. ,000
I
70,000
a) Current Investment
1,50,000
b) Trade Receivables 'nUlflH' ;11·1· 4,1 5~,000 4
63,000
c) Cash and Cash Equivaleht 11111 I 1illn f.\ ' t ,ooo
Total I
11,
ll.11,t1-I•1,,,1·1 I,,'i 11,j~9, 3,000 10,88,000

Notes to Accounts
Note no. Particulars
l .. 31-3-23 31-3-22

1 Reserve and surplus

Surplus (balance in statement ~f profit and loss} 3,20,000 60,000

General reserve 1,.40,0()9 60,000

2 Long term borrowings

12% p ebentures 5,00,000 3,00,000

3 Short t erm borrowings

Bank over draft l,,15,000 42,000

4 Short term provisions

Provision for tax 1,18,000• 46,000

5 T,rngible assets

~ achinery 9,80,000 I 6,35,000

/
 6 Intangible assets

Goodwill 2,68,000 1,70,000

I

I Additional Information :
I 12% Debentures were issued on 1 September,2022
Durlhg the year one machinery purchased for 5,00,000 & Interim Dividend Paid 10,000