12 Accountancy Sp05

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Class 12 - Accountancy
Sample Paper - 05 (2022-23)
Maximum Marks: 80
Time Allowed: : 3 hours
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. Part - A is compulsory for all candidates.
4. Part - B has two options i.e. (i) Analysis of Financial Statements and (ii) Computerised Accounting. Students must
attempt only one of the given options.
5. Question 1 to 16 and 27 to 30 carries 1 mark each.
6. Questions 17 to 20, 31and 32 carries 3 marks each.
7. Questions from 21 ,22 and 33 carries 4 marks each
8. Questions 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.
Part A:- Accounting for Partnership Firms and Companies

1. What journal entry is to be recorded in the books of account when Balance of Profit and Loss Account is transferred to
the Profit and Loss Appropriation account.
a) Profit and Loss A/c Cr.
To Profit and Loss Appropriation A/c
b) Profit and Loss A/c Dr.
To Reserve A/c
c) Profit and Loss A/c Dr.
d) Profit and Loss A/c Dr.
To capital A/c
2. Assertion (A): At the time of admission of a new partner unrecorded liability is debited to the Revaluation account.
Reason (R): Unrecorded liabilities are the gain for the partnership firm.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
3. Match the following
1. Average Profit (a) Internally generated goodwill
2. Purchase Goodwill (b) Acquired by making payment
3. Generated Goodwill (c) Normal business profits

a) 1.(a) , 2. (b), 3. (c)
b) 1.(c) , 2. (b), 3. (a)
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c) 1.(b) , 2. (c), 3. (a)
d) 1.(b) , 2. (b), 3. (a)
OR
The average net profits expected of a firm in future are Rs.68,000 per year and capital invested in the business by the
firm is Rs.3,50,000. The rate of interest expected from Capital invested in this class of business is 12%. The
remuneration of the partners is Estimated to be Rs.8,000 for the year. You are required to find out the super profit.
a) Rs.18000
b) Rs.35000
c) Rs.36000
d) Rs.20000
4. ________ shares are issued by a company at discount to its employees or directors for their hard work and dedication
towards the company.
a) Bonus Shares
b) Preference Shares
c) Employees Stock Option Scheme
d) Sweat Equity Shares
OR
Which of the following statement is incorrect about Preference Shares?

a) Can be converted
b) Return of capital on winding up of company
c) Right to receive Dividend
d) No Dividend
5. Fool Ltd., issued 1000 10% debentures of Rs.100 each at a premium of Rs.5 payable as follows- on application Rs.40, on
Allotment Rs.65 (including premium). All the debentures were subscribed and money was received. What journal entry
is to be recorded at the time of allotment of debentures.
a)
Deb allotment a/c Dr. 65,000
To 10% Debenture holder A/c 60,000
To Discount A/c 5,000

b)
Deb Application and allotment A/c Dr. 65,000
To 10% Debenture A/c 60,000
To Security Premium A/c 5,000

c)
Deb allotment A/c Dr. 65,000

d)
Deb allotment a/c Dr. 65,000
To Debenture holder A/c 60,000

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6. What should be the journal entry when A takes over loan payable to Mrs. A ₹20,000
a)
Realisation A/c Dr. 20,000
To A's Capital A/c 20,000
b)
Bank A/c Dr. 58,000
c)
To Bank A/c 58,000

d)
Loan A/c Dr. 58,000
OR
Total creditors of the firm (already transferred to Realisation Account) were ₹30,000. Out of this, creditors waived their
claim of ₹5,000 while the rest agreed to allow discount @ 10% of their respective claim. Journal Entry would be
a)
To Bank A/c 25,000
b)
Bank A/c Dr. 22,500
To Realisation A/c 22,500
c)
Mohan's Capital A/c Dr. 22,500
d)
Bank A/c Dr. 25,000

7. Pass necessary journal entry for reissue of forfeited shares at discount.
a) Bank A/c ... Dr.
Share Forfeiture A/c ... Dr.
To Share Capital A/c
b) Bank A/c ... Dr.
c) Share Capital A/c ... Dr.

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Share Forfeited A/c ... Dr.
To Bank A/c
d) Bank A/c ... Dr.
Share Capital A/c ... Dr.
To Share Forfeited A/c
8. Vinod Limited offered 20,000 debentures @ 100 each at a premium of 10%. The issue was oversubscribed by 3 times.
The company made full allotment to 4,000 applicants and pro-rata allotment made to the 36,000 applicants and
remaining applications are rejected. How much amount is to be refunded by the company?
a) 22,00,000
b) 33,00,000
c) 44,00,000
d) 18,00,000
OR
Floral Ltd, a company has issued 2000 9% debentures of ₹100 each at a discount of 10% payable as ₹40 on application
₹50 on the allotment. Calculate the amount of debenture discount to be recorded.
a) ₹20000
b) ₹30000
c) ₹50000
d) ₹2000
Question No. 9 to 10 are based on the given text. Read the text carefully and answer the questions:
A, B and C are partners sharing profits and losses in the ratio of 5:4:1. C acquires th share from A. There is an
1
accumulated profit or losses of ₹ 90,000. The assets have to be revalued and liabilities reassessed. They decided not to
record the revised values of assets and liabilities in the books.
9. In case of change in profit sharing ratio, the question is silent, then accumulated profit or losses of ₹ 90,000 are:
a) None of these
b) Not distributed
c) Adjusted
d) Distributed
10. Revaluation account is prepared ________ the value of assets.
a) To revise
b) Not to revise
c) None of these
d) To distribute
11. ABC Ltd. purchased machinery for ₹200000 and issued 9% debentures of ₹100 each to the vendors. Make journal
entries if the debentures were issued at a premium of ₹10. Vendor’s account should be debited by:
a) ₹210000
b) ₹2000000
c) ₹2,00,000
d) ₹190000
12. A and B sharing profit in the ratio of 4:3. C is admitted and the balance sheet shows a balance of General Reserve
₹70,000. What amount of General Reserve should be transferred to B’s A/c
a) ₹30,000
b) ₹15,000

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c) ₹35,000
d) ₹40,000
13. When a product plays important role in increasing the goodwill of the firm, what factor is mainly responsible for that?
a) Efficiency of Management
b) Quality of product.
c) Favourable Contracts
d) Market Situation
14. P and Q were partners in firm sharing profits and losses in the ratio 3:2. They admit R for share in profits and
1
guaranteed that his share will not be less than Rs. 25,000. Total profit of the firm was Rs. 90,000 Calculate the share of
profit for each partner when a guarantee is given by P.
a) P = ₹40,000, Q = ₹25,000, R = ₹25,000
b) P = ₹35,000, Q = ₹10,000, R = ₹25,000
c) P = ₹35,000, Q = ₹30,000, R = ₹25,000
d) P = ₹39,000, Q = ₹26,000, R = ₹25,000
15. How to calculate the share of the goodwill of Retiring or deceased partner?
a) Value of the firm’s goodwill × outgoing partner's share of profit
b) Value of the firm’s goodwill × Sacrificing partner’s share
c) Value of the firm’s goodwill × new partner's profit share
d) Value of the firm’s goodwill × Gainer partner’s share
OR
Saurabh, Shirin and Somesh are partners in a firm sharing profits and losses in the ratio of 3:2:1. Somesh retires and the
new profit sharing ratio between Saurabh and Shirin is 3:2. The gaining ratio between Saurabh and Shirin will be:
a) 3 : 1
b) 2 : 1
c) 3 : 2
d) 1 : 1
16. When a new partner is admitted he acquires his share of profits from the old partners, this will ________ the old
partner’s shares in profits:
a) Remain same
b) Reduce
c) Increase
d) None of these
17. A, B and C are partners in a firm sharing profits and losses as , and respectively. B retires and his share is taken
7
15
1
3
1
by A and C in the ratio of 3 : 2. Immediately, D is admitted for rd share of profit, th of which was given by A and the
1 1
3 4
remaining share was taken equally from A and C. Calculate new profit-sharing ratio after D’s admission.
18. A B and C are partners in firm sharing profits and losses in the ratio of 3 : 2 : 1. They decide to take D into a partnership
for 1/4th share on 1st April 2017. For this purpose, goodwill is to be valued at 3 times the average annual profits of the
previous four or five years whichever is higher. The agreed profits for goodwill purpose of the past five years are as
follows:
₹
Year ending on 31st March 2013 1,30,000

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Year ending on 31st March 2017

Calculate the value of Goodwill.
19. Nav Lakshmi Ltd invited applications for issuing 3,000, 12% debentures of ₹100 each at a premium of ₹50 per
debenture. The full amount was payable on application. Applications were received for 4,000 debentures. Applications
for 1,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining
applicants.
Pass necessary journal entries for the above transactions in the books of Nav Lakshmi Ltd.
20. X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share future profits and losses in
the ratio of 2 : 3 : 5 with effect from 1st April, 2019. Following items appear in the Balance Sheet as at 31st March,
2019:
₹ ₹
General Reserve 75,000 Advertisement Suspense A/c (Dr.) 50,000

Workmen Compensation Reserve 12,500 Profit and Loss Account (Cr.) 37,500
21. Sony Media Ltd. issued 50,000 shares of ₹ 10 each payable ₹ 3 on the application, ₹ 4 on allotment and balance on first
and final call. Applications were received for 1,00,000 shares and allotment was made as follows:
i. Applicants for 60,000 shares were allotted 30,000 shares,
ii. Applicants for 40,000 shares were allotted 20,000 shares,
Anupam to whom 1,000 shares were allotted from category (i) failed to pay the allotment money. Pass journal entries up
to allotment.
22. Anju, Manju and Sanju sharing profit in the ratio of 3 : 1 : 1 decided to dissolve their firm. On March 31, 2014 their
position was as follows:
Balance Sheet Anju, Manju and Sanju

as on March 31, 2017
Liabilities Amount ₹ Assets Amount ₹

Creditors 60,000 Cash at Bank 55,000
Loan 15,000 Stock 83,000
Capitals: Furniture 12,000

Anju 2,75,000 Debtors 2,42,000
Manju 1,10,000 Less: Provision for doubtful debts 12,000 2,30,000
Sanju 1,00,000 4,85,000 Buildings 2,00,000

Manju’s loan 20,000
5,80,000 5,80,000
It is agreed that:
i. Anju takes over the Furniture at ₹ 10,000 and Debtors amounting to ₹ 2,00,000 at ₹ 1,85,000. Anju also agrees to
pay the creditors,
ii. Manju is to take over Stock at book value and Buildings at book value less 10%,
iii. Sanju is to take over remaining Debtors at 80% of book value and responsibility for the discharge of the loan,
iv. The expenses of dissolution amounted to ₹ 2,200.
Prepare Realisation Account, Bank Account, and Capital Accounts of the partners.

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23. X Ltd invited applications for issuing 75,000 equity shares of ₹10 each at a premium of ₹ 5 per share. The amount was
payable as follows
On application and allotment — ₹9 per share (including premium)
On first and final call — Balance amount.
Applications for 3,00,000 shares were received. Applications for 2,00,000 shares were rejected and money refunded.
Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was
duly received except on 1,500 shares applied by Ravi. His shares were forfeited. The forfeited shares were reissued at a
discount of ₹4 per share.
Excess application and allotment money can be utilised for calls.
Pass necessary journal entries for the above transactions in the books of X Ltd.
24. Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their
Balance Sheet was as follows-
Balance Sheet of Ram, Mohan, Sohan and Hari

as on 1st April, 2016
Liabilities ₹ Assets ₹
Capital A/cs: Fixed Assets 9,00,000
Ram 4,00,000 Current Assets 5,20,000

Mohan 4,50,000
Sohan 2,50,000
Hari 2,00,000 13,00,000

Workmen Compensation Reserve 1,20,000
14,20,000 14,20,000
From the above date, the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purchase the
goodwill of the firm was valued at ₹1,80,000. The partners also agreed for the following-
a. The claim for workmen compensation has been estimated at ₹1,50,000.
b. Adjust the capitals of the partners according to new profit-sharing ratio by opening Partners' Current Accounts.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
25. Manoj, Naveen and Deepak were partners sharing profits and losses in the ratio of 4 : 3 : 2. As at 1st April 2018, their
Balance Sheet was as follows:
Trade Creditors 7,000 Cash in hand 5,900

Capitals: Debtors 19,000
Manoj 50,000 Less: Provision 1,400 17,600
Naveen 39,000 Stock 13,500

Deepak 30,000 1,19,000 Plant and Machinery 18,000
Motor Car 20,000
Buildings 48,000
Goodwill 3,000
1,26,000 1,26,000

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Deepak retired on the above date as per the following terms:
i. Goodwill of the firm was valued at ₹ 21,000.
ii. Stock to be appreciated by 10%.
iii. Provision for doubtful debts should be 5% on debtors.
iv. Machinery is to be valued at 5% more than its book value.
v. Motor Car is revalued at ₹ 15,500. Retiring partner took over Motor Car at this value.
vi. Deepak be paid ₹ 2,000 in cash and balance be transferred to his loan account.
Show necessary journal entries. Prepare Revaluation Account, Capital Accounts and Opening Balance Sheet of
continuing partners.
26. Pass the necessary journal entries for the issue of debentures for the following transactions:
i. Anand Ltd. issued 800, 9 % Debentures of ₹ 500 each at a premium of 20 %, to the vendors for machinery purchased
from them costing ₹ 4,80,000
ii. Dawar Ltd. issued 5,000, 7 % Debentures of ₹ 200 each at a premium of 5 %, redeemable at a premium of 10 %.
iii. Novelty Ltd. issued 1,000, 8 % Debentures of ₹ 100 each at a discount of 5 %, redeemable at a premium of 10 %.
Part B :- Analysis of Financial Statements
27. Dividend paid by a Trading company is classified under which kind of activity while preparing cash flow statement
a) Cash flow from operating activities
b) Cash Equivalent
c) Cash flow from Financing activities
d) Cash flow from Investing activities
OR
Increase in the balance of Securities premium reserve will be ________.

a) Less in Investing Activities
b) Less in Financing Activities
c) Add in Financing Activities
d) Add in Investing Activities
28. Which of these is not the objective of Financial Statements:

a) To measure the financial strength
b) To provide useful informations to the management
c) To measure the earning capacity or profitability
d) None of these
29. Value of copyrights was Rs.68,000 in the year 31st March 2015 but after one year on 31st March 2016 value of
copyrights was Rs.1,00,000. How it will affect the cash flow statement?
a) Add Rs. 1,00,000 in investing activities
b) Less Rs. 32,000 in investing activities
c) Add Rs. 32,000 in investing activities
d) Less Rs.1,00,000 in investing activities
OR
Mention the net amount of source of cash when a fixed asset (having a book value of Rs. 15,000) is sold at a loss of Rs.
5,000.
a) 5,000
b) 10,000

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c) 15,000
d) 20,000
30. Why would public be interested in analyzing financial statement?
a) To know whether the business is able to pay debt
b) To know the liquidity of business
c) To know the earning capacity
d) to know information about the continuance of an enterprise
31. Prepare Notes to Accounts for Change in Inventories for the year ended 31st March, 2018 from the following
information and determine the amount that will be shown in the Statement of Profit and Loss:
Inventory on 1-4-2017 Inventory on 31-3-2018
₹ ₹
Stock in Trade 4,00,000 3,60,000
Finished Goods 7,00,000 10,00,000

Work-in-Progress 4,50,000 5,80,000
32. Following is the Statement of Profit and Loss of SK Ltd. for the year ended 31st March, 2019:
Particulars Note No. ₹
I. Revenue from Operations (Net Sales) 20,00,000
II. Expenses:
Cost of Materials Consumed 11,25,000
Changes in Inventories of Finished Goods and WIP 50,000
Employees Benefit Expenses 30,000

Finance Costs 25,000
Other Expenses 1,70,000
Total Expenses 14,00,000

III. Profit from Operations (I - II) 6,00,000
You are required to compute Operating Ratio and Gross Profit Ratio.
33. State giving reason, whether the Current Ratio of a company will improve or decline or not change in each of the
following transactions if Current Ratio is (i) 1 : 1, and (ii) 0.8 : 1:
a. Cash paid to creditors.
b. Bills Payable discharged.
c. Bills Receivable endorsed to a creditor.
d. Goods purchased on credit.
e. Purchased goods for cash.
f. Bills Receivable endorsed to a creditor dishonoured.
g. Payment of dividend payable.
h. Sale of goods for ₹15,000 (Cost ₹10,000).
i. Sale of old furniture for ₹12,000 (Book Value ₹15,000).
OR

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Calculate trade receivables turnover ratio from the following:
Credit Revenue from Operations ₹ 2,00,000; Opening Trade Receivables ₹ 30,000 and Closing Trade Receivables
₹ 50,000.
State, giving reason, which of the following transactions will (a) increase, (b) decrease or (c) not alter the trade
receivables turnover ratio.
i. Collection from trade receivables ₹ 10,000
ii. Sold goods on credit ₹ 20,000
iii. Revenue from Operations returns ₹ 4,000
iv. Credit purchase ₹ 50,000
34. Following is the Balance Sheet of K.K. Ltd. as at 31st March, 2015:
BALANCE SHEET as at 31st March, 2015
Particulars Note No. 31st March, 2015 ₹ 31st March, 2014 ₹

I. Equity and Liabilities
1. Shareholders' Funds
(a) Share Capital 10,00,000 8,00,000
(b) Reserve and Surplus 1 4,00,000 (1,00,000)
2. Non-Current Liabilities:
Long-term Borrowings 2 9,00,000 10,00,000
3. Current Liabilities:
(a) Short term Borrowings 3 3,00,000 1,00,000

(b) Short term Provisions 4 1,40,000 1,80,000
Total 27,40,000 19,80,000
II. Assets:
1. Non-Current Assets:
(a) Fixed Assets:
(i) Tangible Assets 5 20,06,000 14,40,000

(ii) Intangible Assets 6 40,000 60,000
(b) Non-Current Investments 2,00,000 1,50,000
2. Current Assets
(a) Current Investments 1,00,000 1,20,000
(b) Inventories 7 2,14,000 90,000
(b) Cash and Cash Equivalents 1,80,000 1,20,000

Total 27,40,000 19,80,000
Notes to Accounts:
Particulars 31 March, 2019 (₹) 31 March, 2018 (₹)
1. Reserve and Surplus
Surplus (Balance in statement of Profit and Loss) 4,00,000 (1,00,000)

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2. Long term Borrowings

12% debentures 9,00,000 10,00,000
3. Short term Borrowings

Bank overdraft 3,00,000 1,00,000
4. Short term provisions
Provision for tax 1,40,000 1,80,000

5. Tangible Assets
Machinery 24,06,000 16,42,000
Less : Accumulated Depreciation (4,00,000) (2,02,000)

20,06,000 14,40,000
6. Intangible Assets
Goodwill 40,000 60,000

7. Inventories
Stock in trade 2,14,000 90,000
Additional Information:
i. 12% Debentures were redeemed on 31st March, 2015.
ii. Tax ₹ 1,40,000 was paid during the year.
Prepare Cash Flow Statement.

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Class 12 - Accountancy
Sample Paper - 05 (2022-23)
Solution
Part A:- Accounting for Partnership Firms and Companies

1. (c) Profit and Loss A/c Dr.
Explanation: Correct Journal Entry is Profit and loss A/c Debit and Profit and loss appropriation account Credit. To find
out the net profit all charge items should be deducted and all non-operating incomes should be added to the profit. Net
Profit shown by profit and loss account is transferred to the credit side of profit and loss appropriation account.
Journal Entry will be:
P & L A/c ... Dr
To P & L Appropriation A/c
2. (c) A is true but R is false.
Explanation: A is true but R is false.
3. (b) 1.(c) , 2. (b), 3. (a)
Explanation: 1. Average Profit means normal business profits (average of previsous years profits).
2. Purchased Goodwill is acquired by making extra payment on purchase of a running business.
3. Self Generated Goodwill is internally generated goodwill which is not shown in the books of accounts.
OR
(a) Rs.18000
Explanation: Calculation of Super Profit:
Actual Average profit = 68,000 – 8,000 (remuneration) = 60,000
Normal profit = 3,50,000 × 12/100 = 42,000
Super Profit = 60,000 – 42,000 = 18,000
4. (d) Sweat Equity Shares
Explanation: Sweat equity shares” are such equity shares, which are issued by a company to its directors or employees
at a discount for providing their know-how or making available rights in the nature of intellectual property rights or
value additions, by whatever name called.
OR
(d) No Dividend
Explanation: Preference Shares are those shares on which dividend to be paid as a fixed amount. Divided into
preference shareholders is paid before dividend-paying to equity shareholders. These shares are convertible and can be
redeemed.
5. (c)

Explanation: Securities premium will be credited at the time of allotment by 5 × 1000 = 5000

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6. (a)

Explanation: When liability is taken over by a partner, in such a case do not use cash/bank account for the settlement of
that liability. Entry will be:
OR
(c)
Mohan's Capital A/c Dr. 22,500
Explanation: Calculation of the amount paid to the creditors in full settlement:
Total amount due to the creditors = 30,000
Amount waived by the creditors = 5,000
Amount due after deducting the amount waived by creditors = 30,000 - 5,000 = 25,000
Final Payment made to creditors are = 25,000 - 2500 ( 25000 × 10% Discount ) = 22,500
7. (a) Bank A/c ... Dr.
Share Forfeiture A/c ... Dr.
Explanation: The bank account is debited with the amount received on the reissue. Share capital is credited with a face
value of shares reissued and share forfeiture account is debited with the amount of loss on the reissue. The amount
debited to forfeited shares account will be as:
No. of shares reissued x (Paid-up the value-Reissue price per share)
8. (c) 44,00,000
Explanation: Company has to refund Rs.44,00,000. Excess money received from 40000 applicants will be refunded.
Total application received = 20000 + 20000 × 3 (oversubscribed) = 80000
So application refunded = 80000 - 4000 - 36000 = 40000
Total amount refunded = 40000 × 110 = 44,00,000
OR
(a) ₹20000
Explanation: Discount rate = 10
No of debentures = 2000
So Amount of Discount to be debited ₹20,000
i.e. 2,000 × 10 = 20,000
9. a. (d) Distributed
Explanation: Distributed

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10. a. (a) To revise
Explanation: To revise
11. (c) ₹2,00,000
Explanation: Vendor’s Account should be debited with Rs.2,00,000 since machinery cost is Rs.200000 and the total
amount due to him is Rs.2,00,000.
12. (a) ₹30,000
Explanation: Calculation of amount to be transferred to B's Capital A/c:
Old Ratio of A and B = 4:3
B’s Share of General Reserve = Rs.70,000 × = Rs.30,000
3
13. (b) Quality of product.

Explanation: A firm producing qualitative products can easily have name and fame in the market. This lead to increase
in the value of goodwill. The business firms which enjoys good commercial reputation for the quality of their products,
they have a high value of goodwill.
14. (c) P = ₹35,000, Q = ₹30,000, R = ₹25,000
Explanation: New Profit Sharing Raio = 3:2:1
P’s Share of Profit = 90,000 × 3
6
= 45,000
Q’s Share of Profit = 90,000 × = 30,000
2
R’s Share of Profit = 90,000 × = 15,000

1
R should get a minimum profit of rs. 25,000 but he is getting only Rs.15,000, deficiency Rs.10,000 (25,000 -
10,000) will be met by P.
Now P’s Share will be = 45,000 - 10,000 = Rs. 35,000
15. (a) Value of the firm’s goodwill × outgoing partner's share of profit
Explanation: At the time of retirement, the share of goodwill is calculated for the retired or deceased partner as follows:
Value of the firm’s goodwill × His Share of profit
OR
(c) 3 : 2
Explanation: The gaining ratio between Saurabh and Suresh is 3: 2
Particulars Saurabh Shirin Somesh
Old profit-sharing Ratio 3/6 2/6 1/6
New profit sharing Ratio 3/5 2/5 –

Gaining Ratio = New – Old RatioGaining Ratio = New – Old Ratio 3/30 2/30
16. (b) Reduce
Explanation: Old partners will sacrifice some share in favour of a new partner. In simple words, when a new partner is
admitted he acquires his share of profits from old partners, hence this will reduce the old partner’s shares in profits.
17. i. Existing Share A = ,C=
7 1
15 5
ii. Share acquired from B = A = 1
3
×
3
=
1
,C= 1
3
×
2
=
2
5 5 5 15
iii. New Share = A = ,C=

7 1 10 1 2 5
+ = + =
15 5 15 5 15 15
iv. New Share of A and C = or 2 : 1

10 5
:
15 15
v. Share given by A to D = 1
3
×
1
4
=
1
12
vi. Remaining share to be acquired by D =

1 1 4−1 3
− = =
3 12 12 12
It is acquired by D equally from A and C

D acquires 1
2
of 3
12
=
1
8
each from A and C

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vii. New Share of A = 2 1 1 16−2−3 11
− − = =
3 12 8 24 24
New Share of C =
1 1 8−3 5
− = =
3 8 24 24
Hence, New Profit Sharing Ratio of A, C and D = = 11 : 5 : 8

11 5 1
: :
24 24 3
18. Calculation of Average Profits:

Based on 4 year's Profits ₹ Based on 5 year's Profits ₹
31st March 2014 1,20,000 31st March 2013 1,30,000

31st March 2015 1,50,000 31st March 2014 1,20,000
31st March 2016 1,10,000 31st March 2015 1,50,000
31st March 2017 2,00,000 31st March 2016 1,10,000

31st March 2017 2,00,000
5,80,000 7,10,000
Average Profit = 5,80,000 ÷ 4 = ₹ 1,45,000 Average Profit = 7,10,000 ÷ 4 = ₹ 1,42,000

4 year's average profit is higher than 5 year's average profit. Therefore, the value goodwill =Average Profit × Years of
Purchase= ₹ 1,45,000 × 3 = ₹ 4,35,000
19. BOOKS OF NAV LAKSHMI LTD.

JOURNAL
Date Particulars L.F. Amt (Dr) Amt (Cr)
Bank A/c (4,000 × 150) Dr 6,00,000

To Debenture Application and Allotment A/c 6,00,000
(Being application money received on 4,000 12%

debentures)
Debenture Application and Allotment A/c Dr 6,00,000
To 12% Debentures A/c (3,000 × 100) 3,00,000
To Securities Premium Reserve A/c (3,000 × 50) 1.50.000

To Bank A/c (1,000 × 150) 1.50.000
(Being application money transferred to 12% debentures

account and excess refunded)
NOTES :
When amount due on Debentures are received in single installment, Debenture Application and Allotment
Account is credited instead of Application A/c.
Security Premium Reserve is Capital Profit.
20. In the books of Firm

JOURNAL
Dr. Cr.
Date Particulars L.F.
(₹) (₹)
2019-
2020

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April 1 General Reserve Account Dr. 75,000
Workmen Compensation Reserve Account Dr. 12,500
Profit and Loss Account Dr. 37,500

To X's Capital Account 62,500
To Y's Capital Account 37,500
To Z's Capital Account 25,000

(Being the transfer of Reserves and Profits to old partners in their old profit-
sharing ratio)
X's Capital Account Dr. 25,000

Y's Capital Account Dr. 15,000
Z's Capital Account Dr. 10,000
To Advertisement Suspense Account 50,000

(Being the transfer of balance of Advertisement Suspense Account to old
partners in their old ratio)
21. Journal
Date Particulars L.F. Dr. (₹) Cr. (₹)
Bank A/c (1,00,000 × 3) Dr. 3,00,000
To Share Application A/c 3,00,000

(Received application money on 1,00,000 shares)
Share Application A/c Dr. 3,00,000
To Share Capital A/c (50,000 × 3) 1,50,000

To Share Allotment A/c 1,50,000
(Transfer of application money to Share Capital)
Share Allotment A/c (50,000 × 4) Dr. 2,00,000

To Share Capital A/c 2,00,000
Allotment due on 50,000 shares
Bank A/c (W.N. 1) Dr. 49,000

To Share Allotment A/c 49,000
(Allotment money received after adjustment of excess on application and arrears)

Working Notes:
i. Computation of amount received on the allotment:
Allotment due (50,000 × 4) = ₹ 2,00,000
Less: Amount received on application in excess (on 50,000 shares @ ₹ 3 each) = ₹ 1,50,000
₹ 50,000
Less: Amount due but not received on shares of Anupam = 1,000

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₹ 49,000
ii. Calculation of Amount not Received on the shares of Anupam
Amount due on allotment of Anupam's Share (4 × 1,000) = 4,000
Less: Excess received on application (3 × 2,000* – 3 × 1,000) = 3,000
1,000
Share alloted to Anupam = 1,000
Share applied by Anupam = 1,000 × 60000
= 2,000
30000
22. Books of Anju, Manju and Sanju

Realisation Account
Dr. Cr.
Particulars Amount ₹ Particulars Amount ₹
Stock 83,000 Provision for doubtful debts 12,000
Furniture 12,000 Creditors 60,000

Debtors 2,42,000 Loan 15,000
Debtors 2,00,000 Anju’s capital:
Anju capital (creditors) 60,000 Furniture 10,000

Sanju capital (loan) 15,000 Debtors 1,85,000 1,95,000
Bank (realisation expenses) 2,200 Manju’s capital:
Stock 83,000
Buildings 1,80,000 2,63,000
Sanju’s capital: (remaining debtors less 20% of book value) 33,600
Loss transferred to:

Anju’s capital 21,360
Manju’s capital 7,120
Sanju’s capital 7,120 35,600

6,14,200 6,14,200
Partners Capital Accounts
Dr. Cr.
Date Particulars J.F. Anju ₹ Manju ₹ Sanju ₹ Date Particulars J.F. Anju ₹ Manju ₹ Sanju ₹
Realisation
1,95,000 2,63,000 33,600 Balance b/d 2,75,000 1,10,000 1,10,000
(assets)
Realisation Realisation
21,360 7,120 7,120 60,000 - -
(loss) (creditors)
Bank 1,18,640 - 74,280 Realisation - - 15,000
Manju loan (loan) - 20,000
Bank - 1,40,120 -

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3,35,000 2,70,120 1,15,000 3,35,000 2,70,120 1,15,000
Alternatively, Manju's loan may be first paid through bank account then the amount payable by Manju on account of
debit balance in her capital account. ₹1,60,120 can be corrected form her.
Bank Account
Dr. Cr.
Date 2017 Particulars Amount ₹ Date 2017 Particulars Amount ₹

Balance b/d 55,000 Realisation (expenses) 2,200
Manju’s capital 1,40,120 Anju’s capital 1,18,640
Sanju’s capital 74,280

1,95,120 1,95,120
23. JOURNAL
Date Particulars L.F. Amt. (Dr.) Amt. (Cr.)

Bank A/c (3,00,000 × 9) Dr. 27,00,000 ...
To Share Application and Allotment A/c ... 27,00,000
(Being application and allotment received.) ... ...

Share Application and Allotment A/c Dr. 27,00,000 ...
To Share Capital A/c (75,000 × 4) ... 3,00,000
To Securities Premium Reserve A/c (75,000 × 5) ... 3,75,000

To Share First and Final Call A/c ... 2,25,000
To Bank A/c (2,00,000 × 9) 18,00,000
(Being application of 75,000 shares transferred to share capital.) ... ...

Share First and Final Call A/c (75,000 × 6) Dr. 4,50,000 ...
To Share Capital A/c ... 4,50,000
(Being first and final call due.) ... ...

Bank A/c Dr. 2,21,625 ...
To Share First and Final Call A/c ... 2,21,625
(Being first and final call received.) ... ...

Share Capital A/c (1,125 × 10) Dr. 11,250 ...
To Share First and Final Call A/c ... 3,375
To Share Forfeiture A/c ... 7,875

(Being 1,125 shares were forfeited.) ... ...
Bank A/c (1,125 × 6) Dr. 6,750 ...
Shares Forfeiture A/c Dr. 4,500

To Share Capital A/c (1,125 × 10) ... 11,250

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(Being all forfeited shares were reissued.) ... ...
Share Forfeiture A/c Dr. 3,375 ...

To Capital Reserve A/c ... 3,375
(Being share forfeiture transferred to capital reserve) ... ...
Analysis Table
Money Money Money Excess Share Amount

Received on Transferred Transferred Application First and Adjusted on :
Applied Allotted Money
Application to Share to Securities and Final Share First
Shares Shares Refunded
and Allotment Capital @ Premium @ Allotment Call @ and Final,
@ ₹9 each ₹4 each ₹5 each Money ₹ 6 each Call after
2,00,000 — 18,00,000 — — — — — 18,00,000
3,00,000 3,75,000
1,00,000 75,000 9,00,000 2,25,00 4,50,000 2,25,0000 —
(75,000 × 4) (75,000 × 5)
3,00,000 75,000 27,00,000 3,00,000 3,75,000 2,25,000 4,50,000 2,25,000 18,00,000
Working Notes
Those who applied for 1,00,000 shares were allotted = 75,000 shares
1,500
Ravi who applied for 1,500 shares was allotted = 75, 000 ×
1,00,000
= 1, 125 shares
Share Application and Allotment received on 1,500 shares of ₹9 each (including premium of ₹5 each) 13,500
Shares allotted (1,125 × 9) (10,125)
Excess application and allotment money received 3,375

Share first and final call due to 1,125 shares of ₹ 6 each 6,750
Share first and final call not received (6,750 - 3,375) 3,375
Therefore, share first and final call received (2,25,000 - 3,375) 2,21,625
24. Revaluation A/c
Particulars ₹ Particulars ₹
To Workmen Compensation Claim 30,000 By Loss Transferred:
Ram 12,000
Mohan 9,000
Sohan 6,000
Hari 3,000 30,000
30,000 30,000
Partners' Capital A/c
Particulars Ram Mohan Sohan Hari Particulars Ram Mohan Sohan Hari
To Reva. A/c 12,000 9,000 6,000 3,000 By Bal. b/d 4,00,000 4,50,000 2,50,000 2,00,000

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To Current A/c 3,15,000 2,05,000 - - By Curr. A/c - - 1,55,000 3,65,000
(Bal. Fig.) (Bal. Fig.)
By Sohan &
To Balance c/d 1,27,000 2,54,000 3,81,000 5,08,000 54,000 18,000 - -
Hari
To Ram & Mohan - - 18,000 54,000

454,000 468,000 405,000 5,65,000 4,54,000 4,68,000 4,05,000 5,65,000
Balance Sheet (Revised)
Capital Accounts: Fixed Assets 9,00,000
Ram 1,27,000 Current Assets 5,20,000

Mohan 2,54,000 Current Accounts:
Sohan 3,81,000 Sohan 1,55,000
Hari 5,08,000 12,70,000 Hari 1,65,000 5,20,000

Current A/cs:
Ram 3,15,000
Mohan 2,05,000 5,20,000

Workmen Compensation Reserve 1,50,000
19,40,000 19,40,000
Working Note:
i. Old Ratio of R : M : S : H = 4 : 3 : 2 : 1
ii. New Ratio of R : M : S : H = 1 : 2 : 3 : 4
iii. Sac./Gain to Ram = (4/10) - (1/10) = 3/10 (Sac.)
to Mohan = (3/10) - (2/10) = 1/10 (Sac.)
to Sohan = (2/10) - (3/10) = -1/10 (Gain)
to Hari = (1/10) - (4/10) = 3/10 (Gain)
iv. Share of Goodwill to Ram = ₹[1,80,000 × (3/10)] = ₹54,000 (Cr.)
to Mohan = ₹[1,80,000 × (1/10)] = ₹18,000 (Cr.)
to Sohan = ₹[1,80,000 × (-1/10)] = ₹18,000 (Dr..)
to Hari = ₹[1,80,000 × (- 3/10)] = ₹54,000 (Dr.)
v. Total New Capital = Old Capital - Reserve Loss
= ₹[13,00,000 - 30,000] = ₹12,70,000
Share to Capital to Ram = [₹12,70,000 × (1/10)] = ₹1,27,000
to Mohan = [₹12,70,000 × (2/10)] = ₹2,54,000
to Sohan = [₹12,70,000 × (3/10)] = ₹3,81,000
to Hari = [₹12,70,000 × (4/10)] = ₹5,08,000
25. IN THE BOOKS OF THE FIRM

JOURNAL ENTRIES
Date Particulars L.F. Dr. Cr.

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myCBSEguide
(₹) (₹)
2018
Manoj's Capital A/c Dr. 1,333
April 1
Naveen's Capital A/c Dr. 1,000
Deepak's Capital A/c Dr. 667
To Goodwill A/c 3,000

(Goodwill appearing in the books written off on Deepak's retirement)
Manoj's Capital A/c Dr. 2,667
Naveen's Capital A/c Dr. 2,000

To Deepak's Capital A/c 4,667
(Deepak's share of goodwill adjusted to the accounts of continuing partners in

their gaining ratio i.e., 4:3)
Stock A/c Dr. 1,350
Provision for Doubtful Debts A/c Dr. 450
Plant and Machinery A/c Dr. 900

To Revaluation A/c 2,700
(Increase in the value assets recorded through revaluation account)
Revaluation A/c Dr. 4,500

Deepak's Capital A/c Dr. 15,500
To Motor Car A/c 20,000
(Motor Car taken over by Deepak at a reduced value of ₹ 15,500)

Manoj's Capital A/c Dr. 800
Naveen's Capital A/c Dr. 600
Deepak's Capital A/c Dr. 400

To Revaluation A/c 1,800
(Transfer of loss on revaluation to old partners account in old profit sharing

ratio)
Deepak's Capital A/c Dr. 18,100
To Cash A/c 2,000
To Deepak's Loan A/c 16,100

(Payment in cash and the transfer of balance of Deepak's Capital to his loan
account)
REVALUATION ACCOUNT
Dr. Cr.

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To Motor Car A/c 4,500 By Stock A/c 1,350
By Provision for Doubtful Debts A/c 450
By Plant & Machinery A/c 900
By Revaluation Loss transferred to:

Manoj's Capital A/c 800
Naveen's Capital A/c 600
Deepak's Capital A/c 400 1,800

4,500 4,500
PARTNER'S CAPITAL ACCOUNTS
Dr. Cr.
Manoj Naveen Deepak Manoj Naveen Deepak
Particulars Particulars
(₹) (₹) (₹) (₹) (₹) (₹)
To Goodwill A/c 1,333 1,000 667 By Balance b/d 50,000 39,000 30,000
To Deepak's Capital By Manoj's Capital
2,667 2,000 - 2,667
A/c A/c
By Naveen's Capital
To Revaluation A/c 800 600 400 2,000
A/c
To Motor Car A/c 15,000
To Cash A/c 2,000
To Deepak's Loan
16,100
A/c
To Balance c/d 45,200 35,400 -
50,000 39,000 34,667 50,000 39,000 34,667
BALANCE SHEET OF THE FIRM (After Deepak's Retirement)

as at 1st April, 2018
Trade Creditors 7,000 Cash in hand 3,900
Deepak's Loan A/c 16,100 Debtors 19,000
Capital account balances: Less: Provision 950 18,050

Manoj 45,200 Stock 14,850
Naveen 35,400 80,600 Plant and Machinery 18,900
Buildings 48,000
1,03,700 1,03,700
Goodwill amounting to ₹ 3,000 will be written off among old partners in old ratio and Deepak’s share in ₹ 21,000 will
be debited to the accounts of Manoj and Naveen in gaining ratio i.e., 4:3.

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26. i. JOURNAL
Vendors Dr. 4,80,000
To 9% Debentures A/c 4,00,000
To Securities Premium Reserve A/c 80,00

(Purchase consideration discharged by issuing 9% Debentures at a premium)
ii. Dawar Ltd.
JOURNAL
Bank A/c Dr. 10,50,000

To Debenture Application and Allotment A/c 10,50,000
(Application money received on 5,000 7% Debentures)
Debenture Application and Allotment A/c Dr. 10,50,000
Loss on issue of Debentures A/c Dr. 1,00,000
To Securities Premium Reserve A/c 50,000

To Premium on redemption of debentures A/c 1,00,000
(Allotment of 7% debentures at a premium, redeemable at a premium)

iii. Novelty Ltd.
JOURNAL
Bank A/c Dr. 95,000
To Debenture Application and Allotment A/c 95,000

(Application money received on 1,000 8% Debentures)
Debenture Application and Allotment A/c Dr. 95,000
Loss on issue of Debentures A/c Dr. 15,000
To Premium on redemption of debentures A/c 10,000
(Allotment of 8% debentures at a discount, redeemable at a premium)

Alternatively:
Debenture Application and Allotment A/c Dr. 95,000
Discount on issue of Debentures A/c Dr. 5,000
Loss on issue of Debentures A/c Dr. 10,000
To Premium on redemption of debentures A/c 10,000

(Allotment of 8% debentures at a discount, redeemable at a premium)

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Part B :- Analysis of Financial Statements

27. (c) Cash flow from Financing activities
Explanation: Cash flow from Financing activities
OR
(c) Add in Financing Activities

Explanation:
Securities premium reserve (SPR) is directly concerned with the share capital which is part of financing activities. It is to
be added in financing activities while preparing a cash flow statement. when is issued at a premium then the premium
amount is received in cash hence it is inflow and should be added.
28. (d) None of these

Explanation: None of these
29. (b) Less Rs. 32,000 in investing activities
Explanation: Increase in the value of copyrights means the company has purchased copyrights (Non-Current Assets).
So Less Rs. 32,000 in investing activities. Increase or decrease in the value of non-current assets is shown under-
investing activity.
OR
(b) 10,000
Explanation: Source of cash is Rs.10,000 only i.e. Book value of asset is 15,000 and sold at a loss of Rs.5,000. Sale
price = Rs. 15,000 - Rs. 5,000 = Rs. 10,000. Sale of assets is inflow of cash.
30. (d) to know information about the continuance of an enterprise
Explanation: Public have an interest in information about the continuance of an enterprise, especially when they have a
long term involvement with, or are dependent on, the enterprise.
31. NOTES TO ACCOUNTS OF CHANGE IN INVENTORY:-
Year ended 31.3.2018
Particulars
₹ ₹
Changes in Inventories of finish Goods, Work in Progress and stock in Trade:
(a) Opening Inventory of finished Goods 7,00,000

Less: Closing Inventory of Finished goods 10,00,000 (3,00,000)
(b) Opening Inventory Work-in-progress 4,50,000
Less: Closing Inventory of Work-in-progress 5,80,000 (1,30,000)
(c) Opening Inventory of stock in Trade Less: Closing Inventory of stock in Trade 4,00,000
Less: Closing Inventory of stock in Trade 3,60,000 40,000
3,90,000
cost of Revenue from Operations + Operating Expenses
32. Operating Ratio = × 100
Revenue from Operations (Net Sales)
₹11,75,000+₹2,00,000
= × 100 = 68.75%
₹20,00,000
Cost of Revenue from Operations = Cost of Materials Consumed + Changes in Inventories of Finished Goods and WIP
= ₹ 11,25,000 + ₹ 50,000 = ₹ 11,75,000

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Operating Expenses = Employees Benefit Expenses + Other Expenses
= ₹ 30,000 + ₹ 1,70,000 = ₹ 2,00,000
₹8,25,000
Gross Profit Ratio = = 41.25%.
Gross Profit
× 100 = × 100
Revenue from Operations ₹20,00,000
Gross Profit = Revenue from Operations - Cost of Revenue from Operations
= ₹ 20,00,000 - ₹ 11,75,000 = ₹ 8,25,000
33. i. Statement Showing the Effect of Various Transactions on Current Ratio of 1 :1
Effect on
Transactions Current Reason
Ratio
Both the Total Current Assets and Total Current Liabilities will decrease by the same
(a) No Change
amount.
(b) No Change
amount.
(c) No Change
amount.
Both the Total Current Assets and Total Current Liabilities will increase by the same
(d) No Change
amount.
Neither the Total Current Assets nor the Total Current Liabilities are affected since it
(e) No Change
is a conversion of one Current Asset (Cash) into another Current Asset (Goods).
Both the Total Current Assets and Total Current Liabilities will increase by the same
(f) No Change
amount.
(g) No Change
amount.
Total Current Assets will increase by ₹5,000 (Profit) but Total Current Liabilities will
(h) Improve
remain unchanged.
Total Current Assets will increase by ₹12,000 (Cash or Bank) but Total Current
(f) Improve
Liabilities will remain unchanged.
ii. Statement Showing the Effect of Various Transactions on Current Ratio of 0.8 :1
Effect on
Transactions Current Reason
Ratio
Both Total Current Assets and Total Current Liabilities will decrease by the same
(a) Decrease
amount.
(b) Decrease
amount.
(c) Decrease
amount.
(d) Improve Both Total Current Assets and Total Current Liabilities will increase by the same

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amount.
Neither Total Current Assets nor Total Current Liabilities are affected since there is
(e) No Change
only a conversion of one Current Asset into another Current Asset.
Both Total Current Assets and Total Current Liabilities are increased by the same
(f) Improve
amount.
Both Total Current Assets and Total Current Liabilities are decreased by the same
(g) Decrease
amount.
Total Current Assets are increased by ₹5,000 (Profit) but Total Current Liabilities
(h) Improve
remain unchanged.
Total Current Assets are increased by ₹ 12,000 (Cash or Bank) but Total Current
(i) Improve
Liabilities remain unchanged.
OR
Credit Revenue from Operations (Credit Sales)
Trade Receivables Turnover Ratio = Average Trade Receivables
2,00,000
=
1
(30,000+50,000)
2
2,00,000
=
40,000
= 5 times
Effect on Trade Receivables Turnover Ratio:
Reasons
Collection from trade receivables will decrease the closing trade receivables which will result in
(i) Increase increase in trade receivables turnover ratio: =
2,00,000 2,00,000
= 5.71 times.
1 35,000
(30,000+40,000)
2
Credit Revenue from Operations will result in equal increase in credit Revenue from Operations and
(ii) Decrease closing trade receivables which will result in decrease in trade receivables turnover ratio as follows:
2,20,000 2,20,000
1
= = 4.4 times.
50,000
(30,000+70,000)
2
Revenue from Operations return will result in equal decrease in credit Revenue from Operations and
(iii) Increase closing trade receivables which will result in increase in trade receivables turnover ratio as follows:
1,96,000 1,96,000
1
= = 5.16 times.
38,000
(30,000+46,000)
2
Not
(iv) Neither the credit Revenue from Operations nor the trade receivables are affected.
Alter
34. CASH FLOW STATEMENT for the year ended 31st March, 2015
Particulars ₹
I. Cash Flow from Operating Activities
Closing Balance as per Surplus 4,00,000

Less: Opening Balance as per Statement of Profit and Loss (1,00,000)
5,00,000
Add: Provision for Tax 1,00,000
Net Profit before Tax and Extraordinary Items 6,00,000
Add: Non-cash and Non-operating Expenses:

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Depreciation 1,98,000
Interest on 12% Debentures 1,20,000
Goodwill amortised 20,000 3,38,000
Operating Profit before Working Capital changes 9,38,000
Less: Increase in Current Assets:
Inventories 1,24,000
Cash Generated from Operations 8,14,000

Less: Payment of Tax 1,40,000
Cash Flow from Operating Activities 6,74,000
II. Cash Flow from Investing Activities
Payment for purchase of Machinery (7,64,000)
Purchase of Non-current Investments (50,000)
Cash Used in Investing Activities (8,14,000)

III. Cash Flow from Financing Activities
Proceeds from Issue of Shares 2,00,000
Repayment of Long-term Borrowings (12% Debentures) (1,00,000)
Payment of Interest on 12 % Debentures (1,20,000)
Increase in Bank Overdraft 2,00,000
Cash Flow from Financing Activities 1,80,000

IV. Net Increase in Cash and Cash Equivalents (I + II + III) 40,000
Add: Opening Balance of Cash and Cash Equivalents (Cash and Cash Equivalents + Current
2,40,000
Investments)
V. Closing Balance of Cash and Cash Equivalents (Cash and Cash Equivalents + Current
2,80,000
Investments)
W.N:
PROVISION FOR TAX ACCOUNT
Dr. Cr.
To Bank A/c 1,40,000 By Balance b/d 1,80,000
To Balance c/d 1,40,000 By Statement of Profit and Loss (B/F) 1,00,000
2,80,000 2,80,000

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12 Accountancy Sp05

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1. This question paper contains 34 questions. All questions are compulsory.

Part A:- Accounting for Partnership Firms and Companies

2. Purchase Goodwill (b) Acquired by making payment

3. Generated Goodwill (c) Normal business profits

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Which of the following statement is incorrect about Preference Shares?

To Discount A/c 5,000

To Security Premium A/c 5,000

To Security Premium A/c 5,000

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To Bank A/c 58,000

To Realisation A/c 25,000

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Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

Year ending on 31st March 2014 1,20,000

Year ending on 31st March 2015 1,50,000

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Year ending on 31st March 2017

General Reserve 75,000 Advertisement Suspense A/c (Dr.) 50,000

Balance Sheet Anju, Manju and Sanju

Liabilities Amount ₹ Assets Amount ₹

Capitals: Furniture 12,000

Sanju 1,00,000 4,85,000 Buildings 2,00,000

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Balance Sheet of Ram, Mohan, Sohan and Hari

Ram 4,00,000 Current Assets 5,20,000

Hari 2,00,000 13,00,000

Trade Creditors 7,000 Cash in hand 5,900

Naveen 39,000 Stock 13,500

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Increase in the balance of Securities premium reserve will be ________.

28. Which of these is not the objective of Financial Statements:

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Finished Goods 7,00,000 10,00,000

Employees Benefit Expenses 30,000

Total Expenses 14,00,000

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BALANCE SHEET as at 31st March, 2015

Particulars Note No. 31st March, 2015 ₹ 31st March, 2014 ₹

(a) Short term Borrowings 3 3,00,000 1,00,000

(i) Tangible Assets 5 20,06,000 14,40,000

(b) Cash and Cash Equivalents 1,80,000 1,20,000

Surplus (Balance in statement of Profit and Loss) 4,00,000 (1,00,000)

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2. Long term Borrowings

3. Short term Borrowings

Provision for tax 1,40,000 1,80,000

Less : Accumulated Depreciation (4,00,000) (2,02,000)

Goodwill 40,000 60,000

Prepare Cash Flow Statement.

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Part A:- Accounting for Partnership Firms and Companies

To 10% Debenture A/c 60,000

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To A's Capital A/c 20,000

To A's Capital A/c 20,000

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13. (b) Quality of product.

R’s Share of Profit = 90,000 × = 15,000

Old profit-sharing Ratio 3/6 2/6 1/6

New profit sharing Ratio 3/5 2/5 –

ii. Share acquired from B = A = 1

iii. New Share = A = ,C=