Name:……………………………………………

G.D GOENKA PUBLIC SCHOOL, DWARKA

Pre-Board Exam (2023-2024)
Class-XII; Section: C Sub: Accountancy
Roll No………… M.M-80/ Time- 3 Hrs.
General Instructions:
(i) This question paper contains 34 questions. All questions are compulsory.
(ii) This question paper is divided into two parts, Part A and B.
(iii) Question 1 to 16 and 27 to 30 carries 1 mark each.
(iv) Questions 17 to 20, 31 and 32 carries 3 marks each.
(v) Questions from 21, 22 and 33 carries 4 marks each.
(vi) Questions from 23 to 26 and 34 carries 6 marks each.
(vii) 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)
Q1. Ajay and Vijay are partners in a firm sharing profits in the ratio of 5:3. They admitted Shrey as a (1 Mark)
partner for 1/5th share in the profits of the firm. Shrey brings Rs.10,000 for his share of goodwill.
Following entry was passed when Shrey's share of goodwill was credited to sacrificing partners:
JOURNAL
Date Particulars L.F Dr (Rs.) Cr (Rs.)
Premium for Goodwill A/c ..Dr 10,000
To Ajay's Capital A/c 5,000
To Vijay's Capital A/c 5,000
(Shrey’s Share of goodwill credited to sacrificing
partners)
New profit-sharing ratio of Ajay, Vijay and Shrey will be
(a) 7 : 9 : 4 (b) 5 : 3 : 2 (c) 7 : 5 : 3 (d) 21 : 11 : 8

Q2. Assertion (A): Pawan and Raj are partners in a firm not having Partnership Deed. Pawan has given (1 Mark)
loan to the firm of Rs.50,000. He claims interest @ 6% p.a.
Reason (R): In the absence of Partnership Deed, a partner who has given loan to the firm, is entitled
to claim interest on his loan @ 6%.
In the context of above two statements, which of the following is correct?
(a) Assertion (A) is correct but Reason (R) is incorrect.
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of
Assertion (A).
(c) Both Assertion (A) and Reason (R) are incorrect.
(d) Both Assertion (A) and Reason (R) are correct and Reason (R) is correct explanation of
Assertion (A).
Q3. Amrit Dhara Ltd. issued 10,000 Equity Shares of Rs.10 each at a premium of 20% payable Rs.3 on (1 Mark)
Application, Rs.5 on Allotment and balance as First and Final Call. It had called shareholders to pay
allotment money. Share Capital yet to be called will be
(a) Rs.40,000 (b) Rs.20,000 (c) Rs.30,000 (d) Rs. 50,000
Or
Debentures which are transferable by mere delivery are termed
(a) Redeemable Debentures (b) Registered Debentures
(c) Bearer Debentures (d) Non-convertible Debentures
Q4. Statement I: In the absence of any provision in the partnership deed, the partners share profits and (1 Mark)
losses in their capital ratio.
Statement II: Current Accounts of partners are maintained under Fluctuating Capital Method.
(a) Both statements are correct.
(b) Both statements are incorrect.
(c) Statement I is correct and Statement II is incorrect.
 (d) Statement I is incorrect and Statement II is correct.
Or
Adil, Bhavya and Chris are partners sharing profits in the ratio of 5: 4: 1. Chris is given guarantee
that his share of profit in any year will not be less than Rs.50,000. Deficiency in profit share of Chris
will be borne by Bhavya. The Journal entry passed for deficiency met by Bhavya was:
Date Particulars L.F Dr (Rs.) Cr (Rs.)
Bhavya’s Capital 10,000
A/c ..Dr 10,000
To Chris's Capital A/c
(Deficiency met by Bhavya)
Profit for the year was
(a) Rs.3,00,000 (b) Rs.3,50,000 (c) Rs.4,00,000 (d) Rs.5,00,000
Q5. Complete the following statement: (1 Mark)
_________________________should compensate____________________ at the time of
Reconstitution of Partnership.
(a) New partner, Gaining partners (b) Retiring partner, Sacrificing partners
(c) Gaining partners, Sacrificing partners (d) Sacrificing partners, Gaining partners
Q6. Paras Milk Ltd. issued 10,00,000, 8% Debentures of Rs.10 each at 10% Discount and redeemable (1 Mark)
at a premium. Loss on Issue of Debentures of Rs.20,00,000 was written off from Securities Premium
(Rs.10,00,000) and Statement of Profit & Loss (Rs.10,00,000). The redemption value of each
debenture will be
(a) Rs.12 (b) Rs.11 (c) Rs.10 (d) Rs.13
Or
Sunflower Ltd. issued 50,000, 8% Debentures of Rs.100 each at a discount of 5% and redeemable
at a premium. Rs.50 was payable on application and balance on allotment. It received Rs.19,12,500
as allotment money. Number of debentures on which allotment money is in arrears is
(a) 6,500 (b) 7,500 (c) 8,500 (d) 9,500
Q7. Assertion (A): Securities Premium cannot be used for writing off revenue losses. (1 Mark)
Reason (R): Securities Premium may be applied only for the purposes stated in Section 52(2) of the
Companies Act, 2013.
In the context of above two statements, which of the following is correct?
(a) Assertion (A) is correct but Reason (R) is incorrect.
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of
Assertion (A).
(c) Assertion (A) is not correct but the Reason (R) is correct.
(d) Both Assertion (A) and Reason (R) are correct and Reason (R) is correct explanation of
Assertion (A).
Q8. Due to change in profit-sharing ratio, Satya's gain is 1/6, while Manan's sacrifice is 1/6. They decided (1 Mark)
to adjust the following accumulated profits, losses and reserves without affecting their book figures,
by passing an adjusting entry:
Rs.
General Reserve 1,00,000
Profit & Loss A/c (Dr.) 2,00,000
Advertisement Suspense A/c 50,000
The necessary adjusting entry will be:
(a) Dr. Satya and Cr. Manan by Rs.25,000.
(b) Dr. Manan and Cr. Satya by Rs.25,000.
(c) Dr. Satya and Cr. Manan by Rs. 1,50,000.
(d) Dr. Manan and Cr. Satya by Rs.1,50,000.
Or
A, B and C were partners in a firm sharing profits in the ratio of 5:3: 2. The firm closes its books on
31st March every year. On 1st November, 2022, B died. Under the partnership agreement,
deceased partner's share in profit till death would be computed on the basis of last year's profit
which was Rs.1,75,000. On examination, it was noticed that an abnormal loss of Rs.12,000 was
 debited to Profit & Loss A/c and a profit of abnormal nature of Rs.7,000 was credited to Profit & Loss
Account. For the last several years firm's profits have been showing an upward trend of 20%.
Calculate B's share in profit till date of death.
(a) Rs.37,500 (b) Rs.37,800 (c) Rs.36,700 (d) Rs.37,200
Read the following hypothetical situation and Answer Questions 9, 10 and 11. (1 Mark)
Sheetal and Mannat are partners sharing profits and losses in the ratio of 3: 2. On 31st March, 2023,
their Capital Accounts were Rs.55,000 and Rs.45,000 after distribution of net profit of Rs.15,000 and
drawings of Rs. 6,000 and Rs.4,000 respectively. After closing the books, following discrepancies
were noticed:
(i) An item in the inventory was valued at Rs.12,800 but it had realisable value of Rs.8,300.
(ii) Rs.2,400 paid towards insurance premium for the year ending on 30th June, 2023 had been
debited to Profit & Loss Account.
(iii) Interest on capital @ 5% p.a. on partners' capitals at the beginning of the year and interest on
drawings @ 8% p.a. were not allowed/charged.
Balances of opening capitals on 1st April, 2022 were:
Sheetal (Rs.) Mannat (Rs.)
Q9. (a) 40,000 35,000
(b) 46,000 39,000
(c) 52,000 43,000
(d) 64,000 51,000
Q10. Correct net profit is (1 Mark)
(a) Rs.15,500 (b) Rs.11,100 (c) Rs.10,500 (d) Rs.12,000
Q11. Divisible profit is (1 Mark)
(a) Rs.6,350 (b) Rs.6,750 (c) Rs.7,100 (d) Rs.11,500
Q12. Which of the following statements is false? (1 Mark)
(a) Debentures can be issued for cash or for consideration other than cash or as collateral security.
(b) Debentures cannot be converted into shares.
(c) A company can buy its own debentures.
(d) A debenture issued at a discount can be redeemed as a premium.

Q13. When shares are forfeited, the Share Capital Account is debited _________by the Shares Forfeited (1 Mark)
Account is credited with______________
(a) Paid-up capital of shares forfeited, called-up capital of shares forfeited.
(b) Called-up capital of shares forfeited, calls-in-arrears of shares forfeited.
(c) Called-up capital of shares forfeited, amount received on shares forfeited.
(d) Calls-in-arrears of shares forfeited, amount received on shares forfeited

Q14. Dinkar and Navita are partners in a firm sharing profits and losses equally. Their capitals are (1 Mark)
Rs.20,000 each. They admit Vani as equal partner and goodwill of the firm is valued at Rs.30,000.
Vani is to bring in Rs.30,000 as her capital and necessary amount towards her share of premium for
goodwill. If profit on revaluation is Rs.13,000, closing balances of Partners' Capital Accounts will be
(a) Dinkar -Rs.31,500, Navita- Rs.31,500 and Vani- Rs.30,000.
(b) Dinkar - Rs.31,500, Navita- Rs.31,500 and Vani-Rs.20,000.
(c) Dinkar - Rs.31,500, Navita-Rs.26,500 and Vani-Rs.30,000.
(d) Dinkar - Rs.20,000, Navita- Rs.20,000 and Vani- Rs.30,000.
Q15. When a partner draws fixed amount for 6 months in the beginning of each month beginning 1st (1 Mark)
October, interest on drawings (at an agreed rate) will be equal to interest of
(a) 2.5 months (b) 1.5 months (c) 3.5 months (d) 3 months.
Or
Commission of 20% on net profit after charging such commission is calculated as:
(a) 1/6th of the net profit before charging commission.
(b) 1/5th of the net profit before charging commission.
(c) 1/4th of the net profit before charging commission.
(d) 1/3rd of the net profit before charging commission.
Q16. Book value of creditors given in Balance Sheet before dissolution was Rs.2,50,000. Half of the (1 Mark)
creditors accepted furniture of Rs.1,50,000 at an agreed valuation of 10% less than the book value
and cash of Rs.10,000 in settlement of their claim. Remaining creditors were paid at a discount of
 5%. Amount that will be credited to Cash Account in the Realisation Account for payment to creditors
is
(a) Rs.1,18,750 (b) Rs.1,35,000 (c) Rs.1,28,750 (d) Rs.1,25,000
Q17. Monu, Nigam and Shreya were partners in a firm sharing profits and losses in the ratio of 4:3: 1. The (3 Marks)
firm closes its books on 31st March every year. As per the terms of Partnership Deed, on the death
of a partner share of goodwill of the deceased partner was to be calculated on the basis of 50% of
the net profits credited to that partner's Capital Account during the past four completed years before
death. Monu died on 1st July, 2023.
Profits for the past four years were:
Year Profit (Rs.)
2019-20 97,000
2020-21 1,05,000
2021-22 30,000
2022-23 84,000
His share of profit up to the date of his death was to be calculated on the basis of sales. Sales for
the year ended 31st March, 2023 was Rs.21,00,000. From 1st April, 2023 to 30th June, 2023, the
firm's sales were Rs.2,00,000.
Pass necessary Journal entries relating to the amount of goodwill and profit to be transferred to
Monu's Capital Account. Also show your workings clearly.
Q18. Kumar and Raja are partners in a firm sharing profits in the ratio of 7: 3. Their capitals were: Kumar (3 Marks)
Rs.9,00,000 and Raja Rs.4,00,000, while their Current Accounts had balances of Rs.90,000 and
Rs.40,000 respectively. The Partnership Deed provided for the following:
(i) Interest on Capital @ 9% per annum.
(ii) Kumar's salary Rs.50,000 per year and Raja's salary Rs.3,000 per month.
Profit for the year ended 31st March, 2023 Rs.2,78,000 was distributed without giving effect to the
above.
Pass the adjustment entry.
Or.
Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 3 2. Their
Capital Accounts stood as Rs.50,000 and Rs.75,000 respectively after the adjustments in respect of
drawings and net profit for the year ended. 31st March. 2023. It was subsequently ascertained that
interest on capital @ 12% p.a. was not taken into account while arriving at the divisible profit for the
year.
During the year 2022-23, Sahaj had withdrawn Rs.5,000 and Nimish's drawings were Rs.2,500. The
net profit for the year amounted to Rs.37,500.
You are required to pass the necessary Journal entries to rectify the error in accounting
Q19. Ozone Fitness Ltd. purchased gymnasium equipment from Lodhi Sports Equipment on 1st October, (3 Marks)
2022, which was paid as follows:
(a) by issuing 40,000, 7" Debentures of Rs.100 each at 25% premium redeemable at 10% premium
after 5 years: and
(b) Rs.10,00,000 by cheque of even date.
Pass the Journal entries in the books of Ozone Fitness Ltd.
Or
Rajan Ltd. issued 2,000 shares of Rs.100 each. All calls were received except on 200 shares on
which only Rs.90 per share were received. These shares were forfeited and out of the forfeited
shares 100 shares were reissued at Rs.80 each as fully paid-up. Pass necessary Journal entries for
forfeiture and reissue of shares and prepare the Forfeited Shares Account.

Q20. Rajan, Sajan and Mehar are partners sharing profits in the ratio of 3: 2:1 respectively. From 1st April, (3 Marks)
2023, they decided to share profits in the ratio of 2:3:1. The partnership deed provides that in the
event of any change in profit-sharing ratio, goodwill of the firm will be valued at 3 years' purchase of
Super Profit of the business calculated on the Average Profit of the last 4 years.
Following particulars are available in respect of the business carried by them:
(i) Capital employed Rs.12,00,000.
(ii) Net profit: 2019-20 - Rs.2,44,000; 2020-21 - Rs.3,00,000; 2021-22 -Rs. 40,000 (Loss) and 2022 -
23 - Rs.4,20,000.
(iii) Rate of return on capital invested in this type of business 12%.
 (iv) Remuneration from alternative employment of the partners who are engaged full time in the
business Rs.24,000 p.a. each.
Showing the working clearly, give the necessary Journal entry to record the above change.
Q21. Honey Well Ltd. is a company with authorised capital of Rs.2,00,00,000 divided into 16,00,000 (4 Marks)
Equity Shares of Rs.10 each and 40,000 Preference Shares of Rs.100 each. It issued for
subscription 5,00,000 Equity Shares at a premium of Rs.10 each payable Rs.10 on application
(including premium of Rs.5); Rs.8 (including balance premium) on allotment and balance as First
and Final Call.
It also issued 20,000, 8% Preference Shares at par payable Rs.50 on application and balance on
allotment. Equity Shares were subscribed three times and allotment was made to all the applicants
on pro rata. Preference shares were fully subscribed. All calls were made. Due amount was received
except First and Final Call on 10,000 Equity Shares held by Raman, which were forfeited.
Allotment money on 2,000, 8% Preference Shares was not received.
Show the share capital in the Balance Sheet of the company prepared as per Schedule III of the
Companies Act, 2013.

Q22. Banwari, Girdhari and Murari are partners in a firm sharing profits and losses in the ratio of 4:56. On (4 Marks)
31st March. 2020, Girdhari retired. On that date the capitals of Banwari, Girdhari and Murari before
the necessary adjustments stood at Rs.2,00,000, Rs.1,00,000 and Rs.50,000 respectively. On
Girdhari's retirement, goodwill of the firm was valued at Rs.1,14,000. Revaluation of assets and re-
assessment of liabilities resulted in a profit of Rs.6,000. General Reserve in the books of the firm
was Rs.30,000.

The amount payable to Girdhari was transferred to his Loan Account. They agreed to pay Girdhari
two yearly instalments of Rs.75,000 each including interest @ 10% p.a. on the outstanding balance
during the first two years and the balance including interest in the third year. The firm closes its
books on 31st March, every year.
Prepare Girdhari's Loan Account till it is paid showing the working notes.
Q23. Pass necessary Journal entries for the following transactions, on the dissolution of a partnership firm (6 Marks)
of Kavita and Suman on 31st March, 2023, after various assets (other than cash) and outside
liabilities were transferred to Realisation Account:
(a) Kavita took over stock of Rs.1,00,000 at Rs.90,000.
(b) Creditors of Rs.2,00,000 took over Plant and Machinery of Rs.3,00,000 in settlement of their
dues.
(c) There was an unrecorded asset of Rs.23,000 which was taken by Suman for Rs.17,000.
(d) Realisation expenses Rs.2,000 were paid by Kavita.
(e) Bank loan Rs.21,000 was paid.
(f) Loss on dissolution amounted to Rs.7,000.
Q24. Royal Ltd. issued 1,00,000 shares of Rs.10 each payable as: Rs.2 on application, Rs.3 on allotment, (6 Marks)
Rs.3 on first call and Rs.2 on second and final call. Applications were received for 1,50,000 shares.
The shares were allotted on a pro rata basis to the applicants of 1,20,000 shares. All shareholders
paid the allotment money except one shareholder who was allotted 2,000 shares. These shares
were forfeited. The first call was made after the shares were forfeited. The forfeited shares were
reissued @ Rs.9 per share as Rs.8 paid-up after first call. The second and final call was not yet
made. You are required to prepare Cash Book and pass Journal entries.
Or
Sunstar Ltd. was formed with a capital of Rs.25,00,000 divided into 1,50,000 Equity Shares of Rs.10
each and 20,000 Preference Shares of Rs.50 each. It had existing fully paid equity shares and 8%
Preference Shares of Rs.5,00,000 and Rs.10,00,000 respectively. It further issued 50,000 Equity
Shares for subscription at par, issue price being payable along with application. The applicants paid
Rs.7,50,000 as application money.
You are required to state:
(i) Authorised capital and also explain the meaning of Authorised Capital.
(ii) Issued capital and also explain the meaning of issued capital.
(iii) Subscribed and fully paid-up capital;
(iv) Subscribed but not fully paid-up capital; and
(v) Calls-in-Advance in this case and also explain the meaning of Calls-in-Advance.
Q25. Kamal, Rahul and Neeraj were partners in a firm sharing profits and losses in the ratio of 5:3:2. On (6 Marks)
31st March, 2023, their Balance Sheet was as under:
BALANCE SHEET OF KAMAL, RAHUL AND NEERAJ as on 31st March, 2023
Liabilities Rs. Assets Rs.
Capitals A/cs: Land and Building 1,70,000
Kamal Plant and Machinery 2,60,000
1,20,000 Stock 1,00,000
Rahul 3,60,000 Debtors 80,000
1,20,000
1,20,000 Cash 50,000
Neeraj
1,20000 1,80,000
General Reserve 6,60,000 6,60,000
Sundry Creditors

On the above date, Rahul retired on the following terms:

(i) Goodwill of the firm was valued at Rs.3,50,000.
(ii) An item of Rs.10,000 included in Sundry Creditors is not likely to be claimed and hence written
off. Stock was valued at Rs.90,000.
(iii) Capital of the new firm was fixed at Rs. 2,10,000 and the same will be adjusted in the profit-
sharing ratio of the remaining partners. For this purpose, the required cash will be brought in or paid
off as the case may be.
(iv) Amount payable to Rahul will be transferred to his Loan Account.
Prepare Revaluation Account and Partners' Capital Accounts on Rahul's retirement.
Or
Ashish and Vishesh were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet
as at 31st March, 2023 was as under:
BALANCE SHEET OF ASHISH AND VISHESH as at 31st March, 2023
Liabilities Rs. Assets Rs.
Creditors 30,000 Cash at Bank 50,000
Outstanding Electricity Bill 20,000 Debtors
Capital A/cs 80,000 78,000
Ashish Less: Provision for D/Debts 1,12,000
3,00,000 2,000
5,00,000 3,00,000
Vishesh Stock
10,000
2,00,000 Machinery
50,000 5,50,000
Profit & Loss A/c
On 1st April, 2023, Manya was admitted into the firm with 1/4th share in the profits on the following
terms:
(i) Manya will bring Rs.1,00,000 as her capital and Rs.50,000 as her share of goodwill
premium in cash.
(ii) Outstanding electricity bill will be paid off.
(iii) Stock was found overvalued by Rs.12,000.
Pass the necessary Journal entries in the books of the firm on Manya's admission.
Q26. 'Sarah Ltd.' is a company manufacturing textile. It has a share capital of Rs.1,00,00,000 divided in (6 Marks)
shares of Rs.100 each and 25,000, 8% Debentures of Rs. 100 each as part of capital employed.
The Directors of the company decided to modernise the plant and machinery at an estimated cost of
Rs.66 lakh for which they decided to issue debentures in such a manner that they got required funds
of the same class as earlier, at 10% premium. These debentures were issued on 1st October, 2022
and redeemable at a premium of 20% after three years.
The company had opening balance in Securities Premium Account of Rs.8,20,000. You are required
to:
(a) Pass Journal entries for Issue of Debentures.
 (b) Prepare Loss on Issue of Debentures Account.
(c) Pass entries for interest on debentures on 31st March, 2023 assuming that the interest is payable
on 30th September and 31st March every year.
Part B
(Analysis of Financial Statements)
Q27. Which of the following is not the limitation of financial statements? (1 Mark)
(a) Ignore qualitative aspects.
(b) Personal bias.
(e) Ignores price level change.
(d) Provide information about the profitability of the business.
Or
Which one of the following statements is incorrect?
(a) Liquidity Ratios are calculated to measure short-term solvency of the business.
(b) Current Ratio is also known as Acid Test Ratio.
(c) Solvency Ratios are calculated to determine the ability of the business to service its debt in the
long-run.
(d) Proprietary Ratio expresses the relationship of Proprietor's Funds to Net Assets/Total Assets.
Q28. Cost of Revenue from Operations Rs.6,00,000 (1 Mark)
Purchases Rs.8,00,000
Opening Inventory Rs.1,00,000
Inventory Turnover Ratio will be
(a) 2 times (b) 3 times (c) 1.5 times (d) 4 times
Q29. Sony Entertainment Ltd. declared interim dividend of Rs.2,00,000 in the year ended 31st March, (1 Mark)
2023 and Rs.3,00,000 in the previous year. Amount that will be added to determine Net Profit before
Tax and Extra-ordinary Items in preparing the Cash Flow Statement for the year ended 31st March,
2023 will be:
(a) Deduct Rs. 2,00,000 from Net Profit before Tax and Extraordinary Items under Cash Flow from
Operating Activities.
(b) Deduct Rs.3,00,000 from Net Profit before Tax and Extraordinary Items under Cash Flow from
Operating Activities.
(c) Add Rs.2,00,000 to Net Profit before Tax and Extraordinary Items under Cash Flow from
Operating Activities.
(d) Add Rs.3,00,000 to Net Profit before Tax and Extraordinary Items under Cash Flow from
Operating Activities.
Or
Damage to machinery due to earthquake was compensated by the Government. It will be shown in
the Cash Flow Statement as
(a) Extra-ordinary item under Cash Flow from Operating Activities as outflow.
(b) Extra-ordinary item under Cash Flow from Operating Activities as inflow.
(c) Extra-ordinary item under Cash Flow from Investing Activities as outflow.
(d) Extra-ordinary item under Cash Flow from Investing Activities as inflow.
Q30. From the following information, determine net inflow/outflow of cash under Investing Activities: (1 Mark)
31st March, 2023 (Rs.) 31st March, 2022 (Rs.)
Investment in Shares 4,00,000 5,00,000
Additional Information:
Purchase of Investment during the year Rs. 1.00,000.
Part of Investments were sold at a profit of Rs. 10,000.
(a) Outflow of Rs.1,10,000 (b) Inflow of Rs.1,10,000
(c) Inflow of Rs.2,10,000 (d) Outflow ofRs.2,10,000
Q31. Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of a (3 Marks)
company as per Schedule III of the Companies Act, 2013:
(i) Provident Fund Payable
(ii) Copyrights
(iii) Patents being developed by the company
(iv) Bank Overdraft
(c) Capital Work-in-Progress
(vi) Provision for Tax.
Q32. (a) Total Debt Rs.9,00,000, Preference Share Capital Rs.1,00,000, Equity Shareholders' Funds (3 Marks)
 Rs.2,00,000, Total Assets to Debt Ratio = 2.4:1.
Fund out the Current Liabilities of the company.
(b) Calculate Net Asset or Capital Employed Turnover Ratio from the following information:
Shareholders' Funds Rs.20,00,000, Equity Share Capital Rs.7,50,000, 8% Preference Share Capital
Rs.5,00,000, Reserves and Surplus Rs.7,50,000, 9% Debentures Rs. 5,00,000 and Revenue from
Operations Rs.37,50,000.
Or
Calculate the amount of opening trade receivables and closing trade receivables from the following
information:
Trade Receivables Turnover Ratio 8 times
Cost of Revenue from Operations Rs.4,80,000

The amount of credit revenue from operations is Rs.2,00,000 more than cash revenue from
operations. Gross profit ratio is 20%. Opening trade receivables are 1/4th of closing trade
receivables.

Q33. Prepare a Comparative Statement of Profit & Loss from the following information. extracted from the (4 Marks)
Statement of Profit & Loss for the year ended 31st March, 2022 and 2023:

Particulars 2022-23 2021-22

(Rs.) (Rs.)
Revenue from Operations 12,00,000 10,00,000
Other income (% of Revenue from Operation) 25% 25%
Employee Benefit Expenses (% of Total Revenue) 40% 30%
Tax Rate 40% 40%

Q34. You are required to prepare a cash flow statement (as per AS-3) for the year 2022-23 from the (6 Marks)
following Balance Sheet.
Particulars Note 31.3.2023 31.3.2022
No
I. Equity and Liabilities Rs. Rs.
1. shareholder’s Funds:
(a) Share Capital
Equity Share Capital 14,00,000 10,00,000
(b) Reserves and Surplus (Statement of Profit & loss) 5,00,000 4,00,000
2. Non – Current Liabilities
Long term Borrowings (10% Debentures) 5,00,000 1,40,000
3. Current Liabilities
a. Short Term Borrowing (Bank Overdrafts) 20,000 30,000
b. Trade Payables 1,00,000 60,000
c. Short Term Provisions 1 60,000 30,000
15,00,000 10,00,000

II. ASSETS:
1. Non – Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment 2 16,00,000 9,00,000
(ii) Intangible Assets 1,40,000 2,00,000
2. Current Assets:
(a) Inventories 2,50,000 2,00,000
(b) Trade Receivables 5,00,000 3,00,000
(c) Cash and Cash Equivalents 90,0000 60,000
 Total 25,80,000 16,60,000

Notes to Accounts
Particulars Note 31.3.2023 31.3.2022
No. Rs. Rs.
1. Short Term Provisions
Provision for Tax 60,000 30,000

2. Property, Plant and Equipment

Plant and Machinery 17,60,000 10,00,000
Less: Accumulated Depreciation (1,60,000) (1,00,000)
16,00,000 9,00,000

Additional information:
During the year 2022-23:
i. A part of the machine costing Rs.50,000, accumulated depreciation thereon being Rs.20,000 was
sold for Rs.18,000.
ii. Tax paid Rs.20,000.
iii. Interest of Rs.50,000 paid on Debentures.