D.A.V.

INSTITUTIONS, WEST BENGAL ZONE

SESSION 2024-2025
SAMPLE PAPER-1
CLASS- XII SUB: ACCOUNTANCY
GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions. All questions are compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
4. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
5. Questions Nos. from 21 ,22 and 33 carries 4 marks each
6. Questions Nos. from 23 to 26 and 34 carries 6 marks each
7. There is no overall choice. However, an internal choice has been provided.

PART A
(Accounting for Partnership Firms and Companies)
1 Shivaay and Pari are partners. Pari draws a fixed amount at the end of each quarter. Interest on 1
drawing is charged @ 15% p.a. At the end of the year interest on Pari’s drawings amounted to
Rs. 90,000. Drawings of Pari were:
(a) Rs. 2,40,000 per quarter
(b) Rs. 4,00,000 per quarter
(c) Rs. 3,00,000 per quarter
(d) Rs. 8,00,000 per quarter
OR
Ram, Rahim and Karim are partners in a firm. They have no agreement in respect of profit-
sharing ratio, interest on capital, interest on loan advanced by partners and remuneration payable
to partners. In the matter of distribution of profits, Ram put forward the following claim:
As Ram has contributed maximum capital demands interest on capital at 10% p.a. and share of
profit in the capital ratio. But Rahim and Karim do not agree. How shall you settle the dispute.
Choose the correct option:
(a) No interest on capital is payable and profit will be shared in capital ratio
(b) Interest on capital is payable and profit will be shared in capital ratio
(c) No interest on capital is payable and profit will be shared in equal ratio
(d) Interest on capital is payable and profit will be shared in equal ratio
2 Choose the correct sequence of the following transactions in context of division of profits: 1
(i) Guarantee by firm to partners
(ii) Guarantee by partners to firm
(iii) Transfer of profits to Profit & Loss Appropriation Account
(iv) Guarantee by partner to partner
(a) i, iii, iv, ii
(b) iii, i, ii, iv
(c) iii, ii, i, iv
(d) ii, iii, iv, i
3 Sonu, a partner withdrew Rs. 5,000 in the beginning of each quarter and interest on drawings was 1
calculated as Rs. 1,500 at the end of the accounting year 31st March, 2024. What is the rate of
interest on drawings charged?
(a) 6% p.a.
(b) 8% p.a.
(c) 10% p.a.
(d) 12% p.a.
4 Assertion (A): Interest on capital to a partner is payable only out of profits. 1
Reason (R): Interest on capital is an appropriation of profits which is required to be provided
irrespective of profits or loss.
Choose the correct option:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Assertion (A) is true, but Reason (R) is false
Read the following case study and answer the questions (5) and (6) on the basis of the same:
Anuj and Aman are partners in 3 : 2. Their capital balances as on 1st April, 2023 amounting to
Rs. 2,00,000 each. On 1st February, 2024, Anuj contributed an additional capital of `1,00,000.
Following are the terms of deed:
(a) Interest on capital @ 6% per annum
(b) Interest on drawings @ 8% per annum
(c) Salary to Anuj `1,500 per month
(d) Commission to Aman @ 10% on net profit after charging interest on capital, salary and his
commission
Drawings of the partners were Rs. 20,000 and Rs. 30,000 respectively during the year. Net profit
earned by the firm was Rs. 2,08,000.
5 What is the amount of interest on drawings of Anuj and Aman? 1
(a) Rs. 1,200 and Rs. 1,800
(b) Rs. 800 and Rs. 1,200
(c) Rs. 1,200 and Rs. 800
(d) None of these

6 What will be the closing balance of Anuj after all adjustments? 1

(a) Rs. 4,22,200
(b) Rs. 4,01,400
(c) Rs. 3,00,000
(d) None of these
7 Due to change in profit sharing ratio, X’s sacrifice is 3/10 while Z’s gain is 3/10. They decide to 1
record the effect of the following without effecting the book figures, by passing an adjustment
entry:
General Reserve Rs. 35,000
Profit and Loss (Cr) Rs. 15,000
Advertisement Suspense (Dr) Rs. 20,000
The necessary adjustment entry will be:
a) Debit Z and Credit X by Rs. 9,000
b) Debit X and Credit Y by Rs. 9,000
c) Debit X and Credit Y by Rs. 18,000
d) Debit Y and Credit X by Rs. 9,000
OR
Amar and Akbar are partners sharing profits in the ratio of 3:2. They changed their profit sharing
ratio to 2:3. The Balance Sheet as on the date of change in profit sharing ratio showed credit
balance in Profit and Loss Account of Rs. 1,00,000, which the partners decide to carry forward
and not distribute. The balance of Rs. 1,00,000 will be adjusted by:
a) Crediting Amar’s Capital Account and Debiting Akbar’s Capital Account by Rs.
1,00,000.
b) Crediting Amar’s Capital Account and Debiting Akbar’s Capital Account by Rs. 20,000.
c) Debiting Amar’s Capital Account and Crediting Akbar’s Capital Account by Rs.
1,00,000.
d) Debiting Amar’s Capital Account and Crediting Akbar’s Capital Account by Rs. 20,000.
8 Ravi and Vijay are partners sharing profit and losses in the ratio of 3:2 . They admitted Ajay as 1
a new partner. Ravi surrendered 2/5th of his share and Vijay 1/5th of his share in favour of Ajay.
The sacrificing ratio will be :
(A) 3:5 (B) 2:3 (C) 1:3 (D) 3:1
9 Assertion: Revaluation A/C is prepared at the time of admission of new partner. 1
Reason: It is required to adjust the values of assets and liabilities at the time of admission of a
partner, so that the true financial position of the firm is reflected.
(A) Both Assertion and Reason are correct and Reason is the correct explanation of Assertion
(B) Both Assertion and Reason are correct and Reason is not the correct explanation of
Assertion
(C) Assertion is True but Reason is False
(D) Assertion is False but Reason is true

10 A. B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital 1
balance are ₹50,000 for A, ₹70,000 for B, ₹35,000 for C. B decided to retire from the firm and
balance in reserve on the date was ₹25,000. If goodwill of the firm was valued at ₹30,000 and
profit on revaluation was ₹7,500 then, what amount will be payable to B?
a) ₹70,820 b) ₹76,000
c) ₹ 75,000 d) ₹95,000
OR
Srishti, Nitya and Anand were partners in a firm sharing profits and losses in the ratio of 3 : 2 :
1. Srishti retired from the firm selling her share of profits to Nitya and Anand in the ratio of 2 :
1 The new profit sharing ratio between Nitya and Anand will be
a) 3 : 2 b) 17 : 11
c) 2 : 1 d) 19.11

11 On dissolution of a firm, an unrecorded Investment of the value of ₹15,000 was taken up by a 1

partner for ₹13,000. Which Account will be credited and by how much amount?
A) Cash Account by ₹13,000
B) Realisation Account by ₹2,000
C) Partner's Capital Account by ₹15,000
D) Realisation Account by ₹13,000

12 Crews issued 40,000 shares of ₹10 each. Applications for 2,00,000 shares were received. 1
Amount per share was payable as follows:

On application -₹4
On allotment-4
On first and final call - Balance
Shares were allotted on pro rata basis to all the applicants. Excess money received with
applications was refunded after adjustment in allotment and first and final call. For refunding
the excess
amount, the Bank Account will be credited by

(a) ₹4,80,000
(b) ₹80,000
(c) ₹4,00,000
(d) Nil

13 Birbal ltd invited applications for issuing 2,00,000 shares ₹10 each payable ₹3 per share on 1
application, 5 per share on allotment and 2 per share on first and final call. The issue was
oversubscribed and the company received 9,60,000 as application money. The company
 rejected some applications and pro rata allotment was made to the remaining applicants in the
ratio of 5:4. Applications for how many shares were rejected?

(a) 50,000
(b) 1,30,000
(c) 70,000
(d) 1,20,000

14 A machinery for 1,25,000 was purchased from LM Machine Ltd. The payment was made by 1
issuing equity shares of 10 each at a premium of 25 %. Which of the following journal entry is
correct?

(a) LM Machines Ltd. Dr. ₹1,25,000

To Equity Share Capital A/c 1,25,000

(b) LM Machines Ltd. Dr. 1,25,000

To Equity Share Capital A/c 1,00,000

To Securities Premium Reserve A/c 25,000

(c) LM Machines Ltd. Dr. 1,25,000

To Equity Share Capital A/c 1,00,000

To Bank A/c 25,000

(d) None of the above

OR
Banyan Tree Ltd. invited applications for issuing 6,00,000 equity shares of ₹10 each payable
follows:

On application - 3 per share

On allotment - 5 per share
On 1st and Final call-Balance
The issue was fully subscribed. Ronnie, holding 2,000 shares, and Monty, holding 4000 shares
failed to pay allotment money and their shares were forfeited immediately after allotment
.Afterwards the first and final call was made. The amount due on first and final call was:

(a) ₹12,00,000
(b) 11,96,000
(c)₹11,88,000
(d) 11,92,000
15 Assertion (A): Securities Premium Reserve cannot be utilised for meeting the working : capital 1
requirements of the business,
Reason(R): Securities Premium Reserve may be applied only for the purposes mentioned in
Section 52 (2) of the Companies Act, 2013
(a) Both A and R are correct, and R is the correct explanation of A.
(b) Both A and R are correct, but R is not the correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.
16 Identify those debentures on which no interest will be paid/provided. 1
a. Debentures issued to underwriters
b.Debentures issued for cash
c. Debentures issued to vendor
d. Debentures issued as collateral security
OR
Which of the following statements is false?
a. A company can issue convertible debentures
b. Debentures cannot be secured
c. A company can issue redeemable debentures
d. Debentures have no right to participate in profits over and above their fixed interest
17 Ayush and Sekhar commenced business as partners as on April 01, 2023. Ayush contributed 3
`40,000 and `25,000 as their share of capital. The partners have decided to share profits in the
ratio of 2 : 1. Ayush was entitled to a salary of `6,000 per annum. Interest on capital was to be
provided @6% per annum. The drawings of Ayush and Sekhar for the year ending March 31,
2024 were `4,000 and `8,000 respectively. The profits of the firm after providing Ayush’s salary
and interest on capital were `12,000.
Draw up the capital accounts of the partners when capitals are fluctuating.
OR
Gold and Silver were partners in a partnership business. Their Closing balances of capital were
`40,000 and `32,000 respectively. They have been provided that Profit and Loss Appropriation
Account showed profit of `16,000, which was kept aside. During the year, drawings of the
partners were `12,000 and `10,000 and profit during the year was `24,000.
You are required to calculate the amount of interest on capital payable @10% p.a. to Gold and
Silver.
18 Average Profit of the firm is Rs. 37,000. In the same business a 10% return is generally 3
accepted. The total assets of the firm is Rs. 4,00,000 and outside liabilities is Rs . 90,000. Find
the value of Goodwill
19 Prateek, charu and Sirima were partners in a firm sharing profits in the ratio of 3 : 2 : 1. 3
Prateek retired from the firm on 31st March, 2023. Charu and Sirima decided that the capital of
the new firm will be ₹6,30,000 in their profit sharing Ratio. The capital account of Charu and
Sirima after all adjustments on the date of retirement showed a credit balance of ₹4,35,000 and
₹1,89,000 respectively. Calculate the amount of actual cash to be brought in to the firm or to be
paid to the partners. Also pass necessary journal entries.
20 Teena Ltd. purchased the following assets and liabilities of Atlas Bread Ltd. 3
Building-Rs. 3,00,000, Machinery-Rs. 70,000, Furniture- Rs. 30,000,
Creditors- Rs. 20,000
The purchase price was agreed at Rs. 4,25,000 which is to be paid by the issue of 12%
Debentures of Rs. 100 each at a premium of Rs. 25.
Give journal entries.
OR
ABC Ltd. invited applications for issuing 5,000, 12% Debentures of Rs. 100 each at a discount
of 5%. The full amount was payable on application. Applications were received for 5,500
debentures. Applications for 500 debentures were rejected and the application money was
refunded. Debentures were allotted to the remaining applicants. Pass the necessary journal
entries for the above transactions in the books of ABC Ltd.
21 Aman, Sumit and Harsh were partners in a firm. They decided to dissolve their firm. Pass 4
necessary journal entries for the following after various assets (other than Cash and Bank) and
the third party liabilities have been transferred to Realisation Account.
A) There was a stock of ₹180000. Sumit took over 50% of the stock at 10% discount and
remaining stock was sold at 40% profit on book value.
B) Machinery which was not recorded in the books was sold for ₹4,000.
 C) Aman was paid only ₹10,000 for his loan to the firm which amounted to ₹10,500.
There were 50 Shares of ₹161 each in Tata Motors Ltd. acquired at a cost of ₹250 each which
had been written off completely from the books. These shares are valued @ ₹942 each and
divided among the partners in their profit sharing ratio.
22 D Ltd. took over the assets of ₹15,00,000 and liabilities of 25,00,000 of G Ltd. for a purchase 4
consideration of ₹13,68,500, ₹25,500 were paid by issuing a promissory note in favour of Ltd.
payable after two months and the balance was paid by issue of equity shares of ₹100 each at a
premium of 25%.
Pass necessary journal entries for the above transactions in the books of K Ltd.
23 Balance Sheet as at 31st March 2022 6
Liabilities Rs Assets Rs
Creditors 56 ,000 Plant & Machinery 70,000
General Reserve 14,000 Building 98,000
Capital : Stock 21,000
X 1,19,000 Debtors 42,000
Y 1,12,000 Less: Provision 7,000 35,000
Cash in Hand 77,000
3,01,000 3,01,000
th
Z was admitted for 1/6 share on the following terms:
(i) Z will bring Rs 56,000 as capital, but was not able to bring his share of Goodwill.
(ii) Goodwill of the firm is valued at Rs 84,000
(iii) Plant & Machinery were found to be undervalued by Rs 14,000 ,Building was to brought
up to Rs 1,09,000
(iv) All Debtors are good
(v) Capitals of X and Y will be adjusted on the basis of Z’s share and adjustments will be done
by opening necessary current accounts.
You are required to prepare Revaluation A/C and Partners’ capital A/C
OR
P, Q and R were partners sharing profits in the ratio of 1 : 3 : 2. Following was their Balance
Sheet as at 31st March 2023:
Amount Amount
Liabilities Assets
(₹) (₹)
Capital Account: Land and Building 3,00,000
P 2,50,000 Machinery 1,50,000
Q 2,00,000 Stock 1,60,000
R 1,50,000 6,00,000 Sundry Debtors 2,50,000
General Reserve 42,000 Bank Balance 1,35,000
Workmen Compensation Reserve 60,000
Sundry Creditors 2,80,000
Outstanding Expenses 13,000
9,95,000 9,95,000

R retires on this date and P and Q decided to share future profits and losses in the ratio of 3 : 2.
Following adjustment were agreed:
(i) A claim for Workmen Compensation has been estimated at ₹90,000.
(ii) Land and Building will be appreciated by 10% and Stock by ₹20,000
(iii) A provision for doubtful debts is to be made on debtors @4%
(iv) Value of Sundry Creditors increased to ₹2,90,000.
(v) Goodwill of the firm is valued at ₹48,000
(vi) R is to be paid 40% immediately and remaining balance to be transfer to R’s Loan Account.
Pass necessary journal entries.
24 Following is the Balance Sheet of P, R and S who are sharing profits in 2:1:2 as at March 31, 6
2023:
Amount Amount
Liabilities Assets
(₹) (₹)
Capital: Goodwill 80,000
P 2,40,000 Land & Building 4,00,000
R 1,60,000 Stock 1,30,000
S 2,00,000 6,00,000 Debtors 60,000
Profit and Loss Account 1,20,000 Cash at Bank 1,30,000
Employee Provident Fund 4,000
Creditors 76,000
8,00,000 8,00,000

P died on June 12, 2023. According to the partnership deed, the executors are entitled to:
(a) Her capital as per Balance Sheet;
(b) Interest on capital @ 8% p.a. upto the date of death.
(c) Her share of profit upto the date of death on the basis of average profits for the past 3 years
(d) Her share of goodwill valued on the basis of two times the average profits of the last 3
years
Profits for the last three years were ₹60,000; ₹1,40,000; and ₹1,60,000 respective. R and S
acquired P’s Share in the ratio of 1 : 5
Prepare P’s Capital Account to be rendered to her executor’s. Also calculate the new profit
sharing ratio
25 D Ltd. was registered with an authorised capital of 2,00,000 equity shares of ₹ 100 each. The 6
company offered 60,000 shares for public subscription at 25% premium. The share were
payable as 40 on application and balance on allotment, with premium. Public had applied for
85,000 shares. Pro-rata allotment was made in the ratio of 5:4 and remaining applications wer
sent letters of regret.
Mr. Anand holding 4,000 shares failed to pay allotment money and his shares were forfeited. O
of these 3,000 shares were re-issued at a discount of ₹ 20 per share. Pass necessary entries in th
books of the Dltd.
OR
Record the Journal entries for forfeiture and reissue in the following cases:
(a) X Ltd. forfeited 200 shares of ₹100 each, ₹70 called up on which the shareholders had paid
application and allotment money of ₹50 per share. Out of these, 150 shares were reissued to
Naresh as ₹70 per share paid up for 80 per share.

(b) Y Ltd. forfeited 180 shares of ₹10 each, 8 called up, issued at a premium of 12 per share to
'R' for non-payment of allotment money of 5 per share (including premium). Out of these, 160
shares were reissued to Sanjay as 28 called up for ₹10 per share fully paid up.

26 Journalise the following transactions : 6

a. Ram Ltd. issued Rs. 50,000, 12% Debentures of Rs.100 each at a premium of 5%
redeemable at a premium of 2%.
b. 12 % Debentures were issued at a discount of 10% to a vendor of furniture for payment of
Rs.9, 00,000.
c. Issue of 5,000, 9% debentures of Rs.100 each as collateral in favour of State Bank of India.
Company opted to pass the necessary entry for issue of debentures.
 PART B
(Analysis of Financial Statements)
27 In the balance sheet, ‘Trade receivables’ is the sub-head under……… 1
(a) non-current assets (b) current assets
(c) non- current liabilities (d) current liabilities
OR
Staff welfare expenses are included in
(a) Cost of material consumed (b) revenue from operation
(c) Employees benefit expense (d) none of these

28 --------------- is the mathematical expression of the relationship between two accounting 1

variables.
(a) Ratio
(b) Ratio Analysis
(c) Accounting Ratio
(d) Accounting

29 Cash flow statement is not considered as the replacement of Income statement because – 1
(a) Cash flow statement shows net income of the business
(b) It shows both cash and non-cash items
(c) It shows inflow and outflow of cash & cash equivalents only
(d) All the above

30 X Ltd. issued 10,000 equity shares @₹100 each on 1st April,2023. It purchased Machinery 1
costing ₹10 lakhs and paid electricity expenses ₹ 50,000 during the year. Net profit for the year
ended on 31st March,2024 was ₹ 6,00,000 (after all adjustments). What amount is to be shown
under operating activity?
(a) 5,50,000 (b) 4,50,000(Outflow) (c) 6,00,000 (d) 6,50,000

31 Explain any three objectives of financial statements. 3

32 SX Ltd is having a Proprietary Ratio of 0.75:1. State with reasons whether the following 3
transactions will increase, decrease or not change that ratio (any three):
(1) Money collected in Bank by issuing 9% Debentures for ₹ 2, 50,000,
payable after five years.
(2) Purchased machinery for cash ₹ 80,000
(3) Redeemed 5% redeemable preference shares ₹ 2,00,000.
Issued Equity Shares for ₹ 5,00,000 to Max Ltd. for purchasing Laptops for office
33 From the following Statement of Profit and Loss of Sophia Ltd. for the year ended 31st March, 4
2024, prepare a Comparative Statement of Profit and Loss:
Particulars Note 2023-24 2022-23
no. (₹) (₹)
Revenue from Operations 40,00,000 25,00,000
Expenses
a) Employee benefit expenses were 5%
of Revenue from operations
b) Other expenses 6,80,000 5,90,000
Rate of Tax 35%

OR
 From the following Balance Sheet of M Ltd. as at 31st March,2024, prepare a Common Size
Balance Sheet:
Particulars Note 31.03.2024 31.03.2023
no (₹) (₹)
I.EQUITY AND LIABILITIES
1.Shareholders’ Funds
a) Share Capital 2,50,000 2,00,000
b) Reserve and Surplus 80,000 60,000

2.Non-Current liabilities
Long term Borrowings - -
3.Current Liabilities
Trade Payables 70,000 40,000
Total 4,00,000 3,00,000
II.ASSETS
1.Non-Current Assets
Property, Plant and Equipment and Intangible
Assets 1,60,000 1,20,000
i. Property, Plant and Equipment 20,000 30,000
ii. Intangible Assets
2.Current Assets
a) Inventories 80,000 30,000
b) Trade Receivables 1,20,000 1,00,000
c) Cash and Cash Equivalents 20,000 20,000
Total 4,00,000 3,00,000
34 ZX Ltd. presents the following Balance Sheet as on 31st March,2023 and 2024 : 6
Particulars Note 31stMarch 31stMarch
No. 2024 (₹) 2023 (₹)
Equity and Liabilities
Shareholders’ Fund
Share Capital 65,000 45,000
Reserve and Surplus 1 42,500 24,000
Long Term Borrowings
10% Debenture 1,00,000 60,000
Notes to Accounts :
Particulars 31stMarch 31stMarch
2024 (₹) 2023 (₹)
General Reserve 27,500 15,000
Surplus in Profit & Loss 15,000 9,000
Total 42,500 24,000
Additional Information:
An interim dividend ₹ 7,000 has been paid to the shareholders during the year. One short term
investment was made for ₹ 25,000 by the firm on 1st April,2024.
(A) Calculate the amount to be shown under net profit before tax:
(B) The amount transferred to General Reserve is_________________.
(C) What is your opinion about Interim Dividend?
(D) Interest paid on Debenture will be the ‘outflow’ under_____________.
(E) What should be the maturity period for short term investment from the date of it’s
acquisition to be qualified as cash equivalents?
Under which activity, interest earned on non-current Investment will be shown?
 D.A.V. INSTITUTIONS, WEST BENGAL ZONE
SESSION 2024-2025
SAMPLE PAPER-1
CLASS- XII SUB: ACCOUNTANCY
MARKKING SCHEME
PART A
(Accounting for Partnership Firms and Companies)
1 (b) `4,00,000 per quarter 1
OR
(c) No interest on capital is payable and profit will be shared in equal ratio
2 (c) iii, ii, i, iv 1
3 (d) 12% p.a. 1
4 (d)Assertion (A) is true, but Reason (R) is false 1
5 (b) `800 and `1,200 1
6 (d) `4,01,400 1
7 a) Debit Z and Credit X by Rs. 9,000 1
OR

( b) Crediting Amar’s Capital Account and Debiting Akbar’s Capital Account by Rs. 20,000.
8 (D) 3:1 1
9 (A) Both Assertion and Reason are correct and Reason is the correct explanation of 1
Assertion
10 D) ₹95,000 1
OR
c) 2 : 1
11 D) Realisation Account by ₹13,000 1
12 (C) 4,00,000 1
13 (C) 70,000 1
14 (B) LM Machines Ltd. Dr. 1,25,000 1
To Equity Share Capital A/c 1,00,000
To Securities Premium Reserve A/c 25,000
OR
(C) 11,88,000
15 (A) Both A and R are correct, and R is the correct explanation of A. 1
16 d. Debentures issued as collateral security 1
OR
b. Debentures cannot be secured
17 Dr. Partners’ Capital Account Cr. 3
Particulars Ayush Sekhar Particulars Ayush Sekhar
(`) (`) (`) (`)
To Drawings A/c ½ 4,000 8,000 By Balance b/d 40,000 25,000
By Salaries ½ 6,000 --
To Balance c/d ½ 52,400 22,500 By Interest on Cap. 2,400 ½ 1,500
[Bal. Fig.] By Profit & Loss ½
Appropriation A/c ½ 8,000 4,000
(Share of Profits)
 56,400 30,500 56,400 30,500
OR
Calculation of Opening Capital:
Particulars Gold (`) Silver (`)
Closing Capital 40,000 32,000
Add: Drawings 12,000 16,000
52,000 42,000
Less: Amount of profits distributed (24,000 – 16,000)
equally 4,000 4,000
Opening Capital 48,000 38,000
2. Calculation of Interest on capital payable @10% p.a.:
Gold = `48,000 x 10/100 = `4,800 ½
Silver = `38,000 x 10/100 = `3,800
½
[Vinesh]
18 Average Profit = Rs.37,000 3
Capitalized Value of Average Profit =37000/10%=370000
Actual Capital Employed = Assets – Liabilities=4,00,000 – 90,000= Rs. 3,10,000
Goodwill = Capitalized Value of Average Profit – Capital Employed= 370000 – 310000
=60000
19 3
Charu’s Capital should be = ₹6,30,000 x 2/3 = ₹4,20,000
Sirima’s Capital should be = ₹6,30,000 x 1/3 = ₹2,10,000
Statement showing for necessary calculation
Particulars Charu (₹) Sirima (₹)
Capital Required in the new firm 1 4,20,000 1
2,10,000
Less: Existing Capital 4,35,000 1,89,000
15,000 21,000
Returned Brought in
JOURNAL
Date Particulars Dr. (₹) Cr. (₹)
31.03.20 Charu’s Capital A/c ……….…………… Dr. 15,000
To Bank 15,000
(Excess capital returned)
,, Bank A/c …...…………………………… Dr. 21,000
To Sirima’s Capital A/c 21,000
(Shortage of capital brought in)

20 a. Building A/c Dr. 3, 00,000, Machinery A/c Dr. 70,000, Furniture A/c Dr. 30,000, 3
Goodwill A/c (Bal. fig.) Dr. 45,000,
To Liabilities A/c 20,000, To Atlas Breads Ltd. 4,25,000
b. Atlas Breads Ltd. Dr. 4,25,000, To 12% Debentures A/c 3,40,000, To Securities
Premium A/c 85,000
OR
a.Bank A/c Dr. 5,22,500, To 12% Debenture application and allotment A/c 5,22,500
b.12% Debenture application and allotment A/c Dr. 5,22,500, Discount on issue of
Debentures A/c Dr. 25,000, To 12% Debentures A/c 5,00,000, To Bank A/c 47,500
21 In the books of Aman, Sumit and Harsh 4
Journal
Date Particulars L.F Debit Credit
Amount Amount
 (₹) (₹)
(A) Sumit's capital A/c Dr 81,000
Bank A/c Dr 1,26,000
To Realisation A/c 2,07,000
(Being 50% of the stock taken by Sumit and
remaining sold)
(B) Bank A/c Dr 4,000
To Realisation A/c 4,000
(Being unrecorded machinery sold)
(C) Aman's Loan A/c Dr 10,500
To Bank A/c 10,000
To Realisation A/c 500
(Being Rs.10000 paid against Aman's loan)
(D) Aman's Capital A/c Dr 15,700
Sumit's Capital A/c Dr 15,700
Harsh's Capital A/c Dr 15,700
To Realisation A/c 47,100
(Being unrecorded shares in Tata Ltd
distributed among partners)
22 Sundry Assets Alc Dr 15,00,000 4
Goodwill A/c (Balancing figure) Dr 3,68,500
To Sundry Liabilities Alc 5,00,000
To G Ltd 13,68,500
(Being Assets and Liabilities acquired)
G Ltd. Dr 13,68,500
To Bills Payable A/c 25,500
To Equity Share Capital Alc 10,74,400
To Securities Premium A/c 2,68,600

(Being promissory note accepted and 10,744 equity shares issued at a premium of 25%)

No of shares = 10,744
23 Dr Revaluation A/C Cr 6
Particulars Rs Particulars Rs
To Partners’ capital a/c By Plant & Machinery a/c 14,000
X 19200 By Building a/c 11,000
Y 12800 32,000 By Provision for Doubt. Debt 7,000
Total 32,000 Total 32,000
Dr Partners Capital a/c Cr
Particulars X Y Z Particulars X Y Z
To - 24,000 - By bal. b/d 1,19,000 1,12,000 -
Partners’
Current a/c
By Bank a/c - - 56,000
By Z’s 8400 5600 -
Current a/c
By General 8400 5600 -
reserve a/c
To bal. c/d 1,68,000 1,12,000 56,000 By 19,200 12,800 -
Revaluation
a/c
 By X’s 13,000 - -
Current a/c
1,68,000 1,36,000 56,000 1,68,000 1,36,000 56,000
Workings:
1.Z’s share of Goodwill= 84,000 x 1/6 = Rs14,000
2. New profit sharing ratio = X:Y:Z= 3:2:1 3.
Adjustment of Capitals:
Z’s capital = Rs 56,000
Total capital of the firm 56,000 x 6/1 = Rs 3,36,000
X’s Capital = 3,36,000 x 3/6= 1,68,000
Y’s capital= 3,36,000 x 2/6= 1,12,000
OR
Workings notes:
Calculation of sacrificing and gaining ratio:
P: 1/6 – 3/5 = (5-18)/30 = 13/30 (gain)
Q: 3/6 – 2/5 = (15 – 12) = 3/30
R = 2/6 = 10/30
Journal
Particulars Dr. (₹) Cr. (₹)
Workmen Compensation Reserve A/c ………….……. Dr. 60,000
Revaluation A/c …… ₹(90,000 -,60,000) …………… Dr. 30,000
To Prov. for Workmen Compensation Claim A/c 90,000
Land and Building A/c ……………………………….. Dr. 30,000
Stock A/c ……………………………………………... Dr. 20,000
To Revaluation A/c 50,000
Revaluation A/c …………………...…………………. Dr. 20,000
To Prov. for Doubtful Debts A/c 10,000
To Sundry Creditors A/c 10,000
General Reserve A/c …………...…………………….. Dr. 42,000
To P’s Capital A/c 7,000
To Q’s Capital A/c 21,000
To R’s Capital A/c 14,000
P’s Capital A/c …………….………………………... Dr. 20,800
To Q’s Capital A/c 4,800
To R’s Capital A/c 16,000
R’s Capital A/c ………………………………………..Dr. 1,80,000
To Bank A/c 72,000
To R’s Loan A/c 1,08,000
24 Dr. P’s Capital Account Cr. 6
Amount Amount
Particulars Particulars
(₹) (₹)
To Goodwill A/c 32,000 By Balance b/d 2,40,000
To P’s Executor’s A/c 3,65,440 By Profit and Loss A/c 48,000
By Interest on Capital 3,840
By R’s Capital A/c (Profit) 1,600
By S’s Capital A/c (Profit) 8,000
By R’s Capital A/c (Goodwill) 16,000
By S’s Capital A/c (Goodwill 80,000
3,97,440 3,97,440

Workings Note:
 1. Calculation of new Profit sharing Ratio
P’s Share Profit = 2/5
R gained from P = 2/5 x 1/6 = 2/30 and S gained from P = 2/5 x 5/6 = 10/30
⸫ New profit sharing ratio
R :1/5 + 2/30 = (6 + 2)/30 = 8/30
S: 2/5 + 10/30 = (12 + 10)/30 = 22/30 ⸫ R : S = 4 : 11
2. Calculation of Interest on capital:
No. of days from March 31st to June 12 = (30 + 31 + 12) = 73 days
⸫ Interest on Capital = ₹2,40,000 x 8/100 x 73/365 = ₹3840
3. Calculation of Share of Profits:
Here, Average Profits = ₹ (60,000 + 1,40,000 + 1,60,000)/3 = ₹1,20,000
⸫ P’s Share of profits = ₹1,20,000 x 73/365 x 2/5 = ₹9,600
4. Calculation of Share of Goodwill:
Goodwill = ₹1,20,000 x 2 = ₹2,40,000 ⸫P’s Share of Goodwill = ₹2,40,000 x 2 /5 =
₹96,000
25 Bank A/c Dr 34,00,000 6
To Equity Share Application Alc 34,00,000
Equity Share Application A/c Dr 34,00,000
To Equity Share Capital Alc 15,00,000
To Equity Share Allotment Alc 6,00,000
To Bank A/c 4,00,000
(Application money transherred to share capital, share allotment
and remaining refunded)
Equity Share Allotment Alc Dr 51,00,000
To Equity Share Capital A/c 36,00,000
To Securites Premium A/c 15,00,000

Bank Alc Dr 42,00,000

Calls-in-Arrears A/c Dr 3,00,000
To Equity Share Allotment Alc 45,00,000
(Allotment received on 50.000 shares)
Equity Share Capital A/c Dr 4,00,000
Security Premium A/c Dr 1,00,000
To Share Forfeited Alc 2,00,000
To Calls in Arrears A/c 3,00,000
(4,000 shares forfeited for non-payment of allotment money)
Bank Alc Dr 2,40,000
Share Forfeited Alc Dr 60,000
To Equity Share Capital Alc 3,00,000
Share Forfeited Alc Dr 90,000
To Capital Reserve Alc 90,000
(Gain on re-issue of forfeited shares transferred to capital reserve)
OR
Share Capital A/c Dr. 14,000
To Share Forfeited A/c 10,000
To Calls-in-Arrears A/c 4,000
(Being forfeiture of 200 shares for non-payment of money)
Bank A/c Dr 12,000
To Share Capital A / c 10,500
To Securities Premium A/c 1,500
(Being reissue of 150 equity shares of ₹70 each, at premium of 10 each)
Share Forfeited A/c Dr. 7,500
 To Capital Reserve A/c 7.500
(Being amount transferred to capital reserve)

Share Capital A/c Dr. 1,440

Securities Premium A/c Dr 360
To Share Forfeited A/c 900
To Calls-in-Arrears A/c 900
(Being forfeiture of 180 shares for non-payment of share allotment
money)
Bank A/c Dr 1,600
To Share Capital A/c 1,280
To Securities Premium A/c 360
(Being reissue of 160 forfeited shares)
Share Forfeited A/c Dr 800
To Capital Reserve A/c 800
(Being amount of share forfeiture of 160 shares transferred to capital Reserve)
26 a. Bank A/c Dr. 52,50,000, To 12% Deb. Application and allotment A/c 52,50,000 6
12% Deb.application and allotment A/c Dr. 52,50,000, Loss on issue of debenture A/c
2,50,000, To 12% Debentures A/c 50,00,000, To Securities premium A/c 2,50,000, To
Premium on redemption A/c 2,50,000
b. Furniture A/c Dr. 9,00,000, To Vendor A/c 9,00,000
Vendor A/c Dr. 9,00,000, Discount on issue of debenture A/c Dr. 1,00,000, To 12%
Debentures A/c 10,00,000
c. Debenture suspense A/c Dr. 5,00,000, To 9% Debentures A/c 5,00,000
PART B
(Analysis of Financial Statements)
27 b) Current Assets 1
OR
c) Employees benefit expense

28 (c) Accounting Ratio 1

29 (c) It shows inflow and outflow of cash & cash equivalents only 1
30 (c) ₹ 6,00,000 1
31 The objectives of preparing financial statements are 3
1. A financial statement provides timely and reliable information on the economic status of
a company on a periodical basis. It also makes information available to external users or
stakeholders who do not have direct access to the information.
2. A financial statement helps in revealing the true financial position of a company. It
contains information related to liquidity, profitability, financial viability and solvency of an
organisation.
3. A financial statement is helpful in evaluating the earning capacity of a firm.

32 (1) Decrease: Amount obtained in bank will increase the total assets but the shareholders' 3
funds will remain the same, so proprietary ratio will decrease.
(2) No change: Machinery purchased for cash will increase the total assets and
simultaneously decrease the total assets, therefore proprietary ratio will remain unchanged.
(3) Decrease: Redemption of preference shares will decrease total assets and shareholders'
funds simultaneously, so proprietary ratio will decrease.
 (4) Increase: Machinery purchased by issue of equity shares will increase total assets and
shareholders' funds simultaneously, so proprietary ratio will increase. Proprietary ratio
establishes the relationship between proprietors funds and total assets.
33 COMPARATIVE STATEMENT OF PROFIT AND LOSS 4
for the years ended 31st March, 2023 and 2024
Particulars Note 2022-23 2023-24 Absolute Percentage
no. (₹) (₹) change(₹) change(%)
A B C=B−A 𝐶
D=𝐴 ×100
I.Revenue from 25,00,000 40,00,000 15,00,000 60
operations

II.Expenses
a) Employee benefit 1,25,000 2,00,000 75,000 60
expenses
b) Other expenses 5,90,000 6,80,000 90,000 15.25

III.Profit before tax 17,85,000 31,20,000 13,35,000 74.79

Less:Tax@35% 6,24,750 10,92,000 4,67,250 74.49

IV.Profit after tax 11,60,250 20,28,000 8,67,750 74.79

OR
COMMON SIZE BALANCE SHEET
as at 31st March, 2023 and 2024
Absolute Amounts Percentage of Balance
Sheet Total
Particulars Note 31.3.23(₹) 31.3.24(₹) 31.3.23(%) 31.3.24(%)
no.
I.EQUITY AND
LIABILITIES
1.Shareholders’ Funds 2,00,000 2,50,000 66.7 62.5
a)Share Capital 60,000 80,000 20 20
b)Reserves and
Surplus
2.Non-Current liabilities
Long term Borrowings - - -
3.Current Liabilities
Trade Payables 40,000 70,000 13.3 17.5
Total 3,00,000 4,00,000 100 100
II.ASSETS
1.Non-Current Assets
Property, Plant and
Equipment and Intangible
Assets
i)Property, Plant and 1,20,000 1,60,000 40 40
Equipment
ii)Intangible Assets 30,000 20,000 10 5

2.Current Assets
a)Inventories 30,000 80,000 10 20
 b)Trade Receivables 1,00,000 1,20,000 33.3 30
c)Cash and Cash 20,000 20,000 6.7 5
Equivalents
Total 3,00,000 4,00,000 100 100

34 A. Rs. 25,500 6
B. Rs. 12,500
C. ₹ 7,000 will be added with EAT
D. Financing activities
E. Normally, an investment with a short maturity period of
90 days or less is taken into cash & cash equivalents.
Interest earned on non-current investment will be
Shown under Investing Activity.