ACCOUNTANCY

MOCK PAPER

FOR EXAMINATION ON 31ST MARCH

2023
Series EAD Code RSPL
Candidates must write the Code on
the title page of the answer-book.
Roll No.

 Please check that this question paper contains 21 printed pages.

 Code number given on the right hand side of the question paper should be written

on the title page of the answer-book by the candidate.

 Please check that this question paper contains 34 questions.

 Please write down the Serial Number of the question before attempting  it.

 15 minutes time has been allotted to read this question paper.

ACCOUNTANCY
Time Allowed : 3 hours Maximum Marks : 80

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) Part - A is compulsory for all candidates.

(iv) 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.

(v) Question 1 to 16 and 27 to 30 carries 1 mark each.

(vi) Questions 17 to 20, 31 and 32 carries 3 marks each.

(vii) Questions from 21, 22 and 33 carries 4 marks each

(viii) Questions from 23 to 26 and 34 carries 6 marks each

(ix) 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.

RSPL / EAD/Mock Paper 3 P.T.O.

 PART–A
ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES

1. Anu and Babita are partners sharing profits in the ratio of 2:3. Their
balance sheet shows machinery at ` 4,00,000, stock at ` 80,000 and debtors
at ` 3,20,000.

Chandrika is admitted and new profit sharing ratio is agreed at 6:9:5.

Machinery is revalued at ` 3,40,000 and a provision is made for doubtful
debts @ 2.5%. Anu’s share in loss on revaluation amounted to ` 20,000.
Calculate revalued value of stock.

(a)
` 98,000 (b) ` 1,00,000

(c)
` 68,000 (d) ` 35,000 1

2. Given below are two statements, one labelled as Assertion (A) and the
other labelled as Reason (R).

Assertion (A): At the time of admission of a new partner if profit sharing

ratio among old partners does not change, then sacrificing ratio will be
same as old profit sharing ratio.

Reason (R): Old profit sharing ratio plus new profit sharing ratio is
sacrificing ratio.

In the context of the above statements, which one of the following is correct?

(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 true but (R) is false.

(d) (A) is false but (R) is true. 1

3. Calculate the amount of Allotment when Kajal Ltd. issued 12% Preference
shares of ` 30 each at a premium of 60%, payable on Application ` 20, on
first call ` 11 (including premium ` 6), on final call ` 2.

(a)
` 3 (b) ` 6

(c)
` 9 (d) ` 15 1

RSPL / EAD/Mock Paper 4

 OR

Accounts Guru Ltd. issued a prospectus inviting applications for 10,000

11% Debentures. Applications were oversubscribed to the extent of 13,000

Debentures. Applicants for 3,000 Debentures were sent letter of regret

and applicants for 12,000 Debentures were alloted only 2,000 Debentures.

Himika has been alloted 700 Debentures under pro-rata category. How

many Debentures she must have applied for?

(a) 3600 (b) 3100

(c) 4200 (d) 3620

4. Abhinav, Surbhi and Charvi are partners sharing profits and losses in the

ratio of 5:4:2. On 1st April 2021, they decided to share profits in future

in the ratio of 4:3:2.

On this date, General Reserve was ` 34,900 and loss on revaluation of

assets and liabilities was ` 5,200. It was decided that adjustment should

be made without altering the figures of assets and liabilities in the new

balance sheet.

Which of the undermentioned option reflect correct treatment for the above

information?

(a) Charvi’s capital will be debited by ` 1200; Abhinav’s capital will be credited

by ` 300 and Surbhi’s capital will be credited by ` 900.

(b) Abhinav’s capital account will be debited by ` 1,200; Charvi’s capital will

be credited by ` 300 and Surbhi’s capital will be credited by ` 900.

(c) Surbhi’s capital will be debited by ` 1200; Abhinav’s capital will be credited

by ` 300 and Charvi’s capital by ` 900.

(d) None of the above 1

RSPL / EAD/Mock Paper 5 P.T.O.

 OR

Rickey and Ritz were partners sharing profits in the ratio of 2:1. On March
31, 2021, their books reflected a net profit of ` 1,00,000. As per the terms
of partnership deed they were entitled for Interest on capital which were
` 18,000 and ` 12,000. Beside this, Rickey was to be paid salary of ` 22,500
per quarter whereas Ritz was to get a commission of 15% on net profit
before charging interest, salary or any other such commission.

Interest on drawings that to be charged from Rickey and Ritz were ` 3,000
and ` 1,000. Calculate the ratio in which the profit would be appropriated.

(a) 2:1 (b) 1:1

(c) 4:1 (d) 3:1

5. Manoj and Anju are partners sharing profits in the ratio of 3:1. On March
31, 2022 firm’s net profit is ` 3,75,000. The partnership deed provided
interest on capital to Manoj and Anju as ` 50,000 and ` 25,000 respectively
and interest on drawings for the year amounted to ` 16,000 from Manoj
and ` 14,000 from Anju. They are also entitled for commission @ 5% on
Net profit after interest and all commissions. Calculate the profit to be
transferred to Partners’ Capital A/cs.

(a)
` 3,00,000 (b) ` 3,30,000

(c)
` 3,60,000 (d) ` 3,75,000 1

6. In case of debenture of ` 10,000 are issued at par but redeemable at a

premium of 10%, The premium payable is debited to _____________ A/c at
the time of issue of debentures. :

(a) Debenture suspense account

(b) Premium on redemption of debentures

(c) Loss on issue of debentures

(d) A and B both 1

RSPL / EAD/Mock Paper 6

 OR

Maximum limit on premium on issue of debentures is _____________

(a) 10% (b) 20%

(c) 15% (d) no limit.

7. Verma Ltd. offered 2,50,000 shares of ` 10 each at a premium of ` 4 per

share. Of these, only 98% shares were subscribed. The amount was payable
as follows:

On Application – ` 3 per share

On Allotment – ` 7 per share (including ` 2 for premium)

On first and final call – Balance

If a shareholder holding 3,800 shares has defaulted on first and final call,
what is the amount of money received on first and final call?

(a)
` 10,00,000 (b)
` 9,80,000

(c)
` 9,64,800 (d) ` 9,60,200 1

8. Aakash, Beena and Cherry are partners. Their partnership deed provides
for interest on drawings @ 10% p.a. Cherry withdrew a fixed amount at
the end of each quarter. At the end of the year, interest on his drawings
amounted to ` 2,250.

What was the amount of quarterly drawings?

(a)
` 12,000 (b) ` 10,000

(c)
` 15,000 (d)
` 60,000 1

OR

At the time of retirement of a partner, recording of an unrecorded accrued

income will lead to:

(a) Loss to existing partners

(b) Neither gain nor loss to the existing partners

(c) Gain to All partners

(d) None of these

RSPL / EAD/Mock Paper 7 P.T.O.

Read the following hypothetical situation, Answer Question No. 9 and 10

On 1st November 2021, Raja and Rani who were husband and wife decided to
start their partnership firm in the name “Your Family Bazaar” for selling grocery
items on traditional basis. After one month, they admitted their college friend
who helped them to set up the business in digital mode. Since, they were very
close to each other so they were not having any explicit agreement. Raja and
Rani have capitals of ` 2,00,000 each while their college friend invested only
` 1,00,000. The books were closed on March 31, 2022, on which date the following
information was provided by the firm:

Particulars `

Total Sales (All in Cash/Bank) 32,00,000

Total Purchases (Cash and Credit) 14,40,000

Returns Outward 1,10,000

Remuneration to partner (only to friend for digital work) 40,000

Rent of Building to third party p.a. 1,20,000

Salary of workers (for the relevant period) 40,000

Closing inventory 1,40,000

Advance taken from Rani (on 1st December 2021) 2,00,000

9. Amount of profit to be transferred to Profit and Loss Appropriation A/c is:

(a)
` 13,54,000 (b) ` 13,50,000

(c)
` 14,24,000 (d) ` 18,46,000 1

10. Interest on Rani’s Loan (Advance) for the current accounting period is:

(a)
` 4,000 (b)
` 12,000

(c)
` 10,000 (d)
` 6,000 1

RSPL / EAD/Mock Paper 8

 11. R, S and T were partners sharing profits in the ratio of 2:2:1. According
to the partnership agreement, S is to get a minimum amount of ` 2,00,000
as his share of profits every year and any deficiency on this account is to
be borne by R and T equally. The net profit for the year ended March 31,
2021 amounted to ` 4,00,000.

Calculate the amount of deficiency to be borne by T.

(a)
` 13,334 (b) ` 20,000

(c)
` 40,000 (d)
` 12,000 1

12. What will be the correct sequence to show share capital?

(i) Subscribed and fully paid up capital

(ii) Authorised share capital

(iii) Issued share capital

(iv) Subscribed but not fully paid up capital

(a) (i), (ii), (iii), (iv) (b) (ii), (iii), (i), (iv)

(c) (iii), (ii), (iv), (i) (d) (iv), (ii), (i), (iii) 1

13. A company can issue shares under ESOP to:

(a) Whole time directors (b) Officers of companies

(c) Employees of companies (d) All of the above 1

14. At the time of admission of a new partner Vansh, old partners Ansh and
Chavi had debtors of ` 4,40,000 and a provision for doubtful debts ` 35,000
in their books. As per terms of admission, assets were revalued and it was
found that debtors worth ` 40,000 had turned bad and hence should be
written off. Which is the correct journal entry for the above situation.

(a) Date Particulars L.F. Dr. (`) Cr. (`)

Bad Debts A/c Dr. 39,000

To Sundry Debtors A/c 39,000

RSPL / EAD/Mock Paper 9 P.T.O.

 (b) Date Particulars L.F. Dr. (`) Cr. (`)

Bad Debts A/c Dr. 40,000

To Revaluation A/c 40,000

(c) Date Particulars L.F. Dr. (`) Cr. (`)

Bad Debts A/c Dr. 40,000

To Sundry Debtors A/c 40,000
Provision for Doubtful Debts A/c Dr. 40,000
To Bad Debts A/c 40,000

(d) Date Particulars L.F. Dr. (`) Cr. (`)

Bad Debts A/c Dr. 40,000

To Sundry Debtors A/c 40,000
Provision for Doubtful Debts A/c Dr. 35,000
Revaluation A/c Dr. 5,000
To Bad Debts 40,000 1

15. Lalit, Rajeev and Neeraj are partners sharing profits in the ratio of 30:24:41.
Share of Rajeev in the profits for the year ending amounted to ` 6,000,
what will be Neeraj’s share of profit?

(a)
` 23,750 (b) ` 7,500

(c)
` 10,250 (d) ` 14,700 1

OR

In the absence of a partnership deed, a partner is entitled to an interest

on advances by him to the firm at a rate of:

(a) Entitled for 6% on advances only when there are profits

(b) Entitled for 6% p.a. on advance whether profit or loss

(c) Entitled for 6% p.a. on advances irrespective of time period

(d) Not entitled for any interest

RSPL / EAD/Mock Paper 10

 16. On dissolution of a firm, a partner paid ` 7,000 as firm’s realisation

expenses. Which account will be debited while passing journal entry for

expenses?

(a) Cash A/c (b) Realisation A/c

(c) Partner’s Capital A/c (d) Profit and Loss A/c 1

17. X, Y and Z were partners in a firm sharing profits in the ratio of 4:3:2.

Y died. The new profit sharing ratio decided between X and Z is 2:1. Fill

the missing figures in the following journal entries:

Journal

Date Particulars L.F. Dr. (`) Cr. (`)

X's Capital A/c Dr. 40,000

Y's Capital A/c Dr. ............

Z's Capital A/c Dr. ............

To Goodwill A/c ............

(For existing goodwill written off)

X's Capital A/c Dr. ............

Z's Capital A/c Dr. 12,000

To Y's Capital A/c ............

(For Y's share of goodwill adjusted between

partners)

X's Capital A/c Dr. ............

Z's Capital A/c Dr. ............

To Y's Capital A/c 15,000

(For Y's share of general reserve provided

to him. General reserve will remain as it is
in the books). 3

RSPL / EAD/Mock Paper 11 P.T.O.

 18. Heena, Reena and Meena are partners with fixed capital of ` 5,00,000,
` 10,00,000 and ` 15,00,000. Profit of ` 36,000 was distributed among
partners, in their capital ratio, after providing the following:

(a) Salary to Heena ` 5,000 per month.

(b) Interest on capital @ 5% p.a.

Though the deed was silent as to sharing profit, interest on capital and
salary to partners.

Pass the necessary adjustment entry. 3

OR

The partnership agreement of Rohit, Ali and Sneh provides that

(i) Profits will be shared by them in the ratio of 2:2:1.

(ii) Interest on capital to be allowed @ 6% p.a.

(iii) Sneh to be given a salary of ` 500 per month.

(iv) Sneh’s share of profit including interest on capital but excluding salary
is guaranteed at ` 18,000. Any deficiency arising on that account shall
be met by Rohit.

The capitals of the partners on 1st April, 2021 were:

Rohit ` 1,20,000, Ali ` 1,00,000; Sneh ` 1,00,000. The net profit for the
year 2021-22 ` 80,000.

Prepare Profit and Loss Appropriation Account for the year ended 31st
March 2022.

19. Accounts Guru Ltd. acquired business of M/s Seekha Ltd. The following
assets and liablilities were acquired:

Building ` 6,50,000

Machinery ` 2,10,000

RSPL / EAD/Mock Paper 12

 Debtors ` 50,000

Inventories ` 80,000

Creditors ` 1,20,000

4% of the purchase consideration was paid through a cheque of ` 36,800

and balance through the issue of 9% Debentures of `100 each at a discount
of 20%.

Pass necessary Journal entries is the Books of Accounts Guru Ltd.  3

OR

On 01.04.2022 Poonam Ltd. received in advance the final call of ` 3 per

share on 20,000 equity shares. The final call was due on 1,00,000 shares
on 15.06.2022. Record the necessary journal entries in the books of the
company on 01.04.2022 and 15.06.2022.

20. Bhavya and Naman were partners in a firm carrying on a tiffin service in
Hyderabad. Bhavya noticed that a lot of food is left at the end of the day.
To avoid wastage, she suggested that it can be distributed to the needy.

Naman gave a proposal that if his share in the profit increased, he will
not mind free distribution of left over food. Bhavya happily agreed. So they
decided to change their profit sharing ratio 1:2 with immediate effect.

On that date the book of the firm shows following balances:

• General reserve ` 45,000

• Profit and Loss account ` 6,000 (Dr.)

• Workmen compensation fund ` 14,000

On the above date the firm was reconstituted and it was decided that:

(a) The Plant was reduced by ` 4,000.

(b) Goodwill of the firm was valued at ` 90,000.

(c) The claim for workmen compensation has been estimated at ` 6,000.

RSPL / EAD/Mock Paper 13 P.T.O.

 Based on the above information you are required to answer the following
question.

I. Give the journal for General reserve, if partners decided not to distribute
it.

(a) Debit General Reserve A/c by ` 45,000 and Credit Bhavya’s Capital
A/c and Naman’s Capital A/c by ` 20,500 each

(b) Debit Bhavya’s Capital A/c by ` 7,500 and Credit Naman’s Capital
A/c by ` 7,500

(c) Debit Naman’s Capital A/c by ` 7,500 and Credit Bhavya’s Capital
A/c by ` 7,500

(d) Debit Bhavya’s Capital A/c and Naman’s Capital A/c by ` 20,500 each
and Credit General Reserve A/c by ` 45,000

II. Revaluation account is credited by ` 4,000 for reduction in value of plant

(True/False)

III. Workmen compensation fund of ___________ was distributed between

Bhavya and Naman in their ___________ 3

21. Gamon India Ltd. was registered with an authorized capital of ` 50,00,000
divided into 5,00,000 equity shares of ` 10 each. The company issued 30,000
equity shares as fully paid to the vendor for purchase of building and
2,50,000 equity shares were subscribed by the public. All the calls were
made and duly received except the second and final call of ` 2 per share
on 3,500 shares. 3,000 shares were forfeited. Show how “Share Capital”
will appear in the balance sheet of the company. Also prepare ‘Note to
Accounts’ for the same. 4

22. Sagar and Prateek are partners in a firm sharing profits in the ratio
2 : 3. On 31st March 2022, the firm dissolved and the Balance Sheet on
this date was as follows:

RSPL / EAD/Mock Paper 14

 Amount Amount
Liabilities Assets
(`) (`)
Capital Accounts: Land and Building 4,00,000

Sagar 2,12,000 Machinery 2,50,000

Prateek 4,26,000 6,38,000 Investments 1,20,000

Investment Fluctuation Fund 1,00,000 Debtors 80,000

Employee Provident Fund 70,000 Less: P

 rovision for Doubtful

Creditors 80,000 Debts 4,000 76,000

Bank 42,000
8,88,000 8,88,000

The assets and liabilities were settled as follows:

(a) The debtors were sold to a debt collecting agency at a discount of 2%.

(b) Creditors accepted investments for a value of ` 1,00,000 and paid the
balance amount in cash.

(c) Other assets realised ` 5,10,000.

(d) Realisation expenses amounted to ` 800 which was paid by Sagar in cash.
Show settlement of Accounts. 4

23. Hi Tech Ltd. issued 20,000 equity shares of ` 10 each at a premium of

` 2 per share payable:

` 5 on application

` 5 on allotment (including premium)

and balance with call

The issue was oversubcribed to the extend of 5,000 shares and prorata
allotment was done to all the applicants. All the money was duly received
as and when called; except allotment and call on 300 shares. These shares
were forfeited and later reissued at ` 7 fully paid.

Pass the necessary journal entries and prepare cash book to record the
above transactions. 6

RSPL / EAD/Mock Paper 15 P.T.O.

 OR

Vijeta Computers Ltd. has an authorised capital of 20,000 shares @ ` 100

each. It issued 5,000 shares to the public, the amount payable as follows:

On application ` 20

On allotment ` 30

On first call ` 30

On second call ` 20

Applications were received for 4,500 shares. All calls were made and money
was duly received except:

(a) A holder of 300 shares did not pay anything after application.

(b) A holder of 500 shares did not pay anything after allotment.

(c) A holder of 200 shares did not pay anything after first call.
The company forfeited the shares on which less than ` 80 is received. These
shares were then reissued at ` 80 fully paid.
Pass the necessary journal entries to record the above transactions.

24. A, B and C are partners in a firm, sharing profits in the ratio 5 : 3 : 2.

Their Balance Sheet stood as follows as on 31st March 2022:

Amount Amount
Liabilities Assets
(`) (`)
Capitals: Building 65,000

A 50,000 Goodwill 20,000

B 30,000 Plant 15,000

C 20,000 1,00,000 Debtors 27,000

General Reserve 9,000 Stock 30,000

Creditors 60,000 Cash at Bank 12,000

1,69,000 1,69,000

RSPL / EAD/Mock Paper 16

 The decided to admit D into the partnership firm for 1/6th share. D brought
` 35,000 as capital. Following terms were decided:

(a) Plant was found to be undervalued by 20%.

(b) Debtors written off last year, paid ` 500.

(c) Stock of value ` 3,000 was found obsolete and was expected to realise
only ` 800.

(d) The goodwill of the firm is valued at ` 60,000. D brought his share in
cash.

(e) The capitals of all the partners should be made proportion to their profit
sharing ratio, on the basis of incoming partner’s share.

Prepare Revaluation A/c, Partners’ Capital A/cs and Balance Sheet of the
new constituted firm. 6

OR

Atul, Bilal and Charu are partners sharing profits in the ratio 4 : 3 : 1.
Their Balance Sheet as on 31st March 2022 is as follows:

Amount Amount
Liabilities Assets
(`) (`)
Capital: Building 1,40,000
Atul 80,000 Patents 30,000
Bilal 60,000 Debtors 30,000
Charu 50,000 Stock 26,000
Sundry Creditors 48,000 Bank 12,000

2,38,000 2,38,000

Bilal retires from the firm on the above date. The following terms were
agreed upon:

(a) Goodwill of the firm was valued at ` 48,000.

RSPL / EAD/Mock Paper 17 P.T.O.

 (b) Stock was found to be overvalued by ` 2,000.

(c) A provision @ 5% is to be created for bad and doubtful debts.

(d) Building is to be appreciated by ` 60,000.

(e) A liability against workmen compensation is to be created for ` 8,100.

(f) Bilal is paid the full amount with cash brought in by Atul and Charu in
such a manner that their capital are in proportion to their future profit
sharing ratio, i.e., equal and Cash at Bank remains at ` 15,000.

Prepare Revaluation A/c, Partners’ Capital Accounts and Balance Sheet of

new firm of Atul and Charu.

25. The Balance Sheet of Sarah, Riya and Kaya who were sharing profits in
the ratio of 3:3:4 respectively, as on 31st March, 2022 was as follows:

Amount Amount
Liabilities Assets
(`) (`)
Capitals: Land and Building 1,20,000

Sarah 1,20,000 Investments 94,000

Riya 1,00,000 Stock 34,000

Kaya 80,000 3,00,000 Sarah's loan 20,000

Loan 24,000 Profit and Loss A/c 74,000

Bills Payable 20,000 Cash 12,000

General Reserve 10,000

3,54,000 3,54,000

Sarah died on 31st July 2022. The partnership deed provided for the
following on the death of a partner:

(a) Goodwill of the firm be valued at two years’ purchase of average profits
for the last three years which were ` 80,000.

RSPL / EAD/Mock Paper 18

 (b) Sarah’s share of profit till the date of her death was to be calculated on
the basis of sales. Sales for the year ended 31st March, 2022 amounted
to ` 8,00,000 and that from 1st April to 31st July 2022 ` 3,00,000.
The profit for the year ended 31st March 2022 was ` 2,00,000.

Prepare Sarah’s Capital Account to be rendered to her executor. 6

26. XYZ Ltd. issued 2,500; 10% Debentures of ` 100 each. Give journal entries
when:

(i) Debentures were issued at a premium of 20%.

(ii) Debentures were issued as a collateral security to Bank against a loan

of ` 2,00,000.

(iii) Debentures were issued to a supplier of a machinery costing ` 2,50,000. 6

PART–B
ANALYSIS OF FINANCIAL STATEMENTS

27. Following information has been obtained from the Statement of Profit and
Loss of a Company:

Revenue from Operations – ` 20,00,000, cost of materials consumed –

` 8,00,000, Employees benefit expenses – ` 20,000, Finance cost – ` 5,000,
Depreciation – ` 25,000.

Its Profit before tax will be :

(a)
` 12,00,000 (b) ` 11,80,000

(c)
` 11,75,000 (d)
` 11,50,000 1

OR

Interest and dividend earned by a financial company is shown in Statement

of Profit and Loss under the sub-head:

(a) Revenue from Operations (b) Other Income

(c) either (a) or (b) (d) neither (a) nor (b)

RSPL / EAD/Mock Paper 19 P.T.O.

 28. Which of the following ratio establishes relationship of ‘Shareholders funds’
to ‘Net assets’?

(a) Return on Investment (b) Interest Coverage Ratio

(c) Proprietary Ratio (d) Debt - Equity Ratio 1

29. Which of the following transactions does not involve flow of cash under
any of the activity in Cash flow Statement?

(a) Buy back of equity shares (b) Sale of investment

(c) Paid to creditors (d) Cash deposited into Bank 1

OR

Which of the following is not a Cash flow from Operating Activities?

(a) Cash proceeds from sale of goods and services

(b) Cash proceeds from sale of investments

(c) Cash payments to employees

(d) Cash payments to suppliers of goods

30. Which of the following transactions will result into flow of cash?

(a) Cash withdrawn from bank ` 20,000

(b) Issued ` 20,000, 9% debentures for the vendors of machinery

(c) Received ` 19,000 from debtor

(d) Deposited cheques of ` 10,000 into bank 1

31. Under which major heads and sub-heads will the following items be placed
in the Balance Sheet of the company as per Schedule III, Part I of the
Companies Act, 2013?

(i) Cheques and Bank Drafts in Hand

(ii) Loose tools

(iii) Securities Premium

RSPL / EAD/Mock Paper 20

 (iv) Long-term Investments with maturity period less than six months

(v) Work-in-Progress

(vi) Mining Rights 3

32. Financial Statement analysis is affected by personal ability and biasness

of the analyst.

Explain the above limitation of Financial Statement analysis and list any
other 2 limitations also. 3

33. (a) Current ratio of ABC Ltd. is 2 : 1 and Current Assets is of ` 1,50,000. The
sales of the company is ` 6,00,000. Calculate Working Capital Turnover
Ratio.

(b) Calculate Return on investment from the following information:

Profit after interest and tax ` 1,05,000

8% Debentures of ` 100 each ` 5,00,000

10% Preference Shares ` 3,00,000

20,000 Equity Shares of ` 10 each ` 2,00,000

Tax rate 50% 4

Or

(a) Operating Cost ` 27,20,000; Operating Expenses ` 3,20,000; Gross Profit

Ratio 25%. Calculate Operating Ratio.

(b) State with reason whether the following transactions will increase, decrease
or not change the ‘Return on Investment’:

(i) Purchase of machinery worth ` 2,00,000 by issue of equity shares.

(ii) Charging depreciation of ` 5,000 on machinery.

(iii) Redemption of debentures in cash ` 70,000.

(iv) Issue of equity shares for cash ` 50,000.

RSPL / EAD/Mock Paper 21 P.T.O.

 34. From the following Balance Sheets of Karuna Ltd. as at 31st March, 2022

and 31st March 2021, Prepare Cash Flow Statement.

Note 31-3-2022 31-3-2021

Particulars
No. (`) (`)
I.  Equity and Liabilities

1. Shareholders’ Funds:

(a) Share Capital 8,08,000 6,65,000

(b) Reserve and Surplus 1 1,30,000 1,20,000

2. Non-Current Liabilities:

Long-term Borrowings 2 4,00,000 4,00,000

3. Current Liabilities:

(a) Short-term Borrowings 3 80,000 –

(b) Trade Payables 1,30,000 1,62,000

(c) Short-term Provisions 4 70,000 80,000

Total 16,18,000 14,27,000

II. Assets

1. Non-Current Assets:

(a) Property, Plant and Equipments and

Intangible Assets

Property, Plant and Equipments: Fixed Assets 9,00,000 8,80,000

(b) Non-Current Investments 4,00,000 3,00,000

2. Current Assets:

(a) Inventories 1,18,000 72,000

(b) Trade Receivables 80,000 95,000

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

Total 16,18,000 14,27,000

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 Notes of Accounts:

31-3-2022 31-3-2021
Particulars
(`) (`)
1. Reserves and Surplus
Balance as per Statement of Profit and Loss 50,000 70,000
General Reserve 80,000 50,000
1,30,000 1,20,000
2. Long-term Borrowings
10% Debentures 4,00,000 4,00,000
4,00,000 4,00,000
3. Short-term Borrowings
Bank Overdraft 80,000 –
80,000 –
3. Short-term Provision
Provision for tax 70,000 80,000
70,000 80,000

Additional Information:.

(a) Interim divident of ` 80,000 was paid.

(b) Depreciation on Fixed assets ` 1,80,000 was charged. 6

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RSPL / EAD/Mock Paper 23