KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION

FIRST PRE-BOARD EXAM 2023-24

SUBJECT- ACCOUNTANCY (055)
CLASS XII (2023-24)
Time Allowed: 3 Hours M.M: 80
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 the 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 as per the subject opted.
5. Question Nos.1 to 16 and 27 to 30 carries 1 mark each.
6. Questions Nos. 17 to 20, 31and 32 carries 3 marks each.
7. Questions Nos. from 21 ,22 and 33 carries 4 marks each
8. Questions Nos. 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.

Q. PART A Marks
N0.
(Accounting for Partnership Firms and Companies)
1. Shanu and Ranu share profits in the ratio of 3:2. Their capitals are ₹ 40,000 and ₹ 30,000 1
respectively. Chabu is admitted for 1/5th share in profits. What is the amount of capital
which Chabu should bring?
(a) ₹ 17,500 (b) ₹ 16,000 (c) ₹ 1,00,000 (d) ₹ 64,000
2. There are two statements marked as Assertion (A) and Reason (R.). Read the statement 1
and choose the appropriate option from the options given below:
Assertion (A): Loan from spouse of a partner is considered as external liability.
Reason (R): It is shown on the debit side of Realisation.
(a) Both A and R are true and R is the correct explanation of A correct explanation of
A.
(b) Both A and R are true but R is not the correct explanation of A correct explanation
of A.
(c) A is true but R is false.
(d) A is false but R is true.
3. Haya Ltd. forfeited 7000 equity shares of ₹ 100 each issued at a premium of 10%, for non- 1
payment of first and final call of ₹ 40 per share. The maximum amount of discount at which
these shares can be reissued will be:
(a) ₹ 2,80,000 (b) ₹ 3,50,000 (c) ₹ 4,90,000 (d) None of these
OR
When debentures are issued at a discount but are redeemable at a par, which of the
following account will be debited at the time of issue.
(a) Discount on issue of Debentures A/c (b) Loss on issue of Debentures A/c
(c) Premium on redemption of deb. A/c (d) Securities Premium A/c

4. Calculate the value of goodwill at 3 years purchase when normal rate of return is 10%.
Capital employed ₹ 2, 50,000 and Average Profit ₹ 30,000.
(a) ₹ 3,000 (b) ₹ 25,000 (c) ₹ 30,000 (d) ₹ 15,000
OR
 1
In case of Workmen Compensation Reserve, if the amount claimed is more than the amount lying
in Workmen Compensation Reserve, then the shortfall will be recorded in :
(a)Revaluation Account (b)Partners’ Capital Account (c)Balance Sheet d)None of these

5. A, B and C are partners in the ratio of 5:3:2. Before B's salary of ₹ 34,000 firm's profit is 1
₹ 1, 84,000. How much in total B will receive from the firm?
(a) ₹ 55,200 (b) ₹ 79,000 (c) ₹ 89,200 (d) ₹ 45,000
6. 1
Alfa ltd took over the assets of ₹ 7, 60,000 and liabilities of ₹ 80,000 of Y limited for
purchase consideration of Rs 5, 85,000 payable by the issue of 12% debentures of ₹
100 each at a discount of 10%. The number of debentures to be issued is:
(a) ₹ 6,600 (b) ₹ 6,500 (c) ₹ 4,500 (d) ₹ 5,400
OR
Securities Premium received on issue of debentures may be utilised for writing off:
a) Premium allowed on redemption of debentures b)Writing off preliminary expenses
c) Writing off discount allowed on issue of debentures d)All of the above.
7. Assertion: Issued capital is that part of the authorized capital which is actually issued to 7
the public only.
Reason: Issued capital also includes the shares allotted to vendors and the signatories to
the company’s memorandum.
a) Both Assertion and reason are true and reason is correct explanation of assertion.
b) Assertion and reason both are true but reason is not the correct explanation of
assertion.
c) Assertion is true, reason is false.
d) Assertion is false, reason is true.
8. 8
Viru and Anil are partners in a firm sharing profits and losses in the ratio 2:1. Their Capital
balances were ₹ 10, 00,000 and ₹ 8, 00,000 respectively. The firm made a profit during the
year amounted to ₹3,45,000. Both partners are allowed a salary of ₹ 2,500 per month.
Interest on capital is allowed @ 5% on capital balance. What will be the Capital balance of
Anil.
(a) ₹ 9,35,000 (b) ₹ 9,10,000 (c) ₹ 9,85,000 (d) None of these

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

Pooja and Shagun are partners in a firm. Pooja is entitled to a salary of ₹ 20,000 p.a. and
commission of 10% of Net profit before charging the commission. Shagun is entitled to a
salary of ₹ 50,000 p.a. with commission of 10% of Net Profit after charging all commission.
Profit after charging salary but before charging any commission for the year was ₹ 5,
50,000.
9. Pooja’s Commission will be:
(a) ₹ 50,000 (b) ₹ 52,000 (c) ₹ 84,000 (d) ₹ 60,000

10. Shagun’s commission will be: 1

(a) ₹ 40,000 (b) ₹ 42,364 (c) ₹42,500 (d) ₹ 47,500

11. 1
A B and C were partners in a firm sharing profits in the ratio of 3:2:1. B was guarantee
profit of ₹ 2, 00,000. During the year the firm earned a profit of ₹ 84,000. Calculate the net
amount of Profit or Loss transferred to the Capital Account of C.
(a) ₹ 87,000 (b) ₹ 29,000 (c) ₹ 25,000 (d) ₹ 75,000
12. Kedar Ltd. took over assets worth ₹ 20, 00,000 from Krishan Ltd. by paying 30% through 1
bank draft and balance by issue of shares of ₹ 100 each at a premium of 10%. The
entry to be passed by Kedar Ltd. for settlement will be :-
A. Krishan Ltd. Dr. 20,00,000
To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,270
To Bank A/c 6,00,000
To Statement of P&L A/c 30
(Being settlement of amount due to
vendors)
B. Krishan Ltd. Dr. 20,00,000
To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,270
To Bank A/c 6,00,030
(Being settlement of amount due to
vendors)
C. Krishan Ltd. Dr. 20,00,000
To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,300
To Bank A/c 6,00,000
(Being settlement of amount due to
vendors)
D. Krishan Ltd. Dr. 20,00,000
To Share Capital A/c 12,73,000
To Securities Premium A/c 1,27,300
To Bank A/c 5,99,700
(Being settlement of amount due to
vendors)
Assertion: When a company is purchasing a running business of other company and 1
13. payment is made via issue of shares, in such a case if purchase consideration is less
than the net assets, the difference is credited in Capital Reserve.
Reason: Goodwill is recoded in the books when some money is paid for it.
(a) Both Assertion and reason are true and reason is correct explanation of
assertion.
(b) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(c) Assertion is true, reason is false.
(d) Assertion is false, reason is true.
14. Chaya, Kaya and Maya are equal partners At the time of Nannu’s retirement. Workmen 1
compensation Reserve (WCR) appears in the books at ₹ 70,000 and the claim of ₹
25,000 was against it. The amount of WCR credited to Nannu’s Capital account will
be:-
(a) ₹ 33,300 (b) ₹ 15,000 (c) ₹ 45,000 (d) ₹ 95,000
OR
Kamal and Beena are partners in a firm with capital of ₹ 18,000 and ₹ 20,000. Naveen
brings ₹10,000 for his share of goodwill and he is required to bring proportionate
capital for 1/3rdshare in profits. The capital contribution of Naveen will be:
(a) ₹ 24,000. (b) ₹ 19,000. (c) ₹ 12,667. (d) ₹ 14,000.
15. X and Y are partners. Y draws a fixed amount at the end of every quarter. Interest on 1
drawings is charged @ 15% p.a. At the end of the year interest on Y’s drawings
amounted to ₹ 9,000. Drawings of Y were:
a)₹24,000 per quarter b) ₹40,000 per quarter c)₹30,000 per quarter d)₹80,000 per quarter
OR
Which one of the following items cannot be recorded in the profit and loss appropriation A/c?
(a) Interest on capital (b) Interest on drawings (c) Rent paid to partners (d)Partner’s salary
16. Sundry debtors are appearing at ₹ 2, 16,000 and provision for doubtful debts at ₹ 1
12,000 in the balance sheet before dissolution. The sundry debtors will be transferred
at which figure in realization account:
(a) ₹ 1,16,000 (b) ₹ 2,36,000 (c) ₹ 2,16,000 (d) ₹ 2, 00,000.
17. M, N and O were partners in a firm running a successful business of car accessories. 3
They had agreed to share profits and losses in the ratio of 1/2: 1/3: 1/6 respectively. After
running business successfully and without any disputes for 10 years, N decided to retire
due to old age. M and O decided to share future profits and losses in the ratio of 3:2.
The accountant passed the following journal entry for N share of goodwill and missed
some information. Fill in the missing figures in the following Journal entry and calculate
the gaining ratio.
Date Particulars L.F Dr Cr
M’s Capital A/c Dr. -- ------
O’s Capital A/c Dr. 21,000
To N’s Capital A/c --------
(N’s share of Goodwill debited to the amounts of
continuing partners in their gaining ratio)
18. P, Q and R were partners in a firm sharing profits and losses in the ratio of 2:3:1. With 3
effect from 1st April, 2018 they decided to share future profits and losses in the ratio of
3:2:1. On that date, their balance sheet showed a debit balance of ₹ 24,000 in Profit
and Loss A/c and a balance of ₹ 1,44,000 in General Reserve. It was also agreed that:
1)The goodwill of the firm be valued at ₹ 180,000. 2)The land (having book value of
₹3,00,000) will be valued at ₹4,80,000. Pass the necessary journal entries for the above
changes.
OR
Sandip and Arora were partners in a firm sharing profits in the ratio of 5:3. Their fixed
capitals on 1.4.2019 were: Sandip ₹ 60,000 and Arora ₹ 80,000. They agreed to allow
interest on capital @ 12% p.a. and to charge on drawings @15% p.a. The profit of the
firm for the year ended 31st March, 2020 before all above adjustments was ₹ 12,600.
The drawings made by Sandip were₹ 2,000 and by Arora ₹ 4,000 during the year.
Prepare Profit and Loss Appropriation A/c of Sandip and Arora. Show your calculations
clearly. The interest on capital will be allowed even if the firm incurs loss.
19. 3
M Ltd. purchased from C. Ltd., computers of ₹ 3,00,000 and software for ₹ 5,00,000
payable ₹ 80,000 by cheque and balance by issue of 7% Debentures of ₹ 100 each at a
discount of 10%. The company has balance in Securities Premium Reserve of ₹ 40,000
and in Capital Reserve of ₹ 25,000. Pass the journal entries in the books of M Ltd.
OR
Yashika Ltd took over the assets of ₹ 15, 00,000 and liabilities of Parul Ltd. The
purchase consideration of ₹ 13, 68,500; ₹ 25,500 were paid by issuing a promissory note
in favour of Parul 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 transaction in the books of Yashika Ltd.
20. X, Y and Z are partners in a firm of sharing profits in the ratio of 2:2:1. X retires an after 3
all adjustments the capitals A/c of X and Y showed balance of ₹ 70,000 and ₹50.000
respectively. They decided to adjust there capitals in new profit sharing ratio by
withdrawing or bringing in cash. Give necessary journal entries.

21. Ashish and Kanav were partners in a firm sharing profits and losses in the ratio of 4
3:2. On 31st March, 2018 their balance sheet was as follows:
Balance Sheet of Ashish and Kanav as at 31” March, 2018
Liabilities Amt (₹) Assets Amt (₹)
Trade Creditors 42,000 Bank 35,000
Employees Provident Fund 60,000 Stock 24,000
Mrs. Ashish's Loan 9,000 Debtors 19,000
Kanav's Loan 35,000 Furniture 40,000
Workmen's Compensation Fund 20,000 Plant 2,10,000
Investment Fluctuation Reserve 4,000 Investments 32,000
Profit & Loss Account 10,000
Capital’s:
Manav - 1,20,000
Kanav - 80,000 2,00,000
3,70,000 3,70,000

On the above date, they decided to dissolve the firm.

(a) Ashish agreed to take over furniture at ₹ 38,000 and pay off Mrs. Ashish's loan.
(b) Debtors realized ₹ 18,500 and plant realized 10% more.
(c) Kanav took over 40% of the stock at 20% less than the book value. Remaining
stock was sold at a gain of 10%.
(d) Trade creditors took over investments in full settlement.
(e) Kanav agreed to take over the responsibility of completing dissolution at an agreed
remuneration of ₹ 12,000 and to bear realization expenses. Actual expenses of
realization amounted to ₹ 8,000.
Prepare Realisation Account.
22 Dipali Ltd. company was registered with an authorized capital of ₹ 20,00,000 divided 4
into 2,00,000 Equity Shares of ₹ 10 each, payable ₹ 3 on application, ₹ 6 on
allotment (including ₹ 1 premium) and balance on call. The company offered 80,000
shares for public subscription. All the money has been duly called and received
except allotment and call money on 5,000 shares held by Manish and call money on
4,000 shares held by Alok. Manish’s shares were forfeited and out of these 3,000
shares were re-issued ₹ 9 per share as fully paid up.
Show share capital in the books of the company. Also prepare notes to accounts.

23 Application for 100,000 shares were received. Application for 10,000 shares were 6
rejected and Application money was refunded. Shares were allotted on pro-rata basis
to the remaining applicants. Excess application money received from applicants to
whom shares were allotted on pro-rata basis was adjusted towards sums due on first
and final call. All calls were made and were duly received except the first and final call
money from Kumar who had applied for 1,800 shares. His shares were forfeited. The
forfeited shares were re- issued at ₹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Guru Limited

OR
 EF Ltd. invited applications for issuing 80,000 equity shares of ₹ 50 each at a
premium of 20%. The amount was payable as follows:
On Application : ₹ 20 per share (including premium ₹ 5)

On Allotment: ₹ 15 per share (including premium ₹ 5)

On First Call ₹ 15 per share On
Second and Final Call Balance amount
Applications for 120,000 shares were received. Applications for 20,000 shares were
rejected and pro-rata allotment was made to the remaining applicants.
Seema holding 4,000 shares failed to pay the allotment money. Afterwards the first call
was made. Seema paid allotment money along with the first call. Sahaj, who had
applied for 2,500 shares failed to pay the first call money Sahaj's shares were forfeited
and subsequently reissued to Geeta for ₹ 60 per share, ₹ 50 per share paid up. Final call
was not made.
Pass necessary journal entries for the above transactions in the books of EF Ltd. by
opening calls-in-arrear.

24. Kavya and Aman were partners in a firm and were sharing profits in 1 ratio, On 6
31.3.2119, their balance sheet:
Balance Sheet of Kavya and Aman as on 31.3.2019
Liabilities Amt (₹) Assets Amt (₹)
Provision for Bad Debts 7,000 Bank 24,000
Outstanding Expenses 18,000 Sundry Debtors 80,000
Bills Payable 47,000 Stock 95,000
Sundry Creditors 1,02,000 Furniture 14,000
Workmen Compensation Machinery 70,000
Reserve 55,000 Land & Building 2,00,000
Capital’s Motor Car 1,96,000
Kavya - 3,00,000
Aman - 1,50,000 4,50,000
6,79,000 6,79,000
On the above date, Raman was admitted as a new partner for 1/5th share in the profits
on the following conditions.
(i) Raman will bring ₹ 2,00,000 as her capital and necessary amount for his share of
goodwill premium The goodwill of the firm on Raman's admission was valued at ₹
1,00,000
(ii) Outstanding expenses will be paid off. ₹ 5,000 will be written off as bad debts
and a provision of 5% for bad debts on debtors was to be maintained.
(iii) The liability towards workmen compensation was estimated at ₹ 60,000.
(iv) Machinery was to be depreciated by ₹ 18,000 and Land and Building was
to be depreciated by ₹ 54,000.
Pass necessary journal entries for the above transactions in the books of the firm.
OR
A, B and C were partners in a firm. Their balance sheet as at 31 March, 2023 was as
follows:
 Balance Sheet of A, B and C as at 31st March, 2023
Liabilities Amt (₹) Assets Amt (₹)
General Reserve 30,000 Bank 20,000
Bill payable 20,000 Furniture 28,000
Creditors 40,000 Stock 20,000
Workman Compensation Reserve 6,000 Debtors 45,000
Capitals:
Less: Prov. for DD (5,000)
A - 60,000 40,000
B - 40,000 Land and Building 1,20,000
C - 32,000 1,32,000
2,28,000 2,28,000

B retired on 1st April, 2023. A and C decided to share profits in the ratio of 2:1. The
following terms were agreed upon:
a) Goodwill of the firm was valued at ₹ 30,000.
b) Bad-debts ₹ 4,000 were written off. The provision for doubtful debts was to be
maintained 10% on debtors
c) Land and building was to be increased to ₹ 1, 32,000.
d) Furniture was sold for ₹ 20,000 and the payment was received by Cheque.
e) Liability towards Workmen Compensation was estimated at ₹ 1,500.
f) B was to be paid ₹ 20,000 through a cheque and the balance was transferred to his
loan account.
Prepare Revaluation Account, Partner’s Capital Account and Bank Account.
25 6
Gaurav, Maheep and Deep were partners in a firm sharing profits in the ratio of
2: 2: 1. The firm closes its books on 31st March every year. On 30th June, 2020
Maheep died. The partnership deed provided that on the death of a partner his
executors will be entitled to the following:
(a) Balance in his capital account which amounted to ₹ 1, 15,000 and interest on
capital till date of death which amounted to ₹ 5,000.
(b) His share in the profits of the firm till the date of his death amounted to ₹ 20,000.
(c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s death
was valued at ₹ 1, 50,000.
(d) Loan to Maheep amounted to ₹ 20,000.
It was agreed that the amount will be paid to his executor in three equal yearly
instalments with interest @10% p.a. The first installment was to be paid on 30.06.2021.

Calculate the amount to be transferred to Maheep’s executors Account and prepare

the executor’s account till it is finally settled.
26 6
(A) Chandra India Ltd. purchased machinery from Bindu India Ltd. Payment to Bindu
India Ltd. was made as follows :
i) By issuing 10,000 equity shares of ₹ 10 each at a premium of 20%.
ii) By issuing 1000, 9% debentures of ₹ 100 each at a discount of 5%.
iii) Balance by giving a bank draft of ₹ 37,000.
Pass necessary journal entries in the books of Chandra India Ltd. for the purchase of
machinery and payment to Bindu India Ltd.
(B) On April 1, 2019 Z Ltd. issued, 10,000, 8% Debentures of ₹ 100 each at premium of
5%, to be redeemable at a premium of 10%, after 5 years. The entire amount was
payable on application. The issue was oversubscribed to the extent of 10,000 debentures
and the allotment was made proportionately to all the applicants. The securities premium
amount has not been utilized for any other purpose during the year.
Give journal entries for the issue of debenture.
 PART B
Option - I
(Analysis of Financial Statements)
Given below are two statements, one labelled as Assertion (A) & the other labelled as 1
27 Reason (R)
Assertion (A): Profitability ratios are calculated to analysis the earning capacity of
the business.
Reason (R): Profitability ratios are calculated to determine the ability of the business to
service its debt in the long run.
In the context of the above two statements, which of the following is correct:
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 but Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d)Assertion (A) is false but Reason (R) is true.
OR
Which of the following ratio establishes the relationship between 'Credit revenue from
operations' and Trade receivables"?
(a) Inventory turnover ratio (b) Interest coverage ratio
(c) Trade payables turnover ratio (d) Trade receivables turnover ratio

28 __________________ is not a limitation of financial statement analysis. 1

(a) To measure the financial strength
(b) Affected by window dressing
(c) Do not reflect changes in price level
(d) Lack of qualitative analysis

29 Which of the following transactions will result into ‘Flow of Cash’? 1

(a) Deposited 10,000 into bank.
(b) Withdrew cash from bank 14,500.
(c) Sale of Machinery of the book value of 74,000 at a loss of 9,000.
(d) Converted 2,00,0000 9% Debentures into equity shares.

OR
What will be the effect of issue of Bonus shares on Cash Flow Statement?

(a) No effect (b) Inflow in Financing Activity

(c) Inflow in Operating activity (d) Inflow in Investing Activity
30 Balance Sheet (Extract) 1
Equity and liabilities 31-3-2019 31-3-2020 (₹)
(₹)
10% Debentures 2,00,000 1,60,000
Additional Information:
Interest on debentures is paid on half yearly basis on 30th September and 31st March
each year. Debentures were redeemed on 30th September, 2019. How much amount
(related to above information) will be shown in Financing Activity for Cash Flow
Statement prepared on 31st March, 2020?
(a) Outflow ₹ 40,000. (b) Inflow ₹ 42,000.
(c) Outflow ₹ 58,000. (d) Outflow ₹ 64,000.
31 Classify the following items under Major heads and Sub heads (If any) in the balance 3
sheet of a Company as per schedule III of the Companies Act 2013.
(i) Loose Tools (ii) Loan repayable on demand
(iii) Provision for Retirement benefits (iv) Pre-paid Insurance
(v) Capital advances (vi) Shares in Listed Companies
32 I) From the following calculate Trade Receivables Turnover Ratio': 3
Total revenue from operation for the year ₹ 8,40,000
Cash revenue from operations 40% of credit revenue from
operations Closing trade receivable ₹ 2,00,000
Excess of closing trade receivables over opening trade receivables ₹ 80,000
II) From the following information calculate 'Interest Coverage Ratio':
Profit after Interest and Tax ₹ 4, 97,000;
Rate of Income Tax 30%
12% Debentures ₹ 6, 00,000.
33 From the information extracted from the statement of Profit & Loss of Guru Ltd for the
year ended 31st March 2022 and 31st March 2023,prepare a common size statement
of profit & loss: 4
Particulars Note No. 2022-23 (₹) 2021-22 (₹)
Revenue from operations 8,00,000 10,00,000
Gross Profit 60% 70%
Other Expenses 2,20,000 2,60,000
Tax Rate 50% 50%
OR
From the following information, prepare comparative statement of Profit & Loss
Particulars Note No. 2022-23(₹) 2021-22(₹)
Revenue from operations 10,00,000 8,00,000
Other Income 2,20,000 1,50,000
Cost of materials consumed 4,00,000 3,00,000
Change in inventories of finished goods & work in
progress 2,00,000 1,00,000
Other Expenses(% of cost of Revenue from Operations 15% 10%
Tax Rate 30% 30%

34 Prepare a Cash Flow Statement from the following Balance Sheets of Arya Ltd.: 6
Particulars Not 31.3.2023 (₹) 31.3.2022 (₹)
e
I. Equity and Liabilities:
(1) Shareholders’ Funds:
a) Share Capital 10,00,000 8,00,000
b) Reserves and Surplus 1 6,40,000 5,40,000
(2) Non-Current Liabilities:
Long-term Borrowings 2
1,50,000 1,00,000
(3) Current Liabilities:
a)Trade Payables 30,000 12,000
b) Short-term Provisions 3 30,000 28,000
Total 18,50,000 14,80,000
II. Assets:
(1) Non-Current Assets:
a) Property, Plant and equipment 4
and intangible assets 7,75,000 4,90,000
90,000 50,000
b) Non-current Investments
(2) Current Assets
6,20,000 4,13,000
a) Inventory
3,20,000 4,94,000
b) Trade receivables
45,000 33,000
c) Cash & Cash Equivalents
 Total 18,50,000 14,80,000

Notes to Accounts:
Particulars 31.3.2023 (₹) 31.3.2022 (₹)
1. Reserves & Surplus:
General Reserve 5,00,000 4,30,000
Capital Reserve 60,000 50,000
Surplus i.e. balance in statement of Profit & 80,000 60,000
Loss 6,40,000 5,40,000

2. Long-term Borrowings: 1,50,000 1,00,000

10% Debentures
3. Short-term Provisions: 30,000 28,000
Provision for tax
4. Tangible Assets: 7,75,000 4,90,000
Plant and Machinery
Additional Information:
a) Tax provided during the year is ₹ 17,000.
b) Depreciation charged on plant and Machinery during the year amounted to
₹ 1, 20,000.
c) Non-current Investments costing ₹ 30,000 were sold for ₹ 40,000 during the year.
Gain on sale of Investments was credited to Capital Reserve.
d) Additional Debentures were issued on 31.03.2023.
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
FIRST PRE-BOARD EXAM 2023-24
SUBJECT- ACCOUNTANCY (055)
CLASS XII (2023-24)
Time Allowed: 3 Hours M.M: 80

Suggestive Marking Scheme – Accountancy XII

1. (a) 1-1/5 = For 4/5th share combined capital of A and B is ₹ 70,000 1
Total Capital will be 70,000 X 5/4 = ₹ 87,500 and its one fifth share = ₹ 17,500
2. (c) A is true but R is false 1
Explanation: Loan taken from spouse or relative of a partner is shown on the credit side of realisation
account.
3. (d.) None of these as Answer will be ₹ 4, 20,000. 1
OR
(a) Discount on Issue of debentures A/c
4. (d) OR 1
(a) Revaluation Account
5. (b) ₹ 79 1
6. (b) ₹ 6,500 OR 1
(d) All of the above
7. (d) Assertion is false, reason is true. 1
8. (a) Opening capital ₹ (8, 00,000) + Salary ₹ (30,000) + Int. On Capital ₹ (40,000) +Profit ₹ (65,000) 1
= ₹ 9,35000
Profit = ₹ 3,45,000 - ₹ 60,000 - ₹ 90,000 = ₹ 1,95,000 divide into 2:1 i.e. ₹ 1,95,000/3= ₹ 65,000
OR
(a) One–third of ₹ (70,000 - 25,000) = ₹ 45,000/3 = ₹ 15,000.
9. (c) ₹ 84,000 1
10. (b) ₹ 42,364 1
11. Option (b) is correct. 1
Explanation: Net amount of loss transferred to:A's Capital Account: ₹ 87,000
C's Capital Account: ₹ 29,000
12. (b) Krishan Ltd. Dr. 20,00,000 1
To Share Capital A/c 12,72,700
To Securities Premium A/c 1,27,270
To Bank A/c 6,00,030
(Being settlement of amount due to vendors)

13. (d) Assertion is false, reason is true. 1

14. (b) ₹ 15,000 Or (a) ₹ 24,000. 1
15. (b) ₹ 40,000. 1
Or
(c) Rent paid to partners
16. (c) ₹ 2,16,000 1
17. Date Particulars L.F Dr (₹) Cr (₹) 3
Anshu’s Capital A/c Dr. 9,000
Chandu’s Capital A/c Dr. 21,000
To Baban’s Capital A/c 30,000
(Baban’s share of Goodwill debited to the amounts of
continuing partners in their gaining ratio)
 Gaining Ratio is 3:7

18. Date Particulars LF (₹) Dr. (₹) Cr

Radhika’s Capital A/c Dr. 8,000

Bani’s Capital A/c Dr. 12,000
Chitra’s Capital A/c Dr. 4,000
To Profit & Loss A/c 24,000
(Being undistributed loss trf to Partners’ Capital A/c)

General Reserve Dr. 1,44,000

To Radhika’s Capital A/c 48,000
To Bani’s Capital A/c 72,000
To Chitra’s Capital A/c 24,000
(Being General Reserve distributed to Partners’ Capital A/c)

Radhika’s Capital A/c Dr. 30,000

To Bani’s Capital A/c 30,000
(Being adjustment entry made for goodwill)

Land A/c Dr. 1,80,000

To Revaluation A/c 1,80,000
(Being Land revalued)

Revaluation A/c Dr. 1,80,000

To Radhika’s Capital A/c 60,000
To Bani’s Capital A/c 90,000
To Chitra’s Capital A/c 30,000
(Being gain on Revaluation transferred to Partners Capital A/c)

OR
Profit and Loss Appropriation Account
(for the year ended 31st March, 2020)
Dr. Cr.
Particulars (₹) Particulars (₹)
To Interest on Capital: By Profit and Loss A/c (Net Profit) 12,600
Arun’s Current A/c – 7,200 By Interest on Drawings:
Arora’s Current A/c – 9,600 16800 Arun’s Current A/c - 150
Arora’s Current A/c - 300 450
By Net Loss transferred to Current A/c:
Arun - 2,344
Arora - 1,406 3,750
16,800 16,800

19. (i) Computers A/c Dr. 3,00,000

Software A/c Dr. 5,00,000
To C. Ltd 8,00,000

(ii) C Ltd Dr. 8,00,000

Discount on issue of debentures A/c Dr. 80,000
To Bank A/c 80,000
To 7% Debentures A/c 8,00,000
 (iii) Securities Premium Reserve A/c Dr. 40,000
Capital Reserve A/c Dr. 25,000
Statement of Profit and Loss A/c Dr. 15,000
To Discount on issue of Debentures A/c 80,000

7,20,000/90 = 8,000, 7% Debentures

OR

(i) Sundry Assets A/c Dr. 15,00,000

Goodwill A/c Dr. 3,68,500
To Sundry Liabilities A/c 5,00,000
To P Ltd 13,68,500

(ii) P Ltd Dr. 13,68,500

To Bills Payable A/c 25,500
To Equity Share Capital A/c 10,74,400
To Securities Premium Reserve A/c 2,68,600

Date Particulars L.F Dr Cr

2018 31 Bank A/c Dr. -- 10,000
20 March
To Y Capital A/c
10,000
(Amount to be brought in by Y)

Z’s Capital A/c Dr. 10,000

To Bank A/c 10,000
(Amount to be Withdrawn by Z)

21
Dr. Realisation Account Cr.
Particulars (₹) Particulars (₹)
To Sundry Assets By Sundry Liabilities
Stock - 24,000 Trade Creditors - 42,000
Debtors - 19,000 EmpProv. Fund - 60,000
Furniture - 40,000 Mrs. Ashish's Loan - 9,000 1,11,000
Plant - 2,10,000 By Investment Fluctuation Reserve 4,000
Investment - 32,000 3,25,000 By Ashish's Capital A/c (Furniture) 38,000
By Bank A/c (Assets):
To Ashish's Capital A/c 9,000 Debtors 18,500
(Mrs. Ashish's Loan) Plant 2,31,000
To Kanav's Capital A/c 12,000 Stock 15,840 2,65,340
(Remuneration) By Kanav's Capital A/c (Stock) 7,680
To Bank A/c (EPF) 60,000

To Partners' Capital A/c (Gain):

Ashish A/c - 12012
Kanav A/c - 8008 20,020
4,26,020 4,26,020
22. 4
Balance Sheet (Extract) as at
Particulars Note No Amount
I. EQUITY AND LIABILITIES
(1) Shareholder’s Funds 1
(a) Share Capital 7,78,000

Notes to Accounts
Note 1:

Particulars Details Amount

1. Share Capital
Authorised Capital
2,00,000 Equity shares of ₹ 10 each 20,00,000
Issued Capital
80,000 Equity shares of ₹ 10 each 8,00,000
Subscribed capital
Subscribed and fully paid up 7,40,000
74,000 equity shares of ₹ 10 each
Subscribed but not fully paid-up
4,000 equity shares of ₹ 10 each 40,000 32,000
Less: calls in arrears (4,000 x ₹ 2) (8,000)
Add Forfeited Shares 6,000
2,000 equity shares@ ₹ 3 7,78,000

Books of Guru Ltd.

Journal
Date Particulars LF Dr. (₹) Cr. (₹)
23. Bank A/c Dr. 10,00,000
To Equity Share Application and Allotment A/c 10,00,000
(Being application and allotment money received
with premium)
Equity Share Application and Allotment A/c Dr. 10,00,000
To Equity Share Capital A/c 4,00,000
To Calls-in-Advance A/c 1,00,000
To Securities Premium Reserve Ac 4,00,000
To Bank A/c 1,00,000
(Being application and allotment money transferred
to share capital)

Equity Share First and Final Call A/c 8,00,000

To Equity Share Capital A/c 4,00,000
To Securities Premium Reserve A/c 4,00,000
(Being call money due with premium)
 Bank A/c Dr. 6,86,000
Calls-in-Advance A/c 1,00,000
To Equity Share First and Final Call A/c 7,86,000
OR
Bank A/c Dr. 6,86,000
Calls in Arrears A/c Dr. 14,000
Calls-in-Advance A/c Dr. 1,00,000
To Equity Share First and Final Call A/c 8,00,000
(Being call money received)
Equity Share Capital A/c Dr. 16,000
Securities Premium Reserve A/c 8,000
To Share Forfeiture A/c 10,000
To Equity Share First and Final Call A/c 14,000
(Being 1600 shares forfeited)
Bank A/c Dr. 14,400
Share Forfeited A/c 1,600
To Equity Share Capital A/c 16,000
(Being shares reissued)
Share Forfeited A/c Dr. 8,400
To Capital Reserve A/c 8,400
(Being balance of share forfeited transferred to
capital reserve A/c)

Or

Date Particulars LF Dr. (₹) Cr. (₹)

Bank A/c Dr. 24,00,000
To Equity Share Application A/c 24,00,000
(Being application money received on 1,20,000
shares)
Equity Share Application A/c Dr. 24,00,000
To Equity Share Capital A/c 12,00,000
To Securities Premium Reserve A/c 4,00,000
To Equity Share Allotment A/c 4,00,000
To Bank A/c 4,00,000
(Being application money transferred to share
capital, securities premium reserve, share
allotment and the balance refunded)
Equity Share Allotment A/c Dr. 12,00,000
To Equity Share Capital A/c 8,00,000
To Securities Premium Reserve A/c 4,00,000
(Being allotment money due on 80,000 shares)
Bank A/c Dr. 7,60,000
Calls-in-Arrears A/c 40,000
To Equity Share Allotment A/c 8,00,000
(Being allotment money received)
Equity Share First Call A/c Dr. 1200000
To Equity Share Capital A/c 1200000
(Being first call money due on 80,000 shares)
 Bank A/c Dr. 12,10,000
Calls-in-Arrears A/c (First call) 30,000
To Equity Share First Call A/c 12,00,000
To Calls-in-Arrears A/c (Allotment) 40,000
(Being first call money received)
Equity Share Capital A/c Dr. 80,000
To Share Forfeiture A/c 50,000
To Calls-in-Arrears A/c 30,000
(Being Sahaj's shares reissued for ₹ 60 per share)
Bank A/c Dr. 1,20,000
To Equity Share Capital A/c 1,00,000
To Securities Premium Reserve A/c 20,000
(Being Sahaj's shares reissued for ₹ 60 per share)
Share Forfeiture A/c Dr. 50,000
To Capital Reserve A/c 50,000
(Being balance in share forfeiture account
transferred to capital reserve)

Date Particulars LF Dr. (₹) Cr. (₹)

24. Outstanding Expenses A/c Dr. 18,000
To Bank A/c 18,000
(Being outstanding expenses paid off)
Bad Debts A/c Dr. 5,000
To Debtors A/c 5,000
(Being bad debts written off)
Provision for Doubtful Debts Ac Dr. 5,000
To Bad Debts A/c 5,000
(Being bad debts adjusted through provision for
doubtful Debts A/c)
Revaluation A/c Dr. 74,500
To Provision for Doubtful Debts A/c 2,500
To Machinery A/c 18,000
54,000
To Building A/c
(Being decrease in value of assets recorded)
Revaluation A/c Dr. 5,000
Workmen Compensation Reserve A/c Dr. 55,000
To Provision for Workmen Comp. Claim A/c 60,000
(Being claim on account of workmen
compensation provided in the books
Raman's Capital Ac Dr 59,625
.Aman's Capital A/c Dr. 19,875
To Revaluation A/c 79,500
(Being Revaluation loss distributed between
old partners)
 Bank A/c Dr. 2,20,000
To Raman’s Capital A/c 2,00,000
To Premium for Goodwill Ac 20,000
(Being capital and goodwill brought by Raman)
Premium for Goodwill A/c Dr. 20,000
To Raman's Capital A/c 15,000
To Aman's Capital A/c 5,000
(Being premium for goodwill distributed between
old partners in sacrificing Ratio)

OR

Dr. Revaluation A/c Cr.

Particulars (₹) Particulars (₹)
To Prov. for Doubtful Debts A/c 3,100 By Land and Building A/c 12,000
To Furniture A/c 8,000
To Gain on Revaluation trf to
Capital A/c
A - 300
B - 300
C - 300 900
12,000 12,000

Dr. Partners' Capital A/c Cr.

Particulars A B C Particulars A B C
To B's Capital A/c 10,000 By Balance b/d 60,000 40,000 32,000
(Goodwill) By RevaluationA/(Gain) 300 300 300
To B's Loan A/c 31,800 By A’s CapitalA/c (G/w) 10,000
To Bank A/c (BalFig.) 20,000
To Balance c/d 51,800 33,800 By WCR 1,500 1,500 1,500

61,800 51,800 33,800 61,800 51,800 33,800

Dr. Bank A/c Cr.

Particulars (₹) Particulars (₹)
To Balance b/d 20,000 By B's Capital A/cBy 20,000
To Furniture A/c (Sale) 20,000 By Balance c/d 20,000
40,000 40,000
25. Maheep dues to be transferred to executors = ₹ 1,15,000 + ₹ 5,000 + ₹ 20,000 + ₹ 60,000 – ₹ 20,000 6

= ₹ 1,80,000

Dr. Maheep’s Executors A/c Cr.

Date Particulars LF Amount Date Particulars LF Amount

(₹) (₹)
31/03/21 To Balance c/d 1,93,500 30/06/20 By Maheep’s Cap. A/c 1,80,000
31/03/21 Interest (9 months) 13,500
1,93,500 1,93,500
30/06/21 To Bank (Ist Installment) 78,000 01/04/21 By Balance b/d 1,93,500
31/03/22 To Balance c/d 1,29,000 30/06/21 By Interest (3 months) 4,500
31/03/22 By Interest (9 months) 9,000
2,07,000 2,07,000
30/06/22 To Bank (IInd Installment) 72,000 01/04/22 By Balance b/d 1,29,000
31/03/23 To Balance c/d 64,500 30/06/22 By Interest (3 months) 3,000
31/03/23 By Interest (9 months) 4,500
1,36,500 1,36,500
30/06/23 To Bank (IIIrd Installment) 66,000 01/04/23 By Balance b/d 64,500
30/06/23 By Interest (3 months) 1,500
66,000 66,000

26. (a) Total payment to vendor ₹ 2,52,000 6

1.5 mark for entry and 1.5 mark for calculation.
(b) 1.5 mark for each entry.

Part – B (Analysis of Financial Statements)

27 Option (c) is correct. 1
Explanation: Solvency ratio are calculated to determine the ability of the business to service its debt in
the long run.
OR
Option (d) is correct.
Explanation: Trade Receivables Turnover Ratio= Net Credit Revenue from Operations/Average Trade
Revenue.
28. (a) To measure the financial strength 1
29. (c) Sale of Machinery of the book value of ₹ 74,000 at a loss of ₹ 9,000. 1
Or
A. No effect
30. (c) Outflow ₹ 58,000. 1
31. S.No. Item Heading Sub-heading 3
i. Loose Tools Current Assets Inventories
ii. Loan repayable on demand Current Liabilities Short Term Borrowings
iii. Provision for Retirement Non-Current Long Term Provisions
benefits Liabilities
iv. Pre-paid Insurance Current Assets Other Current Assets
v. Capital advances Non-Current Assets Long Term Loans and
Advances
vi. Shares in Listed Companies Non-Current Assets Non-Current Investments
32. ( i) Credit Revenue = X 3
Cash Revenue = 40X/100
40X/100 + X= ₹ 8,40,000
X = ₹ 6,00,000
Credit Revenue from Operations = ₹ 6,00,000
Receivables Turnover Ratio=Net Credit Revenue from Operations/Average Trade Receivables
₹ 6,00,000/(₹ 1,20,000 + ₹ 2,00,000/2 = 3.75
(ii) Interest Coverage Ratio = Net Profit before Interest and Tax /Interest Obligation
Interest Coverage Ratio = ₹ 7,82,000
Net Profit before Interest and Tax = ₹ 7,82,000
Interest Obligation = ₹ 72,000
₹ 7,82,000/72,000 = 10.86 times
OR
Total Asset to Debt Ratio = Total Assets/Long-term debts
Total Assets Investment (₹ 1,20,000) + Land (₹ 10,00,000) + Trade Receivables (₹3,00,000) +
Cash and Cash Equivalents (₹ 1,80,000)
= ₹ 16,00,000
Long-term Debt =
Capital Employed (₹ 22,50,000) - Equity Share Capital (₹ 10,50,000) - Capital Reserve (₹ 2,60,000) +
Surplus (Balance in Statement of Profit & Loss) (₹ 35,000) = ₹ 9,75,000
Total Asset to Debt Ratio = ₹ 16,00,000/9,75,000 = 1.64:1
4
33. Common Size Statement of Profit & Loss
Particulars 2022- 2021-22(₹) % on revenue from % on revenue from
23(₹) operations (2021- operations (2022-23)
22)
Revenue from 8,00,000 10,00,000 100 100
operations
Less :- Expenses
Cost of revenue 3,20,000 3,00,000 4 30
0
Other Expenses 2,20,000 2,60,000 27.5 26
Total Expenses 5,40,000 5,60,000 67.5 56
Profit Before Tax 2,60,000 4,40,000 32.5 44
Less:- Tax 1,30,000 2,20,000 16.25 22
Profits after Tax 1,30,000 2,20,000 16.25 22

OR
Comparative Statement of Profit & Loss

Particulars 2021-22 2022-23 Absolute Proportionate

(₹) (₹) Change (in₹) Change (in %)
A. Revenue from operations 8,00,000 10,00,000 2,00,000 25
B. Add: Other Income 1,50,000 2,20,000 70,000 46.67
C. Total Revenue (A+B) 9,50,000 12,20,000 2,70,000 28.42
D. Less: Cost of materials consumed 3,00,000 4,00,000 1,00,000 33.33
Change in inventories of finished 1,00,000 2,00,000 1,00,000 100
goods and workin progress
Other Expenses 80,000 1,50,000 70,000 87.5
Total Expenses 4,80,000 7,50,000 2,70,000 56.25
E. Profits before Tax (C-D) 4,70,000 4,70,000 -- --
F. Tax Rate 1,41,000 1,41,000 -- --
G. Profits after Tax (E-F) 3,29,000 3,29,000 -- --
 Cash Flow Statement for the year ended March 31, 2023
Particulars Details Amount (₹) 6
34. Cash from Operating Activities
Profits before Tax and Extraordinary Activities 1,07,000
Add :- Non-Cash and Non-Operating Expenses
Depreciation on Plant and Machinery 1,20,000
Interest on Debentures 10,000
Cash from Operating Activities before working capital changes 2,37,000
Increase in Trade Payables 18,000
Decrease in Trade Receivable 1,74,000
Increase in Inventory (2,07,000)
Cash from Operations 2,22,000
Less :- Tax Paid (15,000)
Cash from Operating Activities (A) 2,07,000
Cash from Investing Activities
Sale of Investments 40,000

Purchase of Investments (70,000)

Purchase of Plant and Machinery (4,05,000)
Cash from Investing Activities (B) (4,35,000)
Cash from Financing Activities
Issue of Shares 2,00,000
Issue of Debentures 50,000
Interest on Debentures (10,000)
Cash from Financing Activities (C) 2,40,000
Net Cash Flow during the year (A+B+C) 12,000
Add :- Opening Cash and Cash Equivalents 33,000
Closing Cash and Cash Equivalents 45,000
Working Notes :-
Plant and Machinery A/c
Particulars Amount (₹) Particulars Amount (₹)

To Balance b/d 4,90,000 By Depreciation A/c 1,20,000

To Bank (Purchase) 4,05,000 By Balance c/d 7,75,000
8,95,000 8,95,000
Investments A/c
Particulars Amount Particulars Amount (₹)
(₹)
To Balance b/d 50,000 By Bank A/c (sale) 40,000
To Gain on Sale (Capital Reserve) 10,000 By Balance c/d 90,000
To Bank (Purchase) 70,000
1,30,000 1,30,000
Provision for Tax A/c
Particulars Amount (₹) Particulars Amount (₹)
To Bank (Paid) 15,000 By Balance b/d 28,000
To Balance c/d 30,000 By Statement of Profit and Loss 17,000
45,000 45,000
Net Profits after Tax and Extraordinary Items = 20,000
+ Transfer to General Reserve = 70,000
+ Provision for Tax = 17,000
= Net Profits before Tax and Extraordinary Items = 1,07,000
X--------------------------------------------------------------------------------X