[Difficult Concept] ~& fC SAMPLE PAPER rime Mowed: 3 Flours} 3, Part-A is compulsory for all the cu 4. Part-B has two options iv, ‘students must attempt only one 5. Question Nos. 1 to 16 an © Analysis of Finaneiat Statements and (1) Computerised Accounting. of the given options as per the subject opted. d 27 to 30 carry 1 mark cach. 6. Question Nos. 17 to 20, 31 and 32 carry 3 marks each 7, Question Nos. 21, 22 and 33 carry 4 marks ench, 8 Question Nos. 23 to 26 and 34 carry 6 marks each, 9, There is no overall choice, However, m an internal choice has been provided in 7 questions of one mark, 2 questions of three marks, 1 Question of four marks and 2 questions of six marks. Part—A Accounting for Partnership Firms and Companies 1. Jai, Gabbar and Billu are partners sharing profits in the ratio of 4 : 2 : 1. Jai retires, selling his share of profit to Gabbar and Billu for a total sum of € 9,600 payable as 7 5.760 by Gabbar and % 3,840 by Billu, The new ratio of Gabbar and Billu will be: (@) 12:8 (6) 3:2 (c) 22:13 (d@) 13:22 2. Assertion (A): Interest on partnes’s loan paid by the firm is a charge against profit and debited to Profit and Loss A/c. Reason (R); Interest on partner's loan paid by the firm is credited to partner's current account when the capital accounts are fixed. (@) (A) is correct but (R) is wrong. | (®) Both (A) and (R) are correct, but (R) is not the correct explanation of (A). (©) Both (A) and (R) are incorrect. ; (@) Both (A) and (R) are correct, and (R) is the correct explanation of (A). 3. When a Public Limited Company proposes to increase its subscribed capital, it is required to offer the shares to promoters, venture capitalists, financial institutions etc, at a pre decided price. Such an issue is termed as: (2) Preferential Allotment (6) Private Placement of Shares (c) Rights Issue (2) Issue of Bonus Shares Sample Papers _ 163)or If vendors are issued fully paid up shures of 2 88,000 in consideration of net assets: of © 68,0109 then the balance of % 20,000 will be: (a) Debited to Statement of Profit.and Loss (6) Debited to Goodwill Account {e) Credited to Securities Premium Account (d) Credited to Capital Reserve Account 4. Palak, Priyanshi and Surbhi were [partners sharing profits and lasses equally. From Ist September, 2023, they decided Wo share future profits in the ratio of 2: 2: 1. On the day of chunge in profit sharing ratio, following changes took place. There was decrease in Plant und Machinery of % 35,000. There was increase in Stock and Prepaid Expense of 7 75.000 and & $,000 respectively and some change in the value of Land and Buildings. ‘The following entry was passed: Revaluation A/c Dr. 120,000 To Palnk’s Cupital A/c 40,000 To Priyanshi’s Capital A/c 40,000 To Surbhi’s Capital Ave 40,000 Whit was the change in the value of Larid and Buildings if all the remaining assets and liabilities remained unchanged? (@) Increase of 275,000 (b) Decrease of € 75,000 (6) Decrease of © 45,000 (@) Increase of ® 45,000 5. Matoh the following: Column A | ‘Colomn B ‘A; interest‘on Capital @) Debited to Parmer’s Capital A/c B. Interestion Partner’s Loan Gi) Profit Sharing Ratio ‘C. Interest on Drawings (i) Ctedited to Partner's Capital A/c Di Division of Profits iv) Charge against Profits Choose the correct option, i CE); Da(itt) (6), Ai); BW) Ci), D-@) @) Ai}; BW Cs DG) Or A.partner withdraws ® 9,000 at the end of every alternate month, first drawings being made on 31st May 2022. What will be interest on drawings for the year ending 31st March 2023 @.9 % pia.? (@) € 1,600 (6) © 2,025 (o), 22,2875 (@) % 4860 6. Atthe tine of issue of'debentures at a discount, Debentures Account is: (@) Credited by the issue price of debentures, (b) ‘Credited by tlie face valtie of debentures (e) Credited by the-amount received {d) None of the above Or ‘Perpetual Debenture is the other name of : (a) Conyertible Debenture 4b) nedesmable Deventure @) Naked Debentures @) None of the above1. Bhovay Lid. was registered with shares of € 100 cach, The for 56,000 shates were am authorises i tating iemaeny ‘capital of % 5,00.00,000 divided into 5,00,000 equity nepitite anita peal equity sharcs for public subscription. Applications: and daly teceived except the sucond nnn nent was made to all the applicants, All calls were made amount of subscribed share capita final call of % 20 per share on SOO shares. Compute the {@) © 56,00,000 " (e) %55,50,000 (b) % 5.60,000 naa ean (a) 2 55,90,000 of & 45,000 i ' 5,000 in Workmen's Compensation Fund in Balance Sheet of X. Y and Z. On Z's death there wa 6 WO saateiee (a) Dr. Revaluation : on compensation claim of % 80,000. How will you teat this? (b) Cr. Revaluation Alc % 45,000 {c) Cr. Revaluation Aje © 80.000 (d) Dr. Revaluation Ave & 35,000 Or Which of these will be paid first at,the time of dissolution of a partnership firm? {a) Partner's Capital (b) Partner's Loan (c) Partner's Wife’s Loan (d) All to be paid rateably Read the following hypothetical situation, answer Question No. 9 and 10. Heena and Suéha share Profit and Loss equally. Their Fixed capitals were T 1,20,000 and 7 80,000 respectively. There was also a balance of € 60,000 in General Reserve and revaluation gain amounted to 215,000. They admit their friend Teena for 1/5th share. Teena brings € 90,000 as capital. 9. Calculate the amount of goodwill of the firm. (a) 7 85,000 © % 20,000 10. Which of the following entry will be passed for Teen's (a) Dr. Premium for Goodwill A/e ® 17,000, Cr. Heena (@) ©1,00,000 (@ None of the above share of goodwill? 's Capital Afe 8,500 and Sudba’s Capital Ale 28,500 (6) Dr. Teena’s Capital Ale 17,000, Cr. Heena's Capital A/c 8,500 and Sudha’s Capital A/c? 8.500 (¢) Dr. Teena’s Current's A/e€ 17,000, Cr. Heene’s Capital A/e® 8,500 and Sudha’s Capital Ale®8,500 (@) Dr. Teena’s Capital Ave & 17,000 and Cr Heena’s Capital A/o ® 17,000 \. 1b ‘Choose the correet sequence of the following transactions in context to reconstitution of partnership yee: (i) Balarice Sheet with re (ii) Recording of unrecorde ) (ii) Caleulation of adjusted closing capital balances f (i) Distcbution of accumulated profi, Tserves mail poate tosses a) (i), We), Oe (&) (i), a a (a) Gis), ). O 42. A Company forfeited 1,300 shares of & 100 each, ¢ 75 called up, for non- payment okt 40 per share. Whar cal be the minimum price at which these shares °° be reissued as fully paid up? (a) % 70 per share (@) FG per share = (c) © 40 per share (a) © 95 per share vised value of assets and liabilities 4 assets and payment of unrecorded liabilities Sample Papers 165]13. 1568 Debentures of & 6,00,000 are issued ay cullatera 22. Interest on these debentures will be paid at 2m {a) 0° {e) 15° p.a. for full year . for 6 months 14, The capital balances of Shalini and K: by the mew partner Payal were & 43,000 und & 30,000 respectively. Ps equal to 1/3rd of the total capital of the new firm, Her amount of capital (a) 2 40,000 (©) 730,000 se ity agains! a bank loun on Octobe , (6) Market rate of interest (d) No interest will be paid before crediting premium for goodwill € 15,000 broyyy, (b) (d) 212,500 % 45,000 brings proportionate capty ill be: 1S. Which of the following is not true with respect to admission of a new partner? () A new partner gets right over the ussets of the firm. (6) A new partner can be admitted, if it is agreed in the partnership decd. (©) A new partner can be admitted, if all the partners agree. (4) A new partner has to bring relatively higher capital as compared to the existing partner, Or Realisation expenses amounted to € 40,000. 25% of these expenses were paid by the firm ang balance was paid by Milind, a partner. What entry should be passed? (a) Realisation A/c Dr. ‘To Bank A/c (6) Realisation Ale Dr. To Milind’s Capital Ave (©) Realisation A/c Dr. To Bank Ale ‘To Milind’s Capital A/c (d) Realisation Alc Dr. To Milind’s Capital A/c To Bank Ale 16. On the day of dissolution of the firm ‘Vijay Brothers’, % 1,60,000, External liabilities @ 45,000, Cash balance % 8,000 and Deferred advert Ale (Dr.) % 7,000. If realisation loss. amounted to % 35,000, the assets were sold a (a) % 2,35,000 (c) 2 1,95,000 17. X, Y and Z were sharing profil of 15 % every year. Compute X’s share of profit for broken period assumin, 40,000 40,000 40,000 40,000 (6) @) year and pass the Journal entry for X’s share in busin 18. Apple and Jio are partners in M/s. Croma Enterp) 2022 by contributing 3 5,00,000 and % 3,00,000 furniture costing % 60,000 from his private sour Machinery costing % 95,000 for the firm from his private sources. On Ist Jam Jio had withdrawn 25,000 and @ 30,000 Tespectively from the business for Se 40,000 40,000 10,000 30,000 10,000 30,000 % 1,55,000 % 2,05,000 » it had Partners’ capitals amounting to isemment expense It: 's in the ratio of 3: 4: 3, On Ist September, 2023, X died, According to partnership agreement deceased! partner's share in profit was to be « Jast year’s profit which was % 2,55,000 which includes 2 © 5,000 of loss of goods by fire. For the last several omputed on the basis of 20,000 of gain on sale of machinery and Years firm’s profits are showing upward trend 16 that accounts are closed on 31st March every ess profit, rises. They started their business on Ist October. Tespectively. On Ist January, 2023, Apple supplied ‘ces for the firm and on the same day Jio purchased wuary, 2023, Apple and their personal use.19. 2 Asperthe provisionsmade inthe on drawing is charged @ 106; Partnership Deed, interest on capital isallowed (« 125% p.o.and interest 223 and Jio isto get kg 3 Apple isto reecive salary of 2200 per month w.c. Ist November, made and firm eamed net thisbte 5° on net sales, During the year 2022-23 net sales af & 2,00,000 was You are required to prepare capi Profit of & 60,000, Accounting year clases an 31st March every year Sapital accounts of the partners under fixed capital method Rishita and Mali 7 tka were partners in a firm sharing profits in the ratio of 7 : 5. Their respective fixed capitals were Rishi the following: 1% 10,00,000 and Malvika ® 7,00,000. The partnership deed provided for @ Amerest on capital @ 12% p.a. (i) Rishita’s salary % 6,000 per m The profit iene Per month and Malvika's salary € 60,000 per year. eta year ended 31.3.2023 was ¥ 5,04,000 which was distributed equally. without providing interest on capital and salary. Pass an adjustment entry. ‘Accounts . ay ghee isa issued & 10,00,000, 12% Debentures of & 100 each at a discount of 10% payable ne oe tion and balance on allotment. These debentures are repayable at a premium of ame per ture after 5 years. Pass Journal entries for issue of debentures (Ignore the treaument of debenture interest and writing off loss on issue of debentures). or Kajal Lid. took over assets of € 50,00,000 and liabilities of € 20,00,000 from ‘Vikas Ltd. for a purchase consideration of € 25,00,000. The purchase consideration was paid by issue of 40,000 12% Debentures of € 50 each at a discount of 10% and balance by cheque. Pass Journal entries in the books of Kejal Ltd. . Vikas, Yogesh and Kunal are partners in a firm. On 31.03.2023 their adjusted closing capital balances were © 50,000, & 40,000 and % 40,000 respectively. Bank balance appears at € 21,000 on that day. Mr. Yogesh decides to retire from the firm on the above mentioned date. Vikds ead Kunal decide to pay him in cash by bringing in Capital in such a manner so thst © 14,900 are left in the bank and their capitals are in the ratio of 2: 1. Show its accounting treatment by passing necessary Journal ontris and giving ProPer working notes. Hlindusten Ltd. has an authorized capital of € 50,00,000, which is divided into Bquity Shares of 2 100 each, The company invited applications for 38,000 shares: “Applications were received for 33,000 1,000 shares was not received. The Directors of the company forfeited shares. Final call of % 20 on 40% of these shares. Later on 50% of the forfeited shares WoXe reissued at % 90 each fully paid up. Show ow Share Capital will appear in the Balance ‘Sheet of the company as per Schedule ILI, Part Tof the Companies Act, 2013. ‘Accounts Gura Cousiselling Services a limited comply provides its educational services in North India, Soeing its grow ard snocess it decided to expand in other partsof India too, especially South India, This would involve huge expenditure for whieh the directors decided to issue ® 60,00,000, 11% : cach at par to be redeemed at 5% premium after 6 years It has a balance of 0 in Securities Pretiium Alc. ; ; eee ions on the basis of the above information: i rout of application money received. ta i uot ‘wil be debited to “Loss on Issue of Debentures Account"? 2 # rurval entry for writing off “Lass/0n Tseuc of Debentures Account”. (iii) Pass necessary Jot Sample Papers 7, 167"23. ‘The Balance Sheet of Jiyn and Shreya who shared the profits in the ratio of 2: 1 was as under. Balance Sheet as on dist March, 2023 ‘Linbitities rei Assets Capitals Acs: Jiyn Livestocl Shreya Loose Tools Creditors Stock Outstanding Rent Debtors 48,000 Reserve Fund (-) Provision for Doubtful Debts 2.000 Jiya’s Current Ale Bank Shraya’s Current A/c On Ist April, 2023, Pragya was admitted as 1/4th partner on the following terms: (@) She brings equipments of 780,000 as her capital. (i) Firm's goodwill is valued at & 1,44,000 and Pragya agreed to bring her share in firm's goodwill by cheque. (iii) Provision for doubtful debts should be maintained at 7.5% on debtors. (i) Increase the value of livestock by % 2,600 and write off loose tools by 20%. (¥) Outstanding rent paid 29,040 in full settlement. Pass all the Journal entries for. the above information and prepare Revaluation Account. or Sakstiaim, Anil and’ Déepak were partners sharing profits and losses in the ratio of 3 : 3 : 2. Their Balance Sheet as on 31-03-2023 was as below: Balance Sheet as on 31st March, 2023 ‘Amouat (@) Capitals Afcs: ‘Saksham 41,10,000 ‘Anil 41,50,000 Deepak 80,000 Bills Payable Creditors ‘Reserve Fund On Ist April, 2023, Deépak retired from the firm on the following terms: @) Goodwill of the firm is to be valued at 7 40,000. (i) Assets are to be valued as Stock & 63,000, Machinery % 1,00,000 and Pumiture ¥ 1,02,000, (ii) Provision for Doubtful Debts is to be maintained at 10% on Debtors, () © 1,000 is 10. be written off from Creditors. (v) The amount payable to Deepak is to be transferred to his loan account. (vi), The continuing partners decided to'maintain their capital balances in their new profit sharing ratio. The surplus or deficit capital to be adjusted through cash. Prepare Revalvation A/c, Partners’ Capital A/cs and Balance Sheet of the new firm on Ist April, 2023.B 23, ng Premium) and 7 3 on first und final call, Applications were received ai ie =n Of which letters of TeBrel were sent to the applicants for 30,000 shares, canta '2 tHe applicant vas made to the remaining applicants. PPlicants for 40,000 shares. Pro-rata allotment A shareholder holding 160 shares 10 whom full allotment was made failed to pay allotment moncy Another sharcholder holding 200 shares 1 whom pro-rata allotment was made also faited to pay allotment moncy. On call, the: Te was a further default on 300 shares. All the shases were forfeited. The first lot of shares were rei dan kde " ‘ to $ as & 10 called up for @ 9 per share. Give Journal entrics for the forfeiture and reissue of these shares. () Om Ltd. issued 10,000 equity shares of € 10 cach at a premium of € 2 per share, payable 7 5 on application, € 5 on allotment and balance on fist and final cll. Mukesh who had 1,000 shares could not pay allotment and call money and his shares were forfeited. 60% of the forfeited shares were reissued to Madan @ & 11 per share. Give necessary Journal entries related to forfeiture and reissue of shares. Gagan, Sanjana and Malini were partners in a firm sharing profits and losses in the ratio of 22: 1. Gagan died on 30th June, 2023. The firm closes its books on 31st March every year. ‘According to their Partuership Deed, the Tepresentatives of the deceased partner would be entitled {0 get Gagan's share in the interim profits of the firm calculated on sales basis. Sales for the year 2022-23 were © 6,00,000. and in the year 2023-24, siles till the date of her death amounted to 3 1,20,000. The profits of the firm for the year 2022-23 were € 1,80,000. ‘You are required to: @) Calculate Gagan’s share of interim profit. @ Pass the necessary Journal entry for giving Gagan’s representatives her share of profits. The partnership firm of A and B was dissolved on March 31, 2023. Their capitals on that date were © 1,70,000 and ® 30,000 respeetively. € 1,00,000 was owed by the firm to A and B owed to the firm 20,000. Creditors on that date wore @ 2,00,000. The assets realised 4,50,000 exclusive of what ‘was owed by B. Find the profit or loss on realisation. ] Part B ‘Analysis of Financial Statement “Refund of Income Tax” for a financial company is shown under (@) Other Expenses @) Other Income © Binployee Benefit Expenses @) Finance Cost Or Current maturities of Long-term Debts is shown under head and subchead of the Balance Sheet. (¢) Current Lisbilites, Short-term Borrowings (@) Non-current Liabilities, Finance Cost(a) Loose tools and stores and spares (6) Provision for doubtful debts (c) Prepaid expenses (d) Both (a) and (b) 29. Which of the following will increase liquid ratio without affecting current ratio? (a) Sale of stock at loss (6) Sale of stock at profit (©) Sale of investment at cost (d) Sale of stock at cost or Statement I: On Ist January 2022, Accounts Guru Lid. issued 50,000, 9% Debentures of @ 100 each and paid interest on these debentures.on 31st March 2023. The net cash flow from financing activity will be % 48,87,500. Statement I: Peak Performance Ltd, a manufacturing company obtained a loan of % 5,00,000, advanced loan of @ 2,00,000 and purchased a machinery of € 6,50,000. The net cash outflow under investing Activity will be © 8,50,000. (@) Both Statements are correct. (®) Both Statements-are incorrect. (© Statement I is corsect and Statement II is incorrect. (@) Statement I is incorrect and Statement II is correct. 30, Bank overdraft and cash credit are to be treated as: (@) Cash Equivalents (@®) Non-current Liabilities © Investing Activity @ Financing Activity 31. Classify following items under major heads and sub heads (if any) in the Balance Sheet of a company as per the Schedule HII of the Companies Act, 2013, @ Provision for Tax (@) Live Stock Git) Capital Advances Gv) ‘Commission received in Advance (v) Advance recoverable in cash within the operating cycle (#) Outstanding Rent 32. With the help of the information given below compute (a) Gross Profit Ratio and (b) Proprietory 28. While computing Current Ratio, current assets do not include: { | | ratio: Particulars Amount (2) Paid-up Share Capital '3,00,000 Current Assets $.00,000 3,00,000 ‘Credit Revenue’ from Operations‘Cosh Revenue from Operatic 9% Debentures 75% of eredit revenue from operations Current Liabilities 3,40,000 Cost of Revenue from Operations an 33. Suen ‘Statement of Profit and Loss for the year ended 31st March, 2023 from the Parison ‘3st March, 2023 202 Revenue from Operations eine Tantnoe Purchase of Stock-in-Trade ¥6,50,000 ¢2,00,000| ‘Change in Inventories of Stock-in Trade 60,000] '2.50,000] Seer Breau 10% of Cost of Revenue] 20% of Cost of Revere} from Operations) from Operations) ‘Tor Rate ‘on 30% Or From the following Balance Sheets of Vinayak Ltd. as at 31st March, 2023, prepare @ ‘Common-size Balance Sheet. Balance Sheet of Vinayak Ltd. as on 3ist March, 2023 ‘Nate 31" March 31 March Particulars No. 2023 2002 @ ®). L_ EQUITY AND LIABILITIES LL Shareholders’ Funds: (@) Share Capital 30,50,000 20,00,000 (©) Reserves and Surphis 2,80,000 6,00,000 2. Current Liabilities: ‘Trade Payables 6,70,000 4.90900] Toul *¥,00,000| _—_30,00,000 U. ASSETS [ 1. Non-curreat Assets: Property, Plant and | Equipment and Intangible Assets (a) Tangible Assets 16,00,000 12,00,000 (6) Intangible Assets 2,00,000 3,00,000 2. Current Assets: {a) inventories 00,000 3,00,000 (8) Trade Receivables 12,00,000 10,00,000 fe) Cash & Cash Equivalents 2,00,000 2,00,000 Total 40,00,000 30,00,000 Sample Papers 471‘M4. Following are the Balance Sheets of Krishna Lid. as on 31st March 2022 and 2023: Prepare Cash Flow Statement after taking into account th i following adjustment; ‘Tax paid during. the year amounted to ¥ 70,000. [a Note | 3m Mareh | 31" March | 2023 Particators No. - © | 1. EQUITY AND LIABILITIES 1. Shareholders’ Funds: 10,00, (a) Share Capital a pone, (©) Reserves and Surplus t as . . inbitities: . ieee ee 5,00,000 1,40.000 3. Current Liabilities: (@) Trade Payables Tn ae (6) Short-term Provisions 2 - ~ ‘Total 25,80,000 16,60,000 IL ASSETS 1, Non-current Assets: Property, Plant and Equipment and Intangible Assets @) Property, Plant and Equipment 3 16,00,000 9,00,000 () Intangible Assets 4 1,40,000, 2,00,000 2. Carrent Assets: @), Tavemtories 250,000 2,00,000 (6) Trade Receivables 5,00,000, 3.00,000 (©) Cash & Cash Equivalents 99,000 Total 25,80,000 Notes to Accounts: ; 3132023 | 313.2022 . = ® ® ‘ 1. Reserves and Surplus: ‘Surplus ({e, Balance in Statement of Profit & Loss) 5,00,000 4,00,000 2. Short-term Provisions: Provision for Tax 80,000 60,000 3, Property, Plant and Equipment: Machinery 17.60.00] 10,00,000 ‘Less: Accumulated Depreciation (2.60,000) (1.00,000) 16,00,000 9,00,000 Tntangibte Assets: Se : 1,40,000, 2,00,000 i