Series : 22-23/LVIS Code No.

055/02
MOCK TEST 2023 – 24 2022/2
Accountancy (XII)
Time Allowed: 3 hours Maximum Mark : 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. P 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.

PART – A
(Accounting for Partnership Firms and Companies)
1. Ravi, Kavi and Shaivi were partners in the ratio of 4 : 3 : 1. Ravi retired and his share is
purchased by Kavi and Shaivi for Rs. 96,000. The new profit sharing ratio of Kavi and
Shaivi will be __________, if Kavi paid Rs. 60,000 and Shaivi paid Rs. 36,000 against the
total amount to be paid. (1)
(a) 1 : 1 (b) 4:3 (c) 11 : 5 (d) 5:3
2. Interest due on partner’s loan is credited to : (1)
(a) Partner's Loan (b) Partner’s capital account
(c) Partner’s current account (d) Both (a) and (c) above
3. At the time of dissolution of partnership firm, goodwill appearing in the books is : (1)
(a) Debited to partner‘s Capital account in old ratio
(b) Debited to Realisation account
(c) Credited to Realisation account
(d) Written Off from the books
Or
P and Q are partners sharing profits in the ratio of 3 : 2. Q withdrew a regular amount at the
end of every month. At the end of the year, interest on his drawings @6% p.a were
calculated at Rs. 2,310. His monthly drawings were:
(a) Rs. 8,000 (b) Rs. 9,000 (c) Rs. 7,000 (d) Rs. l0,000

P.T.O 
 Accountancy Mock Test (Class XII)

4. Assertion (A) : All accumulated profits are divided among the existing partners in their
profit sharing ratio.
Reason (R) : At the time of retirement of a partner, employees provident fund is divided
among old partners in old ratio.
(a) Assertion (A) is correct but Reason (R) is wrong.
(b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct
explanation of Assertion (A)
(c) Both Assertion (A) and Reason (R) are incorrect
(d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is the correct
explanation of Assertion (A) (1)
5. Zibin Fabrics Ltd. issued 50,000, 10% Debentures of Rs. 100 each to be issued at Rs. 94.
The entire amount was payable on application. The company had received applications for
62,000 debentures. The amount refunded on application will be : (1)
(a) Rs. l l,82,000 (b) Rs. 11,28,000 (c) Rs. 12,00,000 (d) Rs. 72,000
Or
Sara Fashions Ltd issued 90,000. 8% Debentures of Rs. 100 each at Rs. 140. The entire
amount was payable on application. The company had received application for l,05,000
debentures. The excess amount refunded on application will be:
(a) Rs. 12,00,000 (b) Rs. 6.00.000 (c) Rs. 10,50,000 (d) Rs. 21,00,000
6. Y Ltd. forfeited 1,500 equity shares of Rs. 10 each for the non-payment of first call of Rs.
2 per share. The final call of Rs. 2 per share was not yet made. The maximum amount of
discount at which these shares can be re-issued is: (1)
(a) Rs. 6,000 (b) Rs 9,000 (c) Rs. 4,500 (d) Rs. 12,000
7. Match the following with respect to the treatment of goodwill: (1)
i. Change in profit sharing ratio A. Gaining partners cap a/c ………..Dr
To Retiring partners cap a/c
ii. Admission of a partner B. Gaining partners cap a/c ………..Dr
To Sacrificing partners cap a/c
iii. Retirement of a partner C. Premium for Goodwill a/c ……..Dr
To Sacrificing partners cap a/c
(a) i (C), ii (A), iii (B) (b) i (A), ii (B), iii (C)
(c) i (B), ii (A), iii (C) (d) i (B), ii (C), iii (A)
Or
A, B and C were sharing profits and losses in the ratio of 4/9 : l/3 : 2/9. B retires and gifted
1/3rd of his share in favour of A and sells remaining share to A and C equally. The gaining
ratio will be:
(a) 1 : 1 (b) 2:1 (c) 4:2 (d) None of these

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 Accountancy Mock Test (Class XII)

Read the following hypothetical situation, Answer Question No: 8 and 9.

On 1st November 2020, Raja and Rani who were husband and wife decided to start their
partnership firm in the name of “Your price, Your deal” 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 Rs. 2,00,000 each while
their college friend invested only Rs. l,00,000. The books were closed on March 31, 2021.
On which date the following information was provided by the firm:
Total Sales (all in cash/bank) Rs. 32,00,000
Total purchases (cash and credit) Rs. 14,40,000
Remuneration to partners Rs. 40,000
Rent of building to third party Rs. l,20,000 p.a
Salary of workers Rs. l,40,000 (for the relevant period)
Advance taken from Rani (on 1st December, 2020) Rs. 2,00,000
Closing inventory Rs. l,40,000
8. Calculate the amount of profit to be transferred to Profit and Loss Appropriation A/c (1)
(a) Rs. 13,54,000 (b) Rs. 13,50,000 (c) Rs. 14,24,000 (d) Rs. 17,26,000
9. Interest on Rani’s Loan (Advance) for the current accounting period is : (1)
(a) Rs. 4,000 (b) Rs. 12,000 (c) Rs. 10,000 (d) Rs. 6,000
10. A share of Rs. 10 each, issued at a premium of Rs. 3 out of which Rs. 9 (including premium)
is called. The uncalled amount of capital will be: (1)
(a) Rs. 7 (b) Rs. 4 (c) Rs. 8 (d) Rs. 3
Or
These are those debentures which can be transferred by mere delivery. Company’s approval
for their transfer is not required.
(a) Non-convertible debentures (b) Secured debentures
(c) Bearer debentures (d) Zero coupon rate debentures
11. What will be the correct sequence to show share capital? (1)
(i) Subscribed and fully paid up capital
(ii) Authorised 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)

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 Accountancy Mock Test (Class XII)

12. X, Y and Z are partners sharing profits and losses in the ratio of 4 : 2 : 3. Z retires and he
surrendered 1/9th of his share in favour of X and the remaining in favour of Y. The new
profit sharing ratio of X and Y is: (1)
(a) 14 : 13 (b) 8:9 (c) 7:8 (d) 13 : 14
13. Part of share capital which can only be called, only under special circumstances, is known
as: (1)
(a) Capital reserve (b) Reserve capital
(c) Calls in advance (d) Share forfeiture
14. On retirement of a partner, debtors of Rs. 40,000 were shown in Balance Sheet along with
provision for doubtful debt of Rs. 3,000 It was found that during retirement one debtor for
Rs. 5,000 became insolvent and nothing could be recovered from him. 5% of the balance
of debtors are doubtful. Loss on revaluation account will be: (1)
(a) Rs. 7,350 (b) Rs. 3,750 (c) Rs. 3,000 (d) Rs. 1,750
15. Contingent liability, when paid on dissolution of a firm is debited to: (1)
(a) Partner’s capital account (b) Realisation account
(c) Partner’s loan account (d) Balance sheet
16. A and B are partners in the ratio of 3 : 2. Their fixed capitals were Rs. 3,00,000 and Rs.
4,00,000 respectively. After the close of accounts for the year it was observed that the
interest on capital which was agreed to be provided at 5% p.a erroneously provided at 10%
p.a. By what amount will A’s account be affected if partners decide to pass an adjustment
entry for the same? (1)
(a) A’s Current a/c will be debited by Rs. 15,000
(b) A’s Current a/c will be credited by Rs. 6,000
(c) A’s Current a/c will be credited by Rs. 35,000
(d) A’s Current a/c will be debited by Rs. 20,000
17. X, Y and Z are partners in a firm. Total capital employed is Rs. 5,40,000 contributed by
them in their profit sharing ratio. Y retires from the firm. On the day of retirement the firm
had a balance of Rs. 90,000 in the General Reserve account. Y took one of the unrecorded
assets of the firm valued at Rs. 54,000 in part payment and balance amount was paid in
cash. Pass necessary entries on Y’s retirement. (3)
18. S, T and U were equal partners in a firm. They decided to change their profit sharing ratio
to 2 : 1 : 1. On the date of change in the ratio, General Reserve appearing in the books is
Rs. 1,20,000 and Profit and Loss (Dr.) is Rs. 2,00,000.
It was agreed among the partners to continue with General Reserve and Profit and Loss
account. Pass the necessary adjustment entry. (3)

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Or
P, Q and R were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The
partnership deed provides for charging interest on drawings @l0% p.a The drawings of P,
Q and R during the year ending 31st March, 2020 amounted to Rs. 20,000, Rs. 30,000 and
Rs. 50,000, respectively. After the final accounts have been prepared, it was discovered
that interest on drawings had not been charged. Pass the necessary adjustment entry to
rectify the omission of interest on drawings. Also show your working notes clearly.
19. PVX Entertainment Ltd. acquired assets of INOXE Entertainment Ltd. for Rs. 65,00,000
and liabilities of Rs. 21,00,000 for a purchase consideration of Rs. 60,00,000 to be payable
as follows :
Rs. 9,00,000 by a bank draft, Rs. 7,00,000 by accepting a draft for 2 months, and for the
balance by issuing 7% Debentures of Rs. 100 each at a premium of 10% to be redeemable
after 4 years at Rs. 105.
Pass necessary journal entries for the above information in the books of PVX Entertainment
Ltd. (3)
Or
Uberu Tours Ltd. acquired business of Olaxe Tours & Excursions Ltd. The assets of Rs.
90,00,000 were acquired for Rs. 54,00,000 and liabilities of Rs. 18,00,000 were acquired
for Rs. 21,00,000. Uberu Tours Ltd paid as follows:
Cheque of Rs. 4,00,000 was issued in favour of Olaxe Tours
A bill of exchange was accepted for Rs. 2,00,000 payable after a month
And for the balance 6% Debentures were issued at a discount of 10%, to be redeemable at
a premium of 10%
Pass necessary journal entries for acquisition of business, from the information provided.
20. The Balance Sheet of A and B is as follows for the year ended 31st March, 2022 : (3)
Liabilities Amount Assets Amount
Capital A/c Land and Building 3,00,000
A 2,00,000 Goodwill 60,000
B 2,00,000 4,00,000 Investments 1,00,000
Reserves 1,80,000 Stock 1,00,000
Sundry Creditors 1,80,000 Sundry debtors 1,40,000
Outstanding expenses 20,000 Cash at Bank 60,000
Advertisement suspense 20,000
7,80,000 7,80,000
On 1st April, 2022, they admit C as a partner with 20% share. Normal rate of return in the
business is 30%.
The profits of the firm for the last 3 years were:
2022 : Rs. 2,50,000 (including gain of Rs. 25,000 from sale of fixed assets)
2021: Rs. l,70,000 (after debiting salaries to managers)
2020: Rs. 3,55,000

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 Accountancy Mock Test (Class XII)

Calculate goodwill of the firm, if it is valued at 2 years purchases of the last 3 years average
super profits.
21. Marvel Studios Ltd. a public company registered with capital of Rs. 80,00,000 divided into
5,00,000 equity shares of Rs. 10 each and 30,000, 7% Preference Shares of Rs. 100 each.
The company issued 4,00,000 equity shares at 40% premium. All the calls were made and
received except final call of Rs. 3 per share on 2,000 shares held by Mr. Sijo Francis. 1,500
shares of Mr. Sijo were forfeited. (4)
You are required to prepare the Balance Sheet of the company as per Schedule III of
Companies Act 2013, showing Share Capital balance and also prepare ‘Notes to Accounts’.
22. Swara, Vaani and Sangeeta were partners in a firm. They commenced their partnership
business three year back only. They contributed capitals into the firm as well as loan to the
firm. Today as on 31st March, 2022 their serious conflicts had arisen due to difference of
option. The firm had appointed Mr. Samarth, who is a legal advisor and financial consultant
of the firm. Mr. Samarth was asked to commence dissolution of partnership firm. Mr.
Samarth had transferred various assets and external liabilities to Realisation account. You
are an intern in Mr. Samarth’s firm ad he delegated this task to you to settle books. On the
date, you had observed the following transaction : (4)
(a) Vaani’s loan to the firm of Rs. 1,00,000 was Settled by paying Rs. 95.000
(b) Sangeets’s loan of Rs. 75,000 was settled by giving an unrecorded asset of Rs. 80,000
(c) Firm had given a loan of Rs. 20,000 to Swara, which now will be recovered
(d) Realisation expenses of Rs. 35,000 were paid by Vaani.
You are required to pass necessary journal entries for the above mentioned transactions.
23. Venus Rajhans Ltd. has an authorized share capital of Rs. 40,00,000 divided into shares of
Rs. 100 each. It offered to public for subscription 20,000 shares payable Rs. 20 on
application, Rs. 30 on allotment and the balance in two calls of Rs. 25 each. Applications
were received for 24,000 shares. Applications for 20000 shares were accepted in full and
the shares were allotted. Balance application money were rejected and the application
money was refunded.
Amount due were received with the exception of the final call on 600 shares which were
forfeited after legal formalities were fulfilled. 400 shares of the forfeited shares were
reissues at Rs. 90 per share as fully paid up. Prepare Cash Book and Share forfeiture
account. (6)
Or
Pass journal entries for forfeiture and reissue of shares in the following cases:
(a) X Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called up on which the shareholders had
paid application and allotment money of Rs. 5 per share. Out of these, 15 shares were
reissued to Naresh, at maximum discount.
(b) Y Ltd. forfeited 90 shares of Rs. 10 each, Rs. 8 called up issued at a premium of Rs. 2
per share to ‘R’ for non-payment of allotment money of Rs. 5 per share (including
premium). Out of these, 80 shares were reissued to Sanjay as Rs. 8 called up for Rs. 10
per s are.

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 Accountancy Mock Test (Class XII)

24. Pranav, Karan and Rishabh were partners in a firm sharing profits and losses in the ratio of
2 : 2 : 1. On 31st March, 2017 the balance in capital accounts of the partners were as follows:
Pranav Rs. 3,60,000, Karan Rs. 5,10,000 and Rishabh Rs. 4,00,000.
Karan died on 31st October, 2017 and his capital after all the necessary adjustments stood
at Rs. 6,40,000. It was agreed between Karan’s Executor’s and the firm that the executors
will be paid Rs. l,90,000 immediately and the balance shall be paid in three equal yearly
instalments together with interest @ 12% per annum.
Prepare Karan’s Executor’s Loan account till it is finally settled. (6)
25. Jatin and Lalit are partners sharing profits and losses in the ratio of 3 : 2. Their Balance
Sheet as on March 31st 2022 is as follows:
Liabilities Amount Assets Amount
Outstanding expenses 20,000 Cash 8,000
Bills Payable 76,000 Debtors 1,20,000
Creditors 70,000 Less: Prov for DD (20,000) 1,00,000
Workmen Compensation Reserve 70,000 Stock 80,000
Investment Fluctuation Reserve 20,000 Investments 1,00,000
General Reserve 40,000 Furniture 60,000
Capital A/c Machinery 3,08,000
Jatin 2,00,000
Lalit 1,60,000 3,60,000
6,56,000 6,56,000
On 1st April, 2022 they admitted Kishoro as a partner for 1/l0 share in profits which he
acquired equally from Jatin and Lalit on the following terms : (6)
(i) Kishore to bring Rs. 50,000 as capital and it was decided that the capital of all
partners shall be in proportion to their sharing ratio on the basis of Kishore’s capital.
Any deficiency of excess of capital will be adjusted through opening current
accounts.
(ii) The goodwill of the firm is valued at Rs. 60,000 and Kishore will contribute his
share of goodwill in cash.
(iii) Provision for doubtful debtors was found to be in excess by Rs. 4,000.
(iv) Outstanding expenses will be reduced to Rs. 6,000.
(v) Depreciate stock by 5%.
(vi) Market value of investments was Rs. 70,000
Prepare Revaluation account and Partner’s capital account of the newly constituted firm.
Or
X, Y and Z are partners sharing sharing profits and losses in the ratio of 3 : 2 : 1. Their
Balance Sheet as on March 31st 2022 is as follows :

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 Accountancy Mock Test (Class XII)

Liabilities Amount Assets Amount

Creditors 36,000 Cash at Bank 44,000
Bills Payable 90,000 Debtors 70,000
General Reserve 18,000 Less: Prov. for DD (10,000) 60,000
Investment Fluctuation 4,000 Stock 80,000
fund Investments 44,000
Capital A/c Furniture 48,000
X 1,40,000 Machinery 2,48,000
Y 1,60,000 4,00,000 Goodwill 24,000
Z 1,00,000
5,48,000 5,48,000
On the above date Y retired. It is agreed that:
(i) Goodwill of the firm will be valued at Rs. 90,000
(ii) Value of Machinery and Furniture to be depreciated by 5%
(iii) Provision for doubtful debts to be maintained at 20% on sundry debtors
(iv) Out of total insurance paid, premium amounting to the extent of Rs. 1,000 to be
treated as prepaid insurance. This was earlier debited to the Profit and Loss Account.
(v) The total capital of the new firm is decided to be Rs. 2,40,000. Necessary
adjustments to be made in cash.
(vi) Y will be paid 20% of the total amount due to him in cash and the balance will be
transferred to his Loan Account.
Prepare Revaluation A/c and Partner's Capital A/c of the reconstituted firm.
26. On 1st April, 2021, Kamalra Cosmetics Ltd. issued 40,000. 8% Debentures of Rs. 50 each
at a discount of 6% redeemable at par after 4 years. The issue was fully subscribed.
According to the term of issue, interest on the debentures is payable yearly on 31st March.
The company has a balance of Rs. 80,000 in securities premium reserve account. (6)
On the basis of the following information, answer the following questions.
(i) What entry is passed for interest due on Debentures for the year ending 31st March,
2022?
(a) Dr. Debentures A/c; Cr. Debenture holder’s A/c Rs. 1,60,000
(b) Dr. Debenture holder’s A/c; Cr. Debenture interest A/c Rs. 1,60,000
(c) Dr. Debenture interest A/c; Cr. Debenture holder’s A/c Rs. 1,60,000
(d) Dr. Debenture interest A/c; Cr. Debenture A/c A/c Rs. 1,60,000
(ii) The entry passed for payment of interest on Debentures is:
(a) Dr. Debentureholder’s A/c; Cr. Debenture interest a/c its Rs. 1,60,000
(b) Dr. Debentureholder’s A/c; Cr. Bunk A/c Rs. 1,60,000
(c) Dr. Debentureholder’s A/c; Cr. Debenture A/c Rs. 1,60,000
(d) Dr. Debenture A/c; Cr Bank A/c Rs. 1,60,000

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 Accountancy Mock Test (Class XII)

(iii) What entry is passed for transferring debenture interest at the end of the year?
(a) Dr. Profit and Loss Appropriation A/c; Cr. Debenture interest A/c Rs. 1,60,000
(b) Dr. Securities Premium A/c; Cr. Debenture interest A/c Rs. l,60,000
(c) Dr. Statement of Profit and Loss A/c; Cr. Debenture interest A/c Rs. 1,60,000
(d) Dr. Debenture interest A/c; Cr. Statement of Profit and Loss A/c Rs. 1,60,000
(iv) While preparing Discount on issue of Debentures A/c __________ amount will be
debited,
(a) Rs. 80,000 (b) Rs. 1,20,000
(c) Rs. 40,000 (d) Rs. 2,40,000
(v) To write off discount on issue of debentures through securities Premium A/c,
following entry is passed.
(a) Dr. Discount in issue of Debentures A/c, Cr. Securities Premium Reserve A/c
(b) Dr. Discount on issue of Debentures A/c, Cr. Statement of Profit and Loss A/c
(c) Dr. Statement of Profit and Loss; Cr. Discount on issue of Debentures A/c
(d) Dr. Securities Premium A/c; Cr. Discount on issue of Debentures A/c
(vi) The remaining amount of Discount on issue of Debentures (Rs. 40,000) will be
written off through ____________.
(a) Capital Reserve (b) Profit on sale of fixed assets
(c) Debenture Redemption Reserve A/c (d) Statement of Profit and Loss A/c

PART-B
(Analysis of Financial Statements)
27. Sale of Scrap’- will be showing under _________ head of statement of Profit and Loss : (1)
(a) Other income (b) Revenue from Operations
(c) Other expenses (d) Depreciation and Amortization
28. Sale of marketable securities at cost price, will result in : (1)
(a) Inflow of cash and cash equivalent (b) Outflow of cash and cash equivalent
(c) No flow of cash and cash equivalent (d) None of the above
29. A company issued 50,000, 10% Debentures of Rs. 100 each at 92%. These debentures were
redeemable after 6 years at 110%. It also paid underwriting commission for Rs. 60,000.
Interest on these debentures is not paid yet. (1)
How much will be the cash flow in financing activity?
(a) Rs. 45,60,000 inflow (b) Rs. 45,60,000 outflow
(c) Rs. 45,40,000 inflow (d) Rs. 45,40,000 outflow

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 Accountancy Mock Test (Class XII)

30. Match the following activities of a manufacturing concern as under cash flow statement:(1)
(i) Interest paid (1) Operating
(ii) Interest received (2) Financing
(iii) Purchase of raw material (3) investing
(a) 3, 2, 1 (b) 1, 2, 3 (c) 3, 1, 2 (d) 2, 3, 1
31. Classify the following items under major head and sub head in the balance sheet of the
company as per Schedule III of the Companies Act 2013. (3)
(i) Calls in advance
(ii) Unclaimed dividend
(iii) Provision for warranty claims
(iv) Security deposit with electricity companies
(v) Share forfeiture
(vi) Provision for tax
32. From the following information, prepare a Comparative Statement of Profit and Loss :
Particulars 31st March, 2023 31st March, 2022
Revenue from Operations `24,00,000 `18,00,000
Other Incomes (% of Revenue from operations) 15% 25%
Expenses (% of Revenue from operations) 60% 50%
Tax Rate 40% 40%

33. The proprietary ratio of a limited company is 0.80 : 1

State with reasons whether the following transactions will increase, decrease or not change
the given ratio?
(i) Obtained a loan from bank Rs. 2,00,000 payable after five years
(ii) Purchased machinery for cash
(iii) Redeemed 8% Redeemable preference shares of Rs. l,00,000
(iv) Issued equity shares to the vendors for purchase of machinery of Rs. 4,00,000 (4)
Or
From the given information calculate the following :
(i) Cost of revenue from operations (ii) Opening and closing inventory
(iii) Quick Assets (iv) Current Assets
Information:
Inventory turnover ratio 6 times, inventory at the end is Rs. 6,000 more than the inventory
in the beginning. Revenue from operations (all credit) Rs. 2,40,000, gross profit is 25% on
cost, current liabilities Rs. 80,000, quick ratio Rs. 0.80 : 1.

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 Accountancy Mock Test (Class XII)

34. From the following Balance Sheets of Varun Beverages Ltd. as at 31st March, 2021 and
31st March, 2022, prepare Cash Flow Statement.
Note 31st March, 31st March,
Particulars
No. 2022 2021
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds :
(a) Share capital 5,50,000 4,20,000
(b) Reserves and surplus 1 75,000 60,000
2. Non-Current Liabilities
Long term borrowings 2 3,20,000 4,00,000
3. Current Liabilities
(a) Short term Borrowings 3 50,000 20,000
(b) Trade Payables 80,000 1,05,000
(c) Short term provisions 4 25,000 18,000
Total 11,00,000 10,23,000
II. ASSETS
1. Non-current Assets
(a) Property, Plant and Equipment and
Intangible Assets (Fixed Assets) 5 3,70,000 2,81,000
(b) Non-current Investments 1,50,000 1,90,000
2. Current Assets
(a) Inventories 80,000 60,000
(b) Trade receivables 3,20,000 4,20,000
(c) Cash and cash equivalents 1,80,000 72,000
Total 11,00,000 10,23,000
Note to Accounts :
Particulars 31st March, 2022 31st March, 2021
1. Reserves and surplus
Surplus, ie, Bal in statement of profit and loss 75,000 60,000
2. Long term borrowings
Bank loan (10%) 3,20,000 4,00,000
3. Short term borrowings
Bank overdraft 50,000 20,000
4. Short term provisions
Provision for tax 25,000 18,000
5. Property, Plant and Equip-fixed Assets
Building 1,50,000 1,80,000
Machinery 2,20,000 1,01,000

Additional information :
1. During the year tax paid was Rs. 24,000
2. Proposed dividend of current year and previous year were Rs. 12,000 and Rs. 18,000
respectively
3. Bank loan was paid on 1st October, 2021. (6)

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