TLS/XII/Accountancy/Oct_P.

T_3/2021-22

THE LEXICON SCHOOLS

(Wagholi ● Hadapsar ● Kalyani Nagar)
Periodic Test-3 (2021-2022)
ACCOUNTANCY (SUBJECT CODE 055)
Test Booklet Code: M Test Booklet Number: 1234055
Time 90 Max Marks 40
General Instructions:
Read the following instructions very carefully and strictly follow them:

1. This question paper comprises two PARTS – I and II. Thereare 55 questions in
the question paper.
2. Part – I and II both are compulsory for all candidates.3. There is an internal
choice provided in each Sections.
I. Part-I, contains three Sections -A, B and C. Section Ahas questions from 1 to 18
and Section Bhas questions from 19 to 36, you have to attempt any 15 questions
each in both thesections.
II. Part I, Section C has questions from 37 to 41. You have to attempt any four
questions.III. Part II, contains two Sections – A and B. Section A hasquestions from
42 to 48, you have to attempt any five questionsand Section B has questions from
49 to 55, you have toattempt any six questions.
4. All questions carry equal marks(0.88 marks each). There is no negative
marking.
5. Specific Instructions related to each Part and subdivisions (Section)is mentioned
clearly before the questions. Candidates should readthem thoroughly and attempt
accordingly.

Part – I
Section – A
Instructions:
 From question number 1 to 18, attempt any 15 questions.

1. X,Y and Z are partners sharing profitsin the ratio 3:2:1.They admit M as a new
partner. Following information is available on the Admission of M:

Creditors 84,000 Machinery 66,000

Stock 30,000
Machinery was overvalued by 10% and creditors were found only
Rs.81000.Stock was also overvalued.Loss on Revaluation Debited to Z’s Capital
Account Rs.1500
Stock was overvalued by _____________
(a) 10% (b) 15 %
(c)20%(d) 25%

2. VinodLtd.has received a lump sum amount of Rs.3,30,000 on Application and

allotted 20,000 Equity Shares of Rs.10 each at a premium of 10%
How much amount is to be refunded to the applicants?
(a) Nil (b) 1,30,000 (c)1,00,000 (d) 1,10,000
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3. ABC Ltd.invited Application for 20,000 Equity Shares of Rs.10 each at a

premium of 20%.Application were received 2.5 Times.Out of which 40%
Applications were rejected, full allotment was made to 8000 Applicants and
pro rata allotment was made to the remaining applicants.One Shareholder
Yuvraj holding 300 shares on pro rata basis.
Yuvraj has applied for _____________Shares
(a) 300 (b)500
(c)550 (d)450

4. PQR limited offered 50,000 equity shares of Rs10 each, of these 48,000 shares
where subscribed.The amount was payable as Rs.3 on application,Rs. 4 on
allotment along with premium of Rs.2 and balance on 1st and final call .
Yashika one shareholder did not pay allotment on 2,000 shares and her shares
were forfeited immediately after the allotment
Navya another shareholder holding 1500 shares did not pay the first and final
call .
How much amount is received on First and Final call by PQRLtd?
(a) 1,33,500 (b) 1,39,500
(c ) 1,45,500 (d) 2,22,500

5. What will be the correct sequence of events ?

(i) Issued capital (ii) Nominal capital
(iii)Subscribed but not fully paid up (iv) Subscribed and fully paid up
(a) (i) (iv) (iii) (ii)
(b) (ii) (i) (iii) Iiv)
(c ) (ii) (i) (iv) (iii)
(d) (ii) (iii) (iv) (i)

6. Akash and Prashantare partners at the time of reconstitution of partnership

firm, following situation was found :

Balance sheet
Liabilities Amount Assets Amount

Debtors 18,000
Less:Provision for doubtful debts 2,000 16,000
Debtors Rs.1,500 will be written off as bad debts and a provision of 5% will be
created for bad and doubtful debts .What amount of Debtors will be shown in the
New Balance sheet of the firm ?(a) 16,600 (b) 15,675 (c )16,700 (d) 13,775

7. Which of the following is true regarding the interest on drawings of a partner

when the firm maintains Fluctuating capital accounts ?(a) Profit and Loss
Appropriation A/c Cr and Partners Current A/cDr(b) Profit and Loss Appropriation
A/c Cr and Partners Capital A/c Cr(c ) Profit and Loss Appropriation A/c Cr and
Partners Current A/c Cr(d) Profit and Loss Appropriation A/c Cr and Partners
Capital A/cDr
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8. At the time of reconstitution of a Partnership firm, a partner is ready to meet

an unrecorded liability will lead to :(a) Revaluation Gain (b) Revaluation loss (c )
No gain or loss on Revaluation (d) It will Decrease the Balance of Capital Account
of that partner

9. A, B, C and D are partners sharing profits as : A 40%; B 30%; C 10% and D 20%.As
Per the new partnership agreement C is to get a minimum amount of Rs.57,500
p.a. Deficiency on this account will be borne by A&B personally in the ratio of 3:2.
The net loss for the year ending 31st March 2021 was rupees 25,000 .
The amount of deficiency to be borne by B :(a) 36,000 (b) 23,000

(c )24,000 (d) 25,000

10. X, Y and Z are partners sharing profits in the ratio of 3:2:1. they admit V as a
new partner and following situation is found on the time of admission of V:

Balance sheet(Extract)
Liabilities Amount Assets Amount
Debtors 66,000
Bill Receivables 43,000
A Debtorswhose due of Rs.10,000 were written off last year as bad debts, paid 25%
amount in full settlement of his debt . A bill receivable of rupees 15,000
discounted with bank was dishonored, which is to be recorded in the books of
account.Debtors to be shown in New Balance sheet _____

(a) 81,000 (b) 73,500

(c )66,000 (d) 68,500

11. Manoj,Naresh and Gaurav are partners .Their fixed closing capitals on 31st
March 2021 were Rs.2,00,000 each. Additional capital of rupees 50,000 was
introduced on 1st October 2020 by Manoj.As per the partnership deed interest on
capital is provided @ 6% p.a. The profit made by the firm at the end of the year
31st March 2021 was rupees 60,000 . Partnership deed was silent on sharing profit
among the partners . Profit of Manoj will be _________
(a) 20,000 (b) 16,000

(c) 8000 (d) 8500

12. Naresh,Divij and Kanavare partners sharing profits in the ratio of 3:2:1. They
decided to change their profit sharing ratio from 1st April 2021 as 5:3:2. On that
date, they have Workmen Compensation Reserve Rs 60,000 and General Reserve

Rs.45,000. They have decided not to distribute the General Reserve .

Choose the correct statement from the following :

(a) Divij’s capital Account is to be credited with 20,000 only

(b)Naresh’s capital Account is to be credited by 30,000 and Debit by 1500

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(c) Divij’s capital Account is to be credited with 20,000 and 1500

(d) Kanav’scapital Account is to be credited with 10,000 and 1500

13. Average profit of a firm during the last few years are 1,20,000 and the normal
rate of return in the similar business is 10% .If the goodwill of the firm is Rupees
1,12,500 at 3 years purchase off super profit, the capital employed of the firm was
___________

(a) 8,25,000 (b) 12,00,000

(c ) 3,75,000 (d) 5,55,000

14.Which of the following is mentioned in Companies Act 2013 :(a) Application

money should not be less than 25% of the issue price (b)Minimum subscription
should be at least 90% of the shares at the time of IPO (c ) Securities premium
reserve can be used to write off the under writers Commission (d) all of the above

15. Securities premium reserve…………………5,00,000

Preliminary expenses ………………………………..1,00,000
Share issue expenses…………………………………… 80,000
Old machinery to be written off …………………1,20,000
Bad debts ……………………………………………………..40,000
If Securities Premium Reserve is utilized as per the section 52 (2) off the
Companies Act 2013 , Balance of Securities Premium Reserve will be ______

(a) 5,00,000 (b) 4,00,000(c ) 1,60,000 (d) 3,20,000

16. Anish Ltd, purchased a running business of AXN Ltd, and paid rupees 30,000
buy a bank draft and balance by issuing equity shares of rupees 10 each at a
premium of 60%.Company has acquired Total assets of Rs 2,80,000 ; Creditors
Rs 20,000 and a balancing figure was credited as Capital Reserve Rs10,000.
Number of shares to be issued ______________(a) 13,750 (b) 22,000
(c) 25,000 (d) 15,625

17. Vanya and Manya are Partners . They admit Vinod as a new partner. Following
information has provided by the firm on the admission of new partner :

Partners Capital Account (Extract Only)

Particulars Vanya Manya Vinod Particulars Vanya Manya Vinod

By Bal. b/d 90,000 80,000 --

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By Cash a/c -- -- 75,000

By Revaluation A/c (profit) 2,400 2,400 --

By Premium for Goodwill a/c -- 3,000 --

Vanya made no gain /no sacrifice and Manya’s Sacrifice = 1/6

New Profit Sharing Ratio of the partners :(a) 1:1:1 (b) 2:1:1(c ) 2:2:1 (d)
3:2:1

18. Albert Peter and William are partners sharing profits in the ratio of 2:2:1. It is
provided that Williams share of profit would not be less than rupees 35,000 .
Deficiency if any will be borne by Albert 35% and remaining by Peter .profit for the
year ended 31st March 2021 was rupees 15,000 .
Deficiency borne by Peter :(a) 20,800 (b) 32,000
(c) 11,200 (d) No deficiency is to borne by any partner due to less profit

Part – I
Section – B

Instructions:
>From question number 19 to 36, attempt any 15 questions.

19. X&Y are partners sharing profits in the ratio of 7:3. They admit K as a new
partner for 1/6thshare.At the time of admission of K the following situation was
found :
Stock given in Balance Sheet Rs 55,000 , some part of the goods costing Rs 8,000
has been badly damaged and only 10% is realized .
Furniture was undervalued by 20% (Given book value of furniture is Rs 28,800)Y’s
share in Gain/Loss on Revaluation will be _______(a) Nil (b) 240 Loss
(c ) 432 Loss (d) 672 Loss

20. Yuvraj and Manish are partners sharing profits in the ratio of 5:3.Mayank is
admitted as a new partner for 2/10th share of profit half of which is gifted by Yuraj
and the remaining share is taken by Mayank from Yuraj and Manish
equally.Goodwill of the form was calculated Rs60,000 .
How much premium for goodwill is to be credited to Yuvraj’s Capital Account ?(a)
9,000 (b) 3000 (c )6000 (d) 7500

21. X&Y are partners, sharing profits in the ratio of 3:2. Z is admitted as a new
partner for 1/6thshare.Following situation was found at the time of admission of Z:

Balance Sheet (Extract)

Outstanding Expenses 15,000
Out of the outstanding expenses Rs15,000, 40% paid now .
Identify the correct entry, for the above transaction :(a) Outstanding Expenses A/c
Dr. 15,000

To Bank A/c 6,000

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To Revaluation A/c 9,000

(b) Outstanding Expenses A/c Dr. 6000

To Revaluation A/c 6000

(c) Revaluation A/c Dr. 6000

To Outstanding Expenses A/c6000

(d) Outstanding expenses A/c Dr. 6000

To Bank A/c 6000

22.Given below are two statements, one labeled as Assertion (A) and the other
labelled as reason ( R ).

Assertion (A):
Generally Balance of Partners Capital Account remains unchanged when capitals
are fixed but it may show or decrease in the Balance irrespective of fixed capital
Reason (R )
Fixed capital account balance will reduce when a partner withdraws for personal
use from his capital.
in the context of the above statements which one of the following is correct ?(a)
Assertion is correct but Reason is wrong (b) Both Assertion and Reason are correct
and Reason is the correct explanation of Assertion (c) Both Assertion and Reason
are correct but Reason is not the correct explanation of Assertion (d) Assertion is
wrong but reason is correct

23. X,Y and Z are partners sharing profits in the ratio of 3:2:1. They decided to
change their profit sharing ratio to 2:2:1. They also decided to record the effect of
the following Revaluations without affecting the book values of assets and
liabilities.

Book value Revised value

Machinery 4,00,000 5,00,000
Furniture 1,00,000 90,000
Sundry creditors 75,000 70,000
Outstanding Expenses 30,000 45,000
Choose the correct option when single adjustment entry is passed :
(a) Y’s Capital A/c Dr.5777 ; Z’s Capital A/c Dr.2333 and X’s Capital A/c Cr.8000
(b) Y’s Capital A/c Dr.5333 ; Z’s Capital A/c Dr.2667 and X’s Capital A/c Cr.8000(c
) X’s Capital A/c Dr.8000 ; Y’s Capital A/c Cr.5333 and Z’s Capital A/c Cr.2667 (d)
X’s Capital A/c Dr.8000 ; Y’s Capital A/c Cr.5777 and Z’s Capital A/c Cr.2333
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24. Abhishek(a partner) withdrew Rs 6000 at the end of every month for last six
months ending on 31st March 2021 .Interest was calculated on his drawings Rs 375.
Interest on drawings was charged at the rate of ____(a) 5% p.a(b) 6% p.a(c )7% p.a
(d) 8% p.a

25.Keshav and Arun are equal partners.As per the partnership deed:(i) Keshav is to
get commission of 10% of net profit before charging any commission (ii) Arun is to
get a commission of 10% on net profit after charging all commissions Keshav’s
commission was Rs 16,500
What was the Commission of Arun?
(a)16,500 (b) 14,850 (c)14,500
(d) 13,500

26. Given below are two statements, one labeled as Assertion (A) and the other
labeled as reason (R)

Assertion (A)
At the time of admission of a new partner, he brings premium for goodwill, which is
distributed among the sacrificing partners

Reason (R )
By bringing premium for goodwill, a new partner compensates all old partners

Choose the correct option :

(a) Both Assertion and Reason are correct and Reason is the correct explanation of
the Assertion (b) Both Assertion and Reason are correct but Reason is not correct
explanation of the Assertion

(c) Only Assertion is correct (d) Only Reason is correct

27.Anand Ltd forfeited 600 Equity Shares of Rs.10 each issued at a premium of Rs.5
per share, for non payment of allotment money of Rs.8 per share (including
premium of Rs.5 per share),the first call of Rs.2 per share and the final call of Rs.3
per share.Out of these, some shares were reissued at Rs.14 per share and Rs.800
transferred to the Capital Reserve.
Number of shares reissued _____(a) 600 (b) 400 (c )500 (d) 450

28. Which of the following statement is/are true?(i)Reserve Capital is also known
as Unsubscribed Capital (ii)A special resolution is required to create Capital
Reserve (iii)A special resolution is passed for the private placement of shares
(iv)Issued capital cannot be more than the nominal capital
Choose the correct option (a) (i) and (iii) are True(b) (i) and (ii) are True(c) (ii)
and (iii) are True(d) (iii) and (iv) are True

29. Ajay, Krish and Madhavstarted a business in partnership on 1st December 2020
by introducing capital of Rs.6,00,000; 4,20,000and Rs.3,00,000.On 1st February
2021 they decided that their capital should be rupees 4,50,000each .As per the
partnership deed interest on capital is to be provided at the rate of 5% p.a and a
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salary of rupees 2000 per month to Madhav. Partnership deed is silent on profit
sharing ratio.
Profit at the end of the year 31st March 2021 before providing the above was
rupees 12,100.Profit will be shared in the ratio of :(a) 1:1:1 (b) 35:29:57
(c ) 20:21:15 (d) 25:30:48

30. AaparLtd.issued 24,000 Equity Shares of Rs.10 each at a premium of 20% per
share.The amount was payable as follows:
On Application Rs.4 per share ; On Allotment Rs.3 along with premium of Rs.2 per
share;Balance on First and Final call .Kapil who was allotted 500 shares (he applied
for 950 shares) for non payment of Allotment before making the first call. Entry
forforfeiture is to be made as follows:

Equity share capital A/c Dr. A amount

Securities Premium Reserve A/c Dr. B amount

To Share Forfeiture A/c C amount

To Share Allotment A/c D amount

Find A, B, C and D amount:

(a) A 3,500 ; B 1,000 ; C 2,000 ; D 2,500 (b) A 3,500 ; B 700 ; C 3,500 ; D 700 (c) A
3,500 ; B 1,000 ; C 3,000 ; D 1,500 (d) A 3,500 ; B 700 ; C 3,000 ; D 1,200

31. Given below are two statements one labeled as Assertion (A) and the other
labeled as Reason (R ).

Assertion(A)
A portion of Uncalled Capital of a company to be called only in the event of winding up
of the company is known as Reserve capital
Reason (R)
Because capital reserves will be utilized only the happening of winding up of the
company

Choose the correct option

(a)Both Assertion and Reason are correct and Reason is the correct explanation of
the Assertion
(b)Both Assertion and Reason are correct but Reason is not correct explanation of
the Assertion
(c)Only Assertion is correct (d)Only Reason is correct

32. Ajay and Amit started a business in partnership on 1st September 2020 with a
profit sharing ratio of 3:2. Amit withdrew Rs.4,000 at the end of every month for
personal use.As per the Partnership Deed, interest on his drawings is to be charged
@8% p.a. but it was found at the end of the year that interest on drawings was
charged @ 5% p.a. by mistake. They decided to pass an adjustment entry for the
same.Effect of adjustment entry on partner’s capital account :(a)No effect on
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Ajay's Capital Account and Amit's capital Account was debited with Rs.126
(b) Ajay’s Capital A/c Dr.126 and Amit's Capital A/c Cr.126

(c) Ajay’s Capital A/c Dr. 210 and Amit's Capital A/c Cr.210

(d) Amit's Capital A/c Dr.126 and Ajay's Capital A/c Cr.126

33. Newfound Ltd. issued shares @10 each at a premium of 10% payable as: On
Application & Allotment Rs.3 along with premium; on First Call Rs.4 per share and
Balance on Second & Final Call. Excess, if any, is to be adjusted towards calls.
Mohan who applied for 6,000 shares and was allotted on 2/3rd shares, did not pay
the calls money and shares were forfeited. Out of the forfeited shares 90% were
reissued at Rs.8 per share fully paid up.
The amount transferred to Capital Reserve (a) 8,800 (b) 9,800
(c) 10,800 (d) 12,800

34. Krishan Ltd. took over the assets of Rs.15 Lakhs of Ankur Ltd and also debited a
balancing figure amount as Goodwill Rs.3,68,500.Krishan Ltd also acquired the
liabilities of AnkurLtd.of Rs.5,00,000.Some amount was paid by check to Ankur
Ltdand balance through the 10,744 Equity Shares of Rs 100 each at a premium of
25% How much amount was paid by check to Ankur Ltd ?

(a)24,500 (b)25,500
(c)26,500 (d)27,500

35. X , Y and Z our partners sharing profits in the ratio of 10:8:5. They admit M as
a new partner.It was decided that the Ratio between Z and M will be same as
existing between X and Y.
New Profit Sharing Ratio _____
(a) 5:4:3:2(b) 10:8:5:3(c) 10:8:5:4(d) 5:4:5:4

36. Star Ltd. issued 10,000 Equity Shares of Rs.10 each at a premium of 20%
payable as :
On Application Rs.3 per share; On Allotment Rs.4 (including premium);On First and
Final call Balance.Company continue with Calls-in-Arrears and calls-in-advance
Account.Gulluto whom 100 shares were allotted, failed to pay allotment and call
money . Share Capital amount to be shown in the Balance Sheet of the
Company (a)99,300(b)99,700 (c)100000(d)119100

Part – I
Section – C

Instructions:
>From question number 37 to 41, attempt any 4 questions.

Question no.’s 37 and 38 are based on the hypothetical situation given

below.Case Study
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Adaar Ltd was in need of funds to complete its new projects in the new segment of
communication Technology.For this purpose company needs rupees
70,00,000.Outof which 20% was arranged through a Term loan and Rs.8,00,000
through long term Debts and balance by issue of equity shares of Rs.100 each at a
premium of 20%. Applications were received 25% in excess out of
which 4000 applications were rejected and pro rata allotment was made to the
remaining applicants.

37. Amount received on Application __________(a) 40,00,000(b) 48,00,000(c)

50,00,000(d) 60,00,000

38. Amount refunded by the company _________

(a) 12,00,000(b) 4,80,000(c) 4,00,000(d) 10,00,000

Question no.’s 39, 40 and 41 are based on the hypothetical situation given
below.

X&Y are partners sharing profits in the ratio of 3:2. After closing the accounts for
the year 31st March 2021,following information is available

Particulars X Y
Partner’s Capital Account 7,00,000 6,00,000
Partner’s Current Account 80,000 50,000
Y had introduced Rs.1,00,000as additional capital on 1st October 2020.As per the
partnership deed partners were allotted interest on capital @10% p.a. Profit for
the year was Rs.50,000 which was divided by the partners without providing
interest on capital .39. Interest on Y’s capital should be :(a)22,000 (b)60,000
(c)55,000 (d)28,000

40. If the above error is rectified by passing a Single adjustment entry, The
Current Account of X will be :(a)Credit by Rs.2,000 (b)Debit
with Rs.2,000 (c) Credit by Rs.4,000(d)No effect on
Current Account

41.If the above error is rectified by passing a single adjustment entry,The Capital
Account of Y will be :(a)Credit by Rs.2,000 (b)Debit with Rs.2,000 (c)Credit by
Rs.4,000 (d)no effect

Part – II
Section – A
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Instructions:
 From question number 42 to 48, attempt any 5 questions.

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

Assertion (A)
Liquid or quick assets do not include inventories, it includes only those quick assets
which are in the form of cash and cash equivalents or can be converted into cash within
a very short period.

Reason (R )
Inventories are expenses paid in advance hence cannot be converted into cash

Choose the correct option

(a)Both Assertion and Reason are correct and Reason is the correct explanation of
Assertion
(b)Both Assertion and Reason are correct but Reason is not correct explanation of
Assertion (c)Only Assertion is correct (d)Only Reason is correct

43. Pick the odd one out from the following

(a)Horizontal Analysis
(b)Dynamic Analysis (c)Time Series Analysis (d)Cross Sectional Analysis

44. Current Ratio is :(a) Solvency Ratio (b)Liquidity Ratio(c) Activity

Ratio (d) Profitability Ratio

45.Ideal Current Ratio is :(a) 2:1 (b)1:1(c) 1:2

(d) 3:1

46.Comparative Balance Sheet and Comparative Income Statements are part of:(a)
Horizontal Analysis(b) Vertical Analysis(c) Ratio Analysis(d) All of the above

47.Match the following

1. Patents A. Tangible fixed asset

2. Computer and Laptops B. Long term borrowing

3. 10% Debentures issued C. Intangible assets

4. Debenture with maturity D. Other Current Liability

period in current financial year

(a) 1-C; 2-A; 3-D; 4-B (b) 1-C; 2-A; 3-B;4-D

(c) 1-A ; 2-C; 3-B; 4-D (d) 1-A;2-B; 3-D; 4-C

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48.Operating Profit Ratio belongs to :

(a) Solvency Ratio (b)Liquidity Ratio(c) Activity Ratio (d) Profitability Ratio

Part – II
Section – B

Instructions:
 From question number 49 to 55, attempt any 6 questions.

49.Total Assets = 1,00,000; Non Current Assets=60,000;

Current Liabilities = 20,000

Current Ratio will be :

(a) 3:1 (b) 5:1(c) 2:1 (d) 1:1

50.Which of the following ratio is not covered under Solvency Ratio

(a) Debt Equity Ratio (b)Liquid Ratio
(c) Interest Coverage Ratio (d) Proprietory Ratio

51.Which of the following statements are false ?

(i) Vertical analysis requires financial statements of two or more accounting
periods
(ii) Horizontal Analysis deals with different items of same period
(iii) Vertical Analysis is also known as Times Series Analysis
(iv) Horizontal Analysis is also known as Cross – sectional Analysis

Choose the correct answer from the following options

(a) Both (iii) and (iv) (b) Both (i) and (ii)
(b) (i) (ii) (iv) are false (d) All (i) (ii) (iii) (iv) are false

52.Which of the following is a operating income :

(a) Profit on sale of fixed asset (b)Interest received on Investment
(c) Commission received (d) Both (a) and (b)

53.
Assertion (A):
If a company has ideal Current Ratio and it further purchased goods on
credit, the Current Ratio will decrease
Reason (R):
The Ideal Current Ratio of the company is 2:1
Choose the correct option from the following :
(a) Assertion and Reason both are correct and Reason is the correct
explanation of assertion
(b) Assertion and Reason both are correct but Reason is not correct explanation
of assertion
(c) Only Assertion is correct
(d) Only Reason is correct
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54. Current Ratio of ABC Ltd is 1.5:1.Accountant wants to maintain it at

2:1.Following options are available
(i) Creditors can be paid
(ii) Sale of goods at a good profit
(iii) Purchase of goods for cash
Choose the correct option:
(a)Only (i) is correct (b)Only (ii) is correct
(c)Only (i) and (ii) is correct(d) Only (i) and (iii) is correct

55. A Company has an Operating Cycle of 20 months.It has Trade Receivables

amounting to Rs.4,00,000out of which 2,50,000 have a maturity period of 15
months.How would this information be presented in Balance Sheet?
(a) 4,00,000 as Non-Current Assets
(b) 1,50,000 as Non-Current Assets and 2,50,000 as Current Asset
(c) Only 1,50,000 will be shown in Balance Sheet as Non- Current Asset
(d) 4,00,000 as Current Asset