SAMPLE PAPER — 2 ‘Maximum Marks : 49 Time Allowed : 90 Minutes PART -I Section -A Instructions : > From question number I to 18, attempt any 15 questions. Q. 1. Interest on Partner’s Loan will be : (A) Credited to Partner's Capital A/c (B) Credited to Partner's Current A/c (C) Debited to Profit & Loss A/c (D) Debited to Profit & Loss Appropriation A/c - Q. 2. Interest on Drawings will be recorded : (A) On the Debit of Profit & Loss Appropriation Account (B) On the Credit of Partner's Current Accounts (C) On the Debit of Partner's Capital Accounts (D) On the Debit of Partner's Current Accounts Commission to Partner will be recorded : (A) On the Debit side of Profit & Loss Account (B) On the Credit side of Partner's Capital Account (C) On the Credit side of Partner’s Current Account (D) On the Debit side of Partner’s Current Account Q.4. Ifa share of the face value of 7100 was issued at a premium of 40 on which whole amount is called-up is forfeited and reissued at €125, Share Capital Account will be Credited by = (A) &100 (B) 125 (C) z140 (D) z115 Q.5. Zee Ltd. issued shares of €20 each at a premium of €10 per share. Amounts were payable as follows : On Application %5 (including premium 1) On Allotment %6 (including premium 2) On First Call %7 (including premium 23) On Second and Final Call Remaining amount. Aryan, 2 holder of 500 shares failed to pay allotment and first call and his shares were forfeited after the first call. On forfeiture, Calls in Arrears will be : (A) Credited with 712,500 (B) Credited with %6,500 (C) Credited with 4,000 (D) Credited with 8,000 Scanned with CamScannerSAMPLE PAPER Q-6. Divya and Isha are partners in a firm sharing profits and losses in the ratio of 2 : 3. Leela Was admitted as a new partner for 1/Sth share in the profits of the firm. Leela acquires her share from Divya and Isha in the ratio of | : 2. The new profit sharing ratio will be : (A) 4:8:3 (B) 8:4:3 (©) 7:5:3 (D) 5: 23 Q.7 If, at the time of admission, some profit and loss account balance appears in the books, it will be transferred to : (A) Profit & Loss Adjustment Account (B) All Partners’ Capital Accounts (C) Old Parmers’ Capital Accounts (D) Revaluation Account Q.8. Naveen is a partner in a firm, Interest on his drawings charged by the firm @ 9% p.a. amounts to 74,500 for the year ended 31st March 2020. How much amount he withdrew from the firm? (A) & 40,500 (B) %50,000 (C) 21,00,000 (D) %81,000 Q.9. Pick the odd one out : (A) Salary toa partner (B) Rent toa partner (C) Commission to a partner (D) Interest on partner’s capital Q.10. C Lid. forfeited 5,000 shares of €10 each fully called up, on which the holder has paid only the application & allotment money of &7 per share. Out of these, 2,000 shares were re-issued in such a way that %8,000 were transferred to capital reserve. Shares were reissued for ... (A) %4 per share *(B) 10 per share (C) %3 per share (D) & 7 per share Q. 11. X Ltd. forfeited 1,000 shares of £10 each for non-payment of final call of €4 each. After the reissue of these shares = 1,500 were transferred to Capital Reserve. Share were reissued for : (A) %6,000 (B) 24,500 (C) %5,500 (D) 71,500 At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve 60,000. Claim for workmen compensation %65,000. (A) %65,000 Debited to the Partner’s capital Accounts. (B) %60,000 Debited to Revaluation Account. (C) & 5,000 Debited to Revaluation Account. (D) & 5,000 Credited to Revaluation Account. }. A, Band C are partners sharing profits in the ratio of 4 : 3 : 2. According to the partnership agreement, C is to get a minimum amount of %2,00,000 as his share of profits every year and any deficiency on this account is to be met by 4 and B in 3 : 1. The net profit for the Scanned with CamScannerQ.18. . As per Section 52 of Companies Act 2013, Securities Pret . At the time of reconstitution of a partnership firm, recordin: SAMPLE PAPER ~ 720,00 the amount of deficiency year ended 31st March 2021 amounted to 27,20,000. Calculate to be borne by B? (A) 230,000 (B) ea 710,01 " (©) %20,000 (D) sium Reserve cannot be utilised for : (A) Issue of fully paid bonus shares. (B) Writing off capital losses. (C) Writing off discount on issue of securities. (D) Writing off preliminary expenses. a a yee g of an unrecorded liability will lead to: (A) Gain to the existing partners (B) Loss to the existing partners (C) Neither gain nor loss to the existing partners (D) None of the above . In which of the following situation Companies Act 2013 allows for issue of shares at discount? (A) Issued to vendors. (B) Issued as sweat equity (C) Issued to public (D) None of the above. . A and B are partners sharing profits in the ratio of 2 : 1. C was admitted for 1/4 share of profits of which 2/12 was gifted by 4. The remaining was contributed by B. Goodwill of the firm is valued at %60,000. How much amount for goodwill will be Credited to B’s Capital Account? (A) %10,000 (B) 60,000 (C) & 5,000 (D) 215,000 X Ltd. forfeited 1,000 shares on which %6 per share was received. Out of these, 700 shares were reissued for 8 each fully paid-up. Balance in Forfeited Shares Account after the reissue of shares will be : (A) %6,000 (B) %4,200 (©) €1,800 (D) %2,800 PART - Section -B Instructions : > From question number 19 to 36, attempt any 15 questions, Q.19. X, Yand Z are partners sharing profits in the ratio of 2: 1: 1. Their capi id tals as 2020 were %1,00,000, %60,000 and %40,000 respectively. At the ent ofthe ye i Apr year ending Scanned with CamScannerSAMPLE PAPER — 2 Q2. - S, T, Wand X are partners sharin 3st March, 2021 it was found out that interest on capitals @ 6% p.a., salaries to.X, £1,000 per month and Z 2,000 per month were not adjusted from the profits, In the adjusting entry to be made in the next year: (A) Dr. X %6,000; Dr. ¥ 78,400 and Cr. Z 714,400 (B) Cr. X 6,000; Cr. ¥ 88,400 and Dr. Z 714,400 (C) Dr. X% 500; Dr. ¥& 150 and CrZ% 650 (D) Cr.X®% 500;Cr.¥% 150andDr.Z% 650 A and B were partners in a firm sharing profits in the ratio of 2:1. The partnership deed Provided interest on drawings @ 12% p.a. During the year : (A's drawings were 5,000 per month in the beginning of every month. (ii) B’s drawings were €10,000 per quarter. Net profit for the year was distributed without charging interest on drawings, In the adjustment entry : (A) Cr. A 2,100 and Dr. B 2,100 (B) Cr. 4 21,900 and Dr. B 1,900 (C) Dr.A®% 300and Cr. 8 % 300 (D) Cr.d4 % 300and Dr. B% 300 profits in the ratio of 4 :3:2: 1. Vis given a guarantee that his share of profits in any given year would be €50,000. Deficiency if any, would be bome by S and T equally. The profits for the year ending 31st March, 2021 amounted to %3,50,000. Share of profit will be : (A) 5 &1,35,000; 7 %1,00,000; 1” %65,000; ” %50,000 (B) S$ @1,40,000; 7 %1,05,000; 11” 70,000; X %50,000 (C) S$ %1,32,500; TX 97,500; ” $70,000; V %35,000 (D) S$%1,32,500; 7% 97,500; 1” ¥70,000; X €50,000 X and Y are partners in a firm. Their Capitals on April 1, 2020 were %1,20,000 and 780,000 respectively. On July 1, 2021 they decided that their Capitals should be equ The necessary adjustment in the Capitals were made by introducing or withdrawing Interest on Capital is allowed at 10% pa. Interest on Capital for the year ending March 31, 2021 will be : (A) X 10,500; ¥ 9,500 (B) X29,500; ¥ 10,500 (C) X %10,000; ¥ €10,000 (D) X%11,500; ¥ %8,500 Yuvraj Ltd. forfeited 1,000 shares of @10 each issued at 20% premium (28 Called up) on which application of %2 each and allotment of %5 each (including premium) has been received. Out of these, 700 shares were reissued for %6 per share (78 paid up). What is the amount transferred to Capital Reserve? (A) = 700 (B) 71,400 (C) 22,100 (D) %3,500 |. Gati Ltd, forfeited 1,200 shares of %100 each, issued at a premium of 30% to Dinesh on which he had paid application money of 250 per share and allotment mioney of 880 pot Scanned with CamScannerSPM Q. 26. Q.27. 5. Elite Ltd. invited applicatio ‘t call of @10 per share: Out of these, Amount transferred to Capital re (including premium), for non-payme! 500 shares were re-issued as fully paid for reserve will be : (By %79,000 (A) %45,000 (C) %35,000 (D) 230,000 nt of fir 90 per share: ns for issuing 2,00,000 shares of ©50 each at a premium of 715 The amount was payable as follows : per shi On Application 220 including premium %10) On Allotment 330 (including premium %5) On First and Final Call zs allotment was made to all the 100 shares and pro-rata r allotment and first and final forfeited. Applications were received for 3,00,01 applicants, All calls were made and were duly received excep call from Rashmi who applied for 600 shares. Her shares were Amount Credited to Share Forfeiture Account will be : (A) 212,000 (B) % 8,000 (C) & 6,000 (D) €10,000 X Ltd, issued a prospectus inviting applications for 10,000 shares of %50 each at a premium of €20 per share, payable as follows : On Application %10 (including 4 premium) On Allotment 20 (including %5 premium) On First Call 230 (including %6 premium) On Second & Final Call Balance Amount [A shareholder holding 1,000 shares failed to pay the first call and second money and his shares were forfeited after the final call. In the entry for forfeiture of shares, Share Capital Account will be debited with : (A) %29,000 (B) 250,000 (©) %70,000 (D) @11,000 Given below are two statements, one labelled as Assertion (A) and the other labelled as & final call Reason (R) : Assertion (A) ‘The liability of the members of a company is limited to the unpaid value of their shares. Reason (R) Ifthe face value of a share is £10 and a shareholder has already paid %6, his liability will not exceed %4. 2 y In the context of the above statements, which one of the following is correct? Codes : (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A). Scanned with CamScannerQ.29. Q.31. . Cand D were partne (B) Both (A) and (R) are true and (R) (C) Both (A) and (R) are f (D) (A)is false, but (R) correct explanation of (A). ec. s true, haring profits and losses in the ratio of 3 : 2. They decided that with effect from Ist January, 2021 they would share profits and losses in the ratio of 5 : 3. Goodwill is valued at %6,40,000. In adjustment entry : (A) Cr.Cby 16,000; Dr. Dby & 16,000 (B) Cr. Cy 21,85,000; Dr. D by €1,85,000 (C) Dr. Cy &1,85,000; Cr. D by €1,85,000 (D) Dr.Cby % 16,000; Cr. Dby ® 16,000 A, Band C were equal partners . They decided to change their profit sharing ratio to 5:4: 3. For this purpose goodwill of the firm was valued at %6,00,000. The journal entry for treatment of Goodwill on change in profit sharing ratio will be : Date Particulars LF] Dr. | Cr. Amount | Amount z z (A) | C’s Capital Ale Dr. 50,000 To A’s Capital Ale 50,000 (B) [4s Capital A/c Dr. 50,000 To C’s Capital A/c 50,000 (©) [Goodwill Ae Dr. 6,00,000 To 4’s Capital A/e 2,50,000 To B’s Capital A/c 2,00,000 To C’s Capital Ale 1,30,000 (D) | Goodwill A’e Dr. 6,00,000 To A’s Capital A/e 2,00,000 To B’s Capital Ale 2,00,000 To C’s Capital A/c 2.00,000 . Chitra and Diksha are partners sharing profits in the ratio of 4 : 3. Their Balance Sheet showed a balance of %3,50,000 in the General Reserve Account and a debit balance of %1,40,000 in Profit and Loss Account. They now decided to share the future profits equally. Instead of closing the General Reserve Account and Profit and Loss Account, it is decided to pass an adjustment entry for the same. In adjustment entry : (A) Cr. Chitra by €1,20,000 and Cr. Diksha by = 90,000 (B) Cr. Chitra by €1,05,000 and Cr. Diksha by %1,05,000 (C) Cr. Chitra by & 15,000 and Dr. Diksha by & 15,000 (D) Dr. Chitra by € 15,000 and Cr. Diksha by 15,000 4 and B are partners sharing profits and losses as 2: 1. C and D are admitted and profit sharing ratio becomes 3 :2:4 : 1. Goodwill is valued at 83,60,000. C and D bring required Scanned with CamScannerQ.34. Q.35. 32, r and Q are partners sharing profits in the ratio of goodwill in Cash, Credit will be given 10! ; . s 6,000 (A) 4 31,32,000; B t48,000 (By 4 2,644 000; B %96,00' 000 (C) 4.81.20,000; 8 60,000 (Dy A e108 000; B 272,00 9:7 Ris admitted as a partner with 1 1 = sth share in the profits, which he takes tin from P ¢ and 4 th from Q. Goodwill of the firm is valued at &1,80,000. R does not bring 7 share ot god in Cash. Journal entry for goodwill will be : TET eT Particulars [ smc | Arn a - 1-4 :— (A) ] R's Current Ave Dr. 1,80,000 Yo P's Capital A/e 80,000 To Q's Capital Ale 1,00,000 (B) | R's Current Ave Dr. 81,000 To P's Capital Ale 45,000 To Q's Capital Ale 36,000 (©) [R's Current Ave Dr. 81,000 To P's Capital Ale 36,000 To O's Capital Ale 45,000 (D) [R's Current Ale Dr. 1,80,000 To P's Capital A/c 1,00,000 To Q's Capital Ale 80,000 . P, Qand R are partners sharing profits and losses in the ratio of 5 : 3 : 2. Sis admitted as a new partner for zh share. P sacrifices 7h from his share in favour of S and remaining sacrifice was made by Q and R in the ratio of 2 : |. S brings his share of goodwill %60,000 in Cash. R’s share of goodwill will be : (A) 20,000 (B) %30,000 (C) %10,000 (D) % 6,000 XLtd, forfeited 500 shares of €10 each, 8 called up, on which Manu had paid application and allotment money of %3 per share, of these, 300 shares were reissued to Sonu as fully paid up for 9 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account? (A) 21,200 (B) 900 (©) &1,500 (D) %600 Given below are two statements, one labelled as Assertion (A) and the other labelled aS Reason (R) : Assertion (A) Partnership deed is a written agreement containing the terms agreed by the partners. Scanned with CamScannerReason (R) Partnership deed lays down the rights, duties and obligations of partners. In the context of the above two statements, which of the following is correct? Codes : (A) Both (A) and (R) are correct and (R) is the correct reason of (A). (B) Both (A) and (R) are correct but (R) is not the correct reason of (A). (C) Only (R) is correct. (D) Both (A) and (R) are wrong, Q. 36. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) : Assertion (A) Called-up Capital cannot exceed issued Capital. Reason (R) Paid up Capital cannot exceed Called-up Capital. In the context of the above two statements, which of the following is correct? Codes : (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (B) Both (A) and (R) are true and (R) is the correct explanation of (A). (C) Both (A) and (R) are false. (D) (A) is false, but (R) is true. PART -1 Section -C Instructions : > From question number 37 to 41, attempt any 4 questions, Q.37, VLtd. issued 1,00,000 shares for subscriptions to the public at a premium of @3 per share. Applications were received for 1,20,000 shares and allotment was made pro-rata to all applicants. All calls were made and were duly received except the 2nd and final of 84 per share on 1,000 shares held by Shiv. His shares were forfeited and afterwards re-issued at %8 per share as fully paid up. Subscribed and fully paid Capital will be : (A) 12,00,000 (B) % 9,96,000 (C) & 9,90,000 (D)_ %10,00,000 Scanned with CamScannerQ. 38. SAMPLE PAPER pelted “ston we and the other labelled as Given below are two statements, one labelled as ASS Reason (R) : Ascertion (A) Equity Shareholders are Creditors of the Company. Reason (R) Shares of a Company are movable assets. ving is correct? In the context of the above statements, which one of the following is Codes : (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (B) Both (A) and (R) are true and (R) is a correct explanation of (A)- (C) Both (A) and (R) are false, (D) (A) is false, but (R) is true. Case Based MCQs of 3 :2. They admitted C with A and B are partners sharing profits and losses in the ratio effect from Ist April, 2021. New profit sharing ratio is agreed at 4 : 3 : 3. An extract of their Balance Sheet as at 31st March, 2021 is as follows : 7 Liabilivies 7 | ‘Asses z Workmen Compensation Reserve 90,000 | Based on the above information you are required to answer the following questions If there is no other information in respect of Workmen Compensation Reserve : (A) Cr. A’s Capital A/c with 760,000 and B’s Capital A/c with 730,000 (B) Cr. A’s Capital A/c with £54,000 and B’s Capital A/e with 736,000 (C) Dr. A’s Capital A/c with $54,000 and B’s Capital A/c with 736,000 (D) Cr. A’s Capital A/c with %36,000 and B’s Capital A/c with 27,000 and C’s Capital Ale %27,000 Ifa claim for Workmen Compensation is estimated at 60,000 : (A) Cr. 4’s Capital A/c with 20,000 and B's Capital A/c with 710,000 (B) Dr. 4’s Capital A/c with €18,000 and B’s Capital A/c with 12,000 (©) Cr. A’s Capital A/c with €18,000 and B's Capital A/e with @12,000 (D) Cr. A’s Capital A/c with €12,000 and B’s Capital A/c with %9,000 and C's Capital Ale with £9,000 C's Capita Ifa claim for Workmen Compensation is estimated at €1,50,000 (A) Dr. C’s Capital with 760,000 (B) Dr. C’s Capital A/c with 718,000 (©) Dr. Workmen Compensation Reserve A/c with £90,000 and Revaluation A/c with 60,000 (D) Dr. Revaluation A’ with 760,000 Scanned with CamScannerSAMPLE PAPER — 2 PART -II Section -A Analysis of Financial Statements Instructions : > From question number 42 to 48, attempt any 5 questions. Q.42. Match the following : (D|Shareholder’s Funds + Non Curent] (a) Inventory Liabilities (ii) |Current Assets ~ Liquid Assets ()| Current Liabilities (iii) | Total Debts — Long term Debts (c)| Capital Employed Choose the Correct Option : AOO Wb Gé@ BO® M@ we OVO We He OVO@® WMO WHO Q.43. : (A) Current Ratio (B) Interest Coverage Ratio (C) Total Assets to Debt Ratio ¢ Q.44. Working Capital Ratio is : (A) Solvency Ratio (B) Liquidity Ratio (C) Liquid Ratio (D) Activity Ratio Q.45. Interest Coverage Ratio is : (A) Profit before Interest but after Tax Fixed Interest Charges (B) Profit after Interest and Tax Fixed Interest Charges ©) Profit before Interest and Tax Fixed Interest Charges (D) Profit before Interest, Tax and Preference Dividend Fixed Interest Charges and Preference Dividend 46. Match the following : (| Capital Reserve (a)| Issued Share Capital (if) |Debenture Redemption Reserve ()| Reserve and Surplus (iii)| Debit Balance of Statement of Profit] (c)| Long term borrowings & Loss ()| Bonds (d)| Subscribed Share Capital Scanned with CamScannerChoose the Correct Option + (ivy (d) a) a) Gia) (iti) @ (iv) (b) (B) () (4) (ii) (D) tine) (n(@) © Gb) Gi) (iii) (A) (ivy (0) aera GO) ition (A) and the other labelled as - one labelled a Asset Q.47. Given below are two statements, One label Reason (R) = Assertion (A) Balance Sheet of a Company shows period. Reason (R) on he following 1s correct? In the context of the above two statements, which of t Codes : (A) Both (A) and (R) are correct and (R) is the correct reason of (A). ason of (A). (B) Both (A) and (R) are correct but (R) is not the correct re (C) Only (R) is correct. (D) Both (A) and (R) are wrong. Q. 48. Given below are two statements, Reason (R) : Assertion (A) A ratio reflects qualitative aspects. Reason (R) A ratio reflects both quantitative and qualitative aspects. In the context of the above two statements, which of the following is correct? Codes : (A) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (B) Both (A) and (R) are true and (R) is the correct explanati , (©) Both (A) and (R) are false. Planation of (A). (D) (A)is false, but (R) is true, the financial position of the Company for a particular the one labelled as Assertion (A) and the other labelled as PART-II — Section -B Instructions : > From question number 49 to 55, attempt any 6 questic ‘estions, Q.49. Fixed Assets %3,00,000; Liquid Assets @1,80,000; Inventory €70,000 ,000; Current Liabilities Scanned with CamScannerrations %8,00,000; G.P. 25% of Cost. Working %50,000; Cost of Revenue trom Ope! Capital Turnover Ratio will be : (A) 2 times (C) 4 times (B) 4.8 times (D) 5 times | 40,000 Otfice Exp. } 49.00 Selling Exp. 50,000 Revenue from ( Sale 10,00,000 nue Sales nue from Operations (Sales) ees Revenue from Operations Retum (Sales Return) Cost of Revenue from Operations will be : (A) %8,10,000 (B) %6,30,000 (C) %7,20,000 (D) %7,10,000 Q5l Parnculars z Fixed Assets Total Assets Long term Borrowings Long term Provisions 9% Bonds Trade Payables 1,00,000 | 1,00,000 Total Assets to Debt Ratio will be : (A) 2.5:1 (B) 1.33:1 (C) 15:1 (D) 2.22:1 Q.52, Which of the following is nor shown as a Current Liability in the Balance Sheet of a company prepared as per Schedule III of the Companies Act, 2013? (A) Trade Payable (B) Short term Borrowings (C) Deferred Tax Liabilities (D) Short term Provisions Q.53. The correct formula for computing Earning per share is : Net Profit after Tax No. of Shares Net Profit afier Tax and Prefe Dividend ®) art anti (D) Net Profit after No. of Preference Shares (A) Scanned with CamScannerSP-42 Q. 54. Q. 55. SAMPLE PAPER ‘The Current Ratio of a company is 1.8 : | and its Quick Ratio is 1.6 : 1. From the following transactions, pick out the transaction which involves an increase in both the Current Ratio and Quick Ratio : (A) Goods worth %10,000 sold at a loss of 72,000. (B) Insurance premium of 3,000 paid in advance. (C) Plant and Machinery purchased for 9,000. (D) Bills Payable of %2,000 honoured on the due date. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) : Assertion (A) Reason (R) Ideal Current Ratio is 1 : 2 In the context of the above two statements, which of the following is correct? Codes : (A) Both (A) and (R) are correct and (R) is the correct reason of (A). (B) Both (A) and (R) are correct but (R) is not the correct reason of (A). (C) Only (A) is correct. (D) Both (A) and (R) are wrong. Scanned with CamScannerS-8 eo _ tio aper — 2 Solutions to Sample Pap — cou! Partnership and Company A 1. Ans. (C) Debited to Profit & Loss A/e en 2. ns, (D) On the Debit side of Partners CAPM TT 3 Ans, (C) On the Credit side of Partner's Cure 4. Ans. (A) 2100 5. Ans. (B) Credited with 6,500 . ume 6 3,000 ‘Amount not paid on allotment : 500% . ‘Amount not paid on first call : 500 7 3a 6. Ans. (D)5:7:3 7. Ans. (C) Old Partner's Capital Accounts. 8. Ans. (C) €1,00,000. Hint: 4,500 x92 x2 = €1,00,000 ave been charged for an average period of six months Note: Interest on %1,00,000 must hi 9, Ans. (B) Rent to a partner. Hint ; Items at Serial No. A, C and a Partner relate to P & L A/c. 10. Ans. (D) 87 per share. Hint: ‘Amount forfeited on 2,000 reissued shares = 2,000 x &7 Less : Transferred to Capital Reserve Loss on Reissue ‘ . 0 Since, loss on Reissue is SOP. = €3 per share, shares were re-issued for &7 per share. 11. Ans. (C) %5,500 Hint: z Forfeited amount on 1,000 shares = 6,000 Less : Amount transferred to Capital Reserve = 1,500 Loss on Reissue Hence, the shares were reissued for 210,000 - 24,500 = &5,500 12. Ans. (C) 5,000 Debited to Revaluation Ai ‘ 13. Ans. (D) %10,000. seount 14. Ans. (B) Writing off Capital losses, 15, Ans. (B) Loss to the existing partners, 16. Ans. (B) Issued as sweat equity. Drelate to P & L Appropriation A/c whereas item B ie, Rent to 3+ 12 17. Ans. (C) Sacrifice by 8 = ! 1.2 412 Scanned with CamScannerowt Hence, Goodwill Credited to Bsc ‘apit = 18, Ans. (C) 1,800 Pital A/e = 60,099 xbe 35,000 Balance in Forfeited Shares i" Account is j ved on tl : 1S in reg) . received on these 300 shares Will be the balance a a shares not yet reissued. A ~rount As such itis 300 x 86 = 81,899 forfeited shares account, 19, Ans. (A) Dr. X 6,000; Dr. Hint : ¥ 88,400 and Cr. 2 814,400 STATEMENT OF ADJUSTMENT Particulars v Xx Yy Z Total Interest on Capitals @ 6% . y ‘ : pl @ pa, 6,000 3,600 2,400 12,000 | salary to Partners 12,000 _ 24,000 36,000 | Total Amount Payable (Cr) a 18,000) 3, . | Division of firm’s loss of 248,000 in 2 : 200] ra000{ - eBaoo| (r.)| 24,000} 12,000} 12,000} 48,000 Net Effect (Dr) (Dr) (cr) 6,000 8.400} 14,400 = 20. 8 Ans. (D) Cr. A €300 and Dr. B 300. Hin Interest on 4°s Drawings = %60,000% 12 x $5 = 23,900 Interest on B's Drawings = €40,000x72 x-S = 2,400 Adjustment Table Particulars A B_ | Total z z (r) 3,900 6,300 (Cr) 4,200 6,300 300 = 21, Ans, (D) S &1,32,500; T 97,500; W 270,000; X 50,000 Hint : Distribution of Profit Ss T Ww | x | Particulars $ = ep 35, Stare of Prat: (,50000804:3:2:0) 1,40,000] 1,05,000/ 70,000 35,000 Since X is guaranteed €50,000 deficiency o' 50,000 — 35,000 = £15,000 will be met by a | Sand T equally i.e. 7.500 each I Scanned with CamScanner23. 24. . Ans, (A) X %10,500 and ¥ %9,500 Hint: Calculation of Interest on Capital : 3 . 103 X: On €1,20,000 for3 months = 1,20,000* 799 12 10 2 On €1,00,000 for 9 months = 1,00,000X 799 * 12 10 ¥: On %80,000 for3 months = 80,000 Tog 10 On €1,00,000 for 9 months = 1,00,000 x Fog * 77 Ans. (C) 2,100. Hint: Forfeited amount is €2 on application and %3 on allotment. Thus, forfeited amount on 700 shares Loss on Reissue : 700 x 2 = ‘Amount transferred to Capital Reserve Ans, (D) 30,000 Hint: Amount forfeited in respect of 500 reissued shares Amount received on application £500 x %50 Amount of Capital portion received on allotment; 500 x 220 Less : Loss on Reissue : 500 x 210 Scanned with CamScanner 25,000 10,000 35,000 5,000 30,00025, Ans. (B) €8.000 Hint: 00,000 : Shares allotted to Rashmi = 600 x 28 y = 400 Excess application money received = 600 — 400 = 200 Shares x €20 = %4,000 Allotment money due from Rashmi = 400 x 730 Less : Excess received on application ‘Allotment money not received Entry on Forfeiture : Date| Particulars Pe Dr | Cr. Amount | Amount z Ge] Share Capital A/c (400 x 50) Dr. 20,000 | Securities Premium Reserve A/c (400 x €5) Dr. 2,000 | To Share Allotment A/c 8,000, To Share First and Final Call A/c 6,000 To Share Forfeiture A/c 8,000. aieagaoe | Scanned with CamScannerSLUTIONS TO SAMPLE Papp, 26. Ans. (B) 750,000 ACCOUNL Will be debi € debited pital Account ya te ale-4P amount (excluding premium). Since all Calls have Will be debited by : 1,000 Shares x 830 50,000 (D) Dr. C by 716,000; Cr. D by &16, 000 Old Ratio of C and D3:2 New Ratio of Cand D 3:3 Sacrifice or Gain : 3 6.40,000 x + = 216,000 (Dr) De-7e Ss 1. 5 = jp Sactitice 6.40,000 x +5 = £16,000 (Cr) 4's Capital A/c by 50,000 and Cr. C's Capital Ale by £50,000 s. (B) Dr. Hint: Old Ratio ofA, Band = 1:14 ofA, Band = $3423 6,00,000 x +1 = 850,000 (Dr.) 6,00,000 x + = 50,000 (Cr.) 30. Ans. (C) Credit Chitra by 15,000 and Dr. Diksha by 215,000 350,000 Old Ratio: 4 New Ratio : Sactitice or G 4 ae . Chitra 2,10,000 x 5 = %15,000 (Cr.) Le Diksha 2,10,000 x 75 = %15,000 (Dr.) 31. Ans, (A) 4 €1,32,000 and B %48,000 Hint: Sacrifice Ratio of A and B = 30°30 Fis = 3,60,000 Goodwill of the Firm Scanned with CamScannerShare of Cand D = 3,60,000 Goodwill brought in by Cand D 3 10 0 x AL = 21,32,000 , n F = 1,80,000 * 75 A’s share of Goodwill Fj oo = 1,80,000x=5~ = 48) B's share of Goodwill 1,80,000* 75 32. Ans. (C) 31,000 R's Current A/e Dr. , 36,000 To P's Capital A/e 45,000 Sacrifice made by P Sacrifice made by Q = Ble ole Sacrifice Ratio =s'47 007 Goodwill of the Firm = €1,80,000 R's share of Goodwill = 1,80,000 x z = 781,000 P's share of Goodwill = 81,000x = 36,000 Q's share of Goodwill = 81,000% 3 = &45,000 33. Ans. (C) €10,000 Hint: 1 ShareofS = 5 p 1 P'sS: = 's Sacrifice 10 ‘4 1 Rem: hi =tl_ - aining share of S 37107 10 710 . io 1G 7 This share i.e., Jo sto be sacrificed by Q and R in Q's Sacrifice = 4 x +5 Sacri L 1 R's Si et ylld 's Sacrifice = 75 x5 = 35 Sacrificing Ratio of P, Q and R= R’'s Share of Goodwill = 60,000 a 34, Ans, (D) 7600 venom 35, Ans. (A) 36. Ans. (B) 37. Ans. (D) Scanned with CamScanner4g. Ans. (D) meee cn A(B)CEASCapte ay ou 39. Ans. ( 8 Capital Ave wi go. Ans. (C) Cr d°s Capital his With 354,000 ang 1s Capital Ale with 236,000 at. Ans. (C) Dr. Workmen ( © With 18,000 and H's Capital Ale vit 2000 . a ensatis ia with 760,000 mpensation Reserve Ave with 290, woo id sew } A .« and Revaluation A/c — 4p. Ans. (C) (i) ¢ (ii) a (iii) b 43. Ans. (D) Operating Ratio 44, Ans. (B) Liquidity Ratio 45. Ans. (C) Profit before Interest and fax Fixed Interest Charges 46. Ans. (D) (i) b (ii) b (iii) b (ivy 47. Ans. (C) 48. Ans. (C) 49. Ans. (D) 5 times. Hint: Working Capital Tumover Ratio = Revenue from Operations ; : Working Capital Revenue from Operations = Cost of Revenue from Operations ~ Gross Profit = %8,00,000 + 25% of %8,00,000 : = %8,00,000 + %2,00,000 = €10,00,000 Working Capital = Current Assets ~ Current Liabilities = %1,80,000 + $70,000 - 50,000 = %2,00,000 — 10,00,000 _ ="¥2,00,000 > "mes: Working Capital Turnover Ratio 50, Ans. (B) %6,30,000 Hint: Cost of Revenue from Operations = 80% of (®10,00,000 - €1,00,000) - 40,000 - %50,000 $1. Ans, (C) 1.5: 1 Hint: ‘ Total Assets Total AssetstoDebtRatio = Tong term Debis, = Long term Borrowings + Long term Provisions = %6,00,000 + 22,00,000 = %8,00,000 __ 212,00,000 _ | Total Assets to Debt Ratio =—¥g'99,000° Note : 9% Bonds are already included in Long term Borrowings. 52. Ans, (C) Deferred Tax Liabilities . eference, Dividend Pr 53. Ans, (Cy NetPofitafer Tax an No. of Equity Shares ble of €2,000 honoured on the due date Long term Debts Sil 54. Ans. (D) Bills Payal 55. Ans. (C) Scanned with CamScanner