Accounts – Prelim 1 Marks 40 Time 2 Hrs

This question paper comprises two Parts – A and B. There are 12 questions in the question
paper. All questions are compulsory.

PART A
Q1. 2 Marks

Q2. 2 Marks
Distinguish between ‘Revaluation’ and ‘Realization’ accounts.
Q3. 2 Marks
A,B,C and D were partners sharing profits in the ratio of 1:2:3:4. D retired and his share was
acquired by A and B equally. Goodwill was valued at 3 years’ purchase of average profit of
last 4 years, which was 40,000. General Reserve showed a balance of 1,30,000.
You are required to record necessary Journal entries in the books of the firm.
Q4. 3 Marks

Q5 – 3 Marks
Harihar, Hemang and Harit were partners with fixed capitals of ₹3,00,000, ₹ 2,00,000 & ₹
1,00,000 respectively. They shared profits in the ratio of their fixed capitals. Harit died on
31st May, 2020, whereas the firm closes its books of accounts on 31st March every year.
According to their partnership deed, Harit’s representatives would be entitled to get share
in the interim profits of the firm on the basis of sales. Sales and profit for the year 2019-20
amounted to ₹8,00,000 and ₹2,40,000 respectively and sales from 1st April, 2020 to 31st
May 2020 amounted to ₹ 1,50,000. The rate of profit to sales remained constant during
these two years.
You are required to: (i) Calculate Harit’s share in profit. (ii) Pass journal entry to record
Harit’s share in profit.

Q6. – 3 Marks
Ruchi Ltd issued 42,000, 7% Debentures of 100 each on 1st April, 2021, redeemable at a
premium of 8% on 31st March 2015.Interest was payable quarterly starting from 30th June
2021 Pass necessary Journal Entries.
Q7. – 5 Marks

On the above date the firm was dissolved. The various assets were realized and liabilities
were settled as under:
(i) Garima agreed to pay her husband’s loan.
(ii) Leasehold Premises realized 1,50,000 and Debtors realized 2,000 less.
(iii) Half the creditors agreed to accept furniture of the firm as full settlement of their claim
and remaining half agreed to accept 5% less.
(iv) 50% Stock was taken over by Hema @ 90000 and remaining stock was sold for 94,000.
(v) Realisation expenses of 10,000 were paid by Garima on behalf of firm.
Pass necessary journal entries for the dissolution of the firm assuming assets and external
liabilities are already transferred to realization account.
OR

On April 1,2015 Leela retired on the following terms:

i. Building was to be depreciated by 10,000.
ii. A Provision of 5% was to be made on Debtors for doubtful debts.
iii. Salary outstanding was 4,800
iv. Goodwill of the firm was valued at 1,40,000.
V. Amount payable to Leela is to be transferred to her loan account,
Prepare Revaluation Account, Partner’s Capital Account and Balance sheet after retirement
of Leela.
Q8. – 5 Marks
Journalise the following transactions
a) Mehar Ltd. issued ₹ 1,00,000, 12% Debentures of ₹ 100 each at a premium of 5%
redeemable at a premium of 2%
b) 12 % Debentures were issued at a discount of 10% to a vendor of machinery for payment
of ₹ 9,00,000
c) Issue of 10,000 11% debentures of ₹ 100 each as collateral in favour of State Bank of
India. Company opted to pass necessary entry for issue of debentures.

Q9 – 5 Marks
Part B

Q 10 – 2 Marks
While preparing Cash Flow Statement, State activities in which following transactions will
appear:
I. Payment of cash to acquire Debenture by an Investing
Company
II. Purchase of Goodwill

Q11 – 3 Marks
Q12. – 5 Marks