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 Syllabus
CENTRAT BOARD OF SECONDARY EDUCATION, NEW DEI.HI

Accountancy (Code No. 055)

Class-Xll
Theory 80 Marks Time: 3 hours
Project 20 Marks

Units Periods Marks

Part A: AccountinB ,ot Parlnership Firms and Companies
Unit l. Accountin for Pannershi Firms lr, iri
Unit 2. Accou nling ior Comp.rni.s -l ) .t-1

l5O (,0
Part B: tinanci.l Statemenl Analysis
Unil l. Anal s of Financial Stalements l0 12
Unat 4. Cash Flow SlatemPnt 20 08
50 20
Parl C: Proiecl Work lr) =
Proiect work

Writlen Tesl
F rk'
will include:
4 marks
l2 marks (one hour)
I
I 4 marks

PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANTES

Unit 1: Accounling for Partnership tirms
UnitJTopics
. PartErshhx fealures, Pannerchip Deed
. Provisions of the lndian Partnership Acl 1932 in lhe
absence of pannership deed
. Fixed v/s flucluating capital accounts. Preparation of Profit
and Loss Approprialion account- division of profit among
panne6, guarantee of profits.
. Past adjustments (relatintlo inlerest on capital, inlereston
T drawin& salary and profit shrrinS ratior.
. Coodwill: meanin& nature, factors affectinS and methods
ofvaluation - avera8e prcfit, super profil and capitalization
learnint Outcomes
Aftcr toirE throllth lih Unit, th. dtdcntr will be eble to:
. stale the meanin8 of pannership, pannership firm and
partnership deed.
. describe the characteristic features of pannership and the
contents of partnership deeds.
. discuss the significance of provision of Partnership Acl in
the absence of partnership deed.
. differentiate between fixed and fluctuating capital, ouline
the process and develop the underctanding and skill of

t
preparation of Profil and [oss Appropriation Account.
Not.| lntere5t on padner's loan is to b€ treaied a5 d char8e aSainsr . develop the underslandint and skill of preparation profit
and loss appropriation accounl involvint guarantee of
CoodwilI meanint, faciorsaffe(in& need fo. valuarion, methods profits.
for calculaiion (averate profits, super profilr and capitati2alion)
? , adiusled throu8h patueG capilau.urent account or bv raisinR
. develop the underslandinS and skill of makinS past
and writint offSoodwall (AS 26) adiustments.
. state lhe meaning, nature and factors afled in toodwill.
. develop the understandinS and skill of valuation of
8oodwill using differenl methods
 Unit{Topics
accour ing for P.rrE $h firft-R.cott tiMhn.rd [)li.o& orr'
. Chante in the Pmfit Sh.riry Rallo amonS lhe existinS
partners - sacrificing ratio, SaininS ratio, accounting ior
revaluation ol assets and rcassessmenl of liabilities and
treatment ol reserve!, accumulated profits and losses.
Preparation of revalualion accounl and balance sheel.
. Admi$ioo of a part lar - effecl of admission of a panner
on change in the profil sharinS ratio, lreatmenl of
goodwill (as per AS 26), treatmenl for revaluation ofassets
and reassessment of liabilities. trealmenl of reserves,
accumulated profits and losses, adiustment of capital
accounls and preparation of capitdl, current account and
. RctiEnrait and d€alt of a partnetr effecl of reliremenl
/ death of a parlner on chan8e in profit sharing ratio,
lreatmenl of Soodwill {as Fer AS 26), trealmenl ,or
revaluation of assets and reassessmenl of liabilities,
adjustment of accumulated profils, losses and reseNes,
adiustmentof capital accounts and preparalion of capital,
currenl accounl and balance sheel. Preparation of loan
account of the retirin8 Partner.
. Calculalion of deceased pa(ner's share of profit till the
dale of dealh. Preparation of deceased parlneas capital
accounl and his executor's account.
. Dissolution of a partnership firm: meanin8 of dissolution
of partnership and parlnershi.
tirm, types of dissolution of
a firm. Settlemenl of accounts - preparation of realizalion
account, and other related aacounts: capilal accounts
of panners and cash/trank a/c (excludin8 piecemeal
distribution, sale loa company and insolvency ofpanne(s))
Ndt : li) lf rhe reali.ed value of lrnSrble assels ii noi 8iven il
should be (onsidered as rcalited al hrok vrlue iiself.
(ii) lf ihe rcdlized value of intanSible asseis i5 not tav€n ii
rhould be (onsidered a5 nil (1e'o valu€).
(iii) ln .a5€, the rerlirdtion expenres arc borne bya partner,
.lear indi(dlion lhould b€ aiven rc8ardin8 the paym.nl
Unit 3r AccountinS for Companies
Units/Topics
Accounllq ,or Share C-apital
. Features and types of companies
. Share and share capital: nalure and types.
. Accountint for share capilal: issue and allolment of equity
andpreferencesshares. Publicsubscriptionof shares'over
subscriplion and under subscription ofshares; issue at par
and at premium, calls in advance and arrears {excludinS
interest), issue of share, for consideration other than cash.
. Concept of Private Placement and Employee Slock Option
Plan (ESOB, Sweat Equity
. AccountinS treatment of forfeilure and reisgue of shares.
. Disclosure of share capital in the Balance Sheet of a
company
learning Oulcomes
. slate lhe meaninS of sacrificing ratio, Eaanint ratio and
the chanSe in profit sharinS ratio amon8 existinS panners.
. develop the understandinS of accountinS tr€alment
of revaluation assets and reassessmenl of liabilities
and lreatment of reserves and accumulated paofib by
preparinS revaluation account and balance she€L
. explain the effect of change an profit sharint ratio on
admission of a new partner.
. develop the understandin8 and skill of lre ient of
goodwill as per A5'26, treatment of revaluation of assets
and re-assessmenl of liabilities, treatment of reaarves and
accumulaled profits, adiustment of capital accoonts and
preparalion of capital, currcnl accounl and balaaEe sheet
of the new fi.m
. explain the effed of retirement / death of a paatner on
change in profit sharinS ralio
. develop lhe understandin8 of accountinS lrealment of
Soodwill, revaluation of assets and re.asge$ment of
liabilities and adiustment of accumulated profllt, losses
and regerves on retirement /death of a panner ard capital
adiustment.
o develop the skill of calculation of deceased pann€/s share
till the time of has death and prepare deceased partner's
and executor's account
. discuss the preparation of the capital accouds of the
remainin8 partneE and the balance sheet of lhe nrm after
retir€ment / death of a partner.
a understand lhe siluations under which a panner+ip firm
can be dissolved
. develop the understandinS of preparation of Galasation
accounl and other relaled accounts.
Learoint Oulcomes
Afler toidt thror{h thb Unit, tlE stud€it! wlll b..bl€ to:
. state the meaninS of share and share capital and
difrerentiate belwe€n equity shares and preferen<€ shares
and different types of share capital.
. understand the meanin8 of private placement of shares
and tmployee Stock Oplion Plan.
. explain the accountinS trealment of share capital
kansaclions re8ardinB issue of shares.
. develop the understandinS of accountinS lreitrment of
forfFiture and re-is9ue of forfeiled thares.
. describe lhe pregentation of share capital in lh€ balance
sheet of the company a5 per schedule lll pan I of the
Companies Act 2013.
 Accourtint for Mura3
. Debenlures: MeaninS, types, lssue of debentures at par,
at a premium and at a dis{ount. lssue of debentures for
consideration other than cash; lssue of debentures with
terms of redemption; deb€ntures as collateral security-
concepl, interest on debentures. Writing off discount /
loss on issue of debentures.
. Note: Discount or losson issue of debentures to be wrinen
off in lhe year debentures are allotled lrom Security
Premium Reserve (if it exisls) and then fron Slatement of
P.ofit and Loss as Financial Cosl {AS 16).
PART B: FINANCIAL STATEMENT ANAIYSIS
Unit 4. Analysis of Financial Slatements
Units/Iopics
financial clat€rnanb of a Company:
Meanint, Nature, Uses and imporlance of financial slatemenl
Statemenl of Profit and Loss and Ealance Sheet in prescribed
torm with maiorheadings and sub headings (as perSchedule
lll to the Companaes Acl, 2013)
Noter txceptiona/ items, extraordinary items and prclit(loss
lrom ditcontinued opetations are excluded
. fin rri.l Stat.rn nt Arl.lyrii: Meanint, SiSnificance
Obiectives, imponance and limitations.
. Took ior Einarrci.l Stetemafll Arulylis: cash flow
analysis, ratio analysis.
. Accounti&t Ratio6: MeaninS, Objectives, Advantages,
classification and computation.
. Lhuidity Ratio6: Cunenl ratio and Quick ratio.
. Solvcrt<y Retlo* Debr to Equity Rario, Total Asset to Clebt
Ralio, Proprietary Ralio and lnterest Coverate Ratio. Debt
lo Capital Employed Ralio.
o Activity ldloc: lnventory Turnover Ratio,
Receivables Turnover Ralio, Trade Payables Tumover
Ralio, Fixed Assel Turnover Ratio, Net Assel Tumover
Ratio and Worlint Capital Turnover Ratio.
o tuofilebility lalkr: Cross Profil Rario, OperatinS Ratio,
Operating Profit Ralio, Net Profit Ratio and Return on
lnvestment.
Note: Net Profit Ralio is lo be calculated on the basis of profit before and aher tax
. explain lhe accountinB lreatment of differenl cate8ories of
transactions relaled to issue of debentures,
. develop the understandinS and skill of writing off
discount/loss on igsue of debenlures.
. undersland the concept of collateral security and its
presentation in balance sheel.
o develop the skillof calculatinS interest on debenturcs and
its accountinS treatmenl.
. state the meanint of redemption o, debentures.
Iearning Outcomes
After gpiru throqh this Unlt, the ctlder ! will bc .bl. to:
o develop the understandint of major headings and sub-
headinS5 (as perschedule lllto the Companies Acl, 2013)
of balance sheet as per the prescribed norms / formats.
. stale the meaninS, obiectives and limitalions of financial
slalement analysis.
. discuss the meaning of different tools of 'financial
statements analysis'.
. slate the meanin& obieclives and sitnificance ofdifferent
types of ratios.
o develop the undeElanding of computation of current
ralio and quick ratio.
o develop the skill of computation of debt equity ratio, total
asset to debl ratio, proprietary ralio and interest coveraSe
ratio.
. develop the skill of computation of invenlory turnover
ratio, trade receivables and trade payables ratio and
working capital lumover ratio.
Trade
o develop the skill of computation of Sross profil ratao,
operalinS ratio, operatinS profit ratio, net proflt ratio and
return on investmenl.
Unit 5: Cash tlow Statement
Unit\/Tr)pi( \ lea7ninB Outcomes
. Meaning, objectives Benefits, Cash and Cash Alter goint throuth this Unit, the itudents will bc eble to:
Equivalents, Classification of Activities and . state the meaning and obiectives of cash flow
preparation (as per AS 3 (Revised) (lndired statement.
Method only) o develop the understandinS of preparation of Cash
Note: (i) Adjustments relatinB to depreciation and FIow Statement usin8 indirect method as per AS 3
amortization, profit or loss on sale of assets with given adjustments.
includinB investments, dividend (both final
and interim) and tax.
(ii) Eank overdraft and cash credit to be treated
as short term borrowin6s.
(iii) Curent lnvestments to be taken as
Marketable securities unless otherwise
specified.
Noter Previous years' Proposed Dividend to be Biven ef{ect, as prescriH in AS-4, Events occurrinS after the Balai<e Sheel
date. Current years' Proposed Dividend will be accounted for in the next year afler it is declared by the shareholdea.

Proiect Work
Note Xindly refer lo the Cuidelines published by lhe CBSt.
The comprehensive proiect may contain simple CST calculalions

Suggested Ouestion Paper Design

Accountancy
Class-Xll (2022-23)
Theory: 80 Marks Time : 3 hours
Project: 20 Marks

S. No.

t.
{4.1,#rLe*i#,i{fiiffi
R.membcrint and Undcrstrndin&
I Per(enlaSe I
Exhibit memory of previously learned material by recallint facls, terms,
basic concepls and answers, .1.1

Demonslrate undeEtandinB of {acts and ideas by orSanizinE. comparinS,

Jra!:latlrt llgreretinql 8ivin8 der.riptions
and statinS main ideas.

2 Applyint:
Solve problems lo new situalions by applyinB acquired knowledSe, facts, 19 23.75%
lechniquas and ruler rn a different_way-
i Analysin& Evaluatlq and Cr€.ting:
Examine and breik information inlo parls by identifyinB motives or causes.
Make inferences and find evidence to support Beneralizations.
Presenl and defend opinions by makinS iudSements about informalion, 17 21 .2 5%
validity of ideas or quality of work based on a sel of criteria.
Compile information to8ether in a differenl way by combining elements in

" "gy.p1tt"I 9-1

qiryl"q 1l'l"liY: 'gl"tl"l:
Total ri0 t00%
 CBSE S AMPLE OUESTION I

PAPER 2023 [S0Ll/E0]

Time Allowed: 3 hours Max. Marks: 80
Gaprol Insttuctions:
l. This queslion futper conloir; )4 queslions. All questiort^s ttrc cortpul.\ot\.
2. 'l'his question paper is diuided inb tuo parls, Part A and B.
3. Qtustion I lo 16 (nd 27 lo 30 carfus I nwrh eath.
4. Qtestiut^s l7 kt 20, 3|aruL )2 taries ) rutrhs ruth.
5. Quesliorc Jrom 2l , 22 arul 33 canies l nunhscoch
6. Qttstions frou 2) h 26 and )1 curies 6 twrlct each
7 . There is rut oueraLl choicc. Houtnte\ an inlemnl thoice ho-t been pr.otitled in 7 questioru ol
2 qwstions of three marltt, I questiort ol lirur uarlLt and 2 qucstions ol. six mnilts.

PART-A
(Accounting for Partnership Firms and Companies)
l. Navra attd Ra<lher t'cre partttcrs sltarirtl; Plofits all(l l(,sscs in the r:rtio ol l]: l. Shlcya uas
a<[ntitted lirr l/.5th sharc in tlre prolits. Shrcl'a was unablt' to hr irrg her shlrc ol gorxlrlill
'flrc jorrrrr:rl crrtr-r' recor<lc<l Ii.tr. g<xrtlu.ill pt t'tttittttt is givcrr lrt krrr
1>t ctuitrnr in cash.

I)ate Particulars LF Dr. ( t) Cn (?)

Shreya's Current Ay'c. Dr :1.000
Tb Navya's Capital A/c. ll,(x){ )

'ft> Radhey's Capital A,,rc I (;.0(x)

(Being entry for goodwill rrearmertr passed)

-l-he
new profit-sharing ratio of Navya, Radhey an<l Shreya will lx:
(al 4l:7: 12 (D) lll;12: lt)
(r) 3: l: I (d) r5:3: 2 I
2 Assertion (A): Oomnrission provided to partner is shovln in Prolit arr<l l.oss.,Vc.
Reason (R): (lomnrission provided to
I)anner is churge against pr.ofits and is to be
provi<lcd at fixed mrc.
(n ) (A) is c()rrect l)ut (R) is u rorrg
([) Both (A) an<l (R) are corrc<r, brrt (R) is rrot tlrt trrr-re< r cxplarration ol (A)
k ) Both (A) :Urd 1R1 arc incorrect.
(l) Both (A) and (R) arc corr.ecr, an<l (R) is tlre cor.r.ecr exPlanarion 01 (A) I
A share ol ( l0 each, issued al { 4 premiunr out ol wlrich { 7 (includirrg { I prenrirrm)
nas called up antl pairl rrp. 1-he trncalled (lapital rvill b. _
(a) t 7 pcrsharc ([) ( -l per slrirle
(r') { 8 pcrshalc 1rl) { il pel slrirlc

'tllt'
Sarnpte Papers
F 5
.'.rN,
 OR
While issuing type oIDebentures, company does not Sive any undertaking
for the repayment of money borrowed by issuing such debentures.
(a) Zero Coupon Rate Debentures (6) Non-Convertible Debentures
(c) Secured Debentures (d) Non-Redeemable f)ebentures
4, Samiksha, Arshiya
- and Divya wcre Partners in a firm sharing profits-and losses in the
ratio of 5: 3: 2. With effect ironr I st April 2022, they agreed to sharc future profits and
losses in thc ratio of 2: 5: 3. Their Balance Sheet showed a debit balance of ? 50'000
in the Prof'rt and l,oss Account and a balance of t40,000 in the Investment Fluctuation
Fund. The market valuc ofan investment is {30,000 against the book valtre oft50,000.
Partners have decided, not to show revised valued in the balance sheet and to Pass an
adjtrsting entry ftrr it.
\\Ihir:h of the fbllowing is the c()rrect trcatment of thc abovc?
(a) Samiksha's Capital A,/c. I )r: 1),0u)
'li) Arshiya's Capilal AJc 6,000
'[b Divya's (]apital A./c 3,000
(b) Arshiya's (iapital A,/c. [ )r: .-,.000

1ir Sanriksha's Oapital &c 2,000

1ir l)ivya s Oapital A,/c. 3,000

(c) Arshiya's Capital A,/c. [)l] 2,000

l)ir1'a's (iapital .Ay'c. 1)i I ,000

'lir Samiksha's Capital Ay'c :r.000

(d) Arshiya's Capital A,/c. l)r'. 6,000

Divya's (iapital AJc. [)r: 3,000

lir Samiksha's Capital A./c 9.000

OR
Sohan and Mohan are partners sharing prolits and losses in the ratio of 2:3 with the
capitals of? 5,00,000 and t 6,00,000 iCspecrively. On lst January 2022' Sohan and
Mohan granted loans ol I 20,0o0 and ? 10,000 r€spectively to the firm. Determine the
amount ofkrss to be borne by eirch partner lirr the vear cnded 3lst March 2022 if the
loss hcflorc intercsr ftrr lhe year am()trtrted to ( 2,500
(a) Share ofLoss Sohan -{ 1,250 Mohan - ? I,250
(i) Share o[Loss Sohan -( 1,000 Mohan - { 1,500
(c) Share ofLoss Sohan -? 820 Mohan - ( 1,230
(d) Share ot Loss Sohan -{ I ,180 Mohan - { 1,770 I
5 Vihaan and Mantr are partners sharing profits and losses in the ratio of 3:2. The firm
maintains fluctuating cipital accounts ind the balance of the same as on 3lst March,
2022, is t 4,00,000 a;d t +,6s,000 for Vihaalr and Mann respectivcly. Drawings during
the year were t 65,000 each. As per the partnership Deed,- Interest on capital @ l07o
p.a. on Opening Oapital has been alkrwid to theni. Calculate the-oPening. caPital o[
Vihaan given th;t the divisible profits during the year 2021-22 was { 2,25'000.
(a) (3,30,000 (6) {4,40'000
(r) (4,00.000 (.i) t3'00,000 I

'tllI
, 6 Accountancy-Xll
 6. Savitri l,td. issued 5t1,000,8% Debentures of{ 100 each at certain rate of preurium and
to be redeemed at l0% premium. At the time of writing off Loss on Issue ofDebentures,
Statement ofProlit and Loss was debited with ?2,00,000. At what rate ofpremium, these
debentures were issued?
(a) lo% (b) 16%
(c) 6% (rl) 47a I
OR
Durya Ltd. issued 80,000, l0% I)ebentures of? 100 each at certain rate ol discount
and were to be redeemed at 20% premium. l)xisting balance ol' Securities Premium
before issuing of thcse debentures was { 25,00,(}00 and afte r writing off Loss on Issue of
Debentures, the balance in Securities Premium was { 5,00,000. r\t what rate (}l (liscount,
these debentures were issued?
(u.) l0% (h) 5q(
(c) 25% (d\ t5%
7, Attire Ltd., issued a prospectus inviting applications fol 12,000 shares of {10 each
payable ?3 on application, ? 5 on allotment and balance on call. I'ublic had applied for
certain number of shares and application money was received. Which of the fbllowing
application money, if received restricts the conrpany to proceetl with the allotment of
shares, as per SEBI guidelines':
(a) ?36,000 (r) (45,000
(c) {30,000 kl) {32,000 I
8. Amay, Bina and (lhander arc partners in a lirnr with capital balances ol ? ir0,000,
{ 70,000 and (
110,000 respectivcly on Slst March, 2022. Arnay decides to retire from
the firm on 3lst March,2022. With the help ofthc infonnation provided, calculate the
amount to be paid to Amay on his retire ment.
There existed a general reserve ol ( 7,500 in the balance sheet on that date.
T'he goodwill ofthe lirm was valued at ( 30,000.
Gain on revaluarion was {24,000
(a) tu8,500 (D) (90,500
(r) ?65,375 k/) 470,500
OR
A, Il and C are parrners. As capital is t 3,00,000 and B's capital is {1,00,000. C has
not invested any amount as capital but he akrne manages the whole business. (l wants
?30,000 p.a. as salarl, though the deed is silent. F-irnr earned a profit ol ( 1,50,000. How
much will each partncr receives as an appropriation of profits?'
(a) A ? 60,000; B ? 00,000; C t 30,000
(i) A ? 90,000; B { 30,000; C { 30,000
(r) A { 40,000; B { 40,000and (i t 70,000
(d) A? 50,000; B { 50,000and C ? 50,000
Read the following hypothctical situatia4 A'l-tuer Question No. 9 atd 10
Puneet and Raju arc partners in a clay toys making firm. Their capitals wcrc I 5,00,000
and ? 10,00,000 rcspectively. 'l he firm alkrwetl Puneet to get a commission of l0%
on the net prol'it belirre charging any comrnission and Raiu to get a corrrnrission of
l0% on the nct profit after charging all commission. Following is the Profit and Loss
Appropriation Account lbr the vear ended 3lst March, 2022.
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Sample Papers 1
N
 Profrt and Loss Appropriation Account for the year ended 3lst March 2022
[)r. (lr
Particulars (() Particulars ({)
'lb Puneet's Capital &c -1.1,000 Rl Prolit and l,oss.A./c
(commission) (--- x l0/100)
'ltr Raju's Capital y'y'c

((lommission)
-li) Profit share transfcrred t<r

Puneet's Capital.A,,/c
Raju's CapitalA,./c

9. Raju's commission will be:

(i) ? 40,000 (r) { 44,000
(c) t36,000 (d) ( 36,440 I
10. Puuect's share ()l profit will be :

kz)( t,80,000 (r) t I,44,000

(r) ( 2, t6,000 (d) t I,60,000 I
ll. (lhoose the correct sequence ol'the lbllowing transactions in context of Division of
Profits:
(i) Guarantee by Firm to Partners
(ii) (iuarantee by Partners t() l'irm
(iii) 'liansfer of I'rofits to Profit and Loss Appropriation Account
(t,) (;uarantee by Partner to Partner
kr) (i); (ii,); (irr);(ii) (D) (ir,); (,); (,,); (n,)
(r) (iii); (ii); (i); (tu) (d\ (ii); (iii); (ht); (i) I
12. 11 10,000 shares of{10
each were [brfeited fbr non-payment of final call nr()ney 3 of{
per share and only 7,000 shares were re-issued (i {
t I per share as fully paid up, then
what is the amount ol-maximunr possible discount that company can allow at the time of
re-issue of the renraining 3,000 shares?
(r) ?28,000 (r) t2l,000
(c) {9,000 kl) {t6,000 I
13. As per the Companies Act 2013, Sccurities Prcmium Balance can be utilised for which of
the following purposes?
(n) Issuing bonus to existing shareholders to convert partly paid up into fully paid-up
bonus shares
(0) Providing [or Premium payable on Redcmption ofDebentures.
(r) lVriting
off all (lapitalised Expenditures
(d) llrry Back r-rf t)ebentures
14. (ianga andJamuna are partners sharing profits in the ratio ()f 2: [. They admit Saraswati
firr I /5th share in firture profits. On the date <.rf admission, GanBa's capital was { 1,02,000
antl Jamuna's capital was ( 73,000. Saraswati brings t 25,000 as her share of goodwill
and she agrecs t() contribute proportionate capital of the new firm. How much capital
will be brought bl Saraswatii'
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B Accountancy Xll
///,,
 (a) <43,750 (6) t 37,500
(r) ? 50,000 (d) t 40,000 I
15. Green and Orange are partners. Green draws a fixed amount at the beginning ofevery
month. Interest on drawings is charged @)8V<' p.a. At the end of the year interest on
()reen's drawings amounts to t 2,600. Monthly drawings ofGreen were:
(a) ? 8,000 (r) ( 60,000
(r) t 7,000 (d) { 5,000 I
OR
Cirdhar, a partner withdrew { 5,000 in the beginning <.rf each quarter and interest on
drawings was calculated as { 1,500 at thc end ofaccounting year 3l March, 2022. what
is the rate of interest on drawings charyed?
(a) 6Vop.a (bl \Vo p.a.
(cl l|Vo p.a (d) l2vo p.a I
16, At the tirnc of dissolution ofa hrm, Creditors are { 70,000; Firnr's Capital is ( 1,20,000;
Cash Balance is { I0,000. Other assets realised { I ,50,000. Gain/Loss in the realisation
account will be:
(a) ( 30,000 (Gain) (b) t 40,000 (Gain)
(r) t 40,000 (Loss) (d) ( 30,000 (Loss) I
17, Nirmala, Divisha and Sara were partners in a Iirm sharing prolits and losses in the 3:4:3.
Books were closed on 3lst March every year. Sara died on lst February, 2022. As per
the partnership deed Sara's executors are entitled to her share ofprofit till the date of
death on the basis ofSales turnover. Sales for the year ended 3lst March, 2021 was
t 10,00,000 and profit for the same year was t 1,20,000. Sales show a positive trend of
20% and percentage ofproht earning is reduced by 2%.
Journalise the transaction along with the working notes. 3
lE. Amay, Anmol and Rohan entered into partnership on lst July, 2021 to share prohts
and losses in the ratio of 3:2:1. Amay guaranteed that Rohan's share of profit after
charging interest on capital @ 69a p.a. would not be less than { 36,000 p.a. Their fixed
capital balances are: { 2,00,000, { 1,00,000 and ?1,00,000 respectively. Proht lbr the
year ended 3l st March, 2022 was ( 1,38,000
Prepare Profit and Loss Appropriation Account.
OR
Ajay, Manish and Sachin were partners sharing profits in the ratio 5:3:2. Their Capitals
were ? 6,00,000; ? 8,00,000 and { I1,00,000 as on lst April, 2021. As per Partnership
deed, Interest on Capitals were to be provided @ \Vo p.a. For the year ended March 31,
2022, Profits of ? 2,00,000 were disributed without providing for Interest on Capitals.
Pass an adjustment entry and show the workings clearly.
19. Anthony Ltd. issucd 20,000, 9% Debentures of ? 100 each at I0% discount to Mithoo
Ltd. from whom Assets of ( 23,50,000 and Liabilities of t 6,00,000 were taken over.
Pass entries in the books ofAnthony l.td. ifthese debentures were to be redeemed at 5%
premium.
OR
Random Ltd. took over running business of Mature Ltd. comprising ofAssets
of {45,00,000 and Liabilities of? 6,40,000 for a purchase cc.rnsidcration of{ 36,00,000.
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Sample Papers I '\
...\\\\\
 The amount was settled by bank drali of t 1,50,000 and balance by issuing l2%
preferencc shares of ? 100 each at l5% premium. Pass entries in the books of Random
Ltd
20. f)oremon, Shinchan and Nobita are partners sharing profits and losses in the ratio
of 3:2:1. With effect liom lst April, 2022 they agree to share profits equally. For this
purpose, goodwill is to be valued at two years' purchase ofthe average profit of last four
years which were as (bllows:
Year ending on 3lstMarch,20l9 t 50,000 (Protit)
Year ending txr ll I stMarch,2020 t I,20,000 (l'rofit)
Year ending on 3lst March,202t I1,80,000(Profit)
Year ending on 3lst March,2022 (70,000 (l"oss)
On lstApril,202l a Motor Bikecosting ? 50,000 was purchased and debited to travelling
expenses acc()unt, ()n which depreciation is to be charged (ta 2O%' p.aby Straight Line
Method. The l'irm also paid an annual insurance premium ol (20,000 which had already
been charged to Prolit and Loss Account {br all the years.
Journalise the transaction along witlr the working notes. 3
21. Altaur Ltd. was registered wit}r an authorised Clapital of I ,1,00,00,000 tlivided in 25,00,000
Equity Shares of ( l0 each and 1,50,000, EZ Prefelence Shares ol { 100 each. The company
issued 8,00,000 !i<1uity Shares tbr public subrription at 2UZ premium, payable { 3 on
application; ? 7 on allotment (including prcmium) and balance on call. Public had applied
Ibr 10,00,000 sharcs. Excess Applications wcre sent letters of I'cglet.
All the dues on allotment received cxcept on t5,000 shales held by Sanju. Another
shareholder Rocky paid his call dues along with allotmcnt on his holding of 25,000
shares. You are required to prepare the Balance Sheet of tlre company as per Schedule
III ofthe Companies Act, 2013, showing Share Capital balance and also prepare Notes
to Accounts. 4
22, Charu, Dhwani, lknoor and Paavni were partncrs in a lirIn. -l'hey had entered int<r
partnership firm last year only, through a verbal agreement. 'l'hey contributed Capitals
in the firm and to meet other financial requirements, l'ew partners also provided kran
to the firm. Within a year, their conllicts arisen due to (ertain disagr-eements and they
decided t<.r dissolve the firm. The firm had appoinred Ms. Kavya, who is a financial
advisor and legal consultant, to carry on the dissolution process. In the first instance,
Ms. Kavya had transfcrred various assets and external liabilitics to Realisation A/c. Duc
to her busy schedule; Ms. Kavya has delcgated this assignment to vou, being aIr interl't
in her firm. ()n the date of dissolution, you have observed thc fbllowing transactions:
(i) Dhwani's Loan of{ 50,000 to thc [irm was settled by paying { 42,000.
(ii) Paavni's l.oan of t 40,000 was settled by giving an unrccorded asset of t 45,000.
(iii) Loan to (lharu of t 60,000 was settled by payment to (lharu's brother kran of thc
same anloutlt.
(fu,) Iknoor's l,oan ol { 80,000 to the firm and she took over Machinery of { 60,000 as
Part Payment.
You are required to pass necessary entries frrr all the above n)clrtioned transacdons.
23, O'fUA Ltd. was registered with an authorised capital of 2,00,000 cquity shares o{
( 100 each. '[-he company offered 60,000 shares for public srrbscription at 25% premirr nr.
The share was payable as ( 40 trn application and balance otr all()tr)ent, with premiunr.
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IO Accountancy-Xll
h,,
 Public had applied for 85,000 shares. Pro-rata allotment was made in the ratio of 5:4 and
remaining applications were sent letters of regret.
Mr. Anand holding 4,000 shares failed to pay allotment money and his shares were
forfeited. Out of these 3,000 shares were re-issued at a discount of { 20 per share. Pass
necessary entries in the books ofthe OTUA Ltd. 6
OR
Pass entries for forfeiture and re-issue in both the following cases:
(a) Vikram Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000 shares for
non-payment of allotment money of T 5 per share and first and final call of { 2 per
share. Only application money of I 3 was paid by him. Out of these 3,000 shares
were re-issued @ { l2 per share as fully paid.
(b) Ratan Ltd. forfeited 3,000 shares of { l0 each (issued at { 2 premium) for non-
payment of hrst call of { 2 per sharc. Final call of ( 3 per share was not yet made.
Out ofthese 2,000 shares were re-issued at { l0 per share as fully paid.
24. X and Y were partners in the profit-sharing ratio of3: 2. Their balance sheet as at March
31,2022 was as follows: 6
Balance Sheet
us at March 3l . 2022

Liabilities (() Assets (t)

Creditors 56,000 Plant and Machinery 70,000
General Reserve 14,000 Buildings 98,000
Capiral Accounts Stock 21,000

x I,19,000 Debtors 42,000

Y 1.12.000 2,31 ,000 lessr Provision 7.000 35,000

Cash in Hand 77,000

:1,01,000 3,01,000

Z was admitted for l/6th share on the following terms:

(i) Z will bring t 56,000 as his share ofcapital, but was not able to bring any amount to
comp€nsate the sacrificing partners.
(ii) Goodwill of the firrn is valued at ? 84,000.
(iii) Plant and Machinery were found to be undervalued by t 14,000 Building was to
brought up to { 1,09,000.
(iu) All debtors are good.
(u) Capitals of X and Y will be adjusted on the basis of Z's share and adjustments will be
done by opening necessary current accounts.
You are required to prepare revaluation account and partners' capital account.

rl
Sample Papers II N\\
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 OR
P Q and R were partners in a Iirm sharing profits in the ratio of 3:2:l respectively. On
March 31st,2022, the balance sheet ofthe hrm stood as follows:
Balance Sheet
Liabilities (.) Assets ( <)
Creditors 13,000 Cash 4,700
Bills Payable 590 Debtors 8,000
CapitalAccounts Stock I 1,690
P 15,000 Buildings 23,000
o 10,000 Profit and Loss Account t,200
R t0.000 35,01X)
4It,590 .18.i1)0

Q retired on the above-mentioned date on the fbllowing terms:

(i) Buildings to be appreciated by (7,00t)
(ii) A provision for doubtful debts to be rnade at 5 7c on debtors.
(iii) Goodwill of the firm is valued at ( 18,000 and adjustment to be made by raising and
writirrg off the goodwill.
(ir) ? 2,800 was to be paid to Q immediately and the balance in his capital account to be
transferred to his loan account carrying interest as per the agreement.
(u) Remaining partner decided to maintain equal capital balances, by opening current
account.
Prepare the revaluation account and partners' capital accounts.
25. A, B and C were partners sharing Profit and Losses in the ratio 5:3:2. A died on 30th
June, 2019. Entry for treatment ofgoodwill after his death was passed as follows:
Date Particulars L.E, Dr. ( l) Cr. ( l)
B's Capital A,/c Dr. I,80,000
C's Capital A,,/c Dr. I,20,000
To As Capital A"rc 3,00,0(x)
(Entry for goodwill treatment passed at the time
of death ofpartner)

As proht till date of death was estimated as { 1,20,000, based on the average profits ol'
past three years. Final dues payable to As executors on the date ol'death was calculated
as { 8,40,000 out of which { 2,40,000 was paid immediately by giving him Furniture
valued for the same and balance was to be paid in three equal annual instalments starting
from 30 June, 2020, t<.rgether with interest rate as specified in Section 37 of Indian
Partnership Act, 1932..
Pass necessary entry lbr profit share to bc credited to As Capital and also prepare As
executors account till final settlement 6
26. Health2Wealth Ltd. had share capital of( 80,00,000 divided in shares of? 100 each and
20,000, 8% Debentures of { 100 each as part of capital employed. The company need
additional funds of t 55,00,000 tbr which they decided to issue debentures in such a way
that they got required litnds alter issuing debentures of the same class as earlier, at l0%
premium.'I-hese debentures l'ere to be redeemed at 20% premiurn after 4 years. These
debentures were issued on 0l ()ctober, 2021.

lr'
T2 Accountancy-Xll
 You are required to:
(a) for issue of Debentures.
Pass entries
(b) Prepare Loss on Issue of Debentures Account assuming there was existing balance
ofSecurities Premium Account oft 2,80,000
(c) Pass entries for lnterest on debentures on March 31,2022 assuming interest is
payable on 30 September and 3l March every year 6

PARI-B
(Analysis of Financial Statem€nts)
27. Financial statements are prepared on certain basic assumptions (pre-requisites) known
as
(a) Provision ofthe Companies Act,20l3 (6) Accounting Standards
(r) Postulates (d) Basis ofAccounting
OR
Which one of the following is correct?
(i) Quick Ratio can be more than (lurrenr Ratio.
(ii) High Inventory Turnover Ratio is good for the organisarion, except when goods are
bought in small lots or sold quickly at low margins to realise cash.
(iii) Sum of Operating Ratio and Operating Profit ratio is always 100%
(a) All are correct. (6) Only (i) and (iii) are correct
(r) Only (ii) and (iii) are correct (d) Only (i) and (ii) are correct I
28. From the following, calculate Interest Coverage Ratio
Net profit after tax ( 12,00,000; l07c debentures { I ,00,00,000; Tax Rate 407c.
(a) 1.2 times (D) 3 times
(c) 2 times (d) 5 times I
29 Insurance Claim received by A-lbert (lo. Ltd. of ? 5,00,000 for Loss of Machinery due t<>
theft will be recorded in Cash Flow Statement in which ofthe following manner?
(a) Added under Operating Activities as Extraordinary Item and Subtracted from
Operating Activities also
(D) Subtracted under Operating Activities as Extraordinary ltem and Added to
Operating Activities also
(c) Added under Operating Activities as Extraordinary ltem and Outflow under
lnvesting Activity also
(d) Subtracted under Operating Activities as Exraordinary Item and Inflow under
lnvesting Activities also
OR
A company issued 20,000; 9% Debentures of < 100 each at l0% Discount. These
debentures were to be redeemed at l57c Premium at rhe end of5 years. The balance in
Securities Premium Account as on the date of Issue was ? 3,70,000. How this transaction
will be reflected in Cash Flow Statement?
Choose the correct option:
(a) Added ( 1,30,000 under Operating Activities as Loss on lssue ofDebentures written
offand Inflow of( 20,00,000 under Financing Activities.

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Sample Papers I3
\N\. \
\
 (D) Added {5,00,000 under ()perating Activities as Loss on Issue of Debentures written
offand In{low of( 18,00,000 under !-inancing Activities
(
(c) Added I ,30,000 under Operating ActiYities as l,oss on lssue of Debentures written
offand Inflow of{ 18,00,000 under Financing Activities
(d) Added t 5,00,000 under Operating Activities as Loss on Issue of Debentures written
offand Inflow of( 20,00,000 under Financing Activities I
30. From thc folkrwing information, 6nd out the inflow of Cash by sale of Office
equipment's.
3 tsr March,2022 3lst March,202l
Office Equipmcnt t 2,00,000 ( 3,00,000
Additiona I I nfofl t otion :
Depreciation for the year 2021-22 was { 40,000
Purchase of Office Equipment purchased during the year ? 30'000
Part of Offrce Equipment sold at a profit of { 12,000
(a) { 1,00,000 (r) t 1,02,000
(c) T 90,000 (d) { I,12,000 I
31. Classify the fiollowing items under Major heads and Sub-head (if any) in the Balance
Sheet ola Company as per schedule III ofthe Companies Act 2013:
(i) Current maturities of long term debts
(ii) Furniture and Fixtures
(iii) Provision (br Warranties
(iu) Income received in advance
(rr) Capital Advances
(rrr) Advances recoverable in cash within the operating cycle 3
32. Lala Ltd. and Bala Ltd. use di(ferent accounting policies flor inventory valuation' These
variations leave a big question mark on the cross-sectional analysis and compariron of
these two firms was not Possible.
ldentify the Iimitation of Ratio Analysis highlighted in the above situation. Also explain
any two other limitations of Ratio Analysis apart from the identified above. 5
33. Determine Return on Investment and Net Assets'lurnover Rado from the following
information:-
.Ihx
Profits after Tix were ? 6,00,000; rate was 407c; l5% Debentures were of{20,00'000;
l0% Bank Loan was ? 20,00,000; l27o Preference Share Capital t 30'00'000; Equity
Share Capital ? 40,00,000 ; Reserves and Surplus were ( 10,00'000; Sales ? 3'75,00'000
and Sales Return ( 15,00,000.
OR
Debt to Capital Emphyed ratio is 0'3: l. Statc whether the following transactions' will
improve, decline orwiil have no change on the Debt to (jaPital Employed Ratio. Also
give reasons for the same.
(i) Sale of Equipments costing { 10,00,000 for { 9,00,000.
(ii) Purchased Goods on (lredit f<rr < 1,00,000 for a credit of l5 months, assuming
operating cycle is of l8 months.
(iii) Conversion of Debentures into Equity Shares of ? 2'00'000.
(ru) Tax Refund of? 50,000 during the year 4
'lt'
I4 Accountanry-Xll
 34. Read the following lrypothetical text and ansuer the gfuen questions on lhe basis of the
same:
.\ashna, att ulttmntts ol (lllSl. School, irritiirtcrl hcl slarl rrp Snrartpal', irr 2015. Snutrtl)a)'
is a setvicc platlilrrrr that pr'(xcss(.s l)itvnlcnts vi:r [1]'l anrl l'()S, arr<l plovirlcs cre<lit or'
loans to tlteir clierrts.. I)rrring the vcar'2021-2?, Srnarll)irl issrrctl lxrrrrrs slralcs irr tlrc
t alio ol'5: I hr capiralising rcs<:rscs. 'l lrc prolils ol Srrrartl>irv in tlrt, r'clrr 202 l-22 alicr all
appropriations was { 7,ir0,0(X). 'l his prolit rlirs iu.rivc(l irli('r' lakin!{ irrto trrnsirlcratiorr
tlte Iirlkrving itenrs:
Particulars ( r)
Interim Dividend paid during the year 90,000
Depreciation on Machinery 40,000
l-oss ofMachinery due to fire 20,000
Insurance claim receiyed for Loss of Machinery due to Fir€ 10,000
Interest on Non-Current Investments received 30,000
Tix Refund 20,000
Additional I n{brmation
Paniculars 31.3,22 ( ?) 51.3.21(?)
Equity Share Capital 12.00,000 10,00,000
Securities Premium Account 3,00,000 5,00,000
C,eneral Reserve 1,.!0,000 |,50,000
Investment in Marketable Securities I,50,000 I,00,000
Cash in hand 2.00,000 :r,00,000
Machinery 3,00,000 2,00,000
l0{[. Non-Current Investments 4,00,000 3,00,000
Bank Overdraft 2,50,000 2,00,000
C,oodwill 30,000 80,000
Provision for Tax 80,000 60,000
(i) Goodwill purchased during the year was a 20,000.
(ii) Proposed Dividend for the year ended March 3l , 2021 was ? | .(iO.00O antl Iirl tlrt.
year ended March 3l ,2022 was ? 2,00,000.
You are required to:
l. Calculate Net Profit before tax and extraordinary items.
2. Calculate Operating profit befure working capital changes.
3. Calculate Cash flow from Investing activities.
4. Calculate Cash flow from Financing activities.
5. Calculate closing cash and cash equivalents. 6

TII
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I Sarnplc. Papr:rs I5
N,
-$lnnswer
l. (al 4l:7:
Hint;
12

New share = Old share - sacrificing ratio

Navya's new share = 3/4 - (ll5 x ll3): ?14 - | l15 = 41160
Radhey's new share = lla - (ll5 x 213) = ll4 -2115 = 7160
Shreya's new share = ll5 = 12160
New profit-sharing ratio of Partners = 41i60 : 7/60:- 1216o
= 4ll7:12
2, (c) Both (A) and (R) are incorrect
3. (r) < 4 per share
OR
(d) Non - Redeemable Debentures
4.
(.r ) Samiksha's Capital A,/c l)r' alr.ol ro

To Arshiya's Capital A,,/c ?6,000

To Divya's Capital A,/c t3,000

Hint:
Total amount to be adjusted:
Debit Balance of Profit and [-oss Account = ({50,000)
Less: Investment Fluctuation Fund = {20.000
(?30,000)
Calculation of Gain or sacriEce:
Samiksha = 5ll0 -2110 = 3/10 (sacrifice)
Arshiya = 3/10 - 5/10 = -2l10 (gain)
Dirya = 2/10 - 3/10 = -ll10 (gain)
Samiksha's share of loss to be adjusted = 30,000 x 3/10 = t9,000
Arshiya's share ofloss to be adjusted = 30,000 x 2/10 = (6,000
Divya's share ofloss to be adjusted = 30,000 x l/10 = (3,000
OR
(d) Share of Loss Sohan; - ( 1,180 Mohan - ( 1,770
Hint:
Total Loss to be distributed = 2,500 (Loss before interest) + 300 (lnterest on Sohan's
Loan) + 150 (Interest on Mohan's Loan) = t2,950
5. (.i) t 3,00,000
6. (c\ 6Va
OR
(b\ 5%

I6 Acr:otrntancy Xll

-
 7. (c) t30,000
E. (d) <70,500
Hint:
= 50,000 (Capital) + 2,500 (General Reserve) + 10,000 (C,oodwill)
+ 8,000 (Gain on Revaluation)
: {70,500
OR
t50,000; B ?50,000 and C {50,000
(d) A
When the partnership deed is silient, the partners will share the profits equally.
9. (c) (
36,000
Puneet's commission = (44,000
Net profit before charging such commission = 44,000 x 100/ l0 = 4,40,000
Net profit after charging such commission = 4,40,000 - 44,000 = 3,96,000
Raju's commission on net profit after charging all commissions
= 3,96,000 x t0/l l0 = (36,000
10. (a)? I,80,000
Hint: Net profit after all charging all commissions = t3,60,000
Puneet's share = 3,60,000 x l/2: {1,80,000
rr. (c) (iii), (ii), (i), (iu)
12. (r) r 2 r,000
Hint: Maximum possible discount allowed at the time of re-issue on 3,000 shares
= Amount forfeited on 3,000 shares = 3,000 x (7 = (21,000
13. (b) Providing for Premium Payable on Redemption ofDebentures.
14. (c) t 50,000
Hint: Total adjusted capital of Ganga : t I ,02,000 + { 16,667 (Share of Goodwill)
= ? I,18,667
Total adjusted capital ofJamuna = ?73,000 + t8,333 (Share of Goodwill)
= t8l ,333
Combined Capital ofPartners = {2,00,000 (1,18,667 + 8t,333)
Total Capital ofthe firm : {2,00,000 x 514 = t2,50,000
Capital brought in by Saraswati = {2,50,000 x l/5 = t50,000
15. (d) ? 5,000
Hint: Interest on Drawings = Green's Total Drawings x 8/100 x 6.5/12
t2,600 = Total Drawings x 8/100 x 6.5/12
Green's 'fbtal Drawings : t60,000
Green's monthly Drawings : t60,000 x l/12 : t5,000
OR
(d) l27o p.a.
Hint: lnterest on Drawings = Gridhar's Drawings )( -Oifut*,l*
(1,500 = (5,000 x 4), -.*ft#@r#
tl

Sample Papers I7
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 ate r r'!Ja131cst 1.,
( I ,it00 = (20,(x)g x t
,
Rirte ()f lnterest = l?(ft p.a.
16. (l) ( 30,000 (loss)
Hint:
(lalculation ol ['inn's Assets:
Balance Sheet
Liabil it ies (?) (( )

( i ttlitor s 70.000 Cash 10,000

( irrpital t,20.0(x) Sundry dssets (Balancing l,80,000
tigure)
1.90.(xx) I,90,0(x)
l)r Realisation Account ( ir:

Particulars (<) Particulars (<)

lb Sund!-y Assets l.rl0.(xx) B) (lredit()rs 70,000

Ib Cash/Bank ((ieditors Paid) 70.(xx) B! (lash/Bank (Assets Realised) I ,50,000

By [,oss on Realisation 30,000

'..1.i0.(x1o ,50.000

17. Journal entry

l)ate Particulars L.F. Dr. (l) Cr. (?)
t.0?.22 Profit and Loss Suspense,A,/c l)r: 30.000
Nlar-. 3l To Sara's Oapital A,/c 30,000
(Beirrg Sara's share of proht allowed till
the date of her death)

Workiogs Note:
Prtrfit % to sales turnover for the year ended 3l st Marct = xl0O=127o
,ZOZ r ftffi
Estimated sales lbr the year ended Slst March,2022 = (10,00'000 + 2ffy'oof7 l0'00'000

= { 12,00,000

Estimated sales till lst February,2022 = { t2,00,000 x l0/12 = { l0'00,000

Profit percentage 12 -2=l07o

Profit amount till lst February, 2022 = lUVc ofl 10,00,000 = t l'00,000

Sara's share of profit till lst February,2022= 1,00,000xfr= <SO,OOO.

'llt'
IB Accountanry-Xll
 18. l)r: Profit and Loss Appropriation A,/c (ll
2022
Particulars (t) Particulars (t)
'li) Interest on (iapital By l\'olit and l-oss ,Vc I,3u.0000
Amay's (:ur'rent A,k 1),(XX)

Annr()l's (lurrent ,Vc 1.5(x)

Rohan's (:ulrent ,Vc 'l.ir00
'lir Partners' (lurrent A,,/c:

Amay (60.00{) - 7,000) 53,000

Annrol .10,000

Rohan (20,(XX)+7000) 27.000 1.20.(xx)

l,:18.{xx) I Ju (xx )

Working Note;
(;uaranteed Profit of Rohan for 9 months

= ?36,000 xgll2= { 27,000

OR

Journal Entry
Date Paniculars L.n Dr. ( t) Cr. ( ?)
(,) Ajay's Capital A,rc l)r: :2.( )( )0
-Ib
Manish's Capital A,,/c 4.(XX)
To Sachin's Capital A,/c .1IJ.(X)0

(Being adjustment entry passed)

Working Notes

Particulars Aj"y Manish Sachin I irm

II
l)r: ( ;rl l)r. (:r: l)t' (:r l)r: (:r:
l\'()lits laken 1.OO.O00 (i0.ooo 40,000 2.00.(xx)
bacl
Int( r'esl on
Oapital to bc 1.00,000
.l lt,( x )0

48,0(X) {i{},01)o
{i.1.000
(i"l,00{)
I
.l ( ).0(x )
lilJ,oo0
r,tn,(xx)
2,00,0(x)
2,(X).(Xn)
I
?,{)0,(x)o
clcrlitcd r-r2,000 (l)r) 4.000 ((lr.) 48,000 ((jr)
19. In the Books ofAnthony Ltd.
Journal
Date Particulars t_.l: Dr. ( ?) Cr. (t)
(r) l)r 23,50,000
(irxdwillAy'c Dr. 50,000
'lir t-iabilitics &c 6,00,0(x)

'tlll
Sample Papers Ig
.\
jI
N\\
 -lb
Mithoo l.td. 4,./c It3,U),(XX)
(Bcing Business purchased ol Mithoo Ltd
comprising ol Assets and Liabilities)
(,i) Mithoo Ltd. A"/c Dr llJ,(x),(xx)
l,oss on Issue of l)ebentutes A,/c Dr :J,(N),(X)0

To 97c Debentures A/c 20,00,000

Tb Premium on Redemprion of Debentures ,fy'c I,00,000
(Being Debentures issued to Mithoo l-td. at
Discount of l0% redeemable at Premium of5%)
OR
In the Books of Random Ltd.
ournal
Date Particulars I,.F. Dr. ( t) Cr. ( ?)
(,) Assets ,Ay'c Dr 45.00,000
'lb Liabilities A,./c 6,40,000
'lir Mature [,td. AJc 36,00,000
Tb Capiral Reserve A,/c 2,60,000
(Business purchased of Mature Ltd. comprising
of Assets and Liabilhies)
(,,) Mirhoo l,td. A,./c [)l 3ti,(x).(xx)
Tb Rank A"/c 1,50,000
To l2% Preference Share Oapital A,/c 30,00,000
'lir Securiries Premiunr Reserve A,,/c 4,50,000
(Being payment made to Mature l.rd, arld l2E(
preference shar-es issued (rr l5% premium)

Working Note;
No. ofShares to be issued = 34,50,000/l l5 = 30,000 shares @ 100 + t5 each
20. Journd Entry
l)att: Particulars l-. F'. Dr. (?) Cr. ( ?)
2022 Nobira's Capital A,/c Dr', 2ri,6(;7

Apr I To Dorem()n's Capilal A/c 2(;.{i(i7

(Being goodwill adjusted at the time of change in
grr olit-sh:rring t'atio)

Workings:
(i) Calculation of gaining or sacrificing ratio:
Dorem<rn's gain or sacrifice = 316 - 216= l/6 (sacrihce)
Shinchan's gain or sacrifice = 2/6 - 2/6 =0 (Nil)
Nobita's gain or sacrifice = 116 - 216 : ( li6) (gain)

rllll

20 AccoLrntancy Xll
h,, -
 (ii) Calculation of goodwill:
Calculationof Normal Profi t
Year Iinded Profft/ Loss AdjustEients Normal Profit
3l st March.20l9 4,0,000 50,000
31st March.2020 1,20,000 I,20,000
3lst March.202l I,tt0,000 t,rio,000
3l sr March.2022 (70,000) (30,000)
i-n),000 - 10,000
Tirtal J.:0.000

Goodwill =Average Profits x No. ofyears' Purchase

Average Prolits : Total Normal Profits/Nurnber of years

= 3,20,000/4 = 80,000
Goodwill= 80,000 x 2= t 1,60,000

Doremon's share ofgoodwill= 1,60,000 x li6= {26,667.

2l In the Books of A.ltaur Ltd.
Balance Sheet (Extract) as at..,.,
Particulars Note No. Currert Year (l) Preyious Yeer ( ?)
Equitv and l-iabilities
Shareholdcrs' Funds
Share Oapital (i3,25,000 \il
Notes to Accounts
Particulars -\mrruru (l)
l. Share Capital
Authorised Share Capital
25,00,000 Equity Shares @r ? l0 each 2,50,(x),0(x)
1,50,000 97o Preference Shares (ai I 100 each I,50,(X).(XX)
4,00.(x),00r)
Issued Share Oapital
8,00,000 Equity Shares (d ( l0 each lJ ( ) , ( ) ( ) , ( ) ( ) r )

Subscribed Sharc Capital

(i) Subscribed and Fullv Paid up
(ii) Subscribed but not Fully Paid up
8,00,000 Equity Shares @ ( tl each (i-1,00,(xx)
less. Calls in Arrears (15,000 x (5) 75.(X)0 (i3.2i,.(xx)

tllr

Sample Papers 2T
'.rN
 In the Books of Charu, Dhwani, Iknoor and Paavni
Journal
Datc Particulars L. F. Dr. ( ?) Cr. ( t)
(,) Dhwani's l,oan A,/c I)r. 50.o(x)
'lb Bank A,/c 42,000
'lb Realisation A'/c IJ.000

(Being Dhwani's l,oan of f 50,000 settled at

142,000)
(?/) Paavni's [-oan A,./c Dr. {{ ).o(N )
-li) Realisation fuc -lo.(x){)

(Paavni's Loan of 140,000 settled by giving an

unrecorded asset)
(ttt) Realisation A,/c I)r t;r ).(,tlt r

'Ib l,oan to Clharu A,/c (io.(x)0

(Loan to Chatu was settled by payrnent to

Charu's brother Loan)
(n,) Iknoor's [-oan AJc I )r ir( ).(x x )

'Iir Realisarion A,/c ti0,ooo

-lir Bank A,/c 20,(xx)
(lkno()r's Loan ol t 80,000 w:rs scttled and
Machinery lvas given I)ilr I Patment and resl
throLrgh bank)

23. In the Books ofOTUA Ltd.

Journal Entries
Date Particulars L.F: Dr. (l) Cr. (?)
(/) Ilank,Vc l )r. 3.1.(x).o0o
'lir Equity Shale Appli< atiorr A,,/< 3.1.{X).(X)o

(.\l)l)li(.rl i(nl llxrr( \ r', r cir t rl oIr lli.(X)0 slrrrcs)

(t/ ) l,<1uitr Share Application,Ay'c I)r. l+.00.{)(x)
'lr) l-quity Shalt (]nPital AJc ({i0.0(X) x {'10) 2{,00.(x)0
.li) rV< ( lir.000 x 140) (i,00,(xx)
llquity Shure Allotment
'li) Bank .Vc ( l0.t)00 x (40) -1,00.(x)0

(.\pplicati()n mortct tralrslerrcd lo sharc

(.,1 rital, shalc allotntcttt an<l r-cntairrirrg rel tr<lt'rl)

lui) lilritl Shar-e Alkxntcnt A,/c l)r ] | .(X).(X)0

'li) Equity Share (lapital Ay'c (60.0(x) x {60) t{;,00,(xx)

'lir Securitics l\'ctltittnr,4'./( ((;0.(x)0 x ?25) 15.(x).(xlr)

{,\lI)nDent (hrc {nt :-)l;,(XX) sh rts tiilh l\'cnritlDr)

tllt

22 Accountancy Xll
ho,
 (t,) Bank Ay'c I)r 42,00,000
Calls irr Arrears A,./c l)r' 3,00,000
1ir Equity Share Allotnrcnt A/c 15,00,(xx)
(All()tnrent receivcd on 56,000 shares
t,) Equity Share Oapital.A"/c l)r 1.00,000
Securities Prernium A,/c I)r t,00,(x)0
-lir Share tirrfcited A,/c 2.00,0(x)
'lir (lalls in Arrears A,/t: 3,(Xl.(XX)
(4,000 shares forfeited lbr non-payment of
allotment money)
Bank A/c [)l 2,,10,000
Share Forfeited AJc I)r: tto,000
Tb Equity Share Capital A"/c J,0().(xxr
(3,000 shares re-issued @ ( 80 per share)
Share Forfeited A./c l)r'. !().( xx )

'Iir Capital Reserve A,/c 1)t).{)oo

(Cain on re-issue o{ fiorlbited shares transferred

to c.rpital reserve)

Working Notes;
l. No. of'shares applied by Anand = 4,000 x 5/.1 = 5,000 shares
Amount paid by Anand on Applicarion (5,000 x t40)= < 2,(X ),(X X )

Amount requirecl on allotecl shares (4,000 x {40): < l,(i0.(xx)

Excess application money adjusted on allolment= (-lo {x)0
Anrount due <>n Allotmcnt (4,000 x {u5)= <3,,10,(XX)
Less: !)xccss appli(:atk)n money adiusted <.10.{ n x)
Arntlunt not reccived on Alkrtment by Anand {3.(x),(xx)
2. Calculation of arnount transferred to (lapital Revenue: (t)
furxrunt fbrleited on 3,000 shares (z,oo,ooo,ffi) 1,50.000
Discount on rcissue ofshares 60,000
Amount trans{crred to (lapiral Reserve ETo0m
OR
In the Books of Vikram Ltd.
Journal
Date Particulars L.n Dr. ( t) Cr. ({)
(r) Sharc (iapital &c l)r. :,O.()O0
'Iir Share Iorlcited A,./c IrJ.(X)0
-lir (lalls
in ,\rtcars.l,,/<- 12.(x )0

(5,000 shares Iirrfeitetl lirl norr-l)al urcDl ()l

allrxnrcnr and call nronry)

!l|'
Sample Papers 23

"NL
 (r,) Bank A,./c I)r: 36,000
'lb Share Oapital A"/c 30,000
To Securities Premium Reserve A,/c 6,000
(3,000 shares re-issued @ ? l2 per share)
0,,) Share Forfeited tuc I )r: 10,800

Tb Capital Reserve Ay'c lo.n(x)

(Gain on re-issue of forfeited shares
transferred to capital reserve) !8,000
x 3,000/5,000)

(,,) In the Books of Ralan Ltd.

Journal
Date Particulars L.F. Dr. (?) Cr. ( ?)
(,) Share Capital A"/c (3,000 x ?7) Dr. 2l,000
'Io Share tbrfeited A,./c x ?5)
(3,000 ll-,.(xX)
'lo Calls in Arrears A,/c (3,000 x ?2) ri.(x)0
(3,000 shares forfeited for non-payment of lst call
money)
(,,) Ban k A,/c l)r 20,000
To Share Capital A"tc 20,(x)0
(2,000 shares re-issued @ I l0 per share)
(iir) Share Forfeited A,/t [)r'. t0.(x)()
'Ib C,apital Reserve A,/c I O,0(X)

(Gain on re-issue of forleited shares

transflerred to capital reserve)
u5,000 x2.000/3,0001

24- Dr' Revaluation Account (:r.

Paniculars ( r) Paniculars (?)

To Partners' Capital A/c: By Plant and Machinery A'/( t4,000
x 19,200 By Buildings A,rc I I ,000

12.800 32,0(X) By Provisions lbr Doubtful

Debt A,./c 7,000
3:.1.0{ n } :|2.0(x)

I)l Partner's Capital Accounts (;I

Parriculars x 1' ?. Particulars x Y z

Y s Currcnt 2.1.0(X) Balance tr/d |, t9,000 |,12,000
^,,/(
Balance rld l,(ill,o00 I,12,(XX) 5{i.0(x) Bank Ac r-n;,000

Z's Currcnt A,/c 8..1(X) r-r.600

rlll
24 Accountancy-Xll
 ( ;.neral Reserve AJc 8,400 5,600
Revaluation A,,rc 19,200 I2,800
X's (]l'rrent A,/c 13,000
I,6IJ.0(X) L36,000 5{i o00 (;iJ 0(x) 3 56,000

Working Notes:
l. Z's share in Goodwill : t 14,000
= ?84,000 x l/6
2. Calculation ofnew profit-sharing profit :
Z's share = l/6, Remaining share : I -116 = 516

X's new share = 516 x 315 = 15130

Y's new share = 516 x 215 = 10130

New profit-sharing profit of x,YandZ= #,*'*

=3:2:l
3. Adjustment of Capitals
Z's Capital = ?56,000
Total Capital offirm : 56,000 x 6/l : t3,36,000
X's Capital = 3,36,000 x 3/6 : t1,68,000
Y's Capital = 3,36,000 x 2/6 = t1,12,000
OR
Dr. Revaluation A"/c (lr.
Particulars (?) Particulars (r)
To Provision for Doubtful Debts .100 By Building A,/c 7,000
To Partner's Capital A/c:
P 3,300

Q z,zoo
R 1.100 6,600
7,000 7,000

l)r'. Partner's Capital Accounts Cr'

Particulars P () R Particulars P a R

To Goodwill A,,/c 13,500 4,500 By Balance b/d 15,000 10,000 10,000

To Pro6t & Loss 4,,/c 600 400 200 By Revaluation A,,/c 3,300 2,200 I,100
To Cash A,/c 2,800 By Goodwill A,/c 9,000 6,000 3,000
To Q's Loan A,/c t5,000 By R's Current,Ay'c 1.900

Ib P's Currenr -A,/c 1,900

To Balance dd 11,300 I t,300

27.300 t8,200 l{i,0(x) 27,300 t8.200 16.000

rlll
Sample Papers 25
 Working Note:
Writing offof Goodu'ill =
P= 18,000x3/4={13,500
Q=18,000x1/4=?,1,500
25. Journal
Date Particulars L.E, Dr. (l) C.. (l)
2019 Profit and Loss Suspense y'y'c Dr. 1,20,000

.]uDe 3t) To As Capital .Ay'c t,20,000

(Being share of proht provided till the date of his
death)

Dr. A's Executors A./c Cr.

Date Particulars J.r. Date Particulars J.r.

2019 2019

June 30 :..t0.oo June 30 By As Capital AJc t{,40,000

2020 2020

Mar.3I Io llllarxc r,/tl 6.?7.00r) Mar.3l B) lnteresr lri c l;.ooo

_gl,!l,l 8.67,000

2020 2020

-lune:t{) Ib'lb Bank,lJc 2.:i{i.(xx) ,\pr I lI\ l}tllar( r l,,rl t;,::7.0(J0

2021 lune 30 Bv Inlcresr rvc !r.000

Mar:lI Ib IlxlxD...tl t.l ll.00o 202 r

Mar. 3l t8,000
(i. r'r1 . (X x l (i,a,.1,000

202r 2021

lb BLrDk .&( Apr. I Ilv Ilalance bkl ,1.18,000

June 30 2,2.1,(XX)

2022 June 30 Bv Interest rV( 6.00{)

Mar:31 2,O9,0()o 2022

Mar. 3l l]\ I'rr( rrsr .V( 9,(XX)

{,3J,0(Xr .1.:13.(x)0

!0:2
.lu'r(:]0 Ba'rk,!( :.12,(xnl 202 r

Apr. I llv Balarxe bkl 2,09,000

.lunc 30 li\ l,rr( rcsr ,A,,1. 3,000

2.1ll,(x)0 2,I?.000

lr
26 Accountancy-Xll
 26. In the Books of Health2 Wealth Ltd.
(,,) Journal
Date Particulars L.n Dr. (l) Cr. ( t)
20? I
()cr I

(') Bank A,/c Dr-. :-r:-r .

( )( )
,( )( )( )

Tir Debenture Applicatiorr artd Allotntcnt Ay'c i,i.(Xl.(Xl0

(Application rrroney received)
(//) Debenturc Application and ,\llrtmcnt ,Vc [)r. irir,00,000
l,oss on lssue of'Debentrtres ,ly'c [)r. 10,00,000
'lir li7 l)ebcntures A,/c r-n).00,(X)0
'Ib Securiries Prernium Reserve A,/c 5,00,0(x)
'lb Prenrium on Redernpti()n d Debc'ntrrrcs rvc 10.(x).0(x)
(Debentures issued at prerrtiunr ol l0% to l>e
redeemed at prenriurn of 20%)
([) t)l Loss on Issue of Debentures Account (.r

t)rte Particulars (r) t)atc Particulars (<)

2021
.]o!:

I (kr li, I'rcmiurn ()rr 1o.00.(x)0 :i I Urrr l]\ S(( llr rr(\ l\(nriunr I( 2.r{{),(xx)
Redenrl,ri(,r ()l l)rl)enlllrcs
llv St:rrcllrrllr (n l,r(,lir and 7.:lr.r Iro

10.00.000 lo.0l).tx)0

(.") Journal
Datc Particulars L.E Dr. (() Cr. ( l)
2022 Debenttrr-cs lnterest A,/c l)r: '..t.(x).(x)0
ll I \lar: 'Ii) [).,h.rrt lrreholders -,Vc 'l.oo.(10o
(lnterest drrc I)n debenturcs) (! .00.000 x u/100
x 6/12)
I )elrntrrlclroldlrs .Vr I)r :.1.o0,( x )o
lir l];rrrl ,Vt. '.1.(X).(XX)
(lnterrst |:ritl t() (lebcnItlIch()l(ltIs)
Statemenr ol l'rotit and l,oss I)r 'r llll r rll( I
Ti) l)cbenture lnterest ,Vc '..1.{x).(xx)
(lntcrest ()n Detrntures chlrged ttr Slatcnrenl ()r-
Prolit and l,oss)
27. (c) Postulates
OR
(r) ()nl1 (ir) ancl (iii) are correct
28. (D) l1 tiurcs
29. (r/) Subtracted undcr'Operating Actir,ities as l,xtlitor(linar)' Ilertt irtrd ltrflow ttlrcler
I nvesting Activitics also

'lllr'
Sample Papers 2t
\\
 OR
(c) Added t I,30,000 under Operating Activities as Loss on Issue of Debentures
written offand Inflow oft 18,00,000 under Financing Activities
Hint:
Total Loss on Issue of Debentures = t2,00,000 (diroung + {3,00,000 (Premium oo
Redemption)
= (5,00,000
Loss tobe written offfrom Statement of Profit and Loss = ?5,00,000 - t 3,70,000
= { I,30,000
30. (r) t l,02,000
Hint;
Dr. Office Equipment Account Cr.
Particulars (.) Parliculars ({)
fo Balance b/d 3,00,000 By Depreciarion A,./c 40,000
fo Cash A,./c (Purchase) 30,000 By (iash A,,/c (Sale) (Bal. Fig.) 1,02,000
Ry Balance dd 2,00,000
lir Statenrcnt ol l\rrlit and 12.(xx)
Loss (t\'olit)
3,.12,000 :t'4, p00

31.
Item Heading Sub - Heading
(i) Ourrent maturities oflong (,rrrreot l,iabilitics Short-ternr borrowings
term debts
(ii) Furniture and Fixtures N()rr-(lurrent Alscts Fixed Assets (Thngible Asscts)
(iii) Provision fbr Warranties Non-(lurrenr l,iabilities l,ong'l'erm Provisions
(iu) lncome received in (lrrrlent Liabilities Other (lurrent Liabilities
advance
(rr) Oapital Advances Non-{urrent Assets I-ong-[-erm Loans and Advances
(ui) Advances recoverable in Current Assets Shorr'ferm Loans and Advances
cash within the operation
cycle

32. Variations of Accounting Practices as a Limitation of Ratio Analyais is highlighted in

the given statement
Two Other Limitations:
(i) lt ignores price level changes as a change in price level makes analysis of financial
statements of different accounting years invalid.
(ii) It ignores quantitative aspect as the quality of management, quality of staffetc. are
ignored while carrying out the analysis of financial statements.
33. Return on Investment = EBI'I'/ (lapital Empkryed x 100
= 15,00,000/ I,20,00,000 x 100 = 12.5%t
Capital Empkryed = l2% Preference Share Capital + Equity Share Capital + Res€rves

rlll
28 Accountancy-Xll
-1
 and Surplus + l5% Debentures * l07o Bank Loan
= 30,00,000 + 40,00,000 + 10,00,000 + 20,00,000 + 20,00,000
(
= t,20,00,000
EBIT = Profits after'Ibx + 'Ihx + Interest
= 6,00,000 + 4,00,000 + 5,00,000 = ( 15,00,000
Net Assets Tirrnover Ratio = Revenue from Operations/Capital Employed
= 3,60,00,000i 1,20,00,000 : 3 times.
OR
(i) Ratio will improve. Reason - Oapital Employed will decrease and Debt will remain
same
(,,) Ratio will remain same. Reason - Both Debt and Capital Employed will remain same.
(iii) Ratio will decline. Reason - Debt will decrease but Capital Empkryed will remain same.
(iu) Ratio will decline. Reason - Capital Employed will increase but Debt will remain same
t4. l Net Profit before tax and extraordinary items
=Net Profit for the year+ Interim Dividend + Loss ofassets due to fire +
Provision for Tax * Proposed Dividend - Insurance claim received for Loss due to
Fire - Tax refund
= 7,50,000 + 90,000 + 20,000 + 80,000 + I,60,000 - 10,000 - 20,000 =
t 10,70,000
2. Operating profit before working capital changes= Net Profit before tax and
extraordinary items * Adjustments for non-cash and non-operating expenses
and goodwill amortised - Adjustments for non-cash and non-operating incomes
= (10,70,000 + 40,000 + 70,000 - 30,000) = 11,50,000
Working Note:
Goodwill amortised = Opening goodwill + Goodwill purchased - Closing goodwill
3. Cash flow from Invesring Activities
= Interest on Non-Current Investments + Insurance claim for loss ofassets due to
hre - Purchase of Investments - Purchase of Machinery - Goodwill purchased
: 30,000 + 10,000 - 1,00,000 - I ,60,000 - 20,000 = { (2,40,000) Outflow
4. Cash flow from Financing Activities = Raise of Bank overdraft - Interim Dividend
Paid - Final Dividend paid
: 50,000 - 90,000 - 1,60,000 = I (2,00,000) Outflow
5. Closing Cash and Cash Equivalents = Cash in Hand + Investment in Marketable
Securities = 2,00,000 + 1,50,000 =(3,50,000

ll!

rll

Sample Papers .\
29 .\\\
.r\\\\\\ .\
 , SAMPLE PAPER
[SOL\IED]
I
Time Allowed: 3 hours Max. Marks: 80

Generol Instructionst Sant d.\ OBSI| San/h Qut:lion lhlnr-2022-21 (*lwl )

PART-A
(Accounting for Partnership Firms and Companies)
l. Manoj, Pr-ince anrl Asha ale partrrers in a firtrt sharitrg profits and losses in the ratio of'
-fhe1 K:rjal flol l/.lrh share u'ith effect liont lst April 2022. AIr extr:rct ol
2:2:l. adrlittctl
their lJalance Shect as at i]lst March,2022 is as lirllows:

Liabilities (() Assets (r)

\\irl.krrren ( irnrpt rrsat ion Rt scr-r't :.l.l o.orx)

lfthe claim for workmen compensation is estimated at ?3,00,000, which of the following
accounts will be debited and by what anrount?
(a) Workmen compensation Reserve by {60,000
(D) Provision for \,\'orknten Compensation Reserve by {60,000
(r) Revaluation Ay'c by (2,40,000
(d) Revaluation A"rc by t60,000.
2. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Under fixed capital accounts method, the original amount brought in by
the partners as remain constant or unchanged unless additional capital
is introduced or capital withdrawals are made.
Reaeon (R): Under fixed capital acc(runts method, Partners' Capital Accounts and
Partners' Current Accounts are maintained.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
ofAssertion (A)
(b) Roth fuserrion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of fusertion (A)
(r) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is talse but Reason (R) is true
3. At the time offorfeiture, share capital account is debited with:
(a) Market value ofShares (6) Paid-up value ofShares
(r) Oalled-up value ofShares (d) Nominal value ofShares

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30 Accountancy-Xll
 OR
Shashi Ltd. issued 6,000 Debentures of { 100 each at a premium of { 10. It will credit
[)ebentures Account by:
(r) t6,60,000 (r) (6,00,000
(c) (4,50,000 (d) None of these
4, U, V and W are partners sharing prohts in the ratio of 2:3:5. They decide to share
future profits in the ratio of5:3:2. 'l'hey alsr-r decide to record the effect ofthe following
revaluations and reassessments without affecting the book values ofassets and liabilities
by passing a single adjustment entry:
Book Value ({) Revised Value ({)
[-and and Building 3,00,000 3,50,000
Furniture I,50,000 I,00,000
Sundry Creditors 60,000 20,000
Outstanding Salaries 10,000 15,000
The single adjustment entry will be:
(a) Dr. W and Cr. U by {10,500 (D) Dr U and Cr. Wby {10,500
(c) Dr. V and Cr. U by {10,500 (d) Dr. W and Cr. V by ?10,500
OR
Arun, Ajay and Dinesh are partners in a firm. At the time ofdivision ofprofit for the year
thcre was dispute between the partners (due to absence of deed); profits before interest
on partner's capital was ?60,000 and Ajay demanded interest @247a p.a. on his loan of
?8,00,000. Amount payable to Arun, Ajay, Dinesh respectilely will be:
(a) ?20,000 to each partner.
(D) Loss of? 44,000 for Arun and Dinesh and {jay will take home {1,48,000.
(r) t 4,000 for Arun, ( 52,000 for Ajay and 14,000 for Dinesh.
(d) ? 24,000 to each partner.
5, W and Q are partners with capitals of t20,00,000 and ?16,00,000 respecdvely. 'I'he
Partnership Deed provides for interest on capital @llVc p.a. lfthe firms earned a proftt
of { 2,70,000 for the year ended 3 I st March, 2020, then lnterest on Capital respectively
credited to the Partners Capital Accounts was:
(a) { 2,00,000 and < 1,60,000
(6) ( 1,35,000 and t 1,35,000
(r:) No interest on capital will be alhwed
(d) ( 1,50,000 and t 1,20,000
6. Which ofthe following statements is incorrect about debenturesi'
(a) Interest on debentures is an appropriation ofprofit.
(D) Debentureholders are the creditors ofa company and shareholders are the owners
ofa company.
(c) Premium Payable on Redemption of Debentures is shown as 'other non-current
liability' under Non-current Liabilities in Equity and Liabilities part of Balance
Sheet.
(d) Issue ofDebentures as collateral security means issuing debentures as an additional
security that may be oflered against the loan in addition to principal security.

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Sample Papers .r\
31
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 OR
If debentures of t 9,00,000 are issued for consideration of net assets of t 10,00,000,
then the difference of{ 1,00,000 will be credited to:
(a) Goodwill AJc (D) Capital Reserve A,/c
(c) General Reserve A,/c (d) Statement of Profit and Loss
7. Apaar Ltd. forfeited 4,000 shares of (20 each, fully called up, on which only applic'ation
money of(6 has been paid. out ofthese 2,000 shares were reissued and ?8,000 has been
transferred to capital reserve. Calcirlate the rate at which these shares were reissued.
(a) {20 Per share (6) { l8 Per share
(c) (22 Per share (d) (8 Per share
8. Srishti, Nitya and Anand were partners in a firm sharing profis and losses in the ratio
of 3 : 2 : I . Srishti retired from the firm selling her share of profis to Nitya and Anand
in the ratio of 2: l. The new profit sharing ratio between Nitya and Anand will bc:
(al 3:2 (b) l7:ll
(c) 2:l (d) l9:ll
OR
Interest on capital is provided to partners, when:
(a) Capitals are more than ?5,00,000
(D) A loan is provided by partner
(c) Drawings are not made by partners
(d) It is provided in the partnership deed
Read thc folbutitg @othetiea,l situatio4 aaswer qtnzstioru no. 9 and 10.
Maanika, Bhavi and Komal are partners sharing profits in the ratio of 6;4;1. Komal
is guaranteed a minimum profit of < 2,00,000. They have contributed a capital of
t8,00,000, <5,00,000 and t3,00,000 respectively. During the Covid-19, the lockdown
alfected their business adversely. The Firm incurred a loss of (22,00,000 for the year
ended S lst March 2021.
Any deficiency in guaranteed proht of Komal will be borne by Maanika and Bhawi.
Following is thejournal enry passed for the deficiency borne by the partners.
Journal
Date Particulars L.F. Dr. (l) Cr. (l)
2020
Mar. 3l Maanika's Capital A,/c Dr
Bhavi's Capital A!/c Dr
To Komal's Capital A,/c
(Being the deficiency of Komal met by Maanika
and Bhavi)
9. Net Loss transferred to Maanika's Capital Al/c will be:
(a) {2,40,000 (r) < 1,20,000
(c) 112,00,000 (d) { 14,40,000

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32 Accountancy-Xll
 10. Net Loss transferred to Bhavi's Capital will be:
A"/c
(a){8,00,000 (r) ?9,60,000
(
(r) I,60,000 (d) ?3,20,000
ll. Which of the following will be credited to Profit and Loss Appropriation A,/c?
(i) Interest on Partners' Capital (ii) Interest on Partners' Drawings
(dii) Net proht from Profit and l-oss A,/c (iu) Partners' salaries
(a) Both (i) and (iii) (6) Both (ii) and (iir)
(c) Both (iji) and (iu) (d) All (r, (ii), (rii) and (iu)

12. A machinery for t1,25,000 was purchased from I.K. Machines Ltd. The payment was
made by issuing equity shares of? l0 each at a premium of 25Vo. Which ofthe following
journal entry is correct?
(a) I.K. Machines Ltd. Dr. { 1,25,000
To Equity Share Capital .A'lc < I ,25,000
(b) LK. Machines Ltd. Dr. t t,25,000
'lo Equity Share Capital 1,,/c t I,00,000
To Securities Premium Reserve A,,/c ?25,000
(r) I.K. Machines Ltd. Dr. { 1,25,000
To Equity Share Capital A,/c ( I,00,000
To Bank A,./c ? 25,000
(d) None of the above
13. Ifshares are issued for consideration other than cash, i.e., for purchase ofasses, then
which account will be debited?
(a) Share application account (D) Assets account
(r) Share allotment account (d) Vendor account
14. Asha and Nisha are partners sharing profits in the ratio of 2:1. Asha's son Ashish was
admitted for l/4th share of which l/8th was gifted by Asha to her son. The remaining
was contributed by Nisha. Goodwill ofthe firm is valued at <80,000. How much ofthe
share of premium of goodwill will be credited to the old partners' capital account if
fuhish brings his share of premium for goodwill in cash?
(a) t5,000 each (D) (l0,000each
(r) (40,000 each (d) None ofthese

15. A and B are partners sharing profits in 2 : 3 ratio, having fixed capitals of {3,00,000 and
<2,00,000 respectively. After closing of books for the year 2018, the clerk realised that
interest on capital was provided @ 6Vo p.a. instead of 87c. The amount of adjustment
entry will be:
(a) (2,000 (r) 46,000
(r) t4,000 (d) None ofthese
OR
On lstJanuary 2021, a partner lends a short-term loan of 150,000 to the firm. In the
absence ofagreement, he will get interest on his loan on 3l st March, 2021 :
(a) t750 (r) < I,500
(c) t2,500 (d) No interest
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Sample Papers c1 '\
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 16. ()n thcbasisof thc lblkrwing clata, lrow much final payment will be macle to a partner on
[irm's dissolution? (]redit balance of capit;rl accotrnt ol'lhe partner was {50,000. Share
of loss on realization amounted t() f 10,000. Firrn's liability taken over by him was for
<8,000.
(a) {:12,000 (lr) ?48,000
(c) (4t),000 (./) ?52,000
17. P, R and S are in partnership, sharing profits in the ratio of 4:3:1. It is provided in
the partnerstrip clccd that on the death of a partner his share of goodwill is to be
lalucd at one hall'of the net prolils credited to lris account during the last three years.
(Accotrnting b<xrks are closed on :'llst March evert'vear.) R clied on lstJuly, 2018. 1'he
firrn's profits for the last 3 years were 20lir-16 ?1,00,(X)0:2016-17 ?60,000; 2017-ltt
(80,000. Oal< ulate R's sh:rre of goodwill and pass the.iotrrnal entr,v
18. B Q and R are partners r+'ith fixed capitals ot'{1,50,000, {1,20,000 and { 1,00,000
respectively.'I-he partnership deed provided frrr the following:
(n) Inter-est on capital at 5q p.a.
(D) Interest on drawings at 6% p.a.
(c) Eaclr partner withdrew {10,000 on ()ctober 1,2022
(/) ?30,000 is to be transferred to a Reserve Account. (e) Profit and Loss to be shared in
thc proportion of 3:2: l.
Net profit of the firm befirrc above adjustrnents was ? 1,25,400.
From the above inlirrmation, prepare Profit and Loss Appropriation Account for the
year ended 3 I st N{arch, 2023.
OR
Kumar and Raia wer-e partners in a firm sharing profits in the ratio o[ 7:3. Their fixed
capitals were Kumar t9,00,000 and Rala t4,00,000. The partnership deed provided for
the Iirllowing but the prolit for the year was distributed without providing fir:
(a) Interest on capital @ 9% per annum.
(6) Krrrnar's salary {50,000 per year, ancl Raja's salary 13,000 per month.
-fhe profit firr the'1'car ended 3lst March, 2018 was t2,78,000.
Pass the adjustmellt entry.
19. D l-rd. purchased net assets worth ?2,00,000 from E l-td. on lst April, 2022. ?50,000
were paid immediately and the balance was paid by issue of ( I ,60,000, l27c f)ebentures
in D l-td. Record the necessary jr)urnal entries for recording the transactions in the
lrrmks of D [-td.
OR
On lst Jan., 2022 the hrst call of (3 per share became due on 1,00,000 equity shares
issued by Kamini Ltd. Karan a holder of 500 shares did not pay the first call money.
Ariun a shareholder holding 1,000 shares paid the second and hnal call of t5 pcr share
along with the first call.
Pass the necessary .journal entry ftrr the amount received by opening 'Calls-in-Arrears'
and '(lalls-irr-Advance' Account in the b<xrks of the company.
20. Raj, Shammi and Shashi are partners sharing profits and losses in the ratio of 5:3:2.
They decided to share firture profits and losses in the ratio 2 : 3 : 5 with effect from lst
'rl|'
34 Accountancy Xll
/il,,
 April,2022. Following items appear in the Balance Sheet as at 3l st March, 2022:
General Reserve ( 1,50,000 Advertisement Suspense A,,/c (Dr.) t 1,00,000
Contingencies Reserve (50,000 Profit and Loss Account (Dr.) ?75,000
Pass necessary Journal entries.
21. Bliss Products Ltd. registered with capital of t 90,00,000 divided into 90,000 equity
shares of { 100 each. The company issued prospectus inviting applications Ibr 50,000
equity shares oft t 00 each payable as { 20 on application, { 30 on allotment, { 20 on first
call and balance on second call.
Applications were received for t40,000 shares. Raman to whom 1,600 shares were
allotted failed to pay final call money and these shares were forfeited. Out of these
forfeited shares,600 shares were reissued to Sukhman, credited as fully paid for { 90
per share.
Present the Share Capital as per Schedule III
ofCompanies Act, 2013.
22. Rajat and Joe were partners in a firm, manufacturing polythene bags. After the strict
ban on the use of polythene bags by the Government of India, the partners decided
to dissolve the firm. Following is the Balance Sheet of Rajat and Joe as on 3lst March,
2022:
Balance Sheet
Liabilities (?) Assets (?)
Rajafs Capital r0,000 Buildings 15,000

Joe's Capital 10,000 PIant 20,000

General Reserve 10,000 Goodwill 4,000
Mrs. Rajat's l,oan 5,000 Investments 10,000
Mrs. Joe's l,oan 10,000 Stock-in:Irade 5,000
Sundry Creditors 30,000 Debtors 20,000
Bills Payable 8,000 Less: Provision 2.000 IU,000
lnvestment Fluctuation Reserve I ,000 Cash at Bank u,000
Cash in Hand 500
Profit and Loss Account 3,500
li,1 000 lJ.1 000

On the above date, the firm was dissolved and at that time:
Creditors and bills payable were due, on an average basis, one month after 3l st March,
but they were paid immediately on Slst March, @ 6% discount per annum.
There was an old manulhcturing machine in the firm which had becn written off
completely from the books. It was now estimated to realise (11,000. lt was taken away by
Joe at this estimated price.
Realisation expenses of t4,800 were to be borne by Rajat- However, they were paid by
Jo..
On the basis of the above information, you are to suggest the answers of the following
questions at the time ofdissolution:
(i) What will be the required amount to be paid to the creditors?
(li) What amount will be paid to bills payable? ,ll,
Sample Papers 35
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 (iii) How will old manufactrrring machine be recorded at the time of dissolution of the
firm?
(irr) How will the realisation expenses be recorded in the books ofaccounts?
23. X Ltd. has offered 50,000 eqtrity shares of{100 each at a premium of?20, payable as
follows:
Application {50
Allotment t40 (including premium) and balance on first and hnal call.
The bank account of the company has received t35,00,000 on account of share
application money.
X Ltd. decided to allot shares to all the applicants on Pro Rata basis. The balance in calls
in arrears account at the time of allotment and first and final call amounted to ( 1,00,000
and { 1,.110,000 respectively. These shares were forfeited and reissued at (90 per share as
fully paid up. MakeJournals in X Ltd.
OR
Record the.fournal entries for forf'eiture and reissue in the following cases:
(a) x Lrd. forfeitcd 200 shares of { 100 each, T70 called up on which the shareholders
had paid applicati<>n and allotment money of{50 per share. Out ofthese, 150 shares
were reissued to Naresh as {70 per share paid up for {80 per share.
(D) Y Ltd. forfeited 180 shares of Tl0 each, {8 called up, issued at a premium of {2
per share to 'R' for non-payment of allotment money of {5 per share (including
premium). Out ofthese, 160 shares were reissued to Sanjay as {8 called up for {10
per share fully paid up.
24. On 3lst March,2022, the Balance Sheet ofW and R who shared prohts in 3 : 2 ratio was
as folkrws:
Liabilities ( r) Assets (r)
Creditors 20,000 Cash 5,000
Profit and Loss Account 15,000 Sundry Debtors 20,000
Capital Accounts: Less: Provision 700 19,300

w 40,000 Stock 25,000

R 30.000 70,000 Plant and Machinery 35,000
Patents 20,700
1,0ir,000 I,05,00t)

On this date, B was admitted as apartner on the following conditions:

(a) 'B'will get 4/l5th share ofprofits.
(D) 'B' had to bring ? 30,000 as his capital to which amount other Partners' Capitals shall
have to be adjusted.
(c) He would pay cash for his share of goodwill which would be based on 2.5 years'
purchase ofaverage profits ofpast four years.
(l) Ihe assets would be revalued as under:
Sundry Debtors at book value less 57o provision for doubtful debts, Stock at ?20,000,
Plant and Machinery at {40,000.
(e) The prohts ofthe firm for the years ended on 3l st March,2019,2020 and 2021 were
< 20,000, < 14,000 and ? 17,000 respectively.
Prepare Revaluation Account and Partner's Capital Accounts.

lll
36 Accountancy-Xll
 OR
Anita, (laurav and Sonu were partners in a lirm sharing profits and krsses in proportion
to their capitals. Their Balance Sheet as at 3lst March, 2022 was as lirlkrws;
Liabilities (?) Assets (r)
Capitals: t.and and Building .5.(X).O(X)

Anita 2,00,000 Investments 1.20,0(x)

Gaurav 2,00,000 Debtors I,50,000
Sonu 1.00.000 5,00,000 less. Provision for
Investment Flucruation Fund 40,000 doubtlul debts 10.000 I,.1o,(xx)
General Reserve 30,00t) Stock l .u).00o
Creditors 4,60,000 Cash at Bank 1,70,(xx)
t0,30,(xx) 10,3{).000

On the above date, Anita retired from the firm and the remaining partners decidcd to
carry on the business. It was agreed to r-evalue thc assets and reassess the liabilities as
follows:
(t) Goodwill of the firrn was valued at { 3,00,000 and Anita's shale of goodwill was
adjusted in the capital accounts o[ thc rcmaining parrtners, Gaurav and Sonu.
(ii) Land and Building was to be brought up to 120% of its books value.
(dii) Bacl debts amountcd to {20,000. A provision frrr doubr[ul debts was to be rnaintained
at l0% on debtols.
(iu) Market value ol investments was { I, t0,000.
(u) ? 1,00,000 was paid immediately by cheque toAniraourof rhe arDorrnr due and the
balance was to be transferred to her loan account which was to bc paid in two annual
instalments along with interest @., t0% p.a.
Prepare Revaluation ,\ccount and Partner's Capital Acc()unts.
25. Banwari, (iirdhari and Murari are partr)erc in a lirnr sharing profirs and losses in
the rati(, of 4:5:6. On 3[st March,2014, Girdhari retired. On that datc the capitals of'
Banwari, Girdhari and Murari bef'ore the necessary adjustments stood at {2,00,000,
T 1,00,000 and {50,000 respectiyely. ()n (}irdhari's retirement, go<xlwill ofthe lirrn was
valued at ?1,14,000. Rcvaluation of assets and reassessnlcnr of liabilitics resulted in a
prolit of'{6,000. (}eneral Reserve st<xrd in the bot-rks ol the firm ar <30,000.
The amount payable to Oirdhari was lransfbrred to his kran account. Banwari and Murari
agreed to pay Girdhari two yearly instalmenrs o{ ( 75,000 cach inclu<ling intcrest (o l0%
p.a. on the outstanding balance during the first two ycars and the balance inclucling
interest in the third year 'fhe firm closes its books on i) I st l\{arch everv year.
Prepare ()irdhari's kran account till it is linally paitl slrowing rhe workitrg notes clcarl\'.
26, KTR l.td. issued 365, 9% Debentures of {1,000 cach on 4tlr March, 2016,
Pass .necessary journal entries {br the issrre ol debentures in the fbllowing
srtuatrons:
(a) When debentures wcle issued at ltar', r'edeemaltlc at a plernirrrn ol l07.
(6) lVhcn clebenturcs were issued at ti1 (lis(r)utr], r'e<lrctrrablc ar 5.2 prcrniulr.

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Sample Papers 37
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 PARI-B
(Analysis of Financial Statements)
27. Which of the following is not classilied as Short-term Provision?
(a) Provision for 'Ihx
(D) Provision for Employee Benefit Expenses
(c) Provision for Expenses
(d) Provision for Retirement Benefits
OR
Which one of the fbllowing is correct?
(i) Working Oapital 'l-urnover Ratio establishes a relationship betwcen Net Revenue
from Operations and working capital ofa company.

rirr.,vcr Rati. : **'#utt['itill'foj#i'"*

1ii,r Inventory
(iir) The higher tlre lnventory Turnover ratio, the better it is.
(irr) A higher Inventory Tirrnover Ratio always means higher profits.
Choose the correct option:
(a) Only (i) and (ii) (D) {)nly (i) and (iri)
(r) Only (ri), (iii) and (ir) (d) A.ll (t), (ii), (iii) and (iu)
28. 'I'here are current liabilities t3,00,000, current ratio 3:l and liquid ratio l:l ol'a
cornpany. 'I'he valuc of inventory will be:
kr) ( 1,50,000 (r) (4,50,000
(r) ?3,00,000 (d) {6,00,000
29. Balance Sheet (an Extract)
Equity and liabilities 3lst March, 2019 3l st March,2020
Ilr,i l)t.lrclrtu|t s 2,00,0{x) t.ri0.(nx)
Additionat Information:
Interest on debentures is paid on half yearly basis on 30th September and 3lst March
each year.
Debentures were redcemed on 30th September, 2019.
How much amount (related to ab()ve informaftrn) will be shown in Financing Activity
for Cash Flow Statement prepared on 3lst March, 2020?
(a) ()utflow {40,000 (}) lnflow {42,600
(c) Outflow ?61,600 (d) Outllow ?64,000
OR
Which of the following will be shown under 'Financing Activities'?
(i) Issue ofshares
(ii) Issrre of debentures
(iii) Purchase ofnew Plant and Machinery
(iir) Increase in Inventories
(r,) Bank overdraft raised
(n) ()nly (i) and (ii) 1D) ()nly (iii) and (u)
(c) (i), (ii) and (r,) (d) (,), (,,), (iii) and (u)

'rllI
3B Accountancy-Xll
/h,,
 30. K l,td., a manufacturing company obtained a loan of{ 6,00,000, advanced a loan of
t I,00,000 and purchased machinery for t 5,00,000. Calculate the amount ofC:rsh Flow
from financin g activities.
(a) Cash inflow t5,00,000 (6) Cash inflow ?6,00,000
(c) Cash outflow (5,00,000 (d) Cash outflow (6,00,000
31, State thc major headings under which the following items will be put as per Schedule
III, Part I ofthe Companies Act, 2013;
(i) Long-term investments; (ii) Bills Receivable; (iii) Motor Oar; (iu) Loss on Issue of
Debentures; (r) Securities Premium Reserve (r/) Unclaimed Dividend.
32. The inventory turnover ratio of a Company is 3 timcs. State, giving reason, whether the
ratio improves, declines or does not change because of increase in the value of closing
inventory by (5,000.
33. From the following information, calculatc inventory turnover ratio; Revenue from
operations ? 16,00,000; Average lnventory t2,20,000; Gross l-oss Ratio 5%.
OR
lrom the following information, compute 'Debt to llquity Ratio'.
Particulars (t)
Long-term Borrowings 2,00,000
Long-term Provisions I,00,000
Current Liabilities 50,000
Non-current Assets 3,60,000
Current Assets 90,000
3,1. Following information is related to Liva Ltd.:
Particulars Note 3l st March, 3lst
No. 2021 (() Merch,
2020 ( r)
I. EQUITY AND LIABILITIES
l. Shareholders' Fhnds
(a) Share (iapital 2.10.0(x) I,tto,0u)
(r) RcseNes iind Surplus 1.3!,0(x) 2.1,000
2- Non.currentLiabilities
((l) [,(nrg-tcrtrl b()rro}{ ings l.r-n).(xX) t.50,00t)
3. Current Liabilities
(r)'liade Pavables Culrcnt l,iabilities 7.ir.( )( X, ?i.{ x)( r

Tot l ir.(i7.(XX) 3.ri l.o00

II. ASSETS
l- Non-currenl Assets
(n) Fixrd .{ssets
Q) thngiblc;\sscts 2.1ll.oo0 2.52,{nX)
(r) N()tr-currcllt lDvcstllrcIt lll,ol)0 llJ,(x)0

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Sample Papers
.\
3g
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 2. Current Alret6
(a) Current lnvestments (marketable) 5,1,000 60,000
(D) Inventories 1,07,000 24,000
(r) Trade Receivables 40,000 17,500
(d) Cash and (iash Equivalens 24.000 9,500
Tbtat (xx) :t r{l (x)0
Notes to Accounts:
Particulars Note S lst March, 3lst Mrrch,
No. 2021 (r) 2020 ( ()
Reservet and Surplus
ISurplus (Balance in Statement of Profit and Loss)] 1,32.0(x) 24,000
(,) What is meant by 'Cash Flow Statement'?
(ti) Mention a financing activity of Liva Ltd., while preparing a cash flow statement.
(iil.) Sale of marketable securities at par' would result in inflow, outflow or no flow of
cash? Give your answer with reason.
(n,) Clive one difference between an opera ng activity and an investing acriviry.
(i,) Calculate 'Cash Flow from Investing Activities' for Liva t-td. for the year ended 3lst
March, 2021.
(r,, ) How will you treat the increase in trade receivables and inventories while preparing
a cash flow statement of Liva Ltd. for the year ended on 3l st march, 2021 ?

'lt'
40 Accountancy-Xll
 nswel
l. (d) Revaluation Ay'c by {60,000.
2. (a) Both Asserdon (A) and Reason (R) are true and Reason (R) is the correct exPlanation
ofAssertion (A)
3. (c) Called-up value ofShares
OR
(r) {6,00,000
4. (l) Dr. U and Cr. W by ( 10,50t)
OR
(c) ? 4,000 for Arun, { 52,000 for Ajay and ? 4,000 for Dinesh.
5. (d) ? 1,50,000 and I 1,20,000
6. (a) Interest on debentures is an appropriation ofprofit.
OR
(D) Capital Reserve ,4y'c
7. (r) t 18 Per share
E. (c) 2:l
OR
(d) lt is provided in the partnership deed
9. (d) ( 14,40,000
r0. (r) <9,60,000
Hintr
Loss of the firm ?22,00,000

ldd: Komal deficiency 2,00,000

Tbtal Loss of Manika and Bhavi Tjil063-00

Manika Share in Loss = 24,00,000 x 3/5 = 14,40,000
Bhavi Share in Loss = 24,00,000 x 2/5 = t9,60,000
ll. (r) Both (ii) and (iii)
12. (r) I.K. Machines Ltd. Dr. ? I,25,000
To Equity Share Capital A"/c { r,00,000
-Ib <25,000
Securities Premium Reserve Ay'c

13. (d) Vendor account

14. (D) ( 10,000 each
15. (a) (2,000 OR (a) 1750
16. (r) t48,000

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Sample Papers 4I
N
 t7. Journal
f)ate Particulars L.E, Dr. (?) Cr. (?)
20ln P's Capital AJc I)l 36,000
Julv I S's Capital AJc l)r: 9,000
'Ib R's Capital A,ic 45,000
(Being R's share ofgoodwill credited to his
capital account)

Working Note:
Total profrt for last 3 years = I,00,000 + 60,000 + E0,000 = (2,40,000
Net Prolit credircd to R's Capihl Account = 2,40,000 ? 3/8 = {90,000
R's share ofgoodwill is l/2 ofnet profit credited to his capital account during last three
years.
R's share of goodwill = 90,000 { l/2 = (45,000.
t8. Profit and Loss Appropriation Accouot
Dr. lbr the yar rnbd J I sl March, 2022 Cr.
Paaiculars (r) Particulars (l)
To Intcrcst on Capitals: By Prolit and Loss Ay'c (profit) I.?5..1(X)
P 7,500 By lnlcrcsr on Drawings @6% p.a. for
() (i,(xx) 6 months:
R 5.000 Iu,!,(X) P 300
To Reserve A,./c 30,0{)0 Q 300
To Profit transferred to R 300 1)(X )

P's Current Ay'c 3U.1)(X)

Q's Current Ay'c 25,1)33

R's Current A,./c t2.l)(i7 77.8r)0

t,:lriltttrr l.lr, ioll

OR
Statement of Ad ustnrent
Particulars Ifumar ( ?) R"j" Firm
(() (r)
lnterest on capital to be credited 8l,000 36,000 I,17,000
Salary to be credited ir0,00O 36,000 86,000
t,3l,000 72,000 2,03,000
Zrss: Pro6t Shared in profit sharing ratio (profit 1,42,100 60,900 2,03,000
wrongly distributed)
Net Eflect I)r:?ll,l00 (:r{ I I,100

Adjusment Entry
Kumar's (;urrent,4,/c Dr. I l l00
Tir Raja's (iurrent ,Vc I I ,100
( Bcing adjustmcnt entrv rnadc [rrr past adjustrncnr )
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/t, 42 Accountancy-Xll
////r,,.
 19. In the books of D Ltd.
Journal
Date Particulars L.F, Dr. (?) Cr. (?)
2022 Sundry Assets A,/c t)r 2,00,000
Apr I G<ndwill (Balancing Figure)
A"/c t)r' r0,000
To E Ltd. !.10.000
(Being purchase ol net assets)
E l-rd. I)r. 2, 10,000
'ltr Bank A"/c 50.0(x)

To l2% Debentures A,/c t.{n).(xx)

(Being paymcnt ()f purchase consideration ? 50,000
immediately and balance by issue of 12(Z, debentures)

OR
Kamini Ltd.
Journal
Date Paniculars L. [: Dr. ( () Cr. ( t)
2022 Bank A,/c Dr. 3,03,500

Jarr. I (ialls-in-Airears A'/c Dr. I,500

To Equity Share First Call y'y'c 3.(X),(XX)
To Calls-in-Advance A,/c 5r,0(X)
(Bcing call money received except on 500 shares and
received in advance on 1,00O shares)

20.
Date Particulars t,.F. Dr. (?) Cr. ( l)
2022 (ieneral Reserve A,./c [)r: I,50,000
April I Contingencies Reserve A,./c t)r. 50,000
To Raj's Capital A,tc I,00,000
To Shammi's (:apital A/c 60,000
To Shashi's Capital A,/c 40,000
(Being reserves transferred to partners in th€ir old
profit-sharing ratio)
Raj's Capital A"/c l)r: 87,500
Shammi's Capital A/c [)r: 52,500

Shashi's CapitalA,/c l)r: 35,000

To Adverti$ement Suspense A,,/c I,00,000
To Profit and l,oss A"/c 75,000
(Bcing balance of Advertisement Suspense,{ccount
and debit balance of Profit and Loss Account
transferred to partners in their old rati())
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Sample Papers 43
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 21. Extract of Balance Sheet of Bliss Products Ltd.
as at ......
Particulars Notc Current Previous
No. Year (() Ye.r (?)
I. EQUITY AND LIABILITIES
l. Shereholders' Fuods
Share (iapiral I 39,70,000

Notes to Accounts:
Note Parriculars ( ?)
No.
I Share Capital
Authorised Capiaal
90,000 Equity shares ol l 100 each 1)O.{){).O00

Issued Capital
50,000 Equity sharcs of l 100 each f,O.(X),(XN)

Subscribcd Capirel
Subscribed and Fully Paid Capital
:t9,000 Equit),shares o[ ? 100 cach :J1),00.000
,4rld: Forfeitecl Shales ( I,000 ol l 70 ca.h) 70.(xx ) :t1),70.00{)

22. (t The amount to be paid to the creditors at the time of dissolution will be calcularcd as
follows:
Discount on creditors = {30,000, ,ft-><$ = tfSO
Amount to be paid = {30,000 - { 150 = {29,850
(ii) The amount to be paid to the bills payable at the time ofdissolution will be calculated as
follows:
Discount on B/P: t8,000 x ,ft "$ = fnO
Amount to be paid = ?8,000 - ?40 : ?7,960.
(r,, The unrecorded old manufacturing machine taken over by-loe at the time ol dissolution
will be recorded by passing the followingjournal entry:
Joe's Capital .Ay'c Dr. 8,000
To Realisation Ay'c (8,000
(Being the unrecorded machine taken over by Joe)
(ittl The realisation expenses borne by Rajat and paid byJoe will be recorded by passing the
following J<-rurnal entry:
Rajat's Capital Ay'c Dr {4,800
To Joe's Capital A,/c {4,800
(Being expcnses borne by Rajat, paid by Jr.re)

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44 Accountancy-Xll
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 23. In the books of X Ltd.
ournal
Date Particulars L.F. Dr. ( ?) Cr, ( l)
Bank A,/c l)r' 31"r,00,(XX)

To Equitv Share Application fuc 35,00,000

(Being application money received on (70,000
shares @t50 per share) (WN I ))
Equity Share Applicarion A,/c Dr. llir.(X).0(X)
Ttr [.quity Share capital A,/c 25,00,000
To Equity Share AJlotment y'y'c 10,00,000
(Being shares allotted on proportionate basis and
excess amount received on application adjusted
towards allotment)
Equity Share Allotment AJc (50,000 x (40) Dr 20.(x).000
'Io Equity Share capital A,,/c (50,000 x (20) 10,00,000
To Securities Premium Reserve A/c (50,000 x 120) 10,00,000
(Being share allotment money including premium
due)
Bank A,./c Dr. 9.00,000
Calls-in-Arrears A,/c Dr. l 00,000
To Equity Share Allotment A/c 10.00.000
(Being allotment money received, except for 5,000
shares) (WN2)
Equity Share First and Final callA./c Dr. I i.(x),{)(x)
Ib Equity Share capital Nc t 5.00.000
(Being share first and final call money due on 50,000
shares (4,;13 per share)
Bank A,/c Dr 13,50,000
Calls-in-Arrears A'/c Dr I,50,000
To Equity Share First and Final call A,./c l:).00.1xX)
(Being first and final call money received, except for
5,000 shares)
Equity Share Capital A,/c (5,000 x <100) Dr 5,O0,000
Securities premium Reservc A,./c (5,000 x (20) Dr I,00,000
To Shares Forfeited A"/c 3,50,000
'Io Calls-in-Arrears A,/c (? 1,00,000 + t 1,50,000) 2,50,000
(Being 5,000 shares forfeited for non-payment of
allotment money and first aod final call money)
(wN3)
Bank Ay'c (5,000 x a 90) Dr 4,50,000
Shares Forfeited A'/c Dr, 50,000
'lo Equity Share Capital A,,ic 5,00,000
(Being forfeited shares reissued at (90 per share as
fully paid up)
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Sample Papers 45
,N.
 Shares Forfeited A,/c Dr t,00.(xx)
lir Capital Reserve A,./c 3.(X).(X)0
(Being share forfeited money transferred to Oapital
Rcst Irc, i.t,.. <:].:n).(xx) - l5o.(x)0 : {l}.00.0(x)

Working Notes:
l. No. ofshares applied for = t35,00,000/t50 = 70,000
2. Calculation ofamount received on allotment: (?)
Amount due on allotment 20,00,000
Less: Excess application money adiusted 10,00,000
Less: Calls-in-Arrears I ,00,000
Amount received on allotment g-llrmoo
3. Calculation ofnumber ofshares forefeited
t 1,50,000/?30 = 5,000
OR
Date Particulars L.F. Dr' ( <) Cr. { l)
kr) (r) Share (lapital Ay'c (200 x 70) Dr I I,{)(X)
To Share Forfeited A'/c (200 x 50) 10,000
To Calls-in-Arrears A/c (200 x 20) 4,000
(Being forfeiture of200 shares for non-payment of
money)
(ii ) Bank A,,/c (150 x 80) Dr l'.,1.o00
To Share Capital ( 150 x 70) 10,500
Tir Security Premium Resen'e (150 x l0) I,5(X)
(Being Re-isstre of 150 eqrrity share of?70 each, at
premium of? l0 each)
(|l,) Share Forfeited AJc l)r' 7.500
'lir Oapital Reserve A,/c 7,4l(x)
(Being amount transferred ro capital reserve)
(r) (r) Share Capital A,,/c ( 180 x 8) Dr |,440
Securities Premium Reserve ,A,/c (180 x 2) Dr 360
To Share Forfeited A,/c ( 180 x 5) 900
Ti) (;alls-in-Arrears A/c ( 180 x 5) 900
(Being {brfeiture of I ti0 shares for non-payment of
share allotment money)
(,i) Bank A/c (160 x l0) Dr l.(i(x)
To Share Capital A,/c (160 x 8) I,280
To Securities Premium Reserve A/c (160 x 2) 320
(Beinq reissue of 160 forfeited shares)
(lli) Share Forfeited A,/c ( 160 x 5) l)r'. ll(x)
To Capital Reserve A/c 160 x 5) ( tt(x)
(Being amount ofshare forfeiture of 160 shares
translerred to capital reserve)
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46 Accountancy-Xll
h,,
 24. t)r: Revaluation Account ( lr:

Particulars (l) Pa rri c rr la rs ({)

'lir Provision for f)oubtfirl Debts A,rc 300 By Plant and Machinery &c 5.(X)0
'lir Stmk AJc 5,000 By [,oss transferred to:
W's (iapital A,,/c 180
R's (iapitalA,,/c -!:! 3(X)

5,300 r'r,300

l)r. Partners' Capital Accounts ( ir:

Paniculars \t ll) R {l) B (l) Paniculars \r' ({ I R (?) B (l)

Ttr Revaluation I Iio 120 B,v Balance b/d .10,000 :i0.(xx)

'Iir Cash Aq/c J.1):.10 7.:80 Rr I\rrlit :rrtrl l-oss.Vr t),000 (;.0(x)
(Bal. Figure)

lo llalrrrrr t c'rl .11r.5(X ) :t3.0(x) 30,000 Rv (iaslr ,Vr It0,o0o

Ilr I'rcrnirrnt lirl 6,600 .1.-l( )( )

(:,xxluill .\ir
ii.(i(x) lr). lr)0 3{).{)00 :-ri.0{)0 .l0.lo0 :to.00{)

Working Notes:
'I'otal profit
l. Average Profit = _ {66,000 - { l(i,5(X)
No. of years 4
2. Calculation ofGoodwill : Average Profit x No. of Years' of Purchase
= t16,500 x 2.5: t41,250.
3. B's Share in Goodwill = ?41,250 x 4l15 : { I1,000.
4. New Profit Ratio is calculated as under:
Let Total Profit = I, B' Share = 4/l5th share
Remaining Profit : l- 4/15= I l/15
W's Share = I l/15 x 315 = 33175, R's Share = I l/15 x 215 = 22175
New Ratio ofW R and B = 35175 :22175: 4/15 or 33:22:20
5. Adjustment of Capital:
For 4/l5th share, B brought capital : ?30,000
Therefore, total capital ofthe firm = t30,000 x l5l4 = ? I,12,500

W's Capital = I,12,500 x 33/75 = t49,500

R's Capital = I,12,500 x 22175 = t33,000
B's Capital = 1,12,500 x 20175 = <30,000.

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Sample Papers 41
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 6, Dr: Cash Account ( lr.

Paniculars (a) Particulars (t)

To Balance b/d s,000 By W's (iapital l|y'c 5,920
Tb B's Capital A,/c 30,000 By R's Capital A"/c 7,280
To Premium for Ooodwill A,tc r l,000 By Balance c/d 32,800
,l(i,000 .r(;,000

OR
I)r. Revaluation Account (l:
Particulars (l) Particulars (l)
Tb Bad Debrs A/c 10,000 By I.and and Building.4,/c t.00.000
Tir Provision for Doubtful Debts A,,/c 13,000
To Profit transferred ro:
Anita's Capital&c 30,800
Gaurav's Capital Ay'c 30,800
Sonu's Capital A,,/c 15.400 77,0(X)
1,00,000 rp0J)il,
I)r. Partners' Capital Accounts (lr.
Prrticul.rs Ani!. Gaurrv Soou Perticul.rs Ani3s Grurav Sonu
(?) (?) (r) (r) (() (r)
Ii) Anita (lapital ,,Vc 80.000 .10.(xx) B) Balance b/d 2.00,000 2,00.000 1,00.000
Ii) R,nk A./( I.00,lxr0 By (;€neral t 2,000 12.000 6.000

Ib Anita's l-oan A/( 2.7.1,11{)0 By lnvestment t2.000 l'1,(x)0 0,(xx)

flucirrarion
Fund tuc
'I
i, Ealan(c.,d I .71.8(X) r.r7..100 By Gaurav s n0,000
(iapiral Ay'c

By Sonu's (lapital {0.000

By Rcvalualion A'lc 30,80{) lo.llt x ) 15.400

3.7.1,8(n) :..'ll,i{(X) 3.7+.8(nr 2,5{,800 I,27,.1(X)
-l-41!Ll
Working Notes:
L lnvestment Fluctuation Fund required to set offLoss
= Book value of Investment - Market value of Investment
= t1,20,000-? I,10,000 = ?10,000
Surplus of lnvestments Fluctuation Fund 130,000 (?40,000 -t 10,000) is transferred to
all the Partners' Capital Accounts.

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48 Accountancy-Xll
/h,, .
 2. Anita's share of (irxrdwill = t 3,00,000 x 2/ll - t 1,20,000 is t() be debited to (]aurav and
Sonu's Capital At'rrrunts in gaining ratio.
25. Dr. Girdhari 's Loan Account Cr.
Dale Particulars ( r) Date Particulars (<)
20 t5 2014
Mar 3l 'Ii r Ilank Vt 75.000 April t R1 (iir<lhari 's ( )apit:rl 1,50,(xx)

2015
Mar. ll I 'lb Ralance./(l 90,000 Mar. 3l By I n teresr A,,/c 15,000
1.65{)00 t -65J00
2016 2015
Mar. 3l -tb Bank A,/. 75.000 April I Bv Balance b/d 90.(x)0
20lr;
NIar. li I 'Iir Balancc c/d 24,000 Mar.3l Ry Interest rli/c 9,000
99J00 99JU)
20t7 2016
Mar 3l 'lb Bank ,{,/c 26.400 April I By Balancc b/d 2.1,000
20 t7
Mar 3l By Interest A,,/c 2,.100
2(i..100 2(i.100

Working Note:
l)r. Girdhari 's Capital Account ():
Particulars ({) Particulars ({)
lir ( iilrlhali s l.oan .Vc I,50,000 By Balance b/d I,00,000
By Revaluation Profit A,,/c 2,000
By Banwari's Capital A,,/c 15,200
Ry Murari's Capital ly'c 22,800
By General Reserve A,,/c 10,000
1.50.000 I50'000-

Total goodwill = t1,14,000

Girdhari's share = 1,14,000 x 5/15 = (38,000
Banwari's gain= 38,000 x 4/10 = t 15,200
Murari's gain = 38,000 x 6/10 = (22,800
Girdhari's share in general reserve = 30,000 x 5/15 = t10,000

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Sample Papers 49
 26. (r) KTR Ltd.
Journal
Daae Particulars L.F. Dr. ( ?) Cr. (?)
201{i Bank A,./c Dr 3,65,000
Mar 4 To 97c Debenture Application and Allotment A,/c 3,65,000
(Being application money received)
2016 97o Debenture Application and Allotment A'/c Dr 3,65,000
Mar.4 Lr'rss on Issrre ol f)ebentures A,/c Dr 36,500
To 97o Debentures A,./c 3,65,000
Tir Premium on Redemption of Debentures A,/c 36,500
(Being transfer ofapplication money to debenture
account issued at par, but redeemable at prernium of
rola\
(,) KTR Ltd.
Journal
Date Particulars L.r, Dr. ( ?) Cr. (?)
2016 Bank A,,/c Dr. 3,43.100
Mar 4 To 9olo Debenture Application and Allotment A,/c 3,43,100
(Being application money received)
2016 9%, Debcnture Application and Allotment A,/c Dr. 3,43,100
Mar-. ,1 Loss on lssue of f)ebentures A/c Dr. 40,150
Tb 97o Debentures A,./c 3,65,000
Tb Premium on Redemption of Debentures AJc 18,250
(Being transfer ofapplication money to debentures
account issued at 67. discount but redeemable at
premium of57o)

27. (d) Nt (,), (,,), (,,,) and (irr) oR (b) only (i) and (iii)
28. (d) <6,00,000
29. (c) Outflow {61,600
OR
(r) (i), (r,) and (u)
30. (d) Cash outflow {6,00,000
31.
Items Major Headings
(i) LonB-term Investments Non-current Assets
(ii) Bills of Exchange Current Assets

(iii) Motor Cars NoD-current Assets

(iu) [,oss on lssue of Debentures As a deduction fiom Securities Premium Reservc
(u) Securities Premium Reserve Shareholders' Funds
(ri) Unctaimed Dividend Current Liabilities

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50 Accountancy-Xll
7
f
 32. (i) Inventory turnover ratio will decline because increase in the value of closing
inventory by t5,000 will decrease the cost of Revenue fiom Operations (Opening
Inventory * Purchases - Closing Inventory) and will increase the value ofaverage
.
inventon-
/ Opening Inventorv * Closing Inventorv \
tffiJ = ? t 0.aoo

cost of Revenue-from operations

33. rnventory Tirrnover Ratio - Average Inventory
Cost of Revenue from Operations = Revenue from Operations + Gross Loss
= (16,00,000 + {80,000 = 116,80,000
Average Inventory : t 2,20,000

Inventory Turn.ver Ratio = H## = 7.64 times

OR
Debt to Eouitv Ratio = -!S!t
L,qurty
Debt = Long-term Borrowings + Long-term Provisions
= 2,00,000 + 1,00,000 : t3,00,000
Equity = Current Assets+ Non-current Assets - Current Liabilities - Long-term
Borrowings - Long-term Provisions
= 90,000 + 3,60,000 - 50,000 - 2,00,000 - 1,00,000 = {1,00,000
3.00.000
Debt to Equity Rutio = I;6IJ00 = 3, 1

34. (i) A Cash Flow Statement shows inflows and outflows ofcash and cash equivalents from
various activities ofa company during a specified period.
(ii) Issue ofshare capital ?30,000 will be considered a financing activity.
(iii) No flow ofcash because cash includes marketable securities.
(iu) Operating activities are related to main revenue generating activities ofbusiness,
i.e., purchase and sale of goods and services whereas investing activities are related
to purchase and sale of long-term assets.
(rr) Cash Flow from Investing Activities: (
Purchase of l'ixed Assets (42,000)
Purchase of Non-Current Investments 1-3gO0Q)
Net Cash used in Investing Activities (72,000)
(ui) Increase in Trade Receivables t22,500 and inventories {83,000 during the year will
be deducted from operating profit before working capital changes.

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Sample Papers 5I
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 D

, SAMPLE ER
2
ts I LtIE I
Time Allou'ed: 3 hours Max, Marks: 80

Ce erql Inslructionsi :it Dtr t\ OllSli ,\tnl r (!ttr:lnn I\lrr-2022-21 (\oh' l)

PARI-I
(Accounting for Partnership Firms and Companies)
l. Kalki and Kumud rl'ere partners sharing profits ancl losscs in the ratio of 5:3. On Ist
April, 2021 thcy adnritted Karrshtubh as a ne\^, partner and new r:rtio was decided as
3:2: | .

(kxxlwill of tlre firm (3,60,000. Kaushtubh could not bring any amount
was valued as
for grxxlwill. funount ol gxxlwill share t() lr credited to Kalki and Kumud Accounts will be:
(r) t37,500 and (22,1-100 respc(:tively
(}) ?:10,000 and {i}0,(X)0 respectively
(r) {it6,000 and {24,000 respectiYely
k/) T45,000 and t 15,000 respectively
2. (iiverr below are two statement-r, one labelled as Assenion (A) and the other labelled as
Reason (R):
Assertion (A): Interest Gi6% lt.zr. is to be allon'ed on krans/advances provided by a
partncr to the partnership firm in the absence of a partnership deed.
Reason (R): Partnership deed alu'ays prescribes interest @67c p.a. on loans and
advances provi<lcd by a partner.
Alternatives:
(i) Both Assertion (A) and Rcason (R) are rue and Reason (R) is the correct explanation
of ,{.ssertion (,A.).
(r) Both Asserti()n (A) and Reast.rn (R) are trrrc and Reason (R) is not the correct
explanati()n of Assertion (A).
(r) Assertiorr (A) is tnre but Reason (R) is lalse.
(/) Assertiorr (A) is false but Reason (R) is true.
3. A conrpany has issued 5,00,000 shares of ? l0 each. On these shares, {7 per share has
becn called. What is thc called up capiral of the company?
(a) {15,00,(X)0 (D) ?50,00,000
(r) 135,00,(X)0 (d) None of these
OR
AI tlre time o[ issue, l)ebentures Account is:
(r) credited by the amount received
(l) credited by the face value o( clebentures
(r) credited by the issrre pricc ofthe debcntures
(r/) none ofthe above.
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52 Accountancy-Xll
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 4. Avya, Divlaarrd Kavya n'crt t'tlrral llattrtcls.'llrcr tltrirl<'rl I() ( lriurl{('th<' 1>rolit-shalirrl4
r-:rti() to'1 : ll : 2. Iiot'tllis purp()sc. thc grxrtlwill ol tlrt. Iirru r\its virllt(.(l ;rt 100,{100.
'I'he.jourrtal entr'y lirr th('tlcatrucrt ol (irx{ll\ill orr clrarrgt irr
Prrrlit-slrat'irrg r;rlio $ill
lte:
Date Particulars t..t: I)r (<) ( i: (?)
k!) Kavya's Capital A,./c l)r 1o.000
Tb Avya's Capital A./c ll,.(xx)
tb) Divya's Oapital A,/c l)r. I 0.ooo
Tb Avya's Capital A,,/c 10.(xx)
(') Avya's Ca p ital A/c l)r 90.(x)0
'Ib Kavya's Capital ,Ay'c 1){).(X)0

td) Avya's Capiul A,,/c I)r lo.(xxl

Tb Kavya's Capital Ai/c lo.r)olr

OR
Il Qand Rare partncrs irla {irrn sharing prolitsan<l krsscs irr tlrc rnti()()1 2: I :2. Ilreir'
fixed capitals were {:1,(X),000, f 1,00,000 and 42,(X),0u) resl)ccrivrl\.. lnrelesr orr capital
for the vear cnding 3 I st March, 2(] I tl was <r'rtlitc<l to tht'nr (a 1)7 p.a. instca<l ol l07 p.a.
The prolit fbr the tear beftr'e char'ging in(erest n'as ??.50.0(X). ln the a<liustnrent etrtrr',
Q's Ourrent ,\ccoun( r'ill be dctritc<l bt:
(a) t200 (r) ?4(x)
(r) t600 (./ ) (tt00

5. Vikas and Vivek \4'ere partners in a firnr sharing prolits in thc ratio o[ l] : 2. ()rr lsr
April,2019 they adnritted Vandana as a nc\{ l)artuer Iirl l/tlth shalc in the prolits rrith a
-l
guaranteed profit of { l,i>0,(X)0. hc ncw prolit sharirrg rari() l)cr\recn Vivck and Vikas
will remain the s:rme bul thel <lecide<l lo l)e:lr alnv tlelicicncv on a('(r)unl (]l liualarrtec t()
Vandana in the ratio 2 : :1.'ihe pr()lit ()l lhc lirnr lirr thc lt'ar cn<letl itlst i\iarch,2020
was {9,00,000.
Prolit translbrred to Vivek's (iapiral ,.Vc u,ill [rc:
(a) t4,ir0,000 (r) ( 3,00.0t)0
(r) t t,50,000 k/) T1,20,(X)0
6. t12,000,6% l)ebenlureri werc issue<l lry thc l'orcc Mctal t.t<l. orr lst APril, 2021 . t)rrring
the year'2021-22, thc ()mpanl srrllcrc<l a Irrrgc krss. Irr (lris r':rse:
(a) Debentureholders will be cntitlc<l to iutcrcsl o[ thc vcirr 202 l -21].
(b) Dcberrturehoklers will rn)t bc enlitle(l to intclcst ol thc vcar 20: l -?2.
(r') Debentureholders will be entitle<l t() interest ol lhc yc;rr' 2021-?2 ar hall rare.
(/) Debentureholclers will be cntitle<l (() intet cst ol tlrc ycar 20? I -2? at a krwer ratc.
OR
Mehar Ltcl. issued {1,00,(XX), 127 l)cbentrrrcs ol ?l(X) ca(h at a premirrrn ol 1-r7
redeemable at a premiurn of 2%. l'rcnriunr orr lc<lcrrrptiorr a<<'orrrrt will be:
(r) Debited by {1i,(X)0 ([) (irediterl hv {5,0(X)
k') Debited by t2,(X)0 (/) (lrcditctl by {2,{)01)

'tl'
Surnot" puou.. 53
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 7. 600 shares of { t00 each wcre lbrfeited (br non-payment of {20 per share on first call
and {50 per share on hnal call. Share Forleitecl Account will be credited with:
(a) t70,000 (r) {42,000
(c) { 18,000 (d) {30,000
8. In the case o[ retirement, iffull or part ofthe amount payable to the retiring partner still
remains to be paid, and there is no agreement among the partners then retiring partner
will get:
(i) Interest @ 6% p.a. on thc Balance aurount.
(ii) Share of profit earned proportionate to his anrerrnt outstanding to total capital of
the firm
(iii) Interest @ 9% p.a. on the balance anr(runt.
Whiclr out of the l'<rlkrwirrg is correct?
(a) (,) (6) (,,)
(c) (rii) (d) Havc a choice to get either (i) or (ii)
OR
\/idit and finn sharing profits and losses itr the ratio ol'3 : 2. Their
Seerrra were panners in a
capitals were { 1,20,000 and { 2,40,000, respectively. 'l'hey were entitled to interest on
capitals @107c p.a. The firm earncd a prolit of { 18,000 during the year.'I'he interest
on VidiCs capital will be:
(a) ? 12,000 (r) ? 10,800
(r) ? 7,200 (r/) ? 6,000
Read the lollouing hyaothetical $iruation, anstoer questiott no, 9 and 10.
Pooja and Neel are partners sharing profits in the ratio of3 : 2 with capitals of(2,50,000
and ? I,50,000 r€spectively. lnterest on capital is agreed @ 6Vc p.a. Neel is to be allowed
an annual salary of ? 12,500. During the year ended 3l st March, 2022 the profiE of the
year prior to calculation of interest orr capial but after charging B's salary amounted
tcr ?62,500. A provision of 5% of tlre profits is to be made in respect ol manager's
commission.
l'ollowing is their Profit alrd [-oss Appropriation Account.
Dr. Profit and Loss Appropriatior Account Cr
Particulars t Particulars t
fo lntcrest on Oapital llr l'rrrlit artrl l.oss ,Vt
Pooja
Neel

-Ii)
Neel's Salary .4y'c I ( ){ I

'Ib Profits transfbrred to

Ptxrja's OapitalA,/c
Neel's (iapital A,/c

't1t'
54 Acco0ntoncy Xll q
 9. Pooja's profit will be:
(a) ( 14,250 (D) t 20,u50
(c) ( 18,000 (l) { 15,400
10, Neel's profit will be:
(a) { 12,900 (6) t 13,900
(c) { 14,250 (d) t 15,900
ll. What will be the correct sequence ofevents in a partnership firm?
(i) Preparation of Partners' Capiul A,/cs
(ii) Preparation o['Profit and Loss Appropriation Account
(iii) Preparation ofProfit and Loss Account
(iu) Preparation of Balance Sheet
(a) (i), (ii), (iii\, (ia\ (b) (iiil, $i), (i), (ir)
(c) (,,,). (,,), (tu),(t) (d) 0,,), (i), (,,), (tu)
12. Pragya Ltd. forfeited 8,000 equity shares of { 100 each issued at a premium of l07c for
non-payment of rhe first and final call of ? 30 per share. The maximum amount of
discount at which these shares can be reissued will be:
(a) ? 80,000 (D) ? 3,20,000
(c) { 5,60,000 (d) t 2,40,000
13. Which of the following state ments does not relate to 'Reserve Capital'?
(a) It is part of uncalled capital ofa company.
(D) lt cannot be used during the lifetime ofa company.
(r) It can be used flor writing offcapital losses.
(d) It is part ofsubscribed capital.
14. Anuradha and Chetan ware partners in a firm. Their Balance Sheet showed Machinery
at (4,00,000; Stock at 42,80,000; Debtors at ?3,24,000 and Creditors at < I,20,000. Sati
was admitted and new profit-sharing ratio was agreed at 2:3:5. Stock was revalued at
(2,00,000, Creditors of (30,000 are not likely to be claimed, Debtors for (4,000 have
become irrecoverable and Provision for doubtful debts to be provided @ l0%.
Anuradha share in loss on revaluadon amounted to {60,000. Revalued value of
Machinery will be:
(a) 4,34,000 (i) 4,03,000
(c) 3,66,000 (d) I,83,000
15. A, B and C are partners, their partnership deed provides for interest on drawings at 8%
per annum. B withdrew a fixed amount in the middle of every month and his interest
on drawings amounted to (4,800 at the end of the year. What was the amount of his
monthly drawings?
(a) ?10,000 (r) {5,000
(c) ?1,20,000 (d) <48,000
OR
Which of the following is true regarding Salary to a partner when the firm maintains
fl uctuating capital accounts?
(a) Debit Partner's Loan A'/c and Credit Profit and Loss Appropriation Ay'c
(D) Debit Profit and Loss A,./c and Credit Partner's Capital A,/c
'tl I
Sample Papers 55
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 ( ) I)ebit Prolit and l.oss Appropriation /Vc and (llcdit Partner's Current A,/c
(1) lX:bit I\rrlit andl-oss Appropriatiorr ,Vc and (lredit Partner's Oapital A,/c
16. luvcstments of { 2,00,000 wele n(}t showrr in the brxrks. At the time ol dissolution, onc
ol the r reditors took lhese invcstrrents in lirll scttlenrent o ris debt ol ( 2,20,(X)0. How
nrtrch anrrunt will be pavablc t() that creditor?
(a) T 20,000 (h) t 2,20,000
(c) { 4,20,(xX) (d) Nil
17. A, Iland (larc partners in ar firrrr u'hose [xxrks are closcd on March l]lst cach year.Adiecl
on l|0th Junc, 2020 an<l acurr<ling t() the agreenrcnt, the share ol profits ol'a deceased
pal'tDcl'Llpt() thc (latc ()l llre dcath is to l>c <:rlcul:rt(<l on tlrc lrasis ol'lhc averagc profits
f<rr thc last [ivc years. 'l he net profits lirr thc last 5 r'ears hirve been: 2016 - t 14,000:
2017 - ? lti,0(X); 20ltt - ? 16,0(X); 2Ol9 - 410,000 (loss) and 2020 - t 16,000. (lalculate
As share of tlrc plofits rrptt.r the (late ol (lcath and pars necessarv.jou ln:rl errtry.
18. NIaanika, llhavi and Korl:rl are partnels sharing profits in the ratio ol 0:.1:1. Komal is
guaranteed a nliniDrunr profit ol < 2,00,(XX). 'l'he lirm in< rrrred a loss ot (22,00,000
firr- thc year errcled 3l st March,20 I u. I'ass neccssary .journal entr-y regarding deficiency
bolne bv Nlaanika arrd llhavi antl prepale l'rofit an<l l,oss Alrpropriati()u Acc()lrnt.
OR
Rarn, Shyaur arrd Moharr are l)artners in a firm shaling prolits:rncl losses in thc latio
ol 2:l:2. lheil fixe<l capitals wcre {3,(X).000, <1,00.000 and (2,00,000 respectiveh'.
Intcrcst on capital lirr the y'ear crr<ling illst March, 2Olll was crcclitcd to them (r,9% p.a.
instea<l of 107 p.a. 'l lre pr'olit Iirr the yeal befirre clrarging inlclest was {2,50,000. Pass
Ir(('(sritrr a(lilrsl IneIll etll t \.
19. Nano l-td. ptrrchase<l asscts of l)()w t,td. lirr { 3,(X),000. It also agree<l t() take ()ver the
liabilities ol [)ow [,t<1. :rmounting to a 1r0,000 lirr a purchasc r:onsideration ol
{ 2,7ir,000. I he paynrent to Dow Ltd. was rnade by issue o[ tl(Z l)ebentrrres o[t 50 each
at a premirrnr ol l07 .
l'ass rrecessary jorrrnal crrtries firr the above transactions in the l>ooks ol Nano l,td.
OR
he l)irectors ol a Oornparrv lirrll'ited 50() shares ol { l0 eath issued at a premirrm of (i}
-I

per shale, Ior tlre norr-1>aymcnt ol the lirst call ntoncy of (li pcr- shar-e. 'l he linal call ol
{2 pcl shar-c has nol bcen made. llalfthc Iirrl'cited shares wcre Leissrrc<l at ?2,500 Iully
paitl. Recorrl rht: .j(rul n:rl entries Iin- thc [irrli'iturc antl reissuc ol sharrs.
20. Ktrrnar, (iupta irntl li.avila were l)artr)ers in a lirm sharing plolits an<l losscs equ;rlly. The
fir-nr uas engagcd in lhr storage aDd distribution ol canned.juice and ils godowns were
Iocatc<l at thrcc <liffercnt places in the cit!'. l.ach g(xl()$'n uas treing managed individualll'
by Ktrmar, ()trpta arn<l Kaviter. llct:ruse ol increase irt business activitics at the godown
nranage<l by (irrpta, lre hnd to rlevote [l()r'e time. (irrpta dcmanrlcd tha( his share in the
prolits ofthc firnr be irrrreasetl, to whiclt Krrmar arr<l Kavita agreetl. 'l'he new proht-
sharirrg ratio was agree<l to [r I : 2 : l. lirr this pr.rrp(]se, thc goodwill of the firm was
value(l at two ycars'prrrchuse t>l lhe averagc prolits ol last {ive years.'l he profits of the
las( live veals u'cre:rs ftrllrws:

'lr'
56 Accountancy-Xll
//r,
 Year Proht (()
I 4,00,000
lt 4.80,000
rll 7,33,000
IV (L<.rss) 33,000
v 2,20,000
You are requircd to
(i) Calculate the goodwill o{ the firnr.
(ii) Pass necessary Jorrrnal tintry lbl the treatment of g<todwill on changc in prolit-
sharing ratio of Kurnar, (;upta and Kavita.
21. ()n lst April, 20t9, Vishwas Ltd. was lbrmed with an authoriscd capital ol'( 10,00,000
divided into I ,00,000 equity shares of T l0 each. 'I'he company issued Prospectus inviting
applications lirr 90,000 equity shares. 'l'[rc company received applications I'trr 85,000
equity shares. t)uring the lirst year, {tl per share wcre callcd. Rarn holding 1,000 shares
arrd Shyam holding 2,000 shares did not Pav thc lirst call ol {2 per share. Sh1'anr's
shares wcre lirr'feited alier the first call and latcr on 1,500 ol the fortcited shares were
re-issued at (ti per share, {t} called up.
Show the firlkrwing:
(r) Sharc Oapital in the Balance Slreet ol'tlte corrrpany as per Schedule III Part I o[thc
Oompanies Act,20lil.
(r) Also prepare'Notes to Accounts'fi>r the saIne.
22. losses in ratio of '1:5: t. They had
-1, K and [, wcre partners in a firm sharing pro[its and
entered into partnership on lst April, 20t7 through a verbal agreement. Within a year,
.l and K faced many conflicts and legal trrmplexities and thus,;rll the partners decided to
diss<>lve the l'irrn. On 3 I st March, 201tJ their firnr was dissolved. ()n this date, the Balance
Sheet showed a balancc ot ? I ,34,000 iIr Debtors Account an<l a balance ot t 14,000 in
Provision firr Rad Debts Account. Both the acc()unts were closcd by translerring their
birlances to Realisation A(c()unt. {.1,(XX) o{ the debtors becanre bad and nothirrg could be
rcalised frorn them on <lissolution. K agreed to ltxrk after the dissolutiott work fbr which
hc was alkrwe<l a remunerati()n ol' { 16,000. K also agreed to bear dissolution exPenses
firr which hc was allowctl a lumpsum payment o{ ?4,000. Actual dissolution expenses
were {6,ir00 and the same were paid Itrrm the {irm's cash. Loss on dissoluti()n amounted
to ( 37,000.
l,ass necessary jou rnal errtries for the above transactions in the books o[ the ltrm on its
dissolution.
23. AI] Ltd. invited applications fbr issuing 75,000 eqtrity sharcs ol ? 100 each at a premium
o[ ?30 per share. l'he amount u'as payable as follows:
()n Applications and Allotment - {85 per share (including premium)
()n F-irst and Final Call - the balancc Arnount
Applications tirr 1,27,500 shares were received. Applications fbr 27,500 shares were
reiected and sharcs wcrc allotted on pro-rata basis k, the rernaining applicants. Excess
nroney received tn applir:ations and alkrtment was adjustecl towards sunls due on first
ancl final call. 'l'lre calls wcrc urade. A shareholder, who applied tbr 1,000 shares, failed
k) pay the lirst and final call money. LIis shares were forfeited. All the firr(bited shares
were reissued irt { 150 per share full;" paid-up.

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Sample Papers 51
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 Pass necessary journal entries for the aboye rransacrions in the books ofAB Ltd.
OR
Pass necessary journal entries for f<rrfeiture and reissue ofshares in the following cases:
(i) Firewell Ltd. forfeited 100 shares of t 100 each, t80 paid, for the non-payment of
hnal call of(20 per share. Out ofthese 80 shares were reissued to Mr. X for ?75 per
share,
(ii) A share oftl00, on which ?80 has been called up, {60 has been paid is forfeited
and reissued to B @ (70 as fully paid up
24. 'B' and 'C' were partners sharing profits in the ratio of 3 : 2. 'I'heir Balance Sheet as on
3lst March.20l2 was as follows:
Balance Sheet of B and C
a\ at J I sl March. 20l2
Liabilities ( r) Assets (l)
Capitals: l-and and Building E0,000
B 60,000 Machinery 20,000
c 40.000 1,00,000 l'urniture 10,000
Provision for Doubtful Debs l,000 Debtors 25,000
Credirors 60,000 Cash 16,000
l'rofit and Loss Account 10,000

Lqgp 1,61.0(x)

'D'was admitted to the partnership for l/5th share in the profis on the following terms:
(i) The new profit-sharing ratio was decided as 2:2:1.
(ii) D will bring {30,000 as his capital and (15,000 for his share ofgoodwill.
(iri) Half of goodwill amount was withdrawn by the partner who sacrificed his share of
profit in favour of'f)'.
(iu) A provision of 5% for bad and doubtful debts was to be maintained.
(u) An item of{500 included in Sundry Creditors was not likely to be paid.
(rri) A provision of (800 was to be made for claims for damages againsr rhe firm.
After making the above adjustments, the Capital Accounts of 'B' and 'C' were to be
adjusted on the basis of D's Capital. Actual cash was to be brought in or to be paid offas
the case may be.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new
firm.
OR
AIul, Bakul and Chandan were partners in a firm sharing profits in the ratio of2 : 2 : l.
On 3lst March, 2018 their Balance Sheet was as follows :

'rll!
58 Accountancy-Xll
 Balance Sheet of Akul, Bakul and Chandan
o: ol Jl-)-2Olll
Liabilities (r) Assets ( r)
Sundry Creditors 45,000 Cash at Bank 42,0(X)
Employees Provident Fund t3,000 Debtors ti0.(xx)
General Resene 20,000 Less: Provision for
Capitals : doubtful debts :.t)0o 58,000
Akul l,60,000 Sttxk 80,000
Bakul I,20,000 Furniture 90,000
Chandan 92.000 3.7!,0{X) Plant and Machinery 1,80,000
.l 50 (XX) .l,50,000

Bakul retired on the above date and it was agreed that :

(i) Plant and Machinery was undervalued by 107o.
(ii) Provision for doubtful debts was to be increased to 15% on debtors.
(iii) Furniture was to be decreased to ( 87,000.
(iu) Goodwill o[the firm was valued at ( 3,00,000 and Bakul's share was to be adjusted
through the capital accounts ofA}ul and Chandan.
(u) Capital ofthe new firm was to be in the new profit sharing ratio of the continuing
partners.
Prepare Revaluation account, Partners' Capital accounts and the Balance Sheet of the
reconstituted firm.
25. X, Y and Z were partners in a firm sharing profits and losses in the ratio of 5:3:2. On
3l st March, 2020 their Balance Sheet was as follows:

Liabilities (r) Assets ( ?)

Capiral Accounts Building 50,000
x 75,000 Paten(s 15,000

62,500 Machinery 75,000

z 37.500 1,75,000 Stock 37,500
Creditors 42,500 Debtors 20,000
Cash at Bank 20,000
2,17,.r-r(X) '1.I 7.500

Z died on 3lstJuly,2020. It was agreed that:

I
(a) Goodwill be valued at 2; year's purchase of the average profits of the last fiour
years, which were as follows:
Years Profis (?)
2016-20t7 32,500
20t7-20r8 30,000
2018-2019 40,000
2019-2020 57,500
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Sample Papers
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59
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 (l,) Machincry be valued at {70,000; Patcnts at {20,000 and l}uilding at t62,500.
(c) For the purpose ol-calcularing Z's share ofprofits in the year ol'his death, the pr<.rlits
in 2020-2021 should be taken to have been accrued on the same scale as in 2019-
2020.
(d) A sum of t 17,500 was paid immediately to the cxecutors of Z and the balance was
paid in fbur half yearly instalments togerher with interest at l29t p.a. starting fiom
3lstJanuary,202l.
(iive necessary journal entries t() rccord the above transactions and make Z's executors'
irccount till the paynrent of instalmcnt duc on 3[st.lanuary,202l.
26. Power and Utility [.td. issued 2,ltOO,8q l)el>entures of { 100 each at a discount of l0?
on lst April,20l7 rcdcemable at par alier live years.'lhe cornpany has a lrirlance o['
? 15,000 in Securities Premium Reserve. 'l'he company decided to use the Securities
Premiunr Reserve firr writing ofl the krss orr issue ol <lebentures and also decided to
write ofl the remaining discount in the first vear itself.
Pass the.lournal entries flor issue o[debentures and writing ofl the discount on Issue ot
debentures. You are also require<l to preparc Discounl on lssue ol Debentures Account.

PART-B
(Analysis of Financial Statements)
27, 1'he prescribed form ofBalance Sheet for the conrpanies has been given in the Schedule
(a) III, Part I (6) VI, Part I
(c) VI, Part II (d) None ofthese
OR

Which one of the following is correct?

(i) A ratio is an arithmetical relationship of one number to another number.
(ii) Liquid ratio is also known as acid test ratio.
(iii) Ideally accepted current ratio is 1: l.
(i?) Debt equity ratio is the relationship between outsiders funds and shareholders'
funds.
(a) all (i), (ii), (iii) and (iu) are correct
(6) only (i), (ii) and (tr) are correct
(c) only (ir), (iii) and (iu) arc corrcct
(d) only (ii) and (irr) are correct
28. When current ratio is 3:l and the amount ofcurrent liabilities is t1,10,000, what is the
amount of current assets?
(a) t3,30,000 (r) t2,20,000
(r) (2,00,000 (d) None ofthe above

lllr

60 Accountancy Xll
 29. t)r: Provision for Income Tax Account ( lr

Particulars ( r) Particulars (r)

Io Bank A,,/c (payment of tax) t,24,000 By Balancc b/d 99.000
fo Balance c/d I,75,000 By Statemenr ofP & l, 2,00,000
(provision nrade)
2.99,000 2.91).0(X)

While preparing Cash Flow Statement:

(c) I I ,75,000 will be deducted fiom cash generated from operarions
(6) { 1,24,000 will be deducted from cash generated flrom operations
(r) {99,000 will be deducted from cash generated from operations
(d) 12,00,000 will be deducted from cash generated from operations
OR
Which of the following transactions will result into flow of cash?
(a) Cash withdrawn from bank <20,000.
(6) Issued <20,000, 97o debentures for the vendors of machinery.
(c) Received { 19,000 from debtors.
(d) Deposited cheques of ? 10,000 into bank.
30. Dolphin Ltd. purchased machinery ot ?2,00,000 issuing a cheque of ?50,000 and 8%
Debentures of ( I,50,000. In the cash flow statement, the transaction will be shown as:
(a) Outflow under investing activitv {2,00,000 inflow under financing activity as Receipt
for Debentures of ? I,50,000.
(D) Outflow under investing activity 150,000
(r) I nflow of { I,50,000 as financing activity.
(d) None ofthe above
31. Under which sub-headings, will the following items be placed in the Balance Sheet ofa
company as per Schedule III Part I ofthe Companies Act,20t3:
(i) Capital Reserve (ii) Bonds
(iii) Loans repayable on demand (iu) Vehicles
ftr) Goodwill (ui) Loose trxrls
32. One ofthe objectives of'Financial Statements Analysis' is to.iudge the ability of the firm
to repay its debt and assessing the short-term as well as the k)ng-term liquidity position
of the firm. State two more objectives of this analysis.
33. From the following details, calculate Interest Coverage Ratio:
Net profit after tax ( 7,00,000
6% debentures of t 20,00,000
'lax Rate 30%
OR
-I'he
Quick ratio of a company is 0.8: I . State with reason whether the following
transactions will increase, decrease or not change the quick ratio:
!llr
Sample Papers 6I .\
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 (i) Purchase of loose t<x)|s 42,000.
(ir) lnsurance premium paid in advance {500.
(iii) Sale of goods on credit ?3,000.
(irr) Honoured a bills payable { 5,000 on maturity.
OR
34. Read the following hypothetical text, answer the questions on the basis of the same:
Ishwar along with her friends started a company 'Light House Ltd.' to manufacture ISI
marked electronic goods for supplying in rural areas of the country.
The profits of'Light House Ltd.'for the year 2021-22 beflore taxation was t1,08,000.
Following are the Balance Sheets o[ the company:
Particulars Note No. 3l8t Ma..h, 3lsr M.rch,
2022 (?) 2021 (r)
I. EQUITY AND LIABILITIES
(l) Shareholders' Fuods
(a) Share Capital 2, t0,000 t,80,000
(D) Reserves and Surpltrs 1,32,000 24,000
(2) Non-current Liabilities
(a) Long-term borrowings 1.50.000 1,50.(x)0
(3) Currentliabilities
(o) Trade Payables 75.(X)r) 27,0(X)

Tot t 3.81.(X)0
II, ASSETS
(l) NoD-currcnt A$€tg -qgll
(a) Fixed Assets
(i) Tangible Assets 2,94,000 2,52,000
(r) Non-current Investment 48,000 18,000
(2) Current Assets
(o) Current Investments (marketable) r'r4,000 60,000
(6) lnventories t,07,000 24,000
(r) Trade Receivables .10.000 17,500

(d) Cash and Cash Equivalents 2.1,000 9,500

'lbtal 5.{i7.(XX) 3,81 ,000

You are required to

(i) Calculate Cash flow from ()perating activities
(ii) Calcrrlate Cash flow lrom investing activiries
liii) (ialculate Cash flow lrom financing aclivities
tIt

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62 Accountancy-Xll
 I
nswers
l. (d) ?45,000 and t 15,000 respectively
Hintr
Sacrificing Ratio : Old Ratio - New Ratio
Kdki = 518-316=3124
Kumud = 318-216=1124
= 3:1
Kaushtubh's share ofGoodwill = 3,60,000 x l/6 = ? 60,000
Kalki = 60,000 x 3/4 = (45,000
Kumud = 60,000 x 1/4 = {15,000
2. (c) Assertion (A) is true but Reason (R) is false.
3. (c) (35,00,000
OR
(D) credited by the Face Value ofdebentures
4.

k/) Avya's Capital A,/c [)r: 10,000

To Kavya's Capital A,,/c 10,000

OR
(at ?200
5- (D) <3,00,000
6. (a) Debentureholders will be entitled to interest of the year 2021-22.
OR
(d) Credited by t2,000
(c) t 18,000
E. (d) Have a choice to get either (i) or (ii)
OR
(d) ( 6,000
9. (r) t 20,850
10. (r) { t3,900
lt. (D) (t,r), (rt), (,), (iu)
12. (c) t 5,60,000
13. (.) It can be used fior writing offcapital losses.
14. (c) 3,66,000
15. (a) ? 10,000
OR
(d) Debit Profit and Loss Appropriation A,/c and Credit Partner's Capital A,/c
16. (d) Nil

llll
Sample Papers E3
 t-1,0(x) + lli.(xx) + l(i.0(x) -10.(xx) + 16.(xx) 4 54. (X)0
17. l\rrlit =
.{r'e rage
ir 5
= { lt).800
As sh;rrc = { l0,lt00 x fi,.f= torxr
Journal
Date
2020
Particulars
Prolit & [,oss Suspensc A,./c Dr.
1_. !'. Dr. (r)
1)(X)
I@ o
'lb As Oapital
Iune 30 .Vr' 1XX)

(Bcing dcceased parlner's sharc of prolit < rcdite<l

t() his capital account)

18. Journal
Date Particulars L.F. Dr. ({) Cr. (?)
20lll
Ilar lil Maanika's (iapitalA'/c Dr. '.,1..1(),(,(x)

Bhavi's Capital A,,/c Dr. l.{;0.(x)o

To Komal's Capital fuc .r,00,000
(Being the deficiency of Komal nret by Maanika
and Bhavi)

Profit and Loss Appropriation Account

f or llu 1rur nulrl ) lll lldfth, 20 ll'l
l)r'. ( lr'.

Particulars (?) Particulars ( r)

-Ii) [3]' l,oss transferred to:
Net [-oss !:.1.(X).000
(Profit and l,oss A,./c) Maanika's Oapital rVc t2,00,000
Bhavi's (iapital ,AJc 8,00,(xx)
Konral's (iapital A,/c 2,00,000
.,') ll{l 0{l(l 22,00.(x)0

Working Note:
Loss of the firm : {22,00,000

Komal's sharc of loss =22,00,000 , | = tZ,uO,ffOO

(;uaranteed minimum profir = {2,00,000. 'I'herefore Komal's Capital acc()trnt is to be

credited by the amount of deticiency t4,00,000 ((2,00,000 share of loss + <2,00,000
guaranteed profit) which is borne by Maanika and Bhavi in 6 : 4 ratio.
OR
Thble Sbowing Adjustment
Particulars
(.\) I ntcrtst alleadr r l.rtlitt d (t {)'zi
Ram
(27,(XX))
( t) Shyam
(9,000)
(t) Mohan
(r 8,000)
( l) @
(54,000)

l'rolit distlilrrrtt'd alicl irrtercst on ca1>ital (78,'100) (39,200) (711,400) (I ,96,000)

(2,ir0,(XX)-ir.l.{X)0) = I ,1)(i,(X)0 (2: l:2)
( I Ji',.100) (1|l.:loo) r 9(;-.1r xr ) ,"5(mu,
'rll'
64 Ac(iountancy Xll I
///,,
 (B) [nteresr shorrlrl have been creditecl 30.(x x) to.(xx) 2{).000 (;{).(xx)
(o. |y;1

Prolit rlistributed alier interest on capital

(2,50,0(x) 60.000) = I,90.0(x) (2: I i2) 7{i.(xx) 3lr.(xx) 7(;.0(x) 1.1)0.(x)0
1,0(i.{xx} .18.(x)0 96.000 2,ir0.000
Net Uli'(l A_B (Cr) + (i00 (Dr) - 200 (t)r) - 400 Nlt_
Adjustment Entry
Shyam's Current A,,/c Dr. 200
Mohan's Current A'/c Dr. 400
Tb Ram's Ourrent A,,/c {i(x)
(Being interest less charged on capital. now rectified)

19. In the Books of the Nano Ltd.

Journal
Date Particulars L.F. Dr. (?) Cr. (f)
Sundry Assets A,/c I)r. 3,00,0(x)
Goodwill A,/c (Balancins Figure) lh: 25.000
To Sundry Liabilities Ay'c 50.00o
To Dow Ltd. '.1,7ir.(X)0

(Being assets and liabilities purchased at a higher

purchase consideration)
Dow Ltd. 1)r. 2,75,000
To 87. Debentures A,/c 2,50,000
To Securities Premium Resetve 25,000
(Being purchase considerarion paid by issue of5,000, ttTo
debentures at l07c premium)

OR
Journal
Date Particulars L.F. Dr. (?) Cr. ( l)
Share Capital Ay'c (500 x 8) Dr +,0(x)
To Share First Call Ay'c (500 x 3) I,500
To Share Forfeited A,/c (500 x 5) 2,5(X)
(Being 500 shares forfeited for the non-payment of first
cdl)
Bank A,./c Dr 2,500
To Share Capital A"/c (250 x l0) 2..:r{Xl
(Being reissue offorfeited shares at {2,500 as fully paid-
up)
Share Forleited A,/c Dr. t.250
To Capital Reserve A,/c 1,250
(Being profit on reissue transferred to Capital Reserve
A/c)
'rllI
Sample Papers 65
,N
 Working Note:
On 500 shares forfeited amount = 2,500
2.500
()n I share f<rrfeited anrourrt
50{}

on 250 shares forfeited amount = ffi ,zso = ( 1,250

20. (i) (lakulatiorr ol (]otxlwill o[the lirnr

? (4.00.000 + 4, r.r0,000 + 7,33,000 - 33.000 + 2,20,000)
Average Profit = = 13,60,000
(l<xrdwill ofthe firm:2 x 3,60,000: ( 7,20,000
(it) Journal
Date Particulars L. t: Dr. (l) Cr. (l)
Gupta's (iapital A,/c l)r: 1,20.{)(x)

To Kumar's (:apit.al A|/c 60,000

To Kavita's Capital Nc 60,000
(Being adjustment (>f goodwill among paftners on
change in profit-sharing ratio)

Working Notes; Calculation of Sacrifice/(Gain) of Partners due to change in Profit-sharing ratio

Oldratio=l:l:l
Newratio = l:2: I
Kunrar's Sacrif'r<c =
I .l-3 I
I 412 12
(iain 4-6 -2
Ciupta's = I -; = t! I:.t

Kavita's sacrifice =
+-+=#
Calculation of Proportionate amount of goodwill adjusted among partners
Kumar = 7,20,000x =(60,000
,,
9
Cupta = 7,20,000 x; =t1,20.000
I
: x
2'I' Kavita 7,20,000
l2-
= <60.000

',""";Tff';::;,y;,""'
Particulars Notc Current Previous
No. Year (?) Y€ar (?)
I. EQUITY AND LIABILITIES
l. Shareholders' l'unds
(a) ShaIe Oapital I (i,77,000

'lllt
66 Accountancy-Xll
 Notes to Acc()unts:
Particulars Dr. (l)
l. Share Capital:
Aulhorised S lnr. Capttal :
1,00,000 equity shares of(10 eac
Isswd Shaft Capital: JlLgllLlllg
90,000 equity shares ofl l0 each 9,00,000
Suhscribed Capilal:
Subscribed but not lully paid caPlal
84,500 shares of?10 each, {8 called up 6.76,000
lassr Calls-in-Arrears (1,000 x <2) (2,000)
,4dd: Share Forfeited y'Vc (500 x <6) 3.000 6.77.(X)0

22. In the Books ofJ, K and L

Journal
Date Particulars L.r. Dr. (l) Cr. (a)
2018
Mar 3l
(,) Bank A"/c l)r: 1.3{).{xx)
To Realisation AJc 1.30.000
(Being amount realised from debtors)
(r) Realisation A./c l)r I (i.(xx)
-tb K's Capital A"ic I {1.(n )0

(Being remuncration paid for dissolution work)

(iii) Realisarion A/c I)r' .1.(xx)

To K's Capital A,./c .1,(xx)

(Being amount credited fi)r dis$olution expcnses)

K's Capital A,./c Dr (;,r( lo

Tb Bank A/c {).i( x)

(Being realisation expenses paid by firm on behalfof
partner, K)
(rr' ) J's Capital,Ay'c f)r. t4,800
K's Capital A'/c Dr. 18,500
Lls Capital A,./c Dr. 3,700
To Realisation AJc 37.(XX)

(Being realisation locs transferred to Partners' (rpital &cs)

!llI
Sample Papers 67
.N
 25. In the books of AB Ltd.
Journal
I)ate Particulars L.F. Dr. ( l) Cr. (t)
Bank A,./c l)r 1.0It.J7.5(x)
'Iir Share Application and Allotnrent A,/c I,0n.J7.500
(Being application money received)
Share Application and Allotment A,/c f)r l.0ll.J7.inx)
-Ii>
Share Capital A"/c (75,000 x 55) 4l,25,000
'lb Securities Premium Reserve A,/c (75,000 x 30) 22,50,000
1ir Bank A,/c (27,500 x 85) 23,37,500
'Iir Share First and Final Call A,,/c 2 t,25,000
(Being application money transferred, excess
adiusted and rejected and refunded)
Share First and Final (lallA,,/c (75,000 x 45) l)r :t3.7r-r.0(X)

1'<r Share Capital A/c 33,75,000

(Being first and final call money due)
Bank A,/c l)r' 12.37.:-,(X)
'[b Share First and Final Call A,,/c 12,37,500
(Being lirst and final call money received (WN3))
Share Capiral (750 x 100) Dr. 7:-,.000
'lb Share lbrf'eited ,Ay'c (750 x 55 + 2l,250 ) 62,500
lb Share First and Final Call (750 x 45 - 21,250) t2,500
(Being 750 shares forfeited)
Bank,Ay'c (750 x 150) Dr. I . 12.:')(X)
-Ib
Share (iapital A./c (?50 x 100) 75,000
'Ib Securities Premium Reserve A,/c (750 x 50) 37,500
(Being 750 forfeited shares reissued at I 150 per
share)
Share Forfeited A,/c l)r: (;'l.i(x)
1b Capital Reserve A,/c 62,500
(Being profit on reissue regarding 750 shares
transferred to Capital Reserve A,/c)
Working Notes:
(l)
Shares Applied Shares Allotted
?7,!r00 Nil
1.00.00o 75,000
1.27,500 7 r-r.(XX)

'lllI
68 Accountancy-Xll
7
 7 ir.0(X)
Ifno. ofshares applied is 1,000, then no. ofshares allotted = 1,000 x
lJ)m(,0 = 750
(2) Calculation of unpaid amount on First and l-inal Call on 750 shares t
Amount due (750 x 45) 33,750
lzss. Excess moncy adjusted from application and allotment (250 x85) 2l,250
Amount unpaid Tr5i0
(3) Calculation ofamount received on First and Final Call
Total amount due (75,000 x 45) 33,7ir,000
Less. Excess money adjusted fronr application
and allotment (25,000 x 85) (21 ,2i,,000)
Lzssr Unpaid on 750 shares (I ?,500)
Amount received on hrst and final call P:r/501)
OR
In the books of firewell Ltd.
(, Journal
l)ate Particulars L.F: Dr. (l) Cr. ( ?)
Share Capital A,/c (100 x ?100) Dr. 10,(n)0
To Share Final CallAy'c (100 x <20) 2,000
To Share Forfeited A,,ic (100 x <80) ri,000
(Being 100 shares forfeited for non-payment offinal
call)
Bank &c x ?75)
(lto l)r: r;,(xx)
Share ForfeiredA,/c (80x 425) I )r: :,1.0( x )

To Share Capital Ay'c (80 x t t00) 8,(XX)

(Being 80 shares reissued @ ?75 per share)
Slrare Forll,ited A"/c l)r -1..1( x )

'li) (iapital Reserve A,/c .

t.-1{ x)

(Being profil on share lbrfeited Account transferred

to capital reserve Accotrnt)
Working Note:
Amount forfeited on 100 shares = t8,000
8'000x80
Amounr tbrteited on 80 sha =res roo a (i,+00
Less: Discount allowed on reissue of 80 shares @ ?25 = <:.(x)0
Amount transferred to Capital Reserve I {foo
(t,) Journal
Date Paniculars L.F. Dr. (() Cr. ( l)
Share Capital &c l)r tt( )

'lb Share (lall A./c 2()

'l'o Share t'olfeitctl A,./c (i0
(Being sharc lirlfeited lirr non-payrnent ol call)
'rlit'
Sample Papers 69 \ N
 Bank A,/c Dr. 70

Share Forfeited A./c Dr. 30

To Share Capital A,/c l0o

(Being forfeited shares reissued to B at 70 fully paid)
Share l'orfeitcd A,/c Dr. 30

Tb (;apital Reserve ,ay'c 30

(Being balance ol share f-orilited Account transferred

to capital reserve Account)

24. l)r Revaluation Account (:r

Particulars (?) Particulars (?)

'lir l\'ovision lirl lJad anrl [)orrbtftrl <lclrts.Ay'c 250 By Sulrdry Creditors A/c 500
-lir
l\rrrision Iirr (ilaint lirt l)anugcs.Vc Ito0 By Loss rransferred to
Partners' (.:apital Ay'cs:
B 330
c 220 540
1.0;o

)r. Partners' Capital Accounts ( lr'

I

B(?) c (t) D (r) Particulars B (l) -lJt!!l(r)

c (?) D
'Ib (iash A./c 7.!nr0 By Balance b/d (io.r,0r r 40.0(x)

Tb Profit and Loss .qy'( ri,(xt0 4.000 By (:ash Ay'c 30.000

To Rcvaluation AJc 3:i0 ?20 By Premium for 15.(x)o
Ctxrdwill
Ii) l|.rl.rr(( (, (l 6l.l7t) 35.?lr0 :lo.oo0

{0.0(x) :t0.{xx) -10.(xx) 30'(,fi)

,a,J)00- 3l1l1l
lb (irNh A/. L r70 By Balance b/d 6t, t70 3r-,,78(l 30,000

Ib Balan(e dd 60.(x)0 rio.00o 30.0t){) Bv Cash Ay'c 2.1.2:0

(;l.l;0 30.(xx) 6l,l?0 lio.{)00 30,o00

Balance Sheet of B, C and D

u: al )lsl ,\luch.20l2
Liabilities ( r) Assets ( ?)

CapitalA,./cs: t-and and Building 80,000

B 60,000 Ma<-trinerv 20,000
c 60,000 l'urrtittrrc 10,000
D 30.000 t,50,000 Debtors 25,000
Sundry Creditors 59,500 (lash 76,550
Provision for Bad and Doutrtful I,250
Debts
Provision for (llaim for l)amages s( )o

_&]rirg 2,I 1,.-r:-r0

rllll

70 Accountancy-Xll
h,,
 Working Notes:
l. Calculation of Sacrilicing Ratio:
{or()o
B= i_===.(:==-=
55J5C = \il
2. Adjustment of Capital:
D's Oapital = T30,000 for l/5th share
Total Capital ofthe hrm : (30,000 >< = <f
f ,SO,OOO

B's Capital = ? 1,50,000, = {OO,OOO, C's Capital = t 1,50,000 t | = tOO,ooO

f
3. Dr Cash Account
Particulars (() Particulars 1a)
To Balance b/d l(i,000 By B's (iapital Ay'c I,170
To D's Capital A"/c i0,(xx) By B's Oapital A,,/c (Premium) 7,500
To Premium for Goodwill A"/t l:-r,0fi) By Balance dd 76,550
To O's Capital A"/c 2{.220
llir.2!0 li5.'.1'10

OR
3. I)r: Revaluation Accounl ( lr.

Particulars ( <) Particulars ( r)

To Provision for doubtful debts 7,000 Rv Plant and Machincrv A/t :.1( ).( x )o

To Furniture A/c :1.000

To Profit transferred ro:

A-t<ul's A,./c
Capital 4,000
Bakul Capiral A,./c 4,000

Chandan Capital A,,/c 2-000 10.0(x)

:t( ).0(x ) :,1{).000

l)r Partners'Ca tal Accounts ( lr'.

Paniculars Alorl Bakul Cb.dln Particulars AI(ul Brkul Chr&n

(?) (?) (?) (() (t) (r)
fo Bakul Capital A/r n0,000 .10.{){)o By Balance b/d I,60.0{x) 1,20,000 1)2,()00

ro Balul's Loan ,{/( 11.i,2,o00 By Cenel?I Res€n'c tt,0(x) 8,000 .1.(xx)

Ib Balanc€ .rd 92.00o .;r{.001t By ReYaluation ,4/c J.0{x) .r,000 :.(XX)

By Alul's Capital A/c rj0,000

By Chandan Capital ,{y'c 40.000

t.7:t,0(x) :.5!.(XX) 9tt.{)0o |,72,(XX) : . a'..1.( ){ x ) !ll{.(xx)

rllr

Sample Papers 7I
,N
 Balance Sheet of the reconstituted firm
u: al i ll ltltrth.20l8
Liabili(ics (t) Assets (?)
Sundry Creditors 45,000 Cash at Bank .12,000
Employees Provident Fund 13,000 Debtors 60,000
Bakul's [,oan 2,52,000 Less: Provision
Capitals : for doubtful debs 9.000 51,000
A-kul 92,000 Stock 80,000
Chandan 58.000 Furniture 87,000
1.i,0.000 Plant and Machinerv 2,00,o00
.l.(;o.00{) .1,60.(XX)

Working Notes:
I . I n the absence of any agreement, new profit-sharing ratio as well as gaining ratio will be
the old ratio ofthe renraining partners.
2. Bakul's share ofGoodwill = t3,00,000 x 2/5 = t1,20,000
Alul'sgain = {1,20,000 x 2/3 = t 80,000
(lhandan's gain = 11,20,000 x l/3 = (40,000
25. Journal
Dalr Particulars L. t: Dr. ( ?) Cr. ( ?)
20?0 X's Capital A.rc l)r: 10,938

luly :I I Y's Capital A,/c l)r: 6,562

To Z's Capital A"/c l7.ir(X)
(Being Z's share ofgoodwill compensated by the
existinq partneB)
Profit and Loss Suspense .Ay'c l)r ?,ir0t)
'Ib Z's Oapital A,,/c :1.i]( X )

(Being Z's share ofprofit till the date ofdeath)

Revaluation A,/c Dr i.( x)0
To Machinery A"/c r-r.(X)( )

(Being decrease io the value of machinery recorded)

Patents A,/c Dr: 5,000

Building A,,/c [)r 12,500

To Revaluation A"/c 17,:)00

(BeinB assets revalued)

Revaluation A"/c l)r t2,500

To X's (iapital A,ic 6,250
To Y's (;apital A,,/c 3,750
To Z's Oapital A"/c 2,500
(Being Profit transferred !o Partner s( iapital
Accounts)
'rlr'
12 Accounta.ncy-Xll
tu,
 Z's Capial y'y'c l)r (i{),(x}0

To Z's Executors'A/c (io.(xx)

(Being net amount due to Z transferred to his

Executors' ,Ay'c)
Z's Executors' A,,/c l)r: l7.i)00
Tb Bank A"/c 17.500

(Being partly cash paid to executors)

[)r: Z's Executors' Account ( lr:

D.r. (l) (i)

2020 2020
li, li,,'rk.\n (i0.ux)
-lulv lt I 17.5(X) July 3l By Z's Capital A/c
2021 2021

Jan. it I To Bank (10,625 + 2,550) 13,175 Jan.3l By Interest on l()an 2,550

lb Balance c/d 31.875 t2 t;
a2.50(lx 100 x 12 )
i2 "550-
i2550-

Working Notes;
(i) l)r: Z's Capial Account (lt
f)atc Particulars ( ?) Date Particulars (r)
2020 lirZsExctrrtor's,Vr (;0.(x)0 2020 Bv Balance b/d 37,500

.Julv:il July 3l By Profit and Loss 2,500

Suspense A,./c

By Revaluattrn A./c 2,500

By X's CapitalA,./c 10,938
By Y's Capital A,/c 6,562
(;0.o00 {n) (xx)

60'000- l7'500
(ii) Amount ofeach halfyearly Instalments - = {10,625
26. In the books of Power and Utility Lad.
Journal
Date Paniculars L.n Dr. ( ?) Cr. (r)
2017
Apr. I Bank A,/c Dr.
'lb Debenture Applicarion and A.llotment A,/c 2.21'r,000
(Being the application money received for 2,500; 89{
Debenrures of( t00 each @ t 90 per debenture)
Debenture Application and.{llotment y'y'c Dr 2.25,000
Discount on Issue ofDebentures A,/c I)t: 215,000

lb 8% Debentures A,,/c 2.i,0,000

(Being 2,500, ltTo Debentures allotted to
debcntureholders) llll
Sample Papers 73
 20ltt
March 3l Sccurities Premium Resene AJc Dr t 5,000
Statement ()f Prolit and Loss (Finance Cost) Dr r0,000
To Discount on lssue of Debentures A./c 25,000
tBeing the discounr on Issue ol debenrurcs written
off liom Securities Premium Reserve and Statement
ol l,lofit and l,oss

l)r: Discount on Issue of Debentures Account (l:

Daae Particulars (r) Date Particulars (()
20t7 2018
Apr. I 'Iir ti7r, Debentures AJc 2i.( x)0 March ll I By Securities Premium t5,000
Reserve A,./c

By Statcmenr of Profit 10,000

and [,oss (Finance cost)
25,(X)0 25.00o

27. ktt III, Part I

OR
(D) only (i), (ii) and (iv) are correct
28. (a) ?3,30,000

29. (b) ? 1,24,000 will be deducted from cash generated from operations
OR

k) Received { 19,000 from debtors.

30. (r) Outflow under investing acrivity {50,000

31.
S.No. Items Sub-headings
(, Capital Reserve Reserves and Surplus
(,,) Bonds l-onB-term Borrowings
(,,,) Loans Repayable on demand Short-term Borrowings
(tz) Vehicles Fixed Assets - Thngiblc Assets
G,) Goodwill Fixed ,tusets - Intangiblc Assets
(.r) Loose Tools Inventories

32. (i) Assessing the earning capacity or profitability of the firm as a whole as wdl as its
different departments so as to-iudge the financial health ofthe firm.
(ii) fusessing the managerial efficiency by using financial rarios.
33. Net Profit belbre'fax -'fax paid = Net Profit after'fax
Let the Net Profit before Thx be x
rlE

14 Accountancy Xll
 x-ffioftxl=t7,00,000
x:?7,00.000x#
: { 10.00,000
x
Net Profit before Thx = t 10,00,000
6
lnterest Payment = 100, ( 20,00,000 = ( 1,20,000

Earning before Interest and Tax = Net Profit before Tax + I !rlerest Pavnrent

={ 10,00,000 + t 1,20,000

=t I 1,20,000
Earning before Interest and Tax
Interest Coveragc R;rtio =
Interest Expense
{ I 1,20.000
Inlerest Coleragc Ratio = .- = f.ilil timcs
OR
Tlansaction Efrcct on Quick R€asons
Rrtio
(') QuicL assets havc dc€rea!€d but current liabilities havc not
changed.
(") Quicl asseB havc decrcas€d but currcnt liabilities have not
chanSed.
(,i, Quick assets have increased but currcnt liabilities have not changed
(n') Both Quick asscts and Currenr Liabilities have decreased by lhe
samc amount.

34.
(, l. Cerh Flow Foo Operating Activities:
(A) N-et Prolir bef()re Thxation |.0u.(x)0
(B) Adjustments for non-cash and non-operating items
(C) Operating profit before working capital changes t.ott.0(x)
(D),{dd: Decrease in Current Asses and Increase in Currenr Liabilities
lncrease in Tiade Payables {ti.0( x)
(E) l,ess: Increase in Current Assets and Decrease in Current Liabilities
lncrease in
-Irade Receivables (22,500)

lncrease in Inventories (83,000)

Cash generated from Operating Activities: ((.) + D - E) (X) 50,500

rlll

Sample Papers 75
 (,,) 2. Cash Flow Fom Investing Activities:
Purchase o[ l'ixed Assets (42,0(X))

Purchase of N()n-(lurrent I Dvestments (30.(xx))

Nct Cash userl in lnvestrng Activities (72,000)
(r,i) 3. Cesh Flow from Finaocing Activities:
lssue of Sharc Oapital 3( ).(XX )

Net Cash fionr l'inancing Activities lzl 30,000

4. Net lncreasc in Cash and (lash Equivalents (X - Y +
Z) 8,500
5. ,4rlrl: Grsh and (,ath Equiva ens at tlre beginning ol the year 69,:,(x)
(60,uD + 9,500)
6- (::rsh :rrrrl (.:rslr tuir'alcrrls at thc crttl ol'thc \(ilr (:').1,(XX) + 2,1,(X)0) ;s.l loo

ttt

tllt

76 Accountancy-Xll
 SAMPLE PAPER (
3
S ! LVE I

Time Allowed: 3 hours Max, Marks: 80

Cenetql Instruc,ionsi sattr ns OBSIi *rtrt/t Otrttlion I\lrr-2022-2) (Solted)

PARI-A
(Accounting for Partnership Finns and Companies)
l. Asha and Nisha are partners sharing profits in the ratio of 2:1. Kashish was admitted for
l/4th share of which l/8th was gifted by Asha. The remaining was contributed by Nisha.
Goodwill of the firm is valued at (40,000. How much amount for goodwill will be
credited to Nisha's Capital account?
(a) {2,500 (r) <5,000
(r) t20,000 (d) t40,000
2. Given below are two statements, one labelled an fusenion (A) and the other labelled as
Reason (R):
Assertion (A): Transfer to reserves is shown in P & L Appropriation A,/c.
Reason (R): Reserves are charge against the profits.
In the context of the above statements, which one of the fbllowing is correct?
Codes:
(a) (A) is correct, but (R) is wrong.
(r) Both (A) and (R) are correct.
(r) (A) is wrong, but (R) is correct.
(d) Both (A) and (R) are wrong.
3. Calculate the amount of second & final call when Abhijit Ltd, issues Equity sharesof{10
each at a premium of 40Ea payable on Application (3, On Allotment {5, On First Call
<2.
(a) Second & final call 13. (b) Second & final call ? 4
(r) Second & final call ( I . (d) Second & hnal call { 14.
OR
Those debentures in which the holders are given option to partially or fully convert
debentures into equity shares after a specified period are known as:
(a) Registered Debentures (D) Mortgage Debentures
(r1 Naked Debentures (d) (irnvertible Debentures
4. There is a profit of t25,000 on revaluation of assets and liabilides of the partnership
firm of Mohit, Kanti and John. As a result of change in profit-sharing ratio, Mohit
sacrifices his 3/lOth share in favour ofJohn. The partners decided to record the effect
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Sample Papers 11
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 of revaluation without affecting the book values of the assets and liabilities by passing a
single Journal entry.
Which of the following is correct?
(a) Dr. John's Capital Ar/c {7,500 (D) Dr. Mohit's Capital ,Ay'c t7,500
(r) Dr. John's Capital A,ic t25,000 (d) Cr. Mohit's Capital rii/c Q5,000
OR
In a partnership firm, (65,000 is to be transferred to General Reserve from Net Profit
of {90,000,journal entry would be:
(a) General Reserve Ay'c Dr. <65,000
Ttr Profit and Loss Appropriation A,,/c {65,000
(D) Profit and Loss Appropriation .Ay'c Dr. 465,000
To General Reserve A,/c <65,000
(c) Profit and Loss A,,/c Dr. (65,000
To General Reserve A,./c {65,000
(d) Profit and Loss Appropriation Ay'c Dr ?90,000
To General Reserve .Ay'c t90,000
5. Ajay and Vinod are partners in the ratio of3:2. Their hxed Capital were {3,00,000 and
t4,00,000 respectively. After the closing of accounts for the year, it was observed that
the Interest on Capital which was agreed to be provided at 57a p.a. was emoneously
provided at lDEc p.a. By what amount will Ajay's account be affected if partners decide
to pass an adjustment entry for the same?
(a) Ajay's Current A,/c will be Debited by t 15,000.
(D) Ajay's Current A,/c will be Credited by {6,000.
(r) Ajay's Curr€nt Ay'c will be Credited by <35,000.
(d) Ajay's Curre nt .Ay'c will be Debited by (20,000.
6. A company purchased building of (4,95,000 from another firm. Payment was made by
issuing 97o Debentures of{ 100 each atapremium of 107o. The 99o Debentures Acount
will be credited with:
(a) ?4,95,000 (r) ?4,50,000
(r) (49,500 (d) None of the above
OR
In case of issuance ofdebentures, underwriting commission cannot be increased by:
(a)21o (b) 2.57o
G) 37o (d) 57o
7. Equity share of(l0against which l8 was called upby the company and received (6on
it, was forfeited, then what amount will be debited to share capital account?
(a) (2 (6) ?8
G) t6 (d) t l0
8. Rex, Tex and Flex are partners in a firm in the ratio of 5:3:2. As per their partncrship
agreement, the share ofdeceased partner is to be calculated on the basis of profits and
turnover of previous accounting year.
Tex expired on 3lst December,20l9. Tirrnover till the date ofdeath was ? 18,00,0O0.
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78 Accountancy Xll
 Their profits and turnover lbr the year 2018- 19 amounred to t4,00,000 and t20,00,000
respectiv€ly.
An amount of{ _will be given to his executors as his share of prolits till the
dare of death.
(a) ? I,28,000 (r) < I,08,000
(c) ? 1,20,000 (d) {2,2o,ooo
OR
In the absence of partnership deed, partners are entitled to an interest on the amount
ofadditional capital advanced by him to the firm at a rate of:
(a) entitled for 69c p.a. on their additional capital, only when there are profits
(D) entitled for lUlc p.a. on their additional capital
(r) entitled tor lzVo p.a. on their additional capital
(d) not entitled for any interest on their additional capital
Read thc follouring hpthziical situation, ansaer question no, 9 and l0:
Varun Nangia and Saurabh Patel are concerned with protecting and preserving the
natural environment. They started a hrm as partners and got engaged in a business of
making solar heaters. They are sharing profits and losses in the ratio of 7:3. They have
fixed capital accounts stood as:
Varun Nangia (9,00,000
SaurabhPatel t4,00,000
They have a partnership deed that provides for the following:
(i) lnterest on Capital @ VIc p.a.
(ii) Varun Nangia'salary {50,000 p.a.
(iii) Saurabh Patel's salary (3,000 p.m.
Their accounts executive, however, distributed the net profit between the partners
without providing fi.rr the above provisions.
The partnership hrm made a profit of{2,78,000 during the year ended on 3l st March,
2021 .

Varun and Saurabh instructed the accounts executive to pass the necessary adjustment
entry to rectify the error.
On the basis of the above inlbrmation, answer the following quesdons:
9 At the end ofthe year, Varun Nangia is entitled to get an interest on capital amounted
to_.
(a) (42,000 (6) <81,000
(r) t72,000 (d) Nil
10. What will be the adjustment entry to rectify the errors committed by the accounts
executive?
(a) Varun's Capital A,/c Dr. { I I,100
To Saurabh's Capital A,/c ? l I ,100
(6) Varun's Current A,/c Dr. ? I 1,100
To Saurabh's Cunent Ay'c tll,lOO
(r) Saurabh's Current A,/c Dr { I 1,100
To Varun's Current A,,/c { I I,100
(d) Varun's Current A'/c Dr. ?22,100
To Saurabh's Current A,/c ?22,100
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Sample Papers 79
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 ll. Which ofthe following statements is correct in context ofpartnership?
(a) Profit sharing will be in the capital ratio in the absence ofdeed.
(6) Maximum no. ofpartners in case ofa banking Iirm may be 20.
(.) Interest on partner's loan will be provided @67o p.a. in the absence ofdeed.
(d) 'fhere will be maximum no. of2 partners in a normal partnership.
12. What will be the correct sequence ofevents?
(i) Forfeiture of shares
(ii) Default on Calls
(iii) Reissrreofshares
(iv) Amount transferred to capital reserve.
Options:
(a) (,), (,u),(,i), (,,t) (D) (,,), (tu), (,), (,,,)

k) (ir), (t), (iii), (iu) (d) (,i,), (,u), (,), (t,)

l!. As per Section 52 of the Companies Act 2013, Securities Premium Reserve cannot be
utilised for:
(a) Writing offcapital losses
(D) Issue of fully paid bonus shares
(r) Writing offdiscount on issue of securities
(d) Writing off preliminary expenses
14. S, T and U were partners in a firm. They admitted V as a new partner. S and T sacrificed
l/3rd and l/4th of their shares respectively in favour of V Calculate the new profit
sharing ratio of S, T, U and V
(a) 9:8:12:7 (D)8:9:12:7
1r1 12:9:8:7 (dl 7:8:9:12
15. Aand B are partners havingcapitals (2,00,000 and {50,000 respectively. Firm hasprohtof
?50,000. Share in profit for A and B will be:
(a) A {25,000; B t 25,000 (D) A{30,000; B {40,000
(r) A?40,00018{ 10,000 (d) A{10,000; B <40,000
OR
Calculate intereston drawings ifX withdraws { 16,000 in the beginning ofevery month for
9 months. (Rate of Interest @ loVo p.a.\
(a) t6,000 (6) ?4,800
(r) t5,400 (d) t6,400
16. The balance sheet at the time of dissolution of hrm depicts debtors of (80,000 and
provision for doubtful debts of (10,000. lf debtors became bad of t5,000 and rest
of debtors are realised at a discount of 67o, then amount realised from debtors will
be:
(a) t 73,900 (r) ( 74,500
(r) ? 75,200 (d) t 70,500
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//, BO Accountancy-Xll
////r,,.
 17. Neetu, Meetu and Teetu were partners in a firm. On I st Jarruary, 20 I 8, Meetu retired.
On Meetu's retirement the goodwill of the firm was valued at {4,20,000.
Pass necessary journal errtry for the treatment ofgoodwill on Meetu's retirement.
Show your workings clearly.
18. Rakesh and Roshan are partners sharing proflrts in the ratio of 3:2 with capitals of
{40,000 and {30,000 respectively. They withdraw from the firm the Ibllowing amounts
for personal use.
Partner Date (r)
Rakesh S lst May, 2019 600
30th June, 2019 500
3lstAugust,2019 I,000
lst November, 2019 400
3l st December, 2019 1,500
3lstJanuary2020 300
lst March,2020 700
R()shan Ar the beginning of each month 400

Interest is to be ch arged @ 67c per annum. Calculate interest on drawing, assuming that
books ofaccounts are closed on 3l st March every year.
OR
A and B were partners in a irrm sharing prohts in the ratio of 5 : 3. Their fixed capitals
on 3lst March,20l7 were : A ( 60,000 and B { 80,000. -fhey agreed to allow interest
on capital @ l2% p.a. 1'he profit ofthe firm flor the year ended 3lst March,20lu before
allowing interest on capitals was ? 12,600.
Pass necessary journal entries for the above transactions in the books of A and B. Also
show your working notes clearly.
19. X Ltd. invited applications for issuing I ,000, 97o debentures of ( 100 each at a discount
of6%. Applications for [,200 debentures werc received. Pro-rata allotment was made
to all the applicants.
Pass necessary journal entries f<rr the issue of debentures assuming that the whole
amount was payable with application.
OR
On 28th Feb., 2016 the first call of ?2 per share becanre due on 50,000 equity shares
alloned by Kumar Ltd. Komal a holder of 1,000 shares did not pay the first call money.
Kovil a holder of750 shares paid the second and final call of?4 per share along with the
first call.
Pass the necessary journal entry for the amount receiv€d by opening Calls-in-Arrears
and Calls-in-Advance account in the books of the company.
20. A partnership firm earned net profits during the last three years as folk>ws:
Year Net Profit (a)
2008-2009 1,90,000
2009-20t 0 2,20,000
2010-201 I 2,50,000

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Sample Papers BI
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 -fhe capital employed in the firm throughout the above mentioned period has been
{4,00,000. Having regard to the risk involved, l57o is considered to be a fair return on
the capital. l-he remuneration of all the partners during this period is estimated to be
{ I,00,000 per annum.
Calculate the value of goodwill on the basis of (i) two years' purchase of super profis
earned on average basis during the above mentioned three years and (ri) by capiulisation
method.
21, Disha l,td. purchased machinery from Nisha Ltd. and paid to Nisha l-td. as follows:
(i) By issuing 10,000, equity shares of{ t0 each at a premium of l0%.
(ii) By issuing 200, 9% debentures of{ t00 each at a discount of 107c.
(iii) Balance by accepring a bill ofexchange of{50,000 payable after one month.
Pass necessary journal entries in the books of Disha Ltd. for the purchase of machinery
and making payment to Nisha l.td
22. Elina, ltrry and ()auri were partners in a firrn sharing profits in the ratio of2 : 2 : l. On
30th September, 202 I , their lirm was dissolved. On the date of dissolution, the Balance
Sheet ()f the firm was as follolvs:
Balancc Sheetas at ) I sl March, 2021
Liabilities ( r) Assets (l)
Capital Accounts: Gauri's Capitat Account 500
Elina I,30,000 Profit and [,oss Account 10,000

Ferry 1.00.000 2,30,000 l-and and Building l,00,000

Creditors 45,000 Furniture 50,000
Outstanding Expenses 17,000 Machinery 90,000
Debtors 36,500
Bank 5,000
1):1,{ n )0 :.1 .1 ):.1 .0 ( x r

'fhe firm was dissolved on the folk)wing terms:

Ferry was appointed to undertake the prclcess ofdissolution for which he was allowed a
remuneration of 45,000. Ferry agreed to bear the dissolution expenses.
-l-he
land and building was sold through a property dealer at a price of I l0% of the
book value. A commission of l7o on the selling price ofland and building was paid to the
property dealer.
Creditors were payable on an average of 3 months from the date of dissolution. On
discharging the creditors on the date of dissolution, they were allowed a discount of 57c.
On the basis of the above information, you are to suggest the answers of the following
questions along with passing the.journal entries in the following cases:
(i) What will be the amount realised from the land and building?
(ii) What amount will be payable to the creditors?
(iii) What will be the treatment of the dissolution expenses?
(iu) Distinguish between 'Reconsdtution of Partnership' and 'Dissolution of Partnership
Firm'on the basis ofclosure ofbooks.
23. MCS Ltd issued .10,000 shares of ( l0 each payable at (2 on application, {4 on allotment
and balance in two equal instalments.
Applications were received for ti0,000 shares and the allotment was made as follows:
'tllt'
B2 Accountancy-Xll
/il,,
 (i)
Applications o[50,000 shares were allotted 30,000 shares.
(ii)
Applications of 30,000 shares were alloued I 0,000 shares.
Neeraj to whom 600 shares were alkrtted {iom category (i) failed to pay the allotment
money.
Pass the necessary journal entries up to allotrnent only.
OR
Give.iournal entries lilr forfciture and reissue ofshares:
(i) X Ltd. forfeited 30 shares o{ tl0 each, {7 called-up, on which Mahesh has paid
application and allotment money o[{5 per share. Ofthese, 25 shares were reissued
to Naresh as fully paid up for (6 per share.
(ii) ZLrd. forfeited l0 shares of{ l0 each issued at l0% premium to Shyam ({9 called-
up) on which he did not pay ?3 ofalkxment (including premium) and first call of
(2. Out ofthese, 6 shares were reissued to Ram as fully paid up f<rr ?8 per share
and 2 shares to Surai as fully paid-up @ {12 per share at different intervals of
time.
24. Madhuri and Arsh were partners in a firm sharing proht and losses in the ratio of3:1.
Their Balance Sheet as at 3lst March,20l9 was as lirllos's:
Balance Sheet of Madhuri and Arsh
as at ) I st March, 2019
Liabilities ({) Assets (?)
Capital: Plant and Machinery 4,70.000

Madhuri 3,00,000 Investments I .10.{x)0

Arsh 2.00.000 5,00,000 Debtors I,20,000

Workmen's Oompensation ['und 60,000 Izss; Provision for
Creditors r,90,000 doubtful debts fQIQQQ 1,10,000
Employees' Provident Fund I,10,000 Stock I,40,000
Cash 30,000
8,(n),000
--[9]!]9Ll
On lst April, 2019, they admitted Jyoti into partnership {br l/4th share in the profits
of the hrm. Jyoti brought proportionate capital and (40,000 as her share of goodwill
premlum.
The lollowing terms were agreed upon:
(i) Proviskrn for doubtful debts was to be maintained at l0% on debtors.
(ii) Stock was undervalued by {10,000.
(iri) An old customcr whose account was written olf as Bad Debts, paid t 115,000.
(irr) 20% ofthe investments were taken over by Arsh at book value.
(u) Claim on account ofworkmen's compensation amounted to (70,000.
(rri) Creditors included a sum of{27,000 which was not likely to be claimed.
Prepare Revaluation Account and Partners' Capital Accounts.

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Sample Papers B3
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 OR
Sushma, (iau&rm and Kanika wele partners in a firm sharing profis in the ratio of5 : 3 : 2
()n 3l st March, 2018, their Balance Shect was as follows:
Balance Sheet of Sushma, Gautam and Nanika
as at ) lst March, 2018
Liabilities ({) Assets (()
Creditors 60,000 (lash at Bank I,40,000
Employees' Provident Fund 40,000 Sundry Debtors t,60,000
Profit and l-oss Account I,00,000 Stock 2,40,000
(:apitals: Investments 2.00,000
Sushma 3,00,000 l'ixed Assets 3,60,000
Gautam 2,50,000
Kanika 3.50.000 {}.(x).oo0
I l.()0.0(x) I 1.00.000

On the above date, Sushma retired and it was agreed that :

(i) Fixed Assets will be reduced to ? 2,90,000.
(ii) A provision of 57o on debtors for bad and doubtful debts will be created.
(iii) Stock was to be valued at { 2,18.000. Sushma took over the stock at this value.
(irD (;oodwill of the firm on Sushma's retirement was valued at < 8,00,000. Sushma's
share ofgoodwill was treated by debiting Gautam and Kanika's Capital Accounts.
(u) Sushma was paid cash brought by Gautam and Kanika in such a way that their capitals
lrccame in profit sharing rati() and a balance of t 58,000 was left in the bank.
(ui) Gautam and Kanika will share the future profits in the ratio of2 : 3.
Prepare Revalrration Account, Partners' Capital Accounts.
25. X, Y and Z were partners in a firm sharing profits and losses in the ratio of5 : 3 ;2. On
3l .3.2019 their Balance Sheet was as follows:
Liabiliries ( r) (l)
(lapital Accounts Building 50,000
x 75,000 I'atents 15,000
Y 62,500 Machinery 75,000
Z 37.500 I,75,000 Stock 37,500
Creditor_s 42.r'r00 Debtors 20,000
Cash at Bank 20,000
2,17,500 2,17,500
It was agreed that:
Z died on 3lstJul1, 2019.
I
(a) Goodwill be valued at 22 year's purchase of the average prohts of the last four
years, which were as follows:
Years Profits ({)
2015-2016 32,500
2016-2017 30,000
2017-2018 40,000
2018-2019 37,500

'llr'
B4 Accountancy Xll Ilt
 (D) Machinery be valued at t70,000; Patents at ?20,000 and Building at t62,500.
(.) For the purpose ofcalculating Z's share ofprofis in the year of his death the profits
in 2019-2020 should be taken to have beerr accrued on the sanre scale as in 2018-
2019.
(d) A sum of t17,500 was paid immediately to the executors ofZ and the balance was
paid in four halfyearly instalments together with interest at l2% p.a. starting from
3 r. l .2020.
Give necessary journal entries to record the above transactions and Z's execut()rs'
account till the payment o[ instalment due on 3 l. I .2020.
26. Pass the necessaryjournal entries for issue of I,O00,7qc f)ebentures ol { 100 each in the
following cases:
(a) Issued at 5% premium redeemable at a premium of l0%.
(6) Issued at a discount of 5olo redeemable at par.

PARI-B
(Analysis of Financial Statements)
27. Which of the following is not a main head of the Balance Sheet of a Company as per
Schedule III of the Companies Act, 20 t 3?
(a) Sharcholders' Funds (D) Non-current liabilities
(r) Long-term Provisions (d) Non-current Assets
OR
Which one of the following is correct?
(i) Total Asses to Debt Ratio shows relationship between total assets and total long-
term debts of the business.
(rr) Totai fusets ro D.bt Rrrio= TottlAtttt!
Longterm Debts
(iii) Long-term debts refer to debts that will nrature alier one year from the date of
Balance Sheet or after the period ofoperadng cycle.
(iu) 'fotal assets to debt ratio of 3: I is considered safe flor the investors.
Choose the correct option:
and(ii)
(a) only (i) (r) Only (i) and (iii)
(c) only (d) and (iu) (d) Only (i),(ii) and (iii)
28. Which of the {bllowing transactions does not affect current ratio?
(a) Credit sale ofgoods (6) Cash sales ofgoods
(c) Amount received from debtors (d) All ofthe these
29. An example ofcash flow from investing activities is:
(a) Issue of debentures
(6) Repayment of long-term borrowings
(c) Purchase of'raw materials for cash
(d) Sale ofinvcstment by non-financial enterprise

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Sample Papers 85
N,
 OR
Which of the following is not an investing cash flow?
(a) Purchase of marketable securities for (25,000 cash.
(D) Sale of land tbr t28,000 cash.
(r) Sale of2,500 shares (held as investment) for {15 each.
(d) Purchase ofequipment for ?500 cash.
30. What will be the Cash Flows from Investing Activities from the following inforrnation
Particulars Note S lst March, ii lst l\larch.
No. 2022 (r) :0! I (a)
Investing in Shares ol [)elko I-td 26,00,000 16,00,000
I l7 l.()r]g-t(r'n) ln\(slrlcnts i1,00,000 r0,00,000
l'lant and lll:rchinet t t2,00,000 9,00,000
()orxlu ill 4,00,000 1,40,000

Atlrlitional I n{irrmation:
(i) t0% dividend was received from Delko Ltd.
(ii) A machine costing <70,000 (Depreciation provided thereon { t0,000) was sold
for 60,000. Depreciation charged during the year was {50,000.
(a) Cash used in Investing Activities (6,40,000
(6) Cash {iom lnvesting Activities {6,40,000
(r) Cash from lnvesting Activities {6,20,000
(d) Cash Irom lnvesting Activities (6,20,000
51. State under which major headings and sub-headings will the followingitems be presented
in the Balance Sheet ol a company as per Schedule-lII, Part-l of the Companies Act,
2013.
(i) Prepaid Insurance (ii) lnvestment in Debentures
(iii) Calls-in-arrears (ir) Unpaid dividend
(r) Capital Reserve (ri) Loose'lools
52. "Calculated Ratio is calculatcd to ascertain the short-tcrm solvency of the firm." A
crlrrcnt Ratio of 2: I is considered an ideal ratio,"
A very high current Ratio may not be lhvourable. State reasons,
-l-urnover
33. Calculate the Working Capital Ratio from the flollowing information relating
to Balance Sheet:
Particulars ({ )

Share Capital 80,000

General Reserve 30,000
Surplus, i.e., Balance in Statement of Profit and Loss 50,000
Long-term Borrowings 80,000
Trade Payables 60,000
Fixed Assets 1,60,000

'rllr'
B6 Accountancy-Xll
 'liade Receivablcs 1.10,(x,0
(lash and (lash lirluivalents 20,(xx)

Other lnformation: Revenue from Opcrations during the year 2012-2013 anx>unted ttr
? t,60,000. Calculate Working Capital 'l'urnovcr Ratio.
OR
From the fbllowing, calculate the 'Gross Profit Ratio' and 'Working (lapital '[irrnover
Ratio':
({) (? )

Revenue from ()perations :t0.u).(xx) Cost of Rer'enue from Operations 20,00.000

Current Assets {;.00,(x)0 Current l-iabilities 2,00.000
Paid-up Share Capital 5.00.{xx)

34. Read the following hypothetical situation, and answer the questions that follow:
After conrpleting his MBA, Manak Gupta initiated a sta( up that provides a platfbrm tbr
the App Developme nt'.
ibllowing are the Balance Sheets of his start up Dreams Converge Ltd. as at 3l .3.2022
and 31.3.2021 .
Paniculars Note No. ,1.3.2022 9t.3.202r
( r) ({)
I. EQUITY AND LIABILITIES
l. Shareholdero' Fhndsr
(a) Share Capital 7,00,000 5,00,000

(D) Reserves and Surplus 3,50,000 2,00,000

2. Non.Current Liebiliticc:
Long Term Borrowings :i0.( )(X ) I,(X).000

3. Gurrenr Liabilities:

(a) Tiade Payables 1,22,000 t,05,000

(D) Shorr term Provisions (Provision lbr tax) 50,000 30,000

TOTAL 12.72.0(x) 9,35.(X)0

II. ASSETS
l. Non Curreut A$€tsl
(a) Fixed Assets:
(i) Tingible Asses 5,00,000 5,00,000

(ii) Intangible Assets 95,000 1,00,000

(D) Nou-curreut Investments I,00.000 Nil

rl

Sample Papers B7
 2. Curr€nt Arscts:

(n) Inventory 1,30,000 55,000

(D) Trade Receivables I,47,000 80,000

(r) Oash and Cash Equivalents 3,00,000 2,00,000
TOTAL t2,72,000 9,35.000

Notes to Accounts

Noae Particulars 51.3.2022 (r) 31.3.2021(r)

No.
I Thngible Assets:
(iorrrputers and related equipments 2,80,000 2,00,000
Accrrnttrlated depr-cciation (l,00,000) (80,000)
I,80,(XX) l,20,000
0llice Prenrises 3,20.(X)0 3,80,000
5.00.000 ) l).lI)0
Inl.ngible Assers:
(kxxlwill 95.000 l r)r).0oo

During the year, the company had to sell some computers of the book value of 80,000
(accumulated depreciation t 20,000 ) at a loss oft 18,000.
You are required to:
(i) (lalculate operating profit belore working capital changes
(ii) (lalculate cash inflow from operating activities
(iii) Prepare 'Computers and Related Equipments Account'.

tlt

rl

BB Accountancy Xll Irll1

 nswel
l. (r) ?5,000
2. (a) (A) is correct, but (R) is wrong.
3, (D) Second & final call { 4
OR
(d) Converdble Debentures
4. (a) Dr. John's Capital A,/c (7,500

OR
(D) Profit and Loss Appropriation ly'c Dr. {ti!r,0(X)
-ftr General Reserve A/c (05.000
5. (D) Aiay's Current A',/c will be Credited by (6,000.

6. (r) <4,50,000
OR
(b) 2.5Vo
7. (D){8
8. t 1,08,000
OR
(d) not entitled for any interest on their additional capital
9. (r)81,000
(D) Varun's Current A,/c Dr. t I 1,100
To Saurabh's Current A'/c tll,l00
I l. (c) Interest on partner's loan will be provided @69c p.a. in the absence of deed.
12. (c) (,i), (i), (,,i), (iu)
13, (a) Writing offcapital losses
14. (6) 8:9:12:7
15, (a) A 125,000; B ? 25,000
OR
(a) ( 6,000
16, (d) t 70,500
17. Books of the frrm
Journal
Date Particulars L.F. Dr. ( ?) Cr. ( l)
20tu Neetu's Capital A,/c Dr 70,000

.fan. I Teetu's Capital Ay'c f)r. 70,000

-Io Meetu's Oapital Ay'c I,,10,0()0
(Being Meetu's share of gmdwill credited in her
capital account by debiting Neetu's and lbetu's
caoilal account in the gaining ratio)

'rlll'

Sample Papers 8g '\

..\\\\\\
 Working Note:
Old Profit Sharing Ratio = l:l: I
Neetu's Share : l/3, Meetu's Share = l/3 and Teetu's Share = l/3
Meetu retired on lstJan., 2018; So, Gaining Ratio = l:l; Goodwill = t4,20,000
Meetu's share = 4,20,000 x l/3 = 1,40,000, Neetu's gain = 1,40,000 x l/2 = 70,000,
Teetu's gain = 1,40,000 x l/2 = 70,000
18. Calculation of Interest on Rakesh's Drawings
Date of Drawings AIDL sithdralal (?) Period (No. of Product ( l)
Monahs up to S lst
March,2020)
3l st May, 2019 600 t0 6,000
30thJune,2019 500 4,500
3lst August, 2019 I,000 7 7,000
lst November, 2019 400 2,000
3l st December, 20tO I,500 3 4,500
5 I st January,2020 300 600
lst March,2020 700 I 700
Total of Products 25.300
Interest on Rakesh's Drawings (By Product Method)

='roral of Product x =ffix$ = 25,300, ,*g-r# = ?126.s0

Interest on Rohan's Drawings (By Average Period Method)
:rotalofProductx
ffixjf =4,800x ffi"fi = <rso

OR
Journal
Date Paniculars t_.*: Dr. ( () Cr. (?)
20lrl
March ll I Interest on (lapital A"/c Dr t2,(;(x)
To As Current A/c 5,.100
To B's Current A,/c 7,200
(Being interesr on capital credited to Parrners'
Current Ay'cs)
P& L Appropriation A./c l)r: I !.(;0{)
To Interest on Capital A,./c l:1.(nx)
(Being interest on capital rransferred to P& [
Appropriation A,/c)

Working Notes:
Interest on Capitals:
A= l27c of{60,000= t7,200, B= l2% of {80,000= ?9,600, lbtal interest = { 16,800
Sincc prohts are insu[Iicient, Interest on capiral will be credited in the ratio of7,200:9,600
:
i.r. 3:4 so, A= 3/7 of I12,600 t5,400, B= 4i7 of ? 12.600=t7.200

'rll!
/t, 90
////. Accountancy-Xll
/////L.
 l9 X. Ltd.
Journal
Datc Parliculars L.F. Dr. ( l) Cr. ( ?)
Bank A/c l)r. I,12,800
'Ib Debenture Application and A.llotment A,./c
990 | .I 2.11(X)

(Being application money received for 1,200

dcbenrures @ (94 each )
9% D€benture Application and Allotment A,/c Dr. I,12,800
Discounr on lssue of Debentures ly'c Dr. 6,000

Tir 97o Debentures A,./c l,(x),o(x)

To Bank A/c 18,800

(Being 1,000 9% debentures allotted on prorata

basis)
OR
Kumar Ltd.
Journal
Date Particulars L.F. Dr. (?) Cr. ( a)
2016 Bank A/c Dr I .0I .(n0
!'eb.28 Calls-in-Arrears A,/c Dr 2.000
To Equity Share First Call A,,/c I,00,000
To Calls-in-Advance A'/c 3,000
(Being call money received except on t,000 shares
and received in advance on 750 shares)
t ( 1,90,000 + 2,20,00 + 2,50,000) _ ?6,60,000
= ? 2,20,000
20. Average Profit = 3
Actual Average Profit : Average Profit - Remunerati<xt
: t2,20,000- (1,00,000 = tl'20'000
Capital Empl ed x Norrnal Rate o( Return
(i) Normal Prolit = l0
4,00,000
x I5: t 60,000
l0r
Super Profit = Actual Average Profit - Normal Profit
= t 1,20,000 - {60,000 = ?60,000
:
Goodwill Super prolit x No. ofyear's purchase
=?60,000x2=t1,20,000
(ii) Capitalisation Method:
Goodwill = Capitalised value ofAverage Prohts - Actual Capital emPloyed
Avera e l1-ofit
Capitalised value ofAverage Profits = Norm Ratc ol' Returrr x 100

= _13ft!99 x roo= ( 8,oo,ooo

Goodwill = 18,00,000 - t4,00,000 = t4,00,000

,lJ

Sample Papers 91
N
 21. Disha Ltd.
Journal
l)ate Paniculars L.E Dr. ( {) Cr. (?)
20t8 Machinery Ay'c Dr. I,78,000
March 3l To Nisha l-td. I,7tt,000
(Beins machinery purchased liom Nisha Ltd.)
Nisha Ltd. Dr. I,10,000
To Equity Share Capiral Ay'c I,00,000
To Securities Premium Resene A,/c l0,oo0
(Being 10,000 equiry shares of I l0 each issued at
l0% premium)
Nisha Ltd. Dr. 18,000
Discount on Issue of Debenrures A/c Dr. 2,000
To 97c Debentures A,,/c 20,000
(Being 200, 97r, debentures of( 100 each issued at
l0% discouqt)
Nisha Ltd. Dr. :,000
To Bills Payable A,,/c 50,00t)
lBeing balance payment madc bv accepring rrne
month bill ofexchanse)
22. (,) The amount realised from the land and building will be calculated as follows:
(1,10,000 (Sale)- (1,100 (Commission) : ?1,08,900
Followingjournal entry will be passed:
Bank A,/c Dr. ( 1,08,900
To Realisation A'/c ? 1,08,900
(Being land and building realised)
(,,) The amount to b€ paid to the creditors will be calculated as fbllows:
Discount to the creditors = ?45,000 =f Z,ZIO
" ffi
Amount to be paid = {45,000 - (2,250 = < 42,750
Followingjournal entry will be passed:
Realisation A,/c Dr. {42,750
To Bank A,/c <42,7b0
(Being creditors paid at a discount of 570)
(iit) For the treatment of Dissolution Expcnses, following journal entry will be passcd:
Realisation Ay'c Dr. ?5,000
To Ferry's Capital Ay'c t5,000
(Being remuneration paid to Ferry lbr undertaking dissolurion process)
(it')
Basis R€conslirution of Partnership Dissolution of Partnership Firm
(:krsrrle ol Brx,kr Closure ol books is nor required All thc books ofaccounts are
since the business is not closed since the business is
terminated. terminated.

llr'
/t. 92 Accountancy*Xll
////r,,.
l
 23. Journal
Date Particulars L.F. Dr, ( ?) Cr. ( l)
Bank A,,/c (80,000 x 2) Dr. I.(i0.(xx)
To Share Application y'y'c 1,60,000
(Being application money receivcd on 80,000
shares)
Share Application A,,/c t)l t.(;0.00{)
To Share Capital A,,/c 80.000
Ti> Share Allotment A"/c 80,000
(Being application money transferred and
adiusted)
Share Allotment A"/c (40,000 x 4) Dr I.{i{).(xx)
1tr Share Capital A,./c I,60,000
(Beins allotment monev due on 40.000 shares)
Bank lJc l)r: 7U..1(X)
-lir
Share A]krtment A,/c 7tr,.100
(Beins alk)tment money received) (WNll)
Working Notes:
l. Shares Applied Shares Allotted
(i) 50,000 30,000 (Pro-rata allotment)
(,i) 30,000 10,000 (Pro-rata allotment)
(r,i) 80,000 40,000 (Pro-rata allotment)
Shares applied by Neeraj =OOOx ffi = 1,000 Shares
2. Amount adjusted on Allotment on Neeraj's Shares (<)
Application money received ( I,000x 2) 2,000
Application money required (600x2)
.I-e.s.s; ( r,200)
Adjusted on allotment Ffo
3. Calculation of Amount Received on Allotment
Allotment money due (40,000x4) I,60,000
l,rss. Excess received with application (40,000x2) (80,000)
1-rss. Calls-in arrears (Neeraj) u0,000
Due (600x4) 2,4OO
application
lr.ss. Surplus on (tt00) I ,600
Amount received on alkrtment ? 78.400
OR
(i) Journal ofX Ltd.
Date Particulars L.r. Dr. (l) Cr. ( ?)
Share Capital A,ic (30 x (7) t)r !l0
To Calls-in-Arrears A,/c (30 x a2) 60
Tb Share Forfeited A,,/c (30 x {5) 150
(Beins 30 shares of Mahesh forfeited)
Bank.Ay'c (25 x t6) Dr. 150
Share Forfeited A"/c (25 x ?4) Dr 100
To Share Capital A,./c (25 x { l0) 250
(Being 25 forfeited shares reissued @r ?6 per
share as fullv oaid)

!llI
Sample Papers 93
N
 Share Firrfcited A,/c l)r: :.15
-lb (:apital Rcserve AJc !.'t
(Being profit on reissue of25 forfeited shares
IIatrsk.r rrtl to r';r ital reservc \\'\ I
(,i) Journal of Z Ltd.
Date Particulars L.F. Dr. (l) Cr. ( l)
Share Capital A/c Dr 90
Securities Premium Reserve A/c Dr lo
To Share Allotment A,/c 30
Tir Share First Call A/c 20
To Share Forfeited A'/c 50
(Being l0 shares ofShyam for('eited)
Bank A,/c Dr. .1ri

Share Forfeited A,/c Dr. l'..1

To Share Capital A,,/c (io

(Being 6 forfeited shares reissued at ?8 per share
as fully paid-up)
Share lbrfeired AJc Dr ls
To Capital Reserve A,/c llt
(Being profit on 6 forfeited shares transferred to
capiul reserve) (WN2)
Bank Ay'c [)r: !l
Ttr Share Capital A'/c 20
To Securities Premium Reserve A,/c I
(Being 2 forfeited shares reissued at { 12 per
sharc)
Share Forfeited A,/c Dr. lr)
To (;apitzl Reserve A,/c l0
(Being profit on 2 forfeited shares transferred to
caPital reserve)

24. Dr. Revaluaaion Account (lr.

Particulars (t) Particulars (()
Io Provision ftrr Doubtful DebL! A/c: 2.000 By Strxk A'/c 10,000

fo Claim on lvorkmen 10,000 By Bad Debts Recovered Ay'c 15,000

Compensation Fund .Ay'c

fo Profit on Revaluation trans{brred; Br (lreditors A,/c '17.0(x)

Madhuri's Capital A,,/c 30,000

Arsh's Capital A,/c 10.000 .1o,0(x)

l,LQ{IQ 52,000

rllll

94 Accountancy-Xll
 Dr. Partners' Capital Accounts Cr.
Paniculars M.dhuri .A.rrh Jyoti Particularg Madhuri Arsh Jvo.i
(t) (?) (t) (?) (?) (l)
To Investmen( A/c 22.000 Bv Balance b/d 3,00.(xx) 2,00,000
To Balance c,/d 3.60.(X)o t.9n.000 l.ll6.0{x) Bv Revaluati()n ,L/c 30.(xxt 10,000

Bv (;ash A/( LlJ6.(X){)

Bv Premium {br 30.o00 t0.000

(;oodwillA.rc
3,60.000 2,20.000 1.86.0(x) i.t.(i0.(x){) :.!o,00o t.rJ{i,0t)o

Working Notes:
Calculation ofthe amount to be brought in byJyoti as Capital
Adjusted Capital ofthe Old Partners:
Madhuri ?3,60,000
Arsh < I,98,000
? 5.58.000
(D)Total Capital of the new firm

= (5,58,000 x 413 : ?7 ,44,000

1r) Calculation ofJy()ti's Proportionate Capital = 77,44,000 x l14
= { I,86,000
OR
Dr. Revaluation Account ( ir:

Paniculars (t) Particulars (()

'Ti) F-ixed Assets A.tu 7 0.( )( )o By l-oss on Revaluation
transferred to:
To Provision for Doubtful Debs ,Ay'< n.(x)0 Sushma's Capital A/c 50,000
To Srrrk A,/c '12.000 Cauram's (iapital A,,/c 30,000
Kanika's (iapital &c 20.000 t ,00,(o0
I oo oo{) I.00.(xx)
t)r Partners' Capital Accounts ( lr
surhllr
{t) l? I (?) (t) (l) (t)
20.000 By Balance t/d ,.m.000 2.50.000 J.50.m0
To sush@ i Capilal.A/c 3,20,000 By Profil and l,rs Ar'c 50.000 30.000 20.000

2,lu.fi)o By C.uum's Gpital,A,/( 80, )0

To BanL n/c 4,82.000 By Kanil(a's Capital ir'( 3,20,000

To Aahncc dd !,10,01xt J.60.r)rxr Bv Banl a,/. :t,30.0rx)

7,50,O0(l 7.(X).000 7,50,000 :l.i0,lt(J0

Working Notes:
l. Calculation of Gaining Ratio:
Gainins Ratio = New Ratio - Old Ratio
(,auram : 231532420
5-m=m = Ed: Kanrxa = E-lo =m = .50
Gaining Ratio = 5 : 20 or I : 4.
'lllI
Sample Papers g5 .\
N\\*
!
 2. Adjustment of Goodwill:
Sushma's Share in Goodwill = t8,00,000 x 5/10 = (4,00,000, which is to be contributed
by Oautam and Kanika in their gaining ratio as under:
Gautam : {4,00,000 x l/5 = (80,000, Kanika : {4,00,000 x 415 = (3,20,000.
3. Calculation of Proportionate Capitals:
(i) Existing Capitals of Gautam and Kanika (()
Gautam {[2,50,000 + 30,000 - 30,000 - 80,0001 1,70,000
Kanika {[3,50,000 + 20,000 - 20,000 - 3,20,000] 30.000
2,00,000
,4ddr Shortage of Cash/Bank* to be brought in by
Gautam and Kanika in order to make payment to Sushma 4,00,000
'Iotal Capital of the New Firm 5-Irm00
* Shortage ofCash or Bank balance
= Amount paid to Sushma - Existing bank balance * Bank balance required
= (4,82,000 - { 1,40,000 + t58,000 = ?4,00,000
(di) Proportionate Capital ofpartners in the ratio of2 : 3
Gautam = ?6,00,000 x 2/5 = f2,40,000
Kanika = <6,00,000 x 3/5 = t3,60,000
Calculation ofthe amount brought in or withdrawn by each partner:
Eriaiag C.pit l Proporcd Crpiat SrrrplurDcicieocy
(?) (() (()
(;auram 1.70,000 2,40.000 l)eficiency = ?70,000
Kanika 30,000 3,60.000 Deficiency = {3,30,000

Gautam and Kanika will bring {70,000 and t3,30,000

25. Journal
Date Particulars L.F. Dr. (() Cr. { ()
2019 X's Capital Ay'c Dr l0,93ll
Iuly 3l Y's Capiral Ai/c Dr 6.562
To Z's Capital A,,/c 17,500
(Being Z's share ofgoodwill compensated by the
existinc Dartners)
Profit and Loss Suspense y'/c Dr 2.500
To Z's Capital A"/c 2,500
(Being Z's share ofprofit till the date ofdeath
credited to his Caoital A,./c)
Revaluation A/c I)r J.0(X)
To Machinery A,/c 5.000
(Being decrease in the value of machinery
recorded)
Patents A,/c l)r: r'r,000
Building A,/c I)r: 12,500
To Revaluation A/c 17,.rr00
(Beins assets revalued)

rlll
g6 q
AccoLrntancy Xll

,///,,,
 Revaluation A/c I)r t!.500
-fo 6,250
X's Capital A/c
'Ib Y's Capital A,/c 3,750
'Iir Z's Capital y'i,/c 2,500
(BcinB Profir rransferred ro Partner's (;apital
Accounts)
Z's Capital A,/c l)r {i{).o0o
'ft, Z's Executors' A,/c (i0.000
(Being net amount due to Z transferred to his
Executors' A,/c)
Z's Exectrtors' A,,/c I)r t7,500
'lb Bank A,/c l7,rl00
(Bcins oarrlv cash Daid to executors)

[ )r'. Z's Executors' Account ( lr

[)ate Itarticrrlals (r) l)irtc l'ultit rrlar r (r)

20t9 2019
'Ii> Bank AJc 17,500 llr Z s ( iapital .dc (io.0{}0
Julv 3l .July 3l
2020 2020
.Jan. 3l To Bank AJc (10,625 + 2,550) I J,17r-r
.lan.3l lly Inrerest on loan 2.5 5{ )

To Balance dd 3l,tt7ar (1or 6 months)

62,550 62,550

Working Notes:
l. Calcularion of goodwill:
Goodwill=Average profit x No. of years' purchase
((32,500 + t30,000 + ?40,00o+ <37,ir00) ((1,4(),000)
Average profit = I I
= {:15.000

Goodwill= t35,000 x 2.5 = 87,000; Z's share in goodwill =87,500

" # = t Z,SOO
X's gain = 17,500 x *=l0,gSZ.Sor{10,938,Y'sgain= 17,500 x } = t6,562
2. Calcrrlation of Profit:
r.
ll.
Z's share ofproht (2019-20) = 37,500
t) r: Z'S tal Account
=Z,SOO
"$ fr ( lr'

Ihte Particulars (r) l).rrc Paniculars (?)

20r9 fo Z s t:r(..uror's..v( (;0.000 ?ol9 Rv Balance bkl 37,500

July 3l .luly 3l R) Profir and l,()ss 2,500

RY Rcvaluation ..Vc 2,50o

BIXs(;apital,V( 10,9:rti
By Y's (lapitalA,/( 6,562
(i0.000
-gqrgl

'lllI
Sample Papers 97
N
 26. kr) Journal
Datr Particulars L.F. Dr. ( l) C.. (?)
Bank A,./c Dr 1,05,000
'li) Debcntrlre Application and,{llotment A,/c 1,0!r.000
(Being monel received on 1,000, 7% Dcbentures @
I105 each includine orenrium)
f)ebenture Application and Allotment A,/c Dr. 1,05,000
l-oss on lssue of Debentures A,/c Dr. 10,000
lir 7% Debcntures A,/c 1,00,000
'Ib Securities Premium Reserve A,/c 5,000
-lb Premiunl on Redcmption of Debentures A,/c 10,000
(Being debentures issued at 5% prenrium and
redeemable at l09 premium)
(r) Journal
Daie Paniculars L.l: Dr. (?) Cr, ( ?)
Bank A,/c Dr. 95,(X)0
To Debenture Application aud Allotment A,/c 95,000
(Being amount received on 1.000, 7%, Debentures
(o, 195 per debenture)
l)ebenture Application and Allotment A,/c l)r: 95,000
f)iscount on lssue of [)ehentures Ay'r' l)r 5,000
To 7?, Debentures A,,/c r,00,000
(Being debentures issued at discounr and
rcdeemable at par)
27. (r) Long-term Provisions
OR
(d) Only (i),(ii) and (tii)
28. (d) All of these
29. (d) Sale ofinvestment by non-financial enterprise
OR
(a)Prrrchase of marketable securities for {25,000 cash
30. (a) Cash used in lnvesting Activities t6,40,000
31.
S. No. Items Headings Sub.tleadings
(,) Prepaid Insurance (irrr€nt Asscts Othcr Current Ass€ts
(ii) Invcatment in Debcntures Non-Current Ass€ts Non-Curr€nt Investmenr!
(ir') Calls-in-arr€ars Shareholders'Funds Share CapitaVSubscribed Capital
(t,) Unpaid dividend Current Liabilities Orhcr Currenr Uabiliti6
1u) Capital Reservc shareholriers' Funds Rcscrvcs and Surplus
(r,, ) Loose Tools Current AsseLs Inventories

32. A very high current ratio may not be favourable due to following reasons:
(i) Oash or bank balance may be lying idle because of insufficient investment
opportunities.
(ii) 'l'here may be slow clearance ofinventory due to less sales.
'llll'
9B AccoLrntancy-Xll
,hr, -
 (iir) The amoullt ol tta(lc receivables ma\'g() ul) ber':rttsc ofpoor debt <rrllc<rion policy

33. ro'orking capital rurnover Rrtio : lsyffHffi9rl

Working Capital = Current Assets - Current Liabilities
Current Assets = Tiade Receivables + Cash and Cash Equival€nts
= 1,10,000 + 20,000 = {1,30,000
Curent Liabilities = Trade Payables
= {60,000
Therefore, Working Capital = 1,30,000 - 60,000 = t70,000
working Capital Tirrnover Ratio = +##f = 2.29 times.

OR
(iross Profit Ratio =
( )ross
Rt rt tt ttr' m
Pro{it
()p et al t()ns ,roo=fjffiffixroo=:r3+tz
<30 (xt, 0(x )
Working Capital lirrnover Ratio 4,00, 0(x) =
7.5't-imes

Working Notes:
(i) Gross Profit = Revenue from Operations - Cost of Revenue from ()perations
= 30.00.000 -20.00.000 = t 10,00,000
(ii) Working Capital = Curre nt Assets - Current Liabilities = {4,00,000
34.

Particulars ( ?) ({)
(i) Calculation ofOperating profit before working capital changes
Net Profit before Thx
Profit during the year (3,50,000 - 2,00,000) 1,50,000
.4dl: Provision for Tax (31.3.2018) 5 0,(xx)
,{dd: Non-Cash and Non-Opcrating Expenses: ?.00,( x,t)
Depreciation provided (lVN) 40,000
l-oss on Sale ofAssets t 8,000
Cnodwill Amortised 5,000 ri:1.(x)o
LrrJ: Non-Operating lncome
Operating Profit bef<rre Working Capital 2.(;3.(X )0
(ii) Calculatioa of Caah Inflow from Operating Activitiee:
ldd: Increase in Trade Payables I7,0(X)
', R ( l

Lrss: lncrease in Inventory (75,000)

Increase in -ll'ade Receivables (67,000) (1..1?.000)

Cash From Operating Activities before'Iax t.3n,000

Lz$: Tax Paid (previous provision) ( 3 0,(x )0)

Cash from Operating Activities 1.0n.000

Sample Papers 99
(iii) l)l Computers and Related Equipments A,/c ( ,I:

Particulars ( ?) Particulars (r)

Tb Balance b/d 2,00,000 B) Accumulated Depreciatioo 20,000
'lb Bank ,Vc ( l'rtr r'hrrscs lrt irrg I,60,000 I]\'Slirl(.nl(.nr ol Plofit ir rrrl t8,000
l)alirr.irrg ligur(.) I.()ss (1.()ss ()n sale)

B, Bank Al/c
(80,000 - 20,000 - 18,000) 42,000

By Balance dd 2,80,000

3,60,000 3,60,000

l)r. Accumulated Depreciation Account (}

Particulars (.) Particulars ( r)
'li) (bmputers ll d Rclatcd 20.000 llr l!;rl:rrre bi rl 80,000
llquipmcrrts A,/r
-Iir Ralance c/rl
1,00,000 By Statement of Prolit and l-oss 40,000
(l)epreciation charged)

I,20,000 r,20,000

ilI

100 Accountancy-Xll llll

 SAMPLE PAPER
4
ts I L\/E I
Time Allowed: 3 hours Max. Marks: 80

Genet'al Instructions: .\at c ut OllSli fuu/c (lteslio ntfuF202l (.\oltul)

PART-A
(Accounting for Partnership Firms and Companies)
1. At the tirnc ol adrnission o[ rrew partner Vasu, ()ld p?rrttrel's l)aleslr anrl l)rablrav lra<l
dcbtols of (6,20,(X)0 irn<l a provision fbr doubthrl del)rs ol ?20,(X)0 irr their brxrks. As per
terms ol adtttission, assets were rcvalued, and it was filtlnd that <lelrtols worth { lir,000
had turne<l bad and hcnce shor.rld be written oll. Which-jotrlrral enlry lellc( rs lhe corrccr
accounting treatntent ol lhe above situation?
\l) Bad Debts A,/c l)r ( 15.0(x)
Ti> Sundry Debtors y'y'c < 15.(x)0
Provision lbr Doubtful Debrs A,,/c l)r a l:).ooo
To Bad Debts A,,/c t I ir.000
(b) Bad l)ebt A/c l)r I I.-'.(l0o
-Ib
Sundn Debtors A,/c t I i,.000
Rcvaluation rVc l)r ? I ir.(xX)
To Provision lbr Doubtful Debts Nc ( I:1.000
t) Revaluation A,,/c l)l { 15.(xx,
'lo Sundry Debtors ,A,/c I lir.0(X)
(,1) Bad Debt A,/c l)r { 15.(nx)
'Ib Revaluation A,/c ? I i,,000

2. Read the following statements-Assertion (A) and Reason (R). (lhoose one ofthe correct
alternatives given below:
Assertion (A): At the time oladmission ofa partnet it is important to calculare sacrificing
ratio of the old partners.
Reason (R): Sacrificing ratio is calculated as the General Reserve is divided among the
old partners in their sacrificing ratio.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
ofAssertion (A)
(b) Both Assertion (A) and Reason (R) are rrue and Reason (R) is not the correct
explanation of Assertion (A)

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Sample Papers IOI
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 (c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
3. Ambrish Ltd. offered 2,00,000 Equity Shares of{10 each, of these 1,9t1,000 shares were
subscribed.'fhe amount was payable as {3 on application, ?4 an allotment and balance
on the first call. lf a shareholder holding 3,000 shares has defaulted on the first call, what
is the amount of money received on the frrst call?
(a) t9,000 (6) ? 5,85,000
(r) 15,91,000 (d) ? 6,09,000
OR
A (()rnpany has l,oss <>n lssue of Debentures Accou nt ()f {.10.(X)0. Il has a balance in
Sccurities Prenrium Reserve of (25,000. It will debit bv {25,000 and
by t t 5,000 in the year of issue.
(c) Secrrrities Prenrium Reservc, Statement of Prolit and Loss
(r) Statenlcnt o[ Profit and Loss, Securities Premium Reserve
( ) Statenrent o[ ProIit and Loss, Capital Redemption Reserve
(.1) Statenrcnt ()l l\rrlit and Loss, General Reservc
4. Arun and Vijay are partners in a firm sharing profits and losses in the ratio of5: I
Balance Sheet (an Extract)
l,iabilities ( l) Assets (?)
Machincr',v .10.000

If value of Machinery in the Balance Sheet is undervalued by 2Mc, then at what value
will Machinery be shown in the new balance sheet:
(a) ?44,000 (6) t48,000
(r) ?32,000 (d) t50,000
OR
A firm has net profit of ?55,000, and the manager gets l07r commission on net profit
after charging his commission. Manager's commission will be:
(a) (5,000 (r) <4,950
(r) (5,500 (d) <550
5. Falak and Bhoomi Irere partners. They shared profits and losses equally. On lst April,
2020 their Capital Accounts showed balances <-rf {6,00,000 and ?4,00,000 respectively. If
the Partnership Deed provided for Interest on Capital @ l07c p.a and the firm earned
a profit of{1,00,000 for the year ended 3lst March, 2021 then the amount of profit to
be distributed between the partners is:
(a) ? 1,00,000 (r) ?60,000
(r) t40,000 (d) Nil
6. M<nn Ltd. issues t70,00,000, 87o Debentures of ?100 each at a premium of 5%
redeemable at I l97c at the end of the 10 years.
Debenture Application and Allotment .4y'c Dr. ?73,50,000
l-oss on lssue of Debentures iAy'c Dr. { 7,00,000
-lb
87o Debentures A,/c X
'Ib Securities Pre mium Reserve A,/c Y
'lir Premiurp on Redemption of Debentures ,Ay'c Z
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r02 Accountancy-Xll rlli
,////,,,,
 Here, X, Y and Z are:
(a) ?70,00,000, {3,1i0,000, ? 7,00,000 (r) 13,1-,(),000, 47.00,000, {70,(x),000
(r) ? 3,50,000, <5,00,000, ?2,00,000 (/1) t 7.(X).000, ?3,50,000, {70,00,000
OR
Which of thc fullowing is irtcorrect about debentures?
(i) l)iscount or Loss on Issue of Debentures, both are capital loss for the companv
(ii) Loss on lssue of Debentrrres can be written o[I fit.rm:
o Securities Premium Rcserve [Sec. 52 (2)]
o Statement o['Profit and Loss
(iir) ln case balance in Statement o['Profit and Loss is not suflicient to write ofl'the total
amount of discount or loss, on issue of debentures, it is written olf from Statement
of Proht and Loss, to the extent of balance available in Securities Premium Reserve
and then the remaining balancc is written offfiom Securities Prenrium Reserve.
(a) Only (ii) (ll) onlv (i,i)
(c) Both (i) and (iii) (d)AIl (i), (ii) and (iil)
7 Mohan holding 900 shares of{ l0 each failed to pay allotment money of ?2 per share
and call money {4 pcr share. His shares were forfeited and out ol-these 600 shares
were reissued at {7 per share fully paid up. The amount of Capital Reserve will tre:
(a) ? 1,200 (b) <600
(c) ?800 (d) {e00
8 On the retirement of Harifrom the tirm of 'Hari, Ram and Sharma'the Balance Sheet
showed a debit balance of t t2,000 in the Profit and Loss Account. For calculating
the amount payable to Hari, the balance will be transferred:
(o) to the credit of the capital accounts of Hari, Ranr and Sharma equally
(r) to the debit ofthe capital accounts of Hari, Ram and Sharma equally
(c) to the debit of the capital accounts of Ram and Sharma equally
(d) to the credit of the capital accounts of Ram and Sharma equally
OR
Vidit and Seema were partrers in a firm sharing profits and losses in the ratio of3 : 2. 'I'heir
capitals were { 1,20,000 and { 2,40,000, respectivcly. They were entitled to interest on
capitals @10% p.a. The firm earned a profit of { ltl,000 during the year. The intercst
on Vidit's capital will be:
(a) ? 12,000 (r) < 10,800
(c) ? 7,200 (d) ( 6,000
Question no 9, 10 arc based on the hypothetical situation giaen below.
On lst September, 2020, twenty students ofModern College started their Partuership
Firm in the name of"Be Safe" for selling sanitisers on digital mode. Since they were
good friends ofeach othet they were not having any explicit agreement in place. All
ofthem have agreed to invest { 15,000 each as capital. The books were closed on 3lst
March,2021, on which date the following information was provided by the firm:
Particulars ({)
Sale ofSanitisers 1,20,000
Cost ofgoods sold 50,000

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Sample Papers
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 'lbtal Remunera(i()n to partners 2,000 per month
Rent to a partirer 1,000 per month
Manager's Commission 5,000
Closing Stock as on lttarch 31,2021 9,000
6% Fixed Deposit (made on 3t.3.2021) 20,000
9. Calculate the amount of profits to be transferred to Profit and Loss Appropriation
Account.
(a) profit {58,000 (b) profit t44,000
(r) profit ?59,200 (d) profit (58,700
10. ()n lst l)ecember, 2020 one ol-the partners of the firnr introduced additional capital
of{30,000 and also advanced a loan of?40,000 to the firm. Calculate the amount of
interest that the Partner will receive for the cttrrent acc()unting period.
kr) {4,200 (r) { I,400
(c) ? 1,575 (d) t 800
Il. Which of the folkrwing accounts alu'ays show a credit balance?
k) Fluctuating (iapital Accounts
(D) Fixed Capital Accounts
(c) Profit and l-oss Appropriation Account
(ri) Both (D) and (c)
12. Which of the f<rllowing statements is/are true ?
(i) Authorised Oapital < lssued Capital
(ii) Authorised Capital Issued Capital
(iii) Subscribed Capital 3= Issued Capital
(ir) Subscribed Oapital > Issued Capital
(a) (i) only (6) (i) and (ir,) Both
@) (ii) and (iii) Both (d) (ii) only
(
13. {8 was called up on share of l0 and t3 was rcceived. If it was lbrfeited, then what
amount will be debited to share capital account at the time ofshare forfeiture?
(r) t2 (D) (8
(r) ?3 (d) { l0
14, lVhen time of withdrawals is not mentioned, interest on drawings is charged for the
period of:
(a) 6 7r months (D) 6 months
(r) 5 7,r months (d) 12 months
15. When equal amounts are withdrawn at the end of each month throughout the year, the
interest on drawings will be calculated as:
(c) Total Drawings x Rate/100 x l/12 (r) Total Drawings x Rate/100 x 6.5/12
(c) Total Drawings x Rate/100 x 6/12 (d) lbtal Drawings x Rate/100 x 5.5/12
OR
Interest on drawings @59o p.a-, when a partner withdraws {3,000 in the middlc ofeach
month for I year, will be:
(a) t I,500 (r) {500
(c) 1900 (d) {750

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104 Accountancy-Xll
 16. What final payment to a partner on hrm's dissolution will be made on the basis of
following information. Debit balance of his capital acc<.runt {7,000' Share of profit
on realisation (21,500, Firm's asset takcn by him for (u,500.
(c) t15,500 (r) (l'1'500
(r) t6,000 (d) t 30'000
f7. X, Y and Z were partners sharing profits in the ratio of4:3:2. X dies on 3lst August,
2018. The sales ind profits for the year on 3lst March' 2018 were ?2,40'000 and
{30,000 respectively. The sales up to 3lst August, 2018 amounted to {1,44'000'
Calculate X's share ofprofit. Pass necessary journal entry.
18. K and P were partners in a firm sharing profits in 4:3 ratio. Their capitals on 1.4 2016
were: K {80,000 and P {60,000. The partnership deed provided as follows: (i) Interest
on capital and drawings will be allowed and charged @ l27c p.a. and l0% p a'
respeitively. (ii) K and P will be entitled to get monthly salary of (2,000 and {3,000
respectiYelY.
'I-he profits for the year ended 31.3.201? were t1,00,300. The drawings of K and P
were (40,000 and ?50,000 respectively. lnterest on K's drawings was {2,000 and P's
drawings {2,500.
Prepare Profit and Loss Appropriation Account of K and P for the year ended
31.3.2017 assuming that the capitals ofthe partners were fluctuating.
OR
P and Q were partners in a firm sharing profits equally. Their fixed capitals were
t1,00,000 and I 50,000 resPectively. The partnership deed provided for interest
on capital @10% per annum. For the y€ar ended 3lst March' 2016, the profits
of the firm were distributed without providing interest on capital. Pass necessary
adjustment entry to rectify the error.
19. Narain Laxmi Ltd. invited applications for issuing 7,500, l27c debentures of{ 100 each
at a premium of (35 per debenture. The full amount was payable on application.
Applications were received f<rr t 0,000 debentures. Applications for 2'500 debentures
weie rejected and the application money was refunded. Debentures were allotted to
the remaining applicants.
Pass necessaryjournal entries fbr the above transactions in the books ofNarain Laxmi
Lrd.
OR
Rose Ltd. issrred 25,000 shares of{ l0 each credited as lully paid to the promoters for
their services. It also issued t5,000 shares of {10 each credited as fully paid to the
underwriters for their commission. Give Journal entries.
20. 1-he average profir earned by a hrm is ( 80,000 which includes undervaluation ofstock
of t 8,000 on an average basis. The capital invested in the business is ? 8,00,000 and
the normal rate of return is 870. Calculate goodwill of the firm on the basis of 7 times
the super profit.
21.'I'heauthorisedcapitalofsuhasLtd.is{50,00,000dividedinto25,000sharesof{200
each. Out ofthese, the comPany issued 12,000 shares of{200 each at a premium of
107o. 'fhe amount per share was payable as follows:
{60 on application
?60 on allotment (including premium)
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Sample Papers I05
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 ?30 on first call and balance on final call
Public applied for I 1,000 shares. All the money was duly received.
Prepare an extracr of Balance Sheer of Suhas Ltd. as per Schedule III parr I of rhe
Companies Act, 2013 disclosing rhe above information. Also prepare 'Notes to
Accounts' ftlr the same.
22. Prem and Suresh had been partners in a firm in the ratio of 7:8 for the last seven
years. Due to certain agreements, they decided to dissolve the firm on 3lst March,
2022. They have transferred all the external liabilities and various assets to rhe
Realisation Account. Being an intern, you have been assigned the task of settle
the claim of various creditors. On the date of dissolution, you have observed the
following transactions.
(a) Raman, a creditor of ?4,00,000 accepted land valued at ?7,00,000 and paid
(3,00,000 to the firm.
(D) Gopal, a second creditor for t 1,05,000 accepted 190,000 in cash and investmenrs of
114,000 in full settlement of his account.
(r) Hari, a third creditor amounting to {75,000 accepted stock of the book value of
(60,000 for {45,000 and the balance was paid to him by cheque.
(d) Loss on dissolution was {45,000.
Pass necessary journal erltries for the above transactions in the books of the firm.
23. Manvet Ltd. invited applications for issuing 10,00,000 equity shares of t l0 each payable
as follows:
On application and allotment {4 per share (including premium { l)
On first call ?4 pcr share,
On second and final call t3 per share.
Applications for 15,00,000 shares were received and pro-rata allotment was made to
all the applicants. Excess application money was adjusted on rhe sums due on calls. A
shareholder who had applied for 6,000 shares did not pay the lirst, and the second and
final call. His shares were forfeited. 9070 of the forfeited shares were reissued at ?8 per
share fully paid up.
Pass necessary journal entries for the above transactions in the books ofthe company.
OR
X Ltd. invited applications for issuing 5,00,000 equity shares of t l0 each at par. The
amount per share was payable as follows :
On Application ? I per share
On Allotme nt ?2 per share
Or; First call (3 per share
On Second and Final call - Balance.
Applications lor 8,00,000 shares were received. Pro-rata allotment was made in thc ratio
of.7:5. Rernaining applicans were sent letters of regret. Excess money received with
applications was adjusted towards sums due on allotment. All calls were made. Ashok a
shareholder holding 5,000 shares failed to pay the allotment and the call money. Shares
ofAsh<.rk were forfeited after the second and f,rnal call. The forfeited shares were reissued
at { l2 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of X Ltd.

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r06 Accountancy-Xll
 24. Gautam and sajid are parrners in a firrn sharing profits and l.rsses in the ratio 3: l.
They admit'lbir for a i4th share on 3lst March,20l4 when their Balance Sheet was
as frrllows:
Balance Sheet
Liabilities (t ) Assets (()
.15,000
l)mployees Provideut Fund 5l,000 Stock
lAtrrkmen's Coorpcnsation Fund In,000 Debtors I,50,000
Investment Fluctuation Rese rr'c 12,300 I-ass: Provision for
doubtful debts 6.000 I,44,000
(litpital I Gautlrrl l,(i2,0(x) Investments 21,000

Sajid l,0i,.lX)0 Cash 18,300

C,oodwill I,20,000
3,.18,300 3.,18,300

The following adjuatmeDta were .gr€ed uPon:

(o) -lom brings in (48,000 as goodwill andt69,600 as Capital'
(D) Bad debts amounted to {3,000.
(c) Market value ofinvestment is <13,500.
(1) Liability on account of workmen's compensadon reserve amounted to ?6'000'
Prepare Revaluation A'/c and Partners' Capital A,'/cs.
OR
Khushboo, Leela and Meena were partners in a firm sharing profits in the ratio of
5:3:2. Their Balance Sheet on 3lst March, 2015 was as follows:
Balance Sheet of Khushboo, Leela and Meena
as at )1st March, 2015

Liabilities ,() Assets (t)

(lreditors 70,000 Bank 44,000
Capitals: Debtors 24,000
Khushb<xr 90,000 Stock 60,000
l-ecla 56,000 Buildings t,40,000
Mecrta 60.000 2,0(i,000 Profit and Loss A,,/c 8,000
2.76.000 2,76,000

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

(i) Building was to be depreciated by t 10,000.
(ii) A Provision of57o was to be made on Debtors for doubtful debu.
(iii) Salary outstanding was ( 4,800.
(i,) Goodwill ofthe firm was valued at ? 1,40,000.
(r,) Leela was to be paid ? 20,800 through cheque and the balance in was to be paid
two equal quarterly installments (starting from 3Oth June, 2015) along with interest
@lOVa p.a.
Prepare Revaluation Account, Leela's Capital Account and her Loan Account till it is
hnally paid.

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 25. Dev, Swati and Sanskar were partners in a Iirm sharing profits in the ratio of 2:2: I . On
3l-3-2014 their Balance Sheet was as follows:
Liabilities ( r) Assets ( ?)
Trade Payables 17,000 Building I,(x,000
Bank Loan 13,000 Inventory t6,000
Capitals: 'liade Receivables 23,000
Dev 77.O00 Cash 40,000
Swati tt7,000 Prol'it and Loss .Vc 57,000
Sanskar 46.000 ?, t0,000
!,11U10Q '1. lo_o(r)
On 3OthJune,20l4, Dev died. According to partnership agreement, Dev was entitled to
interest on capital at l27c per annum. His share ofprofit till the date ofhis death was to
be calculated on the basis .f rhe average profis of last four years. The profirs ofthe last
four years were:
Years Profit (t)
2010-2011 2,04,000
20t l-2012 t,80,000
2012-2013 90,000
2013-2014 (Loss) 57,000
On l-4-2014, Dev withdrew ? 15,000 to pay for his medical bills.
Prepare Dev's account to be presented to his executors.
26. F'ashionable Fabrics Ltd. has decided to start a new showroom. The Finance Manager of
the company has estimated the capital requirements at (12,50,000. The company has
arranged t5,00,000 from the internal sources to start the showroom.
It has also decided to call rhe unpaid amount of{3 per share on its 10,000 equity shares.
1'he requiremenr ofthe remaining capital was fulfilled by raising a loan from Bank of
India payable after five years. 8% Debentures of { 100 each were issued for I .5 times
more amount than that ol loan as collateral security.
The management raised the following questions:
(i) What will be the total requirement of the loan raised by the company?
(ii) What will be the total number ofdebentures issued by the company?
(iii) Is the company liable to pay the interest on these debentures?
(iu) How debentures will be shown in the financial sratements of the company when
company has recorded the issue of debentures by passing a journal entry in the
books ofcompany?

PART-8
(Analysis of Financial Statements)
27. Capital Reserve and Capital Redemption Reserve are shown under the head/subhead:
(a) Share Capital (D) Current liabilities
(r) Reserves and Surplus (d) Long-term provision

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//, 108 Accountancy-Xll
////tr,.
 OR
Liquid assets =
(r2 ) Current Assets + lnventory

(D) Current Assets - Inventory

(r) Curent fusets - (lnventory * Prepaid expenses)
(d) None of the above
28. When current Ratio is 2:5 and the amount of'current liabilities is ?25,000, what is the
amount of current assets?
(a) t62,500 (,) ( 12,500
(c) t10,000 (d) (2,000
29. Which of the following transactions will result into'Flow of Cash'?
(a) Deposited {10,000 into bank.
(D) Withdrew cash from bank { 14,500.
(c) Sale ofmachinery ofthe book value of?74,000 at a loss of?9,000.
(d) Converted t2,00,000,97o debentures into equity shares.
OR
While calculating cash from operations which will be added to net profit?
(a) Depreciation (D) Goodwill written off
(c) Loss on issue of debentures (d) All of the above
30. Paid t 4,00,000 to acquire shares in R.V Ltd. and received a dividend of ? 40,000
after acquisition. These transactions will result in
(a) Cash used in investing activities t 4,00,000.
(D) Cash generated from financing activities { 4,40,000.
(c) Cash used in investing activities ( 3,60,000.
(d) Cash generated from financing activities t 3,60,000.
31. Under which major heads and sub-heads will the following items be presented in the
Balance Sheet ofthe company as per Schedule IIl, Part I ofthe Companies Ad,2013?
(i) Bank Overdraft (ii) Subsidy Reserve
(iii) Capital Redemption Reserve (iv) Mining Rights
(v) Patents
(vi)Debit balance in Statement of Profit and Loss
32 State the interest of management in the analysis of financial statements.
.t ., From the following information, calculate Operating Profit Ratio:
Opening Stock ( 10,000; Purchases t I ,20,000; Revenue from operations ?4,00,000;
Purchase Returns ?5,000; Returns from Revenue from operations t 15,000; Selling
Expenses t70,000; Administrative Expenses ?40,000; Closing Stock (60,000.
OR
Assuming that the Debt to Equity ratio of a company is 0.50, state whether this ratio
would increase, decrease or remain unchanged in the following cases :
(i) Purchase offixed assets on a credit of3 months
(ii) Issue ofnew shares for cash
(iid) Purchased machinery and paid to the vendors by issue ofequity shares
(iu) Obtained 870 long-term loan
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Sample Papers r0g .N
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 34. Following is the Balance Sheet of K.K. l,td. as at Slst March,20l5
Balaace Sheet
at at ) I sl ltlarth, 201 5 o.nd 20 11
Particulars Nole S lst March, 3 tsr Mrrch,
No. 2015 ( r) 20r4( ?)
I. EQUITY AND LIA-BILITIES:
(l) Shareholders' Funds:
(a) Share Capital 10,00,000 8,00,000
(D) Reserves and Surplus I 4,00,000 ( I,00,000)
(2) Non-current liabilities:
l-ong-term Borrowings 9,00,000 10.00.000
(3) Ourrent l.iabilities:
(d) Short-term Borrowings 3 3,00,000 I,00.000
(r) Short-term Provisions 4 r,40,000 r,80,000
Total 27,40,000 19,80,000
u. AssETs:
(l ) Non-current Assets :

(a) Fixed Asses:

(i) Tingible 5 20,06,000 14,40,000
(ii) Intangible 6 40,000 60,000
(6) Non{urrent lnvestments 2,00,000 I,50,000
(2) Current Assets:
(.r) Current Investments I,00,000 r,20,000
(6) lnventories 2,14,000 90,000
(r) Cash and Cash Equivalents I,U0,000 r,20,000
Totrl 27,.10,000 I9,80,000

Notes ao Accounts:
Particulars Slst March, 3l st March,
2015 (l) 2014 (r)
Reserves and Surplus
(Surplus, i.e,, Balance in Statement of Profit and l-oss) 4,00,000 ( r,00,000)
.t,0r),(xx) ( 1,00,000)
2. l.ong-termBorrowings
l2% Debentures 9,00,000 10,00,000
9,00,000 t0,00,000
:t Short-term Borrowings
Bank Overdraft 3,00,000 I,00,0(x)
3.01).{)00 1,00,000
4. Short-termProvisions
Provision for tax I,40,000 t,80,000

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//, 1I0 Accountancy-Xll
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 1,40,000 1.Ii0.000
5. Tangible Assets:
Machinery 24,06,000 16,42,000
Accumulated Depreciation (4,00,000) (2,02,000)
:0,0(;,0(x r
_t14999
6. Intangrble Assets
Goodwill 40.000 60,000
40,000 60,000
7. Inventories:
Stock-irl-trade 2,14,000 90,000
l4 (XX) 90

Additional Inlbrmation:
(i) l2% Debennrres were redeemed on 3lst March,20l5
(ii) Tax t I ,40,000 was paid during the year.
Prepare Cash Flow Statement.
ttI

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i&Answel
I
\o) Bad Debts A"tc { 15.(x)0
'lb Sundry l)ebtors A,./c t t5,01)0
Provision lor Doubtful Debs A,ic I )r. { li.(x)0
To Bad Debts A,,/c ( 15,000

2. (r) Assertion (A) is true but Reason (R) is false

3. (r) { 5,85,000
OR
(a) Securities Premium Reserve, Statement of Profit and Loss
4. (d) (50,000
OR
(a) {5,000
5. (d) Nil
6. (a) {70,00,000, {3,50,000, t7,00,000
OR
(D) only (iii)
7. (D) {600
8. (D) to the debit of the capital accounts of Hari, Ram and Sharma equally
OR
(d) t 6,000
9. (a) profit (58,000
10. (D) t r,400
I l.
(D) Fixed Capital Accouns
12, k\ Oi\ and (iii) Both
r3. (r) {8
14. (D) 6 months
15. (d) Total Drawings x Rare/100 x 5.5/12
OR
(r) t900
16. (c) t6,000
17. Ifsales is worth {2,40,000, the profit = (30,000
If sales is worth I, the proht = ig:
2,40,000
If sales is worth 1,44,000, the profit = ,Hrffi x 1,44,000 = {18,000

X's share ofprofil = (18,000 x ,U9) = t8,000.

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II2 Accorrntancy Xll

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 Journal
Date Paniculars L.F. Dr. ( a) Cr. (t)
2018 Profit and Loss Suspense A,,/c I)r. ri,000
Aug. 3l 'lb X's Capital A"rc 8.000
(Being X's share of profit credited to his
capital account)
18. Profit and Loss Appropriation Account
[)r. li lhe ,1rur crulel ) l st March, 2017 (h
Particulars ( ?) Paniculars (?)
To lnterest on Capital A,,/c: By Net Profit 1,00,300
K 9,600 By lnterest on Drawings
P 7.200 l(;,t{(x) K 2,000
To Salary A"/c: P 2.500 ,1,1-r00

K 24,000
P 36.000 (;r).(xl0
To Profit transferred to Capital A,/cs:
K 16,000
P 12.000 28,000
lJll.80t) t l t siiir
OR
Books of the firm
Journal
Date Particulars L.E, Dr. ( ?) Cr. ( ?)
2016 Q's (lurrent A,,/c Dr. 2,i,00
April I To P's Current A'/c 2,500
(Being the adjustment of interest on capital
omitted in previous year)
Working Note:
Adjustment Table
P.rticulars P(<) q (?) firm (?)
Dr. Cr. I)r. Cr. Dr. Cr.
Interest on Capital (to be l{),0(x) 5.000 t5.000
credited @ l07o) A
Profit already credited B 7,500 7,500 15,000
Net effect (A - B) 2,500 ((;t:) 2,500 (Cr.) N _

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Sample Papers II3

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 19. Journal
Drte Particulan L.n Dr. ({) Cr. (?)
?0 tti Bank .Vc (10,000 x ? 135) [)l 13.50.000
-Iir
Arrg. ll I l)ebenture Application and Allotment Ay'c 13,50,000
(Being application rnoney received)
Debenture Application and dlotment A,/c Dr. 13.50.(x)0
Ib l2% Debentures A,/c (7,500 x ll00) 7,50,000
'Io Securities ltemium Resen'e Ay'c (7,500 x ?35) 2,62,500
'Iir Rank A,.ic (2,500 x 135) 3,37,500
(Being application money transferrcd to l2%
debentures accounL, securities premium reserve and
excess rel nded)

OR
Date Particulars 1..F. Dr. (t) Cr. ( t)
lncorporation llxpeDses AJc [)r: 2,50,000
'lo Promoters A,./c 2.50,000
(Being amount due to the promoters)
Promoters' A'lc Dr 2,50,000
To Share Oapital A"/c 2.50.000
(Being the issue of 25,000 shares to promoters @ ( l0
each)
Underwriting Oommission A/c I)r. I,50.000
'Io Underwriters' A'/c 1.50.000
(Being underwriter-s' commission due)
U nderuriters' A/c l)l I,i:0.(Xx)
-lb
Share (:apital A,,/c 1,50,0(x)
(Being issue of 15,000 shares of( l0 each to
underwriters)

20. ;\r'crage I'r'olit (80,000

[ 'rrrlcn'altrat iorr of St<rk ( 8.000
1\( Iual Ale r-aBc l)rofit (80,000 + <8,000 (Note) = ?88,000
Normal Rate ol Returrr
Norrnal I'rolit Oapital Investnrent x
lo0
(8,0().000x
60 = < 64,000
Sr rllt r l'l olit Acl uirl Average Proht - Normal Profit
= t88,000 - t64,000 : t 24,000
(;rxrdwill = Super Proht x 7
= (24,000x7=t1,68,000
Notet Llnden'alualion of sloch is addtd ba& to thz profit os it reduces tfu poJit

' l|
I14 Accountancy-Xll I
 21.
Parliculars Nole (? )

No.
I. EqUITY AND LIABILITIES
l. Shareholders' l'trnds
(d) Share Capital I 22,00,000
(rr) Reserves and Surplus 2,20,000
Totd tl.'rlul(l!
II. ASSETS
l. Current Assets
(a) (iash and (iash Equivalents :l 2.1,20,0(x)
Total 2.1,20.0(x)
Notes to Accounts;
Note l.
Paniculars (a)
l. Sharc Capital
Aulhoris.d Chpihl:
25,000 shares (n 1200 each a.00.0(x)
lxturl Capitnl:
12,000 shares @r {200 each 2.1.00.(xx)
Suhstribed Capital:

ful$ Paid tup (:apital

Subsribcd and

I I,000 shares @, t200 each 22.00.0(x)

Note 2
Panliculars (?)
2. Reserves and Surplus
Srcrr|ities Pl.enrirrnr Rer( r'\1 [ I l,(Xx) x 20] :.1 .:.1( ), ( x ){ )

Note 3
Particulars (?)
3.Cash and Cash Equivalents
Cash at Bank I l.:0.(xx)
22 In the books of Prem and Suresh
Journal
Date Particulars L.E Dr (?) (ir (()
2015 (d) Cash./Bank A,,/c l)r: :J.00,000
Apr. I To Realisation A,/c 3.00.0(x)
(Being payment received from creditor)
(b) Realisarion A/c I )r'. 90,000
Tir (iash/Bank A,,/c 90.000
(Being partial payment made ro creditor)
tllr

Sample Papers 1I5

N
 (,) Realisatiou A/c l)r 30.000
-lb l.o(x
Bank Ay'c J( )

(Being partial payment made to creditor)

Prem's Capital ,Ay'c Dr. 2l,000
Suresh's Capital &c Dr. 24,000
To Realisation &c 45,000
(Being loss on realisation transferred to partners'
capital accounts)

23. ln the Books of Manvet Ltd.

Journal
Datc Paniculars I-.n Dr- (?) Ca (?)
(i) Rank..Vc l)r. 60.00.000
'tir liluitv
Shar-c Appliration & Alkrtment A,/c 60,00,000
(Being application ntonev lct-t'ived on Ir'r.00,000
shares)
(tr) Equity Share Application & Allotment A,/c Dr. 60,00,000
Ti) llquity Sha!-e (iapital &c 30,00,000
'Iir Securities Premium Reserve AJc 10,00,000
Ti) (;alls-in-Advance A"/c 20,00,000
(Being Application & Allotment money transferred
to Sharc (japital A,,/c, Securitics Premium A,,/c, Calls
in Advance ,Vc)
(ni) Equity Share First (lall A/c Dr. .10,00,000
Tir liquity Share Capital A/c 40,00,000
(Beinq lirst call money due on 10,00,000 shares)
(irr) Bank &c (WN2) Dr 19,92,000
Calls-in-Arrear A,/c (WN I ) Dr. 8,000
Calls-in-Advance A,/c Dr. 20,00,000
Tb t)quity Share First Call A/c 40,00.000
(Being first call money received except on 4,000
shares and calls in advance adiusted)
(,,) Equity Share Second & Final CallA,/c Dr. 30,00,000
Tir llquity Share Capital A,,/c 30,00,000
(Being the second & final call m<lney due on
10,00,000 shares)
(r'i ) Bank A/c Dr. 29,88,000
Calls-in-Arrear A,/c Dr. 12,000
To Equity Share Second & Final Call A,/c 30,00,000
(Being second and final call money received except
on 4,000 shares)
(r,,,) Equity Share Capital y'y'c Dr. .10.0{x )
-Io 20,000
Forfeited Shares A,/c
To liquity Share First Call A,,ic 8,000
To Equity Share Second & Final Call A,/c 12,000
(Being forfeiture of4,000 shares for non payment
ofcall money)

'rllt'
II6 Accountancy-Xll
 k,,i,) Bank A,/c Dr. 2tt,13(x)

Forfeited Shares A/c Dr 7.2(X)

To Equity Share Capital A,/c J{i.(x)0
(Being 3,600 of the forfeitcd shares reissued as
fullv oaid uo)
(ix) Forfeited Shares A,/c Dr. t0,800
To Capital Reserve A,/c 10.t300
(Being Gain on 3,600 reissued shares transl'erred
to capital reserve y'y'c)

Working Notes:
l. Calculation offirst call money not received:
10.00.000
Number ofshares allotted to the defaulting shareholder = t5JmJ)00 x 6,000
= 4,000 shares
Excess Application and Allotment money receiyed (2,000 x (4) = t8,000
First call money due (4,000 x (4) t6,000
lrssr Excess Application and Allotment Money adjusted 8,000
First Call Money due but not received -xtr00
2. Calculation ofhrst call money received later ?
First call money due (10,00,000 x t4) 40,00,000
Lessr Excess Application and Allotment Money ?0.00.000
adjusted on call
Money not paid by defaulting shareholder (WN I) IJ,000 20.0rJ,000
lglrz-iloo-
3. Calculation of gain on reissue of forfeited shares to be transferred to {
Capital Reserve:
Amount forfeited on reissued shares ({20,000i4,000 x 3,600) 18,(x)0
Iess.'Discount on Reissue (3,600 x {2) 7 ,2oO
Gain on reissue to be transferred to Capital Reserve --rT:800

OR
In the Books of X Ltd,
Journal
Date Particulars L.n Dr. (?) Cr. (l)
(,) Bank A'/c Dr. 8,00.(xx)
To Equity Share Application A,,/c n.00.0(x)
(Being Application money received on 8,00,000
shares)

(ii) Equity Share Application A"/c l)r: u.(x).(xx)

'lb Equity Share Capital A"ic 5,00,000
1ir Equity Shar-e Allotment A,/c 2,00,000
Tir Bank A"/c I,00,000

{ll
I Sample Pa pers tI7 '\
.t\\\\\
 (ll(,ir)g Apl)li(ali()D mor(.\ tlansla'rr'(-(l lo sharc
c:rl)ital .!c, ( x( ( ss tra sli'r'r'r(l l() Sh:lIc r\ll()tDlent
--\r arrd nrorrtr rclirndcd on shalcs r-tjcctcrl)
(rr) fuuity Share Allotment A"/c Dr. 10.00.000
'lb llquity Share Capital A,/c 10.00.000
(Being Allotment money due on 5,00,000 shares)
(r.,) Bank -Vc [)r 7,92,000
Oalls-in-Alr-ear A,/c (WN I) I)r' 8,000
-lir
Equity Share Allotmenr A,./c 8.(X),(X)0
(llcing the,\lknrDcnt nronc]' received on 1.1r5.000
shares)
(.,) l)<;uity Share !'ir-st Call A,,/c Dr li.o0.(x)0
'lir Equity Share Capital A,,/c I ir.(X).0(X)
(tlcing F'irst call nroney duc ()n 5,00,000 shares)
(,,i) Bank A,/c t)r l-l.lii.{)0o
(lalls-in-Arrear A,/c I)r I I-r.000
'n) Equity Share First (lall ,Vc t5,00.000
(Being First (lall money received or 1.95.( )(X )

shares)
(r,ii) lilrritv Shalc Strrrnd & Iinal (lall Ay'c Dr. 20.00,(xx)
.lir
liquin Shale Oapital .\tc !0.00,000
(llcing Secon<l & ['in:rlcall tttoner duc on ir.00,000
shalcs)
(,'i??) llankA"/c Dr. l1).1t0.{)00
(lalls-in-Arrcar,,ly'c Dr :.lr ).( )o0

Tir Equity Share Second and Final (lall rVc :.10.00.00t)

(lteing Second & !'inal call money received on
,1,95,000 shares)

(/\) lilrritv Share (lapital A./c Dr. .i)l),{)00

'Iir t-orfeited Shares A,/<: 7,000
'Ib Equit,v Share AllotmeDt Nc 8,000
'lb Equitv Share First (lall A,,/c 1s,000
'li) Equiry Share Second & Final (lall A,/c 20,000
(lleing Forf'eittrre of 5,000 shares for non- paymenr
ol,.\lkrtment and (lall nroney)
(x) Bank A,/c Dr (i0,000
'Ib llquity Share Capital A/c 50,000
'Ib Securities Premium Reserve A,/c 10,000

(Being 5,000 ti)rtbited shares reissued at ? l2 per

share as futly paid up)

lll
II8 Accountancy-Xll
/il,,
 (.1r
) Forl'eited Shares A/c Dr 7.{)(X)
-f<r 7.000
Capital Reserve A,/c
(Being Gain on reissued shares translbrrcd to
(;ir ital Reselrc
'Vc)
Working Notes:
l. Calculadon ofallotment money not paid by Ashok:
(i) lbtal no. ofshares applied by Ashok : 7,00,000/5,00,000 x 5,000
= 7,000 shares.
t
(ii) Application money received on sharcs applied (7,000 x { I ) 7,000
(iii) Excess Applicati()n money adiusted on allotment [{7,(D0 - (5,000 x ( l)] 2,00c)
(iz) Alkrtment money due on shares allotted (5,000x42) 10,000
(u) Allotment money due but not paid bv Ashok (t 10,000 - <2,000) lt,()00
2.CalculationofalIotnrentmoncyreceivedlater:< {
Total alkrtment moncy due (5,00,000 x (2) I0,00,00c)
Lzssr (a) Excess application moncy to be adjusted 2,00,000
on allotment
(i) Not received from lshok (WN I ) 8.000 2,0tt,0ct0
73Lmo-
24.
Dr. Revaluation Account Cr.
Paniculars ({) Particulars (()
lo lJrrd l)rl,tr 3.0(x) By [-oss transfirred to:
(iautarn s Oapital AJc 2.250
Sajid 's (iapital -Vc i50
3.( X )0 J,{XX)
Dr. Partners'Ca ital Accounts Cr.
Particulars Gautaln sajid Torn Particulars Gautam Sajid ToE
(r) (.) ( () (() (r) ({)
-Iir (;rxxluill .\c 90,000 30.000 B,r Balance b/d t.(;2,000 | .o:-r.000
'lb Revllrrirtion tr,ic 750 B,v Oash A,/c (ll).(;(x)
-tb t.200
Bahrrrc c.td 1,18,350 90.{50 {;9,{;00 By In\cstnren( J.{io0
Huctuatiorr
Rcscr!e
B) W()rknlen s 1),000 :r,1xx)
( i)nrpensatiotl
furrd
Br l'rcrniunr Iirr 3ri,000 I!.0()(l
gr x xhvill

!,I0.ti00 r.2r.200 !.10,6tx) l .?.r,200 (i!.rir x )

'lllt'
I Sample Pa pers II9
N
 OR
[ )r'. Revaluation Account Cr
Parliculars (r) Particulars (?)
Ib Buildings,,l,,rc 10,000 By t,oss Distributcd:
Itr Prov. flor Doubtful Debts A,/c 1,200 Khushboo 8.000
Iir Salary Outstanding A,/c .1,800 Leela 4,800
Mce na 3.200 16.000
l(i.0(x) l{;Jxx)
l)r Leela's Capital Account (ir
Particulars ( () Parliculars ( ?)
Iir Profit and l,oss AJc 2,400 []r Balan<c birl 56,000
lir Revaluation A,,/c 4,800 I)r' Khushlxxis (lapital Ay'r' 30,000
lb Bank A,,/c 20,800 BY l\reena's (i:rpital ,A/c 12.000
lir l,eela's [-oan .A,./c 70,000
9U,(X)0 '
rs.lI t0

{?) (t)
20l ir 2015
Jtrne 30 li) Bank &c (35,(X)0+ 1,750) 36,750 Apr. I By Leela's Capital .Ay'c 70.000
Sept.30 Ib Bank A"rc (35,000+ 875) 35.875 .June 30 Bv Interest I,750
l' ro i\
l70.o00xtfirxD/
S( l) t. :i0 / ro s\
x to{, x
lJ75
[:]5.000 t, /
7'2-0=, : .l 1;ll
Working Note:
l.eela's share : 1,40,000 x I = {42,tt0t)
t-rf Gorxlwill
,l
Khushboo = 42,t)00 x iI = (l2,0Ut)
25. Dr Dev's Capital Account (lr
Particulars (?) Particulars (r)
'lo Drawings A/c 15,000 By Balance b/d 77,000
To Prolit and Loss AJc 22,800 Ry Profit and l-()ss Suspense A,/c 10.425
_fo
Dev's Executor's ,{,/< 51,935 B! [nterest (]n (iapital 2,3 r0
39.73 r-r 81r.7:ii
Working Notes:
(i) Calculation of lntcrest on Capital: 7?,000 ,l;r+ = T2,310
(ii1 Calculadon ofShare of Profit:
_ ((2,04,000+1,80,000+90,000-57,000)
Average Profit =
4 = {1,04.250
(iii) Dev's share of profit : 1.04.250 , = (10,425
irra
(iu) Share in Profit and I.oss A,/c (Dr. Balancc of Profit and Logs)
= (zz.soo
rllr
= 57.000
"i
/t. r20 Accor.rntancy Xll
////r,,.
-
 26. (' The company's total requirement for the loan will be calculated as follows:

= 'fotal Funds Requirements - (Funds arranged from the internal sources + unPaid
calls, called-up now)

= ? 12,50,000 - (t5,00,000 + t 30,000)

={ 12,50,000 - t5,30,000 = (7,20,000.
(i, Debentures issued as collateral security are of nominal value, i.r., 10,800, 87o
Debentures of 1100 each of{10,80,000.
(? 7,20,000 x 1.5: t10,80,000)
(t,i) No, the company is not liable to Pay the interest on these debentures because
debentures are issued as collateral security.
(iu) The debentures issued as collateral security will be shown as follows in the financial
statements of the company (in Notes to Accounts under sub head Long-term
Borrowings):
<a
[.oan from Bank of India 7.20,000
8% Debentures 10,80,000
l,ess: Debenturcs Suspense Account 10,80,000 Nil
(lssued as collateral security)
7JOT00
(c) Reserves and Surplus
OR
(c) Current Assets - (Inventory + Prepaid expenses)
28. (r) ? 10,000
29. (r) of machinery of the book value of (74,000 at a loss of t9,000
Sale
OR
(d) All of the above
30. (c) Cash used in investing activities ? 3,60,000.
31.
S. No. Items Headings Sub-headings
(i) Bank Overdraft (lurreut Liabilities Short-term borrowings
(ii) Subsidy Reserve Shirreholdets' funds Reserves and surplus-otlter
(iii) Capital Redemption Reservc Shareholders' funds Reserves and surplus
(iv) Mining Rights Non-current assets Fixcd assets-lntangible
(v) Patents Non-current assets Fixed assets-lntangible
("i) Debit Balance in Statement Shareholders'funds Reserves and surplus
of P&L (As negative arnount)

32, -fhese
Management needs different informations for different decisions to be taken by it.
informations can be r>btained from the analysis of the financial statemcnts.
It supplies informations about financial health, performance, creditability, solvency,
etc.
!lll
I $3rrrplo Pitlrr-,rr, I2I
N
 ooeratins Profit
33, ooeratins profir Rari. =
N#x100
Net Revenue from Operations = t4,00,000 - ? 15,000 = <3,85,000
Cost of Revenue from Operations = Opening Stock + Purchases - Purchase return
Closing Stock -
= ? (10,000 +1,20,000-5,000-60,000)= ( 65,000
Gross Profit = Net Revenue from Operations - Cost of Revenue from Operations
= t3,85,000 - t65,000 = ?3,20,000
Operating Expenses= Selling Expenscs + Administrative Expenses
= ?70,000 + <40,000 = t1,10,000
Operating Profit= Gross Profit - Operating Expenses
= ?3,20,000 - {1,10,000 = t2,10,000
{2. I0.000
()perating Profit Rario: f3-85.000 t lO0 = 54.55Vt

OR
(i) Nochange (ii) Decrease
(iii) Decrease (iu)
Increase
34 Cash Flow Statement of KK Ltd.
for the yar md.ed 3lst March, 2015 as per AS-3 (Reri:ed)

Particulars ( ?) (<)
A. Cesh Flow from Opetating Activitier:
Net Profit before tax and extraordinary items (note l) {;.(x).0{){)
,{dzi: Non-cash and non-operaring charyes
G<xrdwill written off 20.000
Depreciation on machinery 1,91t,000

lnterest on debentures I,?0.(xx)

()perating-profit before working capiral changes 9,3ri.(xx)
Lesr: Increase in Current Assets.
Increase in Inventories ( 1.2.1.()00)

Cash from operations 8.1,1,000

lass. Thx paid ( t,40,0(x))
Net Cash generated from Operating Activities (A) 6.74.000
B. Crrh Flo* &om Invectiag Activities:
Purchase of machinery (7,6.1,000)

Purchase on non{urrent investments (50,0m)

Nct Cash used in investing activiries (B) (n.l.l.(xx))

rllu
/r. r22 Accountancy Xll I
////r,,
 C. Cash Flow from Financing Activities:
Issue of share capital 2,00,000

Redemption ot l2? debentures ( r,00,000)

lnterest on debentures paid ( I,20,000)

Bank overdraft raised 2,00,000

Net Clash flow liom financing activities(C) t.80,000

Net increase in cash and cash equivalents (A + B + C) 40.000

,,ldlr Cash and Cagh Equivalents ia rhe begiooing of rhe year

Current investments l,20,000
Cash and (lash [quivalents I,20.000 2.40.000
Cash aad Cash Equivelents at the end of the year
Current investments I,00,000
Cash and Cash Equivalenrs It( ) 000 2.8{).000
Working Notes:
l. Calculation of Net Profit beforc nx: ({)
Net profit as per Statement of Prolit and Loss ir,00,000
,,ldr1r Provision fbr tax ntade I ,00,000
Net Profit before tax and extraordinary items i'JiIo00
2. Dr. Provision for Taxation Account Cr.

Particulars ( ?) Parrticulars ( r)
Tir Bank Ay'c 1..10,000 By Balance b/d 1,rJ0,000
(liu Paid) By Statement of Prolit and Loss I,00,000
Tir Balance c/d 1..10.(x)0 (BalaDcing Figure)
!.ti0,o00 'l,lJo,(x x)

llt

,!lll'

$111n pls P;1p6111; r23

N,
 .\N ':.:....
'*-

-. , SAMPLE PAPER
5
ts I LVE I
Time Allowed; 3 hours Max. Marks: 80

Genetal Instructiotts: Samd ar CB.SE Sample Qtestion Papcr-2022-B (Solved)

PART-A
(Accounting for Partnership Firms and Companies)
l. At the time ofadmission ofa partner, what will be the effect ofthe following information-
Balance in Workmen compensadon reserve (40,000. Claim for workmen compensation
t45,000?
(a) 145,000 Debited to the Partner's capital Accounts
(r) ?40,000 Debited to Revaluation Account
(r) t5,000 Debited to Revaluation Account
(d) t5,000 Credited to Revaluation Account
2, Read the following statements-Assertion (A) and Reason (R). (lhoose one ofrhe correct
alternatives given below:
Assertion (A): Wherr the new partner brings his share ofgoodwill premium in cash, it
is transferred to the capital accounts ofsacrificing partners.
Reason (R): -fhe treatment of goodwill is undertaken at the time of admission of a
partner to compensate the old partners for their sacrifice.
Alternatives:
(a) Both Assertion (A) and Reason (R) are truc and Reason (R) is the correct explanation
ofAssertion (A)
(D) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation ol Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
3. Anish Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were
received for 3,000 shares and pro-rata allotment was made to the applicants of 2,400
shares. IfDhruv has been allotted 40 shares, how many shares he must have applied for?
(a\ 40 (b) 44
(r) 48 kf) 52
OR
When debentures are issued at discount, then and Debenture
Application and Alkrtment account are debited.
(a) Discount on issue of Debentures (D) Loss on issue ofDebentures
(:) Debentures (d) Both (a) and (r)
rlll
t24 Accountoncy Xll
h,,
-
 4. Anurag and Thni are partners in a lirm sharing proflts and losses in the ratio of 4: I .

Balance Sheet (an Extract)

Liabilities (r) Assets ( r)
Business premises 6,00,000

If value of Business premises in the Balance Sheet is undervalued by 20%, then at what
value will Business premises be shown in the new balance sheet:
(a) ?6,60,000 (6) {7,20,000
(c) t4,80,000 (d) {7,50,000
OR
What share of profits would a "Sleeping Partner" who has contributed 80% ofthe total
capitals get in the absence ofa deed?
(a) 80% ofthe total profit (r) l/8th ofthe total profit
(c) equal share (d) as per his demand
5. Simran and Tina were partners in a firm sharing profits in the ratio of3:2. During the
year ended 3lst March, 2021 Simran had withdrawn ?45,000. Interest on her drawings
amounted to {900. Which of the following accounts would be credited?
(a) Interest on Drawings Account (r) Simran's Capital Account
(c) Simran's Current account (d) Profit and Loss Account
6. On lst Oct.,202l PK Ltd. issued 500, 97c Debentures of{500 each at a discount of49c.
Debentures' interest for the year ended 3lst March,2022 will be:
(a) { 1 1,250 (r) (10,800
(c) ?22,500 (d) None of these
OR
ofa machinery of ( 7,20,000, debentures of { 100 each were
As a purchase consideration
issued at a premium oft25 by the company. The number ofdebentures issued by the
company is:
(a) 7,200 (b) 7,000
(e) 5,700 (d) 5,760
7. Joy Ltd. issued 1,00,000 equity shares of { l0 each. The amount was payable as follows:
On application - (3 per share.
On allotment - ?4 per share.
On first and final call - balance
Applications for 95,000 shares were received and shares were allotted to all the applicants.
Sonam to whom 500 shares were allotted failed to pay allotment money and Gautam
paid his entire amount due including the amount due on first and final call on the 750
shares allotted to him along with allotment. The amount received on allotment was
(a) ?3,80,000 (i) {3,78,000
(c) ( 3,80,250 (d) t4,00,250
8. Credit balance of Profit and Loss Account appearing in the Balance Sheet on the death
ofa partner is credited to:
(a) Deceased partner's capital account
(D) All partner's capital accounts (including deceased partner's capital account)

'llt'
I Sa rnplL. Papers I25
N
 (r) Remaining partner's capital account
(d) None ofthe above.
OR
Where will yr>u record commission paid to a partner, when partners are having fixed
capital accounts?
(a) On the debit side of Partner's Capital Account
(D) On the credit side of Partner's Capital Account
(r) On the debit side of Partner's Current Account
(d) On the credit side of Partner's Current Account
Read the following hfuthctical turt and atsuet tho questions no, 9 and I0:
Satnam and Qureshi after doing their MBA decided to start a partnership 6rm to
manufacture ISI marked electronic goods for economically weaker sections of the
society. Satnam also expressed his willingness to admitJuliee as a partner without capital
who is specially abled but a very creative and intelligent friend of him. Qureshi agreed
to this. They formed a partnership on lst April 2020 on the following terms:
Satnam contributed ?4,00,000 and Qureshi contributed ?2,00,000 as capitals.
Satnam, Qureshi andJuliee decided to share profis in the ratio of 2:2:1.
It was decided that Interest on capital will be allowed @6Vo p.a.
For making advanced electronic goods, they had to import a technological upgraded
machinery from Germany. For this, they required additional capital.
Due to shortage ofcapital, Satnam contributed ?50,000 on 30th September, 2020 and
Qureshi contributed {20,000 on lstJanuary, 2021 as additional capitals. The profit of
the firm for the year ended 3lst March, 2021 was ?3,37,800.
9. What will be the amount of interest on capital credited to Satnam's capital A,,/c on 3lst
March, 2021 ?
(a) {24,000 (r) t25,500
(c) t27,000 (d) { 12,300
10. Profit transferred to.[uliee's Capital A,/c at the end ofthe year will be:
(a) 1,20,000
? (r) { 1,00,000
(r) t60,000 (d) None of these
ll. Under which of the folkrwing circumstances, the balance ofthe'Fixed Capital Accounts'
will change?
(a) Additional capital is introduced (r) Interest on capital is proyided
(r) lnterest on drawings is charged (d) None ofthe above
12. The amount ofsecurities premium reserve cannot be used for:
(a) Writing off preliminary expenses
(D) Writing offthe amount ofdiscount on issue ofdebentures
(r) Issuing bonus shares to shareholders
(d) 'lransferring to general reserve
13. If{8 was received against share of(10 and it was forfeited, then it can be re-issued at
least at:
(a\ 72 (r) t l0
(r) (8 (d) ? l2
'llt'
r26 Accountancv Xll
/il,,
-
 14. Interest on partners'loan is to be treated as:
(c) an appropriation out of profits (D) a charge against profit
(r) Both (a) or (D) (d) None ofthe above
15. When equal amounts are withdrawn in the beginning ofeach quarter during the year,
the interest on drawings will be calculated as:
(a) Total Drawings x Rate/100 x 7.5/12 (D) Total Drawings x Rate/100 x 8/12
(c) Total Drawings x Rate/I00 x 4.5/12 (d) Total Drawings x Rate/100 x 6.5/12

OR
Annual interest on drawings @5Vc p.a., when a partner withdraws ?6,000 at the end of
each month, will be:
(a) ( 1,750 (rt) { 1,650
(r) t 1,250 (d) ?3,000
16. The firm paid realisation expenses of {20,000 on behalfof Rahul, a partner with whom
it was agreed at { 50,000. Realisation expenses came to ? 70,000. Realisation Account
will be debited by:
(a) ( 20,000 (r) ( 70,000
(c) ( 50,000 (d) {1,40,000
17. Sonali, Monali and Hetal were partners in a firm sharing profits and losses in 5:3:2. The
profits of the firm lbr the year ended 31st March, 2018 were {8,40,000. Monali died
on 30th September, 2018. After the death of Monali, Sonali and Hetal agreed to share
future profis and losses in ratio o[4:3. Pass necessary jou rnal entry.
18. Amit and Vijay started a partnership business on lst April, 2017. Their capital
contributions were ?2,00,000 and t1,50,000 respectively. Thc partnership deed
provided: (i) Interest on capital at l09a p.a. (ii\ Amit to get a salary of{2,000 p.m. and
Vijay T3,000 p.m. (iii) Profits are to be shared in the ratio of 3:2.
The profits for the year ended 3l st March, 2018 before making above appropriations
were {2,16,000. Interest on drawings amounted to {2,200 for Amit and 12,500 for
Vijay. Prepare Profit and Loss Appropriation Account.
OR
X,Y,Zare partners in a ltrm who share profits in the ratio of 2:3:5. The hrm earned
a proht of ? 1,50,000 for the year ended 3l st March, 20 t 8. The profits by mistake was
distributed among X, Y and Z in rhe ratio of 3:2:l respectively. This error was noted
only in the beginning ofthe next year. Pass necessary entry to recti$ the eror.
19. On lstApril 2015, P Ltd. issued 6,000 l27o Debentures oft l00eachat par redeemable
at a premium of 7Vc. The Debentures were to be redeemed at the end of third year.
Prepare Loss on issue of 12% Debentures Account.
OR
K Ltd. took over the assets of t15,00,000 and liabilities of t5,00,000 ofP l,td. for a
purchase consideration oft13,68,500. {25,500 were paid by issuing a promissory nore
in favour of P Ltd. payable after two months and the balance was paid by issue ofequity
shares of { 100 each at a premium of 25%.
Pass necessary journal entries for the above transactions in the books of K Ltd.

!lll
I $6mple P6pg15 r21
.'NN
 20. A business has earned average profits o{ ( I,00,000 during the last few years and the
normal rate ofreturn in similar business is l0%. Find out the value ofgoodwill by:
(i) Capitalisation of Super Profit Method and
(ii) Super Profit Method if the goodwill is valued at 3 years'purchase ofsuper profit.
The assets ofthe business were ? 10,00,000 and its external liabilities T I,80,000.
21. On lst April, 2012, Janta Ltd. was formed with an authorised capital of {50,00,000
divided into 1,00,000 equity shares off 50 each. The company issued prospectus inviting
applications for 90,000 shares. The issue price was payable as under:
On Application: {t5
On Alkrtrnent : ?20
On Call: Balance amount
The issue was fully subscribed and the company allotted shares to all the applicants. The
company did not make the call during the vear.
Show the fbllowing:
(a) Share capital in the Balance Sheet ofthe company as per Schedule III, Part I ofthe
Companies Act, 2013.
(D) Also prepare'Notes to Accounts'for the same.
22. Your neighbours Ohosh and Chandra had been partners in a firm sharing profis and
losses equally. Due to persistent losses, they decided to dissolve their hrm on lst April,
2022.'Ihey have transferred external liabilities and various assets to Realisation Account
claims ofvarious creditor need to be settled. You have been assigned the responsibility to
settle that. Givejournal entries for settlement ofcreditors through assets in the following
cases:
(i) Anuj, a creditor (already ransferred to Realisation Account) for (25,000 accepted
furniture (already transferred to Realisation Account) at <36,000, in full setdement
of his claim.
(ii) Gul, a creditor (already transferred t<.r Realisation Account) fbr (25,000 accepted
furniture (already transferred to Realisation Account) at t20,000 in scttlement of
her claim.
(iii) Navya, a creditor (already transferred to Realisation Account) for ? 30,000 aSreed to
take Machinery (already transferred to Realisation Account) at {48,000 (book value
T50,000) in settlement of he r claim.
(n,) Dev, a creditor of ?20,000 (unrecorded in the books) agreed to accept computer
(unrecorded in the books) at { 15,000 plus 12,000 in full settlement of his claim.
23. Atlantic Ltd. invited applications for issuing 2,40,000 equity shares of {10 each at a
premium of{6 per share. The amount was payable as follows:
On application {4 per share (including premium { I per share)
On Allotment {6 per share (including premium {3 per share)
On First and Final Call - Balance.
Applications for 4,80,000 shares were received. Pro-rata allotment was made in the ratio
of 3:2 and remaining shares were rejected and application money refunded. Excess
money received with applications was adjusted towards sums due on allotment. Mohit

'tllt'
r28 Acr;orrntancy Xll I
 holding 1,200 shares failed to pay the allotment money. His shares were fbrfeited
immediately after allotment. Afterwards the final call was made. The forfeited shares
were re-issued att8 per share fully paid up.
Pass necessaryjournal entries for the above transactions in the brxrks of Atlantic I-td.
OR
LOM Ltd. invited applications for issuing 2,00,000 equity shares of {10 each at a
premium of{3 per share.'I-he amount was payable as follows:
On application and allotment - {8 per share (including premium)
On first and final call - the balance amount.
Applications for 3,00,000 shares were received. Applications frrr 50,000 shares were
rejected and money refunded, Shares were allotted on prorata basis to the remainirrg
applicants. First and final call was made and was duly received except on 2,500 shares
applied by Kanwar. His shares were forfeited. The forfeited shares were reissued at ?7
per share fully paid up.
Pass necessary journal entries for the above transactions in the b<rcks ofthe company.
24. Sanjana and Alok were partners in a firm sharing prolits and losses in the ratio 3 : 2. On
3lst March, 2018 their Balance Sheet was as follows :
Balance Sheet of Sanjana and Alok
as at ) l-)-2018

Liabilities ( r) Assets (r)

Creditors 60,((x) Cash l.(;(i,000

Workmen's Compensation Fund 60,000 f)ebtors 1,46,000
Zesr; Provision
(lapitals for doubrful debts 2.000 1,14,000
Stock t,50,000
Sanjana 5,00.000 lnvestments 2,60,000
Alok .1.00.(xx) 9,00,000 Furniture 3,00,000
10,20,000 Io 20 0(x)

On lst April, 2018, they admitted Nidhi as a new partner for l/4rh share in the prohts
on the following terms :
(a) Goodwill of the firm was valued at (4,00,000 and Nidhi brought the necessary
amount in cash for her share ofgoodwill premium, halfofwhich was withdrawn by
the old partners.
(D) Stock was to be increased by 20% and furniture was to be reduced to 90%.
(c) Investments were to be valued at t3,00,000. Alok took over investments at this
value.
(d) Nidhi brought {3,00,000 as her capital and the capitals of Sanjana and Alok were
adjusted in the new profit sharing ratio.
Prepare Revaluation Account, Panners' Capital Accounts and the Balance Sheet of the
reconstituted firm on Nidhi's admission

'tllI
I Sample Pa pors i2g .\
N\\
 OR
Amit, Balan and Chander were partners in a firnt sharing profits in the proponion of
|,* ""a I respectivclv. Clhan<lcr retired on lst ,\pril,2014. The Balanr:e Sheet of the
firm on thc date of (lhander's retircrnent was as lirllo'ws:
Balance Sheet of Amit, Balan and Chander
ril, 2o II
Liabilities (?) (t)
Sundry ( lrt'<litols I ?.600 Bal k .1.I00
l,xrvirlcnt lund 3.000 l)cbtrrrs :10.(xx )

(iencral Rrscrr'c' 9,000 /..,lr.' l'rolision l {XX) 29,000

Capitals: Stock 25,000
Anrit .lo,(x)0 Invcstlnents 10,000
Birlarr :}{i.5(x) l'al cDI s 5,0(N)
(lharrrler' 20.000 1xi,:-){ X ) i\lachinelv 48,000
t.? I,l (x) I 2l I o{)

lt was agreed that:

(a) Goodwill will be valued at ?27,000.
(b) Deprcciation of l0% was to be provided on machinery.
(r) Patents were to be rcduced by 20%.
(d) Liability on account of Providcnt Fund was estimated at (2,400.
(c) Chander- t()ok over investments fbr t 15,800.
g') Amit and Balan decided to adjust their capitals in proportion oftheir profit-sharing
ratio by opening current accounts.
Prepare Revaluation Account and Partners' Capital Accounts on Chander's retirement.
25. Girija, Yatin and Zubin were partncrs sharing prohts in the ratio 5 : 3 : 2. Zubin died on
lst August, 2015. Arnount due to Zubin's execrrtor after all adjustments was { 90,300.
The executor was paid ? 10,300 in cash immediately and the balance in two equal annual
installments with interest @ 6% p.a. starting from 3l st March, 2017. Accounts are closed
on 3lst Marr:h each year.
Prepare Zubin's Executors Account till he is finally paid.
26. On lst April 2020, Shiksha Ltd. issued 3,000, l27c Debentures of (100 each at par
redeemable at a premium ol 7c/t. Thc Debentures were to be redeemed at the end of
third year.
On the basis of the above information, resolve the following issues:
(i) Can the company write off the 'I-oss on lssue of Debentures' over the period of 3
years?
(ii) From which source, the loss will be written off?
(iii) How will you prepare the Loss on Issue ofDebentures Account?
(irr) Under which sub-head and head, the amount of 'Premium Payable on Redemption
of Debentures' is sh<.rwn in the Balance Sheet?

rlll
r30 Ac(iountancy Xll I
tu,
 PART-B
(Aralysis of Financial Statements)
27. '(llaims against thc (()nrpany not acknowledged as debts'is shown in the Balance Sheer
of a company as:
(a) Non-current Liability (d) Rcserves and Surplus
(r) current liability (d) Contingent l.iability
OR
'liade Receivables'lirrnover Ratio:
(i) measures the e(ficiency ofcollection staff
(ii) high ratio means,high risk ofbad debts
(jir) a krwer latio means inellicient credit sales policy
(lhoose the correct ()ption:
(a) only (i) is correct (D) only (i) and (iii) are correct
(r) Only (ii) is correct (d) Only (ii) and (iii) are correct
28. -l'here arc culrent assets (5,00,000 and current liabilities {3,00,000 ofa [irm. Managers
wish to make current ratio 2 : l. State the current liabilities to be paid:
(a) t50,000 (r) < I,50,000
(c) t I,00,000 (d) T2,00,000
29. Which ol the following transactions will result into flow ofcash?
(a) Deposited {40,000 into bank.
(6) Withdrew cash from bank t54,000.
(r) Sold marketable securities o[{25,000 at par
(d) Sold machinery of book valtre of{50,000 at a gain of(10,000.
OR
While calculating operaring net profit, which will bc added to net profit?
(a) Relund oftax (D) Dividend received
(r) Creation ofgeneral reserve (d) Gain on sale ofassets
30. X l,td. purchased lurniture [<rr T 20,00,000 paying 60% by issue ofequity shares of? l0
each and the balance by a cheque. This transaction will result in:
(a) Cash used in investing activities { 20,00,000.
(6) Cash generated from financing activities t 12,00,000.
(r) Increase in cash and cash equivalents t 8,00,000.
(d) Cash used in investing activities { 8,00,000.
3I. Underwhich major headings and sub-headings will the following items be shown in the
Balance Sheet ofa company as pcr Schedule III Part I ofthe Oompanies Act,20l3:
(i) Net krss as shown by Statement of Profit and Loss
(ii) Capital redemption reserve (iii) Bonds
(il,) Loans repayable on demand (r) Unpaid dividend
(rri) Buildings
32. Briefly explain the significance of 'Analysis of financial stat€ments' to (a) The Finance
Manager, and (D) liade Payables.

,ll,
Sa rr ple Papers I3I N
'\\\\\
 33, From the following information, determine the opening inventory and the dosing
inventory
Inventory TurnoverRatio 5 times
Revenue from Operations ?8,00,000
Gross Profit Ratio 25%
Closing inventory was ? 20,000 more than the opening inventory.
OR
Debt to Equity Ratio of a company is I : 2. State with reason which of the following
transactions would (i) increase; (ii) decrease or (iii) not change the ratio
( l) Issued equity shares of ( I,00,000.

(2) Obtained a short-term loan from bank (1,00,000.

34. From the following Balance Sheet of Kiero Ltd. and the additional information as on
3lst March,20l8, prepare a Cash Flow Statement:
Kiem Ltd.
Balanre Shtet as a.r , I sl March, 2018
Paniculars Noi€ Stst M.rch, 3l.t Mrch,
No. 2018 (r) 2017 (r)
I. EQUITY AND LIABILITIES
(l) Shareholdcrs' firndo
(a) Share Capital 7,90,000 5,80,000
(b) Reserves and Surplus I 4,60,000 r,20,000
(2) Non.Current Liebilitiea
Long term Borrowings 5,00,000 3,00,000
(3) Current Liabilities
(.r ) Short-term borrowings 3 1,15,000 42,000
(r) Short-term Provisions I r,18,000 46,000
Ibtal _J-9&999 _t-9e999
II. ASSETS
(l) Non.Currcnt Altct!
Fixed Assets
(i) Tingible Assets 5 9,80,000 6,35,000
(ii) Intangible Assets 6 2,68,000 l,70,000
(2) Currcot Asscls
(4) Current lnvestments 1,40,000 70,000
(b) Trade Receivables 4,40,000 1,50,000

(.) Cash and Cash Equivalents 1,55,000 63,000

Totsl 19,83,000 _19cs999

rlll
r32 Accountancy Xll
//,,
-
 Note No. Particulars 3l st March, Slst March,
2018 ( r) 2017 (r)
I Reserves and Surplus

Surplus (Balance in Statement of Profit and Loss) 3,20,000 60,000

General Reserve I,40,000 60,000
4,60,000 1,20,000
LonB-term Borrowings
t2% Debentures 5,00,000 3,00,000

_5q99S 3,00,000
3 Short-term Borrowings
Bank Overdraft I,15,000 .12,000

1,15,000 42,000
,1 Short-term Provisions
Provision for Tix I,18,000 46,000
1,18,000 46,000
Tingiblc Assets
Plant and Machinery I I,00,000 7,50,000
Less : Accumulatcd Dcprcciation (1,20,000) (r,15,000)
9,80,000 6,35,000
(; lntangible Assers
Goodwill 2,68,000 t,70,000
2,68,000 t,70,000
Additional Information :
l27o debentures were issued on lst September,20l7.

ttt

,11,

I Sample Papers I33

'Nu
-$lnnswel l. (r ) {i,(Xx) l)t'lritcrl to Rcvrrluuriorr .\(rrurrr
2. kr) Botlr.,\ss(,11i()lr (.\);rrrl lLcasort (l{)arr tIu('illl(l Reirsort(R)isth('('()rr((texl)lirnirli()n
()l -\ss( rli()rr (-\ )
3. l, ) .1t{

OR
(a) I)is( ()url orr issrrt ol l)t'lrt'rrlrrlt s

'1. )(,/ 7.io.(x)0

<
OR
1r) etlrral sllir|t'
5, (4) lnl( r'( st oD l)r'lrrvirrgs .\ctorrttt
6. (//l <ll.:50
OR
(,/) < 5.7(;0
7 (r) t3,80,250
8 (b) All partner's capital accounts (including deceased partner's capital account)
OR
(d) On the credit side of Partner's Current Account
9. (r) 425,500
10. (c) 160,000
I l. (a) Additional capital is introduced
12. (d) Transferring to general reserve
t 3. (a) ?2
14. (r) profit
a charge against
15. (a) Total Drawings x Rate/I00 x 7.5/12
OR
(
(r) l,650
16. (r) {50,000
17. Journal
Date Particulars L.F. Dr. ( ?) Cr. ( ?)

:0l8 Sonali's Capital A,/c l)r JO.(XX)

St Pt. ltO Hetal's Capital A,,/c l)r' !){;,0(xt

'li) Monali's (lapital Ay'c l.?{;.t)(x)
(Being Monali's share of profit credited to her capital
account )
Working Notes:
l. (lalcrrlatiorro l(lirinirrg R:rt io: N crv Rat io - ( )l<l R:rti<r
ir -lO-:ti l't
lt tal = :i
30 - l.l l(i
S,r,r,,li - l- l0- 70 -io' I
l0 70 70
'lllI
I34 nc.cruntancy Xll I
,///,,,
 Gaining Ratio ofSonali and Hetal = 5:16
(lalculation <.rf Share in Profit of Monali
= u,40,000 r 9r#
= {1,26,000
'I'his sharc in profit ( 1,20,000 will be adjusted through the capital accounts of Sonali
and Hetal in their gaining ratio.
18. Profft and Loss Appropriation Account
Dr. lor tfu yar crulcd ) I sl March, 201ll
(i
Paniculars ( r) Paraiculars ({)

To Interest on (iapiral: Amit ?0,0(x) By Profit before Adiustments 2.I (i.0(x)

viiuv 1i.000 3ir,000 Ry lnlerest on Drawings:
Tb Partners' Salaries: Amit 2.1.(xx) Amit 2,2oO
vtiov 3(i.000 rio.000 Vtjoy 2.500 .l,7(x)
To Nct Profit translerred to:
-{nliCs Capital A,/c 75.1!0
Vijay's Capital ,Ay'c i( ).2tto l,'15.7{)t)
2.:.10,7(X) 2,20.700
OR
Statement Showing Adjustment
Particulars x (r) Y (r) z (rl Firm ( ?)
Wr-ong pxrlit <listlil)uted in the latio 75.(XX) 50,(x)0 !5,(XX) 1.50,(xn)
ol ll:'2: I
.1.-).0Oo 75,000 1.50.(x()
Ciorrect profit distributed in the 3{),000
ratio of 2:3:5
Nct lllli'ct (l)t.)(.15.{x)0) (l)r.) (5.0(X)) ((;r:) :)0,000
Adjustment Entry
\'\ (:apitrl .V( l)r {ir.000
\"s irrpital .\'r
( l)r 5,0{)0
lir Z's Oapitirl &c i 0,{ )0{ )

li rl ist rilrtrtcrl

19. l)t. Loss on Issue of 12% Debenaures Account ():

Dalc Paraiculars ( r) Dale Particulars (t )

20lir :0 1{i
.{pril I
'fo Prcnrirror otr Redcnrption l:.1.(xx) \l:rl :t I B\ St;rtcIl)( t ()l l'-.l.oo{)
of l)cbt'tttures :Vc l'r ollt .rrrrl l-osr
l:.t.(xx) J4Il
Notes: I ..\ccortling l().-\c(()untinl{ Sran<lartl l{i. tlorrosing (i)sl rc(lr.rires tltal tltc loss ott
issrrcol rlcbcntur-es bc s rittcn oll itt tht- sanlc vcirl in s Irit lr it is int ttt rt rl.
ln tlrc:rlrsetr<c ol attv irtlirltnaliott alxrttt St'<tttitits Ptctttittttt Rcsetvt lossrttr issttt'
ol rlebcrrtrrrt's is rllittcrr oll hortr Slirtctnenl (,1 l,rl)lit arttl Loss.

'!lll
I Sa rnplt: Prtfrt:t:; r35
N
 OR
K Ltd.
Journal
Date

(,)
Particulars

Sundry Asscts A,,/c Dr.

L.F. Dr.

15,00,000
( l)
E
Goodwill A"rc (Balancing figure I)r 3,68,500
To Sundry l-iabiliries A,.i c 5,00,000
'lo P Ltd. r3,68,500
(Being Asset-s and Liabilities acquired)
(ii) I' l.rd. [)r: 13,6ri,50{)
Tb Bills Payable A,/c 25,500
'Io Equity Share Capital A/c r0,74,400
'Io Securities Premium Reserve A,,/c 2,68,600
(Being promissorl,note accepted and 10,744
equity shares issucd at a premium ol 257r)
20. (i) (a) Capital Employed = Assets - External Liabilities
= t 10,00,000-t 1,80,000 = t8,20,000
(D) Normal Profit = Capital Employed , N**d....%ni!tq-
= (8,20,000 x 10/100 = (82,000
(c) Super Profit = Actual Average Proht - Normal Profit
= ( 1,00,000 - t82,000 = t18,000
As per Capitalisation Method,
Goodwill = Super Profit x = 18,000" # = t1,80,000
(ii) As per Super Profit Method
N-dffl#.ff.trr,
Goodwill = Super Profit x No. of years' of purchase = ? 18,000 x 3 = {54,000.
21.
Particulars Note Currena Previour
No. Ye.r (?) Yc.r ( ?)
I. EQUITY AND LIABILITIES
l. Sharcholtlcrs' Funds
(.r) Share (;apital I 3l ,50,000
Totat 3 r-)0 0(x)
TI. ASSETS
l. Current Assets
(o) Cash an<i (iash f.qrrivalcnts :r 1.50.1)(x)

Total :r L50000

'tllt'
136 Acc.)Lrntancy Xll I
 Notes to Accounts:
Note l.
Particulars (t)
Shere Cepitel
Authoriscd (hpi!d:
I,00,000 Equity share of t50 each 50.00.000
lssued Capital:
90,000 Equity share of ?50 each 45.00.000
Subscibcd Capital:
Sulscibcd bu! not ful\ paid-u|
90,000 Equity shares of I 50 each, ? 35 called up 3l .ir0.000
Note 2

Particulars (?)
Cash and Cash Equivalents
Caslr at Balk 3l .50.000
Books of Ghosh and Chandra
Journal
Date Particulars L.F. Dr. (?) Cr. ( l)
2022
Mar. 3l
(i) (No entry)
(,i) Realisation A,/c Dr. 5,000
To Cash A,i c 5,000
(Being creditor of?25,000 accepted furniture at
{20,000 in settlenlent of his clainr and balance
paid in cash)
(i!r) (lash A./c Dr Itr,000
'Io Realisarion A"/c llJ.(xx)
(Being creditor of 130,000 accepted machinery
ar ?48,000 and balanc,e amount received fiom her)
( iv) Realisation A,./c Dr. 2,000
To Cash A,/c 2,000
(Being unrecorded creditor accepted unrecorded
computer at I15,000 and balance of ?2,000 paid
in cash in full settlement ofhis claim)
23. Atlantic Ltd.
Journal
Date Particul.rg L.F. Dr. ( l) Cr. (?)
Bank A,/c Dr. 19,20,000
To Equity Share Application A,/c t9,20,000
(Being apptication money received on 4,80,000
shares)

'tl I
$xrnpls P3psy.; 137 .r\\\\\
.N
 Equitv Share Application A,,/c l)r 19.20.0(x)
'[c Equity Share Capiral A,./c 7,20,000
To Securities Premium Reserve Ay'c 2,40,000
To Bank AJc 4,80,000
To Equity Share A.llotmen( A,,/c 4.80.000
(Being application money transferred to share
capital ac(ouot and securities prcmium
balance refunded and adjusted)
f.qtriry Share Alkrtnrent ,Ay'c l)! l.l. 10.{)(x)
Tt) Equity Share (lapital ,Ay'c 7.20,000
Tb Securitics Premium Reserve fuc 7.20.000
(Bcing sharc allotnrent made duc)
Bank A,/c Dr. 9,55,200
To Equity Share Allotment .Ay'c 11.1-,:Oo
(Bcing allotment money received excepr on 1,200
shares and advance received on applications
adjusted)
OR
Balk.Vc Dr. 9.4)5,200
(lalls-in-Arrears A./c Dr. .l,lJ00
To Equity Share Allotment Ay'c 1t,l;t).{){x)
(Bcing alftrtrrrent money received cxcept on 1,200
shares)
Equity Share Oapital ,Vc Dr. 7,200
Securities Premium Reserve,.lJc Dr. 3,600
Tir Sharr lirlli'ited .Vc (i.(xx)
Ib Er;trity Share Allotnrent ,Ay'd( l:Jl$in-An &rls iy'( .l,lr00
(Being 1,200 shar.cs of Mol)il linli'itcd alier
allotment)
l.quitr Shirrc !'ilst irnd l'inal (;all .V( [h ll.J2.lJ(xr
-lb l-rluitv Shalc (lapiral .Vt 1)..-r].1.1{)l)
'Itr Sccttt itics l)renrium Rcservc ,Vc 77.(i00
(ltcing filst ancl linal tall due on 2,:Jlt.ll00 shares)
Bank rVc I )r l-1,32.8(X)
'lir lir;rritl Shalc l'ilst and Final (]all .'\Jc ll.:l:.l.sr)0
(lleing first arrrl Iinal call nrono' r'ccr:ivcd)
Bank AJc Dr. 9.600
Share l'orleited A'/c Dr 2,.100
'lb !l<ltrity Share OapitalA,,/c l:.{)(x)
(Being 1,500 shares reissued frrr'{tl per share fulll
paid up)
Share lirrfiited A./r I)r 3.(nx)
1i> Capital Rescrlc .-Vc :i.rio0
(Reing gain on reissue oi lirrlcitcd slrar-es
translerre<l to capital reservc a((r)unt)
lll
r38 AccoLrrtancy Xll I
,hr,,
 Working Notes: (?)
I . Amount due on allotment 14,40.000
lzss: Excess Application money adjusted 4,lJ0.000
9,60,000
Zess: Amount not received on 1,200 shares (WN2) 4,800
Total amount received on allotmeut 9,55,2(X)
2. Shares applied by Mohit 3,60,000/2,40,000 x 1200 = 1800 shares
Allotment amount due to Mohit (1200 x 6) 7,200
less: Excess Application money adjusted [( 1800 - 1200) x 4] 2,100
.1,tt00
Amount not received from Mohit on allotment
3. Amount transferred to Oapital Reserve:
Amount forfeited on Mohit's shares 6,000
I-ess: Discount on reissue of shares 2,4o0
Amount transferred to Capital Reserve 3,600
OR
Journal of LCM Ltd.
Date Particulars L.r. Dr. ( t) Cr. ( <)

Bank A,./c f)r: 2"1,(x),000

To Share Application and Ajlotment A,,/c 2,1,00,000
(Being applicatidr and allotment received on
3,00,000 shares)
Share Application and Allotment A,,/c f)r 24,00,000
To Share Capital A,./c r0.00,000
To Securiries Prenrium Reserve A,/c ti,00,000
To Calls-in-Advance A,/c 4,00,000
.1,00,000
To Bank A/c
(Being application money adjusted and surpltls
refunded)
Slrare l-irst and l'inal (lall .A./c I)l 10.00,000
Ttr Shale Oapital A'/c I0.0().(xx)
(ltcirrg I.'ilst arr<l l'ilal Oall nxrlrer'dtte)
Bank A,,rc ( '1,00,000 - 6,000)
10,00,(X)0 - l)r ir.1I l.1X n )

h, Shat e Frrst anrl I irral ( lrrll .Vc 5.1) 1,0(x)

(lJ(irrg l-ir'\t urtl liirrrrl (l;rll rrrrr nc) re<eiled)

Share Oapital A,/c t)r. 2( ),( X )0
'lb Shar e Fir st arrd Final ( lall fuc (;.(xx)
'lir Share Forfeited A,/c 1.1.0{x)

(Being 2,000 shares fblfeired f'rrr non-pavment of

First arrd Final (,al)1
Bank A,/c l)r I.1,000
[)r (;.(xx)
Share tbrfeited A,/c
Tb Share Capital A,,/c 'l{l.o( x)

(Being 2,000 shar-es reissued at a premitrm)

'r l|
Sample Papers r3g
N
 Share Forfeited A,,/c Dr u,000
To Capital Reserve A,/c 8,000
(Being the balance of forfeiture transferred
to ca ital reserye
Working Notes:
(l) Shares allotted to Kanwar : 2,00,000/2,50,000 x 2,500 = 2,000
Excess amounr on application and allotment (500 x 8) : 4,000
Unpaid amount of Kanwar [(2,000 x 5) - 4,000] 6..00'0

(2) Required amount on allotment 10,00,000

Zess. Advance and unpaid (4,00,000 + 6,000) 4,06,000
5-S{JO0
24. Dr: Revaluation Account Cr
Particulars ({) Particulars (<)

To Furniture A,/c 30,000 By Investmenrs A,/c 40,000

To Profrt transferred ro: By Stock A,/c 30,000
Sanjana's Capital .Ay'c 24,000
Alok's Capital A"tc 16.000 .10,000
70,000 70,000
Dr. Partners' Capital Accounts Cr
Particulars Sanjana Alok Nidhi Particulars Saojaaa Alok Nidhi
(t) ( r) (r) (?) (t) (?)
To Cash A"rc 30,000 20,000 By Balance b/d 5,00,000 4,00,000
To Investments 3,00,000 By Cash A'/c 3,00,000
Nc
To Cash A,,/c 50,000 By Premium for 60,000 40,000
Coodwill A/c
'Ib Balance c/d 5,40,000 3,60,000 3,00,000 By Workmen's 36,000 24,000
Compensation
Reserve A/c
By Revaluation A/c 2.1,000 r6,000
By Cash A"rc 2,00,000
6,20,000 ri.lt0,0(x) 3.00.000 6,20,000 6,1J0,000 3,00,000
Balance Sheet of the Reconstituted Firm
as at 31st March, 2018
Liabilities (?) Assets (()
Creditors 60,000 Cash at Bank 6,66,000
Capitals : Debtors 1,46,000
Sanjana 5,40,000 Lzss:Provision
Alok 3,60,000 fbr doubtful debrs 2.000 1,44,000
Nidhi 3.00.000 12,00,000 Stock I,80,000
Furniture 2,70,000
12,60,000 r 2,60,000

il
r40 Accountancy-Xll
,///,,,
 Working Notes:
l. Nidhi's share of Goodwill: ?4,00,000 x l/4= t I,00,000
2. Calculation of New Profit-sharing ratio of partners:
Nidhi's share = l/4, Remaining share = I - ll4 = 3/4
Sanjana's New Share = 314 x 315 = 9120
Al<rk's New Share : 3/4 x 215 = 6120
New proht-sharing ratio ofpartners = 9/20 : 6120:. ll4 or 9 6:5
3. Adjustment of Capitals:
Nidhi's Capital for l/4th share : {3,00,000
Total Capiul of the firm = {3,00,000 x 4/l= {12,00,000
Sanjana's Capital = (12,00,0000 x 9120 = (5,40,000
Alok's Capital = {12,00,0000 x 6120 = 43,60,000
OR
Dr. Revaluation Account (lr.
Particulars AInount Particulars A.Eount
( ?) (r)
To Machinery Ay'c "l,tt( )( ) By Provident Fund A,/c 600
To Patents A,/c t,{)(x) By Investments A,/c 5,800
To Profit transferred to Partners'
Capital A,./cs:
Amit 300
Balan 200
Chander 100
(n)0
0,,100 6,,100
I)r Partners' Capital Accounts (i r.

Particulars Amit Balan Chander Particulars Amit Balan Chander

(r) ( r) (r) (r) (t) (()
To Chander's 2,700 l.lJ00 Bl Balance b/d 40,000 36,500 :0,000
Capital ,A"/c
To lnvestment A,/c 15,800 By (ieneral Reserve A./c 4,500 3,000 1,500
To Chander's 10,300 By Amit's Capital A"/c 2,700
Loan A./c
To Balan's 5,900 By Balan's Capital A,./c I,800
Current Ay'c
To Balance cy'd 4lt,000 32,000 By Revaluation &c 3(X) 200 t00
By Amit's Current Ay'c 5.9(X )

50,700 39,700 21i,100 50,700 39,700 26,100

Working Note:
Total Combined Capital of Amit and Balan= t80,000 (after all adjustments)

New Proportionate Capital ofAmit = t80,000 x + = t48,000

New Proportionate Capital ofBalan= (80,000 x
? = {3Z,OOO

Ill
lr Sample Papers I4I '.\
.,\NN,.
\,
 25. Zubin's Executor's Account.
Dare Parriculars (r) Dalr (?)
20t5 :t015
Ar'9. I l(, Ilnr)1.\, l{).:}0o .\ug. I By Zubin s (;aptal 4,,/( 1X r,lr xI

2016 :{)l{i
N{a). 3l li) Itihn,r' , nl 8J.20o Vx': :l I By Itrterest accrued l,!(x )

1)3,:)(x) $:l.i(x)
2{)t7 I I t;
IIa'r :l I Ii) tlnnk,!, l.{)oo .\t)r. I ll\ lt.,l,,n( ( 1, (l s:i.:l(x r

l\lar :] I Ii) ttaldn(( (/(l 10.o00 :r)t7

Ii\ lrrcr(.\r (t](1.0(X) x (;ri) .1.8(x )

nl1,o00 lilt.{t0o
201u !0t7
Mar. :i I 1,, lirIl.\( l..l.l(n)
'\l)r: I Rr t].rl.rrrrcb<l 40.(xx )

20It
Itnr: :t I I]\ lrr( r (-l :.1. I (x )

1',.].1{n) .l:..1{,(,

26. (i) No, bec:ruse accor<ling to Accounting Stan(lard 16, Borrowing cost rcquires that thc
written oll in the year in whid) it is incurrcd.
loss orr issue o[ debcntrlres be
(ii) In the absence (){-arry inforuratiorrabout Securities Prenrium Reservc, loss on issrre
of debcntures is written off from Statement ()l Profit and Loss.
(iri) I)r. Loss on Issue of lZ% Deb€ntures Account (lr.
Date Particulars ({) I)atc Particulars (r)
2020 2021
April I 'lir ll crniunr on Mar. 3l Ilr Slitlrnrcnt ()l' 2l,000
Rcdcrrrption ol l'r'olit and I-oss
l)cbcntures iVc 21.000
!l o0o :l l.(xx)
(n,) Premium Payable on Redemption ofDebentures is shown as 'other non-current liability'
under Non-current Liabilities in Equity and Liabilities part of Balance Sheet.
27. (d) ContingentLiability
OR
(D) Only (i) and (ii) are correct
28. (c) t 1,00,000
29. (d) Sold machinery of book value of 450,000 at a gain of { t 0,000.
OR
(c) Creation of general reserYe
30. (d) Cash used in investing activities ? 8,00,000.
31.
S, No. I t(.trr\ Heading3 Sub".headings
(,) Net bss as shown br Statement of shar cholrlcr r' lrrrrds Resen es and Surplus as
Profil and l-oss negarivc irem
(,i) (:apital redempti()n reserve shartlrol,lt rs lrrrrtlr Reserves an<i Surplus

'r1lI
r42 Accountancy Xll J
/h,,
 0,,) Bonds \on-current l-iabilitics [.ong-term borrowingi
(n,) l-oans repavable on denund (iulrent l-iabilitics ShorFterm borrori'ings
h,) Unpaid dividend (hrrert l-ilbilitic\ ()ther current liabilitit s

(r,t) llrrrlrlrrr Non-(rrrrcrrt ir\sct\ I i\c(l .\sr(r\-ril rl,lc

32. (r) Significance to the Finance Manager: F-itr:rntc l\Iatraget' can rnake Policics an(l
clecisions keeping in nrin<l the liquidity, solvency. ellicitncy and profital)ility Ix)silir)rr
()f tlre terms o[ the lilrrr.
(/l) Significance to Trade Payables: Trade payablcs can krx)rv whether the Iilnt is alrlc
to pay thcir del)ts on tirlrc or lrot.
Rcvenue liom ()yret ations = {8,(X).000
(ir<rss Profit Ratio= 25(/r
(iross pnrfir= 25/l(x) x<tt.00,0(x) = ( 2,00,000
(i()!it ol Revenue liom ()perations = Revenue tirrrrt ()perittions - (;ross Pr()lit

= { 8,00,000 - t 2,00.000 ={ 6,00,000

. (;ost of Revenue li'ttnr Operations (Cost of (kxxls soltl)
Irrventorl 'lurnover Rilti') =
ffi
( )perring lnventor-r'* (llosin g Irrr<rrtolr
Average Inventorl' :
[.et the opening lnventory be x, Closing Inventory = x + ? 20,0(X)
_ t6,00,000
r+x+{20,000
2
5x+5x+ 1,00,000 = t12,00,000
r = I I, t0,000
()pening Inventory = t I,10,000
(ilosing Inventory = ?1,10,000 + ( 20,000: { t,30,000
OR
S.No Effect Rcason

(l) [)ecrease liquit,v increascs and delrt rrmains unafl-ecred.

(2) No changc Both Equt,v and l)ebt rentain unaffected.

34. Cash Flow Statement

lor lht stttr crulul on 1l:l lltrh.2Olll
Particulars {)
Cash Flow From Operating Activities
Net Profit befbre l.ax and cxlraordinarv itenrs (\\'N I) 4,58,000
.{r//: Depreciation on Plant and Machinery 5,000
Interest on l2% Debentures (WN2) 50,000

Operrting ProEr before Working Cepital changes 5,13,000

I-rss. Increase in 'liade Receivables (2,90,000)
(;ash generated liom opcfttt)ns 2,23,000
/-arsr tax paid (46,000)

rll
I- Sample Papers 143
 Cesh Inllows from Opcnting Activities I,77.000
Cesh Flow From Inveeting Activities
Purchase of Plant and Machinery (3,50,000)
Purchase of C,oodwill (98,000)
Cash used in Investing activities (4.48,000)
Cash Flow From Financing Activities
Issue of Shares 2, r0,000
Issue of l27o Debentures 2,00,000
Bank overdraft raised 73,000
Interest paid on 127, Debenrures (50,000)
Cash Inllo*,s fiom Finaocing activities t.:|:1.00(]
Ner increase in Cash and Cash equivalents 1.62.000
,4dd. Opening balance ofCash and Cash equivalenrs
Current Investments 70,000
Cash and Cash equivalents 63,000 1.33.0(xr
Closing balance ofOash and Cash equivalents
Current Investments l,40,000
Cash and Cash equivalents I,55,000 2,95,000

Working Note:
l. Calculation ofNet Profit b€for€ Thx: (t)
Net Profit 2,60,000
,4d.d. Amount transferred to Reserve 80,000
,{ddr Provision for Tax 1,18,000
4.-5-&-0'60

2. Interest on Debentures (r) 3,00,000 x l2l100 = { 36,000

(,,) 2,00,000 x l2l100 x 7lr2: ? 14,000
r5TT00
Itt

rlll
t44 Accountancy Xll IJ
,///,,,
 SAMPLE PAPER t
6
[UNS I L\/E I

Time Allowed: 3 hours Max, Marks: 80

C,eneral Instructions:.\.rrir (.r OllSl) *nrple (lrcslion l\Pr-2022-23 (t.lnsolted)

PART-A
(Accounting for Partnership Firms and Conpanies)
l. In a partnership firm, deficiency of Ram's share ol profit is borne by Arvind and S<xn in
their profit-sharing ratio. Journal entry will be:
(a) Ram's Capital Ay'c Dr.
To Arvind's Capital A,../r:
'Io Som's Capital A,/c
(6) Profit and Loss Appropriation Ay'c Dr.
'fo Ram's Capital Ay'c
(c) Arvind's Capital AJc Dr.
Som's Oapital A,/c Dr.
To Ram's Capital A'lc
(d) None ofthese
2. Read the following statements-Assertion (A) and Reason (R). Choose one ofthe correct
alternatives given bek>w:
Assenion (A): When a company purchases certain assets from vendor/supplier on credit,
or when it purchases a business instead of nraking Payment to vendor in
cash, the conrpany issues fully paid shares to the vendor.
Reason (R): At the time ofissue ofshares for consideration other than cash, Share Capital
Account is debited with the amount of fully paid up shares.
Alternatives:
(d) Both Assertion (A) and Reason (R) are true and Reason (R) is thc correct explanation
ofAssertion (A)
(6) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation ol' l\ssertion (A)
(.) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
3. If a share of ( l0 on which ?6 has been paid up, is forfeited, it can be reissued at the
minimum price of ..............
(c) { l0 per share (D) {tl Per share
(r) {5 per share (d) ?4 Per share

'rll|'

Sample Papers I45

 OR
Debentures which do not carry any specific rate of interest are known as:
(a) Registered f)ebentures (D) Zero Coupon Rate Debentures
(r) Bearer Debentures (d) First Debentures
4. There is a profit of {62,500 on revaluation of assets and liabilities of the partnership
firm of Vishal, Samar and Javed. As a result of change in profit-sharing ratio, Vishal
sacrifices his 3/lOth share in favour ofJaved- The partners decided to record the effect
of revaluation without affecting the book values of the assets and liabilities by passing a
single Journal entry.
Which of the folk>wing is correct?
(a) Dr. Javed's Oapital 4,,/c {18,750 (D) Dr. Vishal's Capital A,rc (18,750
(r:) Dr. .laved's Capital A,/c t62,500 (d) Cr. Vishal's capital A.rc {62,500
OR
Abhay and Baldwin are partners sharing profit in the ratio 3:1. On 3lst March 2021,
firm's net profit is {1,25,000. -fhe partnership deed provided inrerest on capital to
Abhay and Baldwin { 15,000 & ? 10,000 respectively and Interest on drawings for the
year amounted to {6000 from Abhay and (4000 from Baldwin. Abhay is also entitled to
commission @l|Vo on net divisible profits. Calculate profit to be transferred to Partner's
Oapital A,,/cs.
(a) t t,00,000 (D) {1,10,000
(r) { I,07,000 (d) ?90,000
5. Mickey, Tom and Jerry were partners in the ratio of 5:3:2. On Slst March 2021, their
books reflected a net protit oft2,10,000. As per the terms ofthe partnership deed, they
were entitled for interest on capital which amounted to ?80,000, ?60,000 and ?40,000
respectively. Besides this, a salary of?60,000 each was payable to Mickey and Tom.
Calculate the ratio in which the profits would be appropriated.
(z) l:l:l (6) 5:3:2
(r) 7:6;2 (d) 4:5:2
6. DiscounVloss on issue ofdebentures should be written off:
(c) within 2 years ofthe issue ofdebentures
(6) after the redemption ofdebentures
(c) in the year of issue ofdebentures
(d) during the life ofdebentures
7, A and B are partners sharing profits in 7 : 3 ratio, having hxed capitals (2,00,000 and
{ 1,00,000 respectively. After closing books for the year 2018, the accountant realised that
interest on capital is provided @127o p.a. instead of @ 107o. The amount of adjustment
entry will be:
(a) t200 (D) ?600
(r) {400 (d) None ofthese
8. Which of the following is incorrect about retirement ofa partner?
(a) A partner is entitled to his own share ofgoodwill at the time ofhis retirement.
(6) There is no need to compute the gaining ratio when the continuing partners decide
to share profits in the same rado that existed among them pri<.rr to redrement.
(c) Existing goodwill will be written off by debiting 'AII Partners' Capiral Accouns' in
their old ratio and crediting the Goodwill Account.
(d) New share = Gaining ratio - Old ratio
rll!
I46 Accountancy-Xll
 OR
Which of the lirllowing items is not included in Partners' (:apital Accounts?
(a) Interest on Partners' Capital ([) lnterest on Loan by Partners
(r) Interest on Partners' Drawings (./) Salaries to Partners
Read the lollouing hypothetical situation carefuAy and answer thc questiotts 9-10 on thc
basis of the same :
Raju, Sanju and Manju were partners in a fast-f<xrd corner sharing profits and ktsses in
-l
ratio 4:3:2. They sold fast food items acr()ss the counter and did home delivcry too. heir
initial fixed capital contributions were t4,00,000, (3,50,000 and {80,000 respectively.
To increase their capital base, they decided to admit Neeraj with a profit share of l/6th.
An extract ol'their Balance Sheet as at Slst March,2022 is:
Liabilities ( ?) Assets (?)

\!irrkltcn ( i rrrr llcnsatiott Rcst rvt' t.80.000

There was a claim on acc()unt of u'orkmen compensation is estimated at ( I ,98,0(X)

I)ate Particulars L.E Dr. ( t) Cr. (l)
Dr.

;--- ---^-- ::
(Being shortfall of Workmen Compensation
Reserve adjusted)
Raju's Capiul A"/c Dr
SanjLr's rVcCapital Dr
Manju's Capital Ay'c Dr.
Tir Revaluation A,/c
(Being loss orr revaluati<>n rranslbrred to Partners
Capital Accorrnts in their old profit-sharing ratio)
9. For adjusting the claim on acc()unt of Workmen Compensation Reserve, which o[ the
following A,/c will be debited and by what amount?
(a) Workmen Compensation Reserve by ? I,98,00C)
(6) Revaluatkxr A"/c by I 18,000
(r) Provision firr Workmen Compensation claim A,/c by ? I,U0,000
(d) Provision for Workmen Compensation claim A,,/c by ? I,98,000
10. In the above case, Saniu's Capital A/c will be debited by:
(a) {9,000 (b) {6,000
(r) {8,500 (d) {6,000
I l. Lalan and Balan were partners in a firnr sharing profits in the ratio of 3:2. Their fixed
capitals on 1.4.2020 were: Lalan {1,00,000 and Balan ?2,00,000.'fhey agreed to alkrw
interest on capital @ l2% per annum and to charge on drawings @) I $/6 psr annum. The
firm earned a proht, before all the above adjustments, of {30,000 for thc year ended
31.3.2021. The drawings of Lalan and Balan during the year were {3,000 and t5,000
-fhe
respectively. 'I'he interest on capital will be alk>wed even if the firm incurs a loss.
divisible profit or loss made by the partners will be:
Tllr

Sample Papers tlt N

 (a) Net krss transftrred to l-alan's (lurrent A,/c { l,tl00, Balan's Current &c {3,600
(b) Net profit rransf'erred to Lalan's Current A,/c { 1,u00, Balan's Current A/c ?3,600
(:) Net krss transfe rred t() [,alan's (]rrrrent A,,/c ? 2,t]tt0, Balan's Current A,,/c { 1,920
(rI) Nonc o[ these
12.2,500sharcsol-ll00eachwereissuedatl0%premiumt()thepromotersofacompany
Iirr their serviccs. Which account will be dcbited?
(n) lncorporation (l()sts A(count (6) Share Oapital Account
(r) Bank Account (d) Shareholders' Account
13, A company purchased new machincry for {25,00,000 out of which { 10,00,000 were
paid in cash. Bal:rnce amount was paid by issue of equity shares of {10 each tt 257c
premium. How nrany sharcs will lrc issued by the cdnpany?
kr) 1,20,000 shares (Il) 2,00,000 shares
(r) 1,50,(XX) sharcs (d) 10,00,000 shares
14. Kiran and Mushaan ale panners sharing prohts in 3 : 2 ratio, having fixed capitals
<tt,00,000 and ?4,00,000 respectively. Intcrest on capital is to be provided @8Va p.a.
f irrn had a profit of {60,000 in the year 2021. As per Partnership deed, interest on
capital is charge on profits. l-he anrount of interest (rn capital will be:
(n) Kiran t64,000; Muskaan {32,(X)0 (D) Kiran t20,000; Muskaan ?10,000
(r) Kir-au {31,200: Muskaan {20,t100 (d) Nonc of these
15. X, Y and Z are partners in a firm who sharc profits in the ratio of2:3:5. The firm earned
ir profit ol < I ,50,000 for the year ended 3l st March, 2021 . 'fhe profits by mistake was
distributed among X, Y and Z in the ratio of 3:2: I respectively. This error was noted
only in thc beginning of the next vear.
In the rcctifying.journal entry, which ofthe partners' capital accounts will be credited?
(r) X (,) Y
(c) Z (d) Both (a) and (D)
OR
'Ibm and Harry were partners in a lrrm sharing profits in the ratio of 5 : 3. During the
vear ended 3lst l\{arch, 2021 'Iirrn had withdrawn ?40,000. Interest on his drawings
amounted to (2,000.
lirr charging intcrcst ()n drawings assunring that the capitals of the partners were
lluctuating_,A/c v ill be crcdited.
(a) Tom's (iapital (D) lnterest on Drawings
() 'lbm's Orrrrent (d) None of these
16. ,{t the time of dissolution o[ partnership firm, journal entry for the settlement of loan
aclvanced by the firm to a partner would be:
kt) Bank A,/c l)r'
To Loan ro Partner A,/c
o L()an to Partner A,,/c l)r'
-I-o
Bank A,/c
(,) Rralisatron A,/c I)r
To [.oan t0 PaItneI A/.
llt \orrt of-thcst
17. A, B, (l and D werc partners in a firm sharing profits in 3:3:3:l ratio. On SlstJanuary,
2017, D retired. A, I] and O decided to share future profits in the ratio of 5:l: l. On D's
retiremcnt. the goodwill o[ the lilm was valued at (4,90,000.
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I4B Accountancy-Xll
tu,
 Showing your working notes clearly, pass necessary -journal cntry for the treatment i)l-
goodwill in the books ofthe firm on D's retirement.
18. On lst April,20l3 Brij and Nandan entered into partnership to construct t()ilcts
-l
in government girls schools in the remote areas ofUttarakhand. hey contributctl
-l'heir
capitals of ( 10,00,000 and ? 15,00,000 respectively. profit sharing ratio was
2:3 and interest allowed on capital as provided in the l'artnership Deed was l2!2.
per annum. During the year ended Slst March, 2014 thc firnr earncd a profit of'
?2,00,000.
Prepare Profit and Loss Appropriation Account of Brij and Nandan lirr the )'car
ended 3l st March.2014.
OR
Malti, Paro and Arti are partners in a firm having fixed caPital ol { U0,000, (40,000
and 150,000 rcspectivelv sharing profits as 7:6:4. 'l'he rate of intercst on capital
' was agreed at l0% per annrrm, but was wrongly credited to them as l2% per
annum. Give the necessary ad.justment entry to adjust the balance of Partners'
Capital Accounts.
19. Rose Bond Ltd. is in the business of rnanu(ircturing electrical water PumPs. It decidcs
to install some (iodrej relrigerators and microwave ovcns in the company for providing
facilities to its employees as the company is krated in thc remote area. [t named its
welfare scheme as'Employees' Relief'. Purchase price of electrical applianccs was paid
by issuing 67o Debentures. Debentures oft20,00,000 were issued at a premium ol-10%
for this purpose. Record necessary -j<>urnal entries.
OR
Sundram Ltd. purchased furniture for {3,00,000 from Ravindram Ltd. ? 1,00,000 raere
-I'he balance was paid
paid by drawing a Promissory Note in favour o[ Ravindram l-td.
by issue of Equity Shares of ( l0 each at a Premium of 25% .
Pass necessary Jourual Entries in the books of Sundram l,td.
20. The capial ofthe firur ofAnuj and Benu is t t0,00,000 and the market rate of intercst
-l'hc profit for the last three years
is 1570. Annual salary to the partners is { 60,000 each.
were ?3,00,000,( 3,60,000 and { 4,20,000. (loodwill ol thc firm is to bc valucd on
the basis of tw<> years purchase of last three years average super profits. (]alculate tlre
goodwill of the firnr.
21. Newbie [-td. was re1;istered with an authorizecl capital of ?5,0(],000 divitled into 50,000
equity shares of { l0 each. Since the econonry u'as in robust sh:rpe, the corrrpany decidecl
to ofl'er to the public for subscription of 30,000 equity shares of {10 cixh at a premitrnr
of {20 per share. Applications fbr 28,000 sharcs were received and alkrtntetrt was rnir<lc
to all the applicants. All calls wcre made and duly receivetl cxcept the Iinal call of {2 per
share on 200 shares. Shon'thc'Share Capital'irr the Balancc Slreet of Ncwhie Ltd. as pcr
Schedule III ofthe (bmpanics Act 2013. Also prepare'N()tes to Accourrts'fbr the satne.
22. Raghav, Kesari and Sanjay have been partners in a hrm nrattulicturing alarm clocks.
During recent years, they saw a decline in the demands and sale of-thcir product as
mobile phones have started to scrve the purpose of alarm clock too. All the partners
decided to voluntarily dissolve the firm throtlSh mutual conscnt.
'I-he firm of Raghar', Kesari and Sanjay was clissolved on it I .3.?021 vari()trri assets (otlret'
than cash and Bank) and tlre thir<l pany liabilities had been transferrcd to realisatiotr
acc()utlt.

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 Kcsari agreed to pay off his wife's loan of { 6,000.
'[btal Credit()rs of the firm were ( 40,000. Creditors worth { 10,000 were given a piece
of furniture costing {8,0(}0 in full and final settlement. Remaining creditors allowed a
discount of 107. A machine that was not recorded in the books was taken over by Kesari
at { 3,000 whereas its expected value was ? 5,000.
'l-he hrm had a debit balance of ? 15,000 in the profit and krss Ay'c on the date of
dissolution.
(i) Can Raghav, Kesari and Sanjay havc the right to dissolve the partnership firm in thc
stated nranner legally?
(ii) Which.joulnal entry will be passed lbr the dischargc of Kesari's wife's loan?
(iii) Sanjay is ofthe opinion that the debit balance ofprofit and loss should not be recorded
in the btnks at all. Do you agree with Sanjay? What will be the correct trealment of
debit balance ofprofit and loss?
(nr) Which.journal entry will be passed firr the settlement of creditors at the tinre of
dissolution?
23. KS Ltd. invited applications lirr issuing 1,60,000 equity shares ol ( l0 each at a
premium of (6 per slrare. 'I'he amount was payable as lbllows:
()n Application f4 per share (including premium { I per share)
()n Allotment f6 per share (including premium (3 per share)
()n First and Firral Call - llalance.
Applications fbr 3,20,000 shares were received. Applications firr U0,000 slrares were
lejected and application money refunded. Shares were allotted on pro-rata basis to the
remaining applicants. Excess money received with applications was adjusted towards
srrms due on alkrtment. Jain holding 800 shares failed to pay the all<-rtment money. His
shares were forfleited immediately afier allotrnent. Alierwards the final call was made.
'l'he forfeited shares were re-issued at ?8 per share frrlly paid up.
I'ass necessarl' journal entries for the above transactions in the books of KS Ltd.
OR
Pass necessary.journal entries fur forfeitur-e and reissue ofshares in the following cases:
(i) Fitwell l.td. Ibrfeited 50 shares of ? l0 each fully r:alled up fcrr non-payment of lirst
call of 2 pcr share and linal call of t3 per share. 30 of these sharcs were reissucd at
{tl per share fully paid up.
(ii) t'ixlink t.t<l. forfeited 100 shares of tl0 each, fully called up on which Mr. X has
paid ()nly applicati()n and alkrtmcnt uroney of (5 per share. All ot the shares were
reissued to Mr. Z @) (9 as lully paid up.
24. (lharu and Harsha h,ere parttrers in a firrn sharing prolits in tlre ratio of 3 : 2. ()n lst
April, 2014 their Balancc Sheet was as ftrlkrws:
Balance Sheet of Charu and Harsha
as al 1n ApiL2014
Liabilities (t ) Assets ({ )

(ircditors t7,000 (lash {;.0(x)

(;cneral R(.s(.r'vr -1,000 I)(,1)r{)r'\ I i,,0(X)

Wor-kntcn ( irnrpcnsatiorr Rt st lvr 9.0(x) I r\ rstrl( nls 20.(xx)

ln!cstrl(Dt flrrctrration Rcscr"r'c I t,(xx) Plarrt l.l,(xx)
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I50 Accountancy-Xll
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 Provision for bad debts 2,000 l.an<l and Buildirrg 3rt.000
Capitals:
Charu 30,000
Harsha 20.0(x) 50,000
9J,0(X) 93,000

On the above date, Vaishali was admitted for l/4th sharc in the profits ofthe firm on the
following terms:
(a) Vaishali will bring ?20,000 for her capital and <4,000 for her share of Soodwill
premium.
(D) All debtors were considered good.
(c) The market value ofinvestments was {15,000.
(d) There was a liability of {6,000 for workmen compensation.
(r) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's
capital by opening current accounts.
Prepare Revaluation Account and Partners' Capital Accounts.
OR
Leena, Madan and Naresh were partners in a firm sharing profits and losses in the ratio
of 2:2:3. on 3lst March, ro,u, ,X1.::!lce sheet was as follows:

as at ) l sl March, 20I 5

Liabilities ( ?) Assets (l)

liade Creditors 1,60,000 Land and Building 10,00,000
Bank overdraft 44,000 Machincry 5,00,000
Long-term Debts 4,00,000 Furniture 7,00,000
Employees' Providenr Fund 76,000 lnvestmcnts 2,00,000
Capitals: Closing Stock 8,00,000
Leena 12,50,000 Sundrl Debrors 4,00,000
Madan 8,00,000 Bank 80,000
Naresh 10.50.000 3l,00,(xx) Deferred Advertisement I,00,000
Expenditure
37,80,000 37,80,000

On 3l st March, 2015, Madan retired fiom the firm and the remaining partners decided
to carry on the business. It was decided to revalue assets and liabilities as under:
(i) Land and Building be appreciated by t2,40,000 and Machinery be depreciated by
l\Vo.
(ii) 50% of lnvestments wereuken over by the retiring partner at book value.
(iii)An old customer, Mohit whose account was written offas bad debt had promised to
pay 7,000 in settlement of his full debt of { I0,000.
(iu) Provision for Doubtful Debts was to be made at 5V< on debtors.
(u) Closing Stock will be valued at market price which is {1,00,000 less than the book
value.
(ui) Goodwill of the firm be valued at {5,60,000 and Madan's share of goodwill be
adiusted in the accounts of Leena and Naresh. Leena and Naresh decided ro share
(uture profits and losses in the ratio of 3 : 2.

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 (r,ii) t-he total capital of the new firm will be {32,00,000 which will be in the proporriorr
of the profit-sharing ratio of [.ccna and Naresh.
(lriii) funount due to Maclan was settled by accepting a Bill of Exchange in his favour
payable alter 4 nronths.
Prepare Revaluati()n Account, Partners' Capital ,{ccotrnts and after Madan's
retirement.
25. Vikau, Gagan and Momita were panners in a Iirm sharing profits in the ratio of2 : 2 : l.'fhe
firm closes its books on 3lst March ever) ycilr. On 30th Septernber, 2022 Momiu died.
Ac<rrrding to the provisions ol partnership deed, the legal representatives ofa deceased
partner are entitled for the followinS; in the evcnt ol his/her death:
(t) (lapital as per the last llalance Sheet.
(ii) Intelest on c;rpital at 67, p.a. till the datc ofher <leath.
(tii) Her share of profit to the date of death calculaterl on the basis ofaverage profits of
last four years.
(rr) Her shar-e o{ gtxrdwill to be determined on the basis ol-three years'purchase ofthe
avcrage protits of last ltrur years. 'fhe profits ol'last lour years were:
Year h'()fit (()
2018-2019 30,000
2019-2020 50.000
2020-202t .r(),()00
2021-2022 60,000
'l-he balarrce in Momita's capital account on 3l-l)-2022 was (60,000 and she had
u'ithdrawn ? 10,00() till thc date ofhcr death. lntercst ()n her drau'ings were ?:100.
I'rcpare Momita's capital account to be presented to lrer executors.
26. Vrgadatra l-td. (pharmaceutical company) appointed marketing expert, Mr. Kanikay as
thc CE() of the companv, with a target to penetrate their roots in the rural regions. Mr.
kartikay discusscd the ways and means to achieve target of the company with hnancial,
production and marketing departmcntal heads and asked the finance manager to
prepare the budgct. After reviewing the suggestions given by all the departmental
hcads, thc [inance manager proposed requirement ol an additional trrnd of ?52,50,000.
Yogadatra l.td. is a eero-dcbt company. 'lb avail the benelits of financial leverage, the
finance rnanager proposed to include debt in tlre capital stru< ture. Alier deliberatbus,
on April 1st,2020, the board ofdircctors had decicled to issue 67 Dcbentures of{100
each to the public at a premiunr of 5%, redeemable alier 5 years at ( I l0 per share.
You are required to answcr tlre folkrwing qtrestions:
(i) (lalculate the number o['deberrtrrrcs to lre issued to raisc additional funds.
(ii) PassJorrrnal cntry f(n the allotment ol debentures.
(rii) PassJournal entry to write off krss on issuc ofdebentures.
(ir,) Calculatc the arn()unt o[ annual Iixed obligation associatcd with debentures.
(r,) Prepare Loss on Issue of Debentures Account.
PARI-B
(Analysis of Financial Statenents)
27. Il),000,6% Debcntrrres issued on lst April,2021 ancl redeemable on 3lst March,2026
will be shown un<lcr:
(ri) l.ong-tcrm Borrowings (r) ()ther l,ong-term l,iabilities
(r ) (lurrent l-iabilitics (d) ()thcr Current I-iabilities
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I52 Accountancy-Xll
,ho,
 OR
Which one of the following is correct?
(i) Liquid assets are those assets which are either in the form ofcash or cash equivalents
or ian be conuerted into cash within a very short period without a loss of value.
(ii) Inventory Turnover Ratio establishes relationship between the cost ofSoods sold
during a given period and the average inventory carried during that Period'
(iii) Debt to Equity Ratio is also known as Debt Servicc Ratio.
(irr) 'trade Receivable TUrnover Ratio =
Net (lredit Rcvcnue from ()pe rations, i.e., Net Crcdit Sales
Average'I'rade Receivables
Options:
(c) t)nly (i) and (ii) (D) Only (ii) and (iii)
(c) Only (i) and (ir) (d) Only (i), (ii) and (iu)
28. Ifthere are opening inventory {60,000, closing invent<>ry {30,000, cost ofrevenue from
operations {3,60,000, then inventory turnover ratio will be:
(a) 2 times (D) 6 times
(r) 4 times (l) 8 times
29. Following information is relatcd to Macho Ltd.:
Dr. Plant and MachinerY Account Cr
Particulars ( ?) Particulars ( r)
Ttr Balance b/d (i) lJ.i( ),(xx ) By Depreciation A,/c (iii) 50,000
To (lash A,,/c (Purchase) (ii) 2.(i0,(xx) By Cash A,./c (Sale) (iu) 40,000
By l-oss on Sale (tf 20,000
Machiner,y (u)
By Balance dd (rti) 10.(n),000
I I,10,0(x) 11,t0,000

Which of the items will be added back to Net profit before tax and extraordinary items
while preparing Cash Flow Statement?
(a\ (ii), (iv) (D) (,,,)' (,r)
(r) (,,,), (rD kt) (i), (a)' (tti)
OR
Paid 10,00,000 to acquire shares in MKH I-td. and received a dividend of
? { 50'000
after acquisition. These transactions will result in
(a) Cash used in investing activities ( 10,00,000
(6) Cash generated fiom financing activities ? 10,50,000
(c) Cash used in investing activities {9,50,000
(d) Cash generated from hnancing activities (9,50,000
50. Balance Sheet (an Extract)
Equity ard Liabilities 3l st March, 3l st March,2022
2021
lo'l I)ebcllnrrcs .1,00,(xx) 3,20,000

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 Additional Iaformation:
lnterest on debentures is paid on half yearly basis on 30th September and 3lst March
each year
Debentures were redeemed on 30th Septembex 2021.
How much amount (related to above information) will be shown in Financing Activity
for Cash Flow Statement prepared on 3lst March, 2022?
(a) Outflow ?1,16,000 (D) Inflow {80,000
(c) Outflow t I,20,000 (d) Outflow ?3,20,000
31. Under which major headings and sub-headings will the following items be shown in the
Balance Sheet ofa company as per Schedule III Part I ofthe Companies Act,20l3:
(i) Balance ofthe Statement ofProht and Loss
(ii) Loan of t 1,00,000 payable after three years
(iii) Short-term deposits payable on demand
(iu) Loose tools (u) Trademarks
(r.,r ) Land
32. Explain the purpose ofcalculating 'Turnover Ratios'. Name important 'Turnver Ratios'.
Calculate Current Ratio of a company from the following information:
lnventory Turnover Ratio: 4 times
lnventory in the end was ?20,000 more than inventory in the beginning.
Revenue from operations t3,00,000
(iross Profit Ratio 25Vc
Current l-iabilities 140,000
Quick Ratio 0.75 : I
OR
'I he Current Ratio of a company is 2.1 : 1.2. State with reasons which of the following
transactions will increase, decrease or not change the ratio:
(i) Redeemed 9% debentures of { 1,00,000 at a premium of l0%.
(ii) Received from debtors { 17,000.
(iii) Issued (2,00,000 equity shares to the vendors of machinery.
(ir,) Accepted bills ofexchange drawn by the creditors {7,000.
34. Cash flow from the operating activities of Pinnacle Ltd. for the year ended 3lst March,
2019 was (28,000.'l'he Balance Sheet along with notes to accounts ofPinnacle [td. as at
3lsr March. 2019 is given bclow:
Pinnacle Ltd.
Balance Shect
as al I I st March, 20 I 9 and 2018

Particulars Note 3lst March, 3lst March,

No. 20t9 (?| 2018 ( ?)
I - EQUITY AND LIABILITIES:
l. Shareholders Funds
1a ) Shalc
(iapiral 9,00,000 5,00,000
(l) R<'sct ves arr<l Srrrplus 90,000 l,10,000

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I54 Accountancy-Xll
 2. Non-CurrentLiabiliries
(.r ) l,()ng-tclrn Borrrwings 3,00.(x)0 2,00,(xx)
3. Current Liabilities
(a) I-tade ['alirblts t]o,0(x) u0.{r00
Total t:i,50,ooo tt.90.0(x )
II - ASSETS:
l. Noo.Current Assets
(a) Fixed Assets
(i)'l algible dssets l i.{(i.(n,o 5,24,000
(ii) I lltangiblc Assets -l 3().(xx) 76,000
2. Current Assets
kr) (irrrent Irlvestnrtnls I,:10,(xx) 20,000
(r) lDventorirs 2,00.(xx) I,30,000
(.) (:ash an(l Oash lllrrivalents 2,38,(XX) l,40,000
Toaal 13,50,0{x) u.90.0(x)
Notes to Accounts:
Notc Pa.ticul..s S lst Marh, 3lst March,
No. 2019 (r) 2018 (?)
l. Reserves and Surplusl
(Balancc in Stalenrent ()l l'r'ofit and l-oss) 90,(xx) I,t0,(xx)
Long.lerm Borrowings:
tIZ Dcbcntures 3.00,000 2,00,000
3. Thngible Assets:
I)lanr and Machirrery 8,86,000 6,04,000
Accurnrrlatcd I)( preciati()n ( r,40,000) (80,000)
7..1(;.(xx) r-r,2{.(X X )

.1 Intangible Assets:
( ixrrlwill 3{i.{x)o 7(i.(xx)

You are given the following additional information:

(i) A machinery of the book value o['{ 90,000 (depreciation provided thereon was
? 23,000), was sold at a profit of ? 12,000.
(ii) 97r debentures were issued on lst April,20l8.
Prepare the Cash Fkrw Statement.
lll
Answers
l. (r) None ofthese
2. (r) Assertion (A) is truc but Reason (R) is false
3. (d) {4 per share
OR
(D) Zero Ooupon Rate fr€bentures

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 4. (a) Dr. Javed's Capital A"rc ? 18,750
OR
(
(a) I,00,000
5. (c)7:6:2
6. (r) in the year ofissue ofdebentures
7. (a) {200
8. (d) New share = Gaining ratio - Old ratio
OR
(6) Interest on Loan by Partners
9. (6) Revaluation A"rc by { 18,000
10. (d) (6,000
ll. (a) Net loss transferred to Lalan's Current A"lc ?1,800, Balan's Current A"/c ?3,6(X)
12. (a) Incorporation Costs Account
13. (a) I,20,000 shares
14. (a) Kiran t64,000; Muskaan {32,000
15. (c) Z
OR
(D) Interest on Drawings
16. (a)
17. Dr. As Capital ly'c ( 2,03,000, Cr. B's, C's and D's capitals ?77,000, ?77,000, {49,000
18. Interest on Capitals: Brij (80,000, Nandan t1,20,000
19. Debit Malti Current Ay'c (200, tuti Current .4y'c t200 Credit Paro Current A,./c { 400.
OR
No. ofshares 16,000
20. Goodwill { I,80,000
21. Share Capital t 2,79,000

23. Transferred to Capital Reserve ?2.400

OR
(i) Capital Reserve (90, (ii) Capital Reserve ?400.
24. Profit on Revaluation (2,000, Capital A,tcs: Charu {36,000, Harsha t24,000, Vathali
?20,000.
OR
Prolit on Revaluation ?70,000, B/P of Madan ?8,51,429, Capital ly'cs Leena
( 19,20,000, Naresh ? 12,80,000.
25. Momita executor's Ay'c ?83,000.
26. (i) No.ofDebentures Issued 50,000.
(ii) Loss on Issue of Debentures t5,00,000.
(iu) (3,00,000.

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r56 Accountancy-Xll
 27. (a) Long-term Borrowings
OR
(d) Only (r), (r,) and (iu)
28. (l) 8 times
29. (c) (iii), (u)
OR
(c) Cash used in investing activities 19,50,000
30. (a) Outflow t 1,16,000.
33. Current Ratio: 2.4 : I
34. Cash used in lnvesting Activities {2,93,000.
Cash Flow from Financing Activities (4,73,000
ttt

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 , SAMPLE PAPER
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Time Allowed: 3 hours Max. Marks: 80
General Instructions': \olc rt.: OllSIi Sunplt Qtu'slio lhlcr-2022-2) 1l:n.:olt'tl1

PART-A
(Accounting for Partnership Firms and Companies)
l. X, Y and Z are partners sharing profit in 5:4: I ratio. Z is guaranteed of minimum
profit of{80,000. His share of deficiency will be borne by X and Y in 3 : 2 ratio. Firm
had proht of {5,60,000 during the year 2021. The deficiency borne by Y will be:
(a) t9,600 (D) t 14,400
(r) {24,000 (d) None ol'these
2. Read the following statements-Asserti<>n (A) and Reason (R). Choose one ofthe correct
alternatives given bekrw:
Assertion (A): Authorised Capital or Nominal Capital relcrs such capital as is authorised
by the Memorandum ofa company to be the maximum amount ofshare
capital of the company.
Reason (R): Authorised Oapital is the amount stated in the capital clause of the
Memorandum of Association of a Oompany with which the company
is registered and is entitled to issue shares of that much amount and
number
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
ofAsserti<>n (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A)
(r) Assertion (A) is true but Reason (R) is lalse
(d) Assertion (A) is false but Reason (R) is truc
3. 'I'he am()unt ofdiscount on re-issue ofsharcs cann()t exceed:
(a) l07c of the capital re-issued (b\ 5'ft of paid up capital
(r) The amount received on forfeited shares (d) None ofthese
OR
Which of the following is incorrect about debentures?
(i) Discount or l,oss on Issuc ofDebentures, both are capital loss for the c<.rmpany.
(ii) Loss on Issue of f)ebentures can be written off liom:
Premium Reserve [Sec. 52 (2)]
- Securities
Statement of Profit and Loss
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r58 Accountancy-Xll
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 (iii) In case balance in Statement of Profit and l,oss is not sufficient to write off the total
amount of discount or loss, on issue of debentures, it is written off from Statement
of Proht and Loss, to the extent ofbalance available in Securities Premium Reserve
and then the remaining balance is written offfrom Securities Premium Reserve.
(a) only (ii) (l) only (iii)
(c) Both (i) and (iii) (d) All (,), (ii) and (iii)
4. L and T are partners sharing profits in the ratio 8 : 3. With effect from lst April, 2021,
they agreed to share future profits equally. Partners'gain and sacrifice are:
(a) L sacrifices and T gains by 5/22 share
(b) L sacrifices and T gains by 8/l I share
(c) T gains and L sacrifices by 5/22 share
(d) no gain, no sacrifice
OR
Amit and Rohit are partners sharing profit in the ratio of l:2. Kaveri was the manager
who received the salary of {12,000 p.m. in addition to commission of l0% on net profit
after charging such commission. Total remuneration to Kaveri amounted to (2,04,000.
Profit for tIe year before charging salary and commission was:
(a) ?8,20,000 (r) <7,80,000
(r) ?6,60,000 (d) ?8,04,000
5. Sarvesh, Sriniketan and Srinivas are partners in the ratio of5:3: 2. IISriniketan's share
of profit at the end of the year amounted to t t,50,000, what will be Sarvesh's share of
profits?
(a) {5,00,000 (r) { t,50,000
(c) (3,00,000 (d) ?2,50,000
6. l27o Debentures were issued at a discount of l0% to a vendor of machinery for payment
of ?9,00,000.
Date Particulars L.F. Dr. ( l) Cr. ( ()
Vendor A,/c Dr: x
Discount on Issue of Debentures AJc Dr.

To l2% Debentures A'/c 7.

Here X, Y and Z arel

(a) t t,00,000, ?9,00,000, { 10,00,000 respectively
(r) {9,00,000, t I,00,000, ? 10,00,000 respectively
(c) ( 10,00,000, ?9,00,000, t1,00,000 respectively
(d) t I,00,000, ?8,00,000, {9,00,000 respectively
7. P and Q are partners sharing profits in 3 : 2 ratio, having fixed capitals (4,00,000 and
<2,00,000 respectively. Interest on capital is to be provided @89o p.a. Firm had a profit
of {30,000 in the year 2017. As per Partnership deed, interest on capital is charge on
profits. The amount of interest on capital will be:
(a) Pt32,000; Qt16,000 (D) P {20,000; Qt10,000
(r) P ?31,200; Q ?20,800 (d) None ofthese

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I Sample Papers 159 .N
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 8. Some of the items that need to be deducted from the grand total of sums due to the
deceased partner's legal heirs inclrrde:
(i) drawings made by the deceased partner
(ii) interest on drawings, ifprovided in the partnership deed
(iii) share oflosses upon revaluation ofassets and liabilities
(ir) share in the balance of Profit and Loss Account appearing on the liabilities side of
Balance Sheet.
(u) Advance or loan granted by him to the firm, ifany.
(a) (,), (,,), (,,,), k,) (D) (,), (,,,), (tu), (rD
(c) (i), (,,), (ii,) (rJ) (t), (,t), (ir,)
OR
Which of the following items is included in the Profit an Loss Appropriation Account
ofa partnership firm?
(a) Inrerest on Capital (b) Salaries or Commission to Partner
(c) Interest on Drawings (d) All ofthe above
Read thc follouing hypothctical $tuatitn, annoer questioa no. 9 and 10.
Three friends Sumedha, Aryan and victor were in partnership sharing profis and
losses in the proportion of 4:3:2 to carry on a business of promoting handmade fabrics
produced in diflerent parts of India. Sumedha operated from Delhi to supply the
handmade fabrics prtxured by Aryan from north India and by Victor from south India.
These handmade fabrics were supplied not only to the different parts ofthe country but
exported to other parts of the world as well.
After successful running oftheir business for 3 years, Victor shared a proposal to expand
the business. It was decided among the partners that they will admit a new partner
Samson in the firm as they required additional capital to expand the business w.e.f. lst
April, 2022.
There was a claim on account of Workmen (irmpensation is estimatcd at t90,000. In
the Balance Sheet, Workmen Compensation Reserve stands at I 1,E0,000
Date Particulars L.F. Dr. ({) Cr. (?)
Workmen Compensation Reservc A,/c Dr I.tto.00{)
Al)r: I To I'rovision lbr Workmen Compensarion Claim -Ay'c
'fo Sumedha's (lapital Ay'c
To Aryan's (lapital A,/c
'lb Victor's (lapital A,/c

tBeing surpltrs oIrrorkmen compensation reserve

transGrred to Partners' Capital Accounts in their old
profit-sharing ratio)
9, Sumedha's Capital A,./c will be credited by
(a) ?45,000 (r) ?40,000
(c) (80,000 (.1) {tt5,000
10. Victor's Capital A,,/c will be credited by:
(a) ?40,000 (6) t45,000
(c) t20,000 (d) {30,000
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,, 160 Accountancy Xll
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 ll. In case of insuflicient prohts (Net profit is less than the interest on capital and panners
salary), amount of profit is distributed in:
(a) profit-sharing ratio (6) ratio ofinterest on capital
(c) equal ratio (d) None ofthese
12. What will be the correct sequence ofevents?
(i) Receipt of allotment money
(ii) Amount transferred to share forfeited A,,/c
(iii) Non-payment of share second call
(iu) Pro-rata allotment of shares
Options:
(a) (iu), (iii), (ii), (r) (A) (,u), (,), (,,,), (,,)
(r) (i), (ii), (iii), (iu) (tl) (irl, (i), (iil, (iii)
13. On an equity share of{ 10, the company has called-up ?9, but the actualamount received
is ?8 only, the difference of ?l will be debited to;
(a) Calls-in-Advance Account (D) Calls-in-Arears Account
(r) Share Forfeited Account (d) Share Capital Account
14. Tisha, Mehr and Nyra are partners sharing profit in 5 : 4 : I ratio. Nyra is guaranteed
of minimum profit of{80,000. Her share ofdeficiency will be borne by Tisha and Mehr
in 3 : 2 ratio. Firm had profit of(5,60,000 during the year 2021.'Ihe deficiency borne
by Mehr will be:
(a) t9,600 (r) t 14,400
(r) ?24,000 (d) None ofthese
15. Suman and Sudha were partners in a firm sharing profits equally. Their fixed capitals
were (50,000 and 125,000 respectively. The partnership deed provided interest on
capital at the rate of l27o per annum. For the year ended 3lst March 2021, the prohts
of the firm were distributed without providing interest on capital.
To rectify the error, _ A,/c will be debited:
(a) Sudha's Capital (6) Sudha's Current
(c) Suman's Capital (d) Suman's Current
OR
What share of profits would a "Sleeping Partner" who has contributed more than 5l7c
of the total capitals, get in the absence ofa deed?
(a) 807c ofthe total profit (b) l/8th ofthe total profit
(c) equal share (d) as per his demand
16. Realisation expenses of ( 15,000 were paid by Iirm on behalf of Vikas, a partner. Which
of the followingjournal entry will be passed?
(a) Realisation A,/c Dr. t 15,000
To CasVBank A,/c t 15,000
(D) Realisation Iy'c Dr. t15,000
-Iio (
Vikas's Capital Ay'c 15,000
(c) Vikas's Capital A,/c Dr. { 15,000
To CasVBank A,/c ( 15,000
(d) None ofthese
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Sample Papers I6I .\
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 17. A, B and C are partners sharing pr(rfits and krsses in the ratio of 2 : 3 : l. B retires and
sells his share ofprofit to A and (l frrl ttl,l00, being purchased by A lor (3,600 and by
C lbr {4,500. 'l-he profit for the ycar after I}'s retirement was { 10,500.
You are required to give necessary.j()urnal entries to record the sale of B's share to A and
C and distribrrtion of profit among partners.
18. t'and Q were partners in a lirm sharing profits in the ratio of5 : 3. On lst April,20l4
they admitted R as a new partner f'orl/8th share in the profits with a guaranteed profit
of?75,000. 'l'he new profit sharing ratio between P and Q will remain the same but they
agreed to bear any deficiency on account ()f guarantee to R in the ratio 3 : 2. The profit
ofthe firm f-r>r the year ended 3l st March. 2015 was t4,00,000.
Prepare Profit and l.t.rss Appropriarion ,A.ccount o[ B Q and R lbr the year ended 3lst
March, 2015.
OR
A, B and C were partners. Their capitals were 130,000, {20,000and { 10,000 respectively.
According to the partnership deed, the,v were entitled to an interest on capital @ 5%
p.a. ln addition, B was also cntitlecl to draw a salary of{500 per month. C was entitled
to a commission of 5% on the profits after charging the interest on capital, but before
-I'he
charging the salary payable to B. net profits for the year were ?30,000, distributed
in the ratio of their capitals without providing f<rr any of the above adjustments. The
profits uere to be shared in the ratio ol'2:2:1. Pass the necessary ad.iustment entry
showing the workings clearly.
19. 'Sangarn Woollens l,td.', t,udhiana, are the manulacturers and exporters of woollen
garments. The company decided to distribute flree of cost woollen garments to l0
villages of t,ahaul and Spiti District of Himachal Pradesh. The comPany also decided
to employ 50 young persons from these villages in its newly established factory. The
company issued 40,000 equity shares of ( l0 each and t,000, 9% debentures of { 100
each to the vcndors lbr the purchase of machinery of (5,00,000.
Pass necessarl Journal Entries.
OR
X Ltd. company issued 30,000 fully paid-up Equity Shares of? l00each for the purchase
of the lollowing assets and liabilitics from Zen Brothers:
Machinery { 7,00,000 Stock-injlrade ? 9,00,000
Land and Building t 12,00,000 Sundry Creditors t 2,00,000

You are required t() pass necessary -lournal enries.

20. on I st April, 2019 an existing firrn had assets of {75,000 including cash of {5,000. The
partners' capital accorrnts showed a balance of(60,000 and reserves constituted the rest,
lf the normal rate of return is 20% and the goodwill ofthe hrm is valued at 124,000 at
4 years' purchase ofsuper profits, find the average profits of the firm.
21. Eve Ltd. issued 50,000 shares of{ 100 each at a premium of{5 per share payable at the
time of the alk)tment. A.ll the amounts due were received on the due dates except the
second and final call of {30 per share on 2,500 shares issued to Neel. His shares were
tirrfeited. -I-hese shares were subsequently reissued for {50,000 as fully paid-up.
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I62 Accountancy-Xll
tu,
 1'he company has also issued 20,000,8% Debentures of{100 each at a discount o[
l07c and redeemable at a premium of {5 per share. Applications were received for
25,000 debentures. 'l'he accountant of the company is required to answer the firllowing
questions:
(i) What is meant by'forfeiture ofshares'. When does gain on forfeited share arise and
when is it transferred to Capital Reserve?
(iJ) What amount will be debited to Securities Premium Reserve Accr>unt at the time ol'
forfeiture ofshares?
(iii)
Is the company correct in re-issuing the shares?
(ru) What will be the total amount ofkrss on the issue of8% debentures?
(u) How will the company write offthe loss on the issue of debentures?
22, Ankit, Bobby and Kartik werc partners in a hrm sharing profits in the ratio 4 : 3 : 3.
The firm was dissolved on 3l st March, 2018. Pass the necessary Journal entries fbr the
following transactions after various assets (other than cash and bank) and third party
liabilities had been ranslerred to Realisation Account :
(i) The firm had st<rk of {t10,000. Ankit took over 50% ofthe stock at a discount of20%
while the remaining stock was sold offat a profit of30% on cost.
(ii) A liabilitv under a suit for damages included in creditors was settled at ( 32,000 as
against only t 13,000 provided in the books. Total creditors of the firm were
t 50,000.
(iii) Bobby's sister's loan of( 20,000 was paid offalong with interest of ? 2,000.
(tD Kartik's Loan ofl 12,000 was settled at ( 12,500.
23. EF Ltd. invited applications for issuing 80,000 equity shares <>f { 50 each at a premium
of2070. 'I'he amount was payable as follows:
On Application : { 20 per share (including premium { 5)
On Alkrtment: { l5 per share (including premiurn ? 5)
On First Call : t l5 per share
On Second and Final call: Balance amount
Applications for 1,20,000 shares were received. Applications for 20,000 shares were
rejected and pro-rata allotment was made to the remaining applicants.
Seema, holding 4,000 shares failed to pay the alk)tment money. Afterwards the first call
was made. Seema paid allotment money along with the first call. Saha.j who had applied
tor 2,500 shares failed to pay the first call money. Sahaj's shares were forfeited and
subsequently reissued to Geeta for { 60 per share, {50 per share paid up. Final call was
not made.
Pass necessary .journal entries for the above ransactions in the books of EF l-td. by
opening calls-in-arrears account.
OR
'Luxury Cars Ltd.' invited applications for issuing 10,000 equity shares of {50 each at a
premium of{100 per share. The amount was payable as follows:
On applications - {75 per share (including {50 premium)
On allotment - The balance
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Sample Papers I63
 The issue was lully subscribed. A shareholder holding 400 shares paid his entire share
money at the time of application. Another shareholder holding 300 shares did not
pay the allotment money. His shares were forfcited. The forfeited shares were later on
reissued for (90 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books ofthe comPany.
24. Anil and Beena were partners in a firm sharing prohts in the ratio of4 : 3. On lst April,
2015 they admitted Chahat as a new partner for l/4th share in the profits ofthe firm. On
the date ofChahat's admission, the Balance Sheet ofAnil and Beena showed a General
Reserve of (70,000, a debit balance of t7,000 in the Profit and Loss Account and an
Investment F'luctuation Fund of ? 10,000.
The following was agreed upon, on Chahat's admission.
(a) Chahat will bring {80,000 as her capital and her share of goodwill premium of
l2l ,000 in cash.
'l
(D) he market value of investmenrs was { 17,000 less than the book value.
(r) New profit-sharing ratio was agreed at 2 : l: l.
Pass the necessary Journal entries for the above on Chahat's admission.
OR
X, Y and Z were partners in a firm sharing profits in the ratio of5 : 3 : 2. On 3l st March,
2015 rheir Balance Sheet was as follows:
Balance Sheet ofX, Y and Z
as at 3 I st March, 20I 5

Liabilities (r) Assets (r)

Creditors 2l,000 Land and Building 62,000
I nvestment Fluctuation Rescrve r0,000 Motor vans 20,000
Profit and Loss A/c 40,000 lnvestments t9,000
Capitals: Machinery 12,000

x 50,000 Stock 15,000

Y 40,000 Dcbtors 40,000

z 20.000 I,10,000 LrsJ. Provision 3.000 37,000

Cash 16,000

Jegql I,81,000

On the above date, Y retired and X and Z agreed to continue the business on the
following terms:
(i) Goodwill ofthe firm was valued at {51,000.
(ii) 1'here was a claim of ?4,000 for Workmen's Compensation.
(iii) Provision for bad debu was to be reduced by { I ,000.
(iu) Y will be paid ?8,200 in cash and the balance will be transfemed in his loan account
which will be paid in four equal yearly instalmens together with interest @ l07o p.a.

'rll
I64 Accountancy-Xll
 (u) The new prolit sharing ratio between X and Z will be 3:2 and their capitals will be
in their new profit sharing ratio.'l-he capital adjustments will be done by opening
current accounts.
Prepare Revaluation Account, Partners' Capital Accounts.
25. Jag, Pravesh and Chander are pannen in a firm sharing profits in the ratioof5:3:2 respectively.
Firm closes its accounts on 3l st March every year. Jag died on 30th September, 2017 .
There was a balance o147,000 in Jag's Capital Account in the beginning of the year At
the event ofdeath ofany partner, the Partnership Deed provides for the following:
(i) Interest on capital will be calculated at the rate of 12% p.a.
(ii) The deceased partner's representative will be paid 16,000 for his share ofgoodwill.
(idi) His share of Reserve Fund which is ?50,000, shall be paid to his executor.
(iu) His share of profit till the date of death will be calculated on the basis o[ sales. lt
is also specified that the sales during the year 2016-17 were ( 10,00,000. 'l'he sales
from I st April, 2017 to 30th September, 201 7 were ? 2,00,000. The profit of the firm
for the year ending 3lst March, 2017 was { 1,00,000
Pravesh and Chander decided to share future profis in equal ratio after the retirement
ofJag.
26. On lst April, 2017 Bhawani Ltd. issued 5,000, l0% Debentures of t 100 each at a
discount of 107o, redeemable at 57c premium after 5 years. On the same date, Bhawani
Ltd. completed the following transactions also:
(i) It purchased business ofSwami Ltd. by taking over sundry assets of{ 4,50,000 and
sundry liabilities of ( 70,000 for the purchase consideradon of t 4,80,000. It paid
the purchase consideration by issuing l07o Debentures at 4% discount.
(ii) Bhawani Ltd. borrowed a loan of ? 80,000 from SBI for 5 years and issued l0%
Debentures of{ 1,00,000 to Bank as a collateral security.
The interest on debentures is paid halfyearly on 30th September and 3lst March every
year. You are required to pass thejournal entries in the books of Bhawani Ltd. to record
the above transactions for the year ended 3l st March, 2018 assuming that the company
has sufficient balance in its Securities Premium Reserve Account at the year end and it
has decided to write off loss on issue of debentures from Securities Premium Reserve
Account.

PART-B
(Analysis of Financial Statements)
27. Proposed Dividend ofa current year is a:
(a) Contingent Liability (D) Surplus
(r) Non-current Liability (d) Long-term Loan
OR
Which ofthe following ratios are included in traditional classification ofActivity Ratios?
(i) Interest Coverage Ratio
1ii) Inventory Turnover Ratio
(iii) Trade Receivables Tirrnover Ratio

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Sample Papers I65 '\
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 (iu) Debt to Equity Ratio
(r,) Working Capital Tirrnover Ratio
(ui) Operating Ratio
(v)
(a) All (t), (ii), (iii), (ir) and (D) Only (,), (iu\ and (ai\
(r) only (ii), (iii) and @) (d) only (ii), (iii), (u) and (ui)
28, Ifthere is revenue from operations ? 1,20,000 and gross profit is 20% of c<.rst, then the
amount of gross proht will be:
(a) t20,000 (r) T50,000
(c) ?40,000 (d) t60,000
29. An example ofcash flow from investing activities is:
(a) Issue ofdebentures
(D) Repayment of long-term borrowings
(c) Purchase ofraw materials for cash
(d) Sale of investment by non-financial enterprise
OR
Patent purchased and completely amortised in the year of purchase is added under
and shown as Outflow under
(a) Operating activities, lnvesting activities
(D) Operating activities, financing activities
(c) Investing activities, financing acrivities
1/) Investing activities, Operating activities
30. From the following information lbr the year ended 3lst March, 2022, calculate Net
Proht before Thx and Extraordinary Activities:
Particulars (?)
Surplus, i.e., Balance in Statement of Profit and l,oss (Opening) 3,00,000
Surplus, i.e., Balance in Statement of Profit and l,oss (Closing) 5,00,000
Proposed Dividend lbr the year ended 3lst March,2022 3,00,000
Proposed Dividend lbr the year ended ll lst March, 2O2l 2,00,000
Transler to General Resene I,00,000
Provision for TIx made during the (iurrent Year I,00,000
(a) ?5,00,000 (r) {5,00,000
(r) ?6,00,000 (d) <4,00,000
31. Name the major heads under which the following items will be presented in the Balance
lIl
Sheet ofa company as per Schedule ofCompanies Act, 2013:
(i) Provision for Employee Beneht (ii) Unpaid Dividend
(iii)Interest on (lalls-in-Advance (iu) Patents
(u) Short-term l,oans (r,r) Trade payables
32. Explain the purpose of calculating 'Solvency Ratios'. Name important solvency Ratios.
From the following details obtained fiom the financial statements ofJeev Ltd., Calculate
interest coverage ratio:
'rllI
r66 Accountancy-Xll
 Net Profit after tax { 1,20,000
l27o Long-term Debt <20,00,000
Thx Rate 407o.
OR
Assuming that the Debt-equity ratio is 2. State giving reasons whether this ratio would
increase, decrease or remain unchanged in the following cases:
(a) Purchase offixed asset on a credit ol2 months.
(6) Purchase offixed asset on a long term deferred payment basis.
(r) Issue ofnew shares for cash.
(rJ) Issue ofbonus shares.
(z) Sale offixed asset at a loss of( 3,000.
34. Read the following hypothetical text and answer the given questions on the basis ofthe
same:
Krishika an alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The
profit of Krishika Ltd- in the year 2019-20 after all appropriations was (31,25,000. This
proht was arrived after taking into consideration the following items:
S. No, Particulars Amount
(t)
I (lain on sale offixed tangible asscts 12,50,000
2 Goodwill written oll' 7,IJ0,000
-lransfer to Ceneral Reserve tt,75,000
3
4 Provision ftrr taxation 4,37,500
Additional Information:
Particulars 3l st March, 3lsr March,
2020 (?) 2019 ( ?)
Prepaid !ixpenscs 7,50,000 5,00,000

lnvent()rt 10,50.000 n,20,000

'Ii ade Payables 4,50,000 3,50,000
'lrade Receivables 6,20,000 r'r,90,000

(i) What is meant by cash flow from operating activities?

(ii) What will be the Net Profit befirre tax of Krishika Ltd. I'or the year ended on 3lst
march,2020?
(ili) Calculate operating profit before working capital changes of the comPany.
(irr) Calculate cash from operating activities before tax ofthe company.
(u) What will be Cash Flows from operating activities of the company?
(rri) When and why is 'receipt ofdividend' classified under operating activides?

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Sample Papers I67

 Answels
I (a) t9,600
2 (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
ofAssertion (A).
3 (c) The amount received on forfeited shares.
OR
(b) Only (idi)
4. (a) L sacrifices and T gains by 5/22 share
OR
(d) 18,04,000
5. (d) 42,50,000
6. (r) 19,00,000, { 1,00,000, { 10,00,000 respectively
OR
(a) P 132,000; Q a16,000
8. (c) (,), (,,), (fi)
OR
(/) All of the above
9. (r) ?40,000
10. (c) t20,000
ll. (D) ratio of interest on capital
12. (r) (,u), (,), (,,,), (,,)
13. (D) Calls-in-Arears Account
14. (a) ?9,600
15. (b) Sudha's Current
OR
(c) Equal share
16. (c) Vikas's Capital A,/c Dr. { 15,000
To Cash,/Bank Ay'c < 15,000
I tt. New Ratio 35 : 2l :8
OR
Debit As Capital A/c { 5,640, Credit B's Capital Ay'c { 4,860, C's Capitat {780.
t9. OR Goodwill ?40,000.
20. Average Profit ?21,000.
23. Capital Reserve ?50,000.
OR
Amount received on allotment t6,97,500; Capital Reserve (7,500.
24. (OR) Loss on Revaluation (3,000, Capital X (52,760, Z ?87,600, Y's loan ?61,200.
25. Jag Executor's Ay'c t 1,25,820.

'tllI
r68 Accountancy-Xll
 27. (a) Contingent Liability
OR
(r) Only (ii), (iii) and (u)
28. (a) t20,000
29. (d) Sale ofinvestment by non-financial enterprise
OR
(a) Operating ac(ivities, Investing activities
30. (c) t6,00,000
33. Interest coverage Ratio 1.833 Times
OR
(a) No change (D) Increase (c) Decrease (d) No change (r) increase
34. (ti) ? 44,37,500 (iit)?39,67,500, (iu) (35,57,500 (u) ( 31,20,000
n-n

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, SAMPLE PAPER
B
[UNSOLVED]

Time Allowed: 3 hours Max. Marks: 80

General Instructionst Srtrnc a: OllSIi Stnplt Quslion I\l*r-2O22-2) (Llnnltetl).

PARI-[
(Accounting for Partnership Firms and Companies)
l. A and B are partners in the ratio of 3:2. (l is admitted as a partner and he takes l/4th of
his share liom A. B gives 3/16 fiom his share to C. What is the share of C?
(a) tl4 (r) l/16
(r) l/6 (d) t/16
2. Read the following statements-Assertion (A) and Rcason (R). Ohoose rxre ofthe correct
alternatives given bekrw:
Assertion (A) : Remaining partners' capital accounts are debited fi)r the share of
gor-rdwill of the retiring partner in the gailring rurio.
Reason (R): Gaining ratio is calculated by deducting ncw profit-sharing ratio from
the okl profit-sharing ratio ofa partner
Alternatives:
(r) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of lssertion (A).
(6) Both Assertion (A) and Reason (R) are true and Reason (R) is n()t the correct
explanation of Assertion (A).
( ) Assertion (A) is true but Reason (R) is false.
(/) .Assertion (A) is false but Reason (R) is true.
3. Net Assets minus Capital Rescrrc is:
(a) Purchase consideration (6) Goodwill
(r) -Ibtal
assets (d) Liquid assets
4. Antrbhau Shagtrn and Pulkit arc partners in a firm sharing profits an<l losses in the ratit>
of2:2:1. On lst April 2021, they decided to change their profit-sharing ratio to 5;3:2.
On that date, debit balance o{'Profir & t-oss A,/c {30,000 appeared in the balance sheet
and partners tlecided to pass an ad.iusting entr),r for it.
Which ofthe rrndermentioned options reflect correct treatment for the ab<>ve treatrrrent?
(r) Anubhav's capital account will be debited bv t3,000 and Shagun's capital ac<ount
will be crcdited by {:},000
(ll) I\rlkit's capital a<corrnt will be credited by (3,1)00 and Shagun's capital accottnt will
t)e credited bv t 3,000

'l1lI
/r. I70 Accountancy-Xll
f ////r,,
 (c) Shagun's capital account will be debited by (30,000 and Anubhav's caPital account
will be credited by t30,000
(l) Shagun's capital account will be debited by {3,000 and Anubhav's and Pulkit's
capital account will be credited by (2,000 and { 1,000 respectively
OR
'lnterest on Capital' t6,000 was transferred to Arun, a Partner's Capital A,,/c:
Date Particulars L.F. Dr. ( ?) Cr. ( l)
\ l)r 6,(XX)

ToY 6,000

(Being interest on Capital providcd on partner's

Capital)

HereXandYdenote:
(a) Arun's Capital A,/c, Interest on Capital A,/c
(D) Arun's Current Ay'c, Interest on Capital A,/c
(c) Arun's Current A,/c, Profit and Loss Appropriation A,,/c

(d) Interest on Capital A*/c, Arun's Capital A,./c

5. X, Y and Z are partners sharing profits in 5:3:2. Z was provided a guarantee of
minimum profit o{ ? 10,000 per year. Profit lbr the year 2019 was t40,000. What amount
of profit Z will get?
(a) t8,000 (r) { 12,000
(c) t 10,000 (d) None ofthese
6. Aakriti l-td. issued 2,00,000,6% Debentures of{ 100 each at cerrain rate of premium and
to be redeemed at l0% premium. fu the time of writing offLoss on Issue ofDebentures,
Statement ofProfit and Loss was debited with {8,00,000. At what rate of premium, these
debentures were issued?
(a) to% (b) t6%
(c) 6Vo (d.) 47c
OR
Drishti Ltd. issued 40,000, l0% Debentures of? 100 each at certain rate of distount
and were to be redeemed at 207o premium. Existing balance of Securities Premium
before issuing ofthese debentures was ? 12,50,000 and after writing off Loss on Issue of
Debentures, the balance in Securities Premium was t 2,50,000. At what rate ofdiscount,
these debentures were issued?
(a) ll7c (b) 5Vc
(c) 257c (d) l57o
7. Crafts t,td. issued a prospectus inviting applications for 36,000 shares of (10 each
payable (3 on application, I 5 on allotment and balance on call. Public had applied for
certain number of shares and application money was received. Which of the following
application money, i[ received restricts the company to proceed with the allotment of
shares, as per SEBI guidelines?
(a) { 1,011,000 (D) ?1,35,000
(r) {90,000 (./) t97,200

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p $361p11-. P1pp1.; I7I

t
 8. Pakhi, Queen and Raavi are partn€rs in a firm with capital balances of( 1,00,000,
{ 1,40,000 and ? 1,60,000 respectively on 3lst March,2022. Pakhi decides to redre from
the lirm on 3l st March, 2022. With the help of the information provided, calculate the
amount to be paid to Pakhi on her retirement.
There existed a general reserve of{ 15,000 in the balance sheet on that date.
The goodwill of the firm was valued at ( 60,000.
Gain on revaluation was (48,000
(a) ? I,77,000 (D) (1,81,000
(c) ? 1,30,750 (d) t1,41,000
OR
BQ and S are partners. P's capital is ( 6,00,000 and Q's capital is (2,00,000. S has
not invested any amount as capital but he alone manages the whole business. S wants
{60,000 p.a. as salary, though the deed is silent. Firm earned a profit of {3,00,0fi). How
much will each partner receives as an appropriation of profix?
(a) P ? 1,20,000; Qt 1,20,000; S { 60,000
(D) P ? 90,000; Q { 30,000; S < 30,000
(c) P ? 40,000; Q { 40,000and S t 70,000
(d) P? 1,00,000;Ql l,00,000andS{ 1,00,000
Read thz following hy|othztical situation, arrsuer question no. 9 and 10,
Sandeep, Mandeep and Amandeep were partners in a firm sharing prohts in the ratio
of 2 :2 : l. The firm closes its books on 3lst March every year. On 30th September,
2022 Mandeep died. The partnership deed provided that on the death ofa panner his
executors will be entitled for the following:
(l) Balance in his capital account and interest @ l2% p.a. on capital. On I st April, 2022,
the balance in Mandeep's Capital Account was ? 1,00,000.
(2) His share in the profits ofthe firm in the year ofhis death which will be calculated
on the basis of rate of net profit on sales of the previous year which was 25%. The
sales ofthe firm till 30th September, 2022 were <9,00,000.
(3) His share in the goodwill ofthe firm. The goodwill ofthe firm on Mandeep's death
was valued at t 1,50,000.
The partnership deed also provided that the lbllowing deductions will be made from
the amount payable to the executor of the deceased partner:
(l) His drawings in the year of his death. Mandeep's drawings till30th September,2022
were ?4,000.
(2) Inrerest on drawings @,6% per annum which was calculated as ?120.
The accountant ofthe firm prepared Mandeep's Oapital Account to be presentd to the
executor of Mandeep as follows:
Date Particulars (r) Date Particulars (.)
2022
Scpt. 30 To Drawings A,/c 4,000 April I By Balance b/d t,00,000
Sept. 30 Tcr Interest on 120 Sept.:i0 By lnterest on CapitalAy'c 6,000
Drawings A,/c
Scpt.:i0 -tb Mandeep's Sept.:i0 By P anrl I- Srrspcnsc A,,/c

rlllE_
t72 Accountancy Xll
 Executor's A,/c Sept.:10 By Sandeep's Capital A,/c
Sept.30 By Amandeep's
Capital A,./c

9. The amount transferred to Mandeep's Capital Account through Profit and Loss
Suspense ,4y'c will be:
(a) ?65,000 (6) {92,000
(c) t90,000 (d) t62,000
10. Amount transferred to Mandeep's Executor's Iy'c will be:
(a) t2,50,680 (r) t 2,51,880
(r) ?2,a0,680 (d) t2,41,880
ll. In a partnership firm, partners having hxed capitals, when partners' drawings are
transferred to capital accounts, journal entry would be:
(a) Partners' Drawings Ay'c Dr.
To Partners' Current A./cs
(D) Partners' Drawings A,./c Dr.
To Partners' Capital Ay'cs

(c) Partners' Current.Ay'cs Dr.

To Partners' Drawings .Ay'c

(d) None of these

12. V.R Ltd. forfeited 8,000 equity shares of t 100 each, issued at a premium of l01o for
non-payment offirst and final call of{ 30 per share. The maximum amount ofdiscount
at which these shares can be reissued will be:
(a) ? 5,60,000 (r) ( 8,00,000
(c) t 3,20,000 (d) { 2,40,000
13. Subscribed capital is:
(a) That part ofauthorised capital which is issued to the public for subscription.
(b) That part ofissued capital which has been actually subscribed by the public.
(r) That part ofsubscribed capital which has been called up on the shares.
(d) That part ofsubscribed capital which has not yet been called up on the shares.
14. Sheetal and Raman share profits equally. They admit Chinki into partnership. Chinki
pays only ? 1,000 for premium out of his share of premium of t 1,800 for l/4th share of
profit. Goodwill Account appears in the books at {6,000. AII partners have decided that
goodwill should not appear in the books of the new firm.
For writing offexisting goodwill:
(a) Goodwill A,/c will be debited by t6,000
(6) Sheetal's Capital A,/c will be credited by {3,000
(c) Raman's Capital A,/c will be credited by ?3,000
(d) Goodwill A,/c will be credited by (6,000

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Sample Papers 173

N
 15. tl, F and (i are partners sharing prt.rfits in the ratio o[ 3:3:2. Accortling to the partnership
agreement, G is to get a minimum amount of (U0,000 as his share of profits every
year and any deficiency ()n this accoun( is to be personally borne by E. The net proht
for the year ended 3lst March, 2021 arnounted to (3,12,000. Calculate the amount of
dehciency t() be borne by l:?
(a) ( t,000 (D) ?4,000
(r) ?8,000 (d) <2,000
OR
P and Q were partners sharing profit and losses in the ratio of 2: l. Their capitals were
t 12,00,000 ancl <8,00,000 respectively.'l'hey were allowed interest on capital (46% p.a.
-I'heir drawings during the year
and interest ()n drawings was to be charged @10% p.a.
I
were P - { 2,40,000 and Q - I ,60,000. Q's share of net divisible profit as per Profit and
l-oss Appropriation Account amounted to t
1,60,000. Net Profit ofthe firm before any
appropriation was:
(a) t4,00,000 (6) <3,u0,000
(r) {5,60,000 (d) T 5,80,000
16. ldentify the correct sequence oforder of payment ofthe follou'ing, in case ofdissolution
of partnership hrm.
(i) to each partner proportionately what is due to him./her from the firm for advances
as distinguished from capital (i.e., partner's loan);
(ii) to each partner proportionately what is due to him on account ofcapital; and
(iii) for the debts of the firm to the third parties.
(r) (ii;)
(i), (ii), (D) (t,), (,), (,,,)
(c) (,t,), (rt), (,) (d) (iiil,Q),Ui)
17. Yash and Karan were partners in an interior designer firm. Their fixed capitals were
?6,00,000 and {4,00,000 respectively. There were credit balances in their current
accounts of{4,00,000 and {5,00,000 respectively. 'fhe firm had a balance of{ 1,00,000
in General Reserve. The firm did not have any liability. They admitted Radhika into
partnership f<rr l/4th share in the prohts of the firm. The average profits of the firm
fior the last five years were {5,00,000. Calculate tlre value of goodwill of the firm by
capitalisation of average profits method. The normal rate of return in the business is
t0%.
18. Jayant, Kartik and Leena were partners in a firm sharing profits and losses in the ratio
of 5:2:3. Kartik died and Jayant and l.eena decided to continue the business. Their
gaining ratio was 2: 3.
Calculate the new profit sharing ratio ofJayant and l-eena.
OR
A, B and C were partners in a firm sharing profit in the ratio of4:3:2. The profits ofthe
firm for the year ending on 3l st March,2018 was ? 1,20,000. B died on 30thJune, 2018.
Calculate B's share ofprofit till his death. Pass necessary journal entry also.
19. (larvit Ltd. invited applications for issuirrg 3,000, I l7c Debentures of { 100 each at a
discount of 6%. The full amount w:rs payable on application. Applications were received
frrr 3,600 debentures. Applications lor 600 debentures were rejected and the application
money was refunded. Debentures were allotted to the remaining applicants. Pass the
necessary journal entries flor the above transactions in the books ol'Garvit Ltd.

'rlll
t74 Accountancy Xll
f
 OR
Pass necessary.jou rnal entries in the books of(krpal Ltd.
(i) Purchased a running business from Aman Ltd. f<rr a sum of t 15,00,000. 'l-he
payment of ( 12,00,000 was made by issue of fully paid equity shares of ? l0 each
and balance by a bank draft. The assets and liabilities consisted of the ft.rllowing:
Plant ?3,50,000; Stock {4,50,000; I.and and Building t6,00,000; Sundry Creditors
< I ,00,000.
20. Manoj, Pradeep and Mohit are sharing profits and losses in the ratio of 5 : 3 : 2. 'fhey
decide to share future profits and losses in the ratio of2 : 3 : 5 with effect from lst April,
2019. They also decide to record the eflect ofthe folbwing accumulated profits, losses
and reserves without affecting their book figures by passing a single entry:
(t)
General Reserve 12,000
Pro{it and Loss Account (Cr.) 48,000
Adve rtisement Suspense Account 24,000
Pass the necessary single adjusting entry.
21. JCV Ltd. forfeited 200 shares of t l0 each issued at a premium of T2 per share lbr the
non-payment of allotment of ?3 per share (including premium). The first and final
call of {4 per share has not been made 1'et. 507o of forfeited shares were reissued at {8
per share fully paid-up. Pass necessary .journal entries for the firrfeiture and reissue of
shares.
22. C and D were partners in a firrn sharing profits in the ratio of3 : 2. On 28th February
2016 the firm was dissolved. After transferring assets (other than cash) and outsiders'
liabilities to realisation account, you are given the following information:
(a) A creditor for ?2,00,000 accepted building of (2,80,000 at {2,20,000 and paid the
hrm {20,000.
(D) A second creditor for {75,000 accepted furniture of?60,000 in full settlement of his
claim.
(r) A third creditor amounting to {80,000 accepted {20,000 in cash and investments of
the book value ot t65,000 in full settlement of his claim.
(/) [,oss on dissolution was ?7,500.
Pass necessaryjournal entries for the above transactions in the books ofthe firm assuming
that all payments were made by cheque.
23. AB Ltd. invited applications {br issuing 75,000 equity shares of{ 100 each at a premium
of ?30 per share. The amount was payable as follows:
On Applicatkrns and Allotment - {85 pcr share (including prernium)
On First and Final (lall - the balance Amount
Applications flor 1,27,500 shares were received. Applications for 27,500 shares were
rejected and shares were allotted on pro-rata basis to the remaining applicants. Excess
money received on application and allotment was adjusted towards sums due on first
-l-he
and final call. calls were rnade. A shareholder, who applied for 1,000 shares, failed
to pay the first and final call rnoney. His shares were forfleited. All the forfeited shares
were reissued at { [50 per share flully paid-up.
Pass necessary.journal entries for the above transactions in the books ofAB Ltd.

llll
Sample Papers I75 '\
N\\
 OR
Journalise the following transactions in the books of Poonam Ltd:
(i) 50 shares of {10 each issued at a premium of ?5 each payable with allotment
were forfeited for the non-payment of allotment money of t9 per share including
premium. The first and final call on these shares at {3 per share were not made. The
florfeited shares were reissued at { l2 per share as fully paid up.
(ii) 1,000 shares of ( l0 each issued at par were forfeited for the non-payment of the final
call of ?2 per share. These shares were reissued at (8 per share as fully paid up.
24. Sunaina and Tamanna are partners in a firm sharing profits and losses in the ratio of
3:2. Their Balance Sheet as at 3lst March, 2020 stood as follows:
Balance Sheet
Liabilities ( ?) Assets (<)
Capital Accounts Plant and Machinery r,20,000

Sunaina 60,000 Land and Building r,40,000

Thmanna 80.000 | .10.000 Debtors 1,90,000

Current Accounts Less; Provision for
Sunaina r0,000 Doubtful debts (40.000) I,50,000
Tamanna 30.000 40,000 Stock 40,000
General Reserve I,20,000 Cash 30,000

Workmen's C,ompensation Res€rve 50,000 Goodwill 20,000

Creditors I,50,000

:-r.(X).0(X) i),1]]lJllll
They agreed to admit Pranav into partnership for l/5th share of prohs on lst April,
2020, on the following terms:
(a) All Debtors are good.
(6) Value ofland and building to be increased to {1,80,000.
(r) Value of plant and machinery to be reduced by t20,000.
(d) The liability against Workmen's Compensation Fund is determined at t20,000
which is to be paid later in the year.
(e) Mr. Anil, to whom {40,000 we re payable (already included in above creditors), drew
a bill ofexchange for 3 months which was duly accepted.
(f Pranav to bring in capital of ( I ,00,000 and ( 10,000 as premium for goodwill in
cash. Journalise.
OR
Krish, Vrish and Peter are partners sharing profits in the ratio of3:2:1. Vrish retired
from the firm. On that date, the Balance Sheet oftlre firm was as follows:

'lll!
I76 Accountancy Xll
 Balance Sheet
as al J ln March,2020
Liabiliries (r) (t)
Creditors r5,000 Bank 7,600
General Reserve r2,000 Furniture 41,000
Bills Payable 12,000 Stock 9,000
Outstanding Salary 2,200 Premises 80,000
Provision for Legal Damages 6,000 Debtors (i.000
Capitals: I,essr Provision for
Doubrful DebB I Ot) 5,600
Klislr 46,000
V lish 30,000
I't tcr' 20,000
1.43.200 1.43,200

Additiotal Infonnttion :
(a) Premises to be appreciated by 20%, Stock to be depreciated by l0% and Provision
for Doubtful Debts was to be maintained @570 on Debtors. Further, provision for
legal damages is to be increased by ( I,200 and furniture to be brought up to
(45,000.
(D) Goodwill ofthe firm is valued at {42,000.
(c) t 26,000 from Vrish's Capital Account be transferred to his loan account and balance
to be paid through bank; if required, necessary loan may be obtained from bank.
(ri) New profit sharing ratio of Krish and Peter is decided to be 5: l.
Preparc Revaluation Account, Partners' Capital Accounts.
25. Naman and Aman are g<xrd friends and are interested in sports. However, they could
not de much in sports because sports goods were not available to them at reasonable
rates. Hence both of them decided to form a partnership firm to sell sports goods at
rates giving reasonable profits. Thev started the business on lst April, 2021 and their
capial contributions were: Naman -{50,000 and Aman - ?60,000. ()n lst January,
2022 Naman gave a loan of{ 10,000 and Aman introduced {20,000 as additional capital.
Profit before any interest for the year ending 3lst March, 2022 amounted to ( 15,200.
There is no Partnership Deed. Both Naman and Aman expected interest @1070 per
annum on the kran and additional capital advanced by them.
You are required to
(d) Prepare Profit and Loss Appropriation Account.
(ii) Calculate interest on Naman's loan.
(iii) How much amount will be transferred to Profit and Loss Appropriation Account?
(fu) Determine the profit-sharing ratio ofpartners.
(u) Calculate interest on Capital and additional capital provided by the partners.

'rl|'
Sample Papers n1 .\
NN,
 26. ()n lst April, 2015, K.K. Ltd. issued 500,97c Debcrrtures of ?500 each at a discount of
47, redeemable at a prenrium of 5% after three years.
Pass necessary Journal Entries firr the issue ofdebentures and debentures' interest for
the year ended Slst March,20l6 assuming that interest is payable on 30th SePtember
and 3l st March. fhe <rntpanl' closes its books on 3lst March every year.

PARI-B
(Analysis of Financial StatemeDts)
2?. A company has an operating cycle ofeight months. It has accounts receivables amounting
to t I,00,000 out of which ?60,000 have a maturity period of I I months. How would this
information be presenrcd in the balance sheet?
(a) ?40000 as current assets and 160,000 as non-current assets.
(D) (60,000 as current assets and {40,000 as non-current assets.
(c) t 1,00,000 as non-current assets.
(d) ? 1,00,000 as Current assets.
OR
'Higher the Ratio, good for the business'. This statement holds true in case of thc
(i) Oross Profit Ratio
(ii) Net Protrt Rati<r
(iii) Operating Ratio
(iu) Operating Profit Ratio
(u) Working Capital 'I'urnover Ratio
(a) (i), (ri) and (i,i) (r) (,), (,r, (iu) and (u)
(c) (,), (,,), (iii) and (iu) (d) (,,), (,i0, (iu) and (u)
28. What will be the amount of gross profit of a firm if is average inventory is {80,000,
Inyentory turnover ratio is 6 times, and the Selling price is 25% above cost?
(a) (1,20,000 (D) t I,60,000
(r) (2,00,000 (d) None ofthe above.
29. Which ofthe following is not included in cash and cash equivalens?
(a) Balances with banks
(b) Bank deposits with 100 days of maturity
(c) Cheques and drafts in hand, and
(d) Cash in hand
OR
Which of the following ransactions will result into flow of cash?
(a) Deposited {40,000 into bank.
(i) Withdrew cash from bank {54,000.
(c) Sold marketable securities of?25,000 at par.
(/) Sold machinery of b<xrk value of ?50,000 at a gain of t 10,000.
30. As per the following informadon reladng to year ended 3l st March, 2022, what will be
Net Profit before Thx and Extraordinary Activities?

'tllI
I78 Accountancy-Xll
 Particulars ( r)
Surplus, i.e., Balance in Statement of Profit and l-oss (Opening) I,00,000
Surplus, i.e,, Balane in Statement of Profit and Loss (Closing) 2,24,000
Transfer to Dcbentures Redemption Reserve 50,000
Proposed Dividend for the Previous Year 60,000
Interim Dividend paid during the year 48,000
Provision lor Thx made during the Current Year 1,00,000
lncome Tlx Paid 72,000
(a) {2,58,000 (r) t3,34,000
(r) ?3,82,000 (d) (2,82,000
31. Financial statements are prepared following the consistent accounting conceprs,
principles, procedures and also the legal environment in which the business
organisations operate. These statements are the sources ol'information on the basis of
which conclusions are drawn about the profitability and financial position ofa company
so that their users can easily understand and use them in their economic decisions in a
meaningful way.
State under which major headings and sub-headings the following items will be
presented in the Balance Sheet ofa company as per Schedule III ofthe Companies Act,
2013.
(i) CapitalReserve (ii) Calls-in-Advance
(iii) Loose Tools (iu) Bank Overdraft
32. State the significance ofanalysis offinancial statements to "Ibp Management'.
33. The management of David Ltd. is not satisfied with its movement of inventory and
the credit policy adopted. It decides to compare its policies with one of its competitors
Ankur Ltd.
Particulars David Ltd. Antur Ltd.
Cost ofRevenue from Operations 15,00,000 13,50,000
Average Inventory 3,75,000 2,25,000
Oredit Revenue from Operations 22,50,000 20,25,000
Average Trade Receivables 7,50,000 4,16,250
(i) Which ratio will be calculated to determine the movement of inventory?
(ii) Which ratio will be calculated to determine the credit policy followed by the firms?
(iii) Calculate the ratio identified in part (i) and (ii).
(iu) Comment on the movement of inventory and credit policy followed by both the
firms.
OR
The ratio ofcompany's current assets (t9,00,000) to current liabilities (?6,00,000) is 1.5: l. 'I'he
management of this firm is interested in maintaining a currenr rario of 2: I by paying
some part ofcurrent liabilities.
(i) They need your help to decide the amount ofcurrent liabilities which must be paid
off for this purpose.
(ii) Also mention some current liabilities that could be paid offby the firm.

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Sample Papers r79
N'
 34, Prepare (lash Fkrw Statement on the basis of information given in the Balance Sheets of
Relga Ltd. as at 3lst March, 2019 and 3lst March, 2020:
Particulars Note No. Slst March, Slst M.rch,
2019 ({) 2020 (<)
I. EQUITY AND LIABILITIES
l. Shareholders' l\rnds
(r) Share Capital 2,00,000 2,50,000
(6) Reserves and Surplus I 50,000 70,000
2. Non-Current Liabilities
l-orrg-tetm Borlowings 2 1.00.000 tt0.000
3. Currcnt Liabilitiee
(r) 'Irade Payables :.i 60,000 1,60,000
(r) ()ther Current Liabilities I 25,000 20,000
Tot l l.:i:,.olrl, 53oooo
II. ASSETS
l. Notr-Current Assets
(a) !'ixed Assets:
(i)-fangible Assets , I,50,000 2,00,000
(ii) Intangible Assets 6 10,000 2,000
(r) t,ong-term l,oans and Advances 1,00,000 I,30,000
2. Current Assets
(a) lnventories 70,000 90,000
(6) 'Iiade Receivables 40,000 60,000
(r) ()ash and Cash E<;uivalents 65,000 98,000
Total 4,3ir.000 iL!1l,1DQ
Notes to Accounts:
Particulars Slst March, Slst March,
2019 (?) 2020 ( r)
Reserves and Surplus
(ieneral Rescrvt' 70.000
, Long-tcrD Borrowings
l2% f)ebentures 1.00.000 !00q0
3 Tlede Payables
(lreditt>r-s 40,000 60,000

Bills I'ayable 20,000 1,00,000

60J)00- rEa,9qa
1 Other Current Liabilities:
()utstanding llxpellses 2.5.000 &JAq
Tirngible Fixed Asses
lltachinery 2,00,000 2,60,000

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r80 Accountancy-Xll
 1-err: l'r'ovision Ibl l)t'plcciation (50,000) (60,000)
1.50,000 2.00J00
6, Intangible Assets
Goodwill lllJQA 2J1r!l
Additional I {ormation :
l. During the year, a picce of machinery with a book value ol-(30,000; provision for
depreciadon on it ? 10,000 was sold at a loss of 509c on burk value.
2. Debentures were redeemed on 3lst March, 2020.
TTI

Answers
I (a\ tl4
(c) Assertion (A) is true but Reason (R) is false.
(a) Purchase consideradon
OR
(c) Securities Premium Reserve
4 (a) Anubhav's capital account will be debited by (3,000 and Shagun's capital account
will be credited by {3,000
OR
(d) Interest on Capital A,/c, Arun's Capital .4y'c
5 (r) t 10,000
6 (b\ 5vo
OR
(b) \Vc
7 (c) {90,000
8 (d) t r,41,000
OR
P ? 1,00,000; Q (1,00,000 and S { 1,00,000
9. (c) ?90,000
10. (r) ?2,51,880
ll. (c) Partners' Current,4'lcs Dr.
To Partners' Drawings A"/c

12. (a) t
5,60,000
13. (D) That part of issued capital which has been actually subscribed by the public.
14. (d) Goodwill A"rc will be credited by (6,000
15. (d) 12,000
OR
(d) {5,80,000
16. (d) (i,,) (,) (r,)

illll
.\
Sample Papers I8I
.\\\\\ i
 17. Goodwill ?30,00,000
18. 29:21
OR
B's share profit { 10,000
19. OR (loodwill t2,00,000
21. Oapital Reserve ?300
23. Capital Reservc (62,500
OR
Capital Reserve: (t) tl50; (rr) (6,000
24. Proht on Revaluation (60,000
OR
Profit on Revaluation t18,000; Capital Krish (47,000; Peter ?2ir,000 Vrish loan
t26,000.
27. (d) ( 1,00,000 as Current assets.
OR
(r) (,), (,,), (ir,) and (u)
28. (a) { 1,20,00t)
29. (D) Bank deposits with 100 days of maturity
OR
(d) Sold machinery of book value of ? 50,000 at a gain of ? 10,000.
30. (c) t3,82,000
11. oR (, t 3,00,000
34. Cash FIow from Operating Activities (1,30,000; Cash used in lnvesting Activities
t 1,15,000 Cash Flow lrom Financing Activities t 18,000.
llI

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182 Accountancy-Xll
 --:
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I SAMPLE PAPER
lut'ts I L\/E I
l

Time Allowed: 3 hours Max. Marks: 80

General Instructionsi Sa t. (ts OllSli \rttultlt (ltettiort lltlt t 2022-21 (ll \ttl1' )

PARI.A
(Accounting for Partnership Firms and Companies)
l. Angle and Circle were Partners in a firm. Their Balance Sheet shou'ed Furniturc at
t2O0,000i Stock at ? 1,40,000; Debtors at ( I,62,000 and Creditors at (60'000. Square
was admitted and new profit-sharing rati() was agreed at 2:3:5. Strxk was revalued at
t1,00,000, Creditors of ?15,000 are not likely to be claimed, Debtors for {2,000 have
become irrecoverable and Provision for doubtful debts to be provided (4 107c.
Angle's share in loss on revaluation amounted to {30.000. Revalued value of Furniture
will be:
(a) 2,17,000 (r) I,03,000
(c) 3,03,000 (d) I,83,000
2. Read the following state ments-Assertion (A) and Reason (R). Choose one of thc correct
alternatives given below:
Assertion (A): A Partnership will come to an end immediately whenever a partner
dies, although the [irm may continue with thc remaining partners.
Reason (R): The payment of deceased partner's share will be received by his heirV
executors.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct exPlanation
ofAssertion (A).
(6) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assenion (A).
(r) Assertion (A) is true but Reason (R) is lalse.
(d) Assertion (A) is false but Reason (R) is true.
3. In which ofthe following situations, the Companies Act, 2013 allows fbr issue o[ shares
at discount?
(a) lssued to vendors (D) Issued to public
(r) Issued as sweat equity (d) None ofthe above
OR
When debentures are rcdeemable at prentium, which of the fbllowing accoulrts will be
debited?
(a) Loss on lssuc of Debcntures A'/c

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 (D) Premium on Redemption of Debentures Ay'c
(r) Debentures A"/c
(d) Both (a) and (c)
4. Kiara, Suraj and Aryan were partners in a firm sharing profits and k>sses in the ratio of
5: 3: 2. With effect from lst April 2022, they agreed to share future profits and losses
in the ratio of2: 5: 3. Their Balance Sheet showed a debit balance of{ 3,00,000 in the
Profit and Loss Account and a balance of(2,40,000 in the Investment Fluctuation Fund.
-fhe market value of an investmenr is ( I,80,000 against thc book value
of ?3,00,000.
Partners have decided, not to shou' revised valued ln the balance sheet and to pass an
adjusting errtry for it.
Which of the {bllowing is the correct treatment of the above?
(ll) Kiara's CapitalA,/c; I)r: 54,000
To Suraj's Capital A,rc. 36,000
To Aryan's Capital A,,/c 18,000
(,) Suraj's Capital A"rc. l)r 30,000
1ir Kiara's Capital A'/c. 12,000
Ti) Aryan's Capital A/c 18,000
(.) Suraj's Capital A/c. Dr: t2,000
Aryan's Capital A./c. [)r: 6,000
Tb Kiara's Capital A,/r In.0(x)
kl) Suraj's Capiul A,,/c. Dr-. :,{i.(x)0
Aryan's Capital,A"/c. I)r. Ir1.(XX)

To Kiara's Capiul Ay'c 54,000

OR
Prem and Yug are partners sharing profits and losses in the ratio of 2:3 with the capitals
of ? 10,00,000 and ? 12,00,000 respecrively. On lst January 2022, Prem and Yug
granted loans of? 40,000 and t 20,000 respectively to the firm. Determine the amount
ofkrss to be borne by each partner for thc year ended 3lst March 2022 ifthe losr before
interest for the year amounted to t 5,000
(n) Share of Loss Prem -? 2,500 Yug- { 2,500
(b) Share of Loss Prem -? 2,000 Yug - ? 3,000
(c) Share ol [,oss Prem -t 1,640 Yug- ( 2,460
(d) Share of Loss Prem -( 2,360 Yug- t 3,540
5. Vilekh and Pari are partners sharing profits and losses in the ratio of 3:2. -fhe firm
maintains fluctuating capital accounts and the balance of the same as on 3lst March,
2022, is t 8,00,000 and { 9,30,000 for Vilekh and Pari respectively. Drawings during the
year were ? 1,30,000 each. As per the partnership Deed, Interest on capital @ l07c p.a.
on Opening Capital has been alkrwed to them. Calculate the opening capital of Vilekh
given that the divisible profits during the year 2021-22 was ? 4,50,000.
(a) ?6,60,000 (r) (tt,80,000
(c) {u,00,000 (d) <6,00,00
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I84 Accountancy-Xll
 6. TXN Ltd. issued 15,000, 8% Debentures of {100 each at <95. It will credit 87o Debentures
Account by
(a) (15,00,000 (r) ( 14,25,000
(c) Either (a) or (b) as it decides (d) ? 15,75,000
OR
Nano l,td. purchased assets of Dow Ltd. for { 3,00,000. It also agreed to take over the
liabilities of Dow Ltd. amounting to { 50,000 for a purchase consideration ol
? 2,75,000. The payment to Dow Ltd. was made by issue of87o Debentures ofT 50 each
at a premium of l0%.
In the brxrks of Nano Ltd., Dow Ltd.'s .4y'c will be:
(a) debited by t2,75,000 (r) debited by {3,00,000
(c) credited by (3,00,000 (d) credited by t2,75,000
7. Mr. X, a shareholder does not pay his dues on allotment, for the amount due, there will
bea
(a) Credit balance in the Share Allotment Account.
(6) Debit balance in the Share F'orfeiture Account.
(c) Credit balance in the Share Forfeiture Account.
(d) Debit balance in the Share Allotment Account.
8. 'Ge neral Reserve'is {40,000at the time of retirement of X. 257a of General Reserve isto
be transferred to Investment l'luctuation Reserve. The firm has tw<.r partners X and Y X's
Ay'c will be credited by:
(a) t10,000 (r) ( 15,000
(r) t20,000 (d) {40,000
OR
Which ofthe flollov,,ing statements is true in context ofa partnership firm in the absence
ofa partnership deed?
(d) If there is a provision for the interest on capital in the partnership deed, it will be
allowed only when there is a sufficient profit.
(ir) Prolits and losses will be shared in equal ratio, irrespectiye of the capital contribution
and/or work performed by the partners.
(rii) Partner is entitled to a salary or commission for taking active part in business
activities.
(i?) Interest at the rate of670 per annum will be allowed on a partner's loan by the firm
even if there are losses to the hrm.
(rz) Only (i) and (i) (D) Only (ri) and (iir)
(c) Atl (,), (i), (iii) and (irr) (d) Only (,), (ir) and (iu)
Read tle lolbtuitrg hfithetical situatio\ dnd ansuer the questions 9 and 10,
X, Y and Z were partners in a lirm sharing profits in the ratio of5 : 3 : 2. 'l'he firm closes
its books on 3lst March every year. On 30.9.2022, Neel died. The partnership deed
provided that on the death ofa partner his executot's will be entitled to the following;
(i) Balance in his capital account and interest on capital @ l2% per annum. On I .4.2022
balance in Neel's Capital Account was ? {30,000.

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Sample Papers
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 (ii) His share in the prohts ofthe firm in the year ofhis death, which will be calculated
on the basis of rate of net profit on sales of the previous year, which was 25%. The
sales ofthe firm till 30.9.2022 were { 4,00,000.
(iii)
His share in the goodwill of the firm. The goodwill of the firm on Neel's death was
valued at {3,00,000.
The partnership deed also provided that the following deductions will be made fiom the
amount payable to the executor of the deceased partner:
(i)
His drawings in the year ofhis death. Neel had withdrawn ?30,000 till 30.9.2022.
(ii)
Interest on drawings @127o per annum which was calculated as {2,000.
The accountant of the firm prepared Neel's Capital Account to be presented to his
executor as foll()ws:
Neel's Capital Account
f)aie Paniculars ( ?) Date Paniculars (l)
2022 2022
Sept. 30 lb Drawings &c J0.(xx) Aptil I By Balance b/d 80,000
Sept.30 l'o Interest on Drawings A,/c 2.(XX) Sept. :10 By lntcrest on Capital AJc 4.800
Sept.30 Ib Neel's f.xecutor's A/l' Sept.:]0 By P & t- Suspense &c
Sepr.30 By Maya's Capital A,,/r
Sept.30 By Navya's Capital Ay'c

9. The amount creclited to Neel's Capital through Profit and Loss Suspense A/c is:
A,/c
(a) ?22,000 (r) t20,000
(c) ?24,500 (d) {20,500
10, The amount transferred to Neel's Executor's AJc will be:
(a) ( 1,64,800 (r) ? 1,32,800
(c) t 1,42,800 (d) t 1,34,tJ00
I l. Which of the fbllot'ing items is not shown in Profit and [-oss Appropriation Account?
(a)'liansfer to (;eneral Reserve (b) Salaries to Partners
(c) lnterest on Drawings (d) Interest on Partner's l,oan
12. The Directors of Unim Ltd. fbrfeited 30,000 shares of { l0 each, fbr non-payment of
final call ofl3 per share. Half ofthe forfeited shares were reissued as fully paid-up for
{ l2 per share. 'l'he amount to be transl'erred to the Capital Reserve Account will be:
(a) ( 2,70,000 (D)( 2,10,000
(c) t 1,05,000 (d) ( 1,80,000
13. The discount given on re-issue of fortbited shares is debited to:
(a) Share capital account (b) General reserve a(:count
(c) Share forfeiture account (d) None ofthese
14. Harpreet, Trihaan and Roy are partners in a firm sharing profir in ratio of 3:2: l. 'l-hey
admit Gupta for l/5th share in profit. Gupta brought Capital of {50,000 but he is unablc
to bring his share of goodwill in cash. The goodwill of the firm has been valued at
t60,000. Where will you debit new partner's share of grxxlwill?
(n) Otrpta's Capital Ay'c b1 ?I2,000 (D) Gupta's ()rrrrent,Vcby {12,000

(c) (lash (
A,/c by 12,000 (r1) Roy's (itrrrent A,/c by ( 12,000
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IB6 Accountancy-Xll
 15. Anil and Vijay are partners in a firm. Anil is entitled to get a commission of 257o of net
profit after charging such commission. Net profit before charging such commission is
t60,000. Calculate Anil's commission.
(a) ?12,500 (r) { 15,000
(r) { 12,000 (d) {20,000
OR
A partner advances ? 50,000 loan to his firm on lst October, then interest on his loan in
the absence ofdeed flor 3l st December wi]l be:
(a) ?300 (r) t750
(c) ?600 (d) {900
16. On dissolution ofthe firm, general reserve is transferred to:
(i) Realisation Account
(ii) Partners' capital A,,/cs in profit sharing ratio
(iri) Partners' capital AJcs in capital ratio
(iu) Cash Account
(a) Only (i) and (ii) (D) only (ii)
(c) Only (ii) and (rir) (d) (r), (r,) and (tr,)
17. Kanu and Manu were partners in a firm. They admitted Tarun as a new partner for
I/4th share ofprofits. Thrun brought {3,00,000 as his capital and the necessary amount
of goodwill premium for his share of goodwill. The goodwill ofthe firm was valued at
( t,60,000. The new profit sharing ratio will be 2 : I ; l.
Pass necessary jou rnal entries for the above transactions in the books ofthe firm.
lE. A, B, C and D are partners sharing profits in the ratio of3 :2: I :4. A retires and his
share is acquired by B and C in the ratio of 3 : 2. Calculate new ratio and gaining ratio.
OR
B Q and R were partners in a firm. R died on 30th Septembex 2018. His share ofprofit
was to be calculated on the basis ofaverage profit oflast three years. Firm's profit on 3l st
March,20l5 were t56,000; 20t6 t85,000; 2017 <75,000. Calculate R's share ofprolit.
Pass necessaryjournal entry also
19, Arun Ltd. purchased an established business for t8,00,000 payable as ?2,60,000 in
cash and the balance by issue of l27o Debentures of ? 100 each at a discount of I Mo.
Journalise the above transactions in the books o[ purchasing company.
OR
Pass necessary journal entries for the following transactions in the books ofGopal Ltd.;
(i) Purchased furniture for (2,50,000 from M/s Furniture Mart.'fhe payment to M/s
Furniture Mart was made by issuing equity shares of( l0 each at a premiurt of 25Vo.
20. The goodwill ofa lirm was to be valued at two years'purchase ofthe average profits of
the last three years. The profits were as under :
2014 - l5 : I 20,000 (including an abnormal gain of{5,000)
2015 - t6 : t 40,000 (after charging an abnormal loss oft 10,000]
2016 - l7: { 40,000
Calculate the amount of g<xrdwill.
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Sample Papers rB7 N

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 21. Give Journal entries to record the following transacdons on fbrfeiture and reissue of
shares and open Share Forfeited Account in the books ofthe comPany:
L Ltd. forfeited 470 Equity Shares of ? l0 each issued at premium of (5 per share for
non-payment t.rf allotment money of {8 per share (including share premium (5 per
share) and the first and final call of (5 per share. Out of these 60 Equity Shares were
subsequently reissued at { l4 per share.
22. Give necessary journal entries in each ofthe following cases at the dme ofdissolution of
firnr:
(i)lixpenses of realisation amounted ?7,400.
(ii)Expenses of realisation ?7,400 were paid by Ravi, a partner.
(iii)Realisation expenses were to be borne by Deepak, a partner, for which he was allowed
a commission of ZVc on net cash realised from dissoludon. The net cash rcalised
from dissolution was I1,00,000 and actual realisation expenses were ?7,400.
(iz) Lxpenses of realisati<ln (7,400 were to be borne by Khan, a partner. Khan used firm's cash
for paving rhese expenses.
23. Xl. Ltd. invited applications for issuing 1,00,000 equity shares of{10 each at par. The
amount was payable as f<rllows:
On Application- {3 per share
On Allotment- <4 per share
On l-irst and Final Call- {3 per share
The issue was oversubscribed by three times. Applications for 2070 shares were rejected
and the money refunded. Allotment was made to the remaining applicans as follows:
Category No. of Shares Applied No.of Shares Alloued
I t,60,000 80,000
II 80,000 20,000

Excess money received with applications was adjusted towards sums due on allotment
and first and final call. All calls were made and were duly received except the hnal call by
a shareholder belonging to Category I who has applicd for 320 shares. His shares were
forl'eited. The forfeited shares were reissued at ( l5 per share lully paid up.
Pass necessary .journal entries frr the above transactions in the br>ok o{'XL Ltd. Open
calls- in-arrears and calls-in-advance account whenever requt'ed.
OR
-fournalise the follt.rwing transactions in thc books of Naveen Ltd:
(i) 200 shares of{10 each issued at a premium of?5 per share payable with allotnrent
were fbrfeited for the non-paylrtent of allotment m()ney of (9 pcr share including
premium. The first and final call of (3 per share wcre not rnade. 'I'hc fotfeited shares
were reissued at { l4 per share fully paid up.
(ii) U00 shares of{ l0 each issued at par were forfeited tbr the non-payment oifinal call
of(2 per share. These shares were reissued at {u per share tully paid up.
24. Vikas and Hiten are partners sharing profits and losses in the ratio 5:3. 1'hey admitted
Shilpa with l/5th share in the firm. At thc time of admission the Balance Sheet is as
rrnder:

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I8B Accountancy-Xll
 Balance Sheet
Liabilities Amount Assets A.Eount
(r) (r)
Capitals: Land and Building 50,000
Vikas 1,10,000 Plant and Machinery 70,000
Hiten 60.000 r,70,000 Goodwill 20,000
(ieneral Reserve 32,000 Stock 40,000
Sundry Creditors 38,000 Sundry Debtors 50,000
Bills Payable 16,000 lzss. Provision for
Doubtful Debts g.lq00 47,000
Ourstanding Salary .1,1300 lnvestment 28,000
Bank 4,800
Prepaid lnsurance 1,000
2.(i0.lJ0ll 2.60.1]00

T'hey agreed to admit Shilpa, a new partner on the following terms:

(i) Shilpa brings {52,000 as her share ofgoodwill and {57,100 as capital.
(ii) Land and Building and Plant and Machinery were to be valued at t76,000 and
(60,000 respectively.
(iii) The provision for doubtful debts was to be maintained up to t2,000.
(nr) A liability for t2,400 included in sundry creditors was not likely to arise.
(r) Investments of{20,000 were taken over by old Partners in their profit-sharing ratio.
(ui) Hiten is to withdraw {4,800 in cash.
(uii) An amount of{200 is outstanding for repairs.
Journalise.
OR
G, E and F were partners in a firm sharing profits in the ratio of7 : 2 : l. The Balance
Sheet ofthe firm as at 3l st March, 2021, was as follows;
Balance Sheet of G' E and F
as at ) lsl March, 2021
Liabilities Amount Assets Amount
( r) ( r)
(lapitals Cash 90,000
G 1,40,000 Sundry Debtors 24,000
E 40,000 Stock 14,000
F 20,000 2,00,000 Machinery 80,000
Creditors 2lt,0(x) Land and Building 1,20,000
General Resene .10,000
Loan from E (;0.0(x)
3.2t3.000 3.28.000

E retired on the above date. On E's retirement the following was agreed upon:
(i) Land and Building were revalued at { 1,88,000, Machinery at < 76,000 and Stock at
? 10,000 and goodwill ofthe firm was valued at <90,000.
(ii) A provision of2.57o was to be created on debtors for doubtful debts.
(iil) The net amount payable to E was transferred t<> his loan acc<>unt to be paid later on.
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Sample Papers r8g
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 Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of
reconstituted firm.
25. Arya, Bakul and Chand were partners in a firm. On lst April, 2018 their fixed capitals
stood at (50,000, (25,000 and ?25,000 respectively.
As per the provisions of the partnership deed:
(i) Bakul was entitled for a salary of?5,000 p.a.
(ii) All the partners were entitled to interest on capital @51o p.a.
(iri) Profits were to be shared in the ratio ofcapitals.
'I'he net profit for the year ended 3lst March, 2019 of?33,000 and 3lst March,2020 of
{45,000 was divided equally without providing ftrr the above terms.
(i) The partners ofthe firm wanted to solve the issue ofwrong profit distribution. 'I'hey
wanted to know the correct amount of profit that should be credited to partners'
current accounts for the years ended 3 tst March, 2019 and 2020?
(ii) What is the net effect of rectifying the wrong distribution of prohts?
26. C India Ltd. purchased machinery fnrm B India Ltd. Payment to B India l-td. was made
as follows:
By issuing 10,000, equity shares of( l0 each at a premium of20%.
(i)
By issuing 1,000, 97o debentures ofl 100 each at a discount of57o.
(ii)
(iri) Balance by giving a bank draft of ? 37,000.
Pass necessaryjournalentries in the books ofC India Ltd. flor the purchase ofmachinery
and payment to B India Ltd.
27, 'Public Deposits'appear in the company's Balance Sheet under the head/subhead:
(a) Intangible Assets (D) Current Liabilities
(c) Shareholders' Funds (d) Non-Current Liabilities
OR
The following groups of ratios primarily measure risk:
(a) solvencl activity, and profitability (D) liquidity, efliciency, and solvency
(r) liquidity, activity, and profitability (d) liquidity, solvency, and profitability
2E. IfTotal sales are ?2,50,000 and credit sales are 25% of Cash sales. The amount ofcredit
sales is:
(a) {50,000 (r) (2,50,000
(c) {16,000 (d) {3,00,000
29. Amongst the following, 'Payment ofbonus to the employees'by an insurance company
is which type ofactivity?
(a) Operating activity
(6) Investing activity
(c) Financing activity
(d) Both operaring and financing activity.
OR
Cash proceeds from issue of preference shares will be shown in cash flow statement
under:
(a) Operating Activities (b) Investing Activities
(c) Financing Activities (d) None ofthe above

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I90 Accountancy-Xll
 30. Dolphin l,td. purchased machinery nf t2,00,000 issuing a cheque of {50,000 and $Vo
Debentures of ? I,50,000. In the cash flow statement, the transaction will be shown as:
(a) Outflow under investing activity {2,00,000 inflow under financing activity as Receipt
for Debentures of ? I ,50,000.
(b) Outflow under investing activity ?50,000
(r) I nflow of { 1,50,000 as financing activity.
(d) None of the above
31. Mudra Ltd. is in the process of preparing its Balance Sheet as per Schedule III, Part I
of the Companies Act, 2013 and provides its true and fair view of the hnancial position.
(a) Under which head and sub-head, will the company show 'Stores and Spares' in its
Balance Sheet?
(r) What is the accounting treatment of'Stores and Spares' when the company will
calculate its Inventory Turnover Ratio?
(c) The management of Mudra Ltd. wants to analyse is Financial Statements. State any
two objectives of such analysis.
32. State the significance ofanalysis of hnancial statements to the 'Lenders'.
53. Before lending a hefty amount to Minimax Ltd., the lenders are interested to measure
the safety margin available to them.
They need your suggestion to decide whether they should lend the amount or not. You
are provided the following information about Minimax Ltd.:

Equity Share Capital 4,00,000

Debentures I,80,000
Srrrplus, i.r., Balance in Statement of Profit and Loss 1,00,000
GeneralReserve 70,000
Tiade Payables 30,000
Provision for Employees Provident Fund 1,20,000
(i) Which ratio will be calculated to find out the safety margin to the lenders of the long-
term debt?
(ii) Calculate '-Ibtal Assets' of Minimax Ltd.
(iii) Calculate 'Debt' of Minimax Ltd.
(iu) Calculate'Total Assets to Debt Ratio'and mention whether the lenders should lend
the amount or not.
OR
The hnance manager of Hazel Ltd. wants to find out how efliciently the long-term funds
supplied by the investors and Shareholders' Funds have been utilised in the business.
He also wants to find out the extent ro which debt is being covered by the assets.
'fhe manager has provided this information about the firm:
Fixed Assets t75,00,000; Current Assets t40,00,000; Current Liabilities {27,OO,OO0l' l2%o
Debentures ?80,00,000 and Net Prolit before lnterest,'fax and Dividend { 14,50,000.
You are required to name and compute the ratios which would serve the above mentioned
purposes.

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Sample Papers IgI
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 34. Followirrg is the llalance Shcct ol 'l'lrerrnal I'ower l,t<1. as at 3l -3-2019:
Thermat Power Ltd.
Rulantr Shecl al 7l-)-2Olt)
^
Particulars Note 2018- r9 (l) 2017- rl
No. ( ?)

I. EQUITY AND LIABILITIES

(l) Shar€hold€rs' Funds
(a) Share (ia1>ital t2,(x),(D0 I 1,00,000
(/r) Reserves an(i Surplus I :t.00.{)00 2,00,000
(2) Non-current Liabilities
l-ong-ternt Bolror^'ings 2..{{).(XX) I,70,( )o( )
(3) Current Liabilities
(r) Iiade Parables 1,79,000 2,04,000

(6) Short-tenn Provisions 50,000 77,000

Totrl 19,{i1).000 17,51,000
II. ASSETS
(l) Non-Currenr Assets
(a) l'ixed Assets
(i)-IanBible 10,70,000 8,50,000
(ii) Intangible l 40,000 I,12,000
(2) Current A.sscts
(rr) Current Investments 2,40,000 I,50,000
(r) Inventories I,29,000 I,21,000
(.) Trade Receivables I,70,000 I,43,000
(rl) Cash and Oash equivalents 3,20,000 3,75,000
Total Ilr,r;1).(XX) 17,5t,000
Notes to Accounts:
S.No. Particulars 2018- l9 20r7. r8
( <) (?)
I Reserves end Surplus:
Strrplus, i.r., Balance in Statement of Profit and Loss 3,00,000 2.00,000
Thngible Assets:
Machinery 12,70,000 10,00,000
Lr.ss. Accumulated Depreciation (2,00,000) ( I,50,000)
3 Intangible Assets: 10,70,000 It,rl).00o
Goodwill 40,{xx) I .12.{XX)

Additiaaal informafioz: During the year a piece ofmachinery costing {24,000 on which
accumulated depreciation was t 16,000, was sold for {6,000.
Prepare Cash Flow Statement.
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rg2 Accountancy-Xll
 Answers
l. (d) l,83,000
2. (r) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A).
3. (r) Issued as sweat equity
OR
(a) Loss on Issue ofDebentures A,/c
4.
(n) Kiara's Capital A,/c. l)r' 5.1.(xx )

'Iir Suraj's Oapital A"rc. 36,000

-lb Aryan's (:apital A.ic IrJ,000

OR
Share ofLoss Prem {2,360, Yug t3,540
5 (d) <60,000
6 (a) { 15,00,000
OR
(d) credited by {2,75,000
(d) Debit balance in the Share Allotment Account
8 (r) t r5,000
OR
(d) Only (i), (ii) and (iu)
9. (r) ?20,000
10. (r) { l,32,800
ll. (d) Interest on Partner's Loan
12. (r) { 1,05,000
t3. (c) Share forfeiture account
14. (6) Gupta's Current AJc by ( 12,000
15. (c) t 12,000
OR
(r) ?750
16. (D) only (ii)
18. New Ratio 19: ll :20
OR
R's Share of Profit < 12,000
19. Number of Debentures 6,000
20. Goodwill { 70,000
21. Capital Reserve ( 120

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Sample Papers rg3
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 23. Capital Reserve ( 1,120
OR
Capital Reserve: (r) (600; (tt) t4,800
24, Protit on Revaluation { 19,200
OR
Profit on Revaluation {59,400. Capital,4'/cs G ? 1,93,830; F ( 27,690; E's loan { 1,37,880;
B/S t 3,87,400
25, Debit Chand Current A,/c {9,000; Credit Arya Current A,/c ? 8,000. Bakul Current A,/c
( I ,000
26. Purchase consideration t 2,52,000
27. (d) Non-current liabilities
OR
(d) liquidity, solvency, and profitability
28. (a) t50,000
29. (a) Operating activity
OR
(r) Financing Activities
30. (b) Outflow under investing activity ?50,000
53. (") t9,00,000 (iii) t3,00,000 (n,) 3 : I
34, Cash Flow from Operating Activities {1,53,000; Cash used in Investing Aaivities
{2,88,000 Cash Flow from Financing Activities t 1,70,000.
tlt

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194 Accountancy-Xll
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SAMPLE PAPER
10 I

[UNSOLl/ED] r\

Time Allowed: 3 hours Max. Marks: 80

General Ins,ructioz.t:.\1rr?r d.\ OIISE Sttrtltk (luslion l'tfur-2022-27 (t n:olt'rtl)

PART-A
(Accounting for Partnership Firms and Companies)
l. It is decided that the surplus or dehcit arising after capital accounts of parmers have
been adjusted, including that of the new partner, to transfer to newly opened partners'
current accounts instead of undertaking actual cash transactions,
Then, ifa partner's capital is more than his required proportionate share, which ofthe
following Journal enries will be passed?
(a) Partner's Current A,/c Dr.
1b Partner's Capital A"/c
(b) Partner's Capital A,/c Dr.
To Partner's Current A,./c
(c) Partner's Capital Ay'c Dr.
To Revaluation A,./c
(/) Revaluation A'/c Dr.
To Partner's Capital Ay'c
2. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct
alternatives given bekrw:
Assertion (A): If there is a debit balance of Proht and Loss Account and deferred
revenue expenditure in the Balance Sheet on the date of retirement of
a partner, it must be written offby all the partners in old profit-sharing
ratio.
Reason (R): For the above purpose, CapitalAccouns ofall the partners are credited
Alternativee:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
ofAssertion (A).
(D) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) fusertion (A) is false but Reason (R) is true.
3. A share of(10 was forfeited for non-payment offinal call amount of(3. It can be re-
issued with maximum discount of:
(a) t3 (r) tlO
(c) 17 (d) < l3
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Sample Papers 195
 OR
Premium received on Debentures czn be used:
(i) For writing offdiscount on issue ofdebentures
(ii) Ttr write off premium on redemption ofpreference shares
(iii) 'Itr write offcapital loss
(a) only (i) (D) onlY (i) and (ii)
(r) Only (ii) and (,,,) (d) All (,), (ii) and (iii)
4, R, S and 'I are partners in a lirm sharing profits in the ratio of 3 : 3 : 2. Fmm lst
April, 2021, they decided to share profits in the ratio of 3 : 2 : l. On that dar their
Balance Sheet showed Contingency Rcserve of { I,92,000. They decided to show this
Contingency Reserve in the new Balance Sheet.'l"he correct accounting treatment for
the above is:
(a) S's capital accountn'ill be debited hy {24,000 and R and 1-'s capital account will be
credired by {u,0000 and { t6,000 rcspectively.
(b) 't"s capital account will be debited by {24,000 and R and S's capital account will be
creclited by ?t|,000 and ? 16,000 respectively.
(c) R's capital account will be clebited by {24,000 and S and -l-'s capital account will be
crcclited by ?u,000 and ? 16,000 respecdvely.
(d) S and -f's capital accorrnt will be debited by t8,000 and { 10,000 respectively and R's
capital account will be credited by ?24,000.
OR
X, Y and Z are partners in a firm sharing profits in the ratio of 3:2: l. Z was guaranteed
a minimum profit of (60,000. Any delicicncy arising out of this will be borne by X and
Y in thc ratio of2:1. Profit lirr the year ended 31.3.2021 amounted to ?2,70'000. How
much deficiency will be borne by X?
(a) ( 10,000 (D) t15,000
(c) (5,000 (d) (20,000
5. A, B and C were partners in a lirm. As Per the partnership deed, interest on drawings is
to be charged @l l0% per annum. B withdrew a fixed amount at the end ofevery quarter.
lnterest on his drawings amounted to (9,000. The amount of his drawings per quarter
were:
(a) {2,40,000 (r) t I,u0,000
(c) 160,000 (d) ?80,000
6. Ifdebentures of?9,00,000 are issued for consideration ofnet assets of( 10,00,000' then
the dillerence of { I ,00,000 will be credited to:
(a) (ioodwill A"/c (D) Capital Reserve A,/c
(r) General Reserve A,/c (d) Statement of Proltt and Loss
OR
On Ist April, 2022, RJ. Ltd. issued < 10,00,000, 97c debentures of ? 100 each at a
-l-hese after four
discount of l0%. debentures were redeemable at a premium of 57o
years.
At the time of alkrtment, Loss on Issue of Debentures Ay'c' will be:
(a) credited by <9,00,000 (D) credited by { I,50,000
(r) debited by t 1,50,000 (d) debited by 49,00,000
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 7. Krishan Ltd. has Issued (iapital ol'20,00,000 l)quiry shares of { l0 each. Till date {tl pcr
share has been called up and the entire am()unt received exr:ept calls of {4 per share
on 800 shares and t3 pel share flrom another holder who hcld l-r(X) shares. What will be
amount appearing as'Subscribed but not filly paid capital' in rhe balance sheer of rhe
company?
(a) ( 2,00,00,000 (b) ? 1,95,99,000
(c) ? 1,59,91-r,300 (d) < I,99,95.300
8. Nidhi, Kunal and Kabir were partners in a firm, sharing protits and losses in the ralio of
2 : 3 : 5. Nidhi retired, selling her share ofprolit to Kunal fbr ? 30,000 and ro Kabir lbr
t 50,000.'l'hc new profit-sharing ratio between Kunal and Kabir will be:
(a) 2:3 (l) 3:Ir
(c) 2:5 (d) 5:3
OR
Sunil and 'l ulip were partners irr a firm sharing profits in the ratio of 5 : 3. During the
year endcd 3lst March,20l9 Sunil had withdlawn t55,000. Interest on his drawirrgs
amounted to {7,000. Amount debited to Sunil's Oapital Account firr interest on drawings
is:
(a) t38,000 (r) t7,000
(c) t55,{)01) (r/) None of the above
Read the following Wothetical situation dnd aflsuer question no. 9 and 10.
Ayush, lloni and Chetna werc partners in a firm engaged in the business of srrpplying
organic lbod products to the rnarket. They share prolits and krsses in the ratio of' l:2:3
respectively. Boni retires on lst April, 2022. ()n that date, the capiulofAyush, Boni and
Chetna alier all adjustments strxrd at <60,600, ? 77,800 and t16,600 respectivelv. (iapital
of the new firrn will be read.justed by bringing in or paying off cash so that rhe firttrre
capital ofAyush and Chetrra be in their new-prolit sharing rati() 3:2.
'fhe [<rllowing.journal cntries lrave been passed in the books ol-accorrnts:
Datc Particulars L.n Dr. ( ll Cr. ( (l
2022 (iash A,/c l)r
,rtpril I
To Ayush's Oapital .4,/c

(Being cash brought in by Ayush)

Ohetna's Capital A,/c l)r
Tb Cash A,,/r:

(Being cash withdrawn by Cherna)

9. What will be the amount of new capital of Ayush in the reconstituted firm?
(a) t I,47,200 (r) <5u,880
(c) ?88,320 (d) {86,600
10. The cash withdrawn by Chetna will b€:
(a) {27,500 (r) t 27,650
(c) 727 ,25o (d\ <27,720

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F Sarnple Paper s 197
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 ll. Which of the lbllowing items will not appear in a Partner's Fixed Capital A,/c?
(a) Additional capital introduced (6) lnterest on capital
(r) ()pening balance ofcapital (d) Permanent withdrawal ofcapital
12. Excess value ofnet assets over purchase consideration at the time ofpurchase ofbusiness
is:
(a) Credited to the Capital Reserve
(D) Debited to the Goodwill Account.
(c) Credited to the (;eneral Reserve Account
(d) (lredited to the Vendor's Account
13. Crews t-td. invited applications for issuing 60,000 equity shares of {20 each payable as
follows:
On application - ( 5 per share
On alkrtment-{ 7 per share
On [irst call -t 5 per share
On final call - { 3 per share
All the shares were subscribed and all alnouns were duly received except from Terry'
holding 400 shares, who failed to pay allotment, first call and final call and Skully, holding
300 shares, who did not pay both the calls.'lhe total amount of'calls-in-arrears' was:
(a) (5,600 (6) <6,000
(c) t10,500 (d) 18,400
14. L and M are partners in a firm sharing profiLs and losses in the ratio of3 Their capitals
: 2.

were (6,40,000 and (4,00,000 respectively. N was admitted firr 6 th share in the profits
ol the firm. He brought ?4,80,000 as his capiral. The goodwill of the firm will be:
(a) (tt,80,000 (6) < I,76,000
(
(c) 13,60,000 (d) 12,72,000
15. Kaul and Garg were partners in a firm. 'fheir Partnership deed provided that the Profits
shall be divided as follows :
First t20,000 to Kaul and the balance in the ratio of 4 : I . The profits for the year ended
3lst March, 2022 were t60,000 which had been distributed between the partners. On
lst April,202l their capitals were Kaul t90,000 and Garg t80'000. Interest on capital
was to bc provided @ 6% p.a. While preparing the profit and loss appropriation account,
interest on capital was omitted.
For the rectification of omissir.rn ofinterest on capital,
(a) (iarg's Capital A,./c will be credited by (2,760
(6) (iarg's Capital A,/c will be debited by (2,760
(c) (;arB's (.:apital A,/c will be debited by (2,800
(d) Garg's Capital A/c will be credited by f2,800
OR
As a result ofan error regarding Omission ofinterest on capital, Sanjana had been paid
{ 10,300 more and Naksh had been paid ? 10,300 less' For the rectification ofthe error,
in a parurership firm, tbllowing journal entry would be passed:
(a) Saniana's Capital A,./c Dr.
'Iir Naksh's (;apital A./c

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I9B Accountancy-Xll
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 (D) Naksh's Capital Ay'c Dr.
To Sanjana's Capital A,/c
(r) Profit and Loss Appropriation Ay'c Dr.
To Naksh's Capital A,/c
(d) Sanjana's Capital A,/c Dr.
'fo Profit and Loss Appropriation ,4y'c

16. On dissolution of firm, there was an unrecorded invesrmenr of ? 1,50,000. These were
taken over by a creditor of ?2,00,000 in complete payment of his liability. What amount
will be deducted from the due amount ofsundry creditors?
(a) t50,000 (r) < I,50,000
(c) t2,00,000 (d) (3,50,000
17. Asin and Shreyas are partners in a firm. They admit Aiay as a ncw parrncrr.r,ith jth
share in the profits ofthe flrrm. Ajay brings {5,00,000 as his share ol'capital. The value of
the total assets ofthe firm was ( 15,00,000 and outside liabilities were valued at 15,00,000
on that date. Give the necessary Journal enrry to record goodwill at the time of Ajay's
admission. Also show your workings.
18. X, Y and Z are partners sharing profits in the ratio l:2:3. Z retires on lstApril,20l8 and
his capital after making all adjustments for reserves and profit on revaluation stands at
{2,40,000. X and Y here agreed to pay him {3,00,000 in frrll setdement ofhis claim.
Record necessary journal entry for the treatment of goodwill if the new profit-sharing
ratio is decided as I ;3.
OR
Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5:3:2.
Goodwill appeared in their books at a value of{60,000 and General Reservc at ?20,000.
Karan decided to retire fronr the firm. On the date of his retirement, goodwill of the
firm was valued at 12,40,000. The new profit-sharing ratio decided among Alia and
Shilpa was 2:3.
Record necessary Journal entries on Karan's retirement.
19. Prakash t-td. had t10,00,000, l2% debentures oustanding as on I st April, 2019. During
the year company took a kran of ?2,00,000 f<rr 5 years from the State Bank of Patiala
for which the Company placed with the bank debentures for ?2,50,000 as Collateral
Security. Passjournal entries, ifany. Also show how the Debentures and Bank Loan will
appear in the Company's Balance Sheet.
OR
Pass necessary jourral entries for the lbllowing transacrions in the books ofRajan l-td:
Rajan Ltd. purchased a running business from Vikas Ltd. fbr a surrr of {2,50,000 payablc
as {2,20,000 in tully paid equity shares of { l0 cach and balancc by a bank draft. 'l hc
assets and liabilities consisted of the ft.rllowing:
Plant arrd Machinery t90,000; Rtrilding {90,000; Surrdrv Dcbrors {30,000; Stock
I 50,000; Cash {20,000; Sundry Creditors <20,000.

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Sample Papers rg9
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 20. P Q, R are partners slraring profits and losses in the ratio o[' 3:2: l, decided to share
future profits;rnd losses equally from tst.{pril, 20ltt. Follo*'ing is an extract of their
Balance Sheet as at 3l st March, 20 I U:
Liabilities (?) Assets ( ?)
lnvestfirent Flrr<tuation Reserve {;0,0(x) I n\ eslr)( l (llt c()st) 10.00.000
Show the accounting treatment if the market value of Investments is ? 10,12,000.
21. The authorised capital ol suhani Ltd. is ?45,00,000 divided into 30,000 shares of( 150
each. ()ut ofthese, company issued 15,000 shares of ? 150 each at a premium of ? l0 per
share.
-fhe amount was payable as [trllows:
{50 per share on application, {40 per share on allotment (including premium), {30
per share on first call and balance on final call. Public applied lirr 14,000 shares. All the
money was duly received.
Prepare an extract of Balance Shcct of Suhani Ltd. as per Schedule III Part I ol'the
Companies Act, 2013 disclosing the above information. Also prepare 'Notes to Accounts'
for the same.
22. Shanti and Satya were partners in a hrm sharing profits in the ratio of 4: I . On 3l st
March, 2019 their Balance Sheet was as lblkrws:
Balance Sheet of Shanti ard SatYa
as at 3l st March, 2019

Liabiliti€s (r) Assets ( ?)

Creditors 45,000 Bank 55,000
Workmen Compensation Fund .10,000 f)ebtors 60,000
Satya's Current Account 65,000 Stock 85,000
Capitals: Furniture r,00,000
Shanti 2,00,000 Machinery l,30,000
Satya r,00,000 Shanti's (iurrent Account 20,000
4,i)0,(X)0
-t-eqtg
On the above datc the firm was dissolved:
(i) Shanti t<xrk over 40% ofthe stock at l0% less than its book value and the remaining
stock was sold for {40,000. l\trniture realised {U0,000.
(ii) An unrecorded investment was sold ftrr <20,000. Machinery was sold at a loss of
{60,000.
(iii) Debtors realised { 55,000.
(ia) 'l'here was an outstanding bill lirr repairs for which ? 19,000 were paid.
Prepare Realisation Acc()unt
-fhe
23. Saral Ltd. invited applications for issuing 25,000 equity shares of? 100 each at par.
amount per share was payable as fbllows :
On Application : { 20 per share
On Allotment : ( 30 per share
On First Call : T 25 per share
On Second and Final Call : { 25 per share
Applications were received for 24,000 shares and the shares were allotted to all the
applicants. AIl calls were made and were received as lbllows;
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200 Accountancy Xll
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 ()n shares
18,000 : Full amount
On 2,000 shares :( 75 Per share
()n 2,500 shares :{ 50 Per share
()n 1,500 shares :{ 20 Per share
'I-he company forfeited those shares on which less than ( 75 per share were received'
The forteited shares wcre reissued at ? 95 per share fully paid up.
Pass necessary journal entries for the above transactions in the books ofthe company \
OR
JJ K Ltd. invited applications for issuing 50,000 equity shares of ( l0 each at par' The
amount was payable as ft.rllows:
On Application: {2 Per share
On Allotment: {4 Per share
()n First and Final Call: Balance Amount
-l'his issue was oversubscribed tiree times. ApPlications for 30% shares were rejected
and money refunded. Allotment was made to the renraining applicans as follows:
Cat€gory No. of Sheres Applied No. of Sha.es Allotred (()
s0.00o .10,000
I

II ! i.0(x ) 10,000

llxcess monev paid by thc applicants who were allotted shares was adjusted towards the
strms due on all()tment.
Deepak, a shareholder belonging to O:rtegory I, who had applied Iirr 1,000 shares, failed
t,, piy the allotment monel Raju, a slrareholder holcling 100 shares, also failed to pay
the ailotrnent money. RaiLr belonged to Oategory Il. Shares o[ both Deepak and Raju
wcre forfeitctl immediately after aikrtnrent. Afterwards, first and final call was made and
was duly received. 'fhe lbrfeited sharcs of Deepak and Raju were reissued at { I I Pcr
share fully paid up.
Pass necessary.jott rnal elrtries fitr the alxrve transactittns in thc btnks ofthc c()nrPany
24. W and R are p:rrtners in a firm sharing profits in thc ratio ol 3:2. 'I'heir Balance Shect
as al 3lst March. 2016 was:rs fbllows:
Balance Sheet of W and R
&\ al 3In Mar ,20l6
Liabiliries (r) Assels (()
Sundry Creditors 20.(x)0 (laslt t 2.00()
Provision for Bad and Doubtlul '.1.(XX) Debt()rs I IJ,0(X)

Debts
()utstanding Salarl 3.0(x) St()ck 20,000
(;eneral Reserve 5.(XX) Furniture 40.000
Plant and Machiner)' .10,000
Capitals:
w 60,000
R 40.000 1,1)o.(xx)
l.:t0.(xxl 1.30.o{x,

()rr the irlxxe rlirtc, (lwas irtlrnittetl Iil l/{ith slrirrc irr tlrc Ptrrlits on tlte lirllruiltg telrrrs:
(i) O will br.ing t30,0(X) as lris capital rrnrl ( 10,000 lirt his slrrrlc ot gtxxlrvill l)remitrrrr.
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Sample Papers 20I
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 half of which will be withdrawn by W and R.
(ii) Debtors (1,500 will be written offas bad debts and a provision of57o will be created
on debtors for bad and doubtful debs.
(iii) Outstanding salary will be paid off.
(iu) Stock will be depreciatedby 107o, furniture by t500 and Plant and Machinery by
8%.
(i,) Investments oft2,500 not mendoned in the Balance Sheet were to be taken into
account,
(ui) A creditor of { 2,100 not recorded in the books was to be taken into accounl
Pass necessary journal entries for the above transactions in the books ofthe hrm on C's
admission.
OR
X, Y and Z were partners sharing profits in rhe ratio 3:2:1. On 3lst March, 2018, their
Balance Shect stood as under:
Liabilities (t) Assets (r)
Capitals: Cash at bank 70,000
x 7ir,0(X) Investments 50,000
Y 70,(xx) Patents 15,000
z i)0.0(X) 1,95,000 stock 25,000
Creditors 72,OO0 Debtors 20,t)00
(leneral Resen e 24,000 Buildings 75,000
Machinery 36,000
2.9 t .000 2,91,000
25. Ajay, Binod and Chandra entered into partnership on lst April, 2019 with a capital of
t3,00,000, ?2,00,000 and ?1,00,000 respecdvely. In addition to capital, Chandra has
advanced a loan of t 1,00,000. Since they had no agreement ro guide them, they facetl
following issues during and at the end ofthe year:
(i) Ajay wanted interest on capital to be provided @87c p.a. btrt Binod and (tlrandra <lid
not agree.
(ii) Chandra wanted that interest on loan be paid to him Qt, l0% p.a. but Ajay and Binocl
wanted to pay @ \Ea p.a.
(ai) Ajay and Binod dernanded to share profits in the ratio of their capital con6ibutiqn,
Chandra is not in agreement with rhis proposal.
(ir,) Binod, being working partner, demands a lump sum payment ot 140,000 as
remuneration for which other partners are not in agreement.
You are required to suggest and help them resolve these issues.
26. On 2nd March,20l6I- & B Ltd. issued 635,9% debentures of li>00 each. l,ass necessarv
journal entries for tIe issue ofdebenrures in the following situations:
(a) When debentures were issued at 57o discount, redeemable ar l0% prenrium.
(D) When debentures were issued at l2% premium, redeemable at 6% prenrium.

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202 Accountancy-Xll
 PARI-B
(Analysis of Financial Statcnents)
27. Which of the following will be classified as non-current Assets as Per Schedule II I, Part-I
of the companies?
(i) Investments in Shares (ii) Unclaimed Dividend
(iii) Capital work-in-progress (iu) Capital Advances
(zr) Public Deposits
(a) Only (i) and (rii) (D) Only (irr) and (u)
(c) (i), (iii) and (iu) (d) (rii), (iu) and (u)
OR
Which of the following is correct?
(i) Proprietary ratio establishes the relationship between shareholders' funds to total
assets of the firm.
ProprietorsFunds Sharehgldersl'unds
(ii) Proprietary Ratio Iirtll Assetr lirtal .\ssets

(iii) Trade PayablesTurnover *.u" =

###ffi;
(iu) The objective of computing this ratio is to determine the efficiency with which the
trade payables are managed and paid.
(a) AII (,); (,,), (iii) and (ru) (D) only (i)and (ii)
(c) only (r), (r,) and (,r,) (d) only (i)' (ii) and (n4
28. Ifthere are curent assets (52,000, current liabilities t22,000 and inventory {12'000,
the n liquid ratio will be:
(a) 1.2:l (b) 1.6: I
(c) 1.4: I (d) 1.8: I
29. I'urchase atrtl sale o[ se< ut-ities l>y a company is an operatrng acttvrty
(a) Manufacturing (D) Financing
(c) Service providing (d) Both (a) and (6)
OR
Cash proceeds from issue of preference shares will be shown in cash flow stat€ment
under:
(a) Operating Activities (D) Investing Activities
(r) Financing Activities (rJ) None ofthe above
30. What will be the Cash Flows from Investing Activities flrom the following information:
Paniculars Note No. 3l st March 3l!t March
2022 (r) 202r (?)
Investing in Shares of Delko Ltd 26,00,000 16,00,000

I l% LonS-term lnvcstments 3,00,000 r0,00,000

Plant and Machinert 12,00,000 9,00,000

()oodwill .1,(x),(xx) t,40,t)00

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Sample Papers 203
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 Additional Information:
(i) l0% dividend was received ftom Delko Ltd.
(ii) A machine costing <70,000 (Depreciation provided thereon T10,000) was sold for
60,000. Depreciation charged during the year was {50,000.
(a) Cash used in Invcsting Activities ?6,40,000
(b) Cash fiom Investing Activities (6,40,000
(r) Cash from Investing Activities {6,20,000
(d) Cash from lnvesting Activitics {6,20,000
31. Name the sub-heads under the head 'Non-current Liabilities' in the equity and liabilities
part of thc Balance Sheer under Schedule III, Parr I ol the Conrpanies Acr, 2013.
32. What do you understand by the term'liquidity Ratios'? Name any two liquidity Ratios.
33. l'ollowing hypothetical data is provided t() you abour Archie Refiigeration l,td.'and for
the 'Haider Refrigeration' fbr the years endcd on 3 I st March, 2022:
Particulars Archie Heider
Rehigeration Refri gcretion
Lrd. Lrd.
(i) Net Pr()fit after lnrerest and Tax ( l,a)0,(XX) ? I,20,000
(ii) Rate of Income 1ix 10('l 40(/.
(iii) l5% Debentures I I,(X).0(X)
(iv) l2% Debcntures < '.10 .oo.0 ( xr

(v) l27o Mortgage loan { 1,00.0{x)

On the basis ofthe available data, you are required to answer the following questions:
(i) What will be rhe'lnrerest coverage Ratio'of 'Archie Refrigeration Ltd.' ?
(ii) What will be the'lnterest coverage Ratit-r'of Haider Refrigeration Ltd.?
OR
ftluda t-td. has been successlully running its business in the field of manufacturing solar
heaters firr eight years.
The ratio of (lurrent Assets (( I1J,00,000) to Current t,iabilities (? 12,00,000) is l 5 : I .
The management of-the firm is interesred in mainraining a (lurrenr Ratio of2:1, by
paying olf a part ofthe current liabilities.
(i) What is the amount of 'Current Liabilities'to be paid to mainhin Current Ratio of
2:l?
(ii) State a reason why a low current ratio may not bc I'avourable fbr a company?
34. ()n the basis of inlirrmation given by Aradhana Ltd., prepare Cash Flow Statement for
the year cnding 3l st March, 2021 :

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204 Accountancy-Xll
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 Aradhana Ltd.
Raltnrc Slurt ts al 71n lfutrth. 2021
Particulars Note No. 3lst March 3l st March
2020 (r) 2o2l (r)
I. EQUITY AND LIABILITIES:
l Shareholdera' fhnds
(a) Share Capital 5,00,000 7,:10,000

(6) Resenes and Surplus 3,50,000 3,70,000

2. Non-CurrentLiebilitiea
Long-term Borrowings .1,(x).(x){) '1,(x).{)(x)

3. Curreat Liabilities
(a) 'frade Payables 3 3,60,000 4,60,000
(6) Short Tcrm provisions 4 3,25,000 :1,20,000

Totsl l1).:ti,{x)o 20.80.000

II. ASSETS
l. Non-Curr€nt Assets
(a) l'ixed fusets:
(i) Tingible Assets 4,s0,000 5,00,000
(ii) lntangible Assets (; 3,10,000 3,02,000
(r) I-ong-term l.oans and Advances 4,00,000 4,30,000

2. Currcnt A!8ets
(o) lnventories 2,70,000 2,90,000
(r)'frade Reccivables 2,40,000 2,60,000
(.) (lash and Oash Equivalents 2,65,000 2,98,000
lbtrl 19,35,0(X) '1o,80.(x)0

Notes of Accounts:
Particulars 3lst March 3lst March
2O2o (() 2021 (?)
l. Resene and Surplus
Sratement ol Profit and loss J.50.00o 3,70.000

2. Long-lem Borrowings
lffZ Debentures l.o0.o(x)

3. Tlade Payables
(lrcdirors 2,40,000 -3Jlgg19
2,60,000
Bills Pavable 1,20,000 2,00,000
3,60,000 4,60,000
1 Short,ifbrm Provisions
_lax 3,25,000 3.20.000
I'rovision [or
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Sample Papers 205 '\
.N\\,
 5. Tbndble Fixed Assets
l\l achineIv 5,50,000 6,60,000
1-ers: Provision for- Dcprcciation r,00,000 1,60,000
4,50,000 _!ps999
6, Intangible Fixed Assets
l'atcnts 3, t0,000 _i199911
Additional Informatian :
(i) Debentures were redeemed on lst April,2020
(ii) 'llx paid during the year {2,80,000.
ttr
Answers
l. (D) I'artner's (iapital AJc Dr.
-lb Partner's Current A../c
2. (c) Asseltion (A) is true bLrt Reason (R) is false.
3. (r) t2{) per shale
OR
(d) AII (t), (ii) anrl (ili)
4. (r) R's capital account will be debited by t24,{)01) and S and T's capital account will be
crcdited br {ti,000 and ? 16,000 r'espectivelr'.
OR
(a) T 10,000
5. (r) ?tiO,000
6. (D) (;apiral Reserve,Vc
OR
(r) debited bv ( 1,ir0,000
7. (c) t I,59,95,3(X)
8. (D) :'t : l-r

OR
(n ) ( 7,000
9. (r) { uli,320
ro. (d) ?27 .72O
I l.
(D) Irrterest on capital
12, (a) (lredited t() the Capital Reserve
13. (d) <r,r,400
14. (a) ttJ,tl0,000

rllr
206 Accountancy-Xll
 15. (a) Garg's Capital Ay'c will be credited by 12,760
OR
(a) Sanjana's Capital A'lc Dr.
To Naksh's Capital Ay'c
r6. (c) {2,00,000
17. Hidden Goodwill < 10,00,000
18. Hidden Goodwill < 60,000, Gaining Ratio I :5
OR
Alia sacrifice (24,000; Karan sacrifice (72,000; Shilpa gain {96,000.
f9. OR Capital Reserve { 10,000
22. Loss on Realisation (98,400
23. Capital Reserve I1,35,000
OR
Capital Reserve t2,500
24. Loss on Revaluadon {5,625
OR
Z's executor's ?80,250
27. (r) (r), (iri) and (ru) (d)
OR
(d) only (i), (ii) and (iu)
28. 1.8: I
OR
(d) Only (r), (ii) and (iz)
29. (D) Financing
OR
(r)
Financing Activities
30. (a) Cash used in Investing Activities (6,40,000
33. (i) 10.25 Times, (ii) 1.83 Times
OR
(,) 46,00,000
34. Cash Flow from Operating Activities {1,63,000; Cash used in Investing Activities
t I,40,000; Cash Flow from Financing Activities ( 10,000.
llt

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Sample Paper s 201
.\
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 t
, SAMPLE PAPER
[U NSO L\IED]
II
Time Allowed: 3 hours Max. Marks: 80

C,caeral Instructionsi Sot ( a! OBSE Sanl e Qu'sliort I\ftr 2022-21 (Itnsolt'ed)

PANT-A
(Accounting for Partnership Firms and Companies)
l. B Q and R are partners sharing profits in the ratio of 3:2:1. T'hey admitted U as a
I
partner for 7th share. On the date of U's admission. the Workmen Compensation
Fund was appearing in the books at ?72,000. A claim o[ (24,000 was accepted against
it. The amount of Workmen Oompensation Fund credited to Q's Capital Account
was:
(a) { 16,000 (D) {
24,000
(r) { 8,000 (d) ? 48,000
2. Read the following statements-Ass€rtion (A) and Reason (R). Choose one ofthe correct
alternatives given below:
Assertion (A): The amount of'Securities Premium Reserve can be utilised to iscue fully
paid-up bonus shares to the shareholders.
Reason (R): According to Section 52 (2) of the Companies Act, 2013, the amount
of Securities Premium Reserve can be used only for the prcscribed
Purposes.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
ofAssertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
3. Holt Ltd. forfeited 200 shares of ? 100 each, {60 per share called up, held by Charles.
He had paid {20 per share. Our of these, 150 shares were reissued to Andrew as (60
paid up fbr {50 per share. Amount transferred to Capital Reserve Account will be:
(a) (2,500 (r) (4,000
(c) ( I,500 (.r) <3,000

lll
208 Accountancy-Xll
h,,
 OR
Beta Ltd. agreed to issue 97o debentures of{100 each at {120 to the vendors for the
purchase of machinery worth { I,25,000.
In theJournal entry for the settlement ofpurchase consideration, which ofthe accounts
given will be credited?
(a) Machinery, 970 debentures
(D) Machinery, Cash
(c) 9% debentures, Machinery
(d) 97o debentures, Securities Premium Reserve
4. Sita and Geeta are partners in a firm sharing prolits and losses in the ratio of 3: l. On lst
April, 2021, they decided to change their proht sharing ratio to 3:2. On that date, Plant
and Machinery was appearing in the Balance Sheet at {99,000. At the time ofchange in
profit sharing ratio, it was found to be overvalued by l07o; At what value will Plant and
Machinery be shown in the new Balance Sheet?
(c) t 80,600 (D) { 87,800
(c) t 90,000 (d) ? 89,100
OR
When a panner withdraws a fixed amount in the beginning of each month upto
I year, then Interest on drawing: @5Vc p.a. is ( 1,625, the amount of drawings will
be;
(a) {5,000 (i) 43,000
(r) {2,500 (d) 14,000
5. Which of the f<rllowing items is related to credit side of Partners' Current Accounts?
(a) Interest on Partners' Capital (i) Share in Profit to Partners
(c) Salaries to Partners (d) All ofthe above
6. Which ofthe following statements is correct about debentures?
(i) If the company is nor able to obtain the necessary funds by issue ofshares, it obtains
the required amount by issue of debenrures.
(ii) Debentureholders generally have voting rights, and hence can participate in the
management of the company.
(iii) Interest is paid at a prescribed fixed rate to the debentureholders.
(iu) Debentures serve as a safe investment option because they are secured.
(a) Both (i) and (ii) (b) Both (iii) and (iu)
(c) All (i), (ia), and (iu) (d) All (r, (ii), (iir) and (iu)
OR
If debentures are redeemable within l2 months from the date of Balance Sheet or within
the period of ()perating (;y(le, they will bc shown as in the Ralance Sheet
(a) l-ong-terrn Borrowings under Non-(lurrent Liabilities
(r) Short-term Borrowings under Current Liabiliries
(r) Trade Payables under Current Liabilities
(d) None of the above

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Sample Papers 209
 ?. Karan, Kashif and Arun were partners sharing prohts equally. Karan died on 3lstJuly,
2022. Journal entry passed for Karan share of krss fbr the intervening period will be:
(a) Karan Oapital AJc Dr.
To Prolit and l.oss Suspense AJc
(l) Karan Oapital A,/c Dr.
1tr Kashif Capital A,,/c
(r) Karan Oapital A,/c Dr
-Ib
Profit and l.oss A/c
(d) Profit and Loss Suspense A,/c Dr.
-fo Karan Capital A,/c

8. Saurabh, Shirin and Sornesh are partners in a firm sharing prohLs and losses in the ratio
of 3:2: I . Somesh retires and the new Profit sharing ratio between Saurabh and Shirin is
3:2. The gaining ratio between Sarrrabh and Shirin will be:
(a) 3:2 (6) 3:l
(r) l:l (d\ 2:l
OR
Amit and Rohit are partners sharing profit in the ratio of l:2. Kaveri was the manager
who received the salary of {12,000 p.m. in addition to commission of l07o on net Profit
after charging such commission. 'Ionl remuneration to Kaveri amounted to ?2,(X'000.
Profit for the year before charging salary and commission was:
(a) t8,20,000 (r) 47,80,000
(r) ?6,60,000 (d) <8,04,000
Read thefolbuiag hypotMical situatioa atd arnswer the question a,o, 9 and l0 on i$ basis:
Willow l,td. is a company registered under the Companies Act,2013 registered with
an authorised capital of { 10,00,000 divided into t ,00,000 equity shares of { l0 each. It
estimated the Capital requirements at {7,50,000 to re-furbish the premises and stocking
the goods. 'l-he conrpany offered 80,000 shares fbr subscription to the public' out of
which 75,000 shares *'ere subscribed. All amounts were received except the final call of
( 2 per share on 3,000 shares. Following is the Balance Sheet of Willow Ltd. as per the
provisions ofSchedule Ill, Part I ofthe Companies Act, 2013:
Balance Sheet
a.s at ) I sl Murch, 2023 (An Exlrocl)

Particulars Note No. Current

Year ( ?)
r_QUTTY AND r.lABl t-r',r'tES
Shareholdcrs' Funds
(a) Share Oapital I

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2r0 Accountancy-Xll
 Notes to Accounts:
Particulars (?)
I Share Capital
..luthonwl (lfulal
10,00,0(x)

lt.00.000
Subscribed Capital:
Suhscibed anl fdfi paid :

...........Equity shares of { l0 each

Subuihed, lru,t not ful\ paid:
........... Equity shares of ? l0 each
lzss.' ...,......-.....---....-...---..

9. The'Subscribed and fully paid up'capital ofthe company is

(a) ( 7,50,000 (h ?7,25,000
(c) t7,24,000 (d) 7,20,000
10. 'Shareholders' Fund' will be shown in the Balance Sheet at an amount of ;

(a) t 8,00,000 (r) { 8,42,000

(r) ( 7,20,000 (d) t7,44,000
I l. In the absence ofpartnership deed, partners are entitled to receive interest on addirional
capital introduced at the rate of:
(a) No interest
(b) 47o p.a. on additional capital introduced
(c) 6Vo p.a. on additional capital introduced
(d) ll%o p.a. on the total capital
12. At the time ofretirement ofManu, from the firm ofShahid, Arora and Manu the balance
sheet showed a workmen compensation reserve of { 15,000 on the liabilities side after
meeting the employees compensation liabilities thereof. Rrr calculating the amounr
payable to Manu, the balance will be transl'erred:
(a) to the credit of the capital accounts of Manu only
(D) to the credil of the capital accounts of Manu, Arora and Shahid
(c) to the debit of the capital accounrs of Manu, Arora and Shahid
(d) to the credit ofthe capital accounts ofArora and Shahid only
13. B Q and R are partners sharing profits in the ratio of4:3;1. P retires and his share in
mken by Q and R equally. Calculare new profit-sharing ratio ofQ and R.
(a) l: I (bl 4:3
(c) 3 :4 (d) 5 :3
14. Robert and David are parrners in a 6rm capirals ol ?10,00,000 and {8,00,000
respectively. Max was admitred as a new parrner for
I th share in the profits ofthe firm.
Max brought ?6,00,000 as his capiul. The goodwill ofthe firm was valued at t8,00,000.
!l|'
F Sa rnple Papers 2I1 N
\N\
 Max was unable to bring his share ofgoodwill premium in cash. It was decided to treat
goodwilt without raising goodwill acc()unt. The account of goodwill credited to Robert
will be:
(a) ?80,000 (i) t I,20'000
(r) ( 1,60,000 (d) No amount will be credited.
15. Asha and Decpti werc partners in a firm sharing profits and lossses in the ratio of 3: l'
-fheir fixed capitals were t 3,00,000 and { 2,00,000 resPectively. They were entitled to
interest on capital @lO% p.a. The firm earned a profit of{20,000 during the year. The
amount of interest on capital credited to Deepti will be:
(a) t 12,000 (D) < 8,000
(c) { 20,000 (d) t 5,000
OR
Which ol the following will be credited to Profit and Loss Appr<.rpriation Ay'c?

(i) Interest ()tr Partners' (iapital

(ii) Inrerest on Partners' Drawings
(iii) Net profit from Profit and Loss A,./c

(iu) Partners'salaries
(a) Both (i) and (iii) (D) Both (ir) and (,,i)
(c) Both (iii) and (iu) (d) All (r, (ii), (iii) and (iu)
16. Rohan, Mohan and Sohan were partners sharing profits equally. At the time ofdissolution
ofthe partnership firm, Rohan's loan to the firm will be:
(a) Credited rr Rohan's Capital Account
(D) Debited to Realisation Accottnt
(c) Credited to Realisation Account
(d) Credited to Bank Account
17. Saloni and Shrishti were partners in a ltrm sharing profits in the ratio of 7:3. Their
capitals were {2,00,000 and ( I ,50,000 resPectively. They admitted Aditi on I st April,
2017 as a new partner for l/6th share in future profits. Aditi brought {l'00,000 as her
capital. Calculate the value of g<xrdwill ofthe firm and record necessary journal entries
for the above tralrsaction on Aditi's admission.
18. Mohan, Girdhari and Shyam were partners in a firm sharing profis and losses in the
ratio of 4:3:2. On 3lst March, 2022, Girdhari retired. After making all adjustments
on account of reserves, revaluation of assets and reassessment of liabilities, the balance
in Girdhari's Oapital Account stood at {5,00,000. Mohan and Shyam agreed to pay
Girdhari {5,90,000 in full settlement of his claim.
Calculate the value of goodwill of the firm and pass the necessary journal entry
for the treatment of goodwill on Girdhari's retirement without raising goodwill
account.
OR
A, B, C and D are parners sharing profits in the ratio of 3:3: 2:2 respectively D retires
and A, B and C decided to share the future profits in the ratio of3: 2: 1. Goodwill ofthe
firm valued at (6,00,000. Goodwill already appears in the book at ?4,50,000. The profit
'rllr'
2t2 Accountancy-Xll
 for the lst year after D's retirement amount to t1,20,000. ()ive the necessary journal
entries to record goodwill and to distribute the profits. Show your calculations clearly.
19. Sundranr l-td. purchased furniture for {3,00,000 tiom Ravindram Ltd. ? 1,00,000 were
paid by drawing a Promissory Note in favour of Ravindram l-td. 'l'he balance was paid
by issue of Flquity Shares of ( l0 each at a Premium of 25%.
Pass necessary Journal Entries in the books of Sundranr Ltd.
OR
X Ltd. invited applications for issuing 500, l2%c debentures of I 100 each at a discount
of 57c. These debentures were redeemable after three years at par. Applicatkrns for 600
debentures were received. Pro rata allotment was made to all the applicants.
Pass necessary journal entries for the issue of debentures assrrming that the whole
amount was payable with application.
20, Ayushi, Mansi and Deeksha share profits as 5 : 3 : 2. They decide to share their future
profirs as 4 : 3 : 3 with effect from I stApril, 2019. On this date, the lbllowing revaluations
have taken place:
Particulars Bool Value Revised Value
(?) ( r)
lnvestments 44,000 50,000
Plant and Machinery 50,000 40,000
l-and & Building 80,000 l,00,000
Outstanding llxpenses II,200 12,000
Sundry Debtors t,20,000 1,00,000
Tradc Credirors I,40,000 r,20,000
Pass the necessary adjustment entry to be made because of the above change in the
values ofassets and liabilities. However, old values will c()ntinue in the books.
21. Guru Ltd. invited applications for issuing 5,00,000 equity shares of tl00 each at a
premium of?5 per share, Bccause offavourable market conditions the issue was over-
subscribed and applications for 15,00,000 shares were reccived.
Suggest the alternatives available to the Board of Directors lirr tlre allotment of shares.
lcBsE (Ar) 20151
22. Tarun and Varun who are equal partners in a hrm, decided to dissolve the partncrship
as on 3l st March,20l8. On that date, their Balance Sheet was as follows:
Liabilities (r) Assets (()
Capital: 'hrun 10,000 Building 8,000
Varun .,Ug0Q 18,000 Machinery 2,000
(lreditors 3,400 Furniture 2,400
Stock 4,500
Sundry Debtors 3,840
Cash at Bank 660
21.-l(x) 2l.t(x)
It rlas agrccd that Yillun should take over thc buil<ling at an agrce<l prire ol'{5,500 arrd
that 'lirrrrn shorrl<l take over stock at a discourrt ol l07. 'llrc suntlrr debtors lealised
'!llt'
I Sample Patrer: 2r3
 95%, of the book value, while furniture realised ? 1,570 and machinery is sold for (500
only.
1-he expenses of realisation were {400. Prepare Realisatit>n Account at the time of
dissolution of the firm.
23. Saregama t-td invited applications for issuing 80,000 equity shares o[ ? 100 each at a
premium of( 10. -fhe amount was payable as follows:
On Application - { 30
On Allotment - ? 30 (including a premium of { l0)
()n lst call - t 30
()n Final (lall Balance
Applications of 1,20,000 shares were received. Allotment was made on pro rata basis
to all applicants. Excess money received on application was adjusted on sums due on
alltttment.
Dhwani, who was allotted 1,600 shares, failed to pay allotment money. These shares
were firrfeitetl immediately after lst call.
Shares of Dhwani were issued to Thrang for { 95 per share as 80 paid up. Pass necessary
journal entries in books of Saregama l-td. by opening Calls-in-Arrear, Calls-in-Advance
Accounts, if final call has not been made.
OR
(a) X t,td. forfeited l0 shares of{ l0 each, { 7 called up on which the shareholder had
paid application and allotment money of { 5 per share. Out of these, 8 shares were
re-issued to Y for (8 per share at ? 8 paid up pcr share. Record thejournal entries
firr Iirrfeiture and reissue of shares by opening calls-in-arrear account.
(b) l, t,rd. lbrfeited Mr M's shares who has applied fcrr 600 shares and was allotted 400
shares failed to pay allotment money of( 4 per share including premium of{ 2 on
which he had paid application money of{ 2 only. Pass necessary journal entries for
forfeiture of shares by opening Calls-in-Arrears Account.
24. A and B are partners in a firm sharing profits and losses in the ratio 3: l. They admit C
for a l/4th share on 3l st March, 2014 when their Balance Sheet was as follows:
Balance Sheet
Liabilitics (r) Assets ( r)
linrpkrvccs l\'ovi<lent ['und 17,000 Stock I5.000
Vl'()rknrcn's i)nll)ensation
( Reset ve 6,000 Debtors l-r0,(XX)

lnv(slnlrrt l'luclrraliort Reset-ve 4,100 1,essr Provisi<x lirr <Lrrrlrt Iir I

debts 2.(XX) 48.000
( lapit:rl 54,000 lnvestments 7.000
tI 35,000 Cash 6,100
fkndwill 40,000

_lJllllll
-L4191

'rllI
2r4 Accountancy Xll
-
 Ihe folbwing adjustments were agreed upon:
(a) C brings in t 16,000 as goodwill and proportionate capital.
(b) Bad debts amr)unred to { t,000.
(r) Market value of investment is {4,500.
(d) Liability on account ofworkmen's compensation reserye amounted to ?2,000.
Prepare Revaluation A,/c and Partners' Capital ,4y'cs.
OR
'G', 'E' and 'F' were partners in a hrm sharing profits in the rado ol 7:2:1. The Bzrlance
Sheet of the firm as on 3lst March, 2017 was as follows:
Balance Sheet of 'G', tE' and 'F'
as al ) lsl March, 2017
I"iabilities (r) Assets (()
Capitals: Goodwill .ro,(xx)

C 70,0( x) Land and Buildings tn),000

E 2{),0rx) Machinery .10,O00

F 10.(x)0 I,00,000 Stock 7,0(x)

General Rcserve 20,000 Debrors 12.(xx)
Loan from 'E' 30,000 Cash ir,0(X)
Creditors I4,000
I,ri4,000 _l-4gt!
'E' died on 24th Augus(, 2017. Partnership deed provides for the serrlemenr o['claims on
the death ofa partner in addition to his capital as under:
(i) 'fhe share of prolit of deceased partner to be compured upto rhe date of dearh on
the basis of average profits ofthe past three years which were (t10,000.
(ii) His share in profiVloss on revaluation of assets and reassessment of liabilities which
were as fbllows:
l-and and Buildings were revalued at t94,000, Machinery at {38,000 and Stock at
(5,000. A provision of was to be created on debtors for doubtful debrs.
(rii) 'I'he net amount payable to E's executor was translbrred to his [,oan Ac<r>unt, to be
paid later on.
Prepare Revaluation Account, Partners' Capital Accounts and ll's Executor's l,oan A,/c.
G and F decided to cotrtinue the business keeping thcir capital balances in thcir new
profit-sharing ratio. Any surplus or deficit to be transferred to currer)t accounts of the
partners.
25. Rohit, Raman and Raina are partners in a firm engaged in the business of supplying
schurl unif<rrms at reasonable prices. Their capital accounts on lst April, 2022, stood
at ?2,00,000, 11,20,000 and (1,60,000 respectively. Each partncr withdrew ?15,000
during the financial year 2022-23.
As per the provisions of their partnership deed:
(a) Interest on capital was to be allowed @) 570 per annum.
(D) Interest on drawings was to be charged @ 47c pcr annuur.

{ll
I Sarn ple P.rpc'l; 2I5
 (c) Profits and losses were to be shared in the ratio 5:4: l.
'fhe newly appointed accoununt ofthe hrm unaware ofthe above mentir.rned provisions
divided the nct profit of ? 72,000 for the year ended 3 I st March, 2023, equally amongst
the partners without providing for the terms of the deed.
As a senior accounts executive, you are required to Pass a single ad.justment entry to
rectify the error along with showing your working clealy.
26. (i) Neeraj Ltd. took over business ofAjay Enterprises on lst April 2020. The details of
the agreement regarding the assets and liabilities to be taken over are:
Particulars Book V.luc Ageed
(?) Valuc (t)
Ruilding 20.(x),(x)0 35,00,000
I'lant and Machiner,v 12,(x).0(x) 8,00,000
stock .1.(x).000 4,00,000
liade Receivables 5,O0,000 4,00,000
(;reditols 2,00,000 3,00,000
()urstanding llxpenses 50,0(x) I,00,000

It was decided to pay for purchase consideration as ?7,00,000 through Cheque and
balance by issue of2,00,000, 970 Debentures of{20 each at a premium of257o. Journalise.
(ii) On April l,2Ol9 Z Ltd. issued, 10,000, 8% Debentures ol'? 100 each at premium
of (rqa, to be redeemable at a premium of l0%, after 5 years. 'fhe entire amount
was payable on applicadon. 'fhe issue was oversubscribed to the extent of 10'000
'I'he
debentures and the allotment was made proportionately to all the aPPlicants.
securities premium amount has not been utilised fur any other pulpose during the
year. Give.iournal entries for the issue of debentures and writing tt{f loss on issue of
debenturcs.

PART.B
(Analysis of Financirl Statements)
27, Which ol the following is not included in Short-term Borrowings?
(rz) l-oans rcpayable on demand (i) Bank Overdraft
(r) Retirernent benefits to employees (d) Cash Clredit from Banks
OR
Which of the folkrwitrg statements is/are true?
(i) Analysis of Financial Statemcnts is a systelnatic prrrcess of identilying the financial
strengths and weaknesses r.rl the firm by properly establishing relationship between
the iterns of-Balance Sheet and Statement of Profit and [,<)ss.
(ii) Financial statements analysis is useful in assessing profitability, operating efEciency
and linancial stability of an enterprise.
(iii) Lenders ofthe business want to ensure themselves, whether their lunds are safe and
secured and the business is capable of making payment of interest regularly and will
also refund as pel agreement.

'rllI
2r6 AccoLrntancy Xll I
/h,,
 Choose the correct option:
(a) Only (i) (iii)
(b) OnlY
(c) Both (i) and (ii) (d) All (r, (ii) and (iii)
(
28. Ifthere are fixed assets 10,00,000, current assets {6,00'000' current liabilities {3'00'000
and net profit before'fbx and lnterest 12,60,000, then return on investment will be:
(a) t59a <b\ 25Ec
(c) 20Vo @) 5O7o
29. An example ofcash flow from operating activities is:
(a) Sale of Goods and Services
(D) Sale of Investments
(.) Interest paid on term deposit by a Bank
(d) Issue of debentures.
OR
Which of the following is always classihed under hnancing activities while preparing
cash flow statement for financing as well as manufacturing concern?
(a) Interest received (6) Purchase ofsecurities
(c) Purchase offurniture (d) Dividend paid
30. M Ltd. provides the following information:
Slst Merch, Slst M8rch,
Paniculars 2019 2018

Equity Share Capital (20,00,000 I18,00,000

l0% Debentures ?2,00,000 13,00,000

Securities Premium Reserve { 1,00,000 ?80,000

Interest paid on debentures during the year t20,000

How much amount will be shown under ltnancing activity for Cash FIow Statement?
(a) Cash lnflow t2,20,000 (6) Cash Outflow ?2'20,000
(c) Cash Inflow (80,000 (d) Cash Outflow (E0,000
31. Under which major headings and sub-headings will the following items be shown in the
Balance Sheet ofa company as per Schedule III Part I ofthe Companies Act' 2013:
(i) Net loss as shown by Statement ofProfit and Loss
(ii) Capital redemption reserve
(iii)Bonds
(ru) Loans repayable on demand
(u) Unclaimed dividend
(ui) Buildings
52. Calculate Revenue from operations ofBN Ltd. from the following information :

Current assets t 8,00,000

Quick ratio is 1.5:I
Current ratio is 2:t
'rll'
p $11r11ylP P6pq1'; 2t1 .\\
...\\\\\
 Inventory turnover ratio is 6 times.
Goods were sold at a profit of 25% on cost.
33. Read the following hypothetical extract ofRehan Limited and answer the given questions
on the basis ofthe same:
YEAR 2020 2019 20t8
AMOUNT ( r) (r) ( r)
Outstanding Expenses 50,000 40,000 25,000
Prepaid Expenses 3,00,000 2,50,000 3,50,000
Trade I'ayables 1tt,00,000 16,00,000 14,00,000
lnventories 12,(x),000 10,00,000 l l,00,000
Trade Receivahles I t,00,000 tt,00,000 10,00,000
(.iash in hand t 7,(x),000 12,00,000 15,00,000
Revenue fiom Operati()ns 24,00,000 I8,00,000 20,00,000
Cross Profit Ratio t2.ft l59o lSVa

(i) Calculate the Current Ratio ofthe company for the year 2020?
(ii) Calculate the Quick Ratio of the company for the year 2018?
OR
Debt-Equity Ratio and Current Rati<> of Hitech Ltd. are 2:l as on 3lsr March,2020.
The company has to enter into following transactions. But before entering into these
transactions, the management wants to know their effects on two important ratios as the
bank insists that the two ratios should nor be negatively aflected immensely.
Management has desired to know the inrpact ofthe rransactions on Debt-Equity Ratio
and Current Ratio and the reason why bank always insists on having ratios as above or
very near thereto.
The transactions are:
(i)
Purchase offixed assets of{2,00,000 payable alier 2 months.
(ii)
Purchase offixed assets of{5,00,000 payable after 30 months.
34. From the following Balance Sheet of Anuradha Lrd. as ar Slst March, 2022, cdculate
Cash litlm Ope rating Activities:
Balance Sheet of Anuradha Ltd.
u al 3lst March, 2022,
Particulars Note 5r.3.2022 3tr.2021
No. { t
I. Equity aad Liabilitiec:
l. Shareholders' Funds
(a) Share Capital 3,(D,000 2.i)0.0(X)
(0) Reserves antl Surplus 1.50,000 I.(X).(XX)

2. Non-(lurrentl-iabiliries
l-(rlg-lernr Borrowings J 75.0(X) '.1.-, .( X )( )

' ll|
f
218 Accountancy-Xll
 3. Current Liabilities
(a) Trade Payables 2ir.( XX) 50.000

(D) ()ther Current Liabilities I .:r0.(XX ) 7i,,(Xn)

Tbtal {i,o0,(}(x) ir.(|0.000

II. Assets:
l. Nou-Current Asscts
Fixed Assets
5 .1,50.(XX) 2.71,0(x)
(a) Tangible Assets

(r) Intangible Assets 6 2.1,(x)0 !0.(xx)

2. Current Asscts
(a) lnventories 7(;.(,00 I,(X),0(X)

(D) Trade Receivables 20,0(x) 10,(x)0

(r) Cash and Cash Equivalens 3{).O00 90.{)00

Total (i (x) (XX) 00 (x)0

Notes of Accounts:
Noae Particulars 3t.5.2022 31.3.2021
No. I t
I Share Capital
Equity Share Capital :t.00.(xx) 2,ir 0,0u)

Reserves and Surplus

Surplus (Balance in the I.50.(XX)
Statement oI Profit and l,oss)
3 1-ong-term Borrowings
-IJlLlJ.ltIl
l2% Debentures 75.(XX) '.15.(x x )

1 Other Current Liabilities

()utstanding Rent 50.(xx) 75.{X)0
'fangible ,{ssets
(a) Land and Building ,1,00,000 2.(X).1)00

(D) Furniture 50,000 7.1.000

{.4){).(XX)

t; lnrangible Assets
Patents 2.1.( x x )
-4gI1
!{i,(x)0

A ddilional I nformation :
(r) <50,000, l2% Debentures were issued on 3lst March,2022.
(ii) During the year (24,000 was charged as depreciati<>n on furniture

Itt
rlll

Sample Papers 219

 Answers
l, (a) ( 16,000
2. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explenation
ofAssertion (A)
3. (r) ( 1,500
OR
(d) 9% debentures, Securities Premium Reserve
4. (c) t 90,000
OR
(a) t5,000
5. (d) A.ll of the above
6, (c) All (i), (iii), and (iu)
OR
(l) Short-term Borrowings under Current Liabilities
7, (a) Karan Capital Ay'c Dr.
To Profit and Loss Suspense A/c
8. (a) 3:2
OR
(d) {8,04,000
9. (d) 7,20,000
r0. (d) 7,44,000
ll. (a) No interest
12. (D) to the credit ofthe capital accounts ofManu, Arora and Shahid
r3. (d) 5:3
14. (a) ?80,000
15. (r) t 8,000
OR
(6) Both (ii) and (iir)
16. (d) Credited to Bank Account
17. Aditi's share in goodwill <25,000.
18. Girdhari's share ofgoodwill <90,000.
OR
Adj. for Goodwill: Dr. As Capital A'/c t1,20,000, B's Capital Ay'c t20,000
Cr. C's Capital Ay'c t20,000, D's Capital A,/c t I,20,000
19. No. ofequity shares to be issued 16,000
OR
Discount on Issue of Debentures
{2,500: Amount Refunded {9,500.

tl

220 Accountancy-Xll
 20. Dr. Deeksha's Capital A,/c, Cr. Ayushi's Capiul A./c by ( 1,520
22. Realisation Loss t5,872
23. Allotment money received ( I I,76,000, Capital Reserve ( 72,000
OR
(a) Capital Reserve t40, (b) Calls in-Arrears Ay'c ( 1,200
24. Revaluation Loss ?1,000, Partners' Capital Accounts: A (39,450, B t30,150, C {23,200
OR
Revaluation Profit t29,700,
Partners' Capital A,/cs: G (76,790, F ? 10,970
E's executor's Loan A,/c: {58,340
25. Dr. Raina's Capital A'lc ( I 1,410 Cr. RohiCs Capital A,/c { 10,150
Cr. Raman's Capital ,4,/c ( I,260
26. (i) Goodwill < I,00,000
(ii) Loss on Issue of Debentures ? 1,00,000
27. (r) Retirement benefits to employees
OR
(d) All (,), (ii) and (iii)
28. (c\ 207a
29. (a) Sale ofGoods and Services
OR
(d) Dividend paid
30. (c) Cash Inflow {80,000
32. Revenue from operations { 15,00,000
33. (i) 2.32:l (ii) 1.75:l
OR
Effect on Debt-equity Ratio (i) No change (ii) Increase
Effect Current Ratio (i) Decrease (ii) No change
34. Cash from Operating Activities ?43,000
llt

!lll

-
Sample Papers 22r
N"\
 SAMPLE PAPER
r
,
12
[UNSOLIIED]
Time Allowed: 3 hours Max. Marks: 80

General Instructiotrs:. Stnc t: OllSIi l]?n!fu Qucttion lhlrr-2022-2J (l'rt:olutl).

PART-A
(Accounting for Partnership Firms and Companies)
l. Rajesh and Vikram are partners sharing proht and k)sses in the rado of 3:2. They
admitted Varun as a new partner. Rajesh surrendered th of his share and Vikram th of
share in favour of Varun. 'I'he sacrificing ratio will be:
(a) 3:5 (D) 2:3
(c) l:3 (d)3:l
2, Read the following stateme nts-Assertion (A) and Reason (R). (lhoose one ofthe correct
alternatives given below:
Assertion (A): Pro rata alk)tment is proportionate alk)tment where applicans are
allotted less number of shares than applied for.
Reason (R): The balance of the 'Forfeited Shares Accouni' is added to the Share
Capital under'Subscribed Capital'.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reasur (R) is the correct explanation
ofAssertion (A)
(D) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Asserti()n (A)
(r) .dssertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
-l-he
3. authorised capital of a company is divided into 8,000 shares of { 100 each. -I'he
company has issued 4,000 shares to the public and reccived applications for 4,800
shares. The amount ofissued capital will be:
(c) (4,00,000 (D) ?8,00,000 (c) (2,40,000 (d) {4,80,000
,OR
X l,td. purchased sundry assets of the value of { I,90,000 from another company and
agreed to make thc payment by issuing 2,000, l0Vc I)ebentures of X Ltd. company
purchased sundry assets ofthe value of ( 1,90,000 from another company and agreed to
make the payment by issuing 2,000, l07o Debentures of{ 100 each at a discount of57o.
At the time of allotme nt of debentures, which ol the following accounts will be debited
by ( 10,000?
(a) Vendor's A'/c (b) l0% Debentures A./c
(c) Goodwill A,,/c (d) Discount on Issue of Debentures
'lllll
222 Accountancy-Xll
/il,,
 4. The goodwill of a hrm is t I,08,000. lt was valued at 4 years' purchase of super profits.
The capital employed by the firm is {4,00,000 and the normal rate ofreturn is 107o. The
average profit of the firm is:
(a) t 47,000 (6) I 67,000
(r) t 40,000 (d) < 49,000
OR
Yug, Aarav and Nadir are partners in a firm. At the time ofdivision ofprofit for the year
there was dispute between the partners (due to absence ofdeed); profits before interest
on partner's capital was { 1,20,000 and Yug demanded interest @24% p.a. on his loan of
{ 16,00,000. Amount payable to Yug, Aarav and Nadir respectively will be:
(a) t40,000 to each partner.
(D) Loss of? 88,000 for Yug, Aarav and Nadir will take home ?2,96,000.
(c) t 8,000 for Yug, { 1,04,000 for Aarav and { 8,000 for Nadir.
(d) t 48,000 to each partner.
5. Which of the following items is included on debit side of Profit and Loss Appropriation
Account?
(a) Interest on partners' Capital (D) Share in profit to partners
(c) Salaries to Partners (d) All ofthe above
6. Which of the following statements is/are true?
(i) Nominal Capital means such capital as the company issues from time to time for
subscription.
(ii) When the entire face value (nominal value) of the shares has been called by the
company and is also received by the company, these shares will be classified and
shown as 'Subscribed and fully paid-up'.
(iii) In case of'Subscribed but not fully paid-up', the company has called-up the entire
nominal value ofthe shares but it has not received the full amount.
(iz) Capital Reserve is shown under the head'Reserves and Surplus'on the equity and
liabilities side of the Balance Sheet.
(a) Only (i) and (iii) (D) Only (ii) and (iii)
(c) only (ii), (iii) and (iu) (d) only (i), (ii) and (iii)
OR
In case of issue ofdebentures as a collateral security for kran fiom the bank, which account
will be debited?
(a) Bank account (6) Bank loan account
(r) Debenture account (d) Debenture suspense account
7. In case of death of a partner, when the amount due is transferred to his executor's
account, thejournal entry will be:
(a) Partner's Executor's y'y'c Dr.
To Deceased Partner's A,./c
(D) Deceased Partner's Capital .Ay'c Dr.
To Deceased Partner's Executor's Ay'c
(.) Deceased Partner's Capital A,,/c Dr.
To BanlJCash A,/c
(d) None of these
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I Sample Papers 223

N
 8. A, B and C were partners in a firm sharing profits and losses in the ratio of5 : 3 : 2.
C retired and his capital balance after ad.iustments regarding reserves, accumulated
profitVlosses and his share ofgain on revaluation was (2,50,000. C was paid t3,22,000
including his share of goodwill. The amount credited to C's capital account, on his
retirement, for goodwill will be :
(a) (72,000 (r) < 7,200
(c) ( 24,000 (d) t36,000
OR
As a result ofan error, Sohan had been paid {3,600 more and Nupur had becn paid
{3,600 less. For the rectification of the error, in a partnership firm, following journal
entry would be passed:
(a) Sohan's Capita.l A,/c Dr.
To Nupur's Capital A,/c
(D) Nupur's Capital A,/c Dr.
To Sohan's Capital A,/c
(c) Profit and Loss Appropriation A,,/c Dr.
To Nupur's Capital A,/c
(l) Sohan's Capital A,/c Dr.
To Profit and Loss Appropriation A,/c

Read thcfobtuittg hypothetical rituatian aad aaaaer qucstiot no. 9 and 10.
Hi Tech Ltd. issued 20,000 shares of ( l0 each at a premium of ?2. All the amounts
due were received on due dates except the allotment and call money on 200 shares of
Shashank.
The amount was payable as follows:
On application {4 per share, on Allotment ?5 per share (including premium)
On First and Final call ?3 per share. Shashank's shares were forfeited.
Followingjournal entry was passed:
Journal
Date Particulars L.F. Dr. ( l) Cn (()
...1.o00
Equity Share Capital A,./c l)r'
l)r:

(Being 200 shares ofSushant frrrleired lirr non-

payment of allotment and call money)

9. Which of the folkrwing accounts will be debited and by what amount?

(a) Securiries Premium Reserve A,,/c by (400 (D) Forl'eited shares Ay'c by ?2,400
(c) Equity Share Allotment A,/c by ?600 (d) Both (a) and (c)
10. Forfeited Shares A"/c will be:
(a) Debited by {2,400 (6) (lredited by (2,400
(c) Debited by {800 (d) (lredited by ?tt00
'rit'
224 Accountancy-Xll
 I l. Which of the following statements is incorrect in context of partnership?
(a) lnterest on partner's drawings is to be given @lwa p.a. if the partnership deed is
silent about the rate of interest.
(b) Fixed capital accounts always show a credit balance while fluctuating capital accounts
may show a credit or debit balance.
(c) Every panner including sleeping partner will get equal share ofprofit in the absence
of a deed.
(d) Debit balance of a partner's current account would indicate that the partner has
withdrawn in excess ofwhat was due ro him. So, it will be shown on the assets side of
balance sheet.
12. Match the following in case ofdeath ofa partner:
(i) Ceneral Reserve (A) Retiring Partner's l-oan &c is credited
(ii) Accumulated Losses (B) Retiring Partner's Loan ly'c is debited
(iri) For payment of insta.lment (C) Credited to Retiring's Partner C.apital ,4y'c
(iu) lnterest pmvided on due amount (D) Debited to Retirings Panner Capital.4r/c
(a) (,) (D), (,, (c), (t,, (A, (n,) (B) (r) (,) (c), (t, (D), (,,,) (A), (iu) (B)
(c) (,) (c), (,,) (D), (,,,) (B), (,u) (A) (d) (t) (D), (,,) (A), (,,, (B), (,u) (c)
13. A, B and C share profits in the ratio of l/2, 3/10 and l/5. C dies. The gaining ratio ofA
and B will be:
(a) l:l (D)l:3
(c) 5:3 (d) 3: I
14. Li and Mi are panners in a business sharing profits and losses in the ratio of 4: l. Ni
is admitted as a new partner in the firm. Li surrendered th from his share and Mi
I
surrendered Ic t n'o- his share in favour of Ni. What will be Ni's share ofprofits?
(,r) 2 ...
0) I
\
ll
ll
(() so (l) r

30
15. Pari and Kuhu are partners in a firm. Pari is entitled to get a commission of 25% of net
profit after charging such commission. Net profit before charging such commission is
{90,000. Pari will get as commission:
(a) ?18,750 (r) ( 22,500
(r) t18,000 (d) (30,000
OR
X, Y and Z are partners sharing profit in 6 ; 4 : I ratio. X guaranteed Z of minimum
profit of? 15,000. Firm had profit of?99,000. X's share in profit:
(a) t15,000 (r) {30,000
(c) ?45,000 (d) <48,000
16. Sundry creditors amounted to (9,000 were paid at a discount of57o. Realisation account
will be debited by:
(a) t9,000 (r) {8,550
(c) ?450 (d) t9,450

'rliI
I Sarnple Papels 225 N
.t\\\\
 17. Anrrbhav and Babita are partrlers in a firm sharing profis in the ratio of 3 : 2. On
,jrpril I, 2017 they admit l)ecpak as a new partner for' 3/13 share in the profits. Deepak
contributed the follou'ing assets t()wards his capital and fi>r his share of goodwill: Iand
?90,000, machinery (70,000, stock {60,000 and debtors t40,000. On the date of
adnrission of Deepak, the grxxhill of the firm was valued at {5,20,000, which is not to
appcar in the books. Record necessary journal entries in the books of the firm' Show
your calculations clearly.
18. Suresh, Ramesh and 'llshar werc partners in a ltrm sharing profits in the ratio of
6:5:4. Rarnesh retired and his capital after making adjustments on account of res€rves,
rcvaluation of assets and reassessment of liabilities stood at ?2,50,400. Suresh and
'lirshar agreed to pay him a 2,90,000 irr lull settlement of his clainr.
P;rss necessary journal entry for the treatment ofgoodwill. Show workings clearly.
OR
Ram, l,axman and Bharat are parttrers sharing profits in the ratio of ll:2:l. Goodwill is
appearing in the burks at a value of'? 1,80,000. Laxman retires and at the timc of his
retirement, goodwill is valued at t2,52,000. Ram and Bharat decided to share future
-l
profits in the ratio of2: t. hc profits {irr the first year after Laxman's retircment amounts
to ? 1 ,20,000. Give the necessary Jorrrnal Entries to record got will and to distribute the
profits. Show your calculations clearly.
19. Rohit Ltd. purchased Machincry from Rohan & Co. for 13,50,000. A sum of ?75,000
was paid by the means of a bank drafi and for the balance due Rohit Ltd. issued equity
shares of{10 each at a premium of l0%.Journalise the above transactions in the books
of Rohit Ltd.
OR
Viiay l-axmi Ltd. invited applications for issuing 10,000; l2% Debentures of{ l0O each
at a premium of{70 per debenture. l-he full amount was payable on application.
Applications l'ere received tor 13,500 debentures. Applications for 3,500 debcntures
wcre rejected and application m()ney was refunded. Debentures were allotted to the
renraining applications.
['ass necessary Journal entries in the books of Viiay Laxmi Ltd. for the above
transactions.
20. Sahil, Babita and Vishal are partners in a firm sharing profits and losses in the ratio of
l-r : 4 : 2. On lst April, 2019, they decided to share profits in future in the ratio of4 :
3 : 2. On this date, (ieneral Reserve was {34,900 and loss on revaluation of assets and
liabilities was {5,200. lt was clecided that adjustment should be made without altering
the figrrres of assets and liabilities in the Balance Sheet. Make adjustment by passing a
single journal entry.
2t. State any three purposes other than 'issue ofbonus shares' for which securities premium
can lrc utilised.
22. t. and M were partners in a firm sharing profits in the ratio of2:3. On 28th Feb., 2018
the firm was dissolved. Aftcr transferring assets (other than cash) and outsiders' liabilities
to realisation account, you are given the following information:
(a) A creditor for { 1,40,000 accepted building valued at ? I,80,000 and paid to the firm
{40,000.
(6) A second creditor for ? 30,000 accepted machinery valued at { 28,000 in full setdement
ol his claim.
'llll'
228 Accountancy Xll I
 (/) A third creditor amounting to (70,000 accepted ?30,000 in cash and investments of
the book value of ?45,000 in full setdement of his claim.
(d) [,oss on dissolution was ?4,000.
Pass necessaryjournal entries for the above transactions in the books ofthe firm assuming
that all payments were made by cheque.
23. Excel Company l,imited made an issue of I,00,000 equiry shares ol'? l0 each payable as
follows;
On Application (2.50 per share
On Allotment {2.50 per share
On First and Final Call {5.00 per share
X, the holder of 400 shares did not pay the call money and his shares were forf-eited.
200 of the forfeited shares were reissued as fully paid at {8 per share. Draft necessary
journal entries and prepare Share Capital Account and Share Forlbited Account in the
books of the company.
OR
MCS Ltd. issued 40,000 shares oft l0 each payable at ( 2 on application, {4 on allotment
and balance in two equal instalments.
Applications were received for 80,000 shares and the allotment was made as follows:
(i) Applications of50,000 shares were allotted 30,000 shares.
(ir) Applications of30,000 shares were alloued 10,000 shares.
Neeraj to whom 600 shares were allotted from category (i) failed to pay the allotmenr
money.
Pass the necessaryjournal entries up to allotment only.
24. A and Z are partners in a firm sharing profits in rhe rado of 7 : 3. Their Balance Sheet
as on 31.3.2016, was as follows:
Balance Sheet of A and Z
av al ) 1-j-2016
Liabilities ( t) Assels (r)
Sundry Creditors 60,000 Cash 36,000
Provision for Bad Dcbts 6,000 Debkrrs 54,000
Outstanding Wages 9,000 Stock 60,000
General Reserve 15,000 Furniturc I,20,000
Oapitals: Machinery I,20,000
A 1,20,000
z 1.80.000 J,(X),000
:i.1x ).(xx ) l,1ro.(xx)

On the above date, B was admitted f,r. th share in the profirs on the fbllowing rerms:
I
(i) B will bring t90,000 as his capital and ?30,000 as his share of gotdwill premium, half
ofwhich will be withdrawn by A and Z.

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Sample Papers 221 N

N\\\\
 Debtors ?4,500 will be written offand a provision of57c willbe created on debtors for
(ii)
bad and doubtftrl debts.
(iii) Outstanding wages will be paid off.
(irr) Sttrk will be depreciated by l0%, furniture by ( I,500 and machinery by 87c.
(r, Investments ot(7,500 not shown in the Balance Sheet will be recorded.
(ui) A creditor of (6,300 not recorded in tie books was to be taken into account
Pass necessary journal entries for the above transactions in the books of the firm on B's
admission.
OR
Sameer, Yasmin and Saloni were partners in a firm sharing profits and losses in the ratio
of 4 : 3 : 3. On 3l st March, 2016, their Balance Sheet was as follows:
Balance Sheet of Sameer, Yasmin and Saloni
&s at ) lst March, 20l6
Liabililies (() Asscts (()
(lreditors r,10,000 Cash 80,000
(;eneral Reserve 60,000 Debtors 90,000
Oapitals: I-ess: Provision 10.000 80,000

Sameer 3,00,000 StocL 1,00,000

Yasmin 2,50,000 Machinery 3,00,000

Saloni 1.50.000 7,00,000 Building 2,00,000

Patents 60,000
Profit and Loss Account 50,000
IJ.70.000 8,70,()00

on the above date, Sameer retired and it was agreed that:

(i) Debtors of(4,000 will be written offas bad debts and a provision of5% on debtors for
bad and doubtlul debts will be maintained.
(ii) An unrecorded creditor of{20,000 will be recorded.
(iii) Patents will be completely written offand 57c depreciation will be charged on stock,
machinery and building.
(irr) Yasmin and Saloni will share luture profib in the ratio of3 : 2.
(u) ()<ndwill of the firm on Sameer's retirement was valued at t5,40,000.
Pass necessary journal entries flor the above transactions in the books of the firm on
Sameer's retirement.
25. Om Parkash and Som Parkash, two friends commenced business in partnership on lst
April, 2022. No agreement was made either oral or written. They contributed (2,00,000
and t 1,50,000 respectively as capital. On lst October, 2022 Om Parkash advanced to the
firm ( 1,00,000 as loan.
On l5th November, 2022 Om Parkash met with an accident and could not attend the
partnership business up to t5th February,2023. The firm made a profit of(83,000 for
thc year ended 3 I st March, 2023, prior to the following claims, disputes having arisen
between them for sharing prolits:

rlll
228 Accountancy-Xll
 Om Parkash claims:
(a) Interest on his capital and on loan @llVo p.a.
(6) Profit sharing in capital ratio.
Som Parkash claims:
(r) They should share profits in equal ratio.
(d) He should be allowed salary of { 10,000 p.m. for the period of Om Parkash's illness.
(r) Interest on capital and on loan should be given only @67o p.a.
(i) You are required to setde the dispute between tlrem by assessing the validity of their
claims while considering.
(ii) Prepare profit and Loss Appropriation Account for the year ended S lst March, 2023.
26. (a) Mohit Ltd. took over assets of(8,40,000and liabilities of(80,000ofRam Ltd. aran
agreed value of {7,20,000. Mohit Ltd. paid to Ram Ltd., by issue of97o debentures
of (100 each at a premium of20%. Pass necessary journal entries to record the
above transactions in the books of Mohit Ltd.
(b) GiveJournal entries in each ofthe following cases ifthe face value ofa 97o debenture
is (100.
(i) A debenture issued at I 100 repayable at ( 105.
(ii) A debenture issued at ? 105 repayable at { 105.

PANI-B
(Analysis of Financial Statemenc)
27. Unclaimed dividend is shown under the head./subhead:
(a) Other Current liabilities (D) Short-term provision
(c) Contingent liability (d) None ofthese
OR
Financial analysis is insignificant because it:
(i) ignores qualitative aspect
(ii) suffers from the weaknesses offinancial statements
(iii) judges operational efEciency
(iu) spots only symptoms but does not arrive at diagnosis
Choose from the following options:
(a) (i) and (ii) (D) (rr) and (,t,)
(c) (,), (ti) and (tii) (d) (,), (,,) and (,u)
28. To calculate 'Return on investment', capital employed denotes:
(a) Net fixed assets
(6) Current assets - current liabilities
(c) Gross lixed assets
(d) Fixed assen + current assets - curlent liabilities

'rllI
F Sarrple Papers 229 N
.,,\\\\\,
 29. Which ofthe following is not a source ofcash?
(a) Purchase ofa tangible asset
(6) Funds fronr operations
(.) Issue of l,ong-term Borrowings (Debentures)
(d) Sale of plant
OR
Cash flow from operating activities are derived from the activitia of the
enterprise.
(a) Marketing Activities (D) Transactions within Cash and Bank
(r) lnvesting Activities (d) Principal revenue producing activities
30. X Ltd. made a proht of t6,00,000 before considering -depreciation on machinery
{50,000 and loss on sale ofcomputer { 10,000. State the amount to be shown in operating
activities in (lash Flow Statement:
(a) Cash lnflow t6,00,000 (D) Cash Outflow {6,00,000
(r) Cash Inflow {5,40,000 (d) Cash Outflow <5,40,000
31. Under which major sub-headings the following items will be placed in the Balance Sheet
ofa company as per Schedule IIl, Part I of the Companies Act, 2013:
(i) Accrued lncomes
(ii) Loose'Ibols
(iii) Provision for Employees benefits
(tu) Unclaimed dividend
(r) Short-term loans
(ui) Long-term loans
32. The quick ratio ofa company is 1.5: L State with reason which ol the following transactions
would (i) increase; (ii) decrease or (iii) not change the ratio:
(l) Paid rent ?3,000 in advance.
(2) 'frade receivables included a debtor, Shri Ashok who paid his entire amount due
19,700.
33. Max. Ltd. wants to assess the long-term solvency ofthe firm by establishing a relationship
between the shareholders' funds to the total assets of the firm. From the following
information, calculate the required ratio:
Total assets to Debt ratio is 2: l. Debt is <5,00,000. Equity share capital is 0.5 times of
debt. Preference Share capital is 257o of equity share capital. Net profit before tax is
110,00,000 and rate of tax is 4070.
OR
Tesco Ltd.'s management is interested to know how many times the interest charges are
covered by the available profits of the company.
From the tbllowing information, calculate the required ratio that will be helpful to the
management for the mentioned purpose:
Profit after interest and tax (7,50,000
Rate of income tax 25Vo
99c Debentures ?8,00,000

'rllu
230 Accourtancy XII I
 34. From the following Balance Sheet o[ Mayur Ltd. and the ad<litional inflormation as ar
Slst March,20l8, prepare a (lash Flow Statement:
Balance Sheet of Mayur Ltd
u al ) I sl March, 2018
Particulars Notc 3l st 5l st
No. Merch, March,
2018 (?) 20r7 (?)
I. EQUITY AND LIABILITIES
l. Shereholders' Fhnds
(a) Share Capital ]0,00,000 20,00,000
(6) Reserves and Srrrplus I 3,00,000 4,00,000
2. Non-current Liabilities
(a) Long-term Borrowingg .1,00,000 3,00,0(x)
3. Current Liabilities
(a) Trade Payables 1.70,000 2,50,000
(6) Short-term Provisions 3 76,000 64,000
lbtal J9,.1(;.(XX) is.15999-
II. ASSETS
l. Nod-Current Assets
(a) Fixed ,{ssets
(i) Tangible ,{ssets I !1).(X r.(XX) 23,00,000
(ii) Intangible Asscts I I { Io ()
1,60,000
(6) NoD-current Invesrments

2. Curr€nt Assets
(a) Inventories :.20.0(x) 2.:10.(xx)
(6) Trade Receivables | .10.0(x) I,:10.(xx)
(r) Cash and Cash Equivalcnrs .1..1(i.(xx) I,9.1.(XX)

Total :r1)..1(i,0(x) 30,14,000

Notes to Accounts
Particulars 3l st S lsi
March, March,
20lE ( ?) 2017 ( r)
l. Reseres and Surplus
Surplus, i.e., Balancc in Stal(,nl(.!lt ol l)r'olit and l-oss 3.00,000 ,1.00,000

:rJ)0J00 ,1,00,(xx)

2. Long-term Borrowings
99 l)ebentures .1,(X),000 3,00,000

IJM!g_ :.i,00,(xx)

lll
F Sit tl lrle P.tpr'r', 231
N
 3. Short-term Provisions
l\rrvision f<rr- T:oiation 76,000 64.0(X)
7(i.000 _qll,pl]-
4. Thngible Assels
Machinery :t(;,(x).(xx) 28,00,000

Accumulated l)epleciation (7,00,{)00) (5,00,000)

21),00.000 23,(X),(XX)

5. Intangible Assets
(irxrdwill 2.70.000 I,60,00o
2.70.000 I
"60'(x)('
Additianal ltfonnolion:
(i) During tlre year, a piece of machinery costing (4,00,000 on which accumulated
depreciation was (73,000 was sold for t3,10,000.
(il) 97o Debentures of{ 1,00,000 were issued on 3lst March,20l8. [CBSE 2019 (67i3ll )l

!t!
Answers
l. (d) 3: I
2. (h) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanadon of Assertion (A)
3. k) {4,00,000
OR
kt\ Discount on Issue of Dehentures
4. (h) ? 67,000
OR
(r) ( 8,000 for Yug, ( 1,04,000 for Aarav and { 8,000 for Nadir.
5. k/) All of the above
6. (.) only (ii), (iir) and (iu)
OR
(1) Debenture suspense account
7. ltn Deceased Partner's Capital Ay'c Dr.
'fb Deceased Partner's Executor's Ay'c

8. ((l) < 72,000

OR
kr) Sohan's Capital AJc Dr.
.Ib
Nupur's Capital A,/c

'rllI
232 Accountancy-Xll
 9. (a) Securities Premium Reserve A,/c by t400
10. (d) credited by ?800
ll. (a) Interest on partner's drawings is to be given @10% p.a. if the partnership deed is
silent about the rate of interest.
12. (c) (,) (c), (,,) (D), (t,,) (B), (tz) (A)
13. (c) 5:3
ll
ra. (c) q6
15. (r) t 18,000
OR
(d) t48,000
16. (r) t8,550
17. Premium for goodwill brought in by Deepak 11,20,000
lE. Ramesh's share ofGoodwill {39,600
OR
Adjustment of goodwill through partners' capital accounts:
Dr. Ram's Capital Account t42,000, Bharat's Capital
Account {42,000, Cr. Laxman's Capital Account {84,000
19. No. ofequity shares to be issued 25,000,
Securities Premium Reserve t25,000
OR
Securities Premium Reserve {7,00,000
20. Dr. Vishal's Capital ly'c (1,200, Cr. Sahil's Capital ,4,/c 1300, Cr. Babita's Capital ly'c by
{900.
23. Capital Reserve t600.
OR
Net Amount received on allotment {78,400
24. Revaluation Loss transferred to: As Capital A,./c { I1,812.50,
Z's Capital A,/c t 5,062.50
OR
Amount Payable to Smeer {4,76,680
25. Profit transferred to Om Prakash (40,000, Som Prakash t40,000
26. (a) Capital Reserve {40,000
(D) Loss on Issue ofDebentures ?5
27. (a) other Current liabilities
OR
(d) (t), (,,) and (ta)
28. (d) Fixed assets + current assets - current liabilities

I Sample Papers 233

N
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 29. (r) Purchase ofa tangible asset

OR
(d) Principal revenue producing activities
30. (a) Cash Inflow (6,00,000
32. (r) Decrease
(ii) No change
35. Proprietary Ratio = 0.912:l
OR
Interest Ooverage Ratio : 14.89 Times
34. (lash used Operadng Activities = { 1,79,000
(lash used in Investing Activities = (t 10,00,000)
(lash from Financing Activities = { 10,73,000

ttt

'lllt'
234 Acco!ntancy Xll I
 :r-- ://///rr

SAMPLE PAPER
13 t

lu t'ts I L\lE I

Time Allowed: 3 hours Max. Marks: 80

General Instructiors: .\arn'd.r ORSE Sutltlt Quttion lhlt 12022-2) (Itnsolt'ed)

PART-A
(Accounting for Partnership Firms and Companies)
l. Birbal Ltd. issued 40,000 equity shares of ( l0 each at a premium of 207o. The amount
was payable as follows:
On application (3 per share
()n allotment - ?5 per share (including premiunr)
On first call
- (2 per share
On final call
- {2 per share
-I'he issue was- fully subscribed. A, a holder of600 shares, paid the entire share money
with applicadon. At the time of transfer of share application money, 'Calls in Advance
Account' will be:
(a) (lredited with {5,400 (D) Debited with {2,400
(c) Oredited with t2,400 (d) (lredited with 14,200
2. Read the following stat€ments-Assertion (A) and Reason (R). Choose one ofthe correct
alternatives given below:
Assertion (A): 'The market situation' factor affects the value ofgoodwill ofa partnership
firm.
Reason (R): The competence, proficiency, abiliry and resourcefulness of management
add the value to a firm's goodwill.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A)
(D) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
3. E l,td. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis.
The amount payable on application was {2. l'applied for 420 shares. The number of
shares alk>tted and the amount carried forward [<rr ad.iustment against allotment money
due fiom t' will be:
(a) 60 sharesl { 120 (D) 340 shares; { 160
(c) 320 shares; {200 (ri) 300 shares; {240
]lll
Sample Papers 235 '\
.t\\\
 OR
Creations Ltd. purchased building ofJK Ltd. for ?8,00,000. The consideration was paid
by issue of 6% Debentures of { 100 each at a discount of 120. 6Vo Debentures Account is
credited with
(a) ?10,40,000 (r) ( 10,00,000
(c) (9,60,000 (d) t6,40,000
4. Due to change in the profit-sharing ratio, Anisha's gain is l/5th while Harit's racrifice
is l/5th. They decided to adjust the following without affecting their book values, by
passing a single adjustment entry:
General Reserve t20,000
Profit and Loss Account (Dr.) ?30,000
(a) Debit Anisha's Capital Account by ?2,000 and credit Harit's Capital Account by
t2,000.
(i) Debit Anisha's Capital Account by { 10,000 and credit Harit's Capital Account by
< 10,000.
(c) Debit Harit's Capital Account by ?2,000 and credit Anisha's Capital Account by
<2,000.
(d) Debit HariCs Capital Account by {10,000 and credit Anisha's Capital Account by
t 10,000.
OR
A and B were partners in a firm. Their capitals at the end of the year ending on 3lst
March,202l were ?3,00,000 and t1,50,000 respectively. During the year, B withdrew
t 10,000 which was debited to his capital account. Profit for the year ended 3lst March,
2021 was {32,000 which were credited to their capital accounts. During the year, B
introduced additional capital ?32,000. What was B's capital on lst April, 2020?
(a) ( I,50,000 (,) (1,60,000
(r) { 1,12,000 (d) (1,52,000
5. Which ofthe following statement (s) is/are not correct?
(i) Goodwill is the present value ofa firm's anticipated excess earnings.
(ii) Goodwill is a fictitious asset.
(rii)Goodwill is an intangible asset
(riD Goodwill is alfected by the location ofbusiness.
(a) Only (i) (b) Both (i) and (iii)
(c) only (ii) (d) Only (ia)
6. In the Balance Sheet ofa company, debentures are generally shown under the head of:
(a) Share Capital (6) Non-current Liabilities
(c) Current Liabilities (d) Non-current Assets
OR
Interest on debentures is:
(a) Appropriation ofprofit (b) Capital gain
(r) Charge against proht (d) Dividend

rlL'

236 Accountancy-Xll
 7. Amar and Al<bar are partners sharing profits in the ratio of2: I. They admitted Anthony
as a partner for th share in the profits. On the date ofAnthony's admission, the Profit and
Loss Account showed a debit balance of {90,000. Thejournal entry for the accounting
treatment of this balance on Anthony's admission will be:
t(
(a) Profit & Loss ,Ay'c....... Dr. 90,000
To Amar's Capital Ay'c 60,000
To Akbar's Capital A,,/c 30,000
(D) Amar's Capital Ay'c.......Dr. 60,000
Akbar's Capital 4y'c.......Dr. 30,000
To Proht & Loss A,,/c 90.000
(r) Profrt & Loss A,/c.......Dr. 90,000
'Ib Amar's Capital Ay'c 48,000
-fb
A.kbar's Capital A,/c 24,000
ab Anthony's Capital A,,/c 18,000
(d) Amar's Capital A,/c.......Dr. 48,000
A,/c.......Dr.
A-kbar's Capital 24,000
Anthony's Capital ,Ay'c....... Dr. 18,000
'Rr Proht & Loss Ay'c 90,000
8. On the death ofa partner, his share in the profits of the hrm till the date of his death is
transferred to the:
(a) Debit ofProfit and Loss Account
(D) Credit of Profit and Loss Account
(c) Debit of Profit and Loss Suspense Account
(d) Credit of Profit and Loss Suspense Account
OR
A, B, C and D are partners in a firm. They want to expand their business for which
additional capital and more managerial experts are required. For this they want to admit
more members in their firm. What is the maximum number of additional members that
can be admitted by them in the firm?
(a\ 02 (D) 50
(c) 20 (d\ 46
Qtestioa nos 9 and 10 are based on the hyPothcti.al situation givet bebw.
Bright Star Limited is engaged in manufacturing of high-end medical equipment.
Considering the prospects of high growth in this segment, the company has decided
to expand and fior this purpose additional investment of 150,00,00,000 is required.
Directors have decided that 207c ofthis requirement would be financed by raising long
term debts and balance by issue of Equity shares.
As per memorandum of association of the company, the face value of Equity shares is
( 100 each. Also, considering the market standing of the company, these shares would
be issued at a premium of 2570. Directors decided to issue suflicient shares to collect the
desired amount (including premium).

lllt'
I S, rr, ple Papers 231
,N
 '['he prospectus n'as issued to public, and tlre issue was oversubscribed by 2,00,000 shares
which were issued letters ol rellret. Answer the below nrentioned questions considering
that the entire amount was payablc on application.
Date Particulars Dr. ( ?) Cr. ( t)
Bank A,/c I)r
To Equity Share Application A,,/c

(Being application money received)

9. What is the total amount collected on Application?
(a) {42,50,00,000 (D) t40,00,00,000
(r) (32,00,00,000 (d) none ol the above
10. How many equity shares were ollbred ftrr issue by Bright Star t,td.?
(a) 40,00,000 shares (D) 50,00,000 shares
(c) 35,00,000 shares (d) 32,00,000 shares
ll. Which ofthe following statemens is true in context ofa partnership firm in the absence
ofa partnership deed?
(i) lf there is a provision (br the interest on capital in the partnership deed, it will be
allowed only when there is a sufficient profit.
(iJ) Prohts and losses will be shared in equal ratio, irrespective ofthe capital contribution
and/or work performed by the partners.
(iii) Partner is entitled to a salary or commission for taking active part in business
activities.
(ir,) Interest at the rate of6% per annum will be allowed on a partner's loan by the firm
even if there are losses to the firm.
(a) only (i) and (ii) (D) Only (ii) and (iii)

(r) All (i), (ii), (iir) and (iv) (d) Only (i), (ii) and (tu)
12. Atul and Neera we re partners in a firm sharing prohts in the ratio of 3 : 2. They admitted
Mitali as a new partner. Goodwill of the firm was valued at 12,00,000. Mitali brings
her share of goodwill premium of {20,000 in cash, which is entirely credited to fuul's
Oapital Account the new profit sharing ratio will be:
(a)5:4: I (b)3:2:l
(r) l:2:l (d) None ofthese
13, Puneet and Deepak were in partnership sharing prohts and losses in the ratio of
2; l.They admitted Manya as a new partner. Manya brought t 1,00,000 as her share <.rf
goodwill premium, which was entirely credited to Puneet's capital account. On the date
of admission, goodwill ofthe firm was valued at ?3,00,000. The new profit sharing ratio
of Puneet, Deepak and Manya will be:
(a)l:2:l (D)l:l:l
(c)3:2:l (d.)2:l:l
14. Under what circumstances, will the premium ofgoodwill paid by incoming partner not
be recorded in the books ol accounts?
(a) When premium for gutdwill is paid in kind
(6) When new partner is unable to bring premium for goodwill in cash

'tll!
238 Accountancy Xll I
 (c) When premium for goodwill is paid privately
(d) All of these
15. M, N and P are partners in a firm, sharing profit in the ratio of 2:2:1. Their capital
accounts stand as {1,00,000, t1,00,000 and 150,000 respectively. N retired from the
firm and balance in the reserve on that date was {30,000. If goodwill of the firm is
(60,000 and profit on revaluation is ? 14,100, what amount will be transferred to N's
loan account?
(a) {1,41,640 (r) ?17,640
(c) t I ,01 ,640 (d) None of these
OR
Ankit, Shashi and Daniel were partners sharing profits in the ratio of 3:2;1. Shashi died
on 3Oth June, 2022. Journal entry passed for Shashi's share of profit from the beginning
ofthe year up to the date ofdeath will be:
(a) Profit and Loss A,,/c ... Dr.
To Shashi's Capital ,4y'c
(6) Shashi Capital A/c ... Dr.
To Profit and Loss A,,/c
(r) Shashi Capital .4,/c ... Dr.
To Profit and Loss Suspense .Ay'c
(d) Profit and Loss Suspense Iy'c ... Dr.
To Shashi's Capital Ay'c
16. B,Cand Dwerepartnersin afirm sharing profits and losses in the ratioof I :4:5. On
3lst March, 2018 the firm was dissolved and on that date the Balance Sheet ofthe hrm
showed a loan oft 10,000 given by C's brother F. C agreed to pay his brother's loan.
Which of the following is correct treatment on the dissolution of firm?
(a) Dr. Realisation Ay'c and Cr. C's Capital A"rc by ?10,000
(D) Dr. Realisation
,4y'c and Cr. F's Capital A,/c

(c) Dr. C's Capital Ay'c and Cr. Realisation A,,/c

(d) Dr. F's Capital A,,/c and Cr. Realisation A"/c
17. Karan and Varun were partners in a firm sharing profits and losses in the ratbdl :2.
Their hxed capitals were T2,00,000 and ? 3,00,000 respectively. On lst April 2016,
Kishore was admitted as a new partner for l/4th share in the profits. Kishore brought
?2,00,000 for his capital which was to be kept fixed like the capitals ofKaran and Varun.
Kishore acquired his share of profit from Varun.
Calculate goodwill ofthe firm on Kishore's admission and the new profit sharing ratio
of Karan, Varun and Kishore. Also, pass necessary Journal Entry for the treatment of
Goodwill on Kishore's admission considering that Kishore did not bring his share of
goodwill premium in cash.
18. Shirish, Harit and Asha were partners in a firm sharing profits in the ratio of5 :4 : l.
Shirish died on 30thJune, 2018. On this date their Balance Sheet was as follows:

1l|'
I Sample Papers 239
N \
 Balance Sheet of Shirish. Harit and Asha
u.r ut ) lsl filtrth.2Olll
Liabilities (r) Assets (?)
Capitals: Plant and Machinery 5,60,000
Shirish 1,00,000 St<rk 90,000
Harir 2,00,000 Debtors 10,000
Asha 3,00,000 6,00,000 Cash 40,000
Profits for the year 2017 - 18 It0,000
Bills Payable 20,000
7.oo.{t(x)
_7.('oJIllI
According to the partnership deed, in addition to deceased partner's capital, his executor
is entitled to:
(i) Share in prohts in the year ofdeath on the basis ofaverage oflast two years'Profit.
Profit for the year 2016-17 was t 60,000.
(ii) Goodwill of the firm was to be valued at 2 years' purchase of average of last twtr
years'prohts.
Prepare Shirish's Capital Account to be presented to his executor.
OR
(a) Oive the Journal entry to distribute 'Workmen Compensation Reserve' of (60,000
at the time of retirement of Sajjan, when there is no claim against it. The firm has
three partners Rajat, Sajjan and Kavita.
(D) At the time of Harsh's retirement, the t(,tal amount payable to him was (2,50'000.
He took over a machinery of (25,000, a computer of 118,000 and a vehicle of
(45,000 and remaining amount will be paid after 2 years. Give thejournal entry at
the time of retirement.
19, Vedesh Ltd. purchased a running business ofVibhu Enterprises for a sum of? 12,00,000.
Vedesh Ltd. paid { 60,000 by drawing a Promissory note in favour ofVibhu EnterPrises.
I I ,90,000 through bank draft and balance by issue of 87o debentures of { 100 each at a
discount of 570. The assets and liabilities of Vibhu Enterprises cr.rnsisted of Fixed Assets
valued at < 17,30,000 and Tiade Payables at { 3,20,000.
You are required to pass necessary journal entries in the books ofVedesh Ltd.
OR
Samachar India Ltd. took over the assets of( 14,00,000 and liabilities of{4,00,000 from
News l-td. for a purchase consideration of?9,19,000. Samachar India Ltd. issues a
promissory note of t 17,000 payable after 60 days in favour of News Ltd. and the balance
amount was paid b1, issue ofequity shares of ? 100 each at a premium of (25 per share.
Pass necessaryJournal entries for the above transactions in the books ofSamachar India
t.td.
20. J and K are partners in a firm. Their capitals are: J t3,00,000 and K ?2,00,000. During
the year ended 3lst March, 2010, the firm earned a profit of t1,50,000. Assuming
that the normal rate of return is 207o, calculate the value of goodwill of the firm:
By capitalisation method
21.'DavidLtd.'issued(40,00,000equitysharesof?l0eachoutofitsregisteredcapitalof
< 10,00,00,000. The amount payable on these shares was as follows:

'rl1'
240 Accotrnlancy Xll I
 ()n application - (l per share
()n allotment - ?2 per share
On first call - {3 per share
()n second and final call - (4 pcr share
All calls were made and were duly received, except the secr>nd and linal call on 1,000
shares held by Vipul. These shares wcre forfeited.
Present the'Share Capital'in the Balance Sheet ofthe company as pcr Schcdule III Part
I of the Companies Act, 2013. Also prepare 'Notes to Accounts'.
22. Arjrrn, Bhim and Nakul ale partners sharing profits and krsses in the ratio of l4:5:6
respectively. Bhim retires and surrend€rs his 5/25th share in {hvour of Arjun. 'fhe
go<dwill of the firm is valued at 2 years' purchase of super profits based on average
profits of last 3 years. The profits for the last 3 years are (50,000, ?55,000 and t60,000
respectively. The normal profits [irr the similar frrm are ?30,000. Goodwill already
appears in the books of the firm at T75,000. The profit for the first year after Bhim's
retirement was t 1,00,000. (iive the necessary Journal Entries t<> adjust G<xrdwill and
distribute profits showing your workings.
23, KS l,td. invited applications for issuing 1,60,000 equity shares of? l0 each at a premium
of {6 per share. The am()unt was payable as lirllows:
On Application {4 per share (including premium ? I per share)
On Allotment {6 per share (including premium {3 per share)
()n First and Final Call - Balance
Applications for 3,20,000 shares were received. Applications for U0,000 shares were
rejected and application money refunded. Shares were allotted on pro-rata basis to the
remaining applicants. Excess money received with applications was ad.justed towards
sums due on allotment. Jain holding ti00 shares failed to pay the alk)tment money. His
shares were forfeited immediately after allotment. Afterwards the final call was made.
'l'he forfeited shares were re-issued at <U per share fully paid up.
Pass necessaryjournal entries for the above transactions in the books ol'KS Ltd.
OR
(a) PS. Ltd. forfeited 500 shares of ( 100 each for the non-payment of first call of' 30 per
share. 'fhe final call of t l0 per share was not yet made. 'Ihe forfeited shares were
reissued for {65,000 fully paid-up. Pass necessary journal entries in the bt.xrks ofthe
company.
(D) Crown Ltd. forfeited 50 shares ol { l0 each, for non-payment <>f' final call money of
{ 3 per share. Out of these, 20 shares were reissued to Taj at ( tl per share. Record
the journal entries for fbrfeiture and reissue of shares assuminll that the company
maintains calls-in-arrear account.
24. ()n 3lst March, 2014 the balances in the Capital Accounts of Eleen, Monu and Ahmad
after making adjustmenr for profits and drawings were {1,60,000, ?1,20,000 and
tt10,000 respectively. Subsequently, it was discovered that the interest on capital and
drawings had been omitted.
(d) 'I'he profit for the year ended 3lst March, 2014 was <40,000.
(ir) During the year, Eleen and Monu each withdrew a total sum of ?24,000 in equal
instalments in the beginning of each month and Ahmad withdrew a total sum of
148,000 in equal instalments at the end ofeach month.
,illl

.r\
Sample Papers 241
N\\
 (iii) The interest on drawings was to be charged @59o p.a. and interest on capital was to
be allowed @ l0% p.a.
(irr) The profit-sharing ratio among the partners was 2: I : l.
Showing your working notes clearly, pass the necessary rectifying entry.
OR
Parth and Shivika were partners in a firm sharing profits in the ratio of 3 : 2. The
Balance Sheet ofthe hrm on 3l st March,2014 was as follows:
Liabilities ({) Assets (()
Sundry Creditors 80,000 Bank 1,72,000
Shivika's Sister's Loan 20,000 Debtors 27,000
Capital ,4,,/cs Stock 50,000
Parth 1.75.000 Furniture 2,20,000
Shivika I 9"1,000 3.rig.000
.1,(i9,000 .1,69,000

On the above date, the firm was dissolved. The assets were realised and the liabilities
were paid offas follows:
(i) 50% of the furniture was taken over by Parth at 207o less than book value. The
remaining furniture was sold for { 1,05,000.
(ii) Debtors realised { 26,000.
(iii) Stock was taken over by Shivika for { 29,000.
(iu) Shivika's sister's loan was paid offalong with interest oft 2,000.
(r,) Expenses on realisation amounted to ? 5,000.
Prepare Realisation Account, Partners' Capital Accounts.
25. Following is Balance Sheet of Anshul and Bharti, who had been sharing profits in
proportion of3/4th and l/4th as at 3lst March,2022:
Liabilities (t) Assets (t)
(lreditors r,50,000 Cash at Bank 90,000
(;eneral Reserve 24,000 Bills Receivable 12,000
Capital A,/cs: Debrors 64,000
Anshul I ,1.1,O00 Machinery 80,000
Bharti 62,000 I,76.000 Furniture 4,000
Land and Building 1,00,000
3,50,000 3,50,000
'fhey agree to take Shashi into partnership for l/5th share on lst April, 2022.
The partners have raised the following questions:
(i) How will be the new profit sharing ratio of the partners determined?
(ii) Goodwill Account be valued at {80,000. Shashi is unable to bring cash for her share
of goodwill. How will the goodwill be recorded in the books?
(iii) Machinery and Furniture be reduced by llVc and SVo. Provision for Doubtful Debts
be created on Debtors.
'fhat Land and Building be appre ciated by 207o. What is the amount ofpro6t or loss
on the revaluation?
llr

242 Accountancy-Xtt
 (irr) When Shashi pays {56,000 as Capital for l/Sth share in the {uture profit. What will
be the capital account balances of the partners in the reconstituted hrm as at lst
April,2022?
26. Pass necessary journal entries for the issue of Debentures in the following cases:
(r) Y Ltd. issued ?5,00,000, 97o Debentures of {100 each at par redeemable at a
premium of l0% after three years.
(ii\ ZLtd. issued 4500,9% Debentures of ( 100 each atadiscountol l0% redeemable at
a premium of 57c after three years.

PARI-B
(Analysis of Financial Statem€nts)
27. The ratios which indicate the speed at which activities ofthe business are being perlbrmed
are known as:
(a) Profitability Ratios (6) Turnover Ratios
(c) Liquidity Ratios (d) Solvency Ratios
OR
Solveocy ratios are:
(i) Total Assets to Debt-Ratio (ii) Current Ratio
(iii) Interest Coverage Ratio
Choose the corect option:
(a) Only (i) is correct (6) Only (ii) is correct
(r) Only (i) and (ii) are correct (dt Only (i) and (iii) are correct
?8. If Revenue from ()perations are {9,00,000, Cross Profit is 25% on cost and Operating
Expenses are ?90,000, the Operating Ratio will be:
(a) tol% (b\ 50%
(c) 9V7o (rl) I l|Vc
29. Cash from operating activities consists of:
(a) Operational net profit (D) Decrease in currcnt assets
(c) Increase in current liabilities (d) All ofthe above
OR
Payment of Income tax is classified as:
(a) InvestingActivities (6) Financing Activities
(c) Operating Activities (d) Both (a) and (6)
30. Nano Ltd. purchased a plant and machinery for ?12,00,000. It received dividend of
{90,000 on investments. 'I'he company also sold old equipments for {2,40,000 at a loss
of(20,000. The cash flow from investing activities for Cash Flow Statement will be:
(a) Cash Inflow ?8,70,000 (D) Cash Outflow ?8,70,000
(c) Cash Inflow ?12,00,000 (d) Cash Outllow ?12,00,000
31. A very high current ratio may not be favourable for the firm?
32. From the following information, calculate lnterest Coverage Ratio:
Net profit after interest and tax { 1,20,000; Rate of income tax 4OVo; l57c Debentures
? 1,00,000; l2Vo Mortgage loan ( I ,00,000.

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I Sample Papers 243 N
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 OR
A company had Ourrent Assets 3,00,000 and (iurrent l.iabilities ? I ,40,000. Afterwards,
{
it purchased goods worth {20,000 on credit. Calculate the (lurrent Ratio after the
purchase oI goods.
?!. Reail the following hgothetical situation carefuvy and answer the questions that follow:
Fairytale Software Solutions l-td. is in thc process of preparing its Balance Sheet as per
Schedule Ill, Part I ofrhe Companies Act, 2013 and providing its true and fair view of
the financial position. 'l'hc company did not receive t20,000 fiom its shareholders on
the calls made. 'I'he accountant of the company is of the opinion that the amount has
been accrued by the company.
The company wants to expand its areas tlf operarions. For this purposc, it requires new
business premises. 'l-herefore, there is a factory building trnder construction.
During the year, the company has issuecl t5,00,000 f)ebcntul'es, redeemable at a
-fhe
premium of l0%. company enjoys a goodwill valuing ?7,00,000 in the market.
l)ue to good reputation in the market, it is easy for the company to acquire loans repayable
-fhus,
on demand. the company has obtained ?95,000 as l-oan that is repayablc on the
demand.
You are required to answer the folkrwing questions about Fairytale Software Solutions
Ltd.:
(t) What will bc the correct treatment for the 'Calls-in-Arrear' to show them as in the
Balance Sheet?
(ii) Under which main sub-head and head 'Factory Building ulrder Construction' will
be classified?
(iii) Underwhich major head and sub-head 'Premium on Redemption of Debentures'
u'ill be preserrted in the Balance Sheet of Fairytale Soliwares Solutions Ltd.
(tr) Name the maj()r head and sub-head under which '[,oan repayable on demand'
obtained by the company will be shown.
34. l-rom the tirlklling Balance Sheet o{'Ashok [-td., prepare Caslr l-low Statement
Particulars Noae 3l si March, S lst March,
No. 2022 t ?l 2021 ( ?t
I - EQUITY AND LIABILITIES:
l. Shareholders Funds
(zr ) 5harr Oapital 7,50,000 5,00,000
(b) Rrscrvcs ancl Surpltrs :t,75,000 3,00,000
2. Noo-Currentbabilities
(.r) l-()ng-teInr Borrorr'ings ir0.(XX ) l.(x).(x)o
3. Current Liabilities
(a) l ra<lc Paval>lcs an).(xx) 55,000
(D) Intangible.\sscts .17,i(x) 40,000
Total t 2,72,500 9,9:'),000
II - ASSETS:
l. Non-Currcnt Assets
(a) Fixed Assets
(i) -l angible {ssets 3 5,0i.(xx) 6,00.000
(ri) I ntangible Asscts 4 {)0.0(x) I,00,000
(r) Non-cur_r'e t InlesttncDts 3.(X).(XX)
2- Current Assets
(.r ) (;rlrrent Invcslments 1)O.{)(}0 50,000
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244 Accountancy-Xll
 (D) Inventories 1,00,000 75,(XX)
(r) Cash and Cash Equivalents I,87,500 1.70,(xx)
Toral r 2,72,500 1r.1)i,(x)()

Noaes to Accounts;
Particulars 3l st March, 3l sl March,
2022 ( r) 202r (r)
I I-ong-terrl Borrowings
1000, l0% Dcbcntures ol { 100 ea<Jr l.(x),(xx)
Ilank l-oan 50,000
_q999_
Short-tetm Provisions
Plovisi<ln firr Tix .l(),(xx)
3 'lingible Assets
41,500
-Lg!!g
t-and and Building 3,25,000 l,(x),(xx)
I'lant and Machinerl' I,80,000 2.(X).(Xn )

5,05.000
I lntangible -tssets
( ixxlilill 90,000
-glpJllrq
l.(x).{)00
(lash and (lash Equivalenrs
(;ash iD l Iand 35,000 25,0(X)
Bank Balancc I,52,50t) I,45,000

Additional Information: -Lgr99-

3lst March,2022 -uuJllrr
3l st March,202l
(i) Contingent Liability:
Proposed Dividend loq., 7.5%:
(ii) Income tax paid duringthe year includcs ?7,500 paid towards Dividend Distribution
Thx.
(iii) Land and Building ofbook value {75,000 was sold at a profit of l0%.
(irr) The rate ofdepreciation on Plant and Machinery is l0%.
!lt
Answers
l. (c) Credited with {2,400
2. (D) Both Assertion (A) and Reasorr (R) are true and Reason (R) is not the c()rrect
explanation of Assertion (A)
3. (d) 300 shares; 1240
OR
(r) < 10,00,000
4. (c) Debit HariCs Capital Account by ?2,000 and credit Anisha's Capital Account by
?2,000.
OR
(c) t 1 ,12,000

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p $3 rnple P3p1'13 245
I
 5. (c) Only (ii)
6, (D) Non-current Liabilities
OR
(r) Charge against profit
7. 16; 4rru.'r A,/c.......Dr. 60,000
Capital A,/c.......Dr.
Akbar's "upital 30,000
To Profit & Loss A,/c 90,000
8. (c) Debit of Profit and Loss Suspense Account
OR
(d) 46
9. (a) 42,50,00,000
10. (d) 32,00,00,000
r r. (d) only (i), (ii) and (iu)
12. (a)5:4:l
13. (D) l:l:l
14. (r) When premium for goodwill is paid privately
15. (a) ( I,41 ,640
OR
(d) Profit and Loss Suspense Ay'c Dr
To Shashi Capital A./c
16. (a) Dr. Realisation ly'c and Cr. C's Capital A,/c by {10,000
17. (a) Goodwill of the firm on Kishore's admission { 1,00,000
18. (a) Amount transferred to Shirish's Executors Ay'c (2,18,150
OR
19. Capital Reserve {2,10,000, No. ofDebentures issued 10,000
OR
Capital Reserve {81,000
20. Goodwill ( 2,50,000
21. Share Capial t39,96.000
22, Bhim's Share in Goodwill { 10,000
23. Amount received on allotment 16,36,800, Capital Reserve {2,400
OR
(a) Capital Reserve {30,000
(D) Capital Reserve ? 100

24. Dr. Eleen's,ay'c ?3,850, Monu's Capitaly'y'c t2,950 and Capital Reserve {30,000
Cr. Ahmad's Capital A,/c {900
OR
Realisation Loss {56,000, Final Payment to: Parth t53,400 Shivika's ?1,42,600
25. (i) New Profit-sharing Ratio = 3: l: I
(ii) Shashi's Share in Goodwill = ? 16,000

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246 Accountancy-Xll
 (iid) Revaluation Profit = ?8,400
(iu) Partners' Capital Accounts ?1,50,300, Bharti 74,100, Shashi t56,000
26. (i) Loss on Issue of Debenture {50,000
(ii) Discount on Issue of Debenture (45,000
Loss on Issue ofDebentures {22,500
27. (D) Turnover Ratios
OR
(d) Only (i) and (iii) are correct
28. (e) 9Wo
29. (d) All of the above
OR
(c) Operating Activities
30. (6) Cash Outflow ?8,70,000
32. lnterest Coverage Ratio 8.4 times
OR
CurrentRatio2:l
33. (i) Cells-in-Arrears will be shown as a deduction fiom 'subscribed but not fully paid-up
Share Capital?
(ii) Major Head - Non-Current Assets, Sub-Head - Capital Work-in-Progress
(iii) Non-Current Liabilities, Sub-Head - Other Long-term Liabilities
(iu) Current Liabilities, Sub-Head - Short-term Borrowing
34. Cash from operating Activities f80,000
Cash used in Investing Activities ?2,17,500
Cash from Financing Activities { 1,55,000

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I Sample Papers 241 N
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 , SAMPLE PAPER
,rruil 1,4
[UNSOLVED]

Time Allowed: 3 hours Max. Marks: 80

Generol In$trucaions: .\4r?.'d\ OI)St) Sanple Quetliurt I'ultu-2022-21 (L:n.solul1

PART-A
(Accounting for Partnership Firms and Companies)
l. Santigo t-td. invited applications f<rr issuing 2,00,000 shares { l0 each payable ?3 per
share r>n application, {5 per share on allotment and (2 per share on first and final
call.'I'he issue was oversubscribed and the company received (9,60,000 as application
money.'l'he company rejected some applications and pro rata allotmcnt was made to
the remaining applicants in the ratio of 5 :4. Applications for how many shares were
rejected?
(r) 110,000 (6) I,30,000
(c) 70,000 (d) I,20,000
-l'
2. R, S and sharing profits and losscs in the ratio of I :2:3, decided to share future profit
and krsses equally.'l'hey also decided to adjust the following accumulated profits, losses
and reserves without aflecting their book figures, by passing a silrgle adjustment entry:
(<)
()eneral Reserve 40,000
Profit anrl l-oss A,/c (Or.) 30,000
Delbrred rcvenue expenditure 10,000
'l'he necessarv adjustment entry will be:
(a) Dr. R and (lr. T by ? 10,000 (b) Dr. T and Cr. R by { t0,000
(c) Dr. S and (lr. R by ? t0,000 (d) Dr. R and Cr. S by { 10,000
3. A company purchased new machinery for { 15,00,000 out of which t7,00,000 were paid
in cash. Balance amount was paid by issue ofequity shares of? l0 each at 25% premium.
How rnany shares will be issued by the company?
(a) 64,000 shares (6) 80,000 shares
(r) t,50,000 shares (d) 70,000 shares
OR
Which ofthe folkrwirrg types ofdebentures provide liquidity, sakty, capital appreciation
and assured return to the investors?
(n) Bearer Debentures (D) First Debentures
(c) (irnvertible f)eberrtures (d) Zero coupon Rate Debentures

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248 Accountancy-Xll
 ,1. Madhur, Meena and A.lka were partners sharing prohts and losses in the ratio of 5:3:2.
The partners agreed to share future profits in the ratio of 2:2: l. The sacrifice/gain of the
partners will be:

(a) Madhur will sacrifice th and Alka will gain th

fr
(6) Meena will sacrifice
rl
1f th and Alka will gain ,o th
tl
(r) Meena will sacrifice
,o rh
and Madhur will gain
, th
ll
(d) Madhur will sacrifice a th and Meena will gain , rh
OR
Vijay and Rattan are partners in a firm. The partnership agreement provides for interest
on drawings @ lTVo per annum. Which of the following accounts will be debited to
transfer interest on drawings to Profit and Loss Appropriation Account?
(a) lnterest on Drawings Account (D) Bank Account
(r) Partners' Current Accounts (d) Partners' Capital Account
5. Gain / krss on revaluation at the time ofchange in profit sharing ratio ofexisting partners
is shared by (r)- whereas in case of admission of a partner it is shared by (ii)-.
(a) (l) Remaining Partners, (ii) All Partners
(6) (,) All Partners, (ii) Old partners
(c) (i) New Partner, (ii) All partners
(d) (i) Sacrificing Partner, (ii) Incoming partner.
6, Debentureholdersare:
(a) the owners ofthe company (b) the vendors ofthe company
(r) the creditors ofthe company (d) the debtors ofthe company
OR
lnterest on debentures is always paid on:
(a) Nominal value ofdebentures (6) Amount received on issue
(.) Amount received on allotment (d) None ofthe above
7. A and B are partners in a firm sharing profits in the ratio of 3:1. They admitted C as
a new partner. The new profit-sharing ratio ofA, B and C will be 2:l:1. C brought
(2,50,000 for his capital but could not bring his share of goodwill (premium) { 10,000 in
cash. Which ofthe followingjournal entries willbe passed for the treatment ofgoodwill?
(a) C's Current A,/c Dr. t 10,000
To As Capital Ay'c ( 10,000
(D) C's Capital Arlc Dr. t 10,000
To As Capital Ay'c ?10,000
(c) As Capital A'lc Dr. ( 10,000
'li:r C's Capital A,/c ? 10,000
(d) None of these

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Sample Papers 243 '\
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 E, Nectu, Seetu and Keetu have been sharing prolit in the ratio of3:5:7 respectively. Keetu
retires and his share is taken up by Neetu and Seetu in the ratio of3:2, the new ratio will
be:
(a) 12:13 (D) 3:5
(c) 2:l (d) 3:2
OR
Which of the following stateme nt are correct:
(i) 1-he liability ofa partner for acts ofthe firm is unlimited.
(ii) Private assets ofa partner can also be used lbr paying the debts ofthe firm.
(ili) Each partner is liable jointly with all their partners and also severally to thc third
parties for all the acts of the firm done, while he is a partner.
(izr) 'Ihe liability of a partner is limited t<.r the extent of his capital contribution.
(o) only (iii) (D) (i) and (ir)
(c) (i), (ii) and (iii) (d., (1, Ol, (tii) and (i1,)

Qzestioas Nos 9 and l0 are based on hrpothetical situatian given below:

D'tC Ltd. is a pharamaceutical company. ()n realising the prospecr of high demand
and ppowth in this segment, DTC l-td. decided to buy online pharamaceutical store.
DTC Ltd. purchased Laurie Ltd., an online pharamaceutical store, by taking ovcr their
assets of ? 16,80,000 and liabilities of t I ,20,000 for a consideration of t 15,00,000, 207o
of the payment was made by accepting a bill payable afrer 2 months and the balance by
issue ofequity shares of{ 100 each at a premium of20%.
Followingjournal entry will be passed for the purchase of the business of Laurie Ltd.
Date Parliculars Dr. (?) Cr. (l)
Bank A,,/c l)r.
Tir Sundry Liabilities A,/c

To Laurie Ltd.
-rb............

9. How many equity shares were issued by DTC Ltd. in favour Laurie Ltd.?
(a) 10,000 (r) 14,000
(c) 8,000 (d) 12,500
10. For recording the purchase of Laurie Ltd. DTC Ltd. will:
(c) Credit Goodwill A,/c by {60,000
(i) Debit Goodwill A,/c by {60,000
(c) Credit Capital Reserve A"/c by ?60,000
(d) Debit Capital Reserve A,/c by {60,000
ll. Which ofthe following statement is is not true for fixed capital account?
(a) The capital account balance remains unchanged unless there is addition to or
withdrawal ofcapital.
(b) 'fhe capital account always show a credit balance.
(r) Each partner has only one account, i.e., capital account, under this method.
(l) All adjustments for drawings, salary, interest on capital, etc. are made in the current
accounts.
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2s0 Accountancy-Xll
 12. The capitals of Ram and Shyam are (60,000 and <30,000. For enhancing the capital
base of firm to {1,50,000, they decidc to admit Gagan. Gagan is to bring a sum of
?80,000. Find out thc amount ofgoodwill brought in by Gagan.
(a) (20,000 (6) 1u0,000
(c) 160,000 (d) ( I,70,000
13. X and Y are partners in a hrm sharing profits in the ratio of3 : 2 respectively. Zjoins the
Iirm with l/5th share in the profit. He acquires his share in profit from X and Y in the
ratio of I : l. The new profit-sharing ratio ofpartners is:
(a) 4:l: I (b)2:3:5
(c) 5:3:2 (d)2:5:3
t4. Swati and Aman were partners in a firm. Their fixed capitals were { 9,00,000 and
{ 3,00,000, respectively. They shared prohts in the ratio of their capitals. Divya was
admitted as a new partner for l/6th share in the profits of the I'irm. Divya brought
t 60,000 as her share ofgoodwill premium and { 6,00,000 as her capital. The amount
of goodwill premium credited to Swati's account will be:
(a) ( 60,000 (b) { 30,000
(c) ? 45,000 (d) t 15,000
15. 'Workmen Compensation Reserve' of (70,000 at the time ofdeath of Neeti, when there
{25,000 against it. The firm has three partners Raveena, Neeti and Rajat.
is a claim of
Which of the following is correct in the context of above situation?
(a) Workmen Compensation Reserve A,./c will be debited bv {25,000.
(b) Workmen Compensation Rese rve A,./c will be credited by {25,000.
(c) Provision for Workmen Compensation Reserve A/c will be debited by (25,000.
(d) Provision for Workmen Compensation Reservc Ay'c will be credited by {25,000.
OR
At the time of death of partner, are dcbited to Revaluation A,/c
(a) Unrecorded Assets (D) Unrecorded Liabilities
(c) Accumulated Profits (d) Accumulated Losses
16. At the time of dissolution, furniture worth {70,000 was taken by a partner, Janki at
?43,000. Which ofthe tbllowing journal entry is correct?
(a) Janki's Capital 4,,/c Dr. (70,000
To Realisadon A,,/c ?70,000
(r) Realisation Ay'c Dr. (43,000
To Janki's Capital ly'c ?43,000
(r) Janki's Capital ly'c Dr. t43,000
To Realisation Ay'c ?43,000
(d) Janki's Capital A"/c Dr. t43,000
-lb Bank A,,/c {43,000
17. Pankaj and Naresh were partners in a firm sharing profits in the ratio of 3 : 2' Their
fixed capitals were (5,00,000 and t 3,00,000 respectivel,v On 1.1.2017, Saurabh was
admitted as a new partner for l/5th share in the profits. Saurabh acquired his share of
prolit from Panlaj. Saurabh brought {3,00,000 as his capital which was to be kept fixed
like the capitals of Pankaj and Naresh.
Calculate the goodwill of the firrn on Saurabh's admission and the new profit sharing
ratio ofPankaj, Naresh and Saurabh. Also, pass necessaryjournal entry for the treatment
of goodwill.
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Sample Papers 25I

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 lE, Arun, Varun and Karan were partners in a firm sharing profits in the ratio of4:3:3. On
31.3.2014, their Balance Sheet was as fbllows:
Liabilities ( r) Assets (?)
Creditors 17,000 (lash 8,000
Bills payable 12,000 Debtor_s 13,000
Karan's Loan 28,000 Bills Rcceivables 9,000
Capitals: l'urniture 27,000
Arun 70,000 Machincry l,25,000
Varun 68,000 1.Ju,000 Karan's Capital 13,000
1,1):-r.(Xn)

On 30.9.2014, Karan died. 'fhe Partnership Deed provided for the following to the
executors of the deceased partner: -L9lJl99
(a) His share in the goodwill ofthe firnr calculated on the basis ofthree years purchase
of the average profits of the last firur years. The profits of the last four years were
( I ,90,000; ? 1,70,000; { I,80,000 and { 1,60,000 respectively.
(D) His share in the profits of the firm till the date of his death calculated on the basis'
of the average profits of the last fbur years.
(c) lnterest @ 87o p.a., on the credit balance, ifany, in his Capital Account.
(d) lnterest on his kran @ l2% p.a.
Prepare Karan's Capital Account to be presented to his execut()rs, assuming that his loan
and interest on loan were transferred to his Capital Account.
OR
(a) Give the Journal entry to distribute 'Workmen Compensation Reserve' of ?70,000
at the time of retirement of Neeti, when there is a claim of t25,000 against it. -fhe
firm has three partners Raveena, Neeti and Rajat.
(6) Give the Journal entry to distribute 'Investment Fluctuattrn Reserve' of ?4,000 at
the time of retirement ofZ, when investmerrts (market value {19,000) appears at
(20,000. The lirm has three partners X, Y, and Z.
19. Youth Ltd. took a kran of { 15,00,000 from Statc Bank of India against the security of
tangible assets. In addition to principal security, it issued 10,000, llTc debentures of
? 100 each as collateral security.
Pass necessary journal entries fbr the above transactions, if the company decided to
record the issue of-I l% debenturcs as collateral security and show the presentation in
the Balance Sheet of Vruth l,td.
OR
King Ltd. took over Assets oft 25,00,000 and liabilities of{ 6,00,000 ofQueen Limited.
King l-td. paid the purchase consideration by issuing t0,000 equity shares of{ 100 each
at a premium of l0% and ( I1,00,000 by Bank Draft.
Calculate Purchase consideration and pass necessary.lournal entries in the books of
King Ltd.
20. Radhika, Bani and Chitra were partners in a firm sharing profits and losses in the ratio
of 2 : 3 : l. With ellect from Ist April, 2018 thcy decided to share future profits and
krsses in the ratio ol'3 : 2 : t. On that date their Balance Sheet showed a debit balance of
{ 24,000 in Profit and l-oss Account and a balance of{ 1,44,000 in General Reserve.
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252 Accountancy-Xll
 It was also agreed that :
(a) The goodwill ol the firm be valued at { 1,80,000.
(D) The Land (having book value of? 3,00,000) will be valued at { 4,80,000.
Pass the necessary journal entries for the above changes.
21. Sun Pharma [,td. is registered with an aurhorized capital of ?1,00,00,000 divided into
I ,00,000 equity shares of ? 100 each. fhe company issued 50,000 shares at a premium
of{40 per share. A shareholder holding 500 shares did not pay the final call of?20 per
share. His shares were forfeited.
Present the 'Share Capital' in the Balance Sheet of the Company as per Schedule III
Part I ofthe Companies Act, 2013. Also prepare Notes to Accounts.
22, Nandan,John and Rosa are partners sharing profits in the ratio of4:3:2. On lst April,
2020, John gave a notice to retire from the firm. Nandan and Rosa decided to share
future profits in the ratio of l:1. The capital accounts of Nandan and Rosa after all
adjustments showed a balance of(43,000 and (80,500 respectively. 1'he total amount to
be paid toJohn was {95,500. This amount was to be paid by Nandan and Rosa in such
a way that their capitals become proportionate to their new profit-sharing ratio. Pass
necessary Journal entries in the books ofthe firm Ibr the above transactions. Show your
working clearly.
23. Hema Ltd. invited applications for issuing 30,000 Equity shares of { 100 each at a
premium of {20 each. The amount was payable as follows:
On Application and Allotment (40 (including premium ? l0) per share.
On First Call {50 (including premium { l0) per share
On Second and Final Call Balance
-
Applications for 75,000 shares were received. Applications for 15,000 shares were
rejected and the money received fxrm them was refunded. Shares were allotted on
pro rata to the remaining applicants. All calls were made. A who had applied for 2,000
shares failed to pay the {irst call and second and final call on the shares allotted to him.
The shares ofA werc forfeited after the hnal call. The forfeited shares were reissued at
( 160 fully paid.
Pass necessary journal entries in the b<xrks ofthe company for the above transactions.
OR
(a) The Directors of a Company forfeited 200 equity shares of (10 cach issued at a
premium of (3 per share, for the non payment of the first call money of (3 per
share. The final call of{2 per share has not been made. Half of the forfeited shares
were reissued at ?1,000 fully paid. Record Journal entries for the forfeiture and
reissue of shares.
(r) X Ltd. florfeited t,000 shares of ( l0 each 1tt] called-up) for the non-payment of the
allotment money of t5 per share in<luding {2 as premium. ()f these, 800 shares
were reissued to S at (7 per share as {tl called-up.
Journalise the above transactions in the books of X Ltd.
24. Ahmad, Bheem and Daniel are partners in a firm. On lst April, 201I the balance in
their capital accounts stood at {8,00,000, ?6,00,000 and t4,00,000 respectively. They
shared profits in the proportion of5:3:2 respectively. Partners are entitled to interest on
capital @5% per annum and salary to Bheem @ ?3,000 per month and a commission of
? 12,000 to Daniel as per the provisions ofthe partnership deed.
,ll
I
\
$3mple P6psr-g 253
.,,NN
 Ahmad's share ol profit, excluding interest on capital, is guaranteed at not less than
{25,000 p.a. Bheem's share of profit, including interest on capital but excluding salary,
is guaranteed at not less than (55,000 p.a. Any deficiency arising on that account shall
be met by Daniel. 'I'he profit ofthe firnr lirr the year ended 3l st March, 2012 amounted
to (2,16,000. Preparc'Profit and Loss Appropriation Account'fbr the year ended 3lst
March, 2012.
OR
Michael, Jackson and John were partners in a firm sharing profits in the ratio of 3 : I ; l. On
3l st March, 2017, they decided to dissolve their firm. On that date their Balance Sheet
was as folkrws :

Balance Sheet of Michael, Jackson and John

asat)IstMar ,2017
Liabilities (?) Assets ({)
Creditors I 1.5(X) Bank 6,0(x)
Loan 3.4)00 Debtors 48,400
Capitals: Less: Provision lbr
Doubtful Debrs fullQ 46,000
Michael 50,000 Stock in Tiade 16,000

Jackson 25,000 Furniture 2,000

John 14,000 It1t.{ xx ) Sundry Assets 34,000
t,0{,000 l.o.r.oo0
It was agreed that:
(i) Michael was to take over Furniture at {2,600 and Debtors amounting to <40,000 at
{34,400; the Creditors of{10,000 to be paid by him at this figure.
(ii) Jackson was to take over all the stock in trade at { 14,000 and some of the Sundry
Assets at 128,t]00 (being l0% less than book value).
(iii) John was to take over the remaining Sundry Assets at g0% of the book value and
assumed the responsibility for the discharge of the Loan.
(iu) The remaining Debtors were sold to a debt collecting agency Ibr 50% of the book
value. The expenses ofdissolution ?600 were paid by John.
Prepare Realisati<>n Account and Partners' Capital Accounts.
25. Mrinal and Rajan were partners in a firm sharing prohts and losses in the ratio 3 : 2. On
3l st March, 2022 their Balance Sheet was as follows:
Balance Sheet of Mrinal and Rajan
as al J I sl Merch, 2022

Liabilities ({ ) Assets (l)

Creditors l.!o,(xx) Cash 3.32.(X X )

Workmen's Compensation Fund l,:o.(x)o Debrors 2,92,000

Capitals: l-ess: Provision
Mrinal t0,00,000 for doubtful debs 4.000 2,88,000
Rajan 8,00,000 lu,oo.(xx) Stock 3,00,000
Investment 5,20,000
Furniture 6,00,000
:.1{).10.(xx) 20..10.(xx)

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254 Accountancy-Xll
 On lst April, 2022, they admitted Kakun as a new partner for l/4th share in the profits
on the following terms:
Goodwill ofthe hrm was valued at ? 8,00,000 and Kakun brought the necessary amount
in cash for her share of goodwill premium, half of which was withdrawn by the old
partners.
Stock was to be increased by 20% and furniture was to be reduced to 90%.
Investments were to be valued at (6,00,000. Rajan took over investments at this value.
Kakun brought ? 6,00,000 as capital.
The accountant of the firm has left the organisation without any prior notice. The
partners of the firm need your help:
(d) to show two reasons for the preparation Revaluation Account.
(id) to evaluate the gain or loss on the revaluation.
(iid) to show the treatment of lnvestments in the books ofaccounts?
(iu) to know the capital account balances ofpartners as at lst April, 2022.
26. B Ltd. purchased Building worth ?3,00,000, Plant worth ?2,80,000 and Furniture
worth {20,000 from C Ltd. for a purchase consideration of {6,30,000. B Ltd. paid the
purchase consideration by issuing 97c debentures of ? 100 each.
Pass necessary journal entries in the books of B Ltd. for the acquisition of assets and
issue of debentures when:
(a) Debentures were issued at par.
(i) Debentures were issued at a premium of257c
(c) Debentures were issued at a discount of 107c.

PART-B
(Analysis of Financial Statements)
27. Cost ofgoods sold :
(a)
Revenue from operations - Gross profit
(D) Revenue from operations - Net profit
(c) Revenue from operations proceeds
(d) None of the above
OR
100 - Operating Profit ratio is equal to _ .

(a) Operating Ratio (b) Operating Net Profit Ratio

(r) Gross Profit Ratio (d) Cunent Ratio
28. Inventory in the beginning ofthe year is {60,000 and at the end is { I ,00,000. Inventory
turnover ratio is 8 times. The Revenue from Operationsis 257o above cost. The Gross
Profit will be:
(a) t 12,00,000 (r) {1,60,000
(c) 12,00,000 (d) ? I,80,000
29. Cash from operations will increase due to:
(a) Decrease in current assets (D) Increase in current liabilities
(c) Neither ofthe two (d) Both (a) and (l).
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Sample Papers 255
N.
 OR
lnterest received by a non-financial enterprise will be shown under:
(rz
) Operating activities (6) Financing Activities
(c) Investing Activities (d) None ofthe above
30. Net Profit during theyear - {2,50,000
Decrease in inventories - ?25,000
Increase in Trade Receivables - {40,000
Net cash from operating activities will be:
(a) (2,65,000 (6) ?2,35,000
(r) ?2,95,000 (d) None ofthe above
31. 'A very low current ratio may not b€ favourable for the firm." List any two reasons.
32. The ratio ofCurrent Assets (?6,00,000) to Current Liabilities ((4,00,000) is 1.5 : l. The
accountant of this ['irm is interested in maintaining a current ratio of2: I by paying some
part ofCurrent Liabilities. Suggest the amount ofCurrent Liabilities which he must pay
for this purpose.
OR
-I'urnover
Compute Tiade Receivables Ratio from the following:
(t)
Gross Revenue from operations 9,00,000
Tiade Receivables at the beginning ofyear 83,000
Trade Receivables at the end ofyear 1,17,000
Revenue from Operations Return 1,00,000
.t-r. Reail the folbuing repon carefiUJ and an$)er the folbuting questioas oa the baob of tlle
sanE:
Unimax Ltd., a trading company has been establishcd by the persons who were earlier
working as partners,
The management decided to follow the same balance sheet format as the partners used
in their partnership firm.
Sumit, the accountant of the company has shown Building under 'Inventories' as the
company has decided to sell one of its buildings next month.
The company had received interest of (2,00,000 on the amount invested in Maxwell
Sports Ltd.
During the year, to fulfill its capital requirements, it has issued 2,500, l2% debentures of
( 100 each on I st November, 2020 to be redeemed on 30th September, 2021.
On the basis of the information provided to you about Unimax Ltd., answer the following
questions:
(i) Can the management of the company follow the same format of Balance Sheet that
was used in their'Partnership Firm'?
(ii) 'The company has decided to sell the 'Building' the next month."
under which major head and subhead the 'Building' will be shown in the Balance
Sheet.

rllt
256 Account.lncy Xll
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 (/ii)
How would you classify'the amount received as Interest {2,00,000' in the sratement
of proht and loss?
(iu) Under which main head '12% debenture' will be shown in the Balance Sheet?
34. Following are the Balance Sheets of Wisben Ltd. as on 3lst March, 2021 and 2022:
Particulars Note 3lst March, 3lst March,
No. 2022 /?l 202I I r)
I. EQUITY AND LHBILITIES
Shareholders' Funds
Share Capital 7,00,000 6,00,000
Reserves and Surplus 2,00,000 I,t0,000
(Statement of Proht and Loss Balance)
Non-Current Liabilities
Long-term borrowings 3,00,000 2,00,000
Current Liabilities
Trade Payables 30,000 25,000
Total
II. ASSf,TS
_t-4999 9,35,000

Non-Current Assets
Fixed Assets
(i) Thngible Assets I1,00,000 lJ.(x),0(x)
Current Assets
Inventories 70,000 60,000
Tiade Receivables 32,000 40,000
Cash and Cash Equivalents 28,000 35,000
Total 12,u0,0(x) 9,35,000
Adjustments:
During the year a piece ofmachinery ofthe book value of{80,000 was sold for ?65,000.
Depreciation provided on tangible assets during the year amounted to <2,00,000.
Prepare a Cash Flow Statement.
Ill
Answers
l.(c) 70,000
2. (a) Dr. R and Cr. T by t 10,000
3, (a) 64,000 shares
OR
(r) ConvertibleDebentures
II
4. (d) Madhur will sacrifice ,i- th and Meena will gain th
a
OR
(o) Interest on Drawings Account
5. (r) (, All Partners, (ii) Old partners
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Sample Papers 251
,N
 6. (c) the creditors ofthe company
OR
(rz) Nominal value of debentures
7. (a) C's CurrentAy'c Dr. {10,000
'lb As Capital A,/c < 10,000

8. (o) l2: l3
OR
k) (,), (,i) and (,,t)
9. (a) 10,000
10. (r) Credit Capital Reserve A,/c by t60,000
ll. (r) Each partner has only one account, i.e., capital account, rrnder this method.
12. (o) {20,000
13. (c) 5:3:2
14. (c) { 45,000
15. (d) Provision for Workmen Compensation Reserve A,,/c will be credited by t25'000.
OR
(D) Unrecorded Liabilities
16. (c) Janki's Capital ,ay'c Dr (43,000
To Realisation A,,/c <43,000
17. Goodwill ofthe firm ?4,00,000
18. Amount transferred to Karan's Executors Ay'c {2,00,430.
19. Long-term Borrowing { 15,00,000.
OR
Goodwill {3,00,000
20. Revaluation Profit ( 1,80,000.
21. Share Capital {49,90,000.
22, Amount to be brought in by Nandan t66,500.
Amount to be brought in by Rosa {29,000.
23. Capital Reserve (70,000
OR
(a) Capital Reserve {500
(6) Capital Reserve {3,200
24. Net Profit Tiansferred to : Ahmad t39,000, Bheem t25,000, Daniel ? 14,000.
OR
Realisation Loss {12,800, Final Payment to Michael t15,320,John t13'740
Cash brought in byJackson {20,360
25. (ii) Revaluation Proht {80,000,
(iu) Partners' Capital Account:
Mrinal t I 1,80,000, Rajan (3,20,000 Kakun {6,00,000

't1l'
258 Accountancy-Xll
 26. Goodwill 130,000
(i) No. of Debentures issued t6,300
(di) No. of Debentures issued ?5,040
(iii) No. ofDebentures issued {7,000
27. (a) Revenue from operations - Gross profit
OR
(a) Operating Ratio
28. (r) ( l,60,000
29. (d) Both (a) and (l).
OR
(c) InvestingActivities
30. (D) t2,35,000
32. Total Assets to Debt Ratio 1.625 : I
OR
Trade Receivables 'I'urnover Ratio 8 times
33. (i) No, company cannot follow the same format. It has to follow the prescribed format as
per Schedule III, Part-I of the Companies Act, 2013.
(ii) Major Head - Non-Current Assets, Sub-Heading - Fixed Assets
(iri) Other Income.
(iu) CurrentLiabilities
34. Cash from Operating Activities {3,08,000
Cash used in Investing Activities ?5,15,000
Cash from Financing Activities {2,00,000

ttt

'rJlI
Sample Papers 2s9
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 SAMPLE PAPER
,
15
[UNSOL\IED]
Time Allowed: 3 hours Max. Marks: 80

General lnstruclionv .\anu' t\ OIISI') Sotrtltk (ltestitt Palter-2022-2i ( l'n.;oltul )

PART-[
(Accounting for Partnership Firms and Companies)

l. (irco l.ight l.td. issued 60,000 shares of ?20 each. The issue was fully subscribed. All
am()unts wcre duly called trp and reccived excePt from a shareholder holding 2,000
shares who lailcd to pay thc 2nd and final call of?5 per share. The amount to bc shown
trnder Subscribcd Oapital in thc Balance Sheet ofthe company as per Schedule III Pan I of
th€ (lompanies Act, 2013 will be:
(a) ( 12,00,000 (r) <11,70,000
(c) ( I1,90,0(X) (d) <11,60,000
2. Read the fblkrwing statements-Assertion (A) and Reason (R). Choose one ofthe correct
alrernatives given bekrr':
Assertion (A): 'Self'-generated Goodwill'should be adjusted through partners' Capital
Accorrnts at the time of reconstitution ofa Partnership firm.
Reason (R): As per A!26, goodwill should be recorded in the books ofaccounts only
whin consideration in money or money's worth is paid lbr it.
Al ternatives:
(c ) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Arsertion (A)
(b) lirth.{ssertion (A) and Reason (R) are true and Reason (R) is not the correct
explanati<>n ol ,{ssertion (A)
(r') Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
3. lf all thc lirrfeited shares are re-issued, excess balance lying in the Forfeited Shares
Account is translerred to:
(c) (ieneral Reserve Account (D) Share Capital Account
(r) Prolit and l.oss Account (d) CaPitalReserve Account
OR
Nominal share capital is:
kr) that part ofauthorised capital which is issued by the company.
(D) the amount ofcapital which is actually applied by prospective shareholders.
(c) the amount of capital which is paid by the shareholders.
(d) the nraximurrr amount <>fshare capital that a company is authorised to issue.

lll

y'l,, 260 Accor-r n tancy Xll q

 4. Meera, Myra and Neera were partners sharing profirs in the ratio o['2 :2 : l.'fhey
decided to share future profirc in the ratio of 7 : 5 : 3 with effect from lst April, 2019.
Their Balance Sheet as on that date showed a balance of { 45,000 in Advertisement
Suspense Account. The amount to be debited respecrively ro rhe capital accounts of
Meera, Myra and Neera for writing o[I the amount in Advertisement Suspense Account
will be :
(a) ? 18,000, ? 18,000 and ? 9,000 (1r) t 15,000, t 15,000 and ? 15,000
(r) { 21,000, t 15,000 and ? 9,000 (d) < 22,500, { 22,500 and Nil
OR
When a partnerwithdraws {5,000 in the beginningofeach month upto I year, then Interest
on drawings @5% p.a. will be:
(a) ?1,625 (r) t1,675
(r) {2,500 (d) ( I,500
5, U, V and W are partners sharing profits in the ratio of 2:3:5. l'hey decide to share
future profits in the ratio of 5:3:2. -fhey also decide ro record rhe effect of thc following
revaluations and reassessments without affecting the book values ofassets and liabilities
by passing a single adjustment entry:
Book Value ({) Revised Value (()
Land and Building 3,00,000 3,50,000
Furniture 1,50,000 1,00,000
Sundry Creditors 60,000 20,000
Outstanding Salaries 10,000 15,000
'Ihe single adjustment entry will be:
(a) Dr. W and Cr. U by t 10,500 (6) Dr U and Cr. W by t 10,500
(c) Dr. V and Cr. U by t 10,500 (d) Dr. W and Cr V by t10,500
6. A company forfeited 4,000 shares of t l0 each on which application money of (3 has
been paid. Out ofthese 2,000 shares were reissued as fully paid up and (4,000 has been
transferred to capial reserve. Calculate the rate at which these shares were reissued.
(a) ? t0 per share (6) {9 per share
(r) { I I per share (d) {8 per share
OR
On a share of { l0 issued at a premium of t l, the whole amount has been called-up.
But in case of a shareholder only lU has been received from him. Forlbited shares
account would be credited by:
(a) {8 (r) 12 (c) t3 (d)<7
7. Vinod and Mehra are partners in a firm. G.oodwill is appearing in the b<xrks at 460,000.
Khanna is admitted for l/4th share and goodwill ofthe firm is valued at { t,50,000. The
amount of goodwill brought in by Khanna will be:
(a) t 15,000 (r) ?1,50,000
(c) ?60,000 (d) ? 37,500
8. On the death ofa partner, Sashi, his share in the profits ofrhe firm (42,000 till the date
of his death is transferred to the:
(a) Debit of Profit and Loss Acc()unt
(6) Credit of Proht and Loss Acc<.runr
(r) Debit of Profit and Loss Suspense A(:count
(d) Credit of Profit and l,oss Suspense Account

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Sample Papers 26r
N
 OR
I n the absence ofpartnership deed, the profits ofa firm are divided antong the partners:
(r) In the ratio ofcapiul
(6) liqually
(r) In the ratio of time devoted lirr the firm's business
(d) According to the managerial abilities ofthe partners
Reail the following hyPothetical situation, and ansuer the questians 9 ard 10.
Shruti Ltd. bought the business of Shinkey Ltd. on lst April, 2022 consisting <rfsundry
asscts of {5,60,000 and creditors { I ,00,000, Ibr a purctrase consideration of ?5,00,000.
a 1,00,000 was paid in cash otr 3rd April, 2O22 and for balance 6% debentures were
issued at a premium ot 2ltVc on 5tlr April, 2022.
!irllowingjournal entries wcrc passcd in the books ofShruti t,td. fbr the abovc mentioned
transactions.
In the books of Shruti Ltd.
Journal
Dale Particulars L.F. Dr. ( ?) Ctr (l)
2022 Sundry Assets A,./c Dr
Apr. I Goodwill A,/c (Balancing Figure) Dr
Ib Crcditors ,Ay'c

To Shinkey t-td.
(Being sundry assets and crcditors taken over)
.\l)rl:i Shinkey l.td. l)r t,1)().00o
Tir ( lash A/c r,00,000
(Beinc cash oaid ro Shinkev t,td.)
,\pr. Shinkey Ltd. [)i:
lb 6% Debentures ,q,./c
-Ib
Se(urities Premium Resen'e A,/c
(Beirrg debentures issued to Shinkey t,td. as
purclrase considerarion)

9. (kx>dwill A,/c will be debited by

(a) ?60,000 (r) <40,000
(c) {1,40,000 (d) (1,60,000
10. How nrany debentures were issued as purchase consideration?
(a) 4,000 (r) 5,600 (r) 3,200 (/) 2,500
ll. ()n lst Decembet 202t one of'the partners of the firm, Bhim introduced additional
capital oI (30,000 and also advanced a kran of(40,000 to the firnr. (lalculate the amount
of intcrest that the Partner will receive for the current accounting Peri()d.
(a) t4,200 (r) ?1,400 (r) I t,575 (d) a 800
12. A and B were partners in a firm sharing profits and losses in the ratio of 4 : 3. They
admittedCasanewpartner.-ltenewprofitsharingratioamongA,BandCwas3:2:2.A
srrrrendered l/4th ofhis share in lhvour ofC. Which ofthe partners sacrificed a larger
share?
@)A (r) B
(.) Iloth sacrificed equal share (d) cannot be assessed

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282 Accountancy Xll I
 13. Samar and Parant are partners sharing profits. They admit Chalulata as a nelt partner.
Charulata contributes trading goods {30,000; furniture 140,000; machinery a I,00,000
and cash ?20,000 towards the capital and goodwill. Goodwill on the date ol a<lnrissiorr
was valued at { I ,80,000. (lharulata's share of goodwill and capital respectilely will bc:
(a) ?60,000 and <1,30,000 (r) t60,000 and T1,90,000
(r) {60,000 and ?60,000 (d) None ofthe above
14. General Reserve is translbrred to which account at the timc o[ admissiorr ol rreu'
partners?
(n) Oapital Ay'c ofnew partner (6) Capital .l,/cs of old partners
(r) Capital A,/cs ofall partners (d) None ofthese
15. In the absence ol any provision in the partnership deed, inrcrcst ()n an)our)t rernaining
unpaid to the executor ofdeceased partner who had contributed more tharr 50% ofthe
total capital:
(n) will not be allowecl (6) will be allou,ed (r 67 p.a.
(r) will be allowed @,8% p.a. (d) will be alkrwed more than ad, 6% p.a.
OR
Hamlet, Jaitely and Sharma are partners sharing profit and lc.rsses in the rati() of 2:2: l.
Jaitely diecl, irt that tirne goodwill ol the firm valued at ?30,000. What contribution has
to be nrade by Hanrlet and Sharma in order to pay Jaitely's Exccutor?
(rz) ?20,000 and ( 10,000 (1,) { 15,000 and { 15,000
(c) (t1,000 and (4,000 (d) ?6,000 and (6,000
16. lVhich ol thc lirllowing is incorrect about dissolution ofa partnership lirm?
(a) In case ofdissolution of ir firm, firm's debts to third parties are to be paicl first.
(b) When a liability is to be discharged by a partner, his capital account is credited
because the amount of liability discharged will increase the clainr of thc partner
against the [irm.
(r) Realisatiorr Account is a rcal accr>unt
(/) Privatc Debt rneans the debt owed by the partner frorn other pers(rn personally.
17. Sheetal and Raman share prolits equally. They admit Chinki into partrrer-ship. (ihinki
pa1's only ? I ,000 lbr prcmium out ol his share of'premium ol'{ I,t100 firr l/,lth sharc ol
profit. Grudwill Account appears in the books at <6,000. All partners have decidctl that
goodwill shotrld n(,t appear in the btxrks o[the new firm.
18. A, B, (l and D werc partncrs sharing profits in thc r-atio ol l:2:3:4. D retir-ed and his
share u'as acquired b1' A and B equallv. Goodwill was valued at 3 vears' prrrchasc ol'
average profits ol last 4lears, which were (40,000. (ieneral Reserve showe<l a balance
of {1,30,000 and D's (iapital in the Balance Sheet was ?3,00,000 at the tinrc ol l)'s
retirement. Y>rr are rcquired t(, record necessarv J ou rnal entries in the books ol thc Iirnr
and prcparc D's capital account (rn his retirement.
OR
Nandan, John arrd Ros;r are partners sharing profits in thc ratio o[ 4:l]:?. ()n l st ;\pril,
2020, John gale a n()tice to retire liom the firm. Nandan and Rosa decided to sharc
future protits in thc ratio o{'l:1.'l'he capital accounts ofNandan and Rosa alier all
adiustments showed a balancc of{43,000 and (t10,500 respectilely.'l'he total arnotrnt to
be paid to.fohn was t9l-r,500. 'l'his amount was to be paid by Nandan irnd Rosa in srr<h
a way that their capitals herrme proportt)nate to their new profit-sharing rati(). I'ass
neccssary -lorr rn:rl entries irr the lrooks ofthe firm I'or the abovc transacti()ns. Slrou your'
working clearly.
,1,

Sample Papers 263

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\
 19. On lst April, 2018, RJ. Ltd. issued { 10,00,000, 970 debentures of ? 100 each at a
discount of 1070. l'hese debentures were redeemable at a premium of 5% after four
years.
Pass necessary journal entries for the issue of debentures and prepare 97o Debcntures
Account.
OR
Sandesh t-td. took over the assets of {7,00,000 and liabilities of?2,00,000 liom Sanchar
Ltd. for a purchase consideration oft4,59,500. {8,500 were paid by accepting a draft in
favour of Sanchar Ltd. payable after three months and the balance was paid by issue of
equity shares of ? l0 each at a premium of l0% in favour ofSanchar Ltd.
Pass necessary journal entries for the above transactions in the books ofSandesh Ltd.
20. Ram, Mohan, Sohan and Hari were partners in a Ftrm sharing profits in the ratio of
4 : 3 : 2 : l. On lst April, 2022, their Balance Sheet was as follows:
Balance Sheet of Ram, Mohan, Sohan and Hari
as al I st Apnl, 2022
Liabilities (() Assets

Oapitals: Fixed ,Assers 9,00,000

Ram 4,00,000 Current Asscts 5,20,(XX)
Mohan 4,50,000
'Sohan 2,50,000
Hari 2.00.000 13,00,000
Workmen Oompersation Reserve 1,20,000
t4,20,000 ItJ('J'(X)
From the above date, the partners decided to share the future profits in the ratio of l:2:3:4.
Rrr this purpose, the goodwill ofthe firm was valued at 11,80,000. The partners also
agreed fbr the following:
(i) 'l'he Claim for Workmen Compensation has been estimated at { 1,50,000.
(ii) Adjust the capitals ofthe partners according to new profit sharing ratio by opening
partners' current accounts.
Prepare Revaluation Account and Partners' Capital Accounts of the reconstituted firm.
21. Samprag l,td. has an authorised capital of ?20,00,000 divided into equity shares of
-fhe
? l0 each. company invited applications for issuing 60,000 shares. Applications for
5E,000 shares were received.
All calls were nrade and were duly received except the finalcallof{3 per share on 2,000
shares. These shares were forfeited.
(a) Present the share capital in the Balance Sheet of the company as per Schedule lll
of the Companies Act, 2013.
(b) Also prcpare'Notes to Accounts'for the same.
22. A, B and (l were partners in a firm. A died on 31.3.2018 and the Balance Sheet of the
firm on that date was as under:
Balance Sheet ofA, B aad C
a"s at ) 13.2018
l,iabilities (<) Assets (l)
( lltrlitor r 7,000 Cash at Bank 12.o00
(it'rrclal Rt st t vt' 9,000 Debrors 3!.( X )0
'tlLI
264 Accountancy Xll
 Workmen's Compensation Fund 1o.000 l'urniture 30,000
Profit and Loss Account {;.( x)0 Plant 40,000
Capital : Patents u,000
A 40,000
B 30,000
c 20.000 90.(xx)
{ x)0

On As death it was found that patents were valueless, furniture was to be brought down
to ?24,000, plant was to be reduced by ? 10,000 and there $'as a liability of {7,000 on
ac(()unl of workmen's compensation,
Pass the necessary journal entries for the above at the time ofAs death.
23. Surya Ltd. with a Registered Capital of t0,00,000 Equity Shares of { l0 each, issued
1,00,000 Equity Shares payable { 3 on Application, ? 2 on Allotment, ( 3 on First Call
and { 2 on Second and Final Call. The amount due on Allotment was duly received
except Mr. X holding {6,000 shares. His shares were immediately forfeited. On the
hrst call being made, Mr. Y holding {5,000 Equity shares paid the entire balance on his
holding. Second call was not made.
Pass the necessary Journal Entries to record the transactions and show how the Share
Capital will be presented in the Balance Sheet of the Company. Also prepare notes to
accounts.
OR
Sangita Limited invited applications for issuing 60,000 shares of ( l0 each at par. 'fhe
amount was payable as follows: on application ?2 per share; on allotment {3 per share;
on first and final call {5 per share; applications n'ere rcceivcd for 92,000 shares.
Allotment was made on the following basis: (n) to applicants for 40,000 shares-full;
(D) to applicants for 50,000 shares-407c; (r) to applicants for 2,000 shares-nil. t t,08,000
was realised on account of allotment (excluding the amount carried fiom application
money) and <2,50,000 on account of call.
-fhe directors decided to forfeit shares just
after allotment, ol' those applicants to whom full allotment was made and on which
allotment money was overdue.
Passjournal entries in the books ofSangita l-imited to record the above transactions.
24. Shreya and Vivek were partners in a firm sharing prolits in the ratio 3 : 2. The balances
in their capital and current accounts as on lst April,20l7 were as under :
Particulars Shreya ( ?) Vivek ( < )

(lilpital accounls 3,00,000 '1.00.(xx)

( lrllt rtt accouttls 1,00,000 (cr) 28,(X)0 (l )r. )
-fhe partnership deed provided that Shreya was to be paid a salary of ( 5,000 p.m.
whereas Vivek was to get a commission of{
30,000 for the year.
Interest on capital was to be allowed @ \Vc p.a. whereas interest on drawings was to
be charged @) 6%' p.a. The drawings of Shreya were { 3,000 at the beginning of each
quarter while Vivek withdrew ? 30,000 on lst September, 2017. The net profit ofthe
firm for the year before making the above adjustments was ( I,20,000.
Prepare Profit and Loss Appropriation Account and Partners' Capital and Current
Accou nts.
OR
Srijan, Raman and Manan were partners in a firm sharing profits and krsses in the ratio
of 2:2: l. On 3 I st March, 2017 their Balance Sheet was as lbllows:
!l|'
Sample Paperrr t\
265
,,\\\\\,
-
 Balance Sheet of Srijan, Raman and Manan
tt.r ut JI sl Llatt h. 20l7
Liabilities ({) Assets (t)
Capitals: Capital: Manan l0,oo0
Srljan 2,00,000 Plant 2,20,000
Raman 1.50.000 3,50,000 lDvestments 70,000
Creditors 75,000 Stock 50,000
Bills Payable 40,000 Debtors 60,000
()utstanding Salary 35,000 Bank 10,000
Profit and l-oss Account 80,000
5.00.(xx) ;.0r ).ll lo
()n rhe above date, they decided to dissolve the firm:
(i) Srrjan was appointed to realise the assets and discharge the liabilities. Srijan was to
receive 5% commission ()n sale ol assets (except cash) and was tr.r bear all expcnses of
realisation.
(ii) Assets wcre realiscd as lirlkrws: (?)
Plant 85,000
Stock 33,000
Debtors 47,000
(iii) Investmen$ were realised at 957c of the book valtrc.
(ir,) 'I'he firm had to pay {7,500 for an outslanding rcpair bill not prolided lor earlier.
(r,) A contingent liability in respect of bills rcceivable, discounted with the bank had also
materialised and had to be discharged for { 15,000.
(rri) Expenses of realisation amounting to ?3,000 were paid by Srijan.
Prepare Realisation .{ccount and Partners' Oapital Accounts.
25. Ohirag and \hrun haye beerr partners [<rr live years running a shou'rtpm 'Fitness Nest'
selling healthcare and fitness equiprnent. Profit earned is divided as l/2 to Chirag, l/3
to Varun and l/6 carried to (ieneral Reserve. -
'l'hey wanted to deal in advanced fitness equipment arrd for this purpose, they require
additional capital. They adnrit Aman as a partner on lst April, 2021. Aman brings a
capital for t7,25,000. Goodwill of the 'Fitness Nest' is valued at (3,00,000. However,
Aman is unable ro bring his share of goodwill in cash. It is decided that,{man till get
l/5th share in the profit of thc business which he would acquire equally fiom Chirag and
Varun.
At the time of admission ofnew partner, the Balancc shcct of'Fitness Ncst'was as folkrws
l.iabilities ({) Assets (t)
(lreditors 8.(X).{)0o (lash at Bank 1.00.0(x)
()utstanding llxpenses (io.0(x) Debtors I I,00,(xx)
(;eneral Reserve 1.50.{X)o Stock 1).00.(x)0
(iapitali,,/cs: Plant and Machiner-y 7.50.(XX)
Chirag 15,90,000 Buildings 10.00.000
Varun 10.00.000 :,li,1x).(xx) Advcrtiscnrent Expcnditrrre 50,(xx)
l1).( x).0(x) :l!).00.0(x)
'l lrr: Irrlkrwirrg a(liustrllcnts uctc agrct'rl rrpon
Stot k is rrrr<lelr irlrre<l br l {)',7 .
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266 Accountancy-Xll
 Depreciation of? 1,50,000 had been omitted on plant and machinery for the year ended
3l st March,2021.
Creditors include a contingent liability of (2,50,000 which has been decided by the
Court at {2,15,000.
ln respect ofdebtors, the following debts proved bad or doubtful:
(75,000 due from Raj to full extent;
( 1,00,000 due fiom Dolly- bad insolvent, estate exPected to pay only 40%.
-
(i) Calculate the profit r>r l<>ss at the Revaluation at the time of admission of Aman.
(ii) How will you treat th€ g()odwill at the time of admission of Aman? Pass journal entry
also.
(iii) Calculate the capital balances ofall the partners as at lst April, 2021.
26. (i) Journalise thc following transacti()ns:
(a) Kaveri Ltd. issued (4,00,000, u7c Debentures o[ ( 100 each at a premium of 5%
redeemable at a prcnriunr of 39t.
(D) l07r Debcntures of ? 100 each were issued at a discottnt <>f lOTo to a vendor of
latest equipments lbr pavment of { 18,00,000.
(c) lssue of 20,000. 8% Debentures of { t00 each as collateral security in fhvour of
Zinta Finance [.td.
(ii) Nikhil and Ashwin Limited bought business ofAggarwal [.irnited consisting ofsundry
assets of ( 3,60,000; sundry liabilities of ? 1,00,000 for an agreed consideration of'
< 3,07,200. It issued l4% Debenture s of { t 00 each tully paid at a discount of 47c irr
satisfaction of purchasc consitleration. Record neccssarY journal entries.
27, Which ratio indicates the proportion of assets financed out t.rf shareholders'funds?
(r) Debt equity ratio (6) Fixed assets turnover ratio
(r) Proprietary ratio (d) -Ibhl assets to debt ratitr
OR
When debentures are redeenred, what u'ill be its inrpact on debt-equity ratio?
(a) Debt-equity ratio increases
(6) Debt-equzity ratio decreases
(r) 'l"hcre will be no change on debt-eguity ratio
(d) Nothing can be said
-l'he (;urrent Ratio of a company is 2:1. Which of the ftrlkrwing transactions w()uld
28.
decrease the ratio?
(n) Prrrchase ofgoods worth {80,000 on cash
(Il) Salc oflirrniture worth ?50,000
(r) Purchasc ofg<xrds worth ?50,000 on crcdit
(d) Paid creditors ?40,000
29. 'l'here was cash balance on l'r April, 2021 {6,00,000. There were cash used in operating
activities {84,000, issue ofdebentures (2,40,000 and purchase of plant and machinery
-l'he
? 1,92,000 during the year. cash balance on :i l" March, 2022 will be:
kr) t3,60,000 (b) t2,tt2,000 (r) ?5,64,000 (d) ?3,66,000
OR
Firlkrwing intbrmation is related lo Qucen l-td.

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Sample Papers 261
...\\\\\
 l)r'. Machinerv Account ( lr:

Particulars (l) Paniculars 1?r

Ib Balance b/d I0,00,000 By Bank A,/c {i.000
lo Bank A,./c (Purchase) 2,94,000 By Accumulated Deprcciarion Ay'c 16,000 |

By Statement of Profit and Loss (Loss 2,000 |

on sale ofmachinery)
By Balance dd 12,70,000
12,9.1,000 l! 1U 000
While preparing Cash Flow Statement, which of the following is correct?
(a) ?2,9,000 will be shou,n under Operating Acrivities.
(b) (2,94,000 will be shown under Investing Activities.
(c) ( 12,70,0O0 will be shown under ()perating Activities.
(d) t 12,70,000 will be shown under Investing Activities.
30. Read the lbllowing statements-Asse rtion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Acquistion of machinery by issue of equity shares is not considered
while preparing Cash Flow Statement.
Reasou (R): lt is a transacdon nhich results in outflnw ofcash.
Alternatives:
(a) Both Asserti<.rn (A) and Reason (R) are true and Reason (R) is the correct explanation
ofAssertion (A).
(6) Both fusertion (A) and Reason (R) are true and Reason (R) is not rhe correct
explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
51. As a tool of financial analysis, differentiate between 'Current Ratio' and 'Quick Ratio'.
(Any three points ofdifferences)z
32. From the following information, calculate (i) Net Assets TUrnover, (ii) Fixed Assets
Tirrnover ratios.
Particulars ( ?) Particulars ( ?)

Prefercnce Share Oapital {.00,000 Plant and Machinery 8,00,000

Equity Sharc Capital 6,00.000 l,and and Ruilding 5,00,000
(;eneral Reserve I.00.(x)0 Motor Car 2,00,000
Balance in Statement of Profit and 3,(X),000 !'urniture 1.00,000
Loss
l5% Debentures 2,00,000 lnvcntory 1,80,000
l4ic Loan 2,00,000 Debtors I,10,000
Creditors I,40,000 Bank 80,000
Bills payable 50,000 (lash 30,000
()uastanding Expenses 10,000
OR
From the lbllowing, calculate (a) Net Profit Ratio (r) Operating Profit Rario
Eil I
Particulars
Rcvenue liom ()peration
IBI
2,00,000
2 Gross Prolit 75,000
3 ()flicc lixpcnses t5,000

lll
2E8 Accountancy-Xll
 4 Selling Expenses 26,000
5r Interest on Debentures 5,000
6 Accidental losses 12,000
7 lncome from Rent 2,500
33. Ot the basis oI the infonnation about the sh4re capitol atd ,h2 orhcr irems of X I*1. answer
the following questions :
X Ltd. has an authorised capital of{15,00,000 divided into 1,00,000 Equity shares of
( l0 each and 50,000, 97o preference shares of { l0 each.
The whole ofpreference shares were subscribed, called and paid. However, the company
issued only 90,000 equity shares. 85,000 equity shares were subscribed for. During the
first year, ?8 per share were called. Ram holding 1,000 shares did not pay first call oft2.
Also Shyam holding 2,000 shares did not pay first call of {2. Only Shyam's shares were
forfeited after the first call and later on I,500 of the forfeited shares were reissued at {6
per share, (8 called up.
The newly appointed account executive has been assigned the task of preparing the
Balance Sheet of the Company. He is confrrsed about the presentation of the following
items in the financial statemenc of the company as per Schedule III, Part I of the
Companies Act, 2013:
(a) Balance of the Statement of Profit and [,oss ?2,50,000
(b) Interest accrued on investments (80,000
(c) Livestock ?60,000
(d) Licenses and Franchise {2,40,000
(a) Work-in-progress (4,80,000
(fl 97c Debentures repayable during the current year. ? 18,00,000
(r) In the Balance Sheet ofX Ltd., at what amount subscribed Share Capital willbe reflected?
(,,) What will be the number ofequity shares ro be shown as 'Subscribed but not fully paid-
u p'?
(r,t) Which of the items mentioned in the case always be classified under the head 'Non-
current Assets' and sub-head 'Fixed assets'?
(trD Where will you show 97c Debentures repayable during the current year in the Balance
Sheet?
34. From the following particulars, prepare Cash Flow Statement (as per AS-3):
Particulars Noae Slst March, 3lst March,
No. 2020 (?) 2019 ( r)
EQUITY AND LIABILITIES
Shareholders' Funds
(a) Share Oapital I I,00,000 80,000
(6) Reserves and Surplus 2 6,400 6,000
2 Non-Current Liabilities
(rr) LonF-tcrm Borrowings 3 14,000 12,000
3 Current Uabilities
(rr) ShorI-term Borrowings I 13,600 25,000
(0) Trade Payables 22,000 24,000
( ) Short ternr provisions 8,400 6,000
'ftrtal l,(i4,.100 1,53,(XX)

'tll'
Sample Papers 269
.N \
 II. ASSETS
l Non-Curt'cDt Assets
(a) l'ixed Assets ('fangible) t; .-){ ),o(X) 60,000
2- Current ABsetB
(a) Inventories 5ft,.100 50,000
(6) liade Receivables 48,000 40,000
(r) Cash and Cash Equivalents 7.000 2,400
(d) ()ther Ourrent Assets I,000 600
Total 6I.l(Xl ------TEIood
Notes to Accounts
Particulars S lst March, 3l sr Merch,
2020 I fr 2019 l ?)
I Share Capital:
liquitv Shalc Oapital 80,000 80.000
127 l\'efclcncc Shale (:apilal 20,000
L00 (x)0 tt0.000
2. Reserves ead Surplus:
Ceneral Reserve 4,000 4,000
Surplus, i.e., Balance in Statement of Profit and Loss 2,400 2,000
(i {0{) {;.000
3. Long-termBorrowings:
l5% l)c'bentrrres 14.0(x)
4. Short.term Borrowings:
llank ()relrllali 13.600 -l&999
25,000
5. Shorl.te.mProvisions:
l\rrvision Iirl Tixation r.l,.1{)0 {;.00o
8,400 6,000
6 Fixcd Assct!:
Thngible Assets 80,000 82,000
I-ess: Accumulated Depreciation 30,000 22,000
50.000 6Cm0
7. Other Current Assets:
600
l'repaid [ixpcnscs
-_199q
Additbnal Information:
(a) Fixed Assets sold for { 10,000, their cost {20,000 and accumulated depreciation till the
date ofsale on them <6,000.
(D) lnterim Dividend paid during the year ?9,000.
(c) Provision for tax made {9,400.
(d) Proposed Dividend for previous year was ? 10,000 and current year is < I I,600.

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210 Accountancy-Xll
 Answers
t (r) t I1,90,000
9 (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
ofAssertion (A)
J (d) Capital Reserve Account
OR
(d) The maximum amount of share capital that a company is authorised to issue.
{ (a) ( 18,000, ( 18,000 and { 9,000
OR
(a) t I,625
5 (6) Dr U and Cr. W by ?10,500
6 (D) {9 per share
OR
(d) <7
7 (d) 437,500
8 (r) Debit of Profit and Loss Suspense Account
OR
(6) Equally
9. (r) {40,000
10. (r) 3,200
11. (d) { 800
12. (c) Both sacrificed equal share
t 3. (a) {60,000 and ?1,30,000
14. (D) Capital Ay'cs ofold partners
15. (D) will be allowed @ 6Vo p.a.
OR
(c) t8,000 and t4,000
16. (r) Realisation Account is the real Account.
17. Dr. Premium for Goodwill .Ay'c ? 1,000 and Chinki's Current A/c by t800
Cr. Sheetal's Capital A,/c by {900, and Raman's Capital ,Ay'c by t900.
18. Amount transferred to D's Loan A./c (4,00,000
OR
Amount to be brought in by Nandan t66,500
Amount to be brought in by Rosa ?29,000
19. Loss on Issue of Debentures { I ,50,000.
OR
Securities Premium Reserve {41,000, No. ofequity shares issued 41,000
20. Revaluation Loss (30,000
Partners' Capital A"ics:
Ram (1,27,000, Mohan (2,54,000, Sohan ?3,81,000, Hari t5,08,000
21. Subscribed Capital { 5,74,000
Amount transferred to As Executor's A,/c ?38,000
'lllr

Sample Papers 21t

 23. Amount received on allotment t I,88,000
Subscribed Share Capital t7,70,000
OR
Amount received on allotment ? I,08,000,
No. ofshares forfeited 4,000
21. Profit transferred to Partners' Cument A,./cs balances:
Shreya {78,508 Vivek t42,992
Parners' Current A,/cs:
Shreya (Cr.) t 1,66,058 Vivek (Dr.) ( 16,058
OR
Realisation Loss: {2,02,575
Amount brought in by Manan 166,515
Final payment made to; Sriian ?98,545 Raman (36,970
25 (d) Loss on Revaluation ? 1,50,000
(r:i) Dr. Aman's Current A,/c {60,000, Cr. Chirag's Capital Ay'c {30,000 and Varun's
Capital A,/c {30,000
(iii) Partners' Capital ly'c:
Chirag { 17,70,000 Varun { I 1,30,000 Aman t7,25,000
26. (i) (a) Loss on Issue of Debentures ? 12,000
(6) Discount on Issue of Debentures t2,00,000
(c) Debenture Suspense Account (20,00,000.
(ii) No. ofdebentures issued 3,200
(c) Proprietary ratio
OR
(b) Debt-equity ratio decreases
28. (c) Purchase ofgoods worth ?50,000 on credit
29. (c) {5,M,000
OR
(r) <2,94,000 will be shown under Investing Activit.ies.
30. (c) Assertion (A) is true but Reason (R) is false.
12. (i) 1.67 times (ii) 1.88 times
OR
(a) 9.757o (b) 17%
33. (r) I1,77,000 (ir) 84,500 shares
(li)
(a) Livestock, (D) Licenses and Franchise
(iu) Current Liabilities
t4. Cash from Operating Activities t22,800
Cash used in Investing Activities (8,000
Cash used in Financing Activides ( 10,200

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212 Accountancy-Xll I!