Must Do Sample Paper Solved and Un Solved With Pre Board Paper

ACCOUNTANCY-II
SAMPLE PAPER- THIRD (2023-24)

(COMMERCE GROUP & HUMANITIES GROUP)
Time :3Hrs Theory: 80 Marks
Section-A
Question number 1 is divided into 18 sub-parts, labeled 1(i) to 1(xviii), each carrying a weightage of
1 mark.
(i). Name any two not for profit organizations.
(ii) Income and Expenditure Account is :
(a) Real Account (b) Nominal Account (c) Personal Account (d) Capital Account
(iii) Honorarium paid is to income and expenditure account.
(iv) A partner who does not take part in regular conduct of business is called.
(v) If a partner withdraws equal amount at end of each quarter, then are to
be considered for interest on total drawings.
(a) 4.5 months (b) 6.5 months (c) 6 months (d) 3.5 months
(vi) Interest on Partners loan is Chargeable to .(P&I a/c, P&L Appr. a/c)
(vii) Name any two factors affecting goodwill of a firm.
(viii) A firm earns ₹10,000 annual profits, the average rate of return is 10%. The assets are of
₹80,000. The value of goodwill is ₹45,000. The outside liabilities are .
(ix) A new partner is a liable for past losses of a firm. (True/False)
(x) If Memorandum Revaluation Account is Prepared, The assets and liabilities will appear in the
balance sheet at:
(a) Market value (b) old value (c) Revalued figure (d) Cost Price
(xi) A minor can also be admitted as a Partner.(True/False)
(xii) As per AS-26,only Goodwill will be recorded in the books of accounts.
(xiii) Why do we calculate Gaining Ratio ?
(xiv) A partner can retire from the firm with the consent of all other partners only.(True/False)
(xv) Partner Executor account will be prepared at the time of of partner.
(xvi) The balance left in the capital account on dissolution of a firm is transferred to :
(a) Realisation Account (b) Profit and Loss (c) Bank Account (d) None
(xvii) On Dissolution of a firm, cash-in-hand is transferred to the Realisation A/c. (True/False)
(xviii) Give two causes of compulsory dissolution of a firm.
Question No. 2 to 9 will carry 2 marks each.
2. Determine the income from subscriptions for the year using the given information:
(i) Subscription received during the year: ₹10,400
(ii) Subscription outstanding at the end of the year: ₹4,200
(iii) Subscription outstanding at the beginning of the year: ₹1,200
(iv) Subscription received in advance at the end of the year: ₹1,400
(v) Subscription received in advance at the beginning of the year: ₹800
3. A partners withdrew ₹ 2,000 at the end of each month. Calculate interest on drawings at the
rate of 6% p.a.
4. Calculate the goodwill of a firm with partners A, B, and C based on three years' purchase of
Super Profit. The provided information is as follows:
(i) Average capital employed in the business: ₹9,00,000
(ii) Rate of interest from capital, considering the risk involved: 10%.
(iii) Net trading profits of the firm for the last 3 years: ₹1,61,400, ₹1,36,050, and ₹1,68,750
(iv) Fair remuneration for the partners for their services: ₹18,000 per annum.
5. What do you understand by reconstitution of a partnership ?
6. What is Revaluation Account?
7.How a partner can retire from the firm ?
8. X, Y, and Z were in a partnership with a ratio of 5:3:2. Unfortunately, on 15 – 2 – 2023, X
passed away. As a result, a new profit sharing ratio was established between Y and Z, which was
equal. calculate the gaining ratio.
9. Record the journal entries in the partnership firm's books that has been dissolved based on the
following scenario:
The firm had a total of ₹ 30,000 in creditors. Out of this amount, ₹ 5,000 was waived by the
creditors, while the remaining creditors agreed to a discount of 10% on their respective claims.
Question No. 10 consists of 4 subparts (i, ii, iii, iv). Attempt any 3 questions out of Four. Each
question will carry 4 marks.
(i) Write difference between Receipts and Payment Account and Cash Book.
(ii) On January 1, 2023, Armaan and Shinu formed a partnership. Armaan contributing ₹25,000 and
Shinu contributing ₹37,500. They agreed to share profits in the ratio of 3:2. Starting from March 1,
Shinu is entitled to a monthly salary of ₹75. Additionally, they decided to allow an annual interest
of 10% on their capital investments. Furthermore, a 5% annual interest is to be charged on any
drawings made.During the year, Armaan withdrew ₹1,500, while Shinu withdrew
₹2,500. Armaan's withdrawal incurred an interest of ₹25, while Shinu's withdrawal incurred an
interest of ₹50. On June 30, Armaan introduced an additional capital of ₹12,500. Before making
any adjustments, the profit for the year was ₹12,000. prepare the profit and loss appropriation
account.
(iii) Why Assets and liabilities are revalued on admission of a new partner give reasons.
(iv) On January 1st, 2009, RAM and SHAM, who are partners in a firm, have an equal share in
the firm's profits and losses. The firm's Balance Sheet on that date is as follows:
Assets
75,000
36,000
30,000
75,000
15,000
24,000
60,000
45,000
48,000
1,20,000
2,64,000 2,64,000
The firm was dissolved on that particular date, and the subsequent transactions occurred:
Mr. RAM committed to paying off Mrs. RAM's loan and acquired half of the stock at a 20%
reduced price. The outstanding book debts were collected, amounting to ₹54,000. The remaining
stock was sold, resulting in a 30% profit based on its cost. Sundry Creditors were settled with a
10% discount, while Bills payable were fully paid. The Plant and Machinery were sold for
₹75,000, and the Land & Buildings for ₹88,000. The expenses incurred during the realization
process amounted to ₹5,250.
Prepare the Realisation Account, Bank Account, and Partner's Capital Accounts in the firm's books.
Section-B
1. Question No. 11 consists of 12 sub parts 11(i) to 11(xii) carrying 1 mark each.
(i) What is Capital Reserve ?
(ii) Person who starts a company are called .
(iii) A company cannot issue .(Share at Premium, Share at Discount)
(iv) A company can purchase its own debentures.(True/False)
(v) What is meant by issue of debentures at discount ?
(vi) What are the methods of Redemption of Debentures ?
(vii) Write any two items presented under the head ‘Intangible Assets’ in the Balance Sheet of a
Company.
(viii) The term financial analysis includes both analysis and interpretation.(True/False)
(ix) Quick ratio is 1.5 : 1, current assets ₹8,00,000 and current liabilities ₹3,20,000. Value of
inventories will be :
(x) Issue bonus share is activity
(xi) Mention the net amount of cash inflow or outflow when a fixed assets (having book value
₹1,20,000) is sold at a loss of ₹40,000 in term of cash flow :
(a) Cash inflow of ₹80,000 (b) Cash outflow of ₹80,000 (c) Cash outflow of ₹40,000 (d) Cash
inflow of ₹40,000
(xii) Bank overdraft is cash . (True/False)
12.Explain the Difference between over and under subscription.
13.A limited Company forfeited 100 equity shares of the face value of ₹ 10 each, ₹ 6 per share
called up, for non payment of first call of ₹ 2 per share. The forfeited shares were subsequently re-
issued as fully paid @ ₹ 7 each. Give necessary entries in company's journal.
14. What do you mean by Simple or Naked debentures ?
15. S Ltd. took over Assets of ₹ 5,00,000 and Liabilities of ₹ 1,50,000 of A Ltd. for ₹ 3,80,000
payable by issue of 9% Debentures at 5% Discount. Give Journal entries in the books of S Ltd.
16. Enumerate the various tools of financial analysis.
17. Calculate current Ratio from the following :
Working Capital ₹ 6,00,000 Bills Payable ₹ 1,50,000 Other Current liabilities ₹ 1,50,000
18. During the year ending 31st December 2012, the total salary incurred amounted to ₹75,000.
This figure comprises outstanding salary and prepaid salary.
1. Outstanding Salary:
As of 1st January 2012: ₹10,000
As of 31st December 2012: ₹17,500
2. Prepaid Salary:
As of 1st January 2012: ₹7,500
As of 31st December 2012: ₹5,000
Question No. 19 has 3 subparts (i, ii, iii). Attempt any two questions out of three.
(i) Give the difference between Partnership and a company.
(ii) Prepare a Comparative Income Statement for the fiscal year ending on March 31, 2023:
Partculars 31 March 2023 31 March 2022
Revenue from operations 12,00,000 18,00,000

Cost of Material consumed 6,00,000 9,00,000
Other expenses 3,00,000 3,60,000
Tax 1,80,000 2,40,000
(iii) Prepare a cash flow statement based on the provided information:
Equity & Liabilities 31 March 2022 31 March 2023

(₹) (₹)
Share Capital 24,00,000 30,00,000
Reserve 4,50,000 6,00,000
Profit and Loss A/c 1,80,000 3,00,000
Debentures ------------- 6,00,000
Sundry Creditors 24,60,000 21,00,000
Provision for taxation 2,10,000 3,00,000
Proposed dividend 3,00,000 6,00,000
Total 60,00,000 75,00,000
Assets 31 March 2022 31 March 2023
(₹) (₹)
Machinery 15,00,000 21,00,000
Land and Building 12,00,000 18,00,000
Investments ---------------- 3,00,000
Sundry debtors 21,00,000 15,00,000
Stock 6,00,000 12,00,000
Cash in hand 6,00,000 6,00,000
Total 60,00,000 75,00,000
Additional information :
1. Income tax provision was made during the year ₹ 2,40,000.
2. Depreciation of ₹ 3,75,000 was charged on machinery during the year.
3. During the year one old machine costing ₹ 1,50,000 was sold for ₹ 1,05,000.
ACCOUNTANCY-II
SAMPLE PAPER- THIRD (2023-24)
Section-A
1 mark.
(i) Red Cross Society ; Religious Places
(ii) (b) Nominal Account
(iii) debited
(iv) Sleeping Partner
(v) (a) 4.5 months
(vi) P&I a/c
(vii) Quality of products; Favourable location
(viii) ₹25,000
(ix) False
(x) (b) old value
(xi) True
(xii) Purchased
(xiii) In order to ensure fair compensation for the outgoing partner, it is essential to calculate the
gaining ratio that determines the amount to be paid by the remaining partner.
(xiv) False
(xv) Death
(xvi) (c) Bank Account
(xvii) False
(xviii) (a) On the insolvency of any partner (b) Business of firm become illegal
2. ₹12800
3. ₹660
4. Total of last 3 years profits = ₹1,61,400 + ₹1,36,050 + ₹1,68,750 = ₹4,66,200
Average profit (before fair remuneration) = ₹4,66,200/3 = ₹1,55,400
Average Profits (after fair remuneration) = ₹1,55,400 – ₹18,000 = ₹1,37,400
Normal Profits = Average Capital Employed x10/100
= ₹9,00,000 x10/100 = ₹90,000
Super Profit = Average Profits (after fair remuneration) – Normal Profits
= ₹1,37,400 – ₹90,000 = ₹47,400
Goodwill = Super Profits x 3 years purchase
= ₹47,400 x 3 = ₹1,42,200
5. Partnership is a business relationship where individuals agree to share the profits of a business
carried out by all or any of them acting for all. Reconstitution of a partnership firm refers to the
process of making changes to the existing agreement among partners.There are various occasions
that may lead to the reconstitution of a partnership firm, including:
Change in Profit Sharing Ratio: If the partners decide to alter the distribution of profits among
themselves, it constitutes a change in the profit-sharing ratio and leads to the reconstitution of
the partnership.
Admission of a New Partner: When a new partner joins the existing partnership, the terms of
the agreement need to be adjusted to accommodate the new member. This results in the
reconstitution of the partnership.
Retirement of a Partner: If a partner decides to retire from the partnership, it requires a
revision of the partnership agreement, leading to the reconstitution of the firm.
Death of a Partner: In the event of the death of a partner, the partnership agreement needs to
be restructured to reflect the changes in the composition of the partnership.
6. When a firm is reconstituted, such as when a new partner is admitted, the assets and liabilities
are revalued based on their current value. The changes in the value of assets and liabilities are
recorded in a separate account called the 'Revaluation Account' or 'Profit and Loss Adjustment
Account'. The Revaluation Account is a nominal account and the difference between its two sides
represents the profit or loss, which is then distributed among the existing partners according to
their old ratio.
7. There are several ways in which a partner can retire, including:

1. With the consent of the other partners, whether it is implied or expressed.
2. In accordance with a specific agreement made by the partners.
3. By providing written notice to all other partners about his/her intention to retire, in the case of
a partnership at will [Section 32 (1)].
8. Gaining ratio of Y and Z is 2 : 3
9. Realisation A/c Dr.22,500
To Bank A/c 22,500
(Being final amount paid to creditors)
Working Note :
Total Amount of Creditors ₹ 30,000
Less : Amount waived by creditors ₹ 5,000
₹ 25,000
Less : Discount allowed by creditors ₹ 2,500
(10% of ₹ 25,000)
Final Amount paid to creditors ₹22,500
(i)
Part of Ledger:
Receipts and Payments Account: This document serves as a summarized record of cash
transactions specific to non-profit organizations and is distinct from the ledger. It provides
a holistic view of receipts and payments over a designated period.
Cash Book: Unlike the Receipts and Payments Account, the Cash Book is a fundamental
component of the ledger. It meticulously logs all cash transactions in chronological order,
offering a detailed and organized ledger account.
Date:
Receipts and Payments Account: Typically compiled at the conclusion of the financial
year, the Receipts and Payments Account provides an annual summary of cash activities.
Cash Book: In contrast, the Cash Book is dynamic and prepared datewise, enabling real-
time tracking and detailed reporting of cash transactions as they occur.
Ledger Folio:
Receipts and Payments Account: This document lacks a ledger folio column, providing a
consolidated view of transactions without specific references to ledger pages.
Cash Book: The Cash Book, on the other hand, incorporates a dedicated ledger folio
column, facilitating easy cross-referencing and enhancing the linkage between individual
ledger accounts.
Part of Final Account:
Receipts and Payments Account: Integral to the final accounts, particularly in the context
of non-profit organizations, the Receipts and Payments Account contributes significantly to
the comprehensive presentation of cash flows.
Cash Book: Unlike the Receipts and Payments Account, the Cash Book typically does
not find inclusion in the final accounts of other organizations. Its primary role is
maintaining a detailed, ongoing record of cash transactions.
Side:
Receipts and Payments Account: Transactions are recorded on respective sides without
adhering strictly to the traditional debit and credit designations.
Cash Book: Adhering to the traditional accounting format, the Cash Book is divided into
debit and credit sides, ensuring a clear and structured representation of cash inflows and
outflows.
(ii) Profit ₹4450

(iii) There are several reasons to consider revaluing assets and liabilities when admitting a new
partner:
1. The current value of assets and liabilities at the time of admission may differ from their book
value. Any gain or loss resulting from the revaluation will be allocated among the existing
partners based on their existing profit-sharing ratio.
2. Revaluing assets and liabilities ensures that the balance sheet reflects their current values. This
is important to present an accurate and fair picture of the firm's financial position.
3. If the current value of an asset exceeds its book value and the current value of liabilities is lower
than their book value, the existing partners may request a revaluation to account for the resulting
profit.
4. Conversely, if the current value of an asset is lower than its book value and the current value of
liabilities exceeds their book value, the new partner may insist on a revaluation to ensure a fair
share in the future.
Section-B
(i) Capital Reserve: Capital reserve is a type of reserve that is created out of capital profits, not
earned through normal business operations. It is generally not available for distribution as
dividends. Examples of capital reserves include profits from the sale of fixed assets, premiums on
the issue of shares or debentures, etc.
(ii) Promoters
(iii) Shares at Discount
(iv) True
(v) It refers to the situation where a company offers its debentures at a price lower than their face
value. The difference between the face value and the issue price is treated as a discount.
(vi)
The lump sum amount can be redeemed after the fixed period has expired.
The redemption can be done in instalments or through a drawing of lots.
Redemption can be achieved by purchasing in the open market.
Conversion into shares is another method of redemption.
(vii) (i) Copy Right, (ii) Goodwill, (iii) Patents, (iv) Trademark, (v) Franchise
(viii) True
(ix) Value of inventories: Quick ratio = (Quick Assets / Current Liabilities)
Quick ratio = 1.5 : 1 Quick assets = Current assets - Inventories
Given, Current assets = ₹8,00,000 and Current liabilities = ₹3,20,000
Therefore, Quick assets = 1.5 X ₹3,20,000 = ₹4,80,000
Inventories = Current assets - Quick assets = ₹8,00,000 - ₹4,80,000 = ₹3,20,000
(x) No
(xi) (a) Cash inflow of ₹80,000
(xii) False
12.
Over-subscription:
1. In this case, the number of shares subscribed is more than the number of shares offered by the
company.
2. In this case, all applications are not accepted in full.
3. The company returns the application money to the applicants to whom shares are not
allotted.
Under-subscription:
1. In this case, the number of shares subscribed is less than the number of shares offered by the
company.
2. All applications are accepted in full.
3. There is no question of returning money.
13. Share Capital A/c (100 x ₹ 6) Dr. 6,00

To Share Forfeiture A/c (100 x ₹ 4) 4,00
To Share 1st Call A/c (100 x ₹ 2) 2,00
(Forfeited 100 equity shares of the face value of ₹10 each, ₹6 per share called up, for non-
payment of the first call of ₹2 per share)
Bank A/c (100 x ₹ 7) Dr. 7,00
Share Forfeiture A/c (100 x ₹ 3) Dr. 3,00
To Share Capital A/c (100 x ₹ 10) 1,000
(Re-issued 100 forfeited equity shares as fully paid at ₹7 each)
Share Forfeiture A/c (₹400— ₹ 300) Dr.1,00
To Capital Reserve A/c 1,00
(Being the transfer of profit on re-issue to Capital Reserve)
14. Simple or Naked Debentures are debentures that lack any form of security for the repayment
of interest or principal. These debentures are typically issued by companies with a strong financial
position. They are classified as unsecured creditors and are listed under the 'Non Current Liabilities'
section on the Equity and Liabilities side of the Balance Sheet.
15.
Assets A/c Dr. 5,00,000
Goodwill A/c (B.F.) Dr.30,000
To Liabilities A/c 1,50,000
To A Ltd.’s A/c 3,80,000
(Being business of A Ltd. purchased)
A Ltd. Dr.3,80,000
Discount on Issue of Debentures A/c Dr.20,000
To 9% Debentures A/c 4,00,000
(Being 9% debentures issued at 5% discount)
Working Notes :
Number of Debentures to be issued = Amount Payable to Vendor/Issue price per debenture
= ₹ 3,80,000/₹95 = 4,000 Debentures.
* It is assumed that face value per debenture equal to ₹ 100.
16. a. Comparative Statements, b. Common Size Statements, c. Cash Budget, d. Fund Flow
Statement, e. Cash Flow Statement and, f. Ratio Analysis
17. Current Liabilities:
Bills Payable: ₹1,50,000
Other Current Liabilities: ₹1,50,000
Total Current Liabilities: ₹3,00,000
Current Assets:
Current Assets = Working Capital + Current Liabilities
Current Assets = ₹6,00,000 + ₹3,00,000
Current Assets = ₹9,00,000
Current Ratio:
Current Ratio = Current Assets / Current Liabilities
Current Ratio = ₹9,00,000 / ₹3,00,000
Current Ratio = 3:1
18. Salary paid during the year ended 31st December, 2012 ₹65,000
(i)
Regulating Act:
Company: Regulated by Companies Act, 2013
Partnership: Regulated by Indian Partnership Act, 1932
Registration:
Company: Compulsory before existence
Partnership: Not compulsory, optional
Minimum Number of Members:
Company: Private (Two), Public (Seven)
Partnership: Two
Maximum Number of Members:
Company: Private (200), Public (Unlimited)
Partnership: Up to Fifty (Up to ten for banking business)
Liability:
Company: Limited liability of shareholders
Partnership: Unlimited liability of partners
Management:
Company: Managed by directors
Partnership: Partners can manage the business
Capital:
Company: Capital changes as per Companies Act
Partnership: Capital changes by mutual agreement
Legal Status:
Company: Separate legal status distinct from members
Partnership: No distinct legal existence from partners
Transfer of Interest or Share:
Company: Shares freely transferable
Partnership: Transfer requires consent of other partners
Insolvency or Death:
Company: Does not affect the existence of the company
Partnership: Ceases on death, retirement, or insolvency of any partner
Winding Up:
Company: Wound up as per Companies Act
Partnership: Dissolved by agreement or court order
(ii) Prepare a Comparative Income Statement for the fiscal year ending on March 31, 2023:
31 March 2023 31 March 2022
Profit afterTax 3,00,000 1,20,000
(iii) Cash flow from Operating Activities ₹ 10,20,000: Cash used in Investing Activities ₹
19,20,000; Cash flow from Financing Activities ₹ 9,00,000.
ACCOUNTANCY-II
SAMPLE PAPER- FOURTH (2023-24)
Section-A
1 mark.
(i) What is Subscription ?
(ii) What is the accounting treatment of ‘Revenue Receipts’ ?
(iii) Excess of income over expenditure is called deficit. (True/False)
(iv) Name the Act which governs partnership firms in India.
(v) The liability of partners is limited. (True/False)
(vi) Partners’ Current Account has .(debit or credit balance, debit balance)
(vii) Which of the following is not a characteristic of goodwill?
(a) Intangibility (b) Invisibility (c) Precise value (d) Estimated value
(viii) The excess amount which the firm can get on selling its assets over and above the saleable
value of its assets is called:
(a) Surplus (b) Super Profit (c) Reserve (d) Goodwill
(ix) Unrecorded assets are recorded in existing partners' capital account. (True/False)
(x) What are accumulated profits?
(xi) Memorandum revaluation account is prepared in two parts.(True/False)
(xii) For any decrease in the value of a liability, the revaluation account is to be .
(xiii) How goodwill is recorded at the time of retirement or death of a partner ?
(xiv) As per AS-10, no goodwill can be recorded in the books unless .
(xv) R, S, and T were partners sharing profits in the ratio of 1/2, 3/10, and 1/5, respectively. If R
retires, what is the new profit-sharing ratio of S and T:
(a) 5 : 2 (b) 3:2 (c) 2:5 (d) 2:3
(xvi) What is dissolution by notice ?
(xvii) There was an unrecorded assets of ₹2,000 which was taken over by a partner at ₹1,500.
Partner’s Capital Account will be debited by :
(a) ₹2,000 (b) ₹200 (c) ₹1,500 (d) ₹2,500
(xviii) The repayment of the Partner's Loan occurs subsequent to the payment made to
parties.
2. For the financial year ending March 31, 2023, what amount should be posted to the income and
expenditure account, considering the following information:
Amount paid for stationery during the year = ₹3240
Opening stock of stationery on April 1, 2022 = ₹900
Creditors for stationery on April 1, 2022 = ₹600
Closing stock of stationery on March 31, 2023 = ₹150
Creditors for stationery on March 31, 2023 = ₹390
3. Write difference between Profit & Loss Account and Profit and Loss Appropriation Account.
4. Calculate goodwill based on 2 years' purchase of average profits of the last four years, which
are as follows :
I. First-year profit: ₹80,000
II. Second-year profit: 30% of the third year’s profits
III. Third-year profit:
A. First six months: 35% of the first year’s profits
B. Next six months: 40% of the profits from the first six months
IV. Fourth-year profit: Twice the second year’s profit
5. What adjustments need to be made when there is a change in the profit-sharing ratio among
existing partners?
6. A and B shared profits in the ratio of 3:2. When C is admitted as a partner, adjustments are made.
A surrenders 1/7th of his share, and B surrenders 1/3 of his share to accommodate C. Calculate the
new profit-sharing ratio.
7. Explain the concept of partner retirement.
8. A, B, and C were partners sharing profits in the ratio of 2:1:2. A decided to retire, and the amount
due to him on retirement for goodwill was determined to be ₹ 30,000. calculate the new ratio and
the gaining ratio if B contributed ₹ 5,000 and C contributed ₹ 25,000.
9. What is the journal entry to record a payment of ₹ 25,000 made to a partner in settlement of his
loan of ₹ 30,000 at the time of dissolution of the partnership firm?
(i) Prepare Income and Expenditure Account using the following information:
Receipts (₹) Payments (₹)
To Opening Cash 2,150 By Sales 12,000
To Opening Bank Balance 32,600 By Sports Expenses 13,800
To Subscription By Electricity Exp. 2,000
- 2013–2014 2,020 By Telephone Exp. 2,400
- 2014–2015 37,800 By General Body Exp. 400
- 2015–2016 1,800 By Postage Exp. 1,400
To Donations 14,000 By Printing and Stationery 1,700
To Bank Interest Received 2,680 Building Purchase A/c 24,000
To Receipts from Sports 5,200 Repair Expenses 800
To Telephone Recoveries 1,800 By Cash 3,530
By Bank 38,020
Total Receipts 1,00,050 Total Payments 1,00,050
The following changes need to be made:
(a) A building was bought last year for ₹ 2,00,000, with a payment of ₹ 1,36,000.
(b) There is an outstanding subscription of ₹ 2,200 as of 31-01-2015.
(c) There is an accrued interest of ₹ 400 on bank deposits that has not been received.
(d) There are outstanding salaries of ₹ 400.
(ii) Explain the concept of Partnership Deed and elaborate on its significance.
(iii) Explain the concept of 'Dissolution of Partnership' and list the various circumstances that
lead to the dissolution of a partnership.
(iv) The balance sheet of Singla and Mittal is shown below, with profits and losses distributed in the
ratio of 3:4 and 1:4 respectively.
Liabilities Amount (₹) Assets Amount (₹)

Creditors 70,000 Business premises 50,000
Bills payable 5,000 Fixtures 2,000
General reserve 8,000 Stock 40,000
Capital Accounts: Book debts 32,000
- Singla 60,000 Bills receivable 6,000
- Mittal 32,000 Cash at bank 40,000
Cash in hand 5,000
Total Liabilities 1,75,000 Total Assets 1,75,000
(iv) They admit Goyal into partnership on the following terms :

(i) That Goyal brings ₹ 20,000 as his capital for fifth share in future profits.
(ii) That Goodwill of the firm is valued at ₹ 40,000.
(iii) That the value of business premises be appreciated by 20%.
(iv) That the stock and fixtures be reduced by 10% each and a 5% reserve for doubtful debts be
created on book debts. Prepare revaluation account, partners capital accounts and also the
opening balance sheet of the new firm.
Section-B
(i) Explain the concept of a company.
(ii) Explain cumulative preference shares.
(iii) Balance of forfeited share is :
(a) Revenue reserve (b) Capital reserve (c) Reserve Capital (d) None of these
(iv) Profit on cancellation of own debentures is transferred to :
(a) Capital Reserve (b) Dividend Equalisation Fund (c) Statement of Profit & Loss (d) None
(v) What is coupon rate ?
(vi) What are Deep Discount Debentures ?
(vii) On the Company's Balance Sheet, under which category will you include 'Sundry Debtors'?
(viii) Live stock is a current asset.(True/False)
(ix) Standard or ideal Quick/liquid ratio is .
(x) What items are considered as cash equivalents?
(xi) Dividend received by a trading concern is considered as a activity.
(xii) A cash flow statement is an effective tool for short-term financial planning. (True/False)
12. Explain difference between calls in arrears and calls in advance.
13. Armaan Ltd. forfeited 300 shares of ₹ 10 each, fully called up, held by Shinu for non-payment
of allotment money of ₹ 3 per share, and final call money of ₹ 4 per share out of these shares 250
were re-issued to Raman for a total payment of ₹ 2,000. Give journal entries for forfeiture and re-
issue.
14. Write the differences between share and debenture.
15. What do you understand by Redemption of Debentures ?
16. What does trend analysis refer to?
17. The business has a current ratio of 2:1 and a quick ratio of 1.2:1. If the working capital is
₹1,50,000, determine the total current assets and stock.
18. Calculate the operating activities cash flow for Gunnu Limited based on the given details:
- Cash sales: ₹3,00,000
- Credit sales: ₹1,50,000
- Payment to creditors: ₹75,000
- Collection from debtors: ₹60,000
- Salaries and office expenses: ₹15,000
(i) Raja Automobiles Ltd. has released a prospectus offering 400,000 shares at ₹10 each, with the
following terms:
- ₹2 per share with the application
- ₹4 per share on allotment (including a premium of ₹1)
- ₹5 per share on the first and final call
The company received applications for 980,000 shares and made the following allotments:
(a) 260,000 shares were allotted to applicants of 360,000 shares.
(b) 100,000 shares were allotted to applicants of 320,000 shares.
(c) 40,000 shares were allotted to applicants of 300,000 shares.
Munna, who was allotted 1,040 shares on a pro-rata basis in category (a), failed to pay the
amount due on the allotment and call. As a result, his shares were forfeited after the necessary
notice. The following journal entries are required.
(ii) Write notes on the following:
(a) Loans and advances (b) Reserves and surplus
(iii) From the following information prepare cash flow statement :
Equity & Liabilities 31 March 2023 31 March 2022
(₹) (₹)
Share Capital 4,75,000 4,00,000
Securities Premium 60,000 –
Profit and Loss Account 56,000 (30,000)
15% Debentures 2,50,000 2,00,000
Sundry Creditors 1,10,000 50,000
Provision for Doubtful Debts 14,000 10,000
Provision for Repairs 2,000 –
Total 9,67,000 6,30,000
(₹) (₹)
Fixed Assets 5,00,000 2,00,000
Less : Accumulated Depreciation 48,000 30,000
Non-Current Investment 45,000 40,000
Stock 1,50,000 1,00,000
Sundry Debtors 1,06,000 2,26,000
(₹) (₹)
Cash 84,000 24,000
Current Investments 30,000 50,000
Cash in Bank 1,00,000 20,000
Total 9,67,000 6,30,000
Additional Information :
(a) Interim dividend paid during the year ₹ 36,000
(b) Additional Debentures issued ₹ 50,000 on 1st August, 2022. Interest on Debentures has been
paid regularly.
(c) Fixed Asset Costing ₹ 20,000 (Accumulated Depreciation ₹ 8,000) were sold for ₹ 17,000.
(d) Non current investments costing 10,000 were sold for ₹ 14,000.
ACCOUNTANCY-II
SAMPLE PAPER- FOURTH (2023-24)
Section-A
1 mark.
(i) Non-profit organizations receive a fixed amount from their members at regular intervals,
which is referred to as a subscription.
(ii) Shown on the credit side of the 'Income and Expenditure Account' as income.
(iii) False
(iv) Indian Partnership Act, 1932
(v) False
(vi) debit or credit balance
(vii) Precise value
(viii) (d) Goodwill
(ix) False
(x) Accumulated profits refer to the profits that remain undistributed over time and have not been
credited or debited to the partner's capital account.
(xi) True
(xii) Credited
(xiii) In the gaining ratio, the gaining partner's capital account is debited, while the sacrificial
partner's capital account is credited. This is done proportionately to the retiring or deceased
partner's share.
(xiv) Purchased
(xv) (b) 3:2
(xvi) In the event that the partnership is at will, it is possible for any partner to dissolve the firm
by providing written notice to all the other partners regarding their intention to dissolve the firm.
(xvii) (c) ₹1,500
(xviii) Third
2. ₹3780
3.
Profit and Loss Account:
Nature of Transactions: Items debited to Profit and Loss Account are charges against profit.
Purpose: Prepared to ascertain the net profit or net loss of the organization for the accounting
year.
Order of Preparing: Prepared after the Trading Account.
Profit and Loss Appropriation Account:
Nature of Transactions: Items debited to Profit and Loss Appropriation Account represent
the appropriation of profit.
Purpose: Prepared to appropriate the net profit among partners or for specific purposes.
Order of Preparing: Prepared after Profit and Loss Account.
4. ₹1,81,120
5.
(i) Calculation of sacrificing/gaining ratio
(ii) Adjustment of Goodwill
(iii) Adjustment of Reserve and Profits
(iv) Adjustment of Debit balance of profit and loss and Advertisement Suspense Account
(v) Adjustment of Re-evaluation of assets and liabilities
(vi) Adjustment of capital
6. 54:28:23
7.
Voluntary Association: Partnership is a voluntary association, and any partner has the right to
retire from the firm at their discretion.
Reasons for Retirement: A partner may choose to retire due to various reasons, including age,
ill health, better opportunities, disputes with other partners, or personal considerations.
Loss of Future Rights: Upon retirement, a partner loses the right to participate in the future
activities and decisions of the firm. The retirement marks the end of their active involvement
in the business.
Interest on Unpaid Balance: Even after retirement, a partner may be entitled to receive interest
on their unpaid balance from the firm. The interest is usually calculated at a specified rate,
such as 6% per annum.
Reconstitution of the Firm: The retirement of a partner leads to the reconstitution of the firm.
The remaining partners may need to adjust their profit-sharing ratios, and the financial structure
of the business may undergo changes.
Settlement of Claims: The retiring partner has a claim against the firm, which is settled during
the process of retirement. This claim may involve receiving a lump sum amount or having the
amount transferred to the partner's loan account.
Transfer to Loan Account: The retiring partner's claim may be settled by transferring the
amount to their loan account. This implies that the firm acknowledges a liability to the
retiring partner, and the payment is made in installments.
Interest on Unpaid Balance: The firm may agree to pay interest to the retiring partner on the
unpaid balance of their claim. The interest is often agreed upon and specified in the partnership
agreement.
8. New Ratio of B & C = 4 : 11
9.
Partner’s Loan A/c Dr.30,000
To Bank A/c 25,000
To Realisation A/c 5,000
(Being amount paid for Partners loan and profit transfer to Realisation A/c)
(i) Surplus ₹ 29,180
(ii) Explain the concept of Partnership Deed and elaborate on its significance.
According to the Partnership Act, it is not necessary for every firm to create a 'Partnership Deed'.
However, it is an optional document that is made because of its importance in the following ways:
1. Explains the Rights, Duties, and Powers of Partners: The partnership deed states the rights,
duties, and powers of each partner, which helps in the smooth operation of the firm.
2. Clears Confusion: By having a partnership deed, any doubts or confusion in the minds of the
partners can be eliminated.
3. Resolves Disputes: If any disputes arise among the partners or with the nominee of a deceased
partner, they can be resolved by referring to the partnership deed.
4. Assists in Profit Distribution: The profits of the firm are distributed among the partners in
various forms such as interest on capital, partner's salaries, commissions, bonuses, etc. The
partnership deed helps in preparing the Profit and Loss Appropriation Account.
5. Acts as a Legal Document: The partnership deed serves as a legal document that helps in
resolving any future disputes that may arise among the partners or their nominees.
(iii) When a partnership dissolves, it means that the agreement between the partners changes. This
happens when a new partner admits or an existing partner Retires or passes away. However, the
partnership firm continues its business as usual with a new agreement, so it doesn't completely
dissolve.
There are several reasons why a partnership may dissolve, including:
1. When a partner passes away.
2. When a new partner joins the business.
3. When an existing partner becomes insolvent.
4. When a partner decides to retire early.
5. When the agreed-upon partnership period expires.
(iv) The revaluation profit amounts to ₹ 4200. The capital account balances are as follows: Singla
has ₹75,150, Mittal has ₹37,050, and Goyal has ₹20,000
Section-B
(i) Explain the concept of a company.
Ans: Company is an artificial person created by the process of law, having separate entity with
perpetual succession and a common seal.
(ii) Explain cumulative preference shares.
Ans: These preference shares are entitled to receive dividends even if the company faces losses.
(iii) Balance of forfeited share is :
Ans: (b) Capital reserve
(iv) Profit on cancellation of own debentures is transferred to :
Ans: (a) Capital Reserve
(v) What is coupon rate ?
Ans: The debentures are issued with a specific interest rate called the coupon rate, which is the
guaranteed interest rate that the issuer will periodically pay to the debenture holders.
(vi) What are Deep Discount Debentures ?
Ans: Deep discount debentures are bonds or debentures issued at a significant discount to face
value. The difference between the issue price and the face value represents the interest income for
the bondholder. These debentures are issued with the intention of raising funds at a lower
effective cost of borrowing.
(vii) On the Company's Balance Sheet, under which category will you include 'Sundry Debtors'?
Ans: ‘Sundry Debtors’ shown in the company’s Balance sheet under main head ‘Current Assets’
and sub head ‘Trade Receivables’
(viii) Live stock is a current asset.(True/False)
Ans: false
(ix) Standard or ideal Quick/liquid ratio is .
Ans: Ideal Quick Ratio is 1:1
(x) What items are considered as cash equivalents?
Ans: bank balance, Marketable securities or short term investments, etc.
(xi) Dividend received by a trading concern is considered as a activity.
Ans: Investing
(xii) A cash flow statement is an effective tool for short-term financial planning. (True/False)
Ans: True
12. Explain difference between calls in arrears and calls in advance.
Calls in arrears Calls in advance:

1. Calls in arrears happen 1. Calls in advance occur
when a shareholder fails to when applicants pays more
pay the required call money than what is
money. This is called calls required. This is known as
in arrears. calls in advance.
2. The company charges 2. The company allows
interest on calls in arrears. interest on calls in arrears.
3. According to table 'F', the 3. According to table 'F', the
rate of interest is 10% per rate of interest is 12% per
annum. annum.
13. Armaan Ltd. forfeited 300 shares of ₹ 10 each, fully called up, held by Shinu for non-payment
of allotment money of ₹ 3 per share, and final call money of ₹ 4 per share out of these shares 250
were re-issued to Raman for a total payment of ₹ 2,000. Give journal entries for forfeiture and re-
issue.
Ans: journal entries for forfeiture and re-issue of Shares:
On Forfeiture of Shares
Shares Capital A/c (300 x ₹ 10) Dr.3,000
To Share Forfeiture A/c (300 x ₹ 3) 900
To Share Allotment A/c (300 x ₹ 3) 900
To Share Final Call A/c (300 x ₹ 4) 1,200
(Being 300 Shares forfeited for non-payment of allotment and final call)
On re-issue of shares to Raman
Bank A/c (250 x ₹ 8) Dr. 2,000
Share forfeiture a/c (250 x ₹ 2) Dr. 5,00
To Share Capital A/c (250 x ₹ 10) 2500
(Being 250 forfeited shares re-issued for ₹ 8 per share)
Share forfeiture A/c (750-500) Dr. 250
To Capital Reserve A/c 250
(Being the transfer of profit)
14. Write the differences between share and debenture.
Ans: differences between a share and a debenture
Basis Share Debenture
Name 1. A person who has a share is 1. The person holding the
known as a shareholder. debenture is called a debenture
Ownership holder.
2. The shareholder is the one 2. The debenture holder is the
who owns the company. creditor of the company.
Reward 3. Dividends are the payment 3. The reward is the payment
that shareholders receive as a of interest.
reward.
Rate 4. The amount of dividend 4. A fixed rate of interest is
depends on the profits and the paid on debentures irrespective
decisions made by the Board of profit or loss.
of Directors.
At winding up 5. When the company is 5. At the time of winding up

winding up, the share capital is debentures are payable in
paid after all the debts are priority over share capital.
settled.
15. What do you understand by Redemption of Debentures ?

Ans: Debenture redemption occurs when a company repays its debt to debenture holders. These
debentures have a specified due date and the company discloses the redemption details in the
prospectus. The redemption can be done at par, at a premium, or at a discount. It can be a lump sum
payment or in instalments. If allowed by the Articles of Association and prospectus terms,
debentures can be redeemed early through a draw of lots or by purchasing them from the market.
The company can redeem debentures by issuing new debentures or shares, using profits, or realising
assets.
16. What does trend analysis refer to?

Ans: Trend analysis is a really helpful way to compare financial statements from different years. It's
like looking at a timeline and seeing how things change over time. To do this, we pick oneyear
as the "base year" and compare everything to that. We calculate percentages for each year based on
the same thing from the base year. This helps us see if things are going up or down.
17. The business has a current ratio of 2:1 and a quick ratio of 1.2:1. If the working capital is
₹1,50,000, determine the total current assets and stock.
Ans:
Working Capital Calculation
Working Capital = Current Assets - Current Liabilities
1,50,000 = C.A. - C.L.
C.A. = 1,50,000 + C.L.
Current Ratio Calculation
Current Ratio = Current Assets / Current Liabilities
2/1 = 1,50,000 + C.L. / C.L.
C.L. = ₹ 1,50,000
Quick Ratio Calculation
Quick Ratio = Quick Assets / Current Liabilities
1.2/1 = Quick Assets / 1,50,000
Quick Assets = ₹ 1,80,000
Stock = 3,00,00–1,80,000 = ₹ 1,20,000
- Current Liabilities (C.L.): ₹ 1,50,000
- Quick Assets: ₹ 1,80,000
- Current Assets (C.A.): ₹ 3,00,000
- Stock: ₹ 1,20,000
18. Calculate the operating activities cash flow for Gunnu Limited based on the given details:
- Cash sales: ₹3,00,000
- Credit sales: ₹1,50,000
- Payment to creditors: ₹75,000
- Collection from debtors: ₹60,000
- Salaries and office expenses: ₹15,000
Ans:
Cash Inflows
- Cash Sales: ₹ 4,00,000
- Collection from the debtors: ₹ 80,000
Total Cash Inflows: ₹ 4,80,000
Cash Outflows
- Payment to Creditors: ₹ 1,00,000
- Salaries and Office Expenses Paid: ₹ 20,000
Total Cash Outflows: ₹ (1,20,000)
Net Cash Flow from Operating Activities : ₹ 3,60,000
(i) Raja Automobiles Ltd. has released a prospectus offering 400,000 shares at ₹10 each, with the
following terms:
- ₹2 per share with the application
- ₹4 per share on allotment (including a premium of ₹1)
- ₹5 per share on the first and final call
The company received applications for 980,000 shares and made the following allotments:
(a) 260,000 shares were allotted to applicants of 360,000 shares.
(b) 100,000 shares were allotted to applicants of 320,000 shares.
(c) 40,000 shares were allotted to applicants of 300,000 shares.
Ans: Bank A/c Dr. 19,60,000
To Share Application A/c19,60,000
(Being application money received on 9,80,000 shares)
Share Application A/c Dr. 19,60,000
To Share Capital A/c 8,00,00
To Share Allotment A/c 7,60,000
To Share First and Final call A/c 2,40,000
To Bank A/c 1,60,000
(Being application money adjusted)
Share Allotment A/c (4,00,000 sh. x ₹ 4) Dr. 16,00,000

To Share Capital A/c 12,00,000
To Securities Premium Reserve A/c 4,00,000
(Being allotment money due on 4,00,000 shares including premium)
Bank A/c Dr.8,36,640

Calls in Arrears A/c Dr. 3,360
To Share Allotment A/c 8,40,000
(Being allotment money received after adjustment of advance and except from 1,040 shares of
Munna)
Share First and final call A/c (4,00,000 x ₹ 5) Dr.20,00,000

To Share capital A/c 20,00,000
(Being first and final call money due at ₹ 5 per share)
Bank A/c Dr.17,54,800

Calls in Arrears A/c (1,040 shares x ₹ 5) Dr.5,200
To Share First and final call A/c 17,60,000
(Being first and final call money received after adjustment of advance and except on 1,040
shares)
Working Notes:
Calculation of Allotment Money Received
- Allotment money due on 4,00,000 shares @ ₹ 4 each: ₹ 16,00,000
- (–) Advance Allotment Received: ₹ 7,60,000
- Allotment Money to be Received: ₹ 8,40,000
Adjustment for Proportionate Allotment

- Allotment due on 1,040 shares @ ₹ 4 per share: ₹ 4,160
- (–) Proportionate Advance Allotment (2,00,000/2,60,000 X 1,040 sh.) ₹ 800
- Adjusted Allotment Due: ₹ 3,360
Allotment Money Received

- Allotment Money Not Paid: -₹ 3,360
- Allotment Money Received: ₹ 8,36,640
(ii) Write notes on the following:
(a) Loans and advances: There are two types of loans and advances on the assets side of the
Balance sheet. One is long-term loans and advances, and the other is short-term loans and
advances. Long-term loans and advances are given for a period exceeding 12 months and are
shown under 'Non-current Assets'. Examples include capital deposits, security deposits, loans and
advances to related parties, and other loans and advances.
Short-term loans and advances are given for periods not exceeding 12 months and are shown
under 'Current Assets'. Examples include loans given to employees or customers, and other loans
given for short periods.
(b) Reserves and surplus: Reserves and surplus are shown on the 'Equity and Liabilities' side of the
Balance Sheet under 'Shareholders funds'. They include capital reserves, capital redemption reserve,
securities premium reserve, debentures redemption reserve, revaluation reserve, share options
outstanding account, other reserves, and surplus. Surplus refers to the balance in the statement of
profit and loss after appropriation such as dividend, bonus shares, and transfer to/from reserves,
etc.
(iii) Cash Flow Statement
Net Cash from Operating Activities

- Amount: ₹ 3,10,000
Net Cash used in Investing Activities

- Amount: ₹ (3,04,000)
Net Cash Flow from Financing Activities

- Amount: ₹ 1,14,000
ACCOUNTANCY-II
SAMPLE PAPER- FIFTH (2023-24)
Section-A
1 mark.
(i) What is legacy ?
(ii) The difference between ‘Income and Expenditure account sides is showed as .
(iii) Entrance fees to a club is shown as a payment. (True/False)
(iv) What is fluctuating capital account?
(v) The business of the firm can be conducted even by one partner. (True/False)
(vi) In the absence of agreement, the profits are shared in ratio.
(vii) Average profit ₹50,000, Normal Profit ₹30,000, Amount of goodwill calculated on the basis
of three year’s purchase of the super profit is :
(a) ₹50,000 (b) ₹20,000 (c) ₹60,000 (d) ₹80,000
(viii) Calculated net effect of revaluation when revised values are to be recorded in books. Stock
is to be valued at 10% less (Book value ₹3,00,000). Provision for bad debts is no more required
(shown in balance sheet for ₹4,000). an outstanding salary which is unrecorded of ₹16,000.
(a) ₹42,000 profit (b) ₹40,000 profit (c) ₹40,000 loss (d) ₹42,000 loss
(ix) Profit or loss on revaluation is distribution among old partners in sacrificing ratio.
(True/False)
(x) What are accumulated losses?
(xi) A new partner on admission has to pay share of goodwill of the Old Farm.(True/False)
(xii) Old profit sharing ratio minus New profit sharing ratio is .
(xiii) How goodwill is recorded at the time of retirement or death of a partner ?
(xiv) Retirement of a partner results in of the firm. (Reconstitution/Dissolution)
(xv) L, M and N are partners sharing profits in the ratio of 5 : 3 : 2. If N retires, the new profit
sharing ratio between L and M will be :
(a) 3 : 5 (b) 1 : 1 (c) 5 : 3 (d) 3 : 3
(xvi) What is dissolution by Agreements ?
(xvii) Court may also dissolve a firm, if a partner a suit, that one of the partners
is of mind.
(xviii) Goodwill appearing in the balance sheet at ₹12,000 proved to be value less, this transaction
at the credit side of Realisation a/c. (will not be recorded/will be recorded)
2. The Armaan Club's Receipts and Payments Account showed that they received ₹68500 in
subscriptions for the year ending on March 31st, 2023.
Additional information:
On March 31st, 2023, they received ₹2,500 in advance subscriptions.
As of March 31st, 2023, there were ₹5,400 in outstanding subscriptions.
As of April 1st, 2022, they had ₹4,100 in advance subscriptions.
As of March 31st, 2022, there were ₹6,500in outstanding subscriptions.
What would appear in the final accounts for the year ending on March 31st, 2023.
3. What is Profit and Loss appropriation account?
4. The profits of A, B, and C for the past four years were like this:
2021 - ₹10,000 2021 - ₹15,000 2022 - ₹20,000 2023 - ₹22,500
Calculate the value of goodwill for three years purchase of the average weighted profits.
5.What are types self generated of goodwill?
6. L and M are partners in a business, with L receiving 30% and M receiving 20% of the profits.
Now, N has been admitted into the partnership with a 10% share. Calculate the new ratio.
7.Find out the necessary items that must be credited to the account of the retiring partner.
8. X, Y, and Z are partners sharing profits in the ratio of 4:2:3 respectively. Z has decided to retire,
and as a result, his share will be taken up by X and Y in the ratio of 3:1. Calculate newratio
between X and Y.
9. Give Journal Entries for realisation expenses when :
(i) Realisation expenses ₹ 7,000 were paid by the firm.
(ii) Realisation expenses ₹ 6,000 were paid by partner Amit.
(i) The following particulars relate to ABC Club for the year ending 31st December, 2023 :
Receipts ₹ Payment ₹
To Balance b/d 300 By Salaries 622
To Subscription : By Stationery 120
Arrears 12 By Rates and Taxes 180
Current 633 By Telephone 30
Advance 24 669 By Investments 380
To Profit from canteen 450 By Advertisements 53
To General Incomes 56 By Postage 50
To Sale of old News 22 By Sundries 175
papers By Balance c/d 130
To Dividends 243
1,740 1,740
Prepare the Income and Expenditure Account by making the following adjustments:
1. There are 450 members who pay ₹1.50 as an annual subscription. At the beginning of the year,
₹14 was in arrears for 2022.
2. The stock of stationery was ₹15 on 31st December 2022 and ₹54 on 31st December 2023.
3. The cost of the building is ₹3,000 and it depreciates by 5%.
(ii) P and Q are partners. R was admitted as a partner with a 1/10 share in the profits.
1. R contributed ₹30,000 as capital.
2. A provision for doubtful debts of 10% was made.
3. An amount of ₹600 for prepaid insurance was recorded in the books.
4. The building's value increased by 5%.
5. The machinery's value decreased by 5% due to depreciation.
6. Creditors were undervalued by ₹4,500.
Prepare the Revaluation Account.
Balance Sheet
Liabilities ₹ Assets ₹
Capital : Cash 48,000
P 90,000 Stock 24,000
Q 75,000
Reserves 30,000 Debtors 16,000
Creditors 84,000 Less: Provision 1,000 45,000
Gratuity Fund Payable 45,000 Machinery 90,000
Output CGST 4,500 Building 1,20,000
Output SGST 4,500 Advertisement Suspense A/c 6,000
3,33,000
3,33,000
(iii) What are the rules that apply when there is no partnership deed?
(iv) What are the differences between dissolution of a partnership and dissolution of a firm?
Section-B
(i) What is meant by Right Issue of Shares ?
(ii) What is called up capital ?
(iii) Interest on call in arrears is charged according to table F :
(a) 10% (b) 5% (c) 12% (d) 8%
(iv) A Ltd. issued 1,000, 10% debentures of ₹100 each at a premium of 5%. What will be the total
amount of interest for one year ?
(a) ₹10,500 (b) ₹5,500 (c) ₹5,000 (d) ₹10,000
(v) Which debentures are repayable after a long period time or on winding up of the company ?
(vi) What is Debenture Stock ?
(vii) Write types of Balance Sheets.
(viii) A company is required to publish its accounts every year.(True/False)
(ix) The ratio measures how fast a company can sell its inventory.
(x) The sale of Copyrights is concerned with activity.
(xi) Goodwill amortised is the profit made during the year for calculating
the cash flow from operating activities (added to/deducted from).
(xii) Expenses paid in advance at the end of the year are the profit made during
the year (added to/deducted from).
12. What are sweat equity shares?
13. ABC Company has an authorized capital of ₹ 5,00,000, which is divided into 5,000 shares with
a value of ₹ 100 each. Out of these, 4,000 shares were issued to the public. The public subscribed
for 3,000 shares and paid the full face value of ₹ 100 per share. Show share capital in the Balance
Sheet.
14. What is zero coupon bond ?
15. Explain Debenture redemption reserves.
16. Write any two qualities or characteristics of an ideal financial statement.
17. Find Debt-equity ratio by using the following information:
Capital employed is ₹ 6,00,000, total debts are ₹ 2,00,000, and current liabilities are ₹ 1,00,000.
18. Classify the following activities:
(a) Cash Sale (b) Patent Purchased (c) Income Tax Paid (d) Dividend paid
(i) What are the characteristics of a company?
(ii) From the following information prepare cash flow statement :
Particulars Note No. Current Year Previous Year
I. Equity and Liabilities
Shareholders Funds :
Share Capital 1,25,000 1,00,000
Reserve and Surplus :
Surplus (Profit & Loss 35,000 25,000
Balance)
II. Non-current Liabilities
Long-Term Borrowings :
10% Debentures 40,000 50,000
III. Current Liabilities
Creditors 30,000 20,000
Bills Payable 50,000 10,000
Outstanding Expenses 10,000 12,500
TOTAL 2,90,000 2,17,500
IV. Assets
Non-current Assets
Tangible Assets :
Land and Building 1,40,000 1,00,000
Machinery 65,000 50,000
Intangible Assets : 1,000 5,000
Goodwill 25,000 35,000
V. Current Assets 20,000 10,000
Inventories
Trade Receivable 6,000 2,000
Input IGST 12,000 4,000
Input CGST 12,000 4,000
Input SGST
Cash and cash equivalents :
Cash 9,000 7,500
TOTAL 2,90,000 2,17,500
the following information prepare Comparative Income Statement:
(iii) From
Particulars Current Year Previous Year
Revenue from operation 5,00,000 6,00,000
Other Income 30,000 50,000
Employee benefits Expenses 1,50,000 1,00,000
Other Expenses 20,000 50,000
Tax Rate 40%
Pre-Board Examination, January 2024
Accountancy – 10+2
(COMMERCE AND HUMANITIES GROUP)
Time: 3 Hrs. Max. Marks: 80

Sections - A
Q. 1 All parts are compulsory. Each question carries one mark: (18x1=18marks)
Answer the following Questions :

i. What is Donation?
ii. What do you mean by retirement of a partner?

iii. What are Fixed Capital Accounts of partners?
iv. In which ratio, the premium brought in by new partner as his share of goodwill, is shared by old
partners?
Write True or False:
v. A partnership can be formed for legal business only.

vi. Capital Reserve Account always shows credit balance.
vii. Unrecorded Liabilities are recorded in the credit side of Revaluation Account.
viii. Goodwill is given to the retiring partner in new ratio.
xi. Employees provident fund is an outside liability.
Multiple choice questions :
x. L and M are sharing profits and losses in the ratio of 5 : 3. They agree to admit X, their manager, into partnership
who is to get 1/4th share in the profits. He acquires this share entirely from L. The new profit sharing ratio will be:
(a) 5 : 3 : 1 (b) 19 : 13 : 8 (c) 1 : 1 : 1 (d) 3 : 3 : 2
xi. Source of Income for a non-profit organisation is: ਇੱ ਕ ਗੱਰ -ਲੱਭ ਕ ੱਰ ੱ ਸੱ ਗਠਨ ਲਈ ਆਮ ਦ ਨ ੱ ਦ ੱ ਸ ਰ ੱਤ ਕ ੱ ਹ ੱ?
(a) Subscription from Members (b) Donation (c) Entrance Fees (d) All of these
xii. An unrecorded asset was valued at ₹ 1,50,000. On firm’s dissolution, it was sold at 60% of its value.
Realisation account will be credited with:
(a) ₹ 1,50,000 (b) ₹ 90,000 (c) No Entry (d) ₹ 1,12,500
xiii. Super Profit = Average Profit - …..?.....

(a) Premium (b) Normal profit (c) Gross profit (d) None of these
Fill in the Blanks :
xiv. The executor is entitled to all the rights of a (old Partner / deceased Partner)
xv. Income and Expenditure account is a account. (personal / Nominal)

xvi. Increase in liability is a (profit / loss)
xvii. In the absence of an agreement, interest on a partner’s loan shall be paid @ . (6% p.a. / no Interest.)
xviii. Firm’s property is applied first for settling _ (private Debt / firm’s Debt)
All Questions are compulsory from question no. 2 to question no. 9, carry 2 marks each.
(2x8=16 marks)
2. X, Y and Z are partners in a firm. At the time of division of profit for the year, there was dispute between
the partners. Profit before Interest on partner’s loan was ₹ 15,000 and Y demands interest @ 12% p.a. on
his loan of ₹ 1,00,000. There was no agreement on this point. Calculate the amount payable to X, Y and Z
respectively.
3. X,Y and Z sharing profits and losses in the ratio of 3 : 2 : 1, decide to share future profits and losses in
the ratio of 4 : 3 : 2 with effect from 1st April, 2023. Following is an extract of their Balance Sheet as at 31st
March, 2023:
Workmen Compensation 2,00,000
Reserve
Pass journal entries if a claim on account of workmen’s compensation is estimated at ₹ 80,000.
4. P, Q and R are partners in a firm sharing profits in the ratio 1 : 1 : 1. On April 1, 2023, P retires and, on
that date, there was a debit balance of ₹ 45,000 in the profit and loss account and ₹ 15,000 in the goodwill
account. Q and R decided to share future profits in the ratio of 1 : 2. Show the necessary journal entry for
the treatment of profit and loss account balance and goodwill account on P’s retirement.
5. A firm is under dissolution. Pass journal entries in the following cases :
(a) Realisation expenses of the firm amounting to ₹ 2,800 paid by partner A.
(b) An unrecorded machinery realized ₹ 8,500.
6. X, Y and Z are partners sharing profits in the ratio of 1 : 2 : 3. Z retires and for this purpose goodwill is
valued at three year’s purchase of average super profits of last three years.
Profits of the last three years are as under :
First year ₹ 1,50,000
Second year ₹ 1,50,000
Third year ₹ 1,80,000
The normal profits for similar firms are ₹ 1,50,000. Calculate the amount of goodwill payable to Z.
7. What do you mean by Change in Profit Sharing Ratio?
8. Write two adjustments that are required at the time of admission of a new partner.
9. What is income and expenditure account?
10. Do any Three questions out of Four questions. Each question carry four marks (4x3=12)
(i) The following is the Balance Sheet of X and Y as at 31st March, 2022 who share profits in the
ratio of 2 : 1. 4
31 ਮ ੱਰ ਚ, 2022 ਨੱ ੱ X ਅਤ ੱ Y ਦ ੱ ਅੱ ੱਤ ਮ ੱਚੱ ਠ ੱ ਹ ੱਠ ਅਨ ੱਸ ੱਰ ਹ ੱ ਜ ੱ ਮ ੱਨ ੱਫ ੱ ਨੱ 2:1 ੱਵੱ ਚ ਸ •ਝ ੱ ਕ ਰ ਦ ੱ ਹ ਨ
Liabilities Rs Assets Rs
Bank Overdraft 15,000 Sundry Debtors 40,000
Reserve Fund 12,000 Less : Provision 3,600 36,400
Sundry Creditors 20,000 Stock 20,000
Capitals : X 40,000 Building 25,000
Y 30,000 Patents 2,000
Machinery 33,600
1,17,000 1,17,000
3 2 1
They admitted Z into partnership on 1st April, 2022. New profit sharing ratio is agreed as : : .
6 6 6
(1) Z brings in Rs. 10,000 in cash as his share of Goodwill and 19,000 for capital.
(2) Provision for doubtful debts is to be reduced by Rs. 2,000.
(3) There is an old typewriter valued Rs. 2,600. It does not appear in the books of the firm. It is now to
be recorded.
(4) Patents are valueless.
(5) 2% discount is to be received from creditors.
Prepare Revaluation A/c and Capital A/cs of the partners.
: :
(ii) A, B and C decided to dissolve the partnership firm. The position as at 31st March, 2023, the date
of dissolution, was as follows :
Creditors 2,75,000 Furniture 5,000
A’s Loan Account 30,000 Stock 1,75,000
Capital Accounts : Debtors 2,40,000
A 1,00,000 Bills Receivables 30,000
B 50,000 Cash 10,000
C 5,000 1,55,000
4,60,000 4,60,000
They share profit and losses in the ratio of 5 : 3 : 2.
i. ₹ 20,000 of the debtors proved Bad.
ii. The bills receivables were realised in full.
iii. The stock realised ₹ 1,70,000.
iv. Furniture was taken over by B at Book value.
v. Expenses of Realisation amounted to ₹ 20,000.
Prepare Realisation account.
(iii) Write any four features of Partnership business.
(iv) Write any four features of receipts & payments Account.

Sections - B
Q. 11 All parts are compulsory. Each question carry one mark: (12x1=12marks)
Answer the following Questions
i. What are Convertible Preference Shares?

ii. What are Current Liabilities?
iii. What do you mean by Cash Equivalent?
Write True or False
iv. Debentures holders are the owners of the company.

v. Memorandum of Association mentions authorised capital.
vi. Cash flow statement is based upon accrual basis of accounting.
Multiple choice questions
vii. Fixed assets of a company increased from ₹ 6,00,000 to ₹ 8,00,000. What is the percentage of
change in fixed assets?
(a) 30% (b) 33.33% (c) 60% (d) 25%
viii. Shareholders receive from the company: ਅੱ ਸ਼ ਧ ੱਰ ਕ ਕੱ ਪ ਨ ੱ ਤ ਪ ˛ੱ ਪ ਤ ਕ ਰ ਦ ੱ ਹ ਨ :
(a) Dividend (b) Profit (c) Commission (d) Interest
ix. If debentures of the face value of ₹ 80,000 are issued at a discount of 10% for net assets worth ₹ 70,000
the balance of ₹ 2,000 will be debited to:
(a) Capital Reserve account (b) Goodwill account (c) Profit and Loss account (d) None of these
Fill in the Blanks:
x. Purchase of goodwill is an activity. (Investing / Financing)

xi. In a company’s Balance Sheet appear under the head ‘non-current assets’. (cash / goodwill)
xii. Discount on issue of debentures is a asset. (fictitious / non-current)
All Questions are compulsory from question no. 12 to question no. 18, carry two marks each.
(2x7=14 marks)
12. C Ltd. forfeited 1000 shares of ₹ 10 each, issued at par for non-payment of a first call of ₹ 2 per share.
The final call of ₹ 2 has not yet been called. Out of these, 400 shares were re-issued as ₹ 8 paid up for ₹ 6
per share. Pass the necessary journal entries.
13. Calculate the Current Ratio from the following information: ਹ ੱਠ ੱਦੱ ਤ ੱ ਜ ੱਣ ਕ ੱਰ ੱ ਤ ਚੱਲ ੱ ਅਨ ੱਪ ੱਤ ਦ ੱ ਗਣ ਨ ੱ ਕ ਰ ੱ:
Rs.
Total Assets 9,00,000
Fixed Assets 5,40,000
Non Current Investments 1,10,000
Shareholder’s Funds 6,20,000
Non Current Liabilities 80,000
14. Aman Ltd. purchased machinery for ₹ 2,20,000. Half of the payment was made in cash and the
remaining half by the issue of 12% debentures at a premium of 10%. Pass necessary journal entries.
15. The following is the abstract of balance sheet of Moon Ltd. for the year ended 2022 & 2023.
Balance Sheet
Liabilities 31.12.2022 31.12.2023 Assets 31.12.2022 31.12.2023
(₹) (₹)
Furniture 20,000 25,000
Additional Information
(i) Depreciation during the year ₹ 4,000.
(ii) Furniture costing ₹ 3,000 on which depreciation has accumulated ₹ 800, was sold for ₹ 2,000.
Calculate the value of Furniture purchased during the year.
16. What do you mean by ‘Financial Statement Analysis’?
17. What are Bonus Shares?
18. What are registered and bearer Debentures?
Do any two questions out of three questions. Each question carry four marks. (4x2=8)
Suraj limited invited applications for 3,000 equity shares of ₹100 each payable as follows: On Application
……… ₹ 30
On Allotment ……… ₹ 40
On First Call ……… ₹ 20
On Final Call ……… The Balance
Applications were received for 3,300 shares. Allotments were made on following basis:
(i) To applicants for 2,100 shares – in full.
(ii) To applicants for 1,200 shares – 900 shares
Excess money paid on application was utilized towards allotment money.
Hari who was allotted 90 shares out of the group applying for 1,200 shares failed to
pay allotment money and money due on calls. His shares were forfeited.
Pass journal entries in the books of the company.
(ii) Prepare a Common-size Balance Sheet of X Ltd. and Y Ltd.
Liabilities X Ltd. Y Ltd.

Share Capital 3,00,000 4,00,000
Reserves & Surplus 2,00,000 3,00,000
Current Liabilities 1,00,000 50,000
Total 6,00,000 7,50,000
Assets
Fixed Assets 5,00,000 5,00,000
Current Assets 3,00,000 4,00,000
8,00,000 9,00,000
(iii) Write down the four limitations of cash flow statement.
---:---
Pre-Board Examination, January 2024
Accountancy – 10+2
(COMMERCE AND HUMANITIES GROUP)
Time: 3 Hrs. Max. Marks: 80

Sections - A
Q. 1 All parts are compulsory. Each question carries one mark: (18x1=18marks)
Answer the following Questions ਹ ੱਠ ੱਲ ਖ ੱ ਪ ਨ • ਦ ੱ Ⓒਤ ਰ ੱਦ ਉ :
i. What is Donation? ਦ ੱਨ ਕ ੱ ਹ ੱ?
ii. What do you mean by retirement of a partner? ਇੱ ਕ ਸ •ਝੱਦ ੱਰ ਦ ੱ ਸ ੱਵ ੱਮ ੱਕ ਤ ੱ ਤ ਤ ੱਹ ੱਡ ੱ ਕ ੱ ਭ ੱਵ ਹ ੱ?

iii. What are Fixed Capital Accounts of partners? ਸ •ਝੱਦ ੱਰ • ਦ ੱ ਸ ੱਥੱ ਰ ਪੱ ੱਜ ੱ ਖ ੱਤ ੱ ਕ ੱ ਹ ਨ ?
iv. In which ratio, the premium brought in by new partner as his share of goodwill, is shared by old
partners?
ਨ ਵ ਸ •ਝੱਦ ੱਰ ਦ ੱਆਰ ੱ ਸ ੱਖ਼ ਦ ੱ ਆਪ ਣ ੱ ੱਹੱ ਸ ੱ ਵ ਜ ੱਲਆੱਦ ੱ ੱਗਆ ਪ ੱ˛ ਮ ੱਅਮ , ਪ ੱਰ ੱਣ ੱ ਸ •ਝੱਦ ੱਰ • ਦ ੱਆਰ ੱ ੱਕ ਸ ਅਨ ੱਪ ੱਤ ੱਵੱ ਚ ਵੱ ੱਡ ਆ ਜ •ਦ ੱ ਹੱ?
Write True or False ਸ ਹ ੱ ਜ • ਗਲਤ ੱਲ ਖ ੱ :
v. A partnership can be formed for legal business only. ਸ •ਝੱਦ ੱਰ ੱ ਕ ੱਵ ਲ ਇੱ ਕ ਕ ੱਨੱ ੱਨ ੱ ਕ ੱਰ ੱਬ ੱਰ ਲਈ ਬ ਣ ੱਈ ਜ ੱ ਸ ਕ ਦ ੱ ਹ ੱ।

vi. Capital Reserve Account always shows credit balance. ਪੱ ੱਜ ੱ ੱਰ ਜ਼ ਰ ਵ ਖ ੱਤ ੱ ਹ ਮ ੱ©ੱ ਕ ੱੱਡ ਟ ਬ ਕ ੱਇਆ ੱਦ ਖ ੱⒸਦ ੱ ਹ ੱ।
vii. Unrecorded Liabilities are recorded in the credit side of Revaluation Account.
ਨ ੱ-ਦ ਰ ਜ ਕ ੱਤ ੱਆੱ ਦ ੱਣ ਦ ੱਰ ੱਆੱ ਪ ੱਨ ਰ -ਮ ੱਲ •ਕ ਣ ਖ ੱਤ ੱ ਦ ੱ ਕ ੱੱ˛ ਡ ਟ ਪੱ ਖ ੱਵੱ ਚ ਦ ਰ ਜ ਕ ੱਤ ੱਆੱ ਜ •ਦ ੱਆੱ ਹ ਨ ।
viii. Goodwill is given to the retiring partner in new ratio.
ੱਰ ਟ ੱਇਰ ਹ ੱਣ ਵ ੱਲੱ ਸ •ਝੱਦ ੱਰ ਨੱ ੱ ਸ ੱਖ਼ ਨ ਵ ਅਨ ੱਪ ੱਤ ੱਵੱ ਚ ੱਦੱ ਤ ੱ ਜ •ਦ ੱ ਹ ੱ ।
xi. Employees provident fund is an outside liability. ਕ ਰ ਮ ਚੱਰ ੱ ਭ ੱਵੱ ਖ ਫੱ ਡ ਇੱ ਕ ਬ ੱਹ ਰ ੱ ਦ ੱਣ ਦ ੱਰ ੱ ਹ ੱ ।
Multiple choice questions ਬਹ ੱ-ੱਵ ਕ ਲ ਪ ੱ ਪ ˛ਸ਼ ਨ :
x. L and M are sharing profits and losses in the ratio of 5 : 3. They agree to admit X, their manager, into partnership
who is to get 1/4th share in the profits. He acquires this share entirely from L. The new profit sharing ratio will be:
(a) 5 : 3 : 1 (b) 19 : 13 : 8 (c) 1 : 1 : 1 (d) 3 : 3 : 2
L ਅਤ ੱ M 5 : 3 ਦ ੱ ਅਨ ੱਪ ੱਤ ੱਵੱ ਚ ਲੱਭ ਅਤ ੱ ਹ ੱਨ ੱ ਨੱ ੱ ਸ •ਝ ੱ ਕ ਰ ਦ ੱ ਹ ਨ । ਉ ਹ ਆਪ ਣ ੱ ਮ ੱਨ` ਜ ਰ X ਨੱ ੱ ਸ •ਝ ੱਦ ੱਰ ੱ ੱਵੱ ਚ ਸ਼ ੱੱਮ ਲ ਕ ਰ ਨ ਲਈ ਸੱਹਮਤ ਹੱ ੱਦ ੱ
ਹ ਨ । X ਨੱ ੱ ਮ ੱਨ ੱਫ ੱ ੱਵੱ ਚ 1/4 ੱਹੱ ਸ ੱ ੱਦੱ ਤ ੱ ਜ ੱਣ ੱ ਹ ੱ। ਉ ਹ ਇਹ ੱਹੱ ਸ ੱ ਪ ੱਰ ੱ ਤ ਰ ¸• L ਤ ਪ ˛ੱਪ ਤ ਕ ਰ ਦ ੱ ਹ ੱ। ਨ ਵ • ਲੱਭ ਵੱ ਡ ਅਨੱਪ ੱਤ ਕ ੱ ਹ ੱਵ ੱਗ ੱ?
(a) 5 : 3 : 1 (b) 19 : 13 : 8 (c) 1 : 1 : 1 (d) 3 : 3 : 2
xi. Source of Income for a non-profit organisation is: ਇੱ ਕ ਗੱਰ -ਲੱਭ ਕ ੱਰ ੱ ਸੱ ਗਠਨ ਲਈ ਆਮ ਦ ਨ ੱ ਦ ੱ ਸ ਰ ੱਤ ਕ ੱ ਹ ੱ?
(a) Subscription from Members (b) Donation (c) Entrance Fees (d) All of these
(a) ਮ ਬ ਰ • ਤ ਚੱ ਦ ੱ (b) ਦ ੱਨ (c) ਦ ੱਖ ਲ ੱ ਫ ੱਸ (d) ਇਹ ਸ ੱਰ ੱ
xii. An unrecorded asset was valued at ₹ 1,50,000. On firm’s dissolution, it was sold at 60% of its value.
Realisation account will be credited with:
(a) ₹ 1,50,000 (b) ₹ 90,000 (c) No Entry (d) ₹ 1,12,500
xiii. Super Profit = Average Profit - …..?..... ਸ ੱਪ ਰ ਲੱਭ = ਔਸ ਤ ਲੱਭ - …..? .....
(a) Premium (b) Normal profit (c) Gross profit (d) None of these
Fill in the Blanks
xiv. The executor is entitled to all the rights of a (old Partner / deceased Partner)
xv. Income and Expenditure account is a account. (personal / Nominal)

xvi. Increase in liability is a (profit / loss)
xvii. In the absence of an agreement, interest on a partner’s loan shall be paid @ . (6% p.a. / no Interest.)
xviii. Firm’s property is applied first for settling _ (private Debt / firm’s Debt)
All Questions are compulsory from question no. 2 to question no. 9, carry 2 marks each.
(2x8=16 marks)
2. X, Y and Z are partners in a firm. At the time of division of profit for the year, there was dispute between
the partners. Profit before Interest on partner’s loan was ₹ 15,000 and Y demands interest @ 12% p.a. on
his loan of ₹ 1,00,000. There was no agreement on this point. Calculate the amount payable to X, Y and Z
respectively.
3. X,Y and Z sharing profits and losses in the ratio of 3 : 2 : 1, decide to share future profits and losses in
the ratio of 4 : 3 : 2 with effect from 1st April, 2023. Following is an extract of their Balance Sheet as at 31st
March, 2023:
Workmen Compensation 2,00,000
Reserve
Pass journal entries if a claim on account of workmen’s compensation is estimated at ₹ 80,000.
4. P, Q and R are partners in a firm sharing profits in the ratio 1 : 1 : 1. On April 1, 2023, P retires and, on
that date, there was a debit balance of ₹ 45,000 in the profit and loss account and ₹ 15,000 in the goodwill
account. Q and R decided to share future profits in the ratio of 1 : 2. Show the necessary journal entry for
the treatment of profit and loss account balance and goodwill account on P’s retirement.
5. A firm is under dissolution. Pass journal entries in the following cases :
(a) Realisation expenses of the firm amounting to ₹ 2,800 paid by partner A.
(b) An unrecorded machinery realized ₹ 8,500.
6. X, Y and Z are partners sharing profits in the ratio of 1 : 2 : 3. Z retires and for this purpose goodwill is
valued at three year’s purchase of average super profits of last three years.
Profits of the last three years are as under :
First year ₹ 1,50,000
Second year ₹ 1,50,000
Third year ₹ 1,80,000
The normal profits for similar firms are ₹ 1,50,000. Calculate the amount of goodwill payable to Z.
7. What do you mean by Change in Profit Sharing Ratio?
8. Write two adjustments that are required at the time of admission of a new partner.
9. What is income and expenditure account?
10. Do any Three questions out of Four questions. Each question carry four marks (4x3=12)
(i) The following is the Balance Sheet of X and Y as at 31st March, 2022 who share profits in the
ratio of 2 : 1. 4
Liabilities Rs Assets Rs
Bank Overdraft 15,000 Sundry Debtors 40,000
Reserve Fund 12,000 Less : Provision 3,600 36,400
Sundry Creditors 20,000 Stock 20,000
Capitals : X 40,000 Building 25,000
Y 30,000 Patents 2,000
Machinery 33,600
1,17,000 1,17,000
3 2 1
They admitted Z into partnership on 1st April, 2022. New profit sharing ratio is agreed as : : .
6 6 6
(1) Z brings in Rs. 10,000 in cash as his share of Goodwill and 19,000 for capital.
(2) Provision for doubtful debts is to be reduced by Rs. 2,000.
(3) There is an old typewriter valued Rs. 2,600. It does not appear in the books of the firm. It is now to
be recorded.
(4) Patents are valueless.
(5) 2% discount is to be received from creditors.
Prepare Revaluation A/c and Capital A/cs of the partners.
: :
(ii) A, B and C decided to dissolve the partnership firm. The position as at 31st March, 2023, the date
of dissolution, was as follows :
Creditors 2,75,000 Furniture 5,000
A’s Loan Account 30,000 Stock 1,75,000
Capital Accounts : Debtors 2,40,000
A 1,00,000 Bills Receivables 30,000
B 50,000 Cash 10,000
C 5,000 1,55,000
4,60,000 4,60,000
They share profit and losses in the ratio of 5 : 3 : 2.
i. ₹ 20,000 of the debtors proved Bad.
ii. The bills receivables were realised in full.
iii. The stock realised ₹ 1,70,000.
iv. Furniture was taken over by B at Book value.
v. Expenses of Realisation amounted to ₹ 20,000.
Prepare Realisation account.
(iii) Write any four features of Partnership business.
(iv) Write any four features of receipts & payments Account.

Sections - B
Q. 11 All parts are compulsory. Each question carry one mark: (12x1=12marks)
Answer the following Questions
i. What are Convertible Preference Shares?

ii. What are Current Liabilities?
iii. What do you mean by Cash Equivalent?
Write True OR False
iv. Debentures holders are the owners of the company.

v. Memorandum of Association mentions authorised capital.
vi. Cash flow statement is based upon accrual basis of accounting.
Multiple choice questions
vii. Fixed assets of a company increased from ₹ 6,00,000 to ₹ 8,00,000. What is the percentage of
change in fixed assets?
(a) 30% (b) 33.33% (c) 60% (d) 25%
viii. Shareholders receive from the company: ਅੱ ਸ਼ ਧ ੱਰ ਕ ਕੱ ਪ ਨ ੱ ਤ ਪ ˛ੱ ਪ ਤ ਕ ਰ ਦ ੱ ਹ ਨ :
(a) Dividend (b) Profit (c) Commission (d) Interest
ix. If debentures of the face value of ₹ 80,000 are issued at a discount of 10% for net assets worth ₹ 70,000
the balance of ₹ 2,000 will be debited to:
(a) Capital Reserve account (b) Goodwill account (c) Profit and Loss account (d) None of these
Fill in the Blanks
x. Purchase of goodwill is an activity. (Investing / Financing)
xi. In a company’s Balance Sheet appear under the head ‘non-current assets’. (cash / goodwill)
xii. Discount on issue of debentures is a asset. (fictitious / non-current)
All Questions are compulsory from question no. 12 to question no. 18, carry two marks each.
12. C Ltd. forfeited 1000 shares of ₹ 10 each, issued at par for non-payment of a first call of ₹ 2 per share.
The final call of ₹ 2 has not yet been called. Out of these, 400 shares were re-issued as ₹ 8 paid up for ₹ 6
per share. Pass the necessary journal entries.
13. Calculate the Current Ratio from the following information: ਹ ੱਠ ੱਦੱ ਤ ੱ ਜ ੱਣ ਕ ੱਰ ੱ ਤ ਚੱਲ ੱ ਅਨ ੱਪ ੱਤ ਦ ੱ ਗਣ ਨ ੱ ਕ ਰ ੱ:
Rs.
Total Assets 9,00,000
Fixed Assets 5,40,000
Non Current Investments 1,10,000
Shareholder’s Funds 6,20,000
Non Current Liabilities 80,000
14. Aman Ltd. purchased machinery for ₹ 2,20,000. Half of the payment was made in cash and the
remaining half by the issue of 12% debentures at a premium of 10%. Pass necessary journal entries.
15. The following is the abstract of balance sheet of Moon Ltd. for the year ended 2022 & 2023.
Balance Sheet
Liabilities 31.12.2022 31.12.2023 Assets 31.12.2022 31.12.2023
(₹) (₹)
Furniture 20,000 25,000
Additional Information
(i) Depreciation during the year ₹ 4,000.
(ii) Furniture costing ₹ 3,000 on which depreciation has accumulated ₹ 800, was sold for ₹ 2,000.
Calculate the value of Furniture purchased during the year.
16. What do you mean by ‘Financial Statement Analysis’?
18. 17. What are Bonus Shares?
19. What are registered and bearer Debentures?
20. Do any two questions out of three questions. Each question carry four marks. (4x2=8)
Suraj limited invited applications for 3,000 equity shares of ₹100 each payable as follows: On Application
……… ₹ 30
On Allotment ……… ₹ 40
On First Call ……… ₹ 20
On Final Call ……… The Balance
Applications were received for 3,300 shares. Allotments were made on following basis:
(i) To applicants for 2,100 shares – in full.
(ii) To applicants for 1,200 shares – 900 shares
Excess money paid on application was utilized towards allotment money.
Hari who was allotted 90 shares out of the group applying for 1,200 shares failed to
pay allotment money and money due on calls. His shares were forfeited.
Pass journal entries in the books of the company.
(ii) Prepare a Common-size Balance Sheet of X Ltd. and Y Ltd.
Liabilities X Ltd. Y Ltd.

Share Capital 3,00,000 4,00,000
Reserves & Surplus 2,00,000 3,00,000
Current Liabilities 1,00,000 50,000
Total 6,00,000 7,50,000
Assets
Fixed Assets 5,00,000 5,00,000
Current Assets 3,00,000 4,00,000
8,00,000 9,00,000
(iii) Write down the four limitations of cash flow statement.

ACCOUNTANCY-II
ANSWER KEY-ACCOUNTANCY PRE-BOARD (2023-24)
Section-A
1 mark.
(i) It is a money received by non-profit organisation from the members and non members
occasionally.
(ii) When a partner decided to leave the partnership firm, due to any reason, it is called retirement
of a partner.
(iii) In this scenario, the partners' capital balances remain unaltered unless there are specific
circumstances that warrant a change.
(iv) Sacrifice Ratio
(v) True
(vi) True
(vii) False
(viii) False
(ix) True
(x) (d) 3:3:2
(xi) (d) All of These
(xii) (b) ₹ 90,000
(xiii) (b) Normal Profit
(xiv) Deceased Partner
(xv) Nominal
(xvi) Loss
(xvii) 6% p.a.
(xviii) Firm’s Debt
2. X will get ₹3,000;Y will get ₹9,000; Z will get ₹3,000
3.
Workmen Compensation Reserve A/c Dr. 2,00,000
To Workmen Compensation Payable A/c 80,000
To X’s Capital A/c 60,000
To Y’s Capital A/c 40,000
To Z’s Capital A/c 20,000
(Being Liability paid and Workmen Compensation Reserve distributed among partners in their
old ratio)
4.
P’s Capital A/c Dr. 20,000
Q’s Capital A/c Dr. 20,000
R’s Capital A/c Dr. 20,000
To Profit and Loss A/c 45,000
To Goodwill A/c 15,000
(Being P & L distributed and goodwill written off among partners in their old ratio)
5.Realization A/c Dr. 2,800
To A’s Capital A/c 2,800
(Being realization Exp. paid by Partner A)
Cash A/c Dr. 8,500
To Realisatiion A/c 8,500
( Being unrecorded assets of firm realized)
6.
Average Profit of the Last years = ₹ 1,50,000 + ₹ 1,50,000 + ₹ 1,80,000 = ₹ 4,80,000
Average Profit over the Last 3 years = ₹ 4,80,000 / 3 = ₹ 1,60,000
Super Profit = AP-NP
Super Profit = 160,000-1,50,000
Super Profit = 10,000
Firm’s Goodwill = Super Profit x 3 years purchase = ₹ 10,000 x 3 = ₹ 30,000
Z’s Share in Goodwill = ₹ 30,000 x 3/6 = ₹ 15,000
X’s Capital A/c Dr. 5,000
Y’s Capital A/c Dr. 10,000
To Z’s Capital A/c 15,000
(Being Z’s share of goodwill compensated by remaining partners in gaining ratio)
7. Partnership is a business relationship where individuals agree to share the profits of a business
carried out by all or any of them acting for all. Reconstitution of a partnership firm refers to the
process of making changes to the existing agreement among partners.There are various occasions
that may lead to the reconstitution of a partnership firm, including:
Change in Profit Sharing Ratio: If the partners decide to alter the distribution of profits
among themselves, it constitutes a change in the profit-sharing ratio and leads to the
Admission of a New Partner: When a new partner joins the existing partnership, the terms of
the agreement need to be adjusted to accommodate the new member. This results in the
Retirement of a Partner: If a partner decides to retire from the partnership, it requires a
revision of the partnership agreement, leading to the reconstitution of the firm.
Death of a Partner: In the event of the death of a partner, the partnership agreement needs to
be restructured to reflect the changes in the composition of the partnership.
8. Firstly, they have the right to share in the future profits of the firm. This share is determined by
the sacrifice made by the existing partners.
Secondly, the new partner also has the right to share in the assets of the firm, as they have introduced
capital into the business. However, it is important to note that the right to share in the profits will
result in a reduction of the existing partners' profits. Therefore, the new partner is required to make
a payment, known as a premium, to compensate the old partners for the benefits they will receive
from sharing in the future profits. The term premium refers to the payment one has to make in order
to enjoy the rewards of someone else's hard work.
9.
1. The principle of this account is to debit all expenses and losses, and credit all incomes and gains.
It is considered a nominal account.
2. Similar to the Profit and Loss Account, this account records all expenses and losses on the
debit side, while all incomes and gains are recorded on the credit side.
3. This account specifically records revenue-related items, such as revenue receipts (recorded as
incomes) and revenue payments (recorded as expenditures). It does not include items of capital
nature.
4. Non-profit organizations prepare this account to determine their net result for the year, whether
it is a surplus or a deficit.
5. Only items from the current year are recorded in this account. It includes all expenses of the
current year, whether they have been paid or are payable, as well as all incomes of the current
year, whether they have been received or are receivable. Items from the previous year and the
following year are not considered.
(i) X, Y, and Z have capital balances of ₹60,000, ₹35,000,and ₹19,000, respectively, resulting in
Revaluation profit of ₹ 3,000
(ii) Realisation Loss ₹45,000
(iii)
Two or more persons: A partnership requires a minimum of two individuals to form. While there
is no specified maximum number of partners in the Partnership Act, the Indian Companies Act,
2013, restricts the number of partners to 50.
Agreement: The formation of a partnership must be a result of a voluntary agreement among the
parties involved. It cannot be formed by the operation of law.
Existence of Business and Profit Motive: Partnerships are formed with the purpose of engaging in
a legal business activity with the intention of earning profits. The business must be lawful.
Sharing of Profits: The agreement between partners should outline the sharing of profits or losses
arising from the business activities. This mutual sharing is a fundamental aspect of a partnership.
(iv)
1. The Receipts and Payments Account is a summary of the Cash Book, where the total amount
paid and received for each specific item is recorded.
2. It follows the principle of 'Debit what comes in and credit what goes out', making it a real
account.
3. The account starts with the cash and bank balance, and after recording all cash and bank
receipts and payments, it ends with the closing cash and bank balance.
4. On the debit side of this account, all receipts, whether capital or revenue, are shown, while on
the credit side, all payments, whether capital or revenue, are shown.
5. It includes all receipts and payments related to the current year, previous year(s), and following
year(s).
6. Non-cash items like depreciation, outstanding expenses, and accrued incomes are not
considered in this account.
7. The Receipts and Payments Account is an integral part of the final accounts of Not for profit
organizations.
Section-B
(i) If preference shares are converted into equity shares upon redemption, they are referred to as
convertible preference shares.
(ii) It refers to those liabilities which fall due for payment in a relatively shorter period ( normally,
within one year). These are also known as current liabilities. For example, creditors, short term
loans, outstanding expenses etc.
(iii) 'Cash equivalents' are short term highly liquid investments, that are readily convertible into
known amount of cash and which are subject to an insignificant risk of changes in value. Examples
of cash equivalents are Treasury Bills, Commercial Papers Marketable Securities, etc. An
investment is considered to be cash equivalent only when it has a short-term maturity, saythree
months or less from the date of its acquisition.
(iv) False
(v) True
(vi) False
(vii) 33.33%
(viii) (a) Dividend
(ix) (b) Goodwill account
(x) Investing
(xi) Goodwill
(xii) Fictitious
12.
Share Capital A/c (1,000 x ₹ 8) Dr. 8,000
To Share Forfeiture A/c (100 x ₹ 6) 6,000
To Share 1st Call A/c (100 x ₹ 2) 2,000
(Forfeited 1,000 shares of the face value of ₹10 each, ₹8 per share called up, for non-payment of
the first call of ₹2 per share)
Bank A/c (400 x ₹ 6) Dr. 2,400
Share Forfeiture A/c (400 x ₹ 2) Dr. 8,00
To Share Capital A/c (400 x ₹ 8) 3,200
(Re-issued 100 forfeited equity shares as fully paid at ₹7 each)
Share Forfeiture A/c (₹2,400— ₹ 8,00) Dr.1,600
To Capital Reserve A/c 1,600
(Being the transfer of profit on re-issue to Capital Reserve)
13. Current Assets = Total Assets-Fixed Assets-Non Current Investments
= 9,00,000-5,40,000-1,10,000
Current Assets =2,50,000
Total Assets = Total Liabilities
Total Assets = Shareholder’s Fund + Non Current Liabilities + Current Liabilities
9,00,000 = 6,20,000+80,000+Current Liabilities
Current Liabilities = 2,00,000
Current Ratio = Current Assets/Current Liabilities
Current Ratio = 2,50,000/2,00,000
Current Ratio = 1.25:1
14.Machinery A/c Dr.2,20,000
To Cash A/c 1,10,000
To Vendor A/c 1,10,000
(Being the purchase of assets )
Vendor A/c Dr. 1,10,000
To 12% Debenture A/c 1,00,000
To Securities Premium A/c 10,000
(Being the issued of 10,000 Debenture at 10% premium)
15. ₹ 11,200
16. The analysis of financial statements is an essential and methodical approach to thoroughly
evaluate the financial information presented in the statements. By comprehending andinterpreting
these statements, one can effectively make informed decisions about the company's operations.
17. Bonus shares are additional shares given to the current shareholders without any additional cost,
based upon the number of shares that a shareholder owns. These are company's accumulated
earnings which are not given out in the form of dividends, but are converted intofree shares.
18. Registered debenture: The concept of registered debentures involves the payment being made
to the individual whose name is listed in the register of debenture holders. These debentures can
be transferred by executing a regular deed in favor of the recipient. The interest on these debentures
is payable to the registered holder, as specified in the interest warrant issued by the company or
through interest coupons attached to the debentures, which can be redeemed by the bearer on the
due dates.
Bearer debenture: a bearer debenture can be paid to anyone who holds the debentures. It can be
easily transferred just by handing it over. The company does not keep any records of the debenture
holders. The interest on these debentures is paid through interest coupons that are attached to the
debentures and are payable to the bearer on the due dates.
(i)
Bank A/c 99,000
To Equity Share Application A/c 99,000
(Being application money received for 3300 shares @ ₹30)
Share Application A/c 99,000

To Equity Share Capital A/c 90,000
To Equity Share Allotment A/c 9,000
(Being application money of 3,000 shares transferred excess money adjusted towards Allotment)
Equity Share Allotment A/c 1,20,000

To Equity Share Capital A/c 1,20,000
(Being allotment money due )
Bank A/c (1,11,000-2,700) 1,08,300
To Equity Share Allotment A/c 1,08,300
(Being allotment money received )
Equity Share First Call A/c 60,000
(Being first call due on 3,000 shares @₹ 20 each)
Bank A/c 58,200
To Equity Share first call A/c 58,200
(Being call money received on 2910 shares)
Equity Share second and final call A/c 30,000
(Being final call due on 2910 shares @ ₹10 each)
Bank A/c 29,100
To Equity Share second & final call A/c 29,100
(Being call money received on 2910 shares)
Equity Share Capital A/c 9,000
To Equity Share Allotment A/c 2,700
To Equity Share First Call A/c 1,800
To Equity Share Second and Final Call A/c 9,00
To Equity Share Forfeited A/c 3,600
(Being 90 shares forfeited )
Equity Share Forfeited A/c 3,600
To Capital Reserve 3,600
(Being share forfeited account transferred)
Working Notes:
Shares applied by Hari = 1,200 x 90/900 = 120 shares.
Excess Application money paid by Hari = 30 × ₹ 30 = ₹ 9,00
Amount due from Hari on allotment = 90 × ₹ 40 =3,600
Less Advance Application money received= ₹ 9,00
Amount not paid by Hari on allotment = (3,600 – 9,00) = ₹ 2,700
(ii)
Liabilities X Ltd. Y Ltd. % X Ltd % Y Ltd.

Share Capital 3,00,000 4,00,000 50.00 53.33
Reserve & surplus 2,00,000 3,00,000 33.33 40.00
Current Liabilities 1,00,000 50,000 16.67 6.67
Total 6,00,000 7,50,000 100 100
Assets X Ltd. Y Ltd. % X Ltd % Y Ltd.

Fixed Assets 5,00,000 5,00,000 62.50 55.55
Current Assets 3,00,000 4,00,000 37.50 44.45
Total 8,00,000 9,00,000 100 100
(iii)
a. The cash flow statement has certain limitations that should be considered. Firstly, it is
important to note that the cash flow statement is not a replacement for the fund flow statement or
income statement. Instead, it serves as a supplement to these statements.
b. Additionally, the cash flow statement does not take into account non-cash items such as the
issuance of shares for the purchase of fixed assets or the conversion of debentures into equity shares.
This means that it may not provide a complete and accurate financial picture of the business.
c. Another limitation is that the cash flow statement is prepared on a cash basis, which means it
ignores the basic accrual concept of accounting. This can affect the accuracy of the statement.
d. Lastly, it's important to note that the cash flow statement relies on data from other statements,
such as the income statement and balance sheet. This means that any inaccuracies or errors in
these statements can also impact the reliability of the cash flow statement.

Must Do Sample Paper Solved and Un Solved With Pre Board Paper

Uploaded by

Copyright:

Available Formats

You might also like

Must Do Sample Paper Solved and Un Solved With Pre Board Paper

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Must Do Sample Paper Solved and Un Solved With Pre Board Paper

Uploaded by

Copyright:

Available Formats

ACCOUNTANCY-II

SAMPLE PAPER- THIRD (2023-24)

Partculars 31 March 2023 31 March 2022

Revenue from operations 12,00,000 18,00,000

Equity & Liabilities 31 March 2022 31 March 2023

7. There are several ways in which a partner can retire, including:

(ii) Profit ₹4450

13. Share Capital A/c (100 x ₹ 6) Dr. 6,00

Liabilities Amount (₹) Assets Amount (₹)

(iv) They admit Goyal into partnership on the following terms :

8. New Ratio of B & C = 4 : 11

Calls in arrears Calls in advance:

At winding up 5. When the company is 5. At the time of winding up

15. What do you understand by Redemption of Debentures ?

16. What does trend analysis refer to?

Share Allotment A/c (4,00,000 sh. x ₹ 4) Dr. 16,00,000

Bank A/c Dr.8,36,640

Share First and final call A/c (4,00,000 x ₹ 5) Dr.20,00,000

Bank A/c Dr.17,54,800

Adjustment for Proportionate Allotment

Allotment Money Received

(iii) Cash Flow Statement

Net Cash from Operating Activities

Net Cash used in Investing Activities

Net Cash Flow from Financing Activities

Time: 3 Hrs. Max. Marks: 80

Answer the following Questions :

ii. What do you mean by retirement of a partner?

Write True or False:

v. A partnership can be formed for legal business only.

Multiple choice questions :

(a) ₹ 1,50,000 (b) ₹ 90,000 (c) No Entry (d) ₹ 1,12,500

xiii. Super Profit = Average Profit - …..?.....

xv. Income and Expenditure account is a account. (personal / Nominal)

(iii) Write any four features of Partnership business.

(iv) Write any four features of receipts & payments Account.

Answer the following Questions

i. What are Convertible Preference Shares?

iv. Debentures holders are the owners of the company.

Multiple choice questions

Fill in the Blanks:

x. Purchase of goodwill is an activity. (Investing / Financing)

(ii) Prepare a Common-size Balance Sheet of X Ltd. and Y Ltd.

Liabilities X Ltd. Y Ltd.

(iii) Write down the four limitations of cash flow statement.

Time: 3 Hrs. Max. Marks: 80

Answer the following Questions ਹ ੱਠ ੱਲ ਖ ੱ ਪ ਨ • ਦ ੱ Ⓒਤ ਰ ੱਦ ਉ :

ii. What do you mean by retirement of a partner? ਇੱ ਕ ਸ •ਝੱਦ ੱਰ ਦ ੱ ਸ ੱਵ ੱਮ ੱਕ ਤ ੱ ਤ  ਤ ੱਹ ੱਡ ੱ ਕ ੱ ਭ ੱਵ ਹ ੱ?

Write True or False ਸ ਹ ੱ ਜ • ਗਲਤ ੱਲ ਖ ੱ :

v. A partnership can be formed for legal business only. ਸ •ਝੱਦ ੱਰ ੱ ਕ ੱਵ ਲ ਇੱ ਕ ਕ ੱਨੱ ੱਨ ੱ ਕ ੱਰ ੱਬ ੱਰ ਲਈ ਬ ਣ ੱਈ ਜ ੱ ਸ ਕ ਦ ੱ ਹ ੱ।

Multiple choice questions ਬਹ ੱ-ੱਵ ਕ ਲ ਪ ੱ ਪ ˛ਸ਼ ਨ :

(a) 5 : 3 : 1 (b) 19 : 13 : 8 (c) 1 : 1 : 1 (d) 3 : 3 : 2

(a) ₹ 1,50,000 (b) ₹ 90,000 (c) No Entry (d) ₹ 1,12,500

xv. Income and Expenditure account is a account. (personal / Nominal)

(iii) Write any four features of Partnership business.

(iv) Write any four features of receipts & payments Account.

Answer the following Questions

i. What are Convertible Preference Shares?

ii. What do you mean by retirement of a partner? ਇੱ ਕ ਸ •ਝੱਦ ੱਰ ਦ ੱ ਸ ੱਵ ੱਮ ੱਕ ਤ ੱ ਤ ਤ ੱਹ ੱਡ ੱ ਕ ੱ ਭ ੱਵ ਹ ੱ?