Time : 3 Hours] Total Marks : 100] SECTION-A 4 Following questions 1 to 10 ure objective type questions. Choose the correct alternative from the options given, Each question carries 1 mark (10) 1, What is interest on credit balance of partner's curr (A) Expenses (B) Debts (©) Income (D) Loss 2. Which method of valuation of Goodwill is to be adopted when the profit is constantly increase ? (A) Super profit (B) Simple average (C) Weighted average (D) Capitalization of profit 3. In which ratio profit or loss of revaluation account is distributed between the partners ? (A) Sacrifice ratio (B) Gain Ratio (C) New profit loss ratio (D) Old profit share ratio 4. Active partners retirement by public notice is (A) desirable (B) compulsory (C) useless "(D) favourable . 5. What is the effect of credit balance of profit & loss account at the time dissolution ? (A) Realisation Account eredit side (B) Partner's capital Account credit side (C) Realisation Account Debit side (D) Partner's capital Account - Debit side 6. Atleast ..... of share applications are required to avoid cancellation of public issue. (A) 50% (B) 80% (C) 95% (D) 90% & more 7. Which type of debentures are risky from investors view point ? (A) Simple debenture (B) Bearer debenture (C) Registered debenture (D) Convertible debenture 8. Payment period of creditors and collection period of Uebtors is calculated if wn term. (A) days (B) weeks (C) months (D) Allofabove 9. Formula for cost of goods sold - (A) Sales - Gross profit (B) Sales - Gross loss (C) Gross profit - sales (D) Gross profit + sales 10. Cash equivalent has .. (A) higherliquidity (B) higher solvency (C) higher profitability (D)_ all of above SECTION-B 4 Answer the following questions from 11 10 20 in one sentence each. Each question carries 1 mark : (10) 1. What is Super profit ? 12. Why is the revaluation account opened at the time of Reconstruction of partnership ? Scanned with CamScanner13. Who share to amount of General Reserve on admission of a new partner ? In which ratio? 14. What is voluntary dissolution ? 15. What is calls in advance ? . 16, What is debentures ? 17. Which statements are also useful in comparing fina 18, Which ratios are ineluded in functional classification ? 19, What is Liquid assets ? 20, What are financial expenses ? analysis ? SECTIOI & Answer the following questions from 21 to 26 in short, Each question carries 3 marks : 214 Profit of & 2,10,000 of the firm of Meet, Vraj and Yash was distributed equaly by mistake instead of in proporti of 1:2: 4, What effect should be given by capital account in order to rectify this error. ay 2. deGided to change the profit & loss sharing ratio in future to 23. Pass Journal Entries for the following transaction. At the time of dissolution total assets of the firm are of 5,00,000. Out of that 30 % are current assets. Where cash 2. Calculate the Gain ratio. 24, Explain Methods of dissolution without the interference of court. OR ra balances. (1) General reserve & 18,000. (2) Debit balance of profit & loss ale & 12,000, (3) Workmen accident compensation fund a/e & 24,000, 28, On 15-7-19 Vandan Limited issued 9500, 11% debentures of ® 100 each at par. These debentures are to be redeemed con 14-7-20 at & 110 per debenture. Pass the necessary Journal entries. (without narration). * 26. On -4-18 Shyam Limited issued 8000, 7.5 % debentures of % 250 each at a discount of 5 %. All the debentures are to be redeemed after 5 years as on 31-3-23 at a premium of 10 %. Write necessary journal entries in books of the company. (without narration) OR 26. Explain debentures as per redemption. SECTION-D ‘Answer the following questions from 27 to 30. Calculate as directed. Each question carries 4 marks : (16) 27. From the following determine weighted average profit. 2016-17 17,000 2018-19 20,000 Year Profit (%) Scanned with CamScanner28. From Balance sheets of Honest Company Limited of 31-3-18 and 31-3-19 prepare comparative balance sheet. Balance sheet as on 31-3-18 & 31-319 ‘31-3-19 () [31-318 & Particulars [Note No. (Equity and Liabilities @_ Sharekolder’s Fund (a) Share Capitals (i) Equity Share Capital 15,50,000 | — 13,00,000 (li) Preference share capital 3,50,000 3,50,000 (b) Reserves & Surplus Profit loss account 220,000 1,80,000 (1) Non-current Liabilities 8% debentures (MN) Current Li 2,80,000 2,30,000 (Short-term borrowing 85,000 70,000 (i) Trade payable 30,000 30,000 (ii) Short-term provision 95,000 92,000 22,52,000 26,10,000 Total Q) Assets (1) Non-Current assets (a) Fixed assets (i) Tangible Assets Gi) Intangible Assets {b) Long-term Investment 2) Current Assets Total 26,10,000 29. From the following information of Mayank Limited, calculate debt equity ratio. Particulars Amount (%) | Particulars Amount @) Equity Share Capital 13,00,000 [Outstanding expenses | __1,25,000 General Reserve 7,00,000 | Long term loan 1,75,000 Profit-loss Ave 3,50,000 | Longterm provision 2,$0,000 OR calculate operating ratio of the company. From the given information of Yama Co. Limited, Particulars ‘Sales Cost of Goods sold ‘ Administrative expenses Sales expenses Depreciation Financial expenses Income of interest-dividend Other expenses (Non-operating) Scanned with CamScanner30. From the following information calculate cash flow from financial activity. Particulars 2019 @) | 2018 ®&) ity Share Capital 18,00,000 | 12,00,000 Preference share capital 8,00,000 } 10,00,000 Debenture 6,00,000 | 6,00,000 ‘Additional Information : (J) Paid dividend : Equity Share Capital %2,00,000 Preterence share capital 100,000 (2) Paid interest on debentures 50,000 30._From the following information calculate cash-flow from investing activities Particulars Amount (%) | Particulars Amount @), Opening balance of furniture 12,00,000 } Sale of furniture 400,000 Closing balance of furniutre 18,00,000 | Book value of sold Depreciation on furniture 2,00,000 } furniture 3,20,000 SECTION-E 4 Following questions from 31 to 33 are essay type questions. Each question carries 8 marks. (24) 31. Kapil and Ravi are partners of a parter firm as on 31-3-19 is as under. ip firm sharing profit & loss in the ratio of 4:1. The balance sheet of their Balance Sheet as on 31-3-19 Liabilities ‘Amount (%) | Assets _ [Amount @ | Capital Ave : Land & Building “40,000 Kapil 75,000 Furmiture 30,000 Ravi 25,000 Investment 30,000 Current Alc Stock 10,000 Kapil 8000 | Debtors 5500 Revi 2000 | - BDR =500 5,000 Workmen accident computation Bills receivable 2,000 "| fund 5,000 | Cash balance 3,000 Creditors . 4,000 Outstanding exp. 1,000 Total 1,20,000 ‘Total 1,20,000 On the date of balance sheet, they admitted Dilip es a new partner on the following terms : o (1). Dilip should bring in 20,000 towards his capital and 5000 towards his ; share in goodwill. 50 % goodwill will be withdrawn by old partners immediately (2) Land & Building to be appreciated by 15 %. (3) Fumilure & Stock to be reduced by 5 %. (4) Disclosed investment at market value of € 50,01). (5). Provide 10% for BDR on Debtors. (6) Outstanding salary 0° 1000 to be recorded iv the books. Scanned with CamScanner(7) The claim of % 2000 towards workmen accident compensation fund is admitted but not yet recorded. From the above information, prepare necessiry accounts and Balance sheet after the admission of a new partner. 32, The balance sheet of Hardik, Parthiv and Mahendra is given below as on 31-3-19. Balance Sheet as on 31-3-19 Liabilities Amount (| _ Assets Capital Account Goodwill . Hardik 420,000] Land & Building Parthiv 3,80,000| Machinery Mahendra 1,40,000} Stock General Reserve 50,000] Debtors 1,25,000 Creditors 85000] BDR -5000 Bank balance Partner's Loan Advertisement Mahendra 60,000 Campaign exp. Parthiv 70,000 1,30,000} Profit & loss A/c. Workmen compensation reserve 15000] ‘Total |_12,20,000| Total Mardik, Parthiv and Mahendra are the partners of the firm sharing profit of loss in the ratio 14-19 on the following terms. . Parthiy retires on (1) Land & Building is to be valued at & 2,50,000. 2) Value of machinery is to be reduced by % 50,000. (3) The provision for doubtful debt is to be kept at 10%. (4). Liability for workmen compensation is accepted at % 20,000, 3) Goodwill of the firm is valued at 2,00,000. Parthiv's share in goodwill is to be adjusted through the capital account of Hardik & Mahendra, | } { j i | (©) The,new ratio of profit & loss sharing of Hardik & Mahendra is decided at 2:3, From the above information prepare all necessary accounts and balance shect after retirement of Parthi ‘Write journal entre in the books of company for forfeiture and reissue of forfeited share from the following information : ( Gunjan holds 600 equity shares of € 10 each in company. He had paid application money at % 3 per share and allotment money at € 2.50 per share but could not pay first all money of & 2 per share. Company forfield above shares before making final call after necessary formalities. Company reissued all these shares at a discount of 24 per share. 33. G) Company forfeited 400 equity shares of & 100 each issued at a premium of 20 % on face value. & 80 per share Cinsluding premium) are called up on these shares. For non-payment of allotment money at& 50 (ineloding Bremium) these shares were forfeited before making share first and final call. These shares reissued before first and finall call at % 36,000 as fully paid up, OR arias Scanned with CamScanner— 33. a4 Wipro Company Limited issued to the public 20,000 shares at € 100 each on 1-1-2019 payable as follows. 1-1-19 % 20 on application 1-319 % 30 on allotment 1-5-19 % 30 on first call 1-7-1920 on final call Applications were received for all shares and these were alloted. One share holder to whom 600 shares were allotted paid all the money at the time of allotment. Write all necessary journal entries, SECTIO! Quetions 34 and 35 ure essay type questions. Each question carries 11 marks : 2) Kaya and Kalp are partners of a partnership firm sharing a peofit in equal proportion. From the under noted trial balance and adjustments as on 31-3-2019, prepare the final accounts of the firm, ‘Trial Balance of Partnership firm of Kaya & Kalp as on 31-3-2019 Name of Account Debit () Credit () Capital and drawings : Kaya 9,000 35,000 Kalp8,000 2 40,000 Debtors and creditors 40,000 30,000 Stock (14-18) 25,000 Sales returns and Purchase returns 4,000 1,500 Cash and Bank . 6,000 9,000 Bills receivables and Bills Payables 7,000 8,000 Purchase and Sales 70,000 1,30,000 Discount 200 150 Bad debis and bad debts reserve 200 650 Machines 18,250 : Depreciation on machines 1,750 - Fomiture 6,000 : Sundry expenses : 750 : Lease hold building (from 1-10-18 for 5 years) 7,000 Liability for unpaid wages : 1,000 8 % X's lonn (from 1-11-18) - 15,000 Goodwill 36,000 : ‘Trading expenses 1,250 : Rent and taxes 5,000 : Carriage inwards 300 : Bonk interest 100 - Insurance premium 40 - Salary 12,000 : Wages 15,000 : Prepaid insurance 100 : Total Scanned with CamScanner35. Adjustments : (1) The value of closing stock is 80,000. 40 % closing stock value is more than 10%, 40% closing stock value is less than 20% and remaining closing stock has 10% less value. (2) Charge 10% interest on capital and 12% interest on drawing per annum. ) Provide depreciation @ 10% on machine and @ 5 % on furniture. (4)' Provide 5% Bad dest reserve on debtors. (5) Outstanding salary % 1200. Prepare statement of profit & loss of Bajaj Lid. from the following balances for the year ending on 31-3-19 as per schedule-IiI of Companies Act, 2013 Particulars Amount (%) Office & Sales expenses 47,000 Sales 21,00,000 Salary 450,000 Wages 90,000 Purchase 9,50,000 Opening stock 45,000 Debenture interest 32,000 Profit on sale of investment 26,000 Closing stock 60,000 Provision for Tax 2,00,000 ake Scanned with CamScanner