ec OOL

CuEN M. L MAY u m o a

OoNaDAL kords,
Kha",

16
and
C o m e r
of
Road,
Mission
amakrtshna

a O * * p u s ,

2022-2023
D Medun 2022
Preliminary exam D e c e m b e r

5"
Date:

Time:3 hours
Std. X Marks: 80
Subject Accounts

They
the paper.
reading
minutes
for only
15 time).
additional this
during
are allowed NOT s t a r t writing
(Candldates
must
Section
C. Section A4 or
and consists
Section B SectionB
in Section A, questions.
questions.
questions type
Answer al
answer

/ Short of long answer in

brackets.

objective very Section

consists
C given
consists of
are
questions.
or parts
of q u e s t i o n s
Short answer
m a r k s for
questions
intended
he

has 8 printed sides)

(This Paper

or
Question 1: revaluation
profit and loss on
will share
When a partner
retires, the partners in rato.
a) reassessment of liabilities

assels and

i. Old profit sharing.

i. New profit sharing.
il. Sacrifice.

V. Gain.
account after redemption
redemption reserve is transferred
to
b) Debenture
of debentures.

i. Capital reserve.
profit
of and loss.
i.ii. Statement
General reserve.
iv. Sinking fund.

account at the time of

) is transferred to the credit side of realisation
dissolution of partnership fim, which does not involve cash payment.

i. Creditors
li. Employee's provident fund.
ii. Accumulated depreciation.
v. Outstanding expenses.
 d Excess value of net assets over purchase consideration at the time or p u r a e

of business is

i. Credited to capital reserve.

ii. Debited to goodwill.
ii. Credited to general reserve.
iv. Credited to vendors account

) Rohit and Mohit are partners sharing sharing profits and losses in the ratio Or
3:1.They admitted Chandu as a partner for 4 share in the future profits. The new
profit sharing ratio will be.
i. 9:3:4
ii. 8:4:4.
ii. 10:2:4
iv. 8:9:10.

According to Table F schedule of the Indian company's Act 2013, interest on

calls in advance may be paid at a rate not exceeding. percentage per
annum.

ii. 12
ii. 6.
iv. 9.

g) What is the status of the fim on dissolution of partnership? 1]

h) intangible asset and not a fictitious asset? [1]
Why is goodwill considered as anunder the sub-head 'Other curent assets 'in the
i) List any 2 items that are shown schedule ll of the Indian
balance sheet of a company prepared under
companies act 2013. [1
(11
What are past adjustments?

Question 2: wh fim sharing profits in the ratio

of
Ram,Rahim and Ishwar
are partners in a
share future profits
and Ram and Rahim agree to
3:2:1.Ishwar retired from the firm Ishwars retirement in the following
cases:

equally. Give joumal entries on in the books at Rs.1,00,000.

When
Va. Workmen compensation reserve appears
it.
cdaim of Rs.40,000 against When
there isfluctuation appears in the books at Rs.50,000.
reserve
Investment 1,80,000)appears in the
books at Rs.2,00,000.
value Rs.20,000. When
investment (market
reserve appears in the books at
Investment fiuctuation books at Rs.2,00,000.
appears in the
C. value Rs.1,20,000)
investment (market

OR

2
 PTOTSI last
he TIve yearS. Ihe net profits for the last 5 years have been
Rs.14,000;Rs.18,000;Rs.16,000;Rs.10,000(loss);Rs.16,000.Calculate
profit upto the date of her
death and
pass necessary Jounal entry assuming
share Sita's
tha
or

there is no change in the

proflt sharing ratio of remaining partners.
Question 3: (3
. Virat and Rohit are partners sharing profits as 2:1.They admitted Chahal into
partnership with share in profits which he acquires equally from Virat and Rohit.
Chahal brings in Rs.1,65,000 as capital and Rs.30,000 as goodwill in cash.Pass
entries and calculate new profit sharing
ratios
Question 4: [3]
On 1st April 2018, Rajshree Ltd (an unlisted company) has 6,000,8% debenlures of
Rs.100 each due for redemption at 5% premium in threg equal annual instalmenis
starting from 31 March 2020.The company complied with thee requiremenls with
the
respect to DRR. DRI made on 30 April 2019. Pass necessary journal entries for
year ended 31 March 2022. (lgnore interest)
OR
of
On 1st April 2018, Kapil
Rs.100 each due
Ltd (an 6,009/8%
unlisted company) has debentures
for redemption at 5% premium in three egual annual instalments
with
from 31 March 2020.The company complied withAhe requirements
starting of
30 April 2019. Prepare DRR account in the bookS
respect to DRR. DRI made on
Kapil Ltd.

Question 5:
1.4.2021.The assets and
Shalini td took over business of Amrit enterpises on
liabilities taken over are:
Receivable
Building Rs.35,00,000;Machinery Rs.8,00,000;Stock Rs.4,00,000;Trade
Rs.4,00,000;Creditors Rs.3,00,000;Outstanding
expenses Rs.1,00,000.
as Rs.7,00,000 through cheque
It was decided to pay for purchase consideration 3
9% Debentures of Rs.20 each at a premium of
and balance by issue of 2,00,000,
25%.Pass entries for issue of debentures.
joumal

Question 6: [6]
in a fim shañing profits as 2:1.On 31 March 2022
Girija and Ganesh were partners
theirbalance sheet was as follows:
RS Assels RS
Liabilities
Creditors 80,000
V 50,00
Cash at bank
Debtors 55,0000
20,000 O
Bank Overdrafi
Girjia's brother's loan 77,000 tess: PDD
Less: PDD w2,000| 53,000
28,000 Stock U 78,000
Ganesh's Loan 15,000Investment 000
Investment fiuctuation fund
Capitals:
Buildings 2,50,000
1,50,000 Profit and loss A/o- 10,000
Girija 1,00.0002,50,000
Ganesh TOTAL 5,00,000 - V
TOTAL 5,00,000
3-
 the
On the above date the fim was dissolved. The assets were realised and

liabilities were paid off as follows

a. Debtors Rs.6,000 were proved bad.
of
Ginjaofagreed to pay off her brother's loan.
or
the creditors for Rs.10,000 was paid only Rs.3,000 in full settlement
one
his account.
d. Building was auctioned for Rs.1,80,000 and the auctioneers commisSIon
amounted to Rs.8,000.
Ganesh took over part of stock at Rs.4,000 (being 20% less than the book
value). Balance of the stock was handed to the rernalning creditors in full
settlement of thelr
¥ Investment realised
account. less.
Rs.9,000
9. Realisation expenses amounting to Rs,17,000 and were paid by Ganesh.
realisation account and partners' capital account.
repare
Question 7: 6)
Manav and Danav are partners In
a fim sharing profits as 3:1. Their balance
sheet as at 31. March 2020 was as followed:
Liabilities Rs Assets Rs
Capitals: Machinery |4,70,000
Manav 3,00,000 Investment | 1,10.000
Daanav 2,00,0005,00,000 DebtorsS 1,20,000
Workmen compensation res. 60,000 |Less: PDD 10,000 1,10,000|
CreditorS 1,90,000StoCK |1,40,000
Employees providend fund 1,10,000Cash at bank 30.000
Total 8.60,000 Total 8,60,000
On 1 st April 2020, they admitted Rishi into partnership for 4 share in the profits
of the firm. Rishi brought proportionate capital and Rs,40,000 as his share of S
premium for goodwill.
upon:
V
Folowing terms were agreed at 10% on debtors.
debts was to
1. Provision for doubtful be mgintained
2. Stock was undervalued by Rs.10,000.
of Rs.25,000 was written off as bad, paid
3. An old customer whose account
Rs.15,000 in full settlement.
were taken over by Daanav.
4. 20% of the investments amounted to Rs.70,000.
workmen compensation
5. Claim on account of claimed.
Rs.27,000 which was not likely to be
6. Included a sum of account.
Prepare
and
Revaluation account Partners capital
OR
Ther balance sheet
partners in a firm, shaing profits equally.
Annie and Bonnie are

under:
as at 31 March 2022 was as Rs ASsets Rs
Liabilities 20,000
23,000L Cash at bank
Sundry Creditors Sundry Debtors 22,000
15,000 1,000 21,000
General Reserve Less: PDD
Stock
10,000
Capitals: 60,000
Annie 45,000 85,000 Plant and Machinery 10,000
Bonnie 40,000 Goodwll
1.21,000
121.000D Total
Total
 an was lo be taken as a partner for share in the profits of the fim, with eriect
from 1 April 2022 on the
1. Bad debts following terms
amounting to Rs.1,500 to be written off.
2. Stock to be taken
over by Annie at Rs.12,000.
3. Plant and
Machinery to be valued at Rs.50,000.
4. Goodwill of the firm to be
valued at Rs.20,000.
in Rs.50,000 as his capital. He was unable to bring in cash his share
a n to bing
of goodwil.
6. General reserve is not to be distributed. For this, it decided
was that Carl wouid
ine
compensale the old partners through his current account. Pass journal enlries on
date of Carl's admission.

Questlon 8: [6]
as per Schedule
required prepare Balance sheet
rom the given information you are

of the Indian company's act 2013. Assets Rs

/Particulars Rs equity 13,00,000)
Géneral Reserve 1,20,000 Capital(1,30000
shares of Rs Q each)
6,00,000|Share forfeiture 10.000
Ptant and hgachinery 1,00,000
and end buikding ( 8,00,000 |Gaddw
loss(debit 150,000 Frageretelvables 20,000F
Prof and
|balánce 20,000
Gashand baok belance t 2,50,000Tráde payables_ 30,000
unclaiaex dividend oc 30,000 NENTories
Cals in arrears(Rs.4 per 40,000 Fixed deposits accepted LTP4,50,000
share S
2,00,000 Equity shares of Rs.10 each.
Company has an authorised capital of

Question 9:
101
firm sharing profits as 3:3:4.Their partnership
Moli, Bhola and Raj were partners in a

deed provided for the following

1. Interest on capital@ 5%pa.
2. Interest on drawings 12% pa.
loan pa.6%
3. Interest on partners Bhola was allowed a commission
allowed an annual salary of Rs.4,000;
4. Moli was account and Raj was guaranteed
shown by profit and loss
of 10%of the net profits as
as provided in the patnership
of Rs.1,50,000 after making all adjustments
a profit

agreement. Raj Rs.4,00,000. On

Their fixed capitals Moli:5,00,000;Bhola: RS.8,00,000;and
to the fim. The net profits of the
were

Bhola extended a loan of Rs.1, 00,000

1.April, 2016 loan was 3, 06,000.
31.March 2017 before interest on Bhola's
fim for the year ended Moli withdrew Rs.10, 000 at the
withdrew Rs.5, 000 at the end of each month,
Bhola end of each half year.
withdrew Rs.40,000 at the
end of each quarter and Raj ended 31. March
appropriation account account for the year
loss
Prepare profit and
2017

-5
 OR
BalanCe
imanshu and Vikrant are partners in a fim and share profits equally. Their
sheet as at March 31. 2022 is as follows:
Liabilities Assets Rs
Rs
Capitaals: Fixed Assets 3,06,000
Himanshu 2,00,000 Current Assets 40,000
Vikrant 1,40,000 3,40,000
Creditorss 60,000
Total 14,00,000 Total |4,00,000
DUring the year 2020-21, Himanshu's Drawings were Rs.30,000 and Vikrant's
orawingswere Rs.40,000.During the year ended 2020-21 the fimm eamed a net proft
ofRs.1.00,000. While distributing profits for the year 2020-21, interest on Capital@
Pass
per annum and interest
necessary rectifying entries.
on drawings 12 % per annum were ignored.

Question 10: [10]

Pluto Itd issued 20,000 Equity shares of Rs.10 each, payable as follows:

On Application
share, finalper
on 2nd andRs.4/ callshare,
On
Rs.2/ per Allotment
share.
Rs.1/ per share, On 1 call Rs.3/ per

Applications were received for 30,000 shares and pro-rata allotment was made to all
the applicants. Excess application money was utilised towards allotment and and
Subsequent calls. One shareholder holding 100 shares did not pay the final call
his shares were forfeited. Of the forfeited
shares, the
company reissued 70 sharesS
as fully paid up at Rs/12 per share. Pass necessary journal entries in the books of
Pluto ltd.

OR

Akash Itd makes an issue of 10,000 equity shares of Rs.100 each, payable
asfollows: On Application and Allotment Rs.50 per share, on 1s cll Rs.25 per share;
on 2nd and final call Rs25 per share.
 Question 11:
1. Paid
Rs.4,00,000 to acquire shares in RIL Itd and
40,000 after
acquisition. These transactions will result Received a dividend of Rs
(a) Cash used in in
Investing activities Rs.4,00,000.
(D) Cash generated from Financing activities Rs.4,40,000.
(C) Cash used In Investing activities Rs 3,60,000.
()cash generated from
ASsuming that the current ratio of aFinancing is
activities
2. Rs.3,60,000.
Would company 0.7:1.mention whether this falio
increase, decrease or nol
change after the following lransacions.
a.
purchase of Inventory worth Rs.50,000 on credit.
(2
b. Payment of Rs.15,000 to a creditor.
3. Which of the following is not an
investing activity under cash flow statement. [1]
.purchase of marketable securities for Rs.25,000.
i. Sale of land for Rs.80,000.
.sale of 2,500 shares (held as investment) for Rs.15000.

.Purchase of equipment for Rs.5000.

4. What is window dressing?

Question 12:
From the following information, prepare common size statement of profit and loss of
prudence Ltd. Forthe yearending 31st march,2017
particulars 31.03.2017
Rs
Revenuefrom operation 20,00,000
purchases 16,00,000

HChanges in inventories 1,00,000

Bher income (dividend received)_ 40,000D_
Depreciation and amortization expensesS 60,000

Tax rate@40%

Questlon 13: [6]

From the following particulars, calculate cash from investing activities:
Particulars Opening balances Closing balances
RS Rs
Plant &machinery (at cost)_
3,00,000 3,20,000
90,000 1,00,000
AcCumulated depreciaion
Patenis
2.60.000 1,40,000
Goodwill
80,000 1,00,000

Additional Infomation: During the year:

on plant & machinery Rs36,
000.
(1)Depreciation charged was sold for Rs16, 000
a book value of Rs20, 000
(2)A machine having Rs80, 000 was sold for Rs 1,10 ,000.
a book value of
(3)Patents having
 OR

YFromthefollowing extracts taken from the balance sheets of M/s Khadija Ltd..
On31t march and the additional information provided, you are required to calculate:
(1)Cash Flows from financing activities.
Equity &Liabilities 31.3,2021 31.3.2022
Rs Rs
Equity share capital 20,00,000 30,00,000
10% preference share capital 2,00,000 1,00,000
Securities premium reserve Alc 95,000
Profit& Loss Balance 4,00,000 8,00,000
10%Debentures 10,00,000 10,00,0000

Additional Information:
(1)Fresh equity shares were issued on 31s march 2022 at a premium of 10%.
(2Interim Dividend was paid on equity shares@8%.
(3)Preference shares were redeemed on 31 st March, 2022 at premium of 5%.

Premium on redemption was charged against premium received on issue of

Fresh equty shares.

Question 14: 61
From the following infommation, calculate (up to two decimal places):
(1) Trade receivables turnover ratio
(2) Operating profit ratio
(3) Net profit ratio
Rs
Cash Revenue from operations 1,00,000

Net purchases 2,97,000

eredit Revenue from operations 3,00,000
80,000
Closing Debtors 60,000
Closing bills receivables
Cariage Inward 3,000
Finance Cost 5,000
Administrative Expenses ,000
Profit on sale of Fixed asset 10,000
7,000
Discount received

-All the b e s t -