KENDRIYA VIDYALAYA SANGATHAN, RAIPUR REGION

MODEL PAPER TERM II (2021-22) SET - I

Subject- Accountancy (055)
Time Allowed: 2 Hours Max.Marks:40
General Instructions:
1. This question paper comprises two Parts – A and B. There are 12 questions in the question paper. All
questions are compulsory.
2. Both the parts are compulsory for all candidates.
3. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks each.
4. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks each.
5. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks each.
6. There is no overall choice. However, an internal choice has been provided in 3 questions of three marks
and 1 question of five marks.

Part A
(Accounting for Not-for-Profit organisations, Partnership firms and Companies)

Q1 Based on the information given below, calculate the stationery expenditure to 2

be debited to Income and Expenditure Account for the year ended 31st March
2020.

Particulars As at 31st March As at 31st March

2019(₹) 2020(₹)

Stock of Stationery 22,000 12,000

Creditors for stationery 36,000 8,000

During the year ended 31st March 2020, ₹48,000 was paid to creditors for
stationery. Stationery purchased on cash during the year was 20% of the total
purchase of stationery.

Q2 Enumerate any two modes of Dissolution of a Partnership firm. 2

Q3 Shreya, Shrishti and Saloni were partners in a firm sharing profits and losses 2
in the ratio of 2:1:1. Shreya retired from the firm selling her share of profits
to Shrishti and Saloni for ₹16,000 and ₹8,000 respectively. Pass necessary
journal entry for the treatment of goodwill.

Q4 Present the following items in the Balance sheet of King’s club as at 31st 3
March, 2020.
Particulars ₹

Capital fund(1st April, 2019) 10,80,000

Building fund(1st April, 2019) 4,80,000

Donation received for Building 6,00,000

10% Building fund Investment(1st April, 2019) 4,80,000

Interest received on Building Fund Investments 48,000

Additional Information: Expenditure on construction of Building 3,60,000.

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 Construction work is in progress and has not yet been completed.
OR
Ashok Club has credited ₹1,87,500 as subscriptions to its Income and
Expenditure account for the year ending 31st March, 2020. The club charges
an annual subscription of ₹150 from each member. During the year, the club
did not receive subscriptions from 45 members and received subscriptions in
advance from 46 members for the year ending 31st March, 2021. On 31st
March, 2019, the outstanding subscriptions were ₹15,000 and subscriptions
received in advance were ₹3,000. Calculate the amount of subscription
received during the year ending 31st March, 2020.

Q5 A, B and C were partners in a firm. B died on 31st August, 2020. B’s share of 3
profit from the closure of the last accounting year till the date of death was to
be calculated on the basis of the average of three completed years of profits
before death. Profits for the years ending 31st March 2017, 2018 and 2019
were ₹40,000; ₹50,000 and ₹72,000 respectively. The firm closes its books
on 31st March every year. Calculate B’s share of profit till the date of his
death and pass the necessary journal entry for the same assuming that A and
C will share future profits in the ratio of 7:5.

Q6 Ashish Ltd. took over assets of ₹25,00,000 and liabilities of ₹6,00,000 of 3

Benara Ltd. Ashish Ltd. paid the purchase consideration by issuing 10,000
8% debentures of ₹100 each at a premium of 10% and accepting a draft of
₹11,00,000 payable after 3 months. Pass the necessary journal entries in the
books of Ashish Ltd.
OR
A company took a loan of ₹10,00,000 from Punjab National Bank and issued
10% debentures of ₹12,00,000 of ₹100 each as a collateral security along
with primary security of Plant and Machinery worth ₹20,00,000. Pass the
necessary journal entries in the books of the company if the company decided
to record the issue of debentures as a collateral security and show the
presentation in the Balance sheet of the company.

Q7 Pass the journal entries in the following cases at the time of dissolution of the 5
firm of Parth, Ganesh and Abhay, after the various assets and the third party
liabilities are transferred to the realisation account.
a) Buildings were auctioned for ₹1,80,000 and the auctioneer’s
commission amounted to ₹10,000.
b) Abhay agreed to pay off his brother's loan of ₹77,000.
c) Creditors of ₹40,000 accepted machinery valued at ₹38,000 and
balance was paid in cash.
d) Ganesh’s Loan of ₹10,000 was paid by giving him an unrecorded asset
for ₹8,000 and balance in cash.
e) There was a bill of ₹6,000 under discount from the Bank. The bill was
received from Ravi. Ravi became insolvent and we could realise only
60 paise in a ₹ from his estate.
OR
Ajay, Bhavesh and Chandar were partners in a firm sharing profits and losses
in proportion to their capitals. Their Balance Sheet as at March 31, 2020 was
as follows:
Liabilities Amount(₹) Assets Amount(₹)

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 Capitals: Bank 21,000
Ajay 5,00,000 Stock 9,000
Bhavesh 3,00,000 Debtors 15,000
Chandar 2,00,000 10,00,000 Less: Provision for 13,500
General reserve 75,000 doubtful debts 35,500
Creditors 23,000 1,500 2,00,000
Outstanding salary 7,000 Ajay’s Loan 6,00,000
Chandar’s Loan 15,000 Plant & Machinery 2,41,000
Land & Building
Profit & Loss A/c

11,20,000 11,20,000
On the above date, Chandar retired from the firm on the following terms:
A. Goodwill will be valued at ₹3,06,000.
B. Provision for doubtful debts was to be maintained @5% on debtors.
C. Land and Building will be appreciated by ₹90,000.
D. Plant and Machinery will be reduced to ₹1,80,000.
E. Ajay agreed to repay his loan.
F. The loan repaid by Ajay will be utilised to pay Chandar. The balance
amount payable to Chandar will be paid after six months.
Prepare Revaluation A/c and Partner’s Capital accounts.

Q8 Anil Ltd. issued 7,000, 10% Debentures of ₹500 each at a discount of 5% and 5
redeemable at a premium 10% after 4 years.

You are required to answer the following questions:

A. Calculate the net amount to be received by the company.
B. Pass Journal entry for the allotment of debentures.
C. Pass Journal entry for writing off the Loss on Issue of debentures.
D. Prepare Loss on Issue of debentures account.
E. Calculate the amount of fixed annual obligation associated with
debentures.

Q9 Following is the Receipt and Payment Account of Friends club in respect of 5

the year on 31.03.2020:
Receipt and Payment Account
Receipts Amount Payments Amount

To Balance b/d 10,000 By Salaries 20,000

To Subscription: By Stationery 4,500
2018-19 15,000 By Rates and Taxes 1,500
2019-20 20,000 By Telephone Charges 7,500
2020-21 5,000 40,000 By 8% Govt. Securities 25,000
To profit from sports 17,800 By Sundry Expenses 500
To interest on 8% 5,000 By Courier service 300
Govt. securities charges
By Balance c/d 13,500

72,800 72,800
Additional Information:

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 A. There are 500 members, each paying an annual subscription of ₹50,
₹17,500 being in arrears for 2018-19 at the beginning of 2019-20.
During 2018-19, subscriptions were paid in advance by 40 members
for 2019-20.
B. On March 31, 2020, the rates and taxes were prepaid to the following
January 31, the annual charge being ₹1,500. A quarter’s charge for
telephone is outstanding, the amount outstanding being ₹1,500. There
is no change in quarterly charges.
C. Stock of stationery on March 31,2019, was ₹1,500 and on March
31,2020, ₹2,000. Sundry expenses accruing at 31.03.2019 were ₹250
and at March 31,2020 ₹300.
D. On March 31,2019 Building stood in books at ₹2,00,000 and it is
required to write off depreciation @10% p.a. Value of 8%
Government Securities on March 31, 2019 was ₹75,000 which were
purchased at that date at par. Additional Government Securities worth
₹25,000 are purchased on March 31,2020.
Prepare Income and expenditure account from the above information for the
year ended 31.03.2020.

Part-B
(Analysis of Financial Statements)

Q10 Classify the following transactions into (i) Operating activities, (ii) Investing 2
activities and (iii) Financing activities for a: (a) Financial enterprise (ii) Non-
financial enterprise:
1. Interest received
2. Interest paid.

Q11 Prepare a Common-Size Statement of Profit & Loss for the year ended March 3
31,2020:
Particulars 2019-20 2018-19

Revenue from Operations 20,00,000 10,00,000

Purchases of Stock in Trade 7,70,000 4,20,000

Changes in Inventories 1,20,000 80,000

Other Expenses 52,000 30,000

Other Income 60,000 50,000

Tax Rate 50% 50%

OR
From the following Balance Sheets of Ganesh Ltd. as at March 31, 2020,
prepare a comparative Balance Sheet:

Particulars Not 31.3.2020(₹) 31.3.2019(₹)

e
No.

I. EQUITY AND LIABILITIES

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 1. Shareholder’s Funds

(a) Share Capital 21,00,000 20,00,000

(b) Reserves and Surplus 2,30,000 2,00,000

2. Non-Current Liabilities

Long term Borrowings 5,60,000 2,00,000

3. Current Liabilities

Trade Payables 2,80,000 1,00,000

Total 31,70,000 25,00,000

II. Assets

1. Non-Current Assets

Fixed Assets

(i)Tangible Assets 21,00,000 20,00,000

(ii) Intangible Assets 3,00,000 2,00,000

2. Current Assets

(a) Inventories 5,60,000 2,00,000

(b) Cash and Cash Equivalents 2,10,000 1,00,000

Total 31,70,000 25,00,000

Q12. From the following Balance Sheet of VX Ltd. and the additional information 5
as at March 31,2020, prepare a Cash Flow Statement:

Particulars Note 31.3.2020(₹) 31.3.2019(₹)

No.

I.EQUITY AND LIABILITIES

1.Shareholder’s funds

(a) Share Capital 10,00,000 8,00,000

(b) Reserves and Surplus 1 4,00,000 (1,00,000)

2. Non-Current Liabilities

Long-term Borrowings 2 9,00,000 9,00,000

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 3. Current Liabilities

(a) Short-term Borrowings 3 2,40,000 1,00,000

(b) Short-term Provision 4 2,00,000 1,75,000

TOTAL 27,40,000 18,75,000

II. ASSETS

1. Non-Current Assets

(a) Fixed Assets

(i) Tangible Assets 5 20,00,000 14,42,000

(ii) Intangible Assets 6 46,000 58,000

(b) Non-Current Investments 1,00,000 45,000

2. Current Assets

(a) Current Investments 2,00,000 1,20,000

(b) Inventories 2,14,000 90,000

(c)Cash and cash Equivalents 1,80,000 1,20,000

TOTAL 27,40,000 18,75,000

Notes to Accounts:

Note Particulars 31.3.2020(₹) 31.3.2019(₹)

No.

1 Reserves and surplus:

Surplus(Balance in Statement of 4,00,000 (1,00,000)
Profit and Loss)

2 Long-term Borrowings:
12% Debentures 9,00,000 9,00,000

3 Short-term Borrowings:
Bank overdraft 2,40,000 1,00,000

4 Short-term Provisions:

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 Provision for Tax 2,00,000 1,75,000

5 Tangible Assets:
Machinery 24,00,000 16,42,000
Less: Accumulated Depreciation (4,00,000) (2,00,000)

6 Intangible Assets:
Goodwill 46,000 58,000
Additional Information:
Tax ₹1,50,000 was paid during the year.

*********************
KENDRIYA VIDYALAYA SANGATHAN, RAIPUR REGION
MARKING SCHEME (SET – I)
MODEL PAPER TERM II
SUB- ACCOUNTANCY(055)
CLASS- XII
Q1 Answer- ₹35,000
Hint- Credit purchase during the year= ₹20,000; Total purchase= 20,000*
100/80= 25,000.

Q2 A. Dissolution by consent or agreement

B. Compulsory Dissolution
C. Dissolution on occurrence of certain contingencies
D. Dissolution by Notice
E. Dissolution by court (any two)

Q3
Shrishti’s Capital A/c Dr. 16,000

Saloni’s Capital A/c Dr. 8,000

To Shrishti’s Capital A/c 24,000

Q4 Net amount of Building Fund to be written in Balance sheet- ₹7,68,000; Capital

Fund- ₹14,40,000; Building to be shown on Assets side- ₹3,60,000.
OR
₹1,99,650
Hint- 1,87,500-6,750+6,900+15,000-3,000= 1,99,650.

Q5
A’s Capital A/c Dr. 5,625

C’s Capital A/c Dr. 1,875

To B’s capital A/c 7,500

Hint-1. B’s share of profit= (40000+50000+72,000/3) x ⅓ x 5/12=
7,500.

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 2. Gaining ratio= 3:1.

Q6
A. Sundry Assets A/c Dr. 25,00,000

Goodwill A/c Dr. 3,00,000

To Sundry Liabilities A/c 6,00,000

To Benara Ltd. 22,00,000

B. Benara Ltd. Dr. 22,00,000

To 8% Debentures A/c 10,00,000

To Securities Premium reserve A/c 1,00,000

To Bills Payable A/c 11,00,000

Hint- No. of Debentures issued= 11,00,000/110= 10,000.

OR
A. Bank A/c Dr. 10,00,000

To Bank Loan A/c 10,00,000

B. Debenture Suspense A/c Dr. 12,00,000

To 10% Debentures A/c 12,00,000

Long Term Borrowings to be shown in the Balance Sheet= ₹10,00,000.

Q7
A Bank A/c Dr. 1,70,000 1

To Realisation A/c 1,70,000

B Realisation A/c Dr. 77,000 1

To Abhay’s Capital a/c 77,000

C Realisation A/c Dr. 2,000 1

To Bank A/c 2,000

D Ganesh’s Loan A/c Dr. 10,000 1

To Realisation A/c 8,000

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 To Bank A/c 2,000

E (i) Realisation A/c Dr. 6,000 1

To Bank A/c 6,000

(ii) Bank A/c Dr. 3,600

To Realisation A/c 3,600

OR

Realisation A/c Dr. 2,400

To Bank A/c 2,400

OR
Profit on revaluation- ₹70,750
Amount transferred to Chandar’s Loan A/c- ₹2,06,650
Capital A/c Balances-
Ajay- ₹4,14,125
Bhavesh- ₹2,48,475

Q8 A. ₹33,25,000.
B.
Debenture Application & Allotment A/c Dr. 33,25,000

Loss on issue of Debentures A/c Dr. 5,25,000

To 10% Debentures A/c 35,00,000

To Premium on redemption of debentures a/c 3,50,000

C.
Statement of Profit & Loss Dr. 5,25,000

To Loss on issue of Debentures A/c 5,25,000

D. Loss on Issue of Debentures A/c
Particulars Amount Particulars Amount

To Premium on 5,25,000 By Statement of Profit & 5,25,000

redemption of Loss A/c
debentures a/c

5,25,000 5,25,000
E. ₹3,50,000.

Q9 Deficit- ₹3.550.
Hint-
1. Rates and taxes to be shown in I/E A/c- ₹1,500.

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 2. Telephone charges to be shown in I/E A/c- ₹6,000.

Q10 1. Financial enterprise- Operating activity

Non-Financial enterprise- Investing activity.
2. Financial enterprise- Financing activity
Non-Financial enterprise- Financing activity.

Q11 Percentage 2018-19- 100; 5; 105; 42; 8; 3; 53; 52; 26; 26.
Percentage 2019-20- 100; 3; 103; 38.5; 6; 2.6; 47.1; 55.9; 27.95; 27.95.
OR
Absolute Change %age Change

Share Capital 1,00,000 5

Reserves and Surplus 30,000 15

Long term Borrowings 3,60,000 180

Trade Payables 1,80,000 180

Total 6,70,000 26.8

Tangible Assets 1,00,000 5

Intangible Assets 1,00,000 50

Inventories 3,60,000 180

Cash and Cash Equivalents 1,10,000 110

Total 6,70,000 26.8

Q12 Cash Flow from Operating activities- ₹7,21,000.

Cash Flow from Investing activities- ₹(8,13,000)
Cash Flow from Financing activities- ₹2,32,000
Net Profit before Tax- ₹6,75,000
Provision for Tax made during the year- ₹1,75,000.
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 MODEL QUESTION PAPER 02
Class -XII
TERM - II (2021-22) SET - II
Subject: Accountancy (055)
Time Allowed: 2 Hours Max.Marks:40
General Instructions:
1. This question paper comprises two Parts – A and B. There are 12 questions in the question paper. All
questions are compulsory.
2. Part-A is compulsory for all candidates.
3. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks each.
4. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks each.
5. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks each.
6. There is no overall choice. However, an internal choice has been provided in 3 questions of three marks
and 1 question of five marks.
Part A
(Accounting for Not-for-Profit organizations, Partnership firms and Companies)

1. Following information is provided by Anupam Welfare Club on 31 March 2021:

Receipts and Payments Account (Extract)
Receipts Amount Payments Amount
To Subscriptions:
2019-20 (75%) 42,000
2020-21 (80%)
3,20,000
2021-22 3,92,000
30,000
Subscription of Rs. 6,000 which were in arrear since last year written off during the current year.
You are required to Calculate
(i) Subscription in arrears for the current year 2020-21
(ii) Subscription in arrears at the end of the year 2020-21 (2)

2. Distinguish between ‘Dissolution of Partnership' and ‘Dissolution of Partnership Firm' based on:
(i) Closure of Books
(ii) Court's Intervention (2)

3. X, Y and Z sharing profits/losses in the ratio of 1/2, 3/10 and 1/5. Y retired from the firm and X and Z
decided to share future profits in the ratio of 3:2. At the time of retirement of Y, Investment appearing in
the Balance Sheet Rs 1,00,000. General Reserve Rs. 90,000 out of which 40% was transferred to the
Investment Fluctuation Reserve.
(i) Find out the Gain/ Sacrifice of X and Z
(ii) Give complete entries related to General Reserve (2)

4. Vinita Welfare Club has provided the following information on 31st March 2021:
Amount due to Suppliers of Sports Material (31.3.2020)…………………………………. Rs. 1,05,000
Amount due to Suppliers of Sports Material (313.2021)……………………………………... Rs. 60,000
Advance to Suppliers of Sports Material (31.3.2020)…………………………………………… Rs.
45,000
Advance to Suppliers of Sports Material (31 32021)……………………………………. Rs.15,000
Stock of Sports Material (31.3.2020) …………………………………………………………. Rs 1,35,000
Stock of Sports Material (31.3.2021)……………………………………………………………. Rs.
22,500
Payment made to the suppliers of Sports Material during the year 2020-2I Rs 4.00.000
(No cash purchase)
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 (i) Show Sports material consumed in income & Expenditure Account.
(ii)Balance Sheet on 31st March 2021 [Extract only). (3)
OR
4. How will you show the following items in the Balance Sheet of Aman Welfare Club?
Particulars Amount
Capital Fund 1.4.2021 30,00,000
Pavilion Fund 1.4.2021 18,00,000
Donation for Pavilion 5,00,0000
Expenditure on construction of Pavilion 22,00,000
Construction work was completed at the end of the year and Pavilion fund was closed. (3)

5. Piyush, Namita and Ashneer are partners in a firm sharing profits and losses in the ratio of 5:3:2.Their
books are closed on March 31st every year. Piyush died on September 30th, 2019. The executors of
Piyush are entitled to: (3)

(i) His share of Capital i.e., Rs.5,00,000 along with his share of goodwill. The total goodwill of
the firm was valued at Rs.60.000.
(ii) His share of profit upto the date of death on the basis of sales till date of death. Sales for the
year ended March 31 2019 was Rs.2,00,000 and profit for the same year was 10% on sales.
Sales shows a growth trend of 20% and percentage of profit earning is reduced by 1%.
(iii) Amount payable to Piyush was transferred to his executors.
Give entries related to his share of goodwill and profit and show the workings clearly.

6. Kirti Ltd. purchased the following assets of Nihal Ltd

Particulars Book Value Agreed Value
Land and Building 5,50,000 10% more than the Book value
Machinery 3,75,000 20% Less than the Book value
Furniture 1,60,000 40% more than the Book value
Trademarks 1,42,000 50% Less than the Book value
The purchase consideration was Rs. 11,70,000. Payment was made by drawing a promissory note in favor
of Nihal Ltd., for Rs.70,000 and a Bank draft of Rs. 1,60,000 and balance by issuing 9% Debentures of
Rs. 100 each at a discount of 6%. You are required to pass necessary journal entries in the books of Kirti
Ltd. (3)
OR
On April 1, 2020 Kirti Ltd. issued, 25,000, 9% Debentures of Rs.100 each at premium of 5%, to be
redeemable at a premium of 10%, after 5 years. The entire amount was payable on application. The issue
was oversubscribed to the extent of 25,000 debentures and the allotment was made proportionately to all
the applicants. The securities premium amount has not been utilized for any other purpose during the
year. Give journal entries for the issue of debentures and writing off loss on issue of debentures. (3)
7. Nihal, Ravi and Arvind were partners in a firm. They decided to dissolve the firm on 31st March 2021.
Pass necessary journal entries for the following transactions after various assets (other than cash) and
third-party liabilities have been transferred to realization account: (5)
(i) 200 shares which were acquired at a cost of Rs. 50 per share were written off from the books
earlier. Now valued at Rs. 35 per share and taken over by Nihal.
(ii) One Bill Receivable for Rs. 9.000 (which was discounted with the bank was dishonored), the
drawee (acceptor) become insolvent and could not pay anything, so bill was met by the firm.
(iii) Creditors of Rs. 40,000 were due on an average basis of two months, they paid immediately at
the time of dissolution at 15% p.a discount.
(iv) Ravi took over half of the stock at 36,000 (being 10% less than the Book Value) and
remaining stock was sold at a loss of 20%.
(v) Arvind was to bear al expenses of realization for which he will get a commission Rs 6,000.
OR

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X Y and Z are in partnership sharing profits in the ratio of 5:3:2. Their Balance Sheet on 31 March 2021,
the day Y retired from the firm.
Liabilities Amount Assets Amount
Capitals X 3,00,000 Land and Building 2,50,0000
Y 2,00,000 Plant and Machinery 1,50,000
Z 2,00,000 Investments 1,00,000
General Reserve 40,000 Debtors 1,10,000
Sundry Creditors 70,000 Stock 1,50,000
Bills Payable 30,000 Cash 40,000
Advertisement 40,000
Suspense
8,40,000 8,40,000
Following adjustments took place at the time of retirement:
(i) Y sells his share of goodwill to X for Rs.30,000 and Z for Rs.40,000
(ii) Stock to be appreciated by 20% and building by Rs.50,000.
(iii) Investments were sold at a profit of 10%.
(iv) Bad Debts Rs.4,000 to be written off and a Provision for doubtful debts to be made @10%.
(v) Y is paid 40% of the amount due and remaining balance transferred to his capital account.
Prepare Revaluation Account and Partners Capital Accounts

8. Mohit Ltd. has the following balances in its Balance Sheet on 31st March 2021:
Securities Premium Reserve…………………………………. 35,000
Capital Reserve…………………………………………………… 10,000
On 1st April 2021, Company issued 10,000, Fresh 8% Debentures of Rs.100 each at a premium of 5% to
be redeemable at premium of 10% after 5 years. The entire amount was payable on application. The issue
was oversubscribed to the extent of 10,000 debentures and the allotment was made proportionately to all
the applicants.
Use of Securities Premium is restricted to as per the Section 52 (2) of the Companies Act, 2013.
You are required to answer the following questions: (5)
(i) How much amount is received by the company on application & allotment?
(ii) How much loss on issue of debentures is to be debited at the time of adjustment of application
money and allotment of Debentures?
(iii) How much amount is refunded by the company?
(iv) Give the entry for writing off loss on 1ssue of Debentures.
(v) Prepare Loss on Issue of Debenture Account.

9. Prepare Income and Expenditure Account and Balance Sheet (Opening and Closing) for Gazal Welfare
Club on 31st March 2022. (5)
Receipts Amount Payments Amount
To Balance b/d (Cash) 18,000 By Bal. b/d (Bank overdraft) 10,000
To Subscription: By Governor's Party Exp. 1,50,000
For 2020-21 9,000 By Building Construction 14,00,000
For2021-22 2,64,000 Exp. 30,000
For 2022-23 24,000 2,97,000 By Office Expenses 1,20,000
To Contribution for 1,00,000 By Furniture 55,000
Governor's By Salaries 20,000
To Donation for 8,00,000 By Printing and Stationery
Building 60,000 By Balance c/d:
To Life Membership 1,25,000 Cash 9,000 15,000
Fees 3,00,000 Bank 6,000
To General Donation 1,00,000
To Legacy (Specific)

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 To income from
Entertainment
18,00,000 18,00,000
Additional Information:
(i) The Club has 1000 members each paying 300 as an annual subscription. Subscriptions in
arrears on 31st March 2021 were Rs. 15.000.
(ii) Subscription in Arrears for Governor’s Party Rs. 28,000.
(iii) Building Fund was Rs. 12,00,000 in the beginning. The Construction work is in progress and
not completed yet.
Part-B
(Analysis of Financial Statements)
10. State whether the following transactions will result in inflow, outflow or no flow of cash while
preparing cash flow statement: (2)
(i) Providing Depreciation on Fixed Tangible Assets
(ii) Sale of Marketable Securities at Par

11. From the following details provided by Veena Ltd., for the year ended 31st March 2021
Particulars 31.3.2021 31.3.2020
Revenue from operations 20,00,000 10,00,000
Purchase of Stock-in-Trade 13,00,000 4,00,000
Change in Inventories of Stock- in- 1,20,000 1,00,000
Trade
Other Expenses 10% of cost of 20% of Cost of
Revenue from Revenue from
operations operations
Tax Rate 40% 30%
Prepare Comparative Statement of Profit & Loss. (3)
OR
From the following Balance Sheet of Sakshi Ltd. as at 31st March, 2021, prepare a Common Size
Balance Sheet: (3)
st st
Particulars Note 31 March, 2021 31 March, 2020
No.
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 20,00,000 9,00,000
(b) Reserve and Surplus 2,00,000 1,00,000
2. Non-Current Liabilities 12,00,000
Long-term Borrowings 6,00,000 5,00,000
3. Current Liabilities 5,00,000
Trade Payables
Total 40,00,000 20,00,000
II. ASSETS
1. Non-current Assets
Property, Plant and Equipment (Fixed
Assets): 20,00,000 10,00,000
(i) Tangible Assets
2. Current Assets 19,00,000 8,00,000
(a) Inventories 1,00,000 2,00,000
(b) Cash and Cash Equivalents
Total 40,00,000 20,00,000

12. Following was the Balance Sheet of Seerat Limited at on 31.3.2021:

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 Particular Note 31.3.2021 31.3.2020
No. (Rs) (Rs)
I Equity and Liabilities
1. Shareholder’s Funds:
(a) Share Capital 22,50,000 15,00,000
2. (b) Reserve and Surplus (Profit) 11,25,000 9,00,000
Non-Current Liabilities:
3.. Long-Term Borrowings 2,30,000 1,50,000
Current Liabilities: 1
(a) Trade Payables 1,50,000 1,65,000
(b) Short-Term Provisions (Tax) 1,42,500 1,20,000
(c) Other Current Liabilities -- 50,000
2
Total 38,97,500 28,85,000
II Assets:
1. Non-Current Assets:
(a) Property, Plant & Equipment
(Fixed Assets):
(i) Tangible 3 15,15,000 18,00,000
(ii) Intangible 2,70,000 3,00,000
2. (b) Non-current Investment 9,80,000 ---
3. Current Assets:
(a) Inventories 2,70,000 1,50,000
(b) Trade Receivables 3,00,000 1,25,000
(c) Cash and Cash equivalents 5,62,500 5,10,000
Total 38,97,500 28,85,000

Notes to Accounts
S. No. Particulars 2021 2020
1. Long-term Borrowings:
(i) 9% Debentures 1,50,000 1,50,000
(ii) 6% p.a. Bank Loan 80,000 ---
2. Other Current Liabilities:
(i) 9% Debentures Current Maturity ---- 50,000
3. Tangible Assets
(i) Land and Building 9,75,000 12,00,000
(ii) Plant and Machinery 5,40,000 6,00,000
Additional Information:
(i) Proposed Dividend for 2019-20 was Rs.1,00,000 and for 2020-21 Rs.1,30,000.
(ii) Land and Building book value Rs.2,25,000 was sold at a profit of 10%. Plant and Machinery to be
depreciated @ 10% p.a.
(iii) 9% Debentures were redeemed on 31st December 2020, 6% p.a. Bank Loan was opted on 1st
December 2020. Provision made during the year for Income Tax Rs.52,500
Prepare Cash Flow Statement. (5)
MARKING SCHEME
(SET – II)
1. (i) Club should receive subscription for the current year Rs. 4,00,000
i.e., 3,20,000 x 100/80 = 4,00,000
but received only 3,20,000
so, subscription in arrears for the current year 4,00,000 – 3,20,000 = 80,000
(ii) Subscription in arrears for the previous year = 42,000 x 100/75 =
56,000 Arrears were 56,000 out of which received 42,000

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 56,000 – 42,000 = 14,000
Out of 14,000 some amount is written off i.e., 6,000
Still in arrears for previous year = 14,000 – 6,000 = 8,000
Total Subscription in arrears at the end of the year 2020-21 = 80,000 + 8,000 = 88,000

2. Difference between Dissolution of Partnership and Dissolution of Partnership Firm

Basis Dissolution of Partnership Dissolution of Partnership Firm
Closure of Does not require because the business is The books of account are closed.
Books not closed.

Court Court does not intervene because A firm can be dissolved by

intervention partnership is dissolved by mutual the court’s order.
agreement.
3. (i) Gain of X and Z = 1:2
(ii) Journal
Date Particulars L.F. Debit (Rs.) Credit (Rs.)
General Reserve Dr. 36,000
To Investment Fluctuation Reserve A/c 36,000
(Being transfer to Investment Fluctuation Reserve
90,000 x 40/100)

X’s Capital A/c Dr. 3,600

Z’s Capital A/c Dr. 7,200
To Y’s Capital A/c 10,800
(Being Y’s share in that part of General Reserve
which is transferred to IFR)
General Reserve Dr.
To X’s Capital A/c
To Y’s Capital A/c 54,000
To Z’s Capital A/c 27,000
(Being remaining part of General Reserve 16,200
distributed among the partners) 10,800

Note: Y’s share in General Reserve is 90,000 x 3/10 = 27,000 so he should get Rs. 27,000 i.e.,
10,800 + 16,200
4. Income and Expenditure Account (Extract)
Expenditure Amount Income Amount
To Sports material Consumed 4,97,500
Note: 4,00,000 + 45,000 + 60,000 – 1,05,000 – 15,000 + 1,35,000 – 22,500 = 4,97,500

Balance Sheet (Extract) at the end

Liabilities Amount Assets Amount
Creditors for Sports Material 60,000 Advance to suppliers 15,000
Closing stock of Sports Material 22,500
OR
Balance Sheet (Extract)
Liabilities Amount Assets Amount

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 Capital Fund: Pavilion 22,00,000
Opening Balance 30,00,000
Add: Transfer from Pavilion Fund 23,00,000 53,00,000

Pavilion Fund:
Opening Balance 18,00,000
Add: Donation 5,00,000
23,00,000
Less: Expenditure amount
transfer to Capital fund 22,00,000
1,00,000
Less: Transfer to Capital Fund 1,00,000 Nil

Note: Pavilion Fund is closed so balance Rs. 1,00,000 will be transferred to the Capital Fund.
5. Journal

Date Particulars L.F. Debit Credit

Namita’s Capital A/c Dr. 18,000
Ashneer’s Capital A/c Dr. 12,000
To Piyush’s Capital A/c 30,000
(Being Piyush’s share of goodwill adjusted in
capital Accounts of Namita and Ashneer)
Profit and Loss Suspense A/c Dr. 5,400
To Piyush’s Capital A/c 5,400
(Being Piyush’s share of profit up to date of his
death transferred to his capital account)

Working Notes:- Sales = 2,00,000 + 20% of 2,00,000 = 2,00,000 +40,000

Profit % = 10% - 1% = 9%
Piyush’s Share of Profit =₹ 2,40,000 X 9/100 X 5/10 X 6/12 = ₹ 5,400
6. Journal
Date Particulars L.F. Debit Credit
Land & Building A/c Dr. 6,00,000
Machinery A/c Dr. 3,50,000
Furniture A/c Dr. 1,50,000
Trademarks A/c Dr. 1,00,000
To Nihal Ltd. 11,70,000
To Capital Reserve (Balancing Figure) 30,000
(Being assets purchased)
Nihal Ltd. Dr. 11,70,000
Discount on Issue of Debentures A/c Dr. 60,000
To Bills Payable A/c 70,000
To Bank A/c 1,60,000
To 9% Debentures A/c 10,00,000
(Being issue of debentures at discount)
Capital Reserve Dr. 30,000
Statement of Profit & Loss Dr. 30,000
To Discount on issue of Debentures A/c 60,000
(Being discount written off)

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 Note: No. of Debentures issued = 11,70,000 – 70,000 – 1,60,000 = 9,40,000/94 = 10,000
OR
Journal
Date Particulars L.F. Debit (Rs.) Credit (Rs.)
1 April Bank A/c Dr. 52,50,000
2020 To Debenture Application and Allotment A/c 52,50,000
(Being application money received)
1 April Debenture Application and Allotment A/c Dr. 52,50,000
Loss on Issue of Debentures A/c Dr. 2,50,000
To 8% Debentures A/c 25,00,000
To Securities Premium Reserve A/c 1,25,000
To Premium on Redemption of Deb. A/c 2,50,000
(Being issue of 9% Debentures) 26,25,000
2021 Securities Premium Reserve A/c Dr. 1,25,000
March Statement of Profit and Loss A/c Dr. 1,25,000
31 To Loss on Issue of Debentures A/c 2,50,000
(Being loss written off)

Entries at the time of Dissolution

Date Particulars L.F. Debit (Rs.) Credit (Rs.)

(i) Nihal’s Capital A/c Dr. 7,000
To Realisation A/c 7,000
(ii) Realisation A/c Dr. 9,000
To Bank A/c 9,000
(iii) Realisation A/c Dr. 39,000
To Bank A/c 40,000 x 15/100 x 2/12 39,000
(iv) Ravi’s Capital A/c Dr. 36,000
Bank A/c Dr. 32,000
To Realisation A/c 68,000
(v) Realisation A/c Dr. 6,000
To Arvind’s Capital A/c 6,000

OR
Revaluation Account
Particulars Amount Particulars Amount
To Bad Debt 4,000 By Stock 30,000
To Bad Debts Provision 10,600 By Building 50,000
Distribution of Gain: By Investment 10,000
To X’s Capital A/c 37,700
To Y’s Capital A/c 22,620
To Z’s Capital A/c 15,080
90,000 90,000

Partners’ Capital Account

Particulars X Y Z Particulars X Y Z
To Adv. Suspense 20,000 12,000 8,000 By Bal. b/d 3,00,000 2,00,000 2,00,000

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 To Y’s Capital A/c 30,000 -- 40,000 By X’s Capital -- 30,000
To Cash -- 1,17,048 -- By Z’s Capital -- 40,000
To Y’s Loan -- 1,75,572 -- By Gen. Res. 20,000 12,000 8,000
To Balance c/d 3,07,700 -- 1,75,080 By Rev. A/c 37,700 22,620 15,080
3,57,700 3,04,620 2,23,080 3,57,700 3,04,620 2,23,080

8. (i) 21,00,000 (ii) 1,00,000 (iii) 10,50,000

(iv) Securities Premium Reserve A/c Dr. 85,000 Capital

Reserve Dr. 10,000
Statement of Profit and Loss Dr. 5,000
To Loss on issue of Debentures A/c 1,00,000
(v) Loss on Issue of Debentures Account
Date Particulars Amount Date Particulars Amount
1 April To Premium on 31 By Securities Premium
Redemption
2021 of Debentures A/c March Reserve 85,000
1,00,000 2022 By Capital Reserve 10,000
By Statement of P/L 5,000
1,00,000 1,00,000

09. Income and Expenditure Account

Expenditure Amount Income Amount
To Governor’s Party Exp. 22,000 By Subscription 3,00,000
1,00,000 + 28,000 – 1,50,000 By General Donation 1,25,000
To Office Expense 30,000 By Income from Entertainment 1,00,000
To Salaries 55,000 Show
To Printing and Stationery 20,000
To Surplus 3,98,000
5,25,000 5,25,000
Balance Sheet (Opening)
Liabilities Amount Assets Amount
Bank overdraft 10,000 Subscription in arrears 15,000
Building Fund 12,00,000 Cash 18,000
Capital Fund (Balancing Figure) 11,77,000
12,10,000 12,10,000
Balance Sheet (Closing)
Liabilities Amount Assets Amount
Advance Subscription 24,000 Capital work in progress 14,00,000
Legacy 3,00,000 (Building)
Capital Fund: Furniture 1,20,000
Opening Balance (11,77,000) Subscription in Arrears 42,000
Add: Life Membership Fee 60,000 Governor’s Party subscription 28,000
Add: Surplus 3,98,000 Cash 9,000
Add: Building Fund Exp. 14,00,000 6,81,000 Bank 6,000

Building Fund: 6,000

Opening Balance 12,00,000
Add: Donation 8,00,000
20,00,000
Less: Transfer to
Capital Fund 14,00,000

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 16,05,000 16,05,000
9. (i) No Flow (ii) No Flow
10. Comparative Statement of Profit and Loss
Particulars Note 31.3.2020 31.3.2021 Absolute % Change
No. change
(i) Revenue from 10,00,000 20,00,000 10,00,000 100%
operations

(ii) Purchase of Stock- 4,00,000 13,00,000 9,00,000 225%

in-Trade
Change in
Inventories of Stock-
in-Trade 1,00,000 1,20,000 20,000 20%
Other Expenses 1,00,000 1,42,000 42,000 42%
(iii) Total Expense 6,00,000 15,62,000 9,62,000 160.3%

(iv) Profit before Tax (i- iii) 4,00,000 4,38,000 38,000 9.5%
Less: Tax
1,20,000 1,75,200 55,200 46%
(v) Profit after Tax 2,80,000 2,62,800 (17,200) (6.14%)

Note: Cost of Revenue from operation =

Purchase of Stock in Trade + change in inventories of Stock-in-Trade
OR
Common Size Balance Sheet
Particulars Note 31st March 31st March % 2020 % 2021
No. 2020 2021
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 9,00,000 20,00,000 45 50
(b) Reserve and Surplus 1,00,000 2,00,000 5 5
2. Non-Current Liabilities
Long-term Borrowings 5,00,000 12,00,000 25 30
3. Current Liabilities
Trade Payable 5,00,000 6,00,000 25 15
Total 20,00,000 40,00,000 100 100
II. ASSETS
1. Non-current Assets
Property, Plant and Equipment
(Fixed Assets):
(i) Tangible Assets 10,00,000 20,00,000 50 50

2. Current Assets
(a) Inventories 8,00,000 19,00,000 40 47.5
(b) Cash and Cash Equivalents 2,00,000 1,00,000 10 2,5
Total 20,00,000 40,00,000 100 100
11. Cash Flow Statement
Particulars Detail Amount
A. Cash Flow from Operating Activities
Calculation of Profit before tax: Statement of P/L 2,25,000
Provision for tax 52,500
Dividend 1,00,000
Net Profit before tax 3,77,500
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 Add: Depreciation 60,000
Add: Interest on Bank Loan 1,600
Add: Software Amortised 30,000
Add: Interest on Debentures 13,500 + 3,375 16,875
Less: Gain on sale of Land and Building (22,500)
Operating profit before working capital changes 4,63,475
Less: Trade payables (15,000)
Less: Inventories (1,20,000)
Less: Trade Receivables (1,75,000)
Cash flow from operating activities before tax 1,53,475
Less: Tax
(30,000)
Cash Flow from Operating Activities
1,23,475

B. Cash Flow from Investing Activities

Proceeds from sale of land and building 2,47,500
Non-current Investment purchased (9,80,000)
Cash used in Investing Activities (7,32,500)
C. Cash Flow from Financing Activities
Share Capital 7,50,000
Bank Loan 80,000
Redemption of Debentures (50,000)
Dividend (1,00,000)
Interest on Bank Loan (1,600)
Debenture Interest (16,875)
Cash Flow from Financing Activities 6,61,525
D. Decrease in Cash and Cash Equivalents (A + B + C) 52,500
Add: Cash and Cash Equivalents in the beginning 5,10,000
Cash and Cash Equivalents at the end 5,62,500
Land and Building
Account
Particulars Amount Particulars Amount
To Balance b/d 12,00,000 By Bank (Sale) 2,47,500
To Gain on Sale of Land and 22,500 By Balance c/d 9,75,000
Building
12,22,500 12,22,500

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 KENDRIYA VIDYALAYA SANGATHAN, RAIPUR REGION
MODEL PAPER TERM II (2021-22) [SET – III)
Subject- Accountancy (055)
Time Allowed: 2 Hours Max.Marks:40
General Instructions:
1. This question paper comprises two Parts – A and B. There are 12 questions in the question paper. All
questions are compulsory.
2. Both the parts are compulsory for all candidates.
3. Question nos. 1 to 3 and 10 are short answer type–I questions carrying 2 marks each.
4. Question nos. 4 to 6 and 11 are short answer type–II questions carrying 3 marks each.
5. Question nos. 7 to 9 and 12 are long answer type questions carrying 5 marks each.
6. There is no overall choice. However, an internal choice has been provided in 3 questions of three marks
and 1 question of five marks.
Q.1 How would the following items be treated while preparing the financial statements
of a Sports Club?
Prize Fund: ₹ 44,000
Interest on Prize Fund Investments: ₹ 6,000
Prizes Awarded: ₹ 46,000
Match Expenses: ₹ 64,000
Prize Fund Investments: ₹ 44,000
Q.2 Explain the types of dissolution of a firm.
Q.3 Ajay, Bijay and Chetna were partners in a firm for sharing profits/losses in 3:2:1 ratio.
Bijay died on January 1st, 2021. His share of profits for the intervening periods to be
calculated on the basis of average profits of last three years. Profits of the previous three years
are 2017-18: ₹ 90,000; 2018-19: ₹ 1,00,000 and 2019-20: ₹ 1,10,000. Calculate the share of
profits of Bijay on his death and make necessary Journal entry for it.
Q.4 Calculate the amount of medicines consumed during the year ended 31March,2019.
Particulars Amount (₹)

Opening Stock of Medicines 50,000

Closing stock of Medicines 45,000 more than opening stock
Amount paid for medicines during the 200000
year
Opening Creditors 20000
Closing Creditors 50% of opening creditors
Or
On the basis of the following information given below, calculate the amount of stationery to be debited to
the Income and Expenditure account of Good Health Sports Club for the year ended 31st March, 2020.

Particulars 01.04.2019 (Amount ₹) 31.03.2020 (Amount ₹ )

Stock of Stationery 8000 6000
Creditors for Stationery 9000 11000

Q.5 Danish, Ana and Pranjal are partners in a firm sharing profits and losses in the ratio of 5:3:2. Their
books are closed on March 31 st every year. Danish died on September 30 th , 2019, The executors of
Danish are entitled to:-
i) His share of Capital i.e., ₹ 5,00,000 along-with his share of goodwill. The total goodwill of the firm
was valued at ₹ 60,000.
ii) His share of profit up to his date of death on the basis of sales till date of death. Sales for the year
ended March 31, 2019 was ₹ 2,00,000 and profit for the same year was 10% on sales. Sales shows a
growth trend of 20% and percentage of profit earning is reduced by 1%.
iii) Amount payable to Danish was transferred to his executors.

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Pass necessary Journal Entries and show the workings clearly.
Q.6 Journalise the following transactions
a) Mehar Ltd. issued ₹ 1,00,000, 12% Debentures of ₹ 100 each at a premium of 5% redeemable at a
premium of 2%
b) 12 % Debentures were issued at a discount of 10% to a vendor of machinery for payment of ₹9,00,000
c) Issue of 10,000 11% debentures of ₹ 100 each as collateral in favour of State Bank of India. Company
opted to pass necessary entry for issue of debentures.
Or
Gujrat Gas Ltd. Issued 60,000 ,9% debentures of Rs.1000 each payable as follows:
On application Rs.300
On allotment Rs.700
The debentures were fully subscribed and all the money was duly received. As per terms of
issue, the debentures are redeemable at Rs.1100 per debenture. Record necessary journal
entries regarding issue of debentures.
Q.7 The firm of R, K and S was dissolved on 31.3.2019. Pass necessary journal entries for the following
after various assets (other than cash and Bank) and the third-party liabilities had been transferred to
realisation account.
(i) K agreed to pay off his wife’s loan of ₹ 6,000.
(ii) Total Creditors of the firm were ₹ 40,000. Creditors worth ₹10,000 were given a piece of furniture
costing ₹8,000 in full and final settlement. Remaining creditors allowed a discount of 10%.
(iii) A machine that was not recorded in the books was taken over by K at ₹ 3,000 whereas its expected
value was ₹ 5,000.
(iv) The firm had a debit balance of ₹ 15,000 in the profit and loss A/c on the date of dissolution.
Or
A, B and C were partners in a firm sharing profits & losses in proportion to their capitals.
Their Balance Sheet as at March 31, 2020 was as follows: Balance Sheet as at March 31, 2020.
Liabilities Rs. Assets Rs.
Capitals: 10,00,000 Bank 21,000
A 5,00,000 Stock 9,000
B 3,00,000 Debtors 15,000
C 2,00,000 Less: provision for
General Reserve 75,000 Doubtful debts1,500 13,500
Creditors 23,000 Loan to A 35,500
Outstanding Salary 7,000 Land & Building 8,00,000
B’s Loan 15,000 Profit & Loss Account 2,41,000

On the date of above Balance Sheet, C retired from the firm on the following terms:
1. Goodwill of the firm will be valued at ₹ 3,00,000.
2. Provision for Bad Debts would be maintained at 5% of the Debtors.
3. Land & Building would be appreciated by ₹ 90,000.
4. A agreed to repay his Loan.
5. The loan repaid by A was to be utilized to pay C. The balance of the amount payable to C was
transferred to his Loan Account bearing interest @ 12% per annum.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm.
Q.8 C India Ltd. purchased machinery from B India Ltd. Payment to B India Ltd. was made as follows :
(i) By issuing 10,000 equity shares of ₹ 10 each at a premium of 20%.
(ii) By issuing 1000, 9% debentures of ₹ 100 each at a discount of 5%.
(iii) Balance by giving a bank draft of ₹ 37,000.
Pass necessary journal entries in the books of C India Ltd. for the purchase of machinery and payment to
B India Ltd.
Q.9 From the following Receipts and Payments Account and the additional information of Jan Kalyan
Club, prepare Income and Expenditure Account.

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 Receipts and Payments Account for the
year ending on 31 st March, 2020.
Particulars Rs. Particulars Rs.
To Cash in hand as 6,800 By Salaries 24,000
on 1 st April, 2019 By Travelling Expenses 6,000
To Subscription 60,200 By Stationery 2,300
To Donation 8,000 By Rent 16,000
To Sale of Furniture By Books Purchased 6,000
(book value ₹6,000) 4,000 By Building Purchased 30,000
To Entrance Fee 800 By Cash in hand on 31st 2,500
To Life Membership March,2020
Fee 7,000

Additional Information:
Particulars As on 1 st April, 2019 As on 31 st March, 2020
(i) Subscription received in 1,000 3,200
advance
(ii) Outstanding
Subscription 2,000 3,700
(iii) Stock of Stationary 1,200 800
(iv) Books 13,500 16,500
(v) Furniture 16,000 8,000
(vi) Outstanding Rent 1,000 2,000

Q.10 State whether the following transactions will result in inflow, outflow or no flow of cash while
preparing cash flow statement:
1. Investment in fixed assets of 15,000
2. Purchase of Inventory of 10,000
Q.11 Following is the information from the Statement of Profit & Loss of XL Limited for the years
ended March 31, 2018 & March 31, 2019:
2018-19 (Rs.) 2017-18(Rs.)
Revenue from Operations 1800000 1500000
Other income 60000 30000
Expenses 1040000 870000
Income tax 300000 250000
Prepare Comparative Statement of Profit & Loss of XL Limited.
Or
Prepare a Common-Size Balance Sheet from the following information:
Particular 31stMarch,2019 31st March,2018
Revenue from operation 2500000 2000000
Employees benefit expense 1000000 700000
Other expenses 200000 300000
Tax rate 40%
Q.12 Prepare Cash Flow Statement for the year ended 31 st March, 2020 on the basis of the information
given in the Balance Sheets of Hannu Ltd. as at 31-03-2019 and 31-03-2020.
Particulars Note No. 31-03-2020 31-03-2019

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 I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 1,80,000 1,00,000
(b) Reserves and Surplus 50,000 8,000
2. Non- Current Liabilities
(a) Long-Term Borrowings 2 50,000 42,000
3. Current Liabilities
(a) Trade Payables 25,000 17,000
Total 3,05,000 1,67,000
II. ASSETS
(1) Non-Current Assets
(a) Fixed Assets 1,80,000 70,000
(i) Tangible Assets 16,000 20,000
(ii) Intangible Assets 3 16,000 6,000
(b) Non-Current Investments
(2) Current Assets
(a) Current Investments (Marketable) 18,000 20,000
(b) Inventories 49,000 12,000
(c) Cash & Cash Equivalent 26,000 39,000
Total 3,05,000 1,67,000
Notes to Accounts:
Particulars 31-03-2020 31-03-2019
1. Reserves & Surplus
General Reserve 30,000 20,000
Surplus i.e., Balance in Statement of Profit &Loss 20,000 (12,000)
2. Long-Term Borrowings 10%
Debentures 50,000 42,000
3. Intangible Assets 16,000 20,000
Goodwill
Additional Information:
(1) Depreciation provided on Tangible Assets (Building) during the year was ₹ 10,000.
(2) Interest paid on Debentures ₹ 5,000.
(3) Interest received on Non-Current Investments ₹1,600.
--------------------------------------
MARKING SCHEME (SET – III)
CLASS XIIACCOUNTANCY
Q.1 Amount to be shown for Prize Fund
Prize Fund : ₹ 44,000
Add: Interest on Prize Fund Investments : ₹ 6,000
50,000
Less: Prizes Awarded : ₹ 46,000
Less: Match Expenses : ₹ 64,000
₹ 1,10,000 50,000
Prize Fund NIL

The excess amount of Prizes Awarded and Match expenses (i.e. 1,10,000 – 50,000) ₹ 60,000
to be shown on the Expenditure side of Income and Expenditure Account.
Q.2 Types of Dissolution of the firm.
Q.3 Profit &loss A/c. Dr. 37500
To Bijay s Capital A/c. 37500
Share of profits of Bijay = Average Profits x Intervening periods x shares of Bijay
Average Profits = (90,000 + 1,00,000 + 1,10,000) / 2 = 3,00,000 / 2 = 1,50,000.
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Intervening periods = 9 months (i.e. April 2019 to December 2019)
; Bijay’s share = 2/6.
Share of profits of Bijay = 1,50,000 x 9/12 x 2/6
= 37,500.
Q.4 Statement Showing Expenditure on Medicine consumed during the year ending 31 st March,2019:-
Particulars Rs.
Amount paid for medicines during the year 2,00,000
Add: Opening Stock of medicines 50,000
Less: Closing stock of medicines (95,000)
Less: Opening Creditors (20,000)
Add: Closing creditors 10,000
Medicine consumed during the year 1,45,000
or
Stationery purchased during the year ₹ 47,000
Add: Opening stock of stationery ₹ 8,000
Creditors at the end of year ₹ 11,000
Less: Closing Stock of stationery ₹ (6,000)
Creditors at the beginning of the year ₹ (9,000)
=₹ 51,000
Q.5
Date Particulars L.F Dr Amount Dr Amount
(₹) (₹)
September Ana’s Capital A/c Dr 18,000
30, Pranjal’s Capital A/c Dr 12,000
2019 To Danish’s Capital A/c
(Being Danish’s share of goodwill 30,000
adjusted in capital Accounts of Ana and
Pranjal
September Profit and Loss Suspense A/c Dr 5,400
30, To Danish’s Capital A/c 5,400
2019 (Being Danish’s share of profit up to date
of his death
transferred to his capital account)
September Danish’s Capital A/c Dr 5,35,400
30, To Danish’s Executor’s A/c 5,35,400
2019 (Being amount due to Danish transferred
to his executor’s account)

Working Notes:-
Sales = 2,00,000 + 20% of 2,00,000
= 2,00,000 +40,000
Profit % = 10% - 1% = 9%
Danish’s Share of Profit =₹ 2,40,000 X 9/100 X 5/10 X 6/12 = ₹ 5,400

Q.6 1, Bank A/c Dr. 1,80,00,000

To Deb Application 1,80,00,000
2 Deb Application Dr 1,80,00,000
To Debentures 1,80,00,000
3 Debenture allotment a/c Dr 4,20,00,000
Loss on issue a/c Dr 60,00,000
To Debentures 4,20,00,000
To Premium on redemption 60,00,000
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 4 Bank Dr 4,20,00,000
To Deb. Allotment 4,20,00,000
Q.7 1. Realization A/c Dr 6000
To K’s Capital A/c 6000
(Being wife’s loan discharged by the partner)
2.Realization A/c Dr 27000
To Bank A/c 27000
(Being balance creditor’s paid at a
discount of 10% after part payment through furniture)
3. R Capital A/c dr 5000
K Capital A/c dr 5000
S Capital A/c dr 5000
To P&L A/c 15000
Or
Profit on revaluation =90750.
Partners’ Capital Accounts
Particulars A B₹ C₹ Particulars A B₹ C₹
₹ ₹
To Profit & Loss 1,20,500 72,300 48,200 By Balance b/d 5,00,000 3,00,000 2,00,000
A/c 37,500 22,500 By General Reserve 37,500 22,500 15,000
To C’s Capital A/c 37,500
A/c 35,500 By A’s Capital A/c
(Goodwill) 2,09,450 (Goodwill) 22,500
To Bank A/c By B’s Capital A/c
To C’s Loan A/c 4,24,875 2,54,925 (Goodwill) 45,375 27,225 18,150
To Balance c/d By Revaluation A/c
(Profit)
5,82,875 3,49,725 2,93,150 5,82,875 3,49,725 2,93,150
Liabilities ₹ Assets ₹
Partners’ Capital Accounts Bank 21,000
A 4,24,875 + Loan to A received back 35,500
B 2,54,925 56,500
Creditors 23,000 - Paid to C (35,500) 21,000
Outstanding Salary 7,000 Stock 9,000
B’s Loan 15,000 Debtors 15,000
C’s Loan 2,09,450 Less: Provision for
Doubtful debts (1,500)
13,500
+ Revaluation 750 14,250
Loan to A 35,500
- Received back (35,500) Nil
Land and Building 8,00,000
+ Revaluation 90,000 8,90,000
9,34,250 9,34,250
Q.8 Journal entries.
Q.9 . Income & Expenditure A/c
Expenditure ₹ Income ₹

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 To Loss on Sale of Furniture 2,000 By Subscriptions 60,200
(6,000 – 4,000) + Advance on 01-04-2019 1,000
To Salaries 24,000 Outstanding on 31-03-2020 3,700
To Travelling Expenses 6,000 64,900
To Stationery Consumed - Advance on 31-03-2020 (3,200)
Opening Stock 1,200 - Outstanding on 01-04-2019 (2,000) 59,700
+ Purchase 2,300 By Donation 8,000
3,500 By Entrance Fees 800
- Closing Stock 2,700
(800) To Rent
16,000
+ Outstanding on 31-03-2020 2,000
18,000 17,000
- Outstanding on 01-04-2019
(1,000) 2,000
To Depreciation on 3,000
- Furniture (WN-1) 11,800
- Books (WN-2)
To Surplus (Excess of Income over
Expenditure)
68,500 68,500
. Furniture A/c
Particulars ₹ Particulars ₹
To Balance b/d 16,000 By Bank A/c (Sale) 4,000
By Loss on Sale of Furniture A/c 2,000
(6,000 – 4,000)
By Depreciation A/c (Bal. Fig.) 2,000
By Balance c/d 8,000
16,000 16,000
Books A/c
Particulars ₹ Particulars ₹
To Balance b/d 13,500 By Depreciation A/c (Bal. Fig.) 3,000
To Bank A/c (Purchase) 6,000 By Balance c/d 16,500
19,500 19,500
Q.10 1. Outflow
2 outflow
Q.11 RFO-20%
Other income 100%
Total revenue 21.57
Expenses 19.54 %
Profit before tax 24.24
Profit after tax 26.83
Or
2017-18 2018-19
100 100
35 40
15 8
50 48
50 52
20 20.8
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 30 31.2

Q.12
Particulars ₹ ₹
A. Cash Flow from Operating Activities
Net Profit Before Tax and Extraordinary Items (WN-1) 42,000
Adjustments for Non-Cash and Non-Operating Items
Add: Interest on Debentures 5,000
Depreciation on Tangible Assets (Building) 10,000
Goodwill Amortised 4,000 19,000
61,000
Less: Interest Received on Non-Current Investments (1,600)
Operating Profit Before Working Capital Changes 59,400
Add: Increase in Current Liabilities and Decrease in Current Assets
Trade Payables 8,000
67,400
Less: Decrease in Current Liabilities and Increase in Current Assets
Inventories (37,000)
Cash Generated from Operations 30,400
Less: Income Tax Paid (Net of Refund) --------
Cash Flow from (Used in) Operating Activities 30,400

B. Cash Flow from Investing Activities

Cash Inflows
Interest Received on Non-Current Investments 1,600
Cash Outflows
Purchase of Tangible Asset (1,20,000)
Non-Current Investments Made (10,000) (1,30,000)
Cash Flow from (Used in) Investing Activities (1,28,400)

C. Cash Flow from Financing Activities

Cash Inflows
Issue of Shares 80,000
Issue of 10% Debentures 8,000
Cash Outflows 88,000
Interest on Debentures (5,000)

Cash Flow from (Used in) Financing Activities 83,000

Net Increase/(Decrease) in Cash and Cash Equivalent (A+B+C) (15,000)
Add: Opening Cash and Cash Equivalent
Cash & Cash Equivalent 39,000
Current Investments (Marketable) 20,000 59,000
Closing Cash and Cash Equivalent
Cash & Cash Equivalent 26,000
Current Investments (Marketable) 18,000 44,000
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