3 [Average Concept] > Pr> Time Allowed: 3 hours} [Maximum Marks: 80 General Instructions: (8) This question paper contains 34 questions. All questions are compulsory. (i) This question paper is divided into two parts, Part A and B. (iii) Part - A is compulsory for all candidates. (i) Part - B has two options ie. (i) Analysis of Financial Statements and (ii) Computerised Accounting. Students must attempt only one of the given options. (v) Question 1 to 16 and 27 to 30 carries 1 mark each (vi) Questions 17 10 20, 31 and 32 carries 3 marks each. (vii) Questions from 21, 22 and 33 carries 4 marks each. (viii) Questions from 23 to 26 and 34 carries 6 marks each. (é) There is no overall choice. However, an internal choice has been provided in 7 questions of one mark, 2 questions of three marks, 1 question of four marks and 2 questions of six marks, PART-A Accounting for Partnership Firms and Companies 1. X, Y and Z are partners sharing profits in the ratio 8 : 7: 5. Y retired and his share was taken by X and Z in ratio 1 : 2. The new profit sharing ratio of X and Z will be: (@) 37:29 (b) 31:29 (©) 29:25 (@) None of these 2. In case of change in profit sharing ratio, increase in the value of machine will be treated as: (a) Debited to Revaluation Ale (b) Credited to Revaluation Ale (c) Debited to Partners Capital in old ratio (a) None of these 3. Which of the following capital is not shown in the company’s Balance Sheet? (a) Authorised capital (b) Issued and subscribed capital (c) Called-up & paid up-capital (a) Reserve capital Or Honest Ltd, issues equity shares of % 10 each at a premium of 80%, payable on Application & 4 (including premium of ® 1), On Allotment & 6 (including premium of € 3), On First call € 4 (including premium of & 2) and balance on second and final call along with premium which amounts to: (a) t8 (b) 4 (c) @12 (a) %6 @ scanned with OKEN Scanner+000 by A, a partner, on dissolution of the firm will be: fi Partic Date iculars LE} Dr @) Cr) (@) [Bank Ave Dr. aa To A's Capital A/c . 3,400 (&) Ass Capital Ave Dr To Bank A/c san 3,000 (©) | Realisation Ale Dr 3,400 To A's Capital Ale 3,400 (@ | Reatisation Ave Dr 3,000 To A's Capital A/c 3,000 Or What journal entry will be passed when partner X paid realisation expenses on behalf of partner ¥? Date Particulars LE | Dr @). Cr (@) | X's Capital Ale Dr. To Y's Capital Ae © | Ys Capital Ave Dr. To X's Capital Ale (©) | Realisation Ale Dr. To X's Capital Ale (@ [No entry 5. A, B, Cand D are four partners sharing profits in the ratio of 4:3:2:1. They decide to admit their manager E 8s @ partner for 1/4" share which he acquires from A and B in the ratio of 7:3. The sacrificing ratio of A and B will be: (a) 3:7 (b) 7:3 (isn (@) none of these 6 Cloud Ltd, issued 4,000 shares of % 100 each at a premium of 254%. The amounts were payable as follows: %30 on application, & 65 on allotment and % 30 on first and final call. X holding 500 shares paid only application Money whereas Y holding 400 shares paid call along with allotment. The amount collected on allotment amounted to: (a) % 2,18,000 (b) % 2,38,500 (©) & 2,28,600 (@ % 239,500 Or AG Ltd. purch: jachinery from Ronaq Ltd and paid the consideration amount by issuing 5,000 Equity shares of t10 ioe at premium of 20% and 1000 7% Debentures of % 100 each at a discount of 10%. What is the purchase price of the Machinery? (@) © 60,000 (©) % 1,50,000 7. As per SEBI, the application money should not be less than: (@) 25% of the face value of share (©) 15% of the face value of share (6) © 100,000 (@) © 90,000 (0) 25% of the issue price of share (d) None of these LT Sa @ scanned with OKEN Scannerag profits in the ratio of 4:3: 2: 1. N retired and remaining partners agreed to share in oF Suctitive, iF any, S&L MNand Osha future profits equally, Find out (@) Gaining Ratio of Mand OL () Gaining Ratio of Mand LL (©) Gaini (2) None of the above A. Banal C were shating profits in the ratio of . Accounts of the firm are closed on 31st March every year, On Ist November, 2012 B died. As per partnership deed deceased partner’s share in profit till death must be computed on the basis of last year’s profit whieh was & 1,75,000, On examination, it was found that there was # loss by fire amounting to ¥ 22,000 debited to Profit & Loss Ale and a profit of abnormal nature amounting to 7 17,000 credit to Profit & Loss Ac. For the last several years firm's profits have been showing an upward trend of 20% every year. Compute B's share in Profit till date of death. (e) € 37.800 (©) ©35,700 (@) © 30.025 (@) % 36,750 Question no. 9 and 10 are based on the hypothetical situation given below. Amit and Sumit are partners in ratio of 3:1, They invested € 50,000 and & 1,00,000 as their capitals. Amit has advanced 20,000 to the firm. Partners are entitled to: a loan of (@) Interest on capital @10% p. (®) Sumit is entitled to a salary of & 22.200. 5.000 per quarter. Net profit for the year was 9. What is Amit’s share of loss when salary and interest on capital is treated as a charge? (@) t1 () 9.800 (©) % 10,800 (@) % 10,200 10. What amount of salary is payable to Sumit if salary and interest on capital is treated as an appropriation? (a) = 10.500 () © L800 (©) & 12,000 (@) 15.200 1. RO and R are partners in 5: 4 1. R is guaranteed that his share of profit will not be less than € 80,000, Any deficiency will be borne by P and Q in the ratio of 3 : 2. Firm's profit was 5,60,000. How much profit share goes to Q after bearing deticiency of R? (a) % 214.400 (©) & 114,400 (©) ® 2.09,600 (@ © 233,600 12. Accounts Guru Ltd. invited applications for 10,000 shares of ® 10 each. Applications were received for 12,000 shares. The amount was paybl On application % 2 On allotment 2 3 Balance First and final call fe allotment, ‘The amount received on allotment after The excess money on application was adjusted to sh The amount of allotment money was not received on adjusting this excess application money is © 18,500, shares. (b) 3,000 shares: (d)_ 1,500 shares (a) 2,000 shares (c) 2,500 shares 3. Excess value of net assets over purchase consideration at the time of purchase of business is (b) Credited to Capital (@) Debited t0 Goodwill account, (@) Credited to General reserve (©) Credited to Vendor's account saa znsnsnas eee @ scanned with OKEN Scanneree 14 Aand B ate partners sharing profits and losses in the Fatio of 3 hare in profits He pays © 1.00.0 as pool The me sn C is admitted into partnership for 1/Sth Partners A, B and C in the new firm would. fe 3:1: 1 Goodwill will be credited to ily A 1,00,000 (a) Only AT ae () Only BE 1.00.00 0, 1000 () AT 0.000. B (4) A 275,000; B 25,000 P.O and R are in » partnership business. P used & 1,00,000 of the firm for some specslato y and earne (a) P must return 2 1,00,000 to the (0) P must pay back 2 1,00,000 equally O and R () P must return @ 1.75.00 1 (d) P must sacrifice his shar at year Assertion (A): Net ton Account should be after all charges but before any appropri Reason (I): If Net f a 7 to Profit and Loss ap udded hack to the Net Profit to be ered (a) (A) is cortect but (F (b) Both (A) and \ f4A) () Both (A) and ( (d) Both (A) and (F A) 16 Alter paying th ‘ sssets on dissolution of partnership firm, the payrn (a) Partner's 1 Current (d) None of these 17, Snoopy and Emily w Maria was admitted for U/Sth share and in future they decided 1 Gooxtwill appear in the books at % 21,000, Maria brought © 49,000 4 t cessary Journal entries showing working notes IAB. C are partners ‘ o P21 are: & 120,000, % 96,000 and 8 84,000. AS per j (@) Interest on capit: interest on capital ere @ 1,80,000 after charging Prepare Profit and Loss Ap C8 sala st, 2022, the balances in the r profit and drawings were % 2,50,000, overed that the interest on capital and interest Tanuj, Pankaj and Akhil are ps pital accounts of Tan 8 260,000 and & 2.22,000 resp 08 drawings had been omitted. The During the year, Akhil withdrew T Personal need Sad j @ 6% pa. and interest on capital isto be allowed @ 8% p.a. The interest on drawings is to be 7s our working notes clearly. ee _ @ scanned with OKEN Scanner Pass the necessary adjustment entry. Show ¥'19. Pass necessary entries in the books of BMO Ltd. for the following cases: © 4000, 676 Debentures of € 100 each issued at a premium of ¥ 15 per debenture redeemable at par, (2) 6,000, 6% Debentures of € 100 each issued at a discount of % 5 per debenture redeemable at 120% Or On 1" April 2022, Vikram Ltd, issued 5,000, 8% Debentures of & 100 each at a discount of 5% redeemable at a Premium of 10%. Public subseribed for 4,800 debentures which were duly allotted. The Company had a balance (of & 50,000 in Securities Premium Reserve A/c. The company earned a profit of € 80,000 for the year, Pass necessary journal entries for issue of debentures and for writing off loss on issue of debentures, 20. Following is the Balance Sheet as at 31st March 2022 of A and T sharing profits in the ratio of 2:3, cae ‘Amount Amount ‘Liabilities a Assets @) Creditors 30,000 | Cash 14,000 Mrs. A's Loan 10,000 | Stock 12,000 T's Loan 25,000 | Debtors 18,000 General Reserve 5,000} Less: Provision for did (1,000) 17,000 Capital Accounts: Plant 30,000 A 8,000 Investments 10,000 T 10,000 Goodwill 5,000 88,000 On the above date the firm was dissolved and the following was the result: (8) A took over investments at & 8,000. @) The assets realised as follows: Stock ® 8,000; Debtors & 16,500; Plant & 3,000 less; Goodwill € 4,000. (ii) Creditors were due to be paid on 30 June, 2020 and so received a discount of 20% p.a. (iv) Expenses of realisation were & 2,000 paid by A. Prepare Realisation Account for the firm on dissolution. 21. Sapphire Ltd. had an authorised capital of € 1,00,000 divided into 1,000 equity shares of ® 100 each, During the Year, it issued 500 equity shares to public for subscription payable % 30 on application, % 30 on allotment and ¥ 20 on first and balance on final cal. All the shareholders paid the calls except first call money on 50 shares. Final call is not yet made. 50 shares were forfeited and reissued at € 50 per share, € 80 paid up. Show Share Capital in the Balance Sheet of the company as per Schedule III of Companies Act, 2013 as at 31st March, 2022. 22. Neha, Pooja and Anju were partners sharing profits and losses in the ratio of 2:3:2. On 1/4/2022 they decided to change their profit sharing ratio as 2:1:1. On this date their Balance shect showed the following balances: General Reserve & 40,000; Workmen Compensation Reserve © 13,000; (Liability against this 4,000) Profit and Loss A/e (Dr. balance) & 4,200 The assets of the firm were revalucd and they resulted in a gain of & 8,400. The partners had decided to distribute all the Reserves and Profit and Loss A/e but to leave the assets at their original amount. Show the effect of the above adjustments in the books of the partnership firm, Sof € 10 each at a premium of 20%, The amount 23, Malabar Ltd. invited applications for issuing 75,000 equity sha was payable as follows: On Application ¥ 2 per share On Allotment @ 5 per share (including premium) On First and final call balance amount. @ scanned with OKEN Scanneree applications wore teceivedt Cor 180,000 shares, Applications for 25,000 shares were rejected and appl money oF these applicants Was rethied Shares were allotted ow prostata basis to the re rows money Feeeive WEL applications wa St) shares, failed t0 pay . ining appli vuusted towards sum due on allotment, Rama who had applied ik allotment and call money and Kriti failed to pay first and final call on her 1,000 hares. AIL these shares wore forfeited, 1,000 shares out of forfelted shares were reissued @ & 7 per share fully pais tung al sates of Rama, ass necessaty journal entries in the books of the company for the above transactions, or THC Lad, issued for public subscription 1,50,000 shares of @ 10 cach at a premium of 10% payable as 3 on pplication (including premium), £3 on allotment and & Son cull ‘Phe company received applications for {AA\OO shares. The allotment was done as under (2) Applicants of 30,000 shares were allotted 10,000 shares, (6) Applicants for 1.40,000 shares were allotted 80,000 shar (©) Remaining applicants were allotted 60,000 shares, Money in ewess of allotment was returned, Richi, a shareholder who was allotted 4,000 shares out of the group 4 failed to pay allotment money and on her subsequent failure to pay call money her shares were forfeited. Shuchi, 9 shareholder who had applica for 6,500 shares out of group ‘e* paid the call money along with the allotment, Of the shares forfeited 2,000 shares were reissued as fully paid for & 9.50 per share. s the journal entries to record the above transactions in the books of the company. 1, The Balance Sheet of X,Y, Z who was sharing profits in proportion of capital as follows: Balance Sheet aas.ar 31% March, 2022 Amount Amount Assets @. 4 ® Sundry Creditors 7.000 | Cash at Bank 15,600 Capitals: Debtors 5,000 x 000] Less: Provision for doubtful debts (100) 4.900 y 20,000 | Furniture Zz 15,000 | Stock 10,000 Land and Building 11,500 67,000 ny Y retired and the following adjustment of the assets and Kabilities has been made before the ascertainment of the amount payable by the firm to Y. ted by 5% (0 That the stock be depree (i) 1 aased 10 50% on debtors the provision for doubtful debts be ing claim of damages. nade in respect of outst ii) That a provision of & 750 be () That the land and build ated by 20%. y be app! ire firm be fixed at & 16,200 and Y's share of the » s profits equally. ©) That the goodwill of the Account of X and Z, who will share ful tion account and pital accounts, iaetners’ ca Y SU are required to prepare the revalu Tatios, ce @ scanned with OKEN ScannerOr Neha and Preeti two partners who were sharing profits and losses equally, had the following Balance Sheet as at 31% March, 2020. They have decided to admit Chandra into partnership as an equal partner on that date, Balance Sheet as at 31" March, 2022 ae eat Ae) | Liabilities ie Assets ae Capital ‘Machinery 28,000 | Neha 35,000 | Investments 18,250] | Preeti 25,000 | Debtors 17,400 | Creditors 7,000 | Less: Reserve for doubtful debts (1,400) 16,000 | Employees Provident Fund 3,500 | Stock 9250] | Investment Fluctuation Reserve 9,000 | Cash 8,000 79,500 79500] For the purpose of admission, the following conditions have been agreed: @ Assets and liabilities shall be revalued as follows: (@) Investments % 17,500 (®) Reserve for doubtful debts increased to @ 1,750 (0) Stock to be valued at ¥ 8,000 (@) Machinery to be depreciated by 5% (e) There is an old furniture worth % 1,200 to be brought into books and was taken over by the partners in their old profit sharing ratio. (i) Goodwill of the firm is valued at & 22,500 and Chandra paid for his share. (iii) Chandra has agreed to bring in & 50,000 as his capital in addition to his Goodwill. Prepare Revaluation account and Capital accounts of partners. 25. A, Band C are partners in a firm sharing profits in 3 : 2 : 1. The firm closes its books on 31st March ever year, C died on 30.09.2021. On C’s death the goodwill of the firm was valued at % 60,000. On C’s death, his share in the profits of the firm till the time of his death was to be calculated on the basis of previous year's profit which was € 78,000. Revaluation account also showed some profit. Fill the missing figures in the following journal entries. Journal Entries Date Particulars LR | de® | cee® ‘As Capital Ale De = | Bs Capital Ale Dr ‘To C’s Capital Ale 10,000 (For treatment of goodwill on death of C) Profit and Loss Suspense Ale De. ‘To C’s Capital Alc (For C’s share of profit tll the time of his death) @ scanned with OKEN ScannerRevaluation A/c To As Capital Ale 7 To B’s Capital Ale 45,00 To C’s Capital Ale 1,500 {For distribution of profit on revaluation in pariners old ratio) , C's Capital Ale Dr. To Cash Ale a To C’s Loan Ale ae (For 50% paid immediately and balance transfer to his loan a/c) 26, On Ist April, 2018, Vishwas Ltd. was formed with an Authorised capital of & 10,00,000 divided into 1,00,000 2m, %, equity shares of € 10 each, On Ist Apri 2020 it acquired the running business ofits competitor with following assets and liabilities: Land € 4,50,000; Debrors € 1,00,000; Furniture & 90,000; Creditors ® 1,80,000 The purchase consideration decided % 6,00,000 which was paid by issuing a cheque of & 1,25,000 and balance in form of 8% debentures of & 100 each at a discount of 5%, On the same date, the company issued 1,000, 8% debentures of ¥ 100 each as collateral security to Punjat national bank who had advanced a loan of € 1,50,000. The company had already a balance in Security Premiun Reserve A/c of & 20,000. On the basis of the above information, answer the following questions: () Compute the number of 8% debentures issued to the vendor, issue of debentures. (ii) Pass journal entry to write off the discount on (ii, How much interest will be paid on debentures issued as collateral security? PART-B Analysis of Financial Statements If opening inventory is ® 38,500, closing inventory is € 41,500. Annual sales is € 2,00,000 and Gross profit i 25% on cost. Then the inventory turnover ratio will be: (a) 3 times () 4 times (©) 45 times (@) none of these Or Proprietary ratio establishes relationship between: (4) Proprictor’s funds and Long-term Debts. (b) Proprictor’s funds and Total Assets, (c) Total Assets and Long-term Debts (@) None of these ' A Trade Payable of a concern, whose operating cycle is 18 months, is expected to be paid in 24 months, will b classified as: (@) Current Liabilities Following is the extract from the balance sheet of a Ltd. company: (b) Non-current Liabilities (€) Any of these (d) None of these 313.2022 | 142021 Particulars ®@ ® 2,70,000 | _3.50,000 Machinery 1s © 60,000, On 1-4-2021, a part of the machine was sold at a loss Pepreciation on Machinery during the year *12,000, Calculate cash flows from investing activity. in (d of 2, () inflow of & 12,000 (b) outflow of € 80,000 (@) outflow of & 72,000 (c) inflow of € 8,000 @ scanned with OKEN Scanner30, 31. 32. 33, Or Sigma Ltd., a financial enterprise had advanced a loan of & 5,00,000, invested ¢ 7,00,000 in shares of the other companies and purchased machinery for ® 8,00,000. It received dividend of © 65,000 on investment in shares, The company sold an old machinery of the book value of @ 59,000 at a loss of & 9,000. Cash flow from investing activity will be: (@) An inflow of € 7,50,000 (0) An outflow of & 7,50,000 (c) An inflow of & 50,000 @) An outflow of @ 7,00,000 Under which type of activity will you classify payment of dividend by a mutual fund company while preparing Cash Flow Statement? (a) Investing Activity (®) Financing Activity (©) Operating Activity (d) None of these (a) What is the difference between inventory of finished goods and stock in trade? (®) Give two examples each of Other Current Assets and Reserves and Surplus. Why is proposed dividend shown as contingent li than proposed dividend, ity? List any two items shown as contingent liability other (@) From the following information, calculate ‘Interest Coverage Ratio’ : Profit after Interest and Tax = 6,00,000 10% Debentures —8,00,000 Rate of Income Tax - 40% (6) From the following information, compute Debt to Capital Employed Ratio. 10% Debentures % 1,00,000 8% Public Deposits % 2,50,000 Long-term Provisions % 1,00,000 Equity Share Capital % 4,00,000 Reserves and Surplus % 2,50,000 or | From the following information related to 2021-22, compute Net Assets or Capital Employed Turnover Ratio: z Plant and Machinery 5,00,000 Land and Bui 3,00,000 Motor Car 2,50,000 Furniture 1,75,000 Inventory 1,25,000 Debtors 1,40,000 Bank 1,20,000 Cash 80,000 Creditors 3,60,000 Bills Payable 20,000 Outstanding Rent 40,000 Revenue from Operations for the year 2021-22 were ® 40,00,000. b @ scanned with OKEN Scannerr {u4 From the fol lowing information, prepare a Cash Flow Stateme Balance Sheet | as at 31 March, 2022 | Gem Particulars Note No. | 3132022 @ | 3132021 @) 7 EQUITY & LIABILITIES | Y shareholders’ Funds: (a) Share Capital 1 1,35,000 1,30,000 (6) Reserves and Surplus 2 $4,000 +2. Non-Current Liabilities (10% Debentures) 3.000 3, Current Liabilities: (@) Trade Payables 12,500 8500 (0) Short-term Provisions 3 10,000 8,000 Total 194,500 163.500 1, ASSETS 1. Non-Current Assets: (@) Property, Plant and Equipments and Intangible Assets ( Property, Plant and Equipments (Tangible) 141,000 132.000 (i) Intangible Assets (Goodwill) 8,000 10500 (6) Non-Current Investments 10,000 3,000 2. Current Assets: (@) Cash and Cash Equivalents 12,000 (6) Other Current Assets 6.000 Total 1,95,500 1.65.50 Notes to Accounts: Particulars 313.202 @ | 3132021 @ 1. Share Capital Equity shares of € 100 each 135,000 1,30,000 2, Reserves and Surplus Surplus ie, balance in Statement of Profit and Loss 22,000 4.000 3. Short-term Provisions Provision for Tax 10,000 8,000 10,000 8,000 Additional information: 1. Tax paid during the year % 5,500. 2. Depreciation charged during the % 30,000. 3. Debentures were issued on 1% April, 2022. 4. The directors proposed dividend of € 2,400 last year, whieh was approved by the sharcholders and was paid during this year @ scanned with OKEN Scanner