KENDRIYA VIDYALAYA SANGATHAN

BHUBANESWAR REGION
PRE-BOARD EXAMINATION -2024-25
CLASS: XII COMM. SUB: ACCOUNTANCY
TIME: 3 HRS M.MARKS: 80
MARKING SCHEME
Q1. (a) 41:7:12
Q2. c) Both (A) and (R) are incorrect
Q3. b) ₹ 9,000 or c) ₹ 24,00,000
Q4. (d) 3,00,000
Q5. (d) 5,000 or (d) 12%
Q6. (c ) 12%
Q7. (d) 80,000
Q8. (b) 11:7:6
Q9. (c) 50,000 Or (a) 6:5:5
Q10. (a) 24,000
Q11. (b) 67,500 Or (a) Profit and Loss Suspense Account
Q12. (d) 1,50,000
Q13.(d) 30,000 (loss)
Q14. a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct explanation of
Assertion (A)
Q15. (d) 2,50,000
Q16. b) ₹ 10,00,000 or a).Interest on debentures is an appropriation of profits.
Q17.
DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)
(i) Investment Fluctuation Reserve 1,00,000
A/c Dr To Bat’s capital A/c 50,000
To Cat’s capital A/c 30,000 30,000
To Rat’s capital A/c 20,000 20,000
(Being Invest. Fluctuation Reserve
distributed)
Investment A/c Dr 80,000
To Revaluation A/c 80,000
(Being Increase in investment
recorded)
Revaluation A/c Dr 80,000
To Bat’s capital A/c 40,000
To Cat’s capital A/c 24,000
To Rat’s capital A/c 16,000
(Being Gain on revaluation
transferred to partners)
 (ii) Investment Fluctuation Reserve 1,00,000
A/c Dr To Bat’s capital A/c 40,000
To Cat’s capital A/c 24,000
To Rat’s capital A/c 16,000
To Investment A/c 20,000
(Being decrease in investment
recorded and balance Invest.
Fluctuation Reserve distributed)
(iii) Investment Fluctuation Reserve 1,00,000
A/c Dr Revaluation A/c Dr 10,000
To Investment A/c 1,10,000 1,10,000
(Being decrease in investment
recorded)
(iv) Bat’s capital A/c Dr 5,000
Cat’s capital A/c Dr 3,000
Rat’s capital A/c Dr 2,000
To Revaluation A/c 10,000
(Being Loss on revaluation
distributed among the partners)

Q18.

DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)

Profit and Loss Suspense A/c Dr. 30,000
To Sara’s Capital A/c 30,000
(Being Sara’s share of profit
allowed till the date of her death)
Workings: Profit % to sales turnover for the year ended 31st March,2021=1,20,000/10,00,000 X100=
12% Estimated sales for the year ended 31st March,2022=₹ 10,00,000+20% of ₹ 10,00,000 = ₹
12,00,000 Estimated sales till 01st February,2022 = ₹ 12,00,000 x 10/12 = ₹ 10,00,000 Profit
percentage 12-2=10% Profit amount till 01st February, 2022 = 10% of ₹ 10,00,000 = ₹ 1,00,000 Sara’s
share of profit till 1st February,2022= 1,00,000/10 X 3 = ₹ 30,000
OR
(i) Share in the subsequent profits attributable to the use of his balance.
₹ 42,250 x 20,500 /₹1,80,000 = ₹ 4,812
(ii) Interest @ 6% p.a. on the use of his balance = ₹ 42,250 x 6/12 x 6/100 = ₹ 1,267.50
C should exercise option (i) since the amount payable to him under this option is more as compared to
the amount payable to him under option (ii).
Q19.

DATE PARTICULARS L.F Dr. (Rs.) Cr.(Rs)

(i) Assets A/c Dr. 23,50,000
Goodwill A/c Dr. 50,000
To Liabilities A/c 6,00,000
To Mithoo Ltd. A/c 18,00,000
(Business purchased of Mithoo Ltd.
comprising of Assets and Liabilities)

(ii) Mithoo Ltd. A/c Dr. 18,00,000

Loss on Issue of Debentures A/c Dr. 3,00,000
To 9% Debentures A/c 20,00,000
To Premium on Redemption of 1,00,000
Debentures A/c
OR
 Books of Random Ltd.
Journal Entries
DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)
(i) Assets A/c Dr. 45,00,000
To Liabilities A/c 6,40,000
To Mature Ltd. A/c 36,00,000
To Capital Reserve A/c 2,60,000
(Business purchased of Mithoo
Ltd. comprising of Assets and
Liabilities)
(ii) Mature Ltd. A/c Dr. 36,00,000
To Bank A/c 1,50,000
To 12% Preference Share 30,00,000
Capital A/c 4,50,000
To Securities Premium A/c
(Debentures issued to Mithoo
Ltd. at Discount, redeemable at
Premium)

Q20.
DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)
P’s Capital A/c Dr 11,648
R’s Capital A/c Dr 96
To Q’s Capital A/c 11,744
(Being entry passed for adjustment
of interest on capital and salary)

Q21.
Balance Sheet (Extract) as at
PARTICULARS NOTE NO. AMOUNT (Rs.)
I. EQUITY AND LIABILITIES
(1) Shareholder’s Funds
(a) Share Capital 1 7,78,000
Notes to Accounts
Note 1:
PARTICULARS DETAILS AMOUNT(Rs.)
1. Share Capital Authorised Capital
2,00,000 Equity shares of Rs.10 each 20,000
Issued Capital 80000 Equity shares of 8,000
10 each Subscribed capital
Subscribed and fully paid up
74,000 equity shares of 10 each 7,40,000
Subscribed but not fully paid-up
4,000 equity shares of 10 each 4,0000
Less: calls in arrears (4,000x2) (8,000)
Add Forfeited Shares 2,000 equity 32,000
shares@3 6,000
7,78,000

Q22.
DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)
Share capital A/c Dr 45,000
To Forfeited shares A/c 27,000
To share final call A/c 18,000
 (Being 4500 shares forfeited)

Bank A/c Dr 22,500

Forfeited shares A/c Dr 22,500
To Share Capital A/c 45,000
(Being 4500 shares reissued)
Forfeited share A/c Dr 4,500
To Capital reserve A/c 4,500
(Being balance of share forfeiture
transferred to Capital reserve)
Dr. SHARE FORFEITURE ACCOUNT Cr.
PARTICULARS Rs. PARTICULARS Rs.
To Share Capital A/c 22,500 By Share Capital 27,000
To Capital Reserve A/c 4,500
Q23.

DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)

i. Bank A/c Dr. 16,00,000
To Share Application A/c 16,00,000
(Being Application money received)
ii. Share Application A/c Dr. 16,00,000
To Share Capital A/c 10,00,000
To Share Allotment A/c 5,00,000
To Bank A/c 1,00,000
(Being Application money utilised)
iii. Share Allotment A/c Dr. 8,00,000
To Share Capital A/c 4,00,000
To Securities Premium A/c 4,00,000
(Being allotment due with premium)
iv. Bank A/c Dr. 2,85,000
Calls in Arrears A/c Dr. 15,000
To Share Allotment A/c 3,00,000
(Being allotment received except of
Simba)
v. Share First and Final Call A/c Dr. 6,00,000
To Share Capital A/c 6,00,000
(Being call money due)
vi. Bank A/c Dr. 5,70,000
Calls in Arrears A/c Dr. 30,000
To Share First and Final Call A/c 6,00,000
(Being call money received except of
Simba)
vii. Share Capital A/c Dr. 1,10,000
Securities Premium A/c Dr. 15,000
To Share Forfeited A/c 70,000
To Calls in Arrears A/c 45,000
(Being Simba’s shares forfeited)
viii. Bank A/c Dr. 48,000
Share Forfeited A/c Dr. 12,000
To Share Capital A/c 60,000
(Being forfeited shares re-issued)
ix. Share Forfeited A/c Dr. 30,000
To Capital Reserve A/c 30,000
(Being gain on re-issue transferred
 to Capital Reserve)

OR
Journal Entries in the Books of Shaktimaan Ltd.
DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)
i. Share Application A/c Dr. 6,00,000
To Share Capital A/c 2,00,000
To Securities Premium A/c 2,00,000
To Share Allotment A/c 2,00,000
(Being Application money utilised)
ii. Share Allotment A/c Dr. 5,00,000
To Share Capital A/c 5,00,000
(Being allotment due with premium)
iii. Share First and Final Call A/c Dr. 3,00,000
To Share Capital A/c 3,00,000
(Being call money due)
iv. Calls in Arrears A/c Dr. 15,000
To Share First and Final Call A/c 15,000
(Being call money received except
of Simba)
v. Share Capital A/c Dr. 50,000
To Share Forfeited A/c 35,000
To Calls in Arrears A/c 15,000
(Being Simba’s shares forfeited)
vi. Share Forfeited A/c Dr. 14,000
To Capital Reserve A/c 14,000
(Being gain on re-issue transferred
to Capital Reserve)
Cash Book (with Bank Column only)
DATE PARTICULARS L.F Rs. DATE PARTICULARS L.F Rs.
i. To Share Application 7,20,000 ii. By Share 1,20,000
A/c Application A/c
iii. To Share Allotment 3,00,000
A/c
iv. To Share First and 2,85,000
Final Call A/c
v. To Share Capital A/c 20,000
vi. To Securities vii. By Balance c/d 12,11,000
Premium A/c
13,31,000 13,31,000
Q24.
Loss on revaluation -3,000
Bobby’s Capital Balance – 27,050
Rubby will be paid immediately -20,000
Chhabi’s Capital Balance -27,050
Bobby will bring -7,550 and Chhabi will bring -17,550

OR
Revaluation Loss -32,000 (X – 19,200 & Y – 12,800)
Capital Balance – X- 1,68,000, Y – 1,12,000 and Z -56,000
Q25.

DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)

(i) Dhwani’s Loan A/c Dr. 50,000
 To Bank A/c 42,000
To Realisation A/c 8,000
(Dhwani’s Loan of ₹ 50,000 settled
at ₹ 42,000)
(ii) Paavni’s Loan A/c Dr. 40,000
To Realisation A/c 40,000
(Paavni’s Loan of ₹ 40,000 settled
by giving an unrecorded asset)
(iii) Realisation A/c Dr. 60,000
To Loan to Charu A/c 60,000
(Loan to Charu was settled by
payment to Charu’s brother Loan)
(iv) Iknoor’s Loan A/c Dr. 80,000
To Realisation A/c 60,000
To Bank A/c 20,000
(Iknoor’s Loan of ₹ 80,000 and
Machinery was given as part
payment and rest through bank)

Q26.
DATE PARTICULARS L.F Dr. (Rs.) Cr. (Rs.)
i. Bank A/c Dr. 55,00,000
To Debenture Application and 55,00,000
Allotment A/c
(Application money received)
ii. Debenture Application and Allotment 55,00,000
A/c Dr.
Loss on Issue of Debentures A/c Dr.
To 8% Debentures A/c
To Securities Premium A/c 50,00,000
To Premium on Redemption of 5,00,000
Debentures A/c (Debenture issued 10,00,000
at premium, to be redeemed at
premium)
iii. Securities Premium A/c Dr. 7,80,000
Statement of Profit and Loss A/c Dr. 2,20,000
To Loss on issue of debentures 10,00,000
A/c
(Loss on issue of debentures written
off.)
iv. Debenture Interest A/c Dr. 2,00,000
To Debentureholders A/c 2,00,000
(Interest due on debentures)
v. Debentureholders A/c Dr. 2,00,000
To Bank A/c 2,00,000
(Interest paid to debentureholders)
vi. Statement of Profit and Loss Dr. 2,00,000
To Debenture Interest A/c 2,00,000
(Interest on Debentures charged to
Statement of Profit and Loss)

Part B :- Analysis of Financial Statements

Q27. c). Not Free from Bias
OR
c). Loose Tools and Stores and Spares
Q28. b) 3 times
Q29. c) Statement I is correct, and Statement II is incorrect
Or
a) No effect
Q30. d) 180,000
Q31.

S.NO ITEMS HEADINGS SUB-HEADINGS

i. Loose Tools Current Assets Inventories
ii. Loan repayable on demand Current Liabilities Short Term Borrowings
iii. Provision for Retirement Non-Current Liabilities Long Term Provisions
benefits
iv. Pre-paid Insurance Current Assets Other Current Assets
v. Capital advances Non-Current Assets Long Term Loans and
Advances
vi. Shares in Listed Companies Non-Current Assets Non-Current Investments

Q33. Gross Profit Ratio = Gross Profit / Revenue from Operations * 100
Revenue from Operations = Rs 10,00,000
Gross Profit = Revenue from Operations – Cost of Revenue from Operations
Cost of Revenue from Operations = Purchases + Opening Inventory + Direct Expenses – Closing
Inventory = 3,60,000 + 60,000 + 50,000 + 60,000 – 1,00,000 = 4,30,000
(Average Inventory = Opening Inventory + Closing Inventory / 2
80,000 = 60,000 + Closing Inventory / 2
Closing Inventory = 1,00,000)
Gross Profit = 10,00,000 – 4,30,000 = 5,70,000
Gross Profit Ratio = 5,70,000/10,00,000 * 100 = 57%
OR
Net Profit Before Interest & Tax = Profit after Tax + Tax + Interest
(Tax = 6,00,000 * 20/80 = 1,50,000)
10,00,000 = 6,00,000 + 1,50,000 + Interest
Interest = Rs 2,50,000
Interest on Debentures = Nominal value of Debentures * Rate of Interest/100 2,50,000 = 25,00,000 *
Rate of Interest/100 Rate of Interest (R) = 10%

Q32.
Comparative Statement of Profit & Loss
Particulars 2021-22 2022-23 Absolute Proportionate
(Rs.) (Rs.) Change (in Change (in
Rs.) %)
A. Revenue from operations 8,00,000 10,00,000 2,00,000 25
B. Add: Other Income 1,50,000 2,20,000 70,000 46.67
C. Total Revenue (A+B) 9,50,000 12,20,000 2,70,000 28.42
D. Less: Cost of materials 3,00,000 4,00,000 1,00,000 33.33
consumed
Change in inventories of finished 1,00,000 2,00,000 1,00,000 100
goods and work in progress
Other Expenses 80,000 1,50,000 70,000 87.5
Total Expenses 4,80,000 7,50,000 2,70,000 56.25
E. Profits before Tax (C-D) 4,70,000 4,70,000 ---- -----
F. Tax Rate 1,41,000 1,41,000 ------ ---
G. Profits after Tax (E-F) 3,29,000 3,29,000 ----- -----
Q34. (a) CASH FLOW FROM OPERATING ACTIVITIES:
Particulars Details Amount
Profit Earned during the year (1,00,000)
Add: Proposed dividend of previous year 1,50,000
Provision for tax for current year 1,20,000
Profit before tax and extraordinary items 1,70,000
Non-operating and Non Cash Items:
Add: Goodwill amortised 50,000
Operating profit before tax and changes in working 2,20,000
capital 50,000
Add: Increase in trade payable (40,000)
Less: increase in trade receivables
Cash generated from operations 2,30,000
Less: Income tax paid 1,00,000
Cash flow from operating activities 1,30,000

OR

ACCUMULATED DEPRECIATION ACCOUNT

PARTICULARS Rs. PARTICULARS Rs.
To Machinery A/c 10,000 By Balance b/d 4,00,000
(prev. dep on By Depreciation A/c 3,50,000
machine damaged) (Charged during the
To Machinery A/c 90,000 year)
(prev. dep on
machine sold)
To Balance c/d 6,50,000
7,50,000 7,50,000

MACHINERY ACCOUNT
PARTICULARS Rs. PARTICULARS Rs.
To Balance b/d 20,00,000 By Accumulated Depreciation 10,000
To Bank A/c (Balancing 11,00,000 A/c 32,000
figure) By Insurance Company A/c 8,000
By loss by fire A/c 1,40,000
By Bank A/c 20,000
By Loss on Sale A/c 90,000
BY Accumulated Depreciation 28,00,000
A/c
By Balance c/d
31,00,000 31,00,000

Investing Activities:
Sale of Machinery 1,40,000
Claim received from Insurance Company 32,000
Machinery Purchased (11,00,000)
Cash Outflow from Investing Activities (9,28,000)
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