CENTRE FOR ADVANCEMENT OF STANDARDS IN

EXAMINATIONS
(GEMS ASIAN SCHOOLS)
COMMON REHEARSAL EXAMINATIONS 2023
(ALL INDIA SENIOR SCHOOL CERTIFICATE EXAMINATION)
Subject: Accountancy
Time: 3 Hours

Subject Code: 055

Max. Marks: 80

General Instructions:

1. This question paper contains 34 questions. All questions are

compulsory.
2. This question paper is divided into two parts, Part A and B.
3. Question 1 to 16 and 27 to 30 carries 1 mark each.
4. Questions 17 to 20, 31and 32 carries 3 marks each.
5. Questions from 21 ,22 and 33 carries 4 marks each
6. Questions from 23 to 26 and 34 carries 6 marks each
7. 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. Rohan and Sohan were partners in a firm sharing profits and losses in the (1)
ratio of 3: 1. Ramesh was admitted as a new partner for 1/6 th share in the
profits. Ramesh acquired 2/5th of his share from Rohan . How much share did
Ramesh acquire from Sohan?

a) 1/5 b)1/10 c) 1/15 d)1/20

2. Assertion: Interest on partner’s loan is transferred to debit of profit and loss (1)
account but not transferred to profit and loss appropriation account

Reason: Interest on partner’s loan is a charge against profit, not an

appropriation of profit. Hence it is transferred to debit of profit and loss
account
Alternatives:
a) Both assertion(A) and reason(R) are true and reason (R) Is the correct
explanation of Assertion(A)
b) Both assertion(A) and reason(R) are true and reason (R) Is not the
correct explanation of Assertion(A)
c) Assertion(A) is correct but reason(R) is false
d) Assertion(A) is false but reason(R) is correct

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3. Pragya Ltd. forfeited 8,000 equity shares of ₹ 100 each issued at a premium (1)
of 10% for non-payment of first and final call of ₹ 30 per share. The
maximum amount of discount at which these shares can be reissued will be:
a) ₹ 80,000
b) ₹ 3,20,000
c) ₹ 5,60,000
d) ₹ 2,40,000
OR
Debenture premium cannot be used to____________
a) Write off the discount on issue of debentures
b) Providing premium payable on redemption of shares or debentures
c) Purchase of own shares or securities of the company
d) Paying dividends

4. A, B and C were partners sharing profits in the ratio of 2: 2: 1. They decided (1)
to share future profits in the ratio of 7: 5: 3 with effect from 1st April, 2022.
Their Balance Sheet as on that date showed a debit balance of ₹ 45,000 in
Profit & loss Account. Partners have decided to record the above by passing
an adjustment entry. By what amount will the partners be debited or
credited?
a) A Dr ₹ 3,000 and B Cr ₹ 3,000
b) B Dr ₹ 3,000 and A Cr ₹ 3,000
c) A Dr ₹ 18,000, B Dr ₹ 18,000 and C Dr ₹ 9,000
d) A Cr ₹ 21,000, B Cr ₹ 15,000 and C Cr ₹ 9,000
OR
Varun and Suhail were partners in a firm sharing profits and losses in the
ratio of 3: 2. Their capitals were ₹ 1,20,000 and ₹ 2,40,000, respectively.
They were entitled to interest on capitals @ 10% p.a. The firm earned a
profit of ₹ 18,000 during the year. The interest on Varun’s capital will be:
a) ₹ 12,000
b) ₹ 10,800
c) ₹ 7,200
d) ₹ 6,000

5. Abhay and Baldwin are partners sharing profit in the ratio 3:1. On 31st (1)
March 2021, firm’s net profit is ₹1,25,000. The partnership deed provided
interest on capital to Abhay and Baldwin ₹15,000 & ₹10,000 respectively
and Interest on drawings for the year amounted to ₹6000 from Abhay and
₹4000 from Baldwin. Abhay is also entitled to commission @10% on net
divisible profits after charging his commission. Calculate profit to be
transferred to Partners Capital A/c’s.
a) ₹1,00,000
b) ₹1,10,000
c) ₹1,07,000
d) ₹90,000
6. William Pens Ltd. issued 10,000, 7% Debentures of ₹100 each at a discount (1)
of ₹ 4. It has a balance in Securities Premium of ₹25,000. It will write off
Discount on issue of Debenture as_________
a) ₹ 40,000 from Securities Premium
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 b) ₹ 40,000 from Statement of Profit and Loss
c) ₹ 25,000 from Securities Premium and ₹ 15,000 from Statement of
Profit and Loss
d) ₹ 15,000 from Securities Premium and ₹ 25,000 from Statement of
Profit and Loss
OR
Suganthi Ltd. issued 90,000, 10% Debentures of ₹ 100 each at certain rate
of discount and were to be redeemed at 15% premium. Existing balance of
Securities Premium before issuing of these debentures was ₹ 25,00,000 and
after writing off Loss on Issue of Debentures, the balance in Securities
Premium was ₹ 4,30,000. At what rate of discount, these debentures were
issued?
a) 15% b) 23% c) 8% d) 2%

7. Apaar Ltd forfeited 4,000 shares of ₹20 each, fully called up, on which only (1)
application money of ₹6 has been paid. Out of these 2,000 shares were
reissued and ₹8,000 has been transferred to capital reserve. Calculate the
rate at which these shares were reissued.
a) ₹20 Per share
b) ₹18 Per share
c) ₹22 Per share
d) ₹8 Per share

8. A, B and C were partners in a firm sharing profits and losses in the ratio of 5: (1)
3: 2. C retired and his capital balance after adjustments regarding reserves,
accumulated profits/losses and his share of gain on revaluation was ₹
2,50,000. C was paid ₹ 3,22,000 including his share of goodwill.
The amount credited to C’s capital account, on his retirement, for goodwill
will be:
a) ₹ 72,000
b) ₹ 7,200
c) ₹ 24,000
d) ₹ 36,000
OR
Which of the following is true regarding Salary to a partner when the firm
maintains fluctuating capital accounts?
a) Debit Partner’s Loan A/c and Credit P & L Appropriation A/c.
b) Debit P & L A/c and Credit Partner’s Capital A/c.
c) Debit P & L Appropriation A/c and Credit Partner’s Current A/c.
d) Debit P & L Appropriation A/c and Credit Partner’s Capital A/c.

Read the following hypothetical situation, Answer Question No. 9

and 10

Anil and Bharat are partners with capitals of ₹ 2,00,000 and ₹ 1,00,000
respectively. The distribution of profit is according to following provisions of
the deed.

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 (a)Partners are entitled to interest on capital @ 5% p.a.
(b)Bharat being a working partner was also allowed a yearly salary of `
20,000.
(c)Profits were to be divided as follows:
(i) First ₹30,000 in proportion to their capitals
(ii) Next ₹ 20,000 in the ratio of 3:2
(iii)Remaining profits to be shared equally.
(d) Anil's share in divisible profit is ₹39,500.
9. The total appropriations to Bharat for interest on capital and salary is: (1)
a) ₹ 18,000
b) ₹ 29,500
c) ₹ 25,500
d) ₹ 25,000

10. The share of divisible profit going to Bharat is: (1)

a) ₹ 25,000
b) ₹ 28,500
c) ₹25,500
d) ₹ 32,500

11. Choose the correct sequence from Column 2 based on Column 1 (1)

Column 1 Column 2
A. Capital Employed i. Capital Employed x Normal rate of
Return/100
B. Normal Profit ii. Average Profit – Normal Profit
C. Super Profit iii. Super profit x 100/ Normal Rate of
Return
D. Goodwill iv. Total Tangible Assets – Outside
Liabilities

a) A i, B ii, C iii and D iv

b) A iv, B i, C ii and D iii
c) A ii, B iii, C iv and Di
d) A iv, B iii, C ii and Di

12. If applicants for 80,000 shares were allotted 60,000 shares on pro rata basis, (1)
the shareholder who was allotted 1200 shares must have applied for_____
a) 900 shares
b) 3,600 shares
c) 1,600 shares
d) 4,800 shares
13. Debentures that do not carry any charge or security on assets of the (1)
company are known as
a) Secured Debentures
b) Unsecured Debentures
c) Convertible Debentures
d) Registered Debentures

14. A and B are partners sharing profits in the ratio of 2:1. C is admitted into the (1)
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 firm for 1/4th share of profits. C brings in ₹ 20,000 in respect of his capital.
The capitals of old partners A and B, after all adjustments relating to
goodwill, revaluation of assets and liabilities, etc., are ₹ 45,000 and ₹ 15,000
respectively. It is agreed that partners’ capitals should be according to the
new profit-sharing ratio. Determine which partner brings in the amount of
deficiency and the partner who has an excess, withdraws the excess
amount.
a) A will bring ₹5,000 and B will withdraw ₹ 5,000
b) A will withdraw ₹5,000 and B will bring ₹ 5,000
c) A will bring ₹40,000 and B will withdraw ₹ 20,000
d) A will withdraw ₹40,000 and B will bring ₹ 20,000

15. Calculate the amount of Shiv quarterly drawings for the year ended 31st (1)
March 2022, if interest on drawings is ₹900 and he withdrew a fixed amount
at the end of each quarter when Partnership Deed allows interest on
drawings@12%p.a.
a) ₹ 8,000
b) ₹ 60,000
c) ₹ 7,000
d) ₹ 5,000
OR
Manan, a partner withdrew ₹ 5,000 at the end of each month and interest on
drawings was calculated as ₹ 2,750 at the end of accounting year 31 March
2022. What is the rate of interest on drawings charged?
a) 6% p.a.
b) 8% p.a.
c) 10% p.a.
d) 12% p.a.

16. On dissolution of a firm, its Balance Sheet revealed Total Creditors ₹ 65,000, (1)
Total capital ₹ 50,000, Cash Balance ₹ 8,000. Its assets were realized at 12%
less than the Book Value. Loss on realization will be:
a) ₹11,000
b) ₹ 12,840
c) ₹ 11,400
d) ₹ 3,600

17. Philip, Tarun and Varun were partners in a firm sharing profits in the ratio of (3)
3: 2: 1. The firm closes its books on 31st March every year.
Tarun died on 31st July, 2022. His executor was entitled to:
(i) His capital ₹ 8,00,000 and his share of goodwill which was valued for
the firm at ₹ 96,000.
(ii) His share of profit as per partnership agreement, which was to be
calculated on the basis of average profit of last 3 years. Average
profits of the last 3 years were ₹ 78,000.
(iii) Tarun’s executors were paid ₹ 95,000 by cheque at the time of his
death and the balance was transferred to his executor’s loan
account.
Pass the necessary journal entries in the books of the firm, on Tarun’s death,
for the above transactions.
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18. John and Mathew share profits and losses in the ratio of 3:2. They admit (3)
Mohanty into their firm to 1/6 th share in profits. John personally guaranteed
that Mohanty’s share of profit, after charging interest on capital @ 10%
annum would not be less than ₹ 30,000 in any year. The capital of partners,
John ₹ 2,50,000, Mathew ₹ 2,00,000 and Mohanty ₹1,50,000.
The profit for the year ending March 31,2022 amounted to ₹ 1,50,000 before
providing interest on capital. Show the Profit & Loss Appropriation Account if
new profit-sharing ratio is 3:2:1.
OR
On 1 April, 2021, the fixed capitals of Asha, Nisha and Disha were ₹
st

1,60,000, ₹ 1,40,000 and ₹ 1,00,000 respectively. Subsequently, it was

discovered that interest on capital and interest on drawings had been
omitted.
a) The partners were entitled to interest on capital @ 10% p.a.
b) Interest on drawings were also to be charged @ 10% p.a.
The drawings during the year were: Asha ₹ 50,000, Nisha ₹ 60,000 and
Disha ₹ 30,000. The net profit for the year ending 31st March, 2022
amounted to ₹ 1,00,000 which was distributed in the profit-sharing ratio 2:
2: 1.
Pass the necessary adjustment entry. Also show your workings clearly.

19. Y Ltd. took over assets of ₹ 10,00,000 and liabilities of ₹ 2,00,000 from AB (3)
Ltd. for a purchase consideration of ₹ 7,00,000. ₹ 40,000 were paid through
acceptance of bills of exchange for three months and balance by the issue of
equity shares of ₹ 10 each at a premium of 10%. Pass necessary journal
entries for the above transaction.
OR
X Ltd. issued ₹ 15,000 11% Debentures of ₹ 100 each at a premium of 50%.
The whole of the amount was payable on application. Applications for 20,000
Debentures were received. Full amount was collected on application.
Debentures were allotted to all applicants on prorata basis. Pass necessary
journal entries for the above transactions.
20. Karan and Varun were partners in a firm sharing profits and losses in the (3)
ratio of 1: 2. Their fixed capitals were ₹ 2,00,000 and ₹ 3,00,000
respectively. On 1st April, 2021 Kishore was admitted as a new partner for
1/4th share in the profits. Kishore brought ₹ 2,00,000 for his capital which
was to be kept fixed like the capitals of Karan and Varun. Kishore acquired
his share of profit from Varun.
Calculate goodwill of the firm on Kishore’s admission and the new profit-
sharing ratio of Karan, Varun and Kishore. Also, pass necessary Journal Entry
for the treatment of Goodwill on Kishore’s admission considering that
Kishore did not bring his share of goodwill premium in Cash.
21. Alpha India Ltd. was registered with an authorised capital of ₹ 10,00,000 (4)
divided into 1,00,000 equity shares of ₹ 10 each. The company offered to
the public for subscription 80,000 equity shares payable per share as: ₹ 3 on
application, ₹ 2 on allotment, ₹ 3 on first call and the balance on second and
final call. The issue was fully subscribed and all amounts due were received
except the first and final call money on 2,000 shares allotted to Shri. Her

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 shares were forfeited.

Present the ‘Share Capital’ in the Balance Sheet of the company as per
Schedule III, Part I of the Companies Act, 2013. Also prepare ‘Notes to
Accounts’.

22. Pass the necessary journal entries for the following transactions on the (4)
dissolution of the partnership firm of Tony and Rony after the various assets
(other than cash) and external liabilities have been transferred to Realization
Account:
a) An unrecorded asset of ₹ 2,000 and cash ₹ 3,000 was paid for liability
of ₹ 6,000 in full settlement.
b) 100 shares of ₹ 10 each have been taken over by partners at market
value of ₹ 20 per share in their profit-sharing ratio, which is 3: 2.
c) Stock of ₹ 30,000 was taken over by a creditor of ₹ 40,000 at a
discount of 30% in full settlement.
d) Expenses of realisation ₹ 4,000 were to be borne by Rony. Rony used
the firm’s cash for paying these expenses.

23. Girija, Yatin and Zubin were partners sharing profits in the ratio 5: 3: 2. (6)
Zubin died on 1st August, 2020. Amount due to Zubin’s executor after all
adjustments was ₹ 90,300. The executor was paid ₹ 10,300 in cash
immediately and the balance in two equal annual instalments with interest
@ 6% p.a. starting from 31st March, 2022.
Accounts are closed on 31st March each year.
Prepare Zubin’s Executors Account till he is finally paid.

24. A Ltd. invited applications for issuing 80,000 equity shares of ₹10 each at a (6)
premium of ₹ 4 per share. The amount was payable as follows:

On application – ₹ 5 per share

On allotment – ₹ 9 per share (premium included)
Applications were received for 1,40,000 shares and allotment was made to
all applicants on pro-rata basis. Money overpaid on applications was
adjusted towards sum due on allotment. Rajiv, who had applied for 1,400
shares failed to pay the allotment money. His shares were forfeited. Later
on, these forfeited shares were reissued at ₹ 9 per share as fully paid up.

Pass the necessary journal entries in the books of A Ltd. for the above
transactions.

OR

Pass entries for forfeiture and re-issue in both the following cases.

a) Rumaisa Ltd. forfeited 300 shares of ₹10 each fully called up held by
Ram for non-payment of allotment money of ₹ 3 per share and final
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 call money of ₹4 per share. Out of these shares, 250 were re-issued to
Shyam for a total payment of ₹ 2,000.

b) Jassim Limited forfeited 200 shares of ₹100 each (₹60 called up)
issued at par to Mukesh on which he had paid ₹20 per share. Out of
these, 150 shares were re-issued to Sanjeev as ₹60 paid up for ₹ 45
per share.
25. a) Fun Fiesta Ltd. had share capital of ₹ 90,00,000 divided in shares of ₹ (6)
100 each and 70,000, 8% Debentures of ₹ 100 each as part of capital
employed. The company need additional funds of ₹ 45,00,000 for
which they decided to issue debentures in such a way that they got
required funds after issuing debentures of the same class as earlier, at
10% discount redeemable at par after five years. The debentures were
fully subscribed and all money was duly received. The company had a
balance of ₹ 3,00,000 in ‘Securities Premium Reserve’ which it decided
to use for writing off the discount/loss on issue debentures.
Pass the journal entries for issue of debentures and for writing off
discount /loss on issue of debentures.

b) Pass necessary journal entries for the issue of Debentures in the

following cases:
i. Y Ltd. issued ₹ 5,00,000, 9% Debentures of ₹ 100 each at par
redeemable at a premium of 10% after three years.
ii. Z Ltd. issued 4500, 9% Debentures of ₹ 100 each at a discount
of 10% redeemable at a premium of 5% after three years.

26. Prem, Kumar and Aarti were partners sharing profits in the ratio of 5: 3: 2. Their (6)
Balance Sheet as at 31st March, 2022 was as under:
Balance Sheet of Prem, Kumar and Aarti as at 31st March, 2022
Liabilities Amoun Assets Amount
t
Capitals Building 25,000
Prem 30,000 Plant and 15,000
Kumar 20,000 machinery 10,000
Arti 20,000 70,000 Investment 10,000
General Reserve 8,000 Debtors 5,000
Investment fluctuation 2,000 Stock 25,000
Fund 10,000 Cash
Creditors
90,000 90,000
On the above date, Kumar retired. The terms of retirement were:
a) Kumar sold his share of goodwill to Prem for ₹ 8,000 and to Aarti for ₹
4,000.
b) Stock was found to be undervalued by ₹1,000 and building by ₹ 7,000.
c) Investments were sold for ₹ 11,000.
d) There was an unrecorded creditor of ₹ 7,000.
e) Kumar was paid in full by bringing in or withdrawing necessary in cash as
to make their capitals in new profit-sharing ratio & to maintain a
minimum balance of ₹ 12,000 in the cash a/c
Prepare the Revaluation Account and Capital Accounts of partners of the
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reconstituted firm.
OR
Madhuri and Arsh were partners in a firm sharing profits and losses in the ratio
of 3: 1. Their Balance Sheet as at 31st March, 2022, was as follows:
Balance Sheet of Madhuri and Arsh as at 31st March, 2022
Liabilities Amoun Assets Amount
t (₹) (₹)
Capitals Investments 1,10,00
Madhuri Machinery 0
3,00,000 5,00,00 Debtors 4,70,00
Arsh 0 1,20,000 0
2,00,000 60,000 Less provision
Workmen Compensation 1,90,00 10,000 1,10,00
Fund 0 Stock 0
Creditors 1,10,00 Cash 1,40,00
Employees Provident Fund 0 0
30,000
8,60,00 8,60,00
0 0
On 1st April, 2021, they admitted Jyoti into partnership for 1/4 th share in the
profits of the firm. Jyoti brought proportionate capital and ₹ 40,000 as her share
of goodwill premium. The following terms were agreed upon:
(i) Provision for doubtful debts was to be maintained at 10% on debtors.
(ii) Stock was undervalued by ₹ 10,000.
(iii) An old customer whose account was written off as bad, paid ₹ 15,000.
(iv) 20% of the investments were taken over by Arsh at book value.
(v) Claim on account of workmen’s compensation amounted to ₹ 70,000.
(vi) Creditors included a sum of ₹ 27,000 which was not likely to be claimed.

Prepare Revaluation Account and Partners’ Capital Accounts of the

reconstituted firm.
Part B: Analysis of Financial Statements

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27. ___________ refers to the presentation of a better financial position than what (1)
it actually is by manipulating the books of account.
a) Variation in accounting practices
b) Window dressing
c) Price level changes
d) Historical data
OR
Current Ratio of Vidur Pvt Ltd is 3:2. Accountant wants to maintain it at 2:1.
Following options are available:
i. He can repay Bills Payable
ii. He can purchase goods on credit
iii. He can take short term loan
Which one of the following is correct?
a) All are correct.
b) Only (i) and (iii) are correct.
c) Only (i) is correct
d) Only (ii) and (iii) correct

28. The total debtors of X Ltd. were ₹ 9,00,000. It had created a provision of (1)
10% for bad and doubtful debts. What amount of debtors will be used for
calculating the ‘Trade Receivables Turnover Ratio’?
a) ₹9,00,000
b) ₹8,10,000
c) ₹9,90,000
d) ₹9,09,000
29. X Ltd. purchased furniture for ₹ 20,00,000 paying 60% by issue of equity (1)
shares of ₹ 10 each and the balance by a cheque. This transaction will result
in:
a) Cash used in investing activities ₹ 20,00,000.
b) Cash generated from financing activities ₹ 12,00,000.
c) Increase in cash and cash equivalents ₹ 8,00,000.
d) Cash used in investing activities ₹ 8,00,000.
OR
Bharat Ltd. invited applications for issuing 2,000 equity shares of ₹10 each
and out of these, 1,800 shares were applied for and allotted ₹ 3 per share
(including ₹ 1 premium) was payable on application, ₹ 4 per share (including
₹1 premium) on allotment, ₹ 2 per share on first call and ₹3 per share on
final call. All the money was received. How this transaction will be reflected
in Cash Flow Statement?

a) Inflow of Share capital ₹ b) Inflow of Share capital ₹

20,000 and Inflow of Securities 18,000 and Inflow of Securities
premium ₹ 4,000 in Financing premium ₹ 3,600 in Financing
activities activities
c) Inflow of Share capital ₹ d) Inflow of Share capital ₹
18,000 and Inflow of Securities 20,000 and Inflow of Securities
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 premium ₹ 4,000 in Financing premium ₹ 3,600 in Financing
activities activities
30. Balance Sheet (Extract) (1)
Equity and liabilities 31-3-2021 31-3-2022
12% Debentures 2,00,000 1,60,000
Additional Information:
Interest on debentures is paid on half yearly basis on 30th September and
31st March each year. Debentures were redeemed on 30th September 2021.

How much amount (related to above information) will be shown in Financing

Activity for Cash Flow Statement prepared on 31st March 2020?

a) Outflow ₹40,000. b) Inflow ₹42,600. c) Outflow ₹61,600. d)

Outflow ₹64,000

31. Classify the following items under Major heads and Sub-head (if any) in the (3)
Balance Sheet of a Company as per schedule III of the Companies Act 2013.

i. Loans repayable on demand ii. Vehicles

iii. Provision for Employees Benefit iv. Copyright
v. Prepaid Insurance vi. Accrued Income

32. Rahul Ltd have understood that Ratio analysis is an indispensable part of (3)
interpretation of results revealed by the financial statements. The
accountant of Rahul Ltd has analyzed that problem areas would need more
attention and bright areas will need polishing to have still better results.
Identify the advantage of Ratio Analysis highlighted in the above situation.
Also explain any two other advantages of Ratio Analysis apart from the
identified above.
33. The fixed assets of a company were ₹ 35,00,000 and Revenue from (4)
operations were ₹72,00,000. Its current assets were ₹ 4,30,000 and current
liabilities were ₹ 3,30,000. During the year ended 31-03-2019 the company
earned net profit after tax ₹ 4,20,000. 10% Debentures of ₹ 5,00,000; the
tax rate was 30%.
Calculate Interest Coverage ratio & Net asset turnover ratio
OR
Quick Ratio of a company is 2:1. State giving reasons, which of the following
transactions would (i) Improve, (ii) Reduce, (iii) Not change the Quick Ratio:
a. Purchase of goods for cash;
b. Purchase of goods on credit;
c. Sale of goods (costing ₹20,000) for ₹20,000;
d. Cash received from Trade Receivables.
34. From the following Balance Sheets of GPL Industries Ltd. as on 31st (6)
March, 2022 and 31st March, 2021, prepare Cash Flow Statement as
per AS-3 (Revised)
Particulars Note 31-03- 31-03-
No 2022 2021
EQUITY AND LIABILITIES

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(1) Shareholder’s Funds
a. Equity Share capital 6,50,000 5,00,000
b. Reserve capital 1 1,70,000 80,000
(2) Non- current liabilities
a. Long term borrowings 2 4,50,000 3,00,000
(3) Current liabilities
a. Trade Payables 100,000 120,000
b. Short-term Provisions 3 220,000 1,80,000
Total 15,90,000 11,80,000
II ASSETS
(1) Non- Current Assets
a. Property, Plant and 5,45,000 3,75,000
Equipment’s: 2,20,000 1,80,000
Tangible assets
b. Intangible Assets: Patents
c. Non-current Investments 5,00,000 4,00,000
(2 ) Current Assets
a. Current Investments 30,000 60,000
(Marketable)
b. Inventories 65,000 25,000
c. Trade Receivables 60,000 40,000
d. Cash and Cash Equivalents 170,000 1,00,000
Total 15,90,000 11,80,000
Notes to Accounts
Particulars 31-03- 31-03-
2022 2021
1. RESERVES AND SURPLUS
Surplus; Balance in statement of Profit and 1,70,000 80,000
loss A/c
2: LONG TERM BORROWINGS
6% Debentures 450,000 300,000
3: SHORT TERM PROVISIONS
Provision for tax 220,000 1,80,000
Additional information:
a) During the year, equipment costing ₹ 5,00,000 was purchased.
Loss on sale of equipment amounted to ₹ 60,000. Depreciation
charged on them was ₹ 90,000.
b) Proposed Dividend as on 31st March 2021 and 2022 amounted
to ₹26,000 and ₹30,000 respectively.

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